Restructuring

12 Months Ended

Dec. 31, 2024

Restructuring and Related Activities [Abstract]

Restructuring Plans

In November 2024, management approved a restructuring plan intended to improve the Company’s cost structure and operating efficiency (the “2024 Restructuring Plan”). The 2024 Restructuring Plan included a reduction in headcount of approximately 12% of the Company’s workforce. During this period, approximately 12% of the Company’s workforce terminated employment involuntarily. In addition, as part of the 2024 Restructuring Plan, the Company reduced its footprint at its corporate headquarters. The 2024 Restructuring Plan was substantially completed by December 31, 2024.

During the year ended December 31, 2024, the Company recognized restructuring charges of $4.9 million, primarily for employee severance and benefits in connection with the workforce reduction, which amounted to $3.9 million. The Company also recorded an impairment charge of $0.9 million on its right-of-use asset related to the lease of the Company’s corporate headquarters and $0.1 million of professional services fees related to the execution of the Company’s 2024

Restructuring Plan, both of which are recorded as a component of general and administrative in the consolidated statements of operations and comprehensive loss.

The impairment charge of $0.9 million related to the Company’s corporate headquarters was the result of a partial exit from the office space for which the Company has an operating lease. The Company intends to sublease the vacated space in connection with the partial exit from the facility, and as a result, the Company determined that the right-of-use asset associated with the lease may exceed its fair value. The Company performed an assessment of the right-of-use asset and determined that the carrying value of the asset was impaired based on the application of a discounted cash flow model to a valuation appraisal of the facility obtained from a third party.

The majority of the employee severance and benefits costs incurred in connection with the 2024 Restructuring Plan were related to noncash stock-based compensation. The Company accelerated certain of the RSUs awarded to employees impacted by the 2024 Restructuring Plan and also extended certain of the employees’ options to satisfy the settlement of termination benefits to impacted employees. The severance and benefits costs related to the noncash stock-based compensation amounted to $2.5 million, of which $2.1 million related to the acceleration of RSUs and $0.4 million related to the extension of options. These charges were recorded as components of various line items in the consolidated statements of operations and comprehensive loss. The following table presents the stock-based compensation costs as reported in the consolidated statements of operations and comprehensive loss for the years ended December 31, 2024 and December 31, 2023 (in thousands):


	For the Years Ended December 31,
Stock-based Compensation	2024		2023
Cost of revenue	$	291	$	—
Research and development	885		—
Sales and marketing	1,225		80
General and administrative	123		45
Total	$	2,524	$	125

In January 2023, the Company initiated measures to reduce headcount to pursue greater cost efficiency and align strategic initiatives (the “2023 Restructuring Plan”). These measures were substantially completed by June 30, 2023, and the total cost was $3.6 million. During this period, approximately 1% of the Company’s workforce terminated employment voluntarily and 4% terminated employment involuntarily. As a result, the Company incurred employee termination expenses and other associated costs.

A summary of the restructuring charges related to the 2024 Restructuring Plan and the 2023 Restructuring Plan as reported in the consolidated statements of operations and comprehensive loss for the years ended December 31, 2024 and 2023 are presented in the table below. Of the total charges incurred during the year ended December 31, 2023, $0.7 million were related to involuntary terminations. All costs during the year ended December 31, 2024 were related to involuntary terminations.


	For the Years Ended December 31,
	2024		2023
Total Restructuring Charges	(in thousands)
Cost of revenue	$	460	$	—
Research and development	1,278		2,311
Sales and marketing	1,867		1,025
General and administrative (1)	1,256		280
Total	$	4,861	$	3,616

(1) General and administrative includes $0.9 million related to the impairment of the right-of-use asset related to the lease of the Company’s corporate headquarters.

The following table presents a summary of the liabilities related to the 2024 Restructuring Plan that are included within accrued expenses and other current liabilities on the consolidated balance sheet (in thousands):


Balance as of January 1, 2024	$	—
Charges incurred	3,928
Noncash stock-based compensation	(2,524)
Cash payments during the period	(1,049)
Balance as of December 31, 2024	$	355

(1) Charges incurred exclude right-of-use asset impairment of $0.9 million.

The following table presents a summary of the liabilities related to the 2023 Restructuring Plan that were included within accrued expenses and other current liabilities on the consolidated balance sheet, (in thousands):


Balance as of January 1, 2023	$	—
Severance and other personnel costs	3,616
Cash payments during the period	(3,616)
Balance as of December 31, 2023	$	—