QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
(State or Other Jurisdiction of Incorporation or Organization) | (I.R.S. Employer Identification No.) |
Title of Each Class | Trading Symbol(s) | Name of Each Exchange on Which Registered | ||||||||||||
☑ | Accelerated filer | ☐ | |||||||||
Non-accelerated filer | ☐ | Smaller reporting company | |||||||||
Emerging growth company |
Page | ||||||||
Part I. | ||||||||
Item 1. | ||||||||
Item 2. | ||||||||
Item 3. | ||||||||
Item 4. | ||||||||
Part II. | ||||||||
Item 1. | ||||||||
Item 1A. | ||||||||
Item 2. | ||||||||
Item 3. | ||||||||
Item 4. | ||||||||
Item 5. | ||||||||
Item 6. | ||||||||
March 31, 2024 | December 31, 2023 | ||||||||||
Assets | |||||||||||
Current assets: | |||||||||||
Cash and cash equivalents | $ | $ | |||||||||
Short-term marketable securities | |||||||||||
Accounts receivable (net of allowance for doubtful accounts of $ | |||||||||||
Prepaid expenses and other current assets | |||||||||||
Total current assets | |||||||||||
Property, equipment and software, net | |||||||||||
Operating lease right-of-use assets | |||||||||||
Goodwill | |||||||||||
Intangibles, net | |||||||||||
Other non-current assets | |||||||||||
Total assets | $ | $ | |||||||||
Liabilities and Stockholders’ Equity | |||||||||||
Current liabilities: | |||||||||||
Accounts payable and accrued liabilities | $ | $ | |||||||||
Operating lease liabilities — current | |||||||||||
Deferred revenue | |||||||||||
Total current liabilities | |||||||||||
Operating lease liabilities — long-term | |||||||||||
Other long-term liabilities | |||||||||||
Total liabilities | |||||||||||
Stockholders’ equity: | |||||||||||
Common stock, $ | |||||||||||
Additional paid-in capital | |||||||||||
Treasury stock | ( | ( | |||||||||
Accumulated other comprehensive loss | ( | ( | |||||||||
Accumulated deficit | ( | ( | |||||||||
Total stockholders’ equity | |||||||||||
Total liabilities and stockholders’ equity | $ | $ |
Three Months Ended March 31, | |||||||||||
2024 | 2023 | ||||||||||
Net revenue | $ | $ | |||||||||
Costs and expenses: | |||||||||||
Cost of revenue (exclusive of depreciation and amortization shown separately below) | |||||||||||
Sales and marketing | |||||||||||
Product development | |||||||||||
General and administrative | |||||||||||
Depreciation and amortization | |||||||||||
Total costs and expenses | |||||||||||
Income (loss) from operations | ( | ||||||||||
Other income, net | |||||||||||
Income (loss) before income taxes | ( | ||||||||||
Provision for (benefit from) income taxes | ( | ||||||||||
Net income (loss) attributable to common stockholders | $ | $ | ( | ||||||||
Net income (loss) per share attributable to common stockholders | |||||||||||
Basic | $ | $ | ( | ||||||||
Diluted | $ | $ | ( | ||||||||
Weighted-average shares used to compute net income (loss) per share attributable to common stockholders | |||||||||||
Basic | |||||||||||
Diluted |
Three Months Ended March 31, | |||||||||||
2024 | 2023 | ||||||||||
Net income (loss) attributable to common stockholders | $ | $ | ( | ||||||||
Other comprehensive (loss) income: | |||||||||||
Foreign currency translation adjustments, net of tax | ( | ||||||||||
Unrealized (loss) gain on available-for-sale debt securities, net of tax | ( | ||||||||||
Other comprehensive (loss) income | ( | ||||||||||
Comprehensive income | $ | $ |
Common Stock | Additional Paid-In Capital | Treasury Stock | Accumulated Other Comprehensive Loss | Accumulated Deficit | Total Stockholders’ Equity | ||||||||||||||||||||||||||||||||||||
Shares | Amount | ||||||||||||||||||||||||||||||||||||||||
Balance as of December 31, 2022 | $ | $ | $ | $ | ( | $ | ( | $ | |||||||||||||||||||||||||||||||||
Issuance of common stock upon exercises of employee stock options | — | — | — | — | |||||||||||||||||||||||||||||||||||||
Issuance of common stock upon vesting of restricted stock units (“RSUs”), net | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||
Issuance of common stock for employee stock purchase plan | — | — | — | — | |||||||||||||||||||||||||||||||||||||
Stock-based compensation (inclusive of capitalized stock-based compensation) | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||
Taxes withheld related to net share settlement of equity awards | — | — | ( | — | — | — | ( | ||||||||||||||||||||||||||||||||||
Repurchases of common stock | — | — | — | ( | — | — | ( | ||||||||||||||||||||||||||||||||||
Retirement of common stock | ( | — | — | — | ( | ||||||||||||||||||||||||||||||||||||
Other comprehensive income | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||
Net loss | — | — | — | — | — | ( | ( | ||||||||||||||||||||||||||||||||||
Balance as of March 31, 2023 | $ | $ | $ | ( | $ | ( | $ | ( | $ | ||||||||||||||||||||||||||||||||
Balance as of December 31, 2023 | $ | $ | $ | ( | $ | ( | $ | ( | $ | ||||||||||||||||||||||||||||||||
Issuance of common stock upon exercises of employee stock options | — | — | — | — | |||||||||||||||||||||||||||||||||||||
Issuance of common stock upon vesting of RSUs, net | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||
Stock-based compensation (inclusive of capitalized stock-based compensation) | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||
Taxes withheld related to net share settlement of equity awards | — | — | ( | — | — | — | ( | ||||||||||||||||||||||||||||||||||
Repurchases of common stock | — | — | — | ( | — | — | ( | ||||||||||||||||||||||||||||||||||
Retirement of common stock | ( | — | — | — | ( | ||||||||||||||||||||||||||||||||||||
Other comprehensive loss | — | — | — | — | ( | — | ( | ||||||||||||||||||||||||||||||||||
Net income | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||
Balance as of March 31, 2024 | $ | $ | $ | ( | $ | ( | $ | ( | $ |
Three Months Ended March 31, | |||||||||||
2024 | 2023 | ||||||||||
Operating Activities | |||||||||||
Net income (loss) | $ | $ | ( | ||||||||
Adjustments to reconcile net income (loss) to net cash provided by operating activities: | |||||||||||
Depreciation and amortization | |||||||||||
Provision for doubtful accounts | |||||||||||
Stock-based compensation | |||||||||||
Amortization of right-of-use assets | |||||||||||
Deferred income taxes | ( | ( | |||||||||
Amortization of deferred contract cost | |||||||||||
Asset impairment | |||||||||||
Other adjustments, net | |||||||||||
Changes in operating assets and liabilities: | |||||||||||
Accounts receivable | ( | ( | |||||||||
Prepaid expenses and other assets | ( | ||||||||||
Operating lease liabilities | ( | ( | |||||||||
Accounts payable, accrued liabilities and other liabilities | |||||||||||
Net cash provided by operating activities | |||||||||||
Investing Activities | |||||||||||
Purchases of marketable securities — available-for-sale | ( | ( | |||||||||
Sales and maturities of marketable securities — available-for-sale | |||||||||||
Purchases of other investments | ( | ||||||||||
Purchases of property, equipment and software | ( | ( | |||||||||
Other investing activities | |||||||||||
Net cash used in investing activities | ( | ( | |||||||||
Financing Activities | |||||||||||
Proceeds from issuance of common stock for employee stock-based plans | |||||||||||
Taxes paid related to the net share settlement of equity awards | ( | ( | |||||||||
Repurchases of common stock | ( | ( | |||||||||
Net cash used in financing activities | ( | ( | |||||||||
Effect of exchange rate changes on cash, cash equivalents and restricted cash | ( | ||||||||||
Change in cash, cash equivalents and restricted cash | ( | ( | |||||||||
Cash, cash equivalents and restricted cash — Beginning of period | |||||||||||
Cash, cash equivalents and restricted cash — End of period | $ | $ | |||||||||
Supplemental Disclosures of Other Cash Flow Information | |||||||||||
Cash paid (refund received) for income taxes, net | $ | $ | ( | ||||||||
Supplemental Disclosures of Noncash Investing and Financing Activities | |||||||||||
Purchases of property, equipment and software recorded in accounts payable and accrued liabilities | $ | $ | |||||||||
Repurchases of common stock recorded in accounts payable and accrued liabilities | $ | $ | |||||||||
Excise tax accrued on net stock repurchases | $ | $ |
March 31, 2024 | December 31, 2023 | ||||||||||
Cash | $ | $ | |||||||||
Cash equivalents | |||||||||||
Total cash and cash equivalents | |||||||||||
Restricted cash | |||||||||||
Total cash, cash equivalents and restricted cash | $ | $ |
March 31, 2024 | |||||||||||||||||||||||
Amortized Cost | Gross Unrealized Gains | Gross Unrealized Losses | Fair Value | ||||||||||||||||||||
Short-term marketable securities: | |||||||||||||||||||||||
Corporate bonds | $ | $ | $ | ( | $ | ||||||||||||||||||
Agency bonds | ( | ||||||||||||||||||||||
U.S. government securities | ( | ||||||||||||||||||||||
Total short-term marketable securities | $ | $ | $ | ( | $ | ||||||||||||||||||
December 31, 2023 | |||||||||||||||||||||||
Amortized Cost | Gross Unrealized Gains | Gross Unrealized Losses | Fair Value | ||||||||||||||||||||
Cash equivalents: | |||||||||||||||||||||||
U.S. government securities | $ | $ | $ | $ | |||||||||||||||||||
Total cash equivalents | |||||||||||||||||||||||
Short-term marketable securities: | |||||||||||||||||||||||
Certificates of deposit | |||||||||||||||||||||||
Commercial paper | |||||||||||||||||||||||
Corporate bonds | ( | ||||||||||||||||||||||
Agency bonds | ( | ||||||||||||||||||||||
U.S. government securities | ( | ||||||||||||||||||||||
Total short-term marketable securities | ( | ||||||||||||||||||||||
Total | $ | $ | $ | ( | $ |
March 31, 2024 | |||||||||||||||||||||||||||||||||||
Less Than 12 Months | 12 Months or Greater | Total | |||||||||||||||||||||||||||||||||
Fair Value | Unrealized Loss | Fair Value | Unrealized Loss | Fair Value | Unrealized Loss | ||||||||||||||||||||||||||||||
Corporate bonds | $ | $ | ( | $ | $ | ( | $ | $ | ( | ||||||||||||||||||||||||||
Agency bonds | ( | ( | ( | ||||||||||||||||||||||||||||||||
U.S. government securities | ( | ( | |||||||||||||||||||||||||||||||||
Total | $ | $ | ( | $ | $ | ( | $ | $ | ( | ||||||||||||||||||||||||||
December 31, 2023 | |||||||||||||||||||||||||||||||||||
Less Than 12 Months | 12 Months or Greater | Total | |||||||||||||||||||||||||||||||||
Fair Value | Unrealized Loss | Fair Value | Unrealized Loss | Fair Value | Unrealized Loss | ||||||||||||||||||||||||||||||
Corporate bonds | $ | $ | ( | $ | $ | ( | $ | $ | ( | ||||||||||||||||||||||||||
Agency bonds | ( | ( | |||||||||||||||||||||||||||||||||
U.S. government securities | ( | ( | ( | ||||||||||||||||||||||||||||||||
Total | $ | $ | ( | $ | $ | ( | $ | $ | ( |
Amortized Cost | Fair Value | ||||||||||
Due in one year or less | $ | $ | |||||||||
Due in one to five years | |||||||||||
Total | $ | $ |
March 31, 2024 | December 31, 2023 | ||||||||||||||||||||||||||||||||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | Level 1 | Level 2 | Level 3 | Total | ||||||||||||||||||||||||||||||||||||||||
Cash equivalents: | |||||||||||||||||||||||||||||||||||||||||||||||
Money market funds | $ | $ | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||||||||||||
U.S. government securities | |||||||||||||||||||||||||||||||||||||||||||||||
Marketable securities: | |||||||||||||||||||||||||||||||||||||||||||||||
Certificates of deposit | |||||||||||||||||||||||||||||||||||||||||||||||
Commercial paper | |||||||||||||||||||||||||||||||||||||||||||||||
Corporate bonds | |||||||||||||||||||||||||||||||||||||||||||||||
Agency bonds | |||||||||||||||||||||||||||||||||||||||||||||||
U.S. government securities | |||||||||||||||||||||||||||||||||||||||||||||||
Other investments: | |||||||||||||||||||||||||||||||||||||||||||||||
Certificates of deposit | |||||||||||||||||||||||||||||||||||||||||||||||
Total cash equivalents, marketable securities and other investments | $ | $ | $ | $ | $ | $ | $ | $ |
March 31, 2024 | December 31, 2023 | ||||||||||
Prepaid expenses | $ | $ | |||||||||
Certificates of deposit | |||||||||||
Other current assets | |||||||||||
Total prepaid expenses and other current assets | $ | $ |
March 31, 2024 | December 31, 2023 | ||||||||||
Capitalized website and internal-use software development costs | $ | $ | |||||||||
Leasehold improvements | |||||||||||
Computer equipment | |||||||||||
Furniture and fixtures | |||||||||||
Telecommunication | |||||||||||
Software | |||||||||||
Total | |||||||||||
Less accumulated depreciation and amortization | ( | ( | |||||||||
Property, equipment and software, net | $ | $ |
Balance as of December 31, 2023 | $ | ||||
Effect of currency translation | ( | ||||
Balance as of March 31, 2024 | $ |
March 31, 2024 | |||||||||||||||||||||||
Gross Carrying Amount | Accumulated Amortization | Net Carrying Amount | Weighted Average Remaining Life | ||||||||||||||||||||
Business relationships | $ | $ | ( | $ | |||||||||||||||||||
Licensing agreements | ( | ||||||||||||||||||||||
Total | $ | $ | ( | $ |
December 31, 2023 | |||||||||||||||||||||||
Gross Carrying Amount | Accumulated Amortization | Net Carrying Amount | Weighted Average Remaining Life | ||||||||||||||||||||
Business relationships | $ | $ | ( | $ | |||||||||||||||||||
Licensing agreements | ( | ||||||||||||||||||||||
Total | $ | $ | ( | $ |
Remainder of 2024 | $ | |||||||
2025 | ||||||||
2026 | ||||||||
2027 | ||||||||
2028 | ||||||||
2029 | ||||||||
Thereafter | ||||||||
Total amortization | $ |
Three Months Ended March 31, | |||||||||||
2024 | 2023 | ||||||||||
Operating lease cost | $ | $ | |||||||||
Short-term lease cost (12 months or less) | |||||||||||
Sublease income | ( | ( | |||||||||
Total lease cost, net | $ | $ |
Three Months Ended March 31, | |||||||||||
2024 | 2023 | ||||||||||
Cash paid for amounts included in the measurement of lease liabilities: | |||||||||||
Operating cash flows from operating leases | $ | $ |
Remainder of 2024 | $ | ||||
2025 | |||||
2026 | |||||
2027 | |||||
2028 | |||||
2029 | |||||
Thereafter | |||||
Total minimum lease payments | |||||
Less imputed interest | ( | ||||
Present value of lease liabilities | $ |
March 31, 2024 | December 31, 2023 | ||||||||||
Weighted-average remaining lease term (years) — operating leases | |||||||||||
Weighted-average discount rate — operating leases | % | % |
March 31, 2024 | December 31, 2023 | ||||||||||
Deferred tax assets | $ | $ | |||||||||
Deferred contract costs | |||||||||||
Other non-current assets | |||||||||||
Total other non-current assets | $ | $ |
Three Months Ended March 31, | |||||||||||
2024 | 2023 | ||||||||||
Balance, beginning of period | $ | $ | |||||||||
Add: provision for doubtful accounts | |||||||||||
Less: write-offs, net of recoveries | ( | ( | |||||||||
Balance, end of period | $ | $ |
Three Months Ended March 31, 2024 | |||||
Balance, beginning of period | $ | ||||
Less: recognition of deferred revenue from beginning balance | ( | ||||
Add: net increase in current period contract liabilities | |||||
Balance, end of period | $ |
March 31, 2024 | December 31, 2023 | ||||||||||
Accounts payable | $ | $ | |||||||||
Employee-related liabilities | |||||||||||
Accrued legal settlements | |||||||||||
Other accrued liabilities | |||||||||||
Total accounts payable and accrued liabilities | $ | $ |
March 31, 2024 | December 31, 2023 | ||||||||||||||||||||||
Shares Authorized | Shares Issued | Shares Authorized | Shares Issued | ||||||||||||||||||||
Common stock, $ | |||||||||||||||||||||||
Undesignated preferred stock |
Number of Shares (in thousands) | Weighted-Average Exercise Price | Weighted-Average Remaining Contractual Term (in years) | Aggregate Intrinsic Value (in thousands) | ||||||||||||||||||||
Outstanding at December 31, 2023 | $ | $ | |||||||||||||||||||||
Exercised | ( | ||||||||||||||||||||||
Canceled | ( | ||||||||||||||||||||||
Outstanding at March 31, 2024 | $ | $ | |||||||||||||||||||||
Options vested and exercisable at March 31, 2024 | $ | $ |
Number of Shares | Weighted-Average Grant Date Fair Value | ||||||||||
Nonvested at December 31, 2023 | $ | ||||||||||
Granted | |||||||||||
Vested(1) | ( | ||||||||||
Canceled | ( | ||||||||||
Nonvested at March 31, 2024(2) | $ |
Three Months Ended March 31, | |||||||||||
2024 | 2023 | ||||||||||
Cost of revenue | $ | $ | |||||||||
Sales and marketing | |||||||||||
Product development | |||||||||||
General and administrative | |||||||||||
Total stock-based compensation recorded to income (loss) before income taxes | |||||||||||
Benefit from income taxes | ( | ( | |||||||||
Total stock-based compensation recorded to net income (loss) attributable to common stockholders | $ | $ |
Three Months Ended March 31, | |||||||||||
2024 | 2023 | ||||||||||
Interest income, net | $ | $ | |||||||||
Transaction loss on foreign exchange, net | ( | ( | |||||||||
Other non-operating income, net | |||||||||||
Other income, net | $ | $ |
Three Months Ended March 31, | |||||||||||
2024 | 2023 | ||||||||||
Basic net income (loss) per share: | |||||||||||
Net income (loss) attributable to common stockholders | $ | $ | ( | ||||||||
Shares used in computation: | |||||||||||
Weighted-average common shares outstanding | |||||||||||
Basic net income (loss) per share attributable to common stockholders: | $ | $ | ( |
Three Months Ended March 31, | |||||||||||
2024 | 2023 | ||||||||||
Diluted net income (loss) per share: | |||||||||||
Net income (loss) attributable to common stockholders | $ | $ | ( | ||||||||
Shares used in computation: | |||||||||||
Weighted-average common shares outstanding | |||||||||||
Stock options | |||||||||||
RSUs | |||||||||||
ESPP | |||||||||||
Number of shares used in diluted calculation | |||||||||||
Diluted net income (loss) per share attributable to common stockholders: | $ | $ | ( |
Three Months Ended March 31, | |||||||||||
2024 | 2023 | ||||||||||
Stock options | |||||||||||
RSUs | |||||||||||
ESPP |
Three Months Ended March 31, | |||||||||||
2024 | 2023 | ||||||||||
Net revenue by product: | |||||||||||
Advertising revenue by category: | |||||||||||
Services | $ | $ | |||||||||
Restaurants, Retail & Other | |||||||||||
Advertising | |||||||||||
Other(1) | |||||||||||
Total net revenue | $ | $ |
Three Months Ended March 31, | |||||||||||
2024 | 2023 | ||||||||||
United States | $ | $ | |||||||||
All other countries | |||||||||||
Total net revenue | $ | $ |
March 31, 2024 | December 31, 2023 | ||||||||||
United States | $ | $ | |||||||||
All other countries | |||||||||||
Total long-lived assets | $ | $ |
Three Months Ended March 31, | |||||||||||
2024 | 2023 | ||||||||||
Ad Clicks | 8% | 1% | |||||||||
Average CPC | (1)% | 14% |
Three Months Ended March 31, | % Change | ||||||||||||||||
2024 | 2023 | ||||||||||||||||
Services | $ | 203,288 | $ | 183,520 | 11% | ||||||||||||
Restaurants, Retail & Other | 114,350 | 113,623 | 1% | ||||||||||||||
Total Advertising Revenue | $ | 317,638 | $ | 297,143 | 7% | ||||||||||||
Three Months Ended March 31, | % Change | ||||||||||||||||
2024 | 2023 | ||||||||||||||||
Services | 252 | 238 | 6% | ||||||||||||||
Restaurants, Retail & Other | 278 | 316 | (12)% | ||||||||||||||
Total Paying Advertising Locations | 530 | 554 | (4)% |
Three Months Ended March 31, | |||||||||||||||||||||||
2024 | 2023 | $ Change | % Change(1) | ||||||||||||||||||||
Condensed Consolidated Statements of Operations Data: | |||||||||||||||||||||||
Net revenue by product: | |||||||||||||||||||||||
Advertising revenue by category: | |||||||||||||||||||||||
Services | $ | 203,288 | $ | 183,520 | $ | 19,768 | 11 | % | |||||||||||||||
Restaurants, Retail & Other | 114,350 | 113,623 | 727 | 1 | % | ||||||||||||||||||
Advertising | 317,638 | 297,143 | 20,495 | 7 | % | ||||||||||||||||||
Other(2) | 15,114 | 15,295 | (181) | (1) | % | ||||||||||||||||||
Total net revenue | 332,752 | 312,438 | 20,314 | 7 | % | ||||||||||||||||||
Costs and expenses: | |||||||||||||||||||||||
Cost of revenue (exclusive of depreciation and amortization shown separately below) | 27,355 | 26,059 | 1,296 | 5 | % | ||||||||||||||||||
Sales and marketing | 147,791 | 147,455 | 336 | — | % | ||||||||||||||||||
Product development | 91,227 | 88,197 | 3,030 | 3 | % | ||||||||||||||||||
General and administrative | 45,232 | 46,509 | (1,277) | (3) | % | ||||||||||||||||||
Depreciation and amortization | 9,930 | 10,805 | (875) | (8) | % | ||||||||||||||||||
Total costs and expenses | 321,535 | 319,025 | 2,510 | 1 | % | ||||||||||||||||||
Income (loss) from operations | 11,217 | (6,587) | 17,804 | (270) | % | ||||||||||||||||||
Other income, net | 7,724 | 5,212 | 2,512 | 48 | % | ||||||||||||||||||
Income (loss) before income taxes | 18,941 | (1,375) | 20,316 | NM(3) | |||||||||||||||||||
Provision for (benefit from) income taxes | 4,787 | (197) | 4,984 | NM(3) | |||||||||||||||||||
Net income (loss) attributable to common stockholders | $ | 14,154 | $ | (1,178) | $ | 15,332 | NM(3) |
Three Months Ended March 31, | |||||||||||
2024 | 2023 | ||||||||||
Reconciliation of Net Income (Loss) to Adjusted EBITDA: | |||||||||||
Net income (loss) | $ | 14,154 | $ | (1,178) | |||||||
Provision for (benefit from) income taxes | 4,787 | (197) | |||||||||
Other income, net | (7,724) | (5,212) | |||||||||
Depreciation and amortization | 9,930 | 10,805 | |||||||||
Stock-based compensation | 42,710 | 46,257 | |||||||||
Asset impairment(1) | — | 3,555 | |||||||||
Fees related to shareholder activism(1) | 599 | — | |||||||||
Adjusted EBITDA | $ | 64,456 | $ | 54,030 | |||||||
Net revenue | $ | 332,752 | $ | 312,438 | |||||||
Net income (loss) margin | 4 | % | — | % | |||||||
Adjusted EBITDA margin | 19 | % | 17 | % |
Three Months Ended March 31, | |||||||||||
2024 | 2023 | ||||||||||
Reconciliation of Net Cash Provided by Operating Activities to Free Cash Flow: | |||||||||||
Net cash provided by operating activities | $ | 72,855 | $ | 74,244 | |||||||
Purchases of property, equipment and software | (6,987) | (7,518) | |||||||||
Free cash flow | $ | 65,868 | $ | 66,726 | |||||||
Net cash used in investing activities | $ | (6,402) | $ | (37,280) | |||||||
Net cash used in financing activities | $ | (83,834) | $ | (54,706) |
Three Months Ended March 31, | |||||||||||
2024 | 2023 | ||||||||||
Net cash provided by operating activities | $ | 72,855 | $ | 74,244 | |||||||
Net cash used in investing activities | $ | (6,402) | $ | (37,280) | |||||||
Net cash used in financing activities | $ | (83,834) | $ | (54,706) |
Period | Total Number of Shares Purchased(1) | Average Price Paid per Share(2) | Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs | Approximate Dollar Value of Shares that May Yet Be Purchased Under the Plans or Program | ||||||||||||||||||||||
January 1 - January 31, 2024 | 541 | $ | 45.04 | 541 | $ | 57,281 | ||||||||||||||||||||
February 1 - February 29, 2024 | 59 | $ | 44.79 | 59 | $ | 554,659 | ||||||||||||||||||||
March 1 - March 31, 2024 | 927 | $ | 38.31 | 927 | $ | 519,159 |
Incorporated by Reference | ||||||||||||||||||||||||||||||||||||||
Exhibit Number | Exhibit Description | Form | File No. | Exhibit | Filing Date | Filed Herewith | ||||||||||||||||||||||||||||||||
8-K | 001-35444 | 3.1 | 7/8/2020 | |||||||||||||||||||||||||||||||||||
8-K | 001-35444 | 3.1 | 3/15/2023 | |||||||||||||||||||||||||||||||||||
X | ||||||||||||||||||||||||||||||||||||||
X | ||||||||||||||||||||||||||||||||||||||
X | ||||||||||||||||||||||||||||||||||||||
101.INS | Inline XBRL Instance Document (embedded within the Inline XBRL document). | |||||||||||||||||||||||||||||||||||||
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 Labels 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). |
YELP INC. | |||||||||||
Date: | May 10, 2024 | /s/ David Schwarzbach | |||||||||
David Schwarzbach | |||||||||||
Chief Financial Officer | |||||||||||
(Principal Financial and Accounting Officer and Duly Authorized Signatory) |
1. | I have reviewed this Quarterly Report on Form 10-Q of Yelp 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) | Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; | |||||||
c) | 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 | |||||||
d) | 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: | May 10, 2024 | ||||
/s/ Jeremy Stoppelman | |||||
Jeremy Stoppelman | |||||
Chief Executive Officer |
1. | I have reviewed this Quarterly Report on Form 10-Q of Yelp 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) | Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; | |||||||
c) | 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 | |||||||
d) | 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: | May 10, 2024 | ||||
/s/ David Schwarzbach | |||||
David Schwarzbach | |||||
Chief Financial Officer |
1. | The Company’s Quarterly Report on Form 10-Q for the period ended March 31, 2024, to which this Certification is attached as Exhibit 32.1 (the “Quarterly Report”), fully complies with the requirements of Section 13(a) or Section 15(d) of the Exchange Act; and | ||||
2. | The information contained in the Quarterly Report fairly presents, in all material respects, the financial condition and results of operations of the Company. |
/s/ Jeremy Stoppelman | /s/ David Schwarzbach | |||||||
Jeremy Stoppelman | David Schwarzbach | |||||||
Chief Executive Officer | Chief Financial Officer |
CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands |
Mar. 31, 2024 |
Dec. 31, 2023 |
Mar. 31, 2023 |
Dec. 31, 2022 |
---|---|---|---|---|
Statement of Financial Position [Abstract] | ||||
Allowance for doubtful accounts | $ 14,562 | $ 13,768 | $ 8,631 | $ 9,277 |
Common stock, par value (in USD per share) | $ 0.000001 | $ 0.000001 | ||
Common stock, shares authorized (in shares) | 200,000,000 | 200,000,000 | ||
Common stock, shares issued (in shares) | 68,330,000 | 68,864,000 | ||
Common stock, shares outstanding (in shares) | 68,330,000 | 68,864,000 |
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands |
3 Months Ended | |
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Mar. 31, 2024 |
Mar. 31, 2023 |
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Statement of Comprehensive Income [Abstract] | ||
Net income (loss) attributable to common stockholders | $ 14,154 | $ (1,178) |
Other comprehensive (loss) income: | ||
Foreign currency translation adjustments, net of tax | (1,542) | 1,454 |
Unrealized (loss) gain on available-for-sale debt securities, net of tax | (206) | 333 |
Other comprehensive (loss) income | (1,748) | 1,787 |
Comprehensive income | $ 12,406 | $ 609 |
DESCRIPTION OF BUSINESS AND BASIS FOR PRESENTATION |
3 Months Ended |
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Mar. 31, 2024 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
DESCRIPTION OF BUSINESS AND BASIS FOR PRESENTATION | DESCRIPTION OF BUSINESS AND BASIS FOR PRESENTATION Yelp Inc. was incorporated in Delaware on September 3, 2004. Except where specifically noted or the context otherwise requires, the use of terms such as the “Company” and “Yelp” in these Notes to Condensed Consolidated Financial Statements refers to Yelp Inc. and its subsidiaries. Yelp is a trusted local resource for consumers and a partner in success for businesses of all sizes. Consumers trust Yelp for its extensive ratings and reviews of businesses across a broad range of categories, while businesses advertise on Yelp to reach its large audience of purchase-oriented and generally affluent consumers. Yelp has operations in the United States, United Kingdom, Canada, Ireland and Germany. Basis of Presentation The accompanying interim condensed consolidated financial statements are unaudited. These unaudited interim condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) and the applicable rules and regulations of the U.S. Securities and Exchange Commission (“SEC”) regarding interim financial reporting. Certain information and note disclosures normally included in the financial statements prepared in accordance with GAAP have been condensed or omitted pursuant to such rules and regulations. Accordingly, these unaudited interim condensed consolidated financial statements should be read in conjunction with the consolidated financial statements contained in the Annual Report. The unaudited condensed consolidated balance sheet as of December 31, 2023 included herein was derived from the audited consolidated financial statements as of that date, but does not include all disclosures required by GAAP, including certain notes to the financial statements. The unaudited interim condensed consolidated financial statements have been prepared on the same basis as the audited consolidated financial statements. Certain prior-period amounts have been reclassified to conform to the current period presentation, including combining transactions revenue into other revenue. In the opinion of management, the accompanying unaudited condensed consolidated financial statements include all adjustments of a normally recurring nature necessary for the fair presentation of the interim periods presented. Principles of Consolidation These unaudited interim condensed consolidated financial statements include the accounts of the Company and its wholly-owned subsidiaries. All intercompany accounts and transactions have been eliminated upon consolidation. Use of Estimates The preparation of the Company’s unaudited interim condensed consolidated financial statements in conformity with GAAP requires management to make estimates, judgments and assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities at the date of the condensed consolidated financial statements and the reported amounts of income and expenses during the reporting period. Items that require estimates, judgments or assumptions include, but are not limited to, determining variable consideration and identifying the nature and timing of satisfaction of performance obligations, allowance for doubtful accounts and credit losses, fair value and estimated useful lives of long- and indefinite-lived assets, litigation loss contingencies, liabilities related to incurred but not reported insurance claims, fair value and achievement of targets for performance-based restricted stock units (“PRSUs”) and income taxes. These estimates, judgments and assumptions are based on information available as of the date of the condensed consolidated financial statements; therefore, actual results could differ from management’s estimates due to macroeconomic uncertainty and other factors. Significant Accounting Policies There have been no material changes to the Company’s significant accounting policies from those described in the Annual Report. Recent Accounting Pronouncements Not Yet Effective In November 2023, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update No. 2023-07, “Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures” (“ASU 2023-07”), which expands annual and interim disclosure requirements for reportable segments, primarily through enhanced disclosures about significant segment expenses. ASU 2023-07 will be effective for annual periods beginning after December 15, 2023 and interim periods beginning after December 15, 2024 and should be adopted retrospectively. The Company is currently evaluating the impact of ASU 2023-07 on its related disclosures. In December 2023, the FASB issued Accounting Standards Update No. 2023-09, “Income Taxes (Topic 740): Improvements to Income Tax Disclosures” (“ASU 2023-09”), which requires the disclosure of specific categories in the rate reconciliation and greater disaggregation for income taxes paid. ASU 2023-09 will be effective for annual periods beginning after December 15, 2024 and should be adopted prospectively with the option to be adopted retrospectively. The Company is currently evaluating the impact of ASU 2023-09 on its related disclosures.
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CASH, CASH EQUIVALENTS AND RESTRICTED CASH |
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Mar. 31, 2024 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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CASH, CASH EQUIVALENTS AND RESTRICTED CASH | CASH, CASH EQUIVALENTS AND RESTRICTED CASH Cash, cash equivalents and restricted cash as of March 31, 2024 and December 31, 2023 consisted of the following (in thousands):
Restricted cash is included in other non-current assets on the Company’s condensed consolidated balance sheets.
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MARKETABLE SECURITIES |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Investments, Debt and Equity Securities [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
MARKETABLE SECURITIES | MARKETABLE SECURITIES Short-term investments and certain cash equivalents consist of investments in debt securities that are classified as available-for-sale. The amortized cost, gross unrealized gains and losses and fair value of investments as of March 31, 2024 and December 31, 2023 were as follows (in thousands):
The following tables present gross unrealized losses and fair values for those securities that were in an unrealized loss position as of March 31, 2024 and December 31, 2023, aggregated by investment category and the length of time that the individual securities had been in a continuous loss position (in thousands):
For the three months ended March 31, 2024 and 2023, the Company did not recognize any credit loss related to available-for-sale marketable securities. The contractual maturities for marketable securities classified as available-for-sale as of March 31, 2024 were as follows (in thousands):
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FAIR VALUE MEASUREMENTS |
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Fair Value Disclosures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
FAIR VALUE MEASUREMENTS | FAIR VALUE MEASUREMENTS The Company’s investments in money market accounts are recorded as cash equivalents at fair value on the condensed consolidated balance sheets. Additionally, the Company carries its available-for-sale debt securities at fair value. See Note 3, “Marketable Securities,” for further details. The accounting guidance for fair value measurements prioritizes the inputs used in measuring fair value in the following hierarchy: Level 1—Observable inputs, such as quoted prices in active markets, Level 2—Inputs other than quoted prices in active markets that are observable either directly or indirectly, or Level 3—Unobservable inputs in which there are little or no market data, which require the Company to develop its own assumptions. This hierarchy requires the Company to use observable market data, when available, to minimize the use of unobservable inputs when determining fair value. The Company’s money market funds are classified within Level 1 of the fair value hierarchy because they are valued using quoted prices in active markets. The Company’s certificates of deposit, commercial paper, corporate bonds, agency bonds and U.S. government securities are classified within Level 2 of the fair value hierarchy because they have been valued using inputs other than quoted prices in active markets that are observable directly or indirectly. The following table represents the fair value of the Company’s financial instruments, including those measured at fair value on a recurring basis, as of March 31, 2024 and December 31, 2023 (in thousands):
The certificates of deposit that are categorized as other investments with original maturities of one year or less are reflected in prepaid expenses and other current assets on the condensed consolidated balance sheets. Those with original maturities of more than one year are reflected in other non-current assets. Certain long- and indefinite-lived assets are recognized at fair value on a nonrecurring basis, including assets that are written down as a result of an impairment. The Company recognized an impairment charge related to the write off of right-of-use (“ROU”) assets and leasehold improvements associated with certain of its office space that it abandoned during the three months ended March 31, 2023. See Note 8, “Leases,” for further details. The Company estimated the fair value of these assets as of the abandonment date using an income approach based on discounted cash flows expected to be received for the abandoned properties. This valuation technique relied on certain assumptions made by management based on both internal and external data, such as the incremental borrowing rates used to discount these cash flows to its present values. As a result, these assets are classified within Level 3 of the fair value hierarchy.
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PREPAID EXPENSES AND OTHER CURRENT ASSETS |
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Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
PREPAID EXPENSES AND OTHER CURRENT ASSETS | PREPAID EXPENSES AND OTHER CURRENT ASSETS Prepaid expenses and other current assets as of March 31, 2024 and December 31, 2023 consisted of the following (in thousands):
As of March 31, 2024, other current assets primarily consisted of income taxes receivable, deferred costs related to subleases as well as unsettled share repurchases and short-term deposits.
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PROPERTY, EQUIPMENT AND SOFTWARE, NET |
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Property, Plant and Equipment [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
PROPERTY, EQUIPMENT AND SOFTWARE, NET | PROPERTY, EQUIPMENT AND SOFTWARE, NET Property, equipment and software, net as of March 31, 2024 and December 31, 2023 consisted of the following (in thousands):
Depreciation and amortization expense related to property, equipment and software was $9.6 million and $10.5 million for the three months ended March 31, 2024 and 2023, respectively.
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GOODWILL AND INTANGIBLE ASSETS |
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Goodwill and Intangible Assets Disclosure [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
GOODWILL AND INTANGIBLE ASSETS | GOODWILL AND INTANGIBLE ASSETS The Company’s goodwill is the result of its acquisitions of other businesses and represents the excess of purchase consideration over the fair value of assets acquired and liabilities assumed. The Company performed its annual goodwill impairment analysis as of August 31, 2023 and concluded that goodwill was not impaired, as the fair value of the reporting unit exceeded its carrying value. Additionally, no triggering events were identified as of March 31, 2024 or December 31, 2023 that would more likely than not reduce the fair value of goodwill below its carrying value. The change in the carrying amount of goodwill during the three months ended March 31, 2024 was as follows (in thousands):
Intangible assets that were not fully amortized as of March 31, 2024 and December 31, 2023 consisted of the following (dollars in thousands):
Amortization expense related to intangible assets was $0.3 million for each of the three months ended March 31, 2024 and 2023. As of March 31, 2024, estimated future amortization expense was as follows (in thousands):
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LEASES |
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Leases [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
LEASES | LEASES The components of lease cost, net for the three months ended March 31, 2024 and 2023 were as follows (in thousands):
The Company’s leases and subleases do not include any variable lease payments, residual value guarantees, related-party leases, or restrictions or covenants that would limit or prevent the Company from exercising its right to obtain substantially all of the economic benefits from use of the respective assets during the lease term. Supplemental cash flow information related to leases for the three months ended March 31, 2024 and 2023 was as follows (in thousands):
As of March 31, 2024, maturities of lease liabilities were as follows (in thousands):
As of March 31, 2024 and December 31, 2023, the weighted-average remaining lease term and weighted-average discount rate were as follows:
During the three months ended March 31, 2023, the Company abandoned certain office space in San Francisco. The Company evaluated the associated ROU assets and leasehold improvements for impairment as a result of the abandonment in accordance with Accounting Standards Codification Topic 360, “Property, Plant, and Equipment,” because the change in circumstances indicated that the carrying amount of such assets may not be recoverable. The Company compared the carrying value of the impacted assets to the fair value to determine the impairment amount and recognized an impairment charge of $3.6 million during the three months ended March 31, 2023, which is included in general and administrative expenses on its condensed consolidated statement of operations. The Company reduced the carrying amount of the ROU asset and leasehold improvements by $2.6 million and $1.0 million, respectively. For more information on the fair values of the ROU asset and leasehold improvements used in the impairment analysis, see Note 4, “Fair Value Measurements.”
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OTHER NON-CURRENT ASSETS |
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Other Assets, Noncurrent Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
OTHER NON-CURRENT ASSETS | OTHER NON-CURRENT ASSETS Other non-current assets as of March 31, 2024 and December 31, 2023 consisted of the following (in thousands):
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CONTRACT BALANCES |
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Revenue from Contract with Customer [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
CONTRACT BALANCES | CONTRACT BALANCES The changes in the allowance for doubtful accounts during the three months ended March 31, 2024 and 2023 were as follows (in thousands):
In calculating the allowance for doubtful accounts as of March 31, 2024 and 2023, the Company considered expectations of probable credit losses based on observed trends in cancellations, observed changes in the credit risk of specific customers, the impact of anticipated closures and bankruptcies using forecasted economic indicators in addition to historical experience and loss patterns during periods of macroeconomic uncertainty. The increases in the provision for doubtful accounts and write-offs, net of recoveries in the three months ended March 31, 2024 as compared to the prior-year period were a result of the ordinary course of business, reflecting higher aggregate customer delinquencies as well as the increase in net revenue. Contract liabilities consist of deferred revenue, which is recorded on the condensed consolidated balance sheets when the Company has received consideration, or has the right to receive consideration, in advance of transferring the performance obligations under the contract to the customer. The changes in short-term deferred revenue during the three months ended March 31, 2024 were as follows (in thousands):
The majority of the Company’s deferred revenue balance as of March 31, 2024 is classified as short-term and is expected to be recognized as revenue in the subsequent three-month period ending June 30, 2024. An immaterial amount of long-term deferred revenue is included in other long-term liabilities as of March 31, 2024. No other contract assets or liabilities were recorded on the Company’s condensed consolidated balance sheets as of March 31, 2024 and December 31, 2023.
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ACCOUNTS PAYABLE AND ACCRUED LIABILITIES |
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Mar. 31, 2024 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Payables and Accruals [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
ACCOUNTS PAYABLE AND ACCRUED LIABILITIES | ACCOUNTS PAYABLE AND ACCRUED LIABILITIES Accounts payable and accrued liabilities as of March 31, 2024 and December 31, 2023 consisted of the following (in thousands):
As of March 31, 2024, other accrued liabilities primarily consisted of accrued operating expenses and cost of revenue, income taxes payable and unsettled share repurchases.
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COMMITMENTS AND CONTINGENCIES |
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Mar. 31, 2024 | |
Commitments and Contingencies Disclosure [Abstract] | |
COMMITMENTS AND CONTINGENCIES | COMMITMENTS AND CONTINGENCIES Legal Proceedings CIPA Action On October 12, 2016, a putative class action lawsuit asserting claims under the California Invasion of Privacy Act was filed against the Company (the “CIPA Action”) in the Superior Court of California for the County of San Francisco (the “Superior Court”), in which the plaintiff sought statutory damages and other relief based on alleged unlawful call recording. The Company filed a motion for summary judgment on the basis that it had never recorded the plaintiff, which the Superior Court granted. The plaintiff appealed and, in October 2020, the California Court of Appeal for the First District (the “Court of Appeal”) reversed the decision of the Superior Court, holding that the recording of only the Company’s consenting sales representatives could violate CIPA, even if the plaintiff was not recorded. The California Supreme Court subsequently denied review of the Court of Appeal’s decision and the case was remanded to the Superior Court. On January 18, 2023, the Superior Court granted the plaintiffs’ motion for class certification. In February 2023, the Company filed a petition for a writ with the Court of Appeal seeking reversal of the Superior Court’s class certification decision. The Court of Appeal summarily denied the writ petition on May 25, 2023, following which the Company filed a petition with the California Supreme Court on June 2, 2023 seeking an order directing the Court of Appeal to review the merits of the Company’s writ petition. On July 17, 2023, the Company reached a preliminary agreement with the plaintiffs to settle the CIPA Action for $15.0 million, which payment the Company expected to be partially funded by insurance proceeds. The parties executed a settlement agreement, which the plaintiff presented to the Superior Court for approval. On April 10, 2024, the Superior Court granted final approval of the settlement, which resolved all claims asserted against the Company in the CIPA Action without any liability or wrongdoing attributed to it. The Company assesses, in conjunction with its legal counsel, the need to record a liability for litigation and contingencies, which it will accrue when it believes a loss is probable and the amount can be reasonably estimated. The Company believes the loss is probable and the payment amount of $15.0 million represents a reasonable estimate of loss contingency as of March 31, 2024. The Company recorded a $4.0 million accrual for loss contingency related to the CIPA Action as of December 31, 2022 and an additional accrual of $11.0 million during 2023, resulting in a $15.0 million accrual for loss contingency within accounts payable and accrued liabilities on the Company’s condensed consolidated balance sheet as of March 31, 2024. The Company expects to fund the settlement in the three months ending June 30, 2024. The receivable for loss recovery that was recorded in 2023 for the anticipated insurance proceeds of $3.9 million was released upon receipt of the proceeds on January 18, 2024. Other Legal Proceedings The Company is subject to other legal proceedings arising in the ordinary course of business. Although the results of litigation and claims cannot be predicted with certainty, the Company currently does not believe that the final outcome of any of these other matters will have a material effect on the Company’s business, financial position, results of operations or cash flows. Indemnification Agreements In the ordinary course of business, the Company may provide indemnifications of varying scope and terms to customers, vendors, lessors, business partners and other parties with respect to certain matters, including, but not limited to, losses arising out of the breach of such agreements, services to be provided by the Company or from intellectual property infringement claims made by third parties. In addition, the Company has entered into indemnification agreements with directors and certain officers and employees that will require the Company to, among other things, indemnify them against certain liabilities that may arise by reason of their status or service as directors, officers or employees. While the outcome of claims cannot be predicted with certainty, the Company does not believe that the outcome of any claims under the indemnification arrangements will have a material effect on the Company’s business, financial position, results of operations or cash flows. Revolving Credit Facility On April 28, 2023, the Company entered into a Revolving Credit and Guaranty Agreement with certain lenders and JPMorgan Chase Bank, N.A., as administrative and collateral agent, which provides for a five-year $125.0 million senior secured revolving credit facility (the “2023 credit facility”). The 2023 credit facility replaced the Company’s previous $75.0 million revolving credit facility entered into on May 5, 2020 with Wells Fargo Bank, N.A. (the “2020 credit facility”), which terminated concurrently with the establishment of the 2023 credit facility. The 2023 credit facility includes a letter of credit sub-limit of $25.0 million, a bilateral letter of credit facility of $25.0 million and an accordion option, which, if exercised, would allow the Company to increase the aggregate commitments by up to $250.0 million, plus additional amounts if the Company is able to satisfy a leverage test, subject to certain conditions. The commitments under the 2023 credit facility expire on April 28, 2028. Loans under the 2023 credit facility bear interest, at the Company’s election, at either (a) an adjusted term Secured Overnight Financing Rate plus 0.10% plus a margin of 1.25% - 1.50%, depending on the Company’s total leverage ratio, or (b) an alternative base rate plus a margin of 0.25% - 0.50%, depending on the Company’s total leverage ratio. The Company is required to pay a commitment fee on the undrawn portion of the aggregate commitments that accrues at 0.20% - 0.25% per annum, depending on the Company’s total leverage ratio, as well as a letter of credit fee on any outstanding letters of credit that accrues at 1.25% - 1.50% per annum, depending on the Company’s total leverage ratio. The 2023 credit facility contains customary conditions to borrowing, events of default and covenants, including covenants that restrict the Company’s ability to incur indebtedness, grant liens, make distributions, pay dividends, repurchase shares, make investments and engage in transactions with the Company’s affiliates, in each case subject to certain exceptions. The 2023 credit facility also requires the Company to maintain a total leverage ratio of no greater than 3.75 to 1.00, subject to an increase up to 4.25 to 1.00 for a certain period following significant acquisitions, and an interest coverage ratio of no less than 3.00 to 1.00. The obligations under the 2023 credit facility are secured by liens on substantially all of the Company’s domestic assets, including certain domestic intellectual property assets and the equity of its domestic subsidiaries, as well as a portion of the equity interests the Company holds directly in its foreign subsidiaries. As of March 31, 2024, the Company had $14.1 million of letters of credit outstanding under the 2023 credit facility sub-limit, which were moved from the 2020 credit facility. The letters of credit are primarily related to lease agreements for certain office locations and are required to be maintained and issued to the landlords of each facility. No loans were outstanding under the 2023 credit facility and the Company was in compliance with all conditions and covenants thereunder as of March 31, 2024.
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STOCKHOLDERS' EQUITY |
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Stockholders' Equity Note [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
STOCKHOLDERS’ EQUITY | STOCKHOLDERS’ EQUITY The following table presents the number of shares authorized and issued as of March 31, 2024 and December 31, 2023 (in thousands):
Stock Repurchase Program As of March 31, 2024, the Board of Directors had authorized the Company to repurchase up to an aggregate of $1.95 billion of its outstanding common stock, $519.2 million of which remained available as of March 31, 2024. The Company may purchase shares at management’s discretion in the open market, in privately negotiated transactions, in transactions structured through investment banking institutions or a combination of the foregoing. During the three months ended March 31, 2024, the Company repurchased on the open market 1,526,366 shares for an aggregate purchase price of $62.5 million and retired 1,326,887 shares. As of March 31, 2024, the Company had a treasury stock balance of 199,479 shares, which were excluded from its outstanding share count as of such date and subsequently retired in April 2024. As of March 31, 2024, the treasury stock balance included $0.6 million of excise tax imposed under the Inflation Reduction Act of 2022 on stock repurchases, net of shares issued. During the three months ended March 31, 2023, the Company repurchased on the open market and subsequently retired 1,700,835 shares for an aggregate purchase price of $50.0 million. Although there were no shares of treasury stock as of March 31, 2023, the treasury stock balance included an immaterial amount of excise tax on stock repurchases, net of shares issued, during the three months then ended. Equity Incentive Plans Stock Options A summary of stock option activity for the three months ended March 31, 2024 is as follows:
Aggregate intrinsic value represents the difference between the closing price of the Company’s common stock as quoted on the New York Stock Exchange on a given date and the exercise price of outstanding, in-the-money options. The total intrinsic value of options exercised was approximately $0.2 million and $5.4 million for the three months ended March 31, 2024 and 2023, respectively. There were no options granted during the three months ended March 31, 2024 and 2023. As of March 31, 2024, total unrecognized compensation costs related to nonvested stock options were approximately $0.4 million, which the Company expects to recognize over a weighted-average time period of 1.4 years. RSUs RSUs include PRSUs, which are subject to either (a) a market condition or (b) the achievement of performance goals. As the PRSU activity during the three months ended March 31, 2024 was not material, it is presented together with the RSU activity in the table below. A summary of RSU and PRSU activity for the three months ended March 31, 2024 is as follows (in thousands, except per share amounts):
(1) Includes 593,529 shares that vested but were not issued due to the Company’s use of net share settlement for payment of employee taxes. (2) Includes 982,724 PRSUs. The aggregate fair value as of the vest date of RSUs and PRSUs that vested during the three months ended March 31, 2024 and 2023 was $50.7 million and $46.2 million, respectively. As of March 31, 2024, the Company had approximately $334.6 million of unrecognized stock-based compensation expense related to RSUs and PRSUs, which it expects to recognize over the remaining weighted-average vesting period of approximately 2.3 years. Employee Stock Purchase Plan There were no shares purchased by employees under the Employee Stock Purchase Plan (“ESPP”) during the three months ended March 31, 2024. There were 676 shares purchased by employees under the ESPP at a weighted-average purchase price per share of $26.31 during the three months ended March 31, 2023. The Company recognized stock-based compensation expense related to the ESPP of $1.1 million and $0.9 million during the three months ended March 31, 2024 and 2023, respectively. Stock-Based Compensation The following table summarizes the effects of stock-based compensation expense related to stock-based awards in the condensed consolidated statements of operations during the periods presented (in thousands):
During the three months ended March 31, 2024 and 2023, the Company capitalized $2.7 million and $2.9 million, respectively, of stock-based compensation expense as website and internal-use software development costs and, to a lesser extent, implementation costs incurred related to cloud computing arrangements that are service contracts.
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OTHER INCOME, NET |
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Mar. 31, 2024 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other Income and Expenses [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
OTHER INCOME, NET | OTHER INCOME, NET Other income, net for the three months ended March 31, 2024 and 2023 consisted of the following (in thousands):
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INCOME TAXES |
3 Months Ended |
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Mar. 31, 2024 | |
Income Tax Disclosure [Abstract] | |
INCOME TAXES | INCOME TAXES The Company is subject to income taxes in the United States as well as other tax jurisdictions in which it conducts business. Earnings from non-U.S. activities are subject to local country income taxes. The provision for income taxes for the three months ended March 31, 2024 was $4.8 million, which was due to $5.1 million of U.S. federal, state and foreign income tax expense, partially offset by $0.3 million of net discrete tax benefit primarily related to stock-based compensation. The benefit from income taxes for the three months ended March 31, 2023 was $0.2 million, which was due to $0.5 million of U.S. federal, state and foreign income tax benefit, partially offset by $0.3 million of net discrete tax expense primarily related to stock-based compensation. Accounting for income taxes for interim periods generally requires the provision for income taxes to be determined by applying an estimate of the annual effective tax rate for the full fiscal year to income or loss before income taxes, excluding unusual or infrequently occurring discrete items, for the reporting period. For the three months ended March 31, 2024, the difference between the effective tax rate and the federal statutory tax rate primarily related to tax credits, offset by stock-based compensation and other non-deductible expenses. For the three months ended March 31, 2023, the difference between the effective tax rate and the federal statutory tax rate primarily related to stock-based compensation and the inclusion of global intangible low-taxed income (“GILTI”), offset by tax credits. However, the Internal Revenue Service issued guidance in the three months ended September 30, 2023 that effectively relieved the Company from GILTI in 2023. As of March 31, 2024, the Company had $36.9 million of unrecognized tax benefits that, if recognized, would affect the Company’s effective tax rate. As of March 31, 2024, the Company estimated that it had accumulated undistributed earnings generated by its foreign subsidiaries of approximately $31.3 million. Any taxes due with respect to such earnings or the excess of the amount for financial reporting over the tax basis of the Company’s foreign investments would generally be limited to foreign and state taxes. The Company has not recognized a deferred tax liability related to unremitted foreign earnings, as it intends to indefinitely reinvest these earnings, and expects future U.S. cash generation to be sufficient to meet future U.S. cash needs. In addition, the Company is subject to the continuous examination of its income tax returns by the Internal Revenue Service and other tax authorities. The Company’s federal and state income tax returns for tax years subsequent to 2003 remain open to examination. In the Company’s foreign jurisdictions — Canada, Germany, Ireland and the United Kingdom — the tax years subsequent to 2018 remain open to examination. The Company regularly assesses the likelihood of adverse outcomes resulting from examinations to determine the adequacy of its provision for income taxes and monitors the progress of ongoing discussions with tax authorities and the impact, if any, of the expected expiration of the statute of limitations in various taxing jurisdictions. The Company believes that an adequate provision has been made for any adjustments that may result from tax examinations. However, the outcome of tax audits cannot be predicted with certainty. If any issues addressed in the Company’s tax audits are resolved in a manner not consistent with management’s expectations, the Company could be required to adjust its provision for income taxes in the period such resolution occurs. As of March 31, 2024, although the timing of the resolution or closure of audits is not certain, the Company believes it is reasonably possible that unrecognized tax benefits will not be reduced within the next 12 months.
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NET INCOME (LOSS) PER SHARE ATTRIBUTABLE TO COMMON STOCKHOLDERS |
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Earnings Per Share [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
NET INCOME (LOSS) PER SHARE ATTRIBUTABLE TO COMMON STOCKHOLDERS | NET INCOME (LOSS) PER SHARE ATTRIBUTABLE TO COMMON STOCKHOLDERS Basic net income (loss) per share attributable to common stockholders is computed using the weighted-average number of outstanding shares of common stock during the period. Diluted net income (loss) per share attributable to common stockholders is computed using the weighted-average number of outstanding shares of common stock and the effect of potentially dilutive securities outstanding during the period. Potentially dilutive securities include stock options, RSUs (including PRSUs) and, to a lesser extent, ESPP shares. If dilutive, such potentially dilutive securities are reflected in net income (loss) per share attributable to common stockholders using the treasury stock method. The following tables present the calculation of basic and diluted net income (loss) per share attributable to common stockholders for the periods presented (in thousands, except per share data):
The following stock-based instruments were excluded from the calculation of diluted net income (loss) per share attributable to common stockholders because their effect would have been anti-dilutive for the periods presented (in thousands):
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INFORMATION ABOUT REVENUE AND GEOGRAPHIC AREAS |
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Segment Reporting [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
INFORMATION ABOUT REVENUE AND GEOGRAPHIC AREAS | INFORMATION ABOUT REVENUE AND GEOGRAPHIC AREAS The Company considers operating segments to be components of the Company for which separate financial information is available and evaluated regularly by the Company’s chief operating decision maker in deciding how to allocate resources and in assessing performance. The chief operating decision maker for the Company is the Chief Executive Officer. The Chief Executive Officer reviews financial information presented on a consolidated basis, accompanied by information about revenue by product line and geographic region for purposes of allocating resources and evaluating financial performance. The Company has determined that it has a single operating and reporting segment. When the Company communicates results externally, it disaggregates net revenue into major product lines and primary geographical markets, which is based on the billing address of the customer. The disaggregation of net revenue by major product lines is based on the type of service provided and also aligns with the timing of revenue recognition for each. To reflect the Company’s strategic focus on creating differentiated experiences for its Services categories and Restaurants, Retail & Other categories, the Company further disaggregates advertising revenue to reflect these two high-level category groupings. The Services categories consist of the following businesses: home, local, auto, professional, pets, events, real estate and financial services. The Restaurants, Retail & Other categories consist of the following businesses: restaurants, shopping, beauty & fitness, health and other. Net Revenue The following table presents the Company’s net revenue by major product line (and by category for advertising revenue) for the periods presented (in thousands):
(1) As of the three months ended March 31, 2024, other revenue includes revenue generated from transactions with consumers, which the Company reported separately as transactions revenue in prior periods. Prior period amounts in the table above have been reclassified to conform to the current period presentation. During the three months ended March 31, 2024 and 2023, no individual customer accounted for 10% or more of consolidated net revenue. The following table presents the Company’s net revenue by major geographic region for the periods presented (in thousands):
Long-Lived Assets The following table presents the Company’s long-lived assets by major geographic region as of March 31, 2024 and December 31, 2023 (in thousands):
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Pay vs Performance Disclosure - USD ($) $ in Thousands |
3 Months Ended | |
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Mar. 31, 2024 |
Mar. 31, 2023 |
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Pay vs Performance Disclosure | ||
Net income (loss) attributable to common stockholders | $ 14,154 | $ (1,178) |
Insider Trading Arrangements |
3 Months Ended |
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Mar. 31, 2024
shares
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Trading Arrangements, by Individual | |
Non-Rule 10b5-1 Arrangement Adopted | false |
Rule 10b5-1 Arrangement Terminated | false |
Non-Rule 10b5-1 Arrangement Terminated | false |
Sam Eaton [Member] | |
Trading Arrangements, by Individual | |
Material Terms of Trading Arrangement | On February 21, 2024, Sam Eaton, our Chief Technology Officer, entered into a trading plan intended to satisfy the affirmative defense conditions of Rule 10b5-1(c). The plan provides for the sale of an aggregate of up to (i) 10,242 shares of our common stock and (ii) 117,796 shares of our common stock that may vest during the plan period, net of any shares we withhold to satisfy income tax withholding and remittance obligations in connection with the net settlement of the equity awards, the amount of which cannot currently be determined. The plan will terminate on the earlier of February 28, 2025 or when all shares subject to the plan have been sold, subject to early termination for certain specified events set forth in the plan.
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Name | Sam Eaton |
Title | Chief Technology Officer |
Rule 10b5-1 Arrangement Adopted | true |
Adoption Date | February 21, 2024 |
Arrangement Duration | 373 days |
Jed Nachman [Member] | |
Trading Arrangements, by Individual | |
Material Terms of Trading Arrangement | On March 5, 2024, Jed Nachman, our Chief Operating Officer, entered into a trading plan intended to satisfy the affirmative defense conditions of Rule 10b5-1(c). The plan provides for the sale of an aggregate of up to 219,299 shares of our common stock, net of any shares we withhold to satisfy income tax withholding and remittance obligations in connection with the net settlement of the equity awards, the amount of which cannot currently be determined. The plan will terminate on the earlier of March 5, 2025 or when all shares subject to the plan have been sold, subject to early termination for certain specified events set forth in the plan.
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Name | Jed Nachman |
Title | Chief Operating Officer |
Rule 10b5-1 Arrangement Adopted | true |
Adoption Date | March 5, 2024 |
Arrangement Duration | 365 days |
Aggregate Available | 219,299 |
Sam Eaton, Shares Of Common Stock [Member] | Sam Eaton [Member] | |
Trading Arrangements, by Individual | |
Aggregate Available | 10,242 |
Sam Eaton, Common Stock That May Vest During the Plan Period [Member] | Sam Eaton [Member] | |
Trading Arrangements, by Individual | |
Aggregate Available | 117,796 |
DESCRIPTION OF BUSINESS AND BASIS FOR PRESENTATION (Policies) |
3 Months Ended |
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Mar. 31, 2024 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation | Basis of Presentation The accompanying interim condensed consolidated financial statements are unaudited. These unaudited interim condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) and the applicable rules and regulations of the U.S. Securities and Exchange Commission (“SEC”) regarding interim financial reporting. Certain information and note disclosures normally included in the financial statements prepared in accordance with GAAP have been condensed or omitted pursuant to such rules and regulations. Accordingly, these unaudited interim condensed consolidated financial statements should be read in conjunction with the consolidated financial statements contained in the Annual Report. The unaudited condensed consolidated balance sheet as of December 31, 2023 included herein was derived from the audited consolidated financial statements as of that date, but does not include all disclosures required by GAAP, including certain notes to the financial statements. The unaudited interim condensed consolidated financial statements have been prepared on the same basis as the audited consolidated financial statements. Certain prior-period amounts have been reclassified to conform to the current period presentation, including combining transactions revenue into other revenue. In the opinion of management, the accompanying unaudited condensed consolidated financial statements include all adjustments of a normally recurring nature necessary for the fair presentation of the interim periods presented.
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Principles of Consolidation | Principles of Consolidation These unaudited interim condensed consolidated financial statements include the accounts of the Company and its wholly-owned subsidiaries. All intercompany accounts and transactions have been eliminated upon consolidation.
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Use of Estimates | Use of Estimates The preparation of the Company’s unaudited interim condensed consolidated financial statements in conformity with GAAP requires management to make estimates, judgments and assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities at the date of the condensed consolidated financial statements and the reported amounts of income and expenses during the reporting period. Items that require estimates, judgments or assumptions include, but are not limited to, determining variable consideration and identifying the nature and timing of satisfaction of performance obligations, allowance for doubtful accounts and credit losses, fair value and estimated useful lives of long- and indefinite-lived assets, litigation loss contingencies, liabilities related to incurred but not reported insurance claims, fair value and achievement of targets for performance-based restricted stock units (“PRSUs”) and income taxes. These estimates, judgments and assumptions are based on information available as of the date of the condensed consolidated financial statements; therefore, actual results could differ from management’s estimates due to macroeconomic uncertainty and other factors.
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Recent Accounting Pronouncements Not Yet Effective | Recent Accounting Pronouncements Not Yet Effective In November 2023, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update No. 2023-07, “Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures” (“ASU 2023-07”), which expands annual and interim disclosure requirements for reportable segments, primarily through enhanced disclosures about significant segment expenses. ASU 2023-07 will be effective for annual periods beginning after December 15, 2023 and interim periods beginning after December 15, 2024 and should be adopted retrospectively. The Company is currently evaluating the impact of ASU 2023-07 on its related disclosures. In December 2023, the FASB issued Accounting Standards Update No. 2023-09, “Income Taxes (Topic 740): Improvements to Income Tax Disclosures” (“ASU 2023-09”), which requires the disclosure of specific categories in the rate reconciliation and greater disaggregation for income taxes paid. ASU 2023-09 will be effective for annual periods beginning after December 15, 2024 and should be adopted prospectively with the option to be adopted retrospectively. The Company is currently evaluating the impact of ASU 2023-09 on its related disclosures.
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CASH, CASH EQUIVALENTS AND RESTRICTED CASH (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 31, 2024 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Cash and Cash Equivalents [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Cash and Cash Equivalents | Cash, cash equivalents and restricted cash as of March 31, 2024 and December 31, 2023 consisted of the following (in thousands):
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Schedule of Restrictions on Cash and Cash Equivalents | Cash, cash equivalents and restricted cash as of March 31, 2024 and December 31, 2023 consisted of the following (in thousands):
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MARKETABLE SECURITIES (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 31, 2024 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Investments, Debt and Equity Securities [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of the Fair Value to Amortized Cost Basis of Securities Available-for-Sale | Short-term investments and certain cash equivalents consist of investments in debt securities that are classified as available-for-sale. The amortized cost, gross unrealized gains and losses and fair value of investments as of March 31, 2024 and December 31, 2023 were as follows (in thousands):
The contractual maturities for marketable securities classified as available-for-sale as of March 31, 2024 were as follows (in thousands):
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Schedule of Securities in an Unrealized Loss Position | The following tables present gross unrealized losses and fair values for those securities that were in an unrealized loss position as of March 31, 2024 and December 31, 2023, aggregated by investment category and the length of time that the individual securities had been in a continuous loss position (in thousands):
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FAIR VALUE MEASUREMENTS (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 31, 2024 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value Disclosures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Financial Instruments Measured at Fair Value | The following table represents the fair value of the Company’s financial instruments, including those measured at fair value on a recurring basis, as of March 31, 2024 and December 31, 2023 (in thousands):
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PREPAID EXPENSES AND OTHER CURRENT ASSETS (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 31, 2024 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Prepaid Expenses and Other Current Assets | Prepaid expenses and other current assets as of March 31, 2024 and December 31, 2023 consisted of the following (in thousands):
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PROPERTY, EQUIPMENT, AND SOFTWARE, NET (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 31, 2024 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Property, Plant and Equipment [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Property, Equipment and Software, Net | Property, equipment and software, net as of March 31, 2024 and December 31, 2023 consisted of the following (in thousands):
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GOODWILL AND INTANGIBLE ASSETS (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 31, 2024 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Goodwill | The change in the carrying amount of goodwill during the three months ended March 31, 2024 was as follows (in thousands):
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Schedule of Intangible Assets | Intangible assets that were not fully amortized as of March 31, 2024 and December 31, 2023 consisted of the following (dollars in thousands):
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Schedule of Future Amortization Expense | As of March 31, 2024, estimated future amortization expense was as follows (in thousands):
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LEASES (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 31, 2024 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Leases [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Lease Cost and Supplemental Cash Flow Information | The components of lease cost, net for the three months ended March 31, 2024 and 2023 were as follows (in thousands):
Supplemental cash flow information related to leases for the three months ended March 31, 2024 and 2023 was as follows (in thousands):
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Schedule of Lessee, Operating Lease, Liability, Maturity | As of March 31, 2024, maturities of lease liabilities were as follows (in thousands):
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Schedule of Assets And Liabilities, Lessee Information | As of March 31, 2024 and December 31, 2023, the weighted-average remaining lease term and weighted-average discount rate were as follows:
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OTHER NON-CURRENT ASSETS (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 31, 2024 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other Assets, Noncurrent Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Other Non-Current Assets | Other non-current assets as of March 31, 2024 and December 31, 2023 consisted of the following (in thousands):
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CONTRACT BALANCES (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 31, 2024 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Revenue from Contract with Customer [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Allowance for Doubtful Accounts Receivable | The changes in the allowance for doubtful accounts during the three months ended March 31, 2024 and 2023 were as follows (in thousands):
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Schedule of Contract with Customer, Liability | The changes in short-term deferred revenue during the three months ended March 31, 2024 were as follows (in thousands):
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ACCOUNTS PAYABLE AND ACCRUED LIABILITIES (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 31, 2024 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Payables and Accruals [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Accrued Liabilities | Accounts payable and accrued liabilities as of March 31, 2024 and December 31, 2023 consisted of the following (in thousands):
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STOCKHOLDERS' EQUITY (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 31, 2024 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Stockholders' Equity Note [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Stock by Class | The following table presents the number of shares authorized and issued as of March 31, 2024 and December 31, 2023 (in thousands):
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Schedule of Stock Option Activity | A summary of stock option activity for the three months ended March 31, 2024 is as follows:
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Schedule of RSU Activity | A summary of RSU and PRSU activity for the three months ended March 31, 2024 is as follows (in thousands, except per share amounts):
(1) Includes 593,529 shares that vested but were not issued due to the Company’s use of net share settlement for payment of employee taxes. (2) Includes 982,724 PRSUs.
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Schedule of Stock-Based Compensation Expense | The following table summarizes the effects of stock-based compensation expense related to stock-based awards in the condensed consolidated statements of operations during the periods presented (in thousands):
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OTHER INCOME, NET (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 31, 2024 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other Income and Expenses [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Other Income, Net | Other income, net for the three months ended March 31, 2024 and 2023 consisted of the following (in thousands):
|
NET INCOME (LOSS) PER SHARE ATTRIBUTABLE TO COMMON STOCKHOLDERS (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 31, 2024 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Earnings Per Share [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Calculation of Basic and Diluted Net Loss Per Share | The following tables present the calculation of basic and diluted net income (loss) per share attributable to common stockholders for the periods presented (in thousands, except per share data):
|
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Schedule of Anti-dilutive Securities | The following stock-based instruments were excluded from the calculation of diluted net income (loss) per share attributable to common stockholders because their effect would have been anti-dilutive for the periods presented (in thousands):
|
INFORMATION ABOUT REVENUE AND GEOGRAPHIC AREAS (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Mar. 31, 2024 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Segment Reporting [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Revenue by Product Line | The following table presents the Company’s net revenue by major product line (and by category for advertising revenue) for the periods presented (in thousands):
(1) As of the three months ended March 31, 2024, other revenue includes revenue generated from transactions with consumers, which the Company reported separately as transactions revenue in prior periods. Prior period amounts in the table above have been reclassified to conform to the current period presentation.
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Schedule of Net Revenue by Geographic Region | The following table presents the Company’s net revenue by major geographic region for the periods presented (in thousands):
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Schedule of Long-Lived Assets by Geographic Location | The following table presents the Company’s long-lived assets by major geographic region as of March 31, 2024 and December 31, 2023 (in thousands):
|
CASH, CASH EQUIVALENTS AND RESTRICTED CASH (Details) - USD ($) $ in Thousands |
Mar. 31, 2024 |
Dec. 31, 2023 |
Mar. 31, 2023 |
Dec. 31, 2022 |
---|---|---|---|---|
Cash and Cash Equivalents [Abstract] | ||||
Cash | $ 81,415 | $ 105,959 | ||
Cash equivalents | 214,630 | 207,952 | ||
Total cash and cash equivalents | 296,045 | 313,911 | ||
Restricted cash | 91 | 91 | ||
Total cash, cash equivalents and restricted cash | $ 296,136 | $ 314,002 | $ 289,835 | $ 307,138 |
MARKETABLE SECURITIES (Schedule of Securities in an Unrealized Loss Position) (Details) - USD ($) $ in Thousands |
Mar. 31, 2024 |
Dec. 31, 2023 |
---|---|---|
Fair Value | ||
Less Than 12 Months | $ 72,283 | $ 44,302 |
12 Months or Greater | 10,896 | 18,335 |
Total | 83,179 | 62,637 |
Unrealized Loss | ||
Less Than 12 Months | (316) | (161) |
12 Months or Greater | (40) | (117) |
Total | (356) | (278) |
Corporate bonds | ||
Fair Value | ||
Less Than 12 Months | 9,719 | 2,130 |
12 Months or Greater | 9,859 | 12,104 |
Total | 19,578 | 14,234 |
Unrealized Loss | ||
Less Than 12 Months | (35) | (9) |
12 Months or Greater | (37) | (83) |
Total | (72) | (92) |
Agency bonds | ||
Fair Value | ||
Less Than 12 Months | 3,744 | 14,409 |
12 Months or Greater | 1,037 | 0 |
Total | 4,781 | 14,409 |
Unrealized Loss | ||
Less Than 12 Months | (7) | (17) |
12 Months or Greater | (3) | 0 |
Total | (10) | (17) |
U.S. government securities | ||
Fair Value | ||
Less Than 12 Months | 58,820 | 27,763 |
12 Months or Greater | 0 | 6,231 |
Total | 58,820 | 33,994 |
Unrealized Loss | ||
Less Than 12 Months | (274) | (135) |
12 Months or Greater | 0 | (34) |
Total | $ (274) | $ (169) |
MARKETABLE SECURITIES (Narrative) (Details) - USD ($) |
Mar. 31, 2024 |
Mar. 31, 2023 |
---|---|---|
Investments, Debt and Equity Securities [Abstract] | ||
Debt securities, available-for-sale, allowance for credit loss | $ 0 | $ 0 |
MARKETABLE SECURITIES (Marketable Securities) (Details) - USD ($) $ in Thousands |
Mar. 31, 2024 |
Dec. 31, 2023 |
---|---|---|
Amortized Cost | ||
Due in one year or less | $ 71,723 | |
Due in one to five years | 53,329 | |
Total | 125,052 | |
Fair Value | ||
Due in one year or less | 71,477 | |
Due in one to five years | 53,272 | |
Total | $ 124,749 | $ 129,097 |
PREPAID EXPENSES AND OTHER CURRENT ASSETS (Details) - USD ($) $ in Thousands |
Mar. 31, 2024 |
Dec. 31, 2023 |
---|---|---|
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | ||
Prepaid expenses | $ 17,397 | $ 14,922 |
Certificates of deposit | 7,500 | 5,000 |
Other current assets | 13,524 | 16,751 |
Total prepaid expenses and other current assets | $ 38,421 | $ 36,673 |
PROPERTY, EQUIPMENT, AND SOFTWARE, NET (Narrative) (Details) - USD ($) $ in Thousands |
3 Months Ended | |
---|---|---|
Mar. 31, 2024 |
Mar. 31, 2023 |
|
Property, Plant and Equipment [Line Items] | ||
Depreciation and amortization | $ 9,930 | $ 10,805 |
Property Equipment And Software | ||
Property, Plant and Equipment [Line Items] | ||
Depreciation and amortization | $ 9,600 | $ 10,500 |
GOODWILL AND INTANGIBLE ASSETS (Schedule of Goodwill) (Details) $ in Thousands |
3 Months Ended |
---|---|
Mar. 31, 2024
USD ($)
| |
Goodwill [Roll Forward] | |
Beginning balance | $ 103,886 |
Effect of currency translation | (1,053) |
Ending balance | $ 102,833 |
GOODWILL AND INTANGIBLE ASSETS (Schedule of Intangible Assets) (Details) - USD ($) $ in Thousands |
Mar. 31, 2024 |
Dec. 31, 2023 |
---|---|---|
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | $ 16,059 | $ 16,047 |
Accumulated Amortization | (8,750) | (8,409) |
Total amortization | 7,309 | 7,638 |
Business relationships | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 9,918 | 9,918 |
Accumulated Amortization | (6,435) | (6,258) |
Total amortization | $ 3,483 | $ 3,660 |
Weighted Average Remaining Life | 4 years 10 months 24 days | 5 years 2 months 12 days |
Licensing agreements | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | $ 6,141 | $ 6,129 |
Accumulated Amortization | (2,315) | (2,151) |
Total amortization | $ 3,826 | $ 3,978 |
Weighted Average Remaining Life | 5 years 10 months 24 days | 6 years 2 months 12 days |
GOODWILL AND INTANGIBLE ASSETS (Narrative) (Details) - USD ($) $ in Millions |
3 Months Ended | |
---|---|---|
Mar. 31, 2024 |
Mar. 31, 2023 |
|
Goodwill and Intangible Assets Disclosure [Abstract] | ||
Amortization expense | $ 0.3 | $ 0.3 |
GOODWILL AND INTANGIBLE ASSETS (Schedule of Future Amortization Expense) (Details) - USD ($) $ in Thousands |
Mar. 31, 2024 |
Dec. 31, 2023 |
---|---|---|
Estimated Future Amortization Expense | ||
Remainder of 2024 | $ 1,024 | |
2025 | 1,353 | |
2026 | 1,353 | |
2027 | 1,353 | |
2028 | 1,353 | |
2029 | 763 | |
Thereafter | 110 | |
Total amortization | $ 7,309 | $ 7,638 |
LEASES (Lease Cost) (Details) - USD ($) $ in Thousands |
3 Months Ended | |
---|---|---|
Mar. 31, 2024 |
Mar. 31, 2023 |
|
Leases [Abstract] | ||
Operating lease cost | $ 4,942 | $ 9,531 |
Short-term lease cost (12 months or less) | 97 | 105 |
Sublease income | (3,400) | (3,391) |
Total lease cost, net | $ 1,639 | $ 6,245 |
LEASES (Supplemental Cash Flow Information) (Details) - USD ($) $ in Thousands |
3 Months Ended | |
---|---|---|
Mar. 31, 2024 |
Mar. 31, 2023 |
|
Cash paid for amounts included in the measurement of lease liabilities: | ||
Operating cash flows from operating leases | $ 10,794 | $ 12,031 |
LEASES (Operating Lease Maturities) (Details) $ in Thousands |
Mar. 31, 2024
USD ($)
|
---|---|
Leases [Abstract] | |
Remainder of 2024 | $ 31,904 |
2025 | 22,157 |
2026 | 7,219 |
2027 | 6,407 |
2028 | 6,545 |
2029 | 6,687 |
Thereafter | 2,984 |
Total minimum lease payments | 83,903 |
Less imputed interest | (6,530) |
Present value of lease liabilities | $ 77,373 |
LEASES (Weighted-Average Remaining Lease Terms) (Details) |
Mar. 31, 2024 |
Dec. 31, 2023 |
---|---|---|
Leases [Abstract] | ||
Weighted-average remaining lease term (years) — operating leases | 3 years 7 months 6 days | 3 years 8 months 12 days |
Weighted-average discount rate — operating leases | 5.10% | 5.10% |
LEASES (Narrative) (Details) - USD ($) $ in Thousands |
3 Months Ended | |
---|---|---|
Mar. 31, 2024 |
Mar. 31, 2023 |
|
Leases [Abstract] | ||
Asset impairment | $ 0 | $ 3,555 |
Reduction to Right-of-use assets | 2,600 | |
Reduction to leasehold improvements | $ 1,000 |
OTHER NON-CURRENT ASSETS (Details) - USD ($) $ in Thousands |
Mar. 31, 2024 |
Dec. 31, 2023 |
---|---|---|
Other Assets, Noncurrent Disclosure [Abstract] | ||
Deferred tax assets | $ 121,438 | $ 119,449 |
Deferred contract costs | 26,713 | 28,203 |
Other non-current assets | 15,594 | 14,074 |
Total other non-current assets | $ 163,745 | $ 161,726 |
CONTRACT BALANCES (Schedule of Changes in Allowance for Doubtful Accounts) (Details) - USD ($) $ in Thousands |
3 Months Ended | |
---|---|---|
Mar. 31, 2024 |
Mar. 31, 2023 |
|
Accounts Receivable, Allowance for Doubtful Accounts [Roll Forward] | ||
Balance, beginning of period | $ 13,768 | $ 9,277 |
Add: provision for doubtful accounts | 11,645 | 6,784 |
Less: write-offs, net of recoveries | (10,851) | (7,430) |
Balance, end of period | $ 14,562 | $ 8,631 |
CONTRACT BALANCES (Changes in Deferred Revenue) (Details) $ in Thousands |
3 Months Ended |
---|---|
Mar. 31, 2024
USD ($)
| |
Change in Contract with Customer, Liability [Roll Forward] | |
Balance, beginning of period | $ 3,821 |
Less: recognition of deferred revenue from beginning balance | (2,520) |
Add: net increase in current period contract liabilities | 5,687 |
Balance, end of period | $ 6,988 |
CONTRACT BALANCES (Narrative) (Details) - USD ($) |
Mar. 31, 2024 |
Dec. 31, 2023 |
---|---|---|
Revenue from Contract with Customer [Abstract] | ||
Contract asset | $ 0 | $ 0 |
Contract liability | $ 0 | $ 0 |
ACCOUNTS PAYABLE AND ACCRUED LIABILITIES (Details) - USD ($) $ in Thousands |
Mar. 31, 2024 |
Dec. 31, 2023 |
---|---|---|
Payables and Accruals [Abstract] | ||
Accounts payable | $ 6,083 | $ 11,868 |
Employee-related liabilities | 84,327 | 79,081 |
Accrued legal settlements | 15,000 | 15,085 |
Other accrued liabilities | 39,533 | 26,775 |
Total accounts payable and accrued liabilities | $ 144,943 | $ 132,809 |
COMMITMENTS AND CONTINGENCIES (Legal Proceedings) (Details) - CIPA Action - Pending Litigation - USD ($) $ in Millions |
3 Months Ended | 12 Months Ended | ||
---|---|---|---|---|
Jul. 17, 2023 |
Mar. 31, 2024 |
Dec. 31, 2023 |
Dec. 31, 2022 |
|
Loss Contingencies [Line Items] | ||||
Amount awarded to other party | $ 15.0 | |||
Estimate of loss contingencies | $ 15.0 | |||
Loss contingency accrual | 15.0 | $ 4.0 | ||
Loss contingency accrual, increase | $ 11.0 | |||
Proceeds from insurance settlement | $ 3.9 |
STOCKHOLDERS' EQUITY (Schedule of Stock by Class) (Details) - $ / shares |
Mar. 31, 2024 |
Dec. 31, 2023 |
---|---|---|
Stockholders' Equity Note [Abstract] | ||
Common stock, shares authorized (in shares) | 200,000,000 | 200,000,000 |
Common stock, shares issued (in shares) | 68,330,000 | 68,864,000 |
Undesignated preferred stock, shares authorized (in shares) | 10,000,000 | 10,000,000 |
Undesignated preferred stock, shares issued (in shares) | 0 | 0 |
Common stock, par value (in USD per share) | $ 0.000001 | $ 0.000001 |
STOCKHOLDERS' EQUITY (Schedule of Restricted Stock Units Activity) (Details) |
3 Months Ended |
---|---|
Mar. 31, 2024
$ / shares
shares
| |
RSUs | |
Number of Shares | |
Nonvested, beginning balance (in shares) | 9,961,000 |
Granted (in shares) | 2,035,000 |
Vested (in shares) | (1,369,000) |
Canceled (in shares) | (183,000) |
Nonvested, ending balance (in shares) | 10,444,000 |
Weighted-Average Grant Date Fair Value | |
Nonvested, beginning balance (in USD per share) | $ / shares | $ 32.61 |
Granted (in USD per share) | $ / shares | 44.68 |
Released (in USD per share) | $ / shares | 32.19 |
Canceled (in USD per share) | $ / shares | 33.29 |
Nonvested, ending balance (in USD per share) | $ / shares | $ 35.00 |
Shares withheld for taxes (in shares) | 593,529 |
Performance Shares | |
Number of Shares | |
Nonvested, ending balance (in shares) | 982,724 |
OTHER INCOME, NET (Details) - USD ($) $ in Thousands |
3 Months Ended | |
---|---|---|
Mar. 31, 2024 |
Mar. 31, 2023 |
|
Other Income and Expenses [Abstract] | ||
Interest income, net | $ 5,664 | $ 4,007 |
Transaction loss on foreign exchange, net | (142) | (70) |
Other non-operating income, net | 2,202 | 1,275 |
Other income, net | $ 7,724 | $ 5,212 |
INCOME TAXES (Details) - USD ($) |
3 Months Ended | |
---|---|---|
Mar. 31, 2024 |
Mar. 31, 2023 |
|
Income Tax Disclosure [Abstract] | ||
Income tax expense (benefit) | $ 4,787,000 | $ (197,000) |
Income tax expense (benefit) due to U.S. federal and state income taxes and foreign income taxes | 5,100,000 | (500,000) |
Net discrete tax expense (benefit) | (300,000) | $ 300,000 |
Unrecognized tax benefits that would impact effective tax rate | 36,900,000 | |
Earnings of foreign subsidiaries to be reinvested indefinitely | 31,300,000 | |
Decrease in unrecognized tax benefits is reasonably possible | $ 0 |
NET INCOME (LOSS) PER SHARE ATTRIBUTABLE TO COMMON STOCKHOLDERS (Schedule of Anti-Dilutive Employee Stock Awards) (Details) - shares shares in Thousands |
3 Months Ended | |
---|---|---|
Mar. 31, 2024 |
Mar. 31, 2023 |
|
Stock options | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Anti-dilutive awards (in shares) | 666 | 2,856 |
RSUs | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Anti-dilutive awards (in shares) | 1,478 | 14,021 |
ESPP | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Anti-dilutive awards (in shares) | 0 | 299 |
INFORMATION ABOUT REVENUE AND GEOGRAPHIC AREAS (Net Revenue) (Details) - USD ($) $ in Thousands |
3 Months Ended | |
---|---|---|
Mar. 31, 2024 |
Mar. 31, 2023 |
|
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Total net revenue | $ 332,752 | $ 312,438 |
United States | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Total net revenue | 330,136 | 310,222 |
All other countries | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Total net revenue | 2,616 | 2,216 |
Advertising | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Total net revenue | 317,638 | 297,143 |
Services | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Total net revenue | 203,288 | 183,520 |
Restaurants, Retail & Other | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Total net revenue | 114,350 | 113,623 |
Other | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Total net revenue | $ 15,114 | $ 15,295 |
INFORMATION ABOUT REVENUE AND GEOGRAPHIC AREAS (Long-Lived Assets) (Details) - USD ($) $ in Thousands |
Mar. 31, 2024 |
Dec. 31, 2023 |
---|---|---|
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Total long-lived assets | $ 68,166 | $ 68,684 |
United States | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Total long-lived assets | 62,277 | 62,464 |
All other countries | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Total long-lived assets | $ 5,889 | $ 6,220 |
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