Borrowings under Financing Agreement

12 Months Ended

Dec. 31, 2024

Debt Disclosure [Abstract]

Borrowings under Financing Agreement

Borrowings under Financing Agreement

On June 28, 2023, the Company entered into a Customer Investment Agreement (the “Agreement”), with GC Customer Value Arranger, LLC (a General Catalyst company) ("GC"). Under the Agreement, up to $150 million of financing will be provided for the Company’s sales and marketing growth efforts. The Agreement had a commitment period of 18 months which expired on December 31, 2024 (“Original Commitment End Date”). Under the Agreement, subject to certain terms and conditions specified therein, at the start of each growth period, an Investment Amount of up to 80% of the Company’s growth spend (the "Investment Amount") will be advanced by GC. During each growth period, the Company will repay each Investment Amount including a 16% rate of return based upon an agreed schedule. Once fully repaid, the Company will retain all future reference income related to each respective Investment Amount.

On January 8, 2024, the Company entered into an Amended and Restated Customer Investment Agreement under which GC will provide up to an additional $140 million of financing to the Company from the Original Commitment End Date through December 31, 2025 for sales and marketing growth efforts. This was amended and restated in April 2024 and June 2024 to clarify certain provisions with no changes to material terms and conditions. On February 3, 2025, the Agreement was further amended under which GC will provide up to an additional $200 million of financing for sales and marketing growth efforts from January 1, 2026 to December 31, 2026 (collectively, the “Amended and Restated Agreement”). The Amended and Restated Agreement as of February 2025 contains standard customary representations, warranties and covenants by the parties, and will continue in effect unless terminated by any party pursuant to its terms.

The Company had $83.4 million and $14.9 million of outstanding borrowings under the financing agreement as of December 31, 2024 and 2023, respectively. The Company incurred interest expense of $6.2 million and $0.4 million for the years ended December 31, 2024 and 2023, respectively, and included in “General and administrative expense” in the consolidated statements of operations and comprehensive income.