Basis of presentation and description of business

6 Months Ended

Jun. 30, 2021

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Basis of presentation and description of business

Basis of presentation and description of business

Description of business

Jamf Holding Corp. and its wholly owned subsidiaries, collectively, are referred to as the “Company,” “we,” “us” or “our.” We are the standard in Apple Enterprise Management, and our cloud software platform is the only vertically-focused Apple infrastructure and security platform of scale in the world. We help organizations connect, manage and protect Apple products, apps and corporate resources in the cloud without ever having to touch the devices. With our products, Apple devices can be deployed to employees brand new in the shrink-wrapped box, automatically set up and personalized at first power-on and continuously administered throughout the life of the device. Our customers are located throughout the world.

Vista Equity Partners acquisition

On November 13, 2017, Vista Equity Partners (“Vista”) acquired a majority share of all the issued and outstanding shares of the Company at the purchase price of $733.8 million (the “Vista Acquisition”). As of June 30, 2021, funds controlled by Vista owned approximately 53.5% of our outstanding common stock. As a result, we are a “controlled company” under NASDAQ Global Select Market (“NASDAQ”) corporate governance rules.

Emerging growth company status

We are currently an emerging growth company as defined in the Jumpstart Our Business Startups Act of 2012 (the “JOBS Act”). Under the JOBS Act, emerging growth companies can delay adopting new or revised accounting standards issued subsequent to the enactment of the JOBS Act, until such time as those standards apply to private companies.

We have elected to use this extended transition period for complying with new or revised accounting standards that have different effective dates for public and private companies until the earlier of the date that it is (i) no longer an emerging growth company or (ii) affirmatively and irrevocably opt out of the extended transition period provided in the JOBS Act. As a result, our consolidated financial statements may not be comparable to companies that comply with the new or revised accounting pronouncements as of public company effective dates.

On June 30, 2021, the last day of our second fiscal quarter in 2021, the market value of our common stock held by non-affiliates exceeded $700.0 million. Accordingly, we will be deemed a large accelerated filer as of December 31, 2021 and will no longer qualify as an emerging growth company and be able to take advantage of the extended timeline to comply with new or revised accounting standards applicable to public companies beginning with our Annual Report on Form 10-K for the year ending December 31, 2021.

Unaudited interim consolidated financial information

The accompanying interim consolidated balance sheet as of June 30, 2021, the consolidated statements of operations and of stockholders’ equity for the three and six months ended June 30, 2021 and 2020 and the consolidated statements of cash flows for the six months ended June 30, 2021 and 2020 and the related footnote disclosures are unaudited. These unaudited interim consolidated financial statements have been prepared on the same basis as the annual consolidated financial statements and, in management’s opinion, include all adjustments necessary for the fair presentation of the consolidated financial position, results of operations, and cash flows of the Company. Except for the revision discussed below, all adjustments made were of a normal recurring nature. The results for the three and six months ended June 30, 2021 are not necessarily indicative of the results to be expected for the year ending December 31, 2021 or for any future period.

Basis of presentation

The accompanying consolidated financial statements have been prepared in accordance with U.S. generally accepted accounting principles (“GAAP”). Certain reclassifications of prior period amounts have been made to conform to the current presentation. In the fourth quarter of 2020, the Company reclassified on-premise subscription revenue from license revenue to subscription revenue in the consolidated statements of operations on a retroactive basis. The amount reclassified for the three

and six months ended June 30, 2020 was $5.8 million and $10.3 million, respectively. The revised presentation is consistent with our disaggregated revenue disclosure and is more consistent with how investors and other users of the financial statements evaluate overall subscription revenue. The reclassification had no impact on total revenue.

Revision of previously issued consolidated financial statements

In connection with the preparation of its financial statements for the quarter ended June 30, 2021, the Company identified immaterial errors related to certain commissions that were incorrectly capitalized in prior periods. The commissions, as well as the associated payroll taxes and retirement plan contributions, were not incremental to the acquisition of customer contracts and should have been expensed as incurred in accordance with GAAP, rather than capitalized. As a result, sales and marketing expenses were understated and deferred contract costs were overstated by $2.5 million, $2.0 million, $1.8 million and $0.8 million for the years ended December 31, 2020, 2019 and 2018 and the three months ended March 31, 2021, respectively.

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 materiality of this error both quantitatively and qualitatively and determined that it was not material to our previously issued consolidated financial statements. However, adjusting for the cumulative effect of this error in the consolidated statement of operations for 2021 would be material to the Company’s results for this period as the cumulative amount of the error increased over time. As such, the Company has revised its previously issued consolidated financial statements as of and for the years ended December 31, 2020, 2019 and 2018 and its unaudited consolidated financial statements as of and for the quarter ended March 31, 2021 and quarters and year-to-date periods ended June 30, 2020 and September 30, 2020 to correct the error.

The revisions also include the corrections of other immaterial errors that the Company had previously recorded as out-of-period adjustments in the period of identification, as well as other previously identified immaterial errors. The previously recorded out-of-period adjustments included the establishment of state valuation allowances, as well as other immaterial errors. The Company had previously determined that these errors did not, both individually and in the aggregate, result in a material misstatement of our previously issued consolidated financial statements and reached the same conclusion when aggregating these immaterial errors with the commissions error described above.

The accompanying financial statements and relevant footnotes to the consolidated financial statements in this Quarterly Report on Form 10-Q have been revised to correct for the immaterial errors discussed above. The tables below provide reconciliations of our previously reported amounts to revised amounts to correct for these immaterial errors in our consolidated financial statements as of and for the years ended December 31, 2020, 2019 and 2018 and our unaudited consolidated financial statements as of and for the quarter ended March 31, 2021 and as of and for the quarter and year-to-date periods ended June 30, 2020.

	December 31, 2020
	As Previously Reported		Adjustments				As Revised
			Commissions		Other
	(in thousands)
Assets
Current assets:
Cash and cash equivalents	$	194,868	$	—	$	—	$	194,868
Trade accounts receivable, net of allowances	69,056		—		—		69,056
Income taxes receivable	632		—		—		632
Deferred contract costs	9,959		(1,675)		—		8,284
Prepaid expenses	13,283		—		—		13,283
Other current assets	1,113		—		—		1,113
Total current assets	288,911		(1,675)		—		287,236
Equipment and leasehold improvements, net	12,755		—		2,375		15,130
Goodwill	541,480		—		—		541,480
Other intangible assets, net	202,878		—		—		202,878
Deferred contract costs, non-current	26,770		(4,568)		—		22,202
Other assets	5,359		—		—		5,359
Total assets	$	1,078,153	$	(6,243)	$	2,375	$	1,074,285
Liabilities and stockholders’ equity
Current liabilities:
Accounts payable	$	6,967	$	—	$	—	$	6,967
Accrued liabilities	31,574		—		342		31,916
Income taxes payable	713		—		—		713
Deferred revenues	160,443		—		(441)		160,002
Total current liabilities	199,697		—		(99)		199,598
Deferred revenues, non-current	45,507		—		—		45,507
Deferred tax liability, net	6,422		(1,535)		200		5,087
Other liabilities	11,046		—		2,033		13,079
Total liabilities	262,672		(1,535)		2,134		263,271
Commitments and contingencies
Stockholders’ equity:
Preferred stock	—		—		—		—
Common stock	117		—		—		117
Additional paid‑in capital	903,116		—		—		903,116
Accumulated deficit	(87,752)		(4,708)		241		(92,219)
Total stockholders’ equity	815,481		(4,708)		241		811,014
Total liabilities and stockholders’ equity	$	1,078,153	$	(6,243)	$	2,375	$	1,074,285

	Year Ended December 31, 2020
	As Previously Reported		Adjustments				As Revised
			Commissions		Other
	(in thousands, except share and per share amounts)
Revenue:
Subscription	$	249,192	$	—	$	(313)	$	248,879
Services	14,525		—		(6)		14,519
License	5,734		—		—		5,734
Total revenue	269,451		—		(319)		269,132
Cost of revenue:
Cost of subscription (exclusive of amortization expense shown below)	39,323		—		206		39,529
Cost of services (exclusive of amortization expense shown below)	10,712		—		14		10,726
Amortization expense	10,753		—		—		10,753
Total cost of revenue	60,788		—		220		61,008
Gross profit	208,663		—		(539)		208,124
Operating expenses:
Sales and marketing	96,251		2,497		137		98,885
Research and development	52,431		—		82		52,513
General and administrative	51,904		—		(301)		51,603
Amortization expense	22,575		—		—		22,575
Total operating expenses	223,161		2,497		(82)		225,576
Loss from operations	(14,498)		(2,497)		(457)		(17,452)
Interest expense, net	(10,741)		—		—		(10,741)
Loss on extinguishment of debt	(5,213)		—		—		(5,213)
Foreign currency transaction loss	(722)		—		—		(722)
Other income, net	91		—		—		91
Loss before income tax benefit	(31,083)		(2,497)		(457)		(34,037)
Income tax benefit	8,312		619		1,024		9,955
Net loss	$	(22,771)	$	(1,878)	$	567	$	(24,082)
Net loss per share, basic and diluted	$	(0.21)					$	(0.22)
Weighted-average shares used to compute net loss per share, basic and diluted	108,908,597						108,908,597

	Stock Class			Additional Paid‑In Capital		Accumulated Deficit		Stockholders’ Equity
	Common
	Shares	Amount
	(in thousands, except share amounts)
As Previously Reported
Balance, December 31, 2019	102,843,612	$	103	$	568,756	$	(64,981)	$	503,878
Issuance of common stock upon initial public offering, net of underwriting discounts and commissions, offering costs and tax	13,500,000	14		322,399		—		322,413
Private placement	85,880	—		2,233		—		2,233
Exercise of stock options	526,460	—		2,985		—		2,985
Vesting of restricted stock units	36,520	—		—		—		—
Share‑based compensation	—	—		6,743		—		6,743
Net loss	—	—		—		(22,771)		(22,771)
Balance, December 31, 2020	116,992,472	$	117	$	903,116	$	(87,752)	$	815,481
Commissions Adjustment
Balance, December 31, 2019	—	$	—	$	—	$	(2,830)	$	(2,830)
Issuance of common stock upon initial public offering, net of underwriting discounts and commissions, offering costs and tax	—	—		—		—		—
Private placement	—	—		—		—		—
Exercise of stock options	—	—		—		—		—
Vesting of restricted stock units	—	—		—		—		—
Share‑based compensation	—	—		—		—		—
Net loss	—	—		—		(1,878)		(1,878)
Balance, December 31, 2020	—	$	—	$	—	$	(4,708)	$	(4,708)
Other Adjustments
Balance, December 31, 2019	—	$	—	$	—	$	(326)	$	(326)
Issuance of common stock upon initial public offering, net of underwriting discounts and commissions, offering costs and tax	—	—		—		—		—
Private placement	—	—		—		—		—
Exercise of stock options	—	—		—		—		—
Vesting of restricted stock units	—	—		—		—		—
Share‑based compensation	—	—		—		—		—
Net loss	—	—		—		567		567
Balance, December 31, 2020	—	$	—	$	—	$	241	$	241
As Revised
Balance, December 31, 2019	102,843,612	$	103	$	568,756	$	(68,137)	$	500,722
Issuance of common stock upon initial public offering, net of underwriting discounts and commissions, offering costs and tax	13,500,000	14		322,399		—		322,413
Private placement	85,880	—		2,233		—		2,233
Exercise of stock options	526,460	—		2,985		—		2,985
Vesting of restricted stock units	36,520	—		—		—		—
Share‑based compensation	—	—		6,743		—		6,743
Net loss	—	—		—		(24,082)		(24,082)
Balance, December 31, 2020	116,992,472	$	117	$	903,116	$	(92,219)	$	811,014

	Year Ended December 31, 2020
	As Previously Reported		Adjustments				As Revised
			Commissions		Other
	(in thousands)
Cash flows from operating activities
Net loss	$	(22,771)	$	(1,878)	$	567	$	(24,082)
Adjustments to reconcile net loss to cash provided by operating activities:
Depreciation and amortization expense	38,168		—		343		38,511
Amortization of deferred contract costs	9,647		(1,694)		—		7,953
Amortization of debt issuance costs	773		—		—		773
Provision for bad debt expense and returns	1,024		—		—		1,024
Gain on disposal of equipment and leasehold improvements	(29)		—		29		—
Loss on extinguishment of debt	5,213		—		—		5,213
Share‑based compensation	6,743		—		—		6,743
Deferred tax benefit	(8,675)		(619)		(1,024)		(10,318)
Adjustment to contingent consideration	(1,000)		—		—		(1,000)
Other	(263)		—		(227)		(490)
Changes in operating assets and liabilities:
Trade accounts receivable	(23,170)		—		58		(23,112)
Income tax receivable/payable	(766)		—		—		(766)
Prepaid expenses and other assets	(4,119)		—		499		(3,620)
Deferred contract costs	(24,589)		4,191		—		(20,398)
Deferred taxes	145		—		(145)		—
Accounts payable	3,888		—		138		4,026
Accrued liabilities	5,501		—		—		5,501
Deferred revenue	65,125		—		(180)		64,945
Other liabilities	1,898		—		—		1,898
Net cash provided by operating activities	52,743		—		58		52,801
Cash flows from investing activities
Acquisition, net of cash acquired	(2,512)		—		—		(2,512)
Purchases of equipment and leasehold improvements	(4,368)		—		—		(4,368)
Proceeds from sale of equipment and leasehold improvements	4		—		—		4
Net cash used in investing activities	(6,876)		—		—		(6,876)
Cash flows from financing activities
Debt issuance costs	(1,264)		—		—		(1,264)
Payment of debt	(205,000)		—		—		(205,000)
Payment of debt extinguishment costs	(2,050)		—		—		(2,050)
Proceeds from initial public offering, net of underwriting discounts and commissions	326,316		—		—		326,316
Cash paid for offering costs	(7,256)		—		—		(7,256)
Proceeds from private placement	2,233		—		—		2,233
Proceeds from the exercise of stock options	2,985		—		—		2,985
Net cash provided by financing activities	115,964		—		—		115,964
Effect of exchange rate changes on cash and cash equivalents	604		—		—		604
Net increase in cash and cash equivalents	162,435		—		58		162,493
Cash and cash equivalents, beginning of period	32,433		—		(58)		32,375
Cash and cash equivalents, end of period	$	194,868	$	—	$	—	$	194,868
Supplemental disclosures of cash flow information:
Cash paid for interest	$	12,649	$	—	$	—	$	12,649
Cash paid for income taxes, net of refunds	1,394		—		—		1,394

	December 31, 2019
	As Previously Reported		Adjustments				As Revised
			Commissions		Other
	(in thousands)
Assets
Current assets:
Cash and cash equivalents	$	32,433	$	—	$	(58)	$	32,375
Trade accounts receivable, net of allowances	46,513		—		58		46,571
Income taxes receivable	14		—		—		14
Deferred contract costs	5,553		(932)		—		4,621
Prepaid expenses	10,935		—		(2,841)		8,094
Other current assets	3,133		—		499		3,632
Total current assets	98,581		(932)		(2,342)		95,307
Equipment and leasehold improvements, net	12,477		—		2,718		15,195
Goodwill	539,818		—		—		539,818
Other intangible assets, net	235,099		—		—		235,099
Deferred contract costs, non-current	16,234		(2,814)		—		13,420
Other assets	2,599		—		2,841		5,440
Total assets	$	904,808	$	(3,746)	$	3,217	$	904,279
Liabilities and stockholders’ equity
Current liabilities:
Accounts payable	$	3,684	$	—	$	(138)	$	3,546
Accrued liabilities	26,927		—		342		27,269
Income taxes payable	819		—		—		819
Deferred revenues	120,089		—		(261)		119,828
Total current liabilities	151,519		—		(57)		151,462
Deferred revenues, non-current	20,621		—		—		20,621
Deferred tax liability, net	18,133		(916)		1,224		18,441
Debt	201,319		—		—		201,319
Other liabilities	9,338		—		2,376		11,714
Total liabilities	400,930		(916)		3,543		403,557
Commitments and contingencies
Stockholders’ equity:
Preferred stock	—		—		—		—
Common stock	103		—		—		103
Additional paid‑in capital	568,756		—		—		568,756
Accumulated deficit	(64,981)		(2,830)		(326)		(68,137)
Total stockholders’ equity	503,878		(2,830)		(326)		500,722
Total liabilities and stockholders’ equity	$	904,808	$	(3,746)	$	3,217	$	904,279

	Year Ended December 31, 2019
	As Previously Reported		Adjustments				As Revised
			Commissions		Other
	(in thousands, except share and per share amounts)
Revenue:
Subscription	$	175,189	$	—	$	(71)	$	175,118
Services	19,008		—		6		19,014
License	9,830		—		3		9,833
Total revenue	204,027		—		(62)		203,965
Cost of revenue:
Cost of subscription (exclusive of amortization expense shown below)	31,539		—		(82)		31,457
Cost of services (exclusive of amortization expense shown below)	14,224		—		15		14,239
Amortization expense	10,266		—		—		10,266
Total cost of revenue	56,029		—		(67)		55,962
Gross profit	147,998		—		5		148,003
Operating expenses:
Sales and marketing	71,006		1,991		106		73,103
Research and development	42,829		—		69		42,898
General and administrative	32,003		—		(494)		31,509
Amortization expense	22,416		—		—		22,416
Total operating expenses	168,254		1,991		(319)		169,926
Loss from operations	(20,256)		(1,991)		324		(21,923)
Interest expense, net	(21,423)		—		—		(21,423)
Foreign currency transaction loss	(1,252)		—		—		(1,252)
Other income, net	220		—		—		220
Loss before income tax benefit	(42,711)		(1,991)		324		(44,378)
Income tax benefit	10,111		488		(566)		10,033
Net loss	$	(32,600)	$	(1,503)	$	(242)	$	(34,345)
Net loss per share, basic and diluted	$	(0.32)					$	(0.33)
Weighted-average shares used to compute net loss per share, basic and diluted	102,752,092						102,752,092

	Stock Class			Additional Paid‑In Capital		Accumulated Deficit		Stockholders’ Equity
	Common
	Shares	Amount
	(in thousands, except share amounts)
As Previously Reported
Balance, December 31, 2018	102,649,701	$	103	$	565,372	$	(32,381)	$	533,094
Exercise of stock options	168,391	—		923		—		923
Vesting of restricted stock units	25,520	—		—		—		—
Share‑based compensation	—	—		2,461		—		2,461
Net loss	—	—		—		(32,600)		(32,600)
Balance, December 31, 2019	102,843,612	$	103	$	568,756	$	(64,981)	$	503,878
Commissions Adjustment
Balance, December 31, 2018	—	$	—	$	—	$	(1,327)	$	(1,327)
Exercise of stock options	—	—		—		—		—
Vesting of restricted stock units	—	—		—		—		—
Share‑based compensation	—	—		—		—		—
Net loss	—	—		—		(1,503)		(1,503)
Balance, December 31, 2019	—	$	—	$	—	$	(2,830)	$	(2,830)
Other Adjustments
Balance, December 31, 2018	—	$	—	$	—	$	(84)	$	(84)
Exercise of stock options	—	—		—		—		—
Vesting of restricted stock units	—	—		—		—		—
Share‑based compensation	—	—		—		—		—
Net loss	—	—		—		(242)		(242)
Balance, December 31, 2019	—	$	—	$	—	$	(326)	$	(326)
As Revised
Balance, December 31, 2018	102,649,701	$	103	$	565,372	$	(33,792)	$	531,683
Exercise of stock options	168,391	—		923		—		923
Vesting of restricted stock units	25,520	—		—		—		—
Share‑based compensation	—	—		2,461		—		2,461
Net loss	—	—		—		(34,345)		(34,345)
Balance, December 31, 2019	102,843,612	$	103	$	568,756	$	(68,137)	$	500,722

	Year Ended December 31, 2019
	As Previously Reported		Adjustments				As Revised
			Commissions		Other
	(in thousands)
Cash flows from operating activities
Net loss	$	(32,600)	$	(1,503)	$	(242)	$	(34,345)
Adjustments to reconcile net loss to cash provided by operating activities:
Depreciation and amortization expense	36,807		—		275		37,082
Amortization of deferred contract costs	6,250		(1,014)		—		5,236
Amortization of debt issuance costs	1,120		—		—		1,120
Provision for bad debt expense and returns	279		—		—		279
Gain on disposal of equipment and leasehold improvements	(17)		—		17		—
Share‑based compensation	2,461		—		—		2,461
Deferred tax benefit	(11,247)		(488)		566		(11,169)
Adjustment to contingent consideration	200		—		—		200
Other	—		—		(292)		(292)
Changes in operating assets and liabilities:
Trade accounts receivable	(14,741)		—		(58)		(14,799)
Income tax receivable/payable	559		—		—		559
Prepaid expenses and other assets	(4,585)		—		(521)		(5,106)
Deferred contract costs	(17,050)		3,005		—		(14,045)
Accounts payable	1,138		—		(138)		1,000
Accrued liabilities	6,390		—		(41)		6,349
Deferred revenue	36,998		—		376		37,374
Other liabilities	(58)		—		—		(58)
Net cash provided by operating activities	11,904		—		(58)		11,846
Cash flows from investing activities
Acquisition, net of cash acquired	(40,173)		—		—		(40,173)
Purchases of equipment and leasehold improvements	(7,190)		—		—		(7,190)
Net cash used in investing activities	(47,363)		—		—		(47,363)
Cash flows from financing activities
Proceeds from debt	40,000		—		—		40,000
Debt issuance costs	(1,550)		—		—		(1,550)
Payment of debt	(10,000)		—		—		(10,000)
Cash paid for offering costs	(721)		—		—		(721)
Proceeds from the exercise of stock options	923		—		—		923
Net cash provided by financing activities	28,652		—		—		28,652
Net decrease in cash and cash equivalents	(6,807)		—		(58)		(6,865)
Cash and cash equivalents, beginning of period	39,240		—		—		39,240
Cash and cash equivalents, end of period	$	32,433	$	—	$	(58)	$	32,375
Supplemental disclosures of cash flow information:
Cash paid for interest	$	20,693	$	—	$	—	$	20,693
Cash paid for income taxes, net of refunds	596		—		—		596
Non-cash investing activities:
Leasehold improvements acquired through lease incentives	$	—	$	—	$	2,672	$	2,672

	December 31, 2018
	As Previously Reported		Adjustments				As Revised
			Commissions		Other
	(in thousands)
Assets
Current assets:
Cash and cash equivalents	$	39,240	$	—	$	—	$	39,240
Trade accounts receivable, net of allowances	30,854		—		—		30,854
Income taxes receivable	65		—		—		65
Deferred contract costs	2,526		(398)		—		2,128
Prepaid expenses	6,682		—		(207)		6,475
Other current assets	922		—		185		1,107
Total current assets	80,289		(398)		(22)		79,869
Equipment and leasehold improvements, net	9,228		—		321		9,549
Goodwill	501,145		—		—		501,145
Other intangible assets, net	252,171		—		—		252,171
Deferred contract costs, non-current	8,461		(1,357)		—		7,104
Other assets	2,090		—		—		2,090
Total assets	$	853,384	$	(1,755)	$	299	$	851,928
Liabilities and stockholders’ equity
Current liabilities:
Accounts payable	$	2,343	$	—	$	—	$	2,343
Accrued liabilities	18,809		—		94		18,903
Income taxes payable	147		—		—		147
Deferred revenues	86,220		—		(637)		85,583
Total current liabilities	107,519		—		(543)		106,976
Deferred revenues, non-current	14,442		—		—		14,442
Deferred tax liability, net	26,384		(428)		658		26,614
Debt	171,749		—		—		171,749
Other liabilities	196		—		268		464
Total liabilities	320,290		(428)		383		320,245
Commitments and contingencies
Stockholders’ equity:
Preferred stock	—		—		—		—
Common stock	103		—		—		103
Additional paid‑in capital	565,372		—		—		565,372
Accumulated deficit	(32,381)		(1,327)		(84)		(33,792)
Total stockholders’ equity	533,094		(1,327)		(84)		531,683
Total liabilities and stockholders’ equity	$	853,384	$	(1,755)	$	299	$	851,928

	Year Ended December 31, 2018
	As Previously Reported		Adjustments				As Revised
			Commissions		Other
	(in thousands, except share and per share amounts)
Revenue:
Subscription	$	113,040	$	—	$	827	$	113,867
Services	20,206		—		(5)		20,201
License	13,316		—		—		13,316
Total revenue	146,562		—		822		147,384
Cost of revenue:
Cost of subscription (exclusive of amortization expense shown below)	24,088		—		11		24,099
Cost of services (exclusive of amortization expense shown below)	16,246		—		4		16,250
Amortization expense	8,969		—		—		8,969
Total cost of revenue	49,303		—		15		49,318
Gross profit	97,259		—		807		98,066
Operating expenses:
Sales and marketing	51,976		1,755		18		53,749
Research and development	31,515		—		12		31,527
General and administrative	22,270		—		174		22,444
Amortization expense	21,491		—		—		21,491
Total operating expenses	127,252		1,755		204		129,211
Loss from operations	(29,993)		(1,755)		603		(31,145)
Interest expense, net	(18,203)		—		—		(18,203)
Foreign currency transaction loss	(418)		—		—		(418)
Other income, net	221		—		—		221
Loss before income tax benefit	(48,393)		(1,755)		603		(49,545)
Income tax benefit	12,137		428		(599)		11,966
Net loss	$	(36,256)	$	(1,327)	$	4	$	(37,579)
Net loss per share, basic and diluted	$	(0.35)					$	(0.37)
Weighted-average shares used to compute net loss per share, basic and diluted	102,325,465						102,325,465

	Stock Class			Additional Paid‑In Capital		Retained Earnings (Accumulated Deficit)		Stockholders’ Equity
	Common
	Shares	Amount
	(in thousands, except share amounts)
As Previously Reported
Balance, December 31, 2017	102,300,010	$	102	$	561,288	$	3,875	$	565,265
Exercise of stock options	322,851	1		1,769		—		1,770
Vesting of restricted stock units	26,840	—		—		—		—
Share‑based compensation	—	—		2,315		—		2,315
Net loss	—	—		—		(36,256)		(36,256)
Balance, December 31, 2018	102,649,701	$	103	$	565,372	$	(32,381)	$	533,094
Commissions Adjustment
Balance, December 31, 2017	—	$	—	$	—	$	—	$	—
Exercise of stock options	—	—		—		—		—
Vesting of restricted stock units	—	—		—		—		—
Share‑based compensation	—	—		—		—		—
Net loss	—	—		—		(1,327)		(1,327)
Balance, December 31, 2018	—	$	—	$	—	$	(1,327)	$	(1,327)
Other Adjustments
Balance, December 31, 2017	—	$	—	$	—	$	(88)	$	(88)
Exercise of stock options	—	—		—		—		—
Vesting of restricted stock units	—	—		—		—		—
Share‑based compensation	—	—		—		—		—
Net loss	—	—		—		4		4
Balance, December 31, 2018	—	$	—	$	—	$	(84)	$	(84)
As Revised
Balance, December 31, 2017	102,300,010	$	102	$	561,288	$	3,787	$	565,177
Exercise of stock options	322,851	1		1,769		—		1,770
Vesting of restricted stock units	26,840	—		—		—		—
Share‑based compensation	—	—		2,315		—		2,315
Net loss	—	—		—		(37,579)		(37,579)
Balance, December 31, 2018	102,649,701	$	103	$	565,372	$	(33,792)	$	531,683

	Year Ended December 31, 2018
	As Previously Reported		Adjustments				As Revised
			Commissions		Other
	(in thousands)
Cash flows from operating activities
Net loss	$	(36,256)	$	(1,327)	$	4	$	(37,579)
Adjustments to reconcile net loss to cash provided by operating activities:
Depreciation and amortization expense	33,914		—		48		33,962
Amortization of deferred contract costs	3,391		(527)		—		2,864
Amortization of debt issuance costs	513		—		—		513
Provision for bad debt expense and returns	37		—		—		37
Loss on disposal of equipment and leasehold improvements	14		—		(14)		—
Share‑based compensation	2,315		—		—		2,315
Deferred tax benefit	(12,550)		(428)		599		(12,379)
Other	—		—		(34)		(34)
Changes in operating assets and liabilities:
Trade accounts receivable	(3,353)		—		—		(3,353)
Income tax receivable/payable	(977)		—		—		(977)
Prepaid expenses and other assets	(2,555)		—		(2)		(2,557)
Deferred contract costs	(13,222)		2,282		—		(10,940)
Accounts payable	(313)		—		—		(313)
Accrued liabilities	5,965		—		36		6,001
Deferred revenue	32,476		—		(637)		31,839
Other liabilities	(39)		—		—		(39)
Net cash provided by operating activities	9,360		—		—		9,360
Cash flows from investing activities
Acquisition, net of cash acquired	(2,893)		—		—		(2,893)
Purchases of equipment and leasehold improvements	(2,909)		—		—		(2,909)
Net cash used in investing activities	(5,802)		—		—		(5,802)
Cash flows from financing activities
Proceeds from the exercise of stock options	1,770		—		—		1,770
Net cash provided by financing activities	1,770		—		—		1,770
Net increase in cash and cash equivalents	5,328		—		—		5,328
Cash and cash equivalents, beginning of period	33,912		—		—		33,912
Cash and cash equivalents, end of period	$	39,240	$	—	$	—	$	39,240
Supplemental disclosures of cash flow information:
Cash paid for interest	$	17,835	$	—	$	—	$	17,835
Cash paid for income taxes, net of refunds	1,461		—		—		1,461
Non-cash investing activities:
Leasehold improvements acquired through lease incentives	$	—	$	—	$	369	$	369

	March 31, 2021
	As Previously Reported		Adjustments				As Revised
			Commissions		Other
	(in thousands)
Assets
Current assets:
Cash and cash equivalents	$	196,190	$	—	$	—	$	196,190
Trade accounts receivable, net of allowances	75,882		—		—		75,882
Income taxes receivable	632		—		—		632
Deferred contract costs	11,155		(1,942)		—		9,213
Prepaid expenses	15,009		—		—		15,009
Other current assets	2,325		—		—		2,325
Total current assets	301,193		(1,942)		—		299,251
Equipment and leasehold improvements, net	16,965		—		(186)		16,779
Goodwill	541,850		—		—		541,850
Other intangible assets, net	197,504		—		—		197,504
Deferred contract costs, non-current	28,774		(5,136)		—		23,638
Other assets	28,898		—		—		28,898
Total assets	$	1,115,184	$	(7,078)	$	(186)	$	1,107,920
Liabilities and stockholders’ equity
Current liabilities:
Accounts payable	$	5,744	$	—	$	—	$	5,744
Accrued liabilities	28,131		—		—		28,131
Income taxes payable	1,153		—		(87)		1,066
Deferred revenues	167,868		—		—		167,868
Total current liabilities	202,896		—		(87)		202,809
Deferred revenues, non-current	53,711		—		—		53,711
Deferred tax liability, net	5,475		(1,465)		275		4,285
Other liabilities	33,839		—		—		33,839
Total liabilities	295,921		(1,465)		188		294,644
Commitments and contingencies
Stockholders’ equity:
Preferred stock	—		—		—		—
Common stock	118		—		—		118
Additional paid‑in capital	909,966		—		—		909,966
Accumulated deficit	(90,821)		(5,613)		(374)		(96,808)
Total stockholders’ equity	819,263		(5,613)		(374)		813,276
Total liabilities and stockholders’ equity	$	1,115,184	$	(7,078)	$	(186)	$	1,107,920

	Three Months Ended March 31, 2021
	As Previously Reported		Adjustments				As Revised
			Commissions		Other
	(in thousands, except share and per share amounts)
Revenue:
Subscription	$	74,923	$	—	$	(441)	$	74,482
Services	4,003		—		—		4,003
License	2,242		—		—		2,242
Total revenue	81,168		—		(441)		80,727
Cost of revenue:
Cost of subscription (exclusive of amortization expense shown below)	12,014		—		—		12,014
Cost of services (exclusive of amortization expense shown below)	2,465		—		—		2,465
Amortization expense	2,777		—		—		2,777
Total cost of revenue	17,256		—		—		17,256
Gross profit	63,912		—		(441)		63,471
Operating expenses:
Sales and marketing	29,332		835		—		30,167
Research and development	15,626		—		—		15,626
General and administrative	16,105		—		139		16,244
Amortization expense	5,627		—		—		5,627
Total operating expenses	66,690		835		139		67,664
Loss from operations	(2,778)		(835)		(580)		(4,193)
Interest expense, net	(55)		—		—		(55)
Foreign currency transaction loss	(171)		—		(47)		(218)
Other income, net	—		—		—		—
Loss before income tax provision	(3,004)		(835)		(627)		(4,466)
Income tax provision	(65)		(70)		12		(123)
Net loss	$	(3,069)	$	(905)	$	(615)	$	(4,589)
Net loss per share, basic and diluted	$	(0.03)					$	(0.04)
Weighted-average shares used to compute net loss per share, basic and diluted	117,386,322						117,386,322

	Stock Class			Additional Paid‑In Capital		Accumulated Deficit		Stockholders’ Equity
	Common
	Shares	Amount
	(in thousands, except share amounts)
As Previously Reported
Balance, December 31, 2020	116,992,472	$	117	$	903,116	$	(87,752)	$	815,481
Exercise of stock options	713,423	1		4,018		—		4,019
Share‑based compensation	—	—		2,832		—		2,832
Net loss	—	—		—		(3,069)		(3,069)
Balance, March 31, 2021	117,705,895	$	118	$	909,966	$	(90,821)	$	819,263
Commissions Adjustment
Balance, December 31, 2020	—	$	—	$	—	$	(4,708)	$	(4,708)
Exercise of stock options	—	—		—		—		—
Share‑based compensation	—	—		—		—		—
Net loss	—	—		—		(905)		(905)
Balance, March 31, 2021	—	$	—	$	—	$	(5,613)	$	(5,613)
Other Adjustments
Balance, December 31, 2020	—	$	—	$	—	$	241	$	241
Exercise of stock options	—	—		—		—		—
Share‑based compensation	—	—		—		—		—
Net loss	—	—		—		(615)		(615)
Balance, March 31, 2021	—	$	—	$	—	$	(374)	$	(374)
As Revised
Balance, December 31, 2020	116,992,472	$	117	$	903,116	$	(92,219)	$	811,014
Exercise of stock options	713,423	1		4,018		—		4,019
Share‑based compensation	—	—		2,832		—		2,832
Net loss	—	—		—		(4,589)		(4,589)
Balance, March 31, 2021	117,705,895	$	118	$	909,966	$	(96,808)	$	813,276

	Three Months Ended March 31, 2021
	As Previously Reported		Adjustments				As Revised
			Commissions		Other
	(in thousands)
Cash flows from operating activities
Net loss	$	(3,069)	$	(905)	$	(615)	$	(4,589)
Adjustments to reconcile net loss to cash provided by operating activities:
Depreciation and amortization expense	9,784		—		—		9,784
Amortization of deferred contract costs	3,296		(596)		—		2,700
Amortization of debt issuance costs	69		—		—		69
Non-cash lease expense	1,267		—		—		1,267
Provision for bad debt expense and returns	159		—		—		159
Share‑based compensation	2,832		—		—		2,832
Deferred tax benefit	(758)		70		75		(613)
Adjustment to contingent consideration	300		—		—		300
Other	62		—		139		201
Changes in operating assets and liabilities:
Trade accounts receivable	(7,066)		—		—		(7,066)
Income tax receivable/payable	463		—		(87)		376
Prepaid expenses and other assets	(3,317)		—		—		(3,317)
Deferred contract costs	(6,496)		1,431		—		(5,065)
Accounts payable	(1,191)		—		—		(1,191)
Accrued liabilities	(7,694)		—		11		(7,683)
Deferred revenue	15,472		—		441		15,913
Other liabilities	(90)		—		36		(54)
Net cash provided by operating activities	4,023		—		—		4,023
Cash flows from investing activities
Acquisition, net of cash acquired	(3,041)		—		—		(3,041)
Purchases of equipment and leasehold improvements	(3,290)		—		—		(3,290)
Proceeds from sale of equipment and leasehold improvements	12		—		—		12
Net cash used in investing activities	(6,319)		—		—		(6,319)
Cash flows from financing activities
Proceeds from the exercise of stock options	4,019		—		—		4,019
Net cash provided by financing activities	4,019		—		—		4,019
Effect of exchange rate changes on cash and cash equivalents	(401)						(401)
Net increase in cash and cash equivalents	1,322		—		—		1,322
Cash and cash equivalents, beginning of period	194,868		—		—		194,868
Cash and cash equivalents, end of period	$	196,190	$	—	$	—	$	196,190
Supplemental disclosures of cash flow information:
Cash paid for interest	$	3	$	—	$	—	$	3
Cash paid for income taxes, net of refunds	351		—		—		351
Operating lease assets obtained in exchange for operating lease liabilities	(19)		—		—		(19)

	June 30, 2020
	As Previously Reported		Adjustments				As Revised
			Commissions		Other
	(in thousands)
Assets
Current assets:
Cash and cash equivalents	$	38,424	$	—	$	—	$	38,424
Trade accounts receivable, net of allowances	53,275		—		—		53,275
Income taxes receivable	554		—		—		554
Deferred contract costs	7,270		(1,277)		—		5,993
Prepaid expenses	10,880		—		—		10,880
Other current assets	6,314		—		—		6,314
Total current assets	116,717		(1,277)		—		115,440
Equipment and leasehold improvements, net	11,494		—		2,550		14,044
Goodwill	539,818		—		—		539,818
Other intangible assets, net	218,430		—		—		218,430
Deferred contract costs, non-current	20,334		(3,703)		—		16,631
Other assets	2,557		—		—		2,557
Total assets	$	909,350	$	(4,980)	$	2,550	$	906,920
Liabilities and stockholders’ equity
Current liabilities:
Accounts payable	$	3,909	$	—	$	(194)	$	3,715
Accrued liabilities	26,099		—		342		26,441
Income taxes payable	1,081		—		—		1,081
Deferred revenues	130,309		—		(456)		129,853
Total current liabilities	161,398		—		(308)		161,090
Deferred revenues, non-current	27,429		—		—		27,429
Deferred tax liability, net	14,913		(1,227)		1,670		15,356
Debt	201,891		—		—		201,891
Other liabilities	6,876		—		2,208		9,084
Total liabilities	412,507		(1,227)		3,570		414,850
Commitments and contingencies
Stockholders’ equity:
Preferred stock	—		—		—		—
Common stock	103		—		—		103
Additional paid‑in capital	570,434		—		—		570,434
Accumulated deficit	(73,694)		(3,753)		(1,020)		(78,467)
Total stockholders’ equity	496,843		(3,753)		(1,020)		492,070
Total liabilities and stockholders’ equity	$	909,350	$	(4,980)	$	2,550	$	906,920

	Three Months Ended June 30, 2020
	As Previously Reported (1)		Adjustments				As Revised
			Commissions		Other
	(in thousands, except share and per share amounts)
Revenue:
Subscription	$	58,748	$	—	$	(148)	$	58,600
Services	2,451		—		181		2,632
License	1,032		—		—		1,032
Total revenue	62,231		—		33		62,264
Cost of revenue:
Cost of subscription (exclusive of amortization expense shown below)	8,762		—		(22)		8,740
Cost of services (exclusive of amortization expense shown below)	2,207		—		3		2,210
Amortization expense	2,678		—		—		2,678
Total cost of revenue	13,647		—		(19)		13,628
Gross profit	48,584		—		52		48,636
Operating expenses:
Sales and marketing	20,202		544		35		20,781
Research and development	11,929		—		20		11,949
General and administrative	6,603		—		(75)		6,528
Amortization expense	5,634		—		—		5,634
Total operating expenses	44,368		544		(20)		44,892
Income from operations	4,216		(544)		72		3,744
Interest expense, net	(4,690)		—		—		(4,690)
Foreign currency transaction loss	(13)		—		—		(13)
Other income, net	36		—		—		36
Loss before income tax benefit	(451)		(544)		72		(923)
Income tax benefit	28		142		(81)		89
Net loss	$	(423)	$	(402)	$	(9)	$	(834)
Net loss per share, basic and diluted	$	(0.00)					$	(0.01)
Weighted-average shares used to compute net loss per share, basic and diluted	102,862,404						102,862,404

(1) Previously reported amounts reflect the reclassification of on-premise subscription revenue from license revenue to subscription revenue, which we applied on a retrospective basis in the fourth quarter of 2020. See further information in Basis of Presentation above.

	Six Months Ended June 30, 2020
	As Previously Reported (1)		Adjustments				As Revised
			Commissions		Other
	(in thousands, except share and per share amounts)
Revenue:
Subscription	$	113,366	$	—	$	(562)	$	112,804
Services	6,461		—		258		6,719
License	2,794		—		—		2,794
Total revenue	122,621		—		(304)		122,317
Cost of revenue:
Cost of subscription (exclusive of amortization expense shown below)	18,010		—		(22)		17,988
Cost of services (exclusive of amortization expense shown below)	5,293		—		7		5,300
Amortization expense	5,355		—		—		5,355
Total cost of revenue	28,658		—		(15)		28,643
Gross profit	93,963		—		(289)		93,674
Operating expenses:
Sales and marketing	42,484		1,234		67		43,785
Research and development	24,546		—		41		24,587
General and administrative	17,892		—		(149)		17,743
Amortization expense	11,308		—		—		11,308
Total operating expenses	96,230		1,234		(41)		97,423
Loss from operations	(2,267)		(1,234)		(248)		(3,749)
Interest expense, net	(9,468)		—		—		(9,468)
Foreign currency transaction loss	(317)		—		—		(317)
Other income, net	91		—		—		91
Loss before income tax benefit	(11,961)		(1,234)		(248)		(13,443)
Income tax benefit	3,248		311		(446)		3,113
Net loss	$	(8,713)	$	(923)	$	(694)	$	(10,330)
Net loss per share, basic and diluted	$	(0.08)					$	(0.10)
Weighted-average shares used to compute net loss per share, basic and diluted	102,861,475						102,861,475

(1) Previously reported amounts reflect the reclassification of on-premise subscription revenue from license revenue to subscription revenue, which we applied on a retrospective basis in the fourth quarter of 2020. See further information in Basis of Presentation above.

	Stock Class			Additional Paid‑In Capital		Accumulated Deficit		Stockholders’ Equity
	Common
	Shares	Amount
	(in thousands, except share amounts)
As Previously Reported
Balance, March 31, 2020	102,862,404	$	103	$	569,670	$	(73,271)	$	496,502
Exercise of stock options	—	—		—		—		—
Share‑based compensation	—	—		764		—		764
Net loss	—	—		—		(423)		(423)
Balance, June 30, 2020	102,862,404	$	103	$	570,434	$	(73,694)	$	496,843
Commissions Adjustment
Balance, March 31, 2020	—	$	—	$	—	$	(3,351)	$	(3,351)
Exercise of stock options	—	—		—		—		—
Share‑based compensation	—	—		—		—		—
Net loss	—	—		—		(402)		(402)
Balance, June 30, 2020	—	$	—	$	—	$	(3,753)	$	(3,753)
Other Adjustments
Balance, March 31, 2020	—	$	—	$	—	$	(1,011)	$	(1,011)
Exercise of stock options	—	—		—		—		—
Share‑based compensation	—	—		—		—		—
Net loss	—	—		—		(9)		(9)
Balance, June 30, 2020	—	$	—	$	—	$	(1,020)	$	(1,020)
As Revised
Balance, March 31, 2020	102,862,404	$	103	$	569,670	$	(77,633)	$	492,140
Exercise of stock options	—	—		—		—		—
Share‑based compensation	—	—		764		—		764
Net loss	—	—		—		(834)		(834)
Balance, June 30, 2020	102,862,404	$	103	$	570,434	$	(78,467)	$	492,070

	Stock Class			Additional Paid‑In Capital		Accumulated Deficit		Stockholders’ Equity
	Common
	Shares	Amount
	(in thousands, except share amounts)
As Previously Reported
Balance, December 31, 2019	102,843,612	$	103	$	568,756	$	(64,981)	$	503,878
Exercise of stock options	18,792	—		103		—		103
Share‑based compensation	—	—		1,575		—		1,575
Net loss	—	—		—		(8,713)		(8,713)
Balance, June 30, 2020	102,862,404	$	103	$	570,434	$	(73,694)	$	496,843
Commissions Adjustment
Balance, December 31, 2019	—	$	—	$	—	$	(2,830)	$	(2,830)
Exercise of stock options	—	—		—		—		—
Share‑based compensation	—	—		—		—		—
Net loss	—	—		—		(923)		(923)
Balance, June 30, 2020	—	$	—	$	—	$	(3,753)	$	(3,753)
Other Adjustments
Balance, December 31, 2019	—	$	—	$	—	$	(326)	$	(326)
Exercise of stock options	—	—		—		—		—
Share‑based compensation	—	—		—		—		—
Net loss	—	—		—		(694)		(694)
Balance, June 30, 2020	—	$	—	$	—	$	(1,020)	$	(1,020)
As Revised
Balance, December 31, 2019	102,843,612	$	103	$	568,756	$	(68,137)	$	500,722
Exercise of stock options	18,792	—		103		—		103
Share‑based compensation	—	—		1,575		—		1,575
Net loss	—	—		—		(10,330)		(10,330)
Balance, June 30, 2020	102,862,404	$	103	$	570,434	$	(78,467)	$	492,070

	Six Months Ended June 30, 2020
	As Previously Reported		Adjustments				As Revised
			Commissions		Other
	(in thousands)
Cash flows from operating activities
Net loss	$	(8,713)	$	(923)	$	(694)	$	(10,330)
Adjustments to reconcile net loss to cash provided by operating activities:
Depreciation and amortization expense	19,002		—		168		19,170
Amortization of deferred contract costs	4,218		(766)		—		3,452
Amortization of debt issuance costs	571		—		—		571
Provision for bad debt expense and returns	812		—		—		812
Loss on disposal of equipment and leasehold improvements	12		—		(12)		—
Share‑based compensation	1,575		—		—		1,575
Deferred tax benefit	(3,217)		(311)		446		(3,082)
Adjustment to contingent consideration	(3,700)		—		—		(3,700)
Other	—		—		(156)		(156)
Changes in operating assets and liabilities:
Trade accounts receivable	(7,374)		—		58		(7,316)
Income tax receivable/payable	(278)		—		—		(278)
Prepaid expenses and other assets	429		—		499		928
Deferred contract costs	(10,035)		2,000		—		(8,035)
Accounts payable	258		—		(56)		202
Accrued liabilities	(2,371)		—		—		(2,371)
Deferred revenue	17,028		—		(195)		16,833
Other liabilities	1,240		—		—		1,240
Net cash provided by operating activities	9,457		—		58		9,515
Cash flows from investing activities
Purchases of equipment and leasehold improvements	(1,366)		—		—		(1,366)
Net cash used in investing activities	(1,366)		—		—		(1,366)
Cash flows from financing activities
Cash paid for offering costs	(2,203)		—		—		(2,203)
Proceeds from the exercise of stock options	103		—		—		103
Net cash used in financing activities	(2,100)		—		—		(2,100)
Effect of exchange rate changes on cash and cash equivalents	—		—		—		—
Net increase in cash and cash equivalents	5,991		—		58		6,049
Cash and cash equivalents, beginning of period	32,433		—		(58)		32,375
Cash and cash equivalents, end of period	$	38,424	$	—	$	—	$	38,424
Supplemental disclosures of cash flow information:
Cash paid for interest	$	9,262	$	—	$	—	$	9,262
Cash paid for income taxes, net of refunds	411		—		—		411
Offering costs, accrued but not yet paid	2,865		—		—		2,865

Use of estimates

The preparation of the consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities as of the reporting date, and the reported amounts of revenues and expenses during the reporting period. These estimates are based on management’s best knowledge of current events and actions that the Company may undertake in the future and include, but are not limited to, revenue recognition, stock-based compensation, commissions, goodwill and accounting for income taxes. Actual results could differ from those estimates.

Segment and geographic information

Our chief operating decision maker (“CODM”) is our Chief Executive Officer, who reviews financial information presented on a consolidated basis for purposes of making operating decisions, assessing financial performance and allocating resources. We operate our business as one operating segment and therefore we have one reportable segment.

Revenue by geographic region as determined based on the end user customer address was as follows:

	Three Months Ended June 30,				Six Months Ended June 30,
	2021		2020 (1)		2021 (2)		2020 (1)
			(As Revised)				(As Revised)
	(in thousands)
Revenue:
The Americas	$	64,726	$	48,145	$	125,543	$	95,016
Europe, the Middle East, India, and Africa	15,655		10,631		30,178		20,561
Asia Pacific	5,857		3,488		11,244		6,740
	$	86,238	$	62,264	$	166,965	$	122,317

(1) Certain prior period amounts have been revised to correct immaterial errors. See above for more information.

(2) Includes the three months ended March 31, 2021, which has been revised to correct immaterial errors. See above for more information.