10-Q

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, DC 20549

FORM 10-Q

(Mark One)

☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended June 30, 2021

OR

☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from                   to

Commission File Number: 001-39965

ON24, INC.

(Exact Name of Registrant as Specified in its Charter)

Delaware	94-3292599
(State or other jurisdiction of incorporation or organization)	(I.R.S. Employer Identification No.)
50 Beale Street, 8th Floor, San Francisco, California	94105
(Address of principal executive offices)	(Zip Code)

Registrant’s telephone number, including area code: (415) 369-8000

Securities registered pursuant to Section 12(b) of the Act:

Title of each class	Trading Symbol(s)	Name of each exchange on which registered
Common Stock, par value $0.0001 per share	ONTF	New York Stock Exchange

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.     Yes  ☐     No  ☒ 

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).     Yes  ☒     No  ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

Large accelerated filer	☐	Accelerated filer	☐
Non-accelerated filer	☒	Smaller reporting company	☐
		Emerging growth company	☒

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).     Yes  ☐    No  ☒

As of August 4, 2021, the registrant had 46,650,980 shares of common stock outstanding.

Table of Contents

		Page
SPECIAL NOTE REGARDING FORWARD-LOOKING STATEMENTS		1
PART I.	FINANCIAL INFORMATION
Item 1.	Financial Statements (Unaudited)	2
	Condensed Consolidated Balance Sheets	2
	Condensed Consolidated Statements of Operations	3
	Condensed Consolidated Statements of Comprehensive Income (Loss)	4
	Condensed Consolidated Statements of Convertible Preferred Stock and Stockholders' Equity (Deficit)	5
	Condensed Consolidated Statements of Cash Flows	7
	Notes to Condensed Consolidated Financial Statements (Unaudited)	8
Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	22
Item 3.	Quantitative and Qualitative Disclosures About Market Risk	33
Item 4.	Controls and Procedures	34
PART II.	OTHER INFORMATION
Item 1.	Legal Proceedings	34
Item 1A.	Risk Factors	34
Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	62
Item 3.	Defaults Upon Senior Securities	62
Item 4.	Mine Safety Disclosures	62
Item 5.	Other Information	62
Item 6.	Exhibits	62
Signatures		64

i

SPECIAL NOTE REGARDING FORWARD-LOOKING STATEMENTS

This Quarterly Report on Form 10-Q, or this Report, contains forward-looking statements that are based on our management’s beliefs and assumptions and on information currently available to our management. The forward-looking statements are contained principally in, but not limited to, the sections titled “Risk Factors,” and “Management’s Discussion and Analysis of Financial Condition and Results of Operations.” Forward-looking statements include all statements that are not historical facts and can be identified by terms such as “anticipates,” “believes,” “could,” “seeks,” “estimates,” “expects,” “intends,” “may,” “plans,” “potential,” “predicts”, “projects,” “should,” “will,” “would” or similar expressions and the negatives of those terms. Forward-looking statements include, but are not limited to, statements about:

• our ability to sustain our recent revenue growth rate in the future, attract new customers and expand sales to existing customers;

• fluctuation in our performance, our history of net losses and expected increases in our expenses;

• competition and technological development in our markets and any decline in demand for our solutions or generally in our markets;

• our ability to expand our sales and marketing capabilities and otherwise manage our growth;

• the impact of the COVID-19 pandemic on our customer growth rate, which may decline in future periods compared to 2020 as the impact of COVID-19 lessens, particularly as more people get vaccinated and our customers and their users consider engaging in in-person marketing activities;

• disruptions, interruptions, outages or other issues with our technology or our use of third-party services, data connectors and data centers;

• the impact of the security incident involving ransomware that we experienced or any other cybersecurity-related attack, significant data breach or disruption of the information technology systems or networks on which we rely;

• our sales cycle, our international expansion and our timing of revenue recognition from our sales;

• interoperability with other devices, systems and applications;

• compliance with data privacy, import and export controls, customs, sanctions and other laws and regulations;

• intellectual property matters, including any infringements of third-party intellectual property rights by us or infringement of our intellectual property rights by third parties; and

• the market for, trading price of and other matters associated with our common stock.

Forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause our actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements. We discuss these risks in greater detail in the section entitled “Risk Factors” and elsewhere in this Report. Given these uncertainties, you should not place undue reliance on these forward-looking statements. Also, forward-looking statements represent our management’s beliefs and assumptions only as of the date of this Report. You should read this Report completely and with the understanding that our actual future results may be materially different from what we expect.

Except as required by law, we assume no obligation to update these forward-looking statements publicly, or to update the reasons actual results could differ materially from those anticipated in these forward-looking statements, even if new information becomes available in the future.

1

PART I—FINANCIAL INFORMATION

Item 1. Financial Statements.

ON24, Inc.

Condensed Consolidated Balance Sheets

(in thousands, except share and per share data)

(Unaudited)

	June 30, 2021			December 31, 2020
Assets
Current assets
Cash and cash equivalents	$	351,727		$	58,243
Marketable investments		44,631			3,000
Accounts receivable, net of allowances and reserves of $2,399 and $2,173 as of June 30, 2021 and December 31, 2020, respectively		38,891			48,617
Deferred contract acquisition costs, current		11,304			10,528
Prepaid expenses and other current assets		11,264			7,079
Total current assets		457,817			127,467
Property and equipment, net		9,775			9,051
Deferred contract acquisition costs, non-current		20,067			18,753
Other long-term assets		902			1,447
Total assets	$	488,561		$	156,718
Liabilities, Convertible Preferred Stock and Stockholders’ Equity (Deficit)
Current liabilities
Accounts payable	$	2,907		$	4,730
Accrued liabilities		19,555			17,439
Deferred revenue		93,899			92,240
Long-term debt, current portion		2,362			2,359
Total current liabilities		118,723			116,768
Long-term debt		3,263			25,727
Other long-term liabilities		3,859			4,022
Total liabilities		125,845			146,517
Commitments and contingencies (See Note 7)
Convertible Class A-1 and Class A-2 preferred stock, $0.0001 par value per share; zero and 21,699,945 shares authorized as of June 30, 2021 and December 31, 2020, respectively; zero and 21,683,548 shares issued and outstanding as of June 30, 2021 and December 31, 2020, respectively; aggregate liquidation preference of zero and $102,776 as of June 30, 2021 and December 31, 2020, respectively		—			83,857
Redeemable convertible Class B and Class B-1 preferred stock, $0.0001 par value per share; zero and 5,543,918 shares authorized as of June 30, 2021 and December 31, 2020, respectively; zero and 5,543,918 shares issued and outstanding as of June 30, 2021 and December 31, 2020, respectively; aggregate liquidation preference of zero and $70,000 as of June 30, 2021 and December 31, 2020, respectively		—			70,000
Stockholders’ equity (deficit)
Common stock, $0.0001 par value per share; 500,000,000 and 50,000,000 shares authorized as of June 30, 2021 and December 31, 2020, respectively; 46,449,556 and 10,896,137 shares issued and outstanding as of June 30, 2021 and December 31, 2020, respectively		5			1
Additional paid-in capital		539,137			27,512
Accumulated deficit		(176,610	)		(171,263	)
Accumulated other comprehensive income		184			94
Total stockholders’ equity (deficit)		362,716			(143,656	)
Total liabilities, convertible preferred stock and stockholders’ equity (deficit)	$	488,561		$	156,718

See accompanying notes to condensed consolidated financial statements.

2

ON24, Inc.

Condensed Consolidated Statements of Operations

(in thousands, except share and per share amounts)

(Unaudited)

	Three Months Ended June 30,						Six Months Ended June 30,
	2021			2020			2021			2020
Revenue:
Subscription and other platform	$	44,377		$	27,096		$	87,287		$	47,023
Professional services		7,741			9,224			14,930			14,043
Total revenue		52,118			36,320			102,217			61,066
Cost of revenue:
Subscription and other platform		8,179			4,824			15,664			8,980
Professional services		3,694			3,138			6,903			5,688
Total cost of revenue		11,873			7,962			22,567			14,668
Gross profit		40,245			28,358			79,650			46,398
Operating expenses:
Sales and marketing		25,465			12,729			49,390			24,739
Research and development		8,162			4,513			16,108			8,612
General and administrative		9,100			4,206			18,868			7,658
Total operating expenses		42,727			21,448			84,366			41,009
Income (loss) from operations		(2,482	)		6,910			(4,716	)		5,389
Interest expense		106			193			337			405
Other (income) expense, net		211			(22	)		327			249
Income (loss) before provision for (benefit from) income taxes		(2,799	)		6,739			(5,380	)		4,735
Provision for (benefit from) income taxes		(282	)		37			(33	)		92
Net income (loss)		(2,517	)		6,702			(5,347	)		4,643
Cumulative preferred dividends allocated to preferred stockholders		—			(1,427	)		(558	)		(2,752	)
Net income (loss) attributable to common stockholders	$	(2,517	)	$	5,275		$	(5,905	)	$	1,891
Net income (loss) per share attributable to common stockholders:
Basic	$	(0.05	)	$	0.14		$	(0.15	)	$	0.05
Diluted	$	(0.05	)	$	0.14		$	(0.15	)	$	0.05
Weighted-average shares used in computing net income (loss) per share attributable to common stockholders:
Basic		46,570,195			9,707,995			39,664,436			9,419,113
Diluted		46,570,195			10,315,294			39,664,436			10,013,791

See accompanying notes to condensed consolidated financial statements.

3

ON24, Inc.

Condensed Consolidated Statements of Comprehensive Income (Loss)

(in thousands)

(Unaudited)

	Three Months Ended June 30,						Six Months Ended June 30,
	2021			2020			2021			2020
Net income (loss)	$	(2,517	)	$	6,702		$	(5,347	)	$	4,643
Other comprehensive income (loss)
Foreign currency translation adjustment, net of tax		114			(2	)		108			54
Unrealized loss on available for sale debt securities, net of tax		(18	)		—			(18	)		—
Total other comprehensive income (loss)		96			(2	)		90			54
Total comprehensive income (loss)	$	(2,421	)	$	6,700		$	(5,257	)	$	4,697

See accompanying notes to condensed consolidated financial statements.

4

ON24, Inc.

Condensed Consolidated Statements of Convertible Preferred Stock and Stockholders’ Equity (Deficit)

(in thousands, except share amounts)

(Unaudited)

	Convertible Preferred Stock				Redeemable convertible preferred stock				Common Stock				Additional paid-in		Accumulated			Accumulated other comprehensive		Total stockholders' equity
	Shares		Amount		Shares		Amount		Shares		Amount		capital		Deficit			income (loss)		(deficit)
Balance as of March 31, 2021		—	$	—		—	$	—		46,321,784	$	5	$	533,783	$	(174,093	)	$	88	$	359,783
Issuance of common stock upon exercise of stock options		—		—		—		—		127,772		—		384		—			—		384
Stock-based compensation expense		—		—		—		—		—		—		4,970		—			—		4,970
Other comprehensive income		—		—		—		—		—		—		—		—			96		96
Net loss		—		—		—		—		—		—		—		(2,517	)		—		(2,517	)
Balance as of June 30, 2021		—	$	—		—	$	—		46,449,556	$	5	$	539,137	$	(176,610	)	$	184	$	362,716

	Convertible Preferred Stock				Redeemable convertible preferred stock				Common Stock				Additional paid-in		Accumulated			Accumulated other comprehensive			Total stockholders' equity
	Shares		Amount		Shares		Amount		Shares		Amount		capital		Deficit			income (loss)			(deficit)
Balance as of March 31, 2020		21,683,548	$	83,857		5,543,918	$	70,000		9,326,967	$	1	$	21,697	$	(194,075	)	$	54		$	(172,323	)
Issuance of common stock upon exercise of stock options		—		—		—		—		860,511		—		1,754		—			—			1,754
Stock-based compensation expense		—		—		—		—		—		—		430		—			—			430
Other comprehensive loss		—		—		—		—		—		—		—		—			(2	)		(2	)
Net income		—		—		—		—		—		—		—		6,702			—			6,702
Balance as of June 30, 2020		21,683,548	$	83,857		5,543,918	$	70,000		10,187,478	$	1	$	23,881	$	(187,373	)	$	52		$	(163,439	)

5

ON24, Inc.

Condensed Consolidated Statements of Convertible Preferred Stock and Stockholders’ Equity (Deficit)

(in thousands, except share amounts)

(Unaudited)

	Convertible Preferred Stock						Redeemable convertible preferred stock						Common Stock				Additional paid-in			Accumulated			Accumulated other comprehensive		Total stockholders' equity
	Shares			Amount			Shares			Amount			Shares		Amount		capital			Deficit			income (loss)		(deficit)
Balance as of December 31, 2020		21,683,548		$	83,857			5,543,918		$	70,000			10,896,137	$	1	$	27,512		$	(171,263	)	$	94	$	(143,656	)
Conversion of convertible preferred stock and redeemable convertible preferred stock to common stock upon initial public offering		(21,683,548	)		(83,857	)		(5,543,918	)		(70,000	)		27,227,466		3		153,854			—			—		153,857
Issuance of common stock upon initial public offering, net of underwriting discounts and other offering costs		—			—			—			—			7,599,928		1		348,013			—					348,014
Issuance of common stock upon exercise of stock options		—			—			—			—			726,025		—		1,795			—			—		1,795
Payment for employee tax withheld upon exercising stock options		—			—			—			—			—		—		(2,001	)		—			—		(2,001	)
Stock-based compensation expense		—			—			—			—			—		—		9,964			—			—		9,964
Other comprehensive income		—			—			—			—			—		—		—			—			90		90
Net loss		—			—			—			—			—		—		—			(5,347	)		—		(5,347	)
Balance as of June 30, 2021		—		$	—			—		$	—			46,449,556	$	5	$	539,137		$	(176,610	)	$	184	$	362,716

	Convertible Preferred Stock				Redeemable convertible preferred stock				Common Stock				Additional paid-in		Accumulated			Accumulated other comprehensive			Total stockholders' equity
	Shares		Amount		Shares		Amount		Shares		Amount		capital		Deficit			income (loss)			(deficit)
Balance as of December 31, 2019		21,683,548	$	83,857		5,543,918	$	70,000		8,953,967	$	1	$	20,809	$	(192,016	)	$	(2	)	$	(171,208	)
Issuance of common stock upon exercise of stock options		—		—		—		—		1,233,511		—		2,239		—			—			2,239
Stock-based compensation expense		—		—		—		—		—		—		833		—			—			833
Other comprehensive income		—		—		—		—		—		—		—		—			54			54
Net income		—		—		—		—		—		—		—		4,643			—			4,643
Balance as of June 30, 2020		21,683,548	$	83,857		5,543,918	$	70,000		10,187,478	$	1	$	23,881	$	(187,373	)	$	52		$	(163,439	)

See accompanying notes to condensed consolidated financial statements.

6

ON24, Inc.

Condensed Consolidated Statements of Cash Flows

(In thousands)

(Unaudited)

	Six Months Ended June 30,
	2021			2020
Cash flows from operating activities:
Net income (loss)	$	(5,347	)	$	4,643
Adjustments to reconcile net income (loss) to net cash provided by operating activities:
Depreciation and amortization		2,294			1,189
Stock-based compensation expense		9,964			833
Amortization of deferred contract acquisition cost		7,502			4,345
Provision for allowance for doubtful accounts and billing reserve		1,209			797
Other		25			—
Changes in operating assets and liabilities:
Accounts receivable		8,517			(18,560	)
Deferred contract acquisition cost		(9,592	)		(11,098	)
Prepaid expenses and other assets		(7,078	)		(783	)
Accounts payable		(1,441	)		238
Accrued liabilities		3,026			2,154
Deferred revenue		1,659			32,023
Other long-term liabilities		(163	)		(421	)
Net cash provided by operating activities		10,575			15,360
Cash flows from investing activities:
Purchase of property and equipment		(1,734	)		(288	)
Purchase of marketable securities		(44,481	)		(5,000	)
Proceeds from maturity of marketable securities		3,164			5,000
Net cash used in investing activities		(43,051	)		(288	)
Cash flows from financing activities:
Proceeds from initial public offering, net of underwriting discounts		353,397			—
Proceeds from issuance of common stock resulting from exercise of stock options		1,795			2,239
Payment of tax withholding obligations related to net share settlements of stock options exercise		(2,001	)		—
Proceeds from long-term debt		—			12,179
Repayments of long-term debt		(22,478	)		(12,084	)
Repayment of capital lease obligations		(1,384	)		(563	)
Payments of offering costs		(3,481	)		—
Net cash provided by financing activities		325,848			1,771
Effect of exchange rate changes on cash, cash equivalents and restricted cash		108			54
Net increase in cash, cash equivalents and restricted cash		293,480			16,897
Cash, cash equivalents and restricted cash, beginning of period		58,345			18,933
Cash, cash equivalents and restricted cash, end of period	$	351,825		$	35,830
Supplemental disclosures of cash flow information:
Cash paid for taxes, net of refunds	$	142		$	50
Cash paid for interest	$	403		$	496
Supplemental disclosures of noncash investing and financing activities:
Equipment acquired under capital leases	$	1,586		$	2,520
Equipment purchased funded by liabilities	$	391		$	179
Property and equipment purchased not yet paid	$	132		$	465
Conversion of convertible preferred stock and redeemable convertible preferred stock to common stock	$	153,857		$	—
Reconciliation of cash, cash equivalents, and restricted cash to the condensed consolidated balance sheets (in thousands):
Cash and cash equivalents	$	351,727		$	35,743
Restricted cash included in other assets, non-current		98			87
Total cash, cash equivalent, and restricted cash	$	351,825		$	35,830

See accompanying notes to condensed consolidated financial statements.

7

ON24, Inc.

Notes to Condensed Consolidated Financial Statements (Unaudited)

Note 1. Description of Business and Significant Accounting Policies

Description of Business

ON24, Inc. and its subsidiaries (together, ON24 or the Company) provides a leading, cloud-based digital experience platform that enables businesses to convert customer engagement into revenue through interactive webinar experiences, virtual event experiences and multimedia content experiences. The Company’s platform offers a portfolio of interactive, personalized and content-rich digital experience products that creates and captures actionable, real-time data at scale from millions of professionals every month to provide businesses with buying signals and behavioral insights to efficiently convert prospects into customers. The Company was incorporated in the state of Delaware in January 1998 as NewsDirect, Inc. and in December 1998 changed its name to ON24, Inc. The Company is headquartered in San Francisco, California.

Initial Public Offering

On February 5, 2021, the Company closed its initial public offering (IPO) of 7,599,928 shares of its common stock at a public offering price of $50 per share for net proceeds of approximately $348.0 million, after deducting the underwriting discount of approximately $26.6 million and other offering costs of approximately $5.4 million. The shares of common stock sold in the IPO and the net proceeds from the IPO included the full exercise of the underwriters’ option to purchase additional shares.

Upon the closing of the IPO, all of the Company's outstanding shares of Class A-1 and Class A-2 convertible preferred stock and Class B and Class B-1 redeemable convertible preferred stock were automatically converted into an aggregate of 27,227,466 shares of common stock on a one-for-one basis.

Basis of Presentation

The accompanying condensed consolidated financial statements have been prepared in accordance with generally accepted accounting principles in the United States of America (U.S. GAAP) and applicable rules and regulations of the Securities and Exchange Commission (SEC) for interim financial reporting. Certain information and note disclosures included in the Company’s annual financial statements prepared in accordance with GAAP have been condensed or omitted pursuant to such rules and regulations. Therefore, these condensed consolidated financial statements should be read in conjunction with the consolidated financial statements and notes included in the Company’s annual report on Form 10-K for the year ended December 31, 2020. In the opinion of management, the condensed consolidated financial statements reflect all adjustments that are normal and recurring in nature and necessary for fair financial statement presentation. All intercompany transactions and balances have been eliminated in consolidation.

The results of operations for the three and six months ended June 30, 2021 are not necessarily indicative of the operating results anticipated for the full year.

Certain prior period amounts have been reclassified on the condensed consolidated statements of cash flows to conform to the current year's presentation. None of these reclassifications had a material impact to the Company’s condensed consolidated financial statements.

8

Use of Estimates

The preparation of condensed consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the condensed consolidated financial statements and the reported amounts of revenue and expenses during the reporting period. Significant items subject to such estimates and assumptions include, but are not limited to, the estimated expected benefit period for deferred contract acquisition costs, the determination of standalone selling price for the Company’s performance obligations, the allowance for doubtful accounts and billing reserve, the useful lives of long-lived assets, the estimated value of common stock prior to the IPO and other assumptions used to measure stock-based compensation, the valuation of deferred income tax assets and uncertain tax positions. Actual results could differ from those estimates.

Significant Accounting Policies

Effective January 1, 2021, the Company elected to account for forfeited awards as they occur. Prior to 2021, the Company estimated the number of awards expected to be forfeited at the time of grant and revised its estimates in subsequent periods if the actual forfeitures differed from the estimates. The impact of the change was not material. There has been no material change to the Company’s significant accounting policies during the three and six months ended June 30, 2021.

Deferred Offering Costs

Deferred offering costs consist primarily of accounting, legal and other fees incremental and directly related to the Company’s IPO. Upon closing of the IPO on February 5, 2021, the deferred offering costs of $5.4 million were reclassified into stockholders' equity (deficit) and recorded against the proceeds from the offering. Deferred offering costs as of December 31, 2020 was $3.2 million within prepaid expenses and other current assets on the condensed consolidated balance sheets.

Stock-Based Compensation

Stock-based compensation expense related to stock awards is recognized based on the fair value of the awards granted. The fair value of each option award is estimated on the grant date using the Black-Scholes option pricing model. The Black-Scholes option pricing model requires the input of highly subjective assumptions, including the fair value of the underlying common stock, the risk-free interest rates, the expected term of the option, the expected volatility of the price of the Company’s common stock and the expected dividend yield of the Company’s common stock. The assumptions used to determine the fair value of the option awards represent management’s best estimates. These estimates involve inherent uncertainties and application of management’s judgement. The related stock-based compensation expense is recognized on a straight-line basis over the requisite service period for each separately vesting portion of the award, which is generally four years. Effective January 1, 2021, the Company elected to account for forfeited awards as they occur. Prior to 2021, the Company estimated the number of awards expected to be forfeited at the time of grant and revised its estimates in subsequent periods if the actual forfeitures differed from the estimates. This change in accounting policy did not have a material impact on the Company’s condensed consolidated financial statements.

Recently Adopted Accounting Standards

In December 2019, the FASB issued ASU No. 2019-12, Income Taxes Topic 740: Simplifying the Accounting for Income Taxes, which removes a variety of exceptions within the framework of ASC 740. These include the exception to the incremental approach for intraperiod tax allocation in the event of a loss from continuing operations and income or a gain from other items (such as other comprehensive income), and the exception to using general methodology for the interim period tax accounting for year-to-date losses that exceed anticipated losses. For public business entities, ASU No. 2019-12 is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2020. For all other entities, ASU No. 2019-12 is effective for fiscal years beginning after December 15, 2021, and interim periods within fiscal years beginning after December 15, 2022. Early adoption of the amendments is permitted, including adoption in any interim period for (1) public business entities for periods for which financial statements have not yet been issued and (2) all other entities for periods for which financial statements have not yet been made available for issuance. The adoption of this standard did not have a material impact on its condensed consolidated financial statements.

9

In August 2018, the FASB issued ASU No. 2018-15, Intangibles-Goodwill and Other-Internal-Use Software (Subtopic 350-40): Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement that is a Service Contract. This new standard requires an entity (customer) in a hosting arrangement that is a service contract to follow the guidance in Subtopic 350-40 to determine which implementation costs to capitalize as an asset related to the service contract and which costs to expense. Costs for implementation activities in the application development stage can be capitalized depending on the nature of the costs, while costs incurred during the preliminary project and post-implementation stages are expensed as the activities are performed. The costs capitalized are expensed over the term of the hosting arrangement. The amendments in ASU No. 2018-15 also require the entity to present the expense related to the capitalized implementation costs in the same line item in the statement of income as the fees associated with the hosting element (service) of the arrangement and classify payments for capitalized implementation costs in the statement of cash flows in the same manner as payments made for fees associated with the hosting element. ASU No. 2018-15 is effective for public business entities for fiscal years beginning after December 15, 2019, and interim periods within those fiscal years. For all other entities, ASU No. 2018-15 is effective for annual reporting periods beginning after December 15, 2020, and interim periods within annual periods beginning after December 15, 2021. ASU No. 2018-15 should be applied either retrospectively or prospectively to all implementation costs incurred after the date of adoption. The Company adopted ASU No. 2018-15 effective January 1, 2021 using a prospective approach. The adoption of this standard did not have a material impact on its condensed consolidated financial statements.

Note 2. Revenue

Disaggregation of Revenue

The following table depicts the disaggregation of revenue by geographic region based on the shipping address of customers (in thousands):

	Three Months Ended June 30,				Six Months Ended June 30,
	2021		2020		2021		2020
United States	$	38,336	$	28,075	$	75,290	$	47,505
EMEA		9,362		5,976		18,858		9,826
Other		4,420		2,269		8,069		3,735
Total revenue	$	52,118	$	36,320	$	102,217	$	61,066

The following table summarizes the foreign countries which contributed 10% or more of the total revenue (in thousands):

	Three Months Ended June 30,				Six Months Ended June 30,
	2021	2020			2021			2020
United Kingdom	10%		10	%		11	%		10	%

.

No single customer accounted for 10% or more of the total revenue during the three and six months ended June 30, 2021 and 2020. Additionally, no single customer accounted for 10% or more of accounts receivable as of June 30, 2021 and December 31, 2020.

The following table summarizes revenue by digital experience platform and Legacy offering (in thousands):

	Three Months Ended June 30,				Six Months Ended June 30,
	2021		2020		2021		2020
Digital experience platform - subscription and other platform	$	44,367	$	26,397	$	87,225	$	45,713
Digital experience platform - professional services		7,741		9,120		14,905		13,522
Legacy - subscription and other platform		10		699		62		1,310
Legacy - professional services		—		104		25		521
Total revenue	$	52,118	$	36,320	$	102,217	$	61,066

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Contract Balances

Accounts receivable:  The Company records accounts receivable when the Company has a contractual right to consideration. In some arrangements, a right to consideration for the Company’s performance under the customer contract may occur before invoicing to the customer, resulting in an unbilled receivable. As of June 30, 2021 and December 31, 2020, unbilled receivables were included within accounts receivable, net of allowance for doubtful accounts on the condensed consolidated balance sheets and were not material.

Contract assets:  The Company records a contract asset when the Company has satisfied a performance obligation but does not yet have an unconditional right to consideration. Contract assets are included in prepaid expenses and other current assets in the condensed consolidated balance sheets and were not material as of June 30, 2021 and December 31, 2020.

Contract liabilities:  The Company defers its revenue when the Company has the right to invoice in advance of performance under a customer contract. The current portion of deferred revenue balances is recognized during the following 12-month period and the remaining portion is recorded as noncurrent, which is included in other long-term liabilities on the consolidated balance sheet. The amount of revenue recognized during the three and six months ended June 30, 2021 that was included in deferred revenue at the beginning of the period was $26.0 million and $65.4 million, respectively.

Remaining Performance Obligations

The terms of the Company’s subscription agreements are primarily annual and, to a lesser extent, multi-year. The Company may bill for the full term in advance or on an annual, quarterly or monthly basis, depending on the terms of the agreement. As of June 30, 2021, the aggregate amount of the transaction price allocated to remaining performance obligations was $155.4 million, which consists of both billed consideration in the amount of $95.1 million and unbilled consideration in the amount of $60.3 million that the Company expects to recognize as revenue. As of June 30, 2021, the Company expects to recognize 80% of its remaining performance obligations as revenue over the subsequent twelve months, and the remainder thereafter.

Costs to Obtain a Contract

The Company capitalizes sales commissions and associated payroll taxes paid to internal sales personnel and third-party referral fees that are incremental costs resulting from obtaining a contract with a customer. These costs are recorded as deferred contract acquisition costs on the condensed consolidated balance sheets. The Company determines whether costs should be deferred based on its sales compensation plans and if the commissions are incremental and would not have occurred absent the customer contract.

Sales commissions paid upon the initial acquisition of a customer contract are amortized over an estimated period of benefit of five years, as the Company specifically anticipates renewals of customer contracts and commissions paid on renewal contracts are not commensurate with commissions paid on new customer contracts. Sales commissions paid upon renewal of customer contracts are amortized over the contractual renewal term. Amortization is recognized on a straight-line basis commensurate with the pattern of revenue recognition. Sales commissions paid related to professional services are amortized over the expected service period. The Company determines the period of benefit for commissions paid for the acquisition of the initial customer contract by taking into consideration the initial estimated customer life and the technological life of its platform and related significant features. Amortization of deferred contract acquisition costs was $3.8 million and $7.5 million for the three and six months ended June 30, 2021, respectively, and $2.4 million and $4.3 million for the three and six months ended June 30, 2020, respectively. Amortization of deferred contract acquisition costs is included in sales and marketing expense in the condensed consolidated statements of operations. The Company has no impairment losses relating to deferred contract acquisition costs during the periods presented.

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Note 3. Marketable Securities

 Marketable securities consisted of the following as of the periods presented (in thousands):

	June 30, 2021
	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Fair Value
Marketable Securities
U.S. Treasury securities	$	21,078	$	1	$	(5	)	$	21,074
Certificates of deposit		945		—		—			945
Corporate debt securities		15,281		—		(9	)		15,272
Commercial papers		3,245		—		—			3,245
Asset-backed securities		4,100		—		(5	)		4,095
Total marketable securities	$	44,649	$	1	$	(19	)	$	44,631

	December 31, 2020
	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value
Marketable Securities
Certificates of deposit	$	3,000	$	—	$	—	$	3,000
Total marketable securities	$	3,000	$	—	$	—	$	3,000

The Company’s marketable securities have been classified as available for sale. All available for sale debt securities are available for use in current operations. Accordingly, they have been classified as current.

As of June 30, 2021, the Company had no marketable securities in a continuous loss position for 12 months or more. As of December 31, 2020, the Company had no marketable securities in a loss position.

The Company reviews the individual securities that have unrealized losses on a regular basis to evaluate whether any security has experienced other-than-temporary decline in fair value below amortized cost. The Company evaluates, among other factors, whether the Company has the intention to sell any of these marketable securities and whether it is more likely than not that the Company will be required to sell any securities before recovery of the amortized cost basis. Since the Company has the ability to hold its investments until maturity, and the decline in fair value was not due to any credit-related factor, no decline was deemed to be other-than-temporary.

The Company had no realized gains or losses from marketable securities that were reclassified out of accumulated other comprehensive income for the three and six months ended June 30, 2021 and 2020.

The following summarizes the remaining contractual maturities of the Company’s marketable securities as of June 30, 2021:

	Fair Value
One year or less	$	12,371
Over one year through five years		32,260
Total marketable securities	$	44,631

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Note 4. Fair Value Measurements

The following tables summarizes our financial instruments recorded at fair value on a recurring basis by level within the fair value hierarchy as of the periods presented:

	June 30, 2021
	Level 1		Level 2		Level 3		Total
Cash equivalents
Money market funds	$	325,053	$	—	$	—	$	325,053
Marketable Securities
U.S. Treasury securities		—		21,074		—		21,074
Certificates of deposit		—		945		—		945
Corporate debt securities		—		15,272		—		15,272
Commercial papers		—		3,245		—		3,245
Asset-backed securities		—		4,095		—		4,095
Total cash equivalents and marketable securities	$	325,053	$	44,631	$	—	$	369,684

	December 31, 2020
	Level 1		Level 2		Level 3		Total
Cash equivalents
Money market funds	$	2,027	$	—	$	—	$	2,027
Marketable Securities
Certificates of deposit		3,000		—		—		3,000
Total cash equivalents and marketable securities	$	5,027	$	—	$	—	$	5,027

As of June 30, 2021, the Company classified its highly liquid money market funds within level 1 of the fair value hierarchy because they are valued based on quoted market prices in active markets. The Company classified its U.S. Treasury securities, certificates of deposit, commercial paper, corporate debt securities and asset-backed securities within level 2 of the fair value hierarchy because they are valued using inputs other than quoted prices that are directly or indirectly observable in the market, including readily available pricing sources for the identical underlying security, which may not be actively traded.

As of December 31, 2020, the Company classified its highly liquid money market funds and certificates of deposit within level 1 of the fair value hierarchy because they are valued based on quoted market prices in active markets.

Note 5. Balance Sheets Components

Prepaid Expenses and Other Current Assets

Prepaid expenses and other current assets consisted of the following as of the periods presented (in thousands):

	June 30, 2021		December 31, 2020
Deferred offering costs	$	—	$	3,220
Prepaid expenses		7,822		2,848
Other receivables		2,802		873
Other		640		138
Prepaid expenses and other current assets	$	11,264	$	7,079

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Property and Equipment, Net

Property and equipment, net consisted of the following as of the periods presented (in thousands):

	June 30, 2021			December 31, 2020
Computer, equipment and software(1)	$	27,152		$	24,175
Furniture and fixtures		1,092			1,108
Leasehold improvements		3,710			3,708
Property and equipment, gross		31,954			28,991
Less: Accumulated depreciation and amortization(2)		(22,179	)		(19,940	)
Property and equipment, net	$	9,775		$	9,051

(1) Includes assets recorded under capital leases of $7.1 million and $6.9 million as of June 30, 2021 and December 31, 2020, respectively.

(2) Includes amount for assets recorded under capital leases of $2.5 million and $2.2 million as of June 30, 2021 and December 31, 2020, respectively.

Depreciation and amortization expense was $1.1 million and $2.3 million for the three and six months ended June 30, 2021, respectively, and $0.7 million and $1.2 million for the three and six months ended June 30, 2020, respectively.

The following table presents the property and equipment, net of depreciation and amortization, by geographic region (in thousands):

	June 30, 2021		December 31, 2020
United States	$	9,404	$	8,698
EMEA		308		308
Other		63		45
Total property and equipment, net	$	9,775	$	9,051

Accrued Liabilities

Accrued liabilities consisted of the following as of the periods presented (in thousands):

	June 30, 2021		December 31, 2020
Accrued bonus	$	2,717	$	2,785
Accrued vacation		3,345		2,724
Accrued commissions		1,873		3,149
Accrued ESPP		1,719		—
Sales and other tax liabilities		658		1,086
Other		9,243		7,695
Accrued liabilities	$	19,555	$	17,439

Other Long-term Liabilities

Other long-term liabilities consisted of the following as of the periods presented (in thousands):

	June 30, 2021		December 31, 2020
Deferred rent liabilities	$	2,317	$	2,543
Deferred revenue		1,193		1,152
Other		349		327
Other long-term liabilities	$	3,859	$	4,022

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Note 6. Debt

Debt consisted of the following as of the periods presented (in thousands):

	June 30, 2021			December 31, 2020
Revolving line of credit	$	—		$	22,350
Equipment loan agreements		701			438
Capital leases		4,924			5,298
Total debt		5,625			28,086
Less: Current portion		(2,362	)		(2,359	)
Total long-term debt	$	3,263		$	25,727

Revolving Line of Credit

The Company has a revolving line of credit with a financing institution, which provides the Company the ability to borrow up to $30.0 million with a letter of credit sublimit of $3.9 million and a credit card sublimit of $0.7 million. The revolving line of credit is secured by a security interest on substantially all of the Company’s assets and is subject to certain financial covenants and restrictions, including the requirements of maintaining at all times a minimum of $5.0 million in cash at the institution as well as achieving certain amounts of operating income and deferred revenue for the trailing 12 months as defined by the agreement. In addition, the revolving line of credit agreement restricts the Company from paying dividends without prior approval from the financing institution. Interest on the revolving line of credit was the prime rate, as published by the Wall Street Journal (Prime Rate), plus 0.50% through July 2020 and the Prime Rate plus 0.75% upon the effective date of the amended and restated agreement entered in July 2020 as discussed below. The Prime Rate was 3.25% at June 30, 2021 and 2020. As of June 30, 2021, the Company had an outstanding standby letter of credit of $1.2 million as a guarantee for a leased space. The unused letter of credit sublimit was $2.7 million as of June 30, 2021.

In July 2020, the Company entered into an amended and restated agreement to extend the maturity date of its existing revolving line of credit to July 31, 2022 and amend the applicable margin on interest rate from 0.5% to 0.75%. Additionally, the Company is required to pay quarterly in arrears an unused facility fee of 0.25% per annum of the difference between the revolving line of credit and the average principal balance of the obligations during the applicable quarter. Other than these changes, the terms of the revolving line of credit agreement are substantially similar to those of the facility before the amendment.

The Company repaid in full the outstanding principal balance of its revolving line of credit of $22.4 million in the first quarter of 2021.

Equipment Loan Agreements

The Company has entered into various equipment loan agreements that allow it to obtain financing to purchase equipment. Borrowings are secured by the equipment purchased. The equipment loan agreements are repaid over a period up to 36 months beginning from the date of the advance at an interest rate ranging from 5.8% to 10.1%. As of June 30, 2021 and December 31, 2020, the Company owed $0.7 million and $0.4 million, respectively, on the equipment loans.

Capital Leases

The Company has entered into various noncancelable capital lease agreements for its equipment with lease periods expiring between 2021 and 2024.

15

As of June 30, 2021, future payments under the equipment loan agreements and capital lease obligations, are as follows (in thousands):

	Equipment Loans		Capital Leases		Total
Remainder of 2021	$	120	$	1,101	$	1,221
2022		274		2,302		2,576
2023		236		1,769		2,005
2024		71		71		142
Total payments		701		5,243		5,944
Less: Amount representing interest		—		319		319
Total payments, net of interest	$	701	$	4,924	$	5,625

Note 7. Commitment and Contingencies

Contingencies

The Company has agreed to indemnify its directors and executive officers for costs associated with any fees, expenses, judgments, fines, and settlement amounts incurred by any of these persons in any action or proceeding to which any of those persons is, or is threatened to be, made a party by reason of the person’s service as a director or officer, including any action by the Company, arising out of that person’s services as the Company’s director or officer or that person’s services provided to any other company or enterprise at the Company’s request. The Company maintains director and officer insurance coverage that may enable the Company to recover a portion of any future amounts paid.

FASB ASC 450-20, Contingencies, sets forth the rules for accounting for uncertain tax positions for taxes not based on income. When a loss contingency exists, the likelihood of the incurrence of the liability can range from probable to remote. The Company believes it is reasonably possible that a loss will result from the sales and use tax assessments in the range of zero to $1.8 million. The Company has not recorded an accrual as of June 30, 2021 and December 31, 2020.

Legal Proceedings

In the ordinary course of business, the Company may be subject from time to time to various proceedings, lawsuits, disputes or claims. Although the Company cannot predict with assurance the outcome of any litigation, the Company does not believe there are currently any such actions that, if resolved unfavorably, would have a material impact on its financial condition, results of operations or cash flows.

Note 8. Convertible Preferred Stock, Stockholders’ Equity (Deficit) and Equity Incentive Plan

Preferred Stock

In connection with the IPO, the Company’s amended and restated certificate of incorporation became effective, which authorized the issuance of 10,000,000 shares of undesignated preferred stock with a par value of $0.0001 per share. The Company’s board of directors is authorized to designate the rights, preferences, privileges and restrictions of the preferred stock from time to time.

Convertible Preferred Stock

Upon the closing of the IPO in February 2021, all 21,683,548 shares of the Company's outstanding Class A-1 and Class A-2 convertible preferred stock and 5,543,918 shares of Class B and Class B-1 redeemable convertible preferred stock were automatically converted into an aggregate of 27,227,466 shares of common stock on a one-for-one basis.

Common Stock

The amended and restated certificate of incorporation authorized the issuance of 500,000,000 shares of common stock, $0.0001 par value per share. Holders of common stock are entitled to one vote per share.

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Equity Incentive Plan

In February 2021 in connection with the IPO, the Company adopted the 2021 Equity Incentive Plan (2021 Plan), which serves as a successor to and continuation of the 2014 Plan and 2000 Plan, collectively the “Predecessor Plans.” All shares that remained available for issuance under the Predecessor Plans as of the closing of the IPO, or that may expire or be canceled or forfeited following the closing of the IPO, become available for future issuance under the 2021 Plan.

Under the 2021 Plan, the Company may grant up to 8,282,313 shares of common stock which includes 6,400,000 shares of common stock reserved for issuance under the 2021 Plan, plus an additional 1,882,313 shares reserved for issuance under the 2014 Plan that the Company expects to become available for future issuance under the 2021 Plan. In addition, the number of shares reserved for issuance under the 2021 Plan cumulatively increases on January 1, 2022 and on each subsequent January 1 through and including January 1, 2031, by the lesser of (a) 5% of the number of shares of stock issued and outstanding on the immediately preceding December 31, or (b) an amount determined by the Company’s board of directors. The 2021 Plan provides for the grant of stock options, stock appreciation rights, restricted stock awards, restricted stock units, performance shares, performance units, cash-based awards and other stock-based awards. The plan administrator determines the term of stock options granted under the 2021 Plan, up to a maximum of 10 years.

Grant Activities

Stock Options

A summary of stock option activity under the Company’s equity incentive plans and related information is as follows:

	Options Outstanding
	Number of Shares			Weighted- Average Exercise Price		Weighted- Average Remaining Contractual Life (in years)		Aggregate Intrinsic Value (in thousands)
Balance as of December 31, 2020		11,947,731		$	4.85
Granted		481,403			50.12
Exercised		(766,072	)		2.34				37,279
Cancelled and forfeited		(202,556	)		17.86
Balance as of June 30, 2021		11,460,506		$	6.69		7.0	$	335,859
Vested and exercisable		6,317,999		$	2.62		5.3	$	207,698

Restricted Stock Units (RSUs)

A summary of RSU activity under the Company’s equity incentive plans and related information is as follows:

	RSUs Outstanding
	Number of Shares			Weighted-Average Grant Date Fair Value
Unvested balance as of December 31, 2020		—		$	—
Granted		455,350			37.36
Cancelled and forfeited		(26,800	)		74.50
Unvested balance as of June 30, 2021		428,550		$	35.03

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Restricted Stock Unit with Performance Conditions

In June 2014, the Company’s board of directors approved the issuance of 187,500 restricted stock units to an executive officer with a grant date fair value of $0.5 million. No monetary payment was required as a condition to receiving the shares of stock. The award provided that the restricted stock units would vest upon the satisfaction of the following two conditions occurring before June 17, 2021: (i) satisfaction of a service condition of one year and (ii) the occurrence of a liquidity event defined as a change of control or an IPO. The grant date fair value of the awards was not recognized as compensation expense until the performance criteria was probable.

Upon the consummation of the Company’s IPO in February 2021, these restricted stock units fully vested and the related stock-based compensation expense of $0.5 million was fully recognized. In accordance with the terms of the grant agreement, these restricted stock units will be settled after the expiration of the lock-up period in the fourth quarter of 2021.

Employee Stock Purchase Plan

In January 2021, the Company’s board of directors adopted the 2021 Employee Stock Purchase Plan (ESPP), which became effective in connection with the Company’s IPO. A total of 1,300,000 shares of common stock were initially reserved for issuance under the ESPP. The number of shares reserved for issuance cumulatively increases automatically on January 1, 2022 and on each subsequent January 1, through and including January 1, 2031, by the lesser of (a) 1% of the number of shares of stock issued and outstanding on the immediately preceding December 31, (b) 1,300,000 shares, or (c) an amount determined by the Company’s board of directors.

 All eligible employees may participate in the ESPP and may contribute up to 20% of their earnings (as defined in the ESPP) for the purchase of the Company’s common stock under the ESPP. Unless otherwise determined by the Company’s board of directors, common stock will be purchased for the accounts of employees participating in the ESPP at a price per share equal to the lesser of (1) 85% of the fair market value of a share of the Company’s common stock on the first date of an offering or (2) 85% of the fair market value of a share of the Company’s common stock on the date of purchase. Offering periods generally start on the first trading day on or after May 16 and November 16 of each year, except for the first offering period, which commenced on the effective date of the Company’s IPO and will end on November 15, 2021. As of June 30, 2021, no shares of common stock have been purchased under the ESPP.

Fair Value Determination

The Black-Scholes assumptions used to value the employee options and the ESPP purchase right at the grant dates are as follows:

Employee Stock Options

	Three Months Ended June 30,						Six Months Ended June 30,
	2021			2020			2021			2020
Expected term	5.92 years	-	6.03 years	6.25 years			5.92 years	-	6.07 years	6.25 years
Expected volatility	54.82%	-	54.98%	41.60%			53.82%	-	54.98%	41.60%
Risk-free interest rate	0.94%	-	0.96%	0.42%	-	0.46%	0.62%	-	0.96%	0.42%	-	1.70%
Dividend yield	— %			— %			— %			— %

ESPP

	Three Months Ended June 30, 2021			Six Months Ended June 30, 2021
Expected term	0.38 years			0.38 years	-	0.63 years
Expected volatility		60.0	%	60.0%	-	61.0%
Risk-free interest rate		0.06	%	0.06%
Dividend yield		—	%	— %

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These assumptions and estimates were determined as follows:

• Fair Value of Common Stock.  Prior to the Company’s IPO, the fair value was determined by the Company’s board of directors, with input from management and valuation reports prepared by third-party valuation specialists. Stock-based compensation for financial reporting purposes is measured based on updated estimates of fair value when appropriate, such as when additional relevant information related to the estimate becomes available in a valuation report issued as of a subsequent date. For valuations after the consummation of the Company’s IPO, the fair value of each share of underlying common stock is based on the closing price of the Company’s common stock as reported on the date of the grant on the New York Stock Exchange.

• Risk-Free Interest Rate. The risk-free interest rate for the expected term of the options is based on the U.S. Treasury yield curve in effect at the time of the grant.

• Expected Term. The expected term of options represents the period of time that options are expected to be outstanding. The Company’s historical stock option exercise experience does not provide a reasonable basis upon which to estimate an expected term due to a lack of sufficient data. For stock options granted to employees, the Company estimates the expected term by using the simplified method. The simplified method calculates the expected term as the average of the time-to-vesting and the contractual life of the options. For stock options granted to non-employees, the expected term equals the contractual term of the option. With respect to the ESPP, the expected term is the length of purchase period.

• Expected Volatility. As the Company has a short trading history for its common stock, the expected volatility is estimated by taking the average historic price volatility for industry peers, consisting of several public companies in its industry that are similar in size, stage of life cycle, or financial leverage, over a period equivalent to the expected term of the awards.

• Expected Dividend Yield. The Company has not declared or paid any cash dividends and does not presently plan to pay cash dividends in the foreseeable future. As a result, an expected dividend yield of zero percent was used.

Stock-Based Compensation

Effective January 1, 2021, the Company elected to account for forfeited awards as they occur.

The stock-based compensation expense by line item in the accompanying condensed consolidated statements of operations is summarized as follows (in thousands):

	Three Months Ended June 30,				Six Months Ended June 30,
	2021		2020		2021		2020
Cost of revenue
Subscription and other platform	$	346	$	24	$	583	$	47
Professional services		77		5		139		9
Total cost of revenue		423		29		722		56
Sales and marketing		1,571		147		3,263		288
Research and development		862		62		1,644		119
General and administrative		2,114		192		4,335		370
Total stock-based compensation expense	$	4,970	$	430	$	9,964	$	833

As of June 30, 2021, unrecognized stock-based compensation expense by award type and their weighted-average recognition periods are as follows (in thousands, except years):

	Stock Option		RSU		ESPP
Unrecognized stock-based compensation expense	$	58,652	$	14,566	$	402
Weighted-average amortization period	3.35 years		3.68 years		0.38 years

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Note 9. Income Taxes

The Company’s income tax expense (benefit) was as follows (in thousands):

	Three Months Ended June 30,					Six Months Ended June 30,
	2021			2020		2021			2020
Provision for (benefit from) income taxes	$	(282	)	$	37	$	(33	)	$	92

The Company’s provision for (benefit from) income taxes for interim periods is determined using an estimate of its annual effective tax rate, adjusted for discrete items, if any. The Company updates its estimate of the annual effective tax rate and makes a year-to-date adjustment to the provision quarterly. Benefit from income taxes for the three and six months ended June 30, 2021 increased by $0.3 million and $0.1 million, respectively, compared to the three and six months ended June 30, 2020. The change in benefit from income taxes for each respective period was primarily driven by the tax benefits associated with the exercise of stock options in a foreign jurisdiction.

The Company regularly performs an assessment on the likelihood of realizing benefits of its deferred tax assets. As of June 30, 2021, the Company recorded a valuation allowance against its U.S. deferred tax assets based on available evidence. However, if there are favorable changes to actual operating results or to projections of future income, the Company may determine that it is more likely than not that such deferred tax assets may be realizable.

Utilization of net operating loss carryforwards, tax credits and other attributes may be subject to future annual limitations due to the ownership change limitations provided by Section 382 of the Internal Revenue Code and similar state provisions.

Note 10. Net Income (Loss) Per Share Attributable to Common Stockholders

The following tables sets forth the computation of basic and diluted net loss per share attributable to common stockholders for the periods presented (in thousands, except share and per share data):

	Three Months Ended June 30,						Six Months Ended June 30,
Basic net income (loss) per share	2021			2020			2021			2020
Net income (loss)	$	(2,517	)	$	6,702		$	(5,347	)	$	4,643
Cumulative preferred dividends allocated to preferred stockholders		—			(1,427	)		(558	)		(2,752	)
Net income (loss) attributable to common stockholders		(2,517	)		5,275			(5,905	)		1,891
Income available to participating securities		—			(3,889	)		—			(1,406	)
Net income (loss) available to common stockholders	$	(2,517	)	$	1,386		$	(5,905	)	$	485
Net income (loss) per share of common stock, basic	$	(0.05	)	$	0.14		$	(0.15	)	$	0.05
Weighted-average common stock outstanding, basic		46,570,195			9,707,995			39,664,436			9,419,113

	Three Months Ended June 30,						Six Months Ended June 30,
Diluted net income (loss) per share	2021			2020			2021			2020
Net income (loss)	$	(2,517	)	$	6,702		$	(5,347	)	$	4,643
Cumulative preferred dividends allocated to preferred stockholders		—			(1,427	)		(558	)		(2,752	)
Net income (loss) attributable to common stockholders		(2,517	)		5,275			(5,905	)		1,891
Reallocation of earnings to participating securities considering potentially dilutive securities		—			(3,826	)		—			(1,383	)
Net income (loss) available to common stockholders	$	(2,517	)	$	1,449		$	(5,905	)	$	508
Net income (loss) per share of common stock, diluted	$	(0.05	)	$	0.14		$	(0.15	)	$	0.05
Weighted average common stock outstanding, basic		46,570,195			9,707,995			39,664,436			9,419,113
Weighted average dilutive effect of stock options and restricted stock		—			607,299			—			594,678
Weighted-average common stock outstanding, diluted		46,570,195			10,315,294			39,664,436			10,013,791

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The following table sets forth the potential shares of common stock that were excluded from the computation of diluted net loss per share attributable to common stockholders for the periods presented because including them would have been antidilutive:

	Three Months Ended June 30,				Six Months Ended June 30,
	2021		2020		2021		2020
Convertible preferred stock (on an if-converted basis)		—		5,543,918		—		5,543,918
Outstanding stock options		11,460,506		4,990,706		11,460,506		4,640,516
Restricted stock units		428,550		187,500		428,550		187,500
ESPP purchase rights		88,284		—		88,284		—
Total antidilutive securities		11,977,340		10,722,124		11,977,340		10,371,934

Note 11. Related Party Transactions

During the three and six months ended June 30, 2021 and 2020, the Company incurred engineering and quality assurance costs from a third-party vendor. The chief executive officer of the third-party vendor is considered an immediate family member of the Company’s chief technology officer. The Company recorded $0.6 million and $1.1 million in the three and six months ended June 20, 2021, respectively, and $0.4 million and $0.8 million in the three and six months ended June 30, 2020, respectively, in research and development expense relating to this third party vendor on the condensed consolidated statements of operations. As of June 30, 2021 and December 31, 2020, amounts owed to this third party vendor were $0.2 million and $0.2 million, respectively, and were included in accounts payable and accrued liabilities on the condensed consolidated balance sheets.

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Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations.

You should read the following discussion and analysis of our financial condition and results of operations together with the condensed consolidated financial statements and related notes included elsewhere in this Report on Form 10-Q. This discussion contains forward-looking statements based upon current expectations that involve risks and uncertainties. Our actual results may differ materially from those anticipated in these forward-looking statements as a result of various factors, including those discussed in the section titled “Risk Factors” and in other parts of this Report on Form 10-Q.

Overview

We provide a leading, cloud-based digital experience platform that enables businesses to convert customer engagement into revenue through interactive webinar experiences, virtual event experiences and multimedia content experiences. Our platform’s portfolio of interactive, personalized and content-rich digital experience products creates and captures actionable, real-time data at scale from millions of professionals every month to provide businesses with buying signals and behavioral insights to efficiently convert prospects into customers.

Similar to what has taken place in the business-to-consumer (B2C) market, our digital experience platform empowers business-to-business (B2B) companies with insights to better personalize their engagement. Large social media platforms have been successful at leveraging experiences and insights of consumers on their platforms to enable B2C companies to effectively understand their potential consumers. While these have been effective in the B2C market, B2B companies often lack deep insights about prospective customers to effectively understand and engage them.

Businesses today primarily use automated solutions, such as digital advertising and email, for marketing. While these automated solutions reach large numbers of prospective customers, they have generally failed to deepen customer engagement because they were designed with the simple purpose of pushing marketing messages in one direction—from the business to the prospective customer. For businesses to succeed, we believe their sales and marketing strategies must evolve from the era of automation to the era of engagement. Our platform provides an innovative way both to scale digital marketing and deepen prospective customer engagement. We believe our opportunity to help businesses convert digital engagement into revenue will continue to grow as industries modernize their sales and marketing processes, which has been accelerated by the COVID-19 pandemic.

We sell subscriptions to our platform’s experience products that are backed by analytics and our ecosystem of third-party integrations. Before 2013, we offered services and licensed software for managing webinars and virtual events primarily on a per event basis. In 2013, we transitioned to be a software-as-a-service company with the release of ON24 Elite and ON24 Virtual Environment as cloud-based subscription products. Substantially all of our customers subscribe to ON24 Elite, which enables customers to seamlessly broadcast video-based content and drive real-time interactivity in a single immersive experience. Our customers can host multiple tracks of their webinar experiences as a large-scale virtual event experience using ON24 Virtual Environment.

In 2018, we launched two complementary experience products, ON24 Engagement Hub and ON24 Target, to provide our customers with a system for digital engagement, offering customers the ability to curate and disseminate rich, multimedia content experiences. In addition to our products, we also provide professional services such as experience management, monitoring and premium support services, which provide the opportunity for recurring revenue, as well as implementation and other services.

In 2021, we launched ON24 Breakouts which expanded the functionality and interactivity of webinars built with ON24 Elite. For example, breakouts enable attendees and presenters to network with each other face-to-face, sales teams to connect immediately with prospects and subject matters experts to offer two-way communication to support customer education and training

We deliver our platform products as cloud-based subscriptions that are easy to use and purpose-built for sales and marketing professionals. As of June 30, 2021, we had over 2,000 customers. We have a highly engaged and loyal customer base leading to a successful land and expand strategy.

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Prior to developing our current cloud-based subscription model, we generated revenue from our Legacy offering, which primarily consisted of fully managed events and associated services. In connection with shifting to our current data-driven, cloud-based subscription model, we stopped selling our Legacy offering to new customers in 2018 and stopped selling it to all customers in 2020. As a result, substantially all Legacy revenue ceased after December 2020. Our revenue was $52.1 million and $102.2 million for the second quarter and first half of 2021, respectively, compared to $36.3 million and $61.1 million for the same periods of 2020, representing a period-over-period increase of 43% and 67%, respectively. Our revenue, excluding our Legacy offering, was $52.1 million and $102.1 million for the second quarter and first half of 2021, respectively, compared to $35.5 million and $59.2 million for the same periods of 2020 representing a period-over-period increase of 47% and 72%. We had a net loss of $2.5 million and $5.3 million for the second quarter and first half of 2021, respectively, compared to net income of $6.7 million and $4.6 million for the same periods of 2020.

COVID-19 Update

In December 2019, an outbreak of COVID-19 emerged, and, by March 2020, the World Health Organization declared COVID-19 a global pandemic. Governments across the United States and around the world instituted measures in an effort to slow infection rates, including orders to shelter-in-place, travel restrictions and mandated business closure. This pandemic has had widespread, rapidly-evolving and unpredictable impacts on global societies, economies, financial markets and business practices.

As conditions continue to fluctuate around the world, with vaccine administration rising in certain regions, governments and organizations have responded by adjusting their restrictions and guidelines accordingly. Our focus remains on promoting employee health and safety, serving our customers and ensuring business continuity. We carefully assess conditions to determine when employees can safely return to our offices, and as a result we plan to partially reopen offices in the second half of 2021. With different regions recovering at different rates, we continue to evaluate our plans to reopen our facilities.

During the COVID-19 pandemic, digital has become the primary way for people to connect, work, learn and be entertained, and for businesses to engage with customers. The imperative to optimize digital sales and marketing investments to drive revenue conversion has become more important as businesses accelerate digital transformation initiatives in response to the COVID-19 pandemic, resulting in increased usage of our subscription and other platforms. Our revenue increased by 43% in the second quarter of 2021 and 67% in the first half of 2021 compared to the same respective periods of 2020, in part due to the impact of COVID-19.

There is no assurance that we will continue to experience such accelerated growth. If the effects of the COVID-19 pandemic subside, particularly as more people get vaccinated, our customers and their users may resume in-person marketing activities in a way that decreases usage of our platform. The extent of the impact of COVID-19 on our business and financial performance may be influenced by a number of factors, many of which we cannot control, including the duration and spread of the pandemic, future spikes of COVID-19 infections resulting in additional preventative and mitigative measures, the severity of the economic decline attributable to or influenced by the pandemic, the timing and nature of a potential economic recovery, the impact on our customers and our sales cycles, and our ability to generate new business leads. For additional details, see the section titled “Risk Factors.”

Key Factors Affecting Our Performance

Acquiring New Customers

We are focused on continuing to grow the number of customers that use our platform. We define a customer as a unique organization, including its subsidiaries and affiliates, that has entered into an agreement for paid access to our platform. A single customer may have multiple agreements with us for separate divisions, subsidiaries or affiliates. Our operating results and growth prospects will depend in part on our ability to attract new customers. While we believe we have a significant market opportunity that our platform addresses, it is difficult to predict customer adoption rates or the future growth rate and size of the market for our platform. We will need to continue to invest in our sales and marketing functions in order to address this opportunity by hiring, developing and retaining talented sales personnel who are able to achieve desired productivity levels in a reasonable period of time.

23

Despite our strong growth to date, we believe our market is still relatively underpenetrated and, as a result, we see significant opportunity to market our solutions globally. We intend to pursue new customers through specialized and aligned sales teams focused on Enterprise customers, which includes companies with more than 2,000 employees, and Commercial customers, which includes companies with less than 2,000 customers.

Retention and Expansion of ON24 Across Existing Customers

We believe we can achieve significant growth by retaining and further penetrating our existing customer base with the addition of new users and new products, and through upsell and cross sell. Our multi-dimensional land and expand model drives onboarding and allows us to acquire customers via free trials, live demos and continuous engagement with an efficient sales and marketing investment. As we continue to drive more actionable revenue generating marketing insights, we believe that we have a significant opportunity to further increase sales among existing customers across different functional and geographic departments within each respective organization. Our ability to pursue this opportunity will require us to continue to retain our customers, scale our sales and marketing organization and otherwise increase our operating expenses, and we may not be successful on the timetable we anticipate, or at all, for any number of reasons, which may cause our results to vary from period to period.

Innovation and Expansion of Our Platform

We plan to continually develop new products that enhance the functionality of our platform, improve our user experiences and drive customer engagement in order to further capitalize on new opportunities. We intend to sell these new solutions to both existing and new customers, to drive an increase in revenue as the breadth and depth of our solutions and use cases expands. We also intend to continue investing in our platform and related infrastructure to improve capacity, security and scalability. These development efforts will require significant investments, some of which may be episodic or otherwise cause our expenses to vary from period to period.

International Expansion

We believe the expansion of real-time, revenue-generating marketing intelligence in international markets is a significant opportunity. For the second quarter and first half of 2021, approximately 26% and 26%, respectively, of our revenue came from outside the United States, compared to 23% and 22% for the same periods of 2020. We believe there is a compelling opportunity to expand our solutions internationally, both in countries where we currently operate and countries where we do not yet sell subscriptions to our solutions. Continuing to expand our international operations will require considerable management attention and other resources and may present challenges associated with complying with local expectations, customs, laws and regulations, which may impact our ability to sell subscriptions to our solutions and otherwise cause our results to vary from period to period.

Key Business Metrics

We review the following key business metrics to measure our performance, identify trends, formulate financial projections and make strategic decisions. Our methods for calculating these metrics may differ from similarly titled metrics at other companies, which may hinder comparability with other companies. The following table sets forth as of the dates indicated our number of customers, our annual recurring revenue (ARR) and our customers contributing at least $100,000 in ARR ($100k Customers) (in thousands):

	June 30, 2021		March 31, 2021		December 31, 2020		June 30, 2020		March 31, 2020
Customers		2,078		2,062		1,994		1,769		1,503
ARR		164,130		163,051		153,362		114,183		85,875
$100k Customers		345		325		302		229		161

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Number of Customers

Increasing awareness of our platform and its broad range of capabilities has enabled us to substantially expand our customer base. We define a customer as a unique organization, including its subsidiaries and affiliates, that has entered into an agreement for paid access to our platform. We serve customers of all sizes, ranging from small businesses to global Fortune 100 organizations across a diverse set of industries, including technology, financial services, healthcare, industrial and manufacturing, professional services and B2B information services companies. Our diverse customer base has grown from 760 customers as of December 31, 2015 to over 2,000 customers as of June 30, 2021. For the second quarter of 2021, we added 16 net customers compared to the first quarter of 2021 as our continued growth more than offset the loss of customers who purchased one-year platform subscriptions during the second quarter of 2020. Our platform is designed with a long-term view toward our customer relationships and to grow with customers as their needs expand.

Annual Recurring Revenue

We believe that ARR is a key metric to measure our business because it is driven by our ability to acquire new subscription customers and to maintain and expand our relationship with existing subscription customers. ARR is calculated as the sum of the annualized value of our subscription contracts as of the measurement date, including existing customers with expired contracts that we expect to be renewed. Our ARR amounts exclude professional services, overages from subscription customers and Legacy revenue. Our ARR as of June 30, 2021, December 31, 2020 and June 30, 2020 was $164.1 million,  $153.4 million and $114.2 million, respectively. Our ARR growth reflects our success in acquiring new customers and expanding subscriptions with existing customers, which was occurring prior to the COVID-19 pandemic, and which accelerated in 2020 partly in response to the COVID-19 pandemic, and has continued to grow in 2021 though at a slower pace. For the second quarter of 2021, we added $1.1 million in ARR as compared to March 31, 2021, as our continued growth more than offset the loss of ARR from customers who purchased one-year platform subscriptions during the second quarter of 2020.

Customers Contributing $100,000 or More to ARR

We believe that our ability to increase our $100k Customers is a key indicator for important components of the growth of our business, including our success in expanding the use of our platform within large organizations. As of June 30, 2021, December 31, 2020 and June 30, 2020, we had 345, 302 and 229 $100k Customers, respectively, demonstrating our rapid penetration of larger organizations.

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Results of Operations

We manage and operate as one reportable segment. The discussion below summarizes our results of operations for the periods presented, which we derived from the condensed consolidated financial statements included elsewhere in this Report.

The following tables set forth selected condensed consolidated statements of operations data and for each of the periods presented (in thousands) .

	Three Months Ended June 30,						Six Months Ended June 30,
	2021			2020			2021			2020
	(in thousands, except percentages)
Revenue:
Subscription and other platform	$	44,377		$	27,096		$	87,287		$	47,023
Professional services		7,741			9,224			14,930			14,043
Total revenue		52,118			36,320			102,217			61,066
Cost of revenue:
Subscription and other platform (1)		8,179			4,824			15,664			8,980
Professional services (1)		3,694			3,138			6,903			5,688
Total cost of revenue		11,873			7,962			22,567			14,668
Gross profit		40,245			28,358			79,650			46,398
Operating expenses:
Sales and marketing (1)		25,465			12,729			49,390			24,739
Research and development (1)		8,162			4,513			16,108			8,612
General and administrative (1)		9,100			4,206			18,868			7,658
Total operating expenses		42,727			21,448			84,366			41,009
Income (loss) from operations		(2,482	)		6,910			(4,716	)		5,389
Interest expense		106			193			337			405
Other (income) expense, net		211			(22	)		327			249
Income (loss) before provision for (benefit from) income taxes		(2,799	)		6,739			(5,380	)		4,735
Provision for (benefit from) income taxes		(282	)		37			(33	)		92
Net income (loss)		(2,517	)		6,702			(5,347	)		4,643

_____________________

(1)   Includes stock-based compensation as follows:
	Three Months Ended June 30,				Six Months Ended June 30,
	2021		2020		2021		2020
	(in thousands)
Cost of revenue
Subscription and other platform	$	346	$	24	$	583	$	47
Professional services		77		5		139		9
Total cost of revenue		423		29		722		56
Sales and marketing		1,571		147		3,263		288
Research and development		862		62		1,644		119
General and administrative		2,114		192		4,335		370
Total stock-based compensation expense	$	4,970	$	430	$	9,964	$	833

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Comparison of the Three and Six Months Ended June 30, 2021 and 2020

Revenue

	Three Months Ended June 30,
	2021		As a % of Revenue	2020		As a % of Revenue	$ Change			% Change
	(in thousands, except percentages)
Subscription and other platform	$	44,377	85%	$	27,096	75%	$	17,281		64%
Professional services		7,741	15%		9,224	25%		(1,483	)	(16%)
Total revenue	$	52,118	100%	$	36,320	100%	$	15,798		43%

	Six Months Ended June 30,
	2021		As a % of Revenue	2020		As a % of Revenue	$ Change		% Change
	(in thousands, except percentages)
Subscription and other platform	$	87,287	85%	$	47,023	77%	$	40,264	86%
Professional services		14,930	15%		14,043	23%		887	6%
Total revenue	$	102,217	100%	$	61,066	100%	$	41,151	67%

The increase in total revenue for the second quarter and first half of 2021 compared to the same periods in 2020 was primarily driven by an overall increase in digital experience platform revenue and partially offset by a decrease in Legacy revenue.

	Three Months Ended June 30,
	2021		As a % of Total Revenue	2020		As a % of Total Revenue	$ Change			% Change
	(in thousands, except percentages)
Digital Experience Platform
Subscription and other platform	$	44,367	85%	$	26,397	73%	$	17,970		68%
Professional services		7,741	15%		9,120	25%		(1,379	)	(15%)
Total digital experience platform revenue	$	52,108	100%	$	35,517	98%	$	16,591		47%
Legacy
Subscription and other platform	$	10	0%	$	699	2%	$	(689	)	(99%)
Professional service		—	0%		104	0%		(104	)	(100%)
Total Legacy revenue	$	10	0%	$	803	2%	$	(793	)	(99%)
Total revenue	$	52,118	100%	$	36,320	100%	$	15,798		43%

	Six Months Ended June 30,
	2021		As a % of Total Revenue	2020		As a % of Total Revenue	$ Change			% Change
	(in thousands, except percentages)
Digital Experience Platform
Subscription and other platform	$	87,225	85%	$	45,713	75%	$	41,512		91%
Professional services		14,905	15%		13,522	22%		1,383		10%
Total digital experience platform revenue	$	102,130	100%	$	59,235	97%	$	42,895		72%
Legacy
Subscription and other platform	$	62	0%	$	1,310	2%	$	(1,248	)	(95%)
Professional service		25	0%		521	1%		(496	)	(95%)
Total Legacy revenue	$	87	0%	$	1,831	3%	$	(1,744	)	(95%)
Total revenue	$	102,217	100%	$	61,066	100%	$	41,151		67%

Total digital experience platform revenue increased by $16.6 million, or 47%, for the second quarter of 2021 and increased by $42.9 million, or 72%, for the first half of 2021, compared to the same periods of 2020. The increase was primarily attributable to an increase in subscription and other platform revenue mainly due to increased use of our platform by our existing customers, and to a lesser extent increases in our customer base, which reflects an increase in demand for our experience management and monitoring services.

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Professional services revenue decreased $1.4 million, or 15%, for the second quarter of 2021 and increased $1.4 million, or 10%, for the first half of 2021, compared to the same periods in 2020, primarily reflecting unusually high demand for our professional services in 2020 that continued into the first quarter of 2021. The decline in professional services revenue as a percentage of revenue in both the second quarter and first half of 2021, as compared to the same periods in 2020, also reflects platform improvements that enable more customer self-service.

Total Legacy revenue for the second quarter and first half of 2021 decreased $0.8 million, or 99%, and $1.7 million, or 95%, respectively, compared to the same periods of 2020 primarily attributable to a decrease in subscription and other Legacy platform revenue as we stopped selling our Legacy offering to new customers in 2018. Substantially all Legacy revenue ceased after December 2020.

Cost of Revenue and Gross Margin

	Three Months Ended June 30,
	2021			As a % of Revenue	2020			As a % of Revenue	$ Change		% Change
	(in thousands, except percentages)
Subscription and other platform	$	8,179		16%	$	4,824		13%	$	3,355	70%
Professional services		3,694		7%		3,138		9%		556	18%
Total cost of revenue	$	11,873		23%	$	7,962		22%	$	3,911	49%
Gross profit	$	40,245		77%	$	28,358		78%	$	11,887	42%
Gross margin		77	%			78	%

	Six Months Ended June 30,
	2021			As a % of Revenue	2020			As a % of Revenue	$ Change		% Change
	(in thousands, except percentages)
Subscription and other platform	$	15,664		15%	$	8,980		15%	$	6,684	74%
Professional services		6,903		7%		5,688		9%		1,215	21%
Total cost of revenue	$	22,567		22%	$	14,668		24%	$	7,899	54%
Gross profit	$	79,650		78%	$	46,398		76%	$	33,252	72%
Gross margin		78	%			76	%

Cost of Revenue

Cost of revenue for the second quarter and first half of 2021 increased by $3.9 million, or 49%, and $7.9 million, or 54%, respectively, compared to the same periods of 2020, primarily driven by an overall increase in digital experience platform revenue and partially offset by a decrease in Legacy cost of revenue.

Total digital experience platform cost of revenue for the second quarter and first half of 2021 increased by $4.3 million, or 56%, and $8.8 million, or 64%, respectively, compared to the same periods of 2020. The increase in each respective period was primarily due to an increase in subscription and other platform cost of revenue of $3.6 million and $7.1 million, and an increase in professional services cost of revenue of $0.7 million and $1.7 million. The increase in total digital experience platform cost of revenue was primarily driven by an increase in personnel-related expenses of $3.3 million and $6.1 million due to increased headcount to support our platform and deliver services. The increase of $1.7 million in total digital experience platform cost of revenue in the first half of 2021 reflected increases in bandwidth, transmission and software costs due to the expansion of infrastructure and data centers.

Total Legacy cost of revenue for the second quarter and first half of 2021 decreased by $0.4 million, or 106%, and $0.9 million, or 100%, respectively, compared to the same periods of 2020. The decrease in total Legacy cost of revenue in each respective period was primarily driven by a reduction in headcount and facilities allocation costs as we stopped selling our Legacy offering to new customers in 2018 and substantially all Legacy revenue ceased after December 2020.

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Gross Margin

Gross margin for the second quarter remained relatively flat compared to the same period of 2020. The gross margin for the first half of 2021 increased to 78% compared to 76% for the same period of 2020. The increase in gross margin in the first half of 2021 was primarily attributable to the significant increase in total digital experience platform revenue, which increased 72%, compared to our total digital experience platform cost of revenue, which increased 64%. We expect gross margin to decrease in the remainder of 2021 as we continue to invest to scale the business.

Operating Expenses

Sales and Marketing

	Three Months Ended June 30,
	2021		As a % of Revenue	2020		As a % of Revenue	$ Change		% Change
	(in thousands, except percentages)
Sales and marketing	$	25,465	49%	$	12,729	35%	$	12,736	100%

	Six Months Ended June 30,
	2021		As a % of Revenue	2020		As a % of Revenue	$ Change		% Change
	(in thousands, except percentages)
Sales and marketing	$	49,390	48%	$	24,739	41%	$	24,651	100%

Sales and marketing expense increased $12.7 million, or 100%, for the second quarter of 2021 and $24.7 million, or 100%, for the first half of 2020, compared to the same periods of 2020. The increase in each respective period was primarily attributable to an increase in personnel-related expenses of $9.3 million and $17.9 million driven by both increased headcount to support the growth in our sales force and increased stock based compensation expense of $1.4 million and $3.0 million, as well as an increase in marketing and advertising expenses of $2.2 million and $4.9 million primarily due to increased demand generation activity. The increase of $1.7 million in facilities and other expenses also contributed to the increased sales and marketing expense for the first half of 2021. We expect our sales and marketing expense to continue to increase in the remainder of 2021 to support increased demand for our digital experiences.

Research and Development

	Three Months Ended June 30,
	2021		As a % of Revenue	2020		As a % of Revenue	$ Change		% Change
	(in thousands, except percentages)
Research and development	$	8,162	16%	$	4,513	12%	$	3,649	81%

	Six Months Ended June 30,
	2021		As a % of Revenue	2020		As a % of Revenue	$ Change		% Change
	(in thousands, except percentages)
Research and development	$	16,108	16%	$	8,612	14%	$	7,496	87%

Research and development expense increased $3.6 million, or 81%, for the second quarter of 2021 and $7.5 million, or 87%, for the first half of 2021, compared to the same periods of 2020. The increase in each respective period was primarily attributable to an increase of $2.6 million and $5.6 million in personnel-related expenses driven by both increased headcount for the development of our solutions and increased stock-based compensation expense of $0.8 million and $1.5 million. The increase of $1.1 million in contractor costs for development activities also contributed to the increase of research and development expense in the first half of 2021. We expect our research and development expense to continue to increase in the remainder of 2021 as we focus on further developing our platform and infrastructure.

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General and Administrative

	Three Months Ended June 30,
	2021		As a % of Revenue	2020		As a % of Revenue	$ Change		% Change
	(in thousands, except percentages)
General and administrative	$	9,100	17%	$	4,206	12%	$	4,894	116%

	Six Months Ended June 30,
	2021		As a % of Revenue	2020		As a % of Revenue	$ Change		% Change
	(in thousands, except percentages)
General and administrative	$	18,868	18%	$	7,658	13%	$	11,210	146%

General and administrative expense increased $4.9 million, or 116%, for the second quarter of 2021 and $11.2 million, or 146% for the first half of 2021, compared to the same periods of 2020. The increase in each respective period was primarily attributable to an increase of $2.8 million and $6.1 million in personnel-related expenses driven by both increased headcount and increased stock based compensation expense of $1.9 million and $4.0 million, and an increase of $1.4 million and $2.2 million in facilities and other expenses. The $2.8 million increase in professional, legal and accounting related expenses due to additional expenses incurred for IPO readiness and ongoing costs associated with being a publicly traded company also contributed to the increase in general and administrative expense for the first half of 2021. We expect our general and administrative expense to increase in the remainder of 2021 as we increase the size of our general and administrative function to support the growth of our business.

Interest Expense

	Three Months Ended June 30,
	2021		As a % of Revenue	2020		As a % of Revenue	$ Change			% Change
	(in thousands, except percentages)
Interest expense	$	106	0%	$	193	1%	$	(87	)	(45%)

	Six Months Ended June 30,
	2021		As a % of Revenue	2020		As a % of Revenue	$ Change			% Change
	(in thousands, except percentages)
Interest expense	$	337	0%	$	405	1%	$	(68	)	(17%)

Interest expense for the second quarter and first half of 2021 remained relatively flat compared to the same periods of 2020.

Other (Income) Expense, Net

	Three Months Ended June 30,
	2021		As a % of Revenue	2020			As a % of Revenue	$ Change		% Change
	(in thousands, except percentages)
Other (income) expense, net	$	211	0%	$	(22	)	0%	$	233	1,059%

	Six Months Ended June 30,
	2021		As a % of Revenue	2020		As a % of Revenue	$ Change		% Change
	(in thousands, except percentages)
Other (income) expense, net	$	327	0%	$	249	0%	$	78	31%

Other (income) expense, net for the second quarter and first half of 2021 increased $0.2 million and $0.1 million, respectively, compared to the same periods of 2020, primarily driven by foreign exchange transaction losses.

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Provision for (Benefit from) Income Taxes

	Three Months Ended June 30,
	2021			As a % of Revenue	2020		As a % of Revenue	$ Change			% Change
	(in thousands, except percentages)
Provision for (benefit from) income taxes	$	(282	)	-1%	$	37	0%	$	(319	)	(862%)

	Six Months Ended June 30,
	2021			As a % of Revenue	2020		As a % of Revenue	$ Change			% Change
	(in thousands, except percentages)
Provision for (benefit from) income taxes	$	(33	)	0%	$	92	0%	$	(125	)	(136%)

The decrease in provision for income taxes in the second quarter and first half of 2021 compared to the same periods of 2020 was primarily driven by the tax benefits associated with the exercise of stock options in a foreign jurisdiction.

Liquidity and Capital Resources

As of June 30, 2021, we had cash, cash equivalents and marketable securities of $396.4 million. Our investments generally consist of money market funds, certificates of deposit, U.S. Treasury securities and debt securities, all of which are available for our current operations use. Our liquidity requirements arise primarily from our working capital needs, capital expenditures and debt service requirements. We historically funded our liquidity requirements through sales of convertible preferred stock, cash generated from our operations, borrowings and availability under our revolving credit facility, and most recently through our initial public offering of our common stock in February 2021.

In February 2021, we closed our IPO in which we sold 7,599,928 shares of our common stock, which included 1,284,139 shares from the full exercise of the underwriters’ option to purchase additional shares, at a public offering price of $50 per share. We received net proceeds of approximately $348.0 million after deducting the underwriting discount of approximately $26.6 million and offering costs of approximately $5.4 million.

The terms of our credit agreement permit voluntarily prepayment without premium or penalty. In the first quarter of 2021, we repaid in full the $22.4 million aggregate then outstanding principal balance of our line of credit under the revolving credit facility.

Our principal uses of cash in recent periods have been to fund our operations, invest in research and development and to purchase investments.

We believe our existing cash, cash equivalents and marketable securities will be sufficient to meet our needs for at least the next 12 months. Our future capital requirements will depend on many factors including our revenue growth rate, subscription renewal activity, billing frequency, the timing and extent of spending to support further sales and marketing and research and development efforts, as well as expenses associated with our international expansion, including the timing and extent of additional capital expenditures to invest in existing and new office spaces. We may in the future enter into arrangements to acquire or invest in complementary businesses, products, services and technologies, and we may need to seek additional equity or debt financing. In the event that additional financing is needed from outside sources, we may not be able to raise the necessary capital or raise the capital on terms acceptable to us or at all. If we are unable to raise additional capital when desired, our business, results of operations and financial condition could be materially and adversely affected.

The following table summarizes our cash flows for the periods presented (in thousands):

	Three Months Ended June 30,
	2021			2020
Net cash provided by operating activities	$	10,575		$	15,360
Net cash used in investing activities	$	(43,051	)	$	(288	)
Net cash provided by financing activities	$	325,848		$	1,771

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Operating Activities

Our largest source of operating cash is cash collections from our customers for subscriptions to use our platform. Our primary uses of cash from operating activities are from personnel-related expenditures, costs related to hosting our platform and marketing expenses. Our cash flow from operating activities will continue to be influenced principally by the extent to which we increase spending on our business and our working capital requirements.

Net cash provided by operating activities is primarily impacted by our net loss adjusted for certain non-cash items such as stock-based compensation, depreciation and amortization, amortization of deferred contract acquisition costs, as well as the effect of changes in operating assets and liabilities. Our cash flows from operating activities provided net cash of $10.6 million for the six months ended June 30, 2021 compared to $15.4 million for the same period in 2020, a decrease of $4.8 million. The decrease was primarily attributable to the $8.7 million unfavorable changes in operating assets and liabilities between the periods, partially reduced by an increase in net loss adjusted for non-cash expenses of $13.8 million.

The total non-cash adjustments for the six months ended June 30, 2021 was $21.0 million compared to $7.2 million for the same period of 2020. The $13.8 million favorable change of non-cash adjustment was primarily driven by an increase in stock-based compensation expense of $9.1 million and an increase in amortization of deferred contract acquisition costs of $3.2 million.

Working capital used cash of $5.1 million for the six months ended June 30, 2021 compared to provided cash of $3.6 million for the same period in 2020, a decrease of cash inflow of $8.7 million. The unfavorable change in working capital in the comparative periods were impacted by, among other items, the timing of vendor payments and prepayments, timing of cash receipts from customers, improved collections of accounts receivable, and increased business activities due to company growth.

Investing Activities

Net cash used in investing activities was $43.1 million for the six months ended June 30, 2021 compared to $0.3 million for the same period in 2020. The increase was primarily driven by an increase in purchases of marketable securities of $39.5 million and an increase in capital expenditures of $1.4 million, partially offset by a decrease in proceeds from maturity of marketable securities of $1.8 million. Our most significant capital expenditures have been investments in our equipment to support ongoing operations. We expect our capital investment will continue in the future.

Financing Activities

Net cash provided by financing activities was $325.8 million for the six months ended June 30, 2021 compared to $1.8 million for the same period in 2020. The increase was primarily driven by the proceeds of $353.4 million from our IPO, net of underwriting discounts, partially offset by the repayment of $22.5 million outstanding principal balance of our line of credit under our revolving credit facility, the payments of IPO related costs of $3.5 million, and payment of tax withholding obligation of $2.0 million related to net share settlement of exercising stock options.

Debt Obligations

Revolving Credit Facility

In April 2013, we entered into a loan and security agreement with Comerica Bank, which was subsequently amended and restated, and provides us the ability to borrow up to $30.0 million with a letter of credit sublimit of $3.9 million and a credit card sublimit of $0.7 million. The revolving credit facility is secured by a security interest on substantially all of our assets. Outstanding principal amounts on the revolving credit facility incur interest at the prime rate, as published by the Wall Street Journal (Prime Rate), plus 0.75% effective July 31, 2020 and prime rate, plus 0.50% prior to July 31, 2020. The prime rate was 3.25% as of June 30, 2021 and 2020. As of December 31, 2020, we borrowed $22.4 million against the revolving credit facility, which was repaid in full during the first quarter of 2021.

We incurred an immaterial amount of interest expense prior to our full repayment of the principal outstanding under our line of credit in the first quarter of 2021.

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Commitments and Contractual Obligations

The following table summarizes our noncancelable contractual obligations as of June 30, 2021 (in thousands):

	Payments Due By Period
	Total		Less than 1 year		1-3 years		3-5 years		More than 5 years
Operating lease obligations	$	11,347	$	1,646	$	5,500	$	4,201	$	—
Capital lease obligations		5,243		1,101		4,071		71		—
Other debt (1)		701		120		510		71		—
Total	$	17,291	$	2,867	$	10,081	$	4,343	$	—

(1) Amounts represent the principal balance outstanding under our equipment loan agreements. See Note 6 to condensed consolidated financial statements for additional information.

Critical Accounting Policies and Estimates

There has been no significant change during this quarter to our critical accounting policies and estimates as discussed in our Annual Report on Form 10-K for the year ended December 31, 2020.

Item 3. Quantitative and Qualitative Disclosures About Market Risk.

Other than the item discussed below, there has been no material change in our exposure to market risks from that discussed in Item 7A of our Annual Report on Form 10-K for the year ended December 31, 2020.

Our exposure to changes in interest rates relates primarily to our investment portfolio. Changes in U.S. interest rates affect the interest earned on our cash, cash equivalents and investments and the fair value of those investments.

Our cash equivalents consist of money market mutual funds, which are not significantly exposed to interest rate risk. Our marketable securities are subject to interest rate risk because these securities primarily include a fixed interest rate. As a result, the market values of these securities are affected by changes in prevailing interest rates. We attempt to limit our exposure to interest rate risk and credit risk by investing our investment portfolio in instruments that meet the minimum credit quality, liquidity, diversification and other requirements of our investment policy. Our marketable securities consist of liquid, investment-grade securities. We do not enter into investments for trading or speculative purposes.

The following table presents the hypothetical fair values of our marketable securities assuming immediate parallel shifts in the yield curve of 50 basis points (“BPS”), 100 BPS and 150 BPS as of June 30, 2021 (in thousands):

	(150 BPS)		(100 BPS)		(50 BPS)		Fair Value as of June 30, 2021		50 BPS		100 BPS		150 BPS
Marketable securities	$	44,733	$	44,731	$	44,728	$	44,631	$	44,405	$	44,179	$	43,953

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Item 4. Controls and Procedures.

Under the supervision and with the participation of our management, including our principal executive officer and principal financial officer, we evaluated the effectiveness of the design and operation of our disclosure controls and procedures as defined in Rules 13a-15(e) and 15d-15(e) of the Exchange Act as of June 30, 2021. Our management recognizes that any controls and procedures, no matter how well designed and operated, can provide only reasonable assurance of achieving their objectives, and management necessarily applies its judgment in evaluating the cost-benefit relationship of possible controls and procedures.

Based upon the evaluation, our principal executive officer and principal financial officer have concluded that, as of June 30, 2021, our disclosure controls and procedures were effective at a reasonable assurance level.

Changes in Internal Control over Financial Reporting

There were no changes in our internal control over financial reporting (as defined in Rule 13a-15(f) under the Exchange Act) occurred during the three months ended June 30, 2021, that has materially affected, or is reasonably likely to materially affect, our internal control over financial reporting.

PART II—OTHER INFORMATION

Item 1. Legal Proceedings.

From time to time, we may become involved in legal proceedings or be subject to claims arising in the ordinary course of our business. We are not presently a party to any legal proceedings that we believe, if determined adversely to us, would have a material adverse effect on our business, financial condition, operating results, or cash flows. Regardless of the outcome, litigation can have an adverse impact on us because of defense and settlement costs, diversion of management resources, and other factors.

Item 1A. Risk Factors.

Investing in our common stock involves a high degree of risk. You should carefully consider the risks and uncertainties described below, together with all of the other information in this report, including our consolidated financial statements and related notes, as well as in our other filings with the SEC, in evaluating our business and before investing in our common stock. The occurrence of any of the events or developments described below could materially and adversely affect our business, financial condition, results of operations, and growth prospects. In such an event, the market price of our common stock could decline, and our stockholders may lose all or part of their investment. Additional risks and uncertainties not presently known to us or that we currently deem immaterial may also impair our business operations.

Summary of Risk Factors

Our business is subject to a number of risks and uncertainties, including those risks discussed at-length below. You should read these risks before you invest in our common stock. If any of these risks actually occur, our business, financial condition or results of operations would likely be materially and adversely affected. These risks include, but are not limited to, risks relating to:

• our ability to sustain our recent revenue growth rate in the future, attract new customers and expand sales to existing customers;

• fluctuation in our performance, our history of net losses and expected increases in our expenses;

• competition and technological development in our markets and any decline in demand for our solutions or generally in our markets;

• our ability to expand our sales and marketing capabilities and otherwise manage our growth;

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• the impact of the COVID-19 pandemic on our customer growth rate, which may decline in future periods compared to 2020 as the impact of COVID-19 lessens, particularly as more people get vaccinated and our customers and their users consider engaging in in-person marketing activities;

• disruptions, interruptions, outages or other issues with our technology or our use of third-party services, data connectors and data centers;

• the impact of the security incident involving ransomware that we experienced or any other cybersecurity-related attack, significant data breach or disruption of the information technology systems or networks on which we rely;

• our sales cycle, our international expansion and our timing of revenue recognition from our sales;

• interoperability with other devices, systems and applications;

• compliance with data privacy, import and export controls, customs, sanctions and other laws and regulations;

• intellectual property matters, including any infringements of third-party intellectual property rights by us or infringement of our intellectual property rights by third parties; and

• the market for, trading price of and other matters associated with our common stock.

Risks Related to Our Business and Our Industry

We may not be able to sustain our recent revenue growth rate in the future.

We have experienced significant revenue growth since 2020, with our revenue increasing by 43% and 67% for the three and six months ended June 30, 2021, respectively, compared to the three and six months ended June 30, 2020. For the year ended December 31, 2020, our revenue increased by 76% as compared to the year ended December 31, 2019. Our recent revenue growth since 2020 has been significantly impacted by an increasing demand for our platform and products following the onset of the COVID-19 pandemic and resulting precautionary measures. As the impact of COVID-19 lessens, there may be reduced demand for our platform, and our revenue growth rate may decline. If these new customers elect not to continue their subscription as the impact of COVID-19 lessens, our business, financial condition and results of operations would be harmed.

As a result of our limited operating history at our current scale, our ability to forecast our future results of operations is limited and subject to a number of uncertainties. You should not rely on our recent revenue growth rate or the revenue growth rate of any prior quarterly or annual period as an indication of our future performance. Further, in future periods, our revenue growth rate could slow, or our revenue could decline for a number of reasons, including any reduction in demand for our platform, increased competition, higher market penetration, a contraction of our overall market, our inability to accurately forecast demand for our platform and plan for capacity constraints or our failure, for any reason, to capitalize on growth opportunities. If our revenue growth rate declines, investors’ perceptions of our business and the trading price of our common stock could be adversely affected.

Our quarterly results may fluctuate significantly and may not fully reflect the underlying performance of our business.

Our quarterly results of operations and financial condition may vary significantly in the future, and period-to-period comparisons may not be meaningful. Accordingly, the results of any one quarter should not be relied upon as an indication of future performance. Our quarterly results of operations and financial condition may fluctuate as a result of a variety of factors, many of which are outside of our control and may not fully reflect the underlying performance of our business. For example, our revenue and revenue growth rate may decline in future periods compared to 2020 as the impact of COVID-19 lessens, particularly as more people get vaccinated and our customers and their users consider resuming in-person marketing activities. Further, because we generally invoice our customers at the beginning of the contractual terms of their subscriptions to our solutions, our financial condition reflects deferred revenue that we recognize ratably as revenue over the contractual term. If fewer new enrollments or renewals occur as the impact of COVID-19 lessens, our cash and deferred revenue as of future dates may decrease. Fluctuation in quarterly results may negatively impact the value of our securities. Factors that may cause fluctuations in our quarterly results of operations include:

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• our ability to retain and expand customer usage;

• our ability to attract new customers;

• our ability to hire and retain employees, in particular those responsible for the selling or marketing of our platform and provide sales leadership in areas in which we are expanding our sales and marketing efforts;

• changes in the way we organize and compensate our sales teams;

• the timing of expenses and recognition of revenue;

• the length of sales cycles;

• the amount and timing of operating expenses related to the maintenance and expansion of our business, operations and infrastructure, as well as international expansion and entry into operating leases;

• timing and effectiveness of new sales and marketing initiatives;

• changes in our pricing policies or those of our competitors;

• the timing and success of new products, features and functionality by us or our competitors;

• interruptions or delays in our service, network outages, or actual or perceived privacy or security breaches;

• changes in the competitive dynamics of our industry, including consolidation among competitors;

• changes in laws and regulations that impact our business;

• one or more large indemnification payments to our customers or other third parties;

• the timing of expenses related to any future acquisitions; and

• general economic and market conditions.

Failure to attract new customers or retain, expand the usage of, and upsell our products to existing customers would harm our business and growth prospects.

We derive, and expect to continue to derive, a significant portion of our revenue and cash flows from sales of subscriptions to our products. As such, our business depends upon our ability to attract new customers and to maintain and expand our relationships with our existing customers, including by expanding their usage and upselling additional solutions. Our business is largely subscription-based, and customers are not obligated to and may not renew their subscriptions after their existing subscriptions expire. As a result, customers may not renew their subscriptions at the same rate, increase their usage of our solutions or purchase subscriptions for additional solutions, if they renew at all. Renewals of subscriptions may decline or fluctuate because of several factors, such as dissatisfaction with our solutions or support, a customer no longer having a need for our solutions or the perception that competitive products provide better or less expensive options. In order to grow our business, we must continually add new customers and replace customers who choose not to continue to use our platform. Any decrease in user satisfaction with our solutions or support may result in negative online customer reviews and decreased word-of-mouth referrals, which would harm our brand and our ability to grow.

In addition to striving to attract new customers to our platform, we seek to expand the usage of our solutions by our existing customers by increasing the number of departments, divisions and teams that use our solutions within each of our customers. If we fail to expand the usage of our solutions by existing customers or if customers fail to purchase other solutions from us, our business, financial condition and results of operations would be harmed.

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Competition in our markets is intense, and if we do not compete effectively, our operating results could be harmed.

We compete for customers with a number of different types of companies that offer a variety of products and services, including meeting tools, webinar software, virtual event software, video portal software, content management software, physical events, physical event software, marketing automation software, and digital marketing tools. Our competitors vary in size and in the breadth and scope of the products and services they offer. Many of our current and potential competitors have larger customer bases, greater brand recognition and significantly greater financial, marketing and other resources than we have. Our solutions face competition from a number of web-based meeting, webinar, physical event and marketing software products offered by companies such as Zoom, LogMeIn, Intrado, Microsoft, Cisco, Google, Cvent and Amazon. Many of these products have significantly lower prices. Although most of these companies do not currently offer products with real-time engagement features that gather the types and extent of actionable data that we gather, many of these companies have significantly greater resources and may be able to introduce similar products in the future. Additionally, we operate in a market characterized by an increasing number of new and competitive entrants. Furthermore, this market has seen rapid expansion as a result of the COVID-19 pandemic, and this market expansion may attract additional entrants. As we introduce new solutions and services, and with the introduction of new technologies and market entrants, we expect competition to intensify in the future.

Many factors, including our pricing and marketing strategies, customer acquisition, and technology costs, as well as the pricing and marketing strategies of our competitors, can significantly affect our pricing strategies. Certain competitors offer, or may in the future offer, lower-priced or free products or services that compete with our entire platform or certain aspects of our platform, and they may offer a broader range of products and services than we do. Even if such competing products do not include all of the features and functionality that our solutions provide, we could face pricing pressure to the extent that customers find such alternative products to be sufficient to meet their needs. Similarly, certain competitors or potential competitors may use marketing strategies that enable them to acquire customers at a lower cost than we can. Moreover, larger organizations, which are a primary focus of our direct sales efforts, may demand substantial price concessions. As a result, we may be required to provide larger organizations with pricing below our targets in the future. As a result, we could lose market share to our competitors or be forced to engage in price-cutting initiatives or other discounts to attract and retain customers, each of which could harm our business, results of operations and financial condition.

A decline in demand for our solutions or for live engagement technologies in general could harm our business.

We derive, and expect to continue to derive, a significant portion of our revenue and cash flows from sales of subscriptions to our solutions. As a result, widespread adoption and use of live engagement technologies, webinars and event software in general, and our platform in particular, are critical to our future growth and success. If this market fails to grow or grows more slowly than we currently anticipate, demand for our platform could be negatively affected. Demand for our platform is affected by a number of factors, many of which are beyond our control. Some of these potential factors include:

• availability of products and services that compete, directly or indirectly, with ours;

• introduction of free or “do-it-yourself” products;

• awareness and adoption of the live engagement technologies category generally as a substitute for in-person events;

• ease of adoption and use;

• features and platform experience;

• reliability of our platform, including frequency of outages;

• performance and user support;

• our brand and reputation;

• security and privacy;

• our pricing and our competitors’ pricing; and

• new modes of live engagement that may be developed in the future.

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If we fail to successfully predict and address these factors, meet customer demands or achieve more widespread market adoption of our platform, our business would be harmed.

We have a history of net losses, and we expect to increase our expenses in the future, which could prevent us from achieving or maintaining profitability.

We had net loss of $2.5 million and $5.3 million in the three and six months ended June 30, 2021, respectively, and we may incur net losses in the future. We intend to continue to expend significant funds to expand our direct sales force and marketing efforts to attract new customers and increase usage of our platform and products by our existing customers, to develop and enhance our platform and for general corporate purposes. To the extent we are successful in increasing our customer base, we may also incur increased losses because most of the costs associated with acquiring customers (other than sales commissions) are incurred up front, while the related subscription revenue is generally recognized ratably over the applicable subscription term. In addition, we may incur increased losses because most of the costs associated with acquiring customers, including sales commissions, require us to make cash outlays at the time we acquire a customer, and, similarly, the timing of our recognition of subscription revenue and sales commissions may not correspond with our cash position. Our subscriptions typically have terms of one year that automatically renew for successive one-year terms unless terminated. Our efforts to grow our business may be costlier than we expect, and we may not be able to increase our revenue enough to offset our higher operating expenses and any increase in our cost of sales, including as a result of a shift to a hybrid cloud. If we are unable to achieve and sustain profitability, the value of our business and common stock may significantly decrease. Furthermore, it is difficult to predict the size and growth rate of our market, customer demand for our platform, user adoption and renewal of subscriptions to our platform, and the entry or the success of competitive products and services. As a result, we may not achieve or maintain profitability in future periods.

The failure to effectively develop and expand our marketing and sales capabilities could harm our ability to increase our customer base and achieve broader market acceptance of our platform.

Our ability to increase our customer base, expand the usage of our existing customers and achieve broader market acceptance of our solutions will depend to a significant extent on our ability to effectively expand and manage our sales and marketing operations and activities. We are substantially dependent on our direct sales force and on our marketing efforts in order to obtain new customers. We have recently expanded and are continuing to expand our direct sales force both domestically and internationally. We believe that there is significant competition for experienced sales professionals with the sales skills and technical knowledge that we currently require or may require in the future. Our ability to achieve revenue growth will depend, in part, on our success in recruiting, training and retaining a sufficient number of qualified and experienced sales professionals. New hires require significant training and time before they achieve full productivity, particularly in new industries or geographies. Circumstances relating to the COVID-19 pandemic have altered the way we recruit, onboard, train and integrate our employees, and these processes may not be successful in expanding our sales and marketing capabilities. New hires may not become as productive as quickly as we expect, or at all, and we may be unable to hire or retain sufficient numbers of qualified individuals in the future in the markets and segments where we do business. Our business will be harmed if our sales expansion efforts do not generate a significant increase in revenue.

Our results of operations may be adversely impacted by the COVID-19 pandemic.

The global spread of the COVID-19 pandemic and related containment efforts have materially affected how we and our customers operate our respective businesses. Although in some ways the pandemic may have accelerated our growth, the longer-term effects on our business and the overall economy remain highly uncertain. For example, substantially all of our personnel have been working from home for over a year. As COVID-19 related restrictions ease, we carefully assess conditions to determine when employees can safely return to our offices, and as a result we plan to partially reopen our offices in the second half of 2021. As we contemplate a return to in-person work arrangements, we may offer a significant percentage of our employees flexibility in the amount of time they work in an office. This may present operational and workplace culture challenges and risks, including reduced productivity, lower employee retention, and increased compliance and tax obligations in a number of jurisdictions. In addition, our management team has spent, and will likely continue to spend, significant time, attention and resources monitoring the COVID-19 pandemic and associated global economic uncertainty and seeking to manage its effects on our business and workforce. Our efforts to re-open our offices safely may also expose our employees, customers and other third parties to health risks and us to associated liability, and they will involve additional financial burdens.  Similarly, many of our customers, vendors and other third parties with which we conduct business are also working from home

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or transitioning to in-person work arrangements, working at reduced staffing levels and dealing with other challenges, such as supply chain disruptions and revised budgets, that are forcing them to conduct business in different ways. The extent to which these parties suffer inefficiencies or other risks from these different arrangements, and the extent to which these risks may impact us, is impossible to predict.

The duration of the pandemic, whether it may recur, and its other long-term economic impacts are highly uncertain. These uncertainties make it challenging to manage our growth, maintain business relationships, price our subscription and otherwise operate and plan for our business. For example, with a broad section of the population are still working from home full-time or part-time and educational institutions teaching remotely, increased demand for internet access could cause general access issues, affect our and our customers’ business interactions or cause issues with access to data centers. Moreover, the economic impacts of COVID-19 have affected and may continue to affect customer and prospective customer spending on technology such as ours, particularly for businesses involving in-person interactions, such as hospitality, manufacturing and professional services businesses. These customers may experience reduced revenue and revised budgets, which may adversely affect our customers’ ability or willingness to purchase subscriptions to our platform, the timing of subscriptions, customer retention, and the value or duration of subscriptions, all of which could adversely affect our operating results. It is also possible that, if the effects of the COVID-19 pandemic subside, particularly as more people get vaccinated, our customers and their users will resume in-person marketing activities in a way that decreases usage of our platform. The extent of the impact of COVID-19 on our business and financial performance may be influenced by a number of factors, many of which we cannot control, including the duration and spread of the pandemic, future spikes of COVID-19 infections resulting in additional preventative measures, the severity of the economic decline attributable to the pandemic, the timing and nature of a potential economic recovery, the impact on our customers and our sales cycles, and our ability to generate new business leads.

Due to our subscription-based business model, the effect of the COVID-19 pandemic may not be fully reflected in our results of operations until future periods. In addition, uncertainty regarding the impact of COVID-19 on our future operating results and financial condition may result in our taking cost-cutting measures, reducing the level of our capital investments and delaying or canceling the implementation of strategic initiatives, any of which may negatively impact our business and reputation. The global macroeconomic effects of the COVID-19 pandemic and related impacts on our customers’ business operations and their demand for our solutions may persist for an indefinite period, even after the COVID-19 pandemic has subsided. In addition, the effects of the COVID-19 pandemic may heighten many of the other risks we face, including those described in this Report.

We rely heavily on third parties for parts of our computing, storage, processing, application integration and similar services. Any disruption of or interference with our use of these third-party services could have an adverse effect on our business, financial condition, and operating results.

We have outsourced aspects of our infrastructure to third-party providers, and we currently use these providers to host and stream content and support our platform. For example, our content delivery networks and some of our integration services are provided by third parties, and we plan to continue our transition to a hybrid public/private cloud infrastructure in the future. Accordingly, we are vulnerable to service interruptions experienced by these providers, and we expect to experience interruptions, delays, or outages in service availability in the future due to a variety of factors, including infrastructure changes, human, hardware or software errors, hosting disruptions, and capacity constraints. We expect that transitioning to a more hybrid cloud infrastructure will require significant investment and have a continuing effect on our cost of revenue and may not be effective in improving our capacity or redundancy. Outages and capacity constraints could also arise from a number of causes such as technical failures, natural disasters, fraud, or security attacks. The level of service provided by these providers, or regular or prolonged interruptions in that service, could also affect the use of, and our customers’ satisfaction with, our solutions and could harm our business and reputation. In addition, third-party costs will increase as subscriptions and customer use of our platform grows, which could harm our business if we are unable to grow our revenue faster than the cost of using these services or the services of similar providers.

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Furthermore, our providers may change the terms of service and policies pursuant to which they provide services to us, and those actions may be unfavorable to our business operations. Our providers may also take actions beyond our control that could seriously harm our business, including discontinuing or limiting our access to one or more services, increasing pricing terms, terminating or seeking to terminate our contractual relationship altogether, or altering how we are able to process data in a way that is unfavorable or costly to us. For example, some businesses providing data connectors to our products may fail to properly integrate with our platform and third-party sales and marketing systems, stop servicing the data connectors or cease development and support, any of which may limit functionality of our products. In addition, some businesses that provide cloud services and data connectors are or may become our competitors and may take one or more of the foregoing actions in an effort to compete with our platform. Although we expect that we could obtain similar services from other third parties, if our arrangements with our current providers were terminated, we could experience interruptions on our platform and in our ability to make our content available to customers, as well as delays and additional expenses in arranging for alternative cloud infrastructure services.

Any of these factors could cause network disruptions, or even network failure, reduce our revenue, subject us to liability, and cause our customers to decline to renew their subscriptions, any of which could harm our business.

Interruptions, delays or outages in service from the data centers we use for our technology or infrastructure could impair the delivery and the functionality of our solutions, which may harm our business.

Our growth, brand, reputation and ability to attract and retain customers depend in part on the ability of our customers to access our platform at any time and within an acceptable amount of time. We currently use U.S. data centers in Colorado and California. While each of our U.S. data centers provide fully redundant processing, we estimate that failover may require as long as 90 minutes to complete, during which time our platform may not be fully available to customers in the event of catastrophic failure at one of those data centers. In addition, our data center redundancy does not ensure that all platform disruptions can be restored within 90 minutes in the absence of a catastrophic failure at one of these data centers.  For example, it is possible that ON24 platform services could be impacted by a cybersecurity incident that cannot be fully resolved by failover to another data center.  

To facilitate additional growth in Europe, we have recently opened a new data center in the European Union (or the ‘EU’.) We have no experience operating a data center in the EU. Our efforts to further diversify our data centers, including internationally, may not be successful.  We intend to add failover redundancy for our EU data center, but we currently do not have it, and it may take longer than we expect to add it.  While the data in our EU data center is fully backed up in a different location, restoring from backup may take up to 24 hours.  

We also do not control the operation of the data centers we use, and they are vulnerable to damage or interruption from human error, intentional bad acts, natural disasters, war, terrorist attacks, cyber attacks and other cybersecurity incidents, power losses, hardware failures, systems failures, telecommunications failures and similar events, any of which could disrupt our service. In the event of significant physical damage to one of these data centers, it may take a significant period of time to achieve full resumption of our platform, and our disaster recovery planning may not account for all eventualities.  

In addition, our platform is proprietary, and we depend on the expertise and efforts of members of our operations and software development teams for its continued performance. Our ability to retain, attract, hire and train staff in these groups may prove to be a challenge for a variety of factors and could have an adverse impact on the platform. We have experienced, and may in the future experience, service disruptions, outages and other performance problems due to a variety of factors, including infrastructure changes, introductions of new functionality, human or software errors, capacity constraints due to an overwhelming number of users accessing our platform concurrently and denial-of-service attacks, ransomware attacks and other cybersecurity incidents by malicious actors. In some instances, we may not be able to rectify these performance issues within an acceptable period of time.

Our ability to attract and retain customers depends on our ability to provide our customers and their users with a highly reliable platform. If our platform is unavailable or if our customers and their users are unable to access our platform within a reasonable amount of time, or at all, our business, results of operations and financial condition would be adversely affected. Additionally, if the data centers we use are unable to keep up with our increasing need for capacity, our customers may experience delays as we seek to obtain additional capacity, which could harm our business.

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Cybersecurity-related attacks, significant data breaches or disruptions of the information technology systems or networks on which we rely could negatively affect our business.

Our operations rely on information technology systems for the use, storage and transmission of sensitive and confidential information with respect to our customers, our customers’ users, third-party technology platforms and our employees. In addition, our solutions gather more information from our customers and their users than many competing products, which may make us an attractive target for a malicious cyber security attack, intrusion or disruption, or other breach of our systems. Any such event could lead to unauthorized access to, use of, disclosure of or the loss of sensitive and confidential information, disruption of our platform, and resulting regulatory enforcement actions, litigation, indemnity obligations and other possible liabilities, as well as negative publicity, any of which could damage our reputation, impair sales and harm our business. For example, in June 2021 we were subject to a security incident involving ransomware, which impacted certain internal systems and a limited number of customer events. Some data maintained in our internal systems was also impacted. Promptly upon detecting the incident, we launched an investigation, engaged with law enforcement, and took steps to contain the incident and restore impacted event types. To date, such security incident has not resulted in any material impact to our operations, ability to provide our services, results of operations or financial position, but the full effects of the security incident may not be known and may still have a material impact on us. While we believe we have responded appropriately to date, including with respect to the steps we have taken to contain the security incident and our implementation of remedial measures with the goal of preventing security incidents in the future, these remedial measures may not be successful in preventing future security incidents, which may result in adverse impacts to our operations, ability to provide our services, results of operations or financial position. Additionally, as our market presence grows, we may face increased risks of cyber-related attacks or security threats in the future.

Cyberattacks and other malicious internet-based activity continue to increase, and cloud-based providers of products and services have been and are expected to continue to be targeted. In addition to traditional computer “hackers,” malicious code (such as viruses and worms), phishing, ransomware, employee theft or misuse and other insider threats, and denial-of-service attacks, sophisticated nation-state and nation-state supported actors now engage in attacks (including advanced persistent threat intrusions). As we grow, we may face increased risk of any such attacks. Despite efforts to create security barriers to such threats, it is not feasible, as a practical matter, for us to entirely mitigate these risks. If our security measures are compromised as a result of third-party action, employee, customer, or user error, malfeasance, stolen or fraudulently obtained log-in credentials or otherwise, our reputation would be damaged, our data, information or intellectual property, or those of our customers, may be destroyed, stolen or otherwise compromised, our business may be harmed and we could incur significant liability. We may be unable in the future to anticipate or prevent techniques used to obtain unauthorized access to or compromise of our systems because they change frequently and are generally not detected until after an incident has occurred. We may not be able to prevent vulnerabilities in our software or address vulnerabilities that we may become aware of in the future. Further, as we rely on third-party cloud infrastructure, we depend in part on third-party security measures to protect against unauthorized access, cyberattacks and the mishandling of data and information.

Any cybersecurity event, including the security incident we experienced in June 2021 or any future vulnerability in our software, cyberattack, intrusion or disruption, could result in significant increases in costs, including costs for remediating the effects of such an event, lost revenue due to network downtime, a decrease in customer and user trust, increases in insurance premiums due to cybersecurity incidents, increased costs to address cybersecurity issues and attempts to prevent future incidents, and harm to our business and our reputation because of any such incident. In addition, such incidents and data breaches can give rise to penalties and fines under data protection and cybersecurity laws, rules and regulations, enforcement actions, contractual damages, class actions, customer audits and other liability.

Many jurisdictions have enacted laws requiring companies to provide notice of data security incidents involving certain types of personal data. Under some of these laws, such as the EU General Data Protection Regulation, or GDPR, data breach is defined very broadly to include any accidental or unlawful destruction, loss, alteration, unauthorized disclosure of, or access to any personal data, regardless of the sensitivity of such data. In addition, certain platform information may be made available via unique links to publicly accessible webpages, which could be accessed by unauthorized individuals. While the information accessible via these pages is limited, it is possible that a regulator, customer or third party could view this negatively, in particular in light of the broad definition of personal data and data breach under certain laws. In addition, we have contractual obligations to notify our customers of any data breaches involving their personal data processed by us.

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Any limitation of liability provisions in our subscription agreements may not be enforceable or adequate or may not otherwise protect us from any such liabilities or damages with respect to any claim related to a cybersecurity incident. Our existing general liability insurance coverage and coverage for errors or omissions may not continue to be available on acceptable terms or may not be available in sufficient amounts to cover one or more large claims. The insurer may deny coverage as to any future claim. The successful assertion of one or more large claims against us that exceed available insurance coverage, or the occurrence of changes in our insurance policies, including premium increases or the imposition of large deductible or co-insurance requirements, would harm our business.

Further, security compromises experienced by our competitors, by our customers or by us may lead to widespread negative publicity. Any security compromise in our industry, whether actual or perceived, could harm our reputation, erode confidence in the effectiveness of our security measures, negatively affect our ability to attract new customers, encourage consumers to restrict the sharing of their personal data with our customers or social media networks, cause existing customers to elect not to renew their subscriptions or subject us to lawsuits, regulatory fines or other action or liability, which could harm our business.

We may not be able to respond to rapid technological changes, extend our platform or develop new features.

The markets in which we compete are characterized by rapid technological change and frequent new product and service introductions. Our ability to attract new customers and retain and expand the usage of existing customers depends on our ability to continue to enhance and improve our platform, to introduce new features and solutions and to interoperate across an increasing range of devices, operating systems and third-party applications. Our customers may require features and capabilities that our current platform does not have. We invest significantly in research and development, focusing on improving the quality and range of our product offerings. Our enhancements to our platform and our new product experiences, features or capabilities may not be compelling to our existing or potential customers and may not gain market acceptance. If our research and development investments do not accurately anticipate customer demand, or if we fail to develop our platform in a manner that satisfies customer preferences in a timely and cost-effective manner, we may fail to retain our existing customers or increase demand for our platform.

The introduction of competing products and services or the development of entirely new technologies to replace existing offerings could make our platform obsolete or adversely affect our business, results of operations and financial condition. We may experience difficulties with software development, design or marketing that could delay or prevent our development, introduction, or implementation of new product experiences, features, or capabilities. New product experiences, features or capabilities may not be released according to schedule. Any delays could result in adverse publicity, loss of revenue or market acceptance, or claims by customers brought against us, all of which could harm our business. If customers do not widely adopt our new product experiences, features and capabilities, we may not be able to realize a return on our investment. If we are unable to develop, license or acquire new features and capabilities to our platform on a timely and cost-effective basis, or if such enhancements do not achieve market acceptance, our business would be harmed.

Our sales cycle with enterprise customers can be long and unpredictable.

A substantial portion of our business is with large enterprise customers. We define a customer as a unique organization, including its subsidiaries and affiliates, that has entered into an agreement for paid access to our platform. As of June 30, 2021, we had 345 customers contributing at least $100,000 in ARR, or $100k Customers, which are generally large organizations, representing 67% of our ARR. The timing of our sales with our enterprise customers and related revenue recognition is difficult to predict because of the length and uncertainty of the sales cycle for these customers. We are often required to spend significant time and resources to educate and familiarize these potential customers with the value proposition of paying for our platform. The length of our sales cycle for these customers, from initial evaluation to payment for our platform, is often around three to six months or more and can vary substantially from customer to customer. As a result, it is difficult to predict whether and when a sale will be completed. An inability to increase our enterprise customer base could harm our business.

We are continuing to expand our operations outside the United States, where we may be subject to increased business and economic risks that could harm our business.

In the three and six months ended June 30, 2021, we generated 26% and 26%, respectively, of our revenue from customers outside of the United States. We expect to continue to expand our international operations. For example, we

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recently established a subsidiary in Japan to support our operations in the Asia-Pacific region. Our efforts to expand our current international operations, including entering new markets or countries, may not be effective. For example, we may not be able to expand further in some markets if we are not able to satisfy certain government- and industry-specific requirements. In addition, our ability to manage our business and conduct our operations internationally in the future may require considerable management attention and resources and is subject to the particular challenges of supporting a rapidly growing business in an environment of multiple languages, cultures, customs, legal and regulatory systems and commercial markets. Future international expansion will require investment of significant funds and other resources. Operating internationally subjects us to special risks, including risks associated with:

• recruiting and retaining talented and capable employees outside the United States and maintaining our company culture across all of our offices;

• providing our platform and operating our business across a significant distance, in different languages and among different cultures, including the potential need to modify our platform and features to ensure that they are culturally appropriate and relevant in different countries;

• determining the appropriate pricing strategy to enable us to compete effectively internationally, which may be different than the pricing strategies that have worked for us in the United States;

• compliance with applicable international laws and regulations, including laws and regulations with respect to privacy, data protection and marketing, and the risk of penalties to us and individual members of management or employees if our practices are deemed to be out of compliance;

• management of an employee base in jurisdictions that may not give us the same employment and retention flexibility as does the United States;

• difficulties in managing and staffing international operations including the proper classification of independent contractors and other contingent workers, differing employer/employee relationships, and local employment laws;

• operating in jurisdictions that do not protect intellectual property rights to the same extent as does the United States and the practical enforcement of such intellectual property rights outside of the United States;

• foreign government interference with our intellectual property that is developed outside of the United States, such as the risk that changes in foreign laws could restrict our ability to use our intellectual property outside of the jurisdiction in which we developed it;

• integration with partners outside of the United States;

• compliance by us and our business partners with anti-corruption laws, import and export control laws, tariffs, trade barriers, economic sanctions and other regulatory limitations on our ability to provide our platform in certain international markets;

• foreign business restrictions, foreign exchange controls and similar laws that might require significant lead time in setting up operations in certain geographic territories and might prevent us from repatriating cash earned outside the United States;

• political and economic instability;

• changes in diplomatic and trade relationships, including the imposition of new trade restrictions, trade protection measures, import or export requirements, trade embargoes and other trade barriers;

• generally longer payment cycles and greater difficulty in collecting accounts receivable;

• double taxation of our international earnings and potentially adverse tax consequences due to changes in the income and other tax laws of the United States or the international jurisdictions in which we operate; and

• higher costs of doing business internationally, including increased accounting, travel, infrastructure and legal compliance costs.

Compliance with laws and regulations applicable to our global operations substantially increases our cost of doing business in international jurisdictions. We may be unable to keep current with changes in laws and regulations in each jurisdiction as they occur. Our policies and procedures designed to support compliance with these laws and regulations may

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not always result in our compliance or that of our employees, contractors, partners and agents. Any violations could result in enforcement actions, fines, civil and criminal penalties, damages, injunctions or reputational harm. If we are unable to comply with these laws and regulations or manage the complexity of our global operations successfully, we may need to relocate or cease operations in certain foreign jurisdictions.

We recognize revenue from subscriptions to our platform over the terms of the subscriptions. Consequently, increases or decreases in new sales are generally not immediately reflected in our results of operations and may be difficult to discern.

We recognize revenue from subscriptions to our platform over the terms of the subscriptions. As a result, a substantial portion of the revenue we report in each quarter is derived from the recognition of deferred revenue relating to subscriptions entered into during previous quarters. Consequently, a decline in new or renewed subscriptions in any single quarter may have a small impact on the revenue that we recognize for that quarter. However, such a decline will negatively affect our revenue in future quarters. Accordingly, the effect of significant downturns in sales and potential changes in our pricing policies or rate of customer expansion or retention may not be fully reflected in our results of operations until future periods. In addition, a significant portion of our costs are recognized as they are incurred, while revenue is recognized over the term of the subscription. As a result, growth in the number of new customers could continue to result in our recognition of higher costs and lower revenue in the earlier periods of such growth. Finally, our subscription-based revenue model also makes it difficult for us to rapidly increase our revenue through additional sales in any period, as revenue from new customers or from existing customers that increase their usage of our product offerings must be recognized over the applicable subscription term.

Our ability to sell subscriptions to our products could be harmed by real or perceived material defects or errors in our platform or by other matters that may interrupt the availability of our platform or cause performance issues.

The software underlying our platform is inherently complex and may contain material defects or errors, particularly when we first introduce new solutions or when we release new features or capabilities. We have from time to time found defects or errors in our platform, and we or our users may detect new defects or errors in our existing or future platform or solutions. Any real or perceived errors, failures, vulnerabilities, or bugs in our platform could result in negative publicity or lead to data security, access, retention or other performance issues, all of which could harm our business. We may incur substantial costs in correcting such defects or errors and such costs could harm our business. Moreover, the harm to our reputation and potential legal liability related to such defects or errors may be substantial and could harm our business.

Our platform also utilizes hardware that we purchase or lease and software and services that we procure from third parties. In some cases, this includes software we license from international companies that may in the future become subject to legal or regulatory limitations on their ability to provide software outside of their jurisdiction. Any defects in, or unavailability of, our third-party hardware, software or services that cause interruptions to the availability of our platform, loss of data or performance issues could, among other things:

• cause a reduction in our revenue or a delay in market acceptance of our platform;

• require us to issue refunds to our customers or expose us to claims for damages;

• cause us to lose existing customers and make it more difficult to attract new customers;

• divert our development resources or require us to make extensive changes to our platform, which would increase our expenses;

• increase our technical support costs; and

• harm our reputation and brand.

The contractual protections, such as warranty disclaimers and limitation of liability provisions, in our customer agreements may not fully or effectively protect us from claims by customers or other third parties. Any insurance coverage we may have may not adequately cover all claims asserted against us or may only cover a portion of such claims. A successful product liability, warranty, or other similar claim against us could have an adverse effect on our business, operating results, and financial condition. In addition, even claims that ultimately are unsuccessful could result in our expenditure of funds in litigation and divert management’s time and other resources.

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The experience of our customers and their users depends upon the interoperability of our platform across devices, operating systems and third-party applications that we do not control, and if we are not able to maintain and expand our relationships with third parties in order to integrate our platform with their products, our business may be harmed.

Our products have broad interoperability with a range of diverse devices, operating systems and third-party applications. Our platform is accessible from the web and from devices running Windows, Mac OS, iOS and Android. We depend on the accessibility of our platform across these and other third-party operating systems and applications that we do not control. For example, given the broad adoption of Salesforce’s products, it is important that we are able to integrate with its software. Several potential competitors have inherent advantages by being able to develop products and services internally that more tightly integrate with their own software platforms or those of their business partners.

We may not be able to modify our platform or products to maintain their continued compatibility with that of third parties’ products and services that are constantly evolving. In addition, some of our competitors may be able to disrupt the ability of our platform and products to operate with their products or services, or they could exert strong business influence on our ability to, and the terms on which we, operate and provide access to our platform and products. Should any of these third parties modify their products or services in a manner that degrades the functionality of our platform or products, or that gives preferential treatment to their own or competitive products or services, whether to enhance their competitive position or for any other reason, the interoperability of our platform and products with these third-party products and services could decrease and our business could be harmed.

Our business depends on a strong brand, and if we are not able to maintain and enhance our brand, our ability to expand our base of users will be impaired and our business will be harmed.

We believe that our brand identity and awareness have contributed to our success. We believe that the importance of our brand and market awareness of the benefits of our platform and products will increase as competition in our market further intensifies. Successful promotion of our brand will depend on a number of factors, including the effectiveness of our marketing efforts, thought leadership, our ability to provide a high-quality, reliable and cost-effective platform, the perceived value of our platform and products and our ability to provide quality customer success and support experience. Brand promotion activities require us to make substantial investments. The promotion of our brand, however, may not generate customer awareness or increase revenue, and any increase in revenue may not offset the expenses we incur in building and maintaining our brand.

Our estimates of market opportunity and forecasts of market growth may prove to be inaccurate, and even if the market in which we compete achieves the forecasted growth, our business could fail to grow at a similar rate, if at all.

Market opportunity estimates and growth forecasts, including those we have generated ourselves, are subject to significant uncertainty and are based on assumptions and estimates that may not prove to be accurate. Not every organization covered by our market opportunity estimates will necessarily purchase subscriptions for our solutions or similar products or services at all, and some or many of those organizations may choose to continue using products or services offered by our competitors. It is impossible to build every product feature that every customer wants, and our competitors may develop and offer features that our platform does not provide. The variables used in the calculation of our market opportunity are subject to change over time, and there is no guarantee that any particular number or percentage of the organizations covered by our market opportunity estimates will generate any particular level of revenue for us, if any. Even if the market in which we compete meets our size estimates and growth forecasts, our business could fail to grow for a variety of reasons outside of our control, including competition in our industry, customer preferences or the other risks set forth in this Report and other documents we filed with the SEC from time to time. If any of these risks materialize, it could harm our business and prospects.

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Our business may be significantly impacted by a change in the economy, including any resulting effect on business spending.

Our business may be affected by changes in the economy generally, including any resulting effect on spending by our customers. While some of our customers may consider our platform to be a cost-saving purchase by, among other things, decreasing the need for large, in-person events, others may view a subscription to our platform as a discretionary purchase, and such customers may reduce their discretionary spending on our platform during an economic downturn. Particularly in light of COVID-19, some of our customers may experience reduced revenue and revised budgets, which may adversely affect our customers’ ability or willingness to purchase subscriptions to our platform, the timing of subscriptions, and the value or duration of subscriptions, all of which could adversely affect our operating results. If an economic downturn were to occur, we may experience such a reduction in demand and loss of customers, especially in the event of a prolonged recessionary period.

If we were to lose the services of our Chief Executive Officer or other members of our senior management team, we may not be able to execute our business strategy.

Our success depends in a large part upon the continued service of key members of our senior management team. In particular, our co-founder, President and Chief Executive Officer, Sharat Sharan, is critical to our overall management, as well as the continued development of our solutions, our culture, our strategic direction, our engineering and our operations. All of our executive officers are at-will employees, and we do not maintain any key person life insurance policies. The loss of any member of our senior management team could harm our business.

The failure to attract and retain additional qualified personnel could harm our business and culture and prevent us from executing our business strategy.

To execute our business strategy, we must attract and retain highly qualified personnel. Competition for executives, software developers, sales personnel and other key employees in our industry is intense. In particular, we compete with many other companies for software developers with high levels of experience in designing, developing and managing software for live engagement technologies, as well as for skilled sales and operations professionals. At times, we have experienced, and we may continue to experience, difficulty in hiring and retaining employees with appropriate qualifications, and we may not be able to fill positions. Circumstances relating to COVID-19 may create increased demand for personnel with experience in live engagement technology, which may make it more difficult for us to attract and retain qualified personnel. If we fail to attract new personnel or fail to retain and motivate our current personnel, our business could be harmed.

Many of the companies with which we compete for experienced personnel have greater resources than we have, and some of these companies may offer greater compensation packages. Particularly, in the San Francisco Bay Area, job candidates and existing employees carefully consider the value of the equity awards they receive in connection with their employment. If the perceived value of our equity awards declines, or if the mix of equity and cash compensation that we offer is unattractive, it may adversely affect our ability to recruit and retain highly skilled employees. Job candidates may also be threatened with legal action under agreements with their existing employers if we attempt to hire them, which could impact hiring and result in a diversion of our time and resources. Additionally, laws and regulations, such as restrictive immigration laws, may limit our ability to recruit internationally. We must also continue to retain and motivate existing employees through our compensation practices, company culture and career development opportunities. If we fail to attract new personnel or to retain our current personnel, our business would be harmed.

As a result of the COVID-19 pandemic, substantially all of our personnel have been working from home for over a year. As COVID-19 related restrictions ease, we plan to partially reopen our offices in the second half of fiscal year 2021, but the working arrangements when we return to the office may differ from the arrangements before the COVID-19 pandemic; we expect that some of our employees may continue to work from home full-time or part-time. The full or partial return to in-office work and the potential transition to permanent remote working arrangements for some employees may result in increased costs, decreased efficiency, deterioration of corporate culture and other unforeseen challenges. Any failure to preserve our culture could also negatively affect our ability to retain and recruit personnel, continue to perform at current levels or execute on our business strategy.

In addition, many of our employees may be able to receive significant proceeds from sales of our equity in the public markets, which may reduce their motivation to continue to work for us. Moreover, these proceeds could create disparities in wealth among our employees, which may harm our culture and relations among employees and our business.

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We may not successfully manage our growth or plan for future growth.

We experienced rapid growth since 2020. The growth and expansion of our business places a continuous, significant strain on our management, operational and financial resources. Our information technology systems and our internal controls and procedures may not adequately keep pace with our growth. In addition, as we continue to grow, we face challenges of integrating, developing and motivating a rapidly growing employee base in various countries around the world. Certain members of our management do not have experience managing a public company, which may affect how they manage our growth. Managing our growth will also require significant expenditures and allocation of valuable management resources.

In addition, our rapid growth since 2020 may make it difficult to evaluate our future prospects. Our ability to forecast our future results of operations is subject to a number of uncertainties, including our ability to effectively plan for and model future growth. We have encountered in the past, and may encounter in the future, risks and uncertainties frequently experienced by growing companies in rapidly changing industries. If we fail to achieve the necessary level of efficiency in our organization as it grows, or if we are not able to accurately forecast future growth, our business would be harmed.

We identified a material weakness in our internal control over financial reporting, and, if our remediation of this material weakness was not effective, or if we fail to maintain effective internal control over financial reporting in the future, our ability to produce accurate and timely consolidated financial statements could be impaired, which could adversely affect investor confidence in our company and, as a result, the value of our common stock.

In connection with the audit of our consolidated financial statements as of and for the year ended December 31, 2019, we and our independent registered public accounting firm identified a material weakness in our internal control over financial reporting. A material weakness is a deficiency, or a combination of deficiencies, in internal control over financial reporting, such that there is a reasonable possibility that a material misstatement of our consolidated financial statements will not be prevented or detected on a timely basis. The material weakness related to a lack of resources necessary to operate controls in a timely manner and with sufficient precision, primarily relating to recording revenue, which require greater automation and changes to design so that controls operate with satisfactory precision.

The material weakness resulted in errors in our 2018 and 2019 consolidated financial statements related primarily to revenue recorded in connection with our previous revenue model. Prior to our current cloud-based subscription model, we generated revenue from our Webcast Center offering, or our Legacy offering, which mainly consisted of fully managed events and associated services for which we recognize revenue at a point in time as events occur. We concluded that the errors relating to revenue recorded in 2018 and 2019 were immaterial individually and in the aggregate. In connection with shifting to our current data-driven, cloud-based subscription model, we stopped selling our Legacy offering to new customers in 2018 and to all customers in 2020, and substantially all Legacy revenue ceased after December 2020. We believe that this transition substantially limits the potential for the recurrence of the errors impacting revenue that resulted from the material weakness. The material weakness also resulted in errors in accounting for the classification of our convertible Class A-1 and Class A-2 preferred stock on our consolidated balance sheet, which have since been corrected. In addition, we made certain corrections in recording professional services revenue, which were reflected in our financial statements as of and for the year ended December 31, 2020 prior to those financial statements being issued.

We took several steps to address the underlying cause of the material weakness, including adding additional resources to enhance our internal control over financial reporting, implementing enhanced processes and review controls for the manual processes involved in our revenue recognition, and transitioning to new and more automated processes for capturing and recording revenue transactions. Although we believe these measures remediated the material weakness we identified, we may in the future have material weaknesses. We also cannot be certain that we have identified all existing material weaknesses or that we will not in the future have additional material weaknesses.

Our current efforts to maintain an effective control environment may not be sufficient to prevent future material weaknesses or significant deficiencies from occurring or to promptly remediate any such future material weaknesses or significant deficiencies. If we have or in the future identify additional material weaknesses, we may be unable to accurately or timely report our financial results, which may result in litigation or regulatory action, a loss of investor confidence, restricted access to the capital markets and declines in the price of our common stock.

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If we fail to maintain an effective system of disclosure controls and internal control over financial reporting, our ability to produce timely and accurate financial statements or comply with applicable regulations could be impaired.

As a public company, we are subject to the reporting requirements of the Exchange Act, the Sarbanes-Oxley Act, and the rules and regulations of the applicable listing standards of the NYSE. We expect that the requirements of these rules and regulations will continue to increase our legal, accounting and financial compliance costs, make some activities more difficult, time-consuming and costly and place significant strain on our personnel, systems and resources.

The Sarbanes-Oxley Act requires, among other things, that we maintain effective disclosure controls and procedures and internal control over financial reporting. We are continuing to develop and refine our disclosure controls and other procedures that are designed to ensure that information required to be disclosed by us in the reports that we will file with the Securities and Exchange Commission, or the SEC, is recorded, processed, summarized and reported within the time periods specified in SEC rules and forms and that information required to be disclosed in reports under the Exchange Act is accumulated and communicated to our principal executive and financial officers. We are also continuing to improve our internal control over financial reporting. In order to maintain and improve the effectiveness of our disclosure controls and procedures and internal control over financial reporting, we have expended, and anticipate that we will continue to expend, significant resources, including accounting-related costs and significant management oversight.

Our current controls and any new controls that we develop may become inadequate because of changes in conditions in our business. In addition, changes in accounting principles or interpretations could also challenge our internal controls and require that we establish new business processes, systems and controls to accommodate such changes. We have limited experience with implementing the systems and controls that will be necessary to operate as a public company, as well as adopting changes in accounting principles or interpretations mandated by the relevant regulatory bodies. Additionally, if these new systems, controls or standards and the associated process changes do not give rise to the benefits that we expect or do not operate as intended, it could adversely affect our financial reporting systems and processes, our ability to produce timely and accurate financial reports or the effectiveness of internal control over financial reporting. Moreover, our business may be harmed if we experience problems with any new systems and controls that result in delays in their implementation or increased costs to correct any post-implementation issues that may arise.

Further, weaknesses in our disclosure controls and internal control over financial reporting may be discovered in the future. Any failure to develop or maintain effective controls or any difficulties encountered in their implementation or improvement could harm our business or cause us to fail to meet our reporting obligations and may result in a restatement of our financial statements for prior periods. Any failure to implement and maintain effective internal control over financial reporting also could adversely affect the results of periodic management evaluations and annual independent registered public accounting firm attestation reports regarding the effectiveness of our internal control over financial reporting that we will eventually be required to include in our periodic reports that will be filed with the SEC. Ineffective disclosure controls and procedures and internal control over financial reporting could also cause investors to lose confidence in our reported financial and other information, which would likely have a negative effect on the trading price of our common stock. In addition, if we are unable to continue to meet these requirements, we may not be able to remain listed on the NYSE. We are not currently required to comply with the SEC rules that implement Section 404 of the Sarbanes-Oxley Act and are therefore not required to make a formal assessment of the effectiveness of our internal control over financial reporting for that purpose. As a public company, we will be required to provide an annual management report on the effectiveness of our internal control over financial reporting commencing with our second annual report on Form 10-K.

Our independent registered public accounting firm is not required to formally attest to the effectiveness of our internal control over financial reporting until our first annual report on Form 10-K filed with the SEC when we are an accelerated filer or a large accelerated filer, which will not occur until at least our second annual report on Form 10-K. At such time, our independent registered public accounting firm may issue a report that is adverse in the event it is not satisfied with the level at which our internal control over financial reporting is documented, designed or operating. Any failure to maintain effective disclosure controls and internal control over financial reporting could harm our business and could cause a decline in the trading price of our common stock.

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Any failure to offer high-quality support may harm our relationships with our customers and, consequently, our business.

We have designed our platform to be easy to adopt and use with minimal support. However, if we experience increased demand for support, we may face increased support costs. In addition, as we continue to grow our operations and support our global customer base, we must continue to provide efficient support that meets our customers’ needs, including by integrating with or building solutions that allow streamlined support workflows, or by hiring additional support personnel if necessary. Our ability to acquire new customers significantly depends on our business reputation and on positive recommendations from our existing customers. Any failure to maintain, or a market perception that we do not maintain, high-quality support could harm our business.

Our business could be disrupted by catastrophic events.

Occurrence of any catastrophic event, including pandemics and a worsening of the COVID-19 pandemic, earthquake, fire, flood, tsunami or other weather event, power loss, telecommunications failure, software or hardware malfunctions, cyberattacks, war or terrorist attacks, could result in lengthy interruptions in our service. In particular, our U.S. headquarters and one of the data centers we utilize are located in the San Francisco Bay Area, a region known for seismic activity, and our insurance coverage may not compensate us for losses that may occur in the event of an earthquake or other significant natural disaster. In addition, acts of terrorism could cause disruptions to the internet, the electric grid or the economy as a whole. Even with our disaster recovery arrangements, our service could be interrupted. If our systems were to fail or be negatively impacted as a result of a natural disaster or other catastrophic event, our ability to deliver our solutions to our customers would be impaired or we could lose critical data. If we are unable to develop adequate plans to ensure that our business functions continue to operate during and after a disaster and to execute successfully on those plans in the event of a disaster or emergency, our business could be harmed.

Our actual or perceived failure to comply with privacy laws could harm our business.

Businesses use our platform to facilitate better engagement with their customers and prospects, derive insights about content and usage, and provide more meaningful and targeted experiences and content. These capabilities rely on collection and processing of personal information through our platform. As a result, compliance with laws and regulations regarding data privacy, cybersecurity, data protection, data breaches, and the collection, processing, storage, transfer and use of personal data, which we collectively refer to as privacy laws, are critical to our business. While we strive to comply with applicable privacy laws and legal obligations, the impact, requirements and enforcement risks associated with privacy laws vary, and in some cases may even conflict, across jurisdictions.

Our roles and obligations under privacy laws, and consequently our potential liability, may vary. In some cases, our customers may pass through privacy law compliance obligations and requirements to us contractually. We have customers in numerous jurisdictions worldwide, and our customers may try to impose broad obligations on us pursuant to all privacy laws applicable to them and may decide not to do business with us if we will not agree to their privacy terms. Certain significant privacy laws (such as the GDPR) impose obligations directly on many of our customers, as “data controllers,” as well as on us both as a “data processor” for personal data processed on behalf of our customers pursuant to our platform, which we refer to as the platform personal data, and as a “controller” for the personal data we collect related to employees and personnel, our B2B relationships, and our marketing, sales and other activities, which we refer to as the ON24 business data. Under these privacy laws, we typically have fewer direct obligations as a “data processor” or “service provider” than our customers do, with respect to platform personal data. However, we can still be subject to significant liability for noncompliance with such laws, including, for example, under the GDPR, which provides for penalties of up to the greater of €20 million or four percent of worldwide annual revenue. Certain other privacy laws do not clearly distinguish between “controller” and “processor” or similar roles. Where such privacy laws apply, we could be subject to increased risks if our customers fail to comply with notice, consent and other requirements under applicable privacy laws in their use of our platform. While we generally require and rely on our customers to ensure that their use of our platform and associated personal information processing complies with applicable privacy laws, our customers could fail to comply with these requirements, which could expose us to risks under certain privacy laws.

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Further, even similar privacy laws may be subject to evolving or differing interpretations and enforcement risks. For example, across the EU, supervisory authorities of EU member states may issue data protection guidance and opinions regarding the GDPR that may vary. Also, under the current ePrivacy Directive and associated EU member state legislation, the rules governing marketing, “cookies” and online advertising vary among EU member states. In addition, across jurisdictions, privacy laws may include varied and inconsistent requirements. As a result, certain features of our platform and products could pose risks or need to be modified for certain jurisdictions, but not for others. Such requirements could reduce demand for our products, require us to take on more onerous obligations in our contracts, restrict our ability to collect, store, transfer and process data or, in some cases, impact our customers’ use of our platform.

Furthermore, general customer and buyer trust as to the responsible use of data may cause business buyers to resist providing the data necessary to allow our customers to use our platform effectively. Even the perception that the privacy and security of personal information are not satisfactorily protected or do not meet regulatory requirements could inhibit sales of our products or services and limit adoption of our products.

Evolving privacy laws may impact use and adoption of our platform and adversely affect our business.

Laws and regulations related to privacy, personal data and the provision of services over the Internet are evolving in the United States and globally, with the adoption of new and amended privacy laws. The impact, requirements and enforcement risks associated with these privacy laws vary, and in some cases may even conflict, across jurisdictions.

In addition, new U.S. and international privacy laws may impose new obligations on us and many of our customers. Both in the United States and globally, numerous jurisdictions have passed or are actively considering new or amended privacy laws. For example, the CCPA, which took effect in January 2020, applies to us and to many our customers. Under the CCPA, we are both a “business,” as to the ON24 business data, and a “service provider,” as to the platform personal data. The CCPA introduced sweeping definitions and broad individual rights, and imposes substantial requirements and restrictions on the collection, use and disclosure of personal information. The CCPA also introduced a private right of action for certain data breaches, which gives rise to increased class action risk. Notably, since the CCPA was signed into law, it has been amended multiple times, has been subject to further implementing regulations, and may face further amendment, refinement or replacement.

As the CCPA continues to evolve, various U.S. states are also actively introducing and considering so-called “omnibus” privacy legislation. Similarly, numerous foreign jurisdictions are actively considering legislation introducing new or amended laws and regulations addressing data privacy, cybersecurity, marketing, data protection, data localization and personal data. Further, privacy laws such as the EU’s proposed e-Privacy Regulation are increasingly aimed at the use of personal information for marketing purposes and the tracking of individuals’ online activities, which could expose us to additional regulatory burdens, limit our marketing, advertising, business development and sales efforts, and impact features made available to our customers through our platform. In addition, Brexit has also created additional uncertainty with regard to UK privacy laws, as well as the treatment of data transfers to and from the United Kingdom, where we have operations and customers. The ongoing development of privacy laws gives rise to uncertainty regarding the impact of privacy laws on us and our customers, and we and our customers could be exposed to additional burdens.

In addition, decisions by courts and regulatory bodies relating to privacy laws can also have a significant impact on us and other businesses that operate across international jurisdictions. For example, in 2020 both the EU-U.S. and Swiss-EU privacy shield frameworks were invalidated. We and many other companies relied on these privacy shield frameworks as an “adequacy” mechanism for the transfer of personal data from the European Economic Area, or the EEA-Switzerland, to the United States in compliance with the GDPR and Swiss data protection laws, respectively. While we have taken measures to implement alternative adequacy mechanisms, such as the EU standard contractual clauses for transfers of personal data for processors established in third countries, further steps may be necessary. Under the decision invalidating the EU-U.S. privacy shield framework, or Schrems II, additional safeguards may be needed. Our customers may request that we agree to additional safeguards, such as additional security controls and contractual measures, which must be assessed on a case-by-case basis. However, what additional safeguards will be considered adequate remains unclear. We expect continued guidance from applicable authorities, as well as updates to the EU standard contractual clauses.

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Other jurisdictions have also instituted specific requirements and restrictions on the cross-border transfer of personal data, and certain countries have passed or are considering passing data localization laws and regulations, which in some cases would require personal data be maintained in the originating jurisdiction and in other cases may prohibit such personal data from being transferred outside of the originating jurisdiction. While our solutions allow customers to receive and store local copies of platform data on their or other third-party servers, we do not maintain local servers to enable customers to maintain personal data only on servers in the originating jurisdiction. As with most cloud-based solutions, restrictions on the transfer of platform data outside of the originating jurisdiction could pose particular challenges and result in additional costs or otherwise impact platform use.

New and proposed marketing, advertising and other privacy laws and guidelines have recently been enacted or proposed that could impose more restrictions and give individuals more rights regarding marketing, targeting, and analytics or “profiling” activities. Some of these regulations seek, among other things, to give consumers greater control over how their personal information is processed for these purposes, or impose prior, affirmative consent obligations on companies related to these activities. For example, in the EU, cookies and similar technologies used for personalization, advertising, and analytics may not be used without affirmative consent and the proposed ePrivacy Regulation may further restrict these activities and technologies and increase restrictions. These could require us to change one or more aspects of the way we operate our business, limit our marketing, advertising, business development and sales efforts, impact certain features made available to customers through our platform or require us to introduce changes to our platform or solutions.

Although we monitor the regulatory environment and have invested in addressing these developments, including the GDPR, the EU ePrivacy Directive and the CCPA, the ongoing development of privacy laws means that we cannot predict with certainty the impact of these developments. These evolving privacy laws may require us to make additional changes to our practices and services to enable us or our customers to meet the new legal requirements, and may also increase our potential liability exposure through new or higher potential penalties for non-compliance, including as a result of data breaches. In addition, many of our customers and potential customers in the healthcare, financial services and other industries are subject to substantial regulation regarding their collection, use and protection of data and may be the subject of further regulation in the future. These laws or other privacy law developments may change the way these customers do business and may require us to implement additional features or offer additional contractual terms to satisfy customer and regulatory requirements. As a result of these privacy law developments, certain features of our platform and products could pose risks or need to be modified for certain jurisdictions, but not for others. They also could cause the demand for and sales of our platform to decrease and adversely impact our financial results.

The costs of compliance with, and other burdens imposed by, privacy laws may limit the use and adoption of our platform, reduce overall demand for our platform, make it more difficult to meet expectations from or commitments to our customers and their users, require us to implement additional features or offer additional contractual terms to satisfy customer and regulatory requirements, lead to significant fines, penalties or liabilities for noncompliance, impact our reputation, or slow the pace at which we close sales transactions, any of which could harm our business. In addition, these laws raise additional enforcement and liability risks and penalties. For example, statutory damages available through a private right of action for certain data breaches under CCPA, and potentially other U.S. and international laws, may increase our and our customers’ potential liability. In some cases, violations of privacy laws can lead to government enforcement or private litigation and could subject us to civil and criminal sanctions, including both monetary fines and injunctive action that could force us to change our business practices, all of which could adversely affect our financial performance and harm our reputation and our business.

We are subject to export and import controls, customs, sanctions, embargo, and anti-boycott laws and regulations that could seriously impair our ability to compete in international markets due to licensing requirements and subject us to liability if we are not in compliance with applicable laws and regulations.

Our platform and products are subject to various restrictions under U.S. export control and sanctions laws and regulations, including the U.S. Department of Commerce’s Export Administration Regulations, or EAR, and various economic and trade sanctions regulations administered by the U.S. Department of the Treasury’s Office of Foreign Assets Control, or OFAC, as well as other U.S. government agencies. U.S. export control and economic sanctions laws include trade, commerce, and investment restrictions or prohibitions, including those on the sale, supply, import, or export of certain products and services to or from U.S. embargoed or sanctioned countries, governments, persons and entities, and also require authorization for the export of certain encryption and other items. Parties that facilitate transactions that violate or otherwise seek to evade export controls or sanctions can face liability. Also, in certain circumstances, sanctions require U.S. persons to block or freeze the property of sanctioned persons.

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U.S. export controls and sanctions are complex and vary according to specific programs administered by relevant government agencies. Each program can be tied to a specific country or policy initiative. In certain cases, parties can request the U.S. government to issue a license to allow certain transactions. However, the scope and substance of those licenses can be fact specific and limited in scope.

The United States currently imposes comprehensive sanctions on Cuba, Iran, North Korea, Syria, and the Crimea Region of Ukraine. In addition, numerous other countries throughout the world are subject to partial or limited sanctions and restrictions imposed by the U.S. government. Sanctions also apply to persons that appear on, or are majority owned by a person that appears on, OFAC’s List of Specially Designated Nationals and Blocked Persons, or the SDN List. The Department of Commerce and the Department of State also maintain their own sanctions and export control lists. The above list of countries that are the subject of U.S. sanctions and export controls can change at any time. In addition, the SDN List as well as other sanctions lists contain thousands of names and are updated on a regular basis. All of those changes can impact our business. The U.S. government generally applies a strict liability standard when it comes to compliance with sanctions, embargoes, and export controls. This means that we can face liability even if we did not intentionally violate those rules.

We are also subject to U.S. restrictions under the EAR and the Internal Revenue Code that prevent us from participating in boycotts imposed by other countries if those boycotts are not approved by the United States. Companies and individuals that violate these anti-boycott restrictions may face criminal consequences. In addition, companies that are asked to comply with such boycotts are obligated to report those requests to the U.S. government, even if they do not agree to abide by such boycotts.

In addition, various countries regulate the import of certain encryption and other technology, including through import permitting and licensing requirements and have enacted or could enact laws that could limit our ability to provide access to our platform. We maintain internal controls and procedures to facilitate compliance with applicable export control requirements, but our company is rapidly growing, has detected past filing issues, and in the future may face material noncompliance that we fail to detect. If any precautions we take fail to prevent our platform and products from being accessed or used in violation of such laws, we may face fines and penalties, reputational harm, loss of access to certain markets, or other harm to our business.

Changes in our platform or changes in export, sanctions and import laws may delay the introduction and sale of subscriptions to our platform in international markets, prevent our customers with international operations from using our platform or, in some cases, prevent the access or use of our platform to and from certain countries, governments, persons or entities altogether. Further, any change in export or import regulations, economic sanctions or related laws, shift in the enforcement or scope of existing regulations, or change in the countries, governments, persons or technologies targeted by such regulations could result in decreased use of our platform or in our decreased ability to export or sell our platform to existing or potential customers with international operations. Any decreased use of our platform or limitation on our ability to export or sell our platform would likely harm our business.

We are subject to a variety of U.S. and non-U.S. laws and regulations, compliance with which could impair our ability to compete in domestic and international markets and non-compliance with which may result in claims, fines, penalties, and other consequences, all of which could adversely impact our operations, business, or performance.

As a service provider, we do not regularly monitor our platform to evaluate the legality of content shared on it by our customers. While to date we have not been subject to legal or administrative actions as a result of this content, the laws in this area are evolving and vary widely between jurisdictions. Accordingly, it may be possible that in the future we and our business partners may be subject to legal actions involving our customers’ content or use of our platform.

Our platform depends on the ability of our customers and their users to access the internet. If we fail to anticipate developments in the law, or we fail for any reason to comply with relevant law, our platform could be blocked or restricted, and we could be exposed to significant liability that could harm our business.

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From time to time, we may be involved in disputes or regulatory inquiries that arise in the ordinary course of business involving labor and employment, wage and hour, commercial, securities or investment, intellectual property, data breach and other matters. We expect that the number and significance of these potential disputes may increase as our business expands and our company grows larger. Contractual provisions and insurance coverage may not cover potential claims and may not be adequate to indemnify us for all liabilities we may face. Any claims against us, whether meritorious or not, could be time consuming, result in costly litigation, require significant amounts of management time, and result in the diversion of significant operational resources. Litigation is inherently unpredictable, and the results of any claims may have a material adverse effect on our business, financial condition, results of operations, and prospects.

We are an international company and may engage in business in jurisdictions that present material legal compliance risk. We are subject to various U.S. and non-U.S. laws and regulations prohibiting corruption, bribery, kickbacks, money laundering, terrorist financing, fraud and similar matters, such as the U.S. Foreign Corrupt Practices Act of 1977, as amended, or the FCPA, the Uniting and Strengthening America by Providing Appropriate Tools to Restrict, Intercept, and Obstruct Terrorism Act of 2001, the UK Bribery Act 2010, and the UK Proceeds of Crime Act 2002. These laws and regulations are actively enforced and generally prohibit companies and their agents, employees, representatives, business partners, and intermediaries from authorizing, promising, offering, providing, soliciting, or accepting, directly or indirectly, improper payments or benefits to or from government officials and other persons in the public or private sector for improper purposes.

We may engage resellers and other third parties from time to time to sell subscriptions to our solutions, obtain necessary permits, licenses, patent registrations, and other regulatory approvals, or otherwise support our business or operations. Oftentimes, improper payments by these types of third parties can raise anti-corruption and other legal compliance risk for companies in our position. We also have direct and indirect interactions with officials and employees of U.S. and non-U.S. government agencies or government-affiliated organizations. These factors raise our legal risk exposure. There can be cases where enforcement authorities seek to hold us liable for the corrupt or other illegal activities of our employees, agents, contractors, vendors, and other business partners, even if we do not explicitly authorize or have actual knowledge of such activities.

In addition to prohibiting bribery, the FCPA and other laws require us to maintain accurate and complete books and records and a system of internal controls. Enforcement agencies interpret these requirements very broadly and violations can occur if companies or their representatives knowingly or unknowingly conceal bribes or other fraudulent or illegal payments in their records or execute transactions or access company assets without management’s general or specific authorization. These requirements are so broad that in certain cases enforcement agencies may claim that violations are possible even if there is no evidence of bribery or corruption.

Our exposure for violating these laws increases as we continue to expand our domestic and international presence. If we fail to comply with those legal standards, we may face substantial civil and criminal fines, penalties, profit disgorgement, reputational harm, loss of access to certain markets, disbarment from government business, the loss of export privileges, tax reassessments, breach of contract, fraud and other litigation, reputational harm, and other collateral consequences that could harm our business.

We use open source software in our platform, which may subject us to litigation or other actions that could harm our business.

We use open source software in our platform, and we may use more open source software in the future. In the past, companies that have incorporated open source software into their products have faced claims challenging the ownership of open source software or compliance with open source license terms. Accordingly, we could be subject to suits by parties claiming ownership of what we believe to be open source software or claiming noncompliance with open source licensing terms. Some open source software licenses require users who use, distribute or make available across a network software or services that include open source software to publicly disclose all or part of the source code to such software or make available any derivative works of the open source code on terms unfavorable to the developer or at no cost. Additionally, if a third-party software provider has incorporated open source software into software that we license from such provider, we could be required to disclose any of our source code that incorporates or is a modification of our licensed software. If we were to use open source software subject to such licenses, we could be required to release our proprietary source code, pay damages, re-engineer our platform or solutions, discontinue sales, or take other remedial action, any of which could harm our business. In addition, if the license terms for updated or enhanced versions of the open source software we utilize change, we may be forced to expend substantial time and resources to re-engineer our components of our platform.

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In addition, the use of third-party open source software typically exposes us to greater risks than the use of third-party commercial software because open source licensors generally do not provide warranties or controls on the functionality or origin of the software. Use of open source software may also present additional security risks because the public availability of such software may make it easier for hackers and other third parties to determine how to compromise our platform. Any of the foregoing could harm our business and could help our competitors develop products and services that are similar to or better than ours.

Our business may suffer if it is alleged or determined that our technology infringes the intellectual property rights of others.

The software industry is characterized by the existence of a large number of patents, copyrights, trademarks, trade secrets and other intellectual and proprietary rights. Companies in the software industry are often required to defend against litigation claims based on allegations of infringement or other violations of intellectual property rights. Many of our competitors and other industry participants have been issued patents or have filed patent applications and may assert patent or other intellectual property rights within the industry. Moreover, in recent years, individuals and groups that are non-practicing entities, commonly referred to as “patent trolls,” have purchased patents and other intellectual property assets for the purpose of making claims of infringement in order to extract settlements. We may from time to time in the future become a party to litigation and disputes related to our intellectual property and our platform. The costs of supporting litigation and dispute resolution proceedings are considerable, and a favorable outcome may not be obtained. We may need to settle litigation and disputes on terms that are unfavorable to us, or we may be subject to an unfavorable judgment that may not be reversible upon appeal. The terms of any settlement or judgment may require us to cease some or all of our operations or pay substantial amounts to the other party. Even if we were to prevail in such a litigation or dispute, it could be costly and time consuming and divert the attention of our management and key personnel from our business operations. Our technologies may not be able to withstand any third-party claims or rights against their use. Claims of intellectual property infringement might require us to redesign our platform, delay releases, enter into costly settlement or license agreements or pay costly damage awards, or face a temporary or permanent injunction prohibiting us from marketing or selling our platform. If we cannot or do not license the infringed technology on reasonable terms or at all, or substitute similar technology from another source, our revenue and operating results could be adversely impacted. Additionally, our customers may not purchase subscriptions to our platform if they are concerned that they may infringe third-party intellectual property rights. The occurrence of any of these events may have a material adverse effect on our business.

In our customer agreements, we agree to defend and hold our customers harmless against claims, demands, suits, or proceedings made or brought against them by a third party alleging that their use of our platform infringes the intellectual property rights of a third party. Any existing limitations of liability provisions in our contracts may not be enforceable or adequate, and they may not otherwise protect us from any such liabilities or damages with respect to any particular claim. Our customers who are accused of intellectual property infringement may in the future seek indemnification from us. If we are required to defend our customers against, or hold them harmless from, infringement or other claims, our business may be disrupted, our management’s attention may be diverted, and our operating results and financial condition may suffer.

Our failure to protect our intellectual property rights and proprietary information could diminish our brand and other intangible assets.

We primarily rely and expect to continue to rely on a combination of patents, trade secrets, domain name protections, trademarks and copyrights, as well as confidentiality, license and subscription agreements with our employees, consultants and third parties, to protect our intellectual property and proprietary rights. In the United States and abroad, as of June 30, 2021, we had 15 issued patents and 29 pending patent applications. We make business decisions about when to seek patent protection for a particular technology and when to rely upon copyright or trade secret protection, and the approach we select may ultimately prove to be inadequate. Even in cases where we seek patent protection, the resulting patents may not effectively protect every significant feature of our solutions. In addition, we believe that the protection of our trademark rights is an important factor in product recognition, protecting our brand and maintaining goodwill. If we do not adequately protect our rights in our trademarks from infringement and unauthorized use, any goodwill that we have developed in those trademarks could be lost or impaired, which could harm our brand and our business. Third parties may knowingly or unknowingly infringe our proprietary rights, third parties may challenge our proprietary rights, pending and future patent, trademark and copyright applications may not be approved, and we may not be able to prevent infringement without incurring substantial expense. We have also devoted substantial resources to the development of our proprietary technologies and related processes. In order to

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protect our proprietary technologies and processes, we rely in part on trade secret laws and confidentiality and invention assignment agreements with our employees, consultants and third parties. These agreements may not effectively protect our proprietary rights. In addition, others may independently discover our trade secrets, in which case we would not be able to assert trade secret rights, or may develop similar technologies and processes. Further, laws in certain jurisdictions may afford little or no trade secret protection, and any changes in, or unexpected interpretations of, the intellectual property laws in any countries in which we operate may compromise our ability to enforce our intellectual property rights. Costly and time-consuming litigation could be necessary to enforce and determine the scope of our proprietary rights. If the protection of our proprietary rights is inadequate to prevent use or appropriation by third parties, the value of our platform, brand and other intangible assets may be diminished, and competitors may be able to more effectively replicate our platform and its features. Any of these events would harm our business.

Our reported results of operations may be adversely affected by changes in accounting principles generally accepted in the United States.

Generally accepted accounting principles in the United States are subject to interpretation by the Financial Accounting Standards Board, or the FASB, the SEC, and various bodies formed to promulgate and interpret appropriate accounting principles. A change in these principles or interpretations could have a significant effect on our reported results of operations and may even affect the reporting of transactions completed before the announcement or effectiveness of a change. For example, we recently adopted Accounting Standards Codification, or ASC, Topic 606, Revenue from Contracts with Customers, or Topic 606, utilizing the full retrospective method of adoption and ASC Topic 340, Other Assets and Deferred Costs, or Topic 340. The adoption of Topic 606 and Topic 340 changed the timing and manner in which we report our revenue and expenses, especially with respect to our sales commissions. See Note 1 to our consolidated financial statements included elsewhere in this Report for more information. It is also difficult to predict the impact of future changes to accounting principles or our accounting policies, any of which could harm our business.

We may acquire other companies, products and technologies, which could require significant management attention, disrupt our business or dilute stockholder value.

We may in the future make acquisitions of other companies, products and technologies. We have limited experience in acquisitions. We may not be able to find suitable acquisition candidates and we may not be able to complete acquisitions on favorable terms, if at all. If we do complete acquisitions, we may not ultimately strengthen our competitive position or achieve our goals, and any acquisitions we complete could be viewed negatively by our customers, users or investors. In addition, we may not be able to integrate acquired businesses successfully or effectively manage the combined company following an acquisition. If we fail to successfully integrate our acquisitions, or the people or technologies associated with those acquisitions, into our company, the results of operations of the combined company could be adversely affected. Any integration process will require significant time and resources, require significant attention from management and disrupt the ordinary functioning of our business, and we may not be able to manage the process successfully, which could harm our business. In addition, we may not successfully evaluate or utilize the acquired technology and accurately forecast the financial impact of an acquisition transaction, including accounting charges.

We may have to pay cash, incur debt or issue equity securities to pay for any such acquisition, each of which could affect our financial condition or the value of our capital stock. The sale of equity to finance any such acquisitions could result in dilution to our stockholders. If we incur more debt, it would result in increased fixed obligations and could also subject us to covenants or other restrictions that would impede our ability to flexibly operate our business.

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We may need additional capital, which may not be available on favorable terms, or at all.

Historically, we have funded our operations and capital expenditures primarily through equity issuances and cash generated from our operations. Although we currently anticipate that our existing cash and cash equivalents and cash flow from operations will be sufficient to meet our cash needs for the foreseeable future, we may require additional financing. We evaluate financing opportunities from time to time, and our ability to obtain financing will depend, among other things, on our development efforts, business plans, operating performance, levels of indebtedness and condition of the capital markets at the time we seek financing. Additional financing may not be available to us on favorable terms when required, or at all. If we raise additional funds through the issuance of equity, equity-linked or debt securities, those securities may have rights, preferences or privileges senior to the rights of our common stock, including with respect to dividends and other distributions, and our stockholders may experience dilution.

Covenants in our loan agreement governing our revolving line of credit may restrict our operations, and our failure to comply with these covenants may adversely affect our business, results of operations and financial condition.

We are party to a loan and security agreement with Comerica Bank, or the Revolving Credit Facility, which is secured by a security interest on substantially all of our assets and contains various restrictive covenants, including restrictions on our ability to dispose of our assets, merge with or acquire other entities, incur other indebtedness, make investments and engage in transactions with our affiliates. Our Revolving Credit Facility also contains certain financial covenants. Our ability to meet these restrictive and financial covenants can be affected by events beyond our control. Our Revolving Credit Facility provides that our breach or failure to satisfy certain covenants constitutes an event of default thereunder. Upon the occurrence of an event of default, the lender under our Revolving Credit Facility could elect to declare any future amounts outstanding under our Revolving Credit Facility to be immediately due and payable, exercise the remedies of a secured party in respect of the secured interest on substantially all of our assets and terminate all commitments to extend further credit under that facility. If we are unable to repay those amounts, our financial condition could be adversely affected.

We may incur indebtedness, which could adversely affect our business and limit our ability to expand our business or respond to changes, and we may be unable to generate sufficient cash flow to satisfy our debt service obligations.

As of June 30, 2021 and December 31, 2020, we had zero and $22.4 million, respectively, of outstanding indebtedness under a loan and security agreement with Comerica Bank, or the Revolving Credit Facility. In the first quarter of 2021, we repaid in full the $22.4 million outstanding principal balance on our Revolving Credit Facility. We may incur indebtedness in the future, which may require us to secure such obligations with substantially all of our assets; to comply with various restrictive covenants, including restrictions on our ability to dispose of our assets, merge with or acquire other entities, incur other indebtedness, make investments and engage in transactions with our affiliates; and to meet certain financial covenants. Any substantial indebtedness, and the fact that a substantial portion of our cash flow from operating activities could be needed to make payments on this indebtedness, could restrict our business operations or have other adverse consequences, including the following:

• reducing the availability of our cash flow for our operations, capital expenditures, future business opportunities and other purposes;

• limiting our flexibility in planning for, or reacting to, changes in our business and the industries in which we operate, which could place us at a disadvantage compared to our competitors that may have less debt;

• limiting our ability to borrow additional funds; and

• increasing our vulnerability to general adverse economic and industry conditions.

Our ability to borrow any funds needed to operate and expand our business will depend in part on our ability to generate cash. If our business does not generate sufficient cash flow from operating activities or if future borrowings, under our Revolving Credit Facility or otherwise, are not available to us in amounts sufficient to enable us to fund our liquidity needs, our operating results, financial condition and ability to expand our business may be adversely affected.

Our results of operations, which are reported in U.S. dollars, could be adversely affected if currency exchange rates fluctuate substantially in the future.

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We sell to customers globally and have international operations primarily in the United Kingdom, Australia, Singapore and Japan. As we continue to expand our international operations, we will become more exposed to the effects of fluctuations in currency exchange rates. Although the majority of our cash generated from revenue is denominated in U.S. dollars, a small amount is denominated in foreign currencies, and our expenses are generally denominated in the currencies of the jurisdictions in which we conduct our operations. For the three and six months ended June 30, 2021, 12% and 12% of our revenue, respectively, and 16% and 16% of our expenses, respectively were denominated in currencies other than U.S. dollars. For the three and six months ended June 30, 2020, 10% and 10% of our revenue, respectively, and 20% and 18% of our expenses, respectively, were denominated in currencies other than U.S. dollars. Because we conduct business in currencies other than U.S. dollars but report our results of operations in U.S. dollars, we also face remeasurement exposure to fluctuations in currency exchange rates, which could hinder our ability to predict our future results and earnings and could materially impact our results of operations. We do not currently maintain a program to hedge exposures to non-U.S. dollar currencies.

Our ability to use our net operating loss carryforwards and certain other tax attributes may be limited.

As of December 31, 2020, we had $89.8 million of U.S. federal and $46.4 million of state net operating loss carryforwards available to reduce future taxable income, which will begin to expire in 2021 for both federal and state tax purposes. It is possible that we will not generate taxable income in time to use these net operating loss carryforwards before their expiration or at all. Under legislative changes made in December 2017, U.S. federal net operating losses incurred in 2018 and in future years may be carried forward indefinitely, but the deductibility of such net operating losses is limited. States may or may not adopt similar changes. In addition, the federal and state net operating loss carryforwards and certain tax credits may be subject to significant limitations under Section 382 and Section 383 of the Internal Revenue Code of 1986, as amended, or the Code, respectively, and similar provisions of state law. Under those sections of the Code, if a corporation undergoes an “ownership change,” the corporation’s ability to use its pre-change net operating loss carryforwards and other pre-change attributes, such as research tax credits, to offset its post-change income or tax may be limited. In general, an “ownership change” will occur if there is a cumulative change in our ownership by “5-percent shareholders” that exceeds 50 percentage points over a rolling three-year period. Similar rules may apply under state tax laws. We have not completed a Section 382 assessment because we have not had an ownership change. However, we may experience ownership changes as a result of our initial public offering, or IPO, or in the future as a result of subsequent shifts in our stock ownership, some of which may be outside of our control. If an ownership change occurs and our ability to use our net operating loss carryforwards and tax credits is materially limited, it would harm our business by effectively increasing our future tax obligations.

We may be subject to liabilities on past sales for taxes, surcharges and fees.

We currently collect and remit applicable sales tax in jurisdictions where we have determined, based on applicable laws and regulations, that sales of our platform are classified as taxable. We do not currently collect and remit other state and local excise, utility user and ad valorem taxes, fees or surcharges that may apply to our customers. We believe that we are not otherwise subject to, or required to collect, any additional taxes, fees or surcharges imposed by state and local jurisdictions because we do not have a sufficient physical presence or “nexus” in the relevant taxing jurisdiction or such taxes, fees, or surcharges do not apply to sales of our platform in the relevant taxing jurisdiction. However, there is uncertainty as to what constitutes sufficient physical presence or nexus for a state or local jurisdiction to levy taxes, fees and surcharges for sales made over the internet, and there is also uncertainty as to whether our characterization of our platform as not taxable in certain jurisdictions will be accepted by state and local taxing authorities. Additionally, we have not historically collected value-added tax, or VAT, or goods and services tax, or GST, on sales of our platform because we make all of our sales through our office in the United States, and we believe, based on information provided to us by our customers, that most of our sales are made to business customers.

Taxing authorities may challenge our position that we do not have sufficient nexus in a taxing jurisdiction or that our platform is not taxable in the jurisdiction and may decide to audit our business and operations with respect to sales, use, telecommunications, VAT, GST and other taxes, which could result in increased tax liabilities for us or our customers, which could harm our business.

The application of indirect taxes (such as sales and use tax, VAT, GST, business tax and gross receipt tax) to businesses that transact online, such as ours, is a complex and evolving area. Following the 2018 U.S. Supreme Court decision in South Dakota v. Wayfair, Inc., states are now free to levy taxes on sales of goods and services based on an “economic nexus,”

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regardless of whether the seller has a physical presence in the state. As a result, it may be necessary to reevaluate whether our activities give rise to sales, use and other indirect taxes as a result of any nexus in those states in which we are not currently registered to collect and remit taxes. Additionally, we may need to assess our potential tax collection and remittance liabilities based on existing economic nexus laws’ dollar and transaction thresholds. The application of existing, new, or future laws, whether in the U.S. or internationally, could harm our business. There have been, and will continue to be, substantial ongoing costs associated with complying with the various indirect tax requirements in the numerous markets in which we conduct or will conduct business.

We may have exposure to greater than anticipated tax liabilities, which could harm our business.

While to date we have not incurred significant income taxes in operating our business, we are subject to income taxes in the United States and various jurisdictions outside of the United States. Our effective tax rate could fluctuate due to changes in the proportion of our earnings and losses in countries with differing statutory tax rates. Some jurisdictions may seek to impose incremental or new sales, use or other tax collection obligations on us. Our tax expense could also be impacted by changes in non-deductible expenses, changes in excess tax benefits of stock-based compensation, changes in the valuation of, or our ability to use, deferred tax assets and liabilities, the applicability of withholding taxes and effects from acquisitions.

The provision for taxes on our financial statements could also be impacted by changes in accounting principles, changes in U.S. federal, state or international tax laws applicable to corporate multinationals such as the recent legislation enacted in Australia, the United Kingdom and the United States, other fundamental changes in law currently being considered by many countries and changes in taxing jurisdictions’ administrative interpretations, decisions, policies and positions.

We are subject to review and audit by U.S. federal, state, local and foreign tax authorities. Such tax authorities may disagree with tax positions we take, and if any such tax authority were to successfully challenge any such position, our business could be harmed. We may also be subject to additional tax liabilities due to changes in non-income based taxes resulting from changes in federal, state or international tax laws, changes in taxing jurisdictions’ administrative interpretations, decisions, policies and positions, results of tax examinations, settlements or judicial decisions, changes in accounting principles, changes to our business operations, including acquisitions, as well as the evaluation of new information that results in a change to a tax position taken in a prior period.

Risks Related to Ownership of Our Common Stock

The trading price of our common stock may be volatile or may decline steeply and suddenly regardless of our operating performance, and you could lose all or part of your investment.

The trading price of our common stock following our IPO has been and will likely continue to be volatile and could be subject to fluctuations in response to various factors, some of which are beyond our control. Factors that could cause fluctuations in the trading price of our common stock include the following:

• the COVID-19 pandemic;

• price and volume fluctuations in the overall stock market from time to time;

• volatility in the trading prices and trading volumes of technology stocks;

• changes in operating performance and stock market valuations of other technology companies generally, or those in our industry in particular;

• sales of shares of our common stock by us or our stockholders into the public markets, or anticipation of such sales, including if existing stockholders sell shares into the market when our IPO “lock-up” period ends;

• failure of securities analysts to maintain coverage of us, changes in financial estimates by securities analysts who follow our company, or our failure to meet these estimates or the expectations of investors;

• the financial projections we may provide to the public, any changes in those projections, or our failure to meet those projections;

• announcements by us or our competitors of new products, features, or services;

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• the public’s reaction to our press releases, other public announcements and filings with the SEC;

• rumors and market speculation involving us or other companies in our industry;

• actual or anticipated changes in our results of operations or fluctuations in our results of operations, including as a result of reduced demand for our solutions;

• actual or anticipated developments in our business, our competitors’ businesses or the competitive landscape generally;

• litigation involving us, our industry, or both, or investigations by regulators into our operations or those of our competitors;

• developments or disputes concerning our intellectual property or other proprietary rights;

• announced or completed acquisitions of businesses, products, services or technologies by us or our competitors;

• new laws or regulations or new interpretations of existing laws or regulations applicable to our business;

• changes in accounting standards, policies, guidelines, interpretations or principles;

• any significant change in our management; and

• general economic conditions and slow or negative growth of our markets.

In addition, extreme price and volume fluctuations in the stock markets have affected and continue to affect the stock prices of many companies. Often, their stock prices have fluctuated in ways unrelated or disproportionate to their operating performance. In the past, stockholders have filed securities class action litigation against companies following periods of market volatility. Such securities litigation, if instituted against us, could subject us to substantial costs, divert resources and the attention of management from our business and seriously harm our business.

Substantial future sales of shares of our common stock by existing stockholders, or the perception that those sales may occur, could cause the market price of our common stock to decline.

Sales of a substantial number of shares of our common stock in the public market, or the perception that these sales might occur, could depress the market price of our common stock and could impair our ability to raise capital through the sale of additional equity securities. We are unable to predict the effect that such sales may have on the prevailing market price of our common stock.

Our management and principal stockholders own a significant percentage of our stock and will be able to exert significant control over matters subject to stockholder approval.

As of June 30, 2021, our executive officers, directors and five percent or greater stockholders and their respective affiliates beneficially owned, in the aggregate, approximately 60.0% of our outstanding common stock. As a result, these stockholders, if they act together, will be able to control the management and affairs of our company and most matters requiring stockholder approval, including the election of directors, amendments of our organizational documents and approval of any merger, sale of substantially all our assets or other significant corporate transactions. This concentration of ownership may prevent or discourage unsolicited acquisition proposals or offers for our common stock that you or other stockholders may feel are in your or their best interest as one of our stockholders.

Provisions in our organizational documents and certain rules imposed by regulatory authorities may delay or prevent our acquisition by a third party.

Our amended and restated certificate of incorporation, or our Certificate of Incorporation, and our amended and restated bylaws, or our Bylaws, contain several provisions that may make it more difficult or expensive for a third party to acquire control of us without the approval of our board of directors. These provisions, which may delay, prevent or deter a merger, acquisition, tender offer, proxy contest, or other transaction that stockholders may consider favorable, include the following:

• the division of our board of directors into three classes and the election of each class for three-year terms;

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• advance notice requirements for stockholder proposals and director nominations;

• provisions limiting our stockholders’ ability to call special meetings of stockholders and to take action by written consent;

• restrictions on business combinations with interested stockholders;

• in certain cases, the approval of holders representing at least 66.7% of the total voting power of the shares entitled to vote generally in the election of directors will be required for stockholders to adopt, amend or repeal our Bylaws, or amend or repeal certain provisions of our Certificate of Incorporation, including those relating to who may call special meetings of our stockholders, our stockholders’ ability to act by written consent, our board of directors (including the removal of one or more directors), indemnification of our directors and officers and exculpation of our directors, supermajority voting, amendments to our Bylaws and the exclusive forum for litigating specified matters;

• no cumulative voting;

• the required approval of holders representing at least 66.7% of the total voting power of the shares entitled to vote at an election of the directors to remove directors; and

• the ability of our board of directors to designate the terms of and issue new series of preferred stock without stockholder approval, which could be used, among other things, to institute a rights plan that would have the effect of significantly diluting the stock ownership of a potential hostile acquirer, likely preventing acquisitions that have not been approved by our governing body.

Moreover, because we are incorporated in Delaware and our Certificate of Incorporation does not contain a provision opting out Section 203 of the Delaware General Corporation Law, or Section 203, we are governed by the provisions of Section 203, which prohibit a person, individually or as a group, who owns, or owned in the preceding three years, 15% or more of our outstanding voting stock from merging or combining with us, unless the merger or combination is approved in a prescribed manner.

The terms of our authorized preferred stock selected by our Board at any point could decrease the amount of earnings and assets available for distribution to holders of our common stock or adversely affect the rights and powers, including voting rights, of holders of our common stock without any further vote or action by the stockholders. As a result, the rights of holders of our common stock will be subject to, and may be adversely affected by, the rights of the holders of any preferred stock that may be issued by us in the future, which could have the effect of decreasing the market price of our common stock.

Any provision of our Certificate of Incorporation or Bylaws or Delaware corporate law that has the effect of delaying or deterring a change in control could limit opportunities for our stockholders to receive a premium for their shares of common stock, and could also reduce the price that investors are willing to pay for our common stock.

The provision of our Certificate of Incorporation designating the Court of Chancery in the State of Delaware and the federal district courts of the United States as the exclusive forums for certain types of lawsuits may have the effect of discouraging lawsuits against our directors and officers.

Our Certificate of Incorporation provides that, unless we consent in writing to the selection of an alternative forum, the Court of Chancery of the State of Delaware be the sole and exclusive forum for: (1) any derivative action or proceeding brought on behalf of our company, (2) any action asserting a claim of breach of fiduciary duty owed by any director, officer, agent or other employee or stockholder of our company to us or our stockholders, (3) any action asserting a claim arising pursuant to any provision of the Delaware General Corporation Law, or the DGCL, our Certificate of Incorporation or our Bylaws or as to which the DGCL confers jurisdiction on the Court of Chancery of the State of Delaware, or (4) any action asserting a claim governed by the internal affairs doctrine, in each case subject to such Court of Chancery having personal jurisdiction over the indispensable parties named as defendants therein. Our Certificate of Incorporation further provides that, unless we consent in writing to the selection of an alternative forum, the federal district courts of the United States of America shall, to the fullest extent permitted by law, be the sole and exclusive forum for the resolutions of any complaint asserting a cause of action arising under the Securities Act. The exclusive forum clauses described above shall not apply to suits brought to enforce a duty or liability created by the Exchange Act or any other claim for which the federal courts have exclusive jurisdiction. Any person or entity purchasing or otherwise acquiring any interest in shares of our capital stock will be deemed to have notice of, and consented to, the exclusive forum provisions in our Certificate of Incorporation.

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Although we believe these provisions benefit us by providing increased consistency in the application of applicable law in the types of lawsuits to which they apply, the provisions may have the effect of discouraging lawsuits against our directors and officers and may limit a stockholder’s ability to bring a claim in a judicial forum it finds favorable for disputes with us or our directors, officers or employees. The enforceability of similar choice of forum provisions in other companies’ certificates of incorporation has been challenged in legal proceedings and there is uncertainty as to whether a court would enforce such provisions, in particular with respect to causes of action arising under the Securities Act. In addition, investors cannot waive compliance with the federal securities laws and the rules and regulations thereunder. It is possible that, in connection with any applicable action brought against us, a court could find the choice of forum provisions contained in our Certificate of Incorporation to be inapplicable or unenforceable in such action. If so, we may incur additional costs associated with resolving such action in other jurisdictions, which could adversely affect our business, financial condition or results of operations.

Our common stock market price and trading volume could decline if securities or industry analysts do not publish research or publish inaccurate or unfavorable research about our business or our market, if they adversely change their recommendations regarding our common stock or if our operating results do not meet their expectations or any financial guidance we may provide.

The trading market for our common stock will depend in part on the research and reports that securities or industry analysts publish about us, our business, our competitors and our market. The analysts’ estimates are based upon their own opinions and are often different from our estimates or expectations. If one or more of the analysts who cover us downgrade our common stock or publish inaccurate or unfavorable research about our business, the price of our securities would likely decline. If few securities analysts commence coverage of us, or if one or more of these analysts cease coverage of us or fail to publish reports on us regularly, demand for our securities could decrease, which might cause the price and trading volume of our common stock to decline. In addition, if we do not meet any financial guidance that we may provide to the public or if we do not meet expectations of securities analysts or investors, the trading price of our common stock could decline significantly.

We will incur increased costs and impose additional demands upon management as a result of complying with the laws and regulations affecting public companies in the United States, which may harm our business, results of operations and financial condition.

As a public company listed in the United States, we incurred and will continue to incur significant additional legal, accounting and other expenses. In addition, changing laws, regulations and standards relating to corporate governance and public disclosure, including regulations implemented by the SEC and the NYSE, may increase legal and financial compliance costs and make some activities more time consuming. These laws, regulations and standards are subject to varying interpretations, and as a result, their application in practice may evolve over time as new guidance is provided by regulatory and governing bodies. We intend to invest resources to comply with evolving laws, regulations and standards, and this investment may result in increased general and administrative expenses and a diversion of management’s time and attention from revenue-generating activities to compliance activities. We will also need to continue developing our investor relations function. If, notwithstanding our efforts, we fail to comply with new laws, regulations and standards, regulatory authorities may initiate legal proceedings against us and our business may be harmed.

Failure to comply with these rules might also make it more difficult for us to obtain certain types of insurance, including director and officer liability insurance, and we might be forced to accept reduced policy limits and coverage or incur substantially higher costs to obtain the same or similar coverage. The impact of these events would also make it more difficult for us to attract and retain qualified persons to serve on our board of directors, on committees of our board of directors or as members of senior management.

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We are an “emerging growth company,” and we cannot be certain if the reduced disclosure requirements applicable to emerging growth companies will make our common stock less attractive to investors.

We are an “emerging growth company,” as defined in the JOBS Act, and we intend to take advantage of certain exemptions from various reporting requirements that are applicable to public companies that are not “emerging growth companies,” including not being required to comply with the independent auditor attestation requirements of Section 404 of the Sarbanes-Oxley Act, reduced disclosure obligations regarding executive compensation in our periodic reports and proxy statements, being required to provide fewer years of audited financial statements and exemptions from the requirements of holding a non-binding advisory vote on executive compensation and stockholder approval of any golden parachute payments not previously approved. We intend to take advantage of these provisions until we are no longer an “emerging growth company.” We will cease to be an “emerging growth company” upon the earliest to occur of: (i) the last day of the fiscal year in which we have more than $1.07 billion in annual revenue; (ii) the date we qualify as a large accelerated filer, with at least $700 million of equity securities held by non-affiliates; (iii) the issuance, in any three-year period, by us of more than $1.0 billion in non-convertible debt securities; and (iv) December 31, 2026. We may choose to take advantage of some but not all of these reduced reporting burdens. We have taken advantage of certain reduced reporting burdens in this Annual Report on Form 10-K. Accordingly, the information contained herein may be different than the information you receive from other public companies in which you hold stock.

In addition, the JOBS Act also provides that an “emerging growth company” can take advantage of an extended transition period for complying with new or revised accounting standards. We have elected to take advantage of such extended transition period, and, as a result, we will not be subject to the same new or revised accounting standards as other public companies that are not emerging growth companies or that have opted out of using such extended transition period. Our consolidated financial statements may therefore not be comparable to those of companies that comply with new or revised accounting pronouncements as of the effective dates applicable to public companies.

Investors may find our common stock less attractive because we intend to rely on these exemptions, which may result in a less active trading market, increased volatility, or lower market prices for our common stock.

We do not intend to pay dividends for the foreseeable future.

We have never declared or paid any cash dividends on our capital stock. We currently intend to retain any future earnings for use in the operation and expansion of our business, and we do not plan to declare or pay cash dividends in the foreseeable future. In addition, our ability to pay dividends is currently restricted by the terms of our Revolving Credit Facility. As a result, stockholders must rely on sales of their common stock after price appreciation as the only way to realize any future gains on their investment.

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds.

Not applicable.

Item 3. Defaults upon Senior Securities.

Not applicable.

Item 4. Mine Safety Disclosures.

Note applicable.

Item 5. Other Information.

Note applicable.

Item 6. Exhibits.

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		Incorporated by Reference
Exhibit Number	Exhibit Title	Form	File No.	Exhibit	Filing Date	Filed/ Furnished with This Report
3.1	Amended and Restated Certificate of Incorporation.	8-K	001-39965	3.1	2/8/2021
3.2	Amended and Restated Bylaws.	8-K	001-39965	3.2	2/8/2021
31.1	Certification of Principal Executive Officer pursuant to Rule 13a‑14(a) or Rule 15d‑14(a) of the Securities Exchange Act of 1934, as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.					X
31.2	Certification of Principal Financial and Accounting Officer pursuant to Rule 13a‑14(a) or Rule 15d‑14(a) of the Securities Exchange Act of 1934, as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.					X
32.1	Certification of Principal Executive Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.					X
32.2	Certification of Principal Financial and Accounting Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.					X
101.INS	Inline XBRL Instance Document – the instance document does not appear in the Interactive Data File because XBRL tags are embedded within the Inline XBRL document.					X
101.SCH	Inline XBRL Taxonomy Extension Schema Document					X
101.CAL	Inline XBRL Taxonomy Extension Calculation Linkbase Document					X
101.DEF	Inline XBRL Taxonomy Extension Definition Linkbase Document					X
101.LAB	Inline XBRL Taxonomy Extension Label Linkbase Document					X
101.PRE	Inline XBRL Taxonomy Extension Presentation Linkbase Document					X
104	Cover Page Interactive Data File (embedded within the Inline XBRL document)					X

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SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

	ON24, Inc.
Date: August 11, 2021	By:	/s/ Sharat Sharan
		Sharat Sharan
		President and Chief Executive Officer
		(Duly Authorized Officer and Principal Executive Officer)
Date: August 11, 2021	By:	/s/ Steven Vattuone
		Steven Vattuone
		Chief Financial Officer
		(Principal Financial and Accounting Officer)

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EX-31.1

Exhibit 31.1

CERTIFICATION OF CHIEF EXECUTIVE OFFICER PURSUANT TO

RULES 13a-14(a) AND 15d-14(a) UNDER THE SECURITIES EXCHANGE ACT OF 1934,

AS ADOPTED PURSUANT TO SECTION 302 OF THE SARBANES-OXLEY ACT OF 2002

I, Sharat Sharan, certify that:

1. I have reviewed this Form 10-Q of ON24, Inc.;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant's other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

(a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

(b) Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

(c) Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and

5. The registrant's other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):

(a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and

(b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.

Date:  August 11, 2021	By:	/s/ Sharat Sharan
		Sharat Sharan
		President and Chief Executive Officer
		(Principal Executive Officer)

EX-31.2

Exhibit 31.2

CERTIFICATION PURSUANT OF CHIEF FINANCIAL OFFICER TO

RULES 13a-14(a) AND 15d-14(a) UNDER THE SECURITIES EXCHANGE ACT OF 1934,

AS ADOPTED PURSUANT TO SECTION 302 OF THE SARBANES-OXLEY ACT OF 2002

I, Steven Vattuone, certify that:

1. I have reviewed this Form 10-Q of ON24, Inc.;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant's other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

(a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

(b) Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

(c) Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and

5. The registrant's other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):

(a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and

(b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.

Date:  August 11, 2021	By:	/s/ Steven Vattuone
		Steven Vattuone
		Chief Financial Officer
		(Principal Financial and Accounting Officer)

EX-32.1

Exhibit 32.1

CERTIFICATION PURSUANT TO

18 U.S.C. SECTION 1350, AS ADOPTED PURSUANT TO

SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

In connection with the Quarterly Report of ON24, Inc. (the “Company”) on Form 10-Q for the period ending June 30, 2021 as filed with the Securities and Exchange Commission on the date hereof (the “Report”), I certify, pursuant to 18 U.S.C. § 1350, as adopted pursuant to § 906 of the Sarbanes-Oxley Act of 2002, that to my knowledge:

(1) The Report fully complies with the requirements of section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

(2) The information contained in the Report fairly presents, in all material respects, the financial condition and result of operations of the Company.

Date:  August 11, 2021	By:	/s/ Sharat Sharan
		Sharat Sharan
		President and Chief Executive Officer (Principal Executive Officer)

The foregoing certification is being furnished solely to accompany the Report pursuant to 18 U.S.C. § 1350, and is not being filed for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, and is not to be incorporated by reference into any filing of the Company, whether made before or after the date hereof, regardless of any general incorporation language in such filing.

EX-32.2

Exhibit 32.2

CERTIFICATION PURSUANT TO

18 U.S.C. SECTION 1350, AS ADOPTED PURSUANT TO

SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

In connection with the Quarterly Report of ON24, Inc. (the “Company”) on Form 10-Q for the period ending June 30, 2021 as filed with the Securities and Exchange Commission on the date hereof (the “Report”), I certify, pursuant to 18 U.S.C. § 1350, as adopted pursuant to § 906 of the Sarbanes-Oxley Act of 2002, that to my knowledge:

(1) The Report fully complies with the requirements of section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

(2) The information contained in the Report fairly presents, in all material respects, the financial condition and result of operations of the Company.

Date:  August 11, 2021	By:	/s/ Steven Vattuone
		Steven Vattuone
		Chief Financial Officer (Principal Financial and Accounting Officer)

The foregoing certification is being furnished solely to accompany the Report pursuant to 18 U.S.C. § 1350, and is not being filed for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, and is not to be incorporated by reference into any filing of the Company, whether made before or after the date hereof, regardless of any general incorporation language in such filing.

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Document and Entity Information - shares	6 Months Ended
	Jun. 30, 2021	Aug. 04, 2021
Cover [Abstract]
Document Type	10-Q
Amendment Flag	false
Document Quarterly Report	true
Document Transition Report	false
Document Period End Date	Jun. 30, 2021
Document Fiscal Year Focus	2021
Document Fiscal Period Focus	Q2
Entity Registrant Name	ON24, INC.
Entity Central Index Key	0001110611
Current Fiscal Year End Date	--12-31
Entity Filer Category	Non-accelerated Filer
Entity Small Business	false
Entity Emerging Growth Company	true
Entity Ex Transition Period	false
Entity Shell Company	false
Trading Symbol	ONTF
Title of 12(b) Security	Common Stock, par value $0.0001 per share
Security Exchange Name	NYSE
Entity Common Stock, Shares Outstanding		46,650,980
Entity Current Reporting Status	No
Entity Interactive Data Current	Yes
Entity Incorporation, State or Country Code	DE
Entity File Number	001-39965
Entity Tax Identification Number	94-3292599
Entity Address, Address Line One	50 Beale Street, 8th Floor
Entity Address, City or Town	San Francisco
Entity Address, Postal Zip Code	94105
City Area Code	415
Local Phone Number	369-8000
Entity Address, State or Province	CA

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Condensed Consolidated Balance Sheets - USD ($) $ in Thousands	Jun. 30, 2021	Dec. 31, 2020
Current assets
Cash and cash equivalents	$ 351,727	$ 58,243
Marketable investments	44,631	3,000
Accounts receivable, net of allowances and reserves of $2,399 and $2,173 as of June 30, 2021 and December 31, 2020, respectively	38,891	48,617
Deferred contract acquisition costs, current	11,304	10,528
Prepaid expenses and other current assets	11,264	7,079
Total current assets	457,817	127,467
Property and equipment, net	9,775	9,051
Deferred contract acquisition costs, non-current	20,067	18,753
Other long-term assets	902	1,447
Total assets	488,561	156,718
Current liabilities
Accounts payable	2,907	4,730
Accrued liabilities	19,555	17,439
Deferred revenue	93,899	92,240
Long-term debt, current portion	2,362	2,359
Total current liabilities	118,723	116,768
Long-term debt	3,263	25,727
Other long-term liabilities	3,859	4,022
Total liabilities	125,845	146,517
Commitments and contingencies (See Note 7)
Stockholders’ equity (deficit)
Common stock, $0.0001 par value per share; 500,000,000 and 50,000,000 shares authorized as of June 30, 2021 and December 31, 2020, respectively; 46,449,556 and 10,896,137 shares issued and outstanding as of June 30, 2021 and December 31, 2020, respectively	5	1
Additional paid-in capital	539,137	27,512
Accumulated deficit	(176,610)	(171,263)
Accumulated other comprehensive income	184	94
Total stockholders’ equity (deficit)	362,716	(143,656)
Total liabilities, convertible preferred stock and stockholders’ equity (deficit)	$ 488,561	156,718
Convertible Class A-1 and Class A-2 Preferred Stock
Temporary Equity
Convertible preferred stock		83,857
Redeemable Convertible Class B and Class B-1 Preferred Stock
Temporary Equity
Convertible preferred stock		$ 70,000

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Condensed Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands	Jun. 30, 2021	Dec. 31, 2020
Accounts receivable, allowances and reserves	$ 2,399	$ 2,173
Common stock, par value	$ 0.0001	$ 0.0001
Common stock, shares authorized	500,000,000	50,000,000
Common stock, shares issued	46,449,556	10,896,137
Common stock, shares outstanding	46,449,556	10,896,137
Convertible Class A-1 and Class A-2 Preferred Stock
Convertible preferred stock, par value	$ 0.0001	$ 0.0001
Convertible preferred stock, shares authorized	0	21,699,945
Convertible preferred stock, shares issued	0	21,683,548
Convertible preferred stock, shares outstanding	0	21,683,548
Convertible preferred stock, liquidation preference	$ 0	$ 102,776
Redeemable Convertible Class B and Class B-1 Preferred Stock
Convertible preferred stock, par value	$ 0.0001	$ 0.0001
Convertible preferred stock, shares authorized	0	5,543,918
Convertible preferred stock, shares issued	0	5,543,918
Convertible preferred stock, shares outstanding	0	5,543,918
Convertible preferred stock, liquidation preference	$ 0	$ 70,000

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Condensed Consolidated Statements of Operations - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2021	Jun. 30, 2020	Jun. 30, 2021	Jun. 30, 2020
Revenue:
Total revenue	$ 52,118	$ 36,320	$ 102,217	$ 61,066
Cost of revenue:
Total cost of revenue	11,873	7,962	22,567	14,668
Gross profit	40,245	28,358	79,650	46,398
Operating expenses:
Sales and marketing	25,465	12,729	49,390	24,739
Research and development	8,162	4,513	16,108	8,612
General and administrative	9,100	4,206	18,868	7,658
Total operating expenses	42,727	21,448	84,366	41,009
Income (loss) from operations	(2,482)	6,910	(4,716)	5,389
Interest expense	106	193	337	405
Other (income) expense, net	211	(22)	327	249
Income (loss) before provision for (benefit from) income taxes	(2,799)	6,739	(5,380)	4,735
Provision for (benefit from) income taxes	(282)	37	(33)	92
Net income (loss)	(2,517)	6,702	(5,347)	4,643
Cumulative preferred dividends allocated to preferred stockholders		(1,427)	(558)	(2,752)
Net income (loss) attributable to common stockholders	$ (2,517)	$ 5,275	$ (5,905)	$ 1,891
Net income (loss) per share attributable to common stockholders:
Basic	$ (0.05)	$ 0.14	$ (0.15)	$ 0.05
Diluted	$ (0.05)	$ 0.14	$ (0.15)	$ 0.05
Weighted-average shares used in computing net income (loss) per share attributable to common stockholders:
Basic	46,570,195	9,707,995	39,664,436	9,419,113
Diluted	46,570,195	10,315,294	39,664,436	10,013,791
Subscription and Other Platform
Revenue:
Total revenue	$ 44,377	$ 27,096	$ 87,287	$ 47,023
Cost of revenue:
Total cost of revenue	8,179	4,824	15,664	8,980
Professional Services
Revenue:
Total revenue	7,741	9,224	14,930	14,043
Cost of revenue:
Total cost of revenue	$ 3,694	$ 3,138	$ 6,903	$ 5,688

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Condensed Consolidated Statements of Comprehensive Income (Loss) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2021	Jun. 30, 2020	Jun. 30, 2021	Jun. 30, 2020
Statement Of Income And Comprehensive Income [Abstract]
Net income (loss)	$ (2,517)	$ 6,702	$ (5,347)	$ 4,643
Other comprehensive income (loss)
Foreign currency translation adjustment, net of tax	114	(2)	108	54
Unrealized loss on available for sale debt securities, net of tax	(18)		(18)
Total other comprehensive income (loss)	96	(2)	90	54
Total comprehensive income (loss)	$ (2,421)	$ 6,700	$ (5,257)	$ 4,697

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Condensed Consolidated Statements of Convertible Preferred Stock and Stockholders' Equity (Deficit) - USD ($) $ in Thousands	Total	Common Stock	Additional Paid-in Capital	Accumulated Deficit	Accumulated Other Comprehensive Income (Loss)	Convertible Preferred Stock	Redeemable Convertible Preferred Stock
Beginning balance at Dec. 31, 2019	$ (171,208)	$ 1	$ 20,809	$ (192,016)	$ (2)
Beginning balance, shares at Dec. 31, 2019						21,683,548	5,543,918
Beginning balance at Dec. 31, 2019						$ 83,857	$ 70,000
Beginning balance, shares at Dec. 31, 2019		8,953,967
Issuance of common stock upon exercise of stock options	2,239		2,239
Issuance of common stock upon exercise of stock options, shares		1,233,511
Stock-based compensation expense	833		833
Other comprehensive income (loss)	54				54
Net income (loss)	4,643			4,643
Ending balance at Jun. 30, 2020	(163,439)	$ 1	23,881	(187,373)	52
Ending balance, shares at Jun. 30, 2020						21,683,548	5,543,918
Ending balance at Jun. 30, 2020						$ 83,857	$ 70,000
Ending balance, shares at Jun. 30, 2020		10,187,478
Beginning balance at Mar. 31, 2020	(172,323)	$ 1	21,697	(194,075)	54
Beginning balance, shares at Mar. 31, 2020						21,683,548	5,543,918
Beginning balance at Mar. 31, 2020						$ 83,857	$ 70,000
Beginning balance, shares at Mar. 31, 2020		9,326,967
Issuance of common stock upon exercise of stock options	1,754		1,754
Issuance of common stock upon exercise of stock options, shares		860,511
Stock-based compensation expense	430		430
Other comprehensive income (loss)	(2)				(2)
Net income (loss)	6,702			6,702
Ending balance at Jun. 30, 2020	(163,439)	$ 1	23,881	(187,373)	52
Ending balance, shares at Jun. 30, 2020						21,683,548	5,543,918
Ending balance at Jun. 30, 2020						$ 83,857	$ 70,000
Ending balance, shares at Jun. 30, 2020		10,187,478
Beginning balance at Dec. 31, 2020	$ (143,656)	$ 1	27,512	(171,263)	94
Beginning balance, shares at Dec. 31, 2020						21,683,548	5,543,918
Beginning balance at Dec. 31, 2020						$ 83,857	$ 70,000
Beginning balance, shares at Dec. 31, 2020	10,896,137	10,896,137
Conversion of convertible preferred stock and redeemable convertible preferred stock to common stock upon initial public offering	$ 153,857	$ 3	153,854
Conversion of convertible preferred stock and redeemable convertible preferred stock to common stock upon initial public offering, shares						(21,683,548)	(5,543,918)
Conversion of convertible preferred stock and redeemable convertible preferred stock to common stock upon initial public offering	(153,857)					$ (83,857)	$ (70,000)
Conversion of convertible preferred stock and redeemable convertible preferred stock to common stock upon initial public offering, shares		27,227,466
Issuance of common stock upon initial public offering, net of underwriting discounts and other offering costs	348,014	$ 1	348,013
Issuance of common stock upon initial public offering, net of underwriting discounts and other offering costs, shares		7,599,928
Issuance of common stock upon exercise of stock options	$ 1,795		1,795
Issuance of common stock upon exercise of stock options, shares	766,072	726,025
Payment for employee tax withheld upon exercising stock options	$ (2,001)		(2,001)
Stock-based compensation expense	9,964		9,964
Other comprehensive income (loss)	90				90
Net income (loss)	(5,347)			(5,347)
Ending balance at Jun. 30, 2021	$ 362,716	$ 5	539,137	(176,610)	184
Ending balance, shares at Jun. 30, 2021	46,449,556	46,449,556
Beginning balance at Mar. 31, 2021	$ 359,783	$ 5	533,783	(174,093)	88
Beginning balance, shares at Mar. 31, 2021		46,321,784
Issuance of common stock upon exercise of stock options	384		384
Issuance of common stock upon exercise of stock options, shares		127,772
Stock-based compensation expense	4,970		4,970
Other comprehensive income (loss)	96				96
Net income (loss)	(2,517)			(2,517)
Ending balance at Jun. 30, 2021	$ 362,716	$ 5	$ 539,137	$ (176,610)	$ 184
Ending balance, shares at Jun. 30, 2021	46,449,556	46,449,556

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Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2021	Jun. 30, 2020
Cash flows from operating activities:
Net income (loss)	$ (5,347)	$ 4,643
Adjustments to reconcile net income (loss) to net cash provided by operating activities:
Depreciation and amortization	2,294	1,189
Stock-based compensation expense	9,964	833
Amortization of deferred contract acquisition cost	7,502	4,345
Provision for allowance for doubtful accounts and billing reserve	1,209	797
Other	25
Changes in operating assets and liabilities:
Accounts receivable	8,517	(18,560)
Deferred contract acquisition cost	(9,592)	(11,098)
Prepaid expenses and other assets	(7,078)	(783)
Accounts payable	(1,441)	238
Accrued liabilities	3,026	2,154
Deferred revenue	1,659	32,023
Other long-term liabilities	(163)	(421)
Net cash provided by operating activities	10,575	15,360
Cash flows from investing activities:
Purchase of property and equipment	(1,734)	(288)
Purchase of marketable securities	(44,481)	(5,000)
Proceeds from maturity of marketable securities	3,164	5,000
Net cash used in investing activities	(43,051)	(288)
Cash flows from financing activities:
Proceeds from initial public offering, net of underwriting discounts	353,397
Proceeds from issuance of common stock resulting from exercise of stock options	1,795	2,239
Payment of tax withholding obligations related to net share settlements of stock options exercise	(2,001)
Proceeds from long-term debt		12,179
Repayments of long-term debt	(22,478)	(12,084)
Repayment of capital lease obligations	(1,384)	(563)
Payments of offering costs	(3,481)
Net cash provided by financing activities	325,848	1,771
Effect of exchange rate changes on cash, cash equivalents and restricted cash	108	54
Net increase in cash, cash equivalents and restricted cash	293,480	16,897
Cash, cash equivalents and restricted cash, beginning of period	58,345	18,933
Cash, cash equivalents and restricted cash, end of period	351,825	35,830
Supplemental disclosures of cash flow information:
Cash paid for taxes, net of refunds	142	50
Cash paid for interest	403	496
Supplemental disclosures of noncash investing and financing activities:
Equipment acquired under capital leases	1,586	2,520
Equipment purchased funded by liabilities	391	179
Property and equipment purchased not yet paid	132	465
Conversion of convertible preferred stock and redeemable convertible preferred stock to common stock	153,857
Reconciliation of cash, cash equivalents, and restricted cash to the condensed consolidated balance sheets (in thousands):
Cash and cash equivalents	351,727	35,743
Restricted cash included in other assets, non-current	98	87
Cash, cash equivalents and restricted cash, end of period	$ 351,825	$ 35,830

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Description of Business and Significant Accounting Policies

6 Months Ended

Jun. 30, 2021

Organization Consolidation And Presentation Of Financial Statements [Abstract]

Description of Business and Significant Accounting Policies

Note 1. Description of Business and Significant Accounting Policies

Description of Business

ON24, Inc. and its subsidiaries (together, ON24 or the Company) provides a leading, cloud-based digital experience platform that enables businesses to convert customer engagement into revenue through interactive webinar experiences, virtual event experiences and multimedia content experiences. The Company’s platform offers a portfolio of interactive, personalized and content-rich digital experience products that creates and captures actionable, real-time data at scale from millions of professionals every month to provide businesses with buying signals and behavioral insights to efficiently convert prospects into customers. The Company was incorporated in the state of Delaware in January 1998 as NewsDirect, Inc. and in December 1998 changed its name to ON24, Inc. The Company is headquartered in San Francisco, California.

Initial Public Offering

On February 5, 2021, the Company closed its initial public offering (IPO) of 7,599,928 shares of its common stock at a public offering price of $50 per share for net proceeds of approximately $348.0 million, after deducting the underwriting discount of approximately $26.6 million and other offering costs of approximately $5.4 million. The shares of common stock sold in the IPO and the net proceeds from the IPO included the full exercise of the underwriters’ option to purchase additional shares.

Upon the closing of the IPO, all of the Company's outstanding shares of Class A-1 and Class A-2 convertible preferred stock and Class B and Class B-1 redeemable convertible preferred stock were automatically converted into an aggregate of 27,227,466 shares of common stock on a one-for-one basis.

Basis of Presentation

The accompanying condensed consolidated financial statements have been prepared in accordance with generally accepted accounting principles in the United States of America (U.S. GAAP) and applicable rules and regulations of the Securities and Exchange Commission (SEC) for interim financial reporting. Certain information and note disclosures included in the Company’s annual financial statements prepared in accordance with GAAP have been condensed or omitted pursuant to such rules and regulations. Therefore, these condensed consolidated financial statements should be read in conjunction with the consolidated financial statements and notes included in the Company’s annual report on Form 10-K for the year ended December 31, 2020. In the opinion of management, the condensed consolidated financial statements reflect all adjustments that are normal and recurring in nature and necessary for fair financial statement presentation. All intercompany transactions and balances have been eliminated in consolidation.

The results of operations for the three and six months ended June 30, 2021 are not necessarily indicative of the operating results anticipated for the full year.

Certain prior period amounts have been reclassified on the condensed consolidated statements of cash flows to conform to the current year's presentation. None of these reclassifications had a material impact to the Company’s condensed consolidated financial statements.

Use of Estimates

The preparation of condensed consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the condensed consolidated financial statements and the reported amounts of revenue and expenses during the reporting period. Significant items subject to such estimates and assumptions include, but are not limited to, the estimated expected benefit period for deferred contract acquisition costs, the determination of standalone selling price for the Company’s performance obligations, the allowance for doubtful accounts and billing reserve, the useful lives of long-lived assets, the estimated value of common stock prior to the IPO and other assumptions used to measure stock-based compensation, the valuation of deferred income tax assets and uncertain tax positions. Actual results could differ from those estimates.

Significant Accounting Policies

Effective January 1, 2021, the Company elected to account for forfeited awards as they occur. Prior to 2021, the Company estimated the number of awards expected to be forfeited at the time of grant and revised its estimates in subsequent periods if the actual forfeitures differed from the estimates. The impact of the change was not material. There has been no material change to the Company’s significant accounting policies during the three and six months ended June 30, 2021.

Deferred Offering Costs

Deferred offering costs consist primarily of accounting, legal and other fees incremental and directly related to the Company’s IPO. Upon closing of the IPO on February 5, 2021, the deferred offering costs of $5.4 million were reclassified into stockholders' equity (deficit) and recorded against the proceeds from the offering. Deferred offering costs as of December 31, 2020 was $3.2 million within prepaid expenses and other current assets on the condensed consolidated balance sheets.

Stock-Based Compensation

Stock-based compensation expense related to stock awards is recognized based on the fair value of the awards granted. The fair value of each option award is estimated on the grant date using the Black-Scholes option pricing model. The Black-Scholes option pricing model requires the input of highly subjective assumptions, including the fair value of the underlying common stock, the risk-free interest rates, the expected term of the option, the expected volatility of the price of the Company’s common stock and the expected dividend yield of the Company’s common stock. The assumptions used to determine the fair value of the option awards represent management’s best estimates. These estimates involve inherent uncertainties and application of management’s judgement. The related stock-based compensation expense is recognized on a straight-line basis over the requisite service period for each separately vesting portion of the award, which is generally four years. Effective January 1, 2021, the Company elected to account for forfeited awards as they occur. Prior to 2021, the Company estimated the number of awards expected to be forfeited at the time of grant and revised its estimates in subsequent periods if the actual forfeitures differed from the estimates. This change in accounting policy did not have a material impact on the Company’s condensed consolidated financial statements.

Recently Adopted Accounting Standards

In December 2019, the FASB issued ASU No. 2019-12, Income Taxes Topic 740: Simplifying the Accounting for Income Taxes, which removes a variety of exceptions within the framework of ASC 740. These include the exception to the incremental approach for intraperiod tax allocation in the event of a loss from continuing operations and income or a gain from other items (such as other comprehensive income), and the exception to using general methodology for the interim period tax accounting for year-to-date losses that exceed anticipated losses. For public business entities, ASU No. 2019-12 is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2020. For all other entities, ASU No. 2019-12 is effective for fiscal years beginning after December 15, 2021, and interim periods within fiscal years beginning after December 15, 2022. Early adoption of the amendments is permitted, including adoption in any interim period for (1) public business entities for periods for which financial statements have not yet been issued and (2) all other entities for periods for which financial statements have not yet been made available for issuance. The adoption of this standard did not have a material impact on its condensed consolidated financial statements.

In August 2018, the FASB issued ASU No. 2018-15, Intangibles-Goodwill and Other-Internal-Use Software (Subtopic 350-40): Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement that is a Service Contract. This new standard requires an entity (customer) in a hosting arrangement that is a service contract to follow the guidance in Subtopic 350-40 to determine which implementation costs to capitalize as an asset related to the service contract and which costs to expense. Costs for implementation activities in the application development stage can be capitalized depending on the nature of the costs, while costs incurred during the preliminary project and post-implementation stages are expensed as the activities are performed. The costs capitalized are expensed over the term of the hosting arrangement. The amendments in ASU No. 2018-15 also require the entity to present the expense related to the capitalized implementation costs in the same line item in the statement of income as the fees associated with the hosting element (service) of the arrangement and classify payments for capitalized implementation costs in the statement of cash flows in the same manner as payments made for fees associated with the hosting element. ASU No. 2018-15 is effective for public business entities for fiscal years beginning after December 15, 2019, and interim periods within those fiscal years. For all other entities, ASU No. 2018-15 is effective for annual reporting periods beginning after December 15, 2020, and interim periods within annual periods beginning after December 15, 2021. ASU No. 2018-15 should be applied either retrospectively or prospectively to all implementation costs incurred after the date of adoption. The Company adopted ASU No. 2018-15 effective January 1, 2021 using a prospective approach. The adoption of this standard did not have a material impact on its condensed consolidated financial statements.

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Revenue

6 Months Ended

Jun. 30, 2021

Revenue From Contract With Customer [Abstract]

Revenue

Note 2. Revenue

Disaggregation of Revenue

The following table depicts the disaggregation of revenue by geographic region based on the shipping address of customers (in thousands):

	Three Months Ended June 30,				Six Months Ended June 30,
	2021		2020		2021		2020
United States	$	38,336	$	28,075	$	75,290	$	47,505
EMEA		9,362		5,976		18,858		9,826
Other		4,420		2,269		8,069		3,735
Total revenue	$	52,118	$	36,320	$	102,217	$	61,066

The following table summarizes the foreign countries which contributed 10% or more of the total revenue (in thousands):

	Three Months Ended June 30,				Six Months Ended June 30,
	2021	2020			2021			2020
United Kingdom	10%		10	%		11	%		10	%

.

No single customer accounted for 10% or more of the total revenue during the three and six months ended June 30, 2021 and 2020. Additionally, no single customer accounted for 10% or more of accounts receivable as of June 30, 2021 and December 31, 2020.

The following table summarizes revenue by digital experience platform and Legacy offering (in thousands):

	Three Months Ended June 30,				Six Months Ended June 30,
	2021		2020		2021		2020
Digital experience platform - subscription and other platform	$	44,367	$	26,397	$	87,225	$	45,713
Digital experience platform - professional services		7,741		9,120		14,905		13,522
Legacy - subscription and other platform		10		699		62		1,310
Legacy - professional services		—		104		25		521
Total revenue	$	52,118	$	36,320	$	102,217	$	61,066

Contract Balances

Accounts receivable:  The Company records accounts receivable when the Company has a contractual right to consideration. In some arrangements, a right to consideration for the Company’s performance under the customer contract may occur before invoicing to the customer, resulting in an unbilled receivable. As of June 30, 2021 and December 31, 2020, unbilled receivables were included within accounts receivable, net of allowance for doubtful accounts on the condensed consolidated balance sheets and were not material.

Contract assets:  The Company records a contract asset when the Company has satisfied a performance obligation but does not yet have an unconditional right to consideration. Contract assets are included in prepaid expenses and other current assets in the condensed consolidated balance sheets and were not material as of June 30, 2021 and December 31, 2020.

Contract liabilities:  The Company defers its revenue when the Company has the right to invoice in advance of performance under a customer contract. The current portion of deferred revenue balances is recognized during the following 12-month period and the remaining portion is recorded as noncurrent, which is included in other long-term liabilities on the consolidated balance sheet. The amount of revenue recognized during the three and six months ended June 30, 2021 that was included in deferred revenue at the beginning of the period was $26.0 million and $65.4 million, respectively.

Remaining Performance Obligations

The terms of the Company’s subscription agreements are primarily annual and, to a lesser extent, multi-year. The Company may bill for the full term in advance or on an annual, quarterly or monthly basis, depending on the terms of the agreement. As of June 30, 2021, the aggregate amount of the transaction price allocated to remaining performance obligations was $155.4 million, which consists of both billed consideration in the amount of $95.1 million and unbilled consideration in the amount of $60.3 million that the Company expects to recognize as revenue. As of June 30, 2021, the Company expects to recognize 80% of its remaining performance obligations as revenue over the subsequent twelve months, and the remainder thereafter.

Costs to Obtain a Contract

The Company capitalizes sales commissions and associated payroll taxes paid to internal sales personnel and third-party referral fees that are incremental costs resulting from obtaining a contract with a customer. These costs are recorded as deferred contract acquisition costs on the condensed consolidated balance sheets. The Company determines whether costs should be deferred based on its sales compensation plans and if the commissions are incremental and would not have occurred absent the customer contract.

Sales commissions paid upon the initial acquisition of a customer contract are amortized over an estimated period of benefit of five years, as the Company specifically anticipates renewals of customer contracts and commissions paid on renewal contracts are not commensurate with commissions paid on new customer contracts. Sales commissions paid upon renewal of customer contracts are amortized over the contractual renewal term. Amortization is recognized on a straight-line basis commensurate with the pattern of revenue recognition. Sales commissions paid related to professional services are amortized over the expected service period. The Company determines the period of benefit for commissions paid for the acquisition of the initial customer contract by taking into consideration the initial estimated customer life and the technological life of its platform and related significant features. Amortization of deferred contract acquisition costs was $3.8 million and $7.5 million for the three and six months ended June 30, 2021, respectively, and $2.4 million and $4.3 million for the three and six months ended June 30, 2020, respectively. Amortization of deferred contract acquisition costs is included in sales and marketing expense in the condensed consolidated statements of operations. The Company has no impairment losses relating to deferred contract acquisition costs during the periods presented.

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Marketable Securities

6 Months Ended

Jun. 30, 2021

Marketable Securities [Abstract]

Marketable Securities

Note 3. Marketable Securities

 Marketable securities consisted of the following as of the periods presented (in thousands):

	June 30, 2021
	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Fair Value
Marketable Securities
U.S. Treasury securities	$	21,078	$	1	$	(5	)	$	21,074
Certificates of deposit		945		—		—			945
Corporate debt securities		15,281		—		(9	)		15,272
Commercial papers		3,245		—		—			3,245
Asset-backed securities		4,100		—		(5	)		4,095
Total marketable securities	$	44,649	$	1	$	(19	)	$	44,631

	December 31, 2020
	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value
Marketable Securities
Certificates of deposit	$	3,000	$	—	$	—	$	3,000
Total marketable securities	$	3,000	$	—	$	—	$	3,000

The Company’s marketable securities have been classified as available for sale. All available for sale debt securities are available for use in current operations. Accordingly, they have been classified as current.

As of June 30, 2021, the Company had no marketable securities in a continuous loss position for 12 months or more. As of December 31, 2020, the Company had no marketable securities in a loss position.

The Company reviews the individual securities that have unrealized losses on a regular basis to evaluate whether any security has experienced other-than-temporary decline in fair value below amortized cost. The Company evaluates, among other factors, whether the Company has the intention to sell any of these marketable securities and whether it is more likely than not that the Company will be required to sell any securities before recovery of the amortized cost basis. Since the Company has the ability to hold its investments until maturity, and the decline in fair value was not due to any credit-related factor, no decline was deemed to be other-than-temporary.

The Company had no realized gains or losses from marketable securities that were reclassified out of accumulated other comprehensive income for the three and six months ended June 30, 2021 and 2020.

The following summarizes the remaining contractual maturities of the Company’s marketable securities as of June 30, 2021:

	Fair Value
One year or less	$	12,371
Over one year through five years		32,260
Total marketable securities	$	44,631

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Fair Value Measurements

6 Months Ended

Jun. 30, 2021

Fair Value Disclosures [Abstract]

Fair Value Measurements

Note 4. Fair Value Measurements

The following tables summarizes our financial instruments recorded at fair value on a recurring basis by level within the fair value hierarchy as of the periods presented:

	June 30, 2021
	Level 1		Level 2		Level 3		Total
Cash equivalents
Money market funds	$	325,053	$	—	$	—	$	325,053
Marketable Securities
U.S. Treasury securities		—		21,074		—		21,074
Certificates of deposit		—		945		—		945
Corporate debt securities		—		15,272		—		15,272
Commercial papers		—		3,245		—		3,245
Asset-backed securities		—		4,095		—		4,095
Total cash equivalents and marketable securities	$	325,053	$	44,631	$	—	$	369,684

	December 31, 2020
	Level 1		Level 2		Level 3		Total
Cash equivalents
Money market funds	$	2,027	$	—	$	—	$	2,027
Marketable Securities
Certificates of deposit		3,000		—		—		3,000
Total cash equivalents and marketable securities	$	5,027	$	—	$	—	$	5,027

As of June 30, 2021, the Company classified its highly liquid money market funds within level 1 of the fair value hierarchy because they are valued based on quoted market prices in active markets. The Company classified its U.S. Treasury securities, certificates of deposit, commercial paper, corporate debt securities and asset-backed securities within level 2 of the fair value hierarchy because they are valued using inputs other than quoted prices that are directly or indirectly observable in the market, including readily available pricing sources for the identical underlying security, which may not be actively traded.

As of December 31, 2020, the Company classified its highly liquid money market funds and certificates of deposit within level 1 of the fair value hierarchy because they are valued based on quoted market prices in active markets.

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Balance Sheets Components

6 Months Ended

Jun. 30, 2021

Balance Sheet Related Disclosures [Abstract]

Balance Sheets Components

Note 5. Balance Sheets Components

Prepaid Expenses and Other Current Assets

Prepaid expenses and other current assets consisted of the following as of the periods presented (in thousands):

	June 30, 2021		December 31, 2020
Deferred offering costs	$	—	$	3,220
Prepaid expenses		7,822		2,848
Other receivables		2,802		873
Other		640		138
Prepaid expenses and other current assets	$	11,264	$	7,079

Property and Equipment, Net

Property and equipment, net consisted of the following as of the periods presented (in thousands):

	June 30, 2021			December 31, 2020
Computer, equipment and software(1)	$	27,152		$	24,175
Furniture and fixtures		1,092			1,108
Leasehold improvements		3,710			3,708
Property and equipment, gross		31,954			28,991
Less: Accumulated depreciation and amortization(2)		(22,179	)		(19,940	)
Property and equipment, net	$	9,775		$	9,051

(1) Includes assets recorded under capital leases of $7.1 million and $6.9 million as of June 30, 2021 and December 31, 2020, respectively.

(2) Includes amount for assets recorded under capital leases of $2.5 million and $2.2 million as of June 30, 2021 and December 31, 2020, respectively.

Depreciation and amortization expense was $1.1 million and $2.3 million for the three and six months ended June 30, 2021, respectively, and $0.7 million and $1.2 million for the three and six months ended June 30, 2020, respectively.

The following table presents the property and equipment, net of depreciation and amortization, by geographic region (in thousands):

	June 30, 2021		December 31, 2020
United States	$	9,404	$	8,698
EMEA		308		308
Other		63		45
Total property and equipment, net	$	9,775	$	9,051

Accrued Liabilities

Accrued liabilities consisted of the following as of the periods presented (in thousands):

	June 30, 2021		December 31, 2020
Accrued bonus	$	2,717	$	2,785
Accrued vacation		3,345		2,724
Accrued commissions		1,873		3,149
Accrued ESPP		1,719		—
Sales and other tax liabilities		658		1,086
Other		9,243		7,695
Accrued liabilities	$	19,555	$	17,439

Other Long-term Liabilities

Other long-term liabilities consisted of the following as of the periods presented (in thousands):

	June 30, 2021		December 31, 2020
Deferred rent liabilities	$	2,317	$	2,543
Deferred revenue		1,193		1,152
Other		349		327
Other long-term liabilities	$	3,859	$	4,022

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Debt

6 Months Ended

Jun. 30, 2021

Debt Disclosure [Abstract]

Debt

Note 6. Debt

Debt consisted of the following as of the periods presented (in thousands):

	June 30, 2021			December 31, 2020
Revolving line of credit	$	—		$	22,350
Equipment loan agreements		701			438
Capital leases		4,924			5,298
Total debt		5,625			28,086
Less: Current portion		(2,362	)		(2,359	)
Total long-term debt	$	3,263		$	25,727

Revolving Line of Credit

The Company has a revolving line of credit with a financing institution, which provides the Company the ability to borrow up to $30.0 million with a letter of credit sublimit of $3.9 million and a credit card sublimit of $0.7 million. The revolving line of credit is secured by a security interest on substantially all of the Company’s assets and is subject to certain financial covenants and restrictions, including the requirements of maintaining at all times a minimum of $5.0 million in cash at the institution as well as achieving certain amounts of operating income and deferred revenue for the trailing 12 months as defined by the agreement. In addition, the revolving line of credit agreement restricts the Company from paying dividends without prior approval from the financing institution. Interest on the revolving line of credit was the prime rate, as published by the Wall Street Journal (Prime Rate), plus 0.50% through July 2020 and the Prime Rate plus 0.75% upon the effective date of the amended and restated agreement entered in July 2020 as discussed below. The Prime Rate was 3.25% at June 30, 2021 and 2020. As of June 30, 2021, the Company had an outstanding standby letter of credit of $1.2 million as a guarantee for a leased space. The unused letter of credit sublimit was $2.7 million as of June 30, 2021.

In July 2020, the Company entered into an amended and restated agreement to extend the maturity date of its existing revolving line of credit to July 31, 2022 and amend the applicable margin on interest rate from 0.5% to 0.75%. Additionally, the Company is required to pay quarterly in arrears an unused facility fee of 0.25% per annum of the difference between the revolving line of credit and the average principal balance of the obligations during the applicable quarter. Other than these changes, the terms of the revolving line of credit agreement are substantially similar to those of the facility before the amendment.

The Company repaid in full the outstanding principal balance of its revolving line of credit of $22.4 million in the first quarter of 2021.

Equipment Loan Agreements

The Company has entered into various equipment loan agreements that allow it to obtain financing to purchase equipment. Borrowings are secured by the equipment purchased. The equipment loan agreements are repaid over a period up to 36 months beginning from the date of the advance at an interest rate ranging from 5.8% to 10.1%. As of June 30, 2021 and December 31, 2020, the Company owed $0.7 million and $0.4 million, respectively, on the equipment loans.

Capital Leases

The Company has entered into various noncancelable capital lease agreements for its equipment with lease periods expiring between 2021 and 2024.

As of June 30, 2021, future payments under the equipment loan agreements and capital lease obligations, are as follows (in thousands):

	Equipment Loans		Capital Leases		Total
Remainder of 2021	$	120	$	1,101	$	1,221
2022		274		2,302		2,576
2023		236		1,769		2,005
2024		71		71		142
Total payments		701		5,243		5,944
Less: Amount representing interest		—		319		319
Total payments, net of interest	$	701	$	4,924	$	5,625

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Commitment and Contingencies

6 Months Ended

Jun. 30, 2021

Commitments And Contingencies Disclosure [Abstract]

Commitment and Contingencies

Note 7. Commitment and Contingencies

Contingencies

The Company has agreed to indemnify its directors and executive officers for costs associated with any fees, expenses, judgments, fines, and settlement amounts incurred by any of these persons in any action or proceeding to which any of those persons is, or is threatened to be, made a party by reason of the person’s service as a director or officer, including any action by the Company, arising out of that person’s services as the Company’s director or officer or that person’s services provided to any other company or enterprise at the Company’s request. The Company maintains director and officer insurance coverage that may enable the Company to recover a portion of any future amounts paid.

FASB ASC 450-20, Contingencies, sets forth the rules for accounting for uncertain tax positions for taxes not based on income. When a loss contingency exists, the likelihood of the incurrence of the liability can range from probable to remote. The Company believes it is reasonably possible that a loss will result from the sales and use tax assessments in the range of zero to $1.8 million. The Company has not recorded an accrual as of June 30, 2021 and December 31, 2020.

Legal Proceedings

In the ordinary course of business, the Company may be subject from time to time to various proceedings, lawsuits, disputes or claims. Although the Company cannot predict with assurance the outcome of any litigation, the Company does not believe there are currently any such actions that, if resolved unfavorably, would have a material impact on its financial condition, results of operations or cash flows.

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Convertible Preferred Stock, Stockholders’ Equity (Deficit) and Equity Incentive Plan

6 Months Ended

Jun. 30, 2021

Equity [Abstract]

Convertible Preferred Stock, Stockholders’ Equity (Deficit) and Equity Incentive Plan

Note 8. Convertible Preferred Stock, Stockholders’ Equity (Deficit) and Equity Incentive Plan

Preferred Stock

In connection with the IPO, the Company’s amended and restated certificate of incorporation became effective, which authorized the issuance of 10,000,000 shares of undesignated preferred stock with a par value of $0.0001 per share. The Company’s board of directors is authorized to designate the rights, preferences, privileges and restrictions of the preferred stock from time to time.

Convertible Preferred Stock

Upon the closing of the IPO in February 2021, all 21,683,548 shares of the Company's outstanding Class A-1 and Class A-2 convertible preferred stock and 5,543,918 shares of Class B and Class B-1 redeemable convertible preferred stock were automatically converted into an aggregate of 27,227,466 shares of common stock on a one-for-one basis.

Common Stock

The amended and restated certificate of incorporation authorized the issuance of 500,000,000 shares of common stock, $0.0001 par value per share. Holders of common stock are entitled to one vote per share.

Equity Incentive Plan

In February 2021 in connection with the IPO, the Company adopted the 2021 Equity Incentive Plan (2021 Plan), which serves as a successor to and continuation of the 2014 Plan and 2000 Plan, collectively the “Predecessor Plans.” All shares that remained available for issuance under the Predecessor Plans as of the closing of the IPO, or that may expire or be canceled or forfeited following the closing of the IPO, become available for future issuance under the 2021 Plan.

Under the 2021 Plan, the Company may grant up to 8,282,313 shares of common stock which includes 6,400,000 shares of common stock reserved for issuance under the 2021 Plan, plus an additional 1,882,313 shares reserved for issuance under the 2014 Plan that the Company expects to become available for future issuance under the 2021 Plan. In addition, the number of shares reserved for issuance under the 2021 Plan cumulatively increases on January 1, 2022 and on each subsequent January 1 through and including January 1, 2031, by the lesser of (a) 5% of the number of shares of stock issued and outstanding on the immediately preceding December 31, or (b) an amount determined by the Company’s board of directors. The 2021 Plan provides for the grant of stock options, stock appreciation rights, restricted stock awards, restricted stock units, performance shares, performance units, cash-based awards and other stock-based awards. The plan administrator determines the term of stock options granted under the 2021 Plan, up to a maximum of 10 years.

Grant Activities

Stock Options

A summary of stock option activity under the Company’s equity incentive plans and related information is as follows:

	Options Outstanding
	Number of Shares			Weighted- Average Exercise Price		Weighted- Average Remaining Contractual Life (in years)		Aggregate Intrinsic Value (in thousands)
Balance as of December 31, 2020		11,947,731		$	4.85
Granted		481,403			50.12
Exercised		(766,072	)		2.34				37,279
Cancelled and forfeited		(202,556	)		17.86
Balance as of June 30, 2021		11,460,506		$	6.69		7.0	$	335,859
Vested and exercisable		6,317,999		$	2.62		5.3	$	207,698

Restricted Stock Units (RSUs)

A summary of RSU activity under the Company’s equity incentive plans and related information is as follows:

	RSUs Outstanding
	Number of Shares			Weighted-Average Grant Date Fair Value
Unvested balance as of December 31, 2020		—		$	—
Granted		455,350			37.36
Cancelled and forfeited		(26,800	)		74.50
Unvested balance as of June 30, 2021		428,550		$	35.03

Restricted Stock Unit with Performance Conditions

In June 2014, the Company’s board of directors approved the issuance of 187,500 restricted stock units to an executive officer with a grant date fair value of $0.5 million. No monetary payment was required as a condition to receiving the shares of stock. The award provided that the restricted stock units would vest upon the satisfaction of the following two conditions occurring before June 17, 2021: (i) satisfaction of a service condition of one year and (ii) the occurrence of a liquidity event defined as a change of control or an IPO. The grant date fair value of the awards was not recognized as compensation expense until the performance criteria was probable.

Upon the consummation of the Company’s IPO in February 2021, these restricted stock units fully vested and the related stock-based compensation expense of $0.5 million was fully recognized. In accordance with the terms of the grant agreement, these restricted stock units will be settled after the expiration of the lock-up period in the fourth quarter of 2021.

Employee Stock Purchase Plan

In January 2021, the Company’s board of directors adopted the 2021 Employee Stock Purchase Plan (ESPP), which became effective in connection with the Company’s IPO. A total of 1,300,000 shares of common stock were initially reserved for issuance under the ESPP. The number of shares reserved for issuance cumulatively increases automatically on January 1, 2022 and on each subsequent January 1, through and including January 1, 2031, by the lesser of (a) 1% of the number of shares of stock issued and outstanding on the immediately preceding December 31, (b) 1,300,000 shares, or (c) an amount determined by the Company’s board of directors.

 All eligible employees may participate in the ESPP and may contribute up to 20% of their earnings (as defined in the ESPP) for the purchase of the Company’s common stock under the ESPP. Unless otherwise determined by the Company’s board of directors, common stock will be purchased for the accounts of employees participating in the ESPP at a price per share equal to the lesser of (1) 85% of the fair market value of a share of the Company’s common stock on the first date of an offering or (2) 85% of the fair market value of a share of the Company’s common stock on the date of purchase. Offering periods generally start on the first trading day on or after May 16 and November 16 of each year, except for the first offering period, which commenced on the effective date of the Company’s IPO and will end on November 15, 2021. As of June 30, 2021, no shares of common stock have been purchased under the ESPP.

Fair Value Determination

The Black-Scholes assumptions used to value the employee options and the ESPP purchase right at the grant dates are as follows:

Employee Stock Options

	Three Months Ended June 30,						Six Months Ended June 30,
	2021			2020			2021			2020
Expected term	5.92 years	-	6.03 years	6.25 years			5.92 years	-	6.07 years	6.25 years
Expected volatility	54.82%	-	54.98%	41.60%			53.82%	-	54.98%	41.60%
Risk-free interest rate	0.94%	-	0.96%	0.42%	-	0.46%	0.62%	-	0.96%	0.42%	-	1.70%
Dividend yield	— %			— %			— %			— %

ESPP

	Three Months Ended June 30, 2021			Six Months Ended June 30, 2021
Expected term	0.38 years			0.38 years	-	0.63 years
Expected volatility		60.0	%	60.0%	-	61.0%
Risk-free interest rate		0.06	%	0.06%
Dividend yield		—	%	— %

These assumptions and estimates were determined as follows:

• Fair Value of Common Stock.  Prior to the Company’s IPO, the fair value was determined by the Company’s board of directors, with input from management and valuation reports prepared by third-party valuation specialists. Stock-based compensation for financial reporting purposes is measured based on updated estimates of fair value when appropriate, such as when additional relevant information related to the estimate becomes available in a valuation report issued as of a subsequent date. For valuations after the consummation of the Company’s IPO, the fair value of each share of underlying common stock is based on the closing price of the Company’s common stock as reported on the date of the grant on the New York Stock Exchange.

• Risk-Free Interest Rate. The risk-free interest rate for the expected term of the options is based on the U.S. Treasury yield curve in effect at the time of the grant.

• Expected Term. The expected term of options represents the period of time that options are expected to be outstanding. The Company’s historical stock option exercise experience does not provide a reasonable basis upon which to estimate an expected term due to a lack of sufficient data. For stock options granted to employees, the Company estimates the expected term by using the simplified method. The simplified method calculates the expected term as the average of the time-to-vesting and the contractual life of the options. For stock options granted to non-employees, the expected term equals the contractual term of the option. With respect to the ESPP, the expected term is the length of purchase period.

• Expected Volatility. As the Company has a short trading history for its common stock, the expected volatility is estimated by taking the average historic price volatility for industry peers, consisting of several public companies in its industry that are similar in size, stage of life cycle, or financial leverage, over a period equivalent to the expected term of the awards.

• Expected Dividend Yield. The Company has not declared or paid any cash dividends and does not presently plan to pay cash dividends in the foreseeable future. As a result, an expected dividend yield of zero percent was used.

Stock-Based Compensation

Effective January 1, 2021, the Company elected to account for forfeited awards as they occur.

The stock-based compensation expense by line item in the accompanying condensed consolidated statements of operations is summarized as follows (in thousands):

	Three Months Ended June 30,				Six Months Ended June 30,
	2021		2020		2021		2020
Cost of revenue
Subscription and other platform	$	346	$	24	$	583	$	47
Professional services		77		5		139		9
Total cost of revenue		423		29		722		56
Sales and marketing		1,571		147		3,263		288
Research and development		862		62		1,644		119
General and administrative		2,114		192		4,335		370
Total stock-based compensation expense	$	4,970	$	430	$	9,964	$	833

As of June 30, 2021, unrecognized stock-based compensation expense by award type and their weighted-average recognition periods are as follows (in thousands, except years):

	Stock Option		RSU		ESPP
Unrecognized stock-based compensation expense	$	58,652	$	14,566	$	402
Weighted-average amortization period	3.35 years		3.68 years		0.38 years

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Income Taxes

6 Months Ended

Jun. 30, 2021

Income Tax Disclosure [Abstract]

Income Taxes

Note 9. Income Taxes

The Company’s income tax expense (benefit) was as follows (in thousands):

	Three Months Ended June 30,					Six Months Ended June 30,
	2021			2020		2021			2020
Provision for (benefit from) income taxes	$	(282	)	$	37	$	(33	)	$	92

The Company’s provision for (benefit from) income taxes for interim periods is determined using an estimate of its annual effective tax rate, adjusted for discrete items, if any. The Company updates its estimate of the annual effective tax rate and makes a year-to-date adjustment to the provision quarterly. Benefit from income taxes for the three and six months ended June 30, 2021 increased by $0.3 million and $0.1 million, respectively, compared to the three and six months ended June 30, 2020. The change in benefit from income taxes for each respective period was primarily driven by the tax benefits associated with the exercise of stock options in a foreign jurisdiction.

The Company regularly performs an assessment on the likelihood of realizing benefits of its deferred tax assets. As of June 30, 2021, the Company recorded a valuation allowance against its U.S. deferred tax assets based on available evidence. However, if there are favorable changes to actual operating results or to projections of future income, the Company may determine that it is more likely than not that such deferred tax assets may be realizable.

Utilization of net operating loss carryforwards, tax credits and other attributes may be subject to future annual limitations due to the ownership change limitations provided by Section 382 of the Internal Revenue Code and similar state provisions.

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Net Income (Loss) Per Share Attributable to Common Stockholders

6 Months Ended

Jun. 30, 2021

Earnings Per Share [Abstract]

Net Income (Loss) Per Share Attributable to Common Stockholders

Note 10. Net Income (Loss) Per Share Attributable to Common Stockholders

The following tables sets forth the computation of basic and diluted net loss per share attributable to common stockholders for the periods presented (in thousands, except share and per share data):

	Three Months Ended June 30,						Six Months Ended June 30,
Basic net income (loss) per share	2021			2020			2021			2020
Net income (loss)	$	(2,517	)	$	6,702		$	(5,347	)	$	4,643
Cumulative preferred dividends allocated to preferred stockholders		—			(1,427	)		(558	)		(2,752	)
Net income (loss) attributable to common stockholders		(2,517	)		5,275			(5,905	)		1,891
Income available to participating securities		—			(3,889	)		—			(1,406	)
Net income (loss) available to common stockholders	$	(2,517	)	$	1,386		$	(5,905	)	$	485
Net income (loss) per share of common stock, basic	$	(0.05	)	$	0.14		$	(0.15	)	$	0.05
Weighted-average common stock outstanding, basic		46,570,195			9,707,995			39,664,436			9,419,113

	Three Months Ended June 30,						Six Months Ended June 30,
Diluted net income (loss) per share	2021			2020			2021			2020
Net income (loss)	$	(2,517	)	$	6,702		$	(5,347	)	$	4,643
Cumulative preferred dividends allocated to preferred stockholders		—			(1,427	)		(558	)		(2,752	)
Net income (loss) attributable to common stockholders		(2,517	)		5,275			(5,905	)		1,891
Reallocation of earnings to participating securities considering potentially dilutive securities		—			(3,826	)		—			(1,383	)
Net income (loss) available to common stockholders	$	(2,517	)	$	1,449		$	(5,905	)	$	508
Net income (loss) per share of common stock, diluted	$	(0.05	)	$	0.14		$	(0.15	)	$	0.05
Weighted average common stock outstanding, basic		46,570,195			9,707,995			39,664,436			9,419,113
Weighted average dilutive effect of stock options and restricted stock		—			607,299			—			594,678
Weighted-average common stock outstanding, diluted		46,570,195			10,315,294			39,664,436			10,013,791

The following table sets forth the potential shares of common stock that were excluded from the computation of diluted net loss per share attributable to common stockholders for the periods presented because including them would have been antidilutive:

	Three Months Ended June 30,				Six Months Ended June 30,
	2021		2020		2021		2020
Convertible preferred stock (on an if-converted basis)		—		5,543,918		—		5,543,918
Outstanding stock options		11,460,506		4,990,706		11,460,506		4,640,516
Restricted stock units		428,550		187,500		428,550		187,500
ESPP purchase rights		88,284		—		88,284		—
Total antidilutive securities		11,977,340		10,722,124		11,977,340		10,371,934

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Related Party Transactions

6 Months Ended

Jun. 30, 2021

Related Party Transactions [Abstract]

Related Party Transactions

Note 11. Related Party Transactions

During the three and six months ended June 30, 2021 and 2020, the Company incurred engineering and quality assurance costs from a third-party vendor. The chief executive officer of the third-party vendor is considered an immediate family member of the Company’s chief technology officer. The Company recorded $0.6 million and $1.1 million in the three and six months ended June 20, 2021, respectively, and $0.4 million and $0.8 million in the three and six months ended June 30, 2020, respectively, in research and development expense relating to this third party vendor on the condensed consolidated statements of operations. As of June 30, 2021 and December 31, 2020, amounts owed to this third party vendor were $0.2 million and $0.2 million, respectively, and were included in accounts payable and accrued liabilities on the condensed consolidated balance sheets.

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Description of Business and Significant Accounting Policies (Policies)

6 Months Ended

Jun. 30, 2021

Organization Consolidation And Presentation Of Financial Statements [Abstract]

Basis of Presentation and Significant Accounting Policies

Basis of Presentation

The accompanying condensed consolidated financial statements have been prepared in accordance with generally accepted accounting principles in the United States of America (U.S. GAAP) and applicable rules and regulations of the Securities and Exchange Commission (SEC) for interim financial reporting. Certain information and note disclosures included in the Company’s annual financial statements prepared in accordance with GAAP have been condensed or omitted pursuant to such rules and regulations. Therefore, these condensed consolidated financial statements should be read in conjunction with the consolidated financial statements and notes included in the Company’s annual report on Form 10-K for the year ended December 31, 2020. In the opinion of management, the condensed consolidated financial statements reflect all adjustments that are normal and recurring in nature and necessary for fair financial statement presentation. All intercompany transactions and balances have been eliminated in consolidation.

The results of operations for the three and six months ended June 30, 2021 are not necessarily indicative of the operating results anticipated for the full year.

Significant Accounting Policies

Effective January 1, 2021, the Company elected to account for forfeited awards as they occur. Prior to 2021, the Company estimated the number of awards expected to be forfeited at the time of grant and revised its estimates in subsequent periods if the actual forfeitures differed from the estimates. The impact of the change was not material. There has been no material change to the Company’s significant accounting policies during the three and six months ended June 30, 2021.

Prior Period Reclassification Adjustment

Certain prior period amounts have been reclassified on the condensed consolidated statements of cash flows to conform to the current year's presentation. None of these reclassifications had a material impact to the Company’s condensed consolidated financial statements.

Use of Estimates

Use of Estimates

The preparation of condensed consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the condensed consolidated financial statements and the reported amounts of revenue and expenses during the reporting period. Significant items subject to such estimates and assumptions include, but are not limited to, the estimated expected benefit period for deferred contract acquisition costs, the determination of standalone selling price for the Company’s performance obligations, the allowance for doubtful accounts and billing reserve, the useful lives of long-lived assets, the estimated value of common stock prior to the IPO and other assumptions used to measure stock-based compensation, the valuation of deferred income tax assets and uncertain tax positions. Actual results could differ from those estimates.

Deferred Offering Costs

Deferred Offering Costs

Deferred offering costs consist primarily of accounting, legal and other fees incremental and directly related to the Company’s IPO. Upon closing of the IPO on February 5, 2021, the deferred offering costs of $5.4 million were reclassified into stockholders' equity (deficit) and recorded against the proceeds from the offering. Deferred offering costs as of December 31, 2020 was $3.2 million within prepaid expenses and other current assets on the condensed consolidated balance sheets.

Stock-Based Compensation

Stock-Based Compensation

Stock-based compensation expense related to stock awards is recognized based on the fair value of the awards granted. The fair value of each option award is estimated on the grant date using the Black-Scholes option pricing model. The Black-Scholes option pricing model requires the input of highly subjective assumptions, including the fair value of the underlying common stock, the risk-free interest rates, the expected term of the option, the expected volatility of the price of the Company’s common stock and the expected dividend yield of the Company’s common stock. The assumptions used to determine the fair value of the option awards represent management’s best estimates. These estimates involve inherent uncertainties and application of management’s judgement. The related stock-based compensation expense is recognized on a straight-line basis over the requisite service period for each separately vesting portion of the award, which is generally four years. Effective January 1, 2021, the Company elected to account for forfeited awards as they occur. Prior to 2021, the Company estimated the number of awards expected to be forfeited at the time of grant and revised its estimates in subsequent periods if the actual forfeitures differed from the estimates. This change in accounting policy did not have a material impact on the Company’s condensed consolidated financial statements.

Recently Adopted Accounting Standards

Recently Adopted Accounting Standards

In December 2019, the FASB issued ASU No. 2019-12, Income Taxes Topic 740: Simplifying the Accounting for Income Taxes, which removes a variety of exceptions within the framework of ASC 740. These include the exception to the incremental approach for intraperiod tax allocation in the event of a loss from continuing operations and income or a gain from other items (such as other comprehensive income), and the exception to using general methodology for the interim period tax accounting for year-to-date losses that exceed anticipated losses. For public business entities, ASU No. 2019-12 is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2020. For all other entities, ASU No. 2019-12 is effective for fiscal years beginning after December 15, 2021, and interim periods within fiscal years beginning after December 15, 2022. Early adoption of the amendments is permitted, including adoption in any interim period for (1) public business entities for periods for which financial statements have not yet been issued and (2) all other entities for periods for which financial statements have not yet been made available for issuance. The adoption of this standard did not have a material impact on its condensed consolidated financial statements.

In August 2018, the FASB issued ASU No. 2018-15, Intangibles-Goodwill and Other-Internal-Use Software (Subtopic 350-40): Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement that is a Service Contract. This new standard requires an entity (customer) in a hosting arrangement that is a service contract to follow the guidance in Subtopic 350-40 to determine which implementation costs to capitalize as an asset related to the service contract and which costs to expense. Costs for implementation activities in the application development stage can be capitalized depending on the nature of the costs, while costs incurred during the preliminary project and post-implementation stages are expensed as the activities are performed. The costs capitalized are expensed over the term of the hosting arrangement. The amendments in ASU No. 2018-15 also require the entity to present the expense related to the capitalized implementation costs in the same line item in the statement of income as the fees associated with the hosting element (service) of the arrangement and classify payments for capitalized implementation costs in the statement of cash flows in the same manner as payments made for fees associated with the hosting element. ASU No. 2018-15 is effective for public business entities for fiscal years beginning after December 15, 2019, and interim periods within those fiscal years. For all other entities, ASU No. 2018-15 is effective for annual reporting periods beginning after December 15, 2020, and interim periods within annual periods beginning after December 15, 2021. ASU No. 2018-15 should be applied either retrospectively or prospectively to all implementation costs incurred after the date of adoption. The Company adopted ASU No. 2018-15 effective January 1, 2021 using a prospective approach. The adoption of this standard did not have a material impact on its condensed consolidated financial statements.

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Revenue (Tables)

6 Months Ended

Jun. 30, 2021

Disaggregation Of Revenue [Line Items]

Schedule of Disaggregation of Revenue by Geographic Region

The following table depicts the disaggregation of revenue by geographic region based on the shipping address of customers (in thousands):

	Three Months Ended June 30,				Six Months Ended June 30,
	2021		2020		2021		2020
United States	$	38,336	$	28,075	$	75,290	$	47,505
EMEA		9,362		5,976		18,858		9,826
Other		4,420		2,269		8,069		3,735
Total revenue	$	52,118	$	36,320	$	102,217	$	61,066

Summary of Revenue by Digital Experience Platform and Legacy Offering

The following table summarizes revenue by digital experience platform and Legacy offering (in thousands):

	Three Months Ended June 30,				Six Months Ended June 30,
	2021		2020		2021		2020
Digital experience platform - subscription and other platform	$	44,367	$	26,397	$	87,225	$	45,713
Digital experience platform - professional services		7,741		9,120		14,905		13,522
Legacy - subscription and other platform		10		699		62		1,310
Legacy - professional services		—		104		25		521
Total revenue	$	52,118	$	36,320	$	102,217	$	61,066

Geographic Concentration Risk | Revenue

Disaggregation Of Revenue [Line Items]

Schedule of Foreign Countries Which Contributed 10% or More of Total Revenue

The following table summarizes the foreign countries which contributed 10% or more of the total revenue (in thousands):

	Three Months Ended June 30,				Six Months Ended June 30,
	2021	2020			2021			2020
United Kingdom	10%		10	%		11	%		10	%

.

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Marketable Securities (Tables)

6 Months Ended

Jun. 30, 2021

Marketable Securities [Abstract]

Summary of Marketable Securities

 Marketable securities consisted of the following as of the periods presented (in thousands):

	June 30, 2021
	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Fair Value
Marketable Securities
U.S. Treasury securities	$	21,078	$	1	$	(5	)	$	21,074
Certificates of deposit		945		—		—			945
Corporate debt securities		15,281		—		(9	)		15,272
Commercial papers		3,245		—		—			3,245
Asset-backed securities		4,100		—		(5	)		4,095
Total marketable securities	$	44,649	$	1	$	(19	)	$	44,631

	December 31, 2020
	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value
Marketable Securities
Certificates of deposit	$	3,000	$	—	$	—	$	3,000
Total marketable securities	$	3,000	$	—	$	—	$	3,000

Summary of Remaining Contractual Maturities of Marketable Securities

The following summarizes the remaining contractual maturities of the Company’s marketable securities as of June 30, 2021:

	Fair Value
One year or less	$	12,371
Over one year through five years		32,260
Total marketable securities	$	44,631

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Fair Value Measurements (Tables)

6 Months Ended

Jun. 30, 2021

Fair Value Disclosures [Abstract]

Summary of Financial Instruments Recorded at Fair Value on Recurring Basis

The following tables summarizes our financial instruments recorded at fair value on a recurring basis by level within the fair value hierarchy as of the periods presented:

	June 30, 2021
	Level 1		Level 2		Level 3		Total
Cash equivalents
Money market funds	$	325,053	$	—	$	—	$	325,053
Marketable Securities
U.S. Treasury securities		—		21,074		—		21,074
Certificates of deposit		—		945		—		945
Corporate debt securities		—		15,272		—		15,272
Commercial papers		—		3,245		—		3,245
Asset-backed securities		—		4,095		—		4,095
Total cash equivalents and marketable securities	$	325,053	$	44,631	$	—	$	369,684

	December 31, 2020
	Level 1		Level 2		Level 3		Total
Cash equivalents
Money market funds	$	2,027	$	—	$	—	$	2,027
Marketable Securities
Certificates of deposit		3,000		—		—		3,000
Total cash equivalents and marketable securities	$	5,027	$	—	$	—	$	5,027

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Balance Sheets Components (Tables)

6 Months Ended

Jun. 30, 2021

Balance Sheet Related Disclosures [Abstract]

Summary of Prepaid Expenses and Other Current Assets

Prepaid expenses and other current assets consisted of the following as of the periods presented (in thousands):

	June 30, 2021		December 31, 2020
Deferred offering costs	$	—	$	3,220
Prepaid expenses		7,822		2,848
Other receivables		2,802		873
Other		640		138
Prepaid expenses and other current assets	$	11,264	$	7,079

Summary of Property and Equipment, Net

Property and equipment, net consisted of the following as of the periods presented (in thousands):

	June 30, 2021			December 31, 2020
Computer, equipment and software(1)	$	27,152		$	24,175
Furniture and fixtures		1,092			1,108
Leasehold improvements		3,710			3,708
Property and equipment, gross		31,954			28,991
Less: Accumulated depreciation and amortization(2)		(22,179	)		(19,940	)
Property and equipment, net	$	9,775		$	9,051

(1) Includes assets recorded under capital leases of $7.1 million and $6.9 million as of June 30, 2021 and December 31, 2020, respectively.

(2) Includes amount for assets recorded under capital leases of $2.5 million and $2.2 million as of June 30, 2021 and December 31, 2020, respectively.

Schedule of Property and Equipment, Net of Depreciation and Amortization, by Geographic Region

The following table presents the property and equipment, net of depreciation and amortization, by geographic region (in thousands):

	June 30, 2021		December 31, 2020
United States	$	9,404	$	8,698
EMEA		308		308
Other		63		45
Total property and equipment, net	$	9,775	$	9,051

Summary of Accrued Liabilities

Accrued liabilities consisted of the following as of the periods presented (in thousands):

	June 30, 2021		December 31, 2020
Accrued bonus	$	2,717	$	2,785
Accrued vacation		3,345		2,724
Accrued commissions		1,873		3,149
Accrued ESPP		1,719		—
Sales and other tax liabilities		658		1,086
Other		9,243		7,695
Accrued liabilities	$	19,555	$	17,439

Summary of Other Long-Term Liabilities

Other long-term liabilities consisted of the following as of the periods presented (in thousands):

	June 30, 2021		December 31, 2020
Deferred rent liabilities	$	2,317	$	2,543
Deferred revenue		1,193		1,152
Other		349		327
Other long-term liabilities	$	3,859	$	4,022

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Debt (Tables)

6 Months Ended

Jun. 30, 2021

Debt Disclosure [Abstract]

Summary of Debt

Debt consisted of the following as of the periods presented (in thousands):

	June 30, 2021			December 31, 2020
Revolving line of credit	$	—		$	22,350
Equipment loan agreements		701			438
Capital leases		4,924			5,298
Total debt		5,625			28,086
Less: Current portion		(2,362	)		(2,359	)
Total long-term debt	$	3,263		$	25,727

Schedule of Future Payments Under Equipment Loan Agreements and Capital Lease Obligations

As of June 30, 2021, future payments under the equipment loan agreements and capital lease obligations, are as follows (in thousands):

	Equipment Loans		Capital Leases		Total
Remainder of 2021	$	120	$	1,101	$	1,221
2022		274		2,302		2,576
2023		236		1,769		2,005
2024		71		71		142
Total payments		701		5,243		5,944
Less: Amount representing interest		—		319		319
Total payments, net of interest	$	701	$	4,924	$	5,625

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Convertible Preferred Stock, Stockholders’ Equity (Deficit) and Equity Incentive Plan - (Tables)

6 Months Ended

Jun. 30, 2021

Equity [Abstract]

Summary of Stock Options

A summary of stock option activity under the Company’s equity incentive plans and related information is as follows:

	Options Outstanding
	Number of Shares			Weighted- Average Exercise Price		Weighted- Average Remaining Contractual Life (in years)		Aggregate Intrinsic Value (in thousands)
Balance as of December 31, 2020		11,947,731		$	4.85
Granted		481,403			50.12
Exercised		(766,072	)		2.34				37,279
Cancelled and forfeited		(202,556	)		17.86
Balance as of June 30, 2021		11,460,506		$	6.69		7.0	$	335,859
Vested and exercisable		6,317,999		$	2.62		5.3	$	207,698

Summary of RSU Activity Under Equity Incentive Plans and Related Information

A summary of RSU activity under the Company’s equity incentive plans and related information is as follows:

	RSUs Outstanding
	Number of Shares			Weighted-Average Grant Date Fair Value
Unvested balance as of December 31, 2020		—		$	—
Granted		455,350			37.36
Cancelled and forfeited		(26,800	)		74.50
Unvested balance as of June 30, 2021		428,550		$	35.03

Schedule of Black-Scholes Assumptions Used to Value the Employee Stock Options

Employee Stock Options

	Three Months Ended June 30,						Six Months Ended June 30,
	2021			2020			2021			2020
Expected term	5.92 years	-	6.03 years	6.25 years			5.92 years	-	6.07 years	6.25 years
Expected volatility	54.82%	-	54.98%	41.60%			53.82%	-	54.98%	41.60%
Risk-free interest rate	0.94%	-	0.96%	0.42%	-	0.46%	0.62%	-	0.96%	0.42%	-	1.70%
Dividend yield	— %			— %			— %			— %

Schedule of Black-Scholes Assumptions Used to Value the ESPP

ESPP

	Three Months Ended June 30, 2021			Six Months Ended June 30, 2021
Expected term	0.38 years			0.38 years	-	0.63 years
Expected volatility		60.0	%	60.0%	-	61.0%
Risk-free interest rate		0.06	%	0.06%
Dividend yield		—	%	— %

Summary of Share-based Compensation Expense by line item in the Condensed Consolidated Statements of Operations

The stock-based compensation expense by line item in the accompanying condensed consolidated statements of operations is summarized as follows (in thousands):

	Three Months Ended June 30,				Six Months Ended June 30,
	2021		2020		2021		2020
Cost of revenue
Subscription and other platform	$	346	$	24	$	583	$	47
Professional services		77		5		139		9
Total cost of revenue		423		29		722		56
Sales and marketing		1,571		147		3,263		288
Research and development		862		62		1,644		119
General and administrative		2,114		192		4,335		370
Total stock-based compensation expense	$	4,970	$	430	$	9,964	$	833

Summary of Unrecognized Stock-Based Compensation Expenses

As of June 30, 2021, unrecognized stock-based compensation expense by award type and their weighted-average recognition periods are as follows (in thousands, except years):

	Stock Option		RSU		ESPP
Unrecognized stock-based compensation expense	$	58,652	$	14,566	$	402
Weighted-average amortization period	3.35 years		3.68 years		0.38 years

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Income Taxes (Tables)

6 Months Ended

Jun. 30, 2021

Income Tax Disclosure [Abstract]

Schedule of Income Tax Expense (Benefit)

The Company’s income tax expense (benefit) was as follows (in thousands):

	Three Months Ended June 30,					Six Months Ended June 30,
	2021			2020		2021			2020
Provision for (benefit from) income taxes	$	(282	)	$	37	$	(33	)	$	92

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Net Income (Loss) Per Share Attributable to Common Stockholders (Tables)

6 Months Ended

Jun. 30, 2021

Earnings Per Share [Abstract]

Schedule of Computation of Basic and Diluted Net Loss Per Share

The following tables sets forth the computation of basic and diluted net loss per share attributable to common stockholders for the periods presented (in thousands, except share and per share data):

	Three Months Ended June 30,						Six Months Ended June 30,
Basic net income (loss) per share	2021			2020			2021			2020
Net income (loss)	$	(2,517	)	$	6,702		$	(5,347	)	$	4,643
Cumulative preferred dividends allocated to preferred stockholders		—			(1,427	)		(558	)		(2,752	)
Net income (loss) attributable to common stockholders		(2,517	)		5,275			(5,905	)		1,891
Income available to participating securities		—			(3,889	)		—			(1,406	)
Net income (loss) available to common stockholders	$	(2,517	)	$	1,386		$	(5,905	)	$	485
Net income (loss) per share of common stock, basic	$	(0.05	)	$	0.14		$	(0.15	)	$	0.05
Weighted-average common stock outstanding, basic		46,570,195			9,707,995			39,664,436			9,419,113

	Three Months Ended June 30,						Six Months Ended June 30,
Diluted net income (loss) per share	2021			2020			2021			2020
Net income (loss)	$	(2,517	)	$	6,702		$	(5,347	)	$	4,643
Cumulative preferred dividends allocated to preferred stockholders		—			(1,427	)		(558	)		(2,752	)
Net income (loss) attributable to common stockholders		(2,517	)		5,275			(5,905	)		1,891
Reallocation of earnings to participating securities considering potentially dilutive securities		—			(3,826	)		—			(1,383	)
Net income (loss) available to common stockholders	$	(2,517	)	$	1,449		$	(5,905	)	$	508
Net income (loss) per share of common stock, diluted	$	(0.05	)	$	0.14		$	(0.15	)	$	0.05
Weighted average common stock outstanding, basic		46,570,195			9,707,995			39,664,436			9,419,113
Weighted average dilutive effect of stock options and restricted stock		—			607,299			—			594,678
Weighted-average common stock outstanding, diluted		46,570,195			10,315,294			39,664,436			10,013,791

Schedule of Potential Shares of Common Stock Excluded from Computation of Diluted Net Loss Per Share

The following table sets forth the potential shares of common stock that were excluded from the computation of diluted net loss per share attributable to common stockholders for the periods presented because including them would have been antidilutive:

	Three Months Ended June 30,				Six Months Ended June 30,
	2021		2020		2021		2020
Convertible preferred stock (on an if-converted basis)		—		5,543,918		—		5,543,918
Outstanding stock options		11,460,506		4,990,706		11,460,506		4,640,516
Restricted stock units		428,550		187,500		428,550		187,500
ESPP purchase rights		88,284		—		88,284		—
Total antidilutive securities		11,977,340		10,722,124		11,977,340		10,371,934

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Description of Business and Significant Accounting Policies - Additional Information (Details) $ / shares in Units, $ in Thousands		6 Months Ended
	Feb. 05, 2021 USD ($) $ / shares shares	Jun. 30, 2021 USD ($) shares	Dec. 31, 2020 USD ($)
Description of Business and Significant Accounting Policies [Line Items]
Net proceeds		$ 353,397
Underwriting discounts		$ 3,481
Deferred offering costs within prepaid expenses and other current asset/ reclassified into stockholders' equity (deficit)			$ 3,220
Requisite service period		4 years
Prepaid Expenses and Other Current Assets
Description of Business and Significant Accounting Policies [Line Items]
Deferred offering costs within prepaid expenses and other current asset/ reclassified into stockholders' equity (deficit)			$ 3,200
IPO
Description of Business and Significant Accounting Policies [Line Items]
Conversion of convertible preferred stock to common stock upon closing of initial public offering (in shares) | shares	27,227,466
Common Stock
Description of Business and Significant Accounting Policies [Line Items]
Shares issued | shares		7,599,928
Conversion of convertible preferred stock to common stock upon closing of initial public offering (in shares) | shares		27,227,466
Common Stock | IPO
Description of Business and Significant Accounting Policies [Line Items]
Shares issued | shares	7,599,928
Public offering price per share | $ / shares	$ 50
Net proceeds	$ 348,000
Underwriting discounts	26,600
Other offering costs	$ 5,400
Conversion of convertible preferred stock to common stock upon closing of initial public offering (in shares) | shares	27,227,466
Conversion of convertible preferred stock to common stock, ratio	1
Additional Paid-in Capital
Description of Business and Significant Accounting Policies [Line Items]
Deferred offering costs within prepaid expenses and other current asset/ reclassified into stockholders' equity (deficit)	$ 5,400

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Revenue - Schedule of Disaggregation of Revenue by Geographic Region (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2021	Jun. 30, 2020	Jun. 30, 2021	Jun. 30, 2020
Disaggregation Of Revenue [Line Items]
Total revenue	$ 52,118	$ 36,320	$ 102,217	$ 61,066
United States
Disaggregation Of Revenue [Line Items]
Total revenue	38,336	28,075	75,290	47,505
EMEA
Disaggregation Of Revenue [Line Items]
Total revenue	9,362	5,976	18,858	9,826
Other
Disaggregation Of Revenue [Line Items]
Total revenue	$ 4,420	$ 2,269	$ 8,069	$ 3,735

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Revenue - Additional Information (Details)	3 Months Ended		6 Months Ended		12 Months Ended
	Jun. 30, 2021 USD ($) Customer	Jun. 30, 2020 USD ($) Customer	Jun. 30, 2021 USD ($) Customer	Jun. 30, 2020 USD ($) Customer	Dec. 31, 2020
Disaggregation Of Revenue [Line Items]
Revenue recognized related to deferred revenue	$ 26,000,000.0		$ 65,400,000
Capitalized contract cost, amortization period	5 years		5 years
Amortization of deferred contract acquisition cost			$ 7,502,000	$ 4,345,000
Impairment losses of deferred contract acquisition costs	$ 0	$ 0	0	0
Sales and Marketing Expense
Disaggregation Of Revenue [Line Items]
Amortization of deferred contract acquisition cost	$ 3,800,000	$ 2,400,000	$ 7,500,000	$ 4,300,000
Geographic Concentration Risk | Revenue | Non-US
Disaggregation Of Revenue [Line Items]
Percentage of concentration risk		10.00%		10.00%
Customer Concentration Risk | Revenue
Disaggregation Of Revenue [Line Items]
Percentage of concentration risk	10.00%	10.00%	10.00%	10.00%
Number of single customer representing more than ten percent threshold | Customer	0	0	0	0
Credit Concentration Risk | Accounts Receivable
Disaggregation Of Revenue [Line Items]
Percentage of concentration risk			10.00%		10.00%
Number of single customer representing more than ten percent threshold | Customer	0		0

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Revenue - Foreign Countries Which Contributed 10% or more of Total Revenue (Detail)	3 Months Ended		6 Months Ended
	Jun. 30, 2021	Jun. 30, 2020	Jun. 30, 2021	Jun. 30, 2020
Geographic Concentration Risk | Revenue | United Kingdom
Disaggregation Of Revenue [Line Items]
Percentage of concentration risk	10.00%	10.00%	11.00%	10.00%

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Revenue - Summary of Revenue by Digital Experience Platform and Legacy Offering (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2021	Jun. 30, 2020	Jun. 30, 2021	Jun. 30, 2020
Disaggregation Of Revenue [Line Items]
Total revenue	$ 52,118	$ 36,320	$ 102,217	$ 61,066
Digital Experience Platform - Subscription and Other Platform
Disaggregation Of Revenue [Line Items]
Total revenue	44,367	26,397	87,225	45,713
Digital Experience Platform Professional Services
Disaggregation Of Revenue [Line Items]
Total revenue	7,741	9,120	14,905	13,522
Legacy - Subscription and Other Platform
Disaggregation Of Revenue [Line Items]
Total revenue	$ 10	699	62	1,310
Legacy - Professional Services
Disaggregation Of Revenue [Line Items]
Total revenue		$ 104	$ 25	$ 521

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Revenue - Additional Information (Details1) - Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date: 2021-07-01 $ in Millions	Jun. 30, 2021 USD ($)
Disaggregation Of Revenue [Line Items]
Remaining performance obligation	$ 155.4
Remaining performance obligation percentage	80.00%
Revenue remaining performance obligation, expected timing of satisfaction period	12 months
Billed Consideration
Disaggregation Of Revenue [Line Items]
Remaining performance obligation	$ 95.1
Unbilled Consideration
Disaggregation Of Revenue [Line Items]
Remaining performance obligation	$ 60.3

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Marketable Securities - Summary of Marketable Securities (Details) - USD ($) $ in Thousands	Jun. 30, 2021	Dec. 31, 2020
Marketable Securities [Line Items]
Total marketable securities, Amortized Cost	$ 44,649	$ 3,000
Total marketable securities, Gross Unrealized Gains	1
Total marketable securities, Gross Unrealized Losses	(19)
Total marketable securities, Fair Value	44,631	3,000
US Treasury Securities
Marketable Securities [Line Items]
Total marketable securities, Amortized Cost	21,078
Total marketable securities, Gross Unrealized Gains	1
Total marketable securities, Gross Unrealized Losses	(5)
Total marketable securities, Fair Value	21,074
Certificates of Deposit
Marketable Securities [Line Items]
Total marketable securities, Amortized Cost	945	3,000
Total marketable securities, Fair Value	945	$ 3,000
Corporate Debt Securities
Marketable Securities [Line Items]
Total marketable securities, Amortized Cost	15,281
Total marketable securities, Gross Unrealized Losses	(9)
Total marketable securities, Fair Value	15,272
Commercial Papers
Marketable Securities [Line Items]
Total marketable securities, Amortized Cost	3,245
Total marketable securities, Fair Value	3,245
Asset-backed Securities
Marketable Securities [Line Items]
Total marketable securities, Amortized Cost	4,100
Total marketable securities, Gross Unrealized Losses	(5)
Total marketable securities, Fair Value	$ 4,095

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Marketable Securities - Additional Information (Details) - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2021	Jun. 30, 2020	Jun. 30, 2021	Jun. 30, 2020	Dec. 31, 2020
Marketable Securities (Available For Sale) [Line Items]
Marketable securities in a continuous loss position for 12 months or more	$ 0		$ 0		$ 0
Reclassification out of Accumulated Other Comprehensive Income (Loss)
Marketable Securities (Available For Sale) [Line Items]
Realized gains (losses) from marketable securities	$ 0	$ 0	$ 0	$ 0

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Marketable Securities - Summary of Remaining Contractual Maturities of Marketable Securities (Details) - USD ($) $ in Thousands	Jun. 30, 2021	Dec. 31, 2020
Marketable Securities (Available For Sale) Maturities [Abstract]
One year or less	$ 12,371
Over one year through five years	32,260
Total marketable securities	$ 44,631	$ 3,000

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Fair Value Measurements - Summary of Financial Instruments Recorded at Fair Value on Recurring Basis (Details) - USD ($) $ in Thousands	Jun. 30, 2021	Dec. 31, 2020
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items]
Marketable Securities	$ 44,631	$ 3,000
U.S. Treasury Securities
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items]
Marketable Securities	21,074
Certificates of Deposit
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items]
Marketable Securities	945	3,000
Corporate Debt Securities
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items]
Marketable Securities	15,272
Commercial Papers
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items]
Marketable Securities	3,245
Asset-backed Securities
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items]
Marketable Securities	4,095
Fair Value Measurements Recurring
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items]
Total cash equivalents and marketable securities	369,684	5,027
Fair Value Measurements Recurring | Level 1
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items]
Total cash equivalents and marketable securities	325,053	5,027
Fair Value Measurements Recurring | Level 2
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items]
Total cash equivalents and marketable securities	44,631
Fair Value Measurements Recurring | Money Market Funds
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items]
Money market funds, fair value	325,053	2,027
Fair Value Measurements Recurring | Money Market Funds | Level 1
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items]
Money market funds, fair value	325,053	2,027
Fair Value Measurements Recurring | U.S. Treasury Securities
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items]
Marketable Securities	21,074
Fair Value Measurements Recurring | U.S. Treasury Securities | Level 2
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items]
Marketable Securities	21,074
Fair Value Measurements Recurring | Certificates of Deposit
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items]
Marketable Securities	945	3,000
Fair Value Measurements Recurring | Certificates of Deposit | Level 1
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items]
Marketable Securities		$ 3,000
Fair Value Measurements Recurring | Certificates of Deposit | Level 2
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items]
Marketable Securities	945
Fair Value Measurements Recurring | Corporate Debt Securities
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items]
Marketable Securities	15,272
Fair Value Measurements Recurring | Corporate Debt Securities | Level 2
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items]
Marketable Securities	15,272
Fair Value Measurements Recurring | Commercial Papers
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items]
Marketable Securities	3,245
Fair Value Measurements Recurring | Commercial Papers | Level 2
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items]
Marketable Securities	3,245
Fair Value Measurements Recurring | Asset-backed Securities
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items]
Marketable Securities	4,095
Fair Value Measurements Recurring | Asset-backed Securities | Level 2
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items]
Marketable Securities	$ 4,095

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Balance Sheets Components - Summary of Prepaid Expenses and Other Current Assets (Details) - USD ($) $ in Thousands	Jun. 30, 2021	Dec. 31, 2020
Prepaid Expense And Other Assets Current [Abstract]
Deferred offering costs		$ 3,220
Prepaid expenses	$ 7,822	2,848
Other receivables	2,802	873
Other	640	138
Prepaid expenses and other current assets	$ 11,264	$ 7,079

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Balance Sheets Components - Summary of Property and Equipment, Net (Details) - USD ($) $ in Thousands	Jun. 30, 2021	Dec. 31, 2020
Property Plant And Equipment [Line Items]
Property and equipment, gross	$ 31,954	$ 28,991
Less: Accumulated depreciation and amortization	(22,179)	(19,940)
Property and equipment, net	9,775	9,051
Computer, Equipment and Software
Property Plant And Equipment [Line Items]
Property and equipment, gross	27,152	24,175
Furniture and Fixtures
Property Plant And Equipment [Line Items]
Property and equipment, gross	1,092	1,108
Leasehold Improvements
Property Plant And Equipment [Line Items]
Property and equipment, gross	$ 3,710	$ 3,708

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Balance Sheets Components - Summary of Property and Equipment, Net (Parenthetical) (Details) - USD ($) $ in Thousands	Jun. 30, 2021	Dec. 31, 2020
Property Plant And Equipment [Line Items]
Property and equipment, gross	$ 31,954	$ 28,991
Accumulated depreciation and amortization	22,179	19,940
Computer Equipment and Software Recorded Under Capital Lease
Property Plant And Equipment [Line Items]
Property and equipment, gross	7,100	6,900
Assets Recorded Under Capital Lease
Property Plant And Equipment [Line Items]
Accumulated depreciation and amortization	$ 2,500	$ 2,200

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Balance Sheets Components - Additional Information (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2021	Jun. 30, 2020	Jun. 30, 2021	Jun. 30, 2020
Property Plant And Equipment [Abstract]
Depreciation and amortization	$ 1,100	$ 700	$ 2,294	$ 1,189

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Balance Sheets Components - Schedule of Property and Equipment, Net of Depreciation and Amortization, by Geographic Region (Details) - USD ($) $ in Thousands	Jun. 30, 2021	Dec. 31, 2020
Property Plant And Equipment [Line Items]
Total property and equipment, net	$ 9,775	$ 9,051
United States
Property Plant And Equipment [Line Items]
Total property and equipment, net	9,404	8,698
EMEA
Property Plant And Equipment [Line Items]
Total property and equipment, net	308	308
Other
Property Plant And Equipment [Line Items]
Total property and equipment, net	$ 63	$ 45

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Balance Sheets Components - Summary of Accrued Liabilities (Details) - USD ($) $ in Thousands	Jun. 30, 2021	Dec. 31, 2020
Accrued Liabilities Current [Abstract]
Accrued bonus	$ 2,717	$ 2,785
Accrued vacation	3,345	2,724
Accrued commissions	1,873	3,149
Accrued ESPP	1,719
Sales and other tax liabilities	658	1,086
Other	9,243	7,695
Accrued liabilities	$ 19,555	$ 17,439

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Balance Sheets Components - Summary of Other Long-Term Liabilities (Details) - USD ($) $ in Thousands	Jun. 30, 2021	Dec. 31, 2020
Other Liabilities Noncurrent [Abstract]
Deferred rent liabilities	$ 2,317	$ 2,543
Deferred revenue	1,193	1,152
Other	349	327
Other long-term liabilities	$ 3,859	$ 4,022

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Debt - Summary of Debt (Details) - USD ($) $ in Thousands	Jun. 30, 2021	Dec. 31, 2020
Debt Instrument [Line Items]
Total debt	$ 5,625	$ 28,086
Less: Current portion	(2,362)	(2,359)
Total long-term debt	3,263	25,727
Equipment Loan Agreements
Debt Instrument [Line Items]
Total debt	701	438
Capital Leases
Debt Instrument [Line Items]
Total debt	$ 4,924	5,298
Revolving Line of Credit
Debt Instrument [Line Items]
Total debt		$ 22,350

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Debt - Additional Information (Details) - USD ($)		1 Months Ended	3 Months Ended	6 Months Ended
	Jul. 30, 2020	Jul. 31, 2020	Mar. 31, 2021	Jun. 30, 2021	Jun. 30, 2020	Dec. 31, 2020
Debt Instrument [Line Items]
Repayments of long-term debt				$ 22,478,000	$ 12,084,000
Total debt outstanding				5,625,000		$ 28,086,000
Revolving Line of Credit
Debt Instrument [Line Items]
Maximum borrowing capacity				$ 30,000,000.0
Deferred revenue trailing period				12 months
Margin on interest rate	0.50%	0.75%
Cash to be maintained per agreement				$ 5,000,000.0
Line of credit maturity date		Jul. 31, 2022
Percentage of unused facility fee to be paid quarterly		0.25%
Repayments of long-term debt			$ 22,400,000
Total debt outstanding						22,350,000
Revolving Line of Credit | Prime Rate
Debt Instrument [Line Items]
Margin on interest rate	0.50%	0.75%
Debt instrument, interest rate				3.25%	3.25%
Letter of Credit
Debt Instrument [Line Items]
Maximum borrowing capacity				$ 3,900,000
Letter of Credit | Property Lease Guarantee
Debt Instrument [Line Items]
Letters of credit outstanding, amount				1,200,000
Credit Card Sublimit
Debt Instrument [Line Items]
Maximum borrowing capacity				700,000
Unused Letter of Credit Sublimit | Financial Standby Letter of Credit
Debt Instrument [Line Items]
Maximum borrowing capacity				2,700,000
Equipment Loan Agreements
Debt Instrument [Line Items]
Total debt outstanding				$ 701,000		$ 438,000
Minimum
Debt Instrument [Line Items]
Lease expiration period				2021
Minimum | Equipment Loan Agreements
Debt Instrument [Line Items]
Debt instrument, interest rate				5.80%
Maximum
Debt Instrument [Line Items]
Lease expiration period				2024
Maximum | Equipment Loan Agreements
Debt Instrument [Line Items]
Debt instrument, interest rate				10.10%
Repayment period				36 months

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Debt - Future Payments Under Equipment Loan Agreements and Capital Lease Obligations (Details) - USD ($) $ in Thousands	Jun. 30, 2021	Dec. 31, 2020
Debt Instrument [Line Items]
Remainder of 2021	$ 1,221
2022	2,576
2023	2,005
2024	142
Total payments	5,944
Less: Amount representing interest	319
Total payments, net of interest	5,625	$ 28,086
Equipment Loans
Debt Instrument [Line Items]
Equipment Loans, remainder of 2021	120
Equipment Loans, 2022	274
Equipment Loans, 2023	236
Equipment Loans, 2024	71
Equipment Loans, Total payments	701
Equipment Loans, Total payments, net of interest	701
Capital Leases
Debt Instrument [Line Items]
Capital leases, remainder of 2021	1,101
Capital leases, 2022	2,302
Capital leases, 2023	1,769
Capital leases, 2024	71
Capital leases, Total payments	5,243
Capital leases, Less: Amount representing interest	319
Capital leases, Total payments, net of interest	$ 4,924

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Commitment and Contingencies - Additional Information (Details) - Sales and Use Tax Assessments - USD ($)	Jun. 30, 2021	Dec. 31, 2020
Loss Contingencies [Line Items]
Loss contingency, range of possible loss, portion not accrued	$ 0	$ 0
Minimum
Loss Contingencies [Line Items]
Loss contingency, estimate of possible loss	0
Maximum
Loss Contingencies [Line Items]
Loss contingency, estimate of possible loss	$ 1,800,000

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Convertible Preferred Stock, Stockholders' Equity (Deficit) and Equity Incentive Plan - Additional Information (Detail)				1 Months Ended	3 Months Ended		6 Months Ended
	Feb. 05, 2021 Vote $ / shares shares	Feb. 02, 2021 USD ($) shares	Jan. 31, 2021 shares	Jun. 30, 2014 USD ($) shares	Jun. 30, 2021 USD ($) $ / shares shares	Jun. 30, 2020 USD ($)	Jun. 30, 2021 USD ($) $ / shares shares	Jun. 30, 2020 USD ($)	Dec. 31, 2020 $ / shares shares
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Common stock, shares authorized					500,000,000		500,000,000		50,000,000
Common stock, par value | $ / shares	$ 0.0001				$ 0.0001		$ 0.0001		$ 0.0001
Number of votes per share | Vote	1
Requisite service period							4 years
Stock-based compensation expense | $					$ 4,970,000	$ 430,000	$ 9,964,000	$ 833,000
Declared cash dividends | $ / shares							$ 0
Cash dividends payment | $ / shares							$ 0
Restricted Stock Unit
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Granted, Number of Shares							455,350
Restricted Stock Unit | Executive Officer | Share-based Payment Arrangement, Employee
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Granted, Number of Shares				187,500
Grant date fair value | $				$ 500,000
Payment to receive shares of stock | $				$ 0
Requisite service period				1 year
Number of shares vested		187,500
Stock-based compensation expense | $		$ 500,000
Employee Stock Option
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Dividend yield					0.00%	0.00%	0.00%	0.00%
2021 Plan
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Common stock shares granted	8,282,313
Number of shares available for future issuance (in shares)	6,400,000
Percent of outstanding stock from Jan 1, 2022 to Jan 1, 2031, maximum	5.00%
2021 Plan | Maximum
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Term of stock options granted	10 years
2014 Plan
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Numbers of additional shares authorized from Jan 1, 2022 to Jan 1, 2031 under the plan	1,882,313
IPO
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Convertible preferred stock converted into shares of common stock	27,227,466
Redeemable preferred stock convertible to common stock conversion ratio	1
Employee Stock
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Dividend yield					0.00%		0.00%
Employee Stock | 2021 Employee Stock Purchase Plan
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Numbers of additional shares authorized from Jan 1, 2022 to Jan 1, 2031 under the plan			1,300,000
Percent of outstanding stock from Jan 1, 2022 to Jan 1, 2031, maximum			1.00%
Undesignated Preferred Stock | IPO
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Undesignated preferred stock shares authorized (in shares)	10,000,000
Undesignated referred stock par value (in dollars per share) | $ / shares | $ / shares	$ 0.0001
Convertible Class A-1 and Class A-2 Preferred Stock
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Convertible preferred stock, shares outstanding					0		0		21,683,548
Convertible Class A-1 and Class A-2 Preferred Stock | IPO
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Convertible preferred stock, shares outstanding	21,683,548
Redeemable Convertible Class B and Class B-1 Preferred Stock
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Convertible preferred stock, shares outstanding					0		0		5,543,918
Redeemable Convertible Class B and Class B-1 Preferred Stock | IPO
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Convertible preferred stock, shares outstanding	5,543,918
Common Stock
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Common stock, shares authorized	500,000,000
Common Stock | Employee Stock
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Percentage of employees earnings contribution for purchase of common stock under ESPP			20.00%
Purchase of common stock under ESPP							0
Common Stock | Employee Stock | First Date of ESPP Offering
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Percentage of purchase price of common stock to fair market value of common stock on offering or purchase date			85.00%
Common Stock | Employee Stock | Date of Purchase of ESPP Offering
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Percentage of purchase price of common stock to fair market value of common stock on offering or purchase date			85.00%
Common Stock | Employee Stock | 2021 Employee Stock Purchase Plan
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Number of shares available for future issuance (in shares)			1,300,000

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Convertible Preferred Stock, Stockholders' Equity (Deficit) and Equity Incentive Plan - Summary of Stock Options (Details) - USD ($) $ / shares in Units, $ in Thousands	6 Months Ended
	Jun. 30, 2021
Equity [Abstract]
Beginning balance, Number of Shares	11,947,731
Number of Shares, Granted	481,403
Number of Shares, Exercised	(766,072)
Number of shares, Cancelled and forfeited	(202,556)
Ending balance, Number of Shares	11,460,506
Vested and exercisable, Number of Shares	6,317,999
Beginning balance, Weighted Average Exercise Price	$ 4.85
Weighted Average Exercise Price, Granted	50.12
Weighted Average Exercise Price, Exercised	2.34
Weighted Average Exercise Price, Cancelled and forfeited	17.86
Ending Balance, Weighted Average Exercise Price	6.69
Vested and exercisable, Weighted Average Exercise Price	$ 2.62
Ending balance, Weighted Average Remaining Contractual Life	7 years
Vested and exercisable, Weighted Average Remaining Contractual Life	5 years 3 months 18 days
Aggregate Intrinsic Value, Exercised	$ 37,279
Balance as of June 30, 2021	335,859
Vested and exercisable	$ 207,698

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Convertible Preferred Stock, Stockholders' Equity (Deficit) and Equity Incentive Plan - Summary of RSU Activity Under Equity Incentive Plans and Related Information (Details) - Restricted Stock Unit	6 Months Ended
	Jun. 30, 2021 $ / shares shares
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Granted, Number of Shares | shares	455,350
Cancelled and forfeited, Number of Shares | shares	(26,800)
Unvested balance, Number of Shares | shares	428,550
Granted, Weighted-Average Grant Date Fair Value | $ / shares	$ 37.36
Cancelled and forfeited, Weighted Average Grant Date Fair Value | $ / shares	74.50
Unvested balance, Weighted-Average Grant Date Fair Value | $ / shares	$ 35.03

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Convertible Preferred Stock, Stockholders' Equity (Deficit) and Equity Incentive Plan - Schedule of Black-Scholes Assumptions Used to Value the Employee Stock Options (Detail) - Employee Stock Option	3 Months Ended		6 Months Ended
	Jun. 30, 2021	Jun. 30, 2020	Jun. 30, 2021	Jun. 30, 2020
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Expected term		6 years 3 months		6 years 3 months
Expected volatility, Minimum	54.82%		53.82%
Expected volatility, Maximum	54.98%		54.98%
Expected volatility		41.60%		41.60%
Risk-free interest rate, Minimum	0.94%	0.42%	0.62%	0.42%
Risk-free interest rate, Maximum	0.96%	0.46%	0.96%	1.70%
Dividend yield	0.00%	0.00%	0.00%	0.00%
Minimum
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Expected term	5 years 11 months 1 day		5 years 11 months 1 day
Maximum
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Expected term	6 years 10 days		6 years 25 days

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Convertible Preferred Stock, Stockholders' Equity (Deficit) and Equity Incentive Plan - Schedule of Black-Scholes Assumptions Used to Value the ESPP (Detail) - ESPP	3 Months Ended	6 Months Ended
	Jun. 30, 2021	Jun. 30, 2021
Class Of Stock [Line Items]
Expected term	4 months 17 days
Expected volatility	60.00%
Risk-free interest rate	0.06%	0.06%
Dividend yield	0.00%	0.00%
Minimum
Class Of Stock [Line Items]
Expected term		4 months 17 days
Expected volatility		60.00%
Maximum
Class Of Stock [Line Items]
Expected term		7 months 17 days
Expected volatility		61.00%

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Convertible Preferred Stock, Stockholders' Equity (Deficit) and Equity Incentive Plan - Summary of Share-based Compensation Expense by line item in the Condensed Consolidated Statements of Operations (Detail) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2021	Jun. 30, 2020	Jun. 30, 2021	Jun. 30, 2020
Class Of Stock [Line Items]
Stock-based compensation expense	$ 4,970	$ 430	$ 9,964	$ 833
Cost of Revenue
Class Of Stock [Line Items]
Stock-based compensation expense	423	29	722	56
Cost of Revenue | Subscription and Other Platform
Class Of Stock [Line Items]
Stock-based compensation expense	346	24	583	47
Cost of Revenue | Professional Services
Class Of Stock [Line Items]
Stock-based compensation expense	77	5	139	9
Sales and Marketing
Class Of Stock [Line Items]
Stock-based compensation expense	1,571	147	3,263	288
Research and Development
Class Of Stock [Line Items]
Stock-based compensation expense	862	62	1,644	119
General and Administrative
Class Of Stock [Line Items]
Stock-based compensation expense	$ 2,114	$ 192	$ 4,335	$ 370

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Convertible Preferred Stock, Stockholders' Equity (Deficit) and Equity Incentive Plan - Summary of Unrecognized Stock-based Compensation Expense (Details) $ in Thousands	6 Months Ended
	Jun. 30, 2021 USD ($)
Stock Option
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Unrecognized stock-based compensation expense	$ 58,652
Weighted-average amortization period	3 years 4 months 6 days
Restricted Stock Unit
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Unrecognized stock-based compensation expense	$ 14,566
Weighted-average amortization period	3 years 8 months 4 days
ESPP
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Unrecognized stock-based compensation expense	$ 402
Weighted-average amortization period	4 months 17 days

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Income Taxes - Schedule of Income Tax Expense (Benefit) (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2021	Jun. 30, 2020	Jun. 30, 2021	Jun. 30, 2020
Income Tax Disclosure [Abstract]
Provision for (benefit from) income taxes	$ (282)	$ 37	$ (33)	$ 92

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Income Taxes - Additional Information (Details) - USD ($) $ in Millions	3 Months Ended	6 Months Ended
	Jun. 30, 2021	Jun. 30, 2021
Income Tax Disclosure [Abstract]
Increase in benefit from income taxes	$ (0.3)	$ (0.1)

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Net Income (Loss) Per Share Attributable to Common Stockholders - Schedule of Computation of Basic and Diluted Net Loss Per Share (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2021	Jun. 30, 2020	Jun. 30, 2021	Jun. 30, 2020
Basic net income (loss) per share
Net income (loss)	$ (2,517)	$ 6,702	$ (5,347)	$ 4,643
Cumulative preferred dividends allocated to preferred stockholders		(1,427)	(558)	(2,752)
Net income (loss) attributable to common stockholders	(2,517)	5,275	(5,905)	1,891
Income available to participating securities		(3,889)		(1,406)
Net income (loss) available to common stockholders	$ (2,517)	$ 1,386	$ (5,905)	$ 485
Net income (loss) per share of common stock, basic	$ (0.05)	$ 0.14	$ (0.15)	$ 0.05
Weighted-average common stock outstanding, basic	46,570,195	9,707,995	39,664,436	9,419,113
Diluted net income (loss) per share
Net income (loss)	$ (2,517)	$ 6,702	$ (5,347)	$ 4,643
Cumulative preferred dividends allocated to preferred stockholders		(1,427)	(558)	(2,752)
Net income (loss) attributable to common stockholders	(2,517)	5,275	(5,905)	1,891
Reallocation of earnings to participating securities considering potentially dilutive securities		(3,826)		(1,383)
Net income (loss) available to common stockholders	$ (2,517)	$ 1,449	$ (5,905)	$ 508
Net income (loss) per share of common stock, diluted	$ (0.05)	$ 0.14	$ (0.15)	$ 0.05
Weighted-average common stock outstanding, basic	46,570,195	9,707,995	39,664,436	9,419,113
Weighted average dilutive effect of stock options and restricted stock		607,299		594,678
Weighted-average common stock outstanding, diluted	46,570,195	10,315,294	39,664,436	10,013,791

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Net Income (Loss) Per Share Attributable to Common Stockholders - Schedule of Potential Shares of Common Stock Excluded from Computation of Diluted Net Loss Per Share (Details) - shares	3 Months Ended		6 Months Ended
	Jun. 30, 2021	Jun. 30, 2020	Jun. 30, 2021	Jun. 30, 2020
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items]
Total antidilutive securities	11,977,340	10,722,124	11,977,340	10,371,934
Convertible Preferred Stock (On An If-converted Basis)
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items]
Total antidilutive securities		5,543,918		5,543,918
Stock Option
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items]
Total antidilutive securities	11,460,506	4,990,706	11,460,506	4,640,516
Restricted Stock Unit
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items]
Total antidilutive securities	428,550	187,500	428,550	187,500
ESPP
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items]
Total antidilutive securities	88,284		88,284

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Related Party Transactions - Additional Information (Details) - Chief Executive Officer of Third-party Vendor - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2021	Jun. 30, 2020	Jun. 30, 2021	Jun. 30, 2020	Dec. 31, 2020
Accounts Payable and Accrued Liabilities
Related Party Transaction [Line Items]
Related party transactions, amounts owed	$ 0.2		$ 0.2		$ 0.2
Research and Development
Related Party Transaction [Line Items]
Engineering and quality assurance costs	$ 0.6	$ 0.4	$ 1.1	$ 0.8