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Commitments and Contingencies
3 Months Ended
Mar. 31, 2022
Commitments and Contingencies Disclosure [Abstract]  
Commitments and Contingencies

11. Commitments and Contingencies

Non-Cancelable Purchase Commitments

The Company enters into commitments under non-cancelable purchase orders for the procurement of goods and services in the ordinary course of business. As of March 31, 2022, expected payments under such commitments are as follows (in thousands):

Remainder of 2022

$

10,635

 

2023

 

14,366

 

2024

 

4,294

 

Total purchase commitments

$

29,295

 

 

Letters of Credit

As of March 31, 2022, the Company had a standby letter of credit for $2.5 million which was issued in connection with the San Mateo headquarters.

Legal Matters

Seven complaints were filed by purported Momentive stockholders, O’Dell v. Momentive Global Inc., et al., Case No. 1:21-cv-10489 (S.D.N.Y.)(the “O’Dell Complaint”); Ciccotelli v. Momentive Global Inc., et al., Case No. 1:21-cv-10727 (S.D.N.Y.) (the “Ciccotelli Complaint”); Morgan v. Momentive Global Inc., et al., Case No. 1:22-cv-00019 (D. Del.) (the “Morgan Complaint”); Bushansky v. Momentive Global Inc., et al., Case No. 3:22-cv-00058 (N.D. Cal.) (the “Bushansky Complaint”); Whitfield v. Momentive Global Inc., et al., Case No. 2:22-cv-00051 (E.D.P.A.) (the “Whitfield Complaint”);Ryan v. Momentive Global Inc., et al., Case No. 1:22-cv-00185 (S.D.N.Y.) (the “Ryan Complaint”); and Kaufmann v. Momentive Global Inc., et al., Case No. 1:22-cv-00062 (D. Del.) (the “Kaufmann Complaint”),each of which sought to enjoin the Merger and other relief. The complaints asserted claims against certain defendants, including the Company and the Company's board of directors, under Section 14(a) of the Exchange Act and Rule 14a-9 promulgated thereunder for allegedly false and misleading statements in the joint proxy statement/prospectus and against certain defendants under Section 20(a) of the Exchange Act for alleged “control person” liability with

respect to such allegedly false and misleading statements. The O’Dell Complaint was voluntarily dismissed on March 1, 2022 following the termination of the Merger Agreement with Zendesk. The Bushansky Complaint, the Cicotelli Complaint, the Ryan Complaint, and the Whitfield Complaint were each voluntarily dismissed on March 4, 2022 following the termination of the Merger Agreement with Zendesk. The Kaufman Complaint and the Morgan Complaint were each voluntarily dismissed on March 8, 2022 following the termination of the Merger Agreement with Zendesk.

From time to time, the Company is subject to legal proceedings, claims and litigation arising in the ordinary course of business, which may include, but are not limited to, patent and privacy matters, labor and employment claims, class action lawsuits, as well as inquiries, investigations, audits and other regulatory proceedings. Periodically, the Company evaluates developments in its legal matters and records a liability when it believes that it is both probable that a loss has been incurred and the amount can be reasonably estimated. Significant judgment is required to determine both the likelihood of there being, and the estimated amount of, a loss related to such matters, and the Company's judgment may be incorrect.

There are currently no legal matters or claims that have arisen from the normal course of business that the Company believes would have a material impact on the Company’s financial position, results of operations or cash flows.

Warranties and Indemnification

The Company’s subscription services are generally warranted to perform materially in accordance with the Company’s online help documentation under normal use and circumstances. Additionally, the Company’s arrangements generally include provisions for indemnifying customers against liabilities if its subscription services infringe a third party’s intellectual property rights. Furthermore, the Company may also incur liabilities if it breaches the security or confidentiality obligations in its arrangements. To date, the Company has not incurred significant costs and has not accrued a liability in the accompanying condensed consolidated financial statements as a result of these obligations.