Cover
Cover | 6 Months Ended |
Jun. 30, 2021shares | |
Cover [Abstract] | |
Document Type | 10-Q |
Document Quarterly Report | true |
Document Period End Date | Jun. 30, 2021 |
Document Transition Report | false |
Entity File Number | 001-40321 |
Entity Registrant Name | ALKAMI TECHNOLOGY, INC. |
Entity Incorporation, State or Country Code | DE |
Entity Tax Identification Number | 45-3060776 |
Entity Address, Address Line One | 5601 Granite Parkway, |
Entity Address, Address Line Two | Suite 120 |
Entity Address, City or Town | Plano, |
Entity Address, State or Province | TX |
Entity Address, Postal Zip Code | 75204 |
City Area Code | 877 |
Local Phone Number | 725-5264 |
Title of 12(b) Security | Common Stock, $0.001 par value per share |
Trading Symbol | ALKT |
Security Exchange Name | NASDAQ |
Entity Current Reporting Status | Yes |
Entity Interactive Data Current | Yes |
Entity Filer Category | Non-accelerated Filer |
Entity Small Business | false |
Entity Emerging Growth Company | true |
Entity Ex Transition Period | false |
Entity Shell Company | false |
Entity Common Stock, Shares Outstanding | 87,186,730 |
Current Fiscal Year End Date | --12-31 |
Document Fiscal Year Focus | 2021 |
Document Fiscal Period Focus | Q2 |
Entity Central Index Key | 0001529274 |
Amendment Flag | false |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) | Jun. 30, 2021 | Dec. 31, 2020 |
Current assets | ||
Cash and cash equivalents | $ 338,477,000 | $ 166,790,000 |
Accounts receivable, net | 15,590,000 | 14,103,000 |
Deferred implementation costs, current | 5,434,000 | 4,745,000 |
Prepaid expenses and other current assets | 8,693,000 | 7,598,000 |
Total current assets | 368,194,000 | 193,236,000 |
Property and equipment, net | 10,418,000 | 10,461,000 |
Deferred implementation costs, net of current portion | 15,219,000 | 14,858,000 |
Intangibles, net | 7,848,000 | 8,266,000 |
Goodwill | 16,542,000 | 16,218,000 |
Other assets | 6,521,000 | 6,127,000 |
Total assets | 424,742,000 | 249,166,000 |
Current liabilities | ||
Current portion of long-term debt | 938,000 | 313,000 |
Accounts payable | 2,575,000 | 360,000 |
Accrued liabilities | 18,746,000 | 13,099,000 |
Deferred rent and tenant allowance, current | 676,000 | 596,000 |
Deferred revenues, current portion | 6,618,000 | 6,116,000 |
Total current liabilities | 29,553,000 | 20,484,000 |
Long-term debt, net | 23,967,000 | 24,566,000 |
Warrant liability | 0 | 2,692,000 |
Deferred revenues, net of current portion | 13,018,000 | 14,424,000 |
Deferred rent and tenant allowance, net of current portion | 5,553,000 | 5,867,000 |
Other non-current liabilities | 1,393,000 | 1,393,000 |
Total liabilities | 73,484,000 | 69,426,000 |
Commitments and contingencies (Note 13) | ||
Redeemable convertible preferred stock, $0.001 par, 0 and 72,799,602 shares authorized and 0 and 72,225,916 shares issued and outstanding as of June 30, 2021 and December 31, 2020, respectively | 0 | 443,263,000 |
Stockholders’ Equity (Deficit) | ||
Preferred stock, $0.001 par, 10,000,000 and 0 shares authorized and 0 shares issued and outstanding as of June 30, 2021 and December 31, 2020, respectively | 0 | 0 |
Common stock, $0.001 par, 500,000,000 and 101,671,156 shares authorized and 87,186,730 and 4,909,529 shares issued and outstanding as of June 30, 2021 and December 31, 2020, respectively | 87,000 | 5,000 |
Additional paid-in capital | 640,456,000 | 0 |
Accumulated deficit | (289,285,000) | (263,528,000) |
Total stockholders’ equity (deficit) | 351,258,000 | (263,523,000) |
Total liabilities, redeemable convertible preferred stock and stockholders' equity (deficit) | $ 424,742,000 | $ 249,166,000 |
CONDENSED CONSOLIDATED BALANC_2
CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares | Jun. 30, 2021 | Dec. 31, 2020 |
Statement of Financial Position [Abstract] | ||
Redeemable convertible preferred stock, par value (in dollars per share) | $ 0.001 | $ 0.001 |
Redeemable convertible preferred stock, authorized (in shares) | 0 | 72,799,602 |
Redeemable convertible preferred stock, issued (in shares) | 0 | 72,225,916 |
Redeemable convertible preferred stock, outstanding (in shares) | 0 | 72,225,916 |
Preferred stock, par value (in dollars per share) | $ 0.001 | $ 0.001 |
Preferred stock, authorized (in shares) | 10,000,000 | 0 |
Preferred stock, issued (in shares) | 0 | 0 |
Preferred stock, outstanding (in shares) | 0 | 0 |
Common stock, par value (in dollars per share) | $ 0.001 | $ 0.001 |
Common stock, shares authorized | 500,000,000 | 101,671,156 |
Common stock, shares issued | 87,186,730 | 4,909,529 |
Common stock, shares outstanding | 87,186,730 | 4,909,529 |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Income Statement [Abstract] | ||||
Revenues | $ 36,701 | $ 26,666 | $ 69,963 | $ 49,876 |
Cost of revenues | 16,180 | 13,236 | 31,677 | 25,138 |
Gross profit | 20,521 | 13,430 | 38,286 | 24,738 |
Research and development | 12,810 | 9,780 | 23,020 | 19,469 |
Sales and marketing | 5,417 | 3,910 | 10,823 | 8,550 |
General and administrative | 12,107 | 6,850 | 23,195 | 14,008 |
Total operating expenses | 30,334 | 20,540 | 57,038 | 42,027 |
Loss from operations | (9,813) | (7,110) | (18,752) | (17,289) |
Interest income | 127 | 8 | 141 | 37 |
Interest expense | (298) | (99) | (608) | (203) |
Loss on financial instruments | (1,391) | (66) | (3,035) | (67) |
Loss before income taxes | (11,375) | (7,267) | (22,254) | (17,522) |
Provision for income taxes | 0 | 0 | 0 | 0 |
Net loss | (11,375) | (7,267) | (22,254) | (17,522) |
Less: cumulative dividends and adjustments to redeemable convertible preferred stock | 0 | (277) | (277) | (554) |
Net loss attributable to common stockholders | (11,375) | (7,544) | (22,531) | (18,076) |
Net loss attributable to common stockholders | $ (11,375) | $ (7,544) | $ (22,531) | $ (18,076) |
Net loss per share attributable to common stockholders: | ||||
Net loss per share attributable to common stockholders - basic (in dollars per share) | $ (0.15) | $ (1.63) | $ (0.56) | $ (3.93) |
Net loss per share attributable to common stockholders - diluted (in dollars per share) | $ (0.15) | $ (1.63) | $ (0.56) | $ (3.93) |
Weighted average number of shares of common stock outstanding: | ||||
Weighted average number of common shares outstanding - basic (in shares) | 74,831,512 | 4,635,852 | 40,399,138 | 4,602,436 |
Weighted average number of common shares outstanding - diluted (in shares) | 74,831,512 | 4,635,852 | 40,399,138 | 4,602,436 |
CONDENSED CONSOLIDATED STATEM_2
CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN REDEEMABLE CONVERTIBLE PREFERRED STOCK AND STOCKHOLDERS' EQUITY (DEFICIT) - USD ($) $ in Thousands | Total | Common Stock | Additional Paid-in Capital | Accumulated Deficit |
Beginning balance (in shares) at Dec. 31, 2019 | 54,290,383 | |||
Beginning balance at Dec. 31, 2019 | $ 210,033 | |||
Increase (Decrease) in Temporary Equity [Roll Forward] | ||||
Issuance of redeemable convertible preferred stock, net of issuance (in shares) | 2,929,754 | |||
Issuance of redeemable convertible preferred stock, net of issuance costs | $ 38,948 | |||
Cumulative dividends and adjustments to redeemable convertible preferred stock | $ 554 | |||
Ending balance (in shares) at Jun. 30, 2020 | 57,220,137 | |||
Ending balance at Jun. 30, 2020 | $ 249,535 | |||
Beginning balance (in shares) at Dec. 31, 2019 | 4,537,955 | |||
Beginning balance at Dec. 31, 2019 | (195,390) | $ 5 | $ 335 | $ (195,730) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||
Stock-based compensation | 909 | 909 | ||
Exercised stock options (in shares) | 113,219 | |||
Exercised stock options | 98 | 98 | ||
Cumulative dividends and adjustments to redeemable convertible preferred stock | (554) | (450) | (104) | |
Preferred Series E Tranche Liability | (892) | (892) | ||
Net loss | (17,522) | (17,522) | ||
Ending balance (in shares) at Jun. 30, 2020 | 4,651,174 | |||
Ending balance at Jun. 30, 2020 | $ (213,351) | $ 5 | 0 | (213,356) |
Beginning balance (in shares) at Mar. 31, 2020 | 54,290,383 | |||
Beginning balance at Mar. 31, 2020 | $ 210,310 | |||
Increase (Decrease) in Temporary Equity [Roll Forward] | ||||
Issuance of redeemable convertible preferred stock, net of issuance (in shares) | 2,929,754 | |||
Issuance of redeemable convertible preferred stock, net of issuance costs | $ 38,948 | |||
Cumulative dividends and adjustments to redeemable convertible preferred stock | $ 277 | |||
Ending balance (in shares) at Jun. 30, 2020 | 57,220,137 | |||
Ending balance at Jun. 30, 2020 | $ 249,535 | |||
Beginning balance (in shares) at Mar. 31, 2020 | 4,609,315 | |||
Beginning balance at Mar. 31, 2020 | (205,411) | $ 5 | 569 | (205,985) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||
Stock-based compensation | 450 | 450 | ||
Exercised stock options (in shares) | 41,859 | |||
Exercised stock options | 46 | 46 | ||
Cumulative dividends and adjustments to redeemable convertible preferred stock | (277) | (173) | (104) | |
Preferred Series E Tranche Liability | (892) | (892) | ||
Net loss | (7,267) | (7,267) | ||
Ending balance (in shares) at Jun. 30, 2020 | 4,651,174 | |||
Ending balance at Jun. 30, 2020 | $ (213,351) | $ 5 | 0 | (213,356) |
Beginning balance (in shares) at Dec. 31, 2020 | 72,225,916 | |||
Beginning balance at Dec. 31, 2020 | $ 443,263 | |||
Increase (Decrease) in Temporary Equity [Roll Forward] | ||||
Payment of Series B Dividend upon initial public offering | $ (4,969) | |||
Conversion of redeemable convertible preferred stock to common stock upon initial public offering (in shares) | (72,225,916) | |||
Conversion of redeemable convertible preferred stock to common stock upon initial public offering | $ (438,571) | |||
Cumulative dividends and adjustments to redeemable convertible preferred stock | $ 277 | |||
Ending balance (in shares) at Jun. 30, 2021 | 0 | |||
Ending balance at Jun. 30, 2021 | $ 0 | |||
Beginning balance (in shares) at Dec. 31, 2020 | 4,909,529 | |||
Beginning balance at Dec. 31, 2020 | (263,523) | $ 5 | 0 | (263,528) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||
Stock-based compensation | 4,441 | 4,441 | ||
Exercised stock options (in shares) | 3,370,202 | |||
Exercised stock options | 4,935 | $ 3 | 4,932 | |
Cumulative dividends and adjustments to redeemable convertible preferred stock | (277) | (277) | 0 | |
Repurchase of common stock (in shares) | 218,917 | |||
Repurchase of common stock | (3,497) | 6 | (3,503) | |
Issuance of common stock upon initial public offering, net of underwriting discounts and commissions (in shares) | 6,900,000 | |||
Issuance of common stock upon initial public offering, net of underwriting discounts and commissions | 192,810 | $ 7 | 192,803 | |
Conversion of redeemable convertible preferred stock to common stock upon initial public offering (in shares) | 72,225,916 | |||
Conversion of redeemable convertible preferred stock to common stock upon initial public offering | 438,570 | $ 72 | 438,498 | |
Conversion of redeemable convertible preferred stock warrants to common stock warrants upon initial public offering | 5,727 | 5,727 | ||
Costs in connection with initial public offering | (5,674) | (5,674) | ||
Net loss | (22,254) | (22,254) | ||
Ending balance (in shares) at Jun. 30, 2021 | 87,186,730 | |||
Ending balance at Jun. 30, 2021 | $ 351,258 | $ 87 | 640,456 | (289,285) |
Beginning balance (in shares) at Mar. 31, 2021 | 72,225,916 | |||
Beginning balance at Mar. 31, 2021 | $ 443,540 | |||
Increase (Decrease) in Temporary Equity [Roll Forward] | ||||
Payment of Series B Dividend upon initial public offering | $ (4,969) | |||
Conversion of redeemable convertible preferred stock to common stock upon initial public offering (in shares) | (72,225,916) | |||
Conversion of redeemable convertible preferred stock to common stock upon initial public offering | $ (438,571) | |||
Ending balance (in shares) at Jun. 30, 2021 | 0 | |||
Ending balance at Jun. 30, 2021 | $ 0 | |||
Beginning balance (in shares) at Mar. 31, 2021 | 6,755,179 | |||
Beginning balance at Mar. 31, 2021 | (273,929) | $ 7 | 3,974 | (277,910) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||
Stock-based compensation | 3,023 | 3,023 | ||
Exercised stock options (in shares) | 1,305,635 | |||
Exercised stock options | 2,106 | $ 1 | 2,105 | |
Issuance of common stock upon initial public offering, net of underwriting discounts and commissions (in shares) | 6,900,000 | |||
Issuance of common stock upon initial public offering, net of underwriting discounts and commissions | 192,810 | $ 7 | 192,803 | |
Conversion of redeemable convertible preferred stock to common stock upon initial public offering (in shares) | 72,225,916 | |||
Conversion of redeemable convertible preferred stock to common stock upon initial public offering | 438,570 | $ 72 | 438,498 | |
Conversion of redeemable convertible preferred stock warrants to common stock warrants upon initial public offering | 5,727 | 5,727 | ||
Costs in connection with initial public offering | (5,674) | (5,674) | ||
Net loss | (11,375) | (11,375) | ||
Ending balance (in shares) at Jun. 30, 2021 | 87,186,730 | |||
Ending balance at Jun. 30, 2021 | $ 351,258 | $ 87 | $ 640,456 | $ (289,285) |
CONDENSED CONSOLIDATED STATEM_3
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2021 | Jun. 30, 2020 | |
Cash flows from operating activities: | ||
Net loss | $ (22,254) | $ (17,522) |
Adjustments to reconcile net loss to net cash used in operating activities: | ||
Depreciation and amortization expense | 1,582 | 1,317 |
Stock-based compensation expense | 4,441 | 909 |
Amortization of debt issuance costs | 26 | 38 |
Loss on financial instruments | 3,035 | 67 |
Changes in operating assets and liabilities: | ||
Accounts receivable | (1,487) | (3,083) |
Prepaid expenses and other current assets | (3,319) | (1,577) |
Accounts payable and accrued liabilities | 7,851 | 859 |
Deferred implementation costs | (1,051) | (1,474) |
Deferred rent and tenant allowances | (233) | 279 |
Deferred revenues | (879) | 191 |
Net cash used in operating activities | (12,288) | (19,996) |
Cash flows from investing activities: | ||
Purchases of property and equipment | (477) | (1,403) |
Capitalized software development costs | (643) | 0 |
Acquisition of business | (326) | 0 |
Net cash used in investing activities | (1,446) | (1,403) |
Cash flows from financing activities: | ||
Borrowings on line of credit | 0 | 13,000 |
Payments on line of credit | 0 | (13,000) |
Proceeds from stock option exercises | 4,935 | 98 |
Proceeds on sales of preferred stock, net of issuance costs | 0 | 24,879 |
Deferred IPO issuance costs paid | (3,857) | 0 |
Payments on capital lease obligations | 0 | (11) |
Repurchase of common stock | (3,497) | 0 |
Proceeds from issuance of common stock upon initial public offering, net of underwriting discounts and commissions | 192,810 | 0 |
Payment of Series B dividend | (4,969) | 0 |
Net cash provided by financing activities | 185,422 | 24,966 |
Net increase in cash and cash equivalents and restricted cash | 171,688 | 3,567 |
Cash and cash equivalents and restricted cash, beginning of period | 171,663 | 11,982 |
Cash and cash equivalents and restricted cash, end of period | 343,351 | 15,549 |
Supplemental disclosure of noncash financing activities | ||
Deferred IPO offering costs not yet paid | $ 663 | $ 0 |
Organization
Organization | 6 Months Ended |
Jun. 30, 2021 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Organization | Organization Description of Business Alkami Technology, Inc. (the “Company”) is a cloud-based digital banking solutions provider. The Company inspires and empowers community, regional and super-regional financial institutions (“FIs”) to compete with large, technologically advanced and well-resourced banks in the United States. The Company’s solution, the Alkami Platform, allows FIs to onboard and engage new users, accelerate revenues and meaningfully improve operational efficiency, all with the support of a proprietary, true cloud-based, multi-tenant architecture. The Company cultivates deep relationships with its clients through long-term, subscription based contractual arrangements, aligning its growth with its clients’ success and generating an attractive unit economic model. The Company was incorporated in Delaware in August 2011, and its principal offices are located in Plano, Texas. Initial Public Offering On April 13, 2021, the Company's registration statement relating to the initial public offering ("IPO") of its common stock was declared effective by the Securities and Exchange Commission ("SEC"). In connection with its IPO, the Company issued and sold 6,900,000 shares of common stock (including 900,000 shares issued pursuant to the exercise in full of the underwriters' option to purchase additional shares) at a public offering price of $30.00 per share for net proceeds of $192.8 million, after deducting underwriters' discounts and commissions (excluding other IPO costs). Prior to the Company’s IPO, deferred offering costs, which consist of legal, accounting, consulting and other direct fees and costs relating to its IPO, were capitalized in prepaid expenses and other current assets. Upon consummation of the Company’s IPO, these costs were offset against the proceeds from its IPO and recorded in additional paid-in capital. In addition, in connection with its IPO, the Company's certificate of incorporation was amended and restated such that the total number of shares of common stock authorized to be issued was increased to 500,000,000 shares and the total number of shares of preferred stock authorized to be issued was reduced to 10,000,000 shares. Immediately prior to the effectiveness of the Company’s registration statement, the Company’s outstanding shares of redeemable convertible preferred stock converted into an aggregate of 72,225,916 shares of common stock. With the proceeds of its IPO, the Company paid in full accumulated dividends on its previously outstanding shares of Series B redeemable convertible preferred stock, which totaled approximately $5.0 million. All of the Company’s outstanding warrants exercisable for shares of redeemable convertible preferred stock converted into warrants exercisable for 212,408 shares of common stock and were classified as equity immediately prior to the effectiveness of the Company’s registration statement. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 6 Months Ended |
Jun. 30, 2021 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | Summary of Significant Accounting Policies The accompanying financial statements reflect the application of significant accounting policies as described below. Basis of Presentation and Consolidation The interim unaudited condensed consolidated financial statements have been prepared in accordance with generally accepted accounting principles in the United States of America (“GAAP”) for interim financial information. Accordingly, they do not include all of the information and footnotes required by GAAP for complete financial statements. All intercompany accounts and transactions are eliminated. In the Company's opinion, the accompanying interim unaudited condensed consolidated financial statements have been prepared on the same basis as the audited consolidated financial statements and include all adjustments, consisting of normal, recurring adjustments, necessary to present fairly the financial position, results of operations and cash flows for the periods indicated. Certain information and disclosures normally included in the notes to the annual consolidated financial statements prepared in accordance with GAAP have been omitted from these interim unaudited condensed consolidated financial statements pursuant to the rules and regulations of the SEC. Accordingly, these interim unaudited condensed consolidated financial statements should be read in conjunction with the consolidated financial statements and the accompanying notes for the fiscal year ended December 31, 2020, which are included in the final prospectus (the “Prospectus”) for the Company’s IPO filed with the SEC on April 15, 2021 pursuant to Rule 424(b)(4) under the Securities Act of 1933, as amended. Operating results for the three and six months ended June 30, 2021 are not necessarily indicative of results that may be expected for any other interim period or for the year ending December 31, 2021. The Company has no sources of other comprehensive income, and accordingly, net loss presented each period is the same as comprehensive loss. Use of Estimates The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Significant estimates and assumptions include determining the timing and amount of revenue recognition, recoverability and amortization period related to costs to obtain and fulfill contracts, and valuation of the Company’s stock options. Fair Value of Financial Instruments The Company’s financial instruments consist primarily of cash, restricted cash and cash equivalents, accounts receivable, accounts payable, long-term debt and stock warrants. The carrying values of cash, restricted cash and cash equivalents, accounts receivable, and accounts payable approximate their respective fair values due to the short-term nature of these instruments. The carrying value of long-term debt approximates its fair value due to the variable interest rate. Cash equivalents include amounts held in money market accounts that are measured at fair value using observable market prices. Warrant liabilities are valued using the Black-Scholes option pricing method and are presented at estimated fair value at the end of the reporting period. The assumptions used in preparing the Black-Scholes option pricing calculation include weighted average grant date fair value, volatility, risk-free interest rate, dividends, and weighted average expected life in years. Changes in the fair value of warrant liabilities are recognized as a gain or loss within non-operating income (expense). In connection with the Company’s IPO, warrants converted from a liability instrument to an equity instrument resulting in a reduction of the warrant liability to $0. The Company uses a three-tier fair value hierarchy, which prioritizes the inputs used in the valuation methodologies in measuring fair value: Level 1. Quoted prices (unadjusted) in active markets for identical assets or liabilities. Level 2. Significant other inputs that are directly or indirectly observable in the marketplace. Level 3. Significant unobservable inputs which are supported by little or no market activity. The Company evaluates its financial assets and liabilities subject to fair value measurements on a recurring basis to determine the appropriate level in which to classify them for each reporting period. The following table summarizes the Company’s financial assets measured at fair value as of June 30, 2021 and December 31, 2020 and indicates the fair value hierarchy of the valuation: Fair Value at Reporting Date Using (In thousands) June 30, 2021 Level 1 Level 2 Level 3 Assets: Money Market Accounts $ 34,587 $ 34,587 $ — $ — Total Assets $ 34,587 $ 34,587 $ — $ — Fair Value at Reporting Date Using (In thousands) December 31, 2020 Level 1 Level 2 Level 3 Assets: Money Market Accounts $ 143,277 $ 143,277 $ — $ — Total Assets $ 143,277 $ 143,277 $ — $ — Liabilities: Warrant Liabilities $ (2,692) $ — $ — $ (2,692) Total Liabilities $ (2,692) $ — $ — $ (2,692) The reconciliations of the beginning and ending balances during the six months ended June 30, 2021 for Level 3 assets and liabilities are as follows (in thousands): Asset and liability categories Beginning Level 3 Fair Value at January 1, 2021 Fair value adjustment Adjustment for conversion to equity accounting treatment upon IPO Ending Level 3 Fair Value at June 30, 2021 Warrant Liabilities $ (2,692) $ (3,035) $ 5,727 $ — Restricted Cash The Company defines restricted cash as cash that is legally restricted as to withdrawal or usage. The amounts included in restricted cash on the condensed consolidated balance sheets at June 30, 2021 and December 31, 2020 represent the additional cash proceeds in deposit with an escrow agent for satisfaction of contingent consideration related to the acquisition of ACH Alert, LLC (“ACH Alert”). See Note 3 for further information. June 30, December 31, (in thousands) 2021 2020 Cash and cash equivalents $ 338,477 $ 166,790 Restricted cash included in Other assets 4,874 4,873 Total cash and cash equivalents and restricted cash $ 343,351 $ 171,663 Capitalized Software Development Costs Software development costs relate primarily to software coding, systems interfaces, and testing of the Company’s proprietary systems and are accounted for in accordance with ASC 350-40, Internal Use Software. Internal software development costs are capitalized from the time the internal use software is in the application development stage until the software is ready for use. Business analysis, system evaluation, and software maintenance costs are expensed as incurred. The capitalized software development costs are reported in property and equipment, net in the condensed consolidated balance sheets. The Company had $0.6 million in capitalized internal software development costs as of June 30, 2021 and none as of December 31, 2020. Capitalized software development costs are amortized using the straight-line method over the estimated useful life of the software, generally three Contract Balances Client contracts under which revenues have been recognized while the Company is not yet able to invoice results in contract assets. Generally, contract assets arise as a result of reallocating revenues when discounts are weighted more heavily in the early years of a multi-year contract or the client contract has substantive minimum fees that escalate over the term of the contract. Contract assets totaled $0.9 million and $0.8 million as of June 30, 2021 and December 31, 2020, respectively, which are included in other assets in the accompanying condensed consolidated balance sheets. Contract liabilities are comprised of billings or payments received from the Company’s clients in advance of performance under the contract and are represented in deferred revenues in the condensed consolidated balance sheets. Stock-Based Compensation Stock Options Stock options are accounted for using the grant date fair value method. Under this method, stock-based compensation expense is measured by the estimated fair value of the granted stock options at the date of grant using the Black-Scholes option pricing model and recognized over the vesting period with a corresponding increase to additional paid-in capital. Determining the fair value of stock-based awards at the grant date requires significant judgement. The determination of the grant date fair value of stock-based awards using the Black-Scholes option-pricing model is affected, for periods prior to the Company’s IPO, by the Company’s estimated common stock fair value as well as other subjective assumptions including the volatility, risk-free interest rate, dividends, and weighted average expected life. The assumptions used in the Company’s option-pricing model represent management’s best estimates. These assumptions and estimates are as follows: Fair Value of Common Stock. Given the absence of an active market for the Company’s shares of common stock prior to its IPO, the fair value of the shares of common stock underlying the Company’s stock options was determined by the Company’s board of directors (the “Board”). • Preliminary Offering Price and Options Granted Subsequent to December 31, 2020. During February 2021, the Company granted stock options to purchase shares of its common stock. The Company established the fair value of these grants based on a straight-line interpolation from its December 31, 2020 valuation and the mid-point of its initial price range in order to determine the appropriate stock-based compensation expense for financial reporting purposes. • Initial Public Offering Price and Options Granted Subsequent to April 13, 2021 . The Company’s stock became actively traded upon the completion of its IPO in April 2021. For grants issued upon or subsequent to its IPO the Company establishes fair value based on the Company’s stock price. Volatility: As the Company does not have the necessary trading history for its common stock the selected volatility used is representative of expected future volatility. The Company bases expected future volatility on the historical and implied volatility of comparable publicly traded companies over a similar expected term. Risk-Free Interest Rate: The Company bases the risk-free interest rate on the rate for a U.S. Treasury zero-coupon issue with a term that closely approximates the expected life of the option grant at the date nearest the option grant date. Dividends. The Company has never declared or paid any cash dividends and does not presently intend to pay cash dividends in the foreseeable future, other than the aggregate accumulated dividends paid to holders of the Company’s Series B redeemable convertible preferred stock upon the effectiveness of the Company’s IPO. As a result, the Company used a dividends assumption of zero. Weighted Average Expected Life in Years: The expected term of employee stock options reflects the period for which the Company believes the option will remain outstanding. To determine the expected term, the Company applies the simplified approach in which the expected term of an award is presumed to be the mid-point between the vesting date and the expiration date of the award. In addition to assumptions used in the Black-Scholes option-pricing model, the Company estimates a forfeiture rate to calculate the stock-based compensation expense for its option awards. The Company’s forfeiture rate is based on an analysis of its actual forfeitures. The Company will continue to evaluate the appropriateness of the forfeiture rate based on actual forfeiture experience, analysis of employee turnover and other factors. Restricted Stock Units Restricted stock units (“RSUs”) issued upon and subsequent to the Company’s IPO vest upon the satisfaction of a time-based condition only. These RSUs are generally earned over a service period of three Employee Stock Purchase Plan The Company’s 2021 Employee Stock Purchase Plan (the “ESPP”) permits employees to purchase the Company's common stock through payroll deductions during six month offerings. The offering periods begin each May 15 and November 15, or such other period determined by the compensation committee. In accordance with the guidance in ASC 718-50 - Compensation - Stock Compensation, the ability to purchase shares of the Company’s common stock for 85% of the lower of the price on the first day of the offering period or the last day of the offering period (i.e. the purchase date) represents an option and, therefore, the ESPP is a compensatory plan. Accordingly, stock-based compensation expense is determined based on the grant-date fair value as estimated by applying the Black-Scholes option-pricing model and is recognized over the withholding period. Concentrations of Credit Risk Significant concentrations of credit risk arise from the Company’s revenues and accounts receivable. Management believes that its contract acceptance, billing, and collection policies are adequate to minimize potential credit risk. No client represented more than 10% of revenue for the three and six months ended June 30, 2021 and 2020. As of June 30, 2021 and December 31, 2020, no client represented more than 10% of accounts receivable. Recent Accounting Pronouncements In February 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2016-02, “Leases (Topic 842),” to increase transparency and comparability among organizations by recognizing lease assets and lease liabilities on the condensed consolidated balance sheets and disclosing key information about leasing arrangements. The standard is effective for non-public entities for fiscal years beginning after December 15, 2020, and interim periods for the fiscal year beginning after December 15, 2021, and early application is permitted. The Company anticipates that the adoption of Topic 842 will impact its condensed consolidated balance sheets as most of its operating lease commitments will be subject to the new standard and recognized as right-of-use assets and corresponding operating lease liabilities upon the adoption of ASU 2016-02. The Company expects to adopt the standard in fiscal year 2021 using the modified retrospective transition approach and interim periods beginning 2022. The Company continues to evaluate quantitative impacts that the adoption of this standard will have. The Company expects total assets and liabilities reported will increase relative to such amounts prior to adoption. In June 2016, the FASB issued ASU No. 2016-13, “Financial Instruments—Credit Losses (Topic 326),” which modifies the measurement of expected credit losses of certain financial instruments with a methodology that reflects expected credit losses and requires consideration of a broader range of reasonable and supportable information to inform credit loss estimates. The effective date for adoption of the new standard was delayed until calendar years beginning after December 15, 2021, with early adoption permitted. This ASU is not expected to have a material impact on the Company’s financial statements. |
Business Combination
Business Combination | 6 Months Ended |
Jun. 30, 2021 | |
Business Combination and Asset Acquisition [Abstract] | |
Business Combination | Business Combination On October 4, 2020, the Company announced the acquisition of substantially all of the assets of ACH Alert for approximately $25 million in cash consideration. The integrated set of assets and activities acquired from ACH Alert through the acquisition meet the definition of a business under ASC 805, as updated by ASU 2017-01. A term loan of $25.0 million (“Term Loan”) was borrowed on October 16, 2020 to partially fund the acquisition of ACH Alert (see Note 8). The ACH Alert acquisition also involved $4.9 million of additional cash consideration that the Company placed on deposit with an escrow agent to be paid upon the continued employment of one of the owners of ACH Alert, of which $2.5 million is to be paid in October 2021 and $2.4 million is to be paid in October 2022. Since the payouts are contingent upon the continued and future employment of the former owner, these amounts have been excluded from the purchase price. The Company has classified the amounts held in escrow as restricted cash on the condensed consolidated balance sheets and is accruing the estimated payouts over the requisite service period as a component of general and administrative expense on the condensed consolidated statements of operations. For the three and six months ended June 30, 2021, the Company recognized compensation expense of $0.6 million and $1.2 million, respectively, related to this agreement. The Company’s preliminary fair value estimates and assumptions to measure the assets acquired and liabilities assumed were subject to change as the Company obtained additional information during the measurement period. The following table summarizes the fair value amounts recognized as of the acquisition date for each major class of asset acquired or liability assumed, as well as adjustments made during the measurement period: (in thousands) Preliminary Fair Value as of October 4, 2020 Measurement Period Adjustments Adjusted Fair Value as of March 31, 2021 Trade accounts receivables $ 915 $ — $ 915 Other current assets 47 (14) 33 Property and equipment 20 — 20 Goodwill 16,218 324 16,542 Intangible assets 8,450 — 8,450 Total assets acquired $ 25,650 $ 310 $ 25,960 Accounts payable $ 61 $ 5 $ 66 Accrued liabilities — 4 4 Deferred revenues, current 170 — 170 Deferred revenues, net of current 346 (25) 321 Total liabilities assumed 577 (16) 561 Net assets acquired $ 25,073 $ 326 $ 25,399 As of March 31, 2021, the allocation of the purchase price for ACH Alert was finalized. The table below outlines the purchased identifiable intangible assets: Weighted Average Amortization Period Total (in years) (in thousands) Customer relationships 15 $ 5,100 Developed technology 7 3,300 Trade names 2 50 Total identifiable intangible assets $ 8,450 Goodwill is mainly attributable to advantages expected from the acquisition such as giving the Company a complimentary solution to its existing platform offering, especially for banks. It is also expected to position the Company to better penetrate the banking market. This goodwill is expected to be deductible for tax purposes. |
Property and Equipment, Net
Property and Equipment, Net | 6 Months Ended |
Jun. 30, 2021 | |
Property, Plant and Equipment [Abstract] | |
Property and Equipment, Net | Property and Equipment, NetDepreciation expense was $0.6 million and $1.2 million for the three and six months ended June 30, 2021, respectively, and $0.7 million and $1.3 million for the three and six months ended June 30, 2020, respectively. (in thousands) Useful Life June 30, 2021 December 31, 2020 Software 1 to 3 years $ 1,366 $ 722 Computers and equipment 3 years 4,277 3,821 Furniture and fixtures 5 years 3,930 3,930 Leasehold improvements 3 to 10 years 11,663 11,650 $ 21,236 $ 20,123 Less: accumulated depreciation (10,818) (9,662) Property and equipment, net $ 10,418 $ 10,461 |
Revenue and Deferred Costs
Revenue and Deferred Costs | 6 Months Ended |
Jun. 30, 2021 | |
Revenue from Contract with Customer [Abstract] | |
Revenue and Deferred Costs | Revenue and Deferred CostsThe Company derives primarily all of its revenues from software-as-a-service (“SaaS”) subscription services charged for the use of its digital banking solutions. Revenues are recognized net of the most likely amount of sales credits and allowances and presented net of sales and usage-based taxes collected from clients on behalf of governmental authorities. SaaS subscription services are generally recognized as revenue over the term of the contract as a series of distinct SaaS services bundled into a single performance obligation. Clients are typically charged a one-time, upfront implementation fee and recurring annual and monthly access fees for the use of the Company’s digital banking solution. Implementation and integration of the digital banking platform is complex, and the Company has determined that the one-time, upfront services are not distinct. In determining whether implementation services are distinct from subscription services, the Company considered various factors including the significant level of integration, interdependency, and interrelation between the implementation and subscription service, as well as the inability of the clients’ personnel or other service providers to perform significant portions of the services. As a result, the Company defers any arrangement fees for implementation services and recognizes such amounts over time on a ratable basis as one performance obligation with the underlying subscription revenue commencing when the client goes live on the platform, which corresponds with the date the client obtains access to the Company’s digital banking solution and begins to benefit from the service. The Company’s performance obligation for the SaaS series of services includes standing ready over the term of the contract to provide access to all of the clients’ users and process any transactions initiated by those users. The Company invoices clients each month for the contracted minimum number of registered users with an additional amount for users in excess of those minimums. The Company recognizes variable consideration related to registered user counts in excess of the contractual minimum amounts each month. SaaS subscription revenues also includes annual and monthly charges for maintenance and support services which are recognized over the subscription term. As mentioned above, SaaS contracts include a single performance obligation that consists of a series of distinct SaaS services transferred over time that are substantially the same each month. Standalone selling prices are not required to allocate revenue amongst the distinct services within the series. The Company uses an analysis of pricing and discounting objectives, expected volume of users above contracted minimums and transactions, and client characteristics to ensure the revenue standards’ allocation objectives have been met. In limited circumstances when a contract calls for certain discounting to be triggered by volumes above contracted minimums, the Company is required to estimate these volumes in order to calculate revenue recognition in line with the standard’s allocation objectives. The following table disaggregates the Company's revenue by major source for the three and six months ended June 30, 2021 and 2020: Three months ended June 30, Six months ended June 30, (in thousands) 2021 2020 2021 2020 SaaS subscription services $ 34,604 $ 25,144 $ 66,173 $ 46,658 Implementation services 1,636 1,046 2,936 2,323 Other services 461 476 854 895 Total revenues $ 36,701 $ 26,666 $ 69,963 $ 49,876 Deferred Cost Recognition The Company capitalized $0.2 million and $0.5 million in deferred commissions costs during the three and six months ended June 30, 2021, respectively and $0.5 million and $0.8 million for the three and six months ended June 30, 2020, respectively, and recognized $0.5 million and $1.0 million of amortization during the three and six months ended June 30, 2021, respectively, and $0.4 million and $0.7 million for the three and six months ended June 30, 2020, respectively. Amortization expense is included in sales and marketing expenses in the accompanying statements of operations. Deferred commissions are included in deferred implementation costs in the accompanying condensed consolidated balance sheets in the amount of $8.5 million and $9.0 million as of June 30, 2021 and December 31, 2020, respectively. The Company capitalized implementation costs of $1.3 million and $2.7 million during the three and six months ended June 30, 2021, respectively, and $1.0 million and $2.2 million for the three and six months ended June 30, 2020, respectively, and recognized amortization of $0.7 million and $1.2 million during the three and six months ended June 30, 2021, respectively, and $0.5 million and $1.0 million for the three and six months ended June 30, 2020, respectively. Amortization expense is included in cost of revenues in the accompanying condensed consolidated statements of operations. The Company periodically reviews the carrying amount of deferred costs to determine whether events or changes in circumstances have occurred that could impact the period of benefit. No impairment loss was recognized in relation to these capitalized costs for the three and six months ended June 30, 2021 and 2020. |
Accounts Receivable
Accounts Receivable | 6 Months Ended |
Jun. 30, 2021 | |
Receivables [Abstract] | |
Accounts Receivable | Accounts Receivable Accounts receivable includes the following amounts at June 30, 2021 and December 31, 2020: June 30, December 31, (in thousands) 2021 2020 Trade accounts receivable $ 12,491 $ 11,804 Unbilled receivables 2,649 2,081 Other receivables 624 702 Total receivables 15,764 14,587 Allowance for doubtful accounts (32) (323) Reserve for estimated credits (142) (161) $ 15,590 $ 14,103 |
Accrued Liabilities
Accrued Liabilities | 6 Months Ended |
Jun. 30, 2021 | |
Payables and Accruals [Abstract] | |
Accrued Liabilities | Accrued Liabilities Accrued liabilities consisted of the following at June 30, 2021 and December 31, 2020: June 30, December 31, (in thousands) 2021 2020 Bonus accrual $ 5,331 $ 2,636 Accrued vendor purchases 1,984 2,542 Commissions accrual 1,226 1,309 Accrued hosting services 1,696 924 Client refund liability 1,008 1,362 Deferred compensation payable 1,875 625 Accrued consulting and professional fees 485 207 Accrued tax liabilities 2,427 2,394 Other accrued liabilities 2,714 1,100 Total accrued liabilities $ 18,746 $ 13,099 |
Debt
Debt | 6 Months Ended |
Jun. 30, 2021 | |
Debt Disclosure [Abstract] | |
Debt | Debt On October 16, 2020, the Company entered into a credit agreement with Silicon Valley Bank and KeyBank (“Credit Agreement”). The Credit Agreement replaced the prior credit facility provided by Comerica Bank. The Credit Agreement matures on October 16, 2023. The Credit Agreement includes the following: • Revolving Facility: The Credit Agreement provides $25.0 million in aggregate commitments for secured revolving loans, with sub-limits of $10.0 million for the issuance of letters of credit and $7.5 million for swingline loans (“Revolving Facility”). • Term Loan: A Term Loan of $25.0 million was borrowed on the closing date of the Credit Agreement. The proceeds from the Term Loan were used to fund the acquisition of ACH Alert which closed on October 4, 2020. • Accordion Feature: The Credit Agreement also allows the Company, subject to certain conditions, to request additional revolving loan commitments in an aggregate principal amount of up to $30.0 million. Revolving Facility loans under the Credit Agreement may be voluntarily prepaid and re-borrowed. Principal payments on the Term Loan are due in quarterly installments equal to an initial amount of approximately $0.3 million, which begin December 31, 2021 and continue through September 30, 2022 and increase to approximately $0.6 million beginning on December 31, 2022 through the Credit Agreement maturity date. Once repaid or prepaid, the Term Loans may not be re-borrowed. Borrowings under the Credit Agreement bear interest at a variable rate based upon, at the Company’s option, either the LIBOR rate or the base rate (in each case, as customarily defined) plus an applicable margin. The minimum LIBOR rate to be applied is 1.00%. The applicable margin for LIBOR rate loans ranges , based on an applicable recurring revenue leverage ratio, from 3.00% to 3.50% per annum, and the applicable margin for base rate loans ranges from 2.00 to 2.50% per annum. The Company’s minimum interest rate applied to term debt was 4.00% as of June 30, 2021. The Company is required to pay a commitment fee of 0.30% per annum on the undrawn portion available under the Revolving Facility, and variable fees on outstanding letters of credit. All outstanding principal and accrued but unpaid interest is due, and the commitments for the Revolving Facility terminate, on the maturity date. The Term Loans are subject to mandatory repayment requirements in the event of certain asset sales or if certain insurance or condemnation events occur, subject to customary reinvestment provisions. The Company may prepay the Term Loans in whole or in part at any time without premium or penalty. The Credit Agreement contains customary affirmative and negative covenants, as well as (i) an annual recurring revenue growth covenant requiring the loan parties to have recurring revenues in any four consecutive fiscal quarter period in an amount that is 10% greater than the recurring revenues for the corresponding four consecutive quarter period in the previous year and (ii) a liquidity (defined as the aggregate amount of cash in bank accounts subject to a control agreement plus availability under the Revolving Facility) covenant, requiring the loan parties to have liquidity, tested on the last day of each calendar month, of $10.0 million or more. The Credit Agreement also contains customary events of default, which if they occur, could result in the termination of commitments under the Credit Agreement, the declaration that all outstanding loans are immediately due and payable in whole or in part, and the requirement to maintain cash collateral deposits in respect of outstanding letters of credit. The Company was in compliance with all covenants as of June 30, 2021. Long-term Debt The following table summarizes long-term debt obligations as of June 30, 2021 and December 31, 2020 (in thousands): June 30, 2021 December 31, 2020 Term Debt $ 25,000 $ 25,000 Less unamortized debt issuance costs (95) (121) Net amount 24,905 24,879 Less current maturities of long-term debt (938) (313) Long-term portion $ 23,967 $ 24,566 Maturities of long-term debt outstanding as of June 30, 2021, are summarized as follows (in thousands): 2021 $ 313 2022 1,562 2023 23,125 Thereafter — Total $ 25,000 |
Redeemable Convertible Preferre
Redeemable Convertible Preferred Stock and Stockholders' Equity (Deficit) | 6 Months Ended |
Jun. 30, 2021 | |
Equity [Abstract] | |
Redeemable Convertible Preferred Stock and Stockholders' Equity (Deficit) | Redeemable Convertible Preferred Stock and Stockholders' Equity (Deficit) In connection with its IPO, the Company's certificate of incorporation was amended and restated such that the total number of shares of common stock authorized to be issued was increased to 500,000,000 shares and the total number of shares of preferred stock authorized to be issued was reduced to 10,000,000 shares. Repurchase of Common Stock During the three months ended March 31, 2021, former employees obtained a third-party offer for the purchase of 0.2 million shares of common stock held in the Company. As the Company had the right of first refusal for the sale of these shares, the Company repurchased the shares for $3.5 million from the former employees at the price offered. Redeemable Convertible Preferred Stock As of December 31, 2020, the Company was authorized to issue seven classes of stock: common stock, Series A redeemable convertible preferred stock, Series B redeemable convertible preferred stock, Series C redeemable convertible preferred stock, Series D redeemable convertible preferred stock, Series E redeemable convertible preferred stock and Series F redeemable convertible preferred stock. These preferred shares were classified as temporary equity within the Company’s consolidated balance sheet as of December 31, 2020. Immediately prior to the effectiveness of the Company’s registration statement relating to its IPO, the Company’s outstanding shares of redeemable convertible preferred stock converted into an aggregate of 72,225,916 shares of common stock. With the proceeds from its IPO, the Company paid in full accumulated dividends on its previously outstanding shares of Series B redeemable convertible preferred stock, which totaled approximately $5.0 million. As of June 30, 2021, there was no preferred stock issued or outstanding. Warrants |
Equity Compensation
Equity Compensation | 6 Months Ended |
Jun. 30, 2021 | |
Share-based Payment Arrangement [Abstract] | |
Equity Compensation | Equity Compensation On February 25, 2021, the Board approved, subject to stockholder approval which, was obtained on March 23, 2021, the ESPP, pursuant to which employees would be able to purchase shares of the Company’s common stock at a 15% discount. The Board provided for a share reserve with respect to the ESPP of 2% of the total number of shares outstanding after the Company’s IPO. The Board further provided that the share reserve will be refreshed by an evergreen provision of 1% of the Company’s outstanding common stock at the end of the prior year, or such lesser amount as the Board or its Compensation Committee may determine. The Company reserved 2,205,790 shares of common stock for future issuance under the ESPP. On February 25, 2021, the Board approved, subject to stockholder approval, which was obtained on March 23, 2021, the Company’s 2021 Incentive Award Plan (the “2021 Plan”), pursuant to which incentive awards may be awarded to employees, directors and consultants. The Board provided that the maximum number of shares of common stock (subject to stock splits, dividends, recapitalizations and the like) issuable under the 2021 Plan is equal to a number of shares equal to (i) 11.0% of the shares of common stock outstanding immediately prior to the effectiveness of its IPO after giving effect to the number of shares being sold in its IPO (including shares subject to outstanding equity awards, and the 2021 share reserve and the ESPP share reserve (as described above)) and assuming no exercise of the underwriters’ option to purchase additional shares, plus (ii) an annual increase on the first day of each year beginning in 2022 and ending in 2031, equal to the lesser of: (a) 5.0% of the shares outstanding on the last day of the prior fiscal year or (b) such lesser amount as determined by the Board, plus (iii) any shares underlying awards outstanding under the 2011 Long-Term Incentive Plan, as amended (the “2011 Plan”), as of immediately prior to the effectiveness of its IPO, that are thereafter forfeited, terminated, expired or repurchased for the original purchase price thereof, subject to certain statutory limits related to “incentive stock options” within the meaning of Section 422 of the Internal Revenue Code. The Company reserved 12,131,846 shares of common stock for issuance pursuant to future awards under the 2021 Plan. Stock Options During the six months ended June 30, 2021, the Company granted an aggregate of 2,811,098 stock options to purchase shares of its common stock to officers and employees pursuant to the 2011 Plan and 2021 Plan, with a weighted average exercise price of $19.92 per share. The fair value of options granted was estimated at the date of grant using the Black-Scholes option-pricing model with the following weighted average assumptions (i) expected term of 6.03 years, (ii) expected volatility of 36.9%, (iii) risk-free interest rate 0.7% and (iv) expected dividend yield of 0%. Restricted Stock Units In April 2021, the Company granted an aggregate of 213,500 RSUs to officers and employees pursuant to the 2021 Plan. The RSUs vest and settle upon the satisfaction of a service condition. The service condition for the awards is satisfied over generally three Employee Stock Purchase Plan The first offering period commenced on May 15, 2021, and as of June 30, 2021, no shares had yet been issued under the plan. Stock-based compensation expense was included as follows: Three months ended June 30, Six months ended June 30, (in thousands) 2021 2020 2021 2020 Cost of revenues $ 465 $ 88 $ 698 $ 180 Research and development 702 101 1,001 206 Sales and marketing 240 33 344 66 General and administrative 1,616 228 2,398 457 Total stock-based compensation expenses $ 3,023 $ 450 $ 4,441 $ 909 The amount of stock-based compensation capitalized as part of deferred implementation costs was insignificant for the three and six months ended June 30, 2021 and June 30, 2020. Due to net operating losses, there was no tax expense or benefit recorded in connection with stock-based compensation expense. |
Income Taxes
Income Taxes | 6 Months Ended |
Jun. 30, 2021 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income TaxesThe provision for income taxes in the accompanying condensed consolidated statements of operations for the three and six months ended June 30, 2021 and 2020 was $0. The effective tax rate differs from the statutory tax rate primarily due to the impact of the full valuation allowance against the Company’s deferred tax assets. |
Earnings Per Share
Earnings Per Share | 6 Months Ended |
Jun. 30, 2021 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | Earnings Per ShareNet loss attributable to common stockholders used in computing basic and diluted earnings per share (“EPS”) has been calculated as the net loss less Series B cumulative dividends and other adjustments to redeemable convertible preferred stock of $0.3 million for both the three and six months ended June 30, 2021 and $0.3 million and $0.6 million for the three and six months ended June 30, 2020, respectively. The holders of the Company’s redeemable convertible preferred stock did not have a contractual obligation to share in the Company’s losses; therefore, no amount of total undistributed loss was allocated to redeemable convertible preferred stock. Upon the consummation of its IPO, all preferred stock converted to common stock, and therefore the Company had no issued or outstanding preferred stock as of June 30, 2021. Basic net loss per share attributable to common stockholders is computed by dividing net loss attributable to common stockholders by the weighted-average number of shares of common stock outstanding for the period. Because the Company has reported a net loss for the three and six months ended June 30, 2021 and 2020, the number of shares used to calculate diluted net loss per share attributable to common stockholders is the same as the number of shares used to calculate basic net loss per share attributable to common stockholders for the period presented because the potentially dilutive shares would have been antidilutive if included in the calculation. The computation of basic and diluted EPS is as follows for the three and six months ended June 30, 2021 and 2020: Three months ended June 30, Six months ended June 30, (In thousands, except shares and per share amounts) 2021 2020 2021 2020 Net loss $ (11,375) $ (7,267) $ (22,254) $ (17,522) Less: cumulative dividends and adjustments to redeemable convertible preferred stock — (277) (277) (554) Net loss attributable to common stockholders $ (11,375) $ (7,544) $ (22,531) $ (18,076) Weighted average shares of common stock outstanding - basic and diluted 74,831,512 4,635,852 40,399,138 4,602,436 Loss per common share - basic and diluted $ (0.15) $ (1.63) $ (0.56) $ (3.93) For the three and six months ended June 30, 2021 and 2020, the following potential shares of common stock were excluded from diluted EPS as the Company had a net loss in each period presented: As of June 30, 2021 2020 Stock options 10,934,687 12,972,626 Redeemable convertible preferred stock — 57,220,137 Warrants 212,408 212,408 Restricted stock units (RSUs) 213,500 — Total anti-dilutive common share equivalents 11,360,595 70,405,171 |
Commitment and Contingencies
Commitment and Contingencies | 6 Months Ended |
Jun. 30, 2021 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies Operating Lease Commitments The Company leases office space under non-cancelable operating leases for its corporate headquarters in Plano, Texas pursuant to a ten-year lease agreement under which the Company leases approximately 125,000 square feet of office space with an initial term that expires on August 31, 2028, with the option to extend the lease for either two additional terms of five years each or one additional term of ten years. Rent expense under operating leases was $1.2 million and $2.3 million for the three and six months ended June 30, 2021, respectively, and $1.2 million and $2.3 million for the three and six months ended June 30, 2020, respectively. Future minimum payments required under operating leases that have initial or remaining non-cancelable lease terms in excess of one year at June 30, 2021 were as follows (in thousands): Operating Leases 2021 $ 1,833 2022 3,710 2023 3,773 2024 3,835 2025 3,898 Thereafter 10,697 Total minimum lease payments $ 27,746 Deferred Rent and Tenant Allowances Deferred rent and tenant allowances are amortized and applied against rental expense over the lease term on a straight-line basis. As of June 30, 2021 and December 31, 2020, the Company had deferred rent and tenant allowance balances as follows: (in thousands) June 30, 2021 December 31, 2020 Deferred rent and tenant allowance $ 6,229 $ 6,463 Less: current portion (676) (596) Deferred rent and tenant allowance, net of current portion $ 5,553 $ 5,867 Legal Proceedings The Company may become party to various legal actions during the ordinary course of business. Defending such proceedings is costly and can impose a significant burden on management and employees, it may receive unfavorable preliminary or interim rulings in the course of litigation, and there can be no assurances that favorable final outcomes will be obtained. In addition, the Company’s industry is characterized by the existence of a large number of patents, copyrights, trademarks, trade secrets and other intellectual property and proprietary rights. Companies in its industry are often required to defend against litigation claims based on allegations of infringement or other violations of intellectual property rights. Furthermore, client agreements typically require the Company to indemnify clients against liabilities incurred in connection with claims alleging its solutions infringe the intellectual property rights of a third party. From time to time, the Company has been involved in disputes related to patent and other intellectual property rights of third parties, none of which has resulted in material liabilities. The Company expects these types of disputes may continue to arise in the future. Based upon present information, the Company believes that its liability, if any, arising from such pending legal proceedings, asserted legal claims and known potential legal claims which are likely to be asserted, is not reasonably likely to be material to the Company’s financial position, results of operations, or cash flows, taking into account established accruals for estimated liabilities. |
Related Party Transactions
Related Party Transactions | 6 Months Ended |
Jun. 30, 2021 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | Related Party Transactions CU Cooperative Systems, Inc. (“CU Cooperative”), a stockholder of the Company who is also a vendor, was paid fees of $1.0 million and $2.1 million, for the three and six months ended June 30, 2021, respectively, and $1.1 million and $2.3 million for the three and six months ended June 30, 2020, respectively, which relate to services resold to the Company’s clients. As of June 30, 2021, the Company had a $0.3 million payable balance due to CU Cooperative, and as of December 31, 2020, accounts payable included amounts due to CU Cooperative of $0.3 million. Mr. Todd Clark, who has served as President and Chief Executive Officer of CU Cooperative since 2016, is a member of the Board and was designated to serve as a member of the Board by CU Cooperative. CU Cooperative held 5% or more of the Company’s capital stock as of December 31, 2020.For the three and six months ended June 30, 2021, the Company employed a former owner of the acquired business ACH Alert. For certain operating and lease payments made on the former owner’s behalf and lockbox cash receipts due to the Company, a receivable of $1.4 million from the former owner was included in prepaid expenses and other current assets as of December 31, 2020. The Company had no significant receivable balance from the former owner as of June 30, 2021. |
Goodwill and Other Intangibles
Goodwill and Other Intangibles | 6 Months Ended |
Jun. 30, 2021 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Other Intangibles | Goodwill and Other Intangibles Goodwill and intangible assets deemed to have an indefinite life are not amortized, but are reviewed annually for impairment of value or when indicators of a potential impairment are present. As part of the Company’s business planning cycle, the Company will perform an annual goodwill impairment test in the fourth quarter of the fiscal year beginning in 2021. There were no indications of impairment of goodwill noted for the three months ended June 30, 2021. Goodwill had a carrying value of $16.5 million and $16.2 million as of June 30, 2021 and December 31, 2020, respectively. The Company recorded $0.3 million to goodwill during the six months ended June 30, 2021 due to a change in the purchase price allocation for ACH Alert as is appropriate during the measurement period. See Note 3 for additional information. Total intangibles, net, consisted of the following as of June 30, 2021 and December 31, 2020: As of June 30, 2021 (In thousands) Carrying Value Accumulated Amortization Net Carrying Value Finite-lived: Customer Relationships $ 5,100 $ (255) $ 4,845 Developed Technology 3,300 (353) 2,947 Tradenames 50 (19) 31 Subtotal amortizable intangible assets 8,450 (627) 7,823 Website domain name 25 — 25 Total intangible assets $ 8,475 $ (627) $ 7,848 As of December 31, 2020 (In thousands) Carrying Value Accumulated Amortization Net Carrying Value Finite-lived: Customer Relationships $ 5,100 $ (85) $ 5,015 Developed Technology 3,300 (118) 3,182 Tradenames 50 (6) 44 Subtotal amortizable intangible assets 8,450 (209) 8,241 Website domain name 25 — 25 Total intangible assets $ 8,475 $ (209) $ 8,266 Amortization expense recognized on intangible assets was $0.2 million and $0.4 million for the three and six months ended June 30, 2021, respectively. The Company did not recognize amortization expense related to intangible assets for the three and six months ended June 30, 2020. The following table shows the estimated annual amortization expense of the definite-lived intangible assets for the next five years and thereafter (in thousands): 2021 $ 418 2022 830 2023 811 2024 811 2025 811 Thereafter 4,142 $ 7,823 |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 6 Months Ended |
Jun. 30, 2021 | |
Accounting Policies [Abstract] | |
Basis of Presentation and Consolidation | Basis of Presentation and Consolidation The interim unaudited condensed consolidated financial statements have been prepared in accordance with generally accepted accounting principles in the United States of America (“GAAP”) for interim financial information. Accordingly, they do not include all of the information and footnotes required by GAAP for complete financial statements. All intercompany accounts and transactions are eliminated. In the Company's opinion, the accompanying interim unaudited condensed consolidated financial statements have been prepared on the same basis as the audited consolidated financial statements and include all adjustments, consisting of normal, recurring adjustments, necessary to present fairly the financial position, results of operations and cash flows for the periods indicated. Certain information and disclosures normally included in the notes to the annual consolidated financial statements prepared in accordance with GAAP have been omitted from these interim unaudited condensed consolidated financial statements pursuant to the rules and regulations of the SEC. Accordingly, these interim unaudited condensed consolidated financial statements should be read in conjunction with the consolidated financial statements and the accompanying notes for the fiscal year ended December 31, 2020, which are included in the final prospectus (the “Prospectus”) for the Company’s IPO filed with the SEC on April 15, 2021 pursuant to Rule 424(b)(4) under the Securities Act of 1933, as amended. Operating results for the three and six months ended June 30, 2021 are not necessarily indicative of results that may be expected for any other interim period or for the year ending December 31, 2021. The Company has no sources of other comprehensive income, and accordingly, net loss presented each period is the same as comprehensive loss. |
Use of Estimates | Use of Estimates The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Significant estimates and assumptions include determining the timing and amount of revenue recognition, recoverability and amortization period related to costs to obtain and fulfill contracts, and valuation of the Company’s stock options. |
Fair Value of Financial Instruments | Fair Value of Financial Instruments The Company’s financial instruments consist primarily of cash, restricted cash and cash equivalents, accounts receivable, accounts payable, long-term debt and stock warrants. The carrying values of cash, restricted cash and cash equivalents, accounts receivable, and accounts payable approximate their respective fair values due to the short-term nature of these instruments. The carrying value of long-term debt approximates its fair value due to the variable interest rate. Cash equivalents include amounts held in money market accounts that are measured at fair value using observable market prices. Warrant liabilities are valued using the Black-Scholes option pricing method and are presented at estimated fair value at the end of the reporting period. The assumptions used in preparing the Black-Scholes option pricing calculation include weighted average grant date fair value, volatility, risk-free interest rate, dividends, and weighted average expected life in years. Changes in the fair value of warrant liabilities are recognized as a gain or loss within non-operating income (expense). In connection with the Company’s IPO, warrants converted from a liability instrument to an equity instrument resulting in a reduction of the warrant liability to $0. The Company uses a three-tier fair value hierarchy, which prioritizes the inputs used in the valuation methodologies in measuring fair value: Level 1. Quoted prices (unadjusted) in active markets for identical assets or liabilities. Level 2. Significant other inputs that are directly or indirectly observable in the marketplace. Level 3. Significant unobservable inputs which are supported by little or no market activity. |
Cash and Cash Equivalents and Restricted Cash | Restricted Cash The Company defines restricted cash as cash that is legally restricted as to withdrawal or usage. The amounts included in restricted cash on the condensed consolidated balance sheets at June 30, 2021 and December 31, 2020 represent the additional cash proceeds in deposit with an escrow agent for satisfaction of contingent consideration related to the acquisition of ACH Alert, LLC (“ACH Alert”). |
Capitalized Software Development Costs | Capitalized Software Development Costs Software development costs relate primarily to software coding, systems interfaces, and testing of the Company’s proprietary systems and are accounted for in accordance with ASC 350-40, Internal Use Software. Internal software development costs are capitalized from the time the internal use software is in the application development stage until the software is ready for use. Business analysis, system evaluation, and software maintenance costs are expensed as incurred. The capitalized software development costs are reported in property and equipment, net in the condensed consolidated balance sheets. The Company had $0.6 million in capitalized internal software development costs as of June 30, 2021 and none as of December 31, 2020. Capitalized software development costs are amortized using the straight-line method over the estimated useful life of the software, generally three |
Contract Balances | Contract Balances Client contracts under which revenues have been recognized while the Company is not yet able to invoice results in contract assets. Generally, contract assets arise as a result of reallocating revenues when discounts are weighted more heavily in the early years of a multi-year contract or the client contract has substantive minimum fees that escalate over the term of the contract. Contract assets totaled $0.9 million and $0.8 million as of June 30, 2021 and December 31, 2020, respectively, which are included in other assets in the accompanying condensed consolidated balance sheets. Contract liabilities are comprised of billings or payments received from the Company’s clients in advance of performance under the contract and are represented in deferred revenues in the condensed consolidated balance sheets. |
Stock-Based Compensation | Stock-Based Compensation Stock Options Stock options are accounted for using the grant date fair value method. Under this method, stock-based compensation expense is measured by the estimated fair value of the granted stock options at the date of grant using the Black-Scholes option pricing model and recognized over the vesting period with a corresponding increase to additional paid-in capital. Determining the fair value of stock-based awards at the grant date requires significant judgement. The determination of the grant date fair value of stock-based awards using the Black-Scholes option-pricing model is affected, for periods prior to the Company’s IPO, by the Company’s estimated common stock fair value as well as other subjective assumptions including the volatility, risk-free interest rate, dividends, and weighted average expected life. The assumptions used in the Company’s option-pricing model represent management’s best estimates. These assumptions and estimates are as follows: Fair Value of Common Stock. Given the absence of an active market for the Company’s shares of common stock prior to its IPO, the fair value of the shares of common stock underlying the Company’s stock options was determined by the Company’s board of directors (the “Board”). • Preliminary Offering Price and Options Granted Subsequent to December 31, 2020. During February 2021, the Company granted stock options to purchase shares of its common stock. The Company established the fair value of these grants based on a straight-line interpolation from its December 31, 2020 valuation and the mid-point of its initial price range in order to determine the appropriate stock-based compensation expense for financial reporting purposes. • Initial Public Offering Price and Options Granted Subsequent to April 13, 2021 . The Company’s stock became actively traded upon the completion of its IPO in April 2021. For grants issued upon or subsequent to its IPO the Company establishes fair value based on the Company’s stock price. Volatility: As the Company does not have the necessary trading history for its common stock the selected volatility used is representative of expected future volatility. The Company bases expected future volatility on the historical and implied volatility of comparable publicly traded companies over a similar expected term. Risk-Free Interest Rate: The Company bases the risk-free interest rate on the rate for a U.S. Treasury zero-coupon issue with a term that closely approximates the expected life of the option grant at the date nearest the option grant date. Dividends. The Company has never declared or paid any cash dividends and does not presently intend to pay cash dividends in the foreseeable future, other than the aggregate accumulated dividends paid to holders of the Company’s Series B redeemable convertible preferred stock upon the effectiveness of the Company’s IPO. As a result, the Company used a dividends assumption of zero. Weighted Average Expected Life in Years: The expected term of employee stock options reflects the period for which the Company believes the option will remain outstanding. To determine the expected term, the Company applies the simplified approach in which the expected term of an award is presumed to be the mid-point between the vesting date and the expiration date of the award. In addition to assumptions used in the Black-Scholes option-pricing model, the Company estimates a forfeiture rate to calculate the stock-based compensation expense for its option awards. The Company’s forfeiture rate is based on an analysis of its actual forfeitures. The Company will continue to evaluate the appropriateness of the forfeiture rate based on actual forfeiture experience, analysis of employee turnover and other factors. Restricted Stock Units Restricted stock units (“RSUs”) issued upon and subsequent to the Company’s IPO vest upon the satisfaction of a time-based condition only. These RSUs are generally earned over a service period of three Employee Stock Purchase Plan The Company’s 2021 Employee Stock Purchase Plan (the “ESPP”) permits employees to purchase the Company's common stock through payroll deductions during six month offerings. The offering periods begin each May 15 and November 15, or such other period determined by the compensation committee. In accordance with the guidance in ASC 718-50 - Compensation - Stock Compensation, the ability to purchase shares of the Company’s common stock for 85% of the lower of the price on the first day of the offering period or the last day of the offering period (i.e. the purchase date) represents an option and, therefore, the ESPP is a compensatory plan. Accordingly, stock-based compensation expense is determined based on the grant-date fair value as estimated by applying the Black-Scholes option-pricing model and is recognized over the withholding period. |
Concentrations of Credit Risk | Concentrations of Credit RiskSignificant concentrations of credit risk arise from the Company’s revenues and accounts receivable. Management believes that its contract acceptance, billing, and collection policies are adequate to minimize potential credit risk. No client represented more than 10% of revenue for the three and six months ended June 30, 2021 and 2020. As of June 30, 2021 and December 31, 2020, no client represented more than 10% of accounts receivable. |
Recent Accounting Pronouncements | Recent Accounting Pronouncements In February 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2016-02, “Leases (Topic 842),” to increase transparency and comparability among organizations by recognizing lease assets and lease liabilities on the condensed consolidated balance sheets and disclosing key information about leasing arrangements. The standard is effective for non-public entities for fiscal years beginning after December 15, 2020, and interim periods for the fiscal year beginning after December 15, 2021, and early application is permitted. The Company anticipates that the adoption of Topic 842 will impact its condensed consolidated balance sheets as most of its operating lease commitments will be subject to the new standard and recognized as right-of-use assets and corresponding operating lease liabilities upon the adoption of ASU 2016-02. The Company expects to adopt the standard in fiscal year 2021 using the modified retrospective transition approach and interim periods beginning 2022. The Company continues to evaluate quantitative impacts that the adoption of this standard will have. The Company expects total assets and liabilities reported will increase relative to such amounts prior to adoption. In June 2016, the FASB issued ASU No. 2016-13, “Financial Instruments—Credit Losses (Topic 326),” which modifies the measurement of expected credit losses of certain financial instruments with a methodology that reflects expected credit losses and requires consideration of a broader range of reasonable and supportable information to inform credit loss estimates. The effective date for adoption of the new standard was delayed until calendar years beginning after December 15, 2021, with early adoption permitted. This ASU is not expected to have a material impact on the Company’s financial statements. |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Accounting Policies [Abstract] | |
Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis | The following table summarizes the Company’s financial assets measured at fair value as of June 30, 2021 and December 31, 2020 and indicates the fair value hierarchy of the valuation: Fair Value at Reporting Date Using (In thousands) June 30, 2021 Level 1 Level 2 Level 3 Assets: Money Market Accounts $ 34,587 $ 34,587 $ — $ — Total Assets $ 34,587 $ 34,587 $ — $ — Fair Value at Reporting Date Using (In thousands) December 31, 2020 Level 1 Level 2 Level 3 Assets: Money Market Accounts $ 143,277 $ 143,277 $ — $ — Total Assets $ 143,277 $ 143,277 $ — $ — Liabilities: Warrant Liabilities $ (2,692) $ — $ — $ (2,692) Total Liabilities $ (2,692) $ — $ — $ (2,692) |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation | The reconciliations of the beginning and ending balances during the six months ended June 30, 2021 for Level 3 assets and liabilities are as follows (in thousands): Asset and liability categories Beginning Level 3 Fair Value at January 1, 2021 Fair value adjustment Adjustment for conversion to equity accounting treatment upon IPO Ending Level 3 Fair Value at June 30, 2021 Warrant Liabilities $ (2,692) $ (3,035) $ 5,727 $ — |
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation | The reconciliations of the beginning and ending balances during the six months ended June 30, 2021 for Level 3 assets and liabilities are as follows (in thousands): Asset and liability categories Beginning Level 3 Fair Value at January 1, 2021 Fair value adjustment Adjustment for conversion to equity accounting treatment upon IPO Ending Level 3 Fair Value at June 30, 2021 Warrant Liabilities $ (2,692) $ (3,035) $ 5,727 $ — |
Schedule of Cash and Cash Equivalents | June 30, December 31, (in thousands) 2021 2020 Cash and cash equivalents $ 338,477 $ 166,790 Restricted cash included in Other assets 4,874 4,873 Total cash and cash equivalents and restricted cash $ 343,351 $ 171,663 |
Restrictions on Cash and Cash Equivalents | June 30, December 31, (in thousands) 2021 2020 Cash and cash equivalents $ 338,477 $ 166,790 Restricted cash included in Other assets 4,874 4,873 Total cash and cash equivalents and restricted cash $ 343,351 $ 171,663 |
Business Combination (Tables)
Business Combination (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Business Combination and Asset Acquisition [Abstract] | |
Schedule of Recognized Identified Assets Acquired and Liabilities Assumed | The Company’s preliminary fair value estimates and assumptions to measure the assets acquired and liabilities assumed were subject to change as the Company obtained additional information during the measurement period. The following table summarizes the fair value amounts recognized as of the acquisition date for each major class of asset acquired or liability assumed, as well as adjustments made during the measurement period: (in thousands) Preliminary Fair Value as of October 4, 2020 Measurement Period Adjustments Adjusted Fair Value as of March 31, 2021 Trade accounts receivables $ 915 $ — $ 915 Other current assets 47 (14) 33 Property and equipment 20 — 20 Goodwill 16,218 324 16,542 Intangible assets 8,450 — 8,450 Total assets acquired $ 25,650 $ 310 $ 25,960 Accounts payable $ 61 $ 5 $ 66 Accrued liabilities — 4 4 Deferred revenues, current 170 — 170 Deferred revenues, net of current 346 (25) 321 Total liabilities assumed 577 (16) 561 Net assets acquired $ 25,073 $ 326 $ 25,399 |
Schedule of Finite-Lived Intangible Assets Acquired as Part of Business Combination | The table below outlines the purchased identifiable intangible assets: Weighted Average Amortization Period Total (in years) (in thousands) Customer relationships 15 $ 5,100 Developed technology 7 3,300 Trade names 2 50 Total identifiable intangible assets $ 8,450 |
Property and Equipment, Net (Ta
Property and Equipment, Net (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Property, Plant and Equipment [Abstract] | |
Property and Equipment, Net | (in thousands) Useful Life June 30, 2021 December 31, 2020 Software 1 to 3 years $ 1,366 $ 722 Computers and equipment 3 years 4,277 3,821 Furniture and fixtures 5 years 3,930 3,930 Leasehold improvements 3 to 10 years 11,663 11,650 $ 21,236 $ 20,123 Less: accumulated depreciation (10,818) (9,662) Property and equipment, net $ 10,418 $ 10,461 |
Revenue and Deferred Costs (Tab
Revenue and Deferred Costs (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Revenue from Contract with Customer [Abstract] | |
Disaggregation of Revenue | The following table disaggregates the Company's revenue by major source for the three and six months ended June 30, 2021 and 2020: Three months ended June 30, Six months ended June 30, (in thousands) 2021 2020 2021 2020 SaaS subscription services $ 34,604 $ 25,144 $ 66,173 $ 46,658 Implementation services 1,636 1,046 2,936 2,323 Other services 461 476 854 895 Total revenues $ 36,701 $ 26,666 $ 69,963 $ 49,876 |
Accounts Receivable (Tables)
Accounts Receivable (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Receivables [Abstract] | |
Schedule of Accounts Receivable, Net | Accounts receivable includes the following amounts at June 30, 2021 and December 31, 2020: June 30, December 31, (in thousands) 2021 2020 Trade accounts receivable $ 12,491 $ 11,804 Unbilled receivables 2,649 2,081 Other receivables 624 702 Total receivables 15,764 14,587 Allowance for doubtful accounts (32) (323) Reserve for estimated credits (142) (161) $ 15,590 $ 14,103 |
Accrued Liabilities (Tables)
Accrued Liabilities (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Payables and Accruals [Abstract] | |
Schedule of Accrued Liabilities | Accrued liabilities consisted of the following at June 30, 2021 and December 31, 2020: June 30, December 31, (in thousands) 2021 2020 Bonus accrual $ 5,331 $ 2,636 Accrued vendor purchases 1,984 2,542 Commissions accrual 1,226 1,309 Accrued hosting services 1,696 924 Client refund liability 1,008 1,362 Deferred compensation payable 1,875 625 Accrued consulting and professional fees 485 207 Accrued tax liabilities 2,427 2,394 Other accrued liabilities 2,714 1,100 Total accrued liabilities $ 18,746 $ 13,099 |
Debt (Tables)
Debt (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Debt Disclosure [Abstract] | |
Schedule of Long-term Debt Instruments | The following table summarizes long-term debt obligations as of June 30, 2021 and December 31, 2020 (in thousands): June 30, 2021 December 31, 2020 Term Debt $ 25,000 $ 25,000 Less unamortized debt issuance costs (95) (121) Net amount 24,905 24,879 Less current maturities of long-term debt (938) (313) Long-term portion $ 23,967 $ 24,566 |
Schedule of Maturities of Long-term Debt | Maturities of long-term debt outstanding as of June 30, 2021, are summarized as follows (in thousands): 2021 $ 313 2022 1,562 2023 23,125 Thereafter — Total $ 25,000 |
Equity Compensation (Tables)
Equity Compensation (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Share-based Payment Arrangement [Abstract] | |
Share-based Payment Arrangement, Expensed and Capitalized, Amount | Stock-based compensation expense was included as follows: Three months ended June 30, Six months ended June 30, (in thousands) 2021 2020 2021 2020 Cost of revenues $ 465 $ 88 $ 698 $ 180 Research and development 702 101 1,001 206 Sales and marketing 240 33 344 66 General and administrative 1,616 228 2,398 457 Total stock-based compensation expenses $ 3,023 $ 450 $ 4,441 $ 909 The amount of stock-based compensation capitalized as part of deferred implementation costs was insignificant for the three and six months ended June 30, 2021 and June 30, 2020. Due to net operating losses, there was no tax expense or benefit recorded in connection with stock-based compensation expense. |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Earnings Per Share [Abstract] | |
Schedule of Earnings Per Share, Basic and Diluted | The computation of basic and diluted EPS is as follows for the three and six months ended June 30, 2021 and 2020: Three months ended June 30, Six months ended June 30, (In thousands, except shares and per share amounts) 2021 2020 2021 2020 Net loss $ (11,375) $ (7,267) $ (22,254) $ (17,522) Less: cumulative dividends and adjustments to redeemable convertible preferred stock — (277) (277) (554) Net loss attributable to common stockholders $ (11,375) $ (7,544) $ (22,531) $ (18,076) Weighted average shares of common stock outstanding - basic and diluted 74,831,512 4,635,852 40,399,138 4,602,436 Loss per common share - basic and diluted $ (0.15) $ (1.63) $ (0.56) $ (3.93) |
Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share | For the three and six months ended June 30, 2021 and 2020, the following potential shares of common stock were excluded from diluted EPS as the Company had a net loss in each period presented: As of June 30, 2021 2020 Stock options 10,934,687 12,972,626 Redeemable convertible preferred stock — 57,220,137 Warrants 212,408 212,408 Restricted stock units (RSUs) 213,500 — Total anti-dilutive common share equivalents 11,360,595 70,405,171 |
Commitment and Contingencies (T
Commitment and Contingencies (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule of Future Minimum Rental Payments for Operating Leases | Future minimum payments required under operating leases that have initial or remaining non-cancelable lease terms in excess of one year at June 30, 2021 were as follows (in thousands): Operating Leases 2021 $ 1,833 2022 3,710 2023 3,773 2024 3,835 2025 3,898 Thereafter 10,697 Total minimum lease payments $ 27,746 |
Schedule of Rent Expense | As of June 30, 2021 and December 31, 2020, the Company had deferred rent and tenant allowance balances as follows: (in thousands) June 30, 2021 December 31, 2020 Deferred rent and tenant allowance $ 6,229 $ 6,463 Less: current portion (676) (596) Deferred rent and tenant allowance, net of current portion $ 5,553 $ 5,867 |
Goodwill and Other Intangibles
Goodwill and Other Intangibles (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Finite-Lived Intangible Assets | Total intangibles, net, consisted of the following as of June 30, 2021 and December 31, 2020: As of June 30, 2021 (In thousands) Carrying Value Accumulated Amortization Net Carrying Value Finite-lived: Customer Relationships $ 5,100 $ (255) $ 4,845 Developed Technology 3,300 (353) 2,947 Tradenames 50 (19) 31 Subtotal amortizable intangible assets 8,450 (627) 7,823 Website domain name 25 — 25 Total intangible assets $ 8,475 $ (627) $ 7,848 As of December 31, 2020 (In thousands) Carrying Value Accumulated Amortization Net Carrying Value Finite-lived: Customer Relationships $ 5,100 $ (85) $ 5,015 Developed Technology 3,300 (118) 3,182 Tradenames 50 (6) 44 Subtotal amortizable intangible assets 8,450 (209) 8,241 Website domain name 25 — 25 Total intangible assets $ 8,475 $ (209) $ 8,266 |
Schedule of Indefinite-Lived Intangible Assets | Total intangibles, net, consisted of the following as of June 30, 2021 and December 31, 2020: As of June 30, 2021 (In thousands) Carrying Value Accumulated Amortization Net Carrying Value Finite-lived: Customer Relationships $ 5,100 $ (255) $ 4,845 Developed Technology 3,300 (353) 2,947 Tradenames 50 (19) 31 Subtotal amortizable intangible assets 8,450 (627) 7,823 Website domain name 25 — 25 Total intangible assets $ 8,475 $ (627) $ 7,848 As of December 31, 2020 (In thousands) Carrying Value Accumulated Amortization Net Carrying Value Finite-lived: Customer Relationships $ 5,100 $ (85) $ 5,015 Developed Technology 3,300 (118) 3,182 Tradenames 50 (6) 44 Subtotal amortizable intangible assets 8,450 (209) 8,241 Website domain name 25 — 25 Total intangible assets $ 8,475 $ (209) $ 8,266 |
Schedule of Definite-Lived Intangible Assets, Future Amortization Expense | The following table shows the estimated annual amortization expense of the definite-lived intangible assets for the next five years and thereafter (in thousands): 2021 $ 418 2022 830 2023 811 2024 811 2025 811 Thereafter 4,142 $ 7,823 |
Organization (Details)
Organization (Details) - USD ($) $ / shares in Units, $ in Millions | Apr. 13, 2021 | Apr. 12, 2021 | Jun. 30, 2021 | Dec. 31, 2020 |
Subsidiary, Sale of Stock [Line Items] | ||||
Common stock, shares authorized | 500,000,000 | 101,671,156 | ||
Redeemable convertible preferred stock, authorized (in shares) | 0 | 72,799,602 | ||
Preferred stock converted into common stock (in shares) | 72,225,916 | |||
Payment of accumulated dividends | $ 5 | |||
Number of shares converted from warrants (in shares) | 212,408 | |||
IPO | ||||
Subsidiary, Sale of Stock [Line Items] | ||||
Shares sold in offering | 6,900,000 | |||
Public offering price per share (in dollars per share) | $ 30 | |||
Public offering, aggregate cash proceeds | $ 192.8 | |||
Common stock, shares authorized | 500,000,000 | |||
Redeemable convertible preferred stock, authorized (in shares) | 10,000,000 | |||
Over-Allotment Option | ||||
Subsidiary, Sale of Stock [Line Items] | ||||
Shares sold in offering | 900,000 |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies - Narrative (Details) - USD ($) | 6 Months Ended | ||
Jun. 30, 2021 | Apr. 13, 2021 | Dec. 31, 2020 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Warrant liability | $ 0 | $ 0 | $ 2,692,000 |
Capitalized internal software development costs | 600,000 | 0 | |
Contract assets | $ 900,000 | $ 800,000 | |
Minimum | Restricted stock units (RSUs) | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Award requisite service period | 3 years | ||
Minimum | Software Development Costs | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Useful life (in years) | 3 years | ||
Maximum | Restricted stock units (RSUs) | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Award requisite service period | 4 years | ||
Maximum | Software Development Costs | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Useful life (in years) | 5 years |
Summary of Significant Accoun_5
Summary of Significant Accounting Policies - Schedule of Fair Value of Assets and Liabilities Measured At Fair Value (Details) - USD ($) | 6 Months Ended | ||
Jun. 30, 2021 | Apr. 13, 2021 | Dec. 31, 2020 | |
Liabilities: | |||
Warrant liability | $ 0 | $ 0 | $ (2,692,000) |
Fair Value, Recurring | |||
Assets: | |||
Total Assets | 34,587,000 | 143,277,000 | |
Liabilities: | |||
Warrant liability | (2,692,000) | ||
Total Liabilities | (2,692,000) | ||
Fair Value, Recurring | Money Market Accounts | |||
Assets: | |||
Money Market Accounts | 34,587,000 | 143,277,000 | |
Fair Value, Recurring | Level 1 | |||
Assets: | |||
Total Assets | 34,587,000 | 143,277,000 | |
Liabilities: | |||
Warrant liability | 0 | ||
Total Liabilities | 0 | ||
Fair Value, Recurring | Level 1 | Money Market Accounts | |||
Assets: | |||
Money Market Accounts | 34,587,000 | 143,277,000 | |
Fair Value, Recurring | Level 2 | |||
Assets: | |||
Total Assets | 0 | 0 | |
Liabilities: | |||
Warrant liability | 0 | ||
Total Liabilities | 0 | ||
Fair Value, Recurring | Level 2 | Money Market Accounts | |||
Assets: | |||
Money Market Accounts | 0 | 0 | |
Fair Value, Recurring | Level 3 | |||
Assets: | |||
Total Assets | 0 | 0 | |
Liabilities: | |||
Warrant liability | 0 | (2,692,000) | |
Total Liabilities | (2,692,000) | ||
Fair value adjustment | (3,035,000) | ||
Adjustment for conversion to equity accounting treatment upon IPO | 5,727,000 | ||
Fair Value, Recurring | Level 3 | Money Market Accounts | |||
Assets: | |||
Money Market Accounts | $ 0 | $ 0 |
Summary of Significant Accoun_6
Summary of Significant Accounting Policies - Reconciliation of Cash and Restricted Cash (Details) - USD ($) $ in Thousands | Jun. 30, 2021 | Dec. 31, 2020 | Jun. 30, 2020 | Dec. 31, 2019 |
Accounting Policies [Abstract] | ||||
Cash and cash equivalents | $ 338,477 | $ 166,790 | ||
Restricted cash included in Other assets | 4,874 | 4,873 | ||
Total cash and cash equivalents and restricted cash | $ 343,351 | $ 171,663 | $ 15,549 | $ 11,982 |
Business Combination - Narrativ
Business Combination - Narrative (Details) - USD ($) $ in Millions | Oct. 16, 2020 | Oct. 04, 2020 | Jun. 30, 2021 | Jun. 30, 2021 |
Term Loan | Line of Credit | ||||
Business Acquisition [Line Items] | ||||
Proceeds from issuance of long-term debt | $ 25 | |||
ACH Alert | ||||
Business Acquisition [Line Items] | ||||
Cash consideration paid | $ 25 | |||
Contingent consideration | 4.9 | |||
Contingent consideration to be paid in 2021 | 2.5 | |||
Contingent consideration to be paid in 2022 | $ 2.4 | |||
Compensation expense | $ 0.6 | $ 1.2 |
Business Combination - Schedule
Business Combination - Schedule of Purchase Price Allocation (Details) - USD ($) $ in Thousands | 6 Months Ended | |||
Jun. 30, 2021 | Mar. 31, 2021 | Dec. 31, 2020 | Oct. 04, 2020 | |
Assets | ||||
Goodwill | $ 16,542 | $ 16,218 | ||
Increase in goodwill during period | $ 300 | |||
ACH Alert | ||||
Assets | ||||
Trade accounts receivables | $ 915 | $ 915 | ||
Other current assets | 33 | 47 | ||
Measurement Period Adjustments, Other current assets | (14) | |||
Property and equipment | 20 | 20 | ||
Goodwill | 16,542 | 16,218 | ||
Increase in goodwill during period | 324 | |||
Intangible assets | 8,450 | 8,450 | ||
Total assets acquired | 25,960 | 25,650 | ||
Measurement Period Adjustments, Total assets acquired | 310 | |||
Liabilities | ||||
Accounts payable | 66 | 61 | ||
Measurement Period Adjustments, Accounts payable | 5 | |||
Accrued liabilities | 4 | 0 | ||
Measurement Period Adjustments, Accrued liabilities | 4 | |||
Deferred revenues, current | 170 | 170 | ||
Deferred revenues, net of current | 321 | 346 | ||
Measurement Period Adjustments, Deferred revenue, net of current | (25) | |||
Total liabilities assumed | 561 | 577 | ||
Measurement Period Adjustments, Total liabilities assumed | (16) | |||
Net assets acquired | 25,399 | $ 25,073 | ||
Measurement Period Adjustments, Net assets acquired | $ 326 |
Business Combination - Schedu_2
Business Combination - Schedule of Purchased Identifiable Intangible Assets (Details) - ACH Alert $ in Thousands | Oct. 04, 2020USD ($) |
Business Acquisition [Line Items] | |
Total identifiable intangible assets | $ 8,450 |
Customer relationships | |
Business Acquisition [Line Items] | |
Weighted Average Amortization Period | 15 years |
Total identifiable intangible assets | $ 5,100 |
Developed technology | |
Business Acquisition [Line Items] | |
Weighted Average Amortization Period | 7 years |
Total identifiable intangible assets | $ 3,300 |
Trade names | |
Business Acquisition [Line Items] | |
Weighted Average Amortization Period | 2 years |
Total identifiable intangible assets | $ 50 |
Property and Equipment, Net - N
Property and Equipment, Net - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Property, Plant and Equipment [Abstract] | ||||
Depreciation | $ 0.6 | $ 0.7 | $ 1.2 | $ 1.3 |
Property and Equipment, Net - S
Property and Equipment, Net - Schedule of Property and Equipment, Net (Details) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2021 | Dec. 31, 2020 | |
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | $ 21,236 | $ 20,123 |
Less: accumulated depreciation | (10,818) | (9,662) |
Property and equipment, net | 10,418 | 10,461 |
Software | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | $ 1,366 | 722 |
Software | Minimum | ||
Property, Plant and Equipment [Line Items] | ||
Useful life (in years) | 1 year | |
Software | Maximum | ||
Property, Plant and Equipment [Line Items] | ||
Useful life (in years) | 3 years | |
Computers and equipment | ||
Property, Plant and Equipment [Line Items] | ||
Useful life (in years) | 3 years | |
Property and equipment, gross | $ 4,277 | 3,821 |
Furniture and fixtures | ||
Property, Plant and Equipment [Line Items] | ||
Useful life (in years) | 5 years | |
Property and equipment, gross | $ 3,930 | 3,930 |
Leasehold improvements | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | $ 11,663 | $ 11,650 |
Leasehold improvements | Minimum | ||
Property, Plant and Equipment [Line Items] | ||
Useful life (in years) | 3 years | |
Leasehold improvements | Maximum | ||
Property, Plant and Equipment [Line Items] | ||
Useful life (in years) | 10 years |
Revenue and Deferred Costs - Di
Revenue and Deferred Costs - Disaggregation of Revenue (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Disaggregation of Revenue [Line Items] | ||||
Total revenues | $ 36,701 | $ 26,666 | $ 69,963 | $ 49,876 |
SaaS Services | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenues | 34,604 | 25,144 | 66,173 | 46,658 |
Implementation services | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenues | 1,636 | 1,046 | 2,936 | 2,323 |
Other services | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenues | $ 461 | $ 476 | $ 854 | $ 895 |
Revenue and Deferred Costs - Na
Revenue and Deferred Costs - Narrative (Details) - USD ($) | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | Dec. 31, 2020 | |
Disaggregation of Revenue [Line Items] | |||||
Revenue recognized during period | $ 2,000,000 | $ 2,700,000 | $ 3,700,000 | $ 4,500,000 | |
Remaining performance obligation, amount | 536,000,000 | 536,000,000 | |||
Impairment loss on deferred costs | 0 | 0 | 0 | 0 | |
Deferred Commissions Costs | |||||
Disaggregation of Revenue [Line Items] | |||||
Capitalized cost during period | 200,000 | 500,000 | 500,000 | 800,000 | |
Amortization of capitalized costs | 500,000 | 400,000 | 1,000,000 | 700,000 | |
Deferred commissions | 8,500,000 | 8,500,000 | $ 9,000,000 | ||
Deferred Implementation Costs | |||||
Disaggregation of Revenue [Line Items] | |||||
Capitalized cost during period | 1,300,000 | 1,000,000 | 2,700,000 | 2,200,000 | |
Amortization of capitalized costs | $ 700,000 | $ 500,000 | $ 1,200,000 | $ 1,000,000 |
Revenue and Deferred Costs - Re
Revenue and Deferred Costs - Remaining Performance Obligation (Details) | Jun. 30, 2021 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2021-07-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Remaining performance obligation (as a percent) | 45.00% |
Remaining performance obligation, period | 24 months |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2023-07-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Remaining performance obligation (as a percent) | 34.00% |
Remaining performance obligation, period | 24 months |
Accounts Receivable (Details)
Accounts Receivable (Details) - USD ($) $ in Thousands | Jun. 30, 2021 | Dec. 31, 2020 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total receivables | $ 15,764 | $ 14,587 |
Allowance for doubtful accounts | (32) | (323) |
Reserve for estimated credits | (142) | (161) |
Accounts receivable, net | 15,590 | 14,103 |
Trade accounts receivable | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total receivables | 12,491 | 11,804 |
Unbilled receivables | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total receivables | 2,649 | 2,081 |
Other receivables | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total receivables | $ 624 | $ 702 |
Accrued Liabilities (Details)
Accrued Liabilities (Details) - USD ($) $ in Thousands | Jun. 30, 2021 | Dec. 31, 2020 |
Payables and Accruals [Abstract] | ||
Bonus accrual | $ 5,331 | $ 2,636 |
Accrued vendor purchases | 1,984 | 2,542 |
Commissions accrual | 1,226 | 1,309 |
Accrued hosting services | 1,696 | 924 |
Client refund liability | 1,008 | 1,362 |
Deferred compensation payable | 1,875 | 625 |
Accrued consulting and professional fees | 485 | 207 |
Accrued tax liabilities | 2,427 | 2,394 |
Other accrued liabilities | 2,714 | 1,100 |
Total accrued liabilities | $ 18,746 | $ 13,099 |
Debt - Narrative (Details)
Debt - Narrative (Details) - USD ($) | Oct. 16, 2020 | Jun. 30, 2021 |
Debt Instrument [Line Items] | ||
Revenue growth requirement (as a percent) | 10.00% | |
Liquidity requirement | $ 10,000,000 | |
Line of Credit | London Interbank Offered Rate (LIBOR) | ||
Debt Instrument [Line Items] | ||
Basis spread on variable rate (as a percent) | 1.00% | |
Line of Credit | London Interbank Offered Rate (LIBOR) | Minimum | ||
Debt Instrument [Line Items] | ||
Basis spread on variable rate (as a percent) | 3.00% | |
Line of Credit | London Interbank Offered Rate (LIBOR) | Maximum | ||
Debt Instrument [Line Items] | ||
Basis spread on variable rate (as a percent) | 3.50% | |
Line of Credit | Base Rate | Minimum | ||
Debt Instrument [Line Items] | ||
Basis spread on variable rate (as a percent) | 200.00% | |
Line of Credit | Base Rate | Maximum | ||
Debt Instrument [Line Items] | ||
Basis spread on variable rate (as a percent) | 2.50% | |
Revolving Credit Facility | Line of Credit | ||
Debt Instrument [Line Items] | ||
Line of credit, maximum borrowing capacity | $ 25,000,000 | |
Accordion feature | $ 30,000,000 | |
Line of credit, unused capacity, commitment fee (as a percent) | 0.30% | |
Letter of Credit | Line of Credit | ||
Debt Instrument [Line Items] | ||
Line of credit, maximum borrowing capacity | $ 10,000,000 | |
Swingline Loan | Line of Credit | ||
Debt Instrument [Line Items] | ||
Line of credit, maximum borrowing capacity | 7,500,000 | |
Term Loan | Line of Credit | ||
Debt Instrument [Line Items] | ||
Line of credit, maximum borrowing capacity | 25,000,000 | |
Term Loan | Line of Credit | Beginning December 31, 2021 | ||
Debt Instrument [Line Items] | ||
Quarterly installment payments | 300,000 | |
Term Loan | Line of Credit | Beginning December 31, 2022 | ||
Debt Instrument [Line Items] | ||
Quarterly installment payments | $ 600,000 | |
Term Loan | Line of Credit | Minimum | ||
Debt Instrument [Line Items] | ||
Minimum interest rate applied to term debt (as a percent) | 4.00% |
Debt - Schedule of Long Term De
Debt - Schedule of Long Term Debt (Details) - USD ($) $ in Thousands | Jun. 30, 2021 | Dec. 31, 2020 |
Debt Disclosure [Abstract] | ||
Term Debt | $ 25,000 | $ 25,000 |
Less unamortized debt issuance costs | (95) | (121) |
Net amount | 24,905 | 24,879 |
Current portion of long-term debt | (938) | (313) |
Long-term portion | $ 23,967 | $ 24,566 |
Debt - Maturities of Long Term
Debt - Maturities of Long Term Debt (Details) - USD ($) $ in Thousands | Jun. 30, 2021 | Dec. 31, 2020 |
Debt Disclosure [Abstract] | ||
2021 | $ 313 | |
2022 | 1,562 | |
2023 | 23,125 | |
Thereafter | 0 | |
Total | $ 25,000 | $ 25,000 |
Redeemable Convertible Prefer_2
Redeemable Convertible Preferred Stock and Stockholders' Equity (Deficit) - Narrative (Details) $ in Thousands | Apr. 12, 2021USD ($)shares | Mar. 31, 2021USD ($)shares | Jun. 30, 2021USD ($)shares | Jun. 30, 2020USD ($) | Apr. 13, 2021shares | Dec. 31, 2020classshares |
Class of Stock [Line Items] | ||||||
Common stock, shares authorized | 500,000,000 | 101,671,156 | ||||
Redeemable convertible preferred stock, authorized (in shares) | 0 | 72,799,602 | ||||
Number of shares authorized for repurchase | 200,000 | |||||
Common stock repurchased | $ | $ 3,500 | $ 3,497 | $ 0 | |||
Number of classes of stock | class | 7 | |||||
Preferred stock converted into common stock (in shares) | 72,225,916 | |||||
Payment of accumulated dividends | $ | $ 5,000 | |||||
Number of shares converted from warrants (in shares) | 212,408 | |||||
IPO | ||||||
Class of Stock [Line Items] | ||||||
Common stock, shares authorized | 500,000,000 | |||||
Redeemable convertible preferred stock, authorized (in shares) | 10,000,000 |
Equity Compensation - Narrative
Equity Compensation - Narrative (Details) - $ / shares | Feb. 25, 2021 | Apr. 30, 2021 | Jun. 30, 2021 | Apr. 12, 2021 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Shares reserved for future issuance | 12,131,846 | |||
Shares issuable, percent of shares outstanding (as a percent) | 11.00% | |||
Shares issuable, percent of shares outstanding on last day of prior fiscal year (as a percent) | 5.00% | |||
ESPP | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Discount on share repurchase (as a percent) | 15.00% | |||
Reserve for future issuance (as a percent) | 2.00% | |||
Reserve for future issuance, evergreen provision (as a percent) | 1.00% | |||
Shares reserved for future issuance | 2,205,790 | |||
Stock options | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Stock options granted (in shares) | 2,811,098 | |||
Weighted average grant date fair value (in dollars per share) | $ 19.92 | |||
Expected term | 6 years 10 days | |||
Volatility (as a percent) | 36.90% | |||
Risk-free interest rate (as a percent) | 0.70% | |||
Expected dividend yield (as a percent) | 0.00% | |||
Restricted stock units (RSUs) | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Restricted stock units granted (in shares) | 213,500 | |||
Restricted stock units (RSUs) | Minimum | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Award requisite service period | 3 years | |||
Restricted stock units (RSUs) | Maximum | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Award requisite service period | 4 years |
Equity Compensation - Schedule
Equity Compensation - Schedule of Stock-based Compensation Expense (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | ||||
Total stock-based compensation expenses | $ 3,023 | $ 450 | $ 4,441 | $ 909 |
Cost of revenues | ||||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | ||||
Total stock-based compensation expenses | 465 | 88 | 698 | 180 |
Research and development | ||||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | ||||
Total stock-based compensation expenses | 702 | 101 | 1,001 | 206 |
Sales and marketing | ||||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | ||||
Total stock-based compensation expenses | 240 | 33 | 344 | 66 |
General and administrative | ||||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | ||||
Total stock-based compensation expenses | $ 1,616 | $ 228 | $ 2,398 | $ 457 |
Income Taxes - Narrative (Detai
Income Taxes - Narrative (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Income Tax Disclosure [Abstract] | ||||
Provision for income taxes | $ 0 | $ 0 | $ 0 | $ 0 |
Earnings Per Share - Narrative
Earnings Per Share - Narrative (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Earnings Per Share [Abstract] | ||||
Cumulative dividends and adjustments to redeemable convertible preferred stock | $ 0 | $ 277 | $ 277 | $ 554 |
Earnings Per Share - Computatio
Earnings Per Share - Computation of Earnings Per Share (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Earnings Per Share [Abstract] | ||||
Net loss | $ (11,375) | $ (7,267) | $ (22,254) | $ (17,522) |
Less: cumulative dividends and adjustments to redeemable convertible preferred stock | 0 | (277) | (277) | (554) |
Net loss attributable to common stockholders | (11,375) | (7,544) | (22,531) | (18,076) |
Net loss attributable to common stockholders | $ (11,375) | $ (7,544) | $ (22,531) | $ (18,076) |
Weighted average shares of common stock outstanding - basic (in shares) | 74,831,512 | 4,635,852 | 40,399,138 | 4,602,436 |
Weighted average shares of common stock outstanding - diluted (in shares) | 74,831,512 | 4,635,852 | 40,399,138 | 4,602,436 |
Loss per common share - basic (in dollars per share) | $ (0.15) | $ (1.63) | $ (0.56) | $ (3.93) |
Loss per common share - diluted (in dollars per share) | $ (0.15) | $ (1.63) | $ (0.56) | $ (3.93) |
Earnings Per Share - Schedule o
Earnings Per Share - Schedule of Antidilutive Securities (Details) - shares | 6 Months Ended | |
Jun. 30, 2021 | Jun. 30, 2020 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Total anti-dilutive common share equivalents | 11,360,595 | 70,405,171 |
Stock options | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Total anti-dilutive common share equivalents | 10,934,687 | 12,972,626 |
Redeemable convertible preferred stock | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Total anti-dilutive common share equivalents | 0 | 57,220,137 |
Warrants | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Total anti-dilutive common share equivalents | 212,408 | 212,408 |
Restricted stock units (RSUs) | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Total anti-dilutive common share equivalents | 213,500 | 0 |
Commitment and Contingencies -
Commitment and Contingencies - Narrative (Details) ft² in Thousands, $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021USD ($)ft²extension | Jun. 30, 2020USD ($) | Jun. 30, 2021USD ($)ft²extension | Jun. 30, 2020USD ($) | |
Operating Leased Assets [Line Items] | ||||
Lease term | 10 years | |||
Office space (in square foot) | ft² | 125 | 125 | ||
Rent expense | $ | $ 1.2 | $ 1.2 | $ 2.3 | $ 2.3 |
Lease Contractual Term One | ||||
Operating Leased Assets [Line Items] | ||||
Number of additional terms | 2 | 2 | ||
Operating lease extension period | 5 years | |||
Lease Contractual Term Two | ||||
Operating Leased Assets [Line Items] | ||||
Number of additional terms | 1 | 1 | ||
Operating lease extension period | 10 years |
Commitment and Contingencies _2
Commitment and Contingencies - Schedule of Lease Maturity (Details) $ in Thousands | Jun. 30, 2021USD ($) |
Commitments and Contingencies Disclosure [Abstract] | |
2021 | $ 1,833 |
2022 | 3,710 |
2023 | 3,773 |
2024 | 3,835 |
2025 | 3,898 |
Thereafter | 10,697 |
Total minimum lease payments | $ 27,746 |
Commitment and Contingencies _3
Commitment and Contingencies - Schedule of Deferred Rent and Tenant Allowances (Details) - USD ($) $ in Thousands | Jun. 30, 2021 | Dec. 31, 2020 |
Commitments and Contingencies Disclosure [Abstract] | ||
Deferred rent and tenant allowance | $ 6,229 | $ 6,463 |
Less: current portion | (676) | (596) |
Deferred rent and tenant allowance, net of current portion | $ 5,553 | $ 5,867 |
Related Party Transactions (Det
Related Party Transactions (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | Dec. 31, 2020 | |
CU Cooperative | |||||
Related Party Transaction [Line Items] | |||||
Fees paid to related parties | $ 1 | $ 1.1 | $ 2.1 | $ 2.3 | |
Due to related party | 0.3 | 0.3 | $ 0.3 | ||
Amount of capital stock held (as a percent) | 5.00% | ||||
Former owner of ACH Alert | |||||
Related Party Transaction [Line Items] | |||||
Due from related party | $ 1.4 | $ 1.4 |
Goodwill and Other Intangible_2
Goodwill and Other Intangibles - Narrative (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |
Jun. 30, 2021 | Jun. 30, 2021 | Dec. 31, 2020 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |||
Goodwill | $ 16,542 | $ 16,542 | $ 16,218 |
Increase in goodwill during period | 300 | ||
Amortization expense on intangible assets | $ 200 | $ 400 |
Goodwill and Other Intangible_3
Goodwill and Other Intangibles - Schedule of Total Intangibles, Net (Details) - USD ($) $ in Thousands | Jun. 30, 2021 | Dec. 31, 2020 |
Finite-Lived Intangible Assets [Line Items] | ||
Carrying Value | $ 8,450 | $ 8,450 |
Accumulated Amortization | (627) | (209) |
Net Carrying Value | 7,823 | 8,241 |
Website domain name | 25 | 25 |
Total carrying value, gross | 8,475 | 8,475 |
Total net carrying value | 7,848 | 8,266 |
Customer relationships | ||
Finite-Lived Intangible Assets [Line Items] | ||
Carrying Value | 5,100 | 5,100 |
Accumulated Amortization | (255) | (85) |
Net Carrying Value | 4,845 | 5,015 |
Developed technology | ||
Finite-Lived Intangible Assets [Line Items] | ||
Carrying Value | 3,300 | 3,300 |
Accumulated Amortization | (353) | (118) |
Net Carrying Value | 2,947 | 3,182 |
Trade names | ||
Finite-Lived Intangible Assets [Line Items] | ||
Carrying Value | 50 | 50 |
Accumulated Amortization | (19) | (6) |
Net Carrying Value | $ 31 | $ 44 |
Goodwill and Other Intangible_4
Goodwill and Other Intangibles - Schedule of Future Amortization Expense (Details) - USD ($) $ in Thousands | Jun. 30, 2021 | Dec. 31, 2020 |
Goodwill and Intangible Assets Disclosure [Abstract] | ||
2021 | $ 418 | |
2022 | 830 | |
2023 | 811 | |
2024 | 811 | |
2025 | 811 | |
Thereafter | 4,142 | |
Net Carrying Value | $ 7,823 | $ 8,241 |