XML 20 R9.htm IDEA: XBRL DOCUMENT
v3.23.3

Restatement | 9 Months Ended
--- | ---
Sep. 30, 2023
Accounting Changes and Error Corrections [Abstract] |
Restatement | Restatement As previously disclosed on February 17 and February 27, 2023, in connection with the preparation of our consolidated financial statements for the year ended December 31, 2022, we identified tax errors within our previously issued unaudited condensed consolidated financial statements as of and for the quarterly and year to date periods ended March 31, 2022, or Q1 2022, June 30, 2022, or Q2 2022, and September 30, 2022, or Q3 2022, as included in our previously filed Quarterly Reports on Form 10-Q. Management concluded that such errors resulted in the previously issued Q1 2022, Q2 2022 and Q3 2022 unaudited condensed consolidated financial statements, including the respective year-to-date periods, being materially misstated and therefore requiring restatement. Specifically, within our income tax provision there was an error relating to the identification of named executive officers subject to limitation on the deductibility of executive compensation under Internal Revenue Code Section 162(m), or Section 162(m). The Section 162(m) error had the impact of a $1.2 million overstatement of the benefit for income taxes and a $2.8 million overstatement of the provision for income taxes for the three and nine months ended September 30, 2022, respectively, and the associated impacts on deferred tax assets. In connection with the tax errors noted above, we are also correcting other previously identified immaterial errors related to: i) $1.2 million of a late customer acquisition marketing, or CAM credit, that should have been recognized as a reduction to sales and marketing expense in Q2 2022, and which was initially corrected for as an out of period adjustment in Q3 2022; and ii) $0.9 million of revenue and $0.3 million of associated costs of revenue that should have been recognized in Q3 2022. Description of Restatement of Financial Information In the following tables, we have presented a reconciliation of our unaudited condensed consolidated financial information as originally reported, to the as restated amounts as of and for the three and nine months ended September 30, 2022. The table below sets forth the unaudited condensed consolidated balance sheet information, including the balances as reported, adjustments and the balances as restated (in thousands, except per share amounts):
|  |  | September 30, 2022 |  |
|  |  |  |  |  |  | As Reported |  | Adjustments |  | As Restated |  |  |  |  |  |
Assets |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Current assets: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Cash and cash equivalents |  |  |  |  |  |  | 211,812 |  |  | — |  |  | 211,812 |  |  |  |  |  |  |
Accounts receivable, net of allowances of $4,419 |  |  |  |  |  |  | 13,578 |  |  | 122 |  |  | 13,700 |  |  |  |  |  |  |
Prepaid expenses and other current assets |  |  |  |  |  |  | 16,624 |  |  | (264) |  |  | 16,360 |  |  |  |  |  |  |
Current assets held for sale |  |  |  |  |  |  | 22,722 |  |  | — |  |  | 22,722 |  |  |  |  |  |  |
Total current assets |  |  |  |  |  |  | 264,736 |  |  | (142) |  |  | 264,594 |  |  |  |  |  |  |
Property and equipment, net |  |  |  |  |  |  | 29,012 |  |  | — |  |  | 29,012 |  |  |  |  |  |  |
Goodwill |  |  |  |  |  |  | 63,184 |  |  | — |  |  | 63,184 |  |  |  |  |  |  |
Intangible assets, net |  |  |  |  |  |  | 13,552 |  |  | — |  |  | 13,552 |  |  |  |  |  |  |
|  |  | September 30, 2022 |  |
|  |  |  |  |  |  | As Reported |  | Adjustments |  | As Restated |  |  |  |  |  |
Operating lease right-of-use assets |  |  |  |  |  |  | 11,796 |  |  | — |  |  | 11,796 |  |  |  |  |  |  |
Deferred income taxes |  |  |  |  |  |  | 27,473 |  |  | 2,803 |  |  | 30,276 |  |  |  |  |  |  |
Available-for-sale debt securities |  |  |  |  |  |  | 1,183 |  |  | — |  |  | 1,183 |  |  |  |  |  |  |
Other assets |  |  |  |  |  |  | 12,877 |  |  | (1) |  |  | 12,876 |  |  |  |  |  |  |
Total assets |  |  |  |  |  |  | 423,813 |  |  | 2,660 |  |  | 426,473 |  |  |  |  |  |  |
Liabilities and stockholders’ equity |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Current liabilities: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Accounts payable |  |  |  |  |  |  | 25,805 |  |  | — |  |  | 25,805 |  |  |  |  |  |  |
Accrued expenses and other current liabilities |  |  |  |  |  |  | 59,916 |  |  | (21) |  |  | 59,895 |  |  |  |  |  |  |
Deferred revenue |  |  |  |  |  |  | 168,705 |  |  | (738) |  |  | 167,967 |  |  |  |  |  |  |
Operating lease liabilities |  |  |  |  |  |  | 2,054 |  |  | — |  |  | 2,054 |  |  |  |  |  |  |
Total current liabilities |  |  |  |  |  |  | 256,480 |  |  | (759) |  |  | 255,721 |  |  |  |  |  |  |
Operating lease liabilities, non-current |  |  |  |  |  |  | 9,568 |  |  | — |  |  | 9,568 |  |  |  |  |  |  |
Deferred revenue |  |  |  |  |  |  | 1,013 |  |  | — |  |  | 1,013 |  |  |  |  |  |  |
Other liabilities |  |  |  |  |  |  | 2,926 |  |  | — |  |  | 2,926 |  |  |  |  |  |  |
Total liabilities |  |  |  |  |  |  | 269,987 |  |  | (759) |  |  | 269,228 |  |  |  |  |  |  |
Commitments and contingencies |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Stockholders’ equity: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Preferred stock, $0.001 par value; 100,000 shares authorized; 0 issued or outstanding at September 30, 2022 |  |  |  |  |  |  | — |  |  | — |  |  | — |  |  |  |  |  |  |
Common stock, $0.001 par value; 1,000,000 shares authorized; 193,848 shares issued and outstanding at September 30, 2022 |  |  |  |  |  |  | 193 |  |  | — |  |  | 193 |  |  |  |  |  |  |
Additional paid-in capital |  |  |  |  |  |  | 1,015,068 |  |  | — |  |  | 1,015,068 |  |  |  |  |  |  |
Accumulated deficit |  |  |  |  |  |  | (865,933) |  |  | 3,419 |  |  | (862,514) |  |  |  |  |  |  |
Accumulated other comprehensive income |  |  |  |  |  |  | 4,498 |  |  | — |  |  | 4,498 |  |  |  |  |  |  |
Total stockholders’ equity |  |  |  |  |  |  | 153,826 |  |  | 3,419 |  |  | 157,245 |  |  |  |  |  |  |
Total liabilities and stockholders’ equity |  |  |  |  |  |  | $ | 423,813 |  |  | $ | 2,660 |  |  | $ | 426,473 |  |  |  |  |  |  |
The table below sets forth the unaudited condensed consolidated statements of operations, including the balances as reported, adjustments and the as restated balances (in thousands, except per share amounts):
|  |  |  |  |  |  | Three Months Ended |  |  |  |  |  |  | Nine Months Ended
|  |  | September 30, 2022 |  |  | September 30, 2022
|  |  |  |  |  |  | As Reported |  | Adjustments |  | As Restated |  |  |  |  |  |  | As reported |  | Adjustments |  | As restated
Revenue |  |  |  |  |  |  | $ | 154,416 |  |  | $ | 861 |  |  | $155,277 |  |  |  |  |  |  | $ | 472,492 |  |  | $ | 861 |  |  | $473,353
Cost of revenue |  |  |  |  |  |  | 50,050 |  |  | 264 |  |  | 50,314 |  |  |  |  |  |  |  | 163,383 |  |  | 264 |  |  | 163,647 |
Gross profit |  |  |  |  |  |  | 104,366 |  |  | 597 |  |  | 104,963 |  |  |  |  |  |  |  | 309,109 |  |  | 597 |  |  | 309,706 |
Operating expenses: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Sales and marketing |  |  |  |  |  |  | 66,145 |  |  | 1,224 |  |  | 67,369 |  |  |  |  |  |  |  | 215,964 |  |  | — |  |  | 215,964 |
Technology and development |  |  |  |  |  |  | 17,457 |  |  | — |  |  | 17,457 |  |  |  |  |  |  |  | 51,613 |  |  | — |  |  | 51,613 |
General and administrative |  |  |  |  |  |  | 30,103 |  |  | — |  |  | 30,103 |  |  |  |  |  |  |  | 88,560 |  |  | — |  |  | 88,560 |
Impairment of long-lived and other assets |  |  |  |  |  |  | 237 |  |  | — |  |  | 237 |  |  |  |  |  |  |  | 237 |  |  | — |  |  | 237 |
Total operating expenses |  |  |  |  |  |  | 113,942 |  |  | 1,224 |  |  | 115,166 |  |  |  |  |  |  |  | 356,374 |  |  | — |  |  | 356,374 |
Loss from operations |  |  |  |  |  |  | (9,576) |  |  | (627) |  |  | (10,203) |  |  |  |  |  |  |  | (47,265) |  |  | 597 |  |  | (46,668) |
Interest income, net |  |  |  |  |  |  | 535 |  |  | — |  |  | 535 |  |  |  |  |  |  |  | 511 |  |  | — |  |  | 511 |
Other expense, net |  |  |  |  |  |  | (2,536) |  |  | — |  |  | (2,536) |  |  |  |  |  |  |  | (6,102) |  |  | — |  |  | (6,102) |
Loss before income taxes |  |  |  |  |  |  | (11,577) |  |  | (627) |  |  | (12,204) |  |  |  |  |  |  |  | (52,856) |  |  | 597 |  |  | (52,259) |
(Benefit from) provision for income taxes |  |  |  |  |  |  | (1,469) |  |  | 1,246 |  |  | (223) |  |  |  |  |  |  |  | 1,040 |  |  | (2,822) |  |  | (1,782) |
|  |  |  |  |  |  | Three Months Ended |  |  |  |  |  |  | Nine Months Ended
|  |  | September 30, 2022 |  |  | September 30, 2022
|  |  |  |  |  |  | As Reported |  | Adjustments |  | As Restated |  |  |  |  |  |  | As reported |  | Adjustments |  | As restated
Net loss |  |  |  |  |  |  | $ | (10,108) |  |  | $ | (1,873) |  |  | $ | (11,981) |  |  |  |  |  |  |  | $ | (53,896) |  |  | $ | 3,419 |  |  | $ | (50,477) |
Net loss per share attributable to common stockholders—basic and diluted: |  |  |  |  |  |  | $ | (0.05) |  |  | $ | — |  |  | $ | (0.06) |  |  |  |  |  |  |  | $ | (0.27) |  |  | $ | — |  |  | $ | (0.26) |
Weighted-average shares used to compute net loss per share attributable to common stockholders—basic and diluted: |  |  |  |  |  |  | 194,906 |  |  | — |  |  | 194,906 |  |  |  |  |  |  |  | 196,984 |  |  | — |  |  | 196,984 |
The table below sets forth the unaudited condensed consolidated statements of comprehensive loss, including balances as reported, adjustments and balances as restated amounts (in thousands):
|  |  |  |  |  |  | Three Months Ended |  |  |  |  |  |  | Nine Months Ended
|  |  | September 30, 2022 |  |  | September 30, 2022
|  |  |  |  |  |  | As Reported |  | Adjustments |  | As Restated |  |  |  |  |  |  | As reported |  | Adjustments |  | As restated
Net Loss |  |  |  |  |  |  | $ | (10,108) |  |  | $ | (1,873) |  |  | $ | (11,981) |  |  |  |  |  |  |  | $ | (53,896) |  |  | $ | 3,419 |  |  | $ | (50,477) |
Total other comprehensive income |  |  |  |  |  |  | 2,644 |  |  | — |  |  | 2,644 |  |  |  |  |  |  |  | 6,293 |  |  | — |  |  | 6,293 |
Total comprehensive loss |  |  |  |  |  |  | $ | (7,464) |  |  | $ | (1,873) |  |  | $ | (9,337) |  |  |  |  |  |  |  | $ | (47,603) |  |  | $ | 3,419 |  |  | $ | (44,184) |
The table below sets forth the unaudited condensed consolidated statements of stockholders’ equity, including balances as reported, adjustments and balances as restated amounts (in thousands):
| Common Stock |  | Additional Paid-In Capital |  | Accumulated Deficit |  | Accumulated Other Comprehensive Income |  | Total Stockholders’ Equity
| Shares |  | Amount |  |  |  |
Balance at September 30, 2022 as reported | 193,848 |  |  | $ | 193 |  |  | $ | 1,015,068 |  |  | $ | (865,933) |  |  | $ | 4,498 |  |  | $ | 153,826 |
Cumulative adjustments to net loss | — |  |  | — |  |  | — |  |  | 3,419 |  |  | — |  |  | 3,419 |
Balance at September 30, 2022 as restated | 193,848 |  |  | $ | 193 |  |  | $ | 1,015,068 |  |  | $ | (862,514) |  |  | $ | 4,498 |  |  | $ | 157,245 |
The table below sets forth the unaudited condensed consolidated statement of cash flows, including balances as reported, adjustments and balances as restated amounts (in thousands):
|  |  | Nine Months Ended September 30, 2022 |  |
|  |  |  |  |  |  | As Reported |  | Adjustments |  | As Restated |  |  |  |  |  |
Cash flows from operating activities |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Net loss |  |  |  |  |  |  | $ | (53,896) |  |  | $ | 3,419 |  |  | $ | (50,477) |  |  |  |  |  |  |
Adjustments to reconcile net loss to net cash provided by operating activities: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Depreciation and amortization |  |  |  |  |  |  | 16,187 |  |  | — |  |  | 16,187 |  |  |  |  |  |  |
Amortization of right-of-use assets |  |  |  |  |  |  | 1,290 |  |  | — |  |  | 1,290 |  |  |  |  |  |  |
Amortization of debt issuance costs |  |  |  |  |  |  | 170 |  |  | — |  |  | 170 |  |  |  |  |  |  |
Impairment of other equity security |  |  |  |  |  |  | 170 |  |  | — |  |  | 170 |  |  |  |  |  |  |
Impairment of long-lived assets |  |  |  |  |  |  | 237 |  |  | — |  |  | 237 |  |  |  |  |  |  |
Stock-based compensation |  |  |  |  |  |  | 64,490 |  |  | — |  |  | 64,490 |  |  |  |  |  |  |
Deferred income taxes |  |  |  |  |  |  | 166 |  |  | (2,803) |  |  | (2,637) |  |  |  |  |  |  |
Change in fair value of contingent consideration |  |  |  |  |  |  | (150) |  |  | — |  |  | (150) |  |  |  |  |  |  |
Unrealized foreign exchange loss |  |  |  |  |  |  | 5,958 |  |  | — |  |  | 5,958 |  |  |  |  |  |  |
Other |  |  |  |  |  |  | (1) |  |  | — |  |  | (1) |  |  |  |  |  |  |
|  |  | Nine Months Ended September 30, 2022 |  |
|  |  |  |  |  |  | As Reported |  | Adjustments |  | As Restated |  |  |  |  |  |
Changes in operating assets and liabilities, net of effects of business combination: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Accounts receivable |  |  |  |  |  |  | (2,902) |  |  | (122) |  |  | (3,024) |  |  |  |  |  |  |
Prepaid expenses and other current assets |  |  |  |  |  |  | (560) |  |  | 264 |  |  | (296) |  |  |  |  |  |  |
Other assets |  |  |  |  |  |  | (864) |  |  | 1 |  |  | (863) |  |  |  |  |  |  |
Accounts payable |  |  |  |  |  |  | (6,417) |  |  | — |  |  | (6,417) |  |  |  |  |  |  |
Accrued expenses and other liabilities |  |  |  |  |  |  | 7,606 |  |  | (21) |  |  | 7,585 |  |  |  |  |  |  |
Operating lease liabilities |  |  |  |  |  |  | (1,599) |  |  | — |  |  | (1,599) |  |  |  |  |  |  |
Income tax payable |  |  |  |  |  |  | 22 |  |  | — |  |  | 22 |  |  |  |  |  |  |
Deferred revenue |  |  |  |  |  |  | 22,108 |  |  | (738) |  |  | 21,370 |  |  |  |  |  |  |
Net cash provided by operating activities |  |  |  |  |  |  | 52,015 |  |  | — |  |  | 52,015 |  |  |  |  |  |  |
Cash flows from investing activities |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Acquisition, net of cash acquired |  |  |  |  |  |  | (2,532) |  |  | — |  |  | (2,532) |  |  |  |  |  |  |
Proceeds from acquisition working capital adjustment |  |  |  |  |  |  | 307 |  |  | — |  |  | 307 |  |  |  |  |  |  |
Purchase of property and equipment |  |  |  |  |  |  | (16,441) |  |  | — |  |  | (16,441) |  |  |  |  |  |  |
Net cash used in investing activities |  |  |  |  |  |  | (18,666) |  |  | — |  |  | (18,666) |  |  |  |  |  |  |
Cash flows from financing activities |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Payment of contingent consideration |  |  |  |  |  |  | (600) |  |  | — |  |  | (600) |  |  |  |  |  |  |
Repurchase of common stock |  |  |  |  |  |  | (61,736) |  |  | — |  |  | (61,736) |  |  |  |  |  |  |
Shares surrendered for settlement of minimum statutory tax withholding |  |  |  |  |  |  | (41) |  |  | — |  |  | (41) |  |  |  |  |  |  |
Proceeds from issuance of stock under employee stock plans |  |  |  |  |  |  | 1,682 |  |  | — |  |  | 1,682 |  |  |  |  |  |  |
Net cash used in financing activities |  |  |  |  |  |  | (60,695) |  |  | — |  |  | (60,695) |  |  |  |  |  |  |
Effect of exchange rate changes on cash and cash equivalents |  |  |  |  |  |  | (139) |  |  | — |  |  | (139) |  |  |  |  |  |  |
Net decrease in cash and cash equivalents, and restricted cash equivalents |  |  |  |  |  |  | (27,485) |  |  | — |  |  | (27,485) |  |  |  |  |  |  |
Cash and cash equivalents, and restricted cash equivalents, at beginning of the period |  |  |  |  |  |  | 239,297 |  |  | — |  |  | 239,297 |  |  |  |  |  |  |
Cash and cash equivalents at end of the period |  |  |  |  |  |  | $ | 211,812 |  |  | $ | — |  |  | $ | 211,812 |  |  |  |  |  |  |

X
- References No definition available. + Details
Name: | us-gaap_AccountingChangesAndErrorCorrectionsAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- Definition The entire disclosure for reporting error correction. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Topic 250 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 7 -Publisher FASB -URI https://asc.fasb.org//1943274/2147483443/250-10-50-7 + Details
Name: | us-gaap_ErrorCorrectionTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration