(Mark One) | |||||
For the quarterly period ended | |||||
OR | |||||
For transition period from to | |||||
Commission File Number |
(State or other jurisdiction of incorporation or organization) | (I.R.S. Employer Identification Number) | ||||||||||
( | |||||||||||
(Address of principal executive offices and zip code) | |||||||||||
( | |||||||||||
(Registrant's telephone number, including area code) | |||||||||||
___________________________________ |
Securities registered pursuant to Section 12(b) of the Act: | ||||||||
Title of each class | Trading Symbol | Name of each exchange on which registered | ||||||
Accelerated filer o | |||||
Non-accelerated filer o | Smaller reporting company | ||||
Emerging growth company |
Page | |||||||||||
WORKIVA INC. CONDENSED CONSOLIDATED BALANCE SHEETS | |||||||||||
(in thousands, except share and per share amounts) | |||||||||||
As of September 30, 2022 | As of December 31, 2021 | ||||||||||
(unaudited) | |||||||||||
ASSETS | |||||||||||
Current assets | |||||||||||
Cash and cash equivalents | $ | $ | |||||||||
Marketable securities | |||||||||||
Accounts receivable, net of allowance for doubtful accounts of $ | |||||||||||
Deferred costs | |||||||||||
Other receivables | |||||||||||
Prepaid expenses and other | |||||||||||
Total current assets | |||||||||||
Property and equipment, net | |||||||||||
Operating lease right-of-use assets | |||||||||||
Deferred costs, non-current | |||||||||||
Goodwill | |||||||||||
Intangible assets, net | |||||||||||
Other assets | |||||||||||
Total assets | $ | $ | |||||||||
WORKIVA INC. CONDENSED CONSOLIDATED BALANCE SHEETS (continued) | |||||||||||
(in thousands, except share and per share amounts) | |||||||||||
As of September 30, 2022 | As of December 31, 2021 | ||||||||||
(unaudited) | |||||||||||
LIABILITIES AND STOCKHOLDERS’ (DEFICIT) EQUITY | |||||||||||
Current liabilities | |||||||||||
Accounts payable | $ | $ | |||||||||
Accrued expenses and other current liabilities | |||||||||||
Deferred revenue | |||||||||||
Convertible senior notes, current | |||||||||||
Finance lease obligations | |||||||||||
Total current liabilities | |||||||||||
Convertible senior notes, non-current | |||||||||||
Deferred revenue, non-current | |||||||||||
Other long-term liabilities | |||||||||||
Operating lease liabilities, non-current | |||||||||||
Finance lease obligations, non-current | |||||||||||
Total liabilities | |||||||||||
Stockholders’ (deficit) equity | |||||||||||
Class A common stock, $ | |||||||||||
Class B common stock, $ | |||||||||||
Preferred stock, $ | |||||||||||
Additional paid-in-capital | |||||||||||
Accumulated deficit | ( | ( | |||||||||
Accumulated other comprehensive loss | ( | ( | |||||||||
Total stockholders’ (deficit) equity | ( | ||||||||||
Total liabilities and stockholders’ (deficit) equity | $ | $ | |||||||||
WORKIVA INC. CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (in thousands, except share and per share amounts) (unaudited) | |||||||||||||||||||||||
Three months ended September 30, | Nine months ended September 30, | ||||||||||||||||||||||
2022 | 2021 | 2022 | 2021 | ||||||||||||||||||||
Revenue | |||||||||||||||||||||||
Subscription and support | $ | $ | $ | $ | |||||||||||||||||||
Professional services | |||||||||||||||||||||||
Total revenue | |||||||||||||||||||||||
Cost of revenue | |||||||||||||||||||||||
Subscription and support | |||||||||||||||||||||||
Professional services | |||||||||||||||||||||||
Total cost of revenue | |||||||||||||||||||||||
Gross profit | |||||||||||||||||||||||
Operating expenses | |||||||||||||||||||||||
Research and development | |||||||||||||||||||||||
Sales and marketing | |||||||||||||||||||||||
General and administrative | |||||||||||||||||||||||
Total operating expenses | |||||||||||||||||||||||
Loss from operations | ( | ( | ( | ( | |||||||||||||||||||
Interest income | |||||||||||||||||||||||
Interest expense | ( | ( | ( | ( | |||||||||||||||||||
Other income, net | |||||||||||||||||||||||
Loss before provision (benefit) for income taxes | ( | ( | ( | ( | |||||||||||||||||||
Provision (benefit) for income taxes | ( | ( | |||||||||||||||||||||
Net loss | $ | ( | $ | ( | $ | ( | $ | ( | |||||||||||||||
Net loss per common share: | |||||||||||||||||||||||
Basic and diluted | $ | ( | $ | ( | $ | ( | $ | ( | |||||||||||||||
Weighted-average common shares outstanding - basic and diluted |
WORKIVA INC. CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS (in thousands) (unaudited) | |||||||||||||||||||||||
Three months ended September 30, | Nine months ended September 30, | ||||||||||||||||||||||
2022 | 2021 | 2022 | 2021 | ||||||||||||||||||||
Net loss | $ | ( | $ | ( | $ | ( | $ | ( | |||||||||||||||
Other comprehensive (loss) income | |||||||||||||||||||||||
Foreign currency translation adjustment | ( | ( | |||||||||||||||||||||
Unrealized loss on available-for-sale securities | ( | ( | ( | ( | |||||||||||||||||||
Other comprehensive (loss) income | ( | ( | ( | ||||||||||||||||||||
Comprehensive loss | $ | ( | $ | ( | $ | ( | $ | ( |
WORKIVA INC. CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY (DEFICIT) | |||||||||||||||||||||||||||||||||||
(in thousands) (unaudited) | |||||||||||||||||||||||||||||||||||
Nine Months Ended September 30, 2022 | |||||||||||||||||||||||||||||||||||
Common Stock (Class A and B) | |||||||||||||||||||||||||||||||||||
Shares | Amount | Additional Paid-in-Capital | Accumulated Other Comprehensive Loss | Accumulated Deficit | Total Stockholders' Equity (Deficit) | ||||||||||||||||||||||||||||||
Balances at December 31, 2021 | $ | $ | $ | ( | $ | ( | $ | ||||||||||||||||||||||||||||
Stock-based compensation expense | — | — | — | — | |||||||||||||||||||||||||||||||
Issuance of common stock upon exercise of stock options | — | — | |||||||||||||||||||||||||||||||||
Issuance of common stock under employee stock purchase plan | — | — | — | ||||||||||||||||||||||||||||||||
Issuance of restricted stock units | — | — | — | — | — | ||||||||||||||||||||||||||||||
Tax withholding related to net share settlements of stock-based compensation awards | ( | — | ( | — | — | ( | |||||||||||||||||||||||||||||
— | — | ( | — | ( | |||||||||||||||||||||||||||||||
Net loss | — | — | — | — | ( | ( | |||||||||||||||||||||||||||||
Other comprehensive loss | — | — | — | ( | — | ( | |||||||||||||||||||||||||||||
Balances at March 31, 2022 | $ | $ | $ | ( | $ | ( | $ | ||||||||||||||||||||||||||||
Stock-based compensation expense | — | — | — | — | |||||||||||||||||||||||||||||||
Issuance of common stock upon exercise of stock options | — | — | — | ||||||||||||||||||||||||||||||||
Issuance of restricted stock units | — | — | — | — | — | ||||||||||||||||||||||||||||||
Tax withholding related to net share settlements of stock-based compensation awards | ( | — | ( | — | — | ( | |||||||||||||||||||||||||||||
Net loss | — | — | — | — | ( | ( | |||||||||||||||||||||||||||||
Other comprehensive loss | — | — | — | ( | — | ( | |||||||||||||||||||||||||||||
Balances at June 30, 2022 | $ | $ | $ | ( | $ | ( | $ | ||||||||||||||||||||||||||||
Stock-based compensation expense | — | — | — | — | |||||||||||||||||||||||||||||||
Issuance of common stock upon exercise of stock options | — | — | — | ||||||||||||||||||||||||||||||||
Issuance of common stock under employee stock purchase plan | — | — | |||||||||||||||||||||||||||||||||
Issuance of restricted stock units | — | — | — | — | — | ||||||||||||||||||||||||||||||
Tax withholding related to net share settlements of stock-based compensation awards | ( | — | ( | — | — | ( | |||||||||||||||||||||||||||||
Net loss | — | — | — | — | ( | ( | |||||||||||||||||||||||||||||
Other comprehensive loss | — | — | — | ( | — | ( | |||||||||||||||||||||||||||||
Balances at September 30, 2022 | $ | $ | $ | ( | $ | ( | $ | ( | |||||||||||||||||||||||||||
WORKIVA INC. CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY (DEFICIT) (continued) | |||||||||||||||||||||||||||||||||||
(in thousands) (unaudited) | |||||||||||||||||||||||||||||||||||
Nine Months Ended September 30, 2021 | |||||||||||||||||||||||||||||||||||
Common Stock (Class A and B) | |||||||||||||||||||||||||||||||||||
Shares | Amount | Additional Paid-in-Capital | Accumulated Other Comprehensive Income (Loss) | Accumulated Deficit | Total Stockholders' Equity (Deficit) | ||||||||||||||||||||||||||||||
Balances at December 31, 2020 | $ | $ | $ | $ | ( | $ | |||||||||||||||||||||||||||||
Stock-based compensation expense | — | — | — | — | |||||||||||||||||||||||||||||||
Issuance of common stock upon exercise of stock options | — | — | |||||||||||||||||||||||||||||||||
Issuance of common stock under employee stock purchase plan | — | — | — | ||||||||||||||||||||||||||||||||
Issuance of restricted stock units | — | — | — | — | — | ||||||||||||||||||||||||||||||
Tax withholding related to net share settlements of stock-based compensation awards | ( | — | ( | — | — | ( | |||||||||||||||||||||||||||||
Net loss | — | — | — | — | ( | ( | |||||||||||||||||||||||||||||
Other comprehensive loss | — | — | — | ( | — | ( | |||||||||||||||||||||||||||||
Balances at March 31, 2021 | $ | $ | $ | $ | ( | $ | |||||||||||||||||||||||||||||
Stock-based compensation expense | — | — | — | — | |||||||||||||||||||||||||||||||
Issuance of common stock upon exercise of stock options | — | — | — | ||||||||||||||||||||||||||||||||
Issuance of restricted stock units | — | — | — | — | — | ||||||||||||||||||||||||||||||
Tax withholding related to net share settlements of stock-based compensation awards | ( | — | ( | — | — | ( | |||||||||||||||||||||||||||||
Net loss | — | — | — | — | ( | ( | |||||||||||||||||||||||||||||
Other comprehensive income | — | — | — | — | |||||||||||||||||||||||||||||||
Balances at June 30, 2021 | $ | $ | $ | $ | ( | $ | |||||||||||||||||||||||||||||
Stock-based compensation expense | — | — | — | — | |||||||||||||||||||||||||||||||
Issuance of common stock upon exercise of stock options | — | — | |||||||||||||||||||||||||||||||||
Issuance of common stock under employee stock purchase plan | — | — | — | ||||||||||||||||||||||||||||||||
Issuance of restricted stock units | — | — | — | — | — | ||||||||||||||||||||||||||||||
Tax withholding related to net share settlements of stock-based compensation awards | ( | — | ( | — | — | ( | |||||||||||||||||||||||||||||
Net loss | — | — | — | — | ( | ( | |||||||||||||||||||||||||||||
Other comprehensive income | — | — | — | — | |||||||||||||||||||||||||||||||
Balances at September 30, 2021 | $ | $ | $ | $ | ( | $ |
WORKIVA INC. CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS | |||||||||||||||||||||||
(in thousands) (unaudited) | |||||||||||||||||||||||
Three months ended September 30, | Nine months ended September 30, | ||||||||||||||||||||||
2022 | 2021 | 2022 | 2021 | ||||||||||||||||||||
Cash flows from operating activities | |||||||||||||||||||||||
Net loss | $ | ( | $ | ( | $ | ( | $ | ( | |||||||||||||||
Adjustments to reconcile net loss to net cash provided by operating activities: | |||||||||||||||||||||||
Depreciation and amortization | |||||||||||||||||||||||
Stock-based compensation expense | |||||||||||||||||||||||
Provision for (recovery of) doubtful accounts | ( | ( | |||||||||||||||||||||
Amortization of premiums and discounts on marketable securities, net | |||||||||||||||||||||||
Gain on settlement of equity securities | ( | ( | |||||||||||||||||||||
Amortization of issuance costs and debt discount | |||||||||||||||||||||||
Deferred income tax | ( | ( | ( | ||||||||||||||||||||
Changes in assets and liabilities: | |||||||||||||||||||||||
Accounts receivable | ( | ( | |||||||||||||||||||||
Deferred costs | ( | ( | ( | ( | |||||||||||||||||||
Operating lease right-of-use asset | |||||||||||||||||||||||
Other receivables | ( | ( | ( | ||||||||||||||||||||
Prepaid expenses and other | ( | ( | |||||||||||||||||||||
Other assets | ( | ( | ( | ( | |||||||||||||||||||
Accounts payable | |||||||||||||||||||||||
Deferred revenue | |||||||||||||||||||||||
Operating lease liability | ( | ( | ( | ( | |||||||||||||||||||
Accrued expenses and other liabilities | ( | ||||||||||||||||||||||
Net cash provided by operating activities | |||||||||||||||||||||||
Cash flows from investing activities | |||||||||||||||||||||||
Purchase of property and equipment | ( | ( | ( | ( | |||||||||||||||||||
Purchase of marketable securities | ( | ( | ( | ( | |||||||||||||||||||
Sale of marketable securities | |||||||||||||||||||||||
Maturities of marketable securities | |||||||||||||||||||||||
Acquisitions, net of cash acquired | ( | ( | ( | ||||||||||||||||||||
Purchase of intangible assets | ( | ( | ( | ( | |||||||||||||||||||
Other investments | ( | ||||||||||||||||||||||
Net cash used in investing activities | ( | ( | ( | ( | |||||||||||||||||||
WORKIVA INC. CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (continued) | |||||||||||||||||||||||
(in thousands) (unaudited) | |||||||||||||||||||||||
Three months ended September 30, | Nine months ended September 30, | ||||||||||||||||||||||
2022 | 2021 | 2022 | 2021 | ||||||||||||||||||||
Cash flows from financing activities | |||||||||||||||||||||||
Proceeds from option exercises | |||||||||||||||||||||||
Taxes paid related to net share settlements of stock-based compensation awards | ( | ( | ( | ( | |||||||||||||||||||
Proceeds from shares issued in connection with employee stock purchase plan | |||||||||||||||||||||||
Principal payments on finance lease obligations | ( | ( | ( | ( | |||||||||||||||||||
Net cash provided by (used in) financing activities | ( | ( | ( | ||||||||||||||||||||
Effect of foreign exchange rates on cash | ( | ( | ( | ( | |||||||||||||||||||
Net increase (decrease) in cash and cash equivalents | ( | ( | ( | ||||||||||||||||||||
Cash and cash equivalents at beginning of period | |||||||||||||||||||||||
Cash and cash equivalents at end of period | $ | $ | $ | $ | |||||||||||||||||||
Supplemental cash flow disclosure | |||||||||||||||||||||||
Cash paid for interest | $ | $ | $ | $ | |||||||||||||||||||
Cash paid for income taxes, net of refunds | $ | $ | $ | $ | ( | ||||||||||||||||||
As of September 30, 2022 | As of December 31, 2021 | ||||||||||
Accrued vacation | $ | $ | |||||||||
Accrued commissions | |||||||||||
Accrued bonuses | |||||||||||
Accrued payroll | |||||||||||
Estimated health insurance claims | |||||||||||
Accrued interest | |||||||||||
ESPP employee contributions | |||||||||||
Customer deposits | |||||||||||
Operating lease liabilities | |||||||||||
Accrued other liabilities | |||||||||||
$ | $ |
Amortized Cost | Unrealized Gains | Unrealized Losses | Aggregate Fair Value | ||||||||||||||||||||
Money market funds | $ | $ | — | $ | — | $ | |||||||||||||||||
Commercial paper | |||||||||||||||||||||||
U.S. treasury debt securities | ( | ||||||||||||||||||||||
Corporate debt securities | ( | ||||||||||||||||||||||
Foreign government debt securities | ( | ||||||||||||||||||||||
$ | $ | $ | ( | $ | |||||||||||||||||||
Included in cash and cash equivalents | $ | $ | — | $ | — | $ | |||||||||||||||||
Included in marketable securities | $ | $ | $ | ( | $ |
Amortized Cost | Unrealized Gains | Unrealized Losses | Aggregate Fair Value | ||||||||||||||||||||
Money market funds | $ | $ | — | $ | — | $ | |||||||||||||||||
Commercial paper | |||||||||||||||||||||||
U.S. treasury debt securities | ( | ||||||||||||||||||||||
Corporate debt securities | ( | ||||||||||||||||||||||
Foreign government debt securities | |||||||||||||||||||||||
$ | $ | $ | ( | $ | |||||||||||||||||||
Included in cash and cash equivalents | $ | $ | — | $ | — | $ | |||||||||||||||||
Included in marketable securities | $ | $ | $ | ( | $ |
As of September 30, 2022 | |||||
Due within one year | $ | ||||
Due in one to two years | |||||
Due in three to five years | |||||
$ |
As of September 30, 2022 | |||||||||||||||||||||||
Less than 12 months | 12 months or greater | ||||||||||||||||||||||
Fair Value | Unrealized Loss | Fair Value | Unrealized Loss | ||||||||||||||||||||
U.S. treasury debt securities | $ | $ | ( | $ | $ | ( | |||||||||||||||||
Corporate debt securities | ( | ( | |||||||||||||||||||||
Foreign government debt securities | ( | ||||||||||||||||||||||
Total | $ | $ | ( | $ | $ | ( |
Fair Value Measurements as of September 30, 2022 | Fair Value Measurements as of December 31, 2021 | |||||||||||||||||||||||||||||||||||||
Description | Total | Level 1 | Level 2 | Total | Level 1 | Level 2 | ||||||||||||||||||||||||||||||||
Money market funds | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||||||||||||||
Commercial paper | ||||||||||||||||||||||||||||||||||||||
U.S. treasury debt securities | ||||||||||||||||||||||||||||||||||||||
Corporate debt securities | ||||||||||||||||||||||||||||||||||||||
Foreign government debt securities | ||||||||||||||||||||||||||||||||||||||
$ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||||||
Included in cash and cash equivalents | $ | $ | ||||||||||||||||||||||||||||||||||||
Included in marketable securities | $ | $ |
September 30, 2022 | December 31, 2021 | ||||||||||
Liability component: | |||||||||||
Principal | $ | $ | |||||||||
Unamortized discount | ( | ||||||||||
Unamortized issuance costs | ( | ( | |||||||||
Net carrying amount | $ | $ | |||||||||
Equity component, net of purchase discounts and issuance costs | $ | — | $ |
Three months ended September 30, | Nine months ended September 30, | ||||||||||||||||||||||
2022 | 2021 | 2022 | 2021 | ||||||||||||||||||||
Contractual interest expense | $ | $ | $ | $ | |||||||||||||||||||
Amortization of debt discount | |||||||||||||||||||||||
Amortization of issuance costs | |||||||||||||||||||||||
Total interest expense | $ | $ | $ | $ |
Three months ended September 30, | Nine months ended September 30, | ||||||||||||||||||||||
2022 | 2021 | 2022 | 2021 | ||||||||||||||||||||
Cost of revenue | |||||||||||||||||||||||
Subscription and support | $ | $ | $ | $ | |||||||||||||||||||
Professional services | |||||||||||||||||||||||
Operating expenses | |||||||||||||||||||||||
Research and development | |||||||||||||||||||||||
Sales and marketing | |||||||||||||||||||||||
General and administrative | |||||||||||||||||||||||
Total | $ | $ | $ | $ |
Options | Weighted- Average Exercise Price | Weighted- Average Remaining Contractual Term (Years) | |||||||||||||||
Outstanding at December 31, 2021 | $ | ||||||||||||||||
Granted | |||||||||||||||||
Forfeited | ( | ||||||||||||||||
Expired | ( | ||||||||||||||||
Exercised | ( | ||||||||||||||||
Outstanding at September 30, 2022 | $ | ||||||||||||||||
Exercisable at September 30, 2022 | $ |
Number of Shares | Weighted- Average Grant Date Fair Value | ||||||||||
Unvested at December 31, 2021 | $ | ||||||||||
Granted | |||||||||||
Forfeited | ( | ||||||||||
Vested(1) | ( | ||||||||||
Unvested at September 30, 2022 | $ |
Three months ended September 30, | Nine months ended September 30, | ||||||||||||||||||||||
2022 | 2021 | 2022 | 2021 | ||||||||||||||||||||
Industrials | $ | $ | $ | $ | |||||||||||||||||||
Diversified financials | |||||||||||||||||||||||
Information technology | |||||||||||||||||||||||
Banks | |||||||||||||||||||||||
Consumer discretionary | |||||||||||||||||||||||
Healthcare | |||||||||||||||||||||||
Insurance | |||||||||||||||||||||||
Real estate | |||||||||||||||||||||||
Energy | |||||||||||||||||||||||
Utilities | |||||||||||||||||||||||
Materials | |||||||||||||||||||||||
Other | |||||||||||||||||||||||
Total revenues | $ | $ | $ | $ |
Three months ended September 30, | Nine months ended September 30, | ||||||||||||||||||||||
2022 | 2021 | 2022 | 2021 | ||||||||||||||||||||
Subscription and support | $ | $ | $ | $ | |||||||||||||||||||
XBRL professional services | |||||||||||||||||||||||
Other services | |||||||||||||||||||||||
Total revenues | $ | $ | $ | $ |
Three months ended | |||||||||||||||||||||||
September 30, 2022 | September 30, 2021 | ||||||||||||||||||||||
Class A | Class B | Class A | Class B | ||||||||||||||||||||
Numerator | |||||||||||||||||||||||
Net loss | $ | ( | $ | ( | $ | ( | $ | ( | |||||||||||||||
Denominator | |||||||||||||||||||||||
Weighted-average common shares outstanding - basic and diluted | |||||||||||||||||||||||
Basic and diluted net loss per share | $ | ( | $ | ( | $ | ( | $ | ( |
Nine months ended | |||||||||||||||||||||||
September 30, 2022 | September 30, 2021 | ||||||||||||||||||||||
Class A | Class B | Class A | Class B | ||||||||||||||||||||
Numerator | |||||||||||||||||||||||
Net loss | $ | ( | $ | ( | $ | ( | $ | ( | |||||||||||||||
Denominator | |||||||||||||||||||||||
Weighted-average common shares outstanding - basic and diluted | |||||||||||||||||||||||
Basic and diluted net loss per share | $ | ( | $ | ( | $ | ( | $ | ( |
As of | |||||||||||
September 30, 2022 | September 30, 2021 | ||||||||||
Shares subject to outstanding common stock options | |||||||||||
Shares subject to unvested restricted stock units | |||||||||||
Shares issuable pursuant to the ESPP |
Cash consideration | $ | ||||
Total consideration | $ | ||||
Cash | $ | ||||
Accounts receivable, net | |||||
Intangible assets | |||||
Goodwill | |||||
Other assets | |||||
Accounts payable | ( | ||||
Accrued liabilities | ( | ||||
Deferred revenue | ( | ||||
Other liabilities | ( | ||||
Fair value of assets and liabilities | $ |
As of September 30, 2022 | As of December 31, 2021 | ||||||||||||||||||||||||||||||||||||||||
Weighted Average Useful Life (Years) | Gross Carrying Amount | Accumulated Amortization | Net Carrying Amount | Gross Carrying Amount | Accumulated Amortization | Net Carrying Amount | |||||||||||||||||||||||||||||||||||
Acquired technology | $ | $ | ( | $ | $ | $ | ( | $ | |||||||||||||||||||||||||||||||||
Acquired customer-related | ( | ( | |||||||||||||||||||||||||||||||||||||||
Acquired trade names | ( | ( | |||||||||||||||||||||||||||||||||||||||
Patents | ( | ( | |||||||||||||||||||||||||||||||||||||||
Total | $ | $ | ( | $ | $ | $ | ( | $ |
Remainder of 2022 | $ | ||||
2023 | |||||
2024 | |||||
2025 | |||||
2026 | |||||
2027 | |||||
Thereafter | |||||
Total expected amortization expense | $ |
December 31, 2021 | $ | ||||
Acquisition | |||||
Foreign currency translation adjustments | ( | ||||
September 30, 2022 | $ |
Three months ended September 30, | Nine months ended September 30, | ||||||||||||||||||||||
2022 | 2021 | 2022 | 2021 | ||||||||||||||||||||
(dollars in thousands) | |||||||||||||||||||||||
Financial metrics | |||||||||||||||||||||||
Total revenue | $ | 132,849 | $ | 112,693 | $ | 394,072 | $ | 322,502 | |||||||||||||||
Percentage increase in total revenue | 17.9 | % | 27.9 | % | 22.2 | % | 25.1 | % | |||||||||||||||
Subscription and support revenue | $ | 118,591 | $ | 98,912 | $ | 339,064 | $ | 275,053 | |||||||||||||||
Percentage increase in subscription and support revenue | 19.9 | % | 30.4 | % | 23.3 | % | 28.0 | % | |||||||||||||||
Subscription and support as a percent of total revenue | 89.3 | % | 87.8 | % | 86.0 | % | 85.3 | % |
As of September 30, | |||||||||||
2022 | 2021 | ||||||||||
Operating metrics | |||||||||||
Number of customers | 5,541 | 4,146 | |||||||||
Subscription and support revenue retention rate | 98.1% | 96.5% | |||||||||
Subscription and support revenue retention rate including add-ons | 107.0% | 111.1% | |||||||||
Number of customers with annual contract value $100k+ | 1,257 | 1,043 | |||||||||
Number of customers with annual contract value $150k+ | 676 | 541 | |||||||||
Number of customers with annual contract value $300k+ | 214 | 177 |
Three months ended September 30, | Nine months ended September 30, | ||||||||||||||||||||||
2022 | 2021 | 2022 | 2021 | ||||||||||||||||||||
(in thousands) | |||||||||||||||||||||||
Revenue | |||||||||||||||||||||||
Subscription and support | $ | 118,591 | $ | 98,912 | $ | 339,064 | $ | 275,053 | |||||||||||||||
Professional services | 14,258 | 13,781 | 55,008 | 47,449 | |||||||||||||||||||
Total revenue | 132,849 | 112,693 | 394,072 | 322,502 | |||||||||||||||||||
Cost of revenue | |||||||||||||||||||||||
Subscription and support(1) | 19,235 | 15,606 | 56,683 | 42,906 | |||||||||||||||||||
Professional services(1) | 13,184 | 10,799 | 38,846 | 31,766 | |||||||||||||||||||
Total cost of revenue | 32,419 | 26,405 | 95,529 | 74,672 | |||||||||||||||||||
Gross profit | 100,430 | 86,288 | 298,543 | 247,830 | |||||||||||||||||||
Operating expenses | |||||||||||||||||||||||
Research and development(1) | 38,583 | 29,841 | 113,644 | 84,305 | |||||||||||||||||||
Sales and marketing(1) | 64,560 | 46,026 | 184,879 | 128,586 | |||||||||||||||||||
General and administrative(1) | 27,405 | 18,390 | 75,507 | 52,795 | |||||||||||||||||||
Total operating expenses | 130,548 | 94,257 | 374,030 | 265,686 | |||||||||||||||||||
Loss from operations | (30,118) | (7,969) | (75,487) | (17,856) | |||||||||||||||||||
Interest income | 1,440 | 219 | 2,325 | 834 | |||||||||||||||||||
Interest expense | (1,510) | (3,508) | (4,540) | (10,495) | |||||||||||||||||||
Other income, net | 964 | 3,805 | 1,467 | 3,265 | |||||||||||||||||||
Loss before provision for income taxes | (29,224) | (7,453) | (76,235) | (24,252) | |||||||||||||||||||
Provision (benefit) for income taxes | 467 | (885) | 810 | (846) | |||||||||||||||||||
Net loss | $ | (29,691) | $ | (6,568) | $ | (77,045) | $ | (23,406) |
Three months ended September 30, | Nine months ended September 30, | ||||||||||||||||||||||
2022 | 2021 | 2022 | 2021 | ||||||||||||||||||||
(in thousands) | |||||||||||||||||||||||
Cost of revenue | |||||||||||||||||||||||
Subscription and support | $ | 855 | $ | 731 | $ | 2,557 | $ | 1,824 | |||||||||||||||
Professional services | 533 | 407 | 1,578 | 1,183 | |||||||||||||||||||
Operating expenses | |||||||||||||||||||||||
Research and development | 3,399 | 2,347 | 9,272 | 7,195 | |||||||||||||||||||
Sales and marketing | 4,657 | 4,095 | 14,388 | 10,481 | |||||||||||||||||||
General and administrative | 10,853 | 5,107 | 26,258 | 14,679 | |||||||||||||||||||
Total stock-based compensation expense | $ | 20,297 | $ | 12,687 | $ | 54,053 | $ | 35,362 |
Three months ended September 30, | Nine months ended September 30, | ||||||||||||||||||||||
2022 | 2021 | 2022 | 2021 | ||||||||||||||||||||
Revenue | |||||||||||||||||||||||
Subscription and support | 89.3 | % | 87.8 | % | 86.0 | % | 85.3 | % | |||||||||||||||
Professional services | 10.7 | 12.2 | 14.0 | 14.7 | |||||||||||||||||||
Total revenue | 100.0 | 100.0 | 100.0 | 100.0 | |||||||||||||||||||
Cost of revenue | |||||||||||||||||||||||
Subscription and support | 14.5 | 13.8 | 14.4 | 13.3 | |||||||||||||||||||
Professional services | 9.9 | 9.6 | 9.9 | 9.8 | |||||||||||||||||||
Total cost of revenue | 24.4 | 23.4 | 24.3 | 23.1 | |||||||||||||||||||
Gross profit | 75.6 | 76.6 | 75.7 | 76.9 | |||||||||||||||||||
Operating expenses | |||||||||||||||||||||||
Research and development | 29.0 | 26.5 | 28.8 | 26.1 | |||||||||||||||||||
Sales and marketing | 48.6 | 40.8 | 46.9 | 39.9 | |||||||||||||||||||
General and administrative | 20.6 | 16.3 | 19.2 | 16.4 | |||||||||||||||||||
Total operating expenses | 98.2 | 83.6 | 94.9 | 82.4 | |||||||||||||||||||
Loss from operations | (22.6) | (7.0) | (19.2) | (5.5) | |||||||||||||||||||
Interest income | 1.1 | 0.2 | 0.6 | 0.3 | |||||||||||||||||||
Interest expense | (1.1) | (3.1) | (1.2) | (3.3) | |||||||||||||||||||
Other income, net | 0.7 | 3.4 | 0.4 | 1.0 | |||||||||||||||||||
Loss before provision for income taxes | (21.9) | (6.5) | (19.4) | (7.5) | |||||||||||||||||||
Provision (benefit) for income taxes | 0.4 | (0.8) | 0.2 | (0.3) | |||||||||||||||||||
Net loss | (22.3) | % | (5.7) | % | (19.6) | % | (7.2) | % |
Three months ended September 30, | Nine months ended September 30, | ||||||||||||||||||||||||||||||||||
2022 | 2021 | % Change | 2022 | 2021 | % Change | ||||||||||||||||||||||||||||||
(dollars in thousands) | |||||||||||||||||||||||||||||||||||
Revenue | |||||||||||||||||||||||||||||||||||
Subscription and support | $ | 118,591 | $ | 98,912 | 19.9% | $ | 339,064 | $ | 275,053 | 23.3% | |||||||||||||||||||||||||
Professional services | 14,258 | 13,781 | 3.5% | 55,008 | 47,449 | 15.9% | |||||||||||||||||||||||||||||
Total revenue | $ | 132,849 | $ | 112,693 | 17.9% | $ | 394,072 | $ | 322,502 | 22.2% |
Three months ended September 30, | Nine months ended September 30, | ||||||||||||||||||||||||||||||||||
2022 | 2021 | % Change | 2022 | 2021 | % Change | ||||||||||||||||||||||||||||||
(dollars in thousands) | |||||||||||||||||||||||||||||||||||
Cost of revenue | |||||||||||||||||||||||||||||||||||
Subscription and support | $ | 19,235 | $ | 15,606 | 23.3% | $ | 56,683 | $ | 42,906 | 32.1% | |||||||||||||||||||||||||
Professional services | 13,184 | 10,799 | 22.1% | 38,846 | 31,766 | 22.3% | |||||||||||||||||||||||||||||
Total cost of revenue | $ | 32,419 | $ | 26,405 | 22.8% | $ | 95,529 | $ | 74,672 | 27.9% |
Three months ended September 30, | Nine months ended September 30, | ||||||||||||||||||||||||||||||||||
2022 | 2021 | % Change | 2022 | 2021 | % Change | ||||||||||||||||||||||||||||||
(dollars in thousands) | |||||||||||||||||||||||||||||||||||
Operating expenses | |||||||||||||||||||||||||||||||||||
Research and development | $ | 38,583 | $ | 29,841 | 29.3% | $ | 113,644 | $ | 84,305 | 34.8% | |||||||||||||||||||||||||
Sales and marketing | 64,560 | 46,026 | 40.3% | 184,879 | 128,586 | 43.8% | |||||||||||||||||||||||||||||
General and administrative | 27,405 | 18,390 | 49.0% | 75,507 | 52,795 | 43.0% | |||||||||||||||||||||||||||||
Total operating expenses | $ | 130,548 | $ | 94,257 | 38.5% | $ | 374,030 | $ | 265,686 | 40.8% |
Three months ended September 30, | Nine months ended September 30, | ||||||||||||||||||||||||||||||||||
2022 | 2021 | % Change | 2022 | 2021 | % Change | ||||||||||||||||||||||||||||||
(dollars in thousands) | |||||||||||||||||||||||||||||||||||
Interest income | $ | 1,440 | $ | 219 | 557.5% | $ | 2,325 | $ | 834 | 178.8% | |||||||||||||||||||||||||
Interest expense | (1,510) | (3,508) | (57.0)% | (4,540) | (10,495) | (56.7)% | |||||||||||||||||||||||||||||
Other income, net | 964 | 3,805 | * | 1,467 | 3,265 | * |
Three months ended September 30, | Nine months ended September 30, | ||||||||||||||||||||||
2022 | 2021 | 2022 | 2021 | ||||||||||||||||||||
(in thousands) | |||||||||||||||||||||||
Cash flow provided by operating activities | $ | 4,855 | $ | 16,313 | $ | 12,602 | $ | 40,576 | |||||||||||||||
Cash flow used in investing activities | (2,632) | (38,536) | (79,246) | (64,899) | |||||||||||||||||||
Cash flow provided by (used in) financing activities | 3,471 | (8,441) | (143) | (7,304) | |||||||||||||||||||
Net increase (decrease) in cash and cash equivalents, net of impact of exchange rates | $ | 3,244 | $ | (31,069) | $ | (70,889) | $ | (31,706) |
Date | Total Number of Shares Purchased (1) | Average Price Paid Per Share | Total Number of Shares Purchased as Part of Publicly Announced Program | Maximum Number (or Approximate Dollar Value) of Shares that May Yet Be Purchased Under Program | ||||||||||||||||||||||
July 2022 | — | $ | — | — | — | |||||||||||||||||||||
August 2022 | 574 | 67.00 | — | — | ||||||||||||||||||||||
September 2022 | 10,775 | 64.92 | — | — | ||||||||||||||||||||||
Total | 11,349 | $ | 65.03 | — | — |
Exhibit Number | Description | |||||||
3.1 | ||||||||
3.2 | ||||||||
10.1 | Separation Agreement and Release, dated September 1, 2022, between the Company and Mithun Banarjee, incorporated by reference from Exhibit 10.1 to the Company's Current Report on Form 8-K filed on September 6, 2022. | |||||||
10.2 | Form of Restricted Stock Unit Agreement (Non-Employee Directors) incorporated by reference from Exhibit 10.2 to the Company's Current Report on Form 8-K filed on June 3, 2022. | |||||||
10.3 | Form of Restricted Stock Unit Agreement (Executive Employees) incorporated by reference from Exhibit 10.2 to the Company's Current Report on Form 8-K filed on June 3, 2022. | |||||||
10.4 | Form of Performance Restricted Stock Unit Agreement (Executive Employees) incorporated by reference from Exhibit 10.2 to the Company's Current Report on Form 8-K filed on June 3, 2022. | |||||||
31.1 | ||||||||
31.2 | ||||||||
32.1 | ||||||||
32.2 | ||||||||
101 | The following financial information from Workiva Inc.'s Quarterly Report on Form 10-Q for the quarter ended September 30, 2022 formatted in Inline XBRL (Extensible Business Reporting Language) includes: (i) the Condensed Consolidated Balance Sheets, (ii) the Condensed Consolidated Statements of Operations, (iii) the Condensed Consolidated Statements of Comprehensive Loss, (iv) the Consolidated Statements of Changes in Stockholders Equity, (v) the Condensed Consolidated Statements of Cash Flows, and (vi) Notes to the Condensed Consolidated Financial Statements. | |||||||
104 | Cover Page Interactive Data File (formatted as Inline XBRL and contained in Exhibit 101) | |||||||
WORKIVA INC. | |||||
By: | /s/ Martin J. Vanderploeg, Ph.D. | ||||
Name: | Martin J. Vanderploeg, Ph.D. | ||||
Title: | Chief Executive Officer | ||||
By: | /s/ Jill Klindt | ||||
Name: | Jill Klindt | ||||
Title: | Senior Vice President, Chief Financial Officer, Chief Accounting Officer and Treasurer | ||||
Page | ||||||||
November 2, 2022 | /s/ Martin J. Vanderploeg, Ph.D. Martin J. Vanderploeg, Ph.D. Chief Executive Officer (Principal Executive Officer) |
November 2, 2022 | /s/ Jill Klindt Jill Klindt Senior Vice President, Chief Financial Officer, Chief Accounting Officer and Treasurer (Principal Financial Officer) |
November 2, 2022 | /s/ Martin J. Vanderploeg, Ph.D. Martin J. Vanderploeg, Ph.D. Chief Executive Officer (Principal Executive Officer) |
November 2, 2022 | /s/ Jill Klindt Jill Klindt Senior Vice President, Chief Financial Officer, Chief Accounting Officer and Treasurer (Principal Financial Officer) |
CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands |
Sep. 30, 2022 |
Dec. 31, 2021 |
---|---|---|
Allowance for doubtful accounts | $ 664 | $ 591 |
Preferred stock, par value (in dollars per share) | $ 0.001 | $ 0.001 |
Preferred stock, shares authorized (in shares) | 100,000,000 | 100,000,000 |
Preferred stock, shares issued (in shares) | 0 | 0 |
Preferred stock, shares outstanding (in shares) | 0 | 0 |
Class A Common Stock | ||
Common stock, par value (in dollars per share) | $ 0.001 | $ 0.001 |
Common stock, share authorized (in shares) | 1,000,000,000 | 1,000,000,000 |
Common stock, shares issued (in shares) | 48,604,656 | 47,293,775 |
Common stock, shares outstanding (in shares) | 48,604,656 | 47,293,775 |
Class B Common Stock | ||
Common stock, par value (in dollars per share) | $ 0.001 | $ 0.001 |
Common stock, share authorized (in shares) | 500,000,000 | 500,000,000 |
Common stock, shares issued (in shares) | 3,890,583 | 4,150,583 |
Common stock, shares outstanding (in shares) | 3,890,583 | 4,150,583 |
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) $ in Thousands |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2022 |
Sep. 30, 2021 |
Sep. 30, 2022 |
Sep. 30, 2021 |
|
Revenue | ||||
Total revenue | $ 132,849 | $ 112,693 | $ 394,072 | $ 322,502 |
Cost of revenue | ||||
Total cost of revenue | 32,419 | 26,405 | 95,529 | 74,672 |
Gross profit | 100,430 | 86,288 | 298,543 | 247,830 |
Operating expenses | ||||
Research and development | 38,583 | 29,841 | 113,644 | 84,305 |
Sales and marketing | 64,560 | 46,026 | 184,879 | 128,586 |
General and administrative | 27,405 | 18,390 | 75,507 | 52,795 |
Total operating expenses | 130,548 | 94,257 | 374,030 | 265,686 |
Loss from operations | (30,118) | (7,969) | (75,487) | (17,856) |
Interest income | 1,440 | 219 | 2,325 | 834 |
Interest expense | (1,510) | (3,508) | (4,540) | (10,495) |
Other income, net | 964 | 3,805 | 1,467 | 3,265 |
Loss before provision (benefit) for income taxes | (29,224) | (7,453) | (76,235) | (24,252) |
Provision (benefit) for income taxes | 467 | (885) | 810 | (846) |
Net loss | $ (29,691) | $ (6,568) | $ (77,045) | $ (23,406) |
Net loss per common share: | ||||
Basic (in dollars per share) | $ (0.56) | $ (0.13) | $ (1.46) | $ (0.46) |
Diluted (in dollars per share) | $ (0.56) | $ (0.13) | $ (1.46) | $ (0.46) |
Weighted-average common shares outstanding - basic (in shares) | 53,081,564 | 51,441,688 | 52,844,532 | 50,921,612 |
Weighted-average common shares outstanding - diluted (in shares) | 53,081,564 | 51,441,688 | 52,844,532 | 50,921,612 |
Subscription and support | ||||
Revenue | ||||
Total revenue | $ 118,591 | $ 98,912 | $ 339,064 | $ 275,053 |
Cost of revenue | ||||
Total cost of revenue | 19,235 | 15,606 | 56,683 | 42,906 |
Professional services | ||||
Revenue | ||||
Total revenue | 14,258 | 13,781 | 55,008 | 47,449 |
Cost of revenue | ||||
Total cost of revenue | $ 13,184 | $ 10,799 | $ 38,846 | $ 31,766 |
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS - USD ($) $ in Thousands |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2022 |
Sep. 30, 2021 |
Sep. 30, 2022 |
Sep. 30, 2021 |
|
Statement of Comprehensive Income [Abstract] | ||||
Net loss | $ (29,691) | $ (6,568) | $ (77,045) | $ (23,406) |
Other comprehensive (loss) income | ||||
Foreign currency translation adjustment | (7,256) | 22 | (13,344) | 226 |
Unrealized loss on available-for-sale securities | (619) | (18) | (3,033) | (248) |
Other comprehensive (loss) income | (7,875) | 4 | (16,377) | (22) |
Comprehensive loss | $ (37,566) | $ (6,564) | $ (93,422) | $ (23,428) |
Organization and Significant Accounting Policies |
9 Months Ended |
---|---|
Sep. 30, 2022 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Organization and Significant Accounting Policies | Organization and Significant Accounting Policies Organization Workiva Inc., a Delaware corporation, and its wholly-owned subsidiaries (the “Company” or “we” or “us”) simplifies complex work for thousands of organizations worldwide. We are a leading provider of cloud-based compliance and regulatory reporting solutions that are designed to solve business challenges at the intersection of data, process and people. Our operational headquarters are located in Ames, Iowa, with additional offices located in the United States, Europe, the Asia-Pacific region and Canada. Basis of Presentation and Principles of Consolidation The financial information presented in the accompanying unaudited condensed consolidated financial statements has been prepared in accordance with U.S. generally accepted accounting principles (“U.S. GAAP”) and in accordance with rules and regulations of the U.S. Securities and Exchange Commission (“SEC”) regarding interim financial reporting. The condensed consolidated balance sheet data as of December 31, 2021 was derived from audited financial statements, but does not include all disclosures required by U.S. GAAP. In the opinion of management, the accompanying unaudited condensed consolidated financial statements reflect all adjustments, consisting primarily of normal recurring accruals, necessary for a fair presentation of our financial position and results of operations. The operating results for the three and nine months ended September 30, 2022 are not necessarily indicative of the results expected for the full year ending December 31, 2022. Seasonality has affected our revenue, expenses and cash flows from operations. Revenue from professional services has been higher in the first quarter as many of our customers file their Form 10-K in the first calendar quarter. Our sales and marketing expense also has some degree of seasonality. With the exception of September 2020 and September 2021 when we transitioned to a virtual event, sales and marketing expense has historically been higher in the third quarter due to our annual user conference in September, which was held as a hybrid in-person/virtual event in 2022. In addition, the timing of the payments of cash bonuses to employees during the first and fourth calendar quarters may result in some seasonality in operating cash flow. The condensed consolidated financial information should be read in conjunction with “Management’s Discussion and Analysis of Financial Condition and Results of Operations” contained in this report and the consolidated financial statements and notes included in the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2021 filed with the SEC on February 22, 2022. The unaudited condensed consolidated financial statements include the accounts of Workiva Inc. and its wholly-owned subsidiaries. All intercompany accounts and transactions have been eliminated in consolidation. Use of Estimates The preparation of consolidated financial statements in conformity with accounting principles generally accepted in the United States requires us to make estimates and assumptions that affect the amounts reported in the consolidated financial statements and accompanying notes. We base our estimates on historical experience and various other assumptions believed to be reasonable. These estimates include, but are not limited to, the allowance for doubtful accounts, the determination of the relative selling prices of our services, the measurement of material rights, health insurance claims incurred but not yet reported, valuation of available-for-sale marketable securities, useful lives of deferred contract costs, intangible assets and property and equipment, goodwill, income taxes, discount rates used in the valuation of right-of-use assets and lease liabilities, and certain assumptions used in the valuation of equity awards. While these estimates are based on our best knowledge of current events and actions that may affect us in the future, actual results may differ materially from these estimates. Recently Adopted Accounting Pronouncements In October 2021, the Financial Accounting Standards Board (“FASB”) issued Accounting Standard Update (“ASU”) 2021-08, Business Combinations (Topic 805): Accounting for Contract Assets and Contract Liabilities from Contracts with Customers, which amends the accounting related to contract assets and liabilities acquired in business combinations. This ASU requires that entities recognize and measure contract assets and contract liabilities acquired in a business combination in accordance with ASC 606, Revenue from Contracts with Customers. This update is effective for fiscal years beginning after December 15, 2022 with early adoption permitted. We adopted this standard on January 1, 2022. The adoption of this standard did not have a material impact on our consolidated financial statements. In August 2020, the FASB issued , Accounting for Convertible Instruments and Contracts in an Entity's Own Equity. Under ASU 2020-06, embedded conversion features are no longer separated from the host contract for convertible instruments with conversion features that are not required to be accounted for as derivatives, or that do not result in substantial premiums accounted for as paid-in capital. The convertible debt instruments will now be accounted for as a single liability measured at amortized cost. This results in the interest expense recognized for convertible debt instruments to be closer to the coupon interest rate. The new guidance also requires the if-converted method to be applied for all convertible instruments when calculating earnings per share. The new standard is effective for interim and annual periods beginning after December 15, 2021 and can be adopted on either a modified retrospective or full retrospective basis. We adopted this standard on January 1, 2022 using the modified retrospective method under which financial results reported in prior periods were not adjusted. Adoption of the new standard resulted in a decrease to accumulated deficit of $18.3 million, a decrease to additional paid-in capital of $58.6 million, and an increase to convertible senior notes, non-current of $40.3 million on the consolidated balance sheet. See Note 5 to the condensed consolidated financial statements for more information. New Accounting Pronouncements Not Yet Adopted None.
|
Supplemental Consolidated Balance Sheet Information |
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Sep. 30, 2022 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Payables and Accruals [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Supplemental Consolidated Balance Sheet Information | Supplemental Consolidated Balance Sheet Information Accrued Expenses and Other Current Liabilities Accrued expenses and other current liabilities consisted of the following (in thousands):
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Cash Equivalents and Marketable Securities |
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Investments, Debt and Equity Securities [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Cash Equivalents and Marketable Securities | Cash Equivalents and Marketable Securities At September 30, 2022, cash equivalents and marketable securities consisted of the following (in thousands):
At December 31, 2021, cash equivalents and marketable securities consisted of the following (in thousands):
The contractual maturities of the investments classified as marketable securities are as follows (in thousands):
The following table presents gross unrealized losses and fair values for those cash equivalents and marketable securities that were in an unrealized loss position as of September 30, 2022, aggregated by investment category and the length of time that individual securities have been in a continuous loss position (in thousands):
We do not believe the unrealized losses represent credit losses based on our evaluation of available evidence as of September 30, 2022, which includes an assessment of whether it is more likely than not we will be required to sell the investment before recovery of the investment's amortized cost basis.
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Fair Value Measurements |
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Fair Value Disclosures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value Measurements | Fair Value Measurements We determine the fair values of our financial instruments based on the fair value hierarchy, which requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The fair value assumes that the transaction to sell the asset or transfer the liability occurs in the principal or most advantageous market for the asset or liability and establishes that the fair value of an asset or liability shall be determined based on the assumptions that market participants would use in pricing the asset or liability. The classification of a financial asset or liability within the hierarchy is based upon the lowest level input that is significant to the fair value measurement. The fair value hierarchy prioritizes the inputs into three levels that may be used to measure fair value: Level 1 - Inputs are unadjusted quoted prices in active markets for identical assets or liabilities. Level 2 - Inputs are quoted prices for similar assets and liabilities in active markets or inputs that are observable for the asset or liability, either directly or indirectly through market corroboration, for substantially the full term of the financial instrument. Level 3 - Inputs are unobservable inputs based on our assumptions. Financial Assets Cash equivalents primarily consist of AAA-rated money market funds with overnight liquidity and no stated maturities. We classified cash equivalents as Level 1 due to the short-term nature of these instruments and measured the fair value based on quoted prices in active markets for identical assets. When available, our marketable securities are valued using quoted prices for identical instruments in active markets. If we are unable to value our marketable securities using quoted prices for identical instruments in active markets, we value our investments using broker reports that utilize quoted market prices for comparable instruments. We validate, on a sample basis, the derived prices provided by the brokers by comparing their assessment of the fair values of our investments against the fair values of the portfolio balances of another third-party professional pricing service. As of September 30, 2022, all of our marketable securities were valued using quoted prices for comparable instruments in active markets and are classified as Level 2. Based on our valuation of our money market funds and marketable securities, we concluded that they are classified in either Level 1 or Level 2, and we have no financial assets measured using Level 3 inputs on a recurring basis. The following table presents information about our assets that are measured at fair value on a recurring basis using the above input categories (in thousands):
We completed an acquisition on April 1, 2022. The values of certain assets acquired were recorded at fair value using Level 3 inputs. The majority of the related current assets acquired and liabilities assumed were recorded at their carrying values as of the date of acquisition, as their carrying values approximated their fair values due to their short-term nature. The fair values of definite-lived intangible assets acquired in the acquisition were estimated primarily based on the income approach. The income approach estimates fair value based on the present value of the cash flows that the assets are expected to generate in the future. We developed internal estimates for the expected cash flows and discount rates used in the present value calculations. Convertible Senior Notes As of September 30, 2022, the fair value of our convertible senior notes was $405.0 million. The fair value was determined based on the quoted price of the convertible senior notes in an over-the-counter market on the last trading day of the reporting period and has been classified as Level 2 in the fair value hierarchy. See Note 5 to the condensed consolidated financial statements for more information.
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Convertible Senior Notes |
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Convertible Senior Notes | Convertible Senior Notes In August 2019, we issued $345.0 million aggregate principal amount of 1.125% convertible senior notes due 2026 in a private placement to qualified institutional buyers pursuant to Rule 144A under the Securities Act of 1933, as amended, including the exercise in full by the initial purchasers of their option to purchase an additional $45.0 million principal amount (the “Notes”). The Notes were issued pursuant to an indenture and are senior, unsecured obligations of the Company. The Notes bear interest at a fixed rate of 1.125% per annum, payable semi-annually in arrears on February 15 and August 15 of each year, commencing on February 15, 2020. Proceeds from the issuance of the Notes totaled $335.9 million, net of initial purchaser discounts and issuance costs. The initial conversion rate is 12.4756 shares of our common stock per $1,000 principal amount of Notes, which is equivalent to an initial conversion price of approximately $80.16 per share, subject to adjustment upon the occurrence of specified events. Holders of the Notes may convert all or a portion of their Notes prior to the close of business on May 15, 2026, in multiples of $1,000 principal amount, only under the following circumstances: •during any calendar quarter commencing after the calendar quarter ending on September 30, 2019 (and only during such calendar quarter), if the last reported sale price of our Class A common stock, par value $0.001 per share (which we refer to in this offering memorandum as our “Class A common stock”), for at least 20 trading days (whether or not consecutive) during a period of 30 consecutive trading days ending on, and including, the last trading day of the immediately preceding calendar quarter is greater than or equal to 130% of the conversion price on each applicable trading day; •during the five consecutive business day period immediately following any ten consecutive trading day period (the “measurement period”) in which the trading price (as defined below) per $1,000 principal amount of Notes for each trading day of the measurement period was less than 98% of the product of the last reported sale price of our Class A common stock and the conversion rate on each such trading day; •if we call any or all of the Notes for redemption, at any time prior to the close of business on the scheduled trading day immediately preceding the redemption date; or •upon the occurrence of certain specified corporate events as set forth in the indenture. On or after May 16, 2026, holders of the Notes may convert their Notes at any time until the close of business on the second scheduled trading day immediately preceding the maturity date of the Notes. Upon conversion, we will pay or deliver, as the case may be, cash, shares of our Class A common stock or a combination of cash and shares of our Class A common stock, at our election, in the manner and subject to the terms and conditions provided in the indenture. It is our current intent to settle conversions through a combination settlement of cash and shares of our Class A common stock. The Company may redeem for cash all or any portion of the Notes, at its option, on or after August 21, 2023, if the last reported sale price of the Company’s common stock has been at least 130% of the conversion price then in effect for at least 20 trading days (whether or not consecutive) during any 30 consecutive trading day period (including the last trading day of such period) ending on, and including, the trading day immediately preceding the date on which the Company provides notice of redemption at a redemption price equal to 100% of the principal amount of the Notes to be redeemed, plus any accrued and unpaid interest to, but excluding, the redemption date. During the third quarter of 2022 none of the conversion conditions were met and therefore the Notes are not convertible at the option of the holders. As a result, the Notes were classified as non-current liabilities on the condensed consolidated balance sheet as of September 30, 2022. As discussed in Note 1, we adopted ASU 2020‑06 on January 1, 2022 and the Notes are now accounted for as a single liability measured at amortized cost. Upon adoption, interest expense representing the amortization of the issuance costs as well as contractual interest expense is amortized to interest expense at an effective interest rate of 1.5% over the term of the notes. Prior to the adoption of ASU 2020-06, interest expense representing the amortization of the debt discount and issuance costs as well as contractual interest expense was amortized to interest expense at an effective interest rate of 4.3%. As of September 30, 2022 the if-converted value of the Notes was less than the principal amount by $10.2 million. As of September 30, 2022, the remaining life of the Notes is approximately 3.8 years. The net carrying amount of the liability and equity components of the Notes was as follows (in thousands):
Interest expense related to the Notes is as follows (in thousands):
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Commitments and Contingencies |
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Sep. 30, 2022 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies Litigation From time to time we may become involved in legal proceedings or be subject to claims arising in the ordinary course of our business. We evaluate the development of legal matters on a regular basis and accrue a liability when we believe a loss is probable and the amount can be reasonably estimated. Although the results of litigation and claims cannot be predicted with certainty, we currently believe that the final outcome of any currently pending legal proceedings to which we are a party will not have a material adverse effect on our business, operating results, financial condition or cash flows. Regardless of the outcome, litigation can have an adverse impact on us because of defense and settlement costs, diversion of management resources and other factors.
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Stock-Based Compensation |
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Stock-Based Compensation | Stock-Based Compensation We grant stock-based incentive awards to attract, motivate and retain qualified employees, non-employee directors and consultants, and to align their financial interests with those of our stockholders. We utilize stock-based compensation in the form of restricted stock units, performance restricted stock units, options to purchase Class A common stock and Employee Stock Purchase Plan ("ESPP") purchase rights. Prior to our corporate conversion in December 2014, awards were provided under the 2009 Unit Incentive Plan (“the 2009 Plan”). The 2009 Plan was amended to provide that no further awards will be issued thereunder, and our board of directors and stockholders adopted and approved our 2014 Equity Incentive Plan (“the 2014 Plan” and, together with the 2009 Plan, “the Plans”). As of September 30, 2022, awards outstanding under the 2009 Plan consisted of stock options, and awards outstanding under the 2014 Plan consisted of stock options, restricted stock units and performance restricted stock units. On June 1, 2022, stockholders approved an amendment to the 2014 Plan that increased the number of shares available for grant by 3,000,000. As of September 30, 2022, 3,339,296 shares of Class A common stock were available for grant under the 2014 Plan. Stock-Based Compensation Expense Stock-based compensation expense was recorded in the following cost and expense categories consistent with the respective employee or service provider’s related cash compensation (in thousands):
Stock Options The following table summarizes the option activity under the Plans for the nine months ended September 30, 2022:
Restricted Stock Units The following table summarizes the restricted stock unit activity under the Plans for the nine months ended September 30, 2022:
(1) During the nine months ended September 30, 2022, in accordance with our Nonqualified Deferred Compensation Plan, recipients of 18,491 shares had elected to defer settlement of the vested restricted stock units and 22,006 shares were released from deferral. During the first quarter of 2022, performance restricted stock units (“PSUs”) were granted for the first time to our executives under the 2014 Plan. The fair value of a PSU is determined using the closing price of our common stock on the grant date. Each PSU grant vests in annual tranches over a three-year service period. Total units earned for grants made in 2022 may vary between 0% and 200% of the units granted based on the attainment of company-specific performance targets during the related three-year period and upon continued service. Stock-based compensation expense for PSUs is recognized on a graded-vesting basis if it is probable that the performance conditions will be achieved. Adjustments to compensation expense are made each period based on changes in our estimate of the number of PSUs that are probable of vesting. PSUs will vest with continued service and upon achievement of the relevant performance targets. The recipient of a restricted stock unit award under the 2014 Plan will have no rights as a stockholder until share certificates are issued by us. At the Annual Meeting of Stockholders on June 1, 2022, our stockholders approved the amendment and restatement of the Workiva Inc. Amended and Restated 2014 Equity Incentive Plan which prohibits payment of dividends or dividend equivalents on full-value awards prior to the vesting of such award. Additionally, until the shares are issued, they have no voting rights and may not be bought or sold. Employee Stock Purchase Plan During the nine months ended September 30, 2022, 131,467 shares of common stock were purchased under the ESPP at a weighted-average price of $70.41 per share, resulting in cash proceeds of $9.3 million. Compensation expense associated with ESPP purchase rights is recognized on a straight-line basis over the vesting period. At September 30, 2022, there was approximately $1.3 million of total unrecognized compensation expense related to the ESPP, which is expected to be recognized over a weighted-average period of 0.3 years.
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Revenue Recognition |
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Revenue from Contract with Customer [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Revenue Recognition | Revenue Recognition Disaggregation of Revenue The following table presents our revenues disaggregated by industry (in thousands).
Revenues by industry are derived from leading software providers. In the fourth quarter of 2021 we refined our policy surrounding customer industry categorization and accordingly the prior year amounts have been updated to reflect these refinements. The following table presents our revenues disaggregated by type of good or service (in thousands):
Deferred Revenue We recognized $112.2 million and $91.3 million of revenue during the three months ended September 30, 2022 and 2021, respectively, that was included in the deferred revenue balances at the beginning of the respective periods. We recognized $262.3 million and $198.7 million of revenue during the nine months ended September 30, 2022 and 2021, respectively, that was included in the deferred revenue balances at the beginning of the respective periods. Transaction Price Allocated to the Remaining Performance Obligations As of September 30, 2022, we expect revenue of approximately $668.3 million to be recognized from remaining performance obligations for subscription contracts. We expect to recognize approximately $376.2 million of these remaining performance obligations over the next 12 months with the balance substantially recognized in the 24 months thereafter.
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Net Loss Per Share |
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Earnings Per Share [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net Loss Per Share | Net Loss Per Share Basic net loss per share is computed by dividing the net loss by the weighted-average number of shares of common stock outstanding during the period. Diluted net loss per share is computed by giving effect to all potential shares of common stock, including convertible senior notes, outstanding stock options, stock related to unvested restricted stock units, and common stock issuable pursuant to the ESPP to the extent dilutive. Basic and diluted net loss per share was the same for each period presented, as the inclusion of all potential common shares outstanding would have been anti-dilutive. The net loss per share is allocated based on the participation rights of the Class A and Class B common shares as if the loss for the year has been distributed. As the liquidation and dividend rights are identical, the net loss is allocated on a proportionate basis. At the Annual Meeting of Stockholders on June 1, 2022, our stockholders approved the amendment and restatement of the Workiva Inc. Amended and Restated 2014 Equity Incentive Plan which prohibits payment of dividends or dividend equivalents on full-value awards prior to the vesting of such award. As such, we no longer consider unvested restricted stock granted under the 2014 Equity Incentive Plan to be participating securities. A reconciliation of the denominator used in the calculation of basic and diluted loss per share is as follows (in thousands, except share and per share data):
The anti-dilutive securities excluded from the weighted-average shares used to calculate the diluted net loss per common share were as follows:
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Acquisitions |
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Business Combination and Asset Acquisition [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Acquisitions | Acquisitions On April 1, 2022, we acquired all of the issued and outstanding equity interests in Denmark-based ParsePort ApS (“ParsePort”), a leading solution provider for the European Single Electronic Format (“ESEF”) financial reporting mandate, which complements Workiva's cloud platform, for $99.2 million net of cash acquired of $1.6 million. The purchase price has been preliminarily allocated to the assets acquired and liabilities assumed based on their estimated fair values at the date of acquisition. The fair values of assets acquired and liabilities assumed may change as the valuation of intangible assets and overall purchase price allocation is being finalized. The excess of the purchase price over the fair value of the net assets acquired was allocated to goodwill. The goodwill recognized was primarily attributable to the assembled workforce, operational synergies, and strategic benefits that are expected to be achieved and is not deductible for income tax purposes. The following table presents a preliminary allocation of the purchase price to the assets acquired and liabilities assumed at the date of acquisition (in thousands):
We incurred costs related to the acquisition of approximately $0.6 million during the nine months ended September 30, 2022. Substantially all acquisition related costs were expensed as incurred and have been recorded in general and administrative expenses in our condensed consolidated statements of operations. The amount of revenues and net loss from the acquisition included in our condensed consolidated statements of operations for the three and nine months ended September 30, 2022 were insignificant.
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Intangible Assets and Goodwill |
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Goodwill and Intangible Assets Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Intangible Assets and Goodwill | Intangible Assets and Goodwill The following table presents the components of net intangible assets (in thousands):
Amortization expense related to intangible assets was $1.5 million and $0.4 million for the three months ended September 30, 2022 and 2021, respectively, and $3.8 million and $0.6 million for the nine months ended September 30, 2022 and 2021, respectively. As of September 30, 2022, expected remaining amortization expense of intangible assets by fiscal year is as follows (in thousands):
The changes in the carrying amount of goodwill were as follows (in thousands):
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Organization and Significant Accounting Policies (Policies) |
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Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation | The financial information presented in the accompanying unaudited condensed consolidated financial statements has been prepared in accordance with U.S. generally accepted accounting principles (“U.S. GAAP”) and in accordance with rules and regulations of the U.S. Securities and Exchange Commission (“SEC”) regarding interim financial reporting. The condensed consolidated balance sheet data as of December 31, 2021 was derived from audited financial statements, but does not include all disclosures required by U.S. GAAP. In the opinion of management, the accompanying unaudited condensed consolidated financial statements reflect all adjustments, consisting primarily of normal recurring accruals, necessary for a fair presentation of our financial position and results of operations. The operating results for the three and nine months ended September 30, 2022 are not necessarily indicative of the results expected for the full year ending December 31, 2022. |
Principles of Consolidation | All intercompany accounts and transactions have been eliminated in consolidation. |
Use of Estimates | The preparation of consolidated financial statements in conformity with accounting principles generally accepted in the United States requires us to make estimates and assumptions that affect the amounts reported in the consolidated financial statements and accompanying notes. We base our estimates on historical experience and various other assumptions believed to be reasonable. These estimates include, but are not limited to, the allowance for doubtful accounts, the determination of the relative selling prices of our services, the measurement of material rights, health insurance claims incurred but not yet reported, valuation of available-for-sale marketable securities, useful lives of deferred contract costs, intangible assets and property and equipment, goodwill, income taxes, discount rates used in the valuation of right-of-use assets and lease liabilities, and certain assumptions used in the valuation of equity awards. While these estimates are based on our best knowledge of current events and actions that may affect us in the future, actual results may differ materially from these estimates. |
Recently Adopted Accounting Pronouncements and New Accounting Pronouncements Not Yet Adopted | In October 2021, the Financial Accounting Standards Board (“FASB”) issued Accounting Standard Update (“ASU”) 2021-08, Business Combinations (Topic 805): Accounting for Contract Assets and Contract Liabilities from Contracts with Customers, which amends the accounting related to contract assets and liabilities acquired in business combinations. This ASU requires that entities recognize and measure contract assets and contract liabilities acquired in a business combination in accordance with ASC 606, Revenue from Contracts with Customers. This update is effective for fiscal years beginning after December 15, 2022 with early adoption permitted. We adopted this standard on January 1, 2022. The adoption of this standard did not have a material impact on our consolidated financial statements. In August 2020, the FASB issued , Accounting for Convertible Instruments and Contracts in an Entity's Own Equity. Under ASU 2020-06, embedded conversion features are no longer separated from the host contract for convertible instruments with conversion features that are not required to be accounted for as derivatives, or that do not result in substantial premiums accounted for as paid-in capital. The convertible debt instruments will now be accounted for as a single liability measured at amortized cost. This results in the interest expense recognized for convertible debt instruments to be closer to the coupon interest rate. The new guidance also requires the if-converted method to be applied for all convertible instruments when calculating earnings per share. The new standard is effective for interim and annual periods beginning after December 15, 2021 and can be adopted on either a modified retrospective or full retrospective basis. We adopted this standard on January 1, 2022 using the modified retrospective method under which financial results reported in prior periods were not adjusted. Adoption of the new standard resulted in a decrease to accumulated deficit of $18.3 million, a decrease to additional paid-in capital of $58.6 million, and an increase to convertible senior notes, non-current of $40.3 million on the consolidated balance sheet.None.
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Fair Value of Financial Instruments | Cash equivalents primarily consist of AAA-rated money market funds with overnight liquidity and no stated maturities. We classified cash equivalents as Level 1 due to the short-term nature of these instruments and measured the fair value based on quoted prices in active markets for identical assets. When available, our marketable securities are valued using quoted prices for identical instruments in active markets. If we are unable to value our marketable securities using quoted prices for identical instruments in active markets, we value our investments using broker reports that utilize quoted market prices for comparable instruments. We validate, on a sample basis, the derived prices provided by the brokers by comparing their assessment of the fair values of our investments against the fair values of the portfolio balances of another third-party professional pricing service. |
Supplemental Consolidated Balance Sheet Information (Tables) |
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Schedule of Accrued Expenses and Other Current Liabilities | Accrued expenses and other current liabilities consisted of the following (in thousands):
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Cash Equivalents and Marketable Securities (Tables) |
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Sep. 30, 2022 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Investments, Debt and Equity Securities [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Marketable Securities | At September 30, 2022, cash equivalents and marketable securities consisted of the following (in thousands):
At December 31, 2021, cash equivalents and marketable securities consisted of the following (in thousands):
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Schedule of Cash and Cash Equivalents | At September 30, 2022, cash equivalents and marketable securities consisted of the following (in thousands):
At December 31, 2021, cash equivalents and marketable securities consisted of the following (in thousands):
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Schedule of Investments Classified by Contractual Maturity Date | The contractual maturities of the investments classified as marketable securities are as follows (in thousands):
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Schedule of Available-for-sale Securities, Continuous Unrealized Loss Position | The following table presents gross unrealized losses and fair values for those cash equivalents and marketable securities that were in an unrealized loss position as of September 30, 2022, aggregated by investment category and the length of time that individual securities have been in a continuous loss position (in thousands):
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Fair Value Measurements (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 30, 2022 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value Disclosures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Assets Measured on Recurring Basis | The following table presents information about our assets that are measured at fair value on a recurring basis using the above input categories (in thousands):
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Convertible Senior Notes (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 30, 2022 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Convertible Debt | The net carrying amount of the liability and equity components of the Notes was as follows (in thousands):
Interest expense related to the Notes is as follows (in thousands):
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Stock-Based Compensation (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 30, 2022 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Share-Based Payment Arrangement [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Stock-based Compensation Expense | Stock-based compensation expense was recorded in the following cost and expense categories consistent with the respective employee or service provider’s related cash compensation (in thousands):
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Schedule of Stock-Option Activity | The following table summarizes the option activity under the Plans for the nine months ended September 30, 2022:
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Summary of Restricted Stock Units | The following table summarizes the restricted stock unit activity under the Plans for the nine months ended September 30, 2022:
(1) During the nine months ended September 30, 2022, in accordance with our Nonqualified Deferred Compensation Plan, recipients of 18,491 shares had elected to defer settlement of the vested restricted stock units and 22,006 shares were released from deferral.
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Revenue Recognition (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 30, 2022 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Revenue from Contract with Customer [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Disaggregation of Revenue | The following table presents our revenues disaggregated by industry (in thousands).
The following table presents our revenues disaggregated by type of good or service (in thousands):
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Net Loss Per Share (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 30, 2022 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Earnings Per Share [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Earnings Per Share, Basic and Diluted | A reconciliation of the denominator used in the calculation of basic and diluted loss per share is as follows (in thousands, except share and per share data):
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Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share | The anti-dilutive securities excluded from the weighted-average shares used to calculate the diluted net loss per common share were as follows:
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Acquisitions (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 30, 2022 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Business Combination and Asset Acquisition [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Assets Acquired and Liabilities Assumed | The following table presents a preliminary allocation of the purchase price to the assets acquired and liabilities assumed at the date of acquisition (in thousands):
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Intangible Assets and Goodwill (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 30, 2022 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary of Intangible Assets | The following table presents the components of net intangible assets (in thousands):
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Schedule of Expected Amortization Expense of Intangible Assets | As of September 30, 2022, expected remaining amortization expense of intangible assets by fiscal year is as follows (in thousands):
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Schedule in the Changes in the Carrying Amount of Goodwill | The changes in the carrying amount of goodwill were as follows (in thousands):
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Supplemental Consolidated Balance Sheet Information (Details) - USD ($) $ in Thousands |
Sep. 30, 2022 |
Dec. 31, 2021 |
---|---|---|
Accrued Liabilities and Other Liabilities [Abstract] | ||
Accrued vacation | $ 13,453 | $ 11,221 |
Accrued commissions | 7,306 | 11,122 |
Accrued bonuses | 16,981 | 8,292 |
Accrued payroll | 3,648 | 4,494 |
Estimated health insurance claims | 1,967 | 1,814 |
Accrued interest | 485 | 1,455 |
ESPP employee contributions | 3,176 | 5,349 |
Customer deposits | 25,503 | 26,517 |
Operating lease liabilities | 5,638 | 6,008 |
Accrued other liabilities | 6,733 | 7,854 |
Accrued expenses and other current liabilities | $ 84,890 | $ 84,126 |
Cash Equivalents and Marketable Securities - Schedule of Contractual Maturities (Details) - USD ($) $ in Thousands |
Sep. 30, 2022 |
Dec. 31, 2021 |
---|---|---|
Investments, Debt and Equity Securities [Abstract] | ||
Due within one year | $ 144,644 | |
Due in one to two years | 57,883 | |
Due in three to five years | 984 | |
Marketable securities | $ 203,511 | $ 230,060 |
Cash Equivalents and Marketable Securities - Continuous Unrealized Loss Position (Details) $ in Thousands |
Sep. 30, 2022
USD ($)
|
---|---|
Fair Value | |
Less than 12 months | $ 140,756 |
12 months or greater | 54,002 |
Unrealized Loss | |
Less than 12 months | (2,263) |
12 months or greater | (1,309) |
U.S. treasury debt securities | |
Fair Value | |
Less than 12 months | 44,933 |
12 months or greater | 33,082 |
Unrealized Loss | |
Less than 12 months | (370) |
12 months or greater | (820) |
Corporate debt securities | |
Fair Value | |
Less than 12 months | 94,854 |
12 months or greater | 20,920 |
Unrealized Loss | |
Less than 12 months | (1,870) |
12 months or greater | (489) |
Foreign government debt securities | |
Fair Value | |
Less than 12 months | 969 |
12 months or greater | 0 |
Unrealized Loss | |
Less than 12 months | (23) |
12 months or greater | $ 0 |
Convertible Senior Notes - Summary of Convertible Debt (Details) - 1.125% Convertible Senior Notes Due 2026 - Convertible debt - USD ($) $ in Thousands |
Sep. 30, 2022 |
Dec. 31, 2021 |
---|---|---|
Debt Instrument [Line Items] | ||
Principal | $ 345,000 | $ 345,000 |
Unamortized discount | 0 | (41,193) |
Unamortized issuance costs | (5,068) | (5,146) |
Net carrying amount | $ 339,932 | 298,661 |
Equity component, net of purchase discounts and issuance costs | $ 58,560 |
Convertible Senior Notes - Summary of Interest Expense (Details) - USD ($) $ in Thousands |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2022 |
Sep. 30, 2021 |
Sep. 30, 2022 |
Sep. 30, 2021 |
|
Debt Disclosure [Abstract] | ||||
Contractual interest expense | $ 970 | $ 970 | $ 2,910 | $ 2,911 |
Amortization of debt discount | 0 | 2,045 | 0 | 6,091 |
Amortization of issuance costs | 325 | 256 | 973 | 760 |
Total interest expense | $ 1,295 | $ 3,271 | $ 3,883 | $ 9,762 |
Stock-Based Compensation - Narrative (Details) - 2014 Plan - Class A Common Stock - shares |
Sep. 30, 2022 |
Jun. 01, 2022 |
---|---|---|
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Number of additional shares available for grant (in shares) | 3,000,000 | |
Number of shares available for grant (in shares) | 3,339,296 |
Stock-Based Compensation - Employee Stock Purchase Plan (Details) - USD ($) $ / shares in Units, $ in Thousands |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2022 |
Sep. 30, 2021 |
Sep. 30, 2022 |
Sep. 30, 2021 |
|
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Proceeds from shares issued in connection with employee stock purchase plan | $ 4,038 | $ 4,624 | $ 9,256 | $ 8,861 |
Employee Stock Purchase Plan | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Unrecognized compensation expense | $ 1,300 | $ 1,300 | ||
Unrecognized compensation expense, period for recognition (years) | 3 months 18 days | |||
Class A Common Stock | Employee Stock Purchase Plan | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Shares issued during period (in shares) | 131,467 | |||
Shares issued during period, weighted average price per share (in dollars per share) | $ 70.41 | |||
Proceeds from shares issued in connection with employee stock purchase plan | $ 9,300 |
Net Loss Per Share - Earnings Per Share Basic and Diluted (Details) - USD ($) $ / shares in Units, $ in Thousands |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2022 |
Sep. 30, 2021 |
Sep. 30, 2022 |
Sep. 30, 2021 |
|
Denominator | ||||
Weighted-average common shares outstanding - basic (in shares) | 53,081,564 | 51,441,688 | 52,844,532 | 50,921,612 |
Weighted-average common shares outstanding - diluted (in shares) | 53,081,564 | 51,441,688 | 52,844,532 | 50,921,612 |
Basic net loss per share (in dollars per share) | $ (0.56) | $ (0.13) | $ (1.46) | $ (0.46) |
Diluted net loss per share (in dollars per share) | $ (0.56) | $ (0.13) | $ (1.46) | $ (0.46) |
Class A Common Stock | ||||
Numerator | ||||
Net loss, basic | $ (27,515) | $ (5,731) | $ (71,310) | $ (19,993) |
Net loss, diluted | $ (27,515) | $ (5,731) | $ (71,310) | $ (19,993) |
Denominator | ||||
Weighted-average common shares outstanding - basic (in shares) | 49,190,981 | 44,886,268 | 48,911,092 | 43,496,619 |
Weighted-average common shares outstanding - diluted (in shares) | 49,190,981 | 44,886,268 | 48,911,092 | 43,496,619 |
Basic net loss per share (in dollars per share) | $ (0.56) | $ (0.13) | $ (1.46) | $ (0.46) |
Diluted net loss per share (in dollars per share) | $ (0.56) | $ (0.13) | $ (1.46) | $ (0.46) |
Class B Common Stock | ||||
Numerator | ||||
Net loss, basic | $ (2,176) | $ (837) | $ (5,735) | $ (3,413) |
Net loss, diluted | $ (2,176) | $ (837) | $ (5,735) | $ (3,413) |
Denominator | ||||
Weighted-average common shares outstanding - basic (in shares) | 3,890,583 | 6,555,420 | 3,933,440 | 7,424,993 |
Weighted-average common shares outstanding - diluted (in shares) | 3,890,583 | 6,555,420 | 3,933,440 | 7,424,993 |
Basic net loss per share (in dollars per share) | $ (0.56) | $ (0.13) | $ (1.46) | $ (0.46) |
Diluted net loss per share (in dollars per share) | $ (0.56) | $ (0.13) | $ (1.46) | $ (0.46) |
Acquisitions - Narrative (Details) - USD ($) |
3 Months Ended | 9 Months Ended | |||
---|---|---|---|---|---|
Apr. 01, 2022 |
Sep. 30, 2022 |
Sep. 30, 2021 |
Sep. 30, 2022 |
Sep. 30, 2021 |
|
Business Acquisition [Line Items] | |||||
Payments to acquire business, net of cash acquired | $ 0 | $ 35,067,000 | $ 99,186,000 | $ 35,067,000 | |
ParsePort ApS | |||||
Business Acquisition [Line Items] | |||||
Payments to acquire business, net of cash acquired | $ 99,200,000 | ||||
Cash acquired from acquisition | 1,600,000 | ||||
Goodwill tax deductible amount | $ 0 | ||||
Acquisition related costs | $ 600,000 |
Acquisitions - Assets Acquired and Liabilities Assumed (Details) - USD ($) $ in Thousands |
Apr. 01, 2022 |
Sep. 30, 2022 |
Dec. 31, 2021 |
---|---|---|---|
Business Acquisition [Line Items] | |||
Goodwill | $ 103,091 | $ 34,556 | |
ParsePort ApS | |||
Business Acquisition [Line Items] | |||
Cash consideration | $ 100,744 | ||
Total consideration | 100,744 | ||
Cash | 1,558 | ||
Accounts receivable, net | 1,403 | ||
Intangible assets | 24,000 | ||
Goodwill | 78,225 | ||
Other assets | 440 | ||
Accounts payable | (29) | ||
Accrued liabilities | (1,444) | ||
Deferred revenue | (3,299) | ||
Other liabilities | (110) | ||
Fair value of assets and liabilities | $ 100,744 |
Intangible Assets and Goodwill - Narrative (Details) - USD ($) $ in Millions |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2022 |
Sep. 30, 2021 |
Sep. 30, 2022 |
Sep. 30, 2021 |
|
Goodwill and Intangible Assets Disclosure [Abstract] | ||||
Amortization expense related to intangible assets | $ 1.5 | $ 0.4 | $ 3.8 | $ 0.6 |
Intangible Assets and Goodwill - Amortization of Intangible Assets by Fiscal Year (Details) - USD ($) $ in Thousands |
Sep. 30, 2022 |
Dec. 31, 2021 |
---|---|---|
Goodwill and Intangible Assets Disclosure [Abstract] | ||
Remainder of 2022 | $ 1,473 | |
2023 | 5,851 | |
2024 | 5,087 | |
2025 | 4,357 | |
2026 | 3,047 | |
2027 | 1,876 | |
Thereafter | 6,137 | |
Net Carrying Amount | $ 27,828 | $ 10,434 |
Intangible Assets and Goodwill - Goodwill Activity (Details) $ in Thousands |
9 Months Ended |
---|---|
Sep. 30, 2022
USD ($)
| |
Goodwill [Roll Forward] | |
Goodwill, beginning balance | $ 34,556 |
Acquisition | 78,225 |
Foreign currency translation adjustments | (9,690) |
Goodwill, ending balance | $ 103,091 |
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