XML 42 R24.htm IDEA: XBRL DOCUMENT v3.25.0.1
Restructuring Charges
 12 Months Ended
Dec. 31, 2024
Restructuring and Related Activities [Abstract]  
Restructuring Charges Restructuring Charges
In October 2024, the Company announced the Restructuring Plan, intended to continue the Company’s profitable trajectory, increase efficiency, and accelerate innovation for its customers. The Restructuring Plan included various cost-reduction measures, including workforce reductions, reductions in operating expenses, as well as decreases in capital expenditures. As part of the Restructuring Plan, the Company reduced its total workforce by approximately
21%. The workforce reductions, including associated cash payments, were substantially completed by December 31, 2024.
The total restructuring charges for the fourth quarter of 2024 were $19.2 million and are presented within the respective functional line items in the Company's consolidated statement of operations and comprehensive (loss), as shown in the following table for the year ended December 31, 2024:
(in thousands)
Employee severance and benefit costs
Contract termination costs
Other charges
Total Restructuring Charges
Cost of revenue
$139 $198 $— $337 
Research and development3,904 4,249 — 8,153 
Sales and marketing5,262 1,872 — 7,134 
General and administrative1,699 559 1,043 3,301 
Other income, net
— — 261 261 
Total
$11,004 $6,878 $1,304 $19,186 
Contract termination costs include expenses related to the reduction in force of the Company’s contracted workforce impacted by the Restructuring Plan, as well as vendor contract terminations.
Other charges include additional expenses incurred as part of the Restructuring Plan, such as lease termination costs and disposal of certain fixed assets.
No restructuring charges were recorded for the years ended December 31, 2023 and 2022.
The following table summarizes the Company’s restructuring liability:
(in thousands)
Restructuring Liability
Beginning balance as of January 1, 2024
$— 
Restructuring charges incurred
19,186 
Payments
(17,101)
Ending balance as of December 31, 2024
$2,085 
As of December 31, 2024, the remaining restructuring liability of $2.1 million consists primarily of accrued severance and benefit costs, and vendor termination costs, recorded within “Accrued expenses and other current liabilities” in the accompanying consolidated Balance Sheet. The remaining liability is expected to be settled by the end of the first quarter 2025.