XML 33 R23.htm IDEA: XBRL DOCUMENT v3.23.3
Restructuring
9 Months Ended
Sep. 30, 2023
Restructuring and Related Activities [Abstract]  
Restructuring Restructuring
In the third quarter of 2022, the Company initiated a strategic cost reduction plan to reduce its cost structure and lower its net loss, including voluntary and involuntary global headcount reductions as well as reductions in spending with various vendors. This plan was substantially completed in the first quarter of 2023, and the Company has pursued additional reductions in its workforce in the first nine months of 2023 to further reduce its cost structure.
The following table summarizes the restructuring costs and lease impairment charges under both plans in our condensed consolidated statements of operations for the three and nine months ended September 30, 2023 (in thousands):

Three Months Ended September 30, 2023Nine Months Ended September 30, 2023
Severance and Related Charges(1)
Lease Impairment Charge(2)
Total
Severance and Related Charges(1)
Lease Impairment Charge(2)
Total
Cost of revenue
Subscription and other platform$629 $19 $648 $2,134 $108 $2,242 
Professional services39 18 57 143 119 262 
Total cost of revenue668 37 705 2,277 227 2,504 
Sales and marketing150 48 198 1,958 256 2,214 
Research and development174 97 271 1,287 569 1,856 
General and administrative21 70 91 303 409 712 
Total restructuring costs$1,013 $252 $1,265 $5,825 $1,461 $7,286 
(1)Severance and related charges primarily include severance and one-time termination benefits.
(2)Lease impairment charge represents the underutilized real estate charge on the Company’s headquarters lease.

The following table summarizes the restructuring costs in our condensed consolidated statements of operations for the three and nine months ended September 30, 2022 (in thousands):
Three and Nine Months Ended September 30, 2022
Severance and Related Charges(1)
Cost of revenue
Subscription and other platform$363 
Professional services27 
Total cost of revenue390 
Sales and marketing582 
Research and development61 
General and administrative37 
Total restructuring costs$1,070 
(1)Severance and related charges primarily include severance and one-time termination benefits.
The Company paid restructuring costs of $1.3 million and $5.4 million during the three and nine months ended September 30, 2023, respectively, and $0.5 million during the three and nine months ended September 30, 2022. As of September 30, 2023 and December 31, 2022, the restructuring liability was $0.6 million and $0.2 million, respectively, and is included in accrued and other current liabilities on the condensed consolidated balance sheets.
The Company expects to incur additional restructuring costs of $0.4 million to $0.8 million in the fourth quarter of 2023 and may incur additional costs in future periods for restructuring activities.