QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 | |||||
For the quarterly period ended |
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 | |||||
For the transition period from ____________ to ____________ |
(State or other jurisdiction of incorporation or organization) | (I.R.S. Employer Identification No.) | ||||||||||
(Address of Principal Executive Offices, including zip code) |
Title of each class | Trading Symbol | Name of each exchange on which registered | ||||||||||||
☒ | Accelerated filer | ☐ | |||||||||
Non-accelerated filer | ☐ | Smaller reporting company | |||||||||
Emerging growth company |
Page | ||||||||
Item 2. | ||||||||
March 31, 2024 | December 31, 2023 | ||||||||||
ASSETS | |||||||||||
Current assets: | |||||||||||
Cash and cash equivalents | $ | $ | |||||||||
Short-term investments | |||||||||||
Accounts receivable, net of allowance of $ | |||||||||||
Inventories | |||||||||||
Prepaid expenses and other current assets | |||||||||||
Total current assets | |||||||||||
Property and equipment, net | |||||||||||
Operating lease right-of-use assets | |||||||||||
Long-term investments | |||||||||||
Goodwill | |||||||||||
Intangible assets, net | |||||||||||
Other assets | |||||||||||
Total assets | $ | $ | |||||||||
LIABILITIES AND STOCKHOLDERS’ EQUITY | |||||||||||
Current liabilities | |||||||||||
Accounts payable | $ | $ | |||||||||
Deferred revenue | |||||||||||
Accrued expenses and other current liabilities | |||||||||||
Total current liabilities | |||||||||||
Warrants liability | |||||||||||
Deferred revenue, non-current | |||||||||||
Other long-term liabilities | |||||||||||
Total liabilities | |||||||||||
Commitments and contingencies (Note 7) | |||||||||||
Redeemable convertible preferred stock, $ | |||||||||||
Stockholders’ equity: | |||||||||||
Common stock, $ | |||||||||||
Additional paid-in capital | |||||||||||
Accumulated other comprehensive income (loss) | ( | ||||||||||
Accumulated deficit | ( | ( | |||||||||
Total stockholders’ equity | |||||||||||
Total liabilities and stockholders’ equity | $ | $ |
Three Months Ended March 31, | |||||||||||
2024 | 2023 | ||||||||||
Revenue: | |||||||||||
Subscription | $ | $ | |||||||||
Services | |||||||||||
Product | |||||||||||
Total revenue | |||||||||||
Costs of revenue: | |||||||||||
Subscription | |||||||||||
Services | |||||||||||
Product | |||||||||||
Total costs of revenue | |||||||||||
Gross profit | |||||||||||
Operating expenses: | |||||||||||
Research and development | |||||||||||
Selling, general, and administrative | |||||||||||
Total operating expenses | |||||||||||
Loss from operations | ( | ( | |||||||||
Other income (expense): | |||||||||||
Interest income | |||||||||||
Change in fair value of warrants liability | ( | ||||||||||
Other income, net | |||||||||||
Total other income | |||||||||||
Loss before provision for income taxes | ( | ( | |||||||||
Provision for (benefit from) income taxes | ( | ||||||||||
Net loss | $ | ( | $ | ( | |||||||
Net loss per share, basic and diluted | $ | ( | $ | ( | |||||||
Weighted-average shares used in per share calculation, basic and diluted | |||||||||||
Three Months Ended March 31, | ||||||||||||||
2024 | 2023 | |||||||||||||
Net loss | $ | ( | $ | ( | ||||||||||
Other comprehensive income (loss), net of taxes: | ||||||||||||||
Unrealized gain (loss) on available-for-sale securities, net of tax | ( | |||||||||||||
Other comprehensive income (loss) | $ | ( | $ | |||||||||||
Comprehensive loss | $ | ( | $ | ( |
Common Stock | |||||||||||||||||||||||||||||||||||
Shares | Amount | Additional Paid-In Capital | Accumulated Other Comprehensive loss | Accumulated Deficit | Total Stockholders’ Equity | ||||||||||||||||||||||||||||||
Balance as of December 31, 2023 | $ | $ | $ | $ | ( | $ | |||||||||||||||||||||||||||||
Net loss | — | — | — | — | ( | ( | |||||||||||||||||||||||||||||
Other comprehensive loss | — | — | — | ( | — | ( | |||||||||||||||||||||||||||||
Issuance of common stock in connection with employee equity incentive plans, net of tax withholding | — | — | — | ||||||||||||||||||||||||||||||||
Stock-based compensation | — | — | — | — | |||||||||||||||||||||||||||||||
Balance as of March 31, 2024 | $ | $ | $ | ( | $ | ( | $ |
Common Stock | |||||||||||||||||||||||||||||||||||
Shares | Amount | Additional Paid-In Capital | Accumulated Other Comprehensive loss | Accumulated Deficit | Total Stockholders’ Equity | ||||||||||||||||||||||||||||||
Balance as of December 31, 2022 | $ | $ | $ | ( | $ | ( | $ | ||||||||||||||||||||||||||||
Net loss | — | — | — | — | ( | ( | |||||||||||||||||||||||||||||
Other comprehensive income | — | — | — | — | |||||||||||||||||||||||||||||||
Issuance of common stock in connection with employee equity incentive plans, net of tax withholding | — | — | |||||||||||||||||||||||||||||||||
Issuance of common stock in connection with acquisitions | — | — | — | ||||||||||||||||||||||||||||||||
Stock-based compensation | — | — | — | — | |||||||||||||||||||||||||||||||
Balance as of March 31, 2023 | $ | $ | $ | ( | $ | ( | $ |
Three Months Ended March 31, | |||||||||||
2024 | 2023 | ||||||||||
CASH FLOWS FROM OPERATING ACTIVITIES | |||||||||||
Net loss | $ | ( | $ | ( | |||||||
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities: | |||||||||||
Depreciation and amortization | |||||||||||
Accretion of discounts, net of amortization of investment premiums | ( | ( | |||||||||
Stock-based compensation, net of amounts capitalized | |||||||||||
Change in fair value of warrants liability | ( | ||||||||||
Deferred income taxes | ( | ||||||||||
Allowance for doubtful accounts | ( | ||||||||||
Loss from excess inventory and purchase obligation | |||||||||||
Other | ( | ||||||||||
Changes in operating assets and liabilities, net of effects of businesses acquired: | |||||||||||
Accounts receivable | ( | ( | |||||||||
Inventories | ( | ||||||||||
Prepaid expenses and other assets | |||||||||||
Accounts payable | ( | ( | |||||||||
Deferred revenue | |||||||||||
Accrued expenses and other liabilities | ( | ||||||||||
Net cash used in operating activities | ( | ( | |||||||||
CASH FLOWS FROM INVESTING ACTIVITIES: | |||||||||||
Purchases of property and equipment | ( | ( | |||||||||
Capitalized software and development costs | ( | ( | |||||||||
Purchase of investments | ( | ( | |||||||||
Maturities of investments | |||||||||||
Business acquisitions, net of cash acquired | ( | ||||||||||
Net cash provided by investing activities | |||||||||||
CASH FLOW FROM FINANCING ACTIVITIES: | |||||||||||
Proceeds from the sales of shares through employee equity incentive plans | |||||||||||
Payments for taxes related to net settlement of equity awards | ( | ||||||||||
Net cash provided by financing activities | |||||||||||
Net change in cash and cash equivalents | ( | ||||||||||
Effect of exchange rate changes on cash | ( | ||||||||||
Cash and cash equivalents, at beginning of year | |||||||||||
Cash and cash equivalents, at end of period | $ | $ | |||||||||
Supplemental disclosures of non-cash investing and financing information | |||||||||||
Common stock issued in connection with acquisition | $ | $ | |||||||||
Unpaid cash consideration in connection with acquisition | $ | $ |
Three Months Ended March 31, | |||||||||||
2024 | 2023 | ||||||||||
Revenue: | |||||||||||
United States | $ | $ | |||||||||
International | |||||||||||
Total revenue | $ | $ |
Three Months Ended March 31, | |||||||||||
2024 | 2023 | ||||||||||
Over time revenue | $ | $ | |||||||||
Point-in-time revenue | |||||||||||
Total | $ | $ |
March 31, 2024 | December 31, 2023 | ||||||||||
Accounts receivable, net | $ | $ | |||||||||
Unbilled accounts receivable | $ | $ | |||||||||
Deferred revenue | $ | $ |
Amount | ||||||||
Remaining 2024 | $ | |||||||
2025 | ||||||||
2026 | ||||||||
2027 | ||||||||
2028 | ||||||||
Thereafter | ||||||||
Total | $ |
March 31, 2024 | December 31, 2023 | |||||||||||||||||||||||||||||||||||||
Gross Carrying Amount | Accumulated Amortization | Net Carrying Amount | Gross Carrying Amount | Accumulated Amortization | Net Carrying Amount | |||||||||||||||||||||||||||||||||
Intangible assets subject to amortization: | ||||||||||||||||||||||||||||||||||||||
Developed technology | $ | $ | ( | $ | $ | $ | ( | $ | ||||||||||||||||||||||||||||||
Customer relationships | ( | ( | ||||||||||||||||||||||||||||||||||||
Total | $ | $ | ( | $ | $ | $ | ( | $ |
Amount | |||||
Remaining 2024 | $ | ||||
2025 | |||||
2026 | |||||
2027 | |||||
2028 | |||||
2028 and thereafter | |||||
Total future amortization expense | $ |
Three Months Ended March 31, | |||||||||||
2024 | 2023 | ||||||||||
Balance—beginning of period | $ | ( | $ | ( | |||||||
Decrease (increase) in reserves | ( | ||||||||||
Write-offs | |||||||||||
Balance—end of period | $ | ( | $ | ( |
March 31, 2024 | December 31, 2023 | ||||||||||
Finished goods | $ | $ | |||||||||
Work in process | |||||||||||
Purchased parts and raw materials | |||||||||||
Total inventories | $ | $ |
March 31, 2024 | December 31, 2023 | ||||||||||
Machinery and equipment | $ | $ | |||||||||
Furniture and fixtures | |||||||||||
Leasehold improvements | |||||||||||
Capitalized software and development costs | |||||||||||
Total property and equipment | |||||||||||
Accumulated depreciation and amortization | ( | ( | |||||||||
Total property and equipment, net | $ | $ |
March 31, 2024 | December 31, 2023 | ||||||||||
Accrued compensation | $ | $ | |||||||||
Tax payable | |||||||||||
ESPP contribution | |||||||||||
Short-term operating lease liabilities | |||||||||||
Other current liabilities | |||||||||||
Total accrued expenses and other current liabilities | $ | $ |
March 31, 2024 | |||||||||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | ||||||||||||||||||||
Financial Assets: | |||||||||||||||||||||||
Cash equivalents: | |||||||||||||||||||||||
Money market funds | $ | $ | $ | $ | |||||||||||||||||||
Total cash equivalents | $ | $ | $ | $ | |||||||||||||||||||
Short-term investments: | |||||||||||||||||||||||
U.S. government and agency securities | $ | $ | $ | $ | |||||||||||||||||||
Corporate debt securities | |||||||||||||||||||||||
Commercial paper | |||||||||||||||||||||||
Total short-term investments | $ | $ | $ | $ | |||||||||||||||||||
Long-term investments: | |||||||||||||||||||||||
U.S. government and agency securities | $ | $ | $ | $ | |||||||||||||||||||
Non-U.S. government and agency securities | |||||||||||||||||||||||
Corporate debt securities | |||||||||||||||||||||||
Total long-term investments | $ | $ | $ | $ | |||||||||||||||||||
Total assets measured at fair value | $ | $ | $ | $ | |||||||||||||||||||
Financial Liabilities: | |||||||||||||||||||||||
Private warrants liability | $ | $ | $ | $ | |||||||||||||||||||
Total liabilities measured at fair value | $ | $ | $ | $ |
December 31, 2023 | |||||||||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | ||||||||||||||||||||
Financial Assets: | |||||||||||||||||||||||
Cash equivalents: | |||||||||||||||||||||||
Money market funds | $ | $ | $ | $ | |||||||||||||||||||
Total cash equivalents | $ | $ | $ | $ | |||||||||||||||||||
Short-term investments: | |||||||||||||||||||||||
U.S. government and agency securities | $ | $ | $ | $ | |||||||||||||||||||
Non-U.S. government and agency securities | |||||||||||||||||||||||
Corporate debt securities | |||||||||||||||||||||||
Commercial paper | |||||||||||||||||||||||
Total short-term investments | $ | $ | $ | $ | |||||||||||||||||||
Long-term investments: | |||||||||||||||||||||||
U.S. government and agency securities | $ | $ | $ | $ | |||||||||||||||||||
Corporate debt securities | |||||||||||||||||||||||
Total long-term investments | $ | $ | $ | $ | |||||||||||||||||||
Total assets measured at fair value | $ | $ | $ | $ | |||||||||||||||||||
Financial Liabilities: | |||||||||||||||||||||||
Private warrants liability | $ | $ | $ | $ | |||||||||||||||||||
Total liabilities measured at fair value | $ | $ | $ | $ |
March 31, 2024 | |||||||||||||||||||||||
Amortized Cost | Unrealized Gains | Unrealized Losses | Fair Value | ||||||||||||||||||||
Investments: | |||||||||||||||||||||||
U.S. government and agency securities | $ | $ | $ | ( | |||||||||||||||||||
Non-U.S. government and agency securities | ( | ||||||||||||||||||||||
Corporate debt securities | ( | ||||||||||||||||||||||
Commercial paper | ( | ||||||||||||||||||||||
Total available-for-sale investments | $ | $ | $ | ( | $ |
December 31, 2023 | |||||||||||||||||||||||
Amortized Cost | Unrealized Gains | Unrealized Losses | Fair Value | ||||||||||||||||||||
Investments: | |||||||||||||||||||||||
U.S. government and agency securities | $ | $ | $ | ( | $ | ||||||||||||||||||
Non-U.S. government and agency securities | ( | ||||||||||||||||||||||
Corporate debt securities | ( | ||||||||||||||||||||||
Commercial paper | ( | ||||||||||||||||||||||
Total available-for-sale investments | $ | $ | $ | ( | $ |
March 31, 2024 | |||||||||||
Amortized Cost | Fair Value | ||||||||||
Due within one year | $ | $ | |||||||||
Due between one and three years | |||||||||||
Total | $ | $ |
Purchase Obligations | ||||||||
Remainder of 2024 | $ | |||||||
2025 | ||||||||
2026 | ||||||||
Thereafter | ||||||||
Total | $ |
March 31, 2024 | |||||
Private warrants to purchase common stock | |||||
Common stock options outstanding and unvested RSUs under the Amended and Restated 2011 Stock Incentive Plan | |||||
Shares available for future grant under 2021 Employee Stock Purchase Plan | |||||
Shares available for future grant under 2021 Incentive Award Plan | |||||
Total shares of common stock reserved |
Foreign Currency Translation, Net of Tax | Unrealized Losses on Available-for-Sale Debt Securities, Net of Tax | Total | |||||||||||||||
Balance at December 31, 2023 | $ | ( | $ | $ | |||||||||||||
Net unrealized loss | ( | ( | |||||||||||||||
Balance at March 31, 2024 | $ | ( | $ | ( | $ | ( |
Foreign Currency Translation, Net of Tax | Unrealized Losses on Available-for-Sale Debt Securities, Net of Tax | Total | |||||||||||||||
Balance at December 31, 2022 | $ | ( | $ | ( | $ | ( | |||||||||||
Net unrealized gain | |||||||||||||||||
Balance at March 31, 2023 | $ | ( | $ | ( | $ | ( |
March 31, 2024 | |||||
Current stock price | $ | ||||
Strike price | $ | ||||
Expected term (in years) | |||||
Expected volatility | |||||
Risk-free interest rate | |||||
Expected dividend yield |
Total Warrants Liability | |||||
Fair value at December 31, 2023 | $ | ||||
Change in fair value | |||||
Fair value at March 31, 2024 | $ |
Options Outstanding | |||||||||||||||||||||||
Number of Shares | Weighted- Average Exercise Price Per Share | Weighted- Average Remaining Contractual Term (Years) | Aggregate Intrinsic Value | ||||||||||||||||||||
Balance—December 31, 2023 | $ | $ | |||||||||||||||||||||
Expired or canceled | ( | ||||||||||||||||||||||
Exercised | ( | $ | |||||||||||||||||||||
Balance—March 31, 2024 | $ | $ | |||||||||||||||||||||
Options vested and exercisable—March 31, 2024 | $ | $ |
RSUs and PRSUs | |||||||||||
Number of Shares | Weighted- Average Grant-Date Fair Value Price Per Share | ||||||||||
Balance—December 31, 2023 | $ | ||||||||||
Granted | |||||||||||
Vested | ( | ||||||||||
Canceled or forfeited | ( | ||||||||||
Balance—March 31, 2024 | $ |
Three Months Ended March 31, | |||||||||||
2024 | 2023 | ||||||||||
Expected term | |||||||||||
Expected volatility | |||||||||||
Risk-free interest rate | |||||||||||
Expected dividend yield | |||||||||||
Three Months Ended March 31, | |||||||||||
2024 | 2023 | ||||||||||
Costs of revenue | $ | $ | |||||||||
Research and development | |||||||||||
Selling, general, and administrative | |||||||||||
Stock-based compensation, net of amounts capitalized | |||||||||||
Capitalized stock-based compensation | |||||||||||
Total stock-based compensation | $ | $ |
Three Months Ended March 31, | |||||||||||
2024 | 2023 | ||||||||||
Numerator: | |||||||||||
Net loss attributable to common stockholders | $ | ( | $ | ( | |||||||
Denominator: | |||||||||||
Weighted average shares used in computing net loss per share attributable to common stockholders, basic and diluted | |||||||||||
Net loss per share attributable to common stockholders, basic and diluted | $ | ( | $ | ( | |||||||
As of March 31, | |||||||||||
2024 | 2023 | ||||||||||
Private warrants | |||||||||||
Common stock options outstanding | |||||||||||
Unvested RSUs | |||||||||||
ESPP shares | |||||||||||
Total potentially dilutive common stock equivalents |
Three Months Ended March 31, | |||||||||||
2024 | 2023 | ||||||||||
Spaces under management | 12.3 | 9.9 |
Three Months Ended March 31, | |||||||||||
2024 | 2023 | ||||||||||
Free subscribers | 931 | 704 | |||||||||
Paid subscribers | 74 | 67 | |||||||||
Total subscribers | 1,005 | 771 |
Three Months Ended March 31, | |||||||||||
2024 | 2023 | ||||||||||
Net dollar expansion rate | 107 | % | 103 | % |
Three Months Ended March 31, | Change | ||||||||||||||||||||||
2024 | 2023 | Amount | % | ||||||||||||||||||||
Revenue: | |||||||||||||||||||||||
Subscription | $ | 24,015 | $ | 19,874 | $ | 4,141 | 21 | % | |||||||||||||||
Services | 9,103 | 8,704 | 399 | 5 | % | ||||||||||||||||||
Product | 6,754 | 9,416 | (2,662) | (28) | % | ||||||||||||||||||
Total revenue | 39,872 | 37,994 | 1,878 | 5 | % | ||||||||||||||||||
Costs of revenue: | |||||||||||||||||||||||
Subscription | 7,643 | 6,962 | 681 | 10 | % | ||||||||||||||||||
Services | 6,375 | 6,244 | 131 | 2 | % | ||||||||||||||||||
Product | 6,262 | 8,376 | (2,114) | (25) | % | ||||||||||||||||||
Total costs of revenue | 20,280 | 21,582 | (1,302) | (6) | % | ||||||||||||||||||
Gross profit | 19,592 | 16,412 | 3,180 | 19 | % | ||||||||||||||||||
Gross margin | 49% | 43% | |||||||||||||||||||||
Operating expenses: | |||||||||||||||||||||||
Research and development | 14,900 | 18,273 | (3,373) | (18) | % | ||||||||||||||||||
Selling, general, and administrative | 45,476 | 54,933 | (9,457) | (17) | % | ||||||||||||||||||
Total operating expenses | 60,376 | 73,206 | (12,830) | (18) | % | ||||||||||||||||||
Loss from operations | (40,784) | (56,794) | 16,010 | (28) | % | ||||||||||||||||||
Other income (expense): | |||||||||||||||||||||||
Interest income | 2,264 | 1,471 | 793 | 54% | |||||||||||||||||||
Change in fair value of warrants liability | (120) | 222 | (342) | (154) | % | ||||||||||||||||||
Other income, net | 2,553 | 1,183 | 1,370 | 116% | |||||||||||||||||||
Total other income | 4,697 | 2,876 | 1,821 | 63% | |||||||||||||||||||
Loss before provision for income taxes | (36,087) | (53,918) | 17,831 | (33)% | |||||||||||||||||||
Provision for (benefit from) income taxes | 41 | (76) | 117 | (154)% | |||||||||||||||||||
Net loss | $ | (36,128) | $ | (53,842) | $ | 17,714 | (33)% |
Three Months Ended March 31, | |||||||||||||||||||||||
2024 | 2023 | Change | |||||||||||||||||||||
Amount | Amount | Amount | % | ||||||||||||||||||||
(dollars in thousands) | |||||||||||||||||||||||
Subscription | $ | 24,015 | $ | 19,874 | $ | 4,141 | 21 | % | |||||||||||||||
Services | 9,103 | 8,704 | 399 | 5 | % | ||||||||||||||||||
Product | 6,754 | 9,416 | (2,662) | (28) | % | ||||||||||||||||||
Total revenue | $ | 39,872 | $ | 37,994 | $ | 1,878 | 5 | % |
Three Months Ended March 31, | |||||||||||||||||||||||
2024 | 2023 | Change | |||||||||||||||||||||
Amount | Amount | Amount | % | ||||||||||||||||||||
(dollars in thousands) | |||||||||||||||||||||||
Cost of subscription revenue | $ | 7,643 | $ | 6,962 | $ | 681 | 10 | % | |||||||||||||||
Cost of services revenue | 6,375 | 6,244 | 131 | 2 | % | ||||||||||||||||||
Cost of products revenue | 6,262 | 8,376 | (2,114) | (25) | % | ||||||||||||||||||
Total cost of revenue | $ | 20,280 | $ | 21,582 | $ | (1,302) | (6) | % |
Three Months Ended March 31, | |||||||||||
2024 | 2023 | ||||||||||
(dollars in thousands) | |||||||||||
Gross profit | $ | 19,592 | $ | 16,412 | |||||||
Gross margin | 49% | 43% |
Three Months Ended March 31, | |||||||||||||||||||||||
2024 | 2023 | Change | |||||||||||||||||||||
Amount | Amount | Amount | % | ||||||||||||||||||||
(dollars in thousands) | |||||||||||||||||||||||
Research and development expenses | $ | 14,900 | $ | 18,273 | $ | (3,373) | (18) | % |
Three Months Ended March 31, | |||||||||||||||||||||||
2024 | 2023 | Change | |||||||||||||||||||||
Amount | Amount | Amount | % | ||||||||||||||||||||
(dollars in thousands) | |||||||||||||||||||||||
Selling, general and administrative expenses | $ | 45,476 | $ | 54,933 | $ | (9,457) | (17) | % |
Three Months Ended March 31, | |||||||||||
2024 | 2023 | ||||||||||
(dollars in thousands) | |||||||||||
Interest income | $ | 2,264 | $ | 1,471 |
Three Months Ended March 31, | |||||||||||
2024 | 2023 | ||||||||||
(dollars in thousands) | |||||||||||
Change in fair value of warrants liability | $ | (120) | $ | 222 |
Three Months Ended March 31, | |||||||||||
2024 | 2023 | ||||||||||
(dollars in thousands) | |||||||||||
Other income, net | $ | 2,553 | $ | 1,183 |
Three Months Ended March 31, | |||||||||||
2024 | 2023 | ||||||||||
(dollars in thousands) | |||||||||||
Provision for (benefit from) income taxes | $ | 41 | $ | (76) |
Three months ended March 31, | |||||||||||
2024 | 2023 | ||||||||||
GAAP loss from operations | $ | (40,784) | $ | (56,794) | |||||||
Add back: stock-based compensation expense, net | 30,727 | 33,111 | |||||||||
Add back: acquisition-related costs | 1,007 | — | |||||||||
Add back: amortization expense of acquired intangible assets | 443 | 443 | |||||||||
Non-GAAP loss from operations | $ | (8,607) | $ | (23,240) |
Three months ended March 31, | |||||||||||
2024 | 2023 | ||||||||||
Net cash used in operating activities | $ | (3,843) | $ | (20,398) | |||||||
Less: purchases of property and equipment | 43 | 87 | |||||||||
Less: capitalized software and development costs | 2,169 | 2,567 | |||||||||
Free cash flow | $ | (6,055) | $ | (23,052) |
March 31, 2024 | December 31, 2023 | ||||||||||
(dollars in thousands) | |||||||||||
Cash, cash equivalents, and investments: | |||||||||||
Cash and cash equivalents | $ | 79,449 | $ | 82,902 | |||||||
Investments | 339,326 | 340,098 | |||||||||
Total cash, cash equivalents, and investments | $ | 418,775 | $ | 423,000 |
Three Months Ended March 31, | |||||||||||
2024 | 2023 | ||||||||||
Cash provided by (used in): | |||||||||||
Operating activities | $ | (3,843) | $ | (20,398) | |||||||
Investing activities | $ | 285 | $ | 46,899 | |||||||
Financing activities | $ | 259 | $ | 357 |
Exhibit Number | Description | Form | File No. | Exhibit | Filing Date | Filed Herewith | |||||||||||||||||
2.1† | 8-K | 001-39790 | 2.1 | 7/28/2021 | |||||||||||||||||||
3.1 | 8-K | 001-39790 | 3.1 | 7/28/2021 | |||||||||||||||||||
3.2 | 8-K | 001-39790 | 3.2 | 7/28/2021 | |||||||||||||||||||
4.1 | 8-K | 001-39790 | 4.1 | 12/16/2020 | |||||||||||||||||||
4.2 | 8-K | 001-39790 | 4.3 | 7/28/2021 | |||||||||||||||||||
31.1 | * | ||||||||||||||||||||||
31.2 | * | ||||||||||||||||||||||
32.1 | * | ||||||||||||||||||||||
32.2 | * | ||||||||||||||||||||||
101.INS | Inline XBRL Instance Document - the instance document does not appear in the Interactive Data file because its XBRL tags are embedded within the Inline XBRL document. | * | |||||||||||||||||||||
101.SCH | Inline XBRL Taxonomy Extension Schema Document. | * | |||||||||||||||||||||
101.CAL | Inline XBRL Taxonomy Extension Calculation Linkbase Document. | * | |||||||||||||||||||||
101.DEF | Inline XBRL Taxonomy Extension Definition Linkbase Document. | * | |||||||||||||||||||||
101.LAB | Inline XBRL Taxonomy Extension Label Linkbase Document. | * | |||||||||||||||||||||
101.PRE | Inline XBRL Taxonomy Extension Presentation Linkbase Document. | * | |||||||||||||||||||||
Exhibit 104 | Cover Page Interactive Data File (formatted as inline XBRL and contained in Exhibit 101) |
MATTERPORT, INC. | |||||||||||
Date: May 8, 2024 | By: | /s/ R.J. Pittman | |||||||||
R.J. Pittman | |||||||||||
Chief Executive Officer | |||||||||||
(Duly Authorized Officer and Principal Executive Officer) |
Date: May 8, 2024 | By: | /s/ R.J. Pittman | |||||||||
R.J. Pittman | |||||||||||
Chief Executive Officer |
Date: May 8, 2024 | By: | /s/ James D. Fay | |||||||||
James D. Fay | |||||||||||
Chief Financial Officer |
Date: May 8, 2024 | By: | /s/ R.J. Pittman | |||||||||
R.J. Pittman | |||||||||||
Chief Executive Officer |
Date: May 8, 2024 | By: | /s/ James D. Fay | |||||||||
James D. Fay | |||||||||||
Chief Financial Officer |
CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) |
Mar. 31, 2024 |
Dec. 31, 2023 |
---|---|---|
Statement of Financial Position [Abstract] | ||
Allowance for credit loss | $ 760,000 | $ 1,155,000 |
Redeemable convertible preferred stock, par value (in dollars per share) | $ 0.0001 | $ 0.0001 |
Redeemable convertible preferred, authorized (in shares) | 30,000,000 | 30,000,000 |
Redeemable convertible preferred, issued (in shares) | 0 | 0 |
Redeemable convertible preferred, outstanding (in shares) | 0 | 0 |
Common stock, par value (in dollars per share) | $ 0.0001 | $ 0.0001 |
Common stock, authorized (in shares) | 640,000,000 | 640,000,000 |
Common stock, issued (in shares) | 314,507,000 | 310,061,000 |
Common stock, outstanding (in shares) | 314,507,000 | 310,061,000 |
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS - USD ($) $ in Thousands |
3 Months Ended | |
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Mar. 31, 2024 |
Mar. 31, 2023 |
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Statement of Comprehensive Income [Abstract] | ||
Net loss | $ (36,128) | $ (53,842) |
Other comprehensive income (loss), net of taxes: | ||
Unrealized gain (loss) on available-for-sale securities, net of tax | (619) | 2,223 |
Other comprehensive income (loss) | (619) | 2,223 |
Comprehensive loss | $ (36,747) | $ (51,619) |
ORGANIZATION AND DESCRIPTION OF BUSINESS |
3 Months Ended |
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Mar. 31, 2024 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
ORGANIZATION AND DESCRIPTION OF BUSINESS | ORGANIZATION AND DESCRIPTION OF BUSINESS Matterport, Inc., together with its subsidiaries (“Matterport” or the “Company”), is leading the digitization and datafication of the built world. Matterport’s pioneering technology has set the standard for digitizing, accessing and managing buildings, spaces and places online. Matterport’s platform comprised of innovative software, spatial data-driven data science, and 3D capture technology has broken down the barriers that have kept the largest asset class in the world, buildings and physical spaces, offline and underutilized for so long. The Company was incorporated in the state of Delaware in 2011. The Company is headquartered at Sunnyvale, California. On July 22, 2021 (the “Closing Date”), the Company consummated the merger (collectively with the other transactions described in the Merger Agreement, the “Merger”, “Closing”, or “Transactions”) pursuant to an Agreement and Plan of Merger, dated February 7, 2021 (the “Merger Agreement”), by and among the Company (formerly known as Gores Holdings VI, Inc.), the pre-Merger Matterport, Inc. (now known as Matterport Operating, LLC) (“Legacy Matterport”), Maker Merger Sub, Inc. (“First Merger Sub”), a direct, wholly owned subsidiary of the Company, and Maker Merger Sub II, LLC (“Second Merger Sub”), a direct, wholly owned subsidiary of the Company, pursuant to which First Merger Sub merged with and into Legacy Matterport, with Legacy Matterport continuing as the surviving corporation (the “First Merger”), and immediately following the First Merger and as part of the same overall transaction as the First Merger, Legacy Matterport merged with and into Second Merger Sub, with Second Merger Sub continuing as the surviving entity as a wholly owned subsidiary of the Company, under the new name “Matterport Operating, LLC”. Upon the closing of the Merger, we changed our name to Matterport, Inc. Unless the context otherwise requires, the “Company” refers to the combined company and its subsidiaries following the Merger, “Gores” refers to the Company prior to the Merger and “Legacy Matterport” refers to Matterport, Inc. prior to the Merger.
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SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES |
3 Months Ended |
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Mar. 31, 2024 | |
Accounting Policies [Abstract] | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Summary of Significant Accounting Policies The Company’s significant accounting policies are discussed in “Note 2 – Summary of Significant Accounting Policies” of the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2023, which was filed with the SEC on February 27, 2024. There have been no significant changes to these policies during the three months ended March 31, 2024. Basis of Presentation The accompanying unaudited condensed consolidated financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America (“U.S. GAAP”) and applicable rules and regulations of the SEC, regarding interim financial reporting. Certain information and disclosures normally included in the financial statements prepared in accordance with U.S. GAAP have been condensed or omitted pursuant to such rules and regulations. These unaudited condensed consolidated financial statements should be read in conjunction with the audited consolidated financial statements and related notes in the Company’s 2023 Form 10-K for the fiscal year ended December 31, 2023, which provides a more complete discussion of the Company’s accounting policies and certain other information. In the opinion of the Company, the accompanying unaudited condensed consolidated financial statements contain all adjustments, consisting of only normal recurring adjustments, necessary for a fair statement of its financial position as of March 31, 2024, and its results of operations for the three months ended March 31, 2024 and 2023, and cash flows for the three months ended March 31, 2024 and 2023. The condensed consolidated balance sheet as of December 31, 2023, was derived from audited annual financial statements but does not contain all of the footnote disclosures from the annual financial statements. Reclassification Certain prior-period amounts have been reclassified in the accompanying Condensed Consolidated Financial Statements and Notes thereto in order to conform to the current period presentation. Principles of Consolidation The accompanying condensed consolidated financial statements include the accounts of the Company and its wholly owned subsidiaries. All significant intercompany balances and transactions have been eliminated in consolidation. Use of Estimates The preparation of the accompanying condensed consolidated financial statements in conformity with U.S. GAAP requires management to make certain estimates and assumptions that affect the reported amounts and disclosures in the condensed consolidated financial statements and accompanying notes. Significant estimates include assumptions related to the fair value of common stock before the Merger and other assumptions used to measure stock-based compensation, fair value of assets acquired and liabilities assumed in business combinations, fair value of identified intangibles, goodwill impairment, valuation of deferred tax assets, the estimate of net realizable value of inventory, allowance for doubtful accounts, the fair value of warrants liability, loss contingencies, and the determination of stand-alone selling price of various performance obligations. As a result, many of the Company’s estimates and assumptions require increased judgment and these estimates may change materially in future periods. Management evaluates its estimates and assumptions on an ongoing basis using historical experience and various other factors, including the current economic environment, which management believes to be reasonable under the circumstances, the results of which form the basis for making judgments about the carrying values of assets and liabilities that are not readily apparent from other sources. The Company adjusts such estimates and assumptions when dictated by facts and circumstances. Changes in those estimates resulting from continuing changes in the economic environment will be reflected in the condensed consolidated financial statements in future periods. Actual results may differ materially from those estimates. Segment Information The Company has a single operating segment and reportable segment. The Company’s chief operating decision-maker (“CODM”) is its Chief Executive Officer, who reviews financial information presented on a consolidated basis for purposes of making operating decisions, assessing financial performance, and allocating resources. Refer to Note 3 for information regarding the Company’s revenue by geography. Substantially all of the Company’s long-lived assets are located in the United States. Concentration of Credit Risk and Other Risks and Uncertainties Financial instruments that subject the Company to concentrations of credit risk consist primarily of cash and cash equivalents, investments, and accounts receivable. The Company maintains its cash balances in accounts held by major banks and financial institutions located in the United States. Such bank deposits from time to time may be exposed to credit risk in excess of the Federal Deposit Insurance Corporation insurance limit, and the Company considers such risk to be minimal. We invest only in high-quality credit instruments and maintain our cash and cash equivalents and available-for-sale investments in fixed income securities. Management believes that the financial institutions that hold our investments are financially sound and, accordingly, are subject to minimal credit risk. Deposits held with banks may exceed the amount of insurance provided on such deposits. The Company’s accounts receivable is derived from customers located both inside and outside the United States. The Company mitigates its credit risks by performing ongoing credit evaluations of the financial condition of its customers and requires advance payment from customers in certain circumstances. The Company generally does not require collateral from its customers. No customer accounted for more than 10% of the Company’s total accounts receivable at March 31, 2024 and December 31, 2023. No customer accounted for more than 10% of the Company’s total revenue for the three months ended March 31, 2024 and 2023. Accounting Pronouncements – Recently Issued Accounting Standards Not Yet Adopted In November 2023, the FASB issued ASU No. 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures (“ASU 2023-07”). The amendments in this ASU require disclosures, on an annual and interim basis, of significant segment expenses that are regularly provided to the CODM, as well as the aggregate amount of other segment items included in the reported measure of segment profit or loss, the title and position of the CODM and an explanation of how the CODM uses the reported measure(s) of segment profit or loss. This ASU will be applied retrospectively and is effective for public entities for annual periods beginning after December 15, 2023 and for interim reporting periods beginning after December 15, 2024. Early adoption is permitted. The Company is currently assessing the impact the guidance will have on the Company’s financial statements and disclosures. In December 2023, the FASB issued ASU No. 2023-09, Income Taxes (Topic 740): Improvement to Income Tax Disclosures (“ASU 2023-09”) to enhance the transparency, effectiveness and decision usefulness of income tax disclosures primarily related to the rate reconciliation and income taxes paid information. ASU 2023-09 is effective for annual periods beginning after December 15, 2024 on a prospective basis. Early adoption and retrospective application are permitted. The Company is currently assessing the impact the guidance will have on the Company’s financial statements and disclosures.
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REVENUE |
3 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 31, 2024 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Revenue from Contract with Customer [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
REVENUE | REVENUE Disaggregated Revenue—The following table shows the revenue by geography for the three months ended March 31, 2024 and 2023, respectively (in thousands):
No country other than the United States accounted for more than 10% of the Company’s revenue for the three months ended March 31, 2024 and 2023, respectively. The geographical revenue information is determined by the ship-to address of the products and the billing address of the customers of the services. The following table shows over time versus point-in-time revenue for the three months ended March 31, 2024 and 2023, respectively (in thousands):
Contract Asset and Liability Balances—Contract assets consist of unbilled accounts receivable and are recorded when revenue is recognized in advance of scheduled billings. Scheduled billings in advance of revenue recognized results in the timing of revenue recognition differing from the timing of invoicing to customers, and this timing difference results in contract liabilities (deferred revenue) on the Company’s condensed consolidated balance sheets. The accounts receivable and contract balances as of March 31, 2024 and December 31, 2023 were as follows (in thousands):
During the three months ended March 31, 2024 and 2023, the Company recognized revenue of $11.1 million and $5.9 million that was included in the deferred revenue balance at the beginning of the fiscal year, respectively. Contracted but unsatisfied performance obligations were $65.1 million at the end of March 31, 2024 and consisted of deferred revenue and backlog. As of March 31, 2024, the contracted but unsatisfied or partially unsatisfied performance obligations expected to be recognized are as follows (in thousands):
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GOODWILL AND INTANGIBLE ASSETS |
3 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Goodwill and Intangible Assets Disclosure [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
GOODWILL AND INTANGIBLE ASSETS | GOODWILL AND INTANGIBLE ASSETS Goodwill—As of March 31, 2024 and December 31, 2023, goodwill was $69.6 million. The Company did not recognize any impairment losses on goodwill during the three months ended March 31, 2024 and 2023, respectively. Purchased Intangible Assets—The following table presents details of the Company’s purchased intangible assets as of March 31, 2024 and December 31, 2023 (in thousands).
The Company recognized amortization expense of $0.4 million and $0.4 million for the three months ended March 31, 2024 and 2023, respectively. The Company did not recognize any impairment losses on intangible assets or other long-lived assets during the three months ended March 31, 2024 and 2023, respectively. The following table summarizes estimated future amortization expense for the Company’s intangible assets as of March 31, 2024 (in thousands):
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BALANCE SHEET COMPONENTS |
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Balance Sheet Related Disclosures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
BALANCE SHEET COMPONENTS | BALANCE SHEET COMPONENTS Allowance for Doubtful Accounts—Allowance for doubtful accounts as of March 31, 2024 and 2023 and the rollforward for the three months ended March 31, 2024 and 2023 were as follows (in thousands):
Inventories—Inventories as of March 31, 2024 and December 31, 2023 consisted of the following (in thousands):
Property and Equipment, Net—Property and equipment as of March 31, 2024 and December 31, 2023 consisted of the following (in thousands):
Depreciation and amortization expenses of property and equipment were $5.1 million and $3.9 million for the three months ended March 31, 2024 and 2023, respectively. Additions to capitalized software and development costs, inclusive of stock-based compensation in the three months ended March 31, 2024 and 2023, was $4.4 million and $5.0 million, respectively. These are recorded as part of property and equipment, net on the condensed consolidated balance sheets. Amortization expense was $4.9 million and $3.8 million for three months ended March 31, 2024 and 2023, respectively, of which $4.5 million and $3.5 million was recorded to costs of revenue related to subscription and $0.4 million and $0.3 million to selling, general and administrative in the condensed consolidated statements of operations, respectively. Accrued Expenses and Other Current Liabilities—Accrued expenses and other current liabilities as of March 31, 2024 and December 31, 2023, consisted of the following (in thousands):
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FAIR VALUE MEASUREMENTS |
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Fair Value Disclosures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
FAIR VALUE MEASUREMENTS | FAIR VALUE MEASUREMENTS We categorize assets and liabilities recorded or disclosed at fair value on our condensed consolidated balance sheets based upon the level of judgment associated with inputs used to measure their fair value. The categories are as follows: Level 1—Inputs are unadjusted quoted prices for identical assets or liabilities in active markets. Level 2—Inputs to the valuation methodology include quoted prices for similar assets and liabilities in active markets, or inputs that are observable for the asset or liability, either directly or indirectly through market corroboration, for substantially the full term of the financial instrument. Level 3—Inputs to the valuation methodology are unobservable and significant to the fair value measurement. The inputs require significant management judgment or estimation. The Company’s financial assets and liabilities that were measured at fair value on a recurring basis were as follows (in thousands):
Available-for-sale Debt Securities The following tables summarize the amortized cost, unrealized gains and losses, and fair value of our available-for-sale debt securities as of March 31, 2024 and December 31, 2023 (in thousands):
As of March 31, 2024, the gross unrealized losses of $0.2 million are substantially all in a continuous unrealized loss position for less than 12 months, which were related to $189.1 million of available-for-sale debt securities. As of December 31, 2023, the gross unrealized losses were not material. Unrealized losses related to these securities are due to interest rate fluctuations as opposed to credit quality. In addition, we do not intend to sell and it is not likely that we would be required to sell these securities before recovery of their amortized cost basis, which may be at maturity. We did not recognize any credit losses related to our available-for-sale debt securities during the three months ended March 31, 2024 and 2023. The following table summarizes the amortized cost and fair value of our available-for-sale debt securities as of March 31, 2024, by contractual years-to-maturity (in thousands):
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COMMITMENTS AND CONTINGENCIES |
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Commitments and Contingencies Disclosure [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
COMMITMENTS AND CONTINGENCIES | COMMITMENTS AND CONTINGENCIES Purchase Obligation—The Company has purchase obligations, which includes agreements and issued purchase orders containing non-cancelable payment terms to purchase goods and services. As of March 31, 2024, future minimum purchase obligations are as follows (in thousands):
Litigation—The Company is named from time to time as a party to lawsuits and other types of legal proceedings and claims in the normal course of business. The Company accrues for contingencies when it believes that a loss is probable and that it can reasonably estimate the amount of any such loss. On July 23, 2021, plaintiff William J. Brown, a former employee and a shareholder of Matterport, Inc. (now known as Matterport Operating, LLC) (“Legacy Matterport”), sued Legacy Matterport, Gores Holdings VI, Inc. (now known as Matterport, Inc.), Maker Merger Sub Inc., Maker Merger Sub II, LLC, and Legacy Matterport directors R.J. Pittman, David Gausebeck, Matt Bell, Peter Hebert, Jason Krikorian, Carlos Kokron and Michael Gustafson (collectively, the “Defendants”) in the Court of Chancery of the State of Delaware. The plaintiff’s initial complaint claimed that Defendants imposed invalid transfer restrictions on his shares of Matterport stock in connection with the merger transactions between Matterport, Inc. and Legacy Matterport (the “Transfer Restrictions”), and that Legacy Matterport’s board of directors violated their fiduciary duties in connection with a purportedly misleading letter of transmittal. The initial complaint sought damages and costs, as well as a declaration from the court that he may freely transfer his shares of Class A common stock of Matterport received in connection with the merger transactions. An expedited trial regarding the facial validity of the Transfer Restrictions took place in December 2021. On January 11, 2022, the court issued a ruling that the Transfer Restrictions did not apply to the plaintiff. The opinion did not address the validity of the Transfer Restrictions more broadly. Matterport filed a notice of appeal of the court’s ruling on February 8, 2022, and a hearing was held in front of the Delaware Supreme Court on July 13, 2022, after which the appellate court affirmed the lower court’s ruling. Separate proceedings regarding the plaintiff’s remaining claims are pending. The plaintiff filed a Third Amended Complaint on September 16, 2022, which asserts the causes of action described above but omits as defendants Maker Merger Sub Inc., Maker Merger Sub II, LLC, and Legacy Matterport directors David Gausebeck, Matt Bell, and Carlos Kokron, and adds an additional cause of action alleging that Matterport, Inc. violated the Delaware Uniform Commercial Code by failing to timely register Brown’s requested transfer of Matterport, Inc. shares. The remaining defendants’ answer to the Third Amended Complaint was filed on November 9, 2022, and the parties have completed discovery. Trial was held in November 2023 and a post-trial hearing was held on February 22, 2024. On February 1, 2024, two stockholders, Laurie Hanna and Vasana Smith (collectively “Plaintiffs”) filed a complaint derivatively on behalf of Matterport, Inc. against R.J. Pittman, Michael Gustafson, Peter Hebert, James Krikorian, James Daniel Fay, David Gausebeck, Japjit Tulsi, Judi Otteson, Jay Remley, and numerous shareholders of Matterport, Inc. (collectively “Defendants”) in the Court of Chancery of the State of Delaware. The complaint alleges that the issuance of 23,460,000 Earn-Out shares worth $225 million was a breach of fiduciary duty and an act of corporate waste, which unjustly enriched recipients of the Earn-Out shares at the expense of Matterport and its common stockholders. Specifically, the Plaintiffs allege that issuance of the Earn-Out Shares violated the February 7, 2021 Agreement and Plan of Merger pursuant to which Legacy Matterport and Gores Holding VI, a publicly listed special purpose acquisition company, and two Gores subsidiaries merged, providing Legacy Matterport shareholders with shares of the surviving public company which took the name Matterport. The complaint seeks disgorgement all unjust enrichment by the Defendants, an award of compensatory damages to Matterport, an award of costs and disbursements to the Plaintiffs, as well as a declaration that Plaintiffs may maintain the action on behalf of Matterport and that Plaintiffs are adequate representatives of Matterport, and a finding that demand on the Matterport board is excused as futile. On July 20, 2021, the Company, then operating under the name Gores Holdings VI, Inc., held a special meeting of stockholders (the “2021 Special Meeting”) in lieu of the 2021 annual meeting of the Company’s stockholders to approve certain matters relating to its proposed business combination with Matterport, Inc., Maker Merger Sub, Inc. and Maker Merger Sub II, LLC. One of these matters was a proposal to adopt the Second Amended and Restated Certificate of Incorporation of the Company (the “New Certificate of Incorporation”), which, among other things, increased the total number of authorized shares of the Company’s Class A common stock, par value $0.0001 per share (the “Class A common stock”), from 400,000,000 shares to 600,000,000 shares. The New Certificate of Incorporation was approved by a majority of the shares of Class A common stock and the Company’s Class F common stock, par value $0.0001 per share (the “Class F common stock”), voting together as a single class, that were outstanding as of the record date for the 2021 Special Meeting. After the 2021 Special Meeting, the business combination was consummated and the New Certificate of Incorporation became effective. A December 2022 decision of the Delaware Court of Chancery (the “Court of Chancery”) has created uncertainty as to whether Section 242(b)(2) of the Delaware General Corporation Law (“DGCL”) would have required the New Certificate of Incorporation to be approved by a separate vote of the majority of the Company’s then-outstanding shares of Class A common stock, in addition to a majority of the shares of Class A common stock and Class F common stock voting together. The Company continues to believe that a separate vote of Class A common stock was not required to approve the New Certificate of Incorporation. However, in light of the Court of Chancery decision, on February 16, 2023, the Company filed a petition (the “Petition”) in the Court of Chancery pursuant to Section 205 of the DGCL seeking validation of the New Certificate of Incorporation, and the shares issued in reliance on the effectiveness of the New Certificate of Incorporation to resolve any uncertainty with respect to those matters. Section 205 of the DGCL permits the Court of Chancery, at its discretion, to ratify and validate potentially defective corporate acts and stock after considering a variety of factors. On March 14, 2023, the Court of Chancery granted the Petition validating the New Certificate of Incorporation and all shares of capital stock issued in reliance on the effectiveness of the New Certificate of Incorporation. Accordingly, the Company has determined that his matter is now complete. On May 11, 2020, Redfin Corporation (“Redfin”) was served with a complaint by Appliance Computing, Inc. III, d/b/a Surefield (“Surefield”), filed in the United States District Court for the Western District of Texas, Waco Division. In the complaint, Surefield asserted that Redfin’s use of Matterport’s 3D-Walkthrough technology infringes four of Surefield’s patents. Redfin has asserted defenses in the litigation that the patents in question are invalid and have not been infringed upon. We have agreed to indemnify Redfin for this matter pursuant to our existing agreements with Redfin. The parties have vigorously defended against this litigation. The matter went to jury trial in May 2022 and resulted in a jury verdict finding that Redfin had not infringed upon any of the asserted patent claims and that all asserted patent claims were invalid. Final judgment was entered on August 15, 2022. On September 12, 2022, Surefield filed post trial motions seeking to reverse the jury verdict. Redfin has filed oppositions to the motions. In addition, on May 16, 2022, the Company filed a declaratory judgment action against Appliance Computing III, Inc., d/b/a Surefield, seeking a declaratory judgment that the Company had not infringed upon the four patents asserted against Redfin and one additional, related patent. The matter is pending in the Western District of Washington and captioned Matterport, Inc. v. Appliance Computing III, Inc. d/b/a Surefield, Case No. 2:22-cv-00669 (W.D. Wash.). Surefield has filed a motion to dismiss or in the alternative transfer the case to the United States District Court for the Western District of Texas. The Company filed an opposition to the motion. On August 28, 2023, the Court denied Surefield’s motion to dismiss the Washington case but stayed the action pending the resolution of the Texas case. On January 29, 2021, Legacy Matterport received a voluntary request for information from the Division of Enforcement of the SEC relating to certain sales and repurchases of its securities in the secondary market. We believe we have complied fully with the request. We have not received any updates from the SEC as to the scope, duration or ultimate resolution of the investigation, and accordingly believes this matter is concluded. The Company monitors developments in these legal matters that could affect the estimate if the Company had previously accrued. As of March 31, 2024 and December 31, 2023, there were no amounts accrued that the Company believes would be material to its financial position. Indemnification—In the ordinary course of business, the Company enters into certain agreements that provide for indemnification by the Company of varying scope and terms to customers, vendors, directors, officers, employees and other parties with respect to certain matters. Indemnification includes losses from breach of such agreements, services provided by the Company, or third-party intellectual property infringement claims. These indemnities may survive termination of the underlying agreement and the maximum potential amount of future indemnification payments, in some circumstances, are not subject to a cap. As of March 31, 2024, there were no known events or circumstances that have resulted in a material indemnification liability.
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STOCKHOLDERS’ EQUITY |
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Equity [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
STOCKHOLDERS’ EQUITY | STOCKHOLDERS’ EQUITY The Company had reserved shares of common stock for future issuance as of March 31, 2024 as follows (in thousands):
Accumulated Other Comprehensive Loss The following table summarizes the changes in accumulated other comprehensive losses by component, net of tax (in thousands):
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PRIVATE WARRANTS |
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Equity [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
PRIVATE WARRANTS | PRIVATE WARRANTS Prior to the Closing, Gores issued 6,900,000 Public Warrants and 4,450,000 Private Warrants. Each whole warrant entitles the holder to purchase one share of the Company’s Class A common stock at a price of $11.50 per share, subject to adjustments. The Warrants became exercisable on December 15, 2021 and will expire on July 22, 2026, which is five years after the Closing. On January 14, 2022, the Public Warrants ceased trading on the Nasdaq Global Market. The Public Warrants were either exercised or redeemed during the three months ended March 31, 2022 and no Public Warrants remained outstanding thereafter. A total of 1.7 million Private Warrants remained outstanding as of March 31, 2024 and December 31, 2023. No Private Warrants have been exercised during the three months ended March 31, 2024. The Company used a Black Scholes model to determine the fair value of the Private Warrants as Level 3 financial instruments. The primary significant unobservable input used to evaluate the fair value measurement of the Company’s Private Warrants is the expected volatility of the ordinary shares. Significant increases (decreases) in the expected volatility in isolation would result in a significantly higher (lower) fair value measurement. The Private Warrants were valued at $0.24 per unit as of March 31, 2024. The following table provides the assumptions used to estimate the fair value of the Private Warrants during the three months ended March 31, 2024:
The Private Warrants are measured for fair value at the end of each quarter. The following table presents the changes in the warrants liability as of March 31, 2024 (in thousands):
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STOCK PLAN |
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Share-Based Payment Arrangement [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
STOCK PLAN | STOCK PLAN 2021 Incentive Award Plan In connection with the Closing on July 22, 2021, the Company approved the 2021 Incentive Award Plan (the “2021 Plan”), an incentive compensation plan for the benefit of eligible employees, consultants, and directors of the Company and its subsidiaries. The Company concurrently assumed the Amended and Restated 2011 Stock Incentive Plan (the “2011 Plan”) and all outstanding awards thereunder, effective as of the Closing, and no further awards shall be granted under the 2011 Plan. The 2021 Plan provides that the initial aggregate number of shares of Class A common stock, available for issuance pursuant to awards thereunder shall be the sum of (a) 10% of the outstanding shares of Class A common stock as of the Closing, which is equivalent to 24.2 million shares of Class A common stock (the “Initial Plan Reserve”), (b) any shares of Class A common stock subject to outstanding equity awards under the amended and restated the 2011 Stock Plan which, following the effective date of the 2021 Plan, become available for issuance under the 2021 Plan and (c) an annual increase on the first day of each calendar year beginning on January 1, 2022 and ending on and including January 1, 2031 equal to a number of shares equal to 5% of the aggregate number of shares of Class A common stock outstanding on the final day of the immediately preceding calendar year. The maximum aggregate number of shares of common stock that may be issued under the 2021 Plan upon the exercise of ISOs is 181.5 million shares of Class A common stock. Shares forfeited due to employee termination or expiration are returned to the share pool. Similarly, shares withheld upon exercise to provide for the exercise price and/or taxes due and shares repurchased by the Company are also returned to the pool. As of March 31, 2024, a total of 15.1 million shares remained available for future grant under the Company’s 2021 Plan. 2021 Employee Stock Purchase Plan In connection with the Closing on July 22, 2021, the Company approved the 2021 Employee Stock Purchase Plan (“2021 ESPP”). The 2021 ESPP provides that the aggregate number of shares of Class A common stock available for issuance pursuant to awards under the 2021 ESPP shall be the sum of (a) 3% of the number of outstanding shares of Class A common stock as of the Closing, which is equivalent to 7.3 million shares of Class A common stock (the “Initial ESPP Reserve”), and (b) an annual increase on the first day of each calendar year beginning on January 1, 2022 and ending on and including January 1, 2031 equal to the lesser of (i) 1% of the aggregate number of shares of Class A common stock outstanding on the last day of the immediately preceding fiscal year and (ii) such smaller number of shares of common stock as may be determined by the Company’s board of directors; provided, however, that the number of shares of common stock that may be issued or transferred pursuant to the rights granted under the 2021 ESPP shall not exceed 15.25% of the outstanding shares of Class A common stock as of the Closing, which is equivalent to 36.9 million shares. Our 2021 ESPP permits eligible employees to acquire shares of our common stock at 85% of the lower of the fair market value of our common stock on the first trading day of each offering period or on the purchase date. If the fair market value of our common stock on the purchase date is lower than the first trading day of the offering period, the current offering period will be canceled after purchase and a new 24-month offering period will begin. Participants may purchase shares of common stock through payroll deductions of up to 15% of their eligible compensation, subject to purchase limits of 3,000 shares per purchase period, 12,000 per offering period, and $25,000 worth of stock for each calendar year. The 2021 ESPP provides for consecutive offering periods that will typically have a duration of approximately 24 months in length and is comprised of four purchase periods of approximately six months in length. The offering periods are scheduled to start on the first trading day on or after June 1 and December 1 of each year, except for the first offering period commenced on July 23, 2021 and ended on May 31, 2023. As of March 31, 2024, a total of 14.1 million shares of our common stock remained available for sale under our 2021 ESPP. For the three months ended March 31, 2024, there were no shares of common stock purchased under the 2021 ESPP. Stock Option Activities—The following table summarizes the stock option activities under the Company’s stock plans for three months ended March 31, 2024 (in thousands, except for per share data):
As of March 31, 2024, unrecognized stock-based compensation expense related to unvested options was $0.2 million, which is expected to be amortized over a weighted-average vesting period of 0.7 years. RSU and PRSU Activities—The following table summarizes the RSU activity under the Company’s stock plans for the three months ended March 31, 2024 (in thousands, except per share data):
Stock-based compensation expense for awards with only service conditions are recognized on a straight-line basis over the requisite service period of the related award. The performance-based RSU (“PRSU”) awards have both service-based and performance-based vesting conditions. The service-based vesting condition for these awards is typically satisfied over four years with a cliff vesting period of one year and continued vesting quarterly thereafter. The performance-based vesting condition is satisfied upon the occurrence of a liquidity event, as defined in the Amended and Restated 2011 Stock Plan. The performance based vesting condition was deemed satisfied upon the Closing. As of March 31, 2024, unrecognized compensation costs related to unvested RSUs and PRSUs were $199.4 million and $0.5 million, respectively. The remaining unrecognized compensation costs for RSUs and PRSUs are expected to be recognized over a weighted-average period of 1.7 years and 0.7 years, respectively, excluding additional stock-based compensation expense related to any future grants of share-based awards. Employee Stock Purchase Plan—The fair value of shares issued under our 2021 ESPP are estimated on the grant date using the Black-Scholes option pricing model. The following table summarizes the assumptions used to determine fair values of our 2021 ESPP:
The expected volatility is based on the average volatility of a peer group of representative public companies with sufficient trading history over the expected term. The expected term represents the term from the first day of the offering period to the purchase dates within each offering period. The dividend yield assumption is based on our expectations about our anticipated dividend policy. The risk-free interest rate is based on the implied yield available on U.S. Treasury zero-coupon issues with maturities that approximate the expected term. As of March 31, 2024, unrecognized compensation cost related to the 2021 ESPP was $0.8 million, which is expected to be recognized over the remaining weighted-average service period of 1.2 years. Stock-based Compensation— The Company recognizes stock-based compensation expense for awards with only service conditions on a straight-line basis over the requisite service period of the related award and recognizes stock-based compensation expenses for awards with performance conditions on a straight-line basis over the requisite service period for each separate vesting portion of the awards when it is probable that the performance condition will be achieved. Forfeitures are accounted for in the period in which they occur. The amount of stock-based compensation related to stock-based awards to employees in the Company’s consolidated statements of operations for the three months ended March 31, 2024 and 2023 were as follows (in thousands):
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INCOME TAXES |
3 Months Ended |
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Mar. 31, 2024 | |
Income Tax Disclosure [Abstract] | |
INCOME TAXES | INCOME TAXES The income tax provision for interim periods is determined using an estimate of the Company’s annual effective tax rate as adjusted for discrete items arising in that quarter. Given the Company has a full valuation allowance recorded against its domestic net deferred tax assets and operating losses in the US, and its foreign subsidiaries are in operating profit, the Company has applied the exception to use a worldwide effective tax rate under ASC 740-270-30-36. The Company used the foreign jurisdiction’s statutory rate as an estimate for the annual effective tax rate (“AETR”). The quarterly tax provision, and estimate of the Company’s annual effective tax rate, is subject to variation due to several factors, including variability in pre-tax income (or loss), the mix of jurisdictions to which such income relates, changes in how we do business, and tax law developments. The tax expense for the three months ended March 31, 2024 and the tax benefit for three months ended March 31, 2023 was primarily attributable to foreign income taxes. The Company records deferred tax assets to the extent we believe these assets will more likely than not be realized. In making such determination, the Company considered all available positive and negative evidence and continued to conclude that as of March 31, 2024, it is not more likely than not that the Company will realize the benefits of its remaining net deferred tax assets.
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NET LOSS PER SHARE ATTRIBUTABLE TO COMMON STOCKHOLDERS |
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Earnings Per Share [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
NET LOSS PER SHARE ATTRIBUTABLE TO COMMON STOCKHOLDERS | NET LOSS PER SHARE ATTRIBUTABLE TO COMMON STOCKHOLDERS Basic net loss per share attributable to common stockholders was computed by dividing net loss by the weighted-average number of common shares outstanding for the three months ended March 31, 2024 and 2023 (in thousands, except for per share data). Diluted net loss per share gives effect to all potential shares of common stock, including stock options and RSUs to the extent these are dilutive. We calculated basic and diluted net loss per share attributable to common stockholders as follows (in thousands, except per share amounts):
Basic net loss per share is the same as diluted net loss per share for the period we reported a net loss. The following potentially dilutive outstanding securities were excluded from the computation of diluted net loss per share attributable to common stockholders, basic and diluted, because their effect would have been anti-dilutive or issuance of such shares is contingent upon the satisfaction of certain conditions which were not satisfied by the end of the period (shares in thousands):
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SUBSEQUENT EVENTS |
3 Months Ended |
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Mar. 31, 2024 | |
Subsequent Events [Abstract] | |
SUBSEQUENT EVENTS | SUBSEQUENT EVENTS Proposed Merger On April 21, 2024, the Company entered into an Agreement and Plan of Merger and Reorganization (the “Merger Agreement”) with CoStar Group, Inc., a Delaware corporation (“CoStar”), Matrix Merger Sub, Inc., a Delaware corporation and a wholly owned subsidiary of CoStar (“Merger Sub I”), and Matrix Merger Sub II LLC, a Delaware limited liability company and a wholly owned subsidiary of CoStar (“Merger Sub II” and, together with Merger Sub I, the “Merger Subs”). Pursuant to the Merger Agreement, Merger Sub I will be merged with and into the Company, with the Company surviving as a wholly owned subsidiary of CoStar (the “First Merger”). Immediately thereafter, subject to the terms of the Merger Agreement and, in certain circumstances, at the discretion of CoStar, the Company will merge with and into Merger Sub II, which will survive the merger as a wholly owned subsidiary of CoStar (the “Second Merger and, together with the First Merger, the “Mergers”). Subject to the terms and conditions set forth in the Merger Agreement, at the effective time of the First Merger (the “First Effective Time”), each share of Class A common stock, par value $0.0001 per share, of the Company (each a “Matterport Share” and collectively, the “Matterport Shares”) issued and outstanding immediately prior to the First Effective Time (other than Matterport Shares held by the Company (including in treasury), CoStar or their respective subsidiaries and Matterport Shares that are held by stockholders who have perfected and not withdrawn a demand for appraisal rights pursuant to Delaware law) will be converted into the right to receive (i) $2.75 in cash (the “Per Share Cash Consideration”) plus (ii) a number of shares of CoStar common stock, par value $0.01 per share (the “CoStar Shares”), equal to the Exchange Ratio (as defined in the Merger Agreement), subject to a right to receive cash in lieu of fractional shares (such cash and shares collectively, the “Merger Consideration”).
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Pay vs Performance Disclosure - USD ($) $ in Thousands |
3 Months Ended | |
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Mar. 31, 2024 |
Mar. 31, 2023 |
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Pay vs Performance Disclosure | ||
Net loss | $ (36,128) | $ (53,842) |
Insider Trading Arrangements |
3 Months Ended |
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Mar. 31, 2024 | |
Trading Arrangements, by Individual | |
Rule 10b5-1 Arrangement Adopted | false |
Non-Rule 10b5-1 Arrangement Adopted | false |
Rule 10b5-1 Arrangement Terminated | false |
Non-Rule 10b5-1 Arrangement Terminated | false |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) |
3 Months Ended |
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Mar. 31, 2024 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation The accompanying unaudited condensed consolidated financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America (“U.S. GAAP”) and applicable rules and regulations of the SEC, regarding interim financial reporting. Certain information and disclosures normally included in the financial statements prepared in accordance with U.S. GAAP have been condensed or omitted pursuant to such rules and regulations. These unaudited condensed consolidated financial statements should be read in conjunction with the audited consolidated financial statements and related notes in the Company’s 2023 Form 10-K for the fiscal year ended December 31, 2023, which provides a more complete discussion of the Company’s accounting policies and certain other information. In the opinion of the Company, the accompanying unaudited condensed consolidated financial statements contain all adjustments, consisting of only normal recurring adjustments, necessary for a fair statement of its financial position as of March 31, 2024, and its results of operations for the three months ended March 31, 2024 and 2023, and cash flows for the three months ended March 31, 2024 and 2023. The condensed consolidated balance sheet as of December 31, 2023, was derived from audited annual financial statements but does not contain all of the footnote disclosures from the annual financial statements.
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Reclassification | Reclassification Certain prior-period amounts have been reclassified in the accompanying Condensed Consolidated Financial Statements and Notes thereto in order to conform to the current period presentation.
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Principles of Consolidation | Principles of Consolidation The accompanying condensed consolidated financial statements include the accounts of the Company and its wholly owned subsidiaries. All significant intercompany balances and transactions have been eliminated in consolidation.
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Use of Estimates | Use of Estimates The preparation of the accompanying condensed consolidated financial statements in conformity with U.S. GAAP requires management to make certain estimates and assumptions that affect the reported amounts and disclosures in the condensed consolidated financial statements and accompanying notes. Significant estimates include assumptions related to the fair value of common stock before the Merger and other assumptions used to measure stock-based compensation, fair value of assets acquired and liabilities assumed in business combinations, fair value of identified intangibles, goodwill impairment, valuation of deferred tax assets, the estimate of net realizable value of inventory, allowance for doubtful accounts, the fair value of warrants liability, loss contingencies, and the determination of stand-alone selling price of various performance obligations. As a result, many of the Company’s estimates and assumptions require increased judgment and these estimates may change materially in future periods. Management evaluates its estimates and assumptions on an ongoing basis using historical experience and various other factors, including the current economic environment, which management believes to be reasonable under the circumstances, the results of which form the basis for making judgments about the carrying values of assets and liabilities that are not readily apparent from other sources. The Company adjusts such estimates and assumptions when dictated by facts and circumstances. Changes in those estimates resulting from continuing changes in the economic environment will be reflected in the condensed consolidated financial statements in future periods. Actual results may differ materially from those estimates.
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Segment Information | Segment Information The Company has a single operating segment and reportable segment. The Company’s chief operating decision-maker (“CODM”) is its Chief Executive Officer, who reviews financial information presented on a consolidated basis for purposes of making operating decisions, assessing financial performance, and allocating resources. Refer to Note 3 for information regarding the Company’s revenue by geography. Substantially all of the Company’s long-lived assets are located in the United States.
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Concentration of Credit Risk and Other Risks and Uncertainties | Concentration of Credit Risk and Other Risks and Uncertainties Financial instruments that subject the Company to concentrations of credit risk consist primarily of cash and cash equivalents, investments, and accounts receivable. The Company maintains its cash balances in accounts held by major banks and financial institutions located in the United States. Such bank deposits from time to time may be exposed to credit risk in excess of the Federal Deposit Insurance Corporation insurance limit, and the Company considers such risk to be minimal. We invest only in high-quality credit instruments and maintain our cash and cash equivalents and available-for-sale investments in fixed income securities. Management believes that the financial institutions that hold our investments are financially sound and, accordingly, are subject to minimal credit risk. Deposits held with banks may exceed the amount of insurance provided on such deposits. The Company’s accounts receivable is derived from customers located both inside and outside the United States. The Company mitigates its credit risks by performing ongoing credit evaluations of the financial condition of its customers and requires advance payment from customers in certain circumstances. The Company generally does not require collateral from its customers.
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Accounting Pronouncements – Recently Issued Accounting Standards Not Yet Adopted | Accounting Pronouncements – Recently Issued Accounting Standards Not Yet Adopted In November 2023, the FASB issued ASU No. 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures (“ASU 2023-07”). The amendments in this ASU require disclosures, on an annual and interim basis, of significant segment expenses that are regularly provided to the CODM, as well as the aggregate amount of other segment items included in the reported measure of segment profit or loss, the title and position of the CODM and an explanation of how the CODM uses the reported measure(s) of segment profit or loss. This ASU will be applied retrospectively and is effective for public entities for annual periods beginning after December 15, 2023 and for interim reporting periods beginning after December 15, 2024. Early adoption is permitted. The Company is currently assessing the impact the guidance will have on the Company’s financial statements and disclosures. In December 2023, the FASB issued ASU No. 2023-09, Income Taxes (Topic 740): Improvement to Income Tax Disclosures (“ASU 2023-09”) to enhance the transparency, effectiveness and decision usefulness of income tax disclosures primarily related to the rate reconciliation and income taxes paid information. ASU 2023-09 is effective for annual periods beginning after December 15, 2024 on a prospective basis. Early adoption and retrospective application are permitted. The Company is currently assessing the impact the guidance will have on the Company’s financial statements and disclosures.
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REVENUE (Tables) |
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Revenue from Contract with Customer [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Disaggregation of Revenue | The following table shows the revenue by geography for the three months ended March 31, 2024 and 2023, respectively (in thousands):
The following table shows over time versus point-in-time revenue for the three months ended March 31, 2024 and 2023, respectively (in thousands):
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Schedule of Contract Balances | The accounts receivable and contract balances as of March 31, 2024 and December 31, 2023 were as follows (in thousands):
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Schedule of Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction | As of March 31, 2024, the contracted but unsatisfied or partially unsatisfied performance obligations expected to be recognized are as follows (in thousands):
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GOODWILL AND INTANGIBLE ASSETS (Tables) |
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Goodwill and Intangible Assets Disclosure [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Purchased Intangible Assets | The following table presents details of the Company’s purchased intangible assets as of March 31, 2024 and December 31, 2023 (in thousands).
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Schedule of Finite-Lived Intangible Assets, Future Amortization Expense | The following table summarizes estimated future amortization expense for the Company’s intangible assets as of March 31, 2024 (in thousands):
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BALANCE SHEET COMPONENTS (Tables) |
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Balance Sheet Related Disclosures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Allowance for Doubtful Accounts | Allowance for doubtful accounts as of March 31, 2024 and 2023 and the rollforward for the three months ended March 31, 2024 and 2023 were as follows (in thousands):
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Schedule of Inventories | Inventories as of March 31, 2024 and December 31, 2023 consisted of the following (in thousands):
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Schedule of Property Plant and Equipment | Property and equipment as of March 31, 2024 and December 31, 2023 consisted of the following (in thousands):
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Schedule of Accrued Expenses and Other Current Liabilities | Accrued expenses and other current liabilities as of March 31, 2024 and December 31, 2023, consisted of the following (in thousands):
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FAIR VALUE MEASUREMENTS (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 31, 2024 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value Disclosures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Financial Assets Measured at Fair Value on a Recurring Basis | The Company’s financial assets and liabilities that were measured at fair value on a recurring basis were as follows (in thousands):
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Schedule of Amortized Cost, Unrealized Gains and Losses, and Fair Value of AFS Debt Securities | The following tables summarize the amortized cost, unrealized gains and losses, and fair value of our available-for-sale debt securities as of March 31, 2024 and December 31, 2023 (in thousands):
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Schedule of Amortized Cost and Fair Value of AFS Securities by Contractual Maturity Date | The following table summarizes the amortized cost and fair value of our available-for-sale debt securities as of March 31, 2024, by contractual years-to-maturity (in thousands):
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COMMITMENTS AND CONTINGENCIES (Tables) |
3 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 31, 2024 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Commitments and Contingencies Disclosure [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Future Minimum Operating Lease Payments and Purchase Obligations | As of March 31, 2024, future minimum purchase obligations are as follows (in thousands):
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STOCKHOLDERS’ EQUITY (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 31, 2024 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Equity [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Common Stock Reserved for Future Issuance | The Company had reserved shares of common stock for future issuance as of March 31, 2024 as follows (in thousands):
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Schedule of Accumulated Other Comprehensive Loss | The following table summarizes the changes in accumulated other comprehensive losses by component, net of tax (in thousands):
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PRIVATE WARRANTS (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 31, 2024 | |||||||||||||||||||||||||||||||||||||||||||||||||
Equity [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||
Schedule Valuation Assumptions to Fair Value of Private Warrants | The following table provides the assumptions used to estimate the fair value of the Private Warrants during the three months ended March 31, 2024:
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Schedule of Warrants Measured at Fair Value | The following table presents the changes in the warrants liability as of March 31, 2024 (in thousands):
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STOCK PLAN (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 31, 2024 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Share-Based Payment Arrangement [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Stock Option Activity | The following table summarizes the stock option activities under the Company’s stock plans for three months ended March 31, 2024 (in thousands, except for per share data):
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Schedule of RSU and PRSU Activity | The following table summarizes the RSU activity under the Company’s stock plans for the three months ended March 31, 2024 (in thousands, except per share data):
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Schedule of Share-Based Payment Award, Employee Stock Purchase Plan, Valuation Assumptions | The following table summarizes the assumptions used to determine fair values of our 2021 ESPP:
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Schedule of Stock-based Compensation Arrangement | The amount of stock-based compensation related to stock-based awards to employees in the Company’s consolidated statements of operations for the three months ended March 31, 2024 and 2023 were as follows (in thousands):
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NET LOSS PER SHARE ATTRIBUTABLE TO COMMON STOCKHOLDERS (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 31, 2024 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Earnings Per Share [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Basic and Diluted Net Loss Per Share Attributable to Common Stockholders | We calculated basic and diluted net loss per share attributable to common stockholders as follows (in thousands, except per share amounts):
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Schedule of Potentially Dilutive Securities Excluded from the Computation of Diluted Net Loss Per Share Attributable to Common Stockholders | The following potentially dilutive outstanding securities were excluded from the computation of diluted net loss per share attributable to common stockholders, basic and diluted, because their effect would have been anti-dilutive or issuance of such shares is contingent upon the satisfaction of certain conditions which were not satisfied by the end of the period (shares in thousands):
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REVENUE - Schedule of Disaggregated Revenue (Details) - USD ($) $ in Thousands |
3 Months Ended | |
---|---|---|
Mar. 31, 2024 |
Mar. 31, 2023 |
|
Disaggregation of Revenue [Line Items] | ||
Total revenue | $ 39,872 | $ 37,994 |
Over time revenue | ||
Disaggregation of Revenue [Line Items] | ||
Total revenue | 33,118 | 28,551 |
Point-in-time revenue | ||
Disaggregation of Revenue [Line Items] | ||
Total revenue | 6,754 | 9,443 |
United States | ||
Disaggregation of Revenue [Line Items] | ||
Total revenue | 25,899 | 24,226 |
International | ||
Disaggregation of Revenue [Line Items] | ||
Total revenue | $ 13,973 | $ 13,768 |
REVENUE - Schedule of Contract Balances (Details) - USD ($) $ in Thousands |
Mar. 31, 2024 |
Dec. 31, 2023 |
---|---|---|
Revenue from Contract with Customer [Abstract] | ||
Accounts receivable, net | $ 15,835 | $ 15,094 |
Unbilled accounts receivable | 2,638 | 1,831 |
Deferred revenue | $ 29,107 | $ 26,435 |
REVENUE - Narrative (Details) - USD ($) $ in Thousands |
3 Months Ended | |
---|---|---|
Mar. 31, 2024 |
Mar. 31, 2023 |
|
Revenue from Contract with Customer [Abstract] | ||
Deferred revenue recognized | $ 11,100 | $ 5,900 |
Contracted but unsatisfied performance obligations | $ 65,106 |
GOODWILL AND INTANGIBLE ASSETS - Narrative (Details) - USD ($) |
3 Months Ended | ||
---|---|---|---|
Mar. 31, 2024 |
Mar. 31, 2023 |
Dec. 31, 2023 |
|
Goodwill and Intangible Assets Disclosure [Abstract] | |||
Goodwill | $ 69,593,000 | $ 69,593,000 | |
Goodwill impairment loss | 0 | $ 0 | |
Amortization of expense | 400,000 | 400,000 | |
Impairment of intangible assets | $ 0 | $ 0 |
GOODWILL AND INTANGIBLE ASSETS - Schedule of Purchased Intangible Assets (Details) - USD ($) $ in Thousands |
Mar. 31, 2024 |
Dec. 31, 2023 |
---|---|---|
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | $ 12,300 | $ 12,300 |
Accumulated Amortization | (3,623) | (3,180) |
Total future amortization expense | 8,677 | 9,120 |
Developed technology | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 5,400 | 5,400 |
Accumulated Amortization | (2,415) | (2,146) |
Total future amortization expense | 2,985 | 3,254 |
Customer relationships | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 6,900 | 6,900 |
Accumulated Amortization | (1,208) | (1,034) |
Total future amortization expense | $ 5,692 | $ 5,866 |
GOODWILL AND INTANGIBLE ASSETS - Schedule of Finite-Lived Intangible Assets, Future Amortization Expense (Details) - USD ($) $ in Thousands |
Mar. 31, 2024 |
Dec. 31, 2023 |
---|---|---|
Goodwill and Intangible Assets Disclosure [Abstract] | ||
Remaining 2024 | $ 1,327 | |
2025 | 1,770 | |
2026 | 1,770 | |
2027 | 705 | |
2028 | 690 | |
2028 and thereafter | 2,415 | |
Total future amortization expense | $ 8,677 | $ 9,120 |
BALANCE SHEET COMPONENTS - Schedule of Allowance for Doubtful Accounts (Details) - USD ($) $ in Thousands |
3 Months Ended | |
---|---|---|
Mar. 31, 2024 |
Mar. 31, 2023 |
|
Accounts Receivable, Allowance for Credit Loss [Roll Forward] | ||
Balance—beginning of period | $ (1,155) | $ (1,212) |
Decrease (increase) in reserves | 241 | (289) |
Write-offs | 154 | 206 |
Balance—end of period | $ (760) | $ (1,295) |
BALANCE SHEET COMPONENTS - Schedule of Inventories (Details) - USD ($) $ in Thousands |
Mar. 31, 2024 |
Dec. 31, 2023 |
---|---|---|
Balance Sheet Related Disclosures [Abstract] | ||
Finished goods | $ 5,157 | $ 6,179 |
Work in process | 859 | 826 |
Purchased parts and raw materials | 2,441 | 2,110 |
Total inventories | $ 8,457 | $ 9,115 |
BALANCE SHEET COMPONENTS - Schedule of Property, Plant and Equipment, Net (Details) - USD ($) $ in Thousands |
Mar. 31, 2024 |
Dec. 31, 2023 |
---|---|---|
Property, Plant and Equipment [Line Items] | ||
Total property and equipment | $ 84,748 | $ 80,278 |
Accumulated depreciation and amortization | (52,940) | (47,807) |
Total property and equipment, net | 31,808 | 32,471 |
Machinery and equipment | ||
Property, Plant and Equipment [Line Items] | ||
Total property and equipment | 4,091 | 4,087 |
Furniture and fixtures | ||
Property, Plant and Equipment [Line Items] | ||
Total property and equipment | 355 | 355 |
Leasehold improvements | ||
Property, Plant and Equipment [Line Items] | ||
Total property and equipment | 751 | 713 |
Capitalized software and development costs | ||
Property, Plant and Equipment [Line Items] | ||
Total property and equipment | $ 79,551 | $ 75,123 |
BALANCE SHEET COMPONENTS - Narrative (Details) - USD ($) $ in Thousands |
3 Months Ended | |
---|---|---|
Mar. 31, 2024 |
Mar. 31, 2023 |
|
Property, Plant and Equipment [Line Items] | ||
Depreciation and amortization | $ 5,576 | $ 4,391 |
Capitalized computer software additions | 4,400 | 5,000 |
Capitalized computer software amortization | 4,900 | 3,800 |
Costs of revenue | ||
Property, Plant and Equipment [Line Items] | ||
Capitalized computer software amortization | 4,500 | 3,500 |
Selling, general, and administrative | ||
Property, Plant and Equipment [Line Items] | ||
Capitalized computer software amortization | 400 | 300 |
Property and Equipment | ||
Property, Plant and Equipment [Line Items] | ||
Depreciation and amortization | $ 5,100 | $ 3,900 |
BALANCE SHEET COMPONENTS - Schedule of Accrued Expenses and Other Current Liabilities (Details) - USD ($) $ in Thousands |
Mar. 31, 2024 |
Dec. 31, 2023 |
---|---|---|
Balance Sheet Related Disclosures [Abstract] | ||
Accrued compensation | $ 4,659 | $ 4,362 |
Tax payable | 1,133 | 1,107 |
ESPP contribution | 699 | 243 |
Short-term operating lease liabilities | 1,155 | 1,277 |
Other current liabilities | 5,708 | 6,365 |
Total accrued expenses and other current liabilities | $ 13,354 | $ 13,354 |
FAIR VALUE MEASUREMENTS - Schedule of Amortized Cost, Unrealized Gains and Losses, and Fair Value of AFS Debt Securities (Details) - USD ($) $ in Thousands |
Mar. 31, 2024 |
Dec. 31, 2023 |
---|---|---|
Investments: | ||
Amortized Cost | $ 339,490 | $ 339,643 |
Unrealized Gains | 83 | 519 |
Unrealized Losses | (247) | (64) |
Fair Value | 339,326 | 340,098 |
U.S. government and agency securities | ||
Investments: | ||
Amortized Cost | 257,740 | 266,339 |
Unrealized Gains | 62 | 444 |
Unrealized Losses | (122) | (13) |
Fair Value | 257,680 | 266,770 |
Non-U.S. government and agency securities | ||
Investments: | ||
Amortized Cost | 9,553 | 19,958 |
Unrealized Gains | 0 | 0 |
Unrealized Losses | (14) | (8) |
Fair Value | 9,539 | 19,950 |
Corporate debt securities | ||
Investments: | ||
Amortized Cost | 67,259 | 36,507 |
Unrealized Gains | 21 | 69 |
Unrealized Losses | (110) | (35) |
Fair Value | 67,170 | 36,541 |
Commercial paper | ||
Investments: | ||
Amortized Cost | 4,938 | 16,839 |
Unrealized Gains | 0 | 6 |
Unrealized Losses | (1) | (8) |
Fair Value | $ 4,937 | $ 16,837 |
FAIR VALUE MEASUREMENTS - Narrative (Details) - USD ($) |
Mar. 31, 2024 |
Mar. 31, 2023 |
---|---|---|
Fair Value Disclosures [Abstract] | ||
AFS, Less than 12 months, gross unrealized losses | $ 200,000 | |
AFS, in continuous unrealized loss position, less than 12 months | 189,100,000 | |
Debt securities, allowance for credit loss | $ 0 | $ 0 |
FAIR VALUE MEASUREMENTS - Schedule of Amortized Cost and Fair Value of AFS Securities by Contractual Maturity Date (Details) - USD ($) $ in Thousands |
Mar. 31, 2024 |
Dec. 31, 2023 |
---|---|---|
Amortized Cost | ||
Due within one year | $ 249,889 | |
Due between one and three years | 89,601 | |
Amortized Cost | 339,490 | $ 339,643 |
Fair Value | ||
Due within one year | 249,917 | |
Due between one and three years | 89,409 | |
Total | $ 339,326 | $ 340,098 |
COMMITMENTS AND CONTINGENCIES - Future Minimum Operating Lease Payments and Purchase Obligations (Details) $ in Thousands |
Mar. 31, 2024
USD ($)
|
---|---|
Purchase Obligations | |
Remainder of 2024 | $ 13,161 |
2025 | 307 |
2026 | 53 |
Thereafter | 0 |
Total | $ 13,521 |
STOCKHOLDERS’ EQUITY - Accumulated Other Comprehensive Loss (Details) - USD ($) $ in Thousands |
3 Months Ended | |
---|---|---|
Mar. 31, 2024 |
Mar. 31, 2023 |
|
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||
Beginning balance | $ 529,284 | $ 583,911 |
Net unrealized gain (loss) | (619) | 2,223 |
Ending balance | 523,007 | 570,080 |
Total | ||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||
Beginning balance | 403 | (5,034) |
Ending balance | (216) | (2,811) |
Foreign Currency Translation, Net of Tax | ||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||
Beginning balance | (52) | (52) |
Net unrealized gain (loss) | 0 | 0 |
Ending balance | (52) | (52) |
Unrealized Losses on Available-for-Sale Debt Securities, Net of Tax | ||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||
Beginning balance | 455 | (4,982) |
Net unrealized gain (loss) | (619) | 2,223 |
Ending balance | $ (164) | $ (2,759) |
PRIVATE WARRANTS - Narrative (Details) - USD ($) |
3 Months Ended | ||||
---|---|---|---|---|---|
Mar. 31, 2024 |
Dec. 31, 2023 |
Mar. 31, 2022 |
Dec. 15, 2021 |
Jul. 21, 2021 |
|
Class of Warrant or Right [Line Items] | |||||
Number of shares purchasable with each warrant (in shares) | 1 | ||||
Warrant, exercise price (in dollars per share) | $ 11.50 | ||||
Warrants, contractual life | 5 years | ||||
Warrants and rights unexercised and outstanding | $ 1,700,000 | ||||
Public Warrant | |||||
Class of Warrant or Right [Line Items] | |||||
Warrants issued (in shares) | 6,900,000 | ||||
Warrants and rights unexercised and outstanding | $ 0 | ||||
Private Warrant | |||||
Class of Warrant or Right [Line Items] | |||||
Warrants issued (in shares) | 4,450,000 | ||||
Warrants and rights unexercised and outstanding | $ 1,700,000 | ||||
Class of warrant or right, warrant exercised | $ 0 | ||||
Warrants, fair value (in dollars per share) | $ 0.24 |
PRIVATE WARRANTS - Schedule Valuation Assumptions to Fair Value of Private Warrants (Details) - Private Warrant |
3 Months Ended |
---|---|
Mar. 31, 2024
$ / shares
| |
Current stock price | |
Class of Warrant or Right [Line Items] | |
Derivative liability, measurement input | 2.26 |
Strike price | |
Class of Warrant or Right [Line Items] | |
Derivative liability, measurement input | 11.50 |
Expected term (in years) | |
Class of Warrant or Right [Line Items] | |
Derivative liability, measurement input, term | 2 years 3 months 21 days |
Expected volatility | |
Class of Warrant or Right [Line Items] | |
Derivative liability, measurement input | 0.780 |
Risk-free interest rate | |
Class of Warrant or Right [Line Items] | |
Derivative liability, measurement input | 0.044 |
Expected dividend yield | |
Class of Warrant or Right [Line Items] | |
Derivative liability, measurement input | 0 |
PRIVATE WARRANTS - Schedule of Warrants Measured at Fair Value (Details) - USD ($) $ in Thousands |
3 Months Ended | |
---|---|---|
Mar. 31, 2024 |
Mar. 31, 2023 |
|
Warrant Liability [Roll Forward] | ||
Fair value at beginning balance | $ 290 | |
Change in fair value of warrants liability | 120 | $ (222) |
Fair value at ending balance | $ 410 |
STOCK PLAN - Schedule of RSU and PRSU Activity (Details) - RSUs and PRSUs shares in Thousands |
3 Months Ended |
---|---|
Mar. 31, 2024
$ / shares
shares
| |
Number of Shares | |
Beginning balance (in shares) | shares | 26,349 |
Granted (in shares) | shares | 12,780 |
Vested (in shares) | shares | (3,143) |
Canceled or forfeited (in shares) | shares | (1,226) |
Ending balance (in shares) | shares | 34,760 |
Weighted- Average Grant-Date Fair Value Price Per Share | |
Beginning balance (in dollars per share) | $ / shares | $ 8.81 |
Granted (in dollars per share) | $ / shares | 2.30 |
Vested (in dollars per share) | $ / shares | 9.81 |
Canceled or forfeited (in dollars per share) | $ / shares | 4.13 |
Ending balance (in dollars per share) | $ / shares | $ 6.49 |
STOCK PLAN - Schedule of Share-Based Payment Award, Employee Stock Purchase Plan, Valuation Assumptions (Details) - 2021 ESPP - Shares available for future grant under 2021 Employee Stock Purchase Plan |
3 Months Ended | |
---|---|---|
Mar. 31, 2024 |
Mar. 31, 2023 |
|
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Expected volatility, minimum | 31.40% | 35.20% |
Expected volatility, maximum | 44.10% | 48.00% |
Risk-free interest rate, minimum | 2.70% | 0.40% |
Risk-free interest rate, maximum | 5.30% | 4.70% |
Expected dividend yield | 0.00% | 0.00% |
Minimum | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Expected term | 6 months | 6 months |
Maximum | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Expected term | 2 years | 2 years |
STOCK PLAN - Schedule of Stock-based Compensation Arrangement (Details) - USD ($) $ in Thousands |
3 Months Ended | |
---|---|---|
Mar. 31, 2024 |
Mar. 31, 2023 |
|
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | ||
Stock-based compensation, net of amounts capitalized | $ 27,951 | $ 31,074 |
Capitalized stock-based compensation | 2,260 | 2,436 |
Total stock-based compensation | 30,211 | 33,510 |
Costs of revenue | ||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | ||
Stock-based compensation, net of amounts capitalized | 805 | 844 |
Research and development | ||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | ||
Stock-based compensation, net of amounts capitalized | 6,171 | 7,565 |
Selling, general, and administrative | ||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | ||
Stock-based compensation, net of amounts capitalized | $ 20,975 | $ 22,665 |
NET LOSS PER SHARE ATTRIBUTABLE TO COMMON STOCKHOLDERS - Schedule of Basic and Diluted Net Loss Per Share Attributable to Common Stockholders (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands |
3 Months Ended | |
---|---|---|
Mar. 31, 2024 |
Mar. 31, 2023 |
|
Numerator: | ||
Net loss attributable to common stockholders | $ (36,128) | $ (53,842) |
Denominator: | ||
Weighted average shares used in computing net loss per share attributable to common stockholders, basic (in shares) | 313,008 | 293,074 |
Weighted average shares used in computing net loss per share attributable to common stockholders, diluted (in shares) | 313,008 | 293,074 |
Net loss per share attributable to common stockholders, basic (in dollars per share) | $ (0.12) | $ (0.18) |
Net loss per share attributable to common stockholders, diluted (in dollars per share) | $ (0.12) | $ (0.18) |
SUBSEQUENT EVENTS (Details) - $ / shares |
Apr. 21, 2024 |
Mar. 31, 2024 |
Dec. 31, 2023 |
---|---|---|---|
Subsequent Event [Line Items] | |||
Common stock, par value (in dollars per share) | $ 0.0001 | $ 0.0001 | |
Subsequent Event | |||
Subsequent Event [Line Items] | |||
Per share cash received from stock converted under Merger Agreement (in dollars per share) | $ 2.75 | ||
Subsequent Event | Common Stock | |||
Subsequent Event [Line Items] | |||
Common stock, par value (in dollars per share) | 0.0001 | ||
Subsequent Event | Common Stock | CoStar Group, Inc. | |||
Subsequent Event [Line Items] | |||
Common stock, par value (in dollars per share) | $ 0.01 |
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