0001286139-24-000031 | 10-K | XBRL Viewer

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Stockholders' Equity (Details) - USD ($) $ / shares in Units, $ in Millions	1 Months Ended		2 Months Ended	12 Months Ended
	Nov. 30, 2023	Sep. 30, 2023	Feb. 22, 2024	Dec. 31, 2023	Dec. 31, 2022	Oct. 31, 2023	Mar. 01, 2022
Equity, Class of Treasury Stock [Line Items]
Shares repurchased (in shares)		4,718,755		5,867,835	9,256,268
Shares repurchased, value		$ 45.1		$ 54.9	$ 95.1
Average price per share (in dollars per share)		$ 9.55		$ 9.35	$ 10.28
Excise tax liability				$ 0.2
2022 Stock Repurchase Program
Equity, Class of Treasury Stock [Line Items]
Stock repurchase program, amount authorized for repurchase							$ 150.0
2023 Stock Repurchase Program
Equity, Class of Treasury Stock [Line Items]
Stock repurchase program, amount authorized for repurchase						$ 100.0
Subsequent Event
Equity, Class of Treasury Stock [Line Items]
Shares repurchased (in shares)			897,385
Shares repurchased, value			$ 9.2
Common Stock \| Secondary Offering
Equity, Class of Treasury Stock [Line Items]
Shares issued (in shares)		16,100,000
Price per share (in dollars per share)		$ 10.00
Common Stock \| Underwritten Public Offering
Equity, Class of Treasury Stock [Line Items]
Shares issued (in shares)	15,099,993

Accumulated Other Comprehensive (Loss) Income (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2021
AOCI Attributable to Parent, Net of Tax [Roll Forward]
Beginning balance	$ 142,375	$ 197,551	$ (550,632)
Ending balance	168,834	142,375	197,551
Accumulated other comprehensive loss:
AOCI Attributable to Parent, Net of Tax [Roll Forward]
Beginning balance, Before Tax Amount	1,542	(1,747)	(17,441)
Change during period, Before Tax Amount	(1,230)	3,289	15,694
Ending balance, Before Tax Amount	312	1,542	(1,747)
Beginning balance, Tax Effect	(45)	(48)	3,614
Change during period, Tax Effect	(35)	3	(3,662)
Ending balance, Tax Effect	(80)	(45)	(48)
Beginning balance	1,497	(1,795)	(13,827)
Change during period, Net of Tax Amount	(1,265)	3,292	12,032
Ending balance	232	1,497	(1,795)
Foreign currency translation adjustments:
AOCI Attributable to Parent, Net of Tax [Roll Forward]
Beginning balance, Before Tax Amount	1,358	(2,078)	(3,014)
Change during period, Before Tax Amount	(1,370)	3,436	936
Ending balance, Before Tax Amount	(12)	1,358	(2,078)
Beginning balance, Tax Effect	0	0	0
Change during period, Tax Effect	0	0	0
Ending balance, Tax Effect	0	0	0
Beginning balance	1,358	(2,078)	(3,014)
Change during period, Net of Tax Amount	(1,370)	3,436	936
Ending balance	(12)	1,358	(2,078)
Available-for-sale debt securities:
AOCI Attributable to Parent, Net of Tax [Roll Forward]
Beginning balance, Before Tax Amount	184	331	281
Change during period, Before Tax Amount	140	(147)	50
Ending balance, Before Tax Amount	324	184	331
Beginning balance, Tax Effect	(45)	(48)	(36)
Change during period, Tax Effect	(35)	3	(12)
Ending balance, Tax Effect	(80)	(45)	(48)
Beginning balance	139	283	245
Change during period, Net of Tax Amount	105	(144)	38
Ending balance	$ 244	139	283
Cash flow hedges:
AOCI Attributable to Parent, Net of Tax [Roll Forward]
Beginning balance, Before Tax Amount		0	(14,708)
Change during period, Before Tax Amount			2,897
Ending balance, Before Tax Amount			0
Beginning balance, Tax Effect		0	3,650
Change during period, Tax Effect			(1,449)
Ending balance, Tax Effect			0
Beginning balance		$ 0	(11,058)
Change during period, Net of Tax Amount			1,448
Ending balance			0
Cash flow hedges: \| Interest rate cap
AOCI Attributable to Parent, Net of Tax [Roll Forward]
Reclassification to net loss, Before Tax			28
Reclassification to net loss, Tax Effect			(8)
Reclassification to net loss, Net of Tax			20
Cash flow hedges: \| Prior Hedge Effectiveness
AOCI Attributable to Parent, Net of Tax [Roll Forward]
Reclassification to net loss, Before Tax			3,076
Reclassification to net loss, Tax Effect			(781)
Reclassification to net loss, Net of Tax			2,295
Cash flow hedges: \| Interest Rate Swap
AOCI Attributable to Parent, Net of Tax [Roll Forward]
Reclassification to net loss, Before Tax			8,707
Reclassification to net loss, Tax Effect			(1,412)
Reclassification to net loss, Net of Tax			$ 7,295

Other Financial Statement Information - Schedule of Accrued Expenses and Other Current Liabilities (Details) - USD ($) $ in Thousands	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Other Financial Information [Abstract]
Accrued payroll and related expenses	$ 33,635	$ 27,822
Accrued vendor payables	11,223	15,531
Accrued advertising	0	1,071
Sales allowances	3,412	4,426	$ 4,862	$ 4,856
Accrued sales, use and business taxes	9,795	3,838
Other	3,613	4,685
Total accrued expenses and other current liabilities	$ 61,678	$ 57,373

Other Financial Statement Information

12 Months Ended

Dec. 31, 2023

Other Financial Information [Abstract]

Other Financial Statement Information

Accounts Receivable

Changes in the allowances consisted of the following (in thousands):


	Year Ended December 31,
	2023		2022		2021
Beginning balance	$	4,730	$	4,060	$	5,256
Add: amounts recognized as a reduction of revenue	8,220		8,193		6,610
Add (less): allowance for credit losses recognized in general and administrative expense	1,144		446		(279)
Less: write-offs, net of recoveries	(9,188)		(7,969)		(7,527)
Ending balance	$	4,906	$	4,730	$	4,060

The allowance recognized as a reduction of revenue primarily relates to our installment plan receivables for which we expect we will not be entitled to a portion of the transaction price based on our historical experience with similar transactions. The allowance recognized against general and administrative expense represents an allowance relating to receivables from third-party providers that are no longer considered collectible.

Prepaid Expenses and Other Current Assets

Prepaid expenses and other current assets consisted of the following (in thousands):


	As of December 31,
	2023		2022
Prepaid expenses	$	10,423	$	10,624
Deferred cost of revenue	1,678		1,915
Capitalized cloud computing development costs	1,085		1,407
Income tax receivable	35		760
Other current assets	1,938		1,993
Total prepaid expenses and other current assets	$	15,159	$	16,699

Accrued Expenses and Other Current Liabilities

Accrued expenses and other current liabilities consisted of the following (in thousands):


	As December 31,
	2023		2022
Accrued payroll and related expenses	$	33,635	$	27,822
Accrued vendor payables	11,223		15,531
Accrued advertising	—		1,071
Sales allowances	3,412		4,426
Accrued sales, use and business taxes	9,795		3,838
Other	3,613		4,685
Total accrued expenses and other current liabilities	$	61,678	$	57,373

Changes in sales allowances relating to charge-backs, sales credits and refunds consisted of the following (in thousands):


	Year Ended December 31,
	2023		2022		2021
Beginning balance	$	4,426	$	4,862	$	4,856
Add: increase in sales allowances	6,635		7,217		7,998
Less: utilization of reserves	(7,649)		(7,653)		(7,992)
Ending balance	$	3,412	$	4,426	$	4,862

Depreciation and Amortization

Depreciation and amortization expense of our property and equipment, including capitalized internal-use software, and intangible assets consisted of the following (in thousands):


	Year Ended December 31,
	2023		2022		2021
Cost of revenue	$	12,772	$	8,581	$	6,430
Sales and marketing	5,286		7,014		6,017
Technology and development	4,184		2,834		2,361
General and administrative	3,141		3,316		1,878
Total depreciation and amortization expense	$	25,383	$	21,745	$	16,686

Deferred Revenue

Deferred revenue as of December 31, 2023 and 2022 was $168.4 million and $165.1 million, respectively. Revenue recognized in 2023, 2022 and 2021 that was included in deferred revenue at the beginning of the year

was $163.4 million, $146.6 million and $127.6 million, respectively. We expect to recognize substantially all of the deferred revenue as of December 31, 2023 as revenue in 2024.

We have omitted disclosure on the transaction price allocated to remaining performance obligations and estimated timing of revenue recognition as our contracts with customers that have a duration of more than one year are immaterial.

Summary of Significant Accounting Policies - Schedule of Property and Equipment Useful Life (Details)	Dec. 31, 2023
Purchased and internally developed internal-use software
Property, Plant and Equipment [Line Items]
Useful life	3 years
Building and building improvements \| Minimum
Property, Plant and Equipment [Line Items]
Useful life	5 years
Building and building improvements \| Maximum
Property, Plant and Equipment [Line Items]
Useful life	30 years
Land improvements
Property, Plant and Equipment [Line Items]
Useful life	7 years
Furniture and office equipment
Property, Plant and Equipment [Line Items]
Useful life	5 years
Computer hardware
Property, Plant and Equipment [Line Items]
Useful life	3 years

Income Taxes - Schedule of Effective Income Tax Rate Reconciliation (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2021
Income Tax Disclosure [Abstract]
Provision for (benefit from) income taxes at statutory rate	$ 6,614	$ (10,012)	$ (25,120)
State income taxes, net of federal benefit	1,796	(1,424)	(2,309)
Rate differential on foreign earnings	(130)	(104)	(68)
Research and development credits	(4,894)	(1,346)	(887)
Change in valuation allowance	814	304	809
Stock-based compensation	4,538	2,021	(3,065)
Nondeductible stock-based compensation	6,053	10,012	18,267
Unrecognized tax benefits	2,498	975	703
Non-deductible expenses	350	630	287
Other	(98)	4	432
Provision for (benefit from) income taxes	$ 17,541	$ 1,060	$ (10,951)

Other Financial Statement Information - Schedule of Changes in the Allowance (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2021
Accounts Receivable, Allowance for Credit Loss [Roll Forward]
Beginning balance	$ 4,730	$ 4,060	$ 5,256
Less: write-offs, net of recoveries	(9,188)	(7,969)	(7,527)
Ending balance	4,906	4,730	4,060
Revenue
Accounts Receivable, Allowance for Credit Loss [Roll Forward]
Add (less): amounts recognized	8,220	8,193	6,610
Selling, General and Administrative Expenses
Accounts Receivable, Allowance for Credit Loss [Roll Forward]
Add (less): amounts recognized	$ 1,144	$ 446	$ (279)

Fair Value Measurements - Schedule of Assets and Liabilities that are Measured at Fair Value on a Recurring Basis (Details) - USD ($) $ in Thousands	Dec. 31, 2023	Dec. 31, 2022
Level 1
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale debt securities	$ 0	$ 0
Total assets	208,970	130,215
Contingent consideration		0
Total liabilities		0
Level 1 \| Money market funds
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Money market funds	208,970	130,215
Level 2
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale debt securities	0	0
Total assets	0	0
Contingent consideration		0
Total liabilities		0
Level 2 \| Money market funds
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Money market funds	0	0
Level 3
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale debt securities	1,159	995
Total assets	1,159	995
Contingent consideration		836
Total liabilities		836
Level 3 \| Money market funds
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Money market funds	$ 0	$ 0

Income Taxes - Schedule of Unrecognized Tax Benefits Roll Forward (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2021
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward]
Beginning balance	$ 8,920	$ 7,873	$ 7,231
Additions for tax positions related to the current year	2,181	999	887
Reductions for tax positions related to prior years			(245)
Additions for tax positions related to prior years	418	48
Ending balance	$ 11,519	$ 8,920	$ 7,873

Derivative Financial Instruments - Additional Information (Details) $ in Thousands	1 Months Ended			12 Months Ended
	Jul. 31, 2021 USD ($)	Jun. 30, 2021 USD ($)	Sep. 30, 2019 USD ($)	Dec. 31, 2021 USD ($)	Apr. 30, 2019 USD ($) derivativeInstrument
Derivative [Line Items]
Extinguishment of interest rate swaps and hybrid debt	$ 13,600
Interest expense on derivatives	$ 9,200			$ 9,240
Personal loan			$ 50,000
Interest Rate Swap
Derivative [Line Items]
Number of interest rate derivatives held \| derivativeInstrument					2
Fixed rate					2.30%
Derivative liabilities notional amount					$ 66,000
Interest Rate Swap \| Designated as Hedging Instrument
Derivative [Line Items]
Derivative liabilities notional amount		$ 394,200
Financial Guarantee
Derivative [Line Items]
Derivative term			3 years
Derivative liability			$ 25,000
Financial Guarantee \| Other Nonoperating Income (Expense)
Derivative [Line Items]
Gain (loss) from the cancellation of derivatives		$ 100

Net Income (Loss) Per Share Attributable to Common Stockholders

12 Months Ended

Dec. 31, 2023

Earnings Per Share [Abstract]

Net Income (Loss) Per Share Attributable to Common Stockholders

The following table shows the computation of basic and diluted net (loss) income per share attributable to common stockholders (in thousands, except per share amounts):


	Year Ended December 31,
	2023		2022		2021
Numerator:
Net income (loss)	$	13,953	$	(48,733)	$	(108,664)
Net income (loss) attributable to common stockholders—basic and diluted	$	13,953	$	(48,733)	$	(108,664)



Denominator:
Weighted-average common stock used in computing net (loss) income per share attributable to common stockholders—basic	190,466		195,829		161,424
Effect of potentially dilutive securities:
Options to purchase common stock	1,380		—		—
RSUs	2,558		—		—
Employee stock purchase plan	11		—		—
Weighted-average common stock used in computing net (loss) income per share attributable to common stockholders—diluted	194,415		195,829		161,424
Net (loss) income per share attributable to common stockholders—basic	$	0.07	$	(0.25)	$	(0.67)
Net (loss) income per share attributable to common stockholders—diluted	$	0.07	$	(0.25)	$	(0.67)

The following table presents the number of stock options, RSUs, and PSUs excluded from the calculation of diluted net income (loss) per share attributable to common stockholders because they are anti-dilutive (in thousands):


	As of December 31,
	2023	2022	2021
Options to purchase common stock	10,714	17,155	15,274
RSUs	7,426	8,879	3,627
Employee stock purchase plan	43	140	96
Total	18,183	26,174	18,997

Property and Equipment - Schedule of Property, Plant and Equipment (Details) - USD ($) $ in Thousands	Dec. 31, 2023	Dec. 31, 2022
Property, Plant and Equipment [Line Items]
Total cost of property and equipment	$ 103,645	$ 88,281
Less: accumulated depreciation and amortization	(55,413)	(57,458)
Property and equipment, net	48,232	30,823
Internal-use software
Property, Plant and Equipment [Line Items]
Total cost of property and equipment	91,424	67,371
Purchased software
Property, Plant and Equipment [Line Items]
Total cost of property and equipment	1,360	2,228
Furniture and office equipment
Property, Plant and Equipment [Line Items]
Total cost of property and equipment	1,797	2,518
Computer hardware
Property, Plant and Equipment [Line Items]
Total cost of property and equipment	7,588	14,074
Leasehold improvements
Property, Plant and Equipment [Line Items]
Total cost of property and equipment	1,476	1,985
Software development in-progress
Property, Plant and Equipment [Line Items]
Total cost of property and equipment	$ 0	$ 105

Long-term Debt (Details) - USD ($)		1 Months Ended	12 Months Ended
Long-term Debt (Details) - USD ($)	Jul. 02, 2021	Jul. 31, 2021	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2021	Nov. 30, 2018
Debt Instrument [Line Items]
Repayment of term loan			$ 0	$ 0	$ 524,300,000
Loss on debt extinguishment			0	0	$ 7,748,000
Maturity period	5 years
Letters of credit outstanding			0	0
Letter of Credit
Debt Instrument [Line Items]
Line of credit maximum borrowing capacity	$ 20,000,000
Swingline Loan
Debt Instrument [Line Items]
Line of credit maximum borrowing capacity	10,000,000
2018 Term Loan
Debt Instrument [Line Items]
Debt instrument face value						$ 535,000,000
Repayment of term loan	$ 521,600,000	$ 521,600,000
Loss on debt extinguishment		$ (7,700,000)
2018 Revolving Facility \| Revolving Credit Facility
Debt Instrument [Line Items]
Debt instrument face value						$ 40,000,000
2021 Revolving Facility
Debt Instrument [Line Items]
Total net first lien leverage ratio	4.50
Percent of total commitments not reimbursed	35.00%
Line of credit outstanding			$ 0	$ 0
2021 Revolving Facility \| Federal Funds Effective Rate
Debt Instrument [Line Items]
Effective interest rate	0.50%
2021 Revolving Facility \| Revolving Credit Facility
Debt Instrument [Line Items]
Line of credit maximum borrowing capacity	$ 150,000,000
Debt issuance costs	$ 800,000
One month LIBOR floor	1.00%
Rate added to one month LIBOR	1.00%
Basis spread on variable rate, initial reduction	0.25%
Basis spread on variable rate, further reduction	0.25%
Total net first lien leverage ratio, first reduction requirement	3.50
Total net first lien leverage ratio, second reduction requirement	2.50
Commitment fee	0.35%
Commitment fee reduction	0.10%
Total net first lien leverage ratio, maximum	3.50
2021 Revolving Facility \| Revolving Credit Facility \| Secured Overnight Financing Rate (SOFR)
Debt Instrument [Line Items]
Basis spread	0.10%

Income Taxes - Additional Information (Details) - USD ($) $ in Millions	Dec. 31, 2023	Dec. 31, 2022
Investments, Owned, Federal Income Tax Note [Line Items]
Unrecognized tax benefits that would impact effective tax rate	$ 11.5
Domestic Tax Authority
Investments, Owned, Federal Income Tax Note [Line Items]
Net operating loss carryforwards	17.2	$ 16.8
Tax credit carryforwards		7.1
State and Local Jurisdiction
Investments, Owned, Federal Income Tax Note [Line Items]
Net operating loss carryforwards	38.2	59.9
Tax credit carryforwards	12.6	10.8
Foreign Tax Authority
Investments, Owned, Federal Income Tax Note [Line Items]
Net operating loss carryforwards	$ 30.3	$ 33.6

Other Financial Statement Information - Schedule of Depreciation and Amortization Expense (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2021
Disclosure Details Of Depreciation And Amortization [Line Items]
Total depreciation and amortization expense	$ 25,383	$ 21,745	$ 16,686
Cost of revenue
Disclosure Details Of Depreciation And Amortization [Line Items]
Total depreciation and amortization expense	12,772	8,581	6,430
Sales and marketing
Disclosure Details Of Depreciation And Amortization [Line Items]
Total depreciation and amortization expense	5,286	7,014	6,017
Technology and development
Disclosure Details Of Depreciation And Amortization [Line Items]
Total depreciation and amortization expense	4,184	2,834	2,361
General and administrative
Disclosure Details Of Depreciation And Amortization [Line Items]
Total depreciation and amortization expense	$ 3,141	$ 3,316	$ 1,878

Audit Information	12 Months Ended
Audit Information	Dec. 31, 2023
Audit Information [Abstract]
Auditor Firm ID	238
Auditor Name	PricewaterhouseCoopers LLP
Auditor Location	Los Angeles, California

Leases - Schedule of Balance Sheet (Details) - USD ($) $ in Thousands	Dec. 31, 2023	Dec. 31, 2022	Jan. 01, 2022
Leases [Abstract]
Operating lease right-of-use assets	$ 8,518	$ 11,148	$ 5,700
Finance lease assets	27	62
Total leases	8,545	11,210
Current operating lease liability	2,052	2,317
Current finance lease liability	$ 26	$ 36
Finance Lease, Liability, Current, Statement of Financial Position [Extensible Enumeration]	Accrued expenses and other current liabilities	Accrued expenses and other current liabilities
Noncurrent operating lease liability	$ 6,966	$ 8,958
Noncurrent finance lease liability	$ 2	$ 28
Finance Lease, Liability, Noncurrent, Statement of Financial Position [Extensible Enumeration]	Other liabilities	Other liabilities
Present value of lease liabilities	$ 9,046	$ 11,339

Derivative Financial Instruments (Tables)

12 Months Ended

Dec. 31, 2023

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Schedule of Foreign Exchange Contracts, Statement of Financial Position

The impact from losses from our interest rate cap, interest rate swaps, and hybrid debt in our consolidated statements of operations were as follows (in thousands):


	Year Ended December 31,
	2021
Settlement of interest rate swaps	$	1,052
Amortization of prior hedge effectiveness	3,095
Fair value adjustment of interest rate swap	364
Amortization of interest rate cap premium	28
Interest expense on hybrid debt	368
Discontinuance of interest rate swaps and prior hedge effectiveness	9,240
Total, recorded in interest expense, net	$	14,147

Net Income (Loss) Per Share Attributable to Common Stockholders - Schedule of Earnings Per Share, Basic and Diluted (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	12 Months Ended
	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2021
Numerator:
Net income (loss)	$ 13,953	$ (48,733)	$ (108,664)
Net (loss) income attributable to common stockholders—basic	13,953	(48,733)	(108,664)
Net (loss) income attributable to common stockholders—diluted	$ 13,953	$ (48,733)	$ (108,664)
Denominator:
Weighted-average common stock used in computing net (loss) income per share attributable to common stockholders—basic (in shares)	190,466	195,829	161,424
Weighted-average common stock used in computing net (loss) income per share attributable to common stockholders—diluted (in shares)	194,415	195,829	161,424
Net (loss) income per attributable to common stockholders - basic (in dollars per share)	$ 0.07	$ (0.25)	$ (0.67)
Net (loss) income per attributable to common stockholders - diluted (in dollars per share)	$ 0.07	$ (0.25)	$ (0.67)
Options to purchase common stock
Denominator:
Effect of potential dilutive securities (in shares)	1,380	0	0
RSUs
Denominator:
Effect of potential dilutive securities (in shares)	2,558	0	0
Employee stock purchase plan
Denominator:
Effect of potential dilutive securities (in shares)	11	0	0

Assets Held for Sale (Details) - USD ($) $ in Thousands	Dec. 31, 2023	Dec. 31, 2022
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Total assets held for sale	$ 22,722	$ 22,722
Disposal Group, Held-for-sale, Not Discontinued Operations \| Austin, Texas Operational Headquarters
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Total assets held for sale	22,722
Disposal Group, Held-for-sale, Not Discontinued Operations \| Austin, Texas Operational Headquarters \| Land
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Total assets held for sale	6,400
Disposal Group, Held-for-sale, Not Discontinued Operations \| Austin, Texas Operational Headquarters \| Building and building improvements
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Total assets held for sale	$ 16,322

Property and Equipment (Tables)

12 Months Ended

Dec. 31, 2023

Property, Plant and Equipment [Abstract]

Schedule of Property, Plant and Equipment

Depreciation is calculated using the straight-line method over the estimated useful lives of the related assets as follows:


			Useful Life (Years)
Purchased and internally developed internal-use software			3
Building and building improvements			5–30
Land improvements			7
Furniture and office equipment			5
Computer hardware			3
Land			Indefinite
Leasehold improvements			Shorter of lease term or useful life

Property and equipment, net, consisted of the following (in thousands):


	As of December 31,
	2023		2022


Internal-use software	$	91,424	$	67,371
Purchased software	1,360		2,228
Furniture and office equipment	1,797		2,518
Computer hardware	7,588		14,074
Leasehold improvements	1,476		1,985
Software development in-progress	—		105
Total cost of property and equipment	103,645		88,281
Less: accumulated depreciation and amortization	(55,413)		(57,458)
Property and equipment, net	$	48,232	$	30,823

Summary of Significant Accounting Policies - Schedule of Revenue Recognition (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2021
Disaggregation of Revenue [Line Items]
Total revenue	$ 660,727	$ 619,979	$ 575,080
Transaction
Disaggregation of Revenue [Line Items]
Total revenue	247,780	260,781	281,644
Subscription
Disaggregation of Revenue [Line Items]
Total revenue	$ 412,947	$ 359,198	$ 293,436

- Definition

Line items represent financial concepts included in a table. These concepts are used to disclose reportable information associated with domain members defined in one or many axes to the table.

+ References + Details

- Definition

Amount, excluding tax collected from customer, of revenue from satisfaction of performance obligation by transferring promised good or service to customer. Tax collected from customer is tax assessed by governmental authority that is both imposed on and concurrent with specific revenue-producing transaction, including, but not limited to, sales, use, value added and excise.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Topic 924
-SubTopic 10
-Name Accounting Standards Codification
-Section S99
-Paragraph 1
-Subparagraph (SAB Topic 11.L)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147479941/924-10-S99-1

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Topic 606
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 5
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147479806/606-10-50-5

Reference 3: http://www.xbrl.org/2003/role/disclosureRef
-Topic 280
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 30
-Subparagraph (a)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482810/280-10-50-30

Reference 4: http://www.xbrl.org/2003/role/disclosureRef
-Topic 280
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 42
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482810/280-10-50-42

Reference 5: http://www.xbrl.org/2003/role/disclosureRef
-Topic 280
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 22
-Subparagraph (b)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482810/280-10-50-22

Reference 6: http://www.xbrl.org/2003/role/disclosureRef
-Topic 280
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-Name Accounting Standards Codification
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-Paragraph 32
-Subparagraph (b)
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-URI https://asc.fasb.org//1943274/2147482810/280-10-50-32

Reference 7: http://www.xbrl.org/2003/role/disclosureRef
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-Section 50
-Paragraph 40
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-URI https://asc.fasb.org//1943274/2147482810/280-10-50-40

Reference 8: http://www.xbrl.org/2003/role/disclosureRef
-Topic 280
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-Name Accounting Standards Codification
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-Paragraph 22
-Subparagraph (a)
-Publisher FASB
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Reference 9: http://www.xbrl.org/2003/role/disclosureRef
-Topic 280
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Reference 10: http://www.xbrl.org/2003/role/disclosureRef
-Topic 280
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-Name Accounting Standards Codification
-Section 50
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Reference 11: http://www.xbrl.org/2003/role/disclosureRef
-Topic 606
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 4
-Subparagraph (a)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147479806/606-10-50-4

+ Details

Consolidated Statements of Redeemable Convertible Preferred Stock and Stockholders’ Equity - USD ($) $ in Thousands	Total	IPO	Private Placement	Series A Redeemable Convertible Preferred Stock	Common Stock	Common Stock IPO	Common Stock Private Placement	Additional Paid-In Capital	Additional Paid-In Capital IPO	Additional Paid-In Capital Private Placement	Accumulated Deficit	Accumulated Other Comprehensive (loss) Income
Beginning balance, preferred shares (in shares) at Dec. 31, 2020				23,081,000
Beginning balance at Dec. 31, 2020	$ (550,632)			$ 70,906	$ 126			$ 102,417			$ (639,348)	$ (13,827)
Beginning balance, common shares (in shares) at Dec. 31, 2020					125,037,000
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Issuance of common stock upon exercise of stock options and ESPP (in shares)					831,000
Issuance of common stock upon exercise of stock options and ESPP	534							534
Issuance of common stock upon vesting of restricted stock awards/units and ESPP (in shares)					938,000
Issuance of common stock upon vesting of restricted stock awards/units and ESPP	1,245				$ 1			1,244
Shares surrendered for settlement of minimum statutory tax withholdings (in shares)					(87,000)
Shares surrendered for settlement of minimum statutory tax withholdings	(2,342)							(2,342)
Stock-based compensation	113,270							113,270
Conversion of redeemable convertible preferred stock to common stock in connection with initial public offering (in shares)				(23,081,000)	46,162,000
Conversion of redeemable convertible preferred stock to common stock in connection with initial public offering	70,906			$ (70,906)	$ 46			70,860
Issuance of common stock (in shares)						21,989,000	3,214,000
Issuance of common stock		$ 581,833	$ 85,050			$ 22	$ 3		$ 581,811	$ 85,047
Stock issuance costs	(5,636)							(5,636)
Net issuance and repayments of full recourse notes receivable	43							43
Special dividends	(88)							(88)
Other comprehensive income (loss)	12,032											12,032
Net income (loss)	(108,664)										(108,664)
Ending balance, preferred shares (in shares) at Dec. 31, 2021				0
Ending balance at Dec. 31, 2021	197,551			$ 0	$ 198			947,160			(748,012)	(1,795)
Ending balance, common shares (in shares) at Dec. 31, 2021					198,084,000
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Issuance of common stock upon exercise of stock options and ESPP (in shares)					540,000
Issuance of common stock upon exercise of stock options and ESPP	2,436							2,436
Issuance of common stock upon vesting of restricted stock awards/units and ESPP (in shares)					1,458,000
Issuance of common stock upon vesting of restricted stock awards/units and ESPP	1				$ 1
Shares surrendered for settlement of minimum statutory tax withholdings (in shares)					(4,000)
Shares surrendered for settlement of minimum statutory tax withholdings	(41)							(41)
Stock-based compensation	82,995							82,995
Repurchase and retirement of common stock (in shares)					(9,256,000)
Repurchase and retirement of common stock	(95,126)				$ (9)						(95,117)
Other comprehensive income (loss)	3,292											3,292
Net income (loss)	$ (48,733)										(48,733)
Ending balance, preferred shares (in shares) at Dec. 31, 2022	0			0
Ending balance at Dec. 31, 2022	$ 142,375			$ 0	$ 190			1,032,550			(891,862)	1,497
Ending balance, common shares (in shares) at Dec. 31, 2022	190,822,000				190,822,000
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Issuance of common stock upon exercise of stock options and ESPP (in shares)	743,000				976,000
Issuance of common stock upon exercise of stock options and ESPP	$ 8,445				$ 1			8,444
Issuance of common stock upon vesting of restricted stock awards/units and ESPP (in shares)					3,438,000
Issuance of common stock upon vesting of restricted stock awards/units and ESPP	1				$ 3			(3)
Shares surrendered for settlement of minimum statutory tax withholdings (in shares)					(829,000)
Shares surrendered for settlement of minimum statutory tax withholdings	(9,587)							(9,587)
Stock-based compensation	70,071							70,071
Repurchase and retirement of common stock (in shares)					(5,868,000)
Repurchase and retirement of common stock	(54,873)				$ (6)						(54,867)
Stock repurchase costs	(100)										(100)
Stock repurchase excise tax	(185)										(185)
Other comprehensive income (loss)	(1,265)											(1,265)
Net income (loss)	$ 13,953										13,953
Ending balance, preferred shares (in shares) at Dec. 31, 2023	0			0
Ending balance at Dec. 31, 2023	$ 168,834			$ 0	$ 189			$ 1,101,474			$ (933,061)	$ 232
Ending balance, common shares (in shares) at Dec. 31, 2023	188,538,000				188,538,000

Description of the Business (Details) $ / shares in Units, $ in Thousands		1 Months Ended	12 Months Ended
	Jul. 02, 2021 USD ($) $ / shares shares	Jul. 31, 2021 USD ($)	Dec. 31, 2023 USD ($) class $ / shares	Dec. 31, 2022 USD ($) $ / shares	Dec. 31, 2021 USD ($) shares
Subsidiary, Sale of Stock [Line Items]
Common stock par value (in dollars per share) \| $ / shares			$ 0.001	$ 0.001
Net proceeds	$ 666,900
Proceeds from private placement, net of underwriting discounts and commissions	5,600		$ 0	$ 0	$ 5,636
Repayment of term loan			$ 0	$ 0	524,300
Redeemable convertible preferred stock with a carrying value					$ 70,906
Number of classes of authorized and outstanding common stock \| class			1
2018 Term Loan
Subsidiary, Sale of Stock [Line Items]
Repayment of term loan	$ 521,600	$ 521,600
Series A Redeemable Convertible Preferred Stock
Subsidiary, Sale of Stock [Line Items]
Conversion of redeemable convertible preferred stock to common stock in connection with initial public offering (in shares) \| shares	23,081,080				(23,081,000)
Redeemable convertible preferred stock with a carrying value	$ 70,900				$ (70,906)
Common Stock
Subsidiary, Sale of Stock [Line Items]
Conversion of redeemable convertible preferred stock to common stock in connection with initial public offering (in shares) \| shares	46,162,160				46,162,000
Redeemable convertible preferred stock with a carrying value					$ 46
IPO
Subsidiary, Sale of Stock [Line Items]
Shares issued (in shares) \| shares	19,121,000
Common stock par value (in dollars per share) \| $ / shares	$ 0.001
Price per share (in dollars per share) \| $ / shares	$ 28.00
Net proceeds	$ 505,900
Underwriters Option
Subsidiary, Sale of Stock [Line Items]
Shares issued (in shares) \| shares	2,868,150
Net proceeds	$ 75,900
Private Placement
Subsidiary, Sale of Stock [Line Items]
Shares issued (in shares) \| shares	3,214,285
Net proceeds	$ 85,000

Restructuring	12 Months Ended
Restructuring	Dec. 31, 2023
Restructuring and Related Activities [Abstract]
Restructuring	Restructuring From time to time, we initiate cost reduction activities to integrate acquired businesses, to align our workforce with strategic business activities, or to improve efficiencies in our operations. In 2023 and 2022, we incurred $3.7 million and $1.9 million, respectively, in severance and related termination benefits costs related to a reduction in headcount in our U.S. workforce. In 2023, we also incurred $1.0 million in severance and related termination benefits costs related to the reduction of our U.K. headcount. The 2023 reduction in the U.S. and U.K. headcount was substantially complete by December 31, 2023. Restructuring expenses include salary and benefits for the impacted employees and are included in general and administrative expenses in the accompanying consolidated statements of operations.

Consolidated Statements of Cash Flows - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2021
Cash flows from operating activities
Net income (loss)	$ 13,953	$ (48,733)	$ (108,664)
Adjustments to reconcile net income (loss) to net cash provided by operating activities:
Depreciation and amortization	25,383	21,745	16,686
Amortization of debt issuance costs	227	227	1,392
Amortization of prior hedge effectiveness	0	0	3,095
Amortization of right-of-use assets	2,692	2,049	0
Stock-based compensation	66,015	80,469	112,596
Impairment of long-lived assets	0	248	924
Impairment of other equity security	0	3,000	0
Loss on debt extinguishment	0	0	7,955
Discontinuance of interest rate swaps and write-off of prior hedge effectiveness	0	0	8,688
Deferred income taxes	4,712	(793)	(11,595)
Change in fair value of contingent consideration	(836)	(150)	0
Change in fair value of financial guarantee	0	0	(150)
Change in fair value of derivative instruments	0	0	392
Change in fair value of other equity security	0	0	(1,812)
Unrealized foreign exchange (gain) loss	(1,387)	3,558	943
Other	(39)	168	4
Changes in operating assets and liabilities, net of effects of business combinations, asset acquisition and disposal of business:
Accounts receivable	1,441	(2,505)	(1,511)
Prepaid expenses and other current assets	1,557	(523)	(4,965)
Other assets	435	179	(3,648)
Accounts payable	5,025	(6,609)	2,360
Accrued expenses and other liabilities	4,119	6,535	13,781
Operating lease liabilities	(2,319)	(2,135)	0
Income tax payable	(4)	28	(185)
Deferred revenue	3,334	17,079	17,866
Net cash provided by operating activities	124,308	73,837	54,152
Cash flows from investing activities
Acquisitions, net of cash acquired	0	(2,532)	(61,523)
Asset acquisition, net of cash acquired	0	(6,299)	0
Proceeds from acquisition working capital adjustment	0	307	0
Purchase of property and equipment	(31,593)	(22,098)	(11,740)
Payment upon extinguishment of interest rate swaps	0	0	(3,283)
Purchase of other equity security	0	0	(1,127)
Other	38	0	0
Net cash used in investing activities	(31,555)	(30,622)	(77,673)
Cash flows from financing activities
Repayment of finance and capital lease obligations	(35)	(14)	(31)
Payment of debt issuance costs	0	0	(767)
Repayment of 2018 Term Loan	0	0	(524,300)
Repayment of hybrid debt	0	0	(1,332)
Payment upon extinguishment of hybrid debt	0	0	(9,774)
Payment of contingent consideration	0	(600)	(1,049)
Repurchase and retirement of common stock	(54,873)	(95,126)	0
Payment of stock repurchase costs	(100)	0	0
Payment of special dividends	0	0	(112)
Proceeds from issuance of common stock in initial public offering, net of underwriting discounts and commissions	0	0	581,833
Proceeds from private placement, net of underwriting discounts and commissions	0	0	85,050
Payment of stock issuance costs	0	0	(5,636)
Shares surrendered for settlement of minimum statutory tax withholdings	(9,587)	(41)	(2,342)
Proceeds from issuance of stock under employee stock plans	8,445	2,438	1,819
Net cash (used in) provided by financing activities	(56,150)	(93,343)	123,359
Effect of exchange rate changes on cash, cash equivalents and restricted cash equivalent	34	(87)	(11)
Net increase (decrease) in cash, cash equivalents and restricted cash equivalent	36,637	(50,215)	99,827
Cash and cash equivalents and restricted cash equivalent, at beginning of the period	189,082	239,297	139,470
Cash and cash equivalents, at end of the period	225,719	189,082	239,297
Supplemental cash flow data
Interest	0	0	12,284
Income taxes	6,598	741	1,459
Non-cash operating, investing, and financing activities:
Right of use assets obtained in exchange for new operating lease liabilities	63	7,528	0
Capitalized stock-based compensation	4,056	2,526	674
Purchase of property and equipment included in accounts payable and accrued expenses and other current liabilities	2,577	646	676
Conversion of Series A redeemable convertible preferred stock into common stock in connection with initial public offering	0	0	70,906
Change in fair value of hedged interest rate swaps and interest rate cap	0	0	(5,817)
Accrued stock repurchase excise tax	$ 185	$ 0	$ 0

Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands	Dec. 31, 2023	Dec. 31, 2022
Statement of Financial Position [Abstract]
Allowances	$ 4,906	$ 4,730
Amortized cost	$ 836	$ 812
Preferred stock par value (in dollars per share)	$ 0.001	$ 0.001
Preferred stock shares authorized (in shares)	100,000,000	100,000,000
Preferred stock shares issued (in shares)	0	0
Preferred stock shares outstanding (in shares)	0	0
Common stock par value (in dollars per share)	$ 0.001	$ 0.001
Common stock shares authorized (in shares)	1,000,000,000	1,000,000,000
Common stock shares issued (in shares)	188,538,000	190,822,000
Common stock shares outstanding (in shares)	188,538,000	190,822,000

Stock-Based Compensation - Additional Information for Modification of Stock-Based Compensation Awards (Details) - USD ($) $ / shares in Units, $ in Thousands		6 Months Ended	12 Months Ended
	Jun. 30, 2021	Dec. 31, 2021	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2021	Jun. 21, 2021
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Total stock-based compensation expense			$ 66,015	$ 80,469	$ 112,832
Options to purchase common stock
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting period			4 years
Total stock-based compensation expense			$ 22,000	40,100	$ 73,600
RSUs
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting period					4 years
Total stock-based compensation expense			$ 47,300	41,400	$ 38,600
2000 and 2019 Performance Options, Performance RSUs and LERSUs \| Median
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Par value (in dollars per share)						$ 25.50
One Executive Officer \| Options to purchase common stock \| 2019 Performance Options
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Shares that were modified for vesting conditions (in shares)			3,627,936
New fair value			$ 11,400
One Executive Officer \| Options to purchase common stock \| Service Based Vesting \| 2019 Performance Options
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Total stock-based compensation expense	$ 6,600	$ 6,700	900	5,000
Modified unrecognized compensation expense			0
Executive Officer \| Options to purchase common stock
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Total stock-based compensation expense			$ 2,000	4,500	3,200
Terminated Employees \| Options to purchase common stock \| Modified Vesting Conditions
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Total stock-based compensation expense					$ 1,400
Shares that were modified for vesting conditions, outstanding (in shares)		63,235			63,235
Performance Shares \| Executive Officers And Employees \| Options to purchase common stock
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Shares that were modified for vesting conditions (in shares)			4,477,218
Performance Shares \| Executive Officers And Employees \| Options to purchase common stock \| Service Based Vesting
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
New fair value			$ 76,600
Modified unrecognized compensation expense			$ 900
Modified unrecognized compensation expense period			8 months 12 days
Performance Shares \| Executive Officers And Employees \| Options to purchase common stock \| Service Based Vesting \| Modified Vesting Conditions
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Total stock-based compensation expense	23,300	$ 24,100	$ 5,900	19,900
Performance Shares \| Employees \| Options to purchase common stock
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting percentage that was modified			25.00%
Performance Shares \| Employees \| RSUs
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Shares that were modified for vesting conditions, outstanding (in shares)			111,902
Vesting percentage that was modified, RSUs			25.00%
Performance Shares \| Employees \| RSUs \| Service Vesting Condition
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
New fair value			$ 2,900
Modified unrecognized compensation expense, RSUs			$ 100
Modified unrecognized compensation expense period, RSUs			9 months 18 days
Performance Shares \| Employees \| RSUs \| Modified Vesting Conditions \| Service Vesting Condition
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Total stock-based compensation expense	200	1,200	$ 300	600
Liquidity Event Restricted Stock Units \| Executive Officer \| RSUs \| LERSUs
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Modified unrecognized compensation expense			$ 1,200
Modified unrecognized compensation expense period			10 months 24 days
Modified vesting conditions of shares outstanding (in shares)			1,725,942
New fair value of units due to remeasurement			$ 43,300
Accelerated compensation expense recognized	$ 7,400	$ 15,800	$ 5,000	$ 13,000
Time Based Options \| Executive Officer \| Options to purchase common stock
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Shares that were modified for vesting conditions, outstanding (in shares)			1,706,888

Related Party Transactions	12 Months Ended
Related Party Transactions	Dec. 31, 2023
Related Party Transactions [Abstract]
Related Party Transactions	Related Party TransactionsIn addition to related party transactions disclosed in Note 14, in 2021, we incurred software and software maintenance fees of $0.9 million, from two software vendors controlled by our then-largest stockholder.

- Definition

The entire disclosure for related party transactions. Examples of related party transactions include transactions between (a) a parent company and its subsidiary; (b) subsidiaries of a common parent; (c) and entity and its principal owners; and (d) affiliates.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Topic 946
-SubTopic 20
-Name Accounting Standards Codification
-Section 50
-Paragraph 2
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147480990/946-20-50-2

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Topic 946
-SubTopic 20
-Name Accounting Standards Codification
-Section 50
-Paragraph 5
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147480990/946-20-50-5

Reference 3: http://www.xbrl.org/2003/role/disclosureRef
-Topic 946
-SubTopic 20
-Name Accounting Standards Codification
-Section 50
-Paragraph 6
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147480990/946-20-50-6

Reference 4: http://www.xbrl.org/2003/role/disclosureRef
-Topic 946
-SubTopic 235
-Name Accounting Standards Codification
-Section 50
-Paragraph 2
-Subparagraph (c)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481062/946-235-50-2

Reference 5: http://www.xbrl.org/2003/role/disclosureRef
-Topic 946
-SubTopic 235
-Name Accounting Standards Codification
-Section 50
-Paragraph 2
-Subparagraph (e)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481062/946-235-50-2

Reference 6: http://www.xbrl.org/2003/role/disclosureRef
-Topic 850
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 1
-Subparagraph (d)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147483326/850-10-50-1

Reference 7: http://www.xbrl.org/2003/role/disclosureRef
-Topic 946
-SubTopic 220
-Name Accounting Standards Codification
-Section S99
-Paragraph 1
-Subparagraph (SX 210.6-07(2)(g)(3))
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147483575/946-220-S99-1

Reference 8: http://www.xbrl.org/2003/role/disclosureRef
-Topic 946
-SubTopic 220
-Name Accounting Standards Codification
-Section S99
-Paragraph 1
-Subparagraph (SX 210.6-07(2)(c))
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147483575/946-220-S99-1

Reference 9: http://www.xbrl.org/2003/role/disclosureRef
-Topic 946
-SubTopic 220
-Name Accounting Standards Codification
-Section S99
-Paragraph 1
-Subparagraph (SX 210.6-07(2)(e))
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147483575/946-220-S99-1

Reference 10: http://www.xbrl.org/2003/role/disclosureRef
-Topic 850
-Name Accounting Standards Codification
-Publisher FASB
-URI https://asc.fasb.org//850/tableOfContent

Reference 11: http://www.xbrl.org/2003/role/disclosureRef
-Topic 850
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 6
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147483326/850-10-50-6

Reference 12: http://www.xbrl.org/2003/role/disclosureRef
-Topic 850
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 1
-Subparagraph (a)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147483326/850-10-50-1

Reference 13: http://www.xbrl.org/2003/role/disclosureRef
-Topic 850
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 1
-Subparagraph (b)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147483326/850-10-50-1

+ Details

Description of the Business	12 Months Ended
Description of the Business	Dec. 31, 2023
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Description of the Business	Description of the Business LegalZoom.com, Inc., was initially formed as a California corporation in 1999 and reincorporated as a Delaware corporation in 2007. LegalZoom.com, Inc., and its wholly owned subsidiaries, are referred to herein as the “Company”, “we,” “us,” or “our,”. We are a provider of services that meet the legal needs of small businesses and consumers. Our position at business inception allows us to become a trusted business advisor, supporting the evolving needs of a new business across its lifecycle, and we have expanded our platform to include professional expertise and other products, both legal and non-legal, to better meet the needs of small businesses. Along with business formation, our offerings include ongoing compliance and tax advice and filings, business licenses, accounting, virtual mailbox and e-signature solutions, trademark filings, and estate plans. Additionally, we have insights into our customers and leverage our offerings as a channel to introduce small businesses to leading brands in our partner ecosystem, solving even more of their business needs. Initial Public Offering The registration statement related to our initial public offering, or IPO, was declared effective on June 29, 2021, and our common stock began trading on the Nasdaq Global Select Market on June 30, 2021. On July 2, 2021, we completed our IPO for the sale of 19,121,000 shares of our common stock, $0.001 par value per share at an offering price of $28.00 per share, for proceeds of $505.9 million, net of underwriting discounts and commissions. In addition, we sold 2,868,150 shares of our common stock for net proceeds of $75.9 million pursuant to the full exercise of the underwriter’s option to purchase additional shares in connection with the IPO. In addition, on July 2, 2021, we sold 3,214,285 shares of our common stock in a private placement with an existing related party stockholder for proceeds of $85.0 million, net of underwriting discounts and commissions. We raised aggregate proceeds of $666.9 million from our IPO and private placement after deducting underwriting discounts and commissions. We incurred stock issuance costs of $5.6 million. Proceeds raised from our IPO were used to repay the full outstanding balance of $521.6 million on our prior term loan. Upon the completion of our IPO, 23,081,080 outstanding shares of redeemable convertible preferred stock with a carrying value of $70.9 million converted into 46,162,160 shares of common stock. Following the completion of the IPO, we have one class of authorized and outstanding common stock.

Leases - Schedule of Future Minimum Payments, 842 (Details) - USD ($) $ in Thousands	Dec. 31, 2023	Dec. 31, 2022	Jan. 01, 2022
Operating leases
2024	$ 2,392
2025	1,828
2026	1,744
2027	1,677
2028	1,312
Thereafter	1,151
Total minimum lease payments	10,104
Less: Effects of discounting	1,086
Total lease liabilities	9,018		$ 5,900
Less: current portion	2,052	$ 2,317
Long-term lease liabilities	$ 6,966	$ 8,958
Weighted-average remaining lease term	5 years	5 years 7 months 6 days
Weighted-average incremental borrowing rate	4.51%	4.39%
Finance leases
2024	$ 27
2025	2
2026	0
2027	0
2028	0
Thereafter	0
Total minimum lease payments	29
Less: Effects of discounting	1
Present value of lease liabilities	28
Less: current portion	26	$ 36
Long-term lease liabilities	$ 2	$ 28
Weighted-average remaining lease term	1 year 1 month 6 days	1 year 10 months 24 days
Weighted-average incremental borrowing rate	5.50%	5.50%
Total leases liabilities
2024	$ 2,419
2025	1,830
2026	1,744
2027	1,677
2028	1,312
Thereafter	1,151
Total minimum lease payments	10,133
Less: Effects of discounting	1,087
Present value of lease liabilities	9,046	$ 11,339
Less: current portion	2,078
Long-term lease liabilities	$ 6,968

Property and Equipment

12 Months Ended

Dec. 31, 2023

Property, Plant and Equipment [Abstract]

Property and Equipment

Property and equipment, net, consisted of the following (in thousands):


	As of December 31,
	2023		2022


Internal-use software	$	91,424	$	67,371
Purchased software	1,360		2,228
Furniture and office equipment	1,797		2,518
Computer hardware	7,588		14,074
Leasehold improvements	1,476		1,985
Software development in-progress	—		105
Total cost of property and equipment	103,645		88,281
Less: accumulated depreciation and amortization	(55,413)		(57,458)
Property and equipment, net	$	48,232	$	30,823

Depreciation and amortization expense related to property and equipment was $20.2 million, $18.2 million and $15.7 million for 2023, 2022 and 2021, respectively.

At December 31, 2023 and 2022 accumulated amortization in connection with internal-use software costs was $47.6 million and $41.0 million, respectively. In 2023, 2022 and 2021, we recorded amortization expense of $17.6 million, $14.6 million and $11.6 million, respectively, in connection with these costs. Software development in-progress consists primarily of internal-use software projects, which when placed in service, will provide enhancements and improvements to the operational and functional capabilities to our online platforms and our customer-facing website. In 2023, 2022 and 2021 we capitalized internal-use software development costs of $35.0 million, $21.4 million and $9.9 million respectively. In 2023 and 2022, no software development costs were impaired. In 2021, we impaired $0.9 million of capitalized software development costs related primarily to internal-use software projects that no longer met our business requirements or were no longer expected to be placed in service.

401(k) Savings Plan (Details) - USD ($) $ in Millions	12 Months Ended
401(k) Savings Plan (Details) - USD ($) $ in Millions	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2021
Retirement Benefits [Abstract]
Plan cost	$ 4.0	$ 3.7	$ 2.3

401(k) Savings Plan	12 Months Ended
401(k) Savings Plan	Dec. 31, 2023
Retirement Benefits [Abstract]
401(k) Savings Plan	401(k) Savings Plan We have a defined contribution savings plan under Section 401(k) of the Internal Revenue Code. This plan covers substantially all employees who meet minimum age and service requirements and allows participants to defer a portion of their annual compensation on a pre-tax basis. Under the 401(k) plan, matching contributions are based upon the amount of the employees’ contributions subject to certain limitations. We contributed $4.0 million, $3.7 million, and $2.3 million to the 401(k) plan in 2023, 2022, and 2021, respectively.

Stock-based Compensation - Schedule of Stock Options Activity (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	12 Months Ended
	Dec. 31, 2023	Dec. 31, 2022
Number of Options
Beginning Balance (in shares)	17,155
Options granted (in shares)	4,181
Exercised (in shares)	(743)
Cancelled (in shares)	(19)
Forfeited (in shares)	(88)
Ending Balance (in shares)	20,486	17,155
Vested and expected to vest at end of period (in shares)	20,486
Exercisable at end of period (in shares)	14,021
Weighted- Average Exercise Price
Beginning Balance (in dollars per share)	$ 11.13
Granted (in dollars per share)	8.54
Exercised (in dollars per share)	8.20
Cancelled (in dollars per share)	9.77
Forfeited (in dollars per share)	9.44
Ending Balance (in dollars per share)	10.69	$ 11.13
Vested and expected to vest at end of period (in dollars per share)	10.69
Exercisable at end of period (in dollars per share)	$ 10.53
Weighted- Average Remaining Contractual Life (in Years)	6 years 10 months 24 days	7 years 1 month 6 days
Vested and expected to vest at end of period, term	6 years 10 months 24 days
Exercisable at end of period, term	6 years 1 month 6 days
Aggregate Intrinsic Value	$ 34,571	$ 3,698
Vested and expected to vest at end of period	34,571
Exercisable at ending period	$ 22,332

Acquisitions (Tables)

12 Months Ended

Dec. 31, 2023

Business Combination and Asset Acquisition [Abstract]

Schedule of Business Acquisitions, by Acquisition


	Amount		Estimated useful life
	(in thousands)
Goodwill	$	48,617	—
Customer relationships	10,603		6 years
Developed technology	5,418		5 years
Trade names	179		26 months
Property and equipment	267		3-5 years
Deferred tax liability	(3,087)		—
Other liabilities	(787)		—
Total purchase consideration	$	61,210

Stock-based Compensation - Schedule of Restricted Stock Unit Activity (Details) - RSUs shares in Thousands	12 Months Ended
	Dec. 31, 2023 $ / shares shares
Number of Units
Unvested at beginning of period (in shares) \| shares	8,879
Granted (in shares) \| shares	9,974
Cancelled/forfeited (in shares) \| shares	(1,405)
Vested (in shares) \| shares	(3,441)
Unvested at ending of period (in shares) \| shares	14,007
Weighted- Average Grant- Date Fair Value
Unvested at beginning of period (in dollars per share) \| $ / shares	$ 14.76
Granted (in dollars per share) \| $ / shares	8.87
Cancelled/forfeited (in dollars per share) \| $ / shares	10.72
Vested (in dollars per share) \| $ / shares	15.33
Unvested at ending of period (in dollars per share) \| $ / shares	$ 10.83

Intangible Assets, net

12 Months Ended

Dec. 31, 2023

Goodwill and Intangible Assets Disclosure [Abstract]

Intangible Assets, net

Intangible assets, net, consisted of the following (in thousands):


	As of December 31, 2023
	Remaining Weighted average useful life (in years)	Gross Carrying Amount		Accumulated Amortization		Net Carrying Amount
Customer relationships	3.8	$	12,088	$	5,314	$	6,774
Developed technology	2.2	14,281		7,412		6,869
Trade names	1.0	358		339		19
Assembled workforce	1.8	$	125	$	52	73
Total intangible assets		$	26,852	$	13,117	$	13,735


	As of December 31, 2022
	Remaining Weighted average useful life (in years)	Gross Carrying Amount		Accumulated Amortization		Net Carrying Amount
Customer relationships	4.8	$	17,841	$	9,300	$	8,541
Developed technology	3.2	16,813		6,689		10,124
Trade names	1.3	503		383		120
Assembled workforce	2.8	125		10		115
Total intangible assets		$	35,282	$	16,382	$	18,900

As discussed in Note 5, we acquired Revv in October 2022, UA Services in August 2022 and Earth Class Mail in November 2021. In 2023, 2022 and 2021, we recorded amortization expense of $5.2 million, $3.5 million and $1.0 million, respectively.

At December 31, 2023, estimated future intangible assets amortization expense was as follows (in thousands):


For Years Ending December 31,
2024	$	5,082
2025	4,510
2026	2,670
2027	1,473

Total future amortization expense	$	13,735

Income Taxes

12 Months Ended

Dec. 31, 2023

Income Tax Disclosure [Abstract]

Income Taxes

The following are the domestic and foreign components of our income (loss) before income taxes (in thousands):


	Year Ended December 31,
	2023		2022		2021
Domestic	$	34,518	$	(49,383)	$	(119,195)
Foreign	(3,024)		1,710		(420)
Total income (loss) before income taxes	$	31,494	$	(47,673)	$	(119,615)

The details for the provision for (benefit from) for income taxes by jurisdiction are as follows (in thousands):


	Year Ended December 31,
	2023		2022		2021
Current
Federal	$	8,984	$	647	$	(194)
State	3,621		1,143		760
Foreign	224		63		78
Total current provision	12,829		1,853		644
Deferred
Federal	5,481		1,142		(9,605)
State	(769)		(1,935)		(1,990)

Total deferred provision	4,712		(793)		(11,595)
Total provision for (benefit from) income tax	$	17,541	$	1,060	$	(10,951)

The provision for income taxes for the year ended December 31, 2023 and 2022 reflected the impact of a change in U.S. tax law effective January 1, 2022, which requires the capitalization and amortization of research and development expenditures incurred after December 31, 2021.

In August 2022, the Inflation Reduction Act of 2022, or IRA, was enacted. The IRA introduced a 15% alternative minimum tax based on the financial statement income of certain large corporations, effective for tax years beginning after December 31, 2022. The Company considered the applicable tax law changes concluding there is no impact to the Company’s tax provision for the twelve months ended December 31, 2023.

The provision for (benefit from) income taxes for December 31, 2023, 2022, and 2021, differed from the amounts computed by applying the U.S. Federal income tax rate of 21% to income (loss) before income taxes as a result of the following (in thousands):


	Year Ended December 31,
	2023		2022		2021
Provision for (benefit from) income taxes at statutory rate	$	6,614	$	(10,012)	$	(25,120)
State income taxes, net of federal benefit	1,796		(1,424)		(2,309)
Rate differential on foreign earnings	(130)		(104)		(68)
Research and development credits	(4,894)		(1,346)		(887)
Change in valuation allowance	814		304		809
Stock-based compensation	4,538		2,021		(3,065)
Nondeductible stock-based compensation	6,053		10,012		18,267
Unrecognized tax benefits	2,498		975		703
Non-deductible expenses	350		630		287
Other	(98)		4		432
Total provision for (benefit from) income taxes	$	17,541	$	1,060	$	(10,951)

The tax effects of temporary differences that give rise to significant portions of our deferred tax assets and liabilities consisted of the following as of December 31, 2023 and 2022, (in thousands):


	As of December 31,
	2023		2022
Deferred tax assets
Deferred revenue	$	220	$	316
Accrued expenses	8,557		7,995
Stock-based compensation	6,554		9,293
Impairment on investment	1,445		1,445


	As of December 31,
	2023		2022
Net operating loss carryforwards	14,492		15,117
Tax credit carryforwards	9,462		12,839
Lease liabilities	2,359		2,934
Interest expense carryforwards	1,560		6,004
Capital loss carryforwards	455		453
Capitalized research expenses	21,355		6,674
Total deferred tax assets	66,459		63,070
Valuation allowance	(16,320)		(14,644)
Net deferred tax assets	50,139		48,426
Deferred tax liabilities
Depreciation and amortization	(15,231)		(12,780)
Right of use asset	(2,228)		(2,900)
State taxes	(3,665)		(3,366)
Net deferred tax liabilities	(21,124)		(19,046)
Net deferred tax assets and liabilities	$	29,015	$	29,380

We evaluated the realizability of net deferred tax assets and determined it is more likely than not that separate state net operating losses, state net operating losses from the acquisition of LegalInc, capital loss carryovers from the acquisition of Earth Class Mail, the deferred tax assets for Pulse IP, LLC and Pulse Business, LLC, and foreign deferred tax assets will not be realized based on the available objective evidence and have recorded a valuation allowance on such deferred tax assets.

The following table summarizes the valuation allowance:


	Year Ended December 31,
	2023		2022		2021
Beginning balance	$	14,644	$	14,170	$	12,950
Net increase in current year	799		91		1,312
Net increase (decrease) in valuation prior period	877		383		(14)
Net decrease in valuation allowance from acquisitions	—		—		(78)
Ending balance	$	16,320	$	14,644	$	14,170

Net changes in the valuation allowance in the years ended December 31, 2023, 2022, and 2021 include changes recorded through earnings relating to losses primarily from foreign operations and to a lesser extent valuation allowances established relating to acquired businesses.

At December 31, 2023 and 2022, we had federal net operating loss, or NOL, carryforwards of $17.2 million and $16.8 million, respectively, which will begin to expire in 2032. At December 31, 2023, and 2022, we had state NOL carryforwards of $38.2 million and $59.9 million, respectively, which will begin to expire in 2028. At December 31, 2023 and 2022, we had foreign NOL carryforwards of $30.3 million and $33.6 million, respectively, which can be carried forward indefinitely and are not subject to expiration. At December 31, 2023, our federal tax credit carryforwards were immaterial. At December 31, 2022, we had federal tax credit carryforwards of $7.1 million, which will begin to expire in 2039. At December 31, 2023 and 2022, we had state tax credit carryforwards of $12.6 million and $10.8 million, respectively, which carry forward indefinitely. Our domestic entities may be subject to an annual limitation on the utilization of NOL and credit carryforwards based on changes in ownership as defined by Section 382 of the Internal Revenue Code of 1986. In 2021 we acquired Earth Class Mail and in 2022 we acquired Revvsales Inc. Both were structured as stock acquisitions. Since there was a change in ownership, the acquired NOL carryforwards are subject to an annual Section 382 limitation on the utilization of the NOL carryforwards.

We have had foreign operations since 2013. We have not provided for U.S. income taxes on the undistributed earnings and other outside temporary differences of foreign subsidiaries as they are considered

indefinitely reinvested outside the U.S. At December 31, 2023, 2022, and 2021, the amount of temporary differences related to undistributed earnings and other outside temporary differences upon which U.S. income taxes are not material to our consolidated financial statements.

The following table summarizes the changes in unrecognized tax benefits for the years ended December 31, 2023, 2022, and 2021 (in thousands):


	Gross Unrealized Tax Benefits
Balance at December 31, 2020	$	7,231
Additions for tax positions related to the current year	887
Reductions for tax positions related to prior years	(245)
Balance at December 31, 2021	$	7,873
Additions for tax positions related to the current year	999
Additions for tax positions related to prior years	48
Balance at December 31, 2022	$	8,920
Additions for tax positions related to the current year	2,181
Additions for tax positions related to prior years	418
Balance at December 31, 2023	$	11,519

If recognized, $11.5 million of unrecognized tax benefits, excluding interest and penalties, would reduce our annual effective tax rate. Due to the uncertain and complex application of tax laws and regulations, it is possible that the ultimate resolution of uncertain positions may result in liabilities that could be materially different from these estimates. In such an event, we will record additional tax expense or benefit in the period in which resolution occurs. Our policy is to recognize interest and penalties related to income tax matters in income tax expense. At December 31, 2023 and 2022, accrued interest and penalties related to income tax positions were not material to our consolidated financial statements. We do not anticipate that unrecognized tax benefits will materially change within the next twelve months.

We are subject to taxation and file income tax returns in the U.S. federal, state, and foreign jurisdictions. The federal income tax returns for the years 2020 through 2022 and state income tax returns for the tax years 2008 through 2022 remain open to examination. We are under examination in one state which is not expected to have an impact on our results of operations, cash flows and financial condition.

- Definition

The entire disclosure for income taxes. Disclosures may include net deferred tax liability or asset recognized in an enterprise's statement of financial position, net change during the year in the total valuation allowance, approximate tax effect of each type of temporary difference and carryforward that gives rise to a significant portion of deferred tax liabilities and deferred tax assets, utilization of a tax carryback, and tax uncertainties information.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Topic 946
-SubTopic 20
-Name Accounting Standards Codification
-Section 50
-Paragraph 13
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147480990/946-20-50-13

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Topic 235
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-Name Accounting Standards Codification
-Section S99
-Paragraph 1
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Reference 3: http://www.xbrl.org/2003/role/disclosureRef
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-Name Accounting Standards Codification
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Reference 4: http://www.xbrl.org/2003/role/disclosureRef
-Topic 740
-SubTopic 10
-Name Accounting Standards Codification
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-Paragraph 14
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-URI https://asc.fasb.org//1943274/2147482685/740-10-50-14

Reference 5: http://www.xbrl.org/2003/role/disclosureRef
-Topic 740
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Reference 6: http://www.xbrl.org/2003/role/disclosureRef
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-Name Accounting Standards Codification
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Reference 7: http://www.xbrl.org/2003/role/disclosureRef
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Reference 8: http://www.xbrl.org/2003/role/disclosureRef
-Topic 740
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-Subparagraph (SAB TOPIC 6.I.5.Q1)
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Reference 9: http://www.xbrl.org/2003/role/disclosureRef
-Topic 740
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Reference 10: http://www.xbrl.org/2003/role/disclosureRef
-Topic 740
-SubTopic 30
-Name Accounting Standards Codification
-Section 50
-Paragraph 2
-Subparagraph (a)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482603/740-30-50-2

+ Details

Fair Value Measurements - Additional Information (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2021
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Change in fair value of contingent consideration	$ (836)	$ (150)	$ 0
UA Services
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Change in fair value of contingent consideration	$ (800)

Intangible Assets, net - Schedule of Finite-Lived Intangible Assets (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2021
Finite-Lived Intangible Assets [Line Items]
Gross Carrying Amount	$ 26,852	$ 35,282
Accumulated Amortization	13,117	16,382
Net Carrying Amount	13,735	18,900
Amortization expense	$ 5,200	$ 3,500	$ 1,000
Customer relationships
Finite-Lived Intangible Assets [Line Items]
Remaining Weighted average useful life (in years)	3 years 9 months 18 days	4 years 9 months 18 days
Gross Carrying Amount	$ 12,088	$ 17,841
Accumulated Amortization	5,314	9,300
Net Carrying Amount	$ 6,774	$ 8,541
Developed technology
Finite-Lived Intangible Assets [Line Items]
Remaining Weighted average useful life (in years)	2 years 2 months 12 days	3 years 2 months 12 days
Gross Carrying Amount	$ 14,281	$ 16,813
Accumulated Amortization	7,412	6,689
Net Carrying Amount	$ 6,869	$ 10,124
Trade names
Finite-Lived Intangible Assets [Line Items]
Remaining Weighted average useful life (in years)	1 year	1 year 3 months 18 days
Gross Carrying Amount	$ 358	$ 503
Accumulated Amortization	339	383
Net Carrying Amount	$ 19	$ 120
Assembled workforce
Finite-Lived Intangible Assets [Line Items]
Remaining Weighted average useful life (in years)	1 year 9 months 18 days	2 years 9 months 18 days
Gross Carrying Amount	$ 125	$ 125
Accumulated Amortization	52	10
Net Carrying Amount	$ 73	$ 115

Stock-based Compensation

12 Months Ended

Dec. 31, 2023

Share-Based Payment Arrangement [Abstract]

Stock-based Compensation

2021 Equity Incentive Plan

In June 2021, our board of directors adopted our 2021 Equity Incentive Plan, or 2021 Plan. All equity-based awards going forward will be granted under the 2021 Plan. An aggregate of 18,946,871 shares of our common stock were reserved for issuance under our 2021 Plan, as well as any future automatic annual increases in the number of shares of common stock reserved for issuance under our 2021 Plan.

Under the terms of the 2021 Plan, both incentive and nonqualified stock options could be granted with exercise prices not less than the fair market value of our common stock on the date of grant. Options granted pursuant to the 2021 Plan will vest at the rate specified in the stock option agreement. Under the 2021 Plan, if an option holder’s service relationship with us or any of our affiliates ceases for any reason other than

disability, death, or cause, the option holder may generally exercise any vested options for a period of three months following the cessation of service. If under our 2021 Plan, shares subject to stock awards expire or terminate without being exercised in full or are paid out in cash rather than in shares, such awards will not reduce the number of shares available for issuance under our 2021 Plan. Shares withheld under a stock award to satisfy the exercise, strike or purchase price of a stock award or to satisfy a tax withholding obligation will not reduce the number of shares available for issuance under our 2021 Plan.

Under the 2021 Plan, RSU awards are granted under RSU award agreements adopted by the administrator. RSU awards may be granted for any form of legal consideration that may be acceptable to our board of directors and permissible under applicable law. An RSU award may be settled by cash, delivery of stock, a combination of cash and stock as deemed appropriate by the administrator, or in any other form of consideration set forth in the RSU award agreement. Additionally, dividend equivalents may be credited in respect of shares covered by a RSU award. Except as otherwise provided in the applicable award agreement, or other written agreement between us and the recipient, RSU awards that have not vested will be forfeited once the participant’s continuous service ends for any reason.

2021 Employee Stock Purchase Plan

In June 2021, our board of directors adopted our 2021 Employee Stock Purchase Plan, or 2021 ESPP. We authorized the issuance of 3,552,538 shares of common stock under the 2021 ESPP, as well as any future automatic annual increases in the number of shares of common stock reserved for issuance under our 2021 Employee Stock Purchase Plan. Our 2021 ESPP is implemented through a series of offerings under which eligible employees are granted rights to purchase shares of our common stock on specified dates during such offerings at a discounted price per share.

Under the 2021 ESPP our employees may purchase common stock through payroll deductions at a price equal to 85% of the lower of the fair market value of the stock at the beginning of the offering period or at the end of each applicable purchase period. The 2021 ESPP generally provides for offering periods of six months in duration with purchase periods ending on either May 15 or November 15. Contributions under the 2021 ESPP are limited to a maximum of 15% of an employee’s eligible compensation. ESPP purchases are settled with common stock from the ESPP’s previously-authorized and available pool of shares. The stock-based compensation expense incurred in 2023, 2022 and 2021 was $0.7 million, $0.7 million and $0.4 million, respectively. Our policy is to issue new common stock upon the exercise of stock options.

2016 Stock Option Plan

Prior to the 2021 Plan, we granted stock options under our 2016 Stock Option Plan, or 2016 Plan.

Under the terms of the 2016 Plan, both incentive and nonqualified stock options were granted with exercise prices not less than the fair value of the underlying common stock on the date of grant. Options granted pursuant to the 2016 Plan vest over periods of up to five years and expire ten years from the grant date. If a 2016 Plan option expires and is not exercised, such as if an employee does not exercise vested 2016 Plan options within thirty days of termination, then these options would revert back to the 2016 Plan’s option pool.

The exercise price of all options granted was based on the estimated fair market value of our common stock as determined by the board of directors at the date of grant or date of modification.

Stock-based Compensation Expense

We recorded stock-based compensation expense in the following categories in the accompanying consolidated statements of operations and balance sheets (in thousands):


	Year Ended December 31,
	2023		2022		2021
Cost of revenue	$	4,318	$	2,931	$	1,733
Sales and marketing	6,096		10,144		15,746
Technology and development	18,899		16,574		38,796
General and administrative	36,702		50,820		56,557
Total stock-based compensation expense	66,015		80,469		112,832
Amount capitalized to internal-use software	4,056		2,526		674
Total stock-based compensation	$	70,071	$	82,995	$	113,506

Stock Options

Stock option activity for the year ended December 31, 2023 is as follows (in thousands, except weighted-average exercise price and remaining contract life):


	Number of Options	Weighted- Average Exercise Price		Weighted- Average Remaining Contractual Life (in Years)	Aggregate Intrinsic Value
Outstanding at December 31, 2022	17,155	$	11.13	7.1	$	3,698
Granted	4,181	8.54
Exercised	(743)	8.20
Cancelled	(19)	9.77
Forfeited	(88)	9.44
Outstanding at December 31, 2023	20,486	$	10.69	6.9	$	34,571
Vested and expected to vest at December 31, 2023	20,486	$	10.69	6.9	$	34,571
Exercisable at December 31, 2023	14,021	$	10.53	6.1	$	22,332

The aggregate intrinsic values in the table above represents the difference, if any, between the fair value per share of our common stock and the option exercise prices multiplied by the number of options at the respective balance sheet dates. The total intrinsic value of stock options exercised in 2023, 2022 and 2021 was $2.2 million, $3.9 million and $13.5 million, respectively. During the years ended December 31, 2023, 2022, and 2021, the Company recorded stock-based compensation expense related to stock option awards of $22.0 million, $40.1 million, and $73.6 million, respectively. At December 31, 2023, total remaining stock-based compensation expense for unvested stock options was $25.5 million, which is expected to be recognized over a weighted-average period of 2.6 years.

The weighted-average grant-date fair value per share of options granted using the Black-Scholes option pricing model for 2023, 2022 and 2021 was $4.40, $6.61 and $11.78, respectively. There was no tax benefit for 2023. There was a realized tax benefit of $2.6 million and $12.3 million for tax deductions from stock options exercised in 2022 and 2021, respectively. All tax effects related to stock-based compensation have been recorded in our provision for income taxes in the accompanying consolidated statements of operations. Vesting of the options granted to the members of our senior leadership team will be accelerated upon a qualifying termination that occurs during the change-in-control period, as defined in the option grant agreement, or immediately prior to the effective time of a change-in-control if the option award is not assumed, continued or substituted by the surviving or acquiring entity (or its parent) in connection with such change-in-control.

The weighted-average assumptions that were used to calculate the grant-date fair value of our stock option grants using the Black-Scholes option pricing model were as follows:


	Year Ended December 31,
	2023	2022		2021
Expected life (years)	5.9	5.6		5.4
Risk-free interest rate	3.4%-3.8%	2.6	%	1.0	%
Expected volatility	50.4%-50.7%	48	%	46	%
Expected dividend yield	—	—		—

In June 2021, we granted 970,970 options to our executive officers that were contingent on the effectiveness of the registration statement of our IPO, which occurred on June 29, 2021, or IPO Options. Because the number of options and exercise price of the IPO Options were based on the IPO price to the public, the grant date for accounting purposes was not established until the effective date of our IPO. As the IPO was a performance condition, no stock-based compensation expense was recognized until our IPO registration statement was declared effective. During the years ended December 31, 2023, 2022, and 2021, the Company recorded stock-based compensation expense for the IPO Options of $2.0 million, $4.5 million, and $3.2 million, respectively. At December 31, 2023, total remaining stock-based compensation expense for

unvested stock options was $1.1 million, which is expected to be recognized over a weighted-average requisite service period of approximately 1.6 years.

Restricted and Performance Stock Units

A summary of RSUs and performance stock units, or PSUs, activity for the year ended December 31, 2023 is as follows (in thousands, except weighted-average grant-date fair value):


	Number of Units	Weighted- Average Grant- Date Fair Value
Unvested at December 31, 2022	8,879	$	14.76
Granted	9,974	8.87
Cancelled/forfeited	(1,405)	10.72
Vested	(3,441)	15.33
Unvested at December 31, 2023	14,007	$	10.83

The fair value of vested RSUs in 2023, 2022 and 2021, were $36.6 million and $18.5 million and $18.1 million, respectively. Our RSUs consist of time-based RSUs and RSUs with performance conditions. For the years ended December 31, 2023, 2022 and 2021, total stock-based compensation expense related to RSUs was $47.3 million, $41.4 million and $38.6 million, respectively. At December 31, 2023, total remaining stock-based compensation expense for unvested RSU awards is $112.1 million, which is expected to be recognized over a weighted-average period of 2.7 years. There was no tax benefit for 2023 and 2022. There was a realized tax benefit of $3.5 million for tax deductions from RSU settlements in 2021.

During the year ended December 31, 2023, we also granted 1.3 million PSUs to members of our senior leadership team. Vesting of the PSUs is contingent upon the recipient’s continuous employment over the requisite service period and is subject to fulfillment by the Company of predefined performance criteria. Such awards will be earned only if certain performance targets established by and under the direction of the compensation committee of the board of directors are met during the performance period. The number of PSUs subject to vesting is determined at the end of the performance period and may equal zero percent (0%) to one hundred and fifty percent (150%) of the target award based upon Company’s achievement of certain revenue, profitability, and market share targets. If the performance criteria are achieved, 75% of the PSUs will vest on the date the compensation committee of the board of directors certifies achievement of the performance criteria, and the remaining 25% of the PSUs will vest on the one year anniversary of such certification date. PSUs are measured based on the fair market value of the underlying stock on the date of grant and recognized as expense over the employee’s requisite service period using graded vesting attribution method to the extent it is probable that the performance conditions will be achieved. At December 31, 2023, the awards were not probable of vesting, and, consequently, no stock-based compensation expense related to these PSU awards was recognized during the year ended December 31, 2023. In the event of a change-in-control (as defined in the employment agreement between the Company and each recipient of the performance award), the vesting conditions of the PSUs will be modified resulting in a vesting of a greater of (i) one hundred percent (100%) of the target award, or (ii) the number of shares commensurate with the Company’s market share for the trailing 12-month period ending on the date that is the end of the nearest month prior to the date of the change of control, provided that 75% of such PSUs will vest on June 30, 2024 and the remaining 25% of such PSUs will vest on June 30, 2025, subject to the recipients continuing to be service providers through each such date and accelerated if the acquirer does not assume the awards in an economically equivalent manner.

In November 2022, we granted 211,864 PSUs, with a grant date fair value of $2.0 million to certain employees where 25% and 50% of the PSUs vest upon the first and second anniversaries, respectively, from the Revv asset acquisition date should certain headcount thresholds be maintained, and 25% will vest upon the third anniversary from the Revv asset acquisition date. For the years ended December 31, 2023 and 2022, stock-based compensation expense for these PSUs was $0.8 million and $0.1 million, respectively, and was recognized on a graded vesting basis. At December 31, 2023, the remaining stock-based compensation expense for unvested PSUs is $0.9 million, which is expected to be recognized over a weighted-average requisite service period of approximately 1.4 years.

In June 2021, we granted 388,389 RSUs with a grant date fair value of $10.9 million to our executive officers that were contingent on the effectiveness of the registration statement of our IPO, or IPO RSUs. As the IPO was a performance condition, no stock-based compensation expense for the IPO RSUs was recognized until our IPO registration statement was declared effective. Stock-based compensation expense for the years

ended December 31, 2023, 2022 and 2021 was $1.9 million, $4.3 million, and $3.1 million, respectively. At December 31, 2023, the remaining stock-based compensation expense for unvested PSUs was $1.1 million, which is expected to be recognized over a weighted-average requisite service period of approximately 1.6 years.

Upon the effectiveness of our IPO and through December 31, 2021, there were 550,091 RSUs that vested. Such shares of common stock were settled until after the lock-up period relating to our IPO that ended in the fourth quarter of 2021.

In 2021, we granted 1,338,028 liquidity event RSUs, or LERSUs, to various employees, which only vest upon the achievement of up to four years of service and upon the consummation of a change in control, or CIC event, which included an IPO. If the recipient employee terminates for any reason other than for cause, the employee shall retain any service-vested LERSUs until 6.5 years from the date of grant or the earlier settlement of the service-vested LERSUs upon the consummation of a CIC event. For the LERSUs, recognition of expense does not occur until the consummation of a CIC event and expense is recognized thereafter for any remaining service period, as such events are not considered probable of occurring prior to the CIC event for stock-based compensation purposes.

Upon the effective date of our IPO registration statement on June 29, 2021, we commenced recognition of stock-based compensation for all LERSUs, as the CIC performance event and service conditions for vested RSUs were satisfied.

In March 2021, we granted 30,434 RSUs to various employees where the RSUs will vest depending upon the appreciation of the fair value of our common stock compared to the grant-date fair value of our common stock and upon the consummation of a CIC event, which included an IPO, merger, acquisition, or sale of more than 50% of our assets, or performance RSUs. The performance RSUs vest on a linear basis, starting at 0% with a fair value of our common stock equal to $19.64 per share and ending at 100% upon reaching a fair value of our common stock of $29.46 per share. The performance options were subsequently modified in June 2021, prior to the effective date of our IPO registration statement, as discussed below.

Stock-option and RSU activity described above, including total stock-based compensation expense recognized and total remaining stock-based compensation expense, is inclusive of awards modified during the period as discussed below.

Modification of Stock-Based Compensation Awards

In May 2023, the compensation committee of the board of directors approved amendments to the terms of the stock option and RSU awards granted to members of our senior leadership team during the year ended December 31, 2022, whereby the vesting of such stock options and RSUs will be accelerated upon (i) a qualifying termination that occurs during the CIC period or (ii) the individual’s termination as a result of his or her death or disability (as each such term is defined in the employment agreement between the Company and applicable individual). Further, the amendments provide that such stock options, to the extent vested and outstanding on the date of the individual’s qualifying termination or the termination of the individual’s employment in the event of his or her death or disability, as applicable and after giving effect to the vesting acceleration, shall remain outstanding and exercisable until the earlier of: (x) the original expiration date of the stock options, (y) the one-year anniversary of the date of the individual’s termination of employment with the Company, and (z) immediately prior to the effective time of a change in control if such stock option is not assumed, continued or substituted by the surviving or acquiring entity (or its parent) in connection with such change in control. The modification to add the foregoing provisions did not result in an incremental fair value of the impacted awards because the original vesting conditions were expected to be satisfied as of the modification date and the termination of the individual’s employment in the event of change-in-control or as a result of his or her death or disability was not probable as of the date of this filing.

In June 2021, we modified the vesting conditions of certain stock options and RSUs as described below.

We modified the vesting conditions of 4,477,218 outstanding performance options of certain executive officers and employees so that the performance options do not fully vest immediately upon an IPO. Instead, subject to and contingent upon the effective date of an IPO, the modified performance options for executive officers will vest monthly over a four year period from their original vesting commencement dates and the modified performance options of certain employees will vest 25% on the first anniversary from the vesting commencement date, and then vest monthly over the remaining service period, subject to continued employment through the applicable vesting dates. As the modified awards contain a performance condition that is satisfied upon an IPO, we remeasured the fair value of the performance options on the date of modification. This new fair value of $76.6 million will be recognized as stock-based compensation expense using the graded vesting method, with an immediate stock-based compensation expense recognized on the effective date of our IPO registration statement for the modified performance options for which the service vesting condition was satisfied on or prior to the effective date of the IPO registration statement, and all remaining compensation expense will be recognized thereafter over the remaining service period. We

recognized stock-based compensation expense of $23.3 million from the effective date of our IPO registration statement through June 30, 2021 and we recognized stock-based compensation of $24.1 million during the six months ended December 31, 2021. Stock-based compensation expense for the years ended December 31, 2023 and 2022 was $5.9 million and $19.9 million, respectively. At December 31, 2023, remaining compensation of $0.9 million will be recognized over a remaining weighted-average service period of 0.7 years.

We modified the vesting conditions of 3,627,936 outstanding 2019 performance options of an executive officer so that in the event of an IPO, the modified 2019 performance options will vest monthly over a four years period from the original vesting commencement date in 2019, subject to continued employment of the executive officer, rather than vesting upon the fourth anniversary of the original date of grant based on achieving certain stock price thresholds. Incremental stock-based compensation expense as a result of this modification was $11.4 million. Upon our IPO, we recognized stock-based compensation expense for the modified 2019 performance options for which the service vesting condition was satisfied on or prior to the effective date of the IPO registration statement, and all remaining compensation will be recognized thereafter over the remaining service period using the graded vesting method. We recognized stock-based compensation expense of $6.6 million from the effective date of our IPO registration statement through June 30, 2021 and we recognized stock-based compensation of $6.7 million during the six months ended December 31, 2021. Stock-based compensation expense for the years ended December 31, 2023 and 2022 was $0.9 million and $5.0 million, respectively. There is no remaining compensation expense to be recognized as of December 31, 2023.

We modified the vesting conditions of 111,902 outstanding performance RSUs of certain employees so that the modified performance RSUs do not vest immediately upon an IPO. Instead, subject to and contingent upon the effective date of an IPO registration statement, the modified performance RSUs vest 25% on the first anniversary from their respective vesting commencement dates, then monthly over the remaining service period, subject to the continued employment through the applicable vesting dates. As the modified RSUs contain a performance condition that is satisfied upon an IPO, we remeasured the fair value of the performance RSUs on the date of modification. This new fair value of approximately $2.9 million will be recognized as stock-based compensation expense using the graded vesting method, with an immediate stock-based compensation expense recognized on the effective date of our IPO registration statement for the performance RSUs for which the service vesting condition was satisfied on or prior to the effective date of the IPO registration statement, and all remaining compensation will be recognized thereafter over the remaining service period. We recognized stock-based compensation expense of $0.2 million from the effective date of our IPO registration statement through June 30, 2021 and we recognized stock-based compensation of $1.2 million during the six months ended December 31, 2021. Stock-based compensation expense for the years ended December 31, 2023 and 2022 was $0.3 million and $0.6 million, respectively. At December 31, 2023, remaining compensation expense of $0.1 million will be recognized over a remaining weighted-average service period of 0.8 years.

We modified the vesting conditions of 1,725,942 outstanding LERSUs and 1,706,888 outstanding time-based options of certain executive officers to amend the severance vesting acceleration benefit applicable for the LERSUs and to remove the CIC event vesting acceleration benefit for the time-based options. There was no incremental stock-based compensation associated with the modification of the time-based options. We remeasured the fair value of the LERSUs on the date of modification and this new fair value of approximately $43.3 million will be recognized using the graded vesting method, with an immediate stock-based compensation expense recognized on the effective date of our IPO registration statement for the modified LERSUs that have satisfied the service-vesting condition on or prior to the effective date of our IPO registration statement, and all remaining compensation will be recognized thereafter over the remaining service period. We recognized stock-based compensation expense of $7.4 million from the effective date of our IPO registration statement through June 30, 2021 and we recognized stock-based compensation of $15.8 million during the six months ended December 31, 2021. Stock-based compensation expense for the years ended December 31, 2023 and 2022 was $5.0 million and $13.0 million, respectively. At December 31, 2023, remaining compensation expense of $1.2 million will be recognized over a remaining weighted-average service period of 0.9 years.

During 2021, we modified 63,235 vested options to extend the exercise period for terminated employees who were not able to exercise their options during the IPO lock-up period. We recognized $1.4 million in incremental stock-based compensation related to this modification during the year ended December 31, 2021.

The fair value of the modified 2020 performance options, 2019 performance option, performance RSUs and LERSUs were remeasured using the fair value of our common stock, as approved by the Pricing Committee of our board of directors, which was $25.50 per share, the midpoint of the price range set forth on the cover page of the preliminary prospectus filed with the SEC on June 21, 2021 as part of our registration statement on Form S-1.

Stock-based Compensation - Schedule of Stock Based Compensation Cost (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2021
Share-Based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]
Total stock-based compensation expense	$ 66,015	$ 80,469	$ 112,832
Amount capitalized to internal-use software	4,056	2,526	674
Total stock-based compensation	70,071	82,995	113,506
Cost of revenue
Share-Based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]
Total stock-based compensation expense	4,318	2,931	1,733
Sales and marketing
Share-Based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]
Total stock-based compensation expense	6,096	10,144	15,746
Technology and development
Share-Based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]
Total stock-based compensation expense	18,899	16,574	38,796
General and administrative
Share-Based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]
Total stock-based compensation expense	$ 36,702	$ 50,820	$ 56,557

Leases

12 Months Ended

Dec. 31, 2023

Leases [Abstract]

Leases

We conduct operations from certain leased facilities in various locations. At December 31, 2023, we had various non-cancelable operating leases for office space and equipment, which expire between January 2024, and November 2029, and which represent the non-cancelable periods of the leases and include extension options that we determined are reasonably certain to be exercised. We exclude extension options that are not reasonably certain to be exercised from our lease terms. Our lease payments consist primarily of fixed rental payments for the right to use the underlying leased assets over the lease terms. We often receive customary incentives from our landlords, such as reimbursements for tenant improvements and rent abatement periods, which effectively reduce the total lease payments owed for these leases.

Operating lease liabilities on our consolidated balance sheets represent the present value of our remaining lease payments over the remaining lease terms. We do not allocate lease payments to non-lease components. We use our incremental borrowing rate to calculate the present value of our lease payments, as the implicit rates in our leases are not readily determinable.

Leases consist of the following (in thousands):


		As of December 31,
Assets	Classification	2023		2022
Operating	Operating lease right-of-use assets	$	8,518	$	11,148
Finance	Property and equipment, net	27		62
Total leases		$	8,545	$	11,210
Liabilities
Current
Operating	Operating lease liabilities	$	2,052	$	2,317
Finance	Accrued expenses and other current liabilities	26		36
Non Current
Operating	Operating lease liabilities, non-current	6,966		8,958
Finance	Other liabilities	2		28
Total lease liabilities		$	9,046	$	11,339

At December 31, 2023, the maturities of our remaining operating lease and finance lease liabilities were as follows (in thousands, except years and percentages):



	Operating leases			Finance leases			Total leases liabilities
2024	$	2,392		$	27		$	2,419
2025	1,828			2			1,830
2026	1,744			—			1,744
2027	1,677			—			1,677
2028	1,312			—			1,312
Thereafter	1,151			—			1,151
Total minimum lease payments	10,104			29			10,133
Less: Effects of discounting	1,086			1			1,087
Present value of lease liabilities	$	9,018		$	28		$	9,046
Less: current portion	$	2,052		$	26		$	2,078
Long-term lease liabilities	$	6,966		$	2		$	6,968
Weighted-average remaining lease term as of December 31, 2023 (in years)	5.0			1.1
Weighted-average incremental borrowing rate as of December 31, 2023	4.51		%	5.50		%
Weighted-average remaining lease term as of December 31, 2022 (in years)	5.6			1.9



	Operating leases		Finance leases		Total leases liabilities
Weighted-average incremental borrowing rate as of December 31, 2022	4.39	%	5.50	%

The component of our lease costs included in our consolidated statements of operations were as follows (in thousands):


	Year Ended December 31,
	2023		2022
Lease cost
Operating lease cost	$	3,127	$	2,384
Other variable cost	276		250
Finance lease cost	38		17
Net lease cost	$	3,441	$	2,651

Leases

Leases consist of the following (in thousands):


		As of December 31,
Assets	Classification	2023		2022
Operating	Operating lease right-of-use assets	$	8,518	$	11,148
Finance	Property and equipment, net	27		62
Total leases		$	8,545	$	11,210
Liabilities
Current
Operating	Operating lease liabilities	$	2,052	$	2,317
Finance	Accrued expenses and other current liabilities	26		36
Non Current
Operating	Operating lease liabilities, non-current	6,966		8,958
Finance	Other liabilities	2		28
Total lease liabilities		$	9,046	$	11,339

At December 31, 2023, the maturities of our remaining operating lease and finance lease liabilities were as follows (in thousands, except years and percentages):



	Operating leases			Finance leases			Total leases liabilities
2024	$	2,392		$	27		$	2,419
2025	1,828			2			1,830
2026	1,744			—			1,744
2027	1,677			—			1,677
2028	1,312			—			1,312
Thereafter	1,151			—			1,151
Total minimum lease payments	10,104			29			10,133
Less: Effects of discounting	1,086			1			1,087
Present value of lease liabilities	$	9,018		$	28		$	9,046
Less: current portion	$	2,052		$	26		$	2,078
Long-term lease liabilities	$	6,966		$	2		$	6,968
Weighted-average remaining lease term as of December 31, 2023 (in years)	5.0			1.1
Weighted-average incremental borrowing rate as of December 31, 2023	4.51		%	5.50		%
Weighted-average remaining lease term as of December 31, 2022 (in years)	5.6			1.9



	Operating leases		Finance leases		Total leases liabilities
Weighted-average incremental borrowing rate as of December 31, 2022	4.39	%	5.50	%

The component of our lease costs included in our consolidated statements of operations were as follows (in thousands):


	Year Ended December 31,
	2023		2022
Lease cost
Operating lease cost	$	3,127	$	2,384
Other variable cost	276		250
Finance lease cost	38		17
Net lease cost	$	3,441	$	2,651

Income Taxes - Schedule of Deferred Tax Assets and Liabilities (Details) - USD ($) $ in Thousands	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Deferred tax assets
Deferred revenue	$ 220	$ 316
Accrued expenses	8,557	7,995
Stock-based compensation	6,554	9,293
Impairment on investment	1,445	1,445
Net operating loss carryforwards	14,492	15,117
Tax credit carryforwards	9,462	12,839
Lease liabilities	2,359	2,934
Interest expense carryforwards	1,560	6,004
Capital loss carryforwards	455	453
Capitalized research expenses	21,355	6,674
Total deferred tax assets	66,459	63,070
Valuation allowance	(16,320)	(14,644)	$ (14,170)	$ (12,950)
Net deferred tax assets	50,139	48,426
Deferred tax liabilities
Depreciation and amortization	(15,231)	(12,780)
Right of use asset	(2,228)	(2,900)
State taxes	(3,665)	(3,366)
Net deferred tax liabilities	(21,124)	(19,046)
Net deferred tax assets and liabilities	$ 29,015	$ 29,380

Stock-based Compensation (Tables)

12 Months Ended

Dec. 31, 2023

Share-Based Payment Arrangement [Abstract]

Schedule of Stock Based Compensation Cost

We recorded stock-based compensation expense in the following categories in the accompanying consolidated statements of operations and balance sheets (in thousands):


	Year Ended December 31,
	2023		2022		2021
Cost of revenue	$	4,318	$	2,931	$	1,733
Sales and marketing	6,096		10,144		15,746
Technology and development	18,899		16,574		38,796
General and administrative	36,702		50,820		56,557
Total stock-based compensation expense	66,015		80,469		112,832
Amount capitalized to internal-use software	4,056		2,526		674
Total stock-based compensation	$	70,071	$	82,995	$	113,506

Schedule of Stock Options Activity

Stock option activity for the year ended December 31, 2023 is as follows (in thousands, except weighted-average exercise price and remaining contract life):


	Number of Options	Weighted- Average Exercise Price		Weighted- Average Remaining Contractual Life (in Years)	Aggregate Intrinsic Value
Outstanding at December 31, 2022	17,155	$	11.13	7.1	$	3,698
Granted	4,181	8.54
Exercised	(743)	8.20
Cancelled	(19)	9.77
Forfeited	(88)	9.44
Outstanding at December 31, 2023	20,486	$	10.69	6.9	$	34,571
Vested and expected to vest at December 31, 2023	20,486	$	10.69	6.9	$	34,571
Exercisable at December 31, 2023	14,021	$	10.53	6.1	$	22,332

Schedule of Fair Value Assumptions and Techniques for Stock Options

The weighted-average assumptions that were used to calculate the grant-date fair value of our stock option grants using the Black-Scholes option pricing model were as follows:


	Year Ended December 31,
	2023	2022		2021
Expected life (years)	5.9	5.6		5.4
Risk-free interest rate	3.4%-3.8%	2.6	%	1.0	%
Expected volatility	50.4%-50.7%	48	%	46	%
Expected dividend yield	—	—		—

Schedule of Restricted Stock Unit Activity

A summary of RSUs and performance stock units, or PSUs, activity for the year ended December 31, 2023 is as follows (in thousands, except weighted-average grant-date fair value):


	Number of Units	Weighted- Average Grant- Date Fair Value
Unvested at December 31, 2022	8,879	$	14.76
Granted	9,974	8.87
Cancelled/forfeited	(1,405)	10.72
Vested	(3,441)	15.33
Unvested at December 31, 2023	14,007	$	10.83

Consolidated Statements of Comprehensive Income (Loss) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2021
Statement of Comprehensive Income [Abstract]
Net income (loss)	$ 13,953	$ (48,733)	$ (108,664)
Other comprehensive income (loss), net of tax:
Change in foreign currency translation adjustments	(1,370)	3,436	936
Change in available-for-sale debt securities:
Unrealized gains (losses), net	105	(144)	38
Total change in available-for-sale debt securities	105	(144)	38
Change in unrealized gain (loss) on cash flow hedges:
Unrealized gain (loss) on interest rate cap and swaps	0	0	1,448
Reclassification of prior hedge effectiveness and losses from interest rate cap to net income (loss)	0	0	2,315
Reclassification to net income (loss) upon discontinuance of interest rate swaps and prior hedge effectiveness	0	0	7,295
Total net changes in cash flow hedges	0	0	11,058
Total other comprehensive (loss) income	(1,265)	3,292	12,032
Total comprehensive income (loss)	$ 12,688	$ (45,441)	$ (96,632)

Consolidated Statements of Operations - USD ($) shares in Thousands, $ in Thousands	12 Months Ended
	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2021
Income Statement [Abstract]
Revenue	$ 660,727	$ 619,979	$ 575,080
Cost of revenue	239,263	211,095	189,364
Gross profit	421,464	408,884	385,716
Operating expenses:
Sales and marketing	210,872	263,884	279,281
Technology and development	83,181	70,434	84,003
General and administrative	106,352	116,057	106,584
Impairment of long-lived assets	0	248	924
Total operating expenses	400,405	450,623	470,792
Income (loss) from operations	21,059	(41,739)	(85,076)
Interest expense	(493)	(260)	(28,045)
Interest income	9,307	1,803	61
Other income (expense), net	1,621	(4,477)	1,193
Impairment of other equity security	0	(3,000)	0
Loss on debt extinguishment	0	0	(7,748)
Income (loss) before income taxes	31,494	(47,673)	(119,615)
Provision for (benefit from) income taxes	17,541	1,060	(10,951)
Net income (loss)	13,953	(48,733)	(108,664)
Net income (loss) attributable to common stockholders—basic	13,953	(48,733)	(108,664)
Net income (loss) attributable to common stockholders—diluted	$ 13,953	$ (48,733)	$ (108,664)
Net income (loss) per share attributable to common stockholders:
Basic (in dollars per share)	$ 0.07	$ (0.25)	$ (0.67)
Diluted (in dollars per share)	$ 0.07	$ (0.25)	$ (0.67)
Weighted-average shares used to compute net income (loss) per share attributable to common stockholders:
Basic (in shares)	190,466	195,829	161,424
Diluted (in shares)	194,415	195,829	161,424

Other Financial Statement Information - Schedule of Changes in Sales Allowance (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2021
Accrued Sales Allowances [Roll Forward]
Beginning balance	$ 4,426	$ 4,862	$ 4,856
Add: increase in sales allowances	6,635	7,217	7,998
Less: utilization of reserves	(7,649)	(7,653)	(7,992)
Ending balance	$ 3,412	$ 4,426	$ 4,862

Consolidated Balance Sheets - USD ($) $ in Thousands	Dec. 31, 2023	Dec. 31, 2022
Current assets:
Cash and cash equivalents	$ 225,719	$ 189,082
Accounts receivable, net of allowances of $4,906 and $4,730	11,738	13,177
Prepaid expenses and other current assets	15,159	16,699
Current assets held for sale	22,722	22,722
Total current assets	275,338	241,680
Property and equipment, net	48,232	30,823
Goodwill	63,318	63,229
Intangible assets, net	13,735	18,900
Operating lease right-of-use assets	8,518	11,148
Deferred income taxes	29,015	29,380
Available-for-sale debt securities (amortized cost of $836 and $812)	1,159	995
Other assets	8,503	9,240
Total assets	447,818	405,395
Current liabilities:
Accounts payable	32,282	25,312
Accrued expenses and other current liabilities	61,678	57,373
Deferred revenue	167,951	164,200
Operating lease liabilities	2,052	2,317
Total current liabilities	263,963	249,202
Operating lease liabilities, non-current	6,966	8,958
Deferred revenue	490	892
Other liabilities	7,565	3,968
Total liabilities	278,984	263,020
Commitments and contingencies (Note 13)
Stockholders’ equity:
Preferred stock, $0.001 par value 100,000 shares authorized at December 31, 2023 and 2022, none issued or outstanding at December 31, 2023 and 2022	0	0
Common stock, $0.001 par value; 1,000,000 and 1,000,000 shares authorized; 188,538 and 190,822 shares issued and outstanding at December 31, 2023 and 2022, respectively	189	190
Additional paid-in capital	1,101,474	1,032,550
Accumulated deficit	(933,061)	(891,862)
Accumulated other comprehensive income	232	1,497
Total stockholders’ equity	168,834	142,375
Total liabilities and stockholders’ equity	$ 447,818	$ 405,395

Acquisitions

12 Months Ended

Dec. 31, 2023

Business Combination and Asset Acquisition [Abstract]

Acquisitions

Revvsales, Inc.

In October 2022, we completed an asset acquisition of Revvsales Inc, or Revv, consisting substantially of acquired developed technology for their self-service document automation and electronic signature platform. Revv’s proprietary technology enhanced our forms library and legal template offerings and has been leveraged to develop modern product experiences and services for small businesses. A purchase price of $6.6 million, which was subject to customary adjustments, was paid at closing and funded by our available cash on hand. The acquisition was accounted for as an asset acquisition because substantially all the value of the assets acquired were concentrated in the acquired technology. Revv’s operations have been included in our consolidated financial statements commencing on the acquisition date.

We allocated the accumulated cost of the acquisition to the assets acquired based on their relative fair values. The accumulated cost of the acquisition included direct acquisition-related costs and applicable taxes. The estimated fair value of developed technology was $6.5 million and an assembled workforce of $0.1 million, which were determined by using a replacement cost approach. The replacement cost approach consists of developing an estimate of the current cost of a similar new asset having the nearest equivalent utility to the asset being valued. The developed technology rights and assembled workforce is amortized over a weighted-average period of three years by using the straight-line method.

Separate from the asset acquisition, up to $2.6 million was payable to certain of the sellers on the first and second anniversaries of the asset acquisition date as compensation for maintaining an assembled workforce. During the year ended December 31, 2023 a payment of $1.3 million was made to these sellers pursuant to the foregoing compensation arrangement.

United Agency Services, Corp.

In August 2022, we acquired certain assets and liabilities of UA Services, a company providing registered agent services and corporate compliance solutions for $3.5 million, of which $2.6 million was paid in cash on the acquisition date and up to $1.0 million was payable in cash within twelve months from the acquisition date based upon the achievement of certain earnout metrics. During the year ended December 31, 2023, we recorded a $0.8 million reduction in fair value of contingent consideration as a component of cost of revenue because the earnout metrics were not achieved. Furthermore, an additional payment of up to $0.4 million to the seller of UA Services was contingent on certain service conditions being met. This amount was excluded from the purchase consideration and was recorded as compensation expense in 2022.

The acquisition was completed in order to build a more durable registered agency platform and has been accounted for as a business combination. The purchase price was allocated to the assets acquired and liabilities assumed. Goodwill of $3.3 million arising from the acquisition consisted largely of the assembled workforce and synergies expected from combining our operations. The acquired goodwill was deductible for tax purposes. There were no intangible assets acquired in connection with this acquisition. Acquisition costs

related to this transaction of approximately $0.4 million were expensed as incurred and are included in general and administrative expenses in the accompanying consolidated statements of operations during the year ended December 31, 2022.

The revenue and earnings of the acquired business were included in our results of operations since the acquisition date and were not material to the consolidated financial results for the year ended December 31, 2022. Pro forma revenues and results of operations for this acquisition are not presented as the impact on our consolidated financial statements for the year ended December 31, 2022 was immaterial.

Earth Class Mail, Inc.

In November 2021, we acquired all of the outstanding equity interests in Earth Class Mail, Inc., or Earth Class Mail, a company that provides virtual mailbox solutions for small businesses, in line with our strategy to scale our existing business through building in-house adjacencies, for $61.2 million. The purchase price was reduced during the year ended December 31, 2022 due to a working capital adjustment of $0.3 million and immaterial measurement period adjustments.


	Amount		Estimated useful life
	(in thousands)
Goodwill	$	48,617	—
Customer relationships	10,603		6 years
Developed technology	5,418		5 years
Trade names	179		26 months
Property and equipment	267		3-5 years
Deferred tax liability	(3,087)		—
Other liabilities	(787)		—
Total purchase consideration	$	61,210

Intangible assets acquired from Earth Class Mail included customer relationships of $10.6 million, developed technology of $5.4 million and trade names of $0.2 million, which are being amortized over their estimated useful life using the straight-line method. The excess of the purchase price over the estimated fair value of the net assets acquired was recorded as goodwill.

The resulting goodwill of $48.6 million arising from the acquisition consisted largely of the assembled workforce and synergies expected from combining Earth Class Mail into our operations. The acquired goodwill was deductible for tax purposes. Acquisition-related costs, including legal, regulatory, and consulting costs amounted to $1.4 million and were included within general and administrative expenses in our consolidated statement of operations during the year ended December 31, 2021.

The revenue and earnings of the acquired business were included in our results of operations since the acquisition date and were not material to the consolidated financial results for the year ended December 31, 2021. Pro forma revenues and results of operations for this acquisition are not presented as the impact on our consolidated financial statements for the year ended December 31, 2021 was immaterial.

Commitments and Contingencies	12 Months Ended
Commitments and Contingencies	Dec. 31, 2023
Commitments and Contingencies Disclosure [Abstract]
Commitments and Contingencies	Commitments and Contingencies Commitments We have non-cancelable agreements with various vendors, which require us to pay $46.5 million over a four year period, of which $32.8 million remains to be paid as of December 31, 2023. Legal Proceedings From time to time, we may become subject to legal proceedings, claims and litigation arising in the ordinary course of business. We are not currently a party to any material legal proceedings, nor are we aware of any pending or threatened litigation that could have a material adverse effect on our results of operations, cash flows, and financial condition, should such litigation be resolved unfavorably. Indemnifications Indemnification provisions in our third-party service provider agreements provide that we will indemnify, hold harmless, and reimburse the indemnified parties on a case-by-case basis for losses suffered or incurred by the indemnified parties in connection with any claim by any third-party as a result of our website, advertising, marketing, payment processing, collection or customer service activities. The maximum potential amount of future payments we could be required to make under these indemnification provisions is undeterminable. No amounts have been accrued or have been paid during any period presented as we believe the fair value of these indemnification obligations is immaterial.

Goodwill (Details) - USD ($) $ in Thousands	12 Months Ended
Goodwill (Details) - USD ($) $ in Thousands	Dec. 31, 2023	Dec. 31, 2022
Goodwill [Roll Forward]
Beginning balance	$ 63,229	$ 59,910
Acquisition		3,409
Foreign currency translation	89	(90)
Ending balance	$ 63,318	$ 63,229

- Definition

Amount after accumulated impairment loss of an asset representing future economic benefits arising from other assets acquired in a business combination that are not individually identified and separately recognized.

+ References + Details

Cover - USD ($) $ in Billions	12 Months Ended
Cover - USD ($) $ in Billions	Dec. 31, 2023	Feb. 16, 2024	Jun. 30, 2023
Cover [Abstract]
Document Type	10-K
Document Annual Report	true
Document Period End Date	Dec. 31, 2023
Current Fiscal Year End Date	--12-31
Document Transition Report	false
Entity File Number	001-35618
Entity Registrant Name	LegalZoom.com, Inc.
Entity Incorporation, State or Country Code	DE
Entity Tax Identification Number	95-4752856
Entity Address, Address Line One	101 North Brand Boulevard
Entity Address, Address Line Two	11th Floor
Entity Address, City or Town	Glendale
Entity Address, State or Province	CA
Entity Address, Postal Zip Code	91203
City Area Code	323
Local Phone Number	962-8600
Title of 12(b) Security	Common Stock, par value $0.001 per share
Trading Symbol	LZ
Security Exchange Name	NASDAQ
Entity Well-known Seasoned Issuer	Yes
Entity Voluntary Filers	No
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
ICFR Auditor Attestation Flag	true
Document Financial Statement Error Correction	false
Entity Shell Company	false
Entity Public Float			$ 1.4
Entity Common Stock, Shares Outstanding		187,933,295
Documents Incorporated by Reference	Portions of the Registrant’s Definitive Proxy Statement relating to its 2024 Annual Meeting of Stockholders are incorporated by reference into Part III of this Annual Report on Form 10-K to the extent stated herein. The Definitive Proxy Statement will be filed with the SEC within 120 days of the Registrant’s fiscal year ended December 31, 2023.
Document Transition Report	false
Document Fiscal Year Focus	2023
Document Fiscal Period Focus	FY
Entity Central Index Key	0001286139

Property and Equipment - Narrative (Details) - USD ($)	12 Months Ended
Property and Equipment - Narrative (Details) - USD ($)	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2021
Property, Plant and Equipment [Line Items]
Depreciation and amortization expense	$ 20,200,000	$ 18,200,000	$ 15,700,000
Capitalized development costs	35,000,000	21,400,000	9,900,000
Impaired capitalized development costs	0	0	900,000
Internal-use software
Property, Plant and Equipment [Line Items]
Accumulated amortization	47,600,000	41,000,000
Amortization expense	$ 17,600,000	$ 14,600,000	$ 11,600,000

Intangible Assets, net - Schedule of Finite-Lived Intangible Assets, Future Amortization Expense (Details) - USD ($) $ in Thousands	Dec. 31, 2023	Dec. 31, 2022
Goodwill and Intangible Assets Disclosure [Abstract]
2024	$ 5,082
2025	4,510
2026	2,670
2027	1,473
Net Carrying Amount	$ 13,735	$ 18,900

Fair Value Measurements (Tables)

12 Months Ended

Dec. 31, 2023

Fair Value Disclosures [Abstract]

Schedule of Assets and Liabilities that are Measured at Fair Value on a Recurring Basis

The following tables summarize our assets and liabilities that are measured at fair value on a recurring basis, by level, within the fair value hierarchy (in thousands):


	As of December 31, 2023
	Level 1		Level 2		Level 3
Available-for-sale debt securities	$	—	$	—	$	1,159
Money market funds	208,970		—		—
Total assets	$	208,970	$	—	$	1,159


	As of December 31, 2022
	Level 1		Level 2		Level 3
Available-for-sale debt securities	$	—	$	—	$	995
Money market fund	130,215		—		—
Total assets	$	130,215	$	—	$	995
Contingent consideration	—		—		836
Total liabilities	$	—	$	—	$	836

Stock-based Compensation - Schedule of Fair Value Assumptions and Techniques for Stock Options (Details)	12 Months Ended
	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2021
Share-Based Payment Arrangement [Abstract]
Expected life (years)	5 years 10 months 24 days	5 years 7 months 6 days	5 years 4 months 24 days
Risk-free interest rate		2.60%	1.00%
Risk free interest rate, minimum	3.40%
Risk free interest rate, maximum	3.80%
Expected volatility		48.00%	46.00%
Expected volatility, minimum	50.40%
Expected volatility, maximum	50.70%
Expected dividend yield	0.00%	0.00%	0.00%

Income Taxes - Schedule of Income before Income Tax, Domestic and Foreign (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2021
Income Tax Disclosure [Abstract]
Domestic	$ 34,518	$ (49,383)	$ (119,195)
Foreign	(3,024)	1,710	(420)
Income (loss) before income taxes	$ 31,494	$ (47,673)	$ (119,615)

Accumulated Other Comprehensive (Loss) Income

12 Months Ended

Dec. 31, 2023

Stockholders' Equity Note [Abstract]

Accumulated Other Comprehensive (Loss) Income

Changes in accumulated other comprehensive (loss) income consisted of the following:


	Year Ended December 31, 2023
(in thousands)	Before Tax Amount		Tax Effect		Net of Tax Amount
Foreign currency translation adjustments:
Beginning balance	$	1,358	$	—	$	1,358
Change during period	(1,370)		—		(1,370)
Ending balance	$	(12)	$	—	$	(12)
Available-for-sale debt securities:


	Year Ended December 31, 2023
(in thousands)	Before Tax Amount		Tax Effect		Net of Tax Amount
Beginning balance	$	184	$	(45)	$	139
Unrealized gains	140		(35)		105
Ending balance	$	324	$	(80)	$	244
Accumulated other comprehensive income:
Beginning balance	$	1,542	$	(45)	$	1,497
Other comprehensive loss	(1,230)		(35)		(1,265)
Ending balance	$	312	$	(80)	$	232


	Year Ended December 31, 2022
(in thousands)	Before Tax Amount		Tax Effect		Net of Tax Amount
Foreign currency translation adjustments:
Beginning balance	$	(2,078)	$	—	$	(2,078)
Change during period	3,436		—		3,436
Ending balance	$	1,358	$	—	$	1,358
Available-for-sale debt securities:
Beginning balance	$	331	$	(48)	$	283
Unrealized loss	(147)		3		(144)
Ending balance	$	184	$	(45)	$	139







Accumulated other comprehensive loss:
Beginning balance	$	(1,747)	$	(48)	$	(1,795)
Other comprehensive income	3,289		3		3,292
Ending balance	$	1,542	$	(45)	$	1,497


	Year Ended December 31, 2021
(in thousands)	Before Tax Amount		Tax Effect		Net of Tax Amount
Foreign currency translation adjustments:
Beginning balance	$	(3,014)	$	—	$	(3,014)
Change during period	936		—		936
Ending balance	$	(2,078)	$	—	$	(2,078)
Available-for-sale debt securities:
Beginning balance	$	281	$	(36)	$	245
Unrealized gains	50		(12)		38

Ending balance	$	331	$	(48)	$	283
Cash flow hedges:
Beginning balance	$	(14,708)	$	3,650	$	(11,058)
Unrealized gain on interest rate swaps and cap	2,897		(1,449)		1,448
Reclassification of losses from interest rate cap to net loss	28		(8)		20
Reclassification of prior hedge effectiveness to net loss	3,076		(781)		2,295
Reclassification to net loss upon extinguishment of interest rate swaps	$	8,707	$	(1,412)	7,295
Ending balance	$	—	$	—	$	—
Accumulated other comprehensive loss:


	Year Ended December 31, 2021
(in thousands)	Before Tax Amount		Tax Effect		Net of Tax Amount
Beginning balance	$	(17,441)	$	3,614	$	(13,827)
Other comprehensive income	15,694		(3,662)		12,032
Ending balance	$	(1,747)	$	(48)	$	(1,795)

Intangible Assets, net (Tables)

12 Months Ended

Dec. 31, 2023

Goodwill and Intangible Assets Disclosure [Abstract]

Schedule of Finite-Lived Intangible Assets

Intangible assets, net, consisted of the following (in thousands):


	As of December 31, 2023
	Remaining Weighted average useful life (in years)	Gross Carrying Amount		Accumulated Amortization		Net Carrying Amount
Customer relationships	3.8	$	12,088	$	5,314	$	6,774
Developed technology	2.2	14,281		7,412		6,869
Trade names	1.0	358		339		19
Assembled workforce	1.8	$	125	$	52	73
Total intangible assets		$	26,852	$	13,117	$	13,735


	As of December 31, 2022
	Remaining Weighted average useful life (in years)	Gross Carrying Amount		Accumulated Amortization		Net Carrying Amount
Customer relationships	4.8	$	17,841	$	9,300	$	8,541
Developed technology	3.2	16,813		6,689		10,124
Trade names	1.3	503		383		120
Assembled workforce	2.8	125		10		115
Total intangible assets		$	35,282	$	16,382	$	18,900

Schedule of Finite-Lived Intangible Assets, Future Amortization Expense

At December 31, 2023, estimated future intangible assets amortization expense was as follows (in thousands):


For Years Ending December 31,
2024	$	5,082
2025	4,510
2026	2,670
2027	1,473

Total future amortization expense	$	13,735

Accumulated Other Comprehensive (Loss) Income (Tables)

12 Months Ended

Dec. 31, 2023

Stockholders' Equity Note [Abstract]

Schedule of Changes in Accumulated Other Comprehensive (Loss) Income

Changes in accumulated other comprehensive (loss) income consisted of the following:


	Year Ended December 31, 2023
(in thousands)	Before Tax Amount		Tax Effect		Net of Tax Amount
Foreign currency translation adjustments:
Beginning balance	$	1,358	$	—	$	1,358
Change during period	(1,370)		—		(1,370)
Ending balance	$	(12)	$	—	$	(12)
Available-for-sale debt securities:


	Year Ended December 31, 2023
(in thousands)	Before Tax Amount		Tax Effect		Net of Tax Amount
Beginning balance	$	184	$	(45)	$	139
Unrealized gains	140		(35)		105
Ending balance	$	324	$	(80)	$	244
Accumulated other comprehensive income:
Beginning balance	$	1,542	$	(45)	$	1,497
Other comprehensive loss	(1,230)		(35)		(1,265)
Ending balance	$	312	$	(80)	$	232


	Year Ended December 31, 2022
(in thousands)	Before Tax Amount		Tax Effect		Net of Tax Amount
Foreign currency translation adjustments:
Beginning balance	$	(2,078)	$	—	$	(2,078)
Change during period	3,436		—		3,436
Ending balance	$	1,358	$	—	$	1,358
Available-for-sale debt securities:
Beginning balance	$	331	$	(48)	$	283
Unrealized loss	(147)		3		(144)
Ending balance	$	184	$	(45)	$	139







Accumulated other comprehensive loss:
Beginning balance	$	(1,747)	$	(48)	$	(1,795)
Other comprehensive income	3,289		3		3,292
Ending balance	$	1,542	$	(45)	$	1,497


	Year Ended December 31, 2021
(in thousands)	Before Tax Amount		Tax Effect		Net of Tax Amount
Foreign currency translation adjustments:
Beginning balance	$	(3,014)	$	—	$	(3,014)
Change during period	936		—		936
Ending balance	$	(2,078)	$	—	$	(2,078)
Available-for-sale debt securities:
Beginning balance	$	281	$	(36)	$	245
Unrealized gains	50		(12)		38

Ending balance	$	331	$	(48)	$	283
Cash flow hedges:
Beginning balance	$	(14,708)	$	3,650	$	(11,058)
Unrealized gain on interest rate swaps and cap	2,897		(1,449)		1,448
Reclassification of losses from interest rate cap to net loss	28		(8)		20
Reclassification of prior hedge effectiveness to net loss	3,076		(781)		2,295
Reclassification to net loss upon extinguishment of interest rate swaps	$	8,707	$	(1,412)	7,295
Ending balance	$	—	$	—	$	—
Accumulated other comprehensive loss:


	Year Ended December 31, 2021
(in thousands)	Before Tax Amount		Tax Effect		Net of Tax Amount
Beginning balance	$	(17,441)	$	3,614	$	(13,827)
Other comprehensive income	15,694		(3,662)		12,032
Ending balance	$	(1,747)	$	(48)	$	(1,795)

Assets Held for Sale (Tables)

12 Months Ended

Dec. 31, 2023

Discontinued Operations and Disposal Groups [Abstract]

Schedule of Disclosure of Long-Lived Assets Held-for-sale

At December 31, 2023, the total carrying value of the assets held for sale remains at $22.7 million as follows:


	December 31, 2023
Land	$	6,400
Building and building improvements	16,322
Total assets held for sale	$	22,722

Summary of Significant Accounting Policies - Additional Information (Details) $ in Thousands	12 Months Ended
	Dec. 31, 2023 USD ($) segment	Dec. 31, 2022 USD ($)	Dec. 31, 2021 USD ($)	Jan. 01, 2022 USD ($)
Accounting Policies [Line Items]
Number of operating segments \| segment	1
Foreign currency transaction gains (losses)	$ 1,387	$ (3,558)	$ (943)
Cash equivalents	209,000	130,200
Operating lease assets	8,518	11,148		$ 5,700
Present value of lease liabilities	9,018			$ 5,900
Loss on debt extinguishment	0	0	7,748
Stock issuance costs			5,636
Advertising expense	145,300	174,600	195,400
Cost of revenue
Accounting Policies [Line Items]
Filing fees	88,100	74,100	$ 79,800
Prepaid Expenses and Other Current Assets
Accounting Policies [Line Items]
Deferred cost of revenue	$ 1,700	$ 1,900
Minimum
Accounting Policies [Line Items]
Remaining Weighted average useful life (in years)	2 years
Maximum
Accounting Policies [Line Items]
Remaining Weighted average useful life (in years)	6 years
Purchased and internally developed internal-use software
Accounting Policies [Line Items]
Estimated useful life	3 years
Outside United States \| Revenue Benchmark \| Geographic Concentration Risk
Accounting Policies [Line Items]
Concentration risk percentage	1.00%	1.00%	1.00%

Acquisitions - Schedule of Business Acquisitions, by Acquisition (Details) - USD ($) $ in Thousands	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2021	Nov. 30, 2021
Business Acquisition [Line Items]
Goodwill	$ 63,318	$ 63,229	$ 59,910
Minimum
Business Acquisition [Line Items]
Estimated useful life of intangible assets	2 years
Maximum
Business Acquisition [Line Items]
Estimated useful life of intangible assets	6 years
Customer relationships
Business Acquisition [Line Items]
Estimated useful life of intangible assets	3 years 9 months 18 days	4 years 9 months 18 days
Developed technology
Business Acquisition [Line Items]
Estimated useful life of intangible assets	2 years 2 months 12 days	3 years 2 months 12 days
Trade names
Business Acquisition [Line Items]
Estimated useful life of intangible assets	1 year	1 year 3 months 18 days
Earth Class Mail
Business Acquisition [Line Items]
Goodwill				$ 48,617
Property and equipment				267
Deferred tax liability				(3,087)
Other liabilities				(787)
Total purchase consideration				$ 61,210
Earth Class Mail \| Minimum
Business Acquisition [Line Items]
Estimated useful life of property and equipment				3 years
Earth Class Mail \| Maximum
Business Acquisition [Line Items]
Estimated useful life of property and equipment				5 years
Earth Class Mail \| Customer relationships
Business Acquisition [Line Items]
Estimated fair value of intangible assets				$ 10,603
Estimated useful life of intangible assets				6 years
Earth Class Mail \| Developed technology
Business Acquisition [Line Items]
Estimated fair value of intangible assets				$ 5,418
Estimated useful life of intangible assets				5 years
Earth Class Mail \| Trade names
Business Acquisition [Line Items]
Estimated fair value of intangible assets				$ 179
Estimated useful life of intangible assets				26 months

Goodwill

12 Months Ended

Dec. 31, 2023

Goodwill and Intangible Assets Disclosure [Abstract]

Goodwill

The changes in goodwill for 2023 and 2022 were as follows (in thousands):


	Amount
Balance as of December 31, 2021	$	59,910
Acquisition	3,409
Foreign currency translation	(90)
Balance as of December 31, 2022	63,229

Foreign currency translation	89
Balance as of December 31, 2023	$	63,318

As discussed in Note 5, we acquired UA Services in August 2022.

Summary of Significant Accounting Policies (Policies)

12 Months Ended

Dec. 31, 2023

Accounting Policies [Abstract]

Basis of Presentation and Consolidation

The accompanying consolidated financial statements are presented in accordance with accounting principles generally accepted in the United States of America, or GAAP. All intercompany balances and transactions have been eliminated in consolidation.

On occasion, we enter into relationships or investments with other entities that may be a variable interest entity, or VIE. We analyze our interests, including agreements, loans, guarantees, and equity investments on a periodic basis to determine if such interests are variable interests. If variable interests are identified, then the related entity is assessed to determine if it is a VIE. If we determine that the entity is a VIE, we then assess if we must consolidate the VIE as the primary beneficiary. Our determination of whether we are the primary beneficiary is based upon qualitative and quantitative analyses, which assess the purpose and design of the VIE, the nature of the VIE’s risks and the risks that we absorb, the power to direct activities that most significantly impact the economic performance of the VIE, and the obligation to absorb losses or the right to receive benefits that could be significant to the VIE.

Beginning in the fourth quarter of 2023, we include partner revenue in transaction and subscription revenue to conform with how we evaluate our performance. This change had no impact on total revenue. Prior period disaggregated revenue disclosures have been conformed to the current period presentation.

Reclassifications

Certain other reclassifications have been made to prior periods amounts to conform to the current period presentation.

Use of Estimates

The preparation of financial statements in conformity with GAAP requires estimates and assumptions that affect the reported amounts of assets and liabilities, revenue and expenses, and related disclosures of contingent liabilities in the consolidated financial statements and accompanying notes. Estimates are used for, however not limited to, revenue recognition, sales allowances and expected credit loss allowances, available-for-sale debt securities, other equity securities, recoverability of long-lived assets and goodwill, income taxes, commitments and contingencies, valuation of assets and liabilities acquired in business combinations, valuation of assets in asset acquisitions, fair value of derivative instruments and stock-based compensation. Actual results could differ materially from those estimates. On an ongoing basis, we evaluate the estimates compared to historical experience and other factors including the current economic and regulatory environment, which form the basis for our judgments about the carrying value of assets and liabilities.

Business Combinations

The results of businesses acquired in a business combination are included in our consolidated financial statements from the date of the acquisition. Purchase accounting results in assets and liabilities of an acquired business being recorded at their estimated fair values on the acquisition date. Any excess purchase consideration over the fair value of assets acquired and liabilities assumed is recognized as goodwill.

We perform valuations of assets acquired and liabilities assumed for an acquisition and allocate the purchase price to their respective net tangible and intangible assets. Determining the fair value of assets acquired and liabilities assumed requires management to use judgment and estimates, including the selection of valuation methodologies, estimates of cash flows, discount rates and selection of comparable companies. We generally engage the assistance of a third-party valuation firm in determining fair values of assets acquired and liabilities assumed and contingent consideration, if any, in a business combination.

Transaction costs associated with business combinations are expensed as incurred and are included in general and administrative expenses in the accompanying consolidated statements of operations.

Asset Acquisitions

We evaluate acquisitions to determine whether the acquisition should be classified as either a business combination or an asset acquisition. Acquisitions for which substantially all of the fair value of the gross assets acquired are concentrated in a single identifiable asset or a group of similar identifiable assets are accounted for as an asset acquisition. If the gross assets are not concentrated in a single asset or group of similar assets, we then determine if the set of assets acquired represents a business. A business is an integrated set of activities and assets capable of being conducted and managed for the purpose of providing a return. Depending on the nature of the acquisition, judgment may be required to determine if the set of assets acquired is a business combination or not. We allocate the purchase price on a relative fair value basis and capitalize direct acquisition related costs as part of the purchase price. In making estimates of fair values for purposes of allocating the purchase price, we utilize an independent third-party to value the net tangible and identified intangible assets in connection with the acquisition.

Segment and Geographic Information

Our Chief Executive Officer, as the Chief Operating Decision Maker organizes our company, manages resource allocations, and measures performance on the basis of one operating segment.

Foreign Currency

The British Pound Sterling is the functional currency for our foreign subsidiaries domiciled in the U.K. The financial statements of these foreign subsidiaries are translated to U.S. Dollars using period-end rates of exchange for assets and liabilities, historical rates of exchange for equity, and average rates of exchange for the period for revenue and expenses. Translation gains and losses are recorded in accumulated other comprehensive (loss) income as a component of our consolidated statements of redeemable convertible preferred stock and stockholders’ equity.

Fair Value Measurements

Fair value is defined as the price that would be received from selling an asset, or paid to transfer a liability, in an orderly transaction between market participants at the measurement date. The standard establishes a fair value hierarchy based on the level of independent, objective evidence surrounding the inputs

used to measure fair value. A financial instrument’s categorization within the fair value hierarchy is based upon the lowest level of input that is significant to the fair value measurement. The fair value hierarchy is as follows:


Level 1 —			Quoted prices in active markets for identical assets and liabilities.
Level 2 —			Quoted prices for identical assets and liabilities in markets that are not active, quoted prices for similar assets and liabilities in active markets or financial instruments for which significant inputs are observable, either directly or indirectly.
Level 3 —			Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities.

At December 31, 2023 and 2022, our financial assets recorded at fair value on a recurring basis consist of cash equivalents and available-for-sale debt securities. At December 31, 2022, our financial liabilities recorded at fair value on a recurring basis consisted of contingent consideration from the acquisition of United Agency Services Corp, or UA Services. The cash equivalent consists of money market funds valued using quoted prices in active markets, which represents Level 1 inputs in the fair value hierarchy. The available-for-sale debt securities are valued using a Monte Carlo simulation, which include inputs that represent Level 3 inputs in the fair value hierarchy. Contingent consideration is valued using the present value and probability of the estimated future cash outflow, which include inputs that represent Level 3 inputs in the fair value hierarchy.

The carrying amounts of accounts receivable, accounts payable and accrued expenses and other current liabilities approximate fair values because of the short-term nature of these items.

Concentrations of Credit Risk

We maintain accounts in U.S. and U.K. banks with funds insured by the Federal Deposit Insurance Corporation, or FDIC, and the Financial Services Compensation Scheme, or FSCS, respectively. Our bank accounts may, at times, exceed the FDIC and FSCS insured limits. Financial instruments that potentially subject us to credit risk consist principally of cash and cash equivalents. Management believes that we are not exposed to any significant credit risk related to our cash or cash equivalents and have not experienced any losses in such accounts.

Cash and Cash Equivalents

Cash and cash equivalents consist of highly liquid investments with original maturities of ninety days or less at the date of purchase.

Accounts Receivable and Allowance for Credit Losses

Our accounts receivable balances, which are not collateralized and do not bear interest, primarily consist of amounts receivable from our credit and debit card merchant processors, customer receivables, and fees due from third-parties for services purchased by our customers from such third-parties. We reduce our accounts receivable for sales allowances and a reserve for potentially uncollectible receivables. We determine the amount of the allowances based on various factors, including historical collection experience, the age of the accounts receivable balances, credit quality of our customers, current economic conditions, reasonable and supportable forecasts of future economic conditions, and other factors that may affect our ability to collect from customers. Account balances are charged off against the allowance when we determine that it is not probable we will collect the receivable.

Property and Equipment

Property and equipment are stated at cost, less accumulated depreciation. Repairs and maintenance are expensed as incurred whereas significant renewals and enhancements are capitalized. When assets are retired or otherwise disposed of, the cost and the related accumulated depreciation are removed from the respective

accounts and any resulting gain or loss is reflected in our results of operations.

Internal-use Software and Cloud Computing Arrangements

Software development costs include costs to develop software to be used to meet internal needs and applications used to deliver our services. We capitalize development costs related to these software applications once the preliminary project stage is complete and it is probable that the project will be completed and the software will be used to perform the function intended. We amortize internal-use software costs on a straight-line basis over their estimated useful life of three years commencing when the internal-use software is substantially complete and ready for its intended purpose. Costs related to development of internal-use software are included in the accompanying consolidated balance sheets in property and equipment, net. Costs related to implementation of cloud computing arrangements that do not include a software license are included in the accompanying consolidated balance sheets in prepaid expenses and other current and non-current assets and are amortized over the contractual term of the underlying service arrangement.

Intangible Assets and Other Long-Lived Assets

Intangible assets are stated at cost, net of accumulated amortization. Intangible assets with finite lives are amortized on a straight-line basis over their estimated useful lives, which approximates the pattern in which the economic benefits are consumed. We amortize our intangible assets over an estimated useful life of two to six years.

We assess the impairment of long-lived assets, which consist primarily of property and equipment, right of use assets, acquired intangible assets, and capitalized internal-use software costs, whenever events or changes in circumstances indicate that such assets might be impaired and the carrying value may not be recoverable. Impairment testing is performed at an asset level that represents the lowest level for which identifiable cash flows are largely independent of the cash flows of other assets and liabilities, or an asset group. If an asset group is considered impaired, an impairment loss equal to the excess of the asset group’s carrying value over their fair value is recorded. Fair value is determined based on the present value of estimated expected future cash flows using a discount rate commensurate with the risk involved, quoted market prices, or appraised values, depending on the nature of the assets.

Goodwill

Goodwill represents the excess of the aggregate fair value of the consideration transferred in a business combination over the fair value of the assets acquired, net of liabilities assumed. Goodwill is not amortized, however, it is subject to impairment testing at the reporting unit level annually during the fourth quarter of our fiscal year or more frequently if events or changes in circumstances indicate that goodwill may be impaired.

In assessing impairment, we have the option to first assess qualitative factors to determine whether or not a reporting unit is impaired. Alternatively, we may perform a quantitative impairment assessment, or if the qualitative assessment indicates that it is more-likely-than-not that the reporting unit’s fair value is less than its carrying amount, a quantitative analysis is required. The quantitative analysis compares the estimated fair value of the reporting unit with its respective carrying amount, including goodwill. If the estimated fair value of the reporting unit exceeds its carrying amount including goodwill, goodwill is considered not to be impaired. If the fair value is less than the carrying amount including goodwill, then a goodwill impairment charge is recorded by the amount that the carrying value exceeds the fair value, up to the carrying amount of goodwill.

Derivative Financial Instruments

Prior to our IPO in 2021, derivative financial instruments, which included interest rate swaps, an interest rate cap, and a financial guarantee relating to a former executive officer, were recorded at fair value. For derivatives that qualified for hedge accounting, specifically as cash flow hedges, the change in fair value of the derivatives was recorded as an unrealized gain (loss), net of taxes, in the accompanying consolidated statements of comprehensive (loss) income. For derivatives that did not qualify for hedge accounting, the change in the fair value of our derivatives related to our long-term debt were recorded in interest expense, net, and the change in the fair value of our financial guarantee was recorded in other income, net, in the accompanying consolidated statements of operations. In 2021, our derivative positions were extinguished in connection with our IPO and full repayment of our long-term debt.

Available-for-sale Debt Securities

At December 31, 2023 and 2022, we held long-term investments of certain privately held companies through the purchase of convertible promissory notes. These investments are classified as available-for-sale debt securities. For available-for-sale debt securities that have the estimated fair values below their amortized cost basis, we evaluate our intent to sell the security or whether we will more likely than not be required to sell the security before recovery of its amortized cost basis. If either of these criteria are met, the security’s amortized cost basis is written down to its fair value through earnings. If these criteria are not met, we evaluate whether the decline in fair value has resulted from credit loss or other factors. If the assessment indicates a credit loss exists, the credit-related portion of the loss is recorded as allowance for credit loss with a corresponding credit loss expense, included in the consolidated statement of operations. If the assessment indicates a credit loss does not exist, impairment is recognized in other comprehensive (loss) income, net of applicable taxes.

Investments in Other Equity Securities

We hold investments in equity securities of certain privately held companies, which do not have readily determinable fair values. We have elected to measure these non-marketable investments at cost, with remeasurements to fair value only upon the occurrence of observable price changes in orderly transactions for identical or similar securities of the same issuer, or in the event of any impairment. This election is reassessed each reporting period to determine whether a non-marketable equity security has a readily determinable fair value, in which case they would no longer be eligible for this election. We evaluate our non-marketable equity securities for impairment at each reporting period based on a qualitative assessment that considers various potential impairment indicators. If an impairment exists, a loss is recognized in the consolidated statements of operations for the amount by which the carrying value exceeds the fair value of the investment. We include investments in equity securities within other assets in the accompanying consolidated balance sheets.

Held for Sale

We classify long-lived assets or asset groups we plan to sell as held for sale on our consolidated balance sheets only after certain criteria have been met including: management has the authority and commits to a plan to sell the asset, the asset is available for immediate sale in its present condition, an active program to locate a buyer and the plan to sell the asset have been initiated, the sale of the asset is probable within twelve months, the asset is being actively marketed at a reasonable sales price relative to its current fair value, and it is unlikely that the plan to sell will be withdrawn or that significant changes to the plan will be made. We record assets or asset groups held for sale at the lower of their carrying value or fair value less costs to sell. Once classified as held for sale, depreciation and amortization is not recorded for any long-lived assets.

Leases

On January 1, 2022, we adopted Financial Accounting Standards Board, or FASB, Accounting Standards Codification, or ASC, No. 842, Leases, and related amendments, using the modified retrospective method. Financial information related to periods prior to adoption is as originally reported under the FASB, ASC No. 840, Leases. On January 1, 2022, we recorded operating lease ROU assets of $5.7 million and operating lease liabilities of $5.9 million. The difference between the leased assets and lease liabilities represents the existing deferred rent liabilities balance at adoption, resulting from historical straight-line recognition of operating leases, which was reclassified upon adoption to reduce the measurement of the leased assets. The adoption of the standard did not have a material impact on our stockholders’ equity, results of operations, or cash flows.

The new standard provides several optional practical expedients in transition. We elected the package of practical expedients permitted under the transition guidance, which eliminates the requirement to reassess whether a contract contains a lease and lease classification.

We have also made accounting policy elections, including a short-term lease exception policy, permitting us to not apply the recognition requirements of this standard to short-term leases, which are leases with expected terms of twelve months or less, and an accounting policy to account for lease and certain non-lease components as a single component for certain classes of assets. Additionally, we used the portfolio approach when applying the discount rate selected based on the dollar amount and term of the obligation.

We determined whether an arrangement is a lease, or contains a lease, at inception if we are able to identify an asset and can conclude we have the right to control the identified asset for a period of time. Leases are included in operating lease ROU assets and operating lease liabilities in the accompanying consolidated balance sheets. Leases with an initial term of twelve months or less are not recorded in our accompanying consolidated balance sheet.

ROU assets represent our right to control an underlying asset for the lease term, and lease liabilities represent our obligation to make lease payments arising from the lease. ROU assets and operating lease liabilities are recognized at commencement date based on the present value of lease payments over the lease term. As our leases do not provide an implicit rate, we use the incremental borrowing rate based on the information available at commencement date in determining the discount rate used to present value lease payments. We used the incremental borrowing rate on January 1, 2022 for operating leases that commenced on or prior to that date. The incremental borrowing rate used is estimated based on what we would be required to pay for a collateralized loan over a similar term. Our leases typically do not include any residual value guarantees, bargain purchase options, or asset retirement obligations.

Our lease terms are only for periods in which we have enforceable rights. A lease is no longer enforceable when both the lessee and the lessor each have the right to terminate the lease without permission from the other party with no more than an insignificant penalty. Our lease terms are impacted by options to extend or terminate the lease when it is reasonably certain that we will exercise that option. We generally use the base, non-cancelable lease term when determining the lease assets and liabilities.

Our agreements may contain variable lease payments. We include variable lease payments that depend on an index or a rate and exclude those which depend on facts or circumstances occurring after the commencement date, other than the passage of time.

Debt Issuance Costs

Debt issuance costs associated with our term loans are deducted from the carrying value of current and long-term debt in the accompanying consolidated balance sheets and are amortized over the term of the loan using the effective interest method. Debt issuance costs associated with revolving facilities are classified as other assets in the accompanying consolidated balance sheets and are amortized over the term of the respective facility on a straight-line basis over the term of the revolving facilities. Debt issuance costs are amortized to interest expense, net in the accompanying consolidated statements of operations.

Deferred Offering Costs

We record certain legal, accounting, and other third-party fees in other assets that are directly associated with in-process equity financings until such financings are consummated. After consummation, these costs are recorded in stockholders’ equity as a reduction from the proceeds of the offering. Should the equity financing no longer be considered probable of being consummated, the deferred offering costs are expensed in the consolidated statements of operations within income from operations.

Revenue Recognition

We derive our revenue from the following sources:

Transaction revenue—Transaction revenue is primarily generated from our customized legal document services upon fulfillment of these services. Transaction revenue includes filing fees and is net of cancellations, promotional discounts, sales allowances and credit reserves. Tax preparation services are recognized at the point in time when the customer’s tax return is filed and accepted by the applicable government authority. We also earn fees from third-party providers from leads generated to such providers through our online legal platform.

Subscription revenue—Subscription revenue is generated primarily from subscriptions to our registered agent, compliance packages, attorney advice, legal forms, tax and accounting, virtual mail and e-signature services, and software-as-a-service, or SaaS, accounting solution subscriptions and SaaS subscriptions in the

U.K. We generally recognize revenue from our subscriptions ratably over the subscription term. Subscription terms generally range from thirty days to one year. Subscription revenue includes the transaction price allocated to bundled free trials for our subscription services and is net of promotional discounts, cancellations, sales allowances and credit reserves and payments to third-party service providers.

For transaction and subscription revenue, we generally collect payments and fees at the time orders are placed and prior to services being rendered. We record amounts collected for services that have not been performed as deferred revenue on our consolidated balance sheet. The transaction price that we record is generally based on the contractual amounts and is reduced for estimated sales allowances for price concessions, charge-backs, sales credits and refunds, which are accounted for as variable consideration when estimating the amount of revenue to recognize.

We determine revenue recognition through the following five steps: identification of a contract with a customer; identification of the performance obligations in the contract; determination of the transaction price; allocation of the transaction price to the performance obligations in the contract; and recognition of revenue when or as the performance obligations are satisfied.

Our customers generally pay for transactions in advance by credit or debit card except for certain services provided under installment plans where we allow customers to pay for their order in three equal payments. The first installment due under the installment plans is charged to the customer’s debit or credit card on the date the order is placed, and the remaining installments are generally charged on a monthly basis thereafter. We recognize revenue for the amount we expect to be entitled to for providing the services to our customers. The total fees collected by us for our services include, as applicable, expedited services fees, government filing fees and shipping fees.

Subscription services are generally paid monthly or annually in advance of the subscription period except for SaaS services in the U.K., which are invoiced monthly in arrears. Amounts collected in advance of revenue recognition are recorded in deferred revenue. Customers may pay for services, however, may not provide the necessary information to complete a transaction. We attempt to contact the customer to complete the abandoned order. We recognize revenue on abandoned services, or breakage, when it is likely to occur and the amount can be recognized without significant risk of reversal. We recognize breakage in proportion to the pattern of rights exercised by the customer. Judgment is required to determine the amount of breakage and when breakage is likely to occur, which we estimate based on historical data of breakage for similar services.

Services we offer can generally either be purchased on a stand-alone basis or bundled together as part of a package of services. Accordingly, a significant number of our arrangements include multiple performance obligations, such as the preparation of legal documents combined with related document revision, registered agent services, and free trial periods of our legal plans. At contract inception, we assess the services promised in our contracts with customers and identify performance obligations for each promise to transfer to the customer a service or bundle of services that is distinct. The identification of distinct performance obligations within our packages may require significant judgment.

The transaction price allocated to each separate performance obligation represents the amount of consideration to which we expect to be entitled in exchange for the services we provide. The transaction price is based on the contractual amounts in our contracts and is reduced for estimated sales allowances for price concessions, charge-backs, sales credits and refunds, which are accounted for as variable consideration when estimating the amount of revenue to recognize. We only include variable consideration in the transaction price to the extent that it is probable that a significant reversal in the amount of cumulative revenue recognized will not occur. We estimate sales allowances using the expected value method. We recognize a liability or a reduction of accounts receivable, and a reduction to revenue based on the estimated amount of sales allowances. We record sales allowances as a reduction of accounts receivable where we expect not to collect the full amount of the outstanding accounts receivable and we record sales allowances as a liability for estimated refunds or credits where we have collected the amounts due from the customer. We have established a sufficient history of estimating sales allowances given the large number of homogeneous transactions. The majority of our allowances and reserves are known within a relatively short period of time following our balance sheet date. The estimated provision for sales allowances has varied from actual results within ranges consistent with management’s expectations. The transaction price excludes sales taxes.

Contracts with our customers may include options to purchase additional future services, and in the case of subscription services, options to auto-renew the subscription service. Additional consideration attributable to either the option to purchase additional future services or the option to renew are excluded from the transaction price until such time that the option is exercised, unless these options provide a material right to the customer.

For arrangements that contain multiple performance obligations, such as our bundled arrangements, we allocate the transaction price to each performance obligation based on estimates of the standalone selling price of each performance obligation within the bundle. For the services we sell on a standalone basis, we use the sales price of these services in the allocation of the transaction price in bundled arrangements. Where we do not sell the service on a standalone basis, we estimate the standalone selling price based on the adjusted market assessment approach or the expected cost plus a margin approach when market information is not observable. In these cases, the determination of the standalone selling price may require significant judgment.

We recognize revenue when we satisfy the performance obligation by transferring the promised good or service to the customer. For our transaction-based services, we generally recognize revenue at a point-in-time when the services are delivered to the customer. For our subscription-based services we generally recognize revenue on a straight-line basis over the subscription term. Revenue earned from leads generated to third-party providers is recognized at a point-in-time when the related performance-based criteria have been met. We assess whether performance criteria have been met on a cost-per-click or cost-per-action basis.

We have elected the practical expedient not to adjust the promised amount of consideration for the effects of a significant financing component if the period between revenue recognition and when the customer pays for the product or service will be one year or less.

Principal Agent Considerations

In certain of our arrangements, another party may be involved in providing services to our customer. We evaluate whether we can recognize revenue gross as a principal or net as an agent. We record revenue on a gross basis when we are the principal in the arrangement. To determine whether we are a principal or an agent, we identify the specified good or service to be provided to the customer and assess whether we control the specified good or service before that good or service is transferred to the customer. We evaluate a number of indicators of whether we control the good or service before it is transferred to the customer, including whether we have primary fulfillment responsibility and obligation to perform the services being sold to the customer; we have latitude in establishing the sales price; and we have inventory risk.

In arrangements in which we are the principal, we record as revenue the amounts we have billed to our customer, net of sales allowance, and we record the fee payable to the third-party as cost of revenue. We are the principal in most of our legal document preparation and registered agent services, including legal entity formations and similar arrangements and formation in the U.K. and since December 2021, tax advisory and preparation services through our fulfilled tax subscription, LZ Tax. For these services, revenue includes filing and similar fees. Our alternative business structures, or ABS, offer legal advisory services that are marketed through our websites. Our ABS provides independent legal advice to our customers and is directly responsible for, and control the fulfillment of, the legal services. Accordingly, for services provided by our ABS, we recognize revenue as the principal.

In arrangements in which we are not the principal, we record revenue on a net basis, which is equal to the amount billed to our customer, net of sales allowances and the fee payable to the third-party or partner that is primarily responsible for performing the services for the customer. Except for our Arizona ABS, we are not a law firm in the U.S. and cannot provide legal advice through our U.S. entities. Therefore, the participating independent law firms in our legal plans control the service to the customer and have the primary service obligation to provide attorney consultations to our customers, for which we pay the law firms a monthly fee. For these arrangements, we recognize revenue on a net basis as an agent. For other services provided by third-parties, including deed transfer, accounting, tax, business data protection, revenue is recognized net of fees payable to third-parties. For revenue earned from leads generated to third-party providers, we receive a fee for the referral of our customer to a third-party provider or we retain a portion of the fee paid by the customer and share the remainder with a third-party. The third-party providers control the service to the customer and are responsible for fulfilling the referred service to the customer; accordingly, we recognize revenue for these arrangements on a net basis.

Revenue includes shipping and handling fees charged to customers.

Cost of Revenue

Cost of revenue includes all costs of providing and fulfilling our services. Cost of revenue primarily includes government filing fees, costs of fulfillment, customer care, including the cost of credentialed professionals for tax, and payroll services, and related benefits, including stock-based compensation, and costs of independent contractors for document preparation, telecommunications and data center costs,

Sales and Marketing Expenses

Sales and marketing expenses consist of customer acquisition media costs, compensation and related benefits, including stock-based compensation for marketing and sales personnel, media production, public relations and other promotional activities, general business development activities, an allocation of depreciation and amortization and allocated overhead. Customer acquisition media costs consist primarily of search engine marketing, television and social media costs. Marketing and advertising costs to promote our services are expensed in the period incurred. Media production costs are expensed the first time the advertisement is aired.

Technology and Development Expenses

Technology and development expenses consist primarily of personnel costs and related benefits, including stock-based compensation, expenses for outside consultants, an allocation of depreciation and amortization and allocated overhead. These expenses include costs incurred in the development and implementation of our products, websites, mobile applications, online legal platform, research and development and related infrastructure. Technology and development expenses are expensed as incurred, except to the extent that such costs are associated with internal-use software costs that qualify for capitalization as previously described under Internal-use Software and Cloud Computing Arrangements.

General and Administrative Expenses

Our general and administrative expenses relate primarily to compensation and related benefits, including stock-based compensation, for executive and corporate personnel, professional and consulting fees, an allocation of depreciation and amortization, allocated overhead and legal costs.

Stock-based Compensation

We estimate the fair value of employee stock-based payment awards on the grant-date and recognize the resulting fair value, net of estimated forfeitures, over the requisite service period. We use the Black-Scholes option pricing model for estimating the fair value of options granted under our stock option plans that vest based on service and performance conditions. The fair value of restricted stock units, or RSUs, that vest based on service and performance conditions is determined based on the value of the underlying common stock at the date of grant. For awards that contain market conditions, we estimate the fair value using a Monte Carlo simulation model. We record expense for awards that contain performance conditions only to the extent that we determine it is probable that the performance condition will be achieved. Expense for awards containing market conditions is not reversed even if the market condition is not achieved. We have elected to treat stock-based payment awards with graded vesting schedules and time-based service conditions as a single award and recognize stock-based compensation on a straight-line basis, net of estimated forfeitures, over the requisite service period. Awards with performance or market conditions are recognized using graded vesting.

The Black-Scholes option pricing model and the Monte Carlo simulation model requires us to make certain assumptions including the fair value of the underlying common stock, the expected term, the expected volatility, the risk-free interest rate and the dividend yield.

The fair value of the shares of common stock underlying stock options and RSUs is based upon our publicly listed share price on the date of grant. Prior to our IPO, the fair value of the shares of common stock was determined by the board of directors. Because there was no public market for our common stock, the board of directors determined the fair value of the common stock at the time of the grant of options and RSUs by considering a number of objective and subjective factors including valuation of comparable companies, sales of common stock to unrelated third-parties, operating and financial performance and general and industry-specific economic outlook, amongst other factors. The fair value was determined in accordance

with applicable elements of the practice aid issued by the American Institute of Certified Public Accountants titled Valuation of Privately Held Company Equity Securities Issued as Compensation.

The expected term of employee stock options represents the weighted-average period that the stock options are expected to remain outstanding. The expected term of options granted is estimated based upon actual historical exercise and post-vesting cancellations, adjusted for expected future exercise behavior.

Because our common stock has limited publicly traded history, we estimate the expected volatility from the historical volatility of selected public companies with comparable characteristics to us, including similarity in size, lines of business, market capitalization and revenue and financial leverage. We determine the expected volatility assumption using the frequency of daily historical prices of comparable public company’s common stock for a period equal to the expected term of the options. We periodically assess the comparable companies and other relevant factors used to measure expected volatility for future stock option grants.

The risk-free interest rate assumption is based upon observed interest rates on the U.S. government securities appropriate for the expected term of our stock options.

The dividend yield assumption is based on our history and expectation of dividend payouts. Other than the special dividends declared in 2021 and 2020, which resulted in corresponding reductions in the exercise price of the stock options, we have not declared or paid any cash dividends on our common stock, and we do not anticipate paying any cash dividends in the foreseeable future.

Stock-based compensation expense is recognized based on awards that are ultimately expected to vest.

Forfeitures are estimated at the time of grant and revised, if necessary, in subsequent periods if actual forfeitures differ from those estimates. Forfeitures are estimated based on our historical experience and future expectations.

The determination of stock-based compensation is inherently uncertain and subjective and involves the application of valuation models and assumptions requiring the use of judgment. If we had made different assumptions, our stock-based compensation expense, and our net income (loss) for the years ended December 31, 2023, 2022, and 2021 may have been materially different.

Loss Contingencies

On occasion we are involved in legal proceedings, claims, and regulatory, indirect tax examinations or government inquiries and investigations that may arise in the ordinary course of business. We record loss contingencies in our consolidated financial statements in the period when they are probable and reasonably estimable. If the amount is probable and we are able to reasonably estimate a range of loss, we accrue the amount that is the best estimate within that range, and if no amount is better than any other in the range, we record the amount at the low end in the range. We disclose those contingencies that we believe are at least reasonably possible but not probable regardless of whether they are reasonably estimable. The likelihood of a loss is determined using several factors including the nature of the matter, advice of our internal and external counsel, previous experience and historical and other relevant information available to us. The determination of the likelihood of loss or the range of loss requires significant management judgment. Legal fees and other costs associated with such actions are expensed as incurred.

Income Taxes

We account for income taxes using the asset and liability method, which requires the recognition of deferred tax assets and liabilities for the expected future tax consequences of events that have been recognized in our consolidated financial statements. Deferred income tax assets and liabilities are measured using enacted tax rates anticipated to be in effect when those tax assets and liabilities are expected to be realized or settled. The effect of a change in tax rates on deferred tax assets and liabilities is recognized in the consolidated statements of operations in the period that includes the enactment date.

We make judgments in evaluating whether deferred tax assets will be recovered from future taxable income. A valuation allowance is established if, based upon the available evidence, it is more likely than not that some or all of the deferred tax assets will not be realized. We consider all available evidence, both positive and negative, including historical levels of income, expectations and risk associated with estimates of future taxable income in assessing the need for a valuation allowance. If our assumptions and consequently our estimates, change in the future, the valuation allowance may be increased or decreased, resulting in an increase or decrease, which may be material, to our provision for income taxes and the related impact on our net income (loss).

We recognize tax benefits from an uncertain position only if it is more likely than not that the tax position will be sustained on examination by the taxing authorities, based on the technical merits. If this threshold is met, we measure the tax benefit as the largest amount of the benefit that is greater than fifty percent likely to be realized upon ultimate settlement. We recognize penalties and interest accrued with respect to uncertain

tax positions as a component of the income tax provision.

Net Income (Loss) Per Share Attributable to Common Stockholders

We apply the two-class method for calculating net income per share. Under the two-class method, in periods where we generate net income, net income is allocated between common stock and other participating securities based on their participation rights. Prior to our IPO, our participating securities consisted of redeemable convertible preferred stock, which participated in dividends, if declared. For periods in which we report a net loss, the participating securities are not contractually obligated to share in our losses, and accordingly, no loss is allocated to the participating securities. Basic net income (loss) per share is calculated by dividing net income (loss) attributable to common stockholders by the weighted-average number of shares of common stock outstanding, net of unvested restricted stock, if any, during the period. We compute diluted net income (loss) per share under the two-class method where income is reallocated between common stock, potential common stock and participating securities. Potential common stock includes stock options, restricted stock units, restricted stock awards and employee stock purchase plans, or ESPPs and RSUs computed using the treasury stock method.

Recent Accounting Pronouncements and Recently Adopted Accounting Pronouncements and Accounting Pronouncements Not Yet Adopted

Recent Accounting Pronouncements

Prior to December 31, 2022, we qualified as an emerging growth company, or EGC, and were allowed by the Jumpstart Our Business Startups Act to delay adoption of new or revised accounting pronouncements applicable to public companies until such pronouncements were made applicable to private companies. We became a large accelerated filer and no longer qualified as an EGC at the conclusion of the year ended December 31, 2022. The adoption dates discussed below for recently adopted accounting pronouncements reflect the transition periods required as a result of becoming a large accelerated filer as of December 31, 2022. We are required to adopt all future new or revised accounting pronouncements in accordance with public company timelines.

Recently Adopted Accounting Pronouncements

In June 2016, the FASB issued Accounting Standards Update, or ASU, 2016-13, Financial Instruments—Credit losses: Measurement of Credit Losses on Financial Instruments (Topic 326), which revises the impairment model to utilize an expected loss methodology in place of the currently used incurred loss methodology, which results in more timely recognition of losses on financial instruments, including, but not limited to, available-for-sale debt securities and accounts receivable. We adopted ASU 2016-13 effective January 1, 2022. The adoption of this accounting standard did not have a material impact on our consolidated financial statements.

In March 2020, the FASB issued ASU 2020-04, Reference Rate Reform (Topic 848) — Facilitation of the Effects of Reference Rate Reform on Financial Reporting, or Topic 848, that provides optional relief to applying reference rate reform to contracts, hedging relationships, and other transactions that reference the LIBOR. Also, in January 2021, the FASB issued ASU No. 2021-01, Reference Rate Reform (Topic 848) — Scope, to clarify that cash flow hedges are eligible for certain optional expedients and exceptions for the application of subsequent assessment methods to assume perfect effectiveness as previously presented in ASU No. 2020-04. We adopted the provisions of Topic 848 upon issuance of this accounting standard and the adoption did not have a material impact to our consolidated financial statements.

In August 2020, the FASB issued ASU 2020-06, Debt—Debt with Conversion and Other Options (Subtopic 470-20) and Derivatives and Hedging—Contracts in Entity's Own Equity (Subtopic 815-40): Accounting for Convertible Instruments and Contracts in an Entity's Own Equity. This standard eliminates the beneficial conversion and cash conversion accounting models for convertible instruments. It also amends the accounting for certain contracts in an entity’s own equity that are currently accounted for as derivatives because of specific settlement provisions. In addition, the new guidance modifies how particular convertible instruments and certain contracts that may be settled in cash or shares impact the diluted earnings per share computation. We adopted ASU 2020-06 on January 1, 2022 and the adoption of this accounting standard did not have a material impact on our consolidated financial statements.

In June 2022, the FASB issued ASU 2022-03, Fair Value Measurement—Fair Value Measurement of Equity Securities Subject to Contractual Sale Restrictions (Topic 820), or ASU 2022-03, which clarifies that a contractual restriction on the sale of an equity security is not considered part of the unit of account of the equity security and, therefore, is not considered in measuring fair value. The amendments are effective for fiscal years beginning after December 15, 2023. We early adopted ASU 2022-03 during the three months ended June 30, 2023. The adoption of this accounting standard did not have a material impact on our consolidated financial statements.

In September 2022, the FASB issued ASU 2022-04, Liabilities—Supplier Finance Programs (Subtopic 405-50): Disclosure of Supplier Finance Program Obligations, which requires that a buyer in a supplier finance program disclose qualitative and quantitative information about its supplier finance programs. We adopted

ASU 2022-04 effective January 1, 2023. The adoption of this accounting standard did not have a material impact on our consolidated financial statements.

In March 2023, the FASB issued ASU 2023-01, Leases (Topic 842): Common Control Arrangements, which amends certain provisions of ASC 842 related to the accounting for leasehold improvements in common-control arrangements. ASU 2023-01 is effective for fiscal years beginning after December 15, 2023, including interim periods within those fiscal years. We early adopted ASU 2023-01 effective January 1, 2023. The adoption of this accounting standard did not have a material impact on our consolidated financial statements.

In March 2023, the FASB issued ASU 2023-02, Accounting for Investments in Tax Credit Structures Using the Proportional Amortization Method, which allows reporting entities to elect to account for qualifying tax equity investments using the proportional amortization method, regardless of the program giving rise to the related income tax credits. ASU 2023-02 is effective for fiscal years beginning after December 15, 2023, including interim periods within those fiscal years. We early adopted ASU 2023-02 effective January 1, 2023. The adoption of this accounting standard did not have a material impact on our consolidated financial statements.

In July 2023, the FASB issued ASU 2023-03 to amend various paragraphs in the ASC to align with the previously issued SEC guidance. ASU 2023-03 did not provide any new guidance, and there is no transition or effective date associated with it resulting in the ASU 2023-03 being effective upon issuance. Consequently, the adoption of this accounting standard did not have a material impact on our consolidated financial statements.

Accounting Pronouncements Not Yet Adopted

In November 2023, the FASB issued ASU 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures, which requires public entities to disclose information about their reportable segments’ significant expenses on an interim and annual basis. ASU 2023-07 is effective for fiscal years beginning after December 15, 2023, and interim periods within fiscal years beginning after December 15, 2024. Entities must adopt the changes to the segment reporting guidance on a retrospective basis, and early adoption is permitted. We are currently evaluating the impact of the adoption on our consolidated financial statements.

In December 2023, the FASB issued ASU 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures, which requires entities to disclose more detailed information in the reconciliation of their statutory tax rate to their effective tax rate. This accounting standard is effective for fiscal years beginning after December 15, 2024, and interim periods within fiscal years beginning after December 15, 2025. ASU 2023-09 will be applied prospectively with an option for retroactive application to each period in the financial statements, and early adoption is permitted. We are currently evaluating the impact of the adoption on our consolidated financial statements.

Other Financial Statement Information - Additional Information (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2021
Other Financial Information [Abstract]
Deferred revenue	$ 168.4	$ 165.1
Deferred revenue recognized	$ 163.4	$ 146.6	$ 127.6

Stock-Based Compensation - Additional Information for Restricted and Performance Stock Units (Details) - USD ($)	1 Months Ended			12 Months Ended
	Nov. 30, 2022	Jun. 30, 2021	Mar. 31, 2021	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2021
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Total stock-based compensation expense				$ 66,015,000	$ 80,469,000	$ 112,832,000
Share-Based Payment Arrangement, Tranche One
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting percentage that was modified	25.00%
Share-Based Payment Arrangement, Tranche Two
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting percentage that was modified	50.00%
Share-Based Payment Arrangement, Tranche Three
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting percentage that was modified	25.00%
RSUs
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Fair value of vested options				36,600,000	18,500,000	18,100,000
Total stock-based compensation expense				47,300,000	41,400,000	38,600,000
Remaining stock-based compensation expense				$ 112,100,000
Stock-based compensation weighted-average year				2 years 8 months 12 days
Realized tax benefit				$ 0	0	$ 3,500,000
Units granted (in shares)				9,974,000
Units vested upon effectiveness of IPO (in shares)						550,091
Vesting period						4 years
RSUs \| Employees \| Performance Shares
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Units granted (in shares)			30,434
Percentage of assets sold or transferred for equity instruments other than options to vest			50.00%
RSUs \| Service Based Restricted Stock \| Executive Officer
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Total stock-based compensation expense				$ 1,900,000	4,300,000	$ 3,100,000
Remaining stock-based compensation expense				$ 1,100,000
Stock-based compensation weighted-average year				1 year 7 months 6 days
Units granted (in shares)		388,389
Units granted, fair value		$ 10,900,000
RSUs \| Liquidity Event Restricted Stock Units \| Employees
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Units granted (in shares)						1,338,028
Retainage period						6 years 6 months
RSUs \| Minimum \| Employees \| Performance Shares
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting percentage			0.00%
Par value (in dollars per share)			$ 19.64
RSUs \| Maximum \| Employees \| Performance Shares
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting percentage			100.00%
Par value (in dollars per share)			$ 29.46
Performance Shares
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Total stock-based compensation expense				$ 800,000	$ 100,000
Remaining stock-based compensation expense				$ 900,000
Stock-based compensation weighted-average year				1 year 4 months 24 days
Units granted (in shares)				1,300,000	211,864
Revenue, profitability and market share target percentage, achieved				75.00%
Revenue, profitability and market share target percentage, vesting on one year anniversary				25.00%
Change-in-control event, target award vesting percentage				100.00%
Units granted, fair value	$ 2,000,000
Performance Shares \| Share-Based Payment Arrangement, Tranche One
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Change-in-control event, target award vesting percentage				75.00%
Performance Shares \| Share-Based Payment Arrangement, Tranche Two
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Change-in-control event, target award vesting percentage				25.00%
Performance Shares \| Minimum
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting percentage that was modified				0.00%
Performance Shares \| Maximum
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting percentage that was modified				150.00%

Investments	12 Months Ended
Investments	Dec. 31, 2023
Investments [Abstract]
Investments	Investments Available-for-sale Debt Securities In 2019, we invested in Legal Vision Pty Ltd., or Legal Vision, an Australian proprietary limited company that provides online legal services to small and medium size businesses, through the purchase of a convertible promissory note for a total of Australian Dollar, or AUD, $1.0 million ($0.7 million). The convertible promissory note has a maturity term of ten years, which is convertible into Legal Vision’s common stock. The underlying conversion feature is automatically exercisable upon an exit event including an IPO, merger or sale, upon a new financing round, or at our election. At December 31, 2023, we do not hold any equity interests or in-substance common stock in Legal Vision, and accordingly, we have classified the convertible promissory note as an investment in an available-for-sale debt security in the accompanying consolidated balance sheets. The fair value of the convertible promissory note is based on unobservable inputs that are categorized as Level 3 in the fair value hierarchy. We determined that the conversion option on the Legal Vision convertible promissory note will not have material value until Legal Vision executes on its business plans to drive growth, which consequently will drive the fair value of the associated conversion option in excess of the carrying value of the convertible promissory note. Accordingly, the fair value of the convertible debt approximated its carrying value as of December 31, 2023 and 2022. At December 31, 2023 and 2022, the fair value of our available-for-sale debt security in Legal Vision was AUD $1.7 million ($1.2 million) and AUD $1.5 million ($1.0 million), respectively, with the change due to fair value adjustments during the period. In 2023, key assumptions used in the Monte Carlo simulation model to determine the fair value of the convertible promissory note in Legal Vision were: expected term of 5.3 years, risk-free rate of 3.7% and volatility of 60%. The increase in fair value was recognized in other comprehensive (loss) income for the year ended December 31, 2023. Since the Legal Vision convertible promissory note has a contractual maturity date that exceeds one year and we do not intend to liquidate in the next twelve months, we have classified the convertible promissory note as a noncurrent available-for-sale debt security in the accompanying consolidated balance sheets as of December 31, 2023 and 2022. Investments in Other Equity Securities We hold an equity investment in LawPath, Pty Ltd, or LawPath, an Australian proprietary limited company that provides an online legal platform to individuals and small and medium size businesses. In October 2021, we invested an additional AUD $1.5 million ($1.1 million). The change in fair value, due to an orderly transaction, in our other equity securities was $1.8 million for the year ended December 31, 2021, which was recognized in other income (expense), net in our consolidated statements of operations. At both December 31, 2023 and 2022 the carrying amount of our investment in LawPath was $4.4 million. The investment in LawPath does not have a readily determinable fair value. In December 2018, we purchased shares of Class C nonvoting common units in Mylo, LLC, or Mylo, a digital insurance broker that services small and medium size businesses, for $3.0 million, resulting in a 4% interest in Mylo. In December 2022, we fully impaired our investment in Mylo and incurred a loss of $3.0 million as the fair value of our investment was determined to be zero based upon an observable sale of their common equity. Therefore, we recognized an impairment of $3.0 million in our consolidated statements of operations during the year ended December 31, 2022. There were no other impairments of our investments during the years ended December 31, 2023, 2022, and 2021. At December 31, 2023 and 2022, the carrying value of these investments is included in other assets in the accompanying consolidated balance sheets.

Commitments and Contingencies (Details) - Non-cancellable Agreements With Vendors - Advertising Media and Other Commitments $ in Millions	12 Months Ended
	Dec. 31, 2023 USD ($)
Other Commitments [Line Items]
Contractual obligation	$ 46.5
Contractual obligation pay period	4 years
Contractual obligation remainder to be paid	$ 32.8

Fair Value Measurements

12 Months Ended

Dec. 31, 2023

Fair Value Disclosures [Abstract]

Fair Value Measurements

The following tables summarize our assets and liabilities that are measured at fair value on a recurring basis, by level, within the fair value hierarchy (in thousands):


	As of December 31, 2023
	Level 1		Level 2		Level 3
Available-for-sale debt securities	$	—	$	—	$	1,159
Money market funds	208,970		—		—
Total assets	$	208,970	$	—	$	1,159


	As of December 31, 2022
	Level 1		Level 2		Level 3
Available-for-sale debt securities	$	—	$	—	$	995
Money market fund	130,215		—		—
Total assets	$	130,215	$	—	$	995
Contingent consideration	—		—		836
Total liabilities	$	—	$	—	$	836

During the year ended December 31, 2023, we recorded a $0.8 million reduction in fair value of contingent consideration from our acquisition of UAS as a component of cost of revenue because the earnout metrics were not achieved. There was no change in the fair value of the contingent consideration from our acquisition of UAS for the year ended December 31, 2022.

- Definition

The entire disclosure for the fair value of financial instruments (as defined), including financial assets and financial liabilities (collectively, as defined), and the measurements of those instruments as well as disclosures related to the fair value of non-financial assets and liabilities. Such disclosures about the financial instruments, assets, and liabilities would include: (1) the fair value of the required items together with their carrying amounts (as appropriate); (2) for items for which it is not practicable to estimate fair value, disclosure would include: (a) information pertinent to estimating fair value (including, carrying amount, effective interest rate, and maturity, and (b) the reasons why it is not practicable to estimate fair value; (3) significant concentrations of credit risk including: (a) information about the activity, region, or economic characteristics identifying a concentration, (b) the maximum amount of loss the entity is exposed to based on the gross fair value of the related item, (c) policy for requiring collateral or other security and information as to accessing such collateral or security, and (d) the nature and brief description of such collateral or security; (4) quantitative information about market risks and how such risks are managed; (5) for items measured on both a recurring and nonrecurring basis information regarding the inputs used to develop the fair value measurement; and (6) for items presented in the financial statement for which fair value measurement is elected: (a) information necessary to understand the reasons for the election, (b) discussion of the effect of fair value changes on earnings, (c) a description of [similar groups] items for which the election is made and the relation thereof to the balance sheet, the aggregate carrying value of items included in the balance sheet that are not eligible for the election; (7) all other required (as defined) and desired information.

+ References + Details

Acquisitions - Additional Information (Details) - USD ($)	1 Months Ended			12 Months Ended
	Oct. 31, 2022	Aug. 31, 2022	Nov. 30, 2021	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2021
Business Acquisition [Line Items]
Change in fair value of contingent consideration				$ (836,000)	$ (150,000)	$ 0
Goodwill				63,318,000	63,229,000	$ 59,910,000
UA Services
Business Acquisition [Line Items]
Purchase price		$ 3,500,000
Cash paid on acquisition date		2,600,000
Cash payable in twelve months		1,000,000
Change in fair value of contingent consideration				$ (800,000)
Goodwill		3,300,000
Intangible assets acquired		0
Acquisition related costs		$ 400,000
Earth Class Mail
Business Acquisition [Line Items]
Purchase price			$ 61,200,000
Goodwill			48,617,000
Acquisition related costs			$ 1,400,000
Adjustment for buyer costs					$ 300,000
Developed technology
Business Acquisition [Line Items]
Useful life				2 years 2 months 12 days	3 years 2 months 12 days
Developed technology \| Earth Class Mail
Business Acquisition [Line Items]
Useful life			5 years
Estimated fair value of intangible assets			$ 5,418,000
Acquired Workforce
Business Acquisition [Line Items]
Useful life				1 year 9 months 18 days	2 years 9 months 18 days
Customer relationships
Business Acquisition [Line Items]
Useful life				3 years 9 months 18 days	4 years 9 months 18 days
Customer relationships \| Earth Class Mail
Business Acquisition [Line Items]
Useful life			6 years
Estimated fair value of intangible assets			$ 10,603,000
Trade names
Business Acquisition [Line Items]
Useful life				1 year	1 year 3 months 18 days
Trade names \| Earth Class Mail
Business Acquisition [Line Items]
Useful life			26 months
Estimated fair value of intangible assets			$ 179,000
Revv
Business Acquisition [Line Items]
Purchase price	$ 6,600,000
Separately recognized costs	2,600,000
Payment for foregoing compensation arrangement				$ 1,300,000
Revv \| Developed technology
Business Acquisition [Line Items]
Assets acquired	$ 6,500,000
Useful life	3 years
Revv \| Acquired Workforce
Business Acquisition [Line Items]
Assets acquired	$ 100,000

Leases (Tables)

12 Months Ended

Dec. 31, 2023

Leases [Abstract]

Schedule of Lessee, Balance Sheet Classification

Leases consist of the following (in thousands):


		As of December 31,
Assets	Classification	2023		2022
Operating	Operating lease right-of-use assets	$	8,518	$	11,148
Finance	Property and equipment, net	27		62
Total leases		$	8,545	$	11,210
Liabilities
Current
Operating	Operating lease liabilities	$	2,052	$	2,317
Finance	Accrued expenses and other current liabilities	26		36
Non Current
Operating	Operating lease liabilities, non-current	6,966		8,958
Finance	Other liabilities	2		28
Total lease liabilities		$	9,046	$	11,339

Schedule of Future Minimum Payments for Operating Leases

At December 31, 2023, the maturities of our remaining operating lease and finance lease liabilities were as follows (in thousands, except years and percentages):



	Operating leases			Finance leases			Total leases liabilities
2024	$	2,392		$	27		$	2,419
2025	1,828			2			1,830
2026	1,744			—			1,744
2027	1,677			—			1,677
2028	1,312			—			1,312
Thereafter	1,151			—			1,151
Total minimum lease payments	10,104			29			10,133
Less: Effects of discounting	1,086			1			1,087
Present value of lease liabilities	$	9,018		$	28		$	9,046
Less: current portion	$	2,052		$	26		$	2,078
Long-term lease liabilities	$	6,966		$	2		$	6,968
Weighted-average remaining lease term as of December 31, 2023 (in years)	5.0			1.1
Weighted-average incremental borrowing rate as of December 31, 2023	4.51		%	5.50		%
Weighted-average remaining lease term as of December 31, 2022 (in years)	5.6			1.9



	Operating leases		Finance leases		Total leases liabilities
Weighted-average incremental borrowing rate as of December 31, 2022	4.39	%	5.50	%

Schedule of Lease, Cost

The component of our lease costs included in our consolidated statements of operations were as follows (in thousands):


	Year Ended December 31,
	2023		2022
Lease cost
Operating lease cost	$	3,127	$	2,384
Other variable cost	276		250
Finance lease cost	38		17
Net lease cost	$	3,441	$	2,651

Related Party Transactions (Details) $ in Millions	12 Months Ended
Related Party Transactions (Details) $ in Millions	Dec. 31, 2021 USD ($) vendor
Related Party Transaction [Line Items]
Number of software vendors \| vendor	2
Software and Software Maintenance
Related Party Transaction [Line Items]
Related party costs \| $	$ 0.9

Income Taxes (Tables)

12 Months Ended

Dec. 31, 2023

Income Tax Disclosure [Abstract]

Schedule of Income before Income Tax, Domestic and Foreign

The following are the domestic and foreign components of our income (loss) before income taxes (in thousands):


	Year Ended December 31,
	2023		2022		2021
Domestic	$	34,518	$	(49,383)	$	(119,195)
Foreign	(3,024)		1,710		(420)
Total income (loss) before income taxes	$	31,494	$	(47,673)	$	(119,615)

Schedule of Components of Income Tax Expense (Benefit)

The details for the provision for (benefit from) for income taxes by jurisdiction are as follows (in thousands):


	Year Ended December 31,
	2023		2022		2021
Current
Federal	$	8,984	$	647	$	(194)
State	3,621		1,143		760
Foreign	224		63		78
Total current provision	12,829		1,853		644
Deferred
Federal	5,481		1,142		(9,605)
State	(769)		(1,935)		(1,990)

Total deferred provision	4,712		(793)		(11,595)
Total provision for (benefit from) income tax	$	17,541	$	1,060	$	(10,951)

Schedule of Effective Income Tax Rate Reconciliation


	Year Ended December 31,
	2023		2022		2021
Provision for (benefit from) income taxes at statutory rate	$	6,614	$	(10,012)	$	(25,120)
State income taxes, net of federal benefit	1,796		(1,424)		(2,309)
Rate differential on foreign earnings	(130)		(104)		(68)
Research and development credits	(4,894)		(1,346)		(887)
Change in valuation allowance	814		304		809
Stock-based compensation	4,538		2,021		(3,065)
Nondeductible stock-based compensation	6,053		10,012		18,267
Unrecognized tax benefits	2,498		975		703
Non-deductible expenses	350		630		287
Other	(98)		4		432
Total provision for (benefit from) income taxes	$	17,541	$	1,060	$	(10,951)

Schedule of Deferred Tax Assets and Liabilities

The tax effects of temporary differences that give rise to significant portions of our deferred tax assets and liabilities consisted of the following as of December 31, 2023 and 2022, (in thousands):


	As of December 31,
	2023		2022
Deferred tax assets
Deferred revenue	$	220	$	316
Accrued expenses	8,557		7,995
Stock-based compensation	6,554		9,293
Impairment on investment	1,445		1,445


	As of December 31,
	2023		2022
Net operating loss carryforwards	14,492		15,117
Tax credit carryforwards	9,462		12,839
Lease liabilities	2,359		2,934
Interest expense carryforwards	1,560		6,004
Capital loss carryforwards	455		453
Capitalized research expenses	21,355		6,674
Total deferred tax assets	66,459		63,070
Valuation allowance	(16,320)		(14,644)
Net deferred tax assets	50,139		48,426
Deferred tax liabilities
Depreciation and amortization	(15,231)		(12,780)
Right of use asset	(2,228)		(2,900)
State taxes	(3,665)		(3,366)
Net deferred tax liabilities	(21,124)		(19,046)
Net deferred tax assets and liabilities	$	29,015	$	29,380

Schedule of Valuation Allowance

The following table summarizes the valuation allowance:


	Year Ended December 31,
	2023		2022		2021
Beginning balance	$	14,644	$	14,170	$	12,950
Net increase in current year	799		91		1,312
Net increase (decrease) in valuation prior period	877		383		(14)
Net decrease in valuation allowance from acquisitions	—		—		(78)
Ending balance	$	16,320	$	14,644	$	14,170

Schedule of Unrecognized Tax Benefits Roll Forward

The following table summarizes the changes in unrecognized tax benefits for the years ended December 31, 2023, 2022, and 2021 (in thousands):


	Gross Unrealized Tax Benefits
Balance at December 31, 2020	$	7,231
Additions for tax positions related to the current year	887
Reductions for tax positions related to prior years	(245)
Balance at December 31, 2021	$	7,873
Additions for tax positions related to the current year	999
Additions for tax positions related to prior years	48
Balance at December 31, 2022	$	8,920
Additions for tax positions related to the current year	2,181
Additions for tax positions related to prior years	418
Balance at December 31, 2023	$	11,519

Goodwill (Tables)

12 Months Ended

Dec. 31, 2023

Goodwill and Intangible Assets Disclosure [Abstract]

Schedule of Goodwill

The changes in goodwill for 2023 and 2022 were as follows (in thousands):


	Amount
Balance as of December 31, 2021	$	59,910
Acquisition	3,409
Foreign currency translation	(90)
Balance as of December 31, 2022	63,229

Foreign currency translation	89
Balance as of December 31, 2023	$	63,318

- Definition

Tabular disclosure of goodwill by reportable segment and in total which includes a rollforward schedule.

+ References

Reference 1: http://www.xbrl.org/2003/role/exampleRef
-Topic 350
-SubTopic 20
-Name Accounting Standards Codification
-Section 55
-Paragraph 24
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482548/350-20-55-24

Reference 2: http://www.xbrl.org/2009/role/commonPracticeRef
-Topic 350
-SubTopic 20
-Name Accounting Standards Codification
-Section 50
-Paragraph 1
-Subparagraph (a)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482573/350-20-50-1

Reference 3: http://www.xbrl.org/2009/role/commonPracticeRef
-Topic 350
-SubTopic 20
-Name Accounting Standards Codification
-Section 50
-Paragraph 1
-Subparagraph (h)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482573/350-20-50-1

Reference 4: http://www.xbrl.org/2009/role/commonPracticeRef
-Topic 350
-SubTopic 20
-Name Accounting Standards Codification
-Section 50
-Paragraph 1
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482573/350-20-50-1

Reference 5: http://www.xbrl.org/2009/role/commonPracticeRef
-Topic 350
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-Name Accounting Standards Codification
-Section 50
-Paragraph 1
-Subparagraph (b)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482573/350-20-50-1

Reference 6: http://www.xbrl.org/2009/role/commonPracticeRef
-Topic 350
-SubTopic 20
-Name Accounting Standards Codification
-Section 50
-Paragraph 1
-Subparagraph (c)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482573/350-20-50-1

Reference 7: http://www.xbrl.org/2009/role/commonPracticeRef
-Topic 350
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-Name Accounting Standards Codification
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Reference 8: http://www.xbrl.org/2009/role/commonPracticeRef
-Topic 350
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-Name Accounting Standards Codification
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-Paragraph 1
-Subparagraph (e)
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Reference 9: http://www.xbrl.org/2009/role/commonPracticeRef
-Topic 350
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-Name Accounting Standards Codification
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Reference 10: http://www.xbrl.org/2009/role/commonPracticeRef
-Topic 350
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-Paragraph 1
-Subparagraph (g)
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Reference 11: http://www.xbrl.org/2009/role/commonPracticeRef
-Topic 350
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-Name Accounting Standards Codification
-Section 50
-Paragraph 1A
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482573/350-20-50-1A

Reference 12: http://www.xbrl.org/2009/role/commonPracticeRef
-Topic 350
-SubTopic 20
-Name Accounting Standards Codification
-Section 50
-Paragraph 2
-Subparagraph (b)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482573/350-20-50-2

+ Details

Stock-Based Compensation - Additional Information for Stock-based Compensation Plans (Details) - USD ($) $ in Thousands	1 Months Ended	12 Months Ended
	Jun. 30, 2021	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2021
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Total stock-based compensation expense		$ 66,015	$ 80,469	$ 112,832
2021 Equity Incentive Plan
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Shares authorized (in shares)	18,946,871
2021 Employee Stock Purchase Plan \| Employee stock purchase plan
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Shares authorized (in shares)	3,552,538
Fair market value of the stock at the beginning of the offering period	85.00%
Purchase period	6 months
Fixed contribution rate	15.00%
Total stock-based compensation expense		$ 700	$ 700	$ 400
2016 Stock Option Plan
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting period		5 years
Expiration period		10 years
Termination period		30 days

Net Income (Loss) Per Share Attributable to Common Stockholders - Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share (Details) - shares shares in Thousands	12 Months Ended
	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2021
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Total	18,183	26,174	18,997
Options to purchase common stock
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Total	10,714	17,155	15,274
RSUs
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Total	7,426	8,879	3,627
Employee stock purchase plan
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Total	43	140	96

Leases - Schedule of Lease Cost (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2023	Dec. 31, 2022
Leases [Abstract]
Operating lease cost	$ 3,127	$ 2,384
Other variable cost	276	250
Finance lease cost	38	17
Net lease cost	$ 3,441	$ 2,651

Assets Held for Sale

12 Months Ended

Dec. 31, 2023

Discontinued Operations and Disposal Groups [Abstract]

Assets Held for Sale

In September 2022, following an evaluation of our office space and business requirements, we commenced a plan to sell our operational headquarters in Austin, Texas, consisting of land, a building and building improvements, and determined that these assets met the held for sale criteria. We ceased recording depreciation on these assets upon meeting the held for sale criteria. At December 31, 2023, the total carrying value of the assets held for sale remains at $22.7 million as follows:


	December 31, 2023
Land	$	6,400
Building and building improvements	16,322
Total assets held for sale	$	22,722

The estimated fair value less costs to sell the assets held for sale exceed their carrying values and hence no impairment was necessary as of December 31, 2023.

Income Taxes - Schedule of Components of Income Tax Expense (Benefit) (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2021
Current
Federal	$ 8,984	$ 647	$ (194)
State	3,621	1,143	760
Foreign	224	63	78
Total current provision	12,829	1,853	644
Deferred
Federal	5,481	1,142	(9,605)
State	(769)	(1,935)	(1,990)
Total deferred provision	4,712	(793)	(11,595)
Provision for (benefit from) income taxes	$ 17,541	$ 1,060	$ (10,951)

Derivative Financial Instruments

12 Months Ended

Dec. 31, 2023

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Derivative Financial Instruments

Interest Rate Swaps

In April 2019, we entered into two interest rate swaps, or initial swaps, to manage cash flow exposure and exposure to interest rate fluctuations under our 2018 Term Loan. The initial swaps would have matured in April 2022. Under the swap agreements, we were required to pay interest at a fixed rate of 2.3% per annum and receive interest at a variable rate indexed to one-month LIBOR. The initial notional amount of each initial swap was $66.0 million.

The initial swaps were accounted for as cash flow hedges as the transactions were executed to hedge our future interest payments.

At June 30, 2021, the interest rate swap contracts had an aggregate notional amount of $394.2 million, which were designated as cash flow hedges. In July 2021, upon the full repayment of our 2018 Term Loan, our interest rate swaps were discontinued as cash flow hedges and were subsequently extinguished. We paid $13.6 million to extinguish our interest rate swaps and hybrid debt. Upon discontinuance of the interest rate swaps as cash flow hedges, the unrealized losses of $9.2 million for the intervening period were recognized in interest expense, net.

There were no interest rate swaps outstanding as of December 31, 2023 and 2022.

The impact from losses from our interest rate cap, interest rate swaps, and hybrid debt in our consolidated statements of operations were as follows (in thousands):


	Year Ended December 31,
	2021
Settlement of interest rate swaps	$	1,052
Amortization of prior hedge effectiveness	3,095
Fair value adjustment of interest rate swap	364
Amortization of interest rate cap premium	28
Interest expense on hybrid debt	368
Discontinuance of interest rate swaps and prior hedge effectiveness	9,240
Total, recorded in interest expense, net	$	14,147

Financial Guarantee

In September 2019, we provided a financial guarantee relating to a former executive officer upon their voluntary termination. The executive officer entered into a personal loan with a financial institution for $50.0 million with a three-year term. The personal loan was collateralized by personal assets, an investment portfolio and our common stock owned by the former executive officer. We provided a financial guarantee to the financial institution up to $25.0 million had the former executive officer defaulted or not met certain collateral requirements throughout the term of the personal loan. We deposited $25.0 million into a money market fund with the financial institution, or restricted cash equivalent, to evidence this financial guarantee. Had the former executive officer not met certain collateral requirements or defaulted on the personal loan, the financial institution would have had the ability to use our restricted cash equivalent for any shortfall up to $25.0 million. In that event, we would have had full recourse against the former executive officer to recover the amount retained by the financial institution up to $25.0 million. The personal loan was required to be repaid by the former executive officer prior to our making a public filing with the Securities and Exchange Commission, or SEC, for our IPO, or September 2022, whichever came first. In the event of our IPO, the former executive officer had the option to sell up to $25.0 million of his common stock back to us to pay off the personal loan with the financial institution.

The financial guarantee was accounted for as a derivative at fair value with changes in fair value recorded in other income, net in our consolidated statements of operations. The financial guarantee had a term of three years and matured in September 2022. In June 2021, the financial guarantee was terminated and we recognized a gain of $0.1 million from the cancellation of our financial guarantee derivative in other income (expense), net in the accompanying consolidated statements of operations. The associated restricted cash equivalent of $25.0 million became unrestricted and was reclassified to cash and cash equivalents.

Stockholders' Equity	12 Months Ended
Stockholders' Equity	Dec. 31, 2023
Equity [Abstract]
Stockholders' Equity	Stockholders’ Equity Stock Repurchase Program On March 1, 2022, our board of directors approved a stock repurchase program, or 2022 stock repurchase program, authorizing us to repurchase up to $150.0 million of our common stock, with no fixed expiration. In September 2023, we repurchased a total of 4,718,755 shares of our common stock for a total repurchase of $45.1 million directly from a selling stockholder, who was a related party due to the selling stockholder’s then-ownership of our common stock, in a private, non-underwritten transaction at a price of $9.55 per share, which was equal to the price paid by the underwriters to the selling stockholder in a concurrent secondary public offering. The repurchase was recorded as a reduction to stockholders' equity. Upon this repurchase, no further repurchases were available under our 2022 stock repurchase program. The secondary offering of 16,100,000 shares of our common stock by a selling stockholder was completed at a price to the public of $10.00 per share before underwriting discounts and commissions. All direct and incremental costs incurred in connection with the secondary offering were expensed because we did not receive any proceeds from the sale of shares of common stock in the secondary offering. In November 2023, a selling stockholder, who was a related party due to the selling stockholder’s then-ownership in our common stock, sold 15,099,993 shares of our common stock in an underwritten public offering. We did not offer any shares of common stock in this secondary offering and did not receive any proceeds from the sale of shares of common stock by the selling stockholder. All direct and incremental costs incurred in connection with the secondary offering were expensed because we did not receive any proceeds from the sale of shares of common stock in the secondary offering. In October 2023, our board of directors approved a new stock repurchase program, or 2023 stock repurchase program, authorizing repurchases of up to $100.0 million of our common stock, with no fixed expiration. Stock repurchases under both 2023 and 2022 programs authorized us to repurchase our common stock through any manner, including open market transactions, accelerated stock repurchase agreements, or privately negotiated transactions with third parties, and in such amounts as management deems appropriate. Open market repurchases may be structured to occur in accordance with applicable federal securities laws, including within the pricing and volume requirements of Rule 10b-18 under the Securities Exchange Act of 1934, as amended. We also, from time to time, entered and may enter into Rule 10b5-1 plans to facilitate repurchases of our shares of common stock under this authorization. Neither stock repurchase program obligated us to acquire any particular amount of common stock and each could be modified, suspended or terminated at any time at the discretion of our board of directors. During the year ended December 31, 2023, we repurchased a total of 5,867,835 shares of our common stock through open market purchases using Rule 10b5-1 plans and in the above private, non-underwritten transaction, at an average per share price of $9.35 for a total repurchase of $54.9 million including broker commission. During the year ended December 31, 2022, using the Rule 10b5-1 plans, we repurchased a total of 9,256,268 shares of our common stock through open market purchases at an average per share price of $10.28 for a total repurchase of $95.1 million including broker commission. The repurchases were recorded as a reduction to our accumulated deficit in the accompanying consolidated statements of redeemable convertible preferred stock and stockholders’ equity. We have made additional open market repurchases under the 2023 stock repurchase program subsequent to December 31, 2023 of 897,385 shares of our common stock, amounting to $9.2 million, as of the date of filing. The Inflation Reduction Act of 2022, enacted in August 2022, imposed a 1% non-deductible excise tax on net repurchases of shares by domestic corporations whose stock is traded on an established securities market. Consequently, this excise tax is applicable to our stock repurchase program beginning in 2023 and represents a cost of the repurchases of our common stock. We have recognized $0.2 million excise tax liability as of December 31, 2023 because the fair market value of stock repurchases exceeded the fair market value of stock issuances during the year ended December 31, 2023.

- Definition

The entire disclosure for equity.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Topic 505
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 13
-Subparagraph (b)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481112/505-10-50-13

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Topic 505
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-Name Accounting Standards Codification
-Section 50
-Paragraph 13
-Subparagraph (h)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481112/505-10-50-13

Reference 3: http://www.xbrl.org/2003/role/disclosureRef
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-Name Accounting Standards Codification
-Section 50
-Paragraph 14
-Subparagraph (b)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481112/505-10-50-14

Reference 4: http://www.xbrl.org/2003/role/disclosureRef
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-Name Accounting Standards Codification
-Section 50
-Paragraph 2
-Subparagraph (a)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481062/946-235-50-2

Reference 5: http://www.xbrl.org/2003/role/disclosureRef
-Topic 946
-SubTopic 235
-Name Accounting Standards Codification
-Section 50
-Paragraph 2
-Subparagraph (d)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481062/946-235-50-2

Reference 6: http://www.xbrl.org/2003/role/disclosureRef
-Topic 946
-SubTopic 505
-Name Accounting Standards Codification
-Section 50
-Paragraph 6
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-URI https://asc.fasb.org//1943274/2147481004/946-505-50-6

Reference 7: http://www.xbrl.org/2003/role/disclosureRef
-Topic 815
-SubTopic 40
-Name Accounting Standards Codification
-Section 50
-Paragraph 6
-Subparagraph (a)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147480237/815-40-50-6

Reference 8: http://www.xbrl.org/2003/role/disclosureRef
-Topic 505
-SubTopic 10
-Name Accounting Standards Codification
-Section S99
-Paragraph 1
-Subparagraph (SX 210.3-04)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147480008/505-10-S99-1

Reference 9: http://www.xbrl.org/2003/role/disclosureRef
-Topic 235
-SubTopic 10
-Name Accounting Standards Codification
-Section S99
-Paragraph 1
-Subparagraph (SX 210.4-08(e)(1))
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147480678/235-10-S99-1

Reference 10: http://fasb.org/us-gaap/role/ref/legacyRef
-Topic 505
-Name Accounting Standards Codification
-Publisher FASB
-URI https://asc.fasb.org//505/tableOfContent

Reference 11: http://www.xbrl.org/2003/role/disclosureRef
-Topic 505
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-Name Accounting Standards Codification
-Section 50
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-URI https://asc.fasb.org//1943274/2147481112/505-10-50-13

Reference 12: http://www.xbrl.org/2003/role/disclosureRef
-Topic 505
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 13
-Subparagraph (g)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481112/505-10-50-13

Reference 13: http://www.xbrl.org/2003/role/disclosureRef
-Topic 505
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-Section 50
-Paragraph 13
-Subparagraph (i)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481112/505-10-50-13

Reference 14: http://www.xbrl.org/2003/role/disclosureRef
-Topic 505
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-Name Accounting Standards Codification
-Section 50
-Paragraph 14
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-URI https://asc.fasb.org//1943274/2147481112/505-10-50-14

Reference 15: http://www.xbrl.org/2003/role/disclosureRef
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Reference 16: http://www.xbrl.org/2003/role/disclosureRef
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Reference 17: http://www.xbrl.org/2003/role/disclosureRef
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-Subparagraph (a)
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Reference 18: http://www.xbrl.org/2003/role/disclosureRef
-Topic 505
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-Subparagraph (b)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481112/505-10-50-18

Reference 19: http://www.xbrl.org/2003/role/disclosureRef
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-Paragraph 18
-Subparagraph (d)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481112/505-10-50-18

+ Details

Income Taxes - Schedule of Valuation Allowance (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2021
Income Tax Disclosure, Valuation Allowance [Roll Forward]
Beginning balance	$ 14,644	$ 14,170	$ 12,950
Net increase in current year	799	91	1,312
Net increase (decrease) in valuation prior period	877	383	(14)
Net decrease in valuation allowance from acquisitions	0	0	(78)
Ending balance	$ 16,320	$ 14,644	$ 14,170

Derivative Financial Instruments - Schedule of Foreign Exchange Contracts, Statement of Financial Position (Details) - USD ($) $ in Thousands	1 Months Ended	12 Months Ended
	Jul. 31, 2021	Dec. 31, 2021
Derivative Instruments and Hedging Activities Disclosure [Abstract]
Settlement of interest rate swaps		$ 1,052
Amortization of prior hedge effectiveness		3,095
Fair value adjustment of interest rate swap		364
Amortization of interest rate cap premium		28
Interest expense on hybrid debt		368
Discontinuance of interest rate swaps and prior hedge effectiveness	$ 9,200	9,240
Total, recorded in interest expense, net		$ 14,147

Stock-Based Compensation - Additional Information for Stock Options (Details) - USD ($)	1 Months Ended	12 Months Ended
	Jun. 30, 2021	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2021
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Total intrinsic value of options exercised		$ 2,200,000	$ 3,900,000	$ 13,500,000
Total stock-based compensation expense		$ 66,015,000	$ 80,469,000	$ 112,832,000
Weighted-average grant-date fair value (in dollars per share)		$ 4.40	$ 6.61	$ 11.78
Realized tax benefit		$ 0	$ 2,600,000	$ 12,300,000
Granted (in shares)		4,181,000
Options to purchase common stock
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Total stock-based compensation expense		$ 22,000,000	40,100,000	73,600,000
Stock-based compensation expense total unrecognized		$ 25,500,000
Stock-based compensation weighted-average year		2 years 7 months 6 days
Options to purchase common stock \| Executive Officer
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Total stock-based compensation expense		$ 2,000,000	$ 4,500,000	$ 3,200,000
Stock-based compensation weighted-average year		1 year 7 months 6 days
Granted (in shares)	970,970
Stock-based compensation expense total unrecognized		$ 1,100,000

Net Income (Loss) Per Share Attributable to Common Stockholders (Tables)

12 Months Ended

Dec. 31, 2023

Earnings Per Share [Abstract]

Schedule of Earnings Per Share, Basic and Diluted

The following table shows the computation of basic and diluted net (loss) income per share attributable to common stockholders (in thousands, except per share amounts):


	Year Ended December 31,
	2023		2022		2021
Numerator:
Net income (loss)	$	13,953	$	(48,733)	$	(108,664)
Net income (loss) attributable to common stockholders—basic and diluted	$	13,953	$	(48,733)	$	(108,664)



Denominator:
Weighted-average common stock used in computing net (loss) income per share attributable to common stockholders—basic	190,466		195,829		161,424
Effect of potentially dilutive securities:
Options to purchase common stock	1,380		—		—
RSUs	2,558		—		—
Employee stock purchase plan	11		—		—
Weighted-average common stock used in computing net (loss) income per share attributable to common stockholders—diluted	194,415		195,829		161,424
Net (loss) income per share attributable to common stockholders—basic	$	0.07	$	(0.25)	$	(0.67)
Net (loss) income per share attributable to common stockholders—diluted	$	0.07	$	(0.25)	$	(0.67)

Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share


	As of December 31,
	2023	2022	2021
Options to purchase common stock	10,714	17,155	15,274
RSUs	7,426	8,879	3,627
Employee stock purchase plan	43	140	96
Total	18,183	26,174	18,997

Summary of Significant Accounting Policies

12 Months Ended

Dec. 31, 2023

Accounting Policies [Abstract]

Summary of Significant Accounting Policies

A summary of the significant accounting policies we follow in the preparation of the accompanying consolidated financial statements is set forth below.

Basis of Presentation and Consolidation

Certain other reclassifications have been made to prior periods amounts to conform to the current period presentation.

Use of Estimates

Business Combinations

Transaction costs associated with business combinations are expensed as incurred and are included in general and administrative expenses in the accompanying consolidated statements of operations.

Asset Acquisitions

Segment and Geographic Information

Our Chief Executive Officer, as the Chief Operating Decision Maker organizes our company, manages resource allocations, and measures performance on the basis of one operating segment.

Revenue outside of the U.S., based on the location of the customer, represented less than 1% of our revenue for the years ended December 31, 2023, 2022 and 2021. Our property and equipment and right-of-use, or ROU, assets located outside of the U.S. were immaterial as of December 31, 2023 and 2022.

Foreign Currency

Fair Value Measurements


Level 1 —			Quoted prices in active markets for identical assets and liabilities.
Level 2 —			Quoted prices for identical assets and liabilities in markets that are not active, quoted prices for similar assets and liabilities in active markets or financial instruments for which significant inputs are observable, either directly or indirectly.
Level 3 —			Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities.

The carrying amounts of accounts receivable, accounts payable and accrued expenses and other current liabilities approximate fair values because of the short-term nature of these items.

Concentrations of Credit Risk

Due to a large and diverse customer base, no individual customer represented more than 10% of total revenue in December 31, 2023, 2022 and 2021, respectively. At December 31, 2023 and 2022, there were no customers with an outstanding balance of 10% or more of our accounts receivable balance.

Cash and Cash Equivalents

Cash and cash equivalents consist of highly liquid investments with original maturities of ninety days or less at the date of purchase. At December 31, 2023 and 2022, our cash consisted of bank account deposits and our cash equivalents consisted of $209.0 million and $130.2 million, respectively, invested in money market funds.

Accounts Receivable and Allowance for Credit Losses

Property and Equipment

accounts and any resulting gain or loss is reflected in our results of operations. Depreciation is calculated using the straight-line method over the estimated useful lives of the related assets as follows:


			Useful Life (Years)
Purchased and internally developed internal-use software			3
Building and building improvements			5–30
Land improvements			7
Furniture and office equipment			5
Computer hardware			3
Land			Indefinite
Leasehold improvements			Shorter of lease term or useful life

Internal-use Software and Cloud Computing Arrangements

Intangible Assets and Other Long-Lived Assets

Goodwill

Derivative Financial Instruments

Available-for-sale Debt Securities

Investments in Other Equity Securities

Held for Sale

Leases

Debt Issuance Costs

Deferred Offering Costs

In 2021, we incurred $5.6 million related to our IPO, which is included in additional-paid in capital in the accompanying consolidated statements of redeemable convertible preferred stock and stockholders’ equity. There were no deferred stock issuance costs recognized in other assets as of December 31, 2023 or 2022.

Revenue Recognition

We derive our revenue from the following sources:

Our transaction and subscription revenue is as follows (in thousands):


	Year Ended December 31,
	2023		2022		2021
Transaction	$	247,780	$	260,781	$	281,644
Subscription	412,947		359,198		293,436

Total revenue	$	660,727	$	619,979	$	575,080

Principal Agent Considerations

Revenue includes shipping and handling fees charged to customers.

Cost of Revenue

amortization of acquired developed technology, depreciation and amortization of network computers, equipment and internal-use software, printing, shipping and handling charges, credit and debit card fees, allocated overhead, legal document kit expenses, and sales and use taxes. We defer direct and incremental costs primarily related to government filing fees incurred prior to the associated service meeting the criteria for revenue recognition. These contract assets are recognized as cost of revenue in the same period the related revenue is recognized. At December 31, 2023 and 2022, there was $1.7 million and $1.9 million, respectively, in deferred cost of revenue included in prepaid expenses and other current assets in the accompanying consolidated balance sheets. Filing fees of $88.1 million, $74.1 million and $79.8 million were recorded in cost of revenue in the accompanying consolidated statements of operations for years ended December 31, 2023, 2022, and 2021, respectively.

Sales and Marketing Expenses

Technology and Development Expenses

General and Administrative Expenses

Stock-based Compensation

with applicable elements of the practice aid issued by the American Institute of Certified Public Accountants titled Valuation of Privately Held Company Equity Securities Issued as Compensation.

The risk-free interest rate assumption is based upon observed interest rates on the U.S. government securities appropriate for the expected term of our stock options.

Stock-based compensation expense is recognized based on awards that are ultimately expected to vest.

Loss Contingencies

Income Taxes

tax positions as a component of the income tax provision. At December 31, 2023 and 2022, accrued penalties and interest related to uncertain tax positions were not material.

Net Income (Loss) Per Share Attributable to Common Stockholders

Recent Accounting Pronouncements

Recently Adopted Accounting Pronouncements

ASU 2022-04 effective January 1, 2023. The adoption of this accounting standard did not have a material impact on our consolidated financial statements.

Accounting Pronouncements Not Yet Adopted

Other Financial Statement Information - Schedule of Prepaid Expenses and Other Current Assets (Details) - USD ($) $ in Thousands	Dec. 31, 2023	Dec. 31, 2022
Other Financial Information [Abstract]
Prepaid expenses	$ 10,423	$ 10,624
Deferred cost of revenue	1,678	1,915
Capitalized cloud computing development costs	1,085	1,407
Income tax receivable	35	760
Other current assets	1,938	1,993
Total prepaid expenses and other current assets	$ 15,159	$ 16,699

Other Financial Statement Information (Tables)

12 Months Ended

Dec. 31, 2023

Other Financial Information [Abstract]

Schedule of Changes in the Allowance

Changes in the allowances consisted of the following (in thousands):


	Year Ended December 31,
	2023		2022		2021
Beginning balance	$	4,730	$	4,060	$	5,256
Add: amounts recognized as a reduction of revenue	8,220		8,193		6,610
Add (less): allowance for credit losses recognized in general and administrative expense	1,144		446		(279)
Less: write-offs, net of recoveries	(9,188)		(7,969)		(7,527)
Ending balance	$	4,906	$	4,730	$	4,060

Schedule of Prepaid Expenses and Other Current Assets

Prepaid expenses and other current assets consisted of the following (in thousands):


	As of December 31,
	2023		2022
Prepaid expenses	$	10,423	$	10,624
Deferred cost of revenue	1,678		1,915
Capitalized cloud computing development costs	1,085		1,407
Income tax receivable	35		760
Other current assets	1,938		1,993
Total prepaid expenses and other current assets	$	15,159	$	16,699

Schedule of Prepaid Expenses and Other Current Assets

Accrued expenses and other current liabilities consisted of the following (in thousands):


	As December 31,
	2023		2022
Accrued payroll and related expenses	$	33,635	$	27,822
Accrued vendor payables	11,223		15,531
Accrued advertising	—		1,071
Sales allowances	3,412		4,426
Accrued sales, use and business taxes	9,795		3,838
Other	3,613		4,685
Total accrued expenses and other current liabilities	$	61,678	$	57,373

Schedule of Changes in Sales Allowance

Changes in sales allowances relating to charge-backs, sales credits and refunds consisted of the following (in thousands):


	Year Ended December 31,
	2023		2022		2021
Beginning balance	$	4,426	$	4,862	$	4,856
Add: increase in sales allowances	6,635		7,217		7,998
Less: utilization of reserves	(7,649)		(7,653)		(7,992)
Ending balance	$	3,412	$	4,426	$	4,862

Schedule of Depreciation and Amortization Expense

Depreciation and amortization expense of our property and equipment, including capitalized internal-use software, and intangible assets consisted of the following (in thousands):


	Year Ended December 31,
	2023		2022		2021
Cost of revenue	$	12,772	$	8,581	$	6,430
Sales and marketing	5,286		7,014		6,017
Technology and development	4,184		2,834		2,361
General and administrative	3,141		3,316		1,878
Total depreciation and amortization expense	$	25,383	$	21,745	$	16,686

Investments (Details) $ in Thousands, $ in Millions	1 Months Ended	12 Months Ended
Investments (Details) $ in Thousands, $ in Millions	Dec. 31, 2018 USD ($)	Dec. 31, 2023 USD ($) yr	Dec. 31, 2022 USD ($)	Dec. 31, 2021 USD ($)	Dec. 31, 2019	Dec. 31, 2023 AUD ($) yr	Dec. 31, 2022 AUD ($)	Oct. 31, 2021 USD ($)	Oct. 31, 2021 AUD ($)	Oct. 31, 2019 USD ($)	Oct. 31, 2019 AUD ($)
Debt Securities, Available-for-sale [Line Items]
Change in fair value of other equity securities		$ 0	$ 0	$ 1,812
Impairment of other equity security		0	3,000	$ 0
Mylo
Debt Securities, Available-for-sale [Line Items]
Equity interest	4.00%
Mylo \| Nonvoting Common Stock Class C
Debt Securities, Available-for-sale [Line Items]
Value of shares purchased	$ 3,000
LawPath
Debt Securities, Available-for-sale [Line Items]
Other equity securities										$ 700	$ 1.0
Legal Vision
Debt Securities, Available-for-sale [Line Items]
Convertible promissory note, term					10 years
Fair value of available for sale debt security		$ 1,200	1,000			$ 1.7	$ 1.5
Legal Vision \| Expected term
Debt Securities, Available-for-sale [Line Items]
Measurement Input \| yr		5.3				5.3
Legal Vision \| Risk-free rate
Debt Securities, Available-for-sale [Line Items]
Measurement Input		0.037				0.037
Legal Vision \| Volatility
Debt Securities, Available-for-sale [Line Items]
Measurement Input		0.60				0.60
LawPath
Debt Securities, Available-for-sale [Line Items]
Other equity securities								$ 1,100	$ 1.5
Carrying amount of investment		$ 4,400	$ 4,400

Restructuring (Details) - USD ($) $ in Millions	12 Months Ended
Restructuring (Details) - USD ($) $ in Millions	Dec. 31, 2023	Dec. 31, 2022
UNITED STATES
Restructuring Cost and Reserve [Line Items]
Severance costs	$ 3.7	$ 1.9
UNITED KINGDOM
Restructuring Cost and Reserve [Line Items]
Severance costs	$ 1.0

- Definition

Line items represent financial concepts included in a table. These concepts are used to disclose reportable information associated with domain members defined in one or many axes to the table.

+ References + Details

Long-term Debt	12 Months Ended
Long-term Debt	Dec. 31, 2023
Debt Disclosure [Abstract]
Long-term Debt	Long-term Debt In November 2018, we entered into an amended first lien credit and guaranty agreement, or 2018 Credit Facility, which consisted of a first lien term loan facility, or 2018 Term Loan, with a principal amount of $535.0 million and a 2018 Revolving Facility of $40.0 million, or 2018 Revolving Facility. In July 2021, upon the completion of our IPO, we repaid the then outstanding principal of $521.6 million of our 2018 Term Loan in full. We incurred a loss on debt extinguishment of $7.7 million related to unamortized debt issuance costs. On July 2, 2021, we entered into an amended and restated credit and guaranty agreement, or 2021 Revolving Facility, providing for revolving borrowings of up to $150.0 million with an availability period of five years. Under the 2021 Revolving Facility, we can use up to $20.0 million in letters of credit as well as borrowings on same-day notice, referred to as swingline loans, in an amount of up to $10.0 million. Additional debt issuance costs of $0.8 million were allocated to the 2021 Revolving Facility. On May 5, 2023, we entered into an amendment to the 2021 Revolving Facility to replace the LIBOR interest rate benchmark with the Secured Overnight Financing Rate, or SOFR, benchmark, with a 0.10% credit spread adjustment to the SOFR benchmark, or Adjusted Term SOFR, for all available interest periods, provided that if the Adjusted Term SOFR is less than zero, the Adjusted Term SOFR shall be deemed to be zero. Other than the foregoing, the remaining terms of the 2021 Revolving Facility remained unchanged. The interest rate applicable to the 2021 Revolving Facility is subject to a 1.0% floor and is a rate equal to the greatest of (i) the administrative agent’s prime rate (ii) the federal funds effective rate plus 1/2 of 1.0% or (iii) Adjusted Term SOFR plus 1.0%. The interest rate margins under the 2021 Revolving Facility are subject to one reduction of 0.25% and a further reduction of 0.25% upon achieving total net first lien leverage ratios of 3.50 to 1.00 and 2.50 to 1.00, respectively. We are required to pay a commitment fee in respect of unutilized commitments under the 2021 Revolving Facility. The commitment fee is, initially, 0.35% per annum. The commitment fee is subject to one reduction of 0.10% if the total net first lien leverage ratio does not exceed 3.50 to 1.00. We are also required to pay customary letter of credit fees and agency fees. We have the option to voluntarily repay outstanding loans under the 2021 Revolving Facility at any time without premium or penalty, other than customary “breakage” costs with respect to SOFR loans. There is no scheduled amortization under the 2021 Revolving Facility. Any principal amount outstanding is due and payable in full at maturity, five years from the closing date of the 2021 Revolving Facility. Obligations under the 2021 Revolving Facility are guaranteed by our existing and future direct and indirect material wholly-owned domestic subsidiaries, subject to certain exceptions. The 2021 Revolving Facility is secured by a first-priority security interest in substantially all of our assets, subject to certain exceptions. The 2021 Revolving Facility contains a number of covenants that, among other things, subject to certain exceptions, restrict our ability and the ability of our restricted subsidiaries to incur additional indebtedness and guarantee indebtedness; create or incur liens; pay dividends and distributions or repurchase capital stock; merge, liquidate and make asset sales; change lines of business; change our fiscal year; incur restrictions on our subsidiaries’ ability to make distributions and create liens; modify our organizational documents; make investments, loans and advances; and enter into certain transactions with affiliates. The 2021 Revolving Facility requires compliance with a total net first lien leverage ratio of 4.50 to 1.00, or Financial Covenant. The Financial Covenant will be tested at quarter-end only if the total principal amount of all revolving loans, swingline loans and drawn letters of credit that have not been reimbursed exceeds 35% of the total commitments under the 2021 Revolving Facility on the last day of such fiscal quarter. At December 31, 2023 and 2022, we had no amounts outstanding under our 2021 Revolving Facility or any outstanding letters of credit. We were in compliance with all financial covenants as of December 31, 2023 and 2022

Summary of Significant Accounting Policies (Tables)

12 Months Ended

Dec. 31, 2023

Accounting Policies [Abstract]

Schedule of Property, Plant and Equipment

Depreciation is calculated using the straight-line method over the estimated useful lives of the related assets as follows:


			Useful Life (Years)
Purchased and internally developed internal-use software			3
Building and building improvements			5–30
Land improvements			7
Furniture and office equipment			5
Computer hardware			3
Land			Indefinite
Leasehold improvements			Shorter of lease term or useful life

Property and equipment, net, consisted of the following (in thousands):


	As of December 31,
	2023		2022


Internal-use software	$	91,424	$	67,371
Purchased software	1,360		2,228
Furniture and office equipment	1,797		2,518
Computer hardware	7,588		14,074
Leasehold improvements	1,476		1,985
Software development in-progress	—		105
Total cost of property and equipment	103,645		88,281
Less: accumulated depreciation and amortization	(55,413)		(57,458)
Property and equipment, net	$	48,232	$	30,823

Schedule of Revenue Recognition

Our transaction and subscription revenue is as follows (in thousands):


	Year Ended December 31,
	2023		2022		2021
Transaction	$	247,780	$	260,781	$	281,644
Subscription	412,947		359,198		293,436

Total revenue	$	660,727	$	619,979	$	575,080