Business Combinations (Tables)

9 Months Ended

Sep. 30, 2020

Summary of Preliminary Allocation of Purchase Price to Estimated Fair Value of Assets Acquired and Liabilities Assumed

The following table summarizes the preliminary allocation of purchase price to the estimated fair value of the assets acquired and liabilities assumed at the acquisition date (in thousands):


Consideration:
Cash	$	130,810
Deferred cash consideration	6,963
Working capital and other purchase price adjustments	55
Fair value of total consideration transferred	$	137,828

Recognized amounts of identifiable assets and liabilities assumed:
Cash and cash equivalents	$	5,039
Accounts receivable, net	904
Prepaid expenses and other current assets	810
Property and equipment, net	492
Operating lease right-of-use assets	3,320
Accounts payable	(288)
Accrued expenses	(1,308)
Operating lease liabilities, current portion	(313)
Deferred revenue, current portion	(3,545)
Operating lease liabilities, non-current portion	(2,984)
Deferred revenue, non-current portion	(1,360)
Intangible assets	21,200
Total identifiable net assets assumed	$	21,967
Goodwill	115,861
Net purchase price	$	137,828

Summary of Estimated Fair Value and Useful Life of Identifiable Intangible Assets

The fair value of identifiable intangible assets was based on valuations using the income approach. The estimated fair value and useful life of identifiable intangible assets are as follows:


	Amount		Weighted Average Life
	(in thousands)		(in years)
Developed technology	$	18,600	6
Customer relationships	1,700		6
Trade name	900		5
Total identifiable intangible assets	$	21,200

Business Acquisition, Pro Forma Information

The unaudited pro forma financial information in the table below summarizes the combined results of our operations and DivvyCloud, on a pro forma basis, as though we had acquired DivvyCloud on January 1, 2019. The unaudited pro forma financial information for all periods presented also includes the effects of business combination accounting resulting from the acquisition, including an adjustment to revenue for the deferred revenue fair value adjustment, amortization expense from acquired intangibles assets, reversal of acquisition-related expenses and the stock-compensation expense recorded to retain certain employees.


	Three Months Ended September 30,				Nine Months Ended September 30,
	2020		2019		2020		2019
Revenue	$	105,904	$	84,628	$	303,203	$	238,695
Net loss	$	(24,712)	$	(19,726)	$	(74,485)	$	(59,954)