Document and Entity Information
Document and Entity Information - shares | 6 Months Ended | |
Jun. 30, 2021 | Jul. 29, 2021 | |
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Jun. 30, 2021 | |
Document Fiscal Year Focus | 2021 | |
Document Fiscal Period Focus | Q2 | |
Entity Registrant Name | CONFLUENT, INC. | |
Entity Central Index Key | 0001699838 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Non-accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | true | |
Entity Ex Transition Period | false | |
Entity Current Reporting Status | No | |
Entity Interactive Data Current | Yes | |
Entity Shell Company | false | |
Entity File Number | 001-40526 | |
Entity Incorporation, State or Country Code | DE | |
Entity Tax Identification Number | 47-1824387 | |
Entity Address, Address Line One | 899 W. Evelyn Avenue | |
Entity Address, City or Town | Mountain View | |
Entity Address, State or Province | CA | |
Entity Address, Postal Zip Code | 94041 | |
City Area Code | 800 | |
Local Phone Number | 439-3207 | |
Document Transition Report | false | |
Document Quarterly Report | true | |
Class A Common Stock [Member] | ||
Trading Symbol | CFLT | |
Title of 12(b) Security | Class A Common Stock, par value $0.00001 per share | |
Security Exchange Name | NASDAQ | |
Entity Common Stock, Shares Outstanding | 27,577,309 | |
Class B Common Stock [Member] | ||
Entity Common Stock, Shares Outstanding | 232,832,727 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets (Unaudited) - USD ($) $ in Thousands | Jun. 30, 2021 | Dec. 31, 2020 |
Current assets: | ||
Cash and cash equivalents | $ 860,347 | $ 36,789 |
Marketable securities | 183,526 | 251,756 |
Accounts receivable, net of allowance | 117,176 | 105,971 |
Deferred contract acquisition costs | 20,516 | 14,403 |
Prepaid expenses and other current assets | 32,040 | 18,775 |
Total current assets | 1,213,605 | 427,694 |
Property and equipment, net | 9,060 | 6,718 |
Operating lease right-of-use assets | 43,482 | 48,273 |
Deferred contract acquisition costs, non-current | 41,848 | 33,196 |
Other assets, non-current | 9,983 | 10,238 |
Total assets | 1,317,978 | 526,119 |
Current liabilities: | ||
Accounts payable | 1,834 | 1,646 |
Accrued expenses and other liabilities | 49,970 | 33,711 |
Operating lease liabilities | 10,288 | 10,492 |
Deferred revenue | 172,671 | 142,901 |
Liability for early exercise of unvested stock options | 14,217 | 5,049 |
Total current liabilities | 248,980 | 193,799 |
Operating lease liabilities, non-current | 35,912 | 40,440 |
Deferred revenue, non-current | 17,873 | 16,292 |
Other liabilities, non-current | 11,668 | 7,203 |
Total liabilities | 314,433 | 257,734 |
Redeemable convertible preferred stock, par value $0.00001 per share; 0 and 115,277,850 shares authorized as of June 30, 2021 and December 31, 2020, respectively; 0, and 115,277,850 shares issued and outstanding as of June 30, 2021 and December 31, 2020, respectively; aggregate liquidation preference of $0 and $575,085 June 30, 2021 and December 31, 2020, respectively | 0 | 574,634 |
Stockholders’ deficit: | ||
Preferred stock, par value of $0.00001 per share; 0 and 0 shares authorized June 30, 2021 and December 31, 2020, respectively; 0 shares issued and outstanding June 30, 2021 and December 31, 2020 | 0 | 0 |
Common Stock, Value | 0 | 1 |
Additional paid-in capital | 1,542,338 | 99,575 |
Accumulated other comprehensive income (loss) | (46) | 228 |
Accumulated deficit | (538,749) | (406,053) |
Total stockholders’ equity (deficit) | 1,003,545 | (306,249) |
Total liabilities, redeemable convertible preferred stock, and stockholders’ equity (deficit) | 1,317,978 | 526,119 |
Convertible Founder Stock [Member] | ||
Stockholders’ deficit: | ||
Convertible Founder Stock, Value | 0 | 0 |
Class A Common Stock [Member] | ||
Stockholders’ deficit: | ||
Common Stock, Value | 0 | 0 |
Class B Common Stock [Member] | ||
Stockholders’ deficit: | ||
Common Stock, Value | 2 | 0 |
Total stockholders’ equity (deficit) | $ 2 | $ 1 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Unaudited) (Parenthetical) - USD ($) $ in Thousands | Jun. 30, 2021 | Dec. 31, 2020 |
Redeemable Convertible Preferred Stock, Par Value | $ 0.00001 | $ 0.00001 |
Redeemable Convertible Preferred Stock, Shares Authorized | 0 | 115,277,850 |
Redeemable Convertible Preferred Stock, Shares Issued | 0 | 115,277,850 |
Redeemable Convertible Preferred Stock, Shares Outstanding | 0 | 115,277,850 |
Redeemable Convertible Preferred Stock, Liquidation Preference | $ 0 | $ 575,085 |
Preferred Stock, Par Value | $ 0.00001 | $ 0.00001 |
Preferred Stock, Shares Authorized | 10,000,000 | 0 |
Preferred Stock, Shares Issued | 0 | 0 |
Preferred Stock, Shares Outstanding | 0 | 0 |
Common Stock, Par Value | $ 0.00001 | $ 0.00001 |
Common Stock, Shares Authorized | 0 | 323,000,000 |
Common Stock, Shares, Issued | 0 | 109,447,843 |
Common Stock, Shares, Outstanding | 0 | 109,447,843 |
Convertible Founder Stock [Member] | ||
Convertible Founder Stock, Par Value | $ 0.00001 | $ 0.00001 |
Convertible Founder Stock, Shares Authorized | 0 | 635,818 |
Convertible Founder Stock, Shares Issued | 0 | 635,818 |
Convertible Founder Stock, Shares Outstanding | 0 | 635,818 |
Class A Common Stock [Member] | ||
Common Stock, Par Value | $ 0.00001 | $ 0.00001 |
Common Stock, Shares Authorized | 1,000,000,000 | 0 |
Common Stock, Shares, Issued | 27,534,808 | 0 |
Common Stock, Shares, Outstanding | 27,534,808 | 0 |
Class B Common Stock [Member] | ||
Common Stock, Par Value | $ 0.00001 | $ 0.00001 |
Common Stock, Shares Authorized | 500,000,000 | 0 |
Common Stock, Shares, Issued | 232,301,398 | 0 |
Common Stock, Shares, Outstanding | 232,301,398 | 0 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Revenue: | ||||
Total revenue | $ 88,338 | $ 53,852 | $ 165,366 | $ 104,756 |
Cost of revenue: | ||||
Total cost of revenue | 30,009 | 17,690 | 53,847 | 35,503 |
Gross profit | 58,329 | 36,162 | 111,519 | 69,253 |
Operating expenses: | ||||
Research and development | 33,225 | 18,875 | 57,538 | 38,617 |
Sales and marketing | 73,206 | 36,447 | 131,715 | 74,764 |
General and administrative | 37,943 | 8,334 | 53,455 | 16,749 |
Total operating expenses | 144,374 | 63,656 | 242,708 | 130,130 |
Operating loss | (86,045) | (27,494) | (131,189) | (60,877) |
Interest income | 688 | 1,303 | 1,532 | 1,746 |
Other expense, net | (643) | (211) | (979) | (518) |
Loss before income taxes | (86,000) | (26,402) | (130,636) | (59,649) |
Provision for (benefit from) income taxes | 2,170 | (106) | 2,060 | 282 |
Net loss | $ (88,170) | $ (26,296) | $ (132,696) | $ (59,931) |
Net loss per share attributable to common stockholders, basic and diluted | $ (0.74) | $ (0.25) | $ (1.17) | $ (0.56) |
Weighted-average shares used to compute net loss per share attributable to common stockholders, basic and diluted | 118,648,655 | 105,532,865 | 113,717,546 | 106,964,953 |
Subscription [Member] | ||||
Revenue: | ||||
Total revenue | $ 78,516 | $ 46,973 | $ 146,508 | $ 90,916 |
Cost of revenue: | ||||
Total cost of revenue | 20,292 | 11,734 | 36,049 | 22,748 |
Services [Member] | ||||
Revenue: | ||||
Total revenue | 9,822 | 6,879 | 18,858 | 13,840 |
Cost of revenue: | ||||
Total cost of revenue | $ 9,717 | $ 5,956 | $ 17,798 | $ 12,755 |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Comprehensive Loss (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Statement Of Income And Comprehensive Income [Abstract] | ||||
Net loss | $ (88,170) | $ (26,296) | $ (132,696) | $ (59,931) |
Other comprehensive income, net of tax: | ||||
Unrealized (loss) gain on marketable securities | 89 | 1,201 | 274 | 1,002 |
Other comprehensive (loss) income | (89) | 1,201 | (274) | 1,002 |
Total comprehensive loss | $ (88,259) | $ (25,095) | $ (132,970) | $ (58,929) |
Condensed Consolidated Statem_3
Condensed Consolidated Statements of Redeemable Convertible Preferred Stock and Stockholders' Equity (Deficit) (Unaudited) - USD ($) $ in Thousands | Total | Redeemable Convertible Preferred Stock [Member] | Convertible Founder Stock [Member] | Common Class A [Member] | Common Class B [Member] | Common Stock [Member] | Additional Paid-In Capital [Member] | Accumulated Other Comprehensive Income (Loss) [Member] | Accumulated Deficit [Member] |
Balance at Dec. 31, 2019 | $ (130,765) | $ 1 | $ 45,262 | $ 197 | $ (176,225) | ||||
Balance (shares) at Dec. 31, 2019 | 90,624,091 | ||||||||
Balance at Dec. 31, 2019 | $ 205,784 | ||||||||
Balance (shares) at Dec. 31, 2019 | 7,920,000 | 98,636,479 | |||||||
Issuance of Series E redeemable convertible preferred stock, net of issuance costs | $ 249,865 | ||||||||
Issuance of Series E redeemable convertible preferred stock, net of issuance costs (shares) | 16,701,517 | ||||||||
Issuance of common stock upon early exercise of unvested options, net of repurchases | 416,092 | ||||||||
Vesting of early exercised options | 2,752 | 2,752 | |||||||
Issuance of common stock upon exercise of vested options | 2,587 | 2,587 | |||||||
Issuance of common stock upon exercise of vested options (shares) | 2,626,653 | ||||||||
Stock-based compensation | 13,822 | 13,822 | |||||||
Other comprehensive income (loss) | 1,002 | 1,002 | |||||||
Net loss | (59,931) | $ 0 | $ (59,931) | (59,931) | |||||
Balance at Jun. 30, 2020 | (170,533) | $ 1 | 64,423 | 1,199 | (236,156) | ||||
Balance (shares) at Jun. 30, 2020 | 107,325,608 | ||||||||
Balance at Jun. 30, 2020 | $ 455,649 | ||||||||
Balance (shares) at Jun. 30, 2020 | 7,920,000 | 101,679,224 | |||||||
Balance at Mar. 31, 2020 | (155,266) | $ 1 | 54,595 | (2) | (209,860) | ||||
Balance (shares) at Mar. 31, 2020 | 105,655,453 | ||||||||
Balance at Mar. 31, 2020 | $ 430,579 | ||||||||
Balance (shares) at Mar. 31, 2020 | 7,920,000 | 100,548,882 | |||||||
Issuance of Series E redeemable convertible preferred stock, net of issuance costs | $ 25,070 | ||||||||
Issuance of Series E redeemable convertible preferred stock, net of issuance costs (shares) | 1,670,155 | ||||||||
Issuance of common stock upon early exercise of unvested options, net of repurchases | 128,794 | ||||||||
Vesting of early exercised options | 1,644 | 1,644 | |||||||
Issuance of common stock upon exercise of vested options | 931 | 931 | |||||||
Issuance of common stock upon exercise of vested options (shares) | 1,001,548 | ||||||||
Stock-based compensation | 7,253 | 7,253 | |||||||
Other comprehensive income (loss) | 1,201 | 1,201 | |||||||
Net loss | (26,296) | $ 0 | (26,296) | (26,296) | |||||
Balance at Jun. 30, 2020 | (170,533) | $ 1 | 64,423 | 1,199 | (236,156) | ||||
Balance (shares) at Jun. 30, 2020 | 107,325,608 | ||||||||
Balance at Jun. 30, 2020 | $ 455,649 | ||||||||
Balance (shares) at Jun. 30, 2020 | 7,920,000 | 101,679,224 | |||||||
Balance at Dec. 31, 2020 | $ (306,249) | $ 1 | 99,575 | 228 | (406,053) | ||||
Balance (shares) at Dec. 31, 2020 | 115,277,850 | 115,277,850 | |||||||
Balance at Dec. 31, 2020 | $ 574,634 | $ 574,634 | |||||||
Balance (shares) at Dec. 31, 2020 | 635,818 | 109,447,843 | |||||||
Issuance of common stock upon exercise of vested options (shares) | 4,042,079 | ||||||||
Balance at Mar. 31, 2021 | $ (330,086) | $ 1 | 120,449 | 43 | (450,579) | ||||
Balance (shares) at Mar. 31, 2021 | 115,277,850 | ||||||||
Balance at Mar. 31, 2021 | $ 574,634 | ||||||||
Balance (shares) at Mar. 31, 2021 | 635,818 | 113,451,522 | |||||||
Balance at Dec. 31, 2020 | $ (306,249) | $ 1 | 99,575 | 228 | (406,053) | ||||
Balance (shares) at Dec. 31, 2020 | 115,277,850 | 115,277,850 | |||||||
Balance at Dec. 31, 2020 | $ 574,634 | $ 574,634 | |||||||
Balance (shares) at Dec. 31, 2020 | 635,818 | 109,447,843 | |||||||
Conversion of redeemable convertible preferred and founder stock to common stock upon initial public offering | $ 574,634 | ||||||||
Conversion of convertible stock to common stock (shares) common stock upon initial public offering (shares) | 115,277,850 | ||||||||
Conversion of redeemable convertible preferred and founder stock to common stock upon initial public offering | 574,634 | $ 1 | 574,633 | ||||||
Conversion of convertible stock to common stock (shares) common stock upon initial public offering (shares) | (635,818) | 115,913,668 | |||||||
Issuance of common stock upon initial public offering, net of underwriting discounts and commissions and other issuance cost | 783,158 | 783,158 | |||||||
Issuance of common stock upon initial public offering, net of underwriting discounts and commissions and other issuance cost (shares) | 23,000,000 | ||||||||
Issuance of common stock pursuant to charitable donation | 13,290 | 13,290 | |||||||
Issuance of common stock pursuant to charitable donation (shares) | 250,000 | ||||||||
Issuance of common stock upon early exercise of unvested options, net of repurchases | 2,451,700 | ||||||||
Vesting of early exercised options | 4,182 | 4,182 | |||||||
Issuance of common stock upon exercise of vested options | 19,137 | 19,137 | |||||||
Issuance of common stock upon exercise of vested options (shares) | 1,505,837 | 7,251,908 | |||||||
Vesting of restricted stock (shares) | 15,250 | ||||||||
Conversion of class B common stock to class A common stock (shares) | 2,778,971 | 2,778,971 | |||||||
Stock-based compensation | 48,363 | 48,363 | |||||||
Other comprehensive income (loss) | (274) | (274) | |||||||
Net loss | (132,696) | $ (614) | $ (132,082) | (132,696) | |||||
Balance at Jun. 30, 2021 | $ 1,003,545 | $ 2 | 1,542,338 | (46) | (538,749) | ||||
Balance (shares) at Jun. 30, 2021 | 0 | ||||||||
Balance at Jun. 30, 2021 | $ 0 | ||||||||
Balance (shares) at Jun. 30, 2021 | 27,534,808 | 232,301,398 | |||||||
Balance at Mar. 31, 2021 | (330,086) | $ 1 | 120,449 | 43 | (450,579) | ||||
Balance (shares) at Mar. 31, 2021 | 115,277,850 | ||||||||
Balance at Mar. 31, 2021 | $ 574,634 | ||||||||
Balance (shares) at Mar. 31, 2021 | 635,818 | 113,451,522 | |||||||
Conversion of redeemable convertible preferred and founder stock to common stock upon initial public offering | $ 574,634 | ||||||||
Conversion of convertible stock to common stock (shares) common stock upon initial public offering (shares) | 115,277,850 | ||||||||
Conversion of redeemable convertible preferred and founder stock to common stock upon initial public offering | 574,634 | $ 1 | 574,633 | ||||||
Conversion of convertible stock to common stock (shares) common stock upon initial public offering (shares) | (635,818) | 115,913,668 | |||||||
Issuance of common stock upon initial public offering, net of underwriting discounts and commissions and other issuance cost | 783,158 | 783,158 | |||||||
Issuance of common stock upon initial public offering, net of underwriting discounts and commissions and other issuance cost (shares) | 23,000,000 | ||||||||
Issuance of common stock pursuant to charitable donation | 13,290 | 13,290 | |||||||
Issuance of common stock pursuant to charitable donation (shares) | 250,000 | ||||||||
Issuance of common stock upon early exercise of unvested options, net of repurchases | 1,323,335 | ||||||||
Vesting of early exercised options | 2,974 | 2,974 | |||||||
Issuance of common stock upon exercise of vested options | $ 12,922 | 12,922 | |||||||
Issuance of common stock upon exercise of vested options (shares) | 7,284,453 | 1,505,837 | 4,376,594 | ||||||
Vesting of restricted stock (shares) | 15,250 | ||||||||
Conversion of class B common stock to class A common stock (shares) | 2,778,971 | 2,778,971 | |||||||
Stock-based compensation | $ 34,912 | 34,912 | |||||||
Other comprehensive income (loss) | (89) | (89) | |||||||
Net loss | (88,170) | $ (778) | $ (87,392) | (88,170) | |||||
Balance at Jun. 30, 2021 | $ 1,003,545 | $ 2 | $ 1,542,338 | $ (46) | $ (538,749) | ||||
Balance (shares) at Jun. 30, 2021 | 0 | ||||||||
Balance at Jun. 30, 2021 | $ 0 | ||||||||
Balance (shares) at Jun. 30, 2021 | 27,534,808 | 232,301,398 |
Condensed Consolidated Statem_4
Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2021 | Jun. 30, 2020 | |
CASH FLOWS FROM OPERATING ACTIVITIES | ||
Net loss | $ (132,696) | $ (59,931) |
Adjustments to reconcile net loss to cash used in operating activities: | ||
Depreciation and amortization | 1,543 | 699 |
Net amortization of premiums or discounts on marketable securities | 964 | (342) |
Amortization of deferred contract acquisition costs | 11,583 | 6,128 |
Non-cash operating lease costs | 5,604 | 6,102 |
Common stock charitable donation expense | 13,290 | 0 |
Stock-based compensation, net of amounts capitalized | 47,869 | 13,523 |
Deferred income taxes | 1,730 | (132) |
Other | 648 | 269 |
Changes in operating assets and liabilities: | ||
Accounts receivable | (11,853) | (25,337) |
Deferred contract acquisition costs | 26,348 | 13,927 |
Prepaid expenses and other assets | (14,723) | (148) |
Accounts payable | 371 | (1,635) |
Accrued expenses and other liabilities | 12,893 | 2,284 |
Operating lease liabilities | (5,382) | (5,767) |
Deferred revenue | 31,352 | 25,043 |
Net cash used in operating activities | (63,155) | (52,487) |
CASH FLOWS FROM INVESTING ACTIVITIES | ||
Capitalization of internal-use software costs | 1,811 | 2,097 |
Purchases of marketable securities | (55,971) | (230,690) |
Sales of marketable securities | 0 | 4,988 |
Maturities of marketable securities | 122,974 | 36,760 |
Purchases of property and equipment | (1,673) | (484) |
Other | 9 | 0 |
Net cash provided by (used in) investing activities | 63,528 | (191,523) |
CASH FLOWS FROM FINANCING ACTIVITIES | ||
Proceeds from initial public offering, net of underwriting discounts and commissions | 786,600 | 0 |
Proceeds from issuance of common stock upon exercise of vested options | 18,705 | 2,587 |
Proceeds from issuance of common stock upon early exercise of unvested options, net of repurchases | 18,543 | 838 |
Proceeds from issuance of redeemable convertible preferred stock, net of issuance costs | 0 | 249,865 |
Payments of deferred offering costs | (920) | 0 |
Net cash provided by financing activities | 822,928 | 253,290 |
Effect of exchange rate changes on cash, cash equivalents, and restricted cash | (10) | (33) |
Net increase in cash, cash equivalents, and restricted cash | 823,291 | 9,247 |
Cash, cash equivalents, and restricted cash at beginning of period | 37,806 | 19,971 |
Cash, cash equivalents, and restricted cash at end of period | 861,097 | 29,218 |
Reconciliation of cash, cash equivalents, and restricted cash within the consolidated balance sheets to the amounts shown above: | ||
Cash and cash equivalents | 860,347 | 28,201 |
Restricted cash included in other assets, current and non-current | 750 | 1,017 |
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents, Total | 861,097 | 29,218 |
Cash paid for: | ||
Income taxes | 954 | 492 |
Non-cash investing and financing activities: | ||
Stock-based compensation capitalized in internal-use software costs | 494 | 299 |
Issuance of common stock upon exercise of vested options included in prepaid expenses and other current assets | 432 | 0 |
Vesting of early exercised stock options | 4,182 | 2,752 |
Unpaid deferred offering costs | $ 2,411 | $ 0 |
Organization and Description of
Organization and Description of Business | 6 Months Ended |
Jun. 30, 2021 | |
Organization Consolidation And Presentation Of Financial Statements [Abstract] | |
Organization and Description of Business | 1. Organization and Description of Business Description of Business Confluent , Inc. (“Confluent” or the “Company”) created a data infrastructure platform focused on data in motion. Confluent’s platform allows customers to connect their applications, systems, and data layers and can be deployed either as a self-managed software offering, Confluent Platform, or as a fully-managed cloud-native software-as-a-service (“SaaS”) offering, Confluent Cloud. Confluent also offers professional services and education services. The Company was incorporated in the state of Delaware in September 2014 and is headquartered in California with various other global office locations. Initial Public Offering In June 2021, the Company completed its initial public offering (“IPO”), in which the Company issued and sold 23,000,000 of its Class A common stock at a public offering price of $ 36.00 per share, resulting in net proceeds of $ 786.6 million after deducting underwriting discounts and commissions. Immediately prior to the closing of the IPO, all shares of common stock then outstanding were reclassified as Class B common stock, all 115,277,850 shares of the Company’s outstanding redeemable convertible preferred stock automatically converted into an equal number of shares of Class B common stock, and all 635,818 shares of the Company’s outstanding convertible founder stock automatically converted into an equal number of shares of Class B common stock. Prior to the IPO, deferred offering costs, which consist of direct incremental legal, accounting, consulting, and other fees relating to the IPO, were capitalized in other assets, non-current on the condensed consolidated balance sheets. Upon the consummation of the IPO, $ 3.4 million of deferred offering costs, net of reimbursement received from the underwriters, were reclassified into stockholders’ equity as an offset against the IPO proceeds. The Company capitalized $ 0.1 million of deferred offering costs as of December 31, 2020. |
Basis of Presentation and Summa
Basis of Presentation and Summary of Significant Accounting Policies | 6 Months Ended |
Jun. 30, 2021 | |
Accounting Policies [Abstract] | |
Basis of Presentation and Summary of Significant Accounting Policies | 2. Basis of Presentation and Summary of Significant Accounting Policies Basis of Presentation The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States (“GAAP”) and applicable rules and regulations of the U.S. Securities and Exchange Commission (“SEC”) regarding interim financial reporting. Certain information and note disclosures normally included in the financial statements prepared in accordance with GAAP have been condensed or omitted pursuant to such rules and regulations. Therefore, these condensed consolidated financial statements should be read in conjunction with the audited consolidated financial statements and notes included in the Company’s final prospectus dated June 23, 2021 and filed with the SEC pursuant to Rule 424(b)(4) on June 25, 2021 ( “Final Prospectus”). In management’s opinion, the unaudited condensed consolidated financial statements have been prepared on a basis consistent with the annual consolidated financial statements and reflect all adjustments, which include only normal recurring adjustments, necessary for the fair statement of the Company’s financial position as of June 30, 2021 and the results of operations and cash flows for the three and six months ended June 30, 2021 and 2020. The results of operations for the three and six months ended June 30, 2021 are not necessarily indicative of the results to be expected for the full year or any other future interim or annual period. The condensed consolidated financial statements include the accounts of the Company and its wholly owned subsidiaries. All intercompany balances and transactions have been eliminated in consolidation. Use of Estimates The preparation of the consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenue and expenses during the reporting period. Such estimates include, but are not limited to, the standalone selling price for each distinct performance obligation included in customer contracts, deferred contract acquisition costs and their period of benefit, valuation of stock-based awards, the fair value of the Company’s common stock prior to its IPO in June 2021, capitalization and estimated useful life of internal-use software, the incremental borrowing rate used to measure operating lease liabilities, and accounting for income taxes. The Company bases its estimates on historical and anticipated results, trends, and various other assumptions that it believes are reasonable under the circumstances. Estimates and assumptions about future events and their effects, including the impact of the COVID-19 pandemic, cannot be determined with certainty and therefore require the exercise of judgment. Actual results could differ from those estimates and any such differences may be material to the Company’s condensed consolidated financial statements. Significant Accounting Policies There have been no significant changes to the Company’s significant accounting policies disclosed in “Note 2 – Basis of Presentation and Summary of Significant Accounting Policies” of the Company’s Final Prospectus. Recent Accounting Pronouncements Recently Adopted Accounting Pronouncements Convertible Instruments: In August 2020, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2020-06, Debt—Debt with Conversion and Other Options (Subtopic 470-20) and Derivatives and Hedging—Contracts in Entity’s Own Equity (Subtopic 815-40): Accounting for Convertible Instruments and Contracts in an Entity’s Own Equity , which simplifies the accounting for certain financial instruments with characteristics of liabilities and equity. ASU 2020-06 reduces the number of accounting models for convertible debt instruments and convertible preferred stock, and enhances information transparency by making targeted improvements to the disclosures for convertible instruments and earnings per share guidance. The Company adopted this guidance as of January 1, 2021, and the adoption did not have a material impact on its condensed consolidated financial statements. Recent Accounting Pronouncements Not Yet Adopted Credit Losses : In June 2016, the FASB issued ASU No. 2016-13, Financial Instruments—Credit Losses (Topic 326): Measurement of Credit Losses on Financial Statements, which requires the measurement and recognition of expected credit losses for financial assets held at amortized cost, which includes the Company’s accounts receivable, certain financial instruments, and contract assets. ASU 2016-13 replaces the existing incurred loss impairment model with an expected loss methodology. Subsequently, the FASB issued multiple codification improvement amendments to ASU 2016-13. ASU 2016-13 and the applicable subsequent amendments are effective for the Company for the year beginning January 1, 2023, though early adoption is permitted. The Company is currently evaluating the potential impact of this guidance on its consolidated financial statements. |
Marketable Securities
Marketable Securities | 6 Months Ended |
Jun. 30, 2021 | |
Investments Debt And Equity Securities [Abstract] | |
Marketable Securities | 3. Marketable Securities The following tables summarize the fair values of the Company’s marketable securities (in thousands): June 30, 2021 Amortized Unrealized Unrealized Fair Corporate notes and bonds $ 114,597 $ 97 $ ( 18 ) $ 114,676 Commercial paper 50,816 8 - 50,824 U.S. agency obligations 15,000 - ( 16 ) 14,984 Municipal bonds 3,045 - ( 3 ) 3,042 Total marketable securities $ 183,458 $ 105 $ ( 37 ) $ 183,526 December 31, 2020 Amortized Unrealized Unrealized Fair Corporate notes and bonds $ 155,401 $ 360 $ ( 21 ) $ 155,740 Commercial paper 63,503 27 ( 24 ) 63,506 U.S. agency obligations 32,520 - ( 10 ) 32,510 Total marketable securities $ 251,424 $ 387 $ ( 55 ) $ 251,756 Realized gains and losses were not material for the three and six months ended June 30, 2021 and 2020 . Marketable securities in an unrealized loss position had a fair value of $ 70.2 million and an immaterial amount of unrealized losses as of June 30, 2021 , and a fair value of $ 91.5 million and an immaterial amount of unrealized losses as of December 31, 2020 . No marketable securities were in a continuous unrealized loss position for more than twelve months as of June 30, 2021 and December 31, 2020. The following table summarizes the contractual maturities of the Company’s marketable securities (in thousands): June 30, 2021 December 31, 2020 Amortized Cost Fair Value Amortized Cost Fair Value Due within one year $ 146,412 $ 146,506 $ 180,320 $ 180,520 Due after one year through five years 37,046 37,020 71,104 71,236 Total $ 183,458 $ 183,526 $ 251,424 $ 251,756 |
Fair Value of Financial Instrum
Fair Value of Financial Instruments | 6 Months Ended |
Jun. 30, 2021 | |
Fair Value Disclosures [Abstract] | |
Fair Value of Financial Instruments | 4. Fair Value of Financial Instruments The following tables summarize the Company’s financial assets that are measured at fair value on a recurring basis (in thousands): June 30, 2021 Level 1 Level 2 Total Cash equivalents: Money market funds $ 56,396 $ - $ 56,396 Marketable securities: Corporate notes and bonds - 114,676 114,676 Commercial paper - 50,824 50,824 U.S. agency obligations - 14,984 14,984 Municipal bonds - 3,042 3,042 Total $ 56,396 $ 183,526 $ 239,922 December 31, 2020 Level 1 Level 2 Total Cash equivalents: Money market funds $ 12,409 $ - $ 12,409 Marketable securities: Corporate notes and bonds - 155,740 155,740 Commercial paper - 63,506 63,506 U.S. agency obligations - 32,510 32,510 Total $ 12,409 $ 251,756 $ 264,165 The Company classifies its highly liquid money market funds within Level 1 of the fair value hierarchy because they are valued based on quoted market prices in active markets. The Company classifies its corporate notes and bonds, commercial paper, U.S. agency obligations, and municipal bonds within Level 2 of the fair value hierarchy because they are valued using inputs other than quoted prices that are directly or indirectly observable in the market, including readily available pricing sources for the identical underlying security that may not be actively traded. There were no transfers of financial assets between valuation levels during the three and six months ended June 30, 2021 and 2020 . |
Balance Sheet Components
Balance Sheet Components | 6 Months Ended |
Jun. 30, 2021 | |
Organization Consolidation And Presentation Of Financial Statements [Abstract] | |
Balance Sheet Components | 5. Balance Sheet Components Property and Equipment, Net The cost and accumulated depreciation and amortization of property and equipment were as follows (in thousands): June 30, 2021 December 31, 2020 Computers and equipment $ 4,109 $ 2,640 Furniture and fixtures 1,312 1,360 Purchased software 26 26 Leasehold improvements 155 136 Internal-use software 6,160 4,016 Construction in progress 1,450 1,183 Property and equipment, at cost $ 13,212 $ 9,361 Less: Accumulated depreciation and amortization ( 4,152 ) ( 2,643 ) Property and equipment, net $ 9,060 $ 6,718 Depreciation and amortization expense was $ 0.7 million and $ 0.4 million for the three months ended June 30, 2021 and 2020, respectively, and $ 1.5 million and $ 0.7 million for the six months ended June 30, 2021 and 2020, respectively. Accrued Expenses and Other Liabilities Accrued expenses and other liabilities consisted of the following (in thousands): June 30, 2021 December 31, 2020 Accrued expenses $ 13,199 $ 7,225 Accrued commissions 12,373 10,189 Accrued payroll taxes 7,531 6,756 Accrued compensation and benefits 6,806 4,240 Other liabilities 10,061 5,301 Total accrued expenses and other liabilities $ 49,970 $ 33,711 |
Commitments and Contingencies
Commitments and Contingencies | 6 Months Ended |
Jun. 30, 2021 | |
Commitments And Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | 6. Commitments and Contingencies Leases The Company has entered into non-cancelable operating leases, primarily for the rent of office space expiring at various dates through 2029. Certain lease agreements contain an option for the Company to renew the lease for a term of up to three years or an option to terminate the lease early within three years of lease termination . The Company considers these options in determining the lease term on a lease-by-lease basis. None of the Company’s lease agreements contain any material non-lease components, material residual value guarantees, or material restrictive covenants. In 2019, the Company issued a letter of credit of $ 8.2 million for its office space in Mountain View, California. No draws have been made under the letter of credit as of June 30, 2021 and December 31, 2020. In addition, the Company subleases certain floors of its unoccupied office space expiring at various dates through 2022. Sublease income is recorded as a reduction of lease expense. Sublease income was no t material for the three months ended June 30, 2021 and 2020 and $ 1.4 million for each of the six months ended June 30, 2021 and 2020. Purchase Obligations As of Jun e 30, 2021, there were no material changes to the Company’s purchase obligations since December 31, 2020. Legal Matters From time to time, the Company has become involved in claims and other legal matters arising in the ordinary course of business. The Company investigates these claims as they arise. For the three and six months ended June 30, 2021 and 2020, the Company is not aware of any matters that would individually or taken together have a material adverse effect on its results of operations, financial position, or cash flows. Indemnification The Company enters into indemnification provisions under its agreements with other companies in the ordinary course of business, including customers, business partners, landlords, and certain third-party vendors. Under these arrangements, the Company agrees to indemnify, hold harmless, and reimburse the indemnified party for certain losses suffered or incurred by the indemnified party resulting from certain Company activities. The terms of these indemnification agreements are generally perpetual. The maximum potential amount of future payments the Company could be required to make under these agreements is not determinable. The Company has not, as of June 30, 2021 and December 31, 2020, incurred material costs to defend lawsuits or settle claims related to these indemnification agreements. The Company maintained commercial general liability insurance and product liability insurance during the three and six months ended June 30, 2021 and 2020 to offset certain of the Company’s potential liabilities under these indemnification provisions. The Company also indemnifies certain of its officers, directors, and certain key employees while they are serving in good faith in their respective capacities. As of June 30, 2021 and December 31, 2020 , the Company has not incurred material costs to defend lawsuits or settle claims related to these indemnification agreements. |
Revenue
Revenue | 6 Months Ended |
Jun. 30, 2021 | |
Revenue From Contract With Customer [Abstract] | |
Revenue | 7. Revenue Disaggregation of Revenue The following table sets forth revenue disaggregated by geographic markets based on the location of the customer and by subscription and service categories (dollars in thousands): Three Months Ended June 30, Six Months Ended June 30, 2021 2020 2021 2020 Geographic markets: United States $ 56,811 64 % $ 36,032 67 % $ 106,090 64 % $ 70,410 67 % International 31,527 36 % 17,820 33 % 59,276 36 % 34,346 33 % Total revenue $ 88,338 100 % $ 53,852 100 % $ 165,366 100 % $ 104,756 100 % Subscriptions and services: Confluent Platform - License $ 15,551 18 % $ 10,188 19 % $ 29,512 18 % $ 20,180 19 % Confluent Platform - PCS (1) 43,296 49 % 30,229 56 % 83,408 51 % 57,964 56 % Confluent Cloud 19,669 22 % 6,556 12 % 33,588 20 % 12,772 12 % Subscription 78,516 89 % 46,973 87 % 146,508 89 % 90,916 87 % Services 9,822 11 % 6,879 13 % 18,858 11 % 13,840 13 % Total revenue $ 88,338 100 % $ 53,852 100 % $ 165,366 100 % $ 104,756 100 % (1) PCS refers to post-contract customer support, maintenance, and upgrades. Remaining Performance Obligations (“RPO”) RPO represent the amount of contracted future revenue that has not yet been recognized as of the end of each period, including both deferred revenue that has been invoiced and non-cancelable committed amounts that will be invoiced and recognized as revenue in future periods. RPO exclude pay-as-you-go arrangements. As of June 30, 2021 , the Company’s RPO is $ 327.2 million, approximately 69 % of which is expected to be recognized as revenue over the next 12 months and the substantial majority of the remainder in the next 13 to 36 months. Deferred Revenue Deferred revenue, including current and non-current balances as of June 30, 2021 and December 31, 2020 was $ 190.5 million and $ 159.2 million , respectively. For the six months ended June 30, 2021 and 2020 , revenue recognized from deferred revenue at the beginning of the year was $ 91.0 million and $ 56.6 million, respectively. Accounts Receivable Accounts receivable on the condensed consolidated balance sheets consists of trade accounts receivable and unbilled receivables, net of an allowance for doubtful accounts due to collection risk related to these receivables. The Company’s allowance for doubtful accounts was no t material as of June 30, 2021 and December 31, 2020. Unbilled receivables represent revenue recognized in excess of invoiced amounts for the Company’s unconditional right to consideration in exchange for goods or services that the Company has transferred to the customer, such that only the passage of time is required before payment of consideration is due. The unbilled receivables balance was $ 25.0 million and $ 17.6 million as of June 30, 2021 and December 31, 2020, respectively. Deferred Contract Acquisition Costs The following table summarizes the activity of deferred contract acquisition costs (in thousands): Six Months Ended June 30, 2021 2020 Beginning balance $ 47,599 $ 25,499 Capitalization of contract acquisition costs 26,348 13,927 Amortization of deferred contract acquisition costs ( 11,583 ) ( 6,128 ) Ending balance $ 62,364 $ 33,298 |
Redeemable Convertible Preferre
Redeemable Convertible Preferred Stock | 6 Months Ended |
Jun. 30, 2021 | |
Temporary Equity Disclosure [Abstract] | |
Redeemable Convertible Preferred Stock | 8. Redeemable Convertible Preferred Stock Immediately prior to the closing of the IPO, all shares of the Company’s redeemable convertible preferred stock outstanding, totaling 115,277,850 , were automatically converted into an equal number of shares of Class B common stock and their carrying value of $ 574.6 million was reclassified into stockholders’ equity. As of June 30, 2021 , there were no shares of redeemable convertible preferred stock issued and outstanding. |
Stockholders' Equity (Deficit)
Stockholders' Equity (Deficit) | 6 Months Ended |
Jun. 30, 2021 | |
Stockholders' Equity Note [Abstract] | |
Stockholders' Equity (Deficit) | 9. Stockholders’ Equity (Deficit) Preferred Stock In connection with the IPO, the Company’s amended and restated certificate of incorporation became effective, which authorized the issuance of 10,000,000 shares of undesignated preferred stock with a par value of $ 0.00001 per share with rights and preferences, including voting rights, designated from time to time by the board of directors. Common Stock The Company has two classes of common stock: Class A common stock and Class B common stock. In connection with the IPO, the Company’s amended and restated certificate of incorporation authorized the issuance of 1,000,000,000 shares of Class A common stock and 500,000,000 shares of Class B common stock. The shares of Class A common stock and Class B common stock are identical, except with respect to voting, converting, and transfer rights. Each share of Class A common stock is entitled to one vote. Each share of Class B common stock is entitled to ten votes. Class A and Class B common stock have a par value of $ 0.00001 per share, and are referred to as common stock throughout the notes to the condensed consolidated financial statements, unless otherwise noted. Holders of common stock are entitled to receive any dividends as may be declared from time to time by the board of directors. Each share of Class B common stock is convertible at any time at the option of the holder into one share of Class A common stock. Any holder’s shares of Class B common stock will convert automatically to Class A common stock, on a one-to-one basis, upon the following: (i) sale or transfer of such share of Class B common stock, except for permitted transfers as described in the amended and restated certificate of incorporation; (ii) the death or incapacity of the Class B common stockholder (or nine months after the date of the death or incapacity if the stockholder is one of the Company’s founders); and (iii) on the final conversion date, defined as the earliest of (a) the date fixed by our board of directors that is no less than 61 days and no more than 180 days following the date on which the outstanding shares of Class B common stock represent less than 10 % of the then outstanding shares of Class A and Class B common stock; (b) the last trading day of the fiscal year following the tenth anniversary of the Company’s IPO; or (c) the date specified by a vote of the holders of a majority of the outstanding shares of Class B common stock, voting as a single class. Immediately prior to the closing of the IPO, all shares of the Company’s convertible founder stock outstanding, totaling 635,818 , were automatically converted into an equal number of shares of Class B common stock. As of June 30, 2021 , there were no shares of convertible founder stock issued and outstanding. In June 2021, the Company donated 250,000 shares of its Class A common stock to its charitable foundation, Confluent.org. The Company recognized charitable donation expense of $ 13.3 million to general and administrative expense based on the closing price of its Class A common stock on the date of donation. Common Stock Reserved for Future Issuance The Company has reserved the following shares of common stock for future issuance: June 30, 2021 December 31, 2020 Redeemable convertible preferred stock - 115,277,850 Convertible founder stock - 635,818 2014 Stock Plan: Options issued and outstanding 75,323,365 71,213,150 Restricted stock units issued and outstanding 4,050,033 - Remaining shares available for future issuance under the 2014 Plan - 4,722,481 2021 Equity Incentive Plan: Options issued and outstanding - - Restricted stock units issued and outstanding - - Remaining shares available for future issuance under the 2021 Plan 33,750,414 - 2021 Employee Stock Purchase Plan: 5,162,575 - Total 118,286,387 191,849,299 Equity Incentive Plans In September 2014, the Company’s board of directors adopted and the Company’s stockholders approved the 2014 Stock Plan (the “2014 Plan”). The 2014 Plan was also amended and restated in March 2021 and June 2021. Under the 2014 Plan, the board of directors may grant stock options and other equity-based awards to eligible employees, directors, and consultants. The 2014 Plan was terminated in June 2021 in connection with the IPO, but continues to govern the terms of outstanding awards that were granted prior to the termination of the 2014 Plan. No further equity awards will be granted under the 2014 Plan. With the establishment of the 2021 Equity Incentive Plan (the “2021 Plan”), upon the expiration, forfeiture, cancellation, or reacquisition of any shares of Class B common stock underlying outstanding stock-based awards granted under the 2014 Plan, an equal number of shares of Class A common stock will become available for grant under the 2021 Plan. In April 2021, the Company’s board of directors adopted, and in June 2021, its stockholders approved, the 2021 Plan, which became effective at the time of the execution of the underwriting agreement related to the Company’s IPO. The 2021 Plan provides for the grant of incentive stock options, nonqualified stock options, stock appreciation rights, restricted stock awards, restricted stock units (“RSUs”) awards, performance awards, and other forms of awards to employees, directors, and consultants, including employees and consultants of the Company’s affiliates. A total of 25,812,876 shares of the Company’s Class A common stock have been reserved for future issuance under the 2021 Plan in addition to (i) the shares that remained available for grant of future awards under the 2014 Plan at the time the 2021 Plan became effective, (ii) shares underlying outstanding stock awards granted under the 2014 Plan that expire, or are forfeited, cancelled, or reacquired, as described above, and (iii) any automatic increases in the number of shares of Class A common stock reserved for future issuance under this plan. In April 2021, the Company’s board of directors adopted, and in June 2021, its stockholders approved, the 2021 Employee Stock Purchase Plan (the “2021 ESPP”), which became effective at the time of the execution of the underwriting agreement related to the Company’s planned initial public offering. The 2021 ESPP authorizes the issuance of shares of Class A common stock pursuant to purchase rights granted to employees. A total of 5,162,575 shares of the Company’s Class A common stock have been reserved for future issuance under the 2021 ESPP, in addition to any automatic increases in the number of shares of Class A common stock reserved for future issuance under this plan. Except for the initial offering period, the 2021 ESPP provides for 12-month offering periods beginning February 16 and August 16 of each year, and each offering period will consist of two six-month purchase periods. The initial offering period began on June 24, 2021 and will end on August 15, 2022. The initial offering shall consist of two purchase periods with the first purchase period ending on February 15, 2022, and the second purchase period ending on August 15, 2022. For accounting purposes, the grant date of the first offering was subsequent to June 30, 2021. The price at which Class A common stock is purchased under the 2021 ESPP is equal to 85 % of the lesser of (1) the fair market value of the Company’s stock on the offering date or (2) the fair market value of the Company’s stock on the purchase date. Equity Awards Outstanding The following table summarizes stock equity award activity and activity regarding shares available for grant under the 2014 Plan and the 2021 Plan: Equity Awards Outstanding Weighted-Average Aggregate Shares Outstanding Weighted-Average Remaining Intrinsic Available Stock Exercise Contractual Term Value for Grant Options Price (in years) (in thousands) Balance as of January 1, 2021 4,722,481 71,213,150 $ 3.39 8.26 $ 677,503 Increase in authorized shares 16,000,000 - $ - Stock options granted ( 13,603,242 ) 13,603,242 $ 15.18 Stock options exercised - ( 4,042,079 ) $ 3.38 Stock options forfeited 1,149,971 ( 1,149,971 ) $ 3.34 Repurchases of unvested common stock 38,400 - $ - RSUs granted ( 14,000 ) - $ - Balance as of March 31, 2021 8,293,610 79,624,342 $ 5.40 8.35 $ 1,158,361 Increase in authorized shares 32,412,876 - $ - Stock options granted ( 3,586,053 ) 3,586,053 $ 20.69 Stock options exercised - ( 7,284,453 ) $ 3.33 Stock options forfeited 602,577 ( 602,577 ) $ 4.97 Repurchases of unvested common stock 78,687 - $ - RSUs granted ( 4,070,219 ) - $ - RSUs forfeited 18,936 - $ - Balance as of June 30, 2021 33,750,414 75,323,365 $ 6.33 8.18 $ 3,101,256 Vested as of June 30, 2021 24,593,277 $ 2.42 6.84 $ 1,108,633 Vested and expected to vest as of June 30, 2021 75,323,365 $ 6.33 8.18 $ 3,101,256 Aggregate intrinsic value represents the difference between the exercise price of the options to purchase common stock and the estimated fair value of the Company’s common stock. The intrinsic value of options exercised was $ 216.1 million and $ 14.5 million for the six months ended June 30, 2021 and 2020, respectively. The weighted-average grant-date fair value per share of options granted during the six months ended June 30, 2021 and 2020 was $ 12.41 and $ 2.91 , respectively. Early Exercised Options All stock option holders have the right to exercise unvested options, which are subject to a repurchase right held by the Company at the original exercise price in the event of voluntary or involuntary termination of employment of the stockholder. As of June 30, 2021 and December 31, 2020, there were 3,486,976 and 2,338,945 shares that had been early exercised and were subject to repurchase, respectively. The proceeds related to early exercised options are recorded as liabilities until the options vest, at which point they are reclassified to equity. As of June 30, 2021 and December 31, 2020 , the liabilities for early exercised options subject to repurchase were $ 21.3 million and $ 6.9 million, respectively, which were recorded as liability for early exercise of unvested stock options and other liabilities, non-current on the condensed consolidated balance sheets. Shares issued for early exercised options are included in issued and outstanding shares as they are legally issued and outstanding, but are not deemed outstanding for accounting purposes until the shares vest. Performance-Based Options As of June 30, 2021 and December 31, 2020 , the Company had granted 2,875,255 options with both a service-based vesting condition and a performance-based vesting condition. The performance-based vesting condition was not deemed probable until consummated, and therefore, stock-based compensation related to these options remained unrecognized prior to the effectiveness of the IPO. Upon the effectiveness of the IPO, the performance-based vesting condition was satisfied, and therefore, the Company recognized cumulative stock-based compensation expense of $ 3.8 million to general and administrative expense using the accelerated attribution method for the portion of the awards for which the service-based vesting condition has been fully or partially satisfied. RSUs During the six months ended June 30, 2021 , the Company began granting RSUs to its employees. RSUs granted prior to the IPO had both service-based and performance-based vesting conditions. The service-based vesting condition for these awards is generally satisfied by rendering continuous service for four years , during which time the grants will vest either quarterly or with a cliff vesting period of one year and continued vesting quarterly thereafter. The performance-based vesting condition is satisfied upon the sale of the Company’s common stock in a firm commitment underwritten public offering. The performance-based vesting condition was not deemed probable until consummated, and therefore, stock-based compensation related to these RSUs remained unrecognized prior to the effectiveness of the IPO. Upon the effectiveness of the IPO, the performance-based vesting condition was satisfied, and therefore, the Company recognized cumulative stock-based compensation expense of $ 6.8 million using the accelerated attribution method for the portion of the awards for which the service-based vesting condition has been fully or partially satisfied. RSUs Outstanding Weighted- Average Number Grant Date of Shares Fair Value Unvested balances as of January 1, 2021 - $ - RSUs granted 14,000 $ 19.36 RSUs vested - $ - RSUs forfeited - $ - Unvested balances as of March 31, 2021 14,000 $ 19.36 RSUs granted 4,070,219 $ 28.90 RSUs vested ( 15,250 ) $ 19.94 RSUs forfeited ( 18,936 ) $ 21.76 Unvested balances as of June 30, 2021 4,050,033 $ 28.93 Determination of Fair Value The Company estimates the fair value of stock options using the Black-Scholes option-pricing model, which is dependent upon several variables, such as the fair value of the Company’s common stock, the expected option term, expected volatility of the Company’s stock price over the expected term, expected risk-free interest rate over the expected option term, and expected dividend yield. Fair Value of Common Stock: Prior to the completion of the IPO, the board of directors had determined the fair value of common stock by considering a number of objective and subjective factors, including but not limited to contemporaneous independent third-party valuations of the Company’s common stock, market performance of comparable publicly traded companies, sales of the Company’s redeemable convertible preferred stock and common stock to unrelated third parties, operating and financial performance, the lack of marketability of the Company’s common stock, general and industry-specific economic outlook, and the likelihood of achieving a liquidity event, such as an initial public offering, a merger, or acquisition of the Company given prevailing market conditions. After the completion of the IPO, the fair value of the Company’s common stock is determined by the closing price, on the date of grant, of its common stock, which is traded on the Nasdaq stock exchange. Expected Term: For option grants subject to service-based vesting conditions only, the expected term represents the period that the Company’s stock options are expected to be outstanding and is calculated using the simplified method for options that have only service-based vesting conditions. The simplified method deems the term to be the average of the time-to-vesting and the contractual life of the options. For other option grants, the Company estimates the expected term using historical data on employee exercises and post-vesting employment termination behavior, considering the contractual life of the award. Expected Volatility: Since the Company does not have a sufficient trading history of its common stock, the expected volatility was derived from the average historical stock volatilities of public companies within the Company’s industry that it considers to be comparable to its business, over a period equivalent to the expected term of the stock options. Risk-Free Interest Rate: The Company bases the risk-free interest rate on the implied yield available on U.S. Treasury zero-coupon notes with maturities equivalent to the option’s expected term. Expected Dividend Yield: The Company has not issued any dividends in its history and does not expect to issue dividends over the life of the options and therefore has estimated the dividend yield to be zero . The fair value of stock options granted was estimated on the date of grant using the Black-Scholes option-pricing model with the following weighted-average assumptions: Three Months Ended June 30, Six Months Ended June 30, 2021 2020 2021 2020 Expected term (in years) 6.36 6.27 6.17 6.24 Expected volatility 63.7 % 70.0 % 66.3 % 68.6 % Risk-free interest rate 1.1 % 0.4 % 1.1 % 0.6 % Expected dividend yield 0 % 0 % 0 % 0 % Stock-Based Compensation Expense Total stock-based compensation expense was as follows (in thousands): Three Months Ended June 30, Six Months Ended June 30, 2021 2020 2021 2020 Cost of revenue - subscription $ 2,172 $ 524 $ 3,147 $ 986 Cost of revenue - services 1,055 312 1,599 662 Research and development 8,932 2,250 12,443 4,296 Sales and marketing 11,155 2,735 16,131 5,108 General and administrative 11,202 1,251 14,549 2,471 Stock-based compensation, net of amounts capitalized $ 34,516 $ 7,072 $ 47,869 $ 13,523 Capitalized stock-based compensation 396 181 494 299 Total stock-based compensation $ 34,912 $ 7,253 $ 48,363 $ 13,822 As of June 30, 2021 , there was $ 413.1 million of unrecognized stock-based compensation expense, which is expected to be recognized over a weighted-average period of 3.4 years. |
Income Taxes
Income Taxes | 6 Months Ended |
Jun. 30, 2021 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | 10. Income Taxes The Company computes its provision for (benefit from) income taxes for interim periods by applying its estimated annual effective tax rate to year-to-date loss or income for includable jurisdictions before income taxes from recurring operations and adjusting for discrete tax items arising in that interim period. The Company’s provision for (benefit from) income taxes was $ 2.2 million and $( 0.1 ) million for the three months ended June 30, 2021 and 2020, respectively, and $ 2.1 million and $ 0.3 million for the six months ended June 30, 2021 and 2020, respectively. The Company’s provision for (benefit from) income taxes for the three and six months ended June 30, 2021 was primarily driven by a valuation allowance on U.S. deferred tax assets, foreign and state taxes, and a valuation allowance recorded during the quarter on U.K. net deferred tax assets. The Company’s provision for (benefit from) income taxes for the three and six months ended June 30, 2020 was primarily driven by a valuation allowance on U.S. deferred tax assets, a stock compensation windfall, and foreign and state taxes. During the three months ended June 30, 2021, based on the weight of positive and negative evidence, the Company recorded a valuation allowance on its U.K. net deferred tax assets. The Company maintains a full valuation allowance against its U.S. deferred tax assets. As of June 30, 2021, gross unrecognized tax benefits were $ 4.2 million, which would not affect the Company’s effective tax rate if recognized. The Company does not expect its gross unrecognized tax benefits to change significantly within the next 12 months, although it is reasonably possible that certain unrecognized tax benefits may increase or decrease within the next 12 months due to tax examination changes, settlement activities, or the impact on recognition and measurement considerations related to the results of published tax cases or other similar activities. There were no interest and penalties associated with unrecognized income tax benefits for any period presented. |
Net Loss Per Share Attributable
Net Loss Per Share Attributable to Class A and Class B Stockholders | 6 Months Ended |
Jun. 30, 2021 | |
Earnings Per Share [Abstract] | |
Net Loss Per Share | 11. Net Loss Per Share The following table presents the calculation of basic and diluted net loss per share attributable to common stockholders (in thousands, except share and per share data): Three Months Ended June 30, 2021 2020 Class A Class B Class A Class B Numerator: Net loss attributable to common stockholders $ ( 778 ) $ ( 87,392 ) $ - $ ( 26,296 ) Denominator: Weighted-average shares used to compute net loss per share attributable to common stockholders, basic and diluted 1,047,090 117,601,565 - 105,532,865 Net loss per share attributable to common stockholders, basic and diluted $ ( 0.74 ) $ ( 0.74 ) $ - $ ( 0.25 ) Six Months Ended June 30, 2021 2020 Class A Class B Class A Class B Numerator: Net loss attributable to common stockholders $ ( 614 ) $ ( 132,082 ) $ - $ ( 59,931 ) Denominator: Weighted-average shares used to compute net loss per share attributable to common stockholders, basic and diluted 526,437 113,191,109 - 106,964,953 Net loss per share attributable to common stockholders, basic and diluted $ ( 1.17 ) $ ( 1.17 ) $ - $ ( 0.56 ) The following outstanding potentially dilutive shares were excluded from the computation of diluted net loss per share attributable to common stockholders for the periods presented because the impact of including them would have been anti-dilutive: June 30, 2021 June 30, 2020 Redeemable convertible preferred stock - 107,325,608 Stock options 75,323,365 68,290,426 Unvested early exercised stock options 3,486,976 3,018,705 RSUs 4,050,033 - Total 82,860,374 178,634,739 |
Basis of Presentation and Sum_2
Basis of Presentation and Summary of Significant Accounting Policies (Policies) | 6 Months Ended |
Jun. 30, 2021 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States (“GAAP”) and applicable rules and regulations of the U.S. Securities and Exchange Commission (“SEC”) regarding interim financial reporting. Certain information and note disclosures normally included in the financial statements prepared in accordance with GAAP have been condensed or omitted pursuant to such rules and regulations. Therefore, these condensed consolidated financial statements should be read in conjunction with the audited consolidated financial statements and notes included in the Company’s final prospectus dated June 23, 2021 and filed with the SEC pursuant to Rule 424(b)(4) on June 25, 2021 ( “Final Prospectus”). In management’s opinion, the unaudited condensed consolidated financial statements have been prepared on a basis consistent with the annual consolidated financial statements and reflect all adjustments, which include only normal recurring adjustments, necessary for the fair statement of the Company’s financial position as of June 30, 2021 and the results of operations and cash flows for the three and six months ended June 30, 2021 and 2020. The results of operations for the three and six months ended June 30, 2021 are not necessarily indicative of the results to be expected for the full year or any other future interim or annual period. The condensed consolidated financial statements include the accounts of the Company and its wholly owned subsidiaries. All intercompany balances and transactions have been eliminated in consolidation. |
Use of Estimates | Use of Estimates The preparation of the consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenue and expenses during the reporting period. Such estimates include, but are not limited to, the standalone selling price for each distinct performance obligation included in customer contracts, deferred contract acquisition costs and their period of benefit, valuation of stock-based awards, the fair value of the Company’s common stock prior to its IPO in June 2021, capitalization and estimated useful life of internal-use software, the incremental borrowing rate used to measure operating lease liabilities, and accounting for income taxes. The Company bases its estimates on historical and anticipated results, trends, and various other assumptions that it believes are reasonable under the circumstances. Estimates and assumptions about future events and their effects, including the impact of the COVID-19 pandemic, cannot be determined with certainty and therefore require the exercise of judgment. Actual results could differ from those estimates and any such differences may be material to the Company’s condensed consolidated financial statements. |
Significant Accounting Policies | Significant Accounting Policies There have been no significant changes to the Company’s significant accounting policies disclosed in “Note 2 – Basis of Presentation and Summary of Significant Accounting Policies” of the Company’s Final Prospectus. |
Recent Accounting Pronouncements | Recent Accounting Pronouncements Recently Adopted Accounting Pronouncements Convertible Instruments: In August 2020, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2020-06, Debt—Debt with Conversion and Other Options (Subtopic 470-20) and Derivatives and Hedging—Contracts in Entity’s Own Equity (Subtopic 815-40): Accounting for Convertible Instruments and Contracts in an Entity’s Own Equity , which simplifies the accounting for certain financial instruments with characteristics of liabilities and equity. ASU 2020-06 reduces the number of accounting models for convertible debt instruments and convertible preferred stock, and enhances information transparency by making targeted improvements to the disclosures for convertible instruments and earnings per share guidance. The Company adopted this guidance as of January 1, 2021, and the adoption did not have a material impact on its condensed consolidated financial statements. Recent Accounting Pronouncements Not Yet Adopted Credit Losses : In June 2016, the FASB issued ASU No. 2016-13, Financial Instruments—Credit Losses (Topic 326): Measurement of Credit Losses on Financial Statements, which requires the measurement and recognition of expected credit losses for financial assets held at amortized cost, which includes the Company’s accounts receivable, certain financial instruments, and contract assets. ASU 2016-13 replaces the existing incurred loss impairment model with an expected loss methodology. Subsequently, the FASB issued multiple codification improvement amendments to ASU 2016-13. ASU 2016-13 and the applicable subsequent amendments are effective for the Company for the year beginning January 1, 2023, though early adoption is permitted. The Company is currently evaluating the potential impact of this guidance on its consolidated financial statements. |
Marketable Securities (Tables)
Marketable Securities (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Investments Debt And Equity Securities [Abstract] | |
Schedule of Fair Value and Amortized Cost of Contractual Maturities | The following table summarizes the contractual maturities of the Company’s marketable securities (in thousands): June 30, 2021 December 31, 2020 Amortized Cost Fair Value Amortized Cost Fair Value Due within one year $ 146,412 $ 146,506 $ 180,320 $ 180,520 Due after one year through five years 37,046 37,020 71,104 71,236 Total $ 183,458 $ 183,526 $ 251,424 $ 251,756 |
Schedule of Fair Value and Amortized Cost of Marketable Securities | The following tables summarize the fair values of the Company’s marketable securities (in thousands): June 30, 2021 Amortized Unrealized Unrealized Fair Corporate notes and bonds $ 114,597 $ 97 $ ( 18 ) $ 114,676 Commercial paper 50,816 8 - 50,824 U.S. agency obligations 15,000 - ( 16 ) 14,984 Municipal bonds 3,045 - ( 3 ) 3,042 Total marketable securities $ 183,458 $ 105 $ ( 37 ) $ 183,526 December 31, 2020 Amortized Unrealized Unrealized Fair Corporate notes and bonds $ 155,401 $ 360 $ ( 21 ) $ 155,740 Commercial paper 63,503 27 ( 24 ) 63,506 U.S. agency obligations 32,520 - ( 10 ) 32,510 Total marketable securities $ 251,424 $ 387 $ ( 55 ) $ 251,756 |
Fair Value of Financial Instr_2
Fair Value of Financial Instruments (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Fair Value Disclosures [Abstract] | |
Schedule of Fair Value, Assets Measured on Recurring Basis | The following tables summarize the Company’s financial assets that are measured at fair value on a recurring basis (in thousands): June 30, 2021 Level 1 Level 2 Total Cash equivalents: Money market funds $ 56,396 $ - $ 56,396 Marketable securities: Corporate notes and bonds - 114,676 114,676 Commercial paper - 50,824 50,824 U.S. agency obligations - 14,984 14,984 Municipal bonds - 3,042 3,042 Total $ 56,396 $ 183,526 $ 239,922 December 31, 2020 Level 1 Level 2 Total Cash equivalents: Money market funds $ 12,409 $ - $ 12,409 Marketable securities: Corporate notes and bonds - 155,740 155,740 Commercial paper - 63,506 63,506 U.S. agency obligations - 32,510 32,510 Total $ 12,409 $ 251,756 $ 264,165 |
Balance Sheet Components (Table
Balance Sheet Components (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Organization Consolidation And Presentation Of Financial Statements [Abstract] | |
Summary of Property and Equipment, Net | The cost and accumulated depreciation and amortization of property and equipment were as follows (in thousands): June 30, 2021 December 31, 2020 Computers and equipment $ 4,109 $ 2,640 Furniture and fixtures 1,312 1,360 Purchased software 26 26 Leasehold improvements 155 136 Internal-use software 6,160 4,016 Construction in progress 1,450 1,183 Property and equipment, at cost $ 13,212 $ 9,361 Less: Accumulated depreciation and amortization ( 4,152 ) ( 2,643 ) Property and equipment, net $ 9,060 $ 6,718 |
Summary of Accrued Expense and Other Liabilities | Accrued expenses and other liabilities consisted of the following (in thousands): June 30, 2021 December 31, 2020 Accrued expenses $ 13,199 $ 7,225 Accrued commissions 12,373 10,189 Accrued payroll taxes 7,531 6,756 Accrued compensation and benefits 6,806 4,240 Other liabilities 10,061 5,301 Total accrued expenses and other liabilities $ 49,970 $ 33,711 |
Stockholders' Equity (Deficit)
Stockholders' Equity (Deficit) (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Stockholders' Equity Note [Abstract] | |
Common Stock Reserved for Future Issuance | The Company has reserved the following shares of common stock for future issuance: June 30, 2021 December 31, 2020 Redeemable convertible preferred stock - 115,277,850 Convertible founder stock - 635,818 2014 Stock Plan: Options issued and outstanding 75,323,365 71,213,150 Restricted stock units issued and outstanding 4,050,033 - Remaining shares available for future issuance under the 2014 Plan - 4,722,481 2021 Equity Incentive Plan: Options issued and outstanding - - Restricted stock units issued and outstanding - - Remaining shares available for future issuance under the 2021 Plan 33,750,414 - 2021 Employee Stock Purchase Plan: 5,162,575 - Total 118,286,387 191,849,299 |
Summary of Stock Equity Award Activity | The following table summarizes stock equity award activity and activity regarding shares available for grant under the 2014 Plan and the 2021 Plan: Equity Awards Outstanding Weighted-Average Aggregate Shares Outstanding Weighted-Average Remaining Intrinsic Available Stock Exercise Contractual Term Value for Grant Options Price (in years) (in thousands) Balance as of January 1, 2021 4,722,481 71,213,150 $ 3.39 8.26 $ 677,503 Increase in authorized shares 16,000,000 - $ - Stock options granted ( 13,603,242 ) 13,603,242 $ 15.18 Stock options exercised - ( 4,042,079 ) $ 3.38 Stock options forfeited 1,149,971 ( 1,149,971 ) $ 3.34 Repurchases of unvested common stock 38,400 - $ - RSUs granted ( 14,000 ) - $ - Balance as of March 31, 2021 8,293,610 79,624,342 $ 5.40 8.35 $ 1,158,361 Increase in authorized shares 32,412,876 - $ - Stock options granted ( 3,586,053 ) 3,586,053 $ 20.69 Stock options exercised - ( 7,284,453 ) $ 3.33 Stock options forfeited 602,577 ( 602,577 ) $ 4.97 Repurchases of unvested common stock 78,687 - $ - RSUs granted ( 4,070,219 ) - $ - RSUs forfeited 18,936 - $ - Balance as of June 30, 2021 33,750,414 75,323,365 $ 6.33 8.18 $ 3,101,256 Vested as of June 30, 2021 24,593,277 $ 2.42 6.84 $ 1,108,633 Vested and expected to vest as of June 30, 2021 75,323,365 $ 6.33 8.18 $ 3,101,256 |
Schedule of Restricted Stock Unit Activity | RSUs Outstanding Weighted- Average Number Grant Date of Shares Fair Value Unvested balances as of January 1, 2021 - $ - RSUs granted 14,000 $ 19.36 RSUs vested - $ - RSUs forfeited - $ - Unvested balances as of March 31, 2021 14,000 $ 19.36 RSUs granted 4,070,219 $ 28.90 RSUs vested ( 15,250 ) $ 19.94 RSUs forfeited ( 18,936 ) $ 21.76 Unvested balances as of June 30, 2021 4,050,033 $ 28.93 |
Schedule of Weighted-Average Assumptions to Estimate Fair Value of Stock Options | The fair value of stock options granted was estimated on the date of grant using the Black-Scholes option-pricing model with the following weighted-average assumptions: Three Months Ended June 30, Six Months Ended June 30, 2021 2020 2021 2020 Expected term (in years) 6.36 6.27 6.17 6.24 Expected volatility 63.7 % 70.0 % 66.3 % 68.6 % Risk-free interest rate 1.1 % 0.4 % 1.1 % 0.6 % Expected dividend yield 0 % 0 % 0 % 0 % |
Summary of Stock-Based Compensation Expense | Total stock-based compensation expense was as follows (in thousands): Three Months Ended June 30, Six Months Ended June 30, 2021 2020 2021 2020 Cost of revenue - subscription $ 2,172 $ 524 $ 3,147 $ 986 Cost of revenue - services 1,055 312 1,599 662 Research and development 8,932 2,250 12,443 4,296 Sales and marketing 11,155 2,735 16,131 5,108 General and administrative 11,202 1,251 14,549 2,471 Stock-based compensation, net of amounts capitalized $ 34,516 $ 7,072 $ 47,869 $ 13,523 Capitalized stock-based compensation 396 181 494 299 Total stock-based compensation $ 34,912 $ 7,253 $ 48,363 $ 13,822 |
Revenue (Tables)
Revenue (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Revenue From Contract With Customer [Abstract] | |
Summary of Revenue Disaggregated by Geographic Markets | The following table sets forth revenue disaggregated by geographic markets based on the location of the customer and by subscription and service categories (dollars in thousands): Three Months Ended June 30, Six Months Ended June 30, 2021 2020 2021 2020 Geographic markets: United States $ 56,811 64 % $ 36,032 67 % $ 106,090 64 % $ 70,410 67 % International 31,527 36 % 17,820 33 % 59,276 36 % 34,346 33 % Total revenue $ 88,338 100 % $ 53,852 100 % $ 165,366 100 % $ 104,756 100 % Subscriptions and services: Confluent Platform - License $ 15,551 18 % $ 10,188 19 % $ 29,512 18 % $ 20,180 19 % Confluent Platform - PCS (1) 43,296 49 % 30,229 56 % 83,408 51 % 57,964 56 % Confluent Cloud 19,669 22 % 6,556 12 % 33,588 20 % 12,772 12 % Subscription 78,516 89 % 46,973 87 % 146,508 89 % 90,916 87 % Services 9,822 11 % 6,879 13 % 18,858 11 % 13,840 13 % Total revenue $ 88,338 100 % $ 53,852 100 % $ 165,366 100 % $ 104,756 100 % (1) PCS refers to post-contract customer support, maintenance, and upgrades. |
Schedule of Activity of Deferred Contract Acquisition Costs | The following table summarizes the activity of deferred contract acquisition costs (in thousands): Six Months Ended June 30, 2021 2020 Beginning balance $ 47,599 $ 25,499 Capitalization of contract acquisition costs 26,348 13,927 Amortization of deferred contract acquisition costs ( 11,583 ) ( 6,128 ) Ending balance $ 62,364 $ 33,298 |
Net Loss Per Share Attributab_2
Net Loss Per Share Attributable to Class A and Class B Stockholders (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Earnings Per Share [Abstract] | |
Schedule of Calculation of Basic and Diluted Net Loss Per Share Attributable to Class A and Class B Stockholders | The following table presents the calculation of basic and diluted net loss per share attributable to common stockholders (in thousands, except share and per share data): Three Months Ended June 30, 2021 2020 Class A Class B Class A Class B Numerator: Net loss attributable to common stockholders $ ( 778 ) $ ( 87,392 ) $ - $ ( 26,296 ) Denominator: Weighted-average shares used to compute net loss per share attributable to common stockholders, basic and diluted 1,047,090 117,601,565 - 105,532,865 Net loss per share attributable to common stockholders, basic and diluted $ ( 0.74 ) $ ( 0.74 ) $ - $ ( 0.25 ) Six Months Ended June 30, 2021 2020 Class A Class B Class A Class B Numerator: Net loss attributable to common stockholders $ ( 614 ) $ ( 132,082 ) $ - $ ( 59,931 ) Denominator: Weighted-average shares used to compute net loss per share attributable to common stockholders, basic and diluted 526,437 113,191,109 - 106,964,953 Net loss per share attributable to common stockholders, basic and diluted $ ( 1.17 ) $ ( 1.17 ) $ - $ ( 0.56 ) |
Schedule of Antidilutive Securities Excluded from Diluted Income (Loss) per Share | The following outstanding potentially dilutive shares were excluded from the computation of diluted net loss per share attributable to common stockholders for the periods presented because the impact of including them would have been anti-dilutive: June 30, 2021 June 30, 2020 Redeemable convertible preferred stock - 107,325,608 Stock options 75,323,365 68,290,426 Unvested early exercised stock options 3,486,976 3,018,705 RSUs 4,050,033 - Total 82,860,374 178,634,739 |
Organization and Description _2
Organization and Description of Business - Additional Information (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2021 | Jun. 30, 2020 | Dec. 31, 2020 | |
Class Of Stock [Line Items] | ||||
Proceeds from initial public offering, net of underwriting discounts and commissions | $ 786,600 | $ 0 | ||
Deferred Offering Costs | $ 100 | |||
IPO | ||||
Class Of Stock [Line Items] | ||||
Deferred offering costs, net of reimbursement received from the underwriters | $ 3,400 | |||
Class A Common Stock [Member] | IPO | ||||
Class Of Stock [Line Items] | ||||
Number of new stock issued during the period | 23,000,000 | |||
Shares issued, price per share | $ 36 | $ 36 | ||
Class B Common Stock [Member] | ||||
Class Of Stock [Line Items] | ||||
Conversion of convertible stock to common stock (shares) common stock upon initial public offering (shares) | 115,913,668 | 115,913,668 | ||
Redeemable Convertible Preferred Stock [Member] | IPO | ||||
Class Of Stock [Line Items] | ||||
Conversion Basis | equal | |||
Conversion of convertible stock to common stock (shares) common stock upon initial public offering (shares) | 115,277,850 | |||
Convertible Founder Stock [Member] | ||||
Class Of Stock [Line Items] | ||||
Conversion of convertible stock to common stock (shares) common stock upon initial public offering (shares) | (635,818) | (635,818) | ||
Convertible Founder Stock [Member] | IPO | ||||
Class Of Stock [Line Items] | ||||
Conversion Basis | equal | |||
Conversion of convertible stock to common stock (shares) common stock upon initial public offering (shares) | 635,818 |
Marketable Securities - Schedul
Marketable Securities - Schedule of Fair Value and Amortized Cost of Marketable Securities (Details) - USD ($) $ in Thousands | Jun. 30, 2021 | Dec. 31, 2020 |
Marketable Securities [Line Items] | ||
Amortized Cost | $ 183,458 | $ 251,424 |
Unrealized Gains | 105 | 387 |
Unrealized Losses | (37) | (55) |
Fair Value | 183,526 | 251,756 |
U.S. agency obligations [Member] | ||
Marketable Securities [Line Items] | ||
Amortized Cost | 15,000 | 32,520 |
Unrealized Gains | 0 | 0 |
Unrealized Losses | (16) | (10) |
Fair Value | 14,984 | 32,510 |
Municipal bonds [Member] | ||
Marketable Securities [Line Items] | ||
Amortized Cost | 3,045 | |
Unrealized Gains | 0 | |
Unrealized Losses | (3) | |
Fair Value | 3,042 | |
Corporate notes and bonds [Member] | ||
Marketable Securities [Line Items] | ||
Amortized Cost | 114,597 | 155,401 |
Unrealized Gains | 97 | 360 |
Unrealized Losses | (18) | (21) |
Fair Value | 114,676 | 155,740 |
Commercial paper [Member] | ||
Marketable Securities [Line Items] | ||
Amortized Cost | 50,816 | 63,503 |
Unrealized Gains | 8 | 27 |
Unrealized Losses | 0 | (24) |
Fair Value | $ 50,824 | $ 63,506 |
Marketable Securities - Additio
Marketable Securities - Additional Information (Details) - USD ($) | Jun. 30, 2021 | Dec. 31, 2020 |
Investments Debt And Equity Securities [Abstract] | ||
Available-for-sale securities, continuous unrealized loss position, fair value | $ 70,200 | $ 91,500,000 |
Available-for-sale securities, continuous unrealized loss position, twelve months or longer, fair value | $ 0 | $ 0 |
Marketable Securities - Sched_2
Marketable Securities - Schedule of Fair Value of Contractual Maturities (Details) - USD ($) $ in Thousands | Jun. 30, 2021 | Dec. 31, 2020 |
Investments Debt And Equity Securities [Abstract] | ||
Due within one year | $ 146,412 | $ 180,320 |
Due after one year through five years | 37,046 | 71,104 |
Amortized Cost | 183,458 | 251,424 |
Due within one year, fair value | 146,506 | 180,520 |
Due after one year through five years, fair value | 37,020 | 71,236 |
Fair Value | $ 183,526 | $ 251,756 |
Fair Value of Financial Instr_3
Fair Value of Financial Instruments - Financial Assets Measured at Fair Value on Recurring Basis (Details) - USD ($) $ in Thousands | Jun. 30, 2021 | Dec. 31, 2020 |
Marketable securities: | ||
Fair value, Marketable securities | $ 183,526 | $ 251,756 |
Municipal Bonds [Member] | ||
Marketable securities: | ||
Fair value, Marketable securities | 3,042 | |
Level 2 [Member] | Municipal Bonds [Member] | ||
Marketable securities: | ||
Fair value, Marketable securities | 3,042 | |
Level 2 [Member] | Corporate Notes and Bonds [Member] | ||
Marketable securities: | ||
Fair value, Marketable securities | 114,676 | |
Level 2 [Member] | Commercial Paper [Member] | ||
Marketable securities: | ||
Fair value, Marketable securities | 50,824 | |
Level 2 [Member] | U.S. Agency Obligations [Member] | ||
Marketable securities: | ||
Fair value, Marketable securities | 14,984 | |
Fair Value, Measurements, Recurring [Member] | ||
Cash equivalents and Marketable securities: | ||
Assets, Fair Value | 239,922 | 264,165 |
Fair Value, Measurements, Recurring [Member] | Municipal Bonds [Member] | ||
Marketable securities: | ||
Fair value, Marketable securities | 3,042 | |
Fair Value, Measurements, Recurring [Member] | Corporate Notes and Bonds [Member] | ||
Marketable securities: | ||
Fair value, Marketable securities | 114,676 | 155,740 |
Fair Value, Measurements, Recurring [Member] | Commercial Paper [Member] | ||
Marketable securities: | ||
Fair value, Marketable securities | 50,824 | 63,506 |
Fair Value, Measurements, Recurring [Member] | U.S. Agency Obligations [Member] | ||
Marketable securities: | ||
Fair value, Marketable securities | 14,984 | 32,510 |
Fair Value, Measurements, Recurring [Member] | Money Market Funds [Member] | ||
Cash equivalents: | ||
Fair value, Cash equivalents | 56,396 | 12,409 |
Fair Value, Measurements, Recurring [Member] | Level 1 [Member] | ||
Cash equivalents and Marketable securities: | ||
Assets, Fair Value | 56,396 | 12,409 |
Fair Value, Measurements, Recurring [Member] | Level 1 [Member] | Municipal Bonds [Member] | ||
Marketable securities: | ||
Fair value, Marketable securities | 0 | |
Fair Value, Measurements, Recurring [Member] | Level 1 [Member] | Corporate Notes and Bonds [Member] | ||
Marketable securities: | ||
Fair value, Marketable securities | 0 | 0 |
Fair Value, Measurements, Recurring [Member] | Level 1 [Member] | Commercial Paper [Member] | ||
Marketable securities: | ||
Fair value, Marketable securities | 0 | 0 |
Fair Value, Measurements, Recurring [Member] | Level 1 [Member] | U.S. Agency Obligations [Member] | ||
Marketable securities: | ||
Fair value, Marketable securities | 0 | 0 |
Fair Value, Measurements, Recurring [Member] | Level 1 [Member] | Money Market Funds [Member] | ||
Cash equivalents: | ||
Fair value, Cash equivalents | 56,396 | 12,409 |
Fair Value, Measurements, Recurring [Member] | Level 2 [Member] | ||
Cash equivalents and Marketable securities: | ||
Assets, Fair Value | 183,526 | 251,756 |
Fair Value, Measurements, Recurring [Member] | Level 2 [Member] | Corporate Notes and Bonds [Member] | ||
Marketable securities: | ||
Fair value, Marketable securities | 155,740 | |
Fair Value, Measurements, Recurring [Member] | Level 2 [Member] | Commercial Paper [Member] | ||
Marketable securities: | ||
Fair value, Marketable securities | 63,506 | |
Fair Value, Measurements, Recurring [Member] | Level 2 [Member] | U.S. Agency Obligations [Member] | ||
Marketable securities: | ||
Fair value, Marketable securities | 32,510 | |
Fair Value, Measurements, Recurring [Member] | Level 2 [Member] | Money Market Funds [Member] | ||
Cash equivalents: | ||
Fair value, Cash equivalents | $ 0 | $ 0 |
Balance Sheet Components - Summ
Balance Sheet Components - Summary of Property and Equipment, Net (Details) - USD ($) $ in Thousands | Jun. 30, 2021 | Dec. 31, 2020 |
Property Plant And Equipment [Line Items] | ||
Property and equipment, gross | $ 13,212 | $ 9,361 |
Less: Accumulated depreciation and amortization | (4,152) | (2,643) |
Property and equipment, net | 9,060 | 6,718 |
Computers and Equipment [Member] | ||
Property Plant And Equipment [Line Items] | ||
Property and equipment, gross | 4,109 | 2,640 |
Furniture and Fixtures [Member] | ||
Property Plant And Equipment [Line Items] | ||
Property and equipment, gross | 1,312 | 1,360 |
Software [Member] | ||
Property Plant And Equipment [Line Items] | ||
Property and equipment, gross | 26 | 26 |
Leasehold Improvements [Member] | ||
Property Plant And Equipment [Line Items] | ||
Property and equipment, gross | 155 | 136 |
Internal-use Software [Member] | ||
Property Plant And Equipment [Line Items] | ||
Property and equipment, gross | 6,160 | 4,016 |
Construction in Progress [Member] | ||
Property Plant And Equipment [Line Items] | ||
Property and equipment, gross | $ 1,450 | $ 1,183 |
Balance Sheet Components - Addi
Balance Sheet Components - Additional Information (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Property Plant And Equipment [Abstract] | ||||
Depreciation and amortization | $ 700 | $ 400 | $ 1,543 | $ 699 |
Balance Sheet Components - Su_2
Balance Sheet Components - Summary of Accrued Expense and Other Liabilities (Details) - USD ($) $ in Thousands | Jun. 30, 2021 | Dec. 31, 2020 |
Payables And Accruals [Abstract] | ||
Accrued expenses | $ 13,199 | $ 7,225 |
Accrued commissions | 12,373 | 10,189 |
Accrued payroll taxes | 7,531 | 6,756 |
Accrued compensation and benefits | 6,806 | 4,240 |
Other liabilities | 10,061 | 5,301 |
Total accrued expenses and other liabilities | $ 49,970 | $ 33,711 |
Commitments and Contingencies -
Commitments and Contingencies - Additional Information (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Dec. 31, 2019 | |
Lessee Lease Description [Line Items] | ||||
Lessee, operating lease, existence of option to terminate | true | |||
Operating lease, option to terminate, description | an option to terminate the lease early within three years of lease termination | |||
Sublease Income | $ 0 | $ 0 | $ 1,400 | |
CALIFORNIA [Member] | ||||
Lessee Lease Description [Line Items] | ||||
Letters of Credit Outstanding, Amount | $ 8,200 | |||
Maximum [Member] | ||||
Lessee Lease Description [Line Items] | ||||
Operating lease, renewal term | 3 years | 3 years |
Revenue - Summary of Revenue Di
Revenue - Summary of Revenue Disaggregated by Geographic Markets (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 revenue | $ 88,338 | $ 53,852 | $ 165,366 | $ 104,756 |
Percentage of Revenue | 100.00% | 100.00% | 100.00% | 100.00% |
United States [Member] | ||||
Disaggregation Of Revenue [Line Items] | ||||
Total revenue | $ 56,811 | $ 36,032 | $ 106,090 | $ 70,410 |
Percentage of Revenue | 64.00% | 67.00% | 64.00% | 67.00% |
International [Member] | ||||
Disaggregation Of Revenue [Line Items] | ||||
Total revenue | $ 31,527 | $ 17,820 | $ 59,276 | $ 34,346 |
Percentage of Revenue | 36.00% | 33.00% | 36.00% | 33.00% |
License [Member] | ||||
Disaggregation Of Revenue [Line Items] | ||||
Total revenue | $ 15,551 | $ 10,188 | $ 29,512 | $ 20,180 |
Percentage of Revenue | 18.00% | 19.00% | 18.00% | 19.00% |
Post Contract Customer Support [Member] | ||||
Disaggregation Of Revenue [Line Items] | ||||
Total revenue | $ 43,296 | $ 30,229 | $ 83,408 | $ 57,964 |
Percentage of Revenue | 49.00% | 56.00% | 51.00% | 56.00% |
Confluent Cloud [Member] | ||||
Disaggregation Of Revenue [Line Items] | ||||
Total revenue | $ 19,669 | $ 6,556 | $ 33,588 | $ 12,772 |
Percentage of Revenue | 22.00% | 12.00% | 20.00% | 12.00% |
Subscription [Member] | ||||
Disaggregation Of Revenue [Line Items] | ||||
Total revenue | $ 78,516 | $ 46,973 | $ 146,508 | $ 90,916 |
Percentage of Revenue | 89.00% | 87.00% | 89.00% | 87.00% |
Services [Member] | ||||
Disaggregation Of Revenue [Line Items] | ||||
Total revenue | $ 9,822 | $ 6,879 | $ 18,858 | $ 13,840 |
Percentage of Revenue | 11.00% | 13.00% | 11.00% | 13.00% |
Revenue - Additional Informatio
Revenue - Additional Information (Details) - USD ($) $ in Millions | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Dec. 31, 2020 | |
Disaggregation Of Revenue [Line Items] | |||
Revenue, remaining performance obligation, amount | $ 327.2 | ||
Revenue, remaining performance obligation, percentage | 69.00% | ||
Deferred revenue | $ 190.5 | $ 159.2 | |
Revenue recognized from deferred revenue | 91 | $ 56.6 | |
Allowance for doubtful accounts | 0 | 0 | |
Unbilled receivables balance | $ 25 | $ 17.6 |
Revenue - Schedule of Activity
Revenue - Schedule of Activity of Deferred Contract Acquisition Costs (Details) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2021 | Jun. 30, 2020 | |
Revenue From Contract With Customer [Abstract] | ||
Beginning balance | $ 47,599 | $ 25,499 |
Capitalization of contract acquisition costs | 26,348 | 13,927 |
Amortization of deferred contract acquisition costs | (11,583) | (6,128) |
Ending balance | $ 62,364 | $ 33,298 |
Redeemable Convertible Prefer_2
Redeemable Convertible Preferred Stock - Additional Information (Details) - USD ($) $ in Millions | Jun. 30, 2021 | Dec. 31, 2020 |
Temporary Equity [Line Items] | ||
Redeemable Convertible Preferred Stock, Shares Issued | 0 | 115,277,850 |
Redeemable Convertible Preferred Stock, Shares Outstanding | 0 | 115,277,850 |
Class B Common Stock [Member] | ||
Temporary Equity [Line Items] | ||
Convertible preferred stock, shares issued upon conversion | 115,277,850 | |
Convertible preferred stock, shares issued upon conversion, carrying value | $ 574.6 |
Stockholders' Equity (Deficit_2
Stockholders' Equity (Deficit) - Additional Information (Details) $ / shares in Units, $ in Thousands | 1 Months Ended | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||
Jun. 30, 2021USD ($)$ / sharesshares | Jun. 30, 2021USD ($)$ / sharesshares | Jun. 30, 2020 | Jun. 30, 2021USD ($)Vote$ / sharesshares | Jun. 30, 2020USD ($)$ / shares | Dec. 31, 2020USD ($)$ / sharesshares | |
Class Of Stock [Line Items] | ||||||
Preferred Stock Shares Authorized | 10,000,000 | 10,000,000 | 10,000,000 | 0 | ||
Preferred Stock Par Or Stated Value Per Share | $ / shares | $ 0.00001 | $ 0.00001 | $ 0.00001 | $ 0.00001 | ||
Common Stock Shares Authorized | 0 | 0 | 0 | 323,000,000 | ||
Conversion, percent threshold | 10.00% | |||||
Common stock charitable donation expense | $ | $ 13,290 | $ 0 | ||||
Common Stock, Par Value | $ / shares | $ 0.00001 | $ 0.00001 | $ 0.00001 | $ 0.00001 | ||
Common stock reserved for issuance (in shares) | 118,286,387 | 118,286,387 | 118,286,387 | 191,849,299 | ||
Intrinsic value of options exercised | $ | $ 216,100 | $ 14,500 | ||||
Weighted average grant date fair value per share of options granted | $ / shares | $ 12.41 | $ 2.91 | ||||
Shares early exercised and repurchase | 3,486,976 | 2,338,945 | ||||
Liabilities for early exercise of unvested stock options and other liabilities | $ | $ 21,300 | $ 21,300 | $ 21,300 | $ 6,900 | ||
Cumulative stock-based compensation expense | $ | $ 3,800 | |||||
Expected dividend yield | 0.00% | 0.00% | 0.00% | 0.00% | ||
Unrecognized stock-based compensation expense | $ | $ 413,100 | $ 413,100 | $ 413,100 | |||
Unrecognized stock-based compensation expense, weighted-average period | 3 years 4 months 24 days | |||||
Convertible Founder Stock [Member] | ||||||
Class Of Stock [Line Items] | ||||||
Convertible founder stock, shares issued upon conversion | 635,818 | 635,818 | 635,818 | |||
Convertible Founder Stock, Shares Issued | 0 | 0 | 0 | 635,818 | ||
Convertible Founder Stock, Shares Outstanding | 0 | 0 | 0 | 635,818 | ||
Common Class A [Member] | ||||||
Class Of Stock [Line Items] | ||||||
Common Stock Shares Authorized | 1,000,000,000 | 1,000,000,000 | 1,000,000,000 | 0 | ||
Common stock, voting rights, votes per share | Vote | 1 | |||||
Number of new stock issued during the period | 250,000 | 23,000,000 | 23,000,000 | |||
Common stock charitable donation expense | $ | $ 13,300 | |||||
Common Stock, Par Value | $ / shares | $ 0.00001 | $ 0.00001 | $ 0.00001 | $ 0.00001 | ||
Common Class B [Member] | ||||||
Class Of Stock [Line Items] | ||||||
Common Stock Shares Authorized | 500,000,000 | 500,000,000 | 500,000,000 | 0 | ||
Common stock, voting rights, votes per share | Vote | 10 | |||||
Common Stock, Par Value | $ / shares | $ 0.00001 | $ 0.00001 | $ 0.00001 | $ 0.00001 | ||
2021 Plan [Member] | Common Class A [Member] | ||||||
Class Of Stock [Line Items] | ||||||
Common stock reserved for issuance (in shares) | 25,812,876 | 25,812,876 | 25,812,876 | |||
2021 Employee Stock Purchase Plan [Member] | ||||||
Class Of Stock [Line Items] | ||||||
Common stock reserved for issuance (in shares) | 5,162,575 | 5,162,575 | 5,162,575 | 0 | ||
2021 Employee Stock Purchase Plan [Member] | Common Class A [Member] | ||||||
Class Of Stock [Line Items] | ||||||
Common stock reserved for issuance (in shares) | 5,162,575 | 5,162,575 | 5,162,575 | |||
Purchase price of common stock expressed as a percentage of its fair value | 85.00% | |||||
Performance Based Vesting Condition [Member] | ||||||
Class Of Stock [Line Items] | ||||||
Performance options, shares | 2,875,255 | 2,875,255 | ||||
Service Based Vesting Condition [Member] | ||||||
Class Of Stock [Line Items] | ||||||
Performance options, shares | 2,875,255 | 2,875,255 | ||||
Restricted Stock Units (RSUs) [Member] | ||||||
Class Of Stock [Line Items] | ||||||
Service based vesting period | 4 years | |||||
Stock based compensation expense | $ | $ 6,800 |
Stockholders' Equity (Deficit_3
Stockholders' Equity (Deficit) - Common Stock Reserved for Future Issuance (Details) - shares | Jun. 30, 2021 | Dec. 31, 2020 |
Class Of Stock [Line Items] | ||
Common stock reserved for issuance (in shares) | 118,286,387 | 191,849,299 |
2014 Stock Plan [Member] | ||
Class Of Stock [Line Items] | ||
Common stock reserved for issuance (in shares) | 0 | 4,722,481 |
2014 Stock Plan [Member] | Stock Options [Member] | ||
Class Of Stock [Line Items] | ||
Common stock reserved for issuance (in shares) | 75,323,365 | 71,213,150 |
2014 Stock Plan [Member] | RSUs [Member] | ||
Class Of Stock [Line Items] | ||
Common stock reserved for issuance (in shares) | 4,050,033 | 0 |
2021 Equity Incentive Plan [Member] | ||
Class Of Stock [Line Items] | ||
Common stock reserved for issuance (in shares) | 33,750,414 | 0 |
2021 Equity Incentive Plan [Member] | Stock Options [Member] | ||
Class Of Stock [Line Items] | ||
Common stock reserved for issuance (in shares) | 0 | 0 |
2021 Equity Incentive Plan [Member] | RSUs [Member] | ||
Class Of Stock [Line Items] | ||
Common stock reserved for issuance (in shares) | 0 | 0 |
2021 Employee Stock Purchase Plan [Member] | ||
Class Of Stock [Line Items] | ||
Common stock reserved for issuance (in shares) | 5,162,575 | 0 |
Redeemable Convertible Preferred Stock [Member] | ||
Class Of Stock [Line Items] | ||
Convertible preferred stock reserved for issuance (in shares) | 0 | 115,277,850 |
Convertible Founder Stock [Member] | ||
Class Of Stock [Line Items] | ||
Convertible founder stock (in shares) | 0 | 635,818 |
Stockholders' Equity (Deficit_4
Stockholders' Equity (Deficit) - Summary of Stock Equity Award Activity (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 6 Months Ended | 12 Months Ended | |
Jun. 30, 2021 | Mar. 31, 2021 | Jun. 30, 2021 | Dec. 31, 2020 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | ||||
Shares Available for Grant, Beginning Balance | 8,293,610 | 4,722,481 | 4,722,481 | |
Shares Available for Grant, Increase in authorized shares | 32,412,876 | 16,000,000 | ||
Shares Available for Grant, Stock options granted | (3,586,053) | (13,603,242) | ||
Shares Available for Grant, Stock options forfeited | 602,577 | 1,149,971 | ||
Shares Available for Grant, Repurchases of unvested common stock | 78,687 | 38,400 | ||
Shares Available for Grant, RSUs granted | (4,070,219) | (14,000) | ||
Shares Available for Grant, RSUs Forfeited | 18,936 | |||
Shares Available for Grant, Ending Balance | 33,750,414 | 8,293,610 | 33,750,414 | 4,722,481 |
Outstanding Stock Options, Beginning Balance | 79,624,342 | 71,213,150 | 71,213,150 | |
Outstanding Stock Options, Stock options granted | 3,586,053 | 13,603,242 | ||
Outstanding Stock Options, Stock options exercised | (7,284,453) | (4,042,079) | ||
Outstanding Stock Options, Stock options forfeited | (602,577) | (1,149,971) | ||
Outstanding Stock Options, Ending Balance | 75,323,365 | 79,624,342 | 75,323,365 | 71,213,150 |
Outstanding Stock Options, Vested | 24,593,277 | |||
Outstanding Stock Options, Vested and expected to vest | 75,323,365 | 75,323,365 | ||
Weighted-Average Exercise Price, Beginning Balance | $ 5.40 | $ 3.39 | $ 3.39 | |
Weighted-Average Exercise Price, Stock options granted | 20.69 | 15.18 | ||
Weighted-Average Exercise Price, Stock options exercised | 3.33 | 3.38 | ||
Weighted-Average Exercise Price, Stock options forfeited | 4.97 | 3.34 | ||
Weighted-Average Exercise Price, Ending Balance | 6.33 | $ 5.40 | 6.33 | $ 3.39 |
Weighted-Average Exercise Price, Vested | 2.42 | 2.42 | ||
Weighted-Average Exercise Price, Vested and Expected to Vest | $ 6.33 | $ 6.33 | ||
Weighted-Average Remaining Contractual Term (in years) | 8 years 2 months 4 days | 8 years 4 months 6 days | 8 years 3 months 3 days | |
Weighted-Average Remaining Contractual Term Vested (in years) | 6 years 10 months 2 days | |||
Weighted-Average Remaining Contractual Term Vested and expected to vest (in years) | 8 years 2 months 4 days | |||
Aggregate Intrinsic Value, Beginning Balance | $ 1,158,361 | $ 677,503 | $ 677,503 | |
Aggregate Intrinsic Value, Ending Balance | 3,101,256 | $ 1,158,361 | 3,101,256 | $ 677,503 |
Aggregate Intrinsic Value, Vested as of June 30, 2021 | 1,108,633 | 1,108,633 | ||
Aggregate Intrinsic Value, Vested and expected to vest as of June 30, 2021 | $ 3,101,256 | $ 3,101,256 |
Stockholders' Equity (Deficit_5
Stockholders' Equity (Deficit) - Schedule of Restricted Stock Unit Activity (Details) - Restricted Stock Units (RSUs) [Member] - $ / shares | 3 Months Ended | |
Jun. 30, 2021 | Mar. 31, 2021 | |
Share-based Compensation Arrangement by Share-based Payment Award, Non-Option Equity Instruments, Outstanding [Roll Forward] | ||
Number of Shares, Beginning Balance | 14,000 | 0 |
Number of Shares, RSUs granted | 4,070,219 | 14,000 |
Number of Shares, RSUs vested | (15,250) | 0 |
Number of Shares, RSUs forfeited | (18,936) | 0 |
Number of Shares, Ending Balance | 4,050,033 | 14,000 |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value [Abstract] | ||
Weighted-average grant date fair value, Beginning Balance (in dollars per share) | $ 19.36 | $ 0 |
Weighted-average grant date fair value, RSUs granted (in dollars per share) | 28.90 | 19.36 |
Weighted-average grant date fair value, RSUs vested (in dollars per share) | 19.94 | 0 |
Weighted-average grant date fair value, RSUs forfeited (in dollars per share) | 21.76 | 0 |
Weighted-average grant date fair value, Ending Balance (in dollars per share) | $ 28.93 | $ 19.36 |
Stockholders' Equity (Deficit_6
Stockholders' Equity (Deficit) - Schedule of Weighted-Average Assumptions to Estimate Fair Value of Stock Options (Details) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | ||||
Expected term (in years) | 6 years 4 months 9 days | 6 years 3 months 7 days | 6 years 2 months 1 day | 6 years 2 months 26 days |
Expected volatility | 63.70% | 70.00% | 66.30% | 68.60% |
Risk-free interest rate | 1.10% | 0.40% | 1.10% | 0.60% |
Expected dividend yield | 0.00% | 0.00% | 0.00% | 0.00% |
Stockholders' Equity (Deficit_7
Stockholders' Equity (Deficit) - Summary 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 Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Stock-based compensation, net of amounts capitalized | $ 34,516 | $ 7,072 | $ 47,869 | $ 13,523 |
Capitalized stock-based compensation | 396 | 181 | 494 | 299 |
Total stock-based compensation | 34,912 | 7,253 | 48,363 | 13,822 |
Cost of Revenue [Member] | Subscription [Member] | ||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Stock-based compensation, net of amounts capitalized | 2,172 | 524 | 3,147 | 986 |
Cost of Revenue [Member] | Services [Member] | ||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Stock-based compensation, net of amounts capitalized | 1,055 | 312 | 1,599 | 662 |
Research and Development [Member] | ||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Stock-based compensation, net of amounts capitalized | 8,932 | 2,250 | 12,443 | 4,296 |
Sales and Marketing [Member] | ||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Stock-based compensation, net of amounts capitalized | 11,155 | 2,735 | 16,131 | 5,108 |
General and Administrative [Member] | ||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Stock-based compensation, net of amounts capitalized | $ 11,202 | $ 1,251 | $ 14,549 | $ 2,471 |
Income Taxes - Additional Infor
Income Taxes - Additional Information (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 (benefit from) income taxes | $ 2,170 | $ (106) | $ 2,060 | $ 282 |
Unrecognized tax benefits | $ 4,200 | 4,200 | ||
Interest and penalties | $ 0 |
Net Loss Per Share Attributab_3
Net Loss Per Share Attributable to Class A and Class B Stockholders - Schedule of Calculation of Basic and Diluted Net Loss Per Share Attributable to Class A and Class B Stockholders (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 | |
Numerator: | ||||
Net loss attributable to common stockholders | $ (88,170) | $ (26,296) | $ (132,696) | $ (59,931) |
Denominator: | ||||
Weighted-average shares used to compute net loss per share attributable to common stockholders, basic and diluted | 118,648,655 | 105,532,865 | 113,717,546 | 106,964,953 |
Earnings Per Share Basic And Diluted | $ (0.74) | $ (0.25) | $ (1.17) | $ (0.56) |
Common Class A [Member] | ||||
Numerator: | ||||
Net loss attributable to common stockholders | $ (778) | $ 0 | $ (614) | $ 0 |
Denominator: | ||||
Weighted-average shares used to compute net loss per share attributable to common stockholders, basic and diluted | 1,047,090 | 0 | 526,437 | 0 |
Earnings Per Share Basic And Diluted | $ (0.74) | $ 0 | $ (1.17) | $ 0 |
Common Class B [Member] | ||||
Numerator: | ||||
Net loss attributable to common stockholders | $ (87,392) | $ (26,296) | $ (132,082) | $ (59,931) |
Denominator: | ||||
Weighted-average shares used to compute net loss per share attributable to common stockholders, basic and diluted | 117,601,565 | 105,532,865 | 113,191,109 | 106,964,953 |
Earnings Per Share Basic And Diluted | $ (0.74) | $ (0.25) | $ (1.17) | $ (0.56) |
Net Loss Per Share Attributab_4
Net Loss Per Share Attributable to Class A and Class B Stockholders - Schedule of Antidilutive Securities Excluded From Computation of Dilutied Net Loss Per Share (Details) - shares | 6 Months Ended | |
Jun. 30, 2021 | Jun. 30, 2020 | |
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | ||
Antidilutive securities excluded from computation of earnings per share amount | 82,860,374 | 178,634,739 |
Redeemable Convertible Preferred Stock [Member] | ||
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | ||
Antidilutive securities excluded from computation of earnings per share amount | 0 | 107,325,608 |
Stock Option [Member] | ||
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | ||
Antidilutive securities excluded from computation of earnings per share amount | 75,323,365 | 68,290,426 |
Unvested Early Exercised Stock Options [Member] | ||
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | ||
Antidilutive securities excluded from computation of earnings per share amount | 3,486,976 | 3,018,705 |
RSUs [Member] | ||
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | ||
Antidilutive securities excluded from computation of earnings per share amount | 4,050,033 | 0 |