Fair Value Measurements (Tables)

6 Months Ended

Jun. 30, 2023

Summary of Liabilities Measured at Fair Value

The following table sets forth our liabilities that are measured at fair value on a recurring basis by level within the fair value hierarchy:


	Fair Value at June 30, 2023
	Level 1		Level 2		Level 3		Total
Liabilities:
Earn-out liability	$	—	$	—	$	23,983	$	23,983
Put option liability	—		—		1,746		1,746

Summary of Significant Assumptions to Determine Fair Value

The following table sets forth the range of inputs for the significant assumptions utilized to determine the fair value of the earn-out payment as of June 30, 2023:


	June 30, 2023
Risk-free interest rate	4.06%	to	5.53%
Expected revenue volatility	27.60%
Revenue discount rate	11.00%	to	11.10%
Credit discount rate	10.80%	to	10.97%

The following table sets forth the inputs for the significant assumptions utilized to determine the fair value of the put option liability as of June 30, 2023:


						June 30, 2023
Risk-free interest rate						5.37%
Expected volatility						46.48%
Dividend yield						1.03%

Summary of Changes in Fair Value

The following table presents a summary of the changes in fair value of our liabilities measured using Level 3 inputs:


	Earn-out		Put Option
Opening Balance	$	5,960	$	510
Changes in fair value (1)	18,023		1,236
Balance at June 30, 2023	$	23,983	$	1,746

(1)We recognized $18.0 million of remeasurement expense associated with the change in the fair value of the earn-out liability during the six months ended June 30, 2023. During the three months ended March 31, 2023, $0.1 million of gain for the change in fair value was presented in other income (expense), net in the consolidated statements of operations. During the three months ended June 30, 2023, $18.1 million of expense for the change in fair value was separately presented as a component of operating income. For the put option liability, we recognized $0.4 million of expense associated with the change in fair value in SG&A in the consolidated statements of income during the six months ended June 30, 2023.