SPROUT SOCIAL, INC., 10-Q filed on 5/3/2024
Quarterly Report
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Cover Page - shares
 3 Months Ended
Mar. 31, 2024
Apr. 26, 2024
Document Information [Line Items]    
Document Type 10-Q  
Document Quarterly Report true  
Document Period End Date Mar. 31, 2024  
Document Transition Report false  
Entity File Number 001-39156  
Entity Registrant Name SPROUT SOCIAL, INC.  
Entity Incorporation, State or Country Code DE  
Entity Tax Identification Number 27-2404165  
Entity Address, Address Line One 131 South Dearborn St.  
Entity Address, Address Line Two Suite 700  
Entity Address, City or Town Chicago  
Entity Address, State or Province IL  
Entity Address, Postal Zip Code 60603  
City Area Code (866)  
Local Phone Number 878-3231  
Title of 12(b) Security Class A Common Stock, $0.0001 par value per share  
Trading Symbol SPT  
Security Exchange Name NASDAQ  
Entity Current Reporting Status Yes  
Entity Interactive Data Current Yes  
Entity Filer Category Large Accelerated Filer  
Entity Small Business false  
Entity Emerging Growth Company false  
Entity Shell Company false  
Entity Central Index Key 0001517375  
Current Fiscal Year End Date --12-31  
Document Fiscal Year Focus 2024  
Document Fiscal Period Focus Q1  
Amendment Flag false  
Class A common stock    
Document Information [Line Items]    
Entity Common Stock, Shares Outstanding   49,817,372
Class B common stock    
Document Information [Line Items]    
Entity Common Stock, Shares Outstanding   6,720,638
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Condensed Consolidated Balance Sheets (Unaudited) - USD ($)
$ in Thousands
Mar. 31, 2024
Dec. 31, 2023
Current assets    
Cash and cash equivalents $ 69,162 $ 49,760
Marketable securities 25,048 44,645
Accounts receivable, net of allowances of $1,820 and $2,177 at March 31, 2024 and December 31, 2023, respectively 50,417 63,489
Deferred commissions 14,783 27,725
Prepaid expenses and other assets 18,337 10,324
Total current assets 177,747 195,943
Marketable securities, noncurrent 994 3,699
Property and equipment, net 11,609 11,407
Deferred commissions, net of current portion 42,442 26,240
Operating lease, right-of-use assets 8,293 8,729
Goodwill 121,315 121,404
Intangible assets, net 26,495 28,065
Other assets, net 1,045 1,098
Total assets 389,940 396,585
Current liabilities    
Accounts payable 5,735 6,933
Deferred revenue 146,358 140,536
Operating lease liabilities 3,971 3,948
Accrued wages and payroll related benefits 16,891 18,362
Accrued expenses and other 9,452 11,260
Total current liabilities 182,407 181,039
Deferred revenue, net of current portion 747 920
Operating lease liabilities, net of current portion 14,085 15,083
Other Liabilities, Noncurrent 351 351
Total liabilities 242,590 252,393
Commitments and contingencies (Note 7)
Stockholders’ equity    
Additional paid-in capital 489,969 471,789
Treasury stock, at cost (36,589) (35,113)
Accumulated other comprehensive loss (48) (77)
Accumulated deficit (305,987) (292,412)
Total stockholders’ equity 147,350 144,192
Total liabilities and stockholders’ equity 389,940 396,585
Line of Credit    
Current liabilities    
Revolving credit facility 45,000 55,000
Class A common stock    
Stockholders’ equity    
Common stock 4 4
Class B common stock    
Stockholders’ equity    
Common stock $ 1 $ 1
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Condensed Consolidated Balance Sheets (Unaudited) (Parenthetical) - USD ($)
$ in Thousands
Mar. 31, 2024
Dec. 31, 2023
Allowance for doubtful accounts $ 1,820 $ 2,177
Class A common stock    
Common stock, par value (in dollars per share) $ 0.0001 $ 0.0001
Common stock, shares authorized value (in shares) 1,000,000,000 1,000,000,000
Common stock, shares issued (in shares) 52,689,738 52,133,594
Common stock, shares outstanding (in shares) 49,774,624 49,241,563
Class B common stock    
Common stock, par value (in dollars per share) $ 0.0001 $ 0.0001
Common stock, shares authorized value (in shares) 25,000,000 25,000,000
Common stock, shares issued (in shares) 6,969,582 7,201,140
Common stock, shares outstanding (in shares) 6,762,638 6,994,196
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Condensed Consolidated Statements of Operations (Unaudited) - USD ($)
$ in Thousands
 3 Months Ended
Mar. 31, 2024
Mar. 31, 2023
Revenue    
Total revenue $ 96,784 $ 75,212
Cost of revenue    
Total cost of revenue 22,428 16,875
Gross profit 74,356 58,337
Operating expenses    
Research and development 23,769 17,876
Sales and marketing 44,540 36,905
General and administrative 19,334 15,489
Total operating expenses 87,643 70,270
Loss from operations (13,287) (11,933)
Interest expense (1,046) (28)
Interest income 1,035 2,020
Other (expense) income, net (406) (209)
Loss before income taxes (13,704) (10,150)
Income tax (benefit) expense (129) 102
Net loss $ (13,575) $ (10,252)
Net loss per share attributable to common shareholders, basic and diluted (in dollars per share) $ (0.24) $ (0.19)
Weighted-average shares outstanding used to compute net loss per share, basic and diluted (in shares) 56,344,242 55,176,425
Subscription    
Revenue    
Total revenue $ 95,789 $ 74,742
Cost of revenue    
Total cost of revenue 22,205 16,633
Professional services and other    
Revenue    
Total revenue 995 470
Cost of revenue    
Total cost of revenue $ 223 $ 242
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Condensed Consolidated Statements of Comprehensive Loss (Unaudited) - USD ($)
$ in Thousands
 3 Months Ended
Mar. 31, 2024
Mar. 31, 2023
Net loss $ (13,575) $ (10,252)
Net unrealized gain (loss) on available-for-sale securities, net of tax 29 78
Comprehensive loss $ (13,546) $ (10,174)
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Condensed Consolidated Statements Stockholders Equity (Unaudited) - USD ($)
$ in Thousands
Total
Voting Common Stock
Additional Paid-in Capital
Treasury Stock
Accumulated Deficit
Accumulated other comprehensive loss
Beginning balance (in shares) at Dec. 31, 2022   55,023,343   3,057,448    
Beginning balance at Dec. 31, 2022 $ 142,337 $ 5 $ 401,419 $ (32,733) $ (225,985) $ (369)
Increase (Decrease) in Stockholders' Equity [Roll Forward]            
Stock-based compensation 13,704   13,704      
Issuance of common stock from equity award settlement (in shares)   353,205        
Issuance of common stock from equity award settlement 0          
Taxes paid related to net share settlement of equity awards       (17,301)    
Taxes paid related to net share settlement of equity awards (1,099)     $ (1,099)    
Other Comprehensive Income (Loss), Net of Tax 78         78
Net loss (10,252)       (10,252)  
Ending balance (in shares) at Mar. 31, 2023   55,376,548   3,074,749    
Ending balance at Mar. 31, 2023 144,768 $ 5 415,123 $ (33,832) (236,237) (291)
Beginning balance (in shares) at Dec. 31, 2023   56,235,759   3,098,975    
Beginning balance at Dec. 31, 2023 144,192 $ 5 471,789 $ (35,113) (292,412) (77)
Increase (Decrease) in Stockholders' Equity [Roll Forward]            
Stock-based compensation 18,180   18,180      
Issuance of common stock from equity award settlement (in shares)   301,503        
Issuance of common stock from equity award settlement 0          
Taxes paid related to net share settlement of equity awards       (23,083)    
Taxes paid related to net share settlement of equity awards (1,476)     $ (1,476)    
Other Comprehensive Income (Loss), Net of Tax 29         29
Net loss (13,575)       (13,575)  
Ending balance (in shares) at Mar. 31, 2024   56,537,262   3,122,058    
Ending balance at Mar. 31, 2024 $ 147,350 $ 5 $ 489,969 $ (36,589) $ (305,987) $ (48)
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Condensed Consolidated Statements of Cash Flows (Unaudited)
$ in Thousands
 3 Months Ended
Mar. 31, 2024
USD ($)
Mar. 31, 2023
USD ($)
Cash flows from operating activities    
Net loss $ (13,575) $ (10,252)
Adjustments to reconcile net loss to net cash provided by operating activities    
Depreciation and amortization of property, equipment and software 887 708
Amortization of line of credit issuance costs 52 0
Amortization of premium (accretion of discount) on marketable securities (223) (882)
Amortization of acquired intangible assets 1,570 366
Amortization of deferred commissions 3,523 5,855
Amortization of right-of-use operating lease asset 436 355
Stock-based compensation expense 18,066 13,656
Provision for accounts receivable allowances 56 353
Changes in operating assets and liabilities, excluding impact from business acquisition    
Accounts receivable 13,017 (1,148)
Prepaid expenses and other current assets (7,670) (4,098)
Deferred commissions (6,783) (7,757)
Accounts payable and accrued expenses (2,865) (1,589)
Deferred revenue 5,648 13,554
Lease liabilities (975) (837)
Net cash provided by operating activities 11,164 8,284
Cash flows from investing activities    
Expenditures for property and equipment (1,092) (383)
Payments for business acquisition, net of cash acquired (1,409) (6,432)
Purchases of marketable securities 0 (30,078)
Proceeds from maturity of marketable securities 22,555 22,631
Proceeds from sale of marketable securities 0 5,571
Net cash provided by (used in) investing activities 20,054 (8,691)
Cash flows from financing activities    
Repayments of Lines of Credit (10,000) 0
Employee taxes paid related to the net share settlement of stock-based awards (1,476) (1,099)
Net cash used in financing activities (11,476) (1,099)
Net increase (decrease) in cash, cash equivalents and restricted cash 19,742 (1,506)
Cash, cash equivalents and restricted cash    
Beginning of period 53,695 79,917
Cash and cash equivalents 69,162 78,411
Restricted Cash 4,275 0
End of period $ 73,437 $ 78,411
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Nature of Operations and Summary of Significant Accounting Policies
 3 Months Ended
Mar. 31, 2024
Organization, Consolidation and Presentation of Financial Statements [Abstract]  
Nature of Operations and Summary of Significant Accounting Policies Nature of Operations and Summary of Significant Accounting Policies
Nature of Operations
Sprout Social, Inc. (“Sprout Social” or the “Company”), a Delaware corporation, began operating on April 21, 2010 to design, develop and operate a web-based comprehensive social media management tool enabling companies to manage and measure their online presence. Customers access their accounts online via a web-based interface or a mobile application. Some customers also purchase the Company’s professional services, which primarily consist of consulting and training services. The Company’s fiscal year end is December 31. The Company’s customers are primarily located throughout the United States, and a portion of customers are located in foreign countries. The Company is headquartered in Chicago, Illinois.
Principles of Consolidation and Basis of Presentation
The unaudited condensed consolidated financial statements and accompanying notes were prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) and the applicable regulations of the United States Securities and Exchange Commission (“SEC”) regarding interim financial reporting. The Company has prepared the unaudited condensed consolidated financial statements on a basis substantially consistent with the audited consolidated financial statements of the Company as of and for the year ended December 31, 2023, and these unaudited condensed consolidated financial statements include all normal recurring adjustments necessary for a fair statement of the results of the interim periods presented but are not necessarily indicative of the results of operations to be anticipated for the full year or any future period. The consolidated balance sheet as of December 31, 2023 included herein was derived from the audited consolidated financial statements as of that date but does not include all disclosures including certain disclosures required by GAAP on an annual basis. The unaudited condensed consolidated financial statements include the accounts of the Company and its wholly owned subsidiaries. All significant intercompany transactions and balances have been eliminated in consolidation.
The unaudited condensed consolidated financial statements should be read in conjunction with the audited consolidated financial statements and notes included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2023, filed with the SEC on February 23, 2024.
Use of Estimates
The preparation of financial statements in conformity with GAAP requires management to make estimates, judgments and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting periods. The Company bases its estimates on historical experience and on other assumptions that its management believes are reasonable under the circumstances. Actual results could differ from those estimates. The Company’s estimates and judgments include, but are not limited to, the estimated period of benefit for incremental costs of obtaining a contract with a customer, the incremental borrowing rate for operating leases, calculation of allowance for credit losses, valuation of assets and liabilities acquired as part of business combinations, useful lives of long-lived assets, stock-based compensation, income taxes, commitments and contingencies and litigation, among others. The Company is not aware of any events or circumstances that would require an update to its estimates and judgments or a revision of the carrying value of its assets or liabilities as of May 3, 2024, the date of issuance of this Quarterly Report on Form 10-Q. Actual results could differ from those estimates.
Summary of Significant Accounting Policies
The Company’s significant accounting policies are discussed in Note 1 - “Nature of Operations and Summary of Significant Accounting Policies” in the Notes to Consolidated Financial Statements as of and for the year ended December 31, 2023 included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2023, filed with the SEC on February 23, 2024. There have been no significant changes to these policies during the three months ended March 31, 2024, except as noted below.
Sales Commissions
Sales commissions earned by our sales force are considered incremental costs of obtaining a contract with a customer. Sales commissions are paid on initial contracts with new customers and for expansion of contracts with existing customers. Commissions are not paid on customer renewals. Sales commissions are deferred and amortized on a straight-line basis over a period of benefit. The Company has historically estimated such period of benefit to be three years.
On an annual basis, the Company assesses the expected period of benefit by taking into consideration the products sold, mix of customers, expected customer life, expected contract renewals, technology life cycle and other factors. Based on the assessment performed during the first quarter of 2024, the Company updated the period of benefit from three years to five years. This change in accounting estimate was effective January 1, 2024 and is being accounted for prospectively in the condensed consolidated financial statements. The change in amortization period resulted in a $4.4 million reduction to sales and marketing expense, or an increase of $0.08 per share basic and diluted, for the three months ended March 31, 2024.
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Revenue Recognition
 3 Months Ended
Mar. 31, 2024
Revenue from Contract with Customer [Abstract]  
Revenue Recognition Revenue Recognition
Disaggregation of Revenue
The Company provides disaggregation of revenue based on geographic region in Note 8 - “Segment and Geographic Data” of the Notes to the Financial Statements (Part I, Item 1 of this Quarterly Report) and based on the subscription versus professional services and other classification on the condensed consolidated statements of operations, as it believes these best depict how the nature, amount, timing and uncertainty of revenue and cash flows are affected by economic factors.
Deferred Revenue
Deferred revenue is recorded upon establishment of unconditional right to payment under non-cancellable contracts and is recognized as the revenue recognition criteria are met. The Company generally invoices customers in advance in monthly, quarterly, semi-annual and annual installments. The deferred revenue balance is influenced by several factors, including the compounding effects of renewals, invoice duration, timing and size. The amount of revenue recognized during the three months ended March 31, 2024 and 2023 that was included in deferred revenue at the beginning of each period was $62.0 million and $44.1 million, respectively.
As of March 31, 2024, including amounts already invoiced and amounts contracted but not yet invoiced, $290.0 million of revenue is expected to be recognized from remaining performance obligations, of which 73% is expected to be recognized in the next 12 months, with the remainder thereafter.
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Operating Leases
 3 Months Ended
Mar. 31, 2024
Leases [Abstract]  
Operating Leases Operating Leases
The Company has operating lease agreements for offices in Chicago, Illinois; Seattle, Washington; Santa Monica, California; and Dublin, Ireland. The Chicago lease expires in January 2028, the Seattle lease expires in January 2031, the Santa Monica lease expires in January 2025, and the Dublin lease expires in June 2025. These operating leases require escalating monthly rental payments ranging from approximately $14,000 to $280,000. Under the terms of the lease agreements, the Company is also responsible for its proportionate share of taxes and operating costs, which are treated as variable lease costs. The Company’s operating leases typically contain options to extend or terminate the term of the lease. The Company currently does not include any options to extend leases in its lease terms as it is not reasonably certain to exercise them. As such, it has recorded lease obligations only through the initial optional termination dates above.
The following table provides a summary of operating lease assets and liabilities as of March 31, 2024 (in thousands):
Assets
Operating lease right-of-use assets $8,293 
Liabilities
Operating lease liabilities3,971 
Operating lease liabilities, non-current14,085 
Total operating lease liabilities$18,056 
The following table provides information about leases on the condensed consolidated statements of operations (in thousands):
Three Months Ended March 31,
20242023
Operating lease expense$687 $648 
Variable lease expense856 893 
Within the condensed consolidated statements of operations, operating and variable lease expense are recorded in General and administrative expenses. Cash payments related to operating leases for the three months ended March 31, 2024 and 2023 were $2.1 million and $2.0 million, respectively. As of March 31, 2024, the weighted-average remaining lease term is 4.7 years and the weighted-average discount rate is 5.5%.
Remaining maturities of operating lease liabilities as of March 31, 2024 are as follows (in thousands):
Years ending December 31,
2024$3,653 
20254,497 
20264,298 
20274,392 
20281,277 
Thereafter2,326 
Total future minimum lease payments$20,443 
Less: imputed interest(2,387)
Total operating lease liabilities$18,056 
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Income Taxes
 3 Months Ended
Mar. 31, 2024
Income Tax Disclosure [Abstract]  
Income Taxes Income Taxes
The provision for income taxes for interim periods is generally determined using an estimate of the Company’s annual effective tax rate, excluding jurisdictions for which no tax benefit can be recognized due to valuation allowances. The Company’s effective tax rate differs from the U.S. federal statutory rate primarily due to a valuation allowance related to the Company’s federal and state deferred tax assets.
There is no provision for domestic income taxes because the Company has historically incurred operating losses and maintains a full valuation allowance against its net deferred tax assets. For the three months ended March 31, 2024, the Company recognized an immaterial tax benefit related to foreign income taxes.
The Company assesses all available positive and negative evidence to evaluate the realizability of its deferred tax assets and whether or not a valuation allowance is necessary. The Company’s three-year cumulative loss position was significant negative evidence in assessing the need for a valuation allowance. The weight given to positive and negative evidence is commensurate with the extent such evidence may be objectively verified. Given the weight of objectively verifiable historical losses from operations, the Company has recorded a full valuation allowance on its deferred tax assets. The Company may be able to reverse the valuation allowance when sufficient positive evidence exists to support the reversal of the valuation allowance.
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Revolving Line of Credit
 3 Months Ended
Mar. 31, 2024
Debt Disclosure [Abstract]  
Revolving Line of Credit Revolving Line of Credit
On August 1, 2023, the Company entered into a Credit Agreement (the “Credit Agreement”) by and among the Company, the banks and other financial institutions or entities party thereto as lenders and MUFG Bank, LTD. as administrative agent and collateral agent. The Credit Agreement provides for a $100 million senior secured revolving credit facility (the “Facility”), maturing on August 1, 2028. Borrowings under the Facility may be used to finance acquisitions and other investments permitted under the terms of the Credit Agreement, to pay related fees and expenses and for general corporate purposes. At March 31, 2024, the Company had an outstanding balance of $45.0 million under the Facility.
Borrowings under the Facility may be designated as SOFR Loans or ABR Loans (each as defined in the Credit Agreement), subject to certain terms and conditions under the Credit Agreement, and bear interest at a rate of either (i) SOFR (subject to a 1.0% floor), plus 0.10%, plus a margin ranging from 2.75% to 3.25% based on the Company’s liquidity or (ii) ABR (subject to a 2.0% floor) plus a margin
ranging from 1.75% to 2.25% based on the Company’s liquidity. The Facility also includes a quarterly commitment fee on the unused portion of the Facility of 0.30% or 0.35% based on the Company’s liquidity. For the three months ended March 31, 2024, the borrowings under the Facility were designated as SOFR Loans and the interest rate in effect for the outstanding balance was approximately 8.2%.
Debt issuance costs associated with the Facility were recorded to Other assets, net within the condensed consolidated balance sheets and are being amortized as interest expense on a straight-line basis over the term of the Facility.
The Credit Agreement includes customary conditions to credit extensions, affirmative and negative covenants, and customary events of default. The customary conditions also include restrictions on the Company’s ability to incur liens, incur indebtedness, make or hold investments, execute certain change of control transactions, business combinations or other fundamental changes to its business, dispose of assets, make certain types of restricted payments or enter into certain related party transactions, subject to customary exceptions. In addition, the Credit Agreement contains financial covenants as to (i) minimum liquidity, requiring the maintenance, at all times and measured at the end of each fiscal quarter, of cash and cash equivalents of not less than the greater of (x) $30 million and (y) 30% of the total revolving commitments, and (ii) minimum recurring revenue growth, requiring recurring revenue growth for the trailing four fiscal quarter period, measured at the end of each fiscal quarter, of not less than 115% of the actual recurring revenue for the same period in the prior fiscal year. As of March 31, 2024, the Company was in compliance with the covenants in the Credit Agreement.
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Incentive Stock Plan
 3 Months Ended
Mar. 31, 2024
Share-Based Payment Arrangement [Abstract]  
Incentive Stock Plan Incentive Stock Plan
Stock-based compensation expense is included in the unaudited condensed consolidated statements of operations as follows:
Three Months Ended March 31,
20242023
(in thousands)
Cost of revenue$925 $501 
Research and development5,450 3,602 
Sales and marketing7,376 6,570 
General and administrative4,315 2,983 
Total stock-based compensation$18,066 $13,656 
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Commitments and Contingencies
 3 Months Ended
Mar. 31, 2024
Commitments and Contingencies Disclosure [Abstract]  
Commitments and Contingencies Commitments and Contingencies
Contractual Obligations
The Company has non-cancellable minimum guaranteed purchase commitments for primarily data and services. Material contractual commitments as of March 31, 2024 that are not disclosed elsewhere are as follows (in thousands):
Years ending December 31,
2024$6,704 
20256,498 
20262,366 
2027378 
2028— 
Thereafter— 
Total contractual obligations$15,946 
Legal Matters
From time to time in the normal course of business, the Company may be subject to various legal matters such as threatened or pending claims or proceedings. There were no such material matters as of and for the period ended March 31, 2024.
Indemnification
In the ordinary course of business, the Company often includes standard indemnification provisions in its arrangements with third parties, including vendors, customers, investors, and the Company’s directors and officers. Pursuant to these provisions, the Company may be obligated to indemnify such parties for losses or claims suffered or incurred. It is not possible to determine the maximum potential loss under these indemnification provisions due to the Company’s limited history of prior indemnification claims and the unique facts and circumstances involved in each particular provision.
There were no material obligations under such indemnification agreements as of and for the period ended March 31, 2024.
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Segment and Geographic Data
 3 Months Ended
Mar. 31, 2024
Segment Reporting [Abstract]  
Segment and Geographic Data Segment and Geographic Data
The Company operates as one operating segment. The Company’s chief operating decision maker (“CODM”) is its chief executive officer, who reviews financial information for purposes of making operating decisions, assessing financial performance and allocating resources. The Company’s CODM evaluates financial information on a consolidated basis. As the Company operates as one operating segment, all required segment financial information is found in the condensed consolidated financial statements.
Long-lived assets by geographical region are based on the location of the legal entity that owns the assets. As of March 31, 2024 and December 31, 2023, there were no significant long-lived assets held by entities outside of the United States.
Revenue by geographical region is determined by location of the Company’s customers. Revenue from customers outside of the United States was approximately 27% for each of the three months ended March 31, 2024 and 2023. Revenue by geographical region is as follows (in thousands):
Three Months Ended March 31,
20242023
Americas$76,670 $59,111 
EMEA15,371 12,500 
Asia Pacific4,743 3,601 
Total$96,784 $75,212 
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Net Loss per Share
 3 Months Ended
Mar. 31, 2024
Earnings Per Share [Abstract]  
Net Loss per Share Net Loss per Share
Basic net loss per share is calculated by dividing the net loss by the weighted average number of outstanding shares of common stock for each period. Diluted net loss per share is calculated by giving effect to all potential dilutive common stock equivalents, which includes stock options and restricted stock units. Because the Company incurred net losses each period, the basic and diluted calculations are the same. Basic and diluted net loss per share are the same for each class of common stock, as both Class A and Class B stockholders are entitled to the same liquidation and dividend rights.
The following table presents the calculation for basic and diluted net loss per share (in thousands, except share and per share data):
Three Months Ended March 31,
20242023
Net loss attributable to common shareholders$(13,575)$(10,252)
Weighted average common shares outstanding56,344,242 55,176,425 
Net loss per share, basic and diluted$(0.24)$(0.19)
    
The following outstanding shares of common stock equivalents were excluded from the calculation of diluted net loss per share for each period, as the impact of including them would have been anti-dilutive.
March 31,
20242023
Stock options outstanding27,010 57,010 
RSUs outstanding4,046,291 2,779,378 
Total potentially dilutive shares4,073,301 2,836,388 
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Fair Value Measurements
 3 Months Ended
Mar. 31, 2024
Fair Value Disclosures [Abstract]  
Fair Value Measurements Fair Value Measurements
The Company measures certain financial assets at fair value. Fair value is determined based upon the exit price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants, as determined by either the principal market or the most advantageous market. Inputs used in the valuation techniques to derive fair values are classified based on a three-level hierarchy, as follows:
•Level 1: Quoted prices in active markets for identical assets or liabilities.
•Level 2: Observable inputs, other than Level 1 prices, such as quoted prices for similar assets or liabilities, quoted prices in markets that are not active, or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities.
•Level 3: Unobservable inputs that are supported by little or no market activity.
The following tables present information about the Company’s financial assets that are measured at fair value and indicate the fair value hierarchy of the valuation inputs used (in thousands):
March 31, 2024
Level 1Level 2Level 3Total
Marketable Securities:
  Commercial paper$— $1,982 $— $1,982 
  Corporate bonds— 22,263 — 22,263 
  U.S. Treasury securities— 499 — 499 
  U.S. agency securities— 1,298 — 1,298 
  Asset-backed securities— — — — 
Total assets$— $26,042 $— $26,042 
December 31, 2023
Level 1Level 2Level 3Total
Marketable Securities:
  Commercial paper$— $33,287 $— $33,287 
  Corporate bonds— 9,906 — 9,906 
  U.S. Treasury securities— 495 — 495 
U.S. agency securities— 4,289 — 4,289 
  Asset-backed securities— 367 — 367 
Total assets$— $48,344 $— $48,344 
Marketable securities are classified within Level 2 because they are valued using inputs other than quoted prices that are directly or indirectly observable in the market.
The carrying amounts of certain financial instruments, including cash held in banks, cash equivalents, restricted cash, accounts receivable, accounts payable and accrued liabilities, approximate fair value due to their short-term maturities and are excluded from the fair value tables above.
For the periods presented, the Company held investment-grade marketable securities which were accounted for as available-for-sale securities. As of March 31, 2024 and December 31, 2023, there was not a significant difference between the amortized cost and fair value of these securities. The gross unrealized gains and losses associated with these securities were immaterial in the periods presented.
The following table classifies our marketable securities by contractual maturity (in thousands):
March 31, 2024December 31, 2023
Due in one year or less25,048 44,645 
Due after one year and within two years994 3,699 
Total26,042 48,344 
v3.24.1.u1
Business Combinations
 3 Months Ended
Mar. 31, 2024
Business Combination, Asset Acquisition, and Joint Venture Formation [Abstract]  
Business Combinations Business Combinations
Tagger Media, Inc.
On August 2, 2023, the Company completed its acquisition of all the outstanding equity of Tagger, an influencer marketing and social intelligence platform. The Company acquired Tagger in order to expand into the influencer marketing category. Tagger’s platform enables marketers to discover influencers, plan and manage campaigns, analyze competitor strategies, report on trends and measure return on investment.
The Company acquired Tagger for a total preliminary purchase consideration of $144 million in cash, which incorporates the impact of various customary adjustments such as working capital, cash and indebtedness. The Company funded the purchase consideration with a combination of cash on hand and $75 million borrowed under the Facility further described in Note 5 - “Revolving Line of Credit” of the Notes to the Financial Statements (Part I, Item 1 of this Quarterly Report).
The excess of purchase consideration over the fair value of net assets acquired was recorded as goodwill, and is primarily attributable to expanded market opportunities from integrating the acquired developed technologies with the Company’s offerings. Goodwill is not deductible for income tax purposes.
The fair values of the tangible and identifiable intangible assets acquired and liabilities assumed are based on management’s estimates and assumptions. These estimates are based on preliminary information and may be subject to further revision as additional information is obtained during the measurement period, which may last up to 12 months from the date of the acquisition. The primary area that remains preliminary as of March 31, 2024 relates to income taxes. The Company expects to finalize the fair value measurements as soon as practicable, but not later than 12 months from the date of acquisition.
The following table summarizes the preliminary fair values of assets acquired and liabilities assumed as of the date of acquisition (in thousands):
August 2, 2023
Cash and cash equivalents$4,648 
Accounts receivable2,979 
Other current and noncurrent assets932 
Intangible assets27,800 
Accounts payable, accrued expenses and other liabilities(1,758)
Deferred revenue(3,243)
Net assets acquired, excluding Goodwill31,358 
Goodwill112,405 
Total consideration$143,763 
Cash and cash equivalents acquired(4,648)
Cash paid for acquisition of business, net of cash acquired$139,115 
The Company engaged a third-party valuation expert to aid its analysis of the acquired identifiable intangible assets. All estimates, key assumptions and forecasts were either provided by or reviewed by the Company. While the Company chose to utilize a third-party valuation expert for assistance, the fair value analysis and related valuations reflect the conclusions of management and not those of any third party.
The fair values of the acquired technology and the trademark identified intangible assets were determined utilizing the relief from royalty method under the income approach. The fair values of the customer relationships were valued using the multi-period excess-earnings method. The Company applied judgment which involved the use of assumptions with respect to revenue growth rates, customer attrition rate, discount rate, royalty rate, obsolescence rate and total operating expenses.
Acquired intangible assets are being amortized over the estimated useful lives on a straight-line basis. The following table summarizes the estimated preliminary fair values (in thousands) and estimated useful lives for the identifiable intangible assets acquired as of the acquisition date:
Fair ValueExpected Useful Life
Customer Relationships$12,400 7 years
Acquired Technology14,100 5 years
Trademark1,300 5 years
$27,800 
The Company has included the financial results of Tagger in its condensed consolidated financial statements from the date of acquisition. Separate financial results and pro forma financial information for Tagger have not been presented as the effect of this acquisition was not material to the Company’s financial results.
Repustate, Inc.
On January 19, 2023, the Company completed the acquisition of all the outstanding equity of Repustate, Inc. The acquisition has increased the Company’s power, breadth and automation of social listening, messaging, and customer care capabilities with added sentiment analysis, natural language processing (NLP) and artificial-intelligence (AI).
The total final purchase consideration for the acquisition was $8.3 million, consisting of approximately $6.8 million in cash paid at the closing of the acquisition and a holdback of $1.5 million in cash to be paid as purchase consideration after the one-year anniversary of the closing of the acquisition, assuming no claims by the Company against the holdback amount for post-closing purchase price adjustments or indemnification matters. The purchase price holdback was paid in full in January 2024.
The excess of purchase consideration over the fair value of net assets acquired was recorded as goodwill, and is primarily attributable to expected post-acquisition synergies from integrating the technology into Sprout’s platform. The goodwill is not deductible for income tax purposes.
The fair values of the tangible and identifiable intangible assets acquired and liabilities assumed are based on management’s estimates and assumptions. The allocation of fair value of purchase consideration was finalized in the fourth quarter of 2023.
The following table summarizes the fair values of assets acquired and liabilities assumed as of the date of acquisition (in thousands):
January 19, 2023
Cash and cash equivalents$366 
Intangible assets1,800 
Deferred tax liability(477)
Other net tangible assets and liabilities assumed(4)
Net assets acquired, excluding Goodwill1,685 
Goodwill6,611 
Total consideration$8,296 
Deferred consideration related to holdback(1,498)
Cash and cash equivalents acquired(366)
Cash paid for acquisition of business, net of cash acquired$6,432 
The following table summarizes the estimated fair values (in thousands) and estimated useful lives for the identifiable intangible assets acquired as of the acquisition date:
Fair ValueExpected Useful Life
Customer Relationships$200 1 year
Acquired Technology1,600 5 years
$1,800 
The Company has included the financial results of Repustate in its condensed consolidated financial statements from the date of acquisition. Separate financial results and pro forma financial information for Repustate have not been presented as the effect of this acquisition was not material to the Company’s financial results.
Goodwill
The changes in the carrying amount of goodwill during the three months ended March 31, 2024 were as follows (in thousands):
Goodwill balance as of December 31, 2023
$121,404 
Purchase price allocation adjustment (Tagger)(89)
Goodwill balance as of March 31, 2024
$121,315 
v3.24.1.u1
Nature of Operations and Summary of Significant Accounting Policies (Policies)
 3 Months Ended
Mar. 31, 2024
Organization, Consolidation and Presentation of Financial Statements [Abstract]  
Basis of Presentation The unaudited condensed consolidated financial statements and accompanying notes were prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) and the applicable regulations of the United States Securities and Exchange Commission (“SEC”) regarding interim financial reporting. The Company has prepared the unaudited condensed consolidated financial statements on a basis substantially consistent with the audited consolidated financial statements of the Company as of and for the year ended December 31, 2023, and these unaudited condensed consolidated financial statements include all normal recurring adjustments necessary for a fair statement of the results of the interim periods presented but are not necessarily indicative of the results of operations to be anticipated for the full year or any future period. The consolidated balance sheet as of December 31, 2023 included herein was derived from the audited consolidated financial statements as of that date but does not include all disclosures including certain disclosures required by GAAP on an annual basis. The unaudited condensed consolidated financial statements include the accounts of the Company and its wholly owned subsidiaries.
Principles of Consolidation All significant intercompany transactions and balances have been eliminated in consolidation.
Use of Estimates
The preparation of financial statements in conformity with GAAP requires management to make estimates, judgments and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting periods. The Company bases its estimates on historical experience and on other assumptions that its management believes are reasonable under the circumstances. Actual results could differ from those estimates. The Company’s estimates and judgments include, but are not limited to, the estimated period of benefit for incremental costs of obtaining a contract with a customer, the incremental borrowing rate for operating leases, calculation of allowance for credit losses, valuation of assets and liabilities acquired as part of business combinations, useful lives of long-lived assets, stock-based compensation, income taxes, commitments and contingencies and litigation, among others. The Company is not aware of any events or circumstances that would require an update to its estimates and judgments or a revision of the carrying value of its assets or liabilities as of May 3, 2024, the date of issuance of this Quarterly Report on Form 10-Q. Actual results could differ from those estimates.
Sales Commissions
Sales commissions earned by our sales force are considered incremental costs of obtaining a contract with a customer. Sales commissions are paid on initial contracts with new customers and for expansion of contracts with existing customers. Commissions are not paid on customer renewals. Sales commissions are deferred and amortized on a straight-line basis over a period of benefit. The Company has historically estimated such period of benefit to be three years.
On an annual basis, the Company assesses the expected period of benefit by taking into consideration the products sold, mix of customers, expected customer life, expected contract renewals, technology life cycle and other factors. Based on the assessment performed during the first quarter of 2024, the Company updated the period of benefit from three years to five years. This change in accounting estimate was effective January 1, 2024 and is being accounted for prospectively in the condensed consolidated financial statements. The change in amortization period resulted in a $4.4 million reduction to sales and marketing expense, or an increase of $0.08 per share basic and diluted, for the three months ended March 31, 2024.
Deferred Revenue Deferred revenue is recorded upon establishment of unconditional right to payment under non-cancellable contracts and is recognized as the revenue recognition criteria are met. The Company generally invoices customers in advance in monthly, quarterly, semi-annual and annual installments. The deferred revenue balance is influenced by several factors, including the compounding effects of renewals, invoice duration, timing and size.
v3.24.1.u1
Operating Leases (Tables)
 3 Months Ended
Mar. 31, 2024
Leases [Abstract]  
Summary of operating lease assets and liabilities
The following table provides a summary of operating lease assets and liabilities as of March 31, 2024 (in thousands):
Assets
Operating lease right-of-use assets $8,293 
Liabilities
Operating lease liabilities3,971 
Operating lease liabilities, non-current14,085 
Total operating lease liabilities$18,056 
Schedule of lease cost
The following table provides information about leases on the condensed consolidated statements of operations (in thousands):
Three Months Ended March 31,
20242023
Operating lease expense$687 $648 
Variable lease expense856 893 
Schedule of remaining maturities of operating lease liabilities
Remaining maturities of operating lease liabilities as of March 31, 2024 are as follows (in thousands):
Years ending December 31,
2024$3,653 
20254,497 
20264,298 
20274,392 
20281,277 
Thereafter2,326 
Total future minimum lease payments$20,443 
Less: imputed interest(2,387)
Total operating lease liabilities$18,056 
v3.24.1.u1
Incentive Stock Plan (Tables)
 3 Months Ended
Mar. 31, 2024
Share-Based Payment Arrangement [Abstract]  
Schedule of stock-based compensation expense
Stock-based compensation expense is included in the unaudited condensed consolidated statements of operations as follows:
Three Months Ended March 31,
20242023
(in thousands)
Cost of revenue$925 $501 
Research and development5,450 3,602 
Sales and marketing7,376 6,570 
General and administrative4,315 2,983 
Total stock-based compensation$18,066 $13,656 
v3.24.1.u1
Commitments and Contingencies (Tables)
 3 Months Ended
Mar. 31, 2024
Commitments and Contingencies Disclosure [Abstract]  
Schedule of contractual commitments Material contractual commitments as of March 31, 2024 that are not disclosed elsewhere are as follows (in thousands):
Years ending December 31,
2024$6,704 
20256,498 
20262,366 
2027378 
2028— 
Thereafter— 
Total contractual obligations$15,946 
v3.24.1.u1
Segment and Geographic Data (Tables)
 3 Months Ended
Mar. 31, 2024
Segment Reporting [Abstract]  
Schedule of revenue by geographical region Revenue by geographical region is as follows (in thousands):
Three Months Ended March 31,
20242023
Americas$76,670 $59,111 
EMEA15,371 12,500 
Asia Pacific4,743 3,601 
Total$96,784 $75,212 
v3.24.1.u1
Net Loss per Share (Tables)
 3 Months Ended
Mar. 31, 2024
Earnings Per Share [Abstract]  
Schedule of basic and diluted net loss per share
The following table presents the calculation for basic and diluted net loss per share (in thousands, except share and per share data):
Three Months Ended March 31,
20242023
Net loss attributable to common shareholders$(13,575)$(10,252)
Weighted average common shares outstanding56,344,242 55,176,425 
Net loss per share, basic and diluted$(0.24)$(0.19)
Schedule of shares excluded from the calculation of diluted net loss per share
The following outstanding shares of common stock equivalents were excluded from the calculation of diluted net loss per share for each period, as the impact of including them would have been anti-dilutive.
March 31,
20242023
Stock options outstanding27,010 57,010 
RSUs outstanding4,046,291 2,779,378 
Total potentially dilutive shares4,073,301 2,836,388 
v3.24.1.u1
Fair Value Measurements (Tables)
 3 Months Ended
Mar. 31, 2024
Fair Value Disclosures [Abstract]  
Schedule of financial assets measured at fair value
The following tables present information about the Company’s financial assets that are measured at fair value and indicate the fair value hierarchy of the valuation inputs used (in thousands):
March 31, 2024
Level 1Level 2Level 3Total
Marketable Securities:
  Commercial paper$— $1,982 $— $1,982 
  Corporate bonds— 22,263 — 22,263 
  U.S. Treasury securities— 499 — 499 
  U.S. agency securities— 1,298 — 1,298 
  Asset-backed securities— — — — 
Total assets$— $26,042 $— $26,042 
December 31, 2023
Level 1Level 2Level 3Total
Marketable Securities:
  Commercial paper$— $33,287 $— $33,287 
  Corporate bonds— 9,906 — 9,906 
  U.S. Treasury securities— 495 — 495 
U.S. agency securities— 4,289 — 4,289 
  Asset-backed securities— 367 — 367 
Total assets$— $48,344 $— $48,344 
Investments Classified by Contractual Maturity Date
The following table classifies our marketable securities by contractual maturity (in thousands):
March 31, 2024December 31, 2023
Due in one year or less25,048 44,645 
Due after one year and within two years994 3,699 
Total26,042 48,344 
v3.24.1.u1
Business Combinations (Tables)
 3 Months Ended
Mar. 31, 2024
Business Combination, Asset Acquisition, and Joint Venture Formation [Abstract]  
Schedule of Recognized Identified Assets Acquired and Liabilities Assumed
The following table summarizes the preliminary fair values of assets acquired and liabilities assumed as of the date of acquisition (in thousands):
August 2, 2023
Cash and cash equivalents$4,648 
Accounts receivable2,979 
Other current and noncurrent assets932 
Intangible assets27,800 
Accounts payable, accrued expenses and other liabilities(1,758)
Deferred revenue(3,243)
Net assets acquired, excluding Goodwill31,358 
Goodwill112,405 
Total consideration$143,763 
Cash and cash equivalents acquired(4,648)
Cash paid for acquisition of business, net of cash acquired$139,115 
The following table summarizes the fair values of assets acquired and liabilities assumed as of the date of acquisition (in thousands):
January 19, 2023
Cash and cash equivalents$366 
Intangible assets1,800 
Deferred tax liability(477)
Other net tangible assets and liabilities assumed(4)
Net assets acquired, excluding Goodwill1,685 
Goodwill6,611 
Total consideration$8,296 
Deferred consideration related to holdback(1,498)
Cash and cash equivalents acquired(366)
Cash paid for acquisition of business, net of cash acquired$6,432 
Schedule of Acquired Finite-Lived Intangible Assets by Major Class The following table summarizes the estimated preliminary fair values (in thousands) and estimated useful lives for the identifiable intangible assets acquired as of the acquisition date:
Fair ValueExpected Useful Life
Customer Relationships$12,400 7 years
Acquired Technology14,100 5 years
Trademark1,300 5 years
$27,800 
The following table summarizes the estimated fair values (in thousands) and estimated useful lives for the identifiable intangible assets acquired as of the acquisition date:
Fair ValueExpected Useful Life
Customer Relationships$200 1 year
Acquired Technology1,600 5 years
$1,800 
Schedule of Goodwill
The changes in the carrying amount of goodwill during the three months ended March 31, 2024 were as follows (in thousands):
Goodwill balance as of December 31, 2023
$121,404 
Purchase price allocation adjustment (Tagger)(89)
Goodwill balance as of March 31, 2024
$121,315 
v3.24.1.u1
Nature of Operations and Summary of Significant Accounting Policies (Details) - USD ($)
$ / shares in Units, $ in Thousands
 3 Months Ended
Mar. 31, 2024
Mar. 31, 2023
Organization, Consolidation and Presentation of Financial Statements [Abstract]    
Sales and marketing $ 44,540 $ 36,905
Reduction in sales and marketing expense $ 4,400  
Benefit to Net Loss Per Share $ 0.08  
v3.24.1.u1
Revenue Recognition (Details) - USD ($)
$ in Millions
 3 Months Ended
Mar. 31, 2024
Mar. 31, 2023
Revenue from Contract with Customer [Abstract]    
Revenue recognized previously deferred $ 62.0 $ 44.1
Revenue expected to be recognized $ 290.0  
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2024-04-01    
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]    
Revenue expected to be recognized, percentage 73.00%  
Revenue, remaining performance obligation, period 12 months  
v3.24.1.u1
Operating Leases - Narrative (Details) - USD ($)
$ in Thousands
 3 Months Ended
Mar. 31, 2024
Mar. 31, 2023
Lessee, Lease, Description [Line Items]    
Monthly rental payments $ 687 $ 648
Payments related to operating leases $ 2,100 $ 2,000
Weighted-average remaining lease term 4 years 8 months 12 days  
Weighted-average discount rate 5.50%  
Minimum    
Lessee, Lease, Description [Line Items]    
Monthly rental payments $ 14  
Maximum    
Lessee, Lease, Description [Line Items]    
Monthly rental payments $ 280  
v3.24.1.u1
Operating Leases - Summary of operating lease assets and liabilities (Details) - USD ($)
$ in Thousands
Mar. 31, 2024
Dec. 31, 2023
Leases [Abstract]    
Operating lease, right-of-use assets $ 8,293 $ 8,729
Operating lease liabilities 3,971 3,948
Operating lease liabilities, net of current portion 14,085 $ 15,083
Total operating lease liabilities $ 18,056  
v3.24.1.u1
Operating Leases - Lease cost (Details) - USD ($)
$ in Thousands
 3 Months Ended
Mar. 31, 2024
Mar. 31, 2023
Leases [Abstract]    
Monthly rental payments $ 687 $ 648
Variable lease expense $ 856 $ 893
v3.24.1.u1
Operating Leases - Remaining maturities of operating lease liabilities (Details)
$ in Thousands
Mar. 31, 2024
USD ($)
Leases [Abstract]  
2024 $ 3,653
2025 4,497
2026 4,298
2027 4,392
2028 1,277
Thereafter 2,326
Total future minimum lease payments 20,443
Less: imputed interest (2,387)
Total operating lease liabilities $ 18,056
v3.24.1.u1
Revolving Line of Credit (Details) - USD ($)
 3 Months Ended
Aug. 01, 2023
Mar. 31, 2024
Dec. 31, 2023
Line of Credit Facility [Line Items]      
Line of Credit Facility, Maximum Borrowing Capacity $ 100,000,000    
Debt Instrument, Maturity Date, Description August 1, 2028    
Line of Credit Facility, Covenant Terms   115  
Line of Credit      
Line of Credit Facility [Line Items]      
Line of Credit Facility, Covenant Terms   30  
Minimum      
Line of Credit Facility [Line Items]      
Line of Credit Facility, Unused Capacity, Commitment Fee Percentage 0.35%    
Maximum      
Line of Credit Facility [Line Items]      
Line of Credit Facility, Unused Capacity, Commitment Fee Percentage 0.30%    
Secured Overnight Financing Rate (SOFR)      
Line of Credit Facility [Line Items]      
Debt Instrument, Floor Interest Rate 1.00%    
Debt Instrument, Basis Spread on Variable Rate 0.10%    
Line of Credit Facility, Interest Rate During Period   8.20%  
Secured Overnight Financing Rate (SOFR) | Maximum      
Line of Credit Facility [Line Items]      
Debt Instrument, Basis Spread on Variable Rate 3.25%    
Base Rate      
Line of Credit Facility [Line Items]      
Debt Instrument, Floor Interest Rate 2.00%    
Base Rate | Minimum | Line of Credit      
Line of Credit Facility [Line Items]      
Debt Instrument, Basis Spread on Variable Rate 1.75%    
Base Rate | Maximum | Line of Credit      
Line of Credit Facility [Line Items]      
Debt Instrument, Basis Spread on Variable Rate 2.25%    
Line of Credit      
Line of Credit Facility [Line Items]      
Revolving credit facility   $ 45,000,000 $ 55,000,000
Line of Credit Facility, Covenant Terms 30 million    
Line of Credit | Secured Overnight Financing Rate (SOFR) | Minimum      
Line of Credit Facility [Line Items]      
Debt Instrument, Basis Spread on Variable Rate 2.75%    
v3.24.1.u1
Incentive Stock Plan (Details) - USD ($)
$ in Thousands
 3 Months Ended
Mar. 31, 2024
Mar. 31, 2023
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]    
Total stock-based compensation $ 18,066 $ 13,656
Cost of revenue    
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]    
Total stock-based compensation 925 501
Research and development    
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]    
Total stock-based compensation 5,450 3,602
Sales and marketing    
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]    
Total stock-based compensation 7,376 6,570
General and administrative    
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]    
Total stock-based compensation $ 4,315 $ 2,983
v3.24.1.u1
Commitments and Contingencies (Details)
$ in Thousands
Mar. 31, 2024
USD ($)
Commitments and Contingencies Disclosure [Abstract]  
2024 $ 6,704
2025 6,498
2026 2,366
2027 378
2028 0
Thereafter 0
Total contractual obligations $ 15,946
v3.24.1.u1
Segment and Geographic Data (Details)
$ in Thousands
 3 Months Ended
Mar. 31, 2024
USD ($)
segment
Mar. 31, 2023
USD ($)
Segment Reporting [Abstract]    
Number of operating segments | segment 1  
Disaggregation of Revenue [Line Items]    
Total revenue $ 96,784 $ 75,212
Americas    
Disaggregation of Revenue [Line Items]    
Total revenue 76,670 59,111
EMEA    
Disaggregation of Revenue [Line Items]    
Total revenue 15,371 12,500
Asia Pacific    
Disaggregation of Revenue [Line Items]    
Total revenue $ 4,743 $ 3,601
Geographic Concentration Risk | Revenue from Contract with Customer Benchmark | Outside of the United States    
Disaggregation of Revenue [Line Items]    
Concentration risk percentage 27.00%  
v3.24.1.u1
Net Loss per Share - Basic and diluted net loss per share (Details) - USD ($)
$ / shares in Units, $ in Thousands
 3 Months Ended
Mar. 31, 2024
Mar. 31, 2023
Earnings Per Share [Abstract]    
Net loss attributable to common shareholders $ (13,575) $ (10,252)
Weighted average common shares outstanding (in shares) 56,344,242 55,176,425
Net loss per share, basic and diluted (in dollars per share) $ (0.24) $ (0.19)
v3.24.1.u1
Net Loss per Share - Shares excluded from the calculation of diluted net loss per share (Details) - shares
 3 Months Ended
Mar. 31, 2024
Mar. 31, 2023
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]    
Total potentially dilutive shares (in shares) 4,073,301 2,836,388
Stock options outstanding    
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]    
Total potentially dilutive shares (in shares) 27,010 57,010
RSUs outstanding    
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]    
Total potentially dilutive shares (in shares) 4,046,291 2,779,378
v3.24.1.u1
Fair Value Measurements (Details) - USD ($)
$ in Thousands
Mar. 31, 2024
Dec. 31, 2023
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Total assets $ 26,042 $ 48,344
Marketable securities 25,048 44,645
Marketable securities, noncurrent 994 3,699
Level 1    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Total assets 0 0
Level 2    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Total assets 26,042 48,344
Level 3    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Total assets 0 0
Commercial paper    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Marketable securities 1,982 33,287
Commercial paper | Level 1    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Marketable securities 0 0
Commercial paper | Level 2    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Marketable securities 1,982 33,287
Commercial paper | Level 3    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Marketable securities 0 0
Corporate bonds    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Marketable securities 22,263 9,906
Corporate bonds | Level 1    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Marketable securities 0 0
Corporate bonds | Level 2    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Marketable securities 22,263 9,906
Corporate bonds | Level 3    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Marketable securities 0 0
US Treasury Securities    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Marketable securities 499 495
US Treasury Securities | Level 1    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Marketable securities 0 0
US Treasury Securities | Level 2    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Marketable securities 499 495
US Treasury Securities | Level 3    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Marketable securities 0 0
US Agency Securities    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Marketable securities 1,298 4,289
US Agency Securities | Level 1    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Marketable securities 0 0
US Agency Securities | Level 2    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Marketable securities 1,298 4,289
US Agency Securities | Level 3    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Marketable securities 0 0
Asset-backed securities    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Marketable securities 0 367
Asset-backed securities | Level 1    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Marketable securities 0 0
Asset-backed securities | Level 2    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Marketable securities 0 367
Asset-backed securities | Level 3    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Marketable securities $ 0 $ 0
v3.24.1.u1
Business Combinations - Narrative (Details) - USD ($)
$ in Thousands
 3 Months Ended 14 Months Ended
Aug. 02, 2023
Jan. 19, 2023
Mar. 31, 2024
Mar. 31, 2023
Mar. 31, 2024
Dec. 31, 2023
Aug. 01, 2023
Business Combination, Separately Recognized Transactions [Line Items]              
Payments for business acquisition, net of cash acquired     $ 1,409 $ 6,432      
Line of Credit              
Business Combination, Separately Recognized Transactions [Line Items]              
Revolving credit facility     $ 45,000   $ 45,000 $ 55,000  
Tagger Media              
Business Combination, Separately Recognized Transactions [Line Items]              
Business Acquisition, Date of Acquisition Agreement     Aug. 02, 2023        
Business Combination, Consideration Transferred $ 144,000            
Revolving credit facility             $ 75,000
Payments for business acquisition, net of cash acquired $ 139,115            
Repustate Inc.              
Business Combination, Separately Recognized Transactions [Line Items]              
Business Combination, Consideration Transferred   $ 8,300          
Payments for business acquisition, net of cash acquired   6,800     6,432    
Deferred Consideration Related to Holdback   $ 1,500     $ (1,498)    
v3.24.1.u1
Business Combinations - Fair Value of Assets and Liabilities Assumed (Details) - USD ($)
$ in Thousands
 3 Months Ended 14 Months Ended
Aug. 02, 2023
Jan. 19, 2023
Mar. 31, 2024
Mar. 31, 2023
Mar. 31, 2024
Dec. 31, 2023
Schedule Of Identified Assets Acquired And Liabilities Assumed [Line Items]            
Net assets acquired, excluding Goodwill $ 31,358 $ 1,685        
Goodwill     $ 121,315   $ 121,315 $ 121,404
Payments for business acquisition, net of cash acquired     $ 1,409 $ 6,432    
Tagger Media            
Schedule Of Identified Assets Acquired And Liabilities Assumed [Line Items]            
Cash and cash equivalents 4,648          
Accounts receivable 2,979          
Other current and noncurrent assets 932          
Intangible assets 27,800          
Accounts payable, accrued expenses and other liabilities (1,758)          
Deferred revenue (3,243)          
Goodwill 112,405          
Total consideration 143,763          
Cash and cash equivalents acquired (4,648)          
Payments for business acquisition, net of cash acquired $ 139,115          
Repustate Inc.            
Schedule Of Identified Assets Acquired And Liabilities Assumed [Line Items]            
Cash and cash equivalents   366        
Intangible assets   1,800        
Deferred tax liability   (477)        
Other net tangible assets and liabilities assumed   (4)        
Goodwill   6,611        
Total consideration   8,296        
Deferred Consideration Related to Holdback   1,500     (1,498)  
Cash and cash equivalents acquired         (366)  
Payments for business acquisition, net of cash acquired   $ 6,800     $ 6,432  
v3.24.1.u1
Business Combinations - Intangible Assets Acquired (Details) - USD ($)
$ in Thousands
Aug. 02, 2023
Jan. 19, 2023
Tagger Media    
Business Acquisition [Line Items]    
Fair Value $ 27,800  
Tagger Media | Customer Relationships    
Business Acquisition [Line Items]    
Fair Value $ 12,400  
Expected Useful Life 7 years  
Tagger Media | Acquired Technology    
Business Acquisition [Line Items]    
Fair Value $ 14,100  
Expected Useful Life 5 years  
Tagger Media | Trademark    
Business Acquisition [Line Items]    
Fair Value $ 1,300  
Expected Useful Life 5 years  
Repustate Inc.    
Business Acquisition [Line Items]    
Fair Value   $ 1,800
Repustate Inc. | Customer Relationships    
Business Acquisition [Line Items]    
Fair Value   $ 200
Expected Useful Life   1 year
Repustate Inc. | Acquired Technology    
Business Acquisition [Line Items]    
Fair Value   $ 1,600
Expected Useful Life   5 years
v3.24.1.u1
Business Combinations - Changes in Goodwill (Details) - Tagger Media
$ in Thousands
Aug. 02, 2023
USD ($)
Acquired Indefinite-Lived Intangible Assets [Line Items]  
Addition - acquisition $ (89)
Goodwill balance as of March 31, 2024 $ 112,405