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Immaterial Correction of an Error
 12 Months Ended
Dec. 31, 2024
Accounting Changes and Error Corrections [Abstract]  
Immaterial Correction of an Error
(20)    Immaterial Correction of an Error
During the fourth quarter of 2024, we identified an immaterial error related to stock-based compensation expense associated with certain RSUs and PSUs granted during fiscal years 2023 and 2024 attributable to an improper valuation of the underlying awards, resulting in an understatement of stock-based compensation expense in 2023 and 2024.
In accordance with Staff Accounting Bulletin (“SAB”) No. 99, Materiality, and SAB No. 108, Considering the Effects of Prior Year Misstatements when Quantifying Misstatements in Current Year Financial Statements, the Company evaluated the errors and determined that the related impact was not material to results of operations or financial position for any historical annual or interim period. As a result, we are correcting the errors by adjusting prior period financial statements as of and for each of the quarterly and year-to-date periods shown below. Additionally, Note 13, Stock-Based Compensation, Note 14, Income Taxes and Note 15, Net Income (Loss) per Share, have been adjusted to reflect the correction of the immaterial errors.
The following table sets forth the effect of the immaterial error correction to certain line items of our consolidated statement of operations, consolidated balance sheet and consolidated statement of cash flows as of and for the year ended December 31, 2023:
Year Ended December 31, 2023
As ReportedAdjustmentRevised
(in thousands, except per share amounts)
Consolidated Statement of Operations:
Cost of revenue - product subscriptions$202,904 $236 $203,140 
Cost of revenue - professional services$28,837 $69 $28,906 
Research and development expense$176,776 $1,161 $177,937 
Sales and marketing expense$312,636 $1,025 $313,661 
General and administrative expense$84,276 $1,064 $85,340 
Net income (loss)$(149,260)$(3,555)$(152,815)
Net income (loss) per share, basic$(2.46)$(0.06)$(2.52)
Net income (loss) per share, diluted$(2.46)$(0.06)$(2.52)
Consolidated Statement of Cash Flows:
Net income (loss)$(149,260)$(3,555)$(152,815)
Stock-based compensation expense$108,081 $3,555 $111,636 
Net cash provided by operating activities$104,278 $— $104,278 
As of December 31, 2023
As ReportedAdjustmentRevised
(in thousands)
Consolidated Balance Sheet:
Additional paid-in capital$894,630 $3,555 $898,185 
Accumulated deficit$(1,010,005)$(3,555)$(1,013,560)
Total stockholders' deficit$(118,179)$— $(118,179)
The following tables set forth the effect of the immaterial error corrections to (i) certain line items of our unaudited condensed consolidated statements of operations for the interim periods ended March 31, 2023, June 30, 2023, September 30, 2023 and December 31, 2023, as well as (ii) certain line items of our unaudited condensed consolidated statements of operations and unaudited condensed consolidated statements of cash flows for the interim periods ended March 31, 2024, June 30, 2024 and September 30, 2024. Prospectively, we will effect an immaterial error correction of these unaudited condensed consolidated financial statements for the 2024 interim periods as those statements are reproduced on a comparative basis in our Quarterly Reports on Form 10-Q throughout fiscal year 2025:
Three Months Ended March 31, 2023Three Months Ended June 30, 2023
As ReportedAdjustmentRevisedAs ReportedAdjustmentRevised
(unaudited, in thousands, except per share amounts)(unaudited, in thousands, except per share amounts)
Consolidated Statement of Operations:
Cost of revenue - product subscriptions$48,188 $36 $48,224 $51,148 $78 $51,226 
Cost of revenue - professional services$7,811 $10 $7,821 $7,016 $22 $7,038 
Research and development expense$46,346 $148 $46,494 $50,762 $402 $51,164 
Sales and marketing expense$80,587 $166 $80,753 $83,036 $332 $83,368 
General and administrative expense$24,207 $269 $24,476 $22,888 $562 $23,450 
Net income (loss)$(25,915)$(629)$(26,544)$(66,782)$(1,396)$(68,178)
Net income (loss) per share, basic$(0.43)$(0.01)$(0.44)$(1.10)$(0.03)$(1.13)
Net income (loss) per share, diluted$(0.43)$(0.01)$(0.44)$(1.10)$(0.03)$(1.13)
Three Months Ended September 30, 2023Three Months Ended December 31, 2023
As ReportedAdjustmentRevisedAs ReportedAdjustmentRevised
(unaudited, in thousands, except per share amounts)(unaudited, in thousands, except per share amounts)
Consolidated Statement of Operations:
Cost of revenue - product subscriptions$51,261 $60 $51,321 $52,307 $62 $52,369 
Cost of revenue - professional services$6,569 $21 $6,590 $7,441 $16 $7,457 
Research and development expense$39,940 $309 $40,249 $39,729 $302 $40,031 
Sales and marketing expense$75,699 $284 $75,983 $73,314 $243 $73,557 
General and administrative expense$17,866 $(76)$17,790 $19,314 $309 $19,623 
Net income (loss)$(76,611)$(598)$(77,209)$20,048 $(932)$19,116 
Net income (loss) per share, basic$(1.25)$(0.01)$(1.26)$0.33 $(0.02)$0.31 
Net income (loss) per share, diluted$(1.25)$(0.01)$(1.26)$0.27 $(0.01)$0.26 
Three Months Ended March 31, 2024
As ReportedAdjustmentRevised
(unaudited, in thousands, except per share amounts)
Consolidated Statement of Operations:
Cost of revenue - product subscriptions$54,655 $79 $54,734 
Cost of revenue - professional services$6,248 $12 $6,260 
Research and development expense$40,990 $378 $41,368 
Sales and marketing expense$72,805 $290 $73,095 
General and administrative expense$19,835 $93 $19,928 
Net income (loss)$2,258 $(852)$1,406 
Net income (loss) per share, basic$0.04 $(0.02)$0.02 
Net income (loss) per share, diluted$0.03 $(0.01)$0.02 
Consolidated Statement of Cash Flows:
Net income$2,258 $(852)$1,406 
Stock-based compensation expense$24,893 $852 $25,745 
Net cash provided by operating activities$31,070 $— $31,070 
Three Months Ended June 30, 2024Six Months Ended June 30, 2024
As ReportedAdjustmentRevisedAs ReportedAdjustmentRevised
(unaudited, in thousands, except per share amounts)(unaudited, in thousands, except per share amounts)
Consolidated Statement of Operations:
Cost of revenue - product subscriptions$54,982 $125 $55,107 $109,637 $204 $109,841 
Cost of revenue - professional services$5,866 $19 $5,885 $12,114 $31 $12,145 
Research and development expense$40,056 $392 $40,448 $81,046 $770 $81,816 
Sales and marketing expense$77,795 $331 $78,126 $150,600 $621 $151,221 
General and administrative expense$22,412 $790 $23,202 $42,247 $883 $43,130 
Net income (loss)$8,195 $(1,657)$6,538 $10,453 $(2,509)$7,944 
Net income (loss) per share, basic$0.13 $(0.03)$0.10 $0.13 $(0.05)$0.08 
Net income (loss) per share, diluted$0.11 $(0.02)$0.09 $0.11 $(0.03)$0.08 
Consolidated Statement of Cash Flows:
Net income (loss)$10,453 $(2,509)$7,944 
Stock-based compensation expense$52,302 $2,509 $54,811 
Net cash provided by operating activities$63,928 $— $63,928 
Three Months Ended September 30, 2024Nine Months Ended September 30, 2024
As ReportedAdjustmentRevisedAs ReportedAdjustmentRevised
(unaudited, in thousands, except per share amounts)(unaudited, in thousands, except per share amounts)
Consolidated Statement of Operations:
Cost of revenue - product subscriptions$56,653 $121 $56,774 $166,290 $325 $166,615 
Cost of revenue - professional services$6,364 $19 $6,383 $18,478 $50 $18,528 
Research and development expense$44,565 $411 $44,976 $125,611 $1,181 $126,792 
Sales and marketing expense$74,521 $300 $74,821 $225,121 $921 $226,042 
General and administrative expense$18,590 $293 $18,883 $60,837 $1,176 $62,013 
Net income (loss)$16,554 $(1,144)$15,410 $27,007 $(3,653)$23,354 
Net income (loss) per share, basic$0.26 $(0.02)$0.24 $0.43 $(0.07)$0.36 
Net income (loss) per share, diluted$0.22 $(0.01)$0.21 $0.36 $(0.04)$0.32 
Consolidated Statement of Cash Flows:
Net income (loss)$27,007 $(3,653)$23,354 
Stock-based compensation expense$76,896 $3,653 $80,549 
Net cash provided by operating activities$107,897 $— $107,897