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Acquisitions
 9 Months Ended
Sep. 30, 2025
Business Combination, Asset Acquisition, Transaction between Entities under Common Control, and Joint Venture Formation [Abstract]  
Acquisitions Acquisitions
On July 23, 2024, the Company entered into a share purchase agreement with, and acquired 100% of the outstanding share capital in, Breakroom. Breakroom is a UK-based employee review platform focused on frontline industries such as retail and hospitality. The Company believes there is an opportunity with Breakroom to complement its employment sites in the United States.
The fair value of consideration transferred on the date of acquisition totaled $13.3 million, consisting of $12.4 million paid in cash and a liability of $0.9 million assumed related to non-employee investor holdback consideration. Such non-employee investor holdback consideration, payable one year subsequent to the date of acquisition, was paid during the three months ended September 30, 2025. This consideration was subject to customary holdback provisions and was not contingent upon the occurrence of specified future events.
The financial results of Breakroom from the date of acquisition were included in the Company’s condensed consolidated financial statements for the three and nine months ended September 30, 2025 and 2024. Pro forma results of operations have not been presented as the results do not have a material effect on any of the periods presented in the Company’s condensed consolidated financial statements.
The following table summarizes the estimated fair values of identified assets and liabilities as of the acquisition date (in thousands):
Fair Value
Cash and cash equivalents$372 
Intangible assets6,208 
Goodwill6,794 
Other assets153 
Total assets
13,527 
Current liabilities
(187)
Net assets acquired$13,340 
The following table summarizes the estimated fair values of identifiable intangible assets acquired and their estimated useful life at the date of acquisition (in thousands, except useful life information):
Fair Value
Useful Life
(In Years)
Developed technology$5,783 3
Trade names and trademarks425 10
Total intangible assets subject to amortization$6,208 
Amortization expense for such finite-lived intangible assets was $0.5 million and $1.5 million during the three and nine months ended September 30, 2025, respectively, and $0.4 million during both the three and nine months ended September 30, 2024. Future amortization expense for the Company’s finite-lived intangible assets as of September 30, 2025 is as follows for the years ended December 31, (in thousands):
2025$496 
20261,970 
20271,120 
202843 
202943 
Thereafter193 
Total future amortization expense$3,865 
The estimated fair value of the developed technology acquired was determined using the replacement cost method. This approach requires the use of inputs within Level 3 in the fair value hierarchy related to the cost to replace the technology, including time and resources required, as well as an estimated profit margin and opportunity cost.
The estimated fair value of the trade names and trademarks acquired was determined using the relief-from-royalty method. This approach requires the use of inputs within Level 3 in the fair value hierarchy, including revenue projections, a royalty rate based on qualitative factors and market-derived royalty rates, and a discount rate based on the Company’s weighted average cost of capital adjusted for risks commonly inherent in trade names.
Goodwill was primarily attributable to the workforce of the acquired business and benefits related to expanded market opportunities from integrating Breakroom’s technology with the Company’s marketplace offerings. All of the goodwill was assigned to the Company’s single reporting unit and was not deductible for tax purposes.
Upon the close of the transaction, the Company agreed to pay up to $3.5 million to former Breakroom founders, in equal quarterly installments over a three-year period post-closing of the transaction, contingent upon those employees’ continued employment with the Company (the “Employee Seller Holdback Consideration”). These costs are expensed over the continued employment period. For the three and nine months ended September 30, 2025, the Company incurred expenses of $0.3 million and $0.9 million, respectively, related to the Employee Seller Holdback Consideration, of which $0.2 million and $0.6 million, respectively, were recorded in research and development expenses and $0.1 million and $0.3 million, respectively, were recorded in general and administrative expenses within the Company’s condensed consolidated statements of operations. For both the three and nine months ended September 30, 2024, the Company incurred expenses of $0.3 million related to the Employee Seller Holdback Consideration, of which $0.2 million were recorded in research and development expenses and $0.1 million were recorded in general and administrative expenses within the Company’s condensed consolidated statements of operations. The Company recorded no additional acquisition-related costs for the three and nine months ended September 30, 2025. Additional acquisition-related costs were not material for the three and nine months ended September 30, 2024.