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Fair Value Measurements (Tables)

9 Months Ended

Sep. 30, 2019

Summary of Company's Fair Value Hierarchy for its Financial Assets and Liabilities

The following table represents the Company’s fair value hierarchy for its financial assets and liabilities that are measured at fair value on a recurring basis (in thousands):

	As of September 30, 2019
	Level 1		Level 2		Level 3			Total
Assets:
Money market funds (1)	$	5,367	$	—	$	—		$	5,367
Total Assets:	$	5,367	$	—	$	—		$	5,367

Liabilities
Contingent purchase price (2)	$	—	$	—	$	(2,443	)	$	(2,443	)
Total Liabilities:	$	—	$	—	$	(2,443	)	$	(2,443	)

	As of December 31, 2018
	Level 1		Level 2		Level 3			Total
Assets:
Money market funds (1)	$	255	$	—	$	—		$	255
Total Assets:	$	255	$	—	$	—		$	255

Liabilities
Contingent purchase price (2)	$	—	$	—	$	(4,196	)	$	(4,196	)
Total Liabilities:	$	—	$	—	$	(4,196	)	$	(4,196	)

(1)	Included in cash and cash equivalents.

(2)	$2.4 million and $1.8 million is included in accrued expenses and other current liabilities as of September 30, 2019 and December 31, 2018, respectively. $2.4 million is included in non-current liabilities as of December 31, 2018.

Summary of Changes in the Fair Value of Level 3 Contingent Consideration

Changes in the fair value of Level 3 contingent consideration for the nine months ended September 30, 2019 were as follows (in thousands):

	Contingent
	Consideration
Balance at December 31, 2018	$	(4,196	)
Fair value adjustment of contingent purchase price (1)		(57	)
Payment of contingent purchase price		1,769
Foreign exchange effect		41
Balance at September 30, 2019	$	(2,443	)

(1)

This amount was recognized as acquisition and integration costs within the Consolidated Statements of Operations. As of September 30, 2019, the significant unobservable inputs used in the Monte Carlo simulation to fair value the contingent consideration included projected contract bookings, a discount rate of 17.3%, and revenue volatility of 26.6%. Increases or decreases in the inputs would result in a higher or lower fair value measurement.