Document and Entity Information
Document and Entity Information - shares | 9 Months Ended | |
Sep. 30, 2022 | Nov. 08, 2022 | |
Document Information [Line Items] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Sep. 30, 2022 | |
Document Fiscal Year Focus | 2022 | |
Document Fiscal Period Focus | Q3 | |
Current Fiscal Year End Date | --12-31 | |
Document Quarterly Report | true | |
Document Transition Report | false | |
Entity Registrant Name | Paymentus Holdings, Inc. | |
Entity Central Index Key | 0001841156 | |
Entity File Number | 001-40429 | |
Entity Tax Identification Number | 45-3188251 | |
Entity Incorporation, State or Country Code | DE | |
Entity Address, Address Line One | 11605 North | |
Entity Address Address Line2 | Community House Road, Suite 300 | |
Entity Address, City or Town | Charlotte | |
Entity Address, State or Province | NC | |
Entity Address, Postal Zip Code | 28277 | |
City Area Code | 888 | |
Local Phone Number | 440-4826 | |
Title of 12(b) Security | Class A Common Stock, par value $0.0001 per share | |
Trading Symbol | PAY | |
Security Exchange Name | NYSE | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Non-accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | true | |
Entity Ex Transition Period | false | |
Entity Shell Company | false | |
Common Class A [Member] | ||
Document Information [Line Items] | ||
Entity Common Stock Shares Outstanding | 19,653,961 | |
Common Class B [Member] | ||
Document Information [Line Items] | ||
Entity Common Stock Shares Outstanding | 103,336,337 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets (Unaudited) - USD ($) $ in Thousands | Sep. 30, 2022 | Dec. 31, 2021 |
Current assets | ||
Cash and cash equivalents | $ 148,314 | $ 168,386 |
Restricted funds held for financial institutions | 77,601 | 33,443 |
Accounts and other receivables, net of allowance of $332 and $102 | 62,758 | 43,935 |
Income tax receivable | 2,650 | 2,488 |
Prepaid expenses and other current assets | 12,318 | 8,184 |
Total current assets | 303,641 | 256,436 |
Property and equipment, net of accumulated depreciation and amortization of $5,448 and $4,791 | 1,996 | 2,044 |
Capitalized internal-use software development costs, net | 42,711 | 30,888 |
Intangible assets, net | 36,113 | 42,088 |
Goodwill | 129,344 | 129,413 |
Operating lease right-of-use assets | 9,582 | 7,703 |
Deferred tax asset | 165 | 163 |
Other long-term assets | 7,677 | 4,207 |
Total assets | 531,229 | 472,942 |
Current liabilities | ||
Accounts payable | 27,394 | 24,748 |
Accrued liabilities | 16,665 | 12,491 |
Financial institution funds- in transit | 77,601 | 33,443 |
Operating lease liabilities | 1,389 | 1,456 |
Contract liabilities | 1,328 | 2,173 |
Income tax payable | 720 | 122 |
Total current liabilities | 125,097 | 74,433 |
Deferred tax liability | 0 | 3,318 |
Operating leases, net of current portion | 8,703 | 6,463 |
Contract liabilities, net of current portion | 2,637 | 1,713 |
Finance leases and other finance obligations, net of current portion | 750 | 883 |
Total liabilities | 137,187 | 86,810 |
Commitments and contingencies (Note 9) | ||
Stockholders’ equity | ||
Preferred stock, $0.0001 par value per share, 5,000,000 shares authorized as of September 30, 2022 and December 31, 2021, respectively; none issued and outstanding as of September 30, 2022 and December 31, 2021, respectively | 0 | 0 |
Additional paid-in capital | 365,632 | 356,017 |
Accumulated other comprehensive income | (67) | 168 |
Retained earnings | 28,465 | 29,935 |
Total stockholders’ equity | 394,042 | 386,132 |
Total liabilities and stockholders' equity | 531,229 | 472,942 |
Class A Common Stock [Member] | ||
Stockholders’ equity | ||
Common Stock, Value, Issued | 2 | 1 |
Class B Common Stock [Member] | ||
Stockholders’ equity | ||
Common Stock, Value, Issued | $ 10 | $ 11 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Unaudited) (Parenthetical) - USD ($) $ in Thousands | Sep. 30, 2022 | Dec. 31, 2021 |
Allowance for accounts and other receivables | $ 332 | $ 102 |
Accumulated depreciation and amortization for property and equipment | $ 5,448 | $ 4,791 |
Preferred stock, par value | $ 0.0001 | $ 0.0001 |
Preferred stock, shares authorized | 5,000,000 | 5,000,000 |
Preferred stock, shares issued | 0 | 0 |
Preferred stock, shares outstanding | 0 | 0 |
Series A Preferred Stock [Member] | ||
Preferred stock, shares issued | 0 | |
Preferred stock, shares outstanding | 0 | |
Class A Common Stock [Member] | ||
Common stock, par value | $ 0.0001 | $ 0.0001 |
Common stock, shares authorized | 883,950,000 | 883,950,000 |
Common stock, shares issued | 19,653,565 | 17,251,079 |
Common stock, shares outstanding | 19,653,565 | 17,251,079 |
Class B Common Stock [Member] | ||
Common stock, par value | $ 0.0001 | $ 0.0001 |
Common stock, shares authorized | 111,050,000 | 111,050,000 |
Common stock, shares issued | 103,336,337 | 103,388,082 |
Common stock, shares outstanding | 103,336,337 | 103,388,082 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Income Statement [Abstract] | ||||
Revenue | $ 128,152 | $ 101,676 | $ 364,825 | $ 287,393 |
Cost of revenue | 90,295 | 70,512 | 256,286 | 199,754 |
Gross profit | 37,857 | 31,164 | 108,539 | 87,639 |
Operating expenses | ||||
Research and development | 10,350 | 8,818 | 30,925 | 24,469 |
Sales and marketing | 19,048 | 11,314 | 53,089 | 29,041 |
General and administrative | 9,376 | 9,904 | 29,038 | 24,067 |
Total operating expenses | 38,774 | 30,036 | 113,052 | 77,577 |
(Loss) income from operations | (917) | 1,128 | (4,513) | 10,062 |
Other income (loss) | ||||
Interest income (expense) , net | 504 | 11 | 594 | 4 |
Foreign exchange gain (loss) | (28) | (16) | 52 | (8) |
(Loss) income before income taxes | (441) | 1,123 | (3,867) | 10,058 |
(Provision for) benefit from income taxes | (296) | (701) | 2,397 | (5,423) |
Net (loss) income | (737) | 422 | (1,470) | 4,635 |
Undeclared dividends on Series A preferred stock | 0 | 0 | 0 | (2,258) |
Net (loss) income attributable to common stock | $ (737) | $ 422 | $ (1,470) | $ 2,377 |
Net (loss) income per share attributable to common stock | ||||
Basic | $ (0.01) | $ 0 | $ (0.01) | $ 0.02 |
Diluted | $ (0.01) | $ 0 | $ (0.01) | $ 0.02 |
Weighted-average number of shares used to compute net (loss) income per share attributable to common stock | ||||
Basic | 122,740,982 | 118,206,073 | 121,765,509 | 110,272,583 |
Diluted | 122,740,982 | 124,427,777 | 121,765,509 | 116,419,674 |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Comprehensive Income (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Statement of Comprehensive Income [Abstract] | ||||
Net income | $ (737) | $ 422 | $ (1,470) | $ 4,635 |
Other comprehensive income (loss), net of tax | ||||
Foreign currency translation adjustments, net of tax | (86) | 6 | (235) | (42) |
Comprehensive (loss) income | $ (823) | $ 428 | $ (1,705) | $ 4,593 |
Condensed Consolidated Statem_3
Condensed Consolidated Statements of Stockholders' Equity (Unaudited) - USD ($) $ in Thousands | Total | IPO [Member] | Common Shares [Member] | Common Shares [Member] IPO [Member] | Preferred Stock [Member] Series A Preferred Stock [Member] | Preferred Stock [Member] Series A Preferred Stock [Member] IPO [Member] | Additional Paid-In-Capital | Additional Paid-In-Capital IPO [Member] | Treasury Stock | Treasury Stock IPO [Member] | Retained Earnings | Retained Earnings IPO [Member] | Accumulated Other Comprehensive Income |
Beginning balance at Dec. 31, 2020 | $ 84,376 | $ 517 | $ 0 | $ 29,175 | $ (579) | $ 55,047 | $ 216 | ||||||
Beginning balance (in shares) at Dec. 31, 2020 | 103,479,239 | 23,013 | |||||||||||
Stock-based compensation | 563 | 563 | |||||||||||
Repayment of related party loan receivable | 813 | 813 | |||||||||||
Other comprehensive income (loss) | 21 | 21 | |||||||||||
Net (loss) income | 3,638 | 3,638 | |||||||||||
Ending balance at Mar. 31, 2021 | 89,411 | $ 517 | $ 0 | 30,551 | (579) | 58,685 | 237 | ||||||
Ending balance (in shares) at Mar. 31, 2021 | 103,479,239 | 23,013 | |||||||||||
Beginning balance at Dec. 31, 2020 | 84,376 | $ 517 | $ 0 | 29,175 | (579) | 55,047 | 216 | ||||||
Beginning balance (in shares) at Dec. 31, 2020 | 103,479,239 | 23,013 | |||||||||||
Net (loss) income | 4,635 | ||||||||||||
Ending balance at Sep. 30, 2021 | 378,535 | $ 12 | 353,079 | 25,270 | 174 | ||||||||
Ending balance (in shares) at Sep. 30, 2021 | 119,969,268 | ||||||||||||
Beginning balance at Mar. 31, 2021 | 89,411 | $ 517 | $ 0 | 30,551 | (579) | 58,685 | 237 | ||||||
Beginning balance (in shares) at Mar. 31, 2021 | 103,479,239 | 23,013 | |||||||||||
Conversion of common stock to Class B common stock | $ (506) | $ 506 | |||||||||||
Redemption of Series A preferred stock in connection with initial public offering , Value | $ (23,013) | (23,013) | |||||||||||
Redemption of Series A preferred stock in connection with initial public offering , Share | (23,013) | ||||||||||||
Payment of dividends on Series A preferred stock in connection with redemption upon initial public offering | (34,412) | $ (34,412) | |||||||||||
Issuance of warrant | 4,498 | 4,498 | |||||||||||
Retirement of treasury stock in connection with initial public offering | (579) | $ 579 | |||||||||||
Stock-based compensation | 568 | 568 | |||||||||||
Issuance of Class A common stock for stock-based awards, shares | 13,880,950 | ||||||||||||
Issuance of Class A common stock for stock-based awards | 272,634 | $ 1 | 272,633 | ||||||||||
Other comprehensive income (loss) | (69) | (69) | |||||||||||
Net (loss) income | 575 | 575 | |||||||||||
Ending balance at Jun. 30, 2021 | 310,192 | $ 12 | $ 0 | 285,164 | $ 0 | 24,848 | 168 | ||||||
Ending balance (in shares) at Jun. 30, 2021 | 117,360,189 | 0 | |||||||||||
Change in estimate of warrants expected to vest | 304 | 304 | |||||||||||
Stock-based compensation | 754 | 754 | |||||||||||
Issuance of Class A common stock for stock-based awards, shares | 2,601,579 | ||||||||||||
Issuance of Class A common stock for stock-based awards | 66,857 | 66,857 | |||||||||||
Issuance of Class B common stock for stock option exercises, Shares | 7,500 | ||||||||||||
Other comprehensive income (loss) | 6 | 6 | |||||||||||
Net (loss) income | 422 | 422 | |||||||||||
Ending balance at Sep. 30, 2021 | 378,535 | $ 12 | 353,079 | 25,270 | 174 | ||||||||
Ending balance (in shares) at Sep. 30, 2021 | 119,969,268 | ||||||||||||
Beginning balance at Dec. 31, 2021 | 386,132 | $ 12 | 356,017 | 29,935 | 168 | ||||||||
Beginning balance (in shares) at Dec. 31, 2021 | 120,639,161 | ||||||||||||
Stock-based compensation | 1,276 | 1,276 | |||||||||||
Issuance of Class A common stock for stock-based awards, shares | 412,222 | ||||||||||||
Issuance of Class A common stock for stock-based awards | 13 | 13 | |||||||||||
Other comprehensive income (loss) | (45) | (45) | |||||||||||
Net (loss) income | 1,718 | 1,718 | |||||||||||
Ending balance at Mar. 31, 2022 | 389,094 | $ 12 | 357,306 | 31,653 | 123 | ||||||||
Ending balance (in shares) at Mar. 31, 2022 | 121,051,383 | ||||||||||||
Beginning balance at Dec. 31, 2021 | 386,132 | $ 12 | 356,017 | 29,935 | 168 | ||||||||
Beginning balance (in shares) at Dec. 31, 2021 | 120,639,161 | ||||||||||||
Issuance of warrant | 3,478 | 3,478 | |||||||||||
Net (loss) income | (1,470) | ||||||||||||
Ending balance at Sep. 30, 2022 | 394,042 | $ 12 | 365,632 | 28,465 | (67) | ||||||||
Ending balance (in shares) at Sep. 30, 2022 | 122,989,902 | ||||||||||||
Beginning balance at Mar. 31, 2022 | 389,094 | $ 12 | 357,306 | 31,653 | 123 | ||||||||
Beginning balance (in shares) at Mar. 31, 2022 | 121,051,383 | ||||||||||||
Stock-based compensation | 1,344 | 1,344 | |||||||||||
Issuance of Class A common stock for stock-based awards, shares | 1,568,761 | ||||||||||||
Issuance of Class A common stock for stock-based awards | 289 | 289 | |||||||||||
Other comprehensive income (loss) | (104) | (104) | |||||||||||
Net (loss) income | (2,451) | (2,451) | |||||||||||
Ending balance at Jun. 30, 2022 | 388,172 | $ 12 | 358,939 | 29,202 | 19 | ||||||||
Ending balance (in shares) at Jun. 30, 2022 | 122,620,144 | ||||||||||||
Change in estimate of warrants expected to vest | 46 | 46 | |||||||||||
Stock-based compensation | 2,002 | 2,002 | |||||||||||
Issuance of Class A common stock for stock-based awards, shares | 369,758 | ||||||||||||
Issuance of Class A common stock for stock-based awards | $ 1,167 | $ 1,167 | |||||||||||
Other comprehensive income (loss) | (86) | (86) | |||||||||||
Net (loss) income | (737) | (737) | |||||||||||
Ending balance at Sep. 30, 2022 | $ 394,042 | $ 12 | $ 365,632 | $ 28,465 | $ (67) | ||||||||
Ending balance (in shares) at Sep. 30, 2022 | 122,989,902 |
Condensed Consolidated Statem_4
Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2022 | Sep. 30, 2021 | |
Cash flows from operating activities | ||
Net (loss) income | $ (1,470) | $ 4,635 |
Adjustments to reconcile net income to net cash provided by operating activities | ||
Depreciation and amortization | 17,518 | 8,587 |
Deferred income taxes | (3,331) | 2,691 |
Stock-based compensation | 4,622 | 1,885 |
Non-cash lease expense | 1,703 | 2,131 |
Amortization of contract asset | 1,347 | 423 |
Provision for credit losses | 219 | 0 |
Change in operating assets and liabilities | ||
Accounts and other receivables | (19,143) | (7,814) |
Prepaid expenses and other current and long-term assets | (854) | 167 |
Accounts payable | 2,975 | 7,842 |
Accrued liabilities | 2,390 | 149 |
Operating lease liabilities | (1,398) | (2,071) |
Contract liabilities | 80 | 383 |
Income taxes receivable, net of payable | 485 | 349 |
Net cash provided by operating activities | 5,143 | 19,357 |
Cash flows from investing activities | ||
Business combinations, net of cash and restricted cash acquired | 0 | (57,120) |
Other intangible assets acquired | (248) | 0 |
Purchases of property and equipment | (1,163) | (825) |
Capitalized internal-use software development costs | (22,257) | (13,473) |
Net cash used in investing activities | (23,668) | (71,418) |
Cash flows from financing activities | ||
Proceeds from initial public offering, net of underwriter's discounts and commissions | 0 | 224,595 |
Proceeds from private placement | 0 | 50,000 |
Proceeds from repayment of related party loan | 0 | 813 |
Proceeds from exercise of stock-based awards | 1,469 | 0 |
Financial institution funds in-transit | 44,158 | 6,612 |
Payments of deferred offering costs | (1,961) | |
Payments on other financing obligations | 2,486 | (1,482) |
Payments on finance leases | (201) | (204) |
Net cash provided by financing activities | 42,940 | 220,948 |
Foreign currency effect on cash, cash equivalents and restricted cash | (329) | 24 |
Net increase in cash, cash equivalents and restricted cash | 24,086 | 168,911 |
Cash, cash equivalents and restricted cash | ||
Beginning of period | 201,829 | 46,666 |
End of period | 225,915 | 215,577 |
Supplemental disclosure of cash flow information: | ||
Cash paid for income taxes, net of refunds | 421 | 2,308 |
Non-cash investing activities: | ||
Property and equipment purchases in accounts payable | 0 | 147 |
Business acquisition liability in accrued liabilities and finance leases and other finance obligations, net of current portion | 0 | 2,186 |
Non-cash financing activities: | ||
Prepaid insurance funded through short-term borrowings | 4,425 | 5,756 |
Issuance of warrant and change in estimate of warrants expected to vest | 3,524 | 4,802 |
Series A Preferred Stock [Member] | ||
Cash flows from financing activities | ||
Redemption of Series A preferred stock | 0 | (23,013) |
Payment of dividends on Series A preferred stock | $ 0 | $ (34,412) |
Class A Common Stock [Member] | ||
Non-cash investing activities: | ||
Fair value of Class A common stock issued for acquisitions | 0 | 66,857 |
Cash and Cash Equivalents [Member] | ||
Cash, cash equivalents and restricted cash | ||
End of period | $ 148,314 | $ 177,506 |
Restricted funds [Member] | ||
Cash, cash equivalents and restricted cash | ||
End of period | $ 77,601 | $ 38,071 |
Organization and Description of
Organization and Description of Business | 9 Months Ended |
Sep. 30, 2022 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Organization and Description of Business | 1. Organization and Description of Business Description of Business Paymentus Holdings, Inc. and its wholly owned subsidiaries (“Paymentus” or the "Company”) provides electronic bill presentment and payment services, enterprise customer communication and self-service revenue management to billers through a Software-as-a-Service (“SaaS”), secure, omni-channel technology platform. The platform seamlessly integrates into a biller’s core financial and operating systems to provide flexible and secure access to payment processing of credit cards, debit cards, eChecks and digital wallets across a significant number of channels including online, mobile, IVR, call center, chatbot and voice-based assistants. Paymentus was incorporated in the state of Delaware on September 2, 2011 with office locations in Charlotte, North Carolina, Richmond Hill, Ontario (Canada), Blacksburg, Virginia, and Delhi and Bangalore (India). On or about September 1, 2022, the Company's headquarters were moved to Charlotte, North Carolina. The Company expects to reestablish its headquarters in or around the Seattle, Washington area in 2023. Initial Public Offering and Private Placement In May 2021, the Company completed its initial public offering (“IPO”), in which the Company issued and sold 11,500,000 shares of its Class A common stock at $ 21.00 per share, including 1,500,000 shares issued upon the exercise of the underwriters’ option to purchase additional shares. The Company received net proceeds of $ 224.6 million after deducting underwriting discounts and commissions of $ 16.9 million. The Company incurred direct offering expenses of $ 2.0 million. In connection with the IPO: • all 103,479,239 shares of the Company’s outstanding common stock automatically converted into an equivalent number of shares of Class B common stock on a one-to-one basis; and • entities affiliated with Accel-KKR purchased 2,380,950 shares of the Company’s Class A common stock at $ 21.00 per share in a concurrent private placement that closed immediately subsequent to the closing of the IPO. The Company received aggregate proceeds of $ 50.0 million in this concurrent private placement and did not pay underwriting discounts or commissions with respect to the shares of Class A common stock that were sold in the private placement. |
Basis of Presentation and Summa
Basis of Presentation and Summary of Significant Accounting Policies | 9 Months Ended |
Sep. 30, 2022 | |
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 interim condensed consolidated financial statements and related notes have been prepared in accordance with accounting principles generally accepted in the United States (“GAAP”) and applicable rules and regulations of the United States Securities and Exchange Commission (the “SEC”) regarding interim financial reporting. Accordingly, they do not include all disclosures normally required in annual consolidated financial statements prepared in accordance with GAAP. Therefore, these unaudited condensed consolidated financial statements and related notes should be read in conjunction with the audited consolidated financial statements and the related notes included in the Company's Form 10-K for the year ended December 31, 2021 filed with the SEC on March 3, 2022 (the "2021 Form 10-K"). These unaudited interim condensed consolidated financial statements have been prepared on the same basis as the annual financial statements and reflect all adjustments, which include only normal recurring adjustments necessary for the fair statement of the Company’s financial position, results of operations, comprehensive income, changes in stockholders' equity and cash flows for the periods presented. The results of operations for the three and nine months ended September 30, 2022 and 2021 are not necessarily indicative of the results to be expected for the full year or any other future interim or annual period. Stock Split On May 10, 2021, the Company effected a 5 -for-1 forward stock split of its common stock. In connection with the forward stock split, each issued and outstanding share of common stock, automatically and without action on the part of the stockholders, became five shares of common stock. The par value per share of common stock was not adjusted. All share, per share and related information presented in the unaudited interim condensed consolidated financial statements and accompanying notes have been retroactively adjusted, where applicable, to reflect the impact of the stock split. Principles of Consolidation The unaudited interim condensed consolidated financial statements include the accounts of the Company and its wholly owned subsidiaries. All intercompany accounts and balances have been eliminated upon consolidation. Segment Information Operating segments are defined as components of an enterprise for which separate financial information is available and evaluated regularly by the chief operating decision maker (“CODM”) in deciding how to make operating decisions, allocate resources and assess performance. The Company has three operating segments based on geography. The United States segment represents the vast majority of the Company’s consolidated net sales and gross profit. The additional two operating segments, Canada and India, do not meet the quantitative thresholds for separate reporting, either individually or in the aggregate. None of the operating segments qualified for aggregation. The Company’s CODM is its Chief Executive Officer. The CODM evaluates the performance of the Company’s operating segments based on revenue and gross profit. The Company does not analyze discrete segment balance sheet information related to long-term assets. All other financial information is presented on a consolidated basis. For information regarding the Company’s long-lived assets and revenue by geographic area, see Note 15 . Use of Estimates The preparation of consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the amounts reported in the consolidated financial statements and accompanying notes. Such estimates include revenue recognition, the allowance for credit losses, the lives of tangible and intangible assets, the valuation of acquired intangible assets and the recoverability or impairment of intangible assets, including goodwill, internal-use software development costs, valuation of stock warrants issued, stock-based compensation, and accounting for income taxes. The Company bases its estimates on historical experience and also on assumptions that management considers reasonable. The Company assesses these estimates on a regular basis; however, actual results could differ from these estimates. Custodial Accounts The Company has established a relationship with its merchant processors to act as collection and paying agents, whereby a merchant processor receives funds from customers and forwards such funds to the respective Paymentus client, based on the instructions received from the Company. These merchant processors act as custodians of the cash received, and the Company has no legal ownership rights to the funds held in such custodial accounts and does not control the use of these funds. As the Company does not take ownership of the funds, these custodial accounts are not included in the Company’s consolidated balance sheets. The balance of cash in the custodial accounts held by these merchant processors was $ 55.1 million and $ 47.4 million as of September 30, 2022 and December 31, 2021 , respectively. Restricted Funds Held for Financial Institutions and Financial Institution Funds In-Transit Restricted funds held for financial institutions and the corresponding liability of financial institution funds in-transit represent the timing differences arising between the amounts the Company's sponsor bank receives from the sending financial institutions and the amounts disbursed to the recipient financial institutions. The restricted funds held for financial institutions' account is a transaction account maintained at the Company’s sponsor bank for clearing payments from financial institutions (as defined by the U.S. Treasury’s Financial Crimes Enforcement Network) to other financial institutions. Restricted funds held for financial institutions represent restricted cash that, based upon the Company's intent, are restricted solely for satisfying the corresponding obligations to send funds to the various financial institutions. Concentration of Credit Risk Financial instruments that potentially subject the Company to credit risk primarily consist of cash, cash equivalents, and accounts receivable. The Company maintains its cash and cash equivalents with high-quality financial institutions with investment-grade ratings. For accounts receivable, the Company is exposed to credit risk in the event of nonpayment by customers to the extent of the amounts recorded in the consolidated balance sheets. No customer accounted for more than 10 % of revenue for either of th e three or nine months ended September 30, 2022 and 2021 . No customer accounted for more than 10 % of accounts receivable as of September 30, 2022 , while one customer accounted for more than 10 % of accounts receivable as of December 31, 2021 . Summary of Significant Accounting Policies The Company’s significant accounting policies are discussed in Note 2, “Basis of Presentation and Summary of Significant Accounting Policies,” in the Notes to Consolidated Financial Statements as of December 31, 2021 and 2020 and for the years ended December 31, 2021 and 2020 included in the 2021 Form 10-K. There have been no significant changes to these policies during the three and nine months ended September 30, 2022 . Accounting Pronouncements The Company is provided the option to adopt new or revised accounting guidance as an “emerging growth company” under the Jumpstart Our Business Startups Act of 2012 either (1) within the same periods as those otherwise applicable to public business entities, or (2) within the same time periods as non-public business entities, including early adoption when permissible. With the exception of standards the Company elected to early adopt, when permissible, the Company has elected to adopt new or revised accounting guidance within the same time period as non-public business entities, as indicated below. Accounting Pronouncements Not Yet Adopted In October 2021, the FASB issued ASU 2021-08, "Business Combinations (Topic 805): Accounting for Contract Assets and Contract Liabilities from Contracts with Customers" ("ASU 2021-08") . ASU 2021-08 will require companies to apply the definition of a performance obligation under ASU 2014-09 , Revenue from contracts with customers (“Topic 606”) to recognize and measure contract assets and contract liabilities relating to contracts with customers that are acquired in a business combination. Under current U.S. GAAP, an acquirer generally recognizes assets acquired and liabilities assumed in a business combination, including contract assets and contract liabilities arising from revenue contracts with customers, at fair value on the acquisition date. ASU 2021-08 will result in the acquirer recording acquired contract assets and liabilities on the same basis that would have been recorded by the acquiree before the acquisition under ASU Topic 606. ASU 2021-08 is effective for fiscal years beginning after December 15, 2022 for public entities and December 15, 2023 for all other entities, with early adoption permitted. The Company is currently evaluating the impact of this ASU on its condensed consolidated financial statements. |
Revenue, Performance Obligation
Revenue, Performance Obligations and Contract Balances | 9 Months Ended |
Sep. 30, 2022 | |
Revenue from Contract with Customer [Abstract] | |
Revenue, Performance Obligations and Contract Balances | 3. Revenue, Performance Obligations and Contract Balances Disaggregation of Revenue The following table presents a disaggregation of revenue from contracts with customers (in thousands): Three Months Ended September 30, Nine Months Ended September 30, 2022 2021 2022 2021 Payment transaction processing revenue $ 126,373 $ 100,384 $ 359,846 $ 284,029 Other 1,779 1,292 4,979 3,364 Total revenue $ 128,152 $ 101,676 $ 364,825 $ 287,393 Remaining Performance Obligations ASU Topic 606 requires disclosure of the aggregate amount of the transaction price allocated to unsatisfied performance obligations. The purpose of this disclosure is to provide additional information about the amounts and expected timing of revenue to be recognized from the remaining performance obligations in our existing contracts. As of September 30, 2022, the aggregate amount of transaction price allocated to performance obligations that are unsatisfied or partially unsatisfied was $ 4.0 million, of which the Company expects to recognize ove r 80 % within the next four years . The timing of revenue recognition within the next year is largely dependent upon the go-l ive dates of the Company's contracts. As of September 30, 2022 , the Company has contractual rights under its commercial agreements to receive $ 61.0 million of fixed consideration related to the future minimum guarantees through 2026. As permitted, the Company has elected to exclude from this disclosure any variable consideration that meets specified criteria. Accordingly, the total unsatisfied or partially unsatisfied performance obligations related to processing services is significantly higher than the amount disclosed. Contract Balances The contract asset balances at September 30, 2022 and December 31, 2021 were $ 10.1 million and $ 5.6 million, respectively, of which $ 2.7 million and $ 1.7 million was included in prepaid expenses and other current assets and $ 7.4 million and $ 3.9 million was included in other long-term assets in the condensed consolidated balance sheets, respectively. The increase in the contract asset balance was primarily related to the addition of new warrants, see Note 11 for details. During the three months ended September 30, 2022 and 2021, the Company reduced revenue and the related contract assets by $ 0.5 million and $ 0.2 million, respectively and for the nine months ended September 30, 2022 and 2021, revenue and the related contract assets were reduced by $ 1.3 million and $ 0.4 million, respectively. The Company recorded $ 4.0 million and $ 3.9 million of contract liabilities in the condensed consolidated balance sheets as of September 30, 2022 and December 31, 2021 , respectively, which relates to legacy contracts obtained from prior acquisitions associated with the Company’s insignificant other revenue stream and other payments the Company received in advance for services. The change in the contract liabilities is primarily related to timing differences between payment from the customer and the Company’s satisfaction of each performance obligation. Revenue recognized during the three months ended September 30, 2022 and 2021 that was included in the contract liabilities balance at the beginning of each of the periods was $ 0.5 million and $ 0.8 million, respectively. Revenue recognized during the nine months ended September 30, 2022 and 2021 that was included in the contract liabilities balance at the beginning of each respective period was $ 0.6 million and $ 1.5 million, respe ctively. |
Business Combinations
Business Combinations | 9 Months Ended |
Sep. 30, 2022 | |
Business Combinations [Abstract] | |
Business Combinations | 4. Business Combinations PayVeris, LLC On September 1, 2021, the Company completed its acquisition of PayVeris, LLC ("Payveris") by acquiring all outstanding equity interests for a total purchase price of approximately $ 145.5 million, comprised of $ 85.1 million in cash and 2,364,270 shares of the Company's Class A common stock with a fair value of approximately $ 60.4 million. Payveris is a payments processing company for financial institutions. The acquisition is expected to increase the addressable market opportunity for the Company's existing solutions while also enhancing Payveris’ platform with real-time capabilities, enhanced electronic bill presentment and additional payment options for banks, credit unions and financial institutions of all sizes. The acquisition was accounted for as a business combination and, accordingly, the total fair value of purchase consideration was allocated to the tangible and intangible assets acquired and liabilities assumed based on their fair values on the acquisition date. The major classes of assets and liabilities to which the Company has allocated the fair value of purchase consideration were as follows (in thousands): Accounts receivable $ 1,026 Prepaid expenses and other current assets 237 Intangible assets, includes software acquired 38,498 Property and equipment 77 Goodwill 108,950 Restricted funds held for financial institutions 31,459 Financial institution funds in-transit ( 31,459 ) Accounts payable ( 194 ) Accrued liabilities ( 265 ) Deferred revenue ( 2,805 ) Total $ 145,524 The finalization of purchase price allocation did not result in any changes to the preliminary estimate. The Company recorded a measurement period adjustment of $ 8.5 million during the fourth quarter of 2021 to decrease trademarks and increase goodwill related to the refinement of in puts in the acquisition valuation. There were no measurement period adjustments during the three and nine months ended September 30, 2022. The goodwill recognized was primarily attributed to increased synergies that are expected to be achieved from the integration of Payveris and the assembled workforce. The goodwill is deductible for income tax purposes. The fair values and estimated useful lives of the acquired intangible assets by category were as follows (in thousands, except years): Fair Value Useful Life Customer Relationships $ 26,154 8.0 Trademarks 3,993 4.0 Developed Technology 8,102 4.0 Total $ 38,249 Finovera, Inc. On September 2, 2021, the Company completed its acquisition of Finovera by acquiring all outstanding shares for a total purchase price of approximately $ 12.9 million, net of cash acquired, comprised of $ 5.0 million in cash of which $ 0.8 million is being held back by the Company for a period of twenty-four months following the transaction closing date and is recorded in finance leases and other finance obligations, net of current portion in the condensed consolidated balance sheets, and 293,506 shares of the Company's Class A common stock with a fair value of approximately $ 7.9 million. Finovera is a bill aggregation technology provider for financial institutions. The acquisition of Finovera is expected to increase the addressable market opportunity for the Company's biller and financial institution solutions by, among other things, increasing the availability of certain bill data. The acquisition was accounted for as a business combination and, accordingly, the total fair value of purchase consideration was allocated to the tangible and intangible assets acquired and liabilities assumed based on their fair values on the acquisition date. The major classes of assets and liabilities to which the Company has allocated the fair value of purchase consideration were as follows (in thousands): Cash $ 65 Accounts receivable 267 Intangible assets 6,048 Prepaid expenses and other current assets 39 Goodwill 7,266 Accounts payable ( 85 ) Accrued liabilities ( 72 ) Deferred taxes ( 588 ) Total $ 12,940 The finalization of the purchase price allocation did not result in any changes to the preliminary estimate. There were no measurement period adjustments during the three and nine months ended September 30, 2022. The goodwill recognized was primarily attributed to increased synergies that are expected to be achieved from the integration of Finovera and the assembled workforce. The goodwill is not deductible for income tax purposes. The fair values and estimated useful lives of the acquired intangible assets by category were as follows (in thousands, except years): Fair Value Useful Life Developed Technology $ 5,155 4.0 Customer Relationships 893 2.0 Total $ 6,048 The revenue and expenses of the acquired businesses have been included in the Company's condensed consolidated financial results since the acquisition date. Revenues and expenses related to these acquisitions and pro forma results of operations have not been presented for the three and nine months ended September 30, 2021 because the effects of these acquisitions was not material to the Company's overall operations. The Company incurred costs related to these acquisitions of approximately $ 1.7 million for the year ended December 31, 2021. All acquisition related costs were expensed as incurred and have been recorded in general and administrative expenses in the condensed consolidated statements of operations. |
Property and Equipment, Net
Property and Equipment, Net | 9 Months Ended |
Sep. 30, 2022 | |
Property, Plant and Equipment [Abstract] | |
Property and Equipment, Net | 5. Property and Equipment, Net Property and equipment, net consisted of the following (in thousands): September 30, December 31, 2022 2021 Computer equipment $ 5,366 $ 4,934 Furniture and fixtures 1,661 1,456 Leasehold improvements 417 445 Total property and equipment 7,444 6,835 Less: Accumulated depreciation and amortization ( 5,448 ) ( 4,791 ) Property and equipment, net $ 1,996 $ 2,044 Depreciation and amortization expense recorded for property and equipment was $ 0.3 million and $ 0.3 million for the three months ended September 30, 2022 and 2021 , respectively, and $ 1.0 million and $ 0.8 millio n for the nine months ended September 30, 2022 and 2021, respectively. |
Goodwill, Internal-use Software
Goodwill, Internal-use Software Development Costs and Intangible Assets | 9 Months Ended |
Sep. 30, 2022 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill, Internal-use Software Development Costs and Intangible Assets | 6. Goodwill, Internal-use Software Development Costs and Intangible Assets Goodwill The changes in the carrying amount of goodwill by reporting unit were as follows (in thousands): United Other Total Balance as of December 31, 2021 $ 128,519 $ 894 $ 129,413 Foreign currency translation adjustments — ( 69 ) ( 69 ) Balance as of September 30, 2022 $ 128,519 $ 825 $ 129,344 Internal-use Software Development Costs The Company capitalizes qualifying internal-use software development costs related to its platform. The costs consist of personnel costs (including related benefits) that are incurred during the application development stage, as well as implementation costs incurred to fulfill our contracts with customers as they (1) relate directly to the contract, (2) are expected to generate resources that will be used to satisfy the performance obligation under the contract, and (3) are expected to be recovered through revenues generated under the contract. Capitalization of costs begins when two criteria are met: (1) the preliminary project stage is completed, and (2) it is probable that the software will be completed and used for its intended function. Capitalization ceases when the software is substantially complete and ready for its intended use, including the completion of all significant testing. Costs related to preliminary project activities and post-implementation operating activities are expensed as incurred. During the three months ended September 30, 2022 and 2021, the Company capitalized $ 7.8 million and $ 4.8 million in software development costs, respectively, and during the nine months ended September 30, 2022 and 2021, the Company capitalized $ 22.3 million and $ 13.5 million in software development costs, respectively. Capitalized costs are amortized over the estimated useful life of the software, which management estimated to be a range of three to five years , and are recorded on a straight-line basis, which represents the manner in which the expected benefit will be derived. Amortization expense is recorded in cost of revenue and operating expenses in the condensed consolidated statement of operations aligned with the internal organizations that are the primary beneficiaries of such assets. During the three months ended September 30, 2022 and 2021, the Company recorded $ 2.4 million and $ 1.3 million of amortization expense in cost of revenue, and $ 1.4 million and $ 1.2 million of amortization expense in operating expenses, respectively. During the nine months ended September 30, 2022 and 2021, the Company recorded $ 6.1 million and $ 3.5 million of amortization expense in cost of revenue, and $ 4.3 million and $ 3.3 million of amortization expense in operating expenses, respectively. Intangible Assets Intangible assets, net consisted of the following (in thousands): September 30, 2022 Gross Accumulated Net Weighted- Technology $ 20,797 $ ( 11,131 ) $ 9,666 4.0 License 2,479 ( 2,479 ) — — Customer relationship 33,781 ( 10,759 ) 23,022 8.0 Software 1,109 ( 596 ) 513 3.0 Trademark 4,193 ( 1,281 ) 2,912 4.0 Total $ 62,359 $ ( 26,246 ) $ 36,113 December 31, 2021 Gross Accumulated Net Weighted- Technology $ 20,837 $ ( 8,655 ) $ 12,182 4.0 License 2,652 ( 2,652 ) — — Customer relationship 33,830 ( 8,021 ) 25,809 8.0 Software 893 ( 456 ) 437 3.0 Trademark 4,193 ( 533 ) 3,660 4.0 Total $ 62,405 $ ( 20,317 ) $ 42,088 Amortization expense of intangible assets was $ 2.0 million and $ 1.0 million for the three months ended September 30, 2022 and 2021, respectively, and $ 6.2 million and $ 1.1 million for the nine months ended September 30, 2022 and 2021, respectively. As of September 30, 2022, future expected amortization expense is as follows (in thousands): Years Ending December 31, 2022 (remaining three months) $ 2,066 2023 8,082 2024 7,807 2025 6,169 2026 3,283 Thereafter 8,706 Total future amortization expense $ 36,113 |
Leases
Leases | 9 Months Ended |
Sep. 30, 2022 | |
Leases [Abstract] | |
Leases | 7. Leases The Company enters into operating and finance leases, primarily related to rental of office space, equipment and data centers. Both operating and finance leases have remaining lease terms which range from less than one year to ten year s, and often include one or more renewal or termination options. These options are not included in the determination of the lease term at commencement unless it is reasonably certain that the Company will exercise the option. The components of lease cost were as follows (in thousands): Three Months Ended September 30, Nine Months Ended September 30, 2022 2021 2022 2021 Operating lease cost $ 659 $ 893 $ 1,901 $ 2,329 Finance lease cost Depreciation expense 67 68 203 204 Interest on finance lease liabilities 2 4 7 13 Total finance lease cost 69 72 210 217 Short-term lease cost 181 424 807 592 Total lease cost $ 909 $ 1,389 $ 2,918 $ 3,138 Supplemental cash flow information related to leases was as follows (in thousands): Three Months Ended September 30, Nine Months Ended September 30, 2022 2021 2022 2021 Cash paid for amounts included in the measurement of lease liabilities Operating cash flows for operating leases $ 521 $ 546 $ 1,598 $ 2,236 Operating cash flows for finance leases 2 4 7 13 Financing cash flows for finance leases 66 68 201 204 Right-of-use assets obtained in exchange of operating lease obligations -- -- 4,151 2,638 The total remaining lease payments under non-cancelable operating and finance leases as of September 30, 2022 were as follows (in thousands): Years Ending December 31, Operating Leases Finance Leases 2022 (remaining three months) $ 498 $ 64 2023 1,748 102 2024 1,721 — 2025 1,736 — 2026 1,758 — Thereafter 3,690 — Total minimum lease payments including interest $ 11,151 $ 166 Less imputed interest ( 1,059 ) ( 1 ) Total lease liabilities $ 10,092 $ 165 |
Accrued Liabilities
Accrued Liabilities | 9 Months Ended |
Sep. 30, 2022 | |
Accrued Liabilities, Current [Abstract] | |
Accrued Liabilities | 8. Accrued Liabilities Accrued liabilities consisted of the following (in thousands): September 30, December 31, 2022 2021 Payroll and employee-related expenses $ 9,402 $ 8,093 Finance leases and other financing obligations 4,252 2,382 Other accrued liabilities 3,011 2,016 Total $ 16,665 $ 12,491 Finance leases and other financing obligations includes the current portion of finance leases related to the acquisition of computer equipment and short-term insurance premium financing arrangements. |
Commitments and Contingencies
Commitments and Contingencies | 9 Months Ended |
Sep. 30, 2022 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | 9. Commitments and Contingencies Other Commitments The Company has entered into certain non-cancellable agreements for software and marketing services that specify all significant terms, including fixed or minimum services to be used, pricing provisions and the approximate timing of the transaction. Obligations under contracts that are cancellable or with remaining terms of 12 months or less are not included. There have been no material changes to the Company's contractual obligations or commitments outside of the ordinary course of business as compared to those described in the 2021 Form 10-K. The Company sponsors a 401(k) defined contribution plan covering all eligible U.S. employees. Contributions to the 401(k) plan are discretionary. For the three and nine months ended September 30, 2022, the Company made $ 0.2 million and $ 0.6 milli on of matching contributions to the 401(k) plan, respectively. The Company did no t make any matching contributions to the 401(k) plan for the three and nine months ended September 30, 2021. Legal Matters The Company is involved from time to time in various claims and legal proceedings arising in the ordinary course of business. While it is not feasible to predict or determine the ultimate outcome of these matters, the Company believes that none of its current claims and legal proceedings will have a material adverse effect on its financial position, results of operations, or cash flows as of and for the three and nine months ended September 30, 2022. Indemnification The Company enters into indemnification provisions under agreements with other parties in the ordinary course of business, including business partners, investors, contractors, customers, and the Company’s officers, directors, and certain employees. The Company has agreed to indemnify and defend the indemnified party claims and related losses suffered or incurred by the indemnified party from actual or threatened third-party claims due to the Company’s activities or non-compliance with obligations or representations made by the Company. The Company seeks to limit, or cap, its indemnification exposure in its commercial and other contracts. It is not possible to determine the maximum potential loss under these indemnification provisions due to the Company’s limited history of prior indemnification claims and the unique facts and circumstances involved in each particular provision. |
Related Party Transactions
Related Party Transactions | 9 Months Ended |
Sep. 30, 2022 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | 10. Related Party Transactions There have been no material changes to the Company's related party transactions as previously disclosed in the Company's 2021 Form 10-K. |
Equity
Equity | 9 Months Ended |
Sep. 30, 2022 | |
Equity [Abstract] | |
Equity | 11. Equity Preferred Stock The Company’s amended and restated certificate of incorporation authorizes the issuance of 5,000,000 shares of undesignated preferred stock with a par value of $ 0.0001 per share with rights and preferences, including voting rights, designated from time to time by the board of directors. There were no shares of preferred stock issued or outstanding as of September 30, 2022. Common Stock The Company has two classes of common stock: Class A common stock and Class B common stock. The Company’s amended and restated certificate of incorporation authorizes the issuance of 883,950,000 shares of Class A common stock and 111,050,000 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 and conversion. 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 $ 0.0001 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. Shares of Class B common stock may be converted to Class A common stock at any time at the option of the stockholder. Shares of Class B common stock automatically convert to Class A common stock upon the following: (i) sale or transfer of such share of Class B common stock; (ii) the death of the Class B common stockholder (or nine months after the date of death if the stockholder is one of the Company’s founders); and (iii) on the first trading day on or after the date on which the outstanding shares of Class B common stock represent less than 10% of the then outstanding Class A and Class B common stock. Following the conversion of all outstanding shares of Class B common stock into Class A common stock, no further shares of Class B common stock will be issued. Series A Preferred Stock Upon completion of the IPO, the Company used approximately $ 57.4 million of the net proceeds to redeem all of the issued and outstanding shares of Series A preferred stock (including accrued dividends of $ 34.4 million). As of September 30, 2022 , there were no shares of Series A preferred stock issued and outstanding. Warrant On May 13, 2021, the Company entered into a warrant agreement with JPMC Strategic Investments I Corporation ("JPMC"), an affiliate of J.P. Morgan Securities LLC, an underwriter in the IPO, pursuant to which the Company issued a warrant to JPMC for up to 509,370 shares of Class A common stock upon completion of the IPO at an exercise price of $ 18.38 per share. Upon completion of the IPO, 382,027 of the warrant shares had vested and are therefore, exercisable. The vesting of the remaining 127,343 shares of Class A common stock underlying the warrant will be subject to the achievement of certain commercial milestones through December 31, 2025 pursuant to a related commercial agreement with JPMorgan Chase Bank, National Association ("JPM Chase"), an affiliate of JPMC. This commercial agreement was amended in August 2022, and the achievement of certain commercial milestones was extended through December 31, 2026 and minimum revenue commitments were set for each of the calendar years through 2026. Consistent with classification guidance in ASU Topic 606, the Company accounts for the consideration payable in the form of warrants to a customer as a reduction of the transaction price and, therefore, of revenue as the revenue is earned. The warrant fair value was determined using the Black-Scholes pricing model in accordance with ASC 718, Compensation-Stock Compensation . On August 29, 2022, the Company entered into a warrant agreement with JPMC, in connection with an amendment to the Company's existing commercial agreement with JPM Chase, pursuant to which the Company issued a warrant to JPMC for up to 684,510 shares of Class A common stock at an exercise price of $ 10.10 per share. Upon signing of the warrant agreement, 171,128 of the warrant shares had vested and are therefore, exercisable. The vesting of the remaining 513,382 shares of Class A common stock underlying the warrant will be subject to the achievement of certain commercial milestones through December 31, 2026 pursuant to the commercial agreement, as amended. Consistent with classification guidance in ASU Topic 606, the Company accounts for the consideration payable in the form of warrants to a customer as a reduction of the transaction price and, therefore, of revenue as the revenue is earned. The warrant fair value was determined using the Black-Scholes pricing model in accordance with ASC 718, Compensation-Stock Compensation . During 2021, the Company updated the May 2021 warrant value recognized based on the expectation that the probability of achievement of certain milestones would be achieved. The increase was recorded using the fair value determined at the time of grant multiplied by the estimated number of remaining warrants expected to vest. This increase was recorded as additional paid-in capital and as a contract asset included in prepaid expenses and other current assets and other long-term assets in the condensed consolidated balance sheets. The increase made to the valuation in the three and nine months ended September 30, 2022 was not material. As of September 30, 202 2, an aggregate of 569,072 warrants had vested and were exercisable under the outstanding warrant agreements. |
Stock-Based Compensation
Stock-Based Compensation | 9 Months Ended |
Sep. 30, 2022 | |
Share-Based Payment Arrangement [Abstract] | |
Stock-Based Compensation | 12. Stock-Based Compensation In May 2021, the Company’s board of directors adopted, and its stockholders approved, the 2021 Equity Incentive Plan (the “2021 Plan”), which became effective in connection with the IPO. The 2021 Plan provides for the grant of incentive stock options, within the meaning of Section 422 of the Internal Revenue Code, to the Company's employees and any of its parent or subsidiary corporations’ employees, and for the grant of non-statutory stock options, restricted stock, restricted stock units, stock appreciation rights, and performance awards to the Company’s employees, directors and consultants and any of its parent or subsidiary corporations’ employees and consultants. A total of 10,459,000 shares of the Company’s Class A common stock have been reserved for issuance under the 2021 Plan in addition to (i) an annual increase of 4 % of the outstanding shares of the Company's common stock, with Class A and Class B common stock taken together, on the first day of each fiscal year ( the "Evergreen Addition") and (ii) upon the expiration, forfeiture, cancellation, or reacquisition of any shares of Class B common stock underlying outstanding stock awards granted under the 2012 Equity Incentive Plan, an equal number of shares of Class A common stock, such number of shares not to exceed 7,563,990 . On January 1, 2022, pursuant to the Evergreen Addition, 4,825,566 s hares of Class A common stock were added to the 2021 Plan issuance reserve. At September 30, 2022 , there were 14,075,898 remaining shares available for the Company to grant under the 2021 Plan. Stock Options A summary of the Company’s option activity during the nine months ended September 30, 2022 was as follows (in thousands, except share and per share amounts): Weighted- Weighted- Average Average Remaining Aggregate Options Exercise Price Contractual Intrinsic Outstanding per Share Life (years) Value Outstanding at December 31, 2021 6,849,910 $ 5.05 4.98 $ 205,010 Options granted — Options exercised ( 2,282,645 ) 0.64 Options forfeited ( 210,104 ) 8.66 Outstanding at September 30, 2022 4,357,161 $ 7.19 5.88 $ 11,041 Exercisable at September 30, 2022 3,294,854 $ 6.72 5.61 $ 9,900 There were no options granted during the three or nine months ended September 30, 2022. There were no options granted during the three months ended September 30, 2021. The weighted average grant date fair value of options granted during the nine months ended September 30, 2021 was $ 7.21 . Aggregate intrinsic value represents the difference between the exercise price of the options and the fair value of the Company’s common stock. There were no options granted during the three months ended September 30, 2021. The fair value of options granted during the nine months ended September 30, 2021 was estimated using the Black-Scholes option-pricing model with the following weighted-average assumptions: Three Months Ended September 30, Nine Months Ended September 30, 2021 2021 Dividend yield 0.0 % Risk-free interest rate 0.3 % - 0.8 % Expected term (in years) 5 Expected volatility 38.0 % Restricted Stock Units (“RSUs”) A summary of the Company’s RSU activity during the nine months ended September 30, 2022 was as follows: Weighted- Average Number of Grant Date RSU's Outstanding Fair Value Awarded and unvested at December 31, 2021 513,547 $ 25.93 Awards granted 1,142,491 15.37 Awards vested ( 68,096 ) 26.08 Awards forfeited ( 150,076 ) 17.80 Awarded and unvested at September 30, 2022 1,437,866 $ 18.38 The fair value of RSU grants is determined based upon the market closing price of the Company's Class A common stock on the date of grant. RSUs vest over the requisite service period, which ranges between four years and five years from the date of grant, subject to continued employment for employees and provision of services for nonemployees. Stock-based compensation expense included in the condensed consolidated statements of operations was as follows (in thousands): Three Months Ended September 30, Nine Months Ended September 30, 2022 2021 2022 2021 Cost of revenue $ — $ — $ — $ — Operating expenses Research and development 507 110 1,080 141 Sales and marketing 612 56 1,062 92 General and administrative 883 588 2,480 1,652 Total stock-based compensation $ 2,002 $ 754 $ 4,622 $ 1,885 At September 30, 2022, t here was $ 2.8 million of total unrecognized compensation cost related to unvested stock options granted under the 2012 Equity Incentive Plan and the 2021 Plan, which is expected to be recognized over a remaining weighted-average period of 1.6 years. At September 30, 2022 , there was $ 24.3 million of total unrecognized compensation cost related to unvested RSUs granted under the 2021 Plan, which is expected to be recognized over a remaining weighted-average period of 3.7 year s. |
Income Taxes
Income Taxes | 9 Months Ended |
Sep. 30, 2022 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | 13. Income Taxes The Company computes its tax provision for interim periods by applying the estimated annual effective tax rate to year-to-date income from recurring operations and adjusting for discrete items arising in that quarter. However, if the Company is unable to make a reliable estimate of its annual effective tax rate, then the actual effective tax rate for the year-to-date period may be the best estimate. For the three and nine months ended September 30, 2021, the Company determined that its annual effective tax rate approach would provide a reliable estimate and therefore used its historical method to calculate its tax provision. However, for the three and nine months ended September 30, 2022, the Company used a discrete effective tax rate method as it was determined that the effective tax rate determined using the forecast of ordinary income or loss does not reasonably estimate the effective tax rate to be applied to year-to-date pre-tax (loss) income, and any small changes would result in significant changes in the estimated annual effective tax rate. The Company’s effective tax rate for the three and nine months ended September 30, 2022 i s ( 65.2 %) and 62.3 %, respectively. For the three and nine months ended September 30, 2021, the effective tax rate was 58.0 % and 53.9 %, respectively. The differe nce between the Company’s effective tax rate and the U.S. federal statutory rate of 21 % in the above periods was primarily the result of excess tax benefits on stock-based compensation, state taxes, foreign income taxed at different rates and permanent tax adjustments related to nondeductible executive compensation. As of September 30, 2022, the Company recognized sizable tax deductions for stock-based compensation. These permanent benefits are creating net operating losses that have resulted in a net deferred tax asset. These permanent tax benefits have also created a cumulative history of losses such that the Company has determined that the resulting net deferred tax asset is not more likely than not to be realized. The Company began recording a valuation allowance during the three months ended June 30, 2022 against its U.S. net deferred tax assets. As of September 30, 2022, the Company's valuation allowance was $ 6.7 million. |
Net (Loss) Income per Share Att
Net (Loss) Income per Share Attributable to Common Stock | 9 Months Ended |
Sep. 30, 2022 | |
Earnings Per Share [Abstract] | |
Net (Loss) Income Per Share Attributable to Common Stock | 14. Net (Loss) Income per Share Attributable to Common Stock Basic net (loss) income per share attributable to common stockholders is computed by deducting the undeclared dividends on the Series A preferred stock from net (loss) income to arrive at net (loss) income attributable to common stock and dividing the net (loss) income attributable to common stockholders by the weighted-average number of shares of common stock outstanding during the period. Diluted net (loss) income per share attributable to common stock is computed by giving effect to all potentially dilutive common stock equivalents to the extent they are dilutive. The dilutive effect of outstanding options, RSUs and warrants is reflected in diluted net (loss) income per share attributable to common stock by application of the treasury stock method. The calculation of diluted net (loss) income per share attributable to common stock excludes all anti-dilutive common shares. The rights of the holders of Class A and Class B common stock are identical, except with respect to voting and conversion. As the liquidation and dividend rights are identical, the undistributed earnings are allocated on a proportionate basis to each class of common stock and the resulting basic and diluted net (loss) income per share attributable to common stockholders are, therefore, the same for both Class A and Class B common stock on both an individual and combined basis. The following table sets forth the computation of basic and diluted net (loss) income per share attributable to common stock (in thousands except share and per share data): Three Months Ended September 30, Nine Months Ended September 30, 2022 2021 2022 2021 Numerator: Net (loss) income $ ( 737 ) $ 422 $ ( 1,470 ) $ 4,635 Undeclared dividends on Series A preferred stock — - - — ( 2,258 ) Net (loss) income attributable to common stock $ ( 737 ) $ 422 $ ( 1,470 ) $ 2,377 Denominator: Weighted-average shares of common stock - basic 122,740,982 118,206,073 121,765,509 110,272,583 Dilutive effect of stock options to purchase common stock — 6,076,424 — 6,077,748 Dilutive effect of RSUs — 11,180 — 4,398 Dilutive effect of warrants — 134,100 — 64,945 Weighted-average shares of common stock - diluted 122,740,982 124,427,777 121,765,509 116,419,674 Net (loss) income per share attributable to common stock Basic $ ( 0.01 ) $ — $ ( 0.01 ) $ 0.02 Diluted $ ( 0.01 ) $ — $ ( 0.01 ) $ 0.02 The following table summarizes the securities that were excluded from the computation of diluted net income per share attributable to common stock as their inclusion would have been antidilutive: Three Months Ended September 30, Nine Months Ended September 30, 2022 2021 2022 2021 Stock options to purchase common stock 4,705,323 — 5,693,398 — RSUs 1,396,810 — 860,848 — Warrants 428,803 — 418,630 — |
Geographic Information
Geographic Information | 9 Months Ended |
Sep. 30, 2022 | |
Segment Reporting [Abstract] | |
Geographic Information | 15. Geographic Information Revenue by geographic area, based on the location of the Company’s users, was as follows (in thousands): Three Months Ended September 30, Nine Months Ended September 30, 2022 2021 2022 2021 United States $ 125,655 $ 99,544 $ 357,088 $ 281,309 Other 2,497 2,132 7,737 6,084 Total $ 128,152 $ 101,676 $ 364,825 $ 287,393 Long-lived assets, comprising property and equipment assets, by geographic area were as follows (in thousands): September 30, December 31, 2022 2021 United States $ 796 $ 588 Other 1,200 1,456 Total $ 1,996 $ 2,044 |
Basis of Presentation and Sum_2
Basis of Presentation and Summary of Significant Accounting Policies (Policies) | 9 Months Ended |
Sep. 30, 2022 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation The accompanying unaudited interim condensed consolidated financial statements and related notes have been prepared in accordance with accounting principles generally accepted in the United States (“GAAP”) and applicable rules and regulations of the United States Securities and Exchange Commission (the “SEC”) regarding interim financial reporting. Accordingly, they do not include all disclosures normally required in annual consolidated financial statements prepared in accordance with GAAP. Therefore, these unaudited condensed consolidated financial statements and related notes should be read in conjunction with the audited consolidated financial statements and the related notes included in the Company's Form 10-K for the year ended December 31, 2021 filed with the SEC on March 3, 2022 (the "2021 Form 10-K"). These unaudited interim condensed consolidated financial statements have been prepared on the same basis as the annual financial statements and reflect all adjustments, which include only normal recurring adjustments necessary for the fair statement of the Company’s financial position, results of operations, comprehensive income, changes in stockholders' equity and cash flows for the periods presented. The results of operations for the three and nine months ended September 30, 2022 and 2021 are not necessarily indicative of the results to be expected for the full year or any other future interim or annual period. |
Stock Split | Stock Split On May 10, 2021, the Company effected a 5 -for-1 forward stock split of its common stock. In connection with the forward stock split, each issued and outstanding share of common stock, automatically and without action on the part of the stockholders, became five shares of common stock. The par value per share of common stock was not adjusted. All share, per share and related information presented in the unaudited interim condensed consolidated financial statements and accompanying notes have been retroactively adjusted, where applicable, to reflect the impact of the stock split. |
Principles of Consolidation | Principles of Consolidation The unaudited interim condensed consolidated financial statements include the accounts of the Company and its wholly owned subsidiaries. All intercompany accounts and balances have been eliminated upon consolidation. |
Segment Information | Segment Information Operating segments are defined as components of an enterprise for which separate financial information is available and evaluated regularly by the chief operating decision maker (“CODM”) in deciding how to make operating decisions, allocate resources and assess performance. The Company has three operating segments based on geography. The United States segment represents the vast majority of the Company’s consolidated net sales and gross profit. The additional two operating segments, Canada and India, do not meet the quantitative thresholds for separate reporting, either individually or in the aggregate. None of the operating segments qualified for aggregation. The Company’s CODM is its Chief Executive Officer. The CODM evaluates the performance of the Company’s operating segments based on revenue and gross profit. The Company does not analyze discrete segment balance sheet information related to long-term assets. All other financial information is presented on a consolidated basis. For information regarding the Company’s long-lived assets and revenue by geographic area, see Note 15 . |
Use of Estimates | Use of Estimates The preparation of consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the amounts reported in the consolidated financial statements and accompanying notes. Such estimates include revenue recognition, the allowance for credit losses, the lives of tangible and intangible assets, the valuation of acquired intangible assets and the recoverability or impairment of intangible assets, including goodwill, internal-use software development costs, valuation of stock warrants issued, stock-based compensation, and accounting for income taxes. The Company bases its estimates on historical experience and also on assumptions that management considers reasonable. The Company assesses these estimates on a regular basis; however, actual results could differ from these estimates. |
Custodial Accounts | Custodial Accounts The Company has established a relationship with its merchant processors to act as collection and paying agents, whereby a merchant processor receives funds from customers and forwards such funds to the respective Paymentus client, based on the instructions received from the Company. These merchant processors act as custodians of the cash received, and the Company has no legal ownership rights to the funds held in such custodial accounts and does not control the use of these funds. As the Company does not take ownership of the funds, these custodial accounts are not included in the Company’s consolidated balance sheets. The balance of cash in the custodial accounts held by these merchant processors was $ 55.1 million and $ 47.4 million as of September 30, 2022 and December 31, 2021 , respectively. |
Restricted funds held for financial institutions and financial institution funds-in transit | Restricted Funds Held for Financial Institutions and Financial Institution Funds In-Transit Restricted funds held for financial institutions and the corresponding liability of financial institution funds in-transit represent the timing differences arising between the amounts the Company's sponsor bank receives from the sending financial institutions and the amounts disbursed to the recipient financial institutions. The restricted funds held for financial institutions' account is a transaction account maintained at the Company’s sponsor bank for clearing payments from financial institutions (as defined by the U.S. Treasury’s Financial Crimes Enforcement Network) to other financial institutions. Restricted funds held for financial institutions represent restricted cash that, based upon the Company's intent, are restricted solely for satisfying the corresponding obligations to send funds to the various financial institutions. |
Concentration of Credit Risk | Concentration of Credit Risk Financial instruments that potentially subject the Company to credit risk primarily consist of cash, cash equivalents, and accounts receivable. The Company maintains its cash and cash equivalents with high-quality financial institutions with investment-grade ratings. For accounts receivable, the Company is exposed to credit risk in the event of nonpayment by customers to the extent of the amounts recorded in the consolidated balance sheets. No customer accounted for more than 10 % of revenue for either of th e three or nine months ended September 30, 2022 and 2021 . No customer accounted for more than 10 % of accounts receivable as of September 30, 2022 , while one customer accounted for more than 10 % of accounts receivable as of December 31, 2021 . |
Summary of Significant Accounting Policies | Summary of Significant Accounting Policies The Company’s significant accounting policies are discussed in Note 2, “Basis of Presentation and Summary of Significant Accounting Policies,” in the Notes to Consolidated Financial Statements as of December 31, 2021 and 2020 and for the years ended December 31, 2021 and 2020 included in the 2021 Form 10-K. There have been no significant changes to these policies during the three and nine months ended September 30, 2022 . |
Accounting Pronouncements | Accounting Pronouncements The Company is provided the option to adopt new or revised accounting guidance as an “emerging growth company” under the Jumpstart Our Business Startups Act of 2012 either (1) within the same periods as those otherwise applicable to public business entities, or (2) within the same time periods as non-public business entities, including early adoption when permissible. With the exception of standards the Company elected to early adopt, when permissible, the Company has elected to adopt new or revised accounting guidance within the same time period as non-public business entities, as indicated below. Accounting Pronouncements Not Yet Adopted In October 2021, the FASB issued ASU 2021-08, "Business Combinations (Topic 805): Accounting for Contract Assets and Contract Liabilities from Contracts with Customers" ("ASU 2021-08") . ASU 2021-08 will require companies to apply the definition of a performance obligation under ASU 2014-09 , Revenue from contracts with customers (“Topic 606”) to recognize and measure contract assets and contract liabilities relating to contracts with customers that are acquired in a business combination. Under current U.S. GAAP, an acquirer generally recognizes assets acquired and liabilities assumed in a business combination, including contract assets and contract liabilities arising from revenue contracts with customers, at fair value on the acquisition date. ASU 2021-08 will result in the acquirer recording acquired contract assets and liabilities on the same basis that would have been recorded by the acquiree before the acquisition under ASU Topic 606. ASU 2021-08 is effective for fiscal years beginning after December 15, 2022 for public entities and December 15, 2023 for all other entities, with early adoption permitted. The Company is currently evaluating the impact of this ASU on its condensed consolidated financial statements. |
Revenue, Performance Obligati_2
Revenue, Performance Obligations and Contract Balances (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Revenue from Contract with Customer [Abstract] | |
Summary of Disaggregation of Revenue | The following table presents a disaggregation of revenue from contracts with customers (in thousands): Three Months Ended September 30, Nine Months Ended September 30, 2022 2021 2022 2021 Payment transaction processing revenue $ 126,373 $ 100,384 $ 359,846 $ 284,029 Other 1,779 1,292 4,979 3,364 Total revenue $ 128,152 $ 101,676 $ 364,825 $ 287,393 |
Business Combinations (Tables)
Business Combinations (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Payveris L L C [Member] | |
Restructuring Cost and Reserve [Line Items] | |
Schedule of Assets Acquired and Liabilities Assumed | The major classes of assets and liabilities to which the Company has allocated the fair value of purchase consideration were as follows (in thousands): Accounts receivable $ 1,026 Prepaid expenses and other current assets 237 Intangible assets, includes software acquired 38,498 Property and equipment 77 Goodwill 108,950 Restricted funds held for financial institutions 31,459 Financial institution funds in-transit ( 31,459 ) Accounts payable ( 194 ) Accrued liabilities ( 265 ) Deferred revenue ( 2,805 ) Total $ 145,524 |
Schedule of Fair Value of Identified Intangible Assets and Useful Lives | The fair values and estimated useful lives of the acquired intangible assets by category were as follows (in thousands, except years): Fair Value Useful Life Customer Relationships $ 26,154 8.0 Trademarks 3,993 4.0 Developed Technology 8,102 4.0 Total $ 38,249 |
Finovera Inc [Member] | |
Restructuring Cost and Reserve [Line Items] | |
Schedule of Assets Acquired and Liabilities Assumed | The major classes of assets and liabilities to which the Company has allocated the fair value of purchase consideration were as follows (in thousands): Cash $ 65 Accounts receivable 267 Intangible assets 6,048 Prepaid expenses and other current assets 39 Goodwill 7,266 Accounts payable ( 85 ) Accrued liabilities ( 72 ) Deferred taxes ( 588 ) Total $ 12,940 |
Schedule of Fair Value of Identified Intangible Assets and Useful Lives | The fair values and estimated useful lives of the acquired intangible assets by category were as follows (in thousands, except years): Fair Value Useful Life Developed Technology $ 5,155 4.0 Customer Relationships 893 2.0 Total $ 6,048 |
Property and Equipment, Net (Ta
Property and Equipment, Net (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Property, Plant and Equipment [Abstract] | |
Schedule of Property and Equipment, Net | Property and equipment, net consisted of the following (in thousands): September 30, December 31, 2022 2021 Computer equipment $ 5,366 $ 4,934 Furniture and fixtures 1,661 1,456 Leasehold improvements 417 445 Total property and equipment 7,444 6,835 Less: Accumulated depreciation and amortization ( 5,448 ) ( 4,791 ) Property and equipment, net $ 1,996 $ 2,044 |
Goodwill, Internal-use Softwa_2
Goodwill, Internal-use Software Development Costs and Intangible Assets (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Summary of Goodwill by Reporting Unit | The changes in the carrying amount of goodwill by reporting unit were as follows (in thousands): United Other Total Balance as of December 31, 2021 $ 128,519 $ 894 $ 129,413 Foreign currency translation adjustments — ( 69 ) ( 69 ) Balance as of September 30, 2022 $ 128,519 $ 825 $ 129,344 |
Summary of Intangible Assets | Intangible assets, net consisted of the following (in thousands): September 30, 2022 Gross Accumulated Net Weighted- Technology $ 20,797 $ ( 11,131 ) $ 9,666 4.0 License 2,479 ( 2,479 ) — — Customer relationship 33,781 ( 10,759 ) 23,022 8.0 Software 1,109 ( 596 ) 513 3.0 Trademark 4,193 ( 1,281 ) 2,912 4.0 Total $ 62,359 $ ( 26,246 ) $ 36,113 December 31, 2021 Gross Accumulated Net Weighted- Technology $ 20,837 $ ( 8,655 ) $ 12,182 4.0 License 2,652 ( 2,652 ) — — Customer relationship 33,830 ( 8,021 ) 25,809 8.0 Software 893 ( 456 ) 437 3.0 Trademark 4,193 ( 533 ) 3,660 4.0 Total $ 62,405 $ ( 20,317 ) $ 42,088 |
Schedule of Expected Future Amortization Expense | As of September 30, 2022, future expected amortization expense is as follows (in thousands): Years Ending December 31, 2022 (remaining three months) $ 2,066 2023 8,082 2024 7,807 2025 6,169 2026 3,283 Thereafter 8,706 Total future amortization expense $ 36,113 |
Leases (Tables)
Leases (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Leases [Abstract] | |
Schedule of Components of Lease Cost | The components of lease cost were as follows (in thousands): Three Months Ended September 30, Nine Months Ended September 30, 2022 2021 2022 2021 Operating lease cost $ 659 $ 893 $ 1,901 $ 2,329 Finance lease cost Depreciation expense 67 68 203 204 Interest on finance lease liabilities 2 4 7 13 Total finance lease cost 69 72 210 217 Short-term lease cost 181 424 807 592 Total lease cost $ 909 $ 1,389 $ 2,918 $ 3,138 |
Summary of Supplemental Cash Flow Information Related to Leases | Supplemental cash flow information related to leases was as follows (in thousands): Three Months Ended September 30, Nine Months Ended September 30, 2022 2021 2022 2021 Cash paid for amounts included in the measurement of lease liabilities Operating cash flows for operating leases $ 521 $ 546 $ 1,598 $ 2,236 Operating cash flows for finance leases 2 4 7 13 Financing cash flows for finance leases 66 68 201 204 Right-of-use assets obtained in exchange of operating lease obligations -- -- 4,151 2,638 |
Summary of Remaining Lease Payments under Non-Cancelable Operating and Finance Leases | The total remaining lease payments under non-cancelable operating and finance leases as of September 30, 2022 were as follows (in thousands): Years Ending December 31, Operating Leases Finance Leases 2022 (remaining three months) $ 498 $ 64 2023 1,748 102 2024 1,721 — 2025 1,736 — 2026 1,758 — Thereafter 3,690 — Total minimum lease payments including interest $ 11,151 $ 166 Less imputed interest ( 1,059 ) ( 1 ) Total lease liabilities $ 10,092 $ 165 |
Accrued Liabilities (Tables)
Accrued Liabilities (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Accrued Liabilities, Current [Abstract] | |
Summary of Accrued Liabilities | Accrued liabilities consisted of the following (in thousands): September 30, December 31, 2022 2021 Payroll and employee-related expenses $ 9,402 $ 8,093 Finance leases and other financing obligations 4,252 2,382 Other accrued liabilities 3,011 2,016 Total $ 16,665 $ 12,491 |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Share-Based Payment Arrangement [Abstract] | |
Schedule of Stock Option Activity | A summary of the Company’s option activity during the nine months ended September 30, 2022 was as follows (in thousands, except share and per share amounts): Weighted- Weighted- Average Average Remaining Aggregate Options Exercise Price Contractual Intrinsic Outstanding per Share Life (years) Value Outstanding at December 31, 2021 6,849,910 $ 5.05 4.98 $ 205,010 Options granted — Options exercised ( 2,282,645 ) 0.64 Options forfeited ( 210,104 ) 8.66 Outstanding at September 30, 2022 4,357,161 $ 7.19 5.88 $ 11,041 Exercisable at September 30, 2022 3,294,854 $ 6.72 5.61 $ 9,900 |
Schedule of Stock Option Grant Using Black-Scholes Option Pricing Model With Assumptions | The fair value of options granted during the nine months ended September 30, 2021 was estimated using the Black-Scholes option-pricing model with the following weighted-average assumptions: Three Months Ended September 30, Nine Months Ended September 30, 2021 2021 Dividend yield 0.0 % Risk-free interest rate 0.3 % - 0.8 % Expected term (in years) 5 Expected volatility 38.0 % |
Summary of RSU Activity | A summary of the Company’s RSU activity during the nine months ended September 30, 2022 was as follows: Weighted- Average Number of Grant Date RSU's Outstanding Fair Value Awarded and unvested at December 31, 2021 513,547 $ 25.93 Awards granted 1,142,491 15.37 Awards vested ( 68,096 ) 26.08 Awards forfeited ( 150,076 ) 17.80 Awarded and unvested at September 30, 2022 1,437,866 $ 18.38 |
Summary of Stock Based Compensation Expense | Stock-based compensation expense included in the condensed consolidated statements of operations was as follows (in thousands): Three Months Ended September 30, Nine Months Ended September 30, 2022 2021 2022 2021 Cost of revenue $ — $ — $ — $ — Operating expenses Research and development 507 110 1,080 141 Sales and marketing 612 56 1,062 92 General and administrative 883 588 2,480 1,652 Total stock-based compensation $ 2,002 $ 754 $ 4,622 $ 1,885 |
Net (Loss) Income per Share A_2
Net (Loss) Income per Share Attributable to Common Stock (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Earnings Per Share [Abstract] | |
Schedule of Computation of Basic and Diluted Net Income Per Share Attributable to Common Stock | The following table sets forth the computation of basic and diluted net (loss) income per share attributable to common stock (in thousands except share and per share data): Three Months Ended September 30, Nine Months Ended September 30, 2022 2021 2022 2021 Numerator: Net (loss) income $ ( 737 ) $ 422 $ ( 1,470 ) $ 4,635 Undeclared dividends on Series A preferred stock — - - — ( 2,258 ) Net (loss) income attributable to common stock $ ( 737 ) $ 422 $ ( 1,470 ) $ 2,377 Denominator: Weighted-average shares of common stock - basic 122,740,982 118,206,073 121,765,509 110,272,583 Dilutive effect of stock options to purchase common stock — 6,076,424 — 6,077,748 Dilutive effect of RSUs — 11,180 — 4,398 Dilutive effect of warrants — 134,100 — 64,945 Weighted-average shares of common stock - diluted 122,740,982 124,427,777 121,765,509 116,419,674 Net (loss) income per share attributable to common stock Basic $ ( 0.01 ) $ — $ ( 0.01 ) $ 0.02 Diluted $ ( 0.01 ) $ — $ ( 0.01 ) $ 0.02 |
Schedule of Common Stock Equivalents Excluded from Income (Loss) Per Diluted Share | The following table summarizes the securities that were excluded from the computation of diluted net income per share attributable to common stock as their inclusion would have been antidilutive: Three Months Ended September 30, Nine Months Ended September 30, 2022 2021 2022 2021 Stock options to purchase common stock 4,705,323 — 5,693,398 — RSUs 1,396,810 — 860,848 — Warrants 428,803 — 418,630 — |
Geographic Information (Tables)
Geographic Information (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Segment Reporting [Abstract] | |
Summary of Revenue by Geographic Area | Revenue by geographic area, based on the location of the Company’s users, was as follows (in thousands): Three Months Ended September 30, Nine Months Ended September 30, 2022 2021 2022 2021 United States $ 125,655 $ 99,544 $ 357,088 $ 281,309 Other 2,497 2,132 7,737 6,084 Total $ 128,152 $ 101,676 $ 364,825 $ 287,393 |
Long-lived Assets by Geographic Areas | Long-lived assets, comprising property and equipment assets, by geographic area were as follows (in thousands): September 30, December 31, 2022 2021 United States $ 796 $ 588 Other 1,200 1,456 Total $ 1,996 $ 2,044 |
Organization and Description _2
Organization and Description of Business (Details) - USD ($) $ / shares in Units, $ in Thousands | 1 Months Ended | 9 Months Ended | |||
May 31, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | Dec. 31, 2021 | Dec. 31, 2020 | |
Subsidiary Sale Of Stock [Line Items] | |||||
Proceeds from initial public offering, net of underwriter's discounts and commissions | $ 0 | $ 224,595 | |||
Proceeds from private placement | $ 0 | $ 50,000 | |||
Class A Common Stock [Member] | |||||
Subsidiary Sale Of Stock [Line Items] | |||||
Common stock, shares issued | 19,653,565 | 17,251,079 | |||
Common stock, shares outstanding | 19,653,565 | 17,251,079 | |||
Class A Common Stock [Member] | IPO [Member] | |||||
Subsidiary Sale Of Stock [Line Items] | |||||
Common stock, shares issued | 11,500,000 | ||||
Shares issued, price per share | $ 21 | ||||
Proceeds from initial public offering, net of underwriter's discounts and commissions | $ 224,600 | ||||
Underwriting discounts and commissions | 16,900 | ||||
Direct Offering Expenses | $ 2,000 | ||||
Class A Common Stock [Member] | Over-Allotment Option [Member] | |||||
Subsidiary Sale Of Stock [Line Items] | |||||
Issuance of shares (in shares) | 1,500,000 | ||||
Class A Common Stock [Member] | Private Placement [Member] | |||||
Subsidiary Sale Of Stock [Line Items] | |||||
Common stock, shares issued | 2,380,950 | ||||
Sale of stock, price per share | $ 21 | ||||
Proceeds from private placement | $ 50,000 | ||||
Class B Common Stock [Member] | |||||
Subsidiary Sale Of Stock [Line Items] | |||||
Common stock, shares issued | 103,336,337 | 103,388,082 | 0 | ||
Common stock, shares outstanding | 103,336,337 | 103,388,082 | |||
Class B Common Stock [Member] | IPO [Member] | |||||
Subsidiary Sale Of Stock [Line Items] | |||||
Common stock, shares outstanding | 103,479,239 |
Basis of Presentation and Sum_3
Basis of Presentation and Summary of Significant Accounting Policies - Additional Information (Details) $ in Millions | 9 Months Ended | 12 Months Ended | ||
May 10, 2021 | Sep. 30, 2022 USD ($) Segment | Sep. 30, 2021 | Dec. 31, 2021 USD ($) | |
Summary Of Significant Accounting Policies [Line Items] | ||||
Stock split ratio | 5 | |||
Number of operating segment | Segment | 3 | |||
Cash in custodial account | $ | $ 55.1 | $ 47.4 | ||
Revenue [Member] | Customer Concentration Risk [Member] | Minimum [Member] | ||||
Summary Of Significant Accounting Policies [Line Items] | ||||
Concentration Risk, Percentage | 10% | 10% | ||
Accounts Receivable [Member] | Customer Concentration Risk [Member] | Minimum [Member] | ||||
Summary Of Significant Accounting Policies [Line Items] | ||||
Concentration Risk, Percentage | 10% | 10% |
Revenue, Performance Obligati_3
Revenue, Performance Obligations and Contract Balances - Additional Information (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | Dec. 31, 2021 | |
Disaggregation of Revenue [Line Items] | |||||
Reduction in revenue and related contract asset | $ 500 | $ 200 | $ 1,300 | $ 400 | |
Contract asset balance | 10,100 | 10,100 | $ 5,600 | ||
Contract Liabilities | 4,000 | 4,000 | 3,900 | ||
Contract liabilities | 1,328 | 1,328 | 2,173 | ||
Remaining Performance Obligation, aggregate amount of transaction price | $ 4,000 | $ 4,000 | |||
Remaining Performance Obligation, percentage | 80% | 80% | |||
Expected revenue period | 4 years | ||||
Fixed consideration related to the future minimum guarantees, contract amount | $ 61,000 | $ 61,000 | |||
Prepaid Expenses and Other Current Assets [Member] | |||||
Disaggregation of Revenue [Line Items] | |||||
Contract asset balance | 2,700 | 2,700 | 1,700 | ||
Payment Transaction Processing Revenue [Member] | |||||
Disaggregation of Revenue [Line Items] | |||||
Contract Liabilities | 500 | 800 | 500 | 800 | |
Contract liabilities | 600 | $ 1,500 | 600 | $ 1,500 | |
Other Long-Term Assets [Member] | |||||
Disaggregation of Revenue [Line Items] | |||||
Contract asset balance | $ 7,400 | $ 7,400 | $ 3,900 |
Revenue, Performance Obligati_4
Revenue, Performance Obligations and Contract Balances - Summary of Disaggregation of Revenue from Contracts with Customer (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Disaggregation Of Revenue [Line Items] | ||||
Revenue | $ 128,152 | $ 101,676 | $ 364,825 | $ 287,393 |
Customer Contracts [Member] | ||||
Disaggregation Of Revenue [Line Items] | ||||
Revenue | 128,152 | 101,676 | 364,825 | 287,393 |
Payment Transaction Processing Revenue [Member] | Customer Contracts [Member] | ||||
Disaggregation Of Revenue [Line Items] | ||||
Revenue | 126,373 | 100,384 | 359,846 | 284,029 |
Other [Member] | Customer Contracts [Member] | ||||
Disaggregation Of Revenue [Line Items] | ||||
Revenue | $ 1,779 | $ 1,292 | $ 4,979 | $ 3,364 |
Business Combinations - Additio
Business Combinations - Additional Information (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | 12 Months Ended | |||
Sep. 02, 2021 | Sep. 01, 2021 | Dec. 31, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | Dec. 31, 2021 | |
Restructuring Cost and Reserve [Line Items] | ||||||
Purchase price of acquisition | $ 8,500 | |||||
Cash purchase price | $ 0 | $ 57,120 | ||||
Payveris L L C [Member] | ||||||
Restructuring Cost and Reserve [Line Items] | ||||||
Purchase price of acquisition | $ 145,500 | |||||
Cash purchase price | $ 85,100 | |||||
Payveris L L C [Member] | Common Class A [Member] | ||||||
Restructuring Cost and Reserve [Line Items] | ||||||
Number of shares issued for business acquisition | 2,364,270 | |||||
Common stock fair value | $ 60,400 | |||||
Finovera Inc [Member] | ||||||
Restructuring Cost and Reserve [Line Items] | ||||||
Cash | $ 5,000 | $ 65 | ||||
Cash purchase price | 12,900 | |||||
Common stock fair value | $ 7,900 | |||||
Acquisition cost incurred | $ 1,700 | |||||
Finovera Inc [Member] | Common Class A [Member] | ||||||
Restructuring Cost and Reserve [Line Items] | ||||||
Number of shares issued for business acquisition | 293,506 | |||||
Finovera Inc [Member] | Accrued Liabilities [Member] | ||||||
Restructuring Cost and Reserve [Line Items] | ||||||
Cash held back for acquisition closing | $ 800 |
Business Combinations - Schedul
Business Combinations - Schedule Of Assets Acquired And Liabilities Assumed (Details) - USD ($) $ in Thousands | Sep. 30, 2022 | Dec. 31, 2021 | Sep. 02, 2021 |
Business Acquisition [Line Items] | |||
Goodwill | $ 129,344 | $ 129,413 | |
Payveris L L C [Member] | |||
Business Acquisition [Line Items] | |||
Accounts receivable | 1,026 | ||
Prepaid expenses and other current assets | 237 | ||
Intangible assets, includes software acquired | 38,498 | ||
Property and equipment | 77 | ||
Goodwill | 108,950 | ||
Restricted funds held for financial institutions | 31,459 | ||
Financial institution funds in -transit | (31,459) | ||
Accounts payable | (194) | ||
Accrued liabilities | (265) | ||
Deferred revenue | (2,805) | ||
Business combination, recognized identifiable assets acquired and liabilities assumed, Net | 145,524 | ||
Finovera Inc [Member] | |||
Business Acquisition [Line Items] | |||
Cash | 65 | $ 5,000 | |
Accounts receivable | 267 | ||
Prepaid expenses and other current assets | 39 | ||
Intangible assets, includes software acquired | 6,048 | ||
Goodwill | 7,266 | ||
Accounts payable | (85) | ||
Accrued liabilities | (72) | ||
Deferred taxes | (588) | ||
Business combination, recognized identifiable assets acquired and liabilities assumed, Net | $ 12,940 |
Business Combinations - Sched_2
Business Combinations - Schedule Of Fair Values And Estimated Useful Lives Of Intangible Assets (Details) - USD ($) $ in Thousands | 9 Months Ended | 12 Months Ended |
Sep. 30, 2022 | Dec. 31, 2021 | |
Payveris L L C [Member] | ||
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Fair value | $ 38,249 | |
Finovera Inc [Member] | ||
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Fair value | $ 6,048 | |
Customer Relationships [Member] | ||
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Estimated useful life | 8 years | 8 years |
Customer Relationships [Member] | Payveris L L C [Member] | ||
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Fair value | $ 26,154 | |
Estimated useful life | 8 years | |
Customer Relationships [Member] | Finovera Inc [Member] | ||
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Fair value | $ 893 | |
Estimated useful life | 2 years | |
Trademarks [Member] | ||
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Estimated useful life | 4 years | 4 years |
Trademarks [Member] | Payveris L L C [Member] | ||
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Fair value | $ 3,993 | |
Estimated useful life | 4 years | |
Developed Technology Rights [Member] | Payveris L L C [Member] | ||
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Fair value | $ 8,102 | |
Estimated useful life | 4 years | |
Developed Technology Rights [Member] | Finovera Inc [Member] | ||
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Fair value | $ 5,155 | |
Estimated useful life | 4 years |
Property and Equipment, Net - S
Property and Equipment, Net - Schedule of Property and Equipment, Net (Details) - USD ($) $ in Thousands | Sep. 30, 2022 | Dec. 31, 2021 |
Property Plant And Equipment [Line Items] | ||
Total property and equipment | $ 7,444 | $ 6,835 |
Less: Accumulated depreciation and amortization | (5,448) | (4,791) |
Property and equipment, net | 1,996 | 2,044 |
Computer Equipment [Member] | ||
Property Plant And Equipment [Line Items] | ||
Total property and equipment | 5,366 | 4,934 |
Furniture And Fixtures [Member] | ||
Property Plant And Equipment [Line Items] | ||
Total property and equipment | 1,661 | 1,456 |
Leasehold Improvements [Member] | ||
Property Plant And Equipment [Line Items] | ||
Total property and equipment | $ 417 | $ 445 |
Property and Equipment, Net - A
Property and Equipment, Net - Additional Information (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Property, Plant and Equipment [Abstract] | ||||
Depreciation, Depletion and Amortization | $ 0.3 | $ 0.3 | $ 1 | $ 0.8 |
Goodwill, Internal-use Softwa_3
Goodwill, Internal-use Software Development Costs and Intangible Assets - Summary of Goodwill by Reporting Units (Details) $ in Thousands | 9 Months Ended |
Sep. 30, 2022 USD ($) | |
Goodwill [Line Items] | |
Beginning Balance | $ 129,413 |
Foreign currency translation adjustments | (69) |
Ending Balance | 129,344 |
United States [Member] | |
Goodwill [Line Items] | |
Beginning Balance | 128,519 |
Foreign currency translation adjustments | 0 |
Ending Balance | 128,519 |
Other [Member] | |
Goodwill [Line Items] | |
Beginning Balance | 894 |
Foreign currency translation adjustments | (69) |
Ending Balance | $ 825 |
Goodwill, Internal-use Softwa_4
Goodwill, Internal-use Software Development Costs and Intangible Assets - Additional Information (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Goodwill [Line Items] | ||||
Capitalized internal-use software development costs | $ 7,800 | $ 4,800 | $ 22,257 | $ 13,473 |
Amortization of Intangible Assets | 2,000 | 1,000 | 6,200 | 1,100 |
Cost Of Revenue [Member] | ||||
Goodwill [Line Items] | ||||
Amortizaion expense of capitalized software costs | 2,400 | 1,300 | 6,100 | 3,500 |
Operating Expense [Member] | ||||
Goodwill [Line Items] | ||||
Amortizaion expense of capitalized software costs | $ 1,400 | $ 1,200 | ||
Amortization of Intangible Assets | $ 4,300 | $ 3,300 | ||
Maximum [Member] | Computer Software, Intangible Asset [Member] | ||||
Goodwill [Line Items] | ||||
Capitalized cost amortization estimated useful life | 5 years |
Goodwill, Internal-use Softwa_5
Goodwill, Internal-use Software Development Costs and Intangible Assets - Summary of Intagible Assets (Details) - USD ($) $ in Thousands | 9 Months Ended | 12 Months Ended |
Sep. 30, 2022 | Dec. 31, 2021 | |
Finite Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | $ 62,359 | $ 62,405 |
Accumulated Amortization | (26,246) | (20,317) |
Total future amortization expense | 36,113 | 42,088 |
Technology [Member] | ||
Finite Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 20,797 | 20,837 |
Accumulated Amortization | (11,131) | (8,655) |
Total future amortization expense | $ 9,666 | $ 12,182 |
Weighted-Average Useful Life (Years) | 4 years | 4 years |
License [Member] | ||
Finite Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | $ 2,479 | $ 2,652 |
Accumulated Amortization | (2,479) | (2,652) |
Total future amortization expense | 0 | 0 |
Customer Relationships [Member] | ||
Finite Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 33,781 | 33,830 |
Accumulated Amortization | (10,759) | (8,021) |
Total future amortization expense | $ 23,022 | $ 25,809 |
Weighted-Average Useful Life (Years) | 8 years | 8 years |
Software [Member] | ||
Finite Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | $ 1,109 | $ 893 |
Accumulated Amortization | (596) | (456) |
Total future amortization expense | $ 513 | $ 437 |
Weighted-Average Useful Life (Years) | 3 years | 3 years |
Trademark [Member] | ||
Finite Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | $ 4,193 | $ 4,193 |
Accumulated Amortization | (1,281) | (533) |
Total future amortization expense | $ 2,912 | $ 3,660 |
Weighted-Average Useful Life (Years) | 4 years | 4 years |
Goodwill, Internal-use Softwa_6
Goodwill, Internal-use Software Development Costs and Intangible Assets - Schedule of Expected Future Amortization Expense (Details) - USD ($) $ in Thousands | Sep. 30, 2022 | Dec. 31, 2021 |
Goodwill and Intangible Assets Disclosure [Abstract] | ||
2022 (remaining three months) | $ 2,066 | |
2023 | 8,082 | |
2024 | 7,807 | |
2025 | 6,169 | |
2026 | 3,283 | |
Thereafter | 8,706 | |
Total future amortization expense | $ 36,113 | $ 42,088 |
Leases - Additional Information
Leases - Additional Information (Details) | Sep. 30, 2022 |
Minimum [Member] | |
Lessee Lease Description [Line Items] | |
Operating lease, remaining lease term | 1 year |
Maximum [Member] | |
Lessee Lease Description [Line Items] | |
Operating lease, remaining lease term | 10 years |
Leases - Schedule of Components
Leases - Schedule of Components of Lease Cost (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Leases [Abstract] | ||||
Operating lease cost | $ 659 | $ 893 | $ 1,901 | $ 2,329 |
Depreciation expense | 67 | 68 | 203 | 204 |
Interest on finance lease liabilities | 2 | 4 | 7 | 13 |
Total finance lease cost | 69 | 72 | 210 | 217 |
Short-term lease cost | 181 | 424 | 807 | 592 |
Total lease cost | $ 909 | $ 1,389 | $ 2,918 | $ 3,138 |
Leases - Summary of Supplementa
Leases - Summary of Supplemental Cash Flow Information Related to Leases (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Cash paid for amounts included in the measurement of lease liabilities | ||||
Operating cash flows for operating leases | $ 521 | $ 546 | $ 1,598 | $ 2,236 |
Operating cash flows for finance lease | 2 | 4 | 7 | 13 |
Financing cash flows for finance leases | $ 66 | $ 68 | 201 | 204 |
Right-of-use assets obtained in exchange of operating lease obligations | $ 4,151 | $ 2,638 |
Leases - Summary of Remaining L
Leases - Summary of Remaining Lease Payments under Non-Cancelable Operating and Finance Leases (Details) $ in Thousands | Sep. 30, 2022 USD ($) |
Operating Leases: | |
2022 (remaining three months) | $ 498 |
2023 | 1,748 |
2024 | 1,721 |
2025 | 1,736 |
2026 | 1,758 |
Thereafter | 3,690 |
Total minimum lease payments including interest | 11,151 |
Less imputed interest | (1,059) |
Total lease liabilities | 10,092 |
Finance Leases: | |
2022 (remaining three months) | 64 |
2023 | 102 |
2024 | 0 |
2025 | 0 |
2026 | 0 |
Thereafter | 0 |
Total minimum lease payments including interest | 166 |
Less imputed interest | (1) |
Total lease liabilities | $ 165 |
Accrued Liabilities - Summary o
Accrued Liabilities - Summary of Accrued Liabilities (Details) - USD ($) $ in Thousands | Sep. 30, 2022 | Dec. 31, 2021 |
Accrued Liabilities, Current [Abstract] | ||
Payroll and employee-related expenses | $ 9,402 | $ 8,093 |
Finance leases and other financing obligations | 4,252 | 2,382 |
Other accrued liabilities | 3,011 | 2,016 |
Accrued liabilities | $ 16,665 | $ 12,491 |
Commitments and Contingencies -
Commitments and Contingencies - Additional Information (Details) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Commitments and Contingencies Disclosure [Abstract] | ||||
Other commitments, description | The Company has entered into certain non-cancellable agreements for software and marketing services that specify all significant terms, including fixed or minimum services to be used, pricing provisions and the approximate timing of the transaction. Obligations under contracts that are cancellable or with remaining terms of 12 months or less are not included. There have been no material changes to the Company's contractual obligations or commitments outside of the ordinary course of business as compared to those described in the 2021 Form 10-K. | |||
Contributions under plan | $ 200,000 | $ 0 | $ 600,000 | $ 0 |
Equity - Additional Information
Equity - Additional Information (Details) - USD ($) $ / shares in Units, $ in Thousands | 9 Months Ended | |||||
Sep. 30, 2022 | Aug. 29, 2022 | Dec. 31, 2021 | May 31, 2021 | May 13, 2021 | Dec. 31, 2020 | |
Class Of Stock [Line Items] | ||||||
Preferred stock, shares authorized | 5,000,000 | 5,000,000 | ||||
Preferred stock, par value | $ 0.0001 | $ 0.0001 | ||||
Common stock, par value | $ 10.10 | $ 18.38 | ||||
Common Stock, Terms of Conversion | Shares of Class B common stock may be converted to Class A common stock at any time at the option of the stockholder. Shares of Class B common stock automatically convert to Class A common stock upon the following: (i) sale or transfer of such share of Class B common stock; (ii) the death of the Class B common stockholder (or nine months after the date of death if the stockholder is one of the Company’s founders); and (iii) on the first trading day on or after the date on which the outstanding shares of Class B common stock represent less than 10% of the then outstanding Class A and Class B common stock. Following the conversion of all outstanding shares of Class B common stock into Class A common stock, no further shares of Class B common stock will be issued. | |||||
Preferred stock, $0.0001 par value per share, 5,000,000 shares authorized as of September 30, 2022 and December 31, 2021, respectively; none issued and outstanding as of September 30, 2022 and December 31, 2021, respectively | $ 0 | $ 0 | ||||
Preferred stock, shares issued | 0 | 0 | ||||
Preferred stock, shares outstanding | 0 | 0 | ||||
Warrant Issue | 684,510 | 509,370 | ||||
Fully Vested | 569,072 | 171,128 | 382,027 | |||
Vesting of the Remaining Shares of the Warrant | 513,382 | 127,343 | ||||
Class A Common Stock [Member] | ||||||
Class Of Stock [Line Items] | ||||||
Common stock, shares authorized | 883,950,000 | 883,950,000 | ||||
Common Stock, Voting Rights | one | |||||
Common stock, par value | $ 0.0001 | $ 0.0001 | ||||
Common stock, shares issued | 19,653,565 | 17,251,079 | ||||
Class A Common Stock [Member] | IPO [Member] | ||||||
Class Of Stock [Line Items] | ||||||
Common stock, shares issued | 11,500,000 | |||||
Class B Common Stock [Member] | ||||||
Class Of Stock [Line Items] | ||||||
Common stock, shares authorized | 111,050,000 | 111,050,000 | ||||
Common Stock, Voting Rights | one | |||||
Common stock, par value | $ 0.0001 | $ 0.0001 | ||||
Common stock, shares issued | 103,336,337 | 103,388,082 | 0 | |||
Series A Preferred Stock [Member] | ||||||
Class Of Stock [Line Items] | ||||||
Dividends, Preferred Stock | $ 34,400 | |||||
Preferred stock, shares issued | 0 | |||||
Preferred stock, shares outstanding | 0 | |||||
Series A Preferred Stock [Member] | IPO [Member] | ||||||
Class Of Stock [Line Items] | ||||||
Preferred stock, $0.0001 par value per share, 5,000,000 shares authorized as of September 30, 2022 and December 31, 2021, respectively; none issued and outstanding as of September 30, 2022 and December 31, 2021, respectively | $ 57,400 |
Stock-Based compensation - Addi
Stock-Based compensation - Additional Information (Details) - USD ($) $ / shares in Units, $ in Millions | 1 Months Ended | 3 Months Ended | 6 Months Ended | 9 Months Ended | ||
May 31, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | Jun. 30, 2022 | Sep. 30, 2022 | Sep. 30, 2021 | |
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | ||||||
Shares reserved for issuance | 14,075,898 | 14,075,898 | ||||
Weighted average grant date fair value of options granted | $ 7.21 | |||||
Options granted in period | 0 | 0 | 0 | 0 | ||
Restricted Stock Units (RSUs) [Member] | ||||||
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | ||||||
Total unrecognized compensation cost | $ 24.3 | $ 24.3 | ||||
Total unrecognized compensation cost, recognition period | 3 years 8 months 12 days | |||||
RSUs vested | 68,096 | |||||
Class A & Class B Common Stock [Member] | ||||||
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | ||||||
Percentage of annual increase of outstanding shares | 4% | 4% | ||||
Maximum [Member] | Restricted Stock Units (RSUs) [Member] | ||||||
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | ||||||
RSUs vest over the requisite service period | 5 years | |||||
Minimum [Member] | Restricted Stock Units (RSUs) [Member] | ||||||
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | ||||||
RSUs vest over the requisite service period | 4 years | |||||
Equity Incentive Plan [Member] | ||||||
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | ||||||
Total unrecognized compensation cost | $ 2.8 | $ 2.8 | ||||
Total unrecognized compensation cost, recognition period | 1 year 7 months 6 days | |||||
Equity Incentive Plan [Member] | Class A Common Stock [Member] | ||||||
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | ||||||
Shares reserved for issuance | 10,459,000 | 4,825,566 | 4,825,566 | |||
Options granted in period | 7,563,990 |
Stock-Based compensation - Sche
Stock-Based compensation - Schedule of Stock Option Activity (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | Dec. 31, 2021 | |
Share-Based Payment Arrangement [Abstract] | |||||
Options Outstanding, Beginning | 6,849,910 | ||||
Options granted | 0 | 0 | 0 | 0 | |
Options exercised | 2,282,645 | ||||
Options forfeited | (210,104) | ||||
Options Outstanding, Ending | 4,357,161 | 4,357,161 | 6,849,910 | ||
Options Outstanding, Exercisable | 3,294,854 | 3,294,854 | |||
Weighted Average Exercise Price, Beginning | $ 5.05 | ||||
Weighted Average Exercise Price, Exercised | 0.64 | ||||
Weighted Average Exercise Price, Forfeited | 8.66 | ||||
Weighted Average Exercise Price, Ending | $ 7.19 | 7.19 | $ 5.05 | ||
Weighted Average Exercise Price, Exercisable | $ 6.72 | $ 6.72 | |||
Weighted Average Remaining Contractual Term (years) | 5 years 10 months 17 days | 4 years 11 months 23 days | |||
Weighted Average Remaining Contractual Term (years), Exercisable | 5 years 7 months 9 days | ||||
Aggregate Intrinsic Value, Beginning | $ 205,010 | ||||
Aggregate Intrinsic Value, Ending | $ 11,041 | 11,041 | $ 205,010 | ||
Aggregate Intrinsic Value, Exercisable | $ 9,900 | $ 9,900 |
Stock-Based compensation - Sc_2
Stock-Based compensation - Schedule of Stock Option Grant Using Black-Scholes Option Pricing Model With Assumptions (Details) | 9 Months Ended |
Sep. 30, 2021 | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |
Dividend yield | 0% |
Expected term (in years) | 5 years |
Expected volatility | 38% |
Minimum [Member] | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |
Risk-free interest rate | 0.30% |
Maximum | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |
Risk-free interest rate | 0.80% |
Stock Based Compensation - Summ
Stock Based Compensation - Summary of RSU Activity (Details) - Restricted Stock Units (RSUs) [Member] | 9 Months Ended |
Sep. 30, 2022 $ / shares shares | |
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | |
Awarded and unvested, Beginning Balance | shares | shares | 513,547 |
Awards, Granted | shares | shares | 1,142,491 |
Awards, Vested | shares | shares | (68,096) |
Awards,Forfeited | shares | shares | (150,076) |
Awarded and unvested, Ending Balance | shares | shares | 1,437,866 |
Weighted Average Grant-Date Fair Value, Unvested, Beginning Balance | $ / shares | $ / shares | $ 25.93 |
Weighted Average Grant-Date Fair Value, Granted | $ / shares | $ / shares | 15.37 |
Weighted Average Grant-Date Fair Value, Vested | $ / shares | $ / shares | 26.08 |
Weighted Average Grant-Date Fair Value, Forfeited | $ / shares | $ / shares | 17.80 |
Weighted Average Grant-Date Fair Value, Unvested, Ending Balance | $ / shares | $ / shares | $ 18.38 |
Stock-Based compensation - Summ
Stock-Based compensation - Summary of Stock Based Compensation Expense (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Total stock-based compensation | $ 2,002 | $ 754 | $ 4,622 | $ 1,885 |
Cost Of Revenue | ||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Total stock-based compensation | 0 | 0 | 0 | 0 |
Research and Development [Member] | ||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Total stock-based compensation | 507 | 110 | 1,080 | 141 |
Sales and Marketing [Member] | ||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Total stock-based compensation | 612 | 56 | 1,062 | 92 |
General and Administrative [Member] | ||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Total stock-based compensation | $ 883 | $ 588 | $ 2,480 | $ 1,652 |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Effective tax rate | (65.20%) | 58% | 62.30% | 53.90% |
Difference between effective tax rate and federal statutory rate | 21% | |||
Deferred Tax Assets, Valuation Allowance | $ 6.7 | $ 6.7 |
Net (Loss) Income per Share A_3
Net (Loss) Income per Share Attributable to Common Stock - Schedule of Computation of Basic and Diluted Net Income Per Share Attributable to Common Stock (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 9 Months Ended | ||||||
Sep. 30, 2022 | Jun. 30, 2022 | Mar. 31, 2022 | Sep. 30, 2021 | Jun. 30, 2021 | Mar. 31, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Numerator: | ||||||||
Net (loss) income | $ (737) | $ (2,451) | $ 1,718 | $ 422 | $ 575 | $ 3,638 | $ (1,470) | $ 4,635 |
Undeclared dividends on Series A preferred stock | 0 | 0 | 0 | (2,258) | ||||
Net (loss) income attributable to common stock | $ (737) | $ 422 | $ (1,470) | $ 2,377 | ||||
Denominator: | ||||||||
Weighter-average shares of common stock - basic | 122,740,982 | 118,206,073 | 121,765,509 | 110,272,583 | ||||
Dilutive effect of stock options to purchase common stock | 0 | 6,076,424 | 0 | 6,077,748 | ||||
Dilutive effect of RSUs | 0 | 11,180 | 0 | 4,398 | ||||
Dilutive effect of warrants | 0 | 134,100 | 0 | 64,945 | ||||
Weighter-average shares of common stock - diluted | 122,740,982 | 124,427,777 | 121,765,509 | 116,419,674 | ||||
Net (loss) income per share attributable to common stock | ||||||||
Basic | $ (0.01) | $ 0 | $ (0.01) | $ 0.02 | ||||
Diluted | $ (0.01) | $ 0 | $ (0.01) | $ 0.02 |
Net (Loss) Income per Share A_4
Net (Loss) Income per Share Attributable to Common Stock - Schedule of Common Stock Equivalents Excluded from Income (Loss) Per Diluted Share (Details) - shares | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Stock Options To Purchase Common stock [Member] | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Antidilutive securities | 4,705,323 | 0 | 5,693,398 | 0 |
RSU [Member] | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Antidilutive securities | 1,396,810 | 0 | 860,848 | 0 |
Warrants [Member] | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Antidilutive securities | 428,803 | 0 | 418,630 | 0 |
Geographic Information - Summar
Geographic Information - Summary of Revenue by Geographic Area (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Revenues From External Customers And Long Lived Assets [Line Items] | ||||
Revenue | $ 128,152 | $ 101,676 | $ 364,825 | $ 287,393 |
United States [Member] | ||||
Revenues From External Customers And Long Lived Assets [Line Items] | ||||
Revenue | 125,655 | 99,544 | 357,088 | 281,309 |
Other [Member] | ||||
Revenues From External Customers And Long Lived Assets [Line Items] | ||||
Revenue | $ 2,497 | $ 2,132 | $ 7,737 | $ 6,084 |
Geographic Information - Summ_2
Geographic Information - Summary of Long-lived Assets by Geographic Areas (Details) - USD ($) $ in Thousands | Sep. 30, 2022 | Dec. 31, 2021 |
Revenues From External Customers And Long Lived Assets [Line Items] | ||
Long-lived assets, comprising property and equipment assets | $ 1,996 | $ 2,044 |
United States [Member] | ||
Revenues From External Customers And Long Lived Assets [Line Items] | ||
Long-lived assets, comprising property and equipment assets | 796 | 588 |
Other [Member] | ||
Revenues From External Customers And Long Lived Assets [Line Items] | ||
Long-lived assets, comprising property and equipment assets | $ 1,200 | $ 1,456 |