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Immaterial Correction of an Error | 12 Months Ended
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Dec. 31, 2024
Accounting Changes and Error Corrections [Abstract] |
Immaterial Correction of an Error | (20) Immaterial Correction of an Error During the fourth quarter of 2024, we identified an immaterial error related to stock-based compensation expense associated with certain RSUs and PSUs granted during fiscal years 2023 and 2024 attributable to an improper valuation of the underlying awards, resulting in an understatement of stock-based compensation expense in 2023 and 2024. In accordance with Staff Accounting Bulletin (“SAB”) No. 99, Materiality, and SAB No. 108, Considering the Effects of Prior Year Misstatements when Quantifying Misstatements in Current Year Financial Statements, the Company evaluated the errors and determined that the related impact was not material to results of operations or financial position for any historical annual or interim period. As a result, we are correcting the errors by adjusting prior period financial statements as of and for each of the quarterly and year-to-date periods shown below. Additionally, Note 13, Stock-Based Compensation, Note 14, Income Taxes and Note 15, Net Income (Loss) per Share, have been adjusted to reflect the correction of the immaterial errors. The following table sets forth the effect of the immaterial error correction to certain line items of our consolidated statement of operations, consolidated balance sheet and consolidated statement of cash flows as of and for the year ended December 31, 2023:
| Year Ended December 31, 2023
| As Reported |  | Adjustment |  | Revised
| (in thousands, except per share amounts)
Consolidated Statement of Operations: |  |  |  |  |
Cost of revenue - product subscriptions | $ | 202,904 |  |  | $ | 236 |  |  | $ | 203,140 |
Cost of revenue - professional services | $ | 28,837 |  |  | $ | 69 |  |  | $ | 28,906 |
Research and development expense | $ | 176,776 |  |  | $ | 1,161 |  |  | $ | 177,937 |
Sales and marketing expense | $ | 312,636 |  |  | $ | 1,025 |  |  | $ | 313,661 |
General and administrative expense | $ | 84,276 |  |  | $ | 1,064 |  |  | $ | 85,340 |
Net income (loss) | $ | (149,260) |  |  | $ | (3,555) |  |  | $ | (152,815) |
Net income (loss) per share, basic | $ | (2.46) |  |  | $ | (0.06) |  |  | $ | (2.52) |
Net income (loss) per share, diluted | $ | (2.46) |  |  | $ | (0.06) |  |  | $ | (2.52) |
Consolidated Statement of Cash Flows: |  |  |  |  |
Net income (loss) | $ | (149,260) |  |  | $ | (3,555) |  |  | $ | (152,815) |
Stock-based compensation expense | $ | 108,081 |  |  | $ | 3,555 |  |  | $ | 111,636 |
Net cash provided by operating activities | $ | 104,278 |  |  | $ | — |  |  | $ | 104,278 |
| As of December 31, 2023
| As Reported |  | Adjustment |  | Revised
| (in thousands)
Consolidated Balance Sheet: |  |  |  |  |
Additional paid-in capital | $ | 894,630 |  |  | $ | 3,555 |  |  | $ | 898,185 |
Accumulated deficit | $ | (1,010,005) |  |  | $ | (3,555) |  |  | $ | (1,013,560) |
Total stockholders' deficit | $ | (118,179) |  |  | $ | — |  |  | $ | (118,179) |
The following tables set forth the effect of the immaterial error corrections to (i) certain line items of our unaudited condensed consolidated statements of operations for the interim periods ended March 31, 2023, June 30, 2023, September 30, 2023 and December 31, 2023, as well as (ii) certain line items of our unaudited condensed consolidated statements of operations and unaudited condensed consolidated statements of cash flows for the interim periods ended March 31, 2024, June 30, 2024 and September 30, 2024. Prospectively, we will effect an immaterial error correction of these unaudited condensed consolidated financial statements for the 2024 interim periods as those statements are reproduced on a comparative basis in our Quarterly Reports on Form 10-Q throughout fiscal year 2025:
| Three Months Ended March 31, 2023 |  | Three Months Ended June 30, 2023
| As Reported |  | Adjustment |  | Revised |  | As Reported |  | Adjustment |  | Revised
| (unaudited, in thousands, except per share amounts) |  | (unaudited, in thousands, except per share amounts)
Consolidated Statement of Operations: |  |  |  |  |  |  |  |  |  |  |
Cost of revenue - product subscriptions | $ | 48,188 |  |  | $ | 36 |  |  | $ | 48,224 |  |  | $ | 51,148 |  |  | $ | 78 |  |  | $ | 51,226 |
Cost of revenue - professional services | $ | 7,811 |  |  | $ | 10 |  |  | $ | 7,821 |  |  | $ | 7,016 |  |  | $ | 22 |  |  | $ | 7,038 |
Research and development expense | $ | 46,346 |  |  | $ | 148 |  |  | $ | 46,494 |  |  | $ | 50,762 |  |  | $ | 402 |  |  | $ | 51,164 |
Sales and marketing expense | $ | 80,587 |  |  | $ | 166 |  |  | $ | 80,753 |  |  | $ | 83,036 |  |  | $ | 332 |  |  | $ | 83,368 |
General and administrative expense | $ | 24,207 |  |  | $ | 269 |  |  | $ | 24,476 |  |  | $ | 22,888 |  |  | $ | 562 |  |  | $ | 23,450 |
Net income (loss) | $ | (25,915) |  |  | $ | (629) |  |  | $ | (26,544) |  |  | $ | (66,782) |  |  | $ | (1,396) |  |  | $ | (68,178) |
Net income (loss) per share, basic | $ | (0.43) |  |  | $ | (0.01) |  |  | $ | (0.44) |  |  | $ | (1.10) |  |  | $ | (0.03) |  |  | $ | (1.13) |
Net income (loss) per share, diluted | $ | (0.43) |  |  | $ | (0.01) |  |  | $ | (0.44) |  |  | $ | (1.10) |  |  | $ | (0.03) |  |  | $ | (1.13) |
| Three Months Ended September 30, 2023 |  | Three Months Ended December 31, 2023
| As Reported |  | Adjustment |  | Revised |  | As Reported |  | Adjustment |  | Revised
| (unaudited, in thousands, except per share amounts) |  | (unaudited, in thousands, except per share amounts)
Consolidated Statement of Operations: |  |  |  |  |  |  |  |  |  |  |
Cost of revenue - product subscriptions | $ | 51,261 |  |  | $ | 60 |  |  | $ | 51,321 |  |  | $ | 52,307 |  |  | $ | 62 |  |  | $ | 52,369 |
Cost of revenue - professional services | $ | 6,569 |  |  | $ | 21 |  |  | $ | 6,590 |  |  | $ | 7,441 |  |  | $ | 16 |  |  | $ | 7,457 |
Research and development expense | $ | 39,940 |  |  | $ | 309 |  |  | $ | 40,249 |  |  | $ | 39,729 |  |  | $ | 302 |  |  | $ | 40,031 |
Sales and marketing expense | $ | 75,699 |  |  | $ | 284 |  |  | $ | 75,983 |  |  | $ | 73,314 |  |  | $ | 243 |  |  | $ | 73,557 |
General and administrative expense | $ | 17,866 |  |  | $ | (76) |  |  | $ | 17,790 |  |  | $ | 19,314 |  |  | $ | 309 |  |  | $ | 19,623 |
Net income (loss) | $ | (76,611) |  |  | $ | (598) |  |  | $ | (77,209) |  |  | $ | 20,048 |  |  | $ | (932) |  |  | $ | 19,116 |
Net income (loss) per share, basic | $ | (1.25) |  |  | $ | (0.01) |  |  | $ | (1.26) |  |  | $ | 0.33 |  |  | $ | (0.02) |  |  | $ | 0.31 |
Net income (loss) per share, diluted | $ | (1.25) |  |  | $ | (0.01) |  |  | $ | (1.26) |  |  | $ | 0.27 |  |  | $ | (0.01) |  |  | $ | 0.26 |
| Three Months Ended March 31, 2024
| As Reported |  | Adjustment |  | Revised
| (unaudited, in thousands, except per share amounts)
Consolidated Statement of Operations: |  |  |  |  |
Cost of revenue - product subscriptions | $ | 54,655 |  |  | $ | 79 |  |  | $ | 54,734 |
Cost of revenue - professional services | $ | 6,248 |  |  | $ | 12 |  |  | $ | 6,260 |
Research and development expense | $ | 40,990 |  |  | $ | 378 |  |  | $ | 41,368 |
Sales and marketing expense | $ | 72,805 |  |  | $ | 290 |  |  | $ | 73,095 |
General and administrative expense | $ | 19,835 |  |  | $ | 93 |  |  | $ | 19,928 |
Net income (loss) | $ | 2,258 |  |  | $ | (852) |  |  | $ | 1,406 |
Net income (loss) per share, basic | $ | 0.04 |  |  | $ | (0.02) |  |  | $ | 0.02 |
Net income (loss) per share, diluted | $ | 0.03 |  |  | $ | (0.01) |  |  | $ | 0.02 |
Consolidated Statement of Cash Flows: |  |  |  |  |
Net income | $ | 2,258 |  |  | $ | (852) |  |  | $ | 1,406 |
Stock-based compensation expense | $ | 24,893 |  |  | $ | 852 |  |  | $ | 25,745 |
Net cash provided by operating activities | $ | 31,070 |  |  | $ | — |  |  | $ | 31,070 |
| Three Months Ended June 30, 2024 |  | Six Months Ended June 30, 2024
| As Reported |  | Adjustment |  | Revised |  | As Reported |  | Adjustment |  | Revised
| (unaudited, in thousands, except per share amounts) |  | (unaudited, in thousands, except per share amounts)
Consolidated Statement of Operations: |  |  |  |  |  |  |  |  |  |  |
Cost of revenue - product subscriptions | $ | 54,982 |  |  | $ | 125 |  |  | $ | 55,107 |  |  | $ | 109,637 |  |  | $ | 204 |  |  | $ | 109,841 |
Cost of revenue - professional services | $ | 5,866 |  |  | $ | 19 |  |  | $ | 5,885 |  |  | $ | 12,114 |  |  | $ | 31 |  |  | $ | 12,145 |
Research and development expense | $ | 40,056 |  |  | $ | 392 |  |  | $ | 40,448 |  |  | $ | 81,046 |  |  | $ | 770 |  |  | $ | 81,816 |
Sales and marketing expense | $ | 77,795 |  |  | $ | 331 |  |  | $ | 78,126 |  |  | $ | 150,600 |  |  | $ | 621 |  |  | $ | 151,221 |
General and administrative expense | $ | 22,412 |  |  | $ | 790 |  |  | $ | 23,202 |  |  | $ | 42,247 |  |  | $ | 883 |  |  | $ | 43,130 |
Net income (loss) | $ | 8,195 |  |  | $ | (1,657) |  |  | $ | 6,538 |  |  | $ | 10,453 |  |  | $ | (2,509) |  |  | $ | 7,944 |
Net income (loss) per share, basic | $ | 0.13 |  |  | $ | (0.03) |  |  | $ | 0.10 |  |  | $ | 0.13 |  |  | $ | (0.05) |  |  | $ | 0.08 |
Net income (loss) per share, diluted | $ | 0.11 |  |  | $ | (0.02) |  |  | $ | 0.09 |  |  | $ | 0.11 |  |  | $ | (0.03) |  |  | $ | 0.08 |
Consolidated Statement of Cash Flows: |  |  |  |  |  |  |  |  |  |  |
Net income (loss) |  |  |  |  |  |  | $ | 10,453 |  |  | $ | (2,509) |  |  | $ | 7,944 |
Stock-based compensation expense |  |  |  |  |  |  | $ | 52,302 |  |  | $ | 2,509 |  |  | $ | 54,811 |
Net cash provided by operating activities |  |  |  |  |  |  | $ | 63,928 |  |  | $ | — |  |  | $ | 63,928 |
| Three Months Ended September 30, 2024 |  | Nine Months Ended September 30, 2024
| As Reported |  | Adjustment |  | Revised |  | As Reported |  | Adjustment |  | Revised
| (unaudited, in thousands, except per share amounts) |  | (unaudited, in thousands, except per share amounts)
Consolidated Statement of Operations: |  |  |  |  |  |  |  |  |  |  |
Cost of revenue - product subscriptions | $ | 56,653 |  |  | $ | 121 |  |  | $ | 56,774 |  |  | $ | 166,290 |  |  | $ | 325 |  |  | $ | 166,615 |
Cost of revenue - professional services | $ | 6,364 |  |  | $ | 19 |  |  | $ | 6,383 |  |  | $ | 18,478 |  |  | $ | 50 |  |  | $ | 18,528 |
Research and development expense | $ | 44,565 |  |  | $ | 411 |  |  | $ | 44,976 |  |  | $ | 125,611 |  |  | $ | 1,181 |  |  | $ | 126,792 |
Sales and marketing expense | $ | 74,521 |  |  | $ | 300 |  |  | $ | 74,821 |  |  | $ | 225,121 |  |  | $ | 921 |  |  | $ | 226,042 |
General and administrative expense | $ | 18,590 |  |  | $ | 293 |  |  | $ | 18,883 |  |  | $ | 60,837 |  |  | $ | 1,176 |  |  | $ | 62,013 |
Net income (loss) | $ | 16,554 |  |  | $ | (1,144) |  |  | $ | 15,410 |  |  | $ | 27,007 |  |  | $ | (3,653) |  |  | $ | 23,354 |
Net income (loss) per share, basic | $ | 0.26 |  |  | $ | (0.02) |  |  | $ | 0.24 |  |  | $ | 0.43 |  |  | $ | (0.07) |  |  | $ | 0.36 |
Net income (loss) per share, diluted | $ | 0.22 |  |  | $ | (0.01) |  |  | $ | 0.21 |  |  | $ | 0.36 |  |  | $ | (0.04) |  |  | $ | 0.32 |
Consolidated Statement of Cash Flows: |  |  |  |  |  |  |  |  |  |  |
Net income (loss) |  |  |  |  |  |  | $ | 27,007 |  |  | $ | (3,653) |  |  | $ | 23,354 |
Stock-based compensation expense |  |  |  |  |  |  | $ | 76,896 |  |  | $ | 3,653 |  |  | $ | 80,549 |
Net cash provided by operating activities |  |  |  |  |  |  | $ | 107,897 |  |  | $ | — |  |  | $ | 107,897 |

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