Restructuring Costs

3 Months Ended

Mar. 31, 2022

15. Restructuring Costs

In March 2022, the Company implemented a restructuring plan (the “March 2022 Restructuring Plan”) to streamline its business, increase operating efficiency, and reduce costs over the long-term after the termination of its proposed merger with Zendesk. During the three months ended March 31, 2022, the Company incurred costs associated with the March 2022 Restructuring Plan of approximately $4.9 million and is primarily comprised of employee severance, stock-based compensation expense, and other contract termination costs related to the Company's decision to abandon its future office expansion plans. Additionally, the Company plans to streamline its positioning and focus on the SurveyMonkey and Momentive brands. As such, it has determined that its brand-related intangibles from a prior acquisition has no future economic benefit and has accelerated the amortization of such through the end of 2022, when the Company plans to discontinue those brand names. The Company may incur additional restructuring charges related to the March 2022 Restructuring Plan and expects these actions to be substantially complete by the end of 2022.

The March 2022 Restructuring Plan was subject to applicable laws and consultation processes as part of the Company's strategic plan to reduce costs and improve efficiencies. In connection with this action, the Company incurred the following pre-tax costs for the three months ended March 31, 2022 (in thousands):


Employee severance	$	822
Stock-based compensation		2,761
Contract termination and other costs		1,255
Amortization of intangible assets		45
Total restructuring costs	$	4,883

Restructuring costs included $1.5 million recorded in accrued expenses and other current liabilities as of March 31, 2022. The majority of the amounts accrued pertain to severance and contract termination costs, which will be paid through 2022.