0001454938-24-000024 | 10-K | XBRL Viewer

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Organization, Description of Business and Summary of Significant Accounting Policies - Property, Equipment and Capitalized Software, Net (Details)	Dec. 31, 2023	Dec. 31, 2022
Software and Computer and Equipment, excluding Servers
Property, Plant and Equipment [Line Items]
Property and equipment, useful life	3 years
Furniture and fixtures
Property, Plant and Equipment [Line Items]
Property and equipment, useful life	5 years
Servers
Property, Plant and Equipment [Line Items]
Property and equipment, useful life	6 years	3 years
Capitalized software development costs
Property, Plant and Equipment [Line Items]
Property and equipment, useful life	3 years

Stock-based Compensation - RSU Award Activity (Details) - USD ($) $ / shares in Units, $ in Millions	12 Months Ended
	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2021
RSUs
Number of Shares
Outstanding - beginning of period (in shares)	2,785,510
Granted (in shares)	2,583,691
Vested (in shares)	(1,392,500)
Forfeited (in shares)	(469,618)
Outstanding - end of period (in shares)	3,507,083	2,785,510
Weighted-Average Grant Date Fair Value
Outstanding - beginning of period (in usd per share)	$ 9.87
Granted (in usd per share)	4.81	$ 8.98	$ 13.53
Vested (in usd per share)	8.63
Forfeited (in usd per share)	8.27
Outstanding - end of period (in usd per share)	$ 6.85	$ 9.87
RSUs, Additional Disclosures [Abstract]
Share-Based Payment Arrangement, Nonvested Award, Excluding Option, Cost Not yet Recognized, Amount	$ 23.0
Unrecognized stock-based compensation, period for recognition	2 years 7 months 6 days
Performance Shares [Member]
Number of Shares
Granted (in shares)	90,000
Weighted-Average Grant Date Fair Value
Granted (in usd per share)	$ 4.82

Long Term Debt - Convertible Notes (Details) $ / shares in Units, $ in Thousands		1 Months Ended	12 Months Ended
	Jul. 27, 2021 USD ($) day $ / shares	Jul. 31, 2021 USD ($)	Dec. 31, 2023 USD ($)	Dec. 31, 2022 USD ($)	Dec. 31, 2021 USD ($)	Apr. 14, 2023 USD ($)	Jul. 01, 2021 USD ($)
Debt Instrument [Line Items]
Gain (Loss) on Extinguishment of Debt			$ 22,594	$ 0	$ (42,049)
Secured Notes
Debt Instrument [Line Items]
Debt extinguished		$ 200,000
Secured Notes \| Senior Subordinated Secured Notes Due July 1, 2026
Debt Instrument [Line Items]
Debt discount							$ 36,000
Deferred financing costs							$ 6,000
Secured Notes \| Senior Subordinated Secured Notes Due July 1, 2026 \| Minimum
Debt Instrument [Line Items]
Interest rate							10.00%
Secured Notes \| Senior Subordinated Secured Notes Due July 1, 2026 \| Maximum
Debt Instrument [Line Items]
Interest rate							14.50%
Convertible Notes \| 2.95% Convertible Senior Notes Due 2026
Debt Instrument [Line Items]
Aggregate principal amount	$ 236,000		118,000
Interest rate	2.95%
Gain (Loss) on Extinguishment of Debt			22,600
Repurchased face amount						$ 118,000
Cash paid for debt retirement			$ 96,200
Discount on debt repurchase						0.19
Conversion rate	0.04
Conversion price (in usd per share) \| $ / shares	$ 25
Threshold percentage of stock price trigger	130.00%
Threshold trading days \| day	20
Threshold consecutive trading days \| day	30
Redemption price, percentage	100.00%
Secured Notes \| Senior Subordinated Secured Notes Due July 1, 2026
Debt Instrument [Line Items]
Aggregate principal amount							$ 200,000
Gain (Loss) on Extinguishment of Debt					$ 42,000

Consolidated Statements of Operations - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2021
Income Statement [Abstract]
Revenue	$ 935,818	$ 992,082	$ 1,015,630
Cost of revenue:
Traffic acquisition costs	708,449	757,321	743,579
Other cost of revenue	42,571	42,108	31,791
Total cost of revenue	751,020	799,429	775,370
Gross profit	184,798	192,653	240,260
Operating expenses:
Research and development	36,402	40,320	39,169
Sales and marketing	98,370	108,816	95,786
General and administrative	58,665	57,065	70,749
Total operating expenses	193,437	206,201	205,704
(Loss) income from operations	(8,639)	(13,548)	34,556
Other income (expense), net:
Gain (loss) on convertible debt	22,594	0	(42,049)
Interest expense	(5,393)	(7,625)	(3,964)
Interest income and other income (expense), net	7,793	2,600	(3,078)
Total other income (expense), net	24,994	(5,025)	(49,091)
Income (loss) before provision (benefit) for income taxes	16,355	(18,573)	(14,535)
Provision (benefit) for income taxes	6,113	6,008	(25,530)
Net income (loss)	$ 10,242	$ (24,581)	$ 10,995
Weighted average shares outstanding:
Basic (in shares)	50,900,422	55,615,385	35,159,757
Diluted (in shares)	56,965,299	55,615,385	53,894,347
Net income (loss) per common share:
Basic (in usd per share)	$ 0.20	$ (0.44)	$ 0.31
Diluted (in usd per share)	$ (0.06)	$ (0.44)	$ 0.20

Goodwill and Intangible Assets

12 Months Ended

Dec. 31, 2023

Goodwill and Intangible Assets Disclosure [Abstract]

Goodwill and Intangible Assets

5. Goodwill and Intangible Assets

The Company’s goodwill balance as of December 31, 2023 and December 31, 2022 was $63.1 million. The Company has not recorded any accumulated impairments of goodwill.

The gross carrying amount and accumulated amortization of the Company’s intangible assets are as follows:


	December 31, 2023
	Weighted Average Amortization Period	Gross Value		Accumulated Amortization		Net Carrying Value
	(In thousands)
Developed technology	8.0 years	$	18,410	$	(10,900)	$	7,510
Customer relationships	5.0 years	5,972		(5,530)		442
Publisher relationships	8.0 years	18,973		(10,863)		8,110
Trade names	8.8 years	5,326		(1,779)		3,547
Content Provider Relationships	5.0 years	284		(113)		171
Other	15.8 years	898		(282)		616
Total intangible assets, net		$	49,863	$	(29,467)	$	20,396


	December 31, 2022
	Weighted Average Amortization Period	Gross Value		Accumulated Amortization		Net Carrying Value
	(In thousands)
Developed technology	5.8 years	$	18,411	$	(9,652)	$	8,759
Customer relationships	4.1 years	5,856		(5,022)		834
Publisher relationships	6.3 years	18,738		(8,782)		9,956
Trade names	8.7 years	5,279		(1,143)		4,136
Content Provider Relationships	5.0 years	284		(56)		228
Other	15.8 years	888		(227)		661
Total intangible assets, net		$	49,456	$	(24,882)	$	24,574

No impairment charges were recorded for the Company’s intangible assets subject to amortization during the years ended December 31, 2023, 2022, and 2021.

As of December 31, 2023, estimated amortization related to the Company’s identifiable acquisition-related intangible assets in future periods was as follows:


Year Ending December 31,	Amount
	(In thousands)
2024	$	3,469
2025	3,469
2026	3,469
2027	3,117
2028	3,062
Thereafter	3,810
Total	$	20,396

Stock-based Compensation - Stock Option Activity (Details) - USD ($) $ / shares in Units, $ in Thousands	12 Months Ended
	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2021
Share-Based Compensation Arrangement by Share-Based Payment Award, Options, Outstanding [Roll Forward]
Outstanding - beginning of period (in shares)	2,681,436
Granted (in shares)	0	0	37,624
Exercised (in shares)	0
Forfeited (in shares)	(271,883)
Outstanding - end of period (in shares)	2,409,553	2,681,436
Exercisable (in shares)	2,195,933
Share-Based Compensation Arrangement by Share-Based Payment Award, Options, Outstanding, Weighted Average Exercise Price [Abstract]
Outstanding - beginning of period (in usd per share)	$ 9.08
Granted (in usd per share)	0
Exercised (in usd per share)	0
Forfeited (in usd per share)	8.29
Outstanding - end of period (in usd per share)	9.17	$ 9.08
Exercisable (in usd per share)	$ 8.98
Options, Additional Disclosures
Options outstanding, weighted-average remaining contractual term (years)	3 years 8 months 23 days	4 years 5 months 26 days
Options exercisable, weighted-average remaining contractual term (years)	3 years 4 months 28 days
Options outstanding. aggregate intrinsic value of outstanding options	$ 0	$ 0
Options exercisable, aggregate intrinsic value	0
Options exercised, intrinsic value		$ 3,000	$ 16,400
Options to purchase common stock
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-Based Payment Arrangement, Nonvested Award, Option, Cost Not yet Recognized, Amount	$ 1,000
Unrecognized stock-based compensation, period for recognition	1 year

Net Income Loss Per Common Share - Antidilutive Shares (Details) - shares	12 Months Ended
	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2021
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Total shares excluded from diluted net income (loss) per share	6,038,842	15,095,181	10,520,703
Convertible debt
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Total shares excluded from diluted net income (loss) per share	0	9,440,000	9,440,000
Options to purchase common stock
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Total shares excluded from diluted net income (loss) per share	2,523,643	2,681,436	1,080,703
Warrants
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Total shares excluded from diluted net income (loss) per share	188,235	188,235	0
Restricted stock units
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Total shares excluded from diluted net income (loss) per share	3,326,964	2,785,510	0

Stock-based Compensation - Stock-Based Compensation (Details) - USD ($) $ in Thousands	3 Months Ended	12 Months Ended
	Sep. 30, 2021	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2021
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]
Total stock-based compensation		$ 12,141	$ 11,660	$ 26,307
Tax benefit related to stock-based compensation expense		1,727	1,560	4,482
Stock-based compensation capitalized for software development costs		555	883	195
Stock Awards with Service and Performance Conditions Met
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]
Total stock-based compensation	$ 16,500
Research and development
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]
Total stock-based compensation		2,971	2,355	3,959
Sales and marketing
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]
Total stock-based compensation		4,587	4,938	8,656
General and administrative
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]
Total stock-based compensation		$ 4,583	$ 4,367	$ 13,692

Stockholders' Equity (Deficit) (Tables)

12 Months Ended

Dec. 31, 2023

Stockholders' Equity Note [Abstract]

Schedule of Accumulated Other Comprehensive Income (Loss)

The following table details the changes in accumulated other comprehensive income (loss) (“AOCI”), net of tax:


	Foreign Currency Translation Loss		Unrealized (Loss) Gain on Investments in Marketable Securities(1)		Total Accumulated Other Comprehensive Loss
Balance–January 1, 2021	$	(4,290)	$	—	$	(4,290)
Other comprehensive income, net of tax	(184)		—		(184)
Balance–December 31, 2021	(4,474)		—		(4,474)
Other comprehensive loss, net of tax	(3,870)		(1,569)		(5,439)
Balance–December 31, 2022	(8,344)		(1,569)		(9,913)
Other comprehensive (loss) income before reclassifications, net of tax	(695)		1,136		441
Realized losses reclassified to earnings, net of tax	—		420		420
Other comprehensive (loss) income, net of tax	$	(695)	$	1,556	$	861
Balance–December 31, 2023	$	(9,039)	$	(13)	$	(9,052)

_______________________________

(1) Unrealized (loss) income before reclassifications on investments on marketable securities is net of taxes of $(0.4) million and $0.5 million, respectively, in 2023 and 2022. Realized losses on available securities that were reclassified to earnings in 2023 are net of taxes of $(0.1) million. There were no amounts reclassified from AOCI to earnings in 2022 or 2021.

Segment and Geographic Information - Narrative (Details)	12 Months Ended
	Dec. 31, 2023 segment
Segment Reporting [Abstract]
Number of operating segment	1
Number of reportable segment	1

Balance Sheet Components - Prepaid Expenses and Other Current Assets (Details) - USD ($) $ in Thousands	Dec. 31, 2023	Dec. 31, 2022
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Prepaid traffic acquisition costs	$ 26,398	$ 23,149
Prepaid taxes	11,371	15,280
Prepaid software licenses	2,224	2,465
Other prepaid expenses and other current assets	7,247	5,867
Total prepaid expenses and other current assets	$ 47,240	$ 46,761

Organization, Description of Business and Summary of Significant Accounting Policies - Stock-based Compensation and Severance Pay Asset and Liability (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2021
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Defined Contribution Plan, Cost	$ 8.5	$ 9.6	$ 8.4

Fair value of AFS investments in unrealized loss position (Details) $ in Thousands	Dec. 31, 2023 USD ($)
Debt Securities, Available-for-Sale [Line Items]
Debt securities, unrealized loss position less than 12 months, fair value	$ 51,757
Debt securities, unrealized losses, less than 12 months	(131)
Debt securities, unrealized loss position, 12 months or longer, fair value	40,515
Debt securities, unrealized losses, 12 months or longer	(212)
Fair value of debt securities in an unrealized loss position	92,272
Aggregate amount of unrealized losses	(343)
U.S. Treasuries
Debt Securities, Available-for-Sale [Line Items]
Debt securities, unrealized loss position less than 12 months, fair value	1,279
Debt securities, unrealized losses, less than 12 months	0
Debt securities, unrealized loss position, 12 months or longer, fair value	4,711
Debt securities, unrealized losses, 12 months or longer	(29)
Fair value of debt securities in an unrealized loss position	5,990
Aggregate amount of unrealized losses	(29)
U.S. government bonds
Debt Securities, Available-for-Sale [Line Items]
Debt securities, unrealized loss position less than 12 months, fair value	6,798
Debt securities, unrealized losses, less than 12 months	(9)
Debt securities, unrealized loss position, 12 months or longer, fair value	16,964
Debt securities, unrealized losses, 12 months or longer	(105)
Fair value of debt securities in an unrealized loss position	23,762
Aggregate amount of unrealized losses	(114)
Commercial paper
Debt Securities, Available-for-Sale [Line Items]
Debt securities, unrealized loss position less than 12 months, fair value	3,649
Debt securities, unrealized losses, less than 12 months	(3)
Debt securities, unrealized loss position, 12 months or longer, fair value	0
Debt securities, unrealized losses, 12 months or longer	0
Fair value of debt securities in an unrealized loss position	3,649
Aggregate amount of unrealized losses	(3)
U.S. Corporate bonds
Debt Securities, Available-for-Sale [Line Items]
Debt securities, unrealized loss position less than 12 months, fair value	40,031
Debt securities, unrealized losses, less than 12 months	(119)
Debt securities, unrealized loss position, 12 months or longer, fair value	18,840
Debt securities, unrealized losses, 12 months or longer	(78)
Fair value of debt securities in an unrealized loss position	58,871
Aggregate amount of unrealized losses	$ (197)

Stock-based Compensation - Employee Stock Purchase Plan (Details) - ESPP	12 Months Ended
	Dec. 31, 2023 shares
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of shares reserved for future issuance (in shares)	2,352,280
Stock Issued During Period, Shares, Employee Stock Ownership Plan	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

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+ Details

Goodwill and Intangible Assets - Estimated Amortization (Details) - USD ($) $ in Thousands	Dec. 31, 2023	Dec. 31, 2022
Goodwill and Intangible Assets Disclosure [Abstract]
2024	$ 3,469
2025	3,469
2026	3,469
2027	3,117
2028	3,062
Thereafter	3,810
Net carrying value	$ 20,396	$ 24,574

Segment and Geographic Information - Total Revenue (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2021
Revenues from External Customers and Long-Lived Assets [Line Items]
Revenue	$ 935,818	$ 992,082	$ 1,015,630
USA
Revenues from External Customers and Long-Lived Assets [Line Items]
Revenue	286,039	330,333	372,855
EMEA
Revenues from External Customers and Long-Lived Assets [Line Items]
Revenue	552,621	553,051	523,580
Other
Revenues from External Customers and Long-Lived Assets [Line Items]
Revenue	$ 97,158	$ 108,698	$ 119,195

- Definition

Amount of revenue recognized from goods sold, services rendered, insurance premiums, or other activities that constitute an earning process. Includes, but is not limited to, investment and interest income before deduction of interest expense when recognized as a component of revenue, and sales and trading gain (loss).

+ References

+ Details

Long Term Debt - Revolving Credit Facility (Details)		12 Months Ended
Long Term Debt - Revolving Credit Facility (Details)	Nov. 02, 2021 USD ($)	Dec. 31, 2023 USD ($) Rate	Dec. 31, 2022 USD ($)
Letter of Credit
Line of Credit Facility [Line Items]
Maximum borrowing capacity	$ 15,000,000
Revolving Credit Facility
Line of Credit Facility [Line Items]
Maximum borrowing capacity	$ 75,000,000
Period prior to maturity date of convertible notes	120 days
Percentage of available commitments		85.00%
Minimum consolidated monthly fixed charge coverage ratio \| Rate		1.00
Borrowings outstanding		$ 0	$ 0
Available borrowing capacity		75,000,000	70,700,000
Deferred financing costs		$ 300,000	$ 400,000
Revolving Credit Facility \| Minimum
Line of Credit Facility [Line Items]
Commitment fee percentage		0.20%
Revolving Credit Facility \| Maximum
Line of Credit Facility [Line Items]
Commitment fee percentage		0.30%
Revolving Credit Facility \| Base Rate \| Minimum
Line of Credit Facility [Line Items]
Margin rate		1.00%
Revolving Credit Facility \| Base Rate \| Maximum
Line of Credit Facility [Line Items]
Margin rate		1.50%
Revolving Credit Facility \| Secured Overnight Financing Rate (SOFR) Overnight Index Swap Rate \| Minimum
Line of Credit Facility [Line Items]
Margin rate		1.50%
Revolving Credit Facility \| Secured Overnight Financing Rate (SOFR) Overnight Index Swap Rate \| Maximum
Line of Credit Facility [Line Items]
Margin rate		2.00%
Revolving Credit Facility \| Secured Overnight Financing Rate (SOFR) Adjustment [Member] \| Minimum
Line of Credit Facility [Line Items]
Margin rate		0.10%
Revolving Credit Facility \| Secured Overnight Financing Rate (SOFR) Adjustment [Member] \| Maximum
Line of Credit Facility [Line Items]
Margin rate		0.15%

Organization, Description of Business and Summary of Significant Accounting Policies - Certain Risks and Concentrations (Details)	12 Months Ended
	Dec. 31, 2022
Customer A \| Cost of Goods and Service, Product and Service Benchmark \| Supplier Concentration Risk
Concentration Risk [Line Items]
Concentration risk, percentage	10.00%

Balance Sheet Components - Accrued and Other Current Liabilities (Details) - USD ($) $ in Thousands	Dec. 31, 2023	Dec. 31, 2022
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Accrued traffic acquisition costs	$ 75,870	$ 73,396
Accrued tax liabilities	15,596	15,013
Accrued agency commissions	12,376	13,451
Operating lease obligations, current	3,684	3,236
Accrued professional fees	3,261	4,915
Interest payable	1,566	3,074
Other	7,350	13,007
Total accrued and other current liabilities	119,703	126,092
Accounts Payable
Traffic acquisition costs in accounts payable	$ 137,600	$ 136,800

Balance Sheet Components - Allowance for Credit Losses (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2021
Accounts Receivable, Allowance for Credit Loss [Roll Forward]
Allowance for credit losses, beginning balance	$ 5,512	$ 4,402	$ 4,174
Provision for credit losses, net of recoveries	8,220	3,227	2,601
Write-offs	(3,352)	(2,117)	(2,373)
Allowance for credit losses, ending balance	$ 10,380	$ 5,512	$ 4,402

Goodwill and Intangible Assets - Narrative (Details) - USD ($)	12 Months Ended
	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2021
Goodwill and Intangible Assets Disclosure [Abstract]
Accumulated impairments of goodwill	$ 0
Impairment charges	$ 0	$ 0	$ 0

Balance Sheet Components

12 Months Ended

Dec. 31, 2023

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Balance Sheet Components

Accounts Receivable and Allowance for Credit Losses

Accounts receivable, net of allowance for credit losses consists of the following:


	December 31,
	2023		2022
	(In thousands)
Accounts receivable	$	199,714	$	186,770
Allowance for credit losses	(10,380)		(5,512)
Accounts receivable, net of allowance for credit losses	$	189,334	$	181,258

The allowance for credit losses consists of the following activity:


	Year Ended December 31,
	2023		2022		2021
	(In thousands)
Allowance for credit losses, beginning balance	$	5,512	$	4,402	$	4,174
Provision for credit losses, net of recoveries	8,220		3,227		2,601
Write-offs	(3,352)		(2,117)		(2,373)
Allowance for credit losses, ending balance	$	10,380	$	5,512	$	4,402

Prepaid Expenses and Other Current Assets

Prepaid expenses and other current assets consists of the following:


	December 31,
	2023		2022
	(In thousands)
Prepaid traffic acquisition costs	$	26,398	$	23,149
Prepaid taxes	11,371		15,280
Prepaid software licenses	2,224		2,465
Other prepaid expenses and other current assets	7,247		5,867
Total prepaid expenses and other current assets	$	47,240	$	46,761

Property, Equipment and Capitalized Software, Net

Property, equipment and capitalized software, net consists of the following:


	December 31,
	2023		2022
	(In thousands)
Capitalized software development costs	$	78,389	$	67,685
Computer and equipment	61,529		59,536
Leasehold improvements	3,300		2,859
Software	3,221		3,113
Furniture and fixtures	1,098		1,177
Property, equipment and capitalized software, gross	147,537		134,370
Less: accumulated depreciation and amortization	(105,076)		(94,480)
Total property, equipment and capitalized software, net	$	42,461	$	39,890

The Company capitalized software development costs, including stock-based compensation, of $10.7 million and $13.5 million for the years ended December 31, 2023 and 2022, respectively. Accumulated amortization for capitalized software development costs was $57.4 million and $47.8 million as of December 31, 2023 and 2022, respectively.

As of December 31, 2023 and 2022, total computer equipment financed and software licensed under finance leases was $0.2 million and $1.9 million, net of accumulated amortization of $25.8 million and $23.9 million. Amortization expense related to total computer equipment financed and software licensed under finance leases was $1.6 million, $2.9 million and $3.8 million, respectively, for the years ended December 31, 2023, 2022 and 2021.

Accrued and Other Current Liabilities

Accrued and other current liabilities consist of the following:


	December 31,
	2023		2022
	(In thousands)
Accrued traffic acquisition costs	$	75,870	$	73,396
Accrued tax liabilities	15,596		15,013
Accrued agency commissions	12,376		13,451
Operating lease obligations, current	3,684		3,236
Accrued professional fees	3,261		4,915
Interest payable	1,566		3,074
Other	7,350		13,007
Total accrued and other current liabilities	$	119,703	$	126,092

In addition to accrued traffic acquisition costs, accounts payable includes $137.6 million and $136.8 million of traffic acquisition costs as of December 31, 2023 and 2022, respectively.

Organization, Description of Business and Summary of Significant Accounting Policies - Derivative Financial Instruments (Details) - USD ($) $ in Millions	Dec. 31, 2023	Dec. 31, 2022
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Notional amount of outstanding derivative instruments	$ 36.3	$ 44.9

Stock-based Compensation

12 Months Ended

Dec. 31, 2023

Share-Based Payment Arrangement [Abstract]

Stock-based Compensation

Equity Incentive Plans

In July 2021, the Board and the Company’s stockholders approved the 2021 Long-Term Incentive Plan (the “2021 LTIP”), which became effective in connection with the closing of the Company’s IPO. The 2021 LTIP may be used to grant, among other award types, stock options and RSUs. The number of shares of common stock reserved for future issuance under the 2021 Plan will also be increased pursuant to provisions for annual automatic evergreen increases. The Company’s previous awards issued under its 2007 Omnibus Securities and Incentive Plan, as amended and restated on January 21, 2009 (“2007 Plan”), remain subject to the 2007 Plan. As of December 31, 2023, 6,301,466 and 766,241 and shares were available for grant under the 2021 LTIP and the 2007 Plan, respectively. The Company generally issues new shares for stock option exercises and vesting of restricted stock units.

The Company recognizes stock-based compensation for stock-based awards, including stock options, RSUs and SARs based on the estimated fair value of the awards. The Company estimates the fair value of its stock option awards on the grant date using the Black-Scholes option pricing model. The fair value of RSUs is the fair value of the Company’s common stock on the date of grant. The Company accounts for forfeitures as they occur.

The following table summarizes stock-based compensation expense recognized in the Company’s consolidated statements of operations for the periods presented:


	Year Ended December 31,
	2023		2022		2021
	(In thousands)
Research and development	$	2,971	$	2,355	$	3,959
Sales and marketing	4,587		4,938		8,656
General and administrative	4,583		4,367		13,692
Total stock-based compensation	$	12,141	$	11,660	$	26,307	(1)
Tax benefit related to stock-based compensation expense	$	1,727	$	1,560	$	4,482

__________________________

(1) Includes $16.5 million of stock-based compensation expense recorded during the three months ended September 30, 2021, in connection with the Company’s stock option awards, restricted stock awards, RSUs and SARs for which the service condition has been met and a performance condition was satisfied upon the Company’s IPO, which was a qualifying liquidity event. Stock-based compensation expense for unvested awards will be recognized over the remainder of the requisite service period.

During the years ended December 31, 2023, 2022 and 2021, approximately $0.6 million, $0.9 million and $0.2 million, respectively, of stock-based compensation expense was capitalized by the Company as part of capitalized software development costs within property, equipment and capitalized software, net.

Stock Options

The following table summarizes stock option activity for the year ended December 31, 2023:


	Stock Options
	Number of Shares	Weighted- Average Exercise Price		Weighted- Average Remaining Contractual Term (Years)	Aggregate Intrinsic Value of Outstanding Options (In thousands)
Outstanding — December 31, 2022	2,681,436	$	9.08	4.49	$	—
Granted	—	$	—
Exercised	—	$	—
Forfeited/expired	(271,883)	$	8.29
Outstanding — December 31, 2023	2,409,553	$	9.17	3.73	$	—
Exercisable — December 31, 2023	2,195,933	$	8.98	3.41	$	—

The aggregate intrinsic value of options exercised in 2022 and 2021 was $3.0 million and $16.4 million, respectively. As of December 31, 2023, total unrecognized stock-based compensation related to unvested stock options was $1.0 million, which is expected to be recognized over a weighted-average period of 1.0 years.

There were no stock options granted in 2023 or 2022. The estimated grant-date fair value of 37,624 stock options granted in 2021 was calculated using the Black-Scholes option pricing model, based on the following assumptions and inputs, each of which is subjective and generally requires significant judgment:


	Year Ended December 31,
	2021
Grant date fair value	$5.95
Expected term (in years)	6.03
Risk-free interest rate	1.29	%
Expected volatility	43	%
Dividend rate	0	%

Expected term. The expected term represents the period over which the Company’s option awards are expected to be outstanding, determined using the simplified method, based on the average of the time to the vest date and the contractual term.

Risk-Free Interest Rate. The risk-free interest rate is based on the U.S. Treasury yield curve on the date of grant for zero-coupon U.S. Treasury notes with maturities corresponding to the awards’ expected term.

Expected Volatility. Due to the Company’s short trading history, expected term is estimated using average historical stock volatilities of comparable actively traded public companies within its industry over a period equal to the awards’ expected term.

Dividend rate. The expected dividend rate was assumed to be zero as the Company has not paid and does not anticipate paying any dividends in the foreseeable future.

Fair value of common stock. For stock options granted subsequent to the Company’s IPO, fair value is based on the closing price of its common stock reported on Nasdaq on the date of grant. Prior to the Company’s IPO, because there was no public market for its common stock, the fair value was determined by its board of directors, with input from management and valuation reports performed by third-party valuation specialists.

Restricted Stock Units

The following table summarizes RSU activity for the year ended December 31, 2023:


	RSUs
	Number of Shares	Weighted-Average Grant Date Fair Value
Outstanding—December 31, 2022	2,785,510	$	9.87
Granted	2,583,691	$	4.81
Vested	(1,392,500)	$	8.63
Forfeited	(469,618)	$	8.27
Outstanding—December 31, 2023	3,507,083	$	6.85

The above rollforward includes 90,000 performance-based RSUs with a grant date fair value of 4.82 per share granted during the twelve months ended months ended December 31, 2023. Expense related to performance-based RSUs is recognized ratably during the 3-year performance period, based on the probability of attaining the performance targets. The potential number of shares that may be earned is determined on a pro-rata basis based on performance up to a maximum of 100%.

All of the Company’s restricted stock awards and certain of the Company’s RSUs issued prior to the Company’s IPO had a performance condition, which was satisfied upon the IPO and the expense was recognized based on the requisite service period that has been met to date. Stock-based compensation expense for unvested awards is being recognized over the remainder of the service period.

For restricted stock units granted subsequent to the Company’s IPO, the fair value is based on the closing price of its common stock reported on Nasdaq on the date of grant. Prior to the Company’s IPO, because there was no public market for its common stock, the fair value was determined by its board of directors, with input from management and valuation reports performed by third-party valuation specialists. The weighted-average grant-date fair value for restricted stock units granted in 2023, 2022 and 2021 was $4.81, $8.98 and $13.53, respectively. As of December 31, 2023, the unrecognized stock-based compensation cost related to unvested RSUs was $23.0 million, which is expected to be recognized over a weighted average period of 2.6 years.

Stock Appreciation Rights (SARs)

In 2014, the Company granted SARs with a contractual term of 10 years, to certain employees, which vest subject to performance conditions and can be cash or share settled, at the option of the employee. The Company’s SARs vested upon the Company’s IPO and are accounted for as liability awards, with remeasurement at the end of each reporting period until these awards are settled. There were 2,861 and 3,390 SARs awards outstanding as of December 31, 2023 and 2022, respectively, reflecting forfeitures of 529 SARs in 2023. These awards have a weighted average exercise price of $7.67 and expire in September 2024.

Stock-Based Awards Granted Outside of Equity Incentive Plans

Warrants

The Company issued equity classified warrants to purchase shares of common stock to certain third-party advisors, consultants and financial institutions, which expire between 2024 and 2026. As of December 31, 2023 and 2022, there were 188,235 warrants outstanding with a weighted average excise price of $7.57. The weighted average remaining contractual term as of December 31, 2023 was 1.37 years.

Employee Stock Purchase Plan

In July 2021, the Board and the Company’s stockholders approved a new 2021 Employee Stock Purchase Plan (the “ESPP”), which became effective in connection with the closing of the Company’s IPO. A total of approximately 2,352,280 shares of the Company’s common stock have been reserved for issuance under the ESPP, which is subject to annual automatic evergreen increases. As of December 31, 2023, no shares have been purchased under the ESPP as it is not yet active.

Consolidated Statements of Convertible Preferred Stock and Stockholders’ Equity (Deficit) - USD ($)	Total	Common Stock	Additional Paid-In Capital	Treasury Stock	Total Accumulated Other Comprehensive Loss	Accumulated Deficit
Convertible Preferred Stock, Balance - beginning of period (in shares) at Dec. 31, 2020	27,652,449
Convertible Preferred Stock, Balance - beginning of period at Dec. 31, 2020	$ 162,444,000
Increase (Decrease) in Temporary Equity [Roll Forward]
Conversion of convertible preferred stock to common stock (in shares)	(27,652,449)
Conversion of convertible preferred stock to common stock	$ (162,444,000)
Convertible Preferred Stock, Balance - end of period (in shares) at Dec. 31, 2021	0
Convertible Preferred Stock, Balance - end of period at Dec. 31, 2021	$ 0
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Stock Issued During Period, Value, Conversion of Convertible Securities	162,444,000	$ 28,000	$ 162,416,000
Stock Issued During Period, Value, New Issues	145,105,000	$ 8,000	145,097,000
Balance - beginning of period (in shares) at Dec. 31, 2020		17,439,488
Balance - beginning of period at Dec. 31, 2020	(79,813,000)	$ 17,000	95,055,000	$ (2,350,000)	$ (4,290,000)	$ (168,245,000)
Treasury stock, beginning balance (in shares) at Dec. 31, 2020				(280,686)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Conversion of convertible preferred stock to common stock (in shares)		28,091,267
Issuance of common stock from initial public offering (in shares)		8,000,000
Exercised (in shares)		(1,970,110)		(56,262)
Exercise of employee stock options, net of shares withheld for taxes	5,273,000	$ 2,000	5,937,000	$ (666,000)
Vesting of restricted stock units (in shares)		2,514,210		(976,733)
Vesting of restricted stock units, net of shares withheld for taxes	(13,488,000)	$ 3,000	(3,000)	$ (13,488,000)
Stock-based compensation	26,443,000		26,443,000
Other comprehensive income (loss)	(184,000)				(184,000)
Net income (loss)	10,995,000					10,995,000
Balance - end of period (in shares) at Dec. 31, 2021		58,015,075
Treasury stock, ending balance (in shares) at Dec. 31, 2021				(1,313,681)
Balance - end of period at Dec. 31, 2021	$ 256,775,000	$ 58,000	434,945,000	$ (16,504,000)	(4,474,000)	(157,250,000)
Convertible Preferred Stock, Balance - end of period (in shares) at Dec. 31, 2022	0
Convertible Preferred Stock, Balance - end of period at Dec. 31, 2022	$ 0
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Exercised (in shares)		(827,319)		(95,138)
Exercise of employee stock options, net of shares withheld for taxes	2,730,000	$ 1,000	4,154,000	$ (1,425,000)
Vesting of restricted stock units (in shares)		976,840		150,327
Vesting of restricted stock units, net of shares withheld for taxes	(1,047,000)	$ 1,000	(1,000)	$ (1,047,000)
Acquisition consideration (in shares)		355,786
Acquisition consideration	4,190,000		4,190,000
Shares repurchased under the share repurchase program (in shares)				(6,389,129)
Shares repurchased under the share repurchase program	(30,192,000)			$ (30,192,000)
Stock-based compensation	12,543,000		12,543,000
Other comprehensive income (loss)	(5,439,000)				(5,439,000)
Net income (loss)	(24,581,000)					(24,581,000)
Other	$ 2,807,000					2,807,000
Balance - end of period (in shares) at Dec. 31, 2022	52,226,745	60,175,020
Treasury stock, ending balance (in shares) at Dec. 31, 2022	(7,948,275)			(7,948,275)
Balance - end of period at Dec. 31, 2022	$ 217,786,000	$ 60,000	455,831,000	$ (49,168,000)	(9,913,000)	(179,024,000)
Convertible Preferred Stock, Balance - end of period (in shares) at Dec. 31, 2023	0
Convertible Preferred Stock, Balance - end of period at Dec. 31, 2023	$ 0
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Exercised (in shares)	0
Vesting of restricted stock units (in shares)		1,392,500		163,265
Vesting of restricted stock units, net of shares withheld for taxes	$ (752,000)	$ 2,000	(2,000)	$ (752,000)
Shares repurchased under the share repurchase program (in shares)				(3,729,462)
Shares repurchased under the share repurchase program	(17,769,000)			$ (17,769,000)
Stock-based compensation	12,696,000		12,696,000
Other comprehensive income (loss)	861,000				861,000
Net income (loss)	$ 10,242,000					10,242,000
Balance - end of period (in shares) at Dec. 31, 2023	49,726,518	61,567,520
Treasury stock, ending balance (in shares) at Dec. 31, 2023	(11,841,002)			(11,841,002)
Balance - end of period at Dec. 31, 2023	$ 223,064,000	$ 62,000	$ 468,525,000	$ (67,689,000)	$ (9,052,000)	$ (168,782,000)

Investments in Marketable Securities - Narrative (Details) - USD ($)	12 Months Ended
	Dec. 31, 2023	Dec. 31, 2022
Investments, Debt and Equity Securities [Abstract]
Proceeds from sale available-for-sale marketable securities	$ 81,700,000
Debt Securities, Available-for-Sale, Realized Gain (Loss)	500,000
Allowance for credit losses	$ 0	$ 0

Net Income Loss Per Common Share (Tables)

12 Months Ended

Dec. 31, 2023

Earnings Per Share [Abstract]

Schedule of Earnings Per Share, Basic and Diluted

The following table presents the computation of the Company’s basic and diluted net income (loss) per share attributable to its common stockholders:


	Year Ended December 31,
	2023		2022		2021
	(Dollars in thousands)
Numerator:
Basic and diluted:
Net income (loss) attributed to common stockholders - basic	$	10,242	$	(24,581)	$	10,995
Adjustments related to convertible debt (1)	(13,930)		—		—
Net (loss) income attributable to common stockholders - diluted	$	(3,688)	$	(24,581)	$	10,995

Denominator:
Basic weighted-average shares	50,900,422		55,615,385		35,159,757
Weighted average dilutive share equivalents:
Convertible debt (1)	6,064,877		—		—
Preferred stock, stock options, warrants and RSUs	—		—		18,734,590
Diluted weighted-average shares	56,965,299		55,615,385		53,894,347

Net income (loss) per share attributable to common stockholders:
Basic	$	0.20	$	(0.44)	$	0.31
Diluted	$	(0.06)	$	(0.44)	$	0.20

____________________

(1) The Company uses the if-converted method to calculate the dilutive impact of the Convertible Notes, which assumes share settlement as of the beginning of the period if the effect is more dilutive than cash settlement.

Schedule of Weighted Average Shares Excluded From Calculation of Diluted Income (Loss) Per Share

The following weighted-average shares have been excluded from the calculation of diluted net income (loss) per share attributable to common stockholders for each period presented because they are anti-dilutive:


	Year Ended December 31,
	2023	2022	2021
Convertible debt	—	9,440,000	9,440,000
Options to purchase common stock	2,523,643	2,681,436	1,080,703
Warrants	188,235	188,235	—
Restricted stock units	3,326,964	2,785,510	—
Total shares excluded from diluted net income (loss) per share	6,038,842	15,095,181	10,520,703

Income Taxes - Components of (Loss) Income From Continuing Operations Before Income Taxes (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2021
Income Tax Disclosure [Abstract]
United States	$ 16,837	$ (11,707)	$ (38,175)
Foreign	(482)	(6,866)	23,640
Income (loss) before provision (benefit) for income taxes	$ 16,355	$ (18,573)	$ (14,535)

- Definition

Amount of income (loss) from continuing operations, including income (loss) from equity method investments, before deduction of income tax expense (benefit), and income (loss) attributable to noncontrolling interest.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Topic 944
-SubTopic 220
-Name Accounting Standards Codification
-Section S99
-Paragraph 1
-Subparagraph (SX 210.7-04(11))
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147483586/944-220-S99-1

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Topic 280
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 22
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482810/280-10-50-22

Reference 3: http://www.xbrl.org/2003/role/disclosureRef
-Topic 280
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 30
-Subparagraph (b)
-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 32
-Subparagraph (f)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482810/280-10-50-32

Reference 5: http://www.xbrl.org/2003/role/exampleRef
-Topic 280
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 31
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482810/280-10-50-31

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

Reference 7: http://www.xbrl.org/2003/role/disclosureRef
-Topic 942
-SubTopic 235
-Name Accounting Standards Codification
-Section S99
-Paragraph 1
-Subparagraph (SX 210.9-05(b)(2))
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147479557/942-235-S99-1

Reference 8: http://fasb.org/us-gaap/role/ref/legacyRef
-Name Accounting Standards Codification
-Section 25
-Paragraph 1
-SubTopic 20
-Topic 940
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481913/940-20-25-1

Reference 9: http://fasb.org/us-gaap/role/ref/legacyRef
-Topic 220
-SubTopic 10
-Name Accounting Standards Codification
-Section S99
-Paragraph 2
-Subparagraph (SX 210.5-03(10))
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147483621/220-10-S99-2

Reference 10: http://fasb.org/us-gaap/role/ref/legacyRef
-Topic 942
-SubTopic 220
-Name Accounting Standards Codification
-Section S99
-Paragraph 1
-Subparagraph (SX 210.9-04(15))
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147483589/942-220-S99-1

+ Details

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)	$ 10,242	$ (24,581)	$ 10,995
Adjustments to reconcile net income (loss) to net cash provided by operating activities:
(Gain) loss on convertible debt	(22,594)	0	42,049
Stock-based compensation	12,141	11,660	26,307
Depreciation and amortization of property and equipment	6,915	11,125	7,499
Amortization of capitalized software development costs	9,633	9,540	8,441
Amortization of intangible assets	4,154	6,254	3,530
Provision for credit losses	8,008	3,291	2,647
Non-cash operating lease expense	4,453	4,309	0
Deferred income taxes	(4,312)	(3,853)	(31,810)
Amortization of discount on marketable securities	(3,604)	(1,975)	0
Other	(717)	(644)	3,433
Changes in operating assets and liabilities:
Accounts receivable	(12,946)	5,283	(31,496)
Prepaid expenses and other current assets	843	(18,419)	(9,975)
Accounts payable and other current liabilities	(1,228)	7,965	36,106
Operating lease liabilities	(4,297)	(4,246)	0
Deferred revenue	1,621	2,184	(667)
Other non-current assets and liabilities	5,434	(4,080)	(10,297)
Net cash provided by operating activities	13,746	3,813	56,762
CASH FLOWS FROM INVESTING ACTIVITIES:
Acquisition of business, net of cash acquired	(389)	(45,151)	0
Purchases of property and equipment	(10,127)	(13,375)	(9,743)
Capitalized software development costs	(10,107)	(12,569)	(10,311)
Purchases of marketable securities	(131,543)	(262,171)	0
Proceeds from maturities of marketable securities	221,878	15,500	0
Other	(72)	(132)	(47)
Net cash provided by (used in) investing activities	69,640	(317,898)	(20,101)
CASH FLOWS FROM FINANCING ACTIVITIES:
Repayment of long-term debt obligations	(96,170)	0	0
Treasury stock repurchases and share withholdings on vested awards	(18,521)	(32,664)	(14,154)
Principal payments on finance lease obligations	(1,830)	(3,190)	(4,340)
Proceeds from exercise of common stock options and warrants	0	4,155	5,939
Proceeds from IPO issuance of common stock, net of underwriting costs	0	0	148,800
Payment of initial public offering transaction costs	0	0	(3,695)
Proceeds from issuance of debt	0	0	200,000
Payment of deferred financing costs	0	0	(6,656)
Payment of contingent consideration liability up to acquisition-date fair value	(547)	0	0
Net cash (used in) provided by financing activities	(117,068)	(31,699)	325,894
Effect of exchange rate changes	(1,004)	(4,043)	(1,030)
Net (decrease) increase in cash, cash equivalents and restricted cash	(34,686)	(349,827)	361,525
Cash, cash equivalents and restricted cash — Beginning	105,765	455,592	94,067
Cash, cash equivalents and restricted cash — Ending	71,079	105,765	455,592
RECONCILIATION OF CASH, CASH EQUIVALENTS, AND RESTRICTED CASH TO THE CONSOLIDATED BALANCE SHEETS
Cash and cash equivalents	70,889	105,580	455,397
Restricted cash, included in other assets	190	185	195
Total cash, cash equivalents, and restricted cash	71,079	105,765	455,592
SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION:
Cash paid for income taxes, net of refunds	8,599	6,887	6,742
Cash paid for interest	6,027	7,463	587
SUPPLEMENTAL SCHEDULE OF NONCASH INVESTING AND FINANCING ACTIVITIES:
Acquisition consideration payable	181	1,476	0
Operating lease right-of-use assets obtained in exchange for lease obligations	5,061	1,247	0
Purchases of property and equipment included in accounts payable	1,094	2,723	15
Stock-based compensation capitalized for software development costs	555	883	195
Stock consideration issued for acquisition of a business	0	4,190	0
Conversion of preferred stock to common stock	0	0	162,444
Property and equipment financed under capital obligation arrangements	0	0	1,837
Unpaid deferred financing costs in accounts payable and accrued expenses	$ 0	$ 0	$ 28

Acquisition	12 Months Ended
Acquisition	Dec. 31, 2023
Business Combination and Asset Acquisition [Abstract]
Acquisition	2. Acquisition On January 5, 2022, the Company acquired all of the outstanding shares of video intelligence AG (“vi”), a Swiss-based contextual video technology company for digital media owners, for an aggregate purchase price of approximately $54.2 million, which was paid in the form of cash and Outbrain common stock. The equity portion of the purchase price was comprised of 355,786 shares of the Company’s common stock with a fair value of $4.2 million. The first installment of $37.3 million in cash and the equity portion were paid at closing, an additional $10.6 million paid in the third quarter of 2022, and $1.3 million was paid in 2023. The consideration paid during the first quarter of 2023 included $0.9 million of contingent consideration, $0.5 million of which was recognized on the acquisition date, and $0.4 million recorded as a fair value adjustment in the Company’s consolidated statement of operations for the year ended December 31, 2022, based on the market price of the Company’s stock determined one year from closing. This acquisition expanded the Company’s video product offerings to include in-stream high-quality video content, delivering a better user experience and more value to its advertisers. This acquisition was accounted for as a business combination under the acquisition method of accounting and the results of operations of vi have been included in the Company’s results of operations since January 5, 2022. The Company incurred transaction costs relating to the vi acquisition of $0.2 million, which were included in general and administrative expenses in the Company’s consolidated statement of operations for the year ended December 31, 2022. The results of operations for vi have been included in the Company’s audited consolidated financial statements beginning on January 5, 2022.

Investments in Marketable Securities (Tables)

12 Months Ended

Dec. 31, 2023

Investments, Debt and Equity Securities [Abstract]

Debt Securities, Available-for-Sale

All of the Company’s debt securities are classified as available-for-sale. The Company’s cash equivalents and investments as of December 31, 2023 and December 31, 2022 consisted of the following:


		December 31, 2023
(In thousands)	Fair Value Level	Amortized cost (1)		Gross Unrealized Gains		Gross Unrealized Losses		Estimated Fair Value		Cash Equivalents		Short-term investments		Long-term investments
Money market funds	1	$	15,355	$	—	$	—	$	15,355	$	15,355	$	—	$	—
U.S. Treasuries	2	14,977		1		(29)		14,949		3,497		11,452		—
U.S. government bonds	2	39,048		40		(114)		38,974		—		20,762		18,212
Commercial paper	2	9,422		11		(3)		9,430		—		9,430		—
U.S. Corporate bonds	2	100,146		275		(197)		100,224		—		52,669		47,555
Total cash equivalents and investments		$	178,948	$	327	$	(343)	$	178,932	$	18,852	$	94,313	$	65,767


		December 31, 2022
(In thousands)	Fair Value Level	Amortized cost (1)		Gross Unrealized Gains		Gross Unrealized Losses		Estimated Fair Value		Cash Equivalents		Short-term investments		Long-term investments
Money market funds	1	$	39,198	$	—	$	—	$	39,198	$	39,198	$	—	$	—
U.S. Treasuries	2	31,721		—		(317)		31,404		—		23,701		7,703
U.S. government bonds	2	77,259		—		(899)		76,360		—		52,254		24,106
Commercial paper	2	43,126		3		(161)		42,968		—		42,968		—
U.S. Corporate bonds	2	95,599		29		(694)		94,934		—		47,982		46,952
Total cash equivalents and investments		$	286,903	$	32	$	(2,071)	$	284,864	$	39,198	$	166,905	$	78,761

___________________________

(1) The amortized cost of debt securities excludes accrued interest of $1.4 million and $1.0 million, respectively, as of December 31, 2023 and December 31, 2022.

Investments Classified by Contractual Maturity Date

The following table shows the fair value of the Company’s available-for-sale securities by contractual maturity:


	December 31, 2023
	(In thousands)
Within 1 year	$	113,165
After 1 year through 2 years	65,767
Total fair value	$	178,932

Debt Securities, Available-for-Sale, Unrealized Loss Position, Fair Value

The following table presents the fair value in investments and gross unrealized losses recorded in other comprehensive loss, by investment category and the length of time the securities have been in a continuous loss position:


	December 31, 2023
	Less than 12 Months				12 Months or More				Total
(In thousands)	Fair Value		Unrealized Loss		Fair Value		Unrealized Loss		Fair Value		Unrealized Loss
U.S. Treasuries	$	1,279	$	—	$	4,711	$	(29)	$	5,990	$	(29)
U.S. government bonds	6,798		(9)		16,964		(105)		23,762		(114)
Commercial paper	3,649		(3)		—		—		3,649		(3)
U.S. Corporate bonds	40,031		(119)		18,840		(78)		58,871		(197)
Total	$	51,757	$	(131)	$	40,515	$	(212)	$	92,272	$	(343)

- Definition

Tabular disclosure of investment in debt security measured at fair value with change in fair value recognized in other comprehensive income (available-for-sale).

+ References

Reference 1: http://www.xbrl.org/2009/role/commonPracticeRef
-Topic 320
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 9
-Subparagraph (a)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481800/320-10-50-9

Reference 2: http://www.xbrl.org/2009/role/commonPracticeRef
-Topic 320
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 3
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481800/320-10-50-3

Reference 3: http://www.xbrl.org/2009/role/commonPracticeRef
-Topic 320
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 2
-Subparagraph (b)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481800/320-10-50-2

Reference 4: http://www.xbrl.org/2009/role/commonPracticeRef
-Topic 320
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 2
-Subparagraph (c)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481800/320-10-50-2

Reference 5: http://www.xbrl.org/2009/role/commonPracticeRef
-Topic 320
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 2
-Subparagraph (a)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481800/320-10-50-2

Reference 6: http://www.xbrl.org/2009/role/commonPracticeRef
-Topic 320
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 2
-Subparagraph (aa)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481800/320-10-50-2

Reference 7: http://www.xbrl.org/2009/role/commonPracticeRef
-Topic 320
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 2
-Subparagraph (aaa)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481800/320-10-50-2

Reference 8: http://www.xbrl.org/2009/role/commonPracticeRef
-Topic 320
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 2
-Subparagraph (d)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481800/320-10-50-2

Reference 9: http://www.xbrl.org/2009/role/commonPracticeRef
-Topic 320
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 3
-Subparagraph (a)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481800/320-10-50-3

Reference 10: http://www.xbrl.org/2009/role/commonPracticeRef
-Topic 320
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 3
-Subparagraph (b)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481800/320-10-50-3

Reference 11: http://www.xbrl.org/2009/role/commonPracticeRef
-Topic 320
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 3
-Subparagraph (c)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481800/320-10-50-3

Reference 12: http://www.xbrl.org/2009/role/commonPracticeRef
-Topic 320
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 3
-Subparagraph (d)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481800/320-10-50-3

+ Details

Stock-based Compensation (Tables)

12 Months Ended

Dec. 31, 2023

Share-Based Payment Arrangement [Abstract]

Schedule of Stock-Based Compensation

The following table summarizes stock-based compensation expense recognized in the Company’s consolidated statements of operations for the periods presented:


	Year Ended December 31,
	2023		2022		2021
	(In thousands)
Research and development	$	2,971	$	2,355	$	3,959
Sales and marketing	4,587		4,938		8,656
General and administrative	4,583		4,367		13,692
Total stock-based compensation	$	12,141	$	11,660	$	26,307	(1)
Tax benefit related to stock-based compensation expense	$	1,727	$	1,560	$	4,482

__________________________

Summary of Stock Option

The following table summarizes stock option activity for the year ended December 31, 2023:


	Stock Options
	Number of Shares	Weighted- Average Exercise Price		Weighted- Average Remaining Contractual Term (Years)	Aggregate Intrinsic Value of Outstanding Options (In thousands)
Outstanding — December 31, 2022	2,681,436	$	9.08	4.49	$	—
Granted	—	$	—
Exercised	—	$	—
Forfeited/expired	(271,883)	$	8.29
Outstanding — December 31, 2023	2,409,553	$	9.17	3.73	$	—
Exercisable — December 31, 2023	2,195,933	$	8.98	3.41	$	—

Schedule of Weighted-Average Assumptions

The estimated grant-date fair value of 37,624 stock options granted in 2021 was calculated using the Black-Scholes option pricing model, based on the following assumptions and inputs, each of which is subjective and generally requires significant judgment:


	Year Ended December 31,
	2021
Grant date fair value	$5.95
Expected term (in years)	6.03
Risk-free interest rate	1.29	%
Expected volatility	43	%
Dividend rate	0	%

Summary of RSU Activity

The following table summarizes RSU activity for the year ended December 31, 2023:


	RSUs
	Number of Shares	Weighted-Average Grant Date Fair Value
Outstanding—December 31, 2022	2,785,510	$	9.87
Granted	2,583,691	$	4.81
Vested	(1,392,500)	$	8.63
Forfeited	(469,618)	$	8.27
Outstanding—December 31, 2023	3,507,083	$	6.85

Income Taxes - Narrative (Details) - USD ($) $ in Thousands	3 Months Ended	12 Months Ended
Income Taxes - Narrative (Details) - USD ($) $ in Thousands	Dec. 31, 2021	Dec. 31, 2023	Dec. 31, 2022
Tax Credit Carryforward [Line Items]
Increase (decrease) in net valuation allowance		$ 700	$ 4,900
Valuation allowance		16,309	15,629
Excise tax on net stock repurchases, liability		100
Net operating losses subject to annual limitation		2,700
Decrease in unrecognized tax benefits is reasonably possible		5,600
Accrued interest and penalties on unrecognized tax benefits	$ (100)		900
Domestic Tax Authority
Tax Credit Carryforward [Line Items]
Valuation allowance released	$ 38,100
Increase (decrease) in net valuation allowance		500	2,800
Net operating loss carryforwards		2,700	13,200
Domestic Tax Authority \| Internal Revenue Service (IRS)
Tax Credit Carryforward [Line Items]
Tax credits		400
State
Tax Credit Carryforward [Line Items]
Net operating loss carryforwards		116,000	117,500
Foreign \| Swiss Federal Tax Administration (FTA)
Tax Credit Carryforward [Line Items]
Net operating loss carryforwards		13,200
Foreign \| UK
Tax Credit Carryforward [Line Items]
Tax credits		$ 1,100	$ 1,000

Segment and Geographic Information - Long Lived Assets, Net (Details) - USD ($) $ in Thousands	Dec. 31, 2023	Dec. 31, 2022
Segment Reporting, Asset Reconciling Item [Line Items]
Total long-lived assets, net	$ 54,606	$ 50,955
USA
Segment Reporting, Asset Reconciling Item [Line Items]
Total long-lived assets, net	44,466	43,191
EMEA
Segment Reporting, Asset Reconciling Item [Line Items]
Total long-lived assets, net	9,685	7,181
Other
Segment Reporting, Asset Reconciling Item [Line Items]
Total long-lived assets, net	$ 455	$ 583

Organization, Description of Business and Summary of Significant Accounting Policies - Foreign Currency (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2021
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Foreign Currency Transaction Loss, before Tax	$ 1.0	$ 2.1	$ 3.1

Leases

12 Months Ended

Dec. 31, 2023

Leases [Abstract]

Leases

8. Leases

The Company leases certain equipment and computers under finance lease arrangements, as well as office facilities and managed data center facilities under non-cancelable operating lease arrangements for its U.S. and international locations that expire on various dates through 2032. These arrangements require the Company to pay certain operating expenses, such as taxes, repairs and insurance and contain renewal and escalation clauses. The Company’s options to extend or terminate a lease are not included in the lease terms, unless the Company is reasonably certain it will exercise that option. The Company’s leases generally do not contain any material restrictive covenants.

The Company’s minimum lease payments include fixed payments for non-lease components included in the lease agreement, but exclude variable lease payments that are not dependent on an index or rate, such as common area maintenance, operating expenses, utilities, or other costs that are subject to fluctuations from period to period. Non-lease components that are variable in nature are recorded as variable lease expenses in the period incurred.

The following table summarizes assets and liabilities related to the Company’s operating and finance leases:


	Consolidated Balance Sheet Location	December 31, 2023		December 31, 2022
		(In thousands)
Lease assets
Operating leases	Operating lease right-of-use assets, net	$	12,145	$	11,065
Finance leases	Property, equipment and capitalized software, net	226		1,858
Total lease assets		$	12,371	$	12,923

Lease liabilities
Current liabilities:
Operating leases	Accrued and other current liabilities	$	3,684	$	3,236
Finance leases	Accrued and other current liabilities	254		1,758

Non-current liabilities:
Operating leases	Operating lease liabilities, non-current	9,217		8,445
Finance leases	Other liabilities	—		254
Total lease liabilities		$	13,155	$	13,693

The following table presents the components of the Company’s total lease expense:


		Twelve Months Ended December 31,
	Consolidated Statements of Operations Location	2023		2022
		(In thousands)
Operating lease cost
Fixed lease costs	Cost of revenue and operating expenses	$	4,453	$	4,309
Variable lease costs	Operating Expenses	207		136
Short-term lease costs	Cost of revenue and operating expenses	578		564
Finance lease cost:
Depreciation	Cost of revenue	1,632		2,962
Interest	Interest expense	83		259
Total lease cost		$	6,953	$	8,230

As of December 31, 2023, the maturities of the Company's lease liabilities under operating and finance leases were as follows:


Year	Operating Leases		Finance Leases
	(In thousands)
2024	$	4,481	$	256
2025	4,012		—
2026	2,710		—
2027	2,104		—
2028	755		—
Thereafter	1,064		—
Total minimum payments required	$	15,126	$	256
Less: imputed interest	(2,225)		(2)
Total present value of lease liabilities	$	12,901	$	254

As of December 31, 2023, the Company entered into one new operating lease agreement that has not yet commenced with future lease payments of approximately $0.6 million. The lease will commence in the first quarter of 2024 and has a lease term of two years.

The following table summarizes weighted-average lease terms and discount rates for the Company’s leases:

December 31, 2023

December 31, 2022

Weighted-average remaining lease term (in years)

Operating leases

4.07 years

3.87 years

Finance leases

0.21 years

1.05 years

Weighted-average discount rate

Operating leases

7.30%

5.82%

Finance leases

7.30%

7.34%

Supplemental cash flow information related to the Company’s leases is as follows:


	Year Ended December 31, 2023		Year Ended December 31, 2022
	(In thousands)
Cash paid for amounts included in measurement of lease liabilities:
Operating cash outflows from operating leases	$	4,297	$	4,246
Cash flows from finance leases	$	1,830	$	3,190
New operating lease assets obtained in exchange for new lease obligations	$	5,061	$	1,247

Leases

8. Leases

The following table summarizes assets and liabilities related to the Company’s operating and finance leases:


	Consolidated Balance Sheet Location	December 31, 2023		December 31, 2022
		(In thousands)
Lease assets
Operating leases	Operating lease right-of-use assets, net	$	12,145	$	11,065
Finance leases	Property, equipment and capitalized software, net	226		1,858
Total lease assets		$	12,371	$	12,923

Lease liabilities
Current liabilities:
Operating leases	Accrued and other current liabilities	$	3,684	$	3,236
Finance leases	Accrued and other current liabilities	254		1,758

Non-current liabilities:
Operating leases	Operating lease liabilities, non-current	9,217		8,445
Finance leases	Other liabilities	—		254
Total lease liabilities		$	13,155	$	13,693

The following table presents the components of the Company’s total lease expense:


		Twelve Months Ended December 31,
	Consolidated Statements of Operations Location	2023		2022
		(In thousands)
Operating lease cost
Fixed lease costs	Cost of revenue and operating expenses	$	4,453	$	4,309
Variable lease costs	Operating Expenses	207		136
Short-term lease costs	Cost of revenue and operating expenses	578		564
Finance lease cost:
Depreciation	Cost of revenue	1,632		2,962
Interest	Interest expense	83		259
Total lease cost		$	6,953	$	8,230

As of December 31, 2023, the maturities of the Company's lease liabilities under operating and finance leases were as follows:


Year	Operating Leases		Finance Leases
	(In thousands)
2024	$	4,481	$	256
2025	4,012		—
2026	2,710		—
2027	2,104		—
2028	755		—
Thereafter	1,064		—
Total minimum payments required	$	15,126	$	256
Less: imputed interest	(2,225)		(2)
Total present value of lease liabilities	$	12,901	$	254

The following table summarizes weighted-average lease terms and discount rates for the Company’s leases:

December 31, 2023

December 31, 2022

Weighted-average remaining lease term (in years)

Operating leases

4.07 years

3.87 years

Finance leases

0.21 years

1.05 years

Weighted-average discount rate

Operating leases

7.30%

5.82%

Finance leases

7.30%

7.34%

Supplemental cash flow information related to the Company’s leases is as follows:


	Year Ended December 31, 2023		Year Ended December 31, 2022
	(In thousands)
Cash paid for amounts included in measurement of lease liabilities:
Operating cash outflows from operating leases	$	4,297	$	4,246
Cash flows from finance leases	$	1,830	$	3,190
New operating lease assets obtained in exchange for new lease obligations	$	5,061	$	1,247

Stock-based Compensation - Stock Appreciation Rights (Details) - SARs - $ / shares	12 Months Ended
	Dec. 31, 2014	Dec. 31, 2023	Dec. 31, 2022
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Contractual term of shares granted	10 years
Number of shares outstanding		2,861	3,390
Weighted average exercise price		$ 7.67

- 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

Organization, Description of Business and Summary of Significant Accounting Policies - Segment Information (Details)	12 Months Ended
	Dec. 31, 2023 segment
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Number of reportable segment	1
Number of operating segment	1

Balance Sheet Components - Property, Equipment and Capitalized Software (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2021
Property, Plant and Equipment [Line Items]
Property, equipment, and capitalized software, gross	$ 147,537	$ 134,370
Less: accumulated depreciation and amortization	(105,076)	(94,480)
Accumulated depreciation and amortization	42,461	39,890
Capitalized software development costs	10,700	13,500
Accumulated amortization of capitalized software development costs	57,400	47,800
Finance Lease Amortization	1,632	2,962
Capitalized software development costs
Property, Plant and Equipment [Line Items]
Property, equipment, and capitalized software, gross	78,389	67,685
Computer and equipment
Property, Plant and Equipment [Line Items]
Property, equipment, and capitalized software, gross	61,529	59,536
Leasehold improvements
Property, Plant and Equipment [Line Items]
Property, equipment, and capitalized software, gross	3,300	2,859
Software
Property, Plant and Equipment [Line Items]
Property, equipment, and capitalized software, gross	3,221	3,113
Furniture and fixtures
Property, Plant and Equipment [Line Items]
Property, equipment, and capitalized software, gross	1,098	1,177
Computer Equipment And Software \| Finance Leases, Net
Property, Plant and Equipment [Line Items]
Less: accumulated depreciation and amortization	(25,800)	(23,900)
Property, equipment and capitalized software, net	200	1,900
Finance Lease Amortization	$ 1,600	$ 2,900	$ 3,800

Income Taxes - Components of Income Tax Expense (Benefit) (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2021
Current provisions for income taxes:
Federal	$ 5,177	$ 0	$ 0
State	57	744	541
Foreign	5,191	9,117	5,739
Total current provision for income taxes	10,425	9,861	6,280
Deferred tax benefit:
Federal	(2,427)	(792)	(25,787)
State	446	(1,153)	(5,558)
Foreign	(2,331)	(1,908)	(465)
Total deferred tax benefit	(4,312)	(3,853)	(31,810)
Provision (benefit) for income taxes	$ 6,113	$ 6,008	$ (25,530)

Audit Information	12 Months Ended
Audit Information	Dec. 31, 2023
Audit Information [Abstract]
Auditor Name	KPMG LLP
Auditor Location	New York, New York
Auditor Firm ID	185

Long Term Debt	12 Months Ended
Long Term Debt	Dec. 31, 2023
Debt Disclosure [Abstract]
Long Term Debt	Convertible Notes On July 1, 2021, the Company completed the sale of $200 million aggregate principal amount of senior subordinated secured notes due July 1, 2026 (the “Notes”), in a private placement to institutional investors affiliated with the funds managed by The Baupost Group, L.L.C. (the “Baupost Investors”), pursuant to a Senior Subordinated Secured Note Purchase Agreement dated July 1, 2021 (the “Note Purchase Agreement”). Upon issuance of the Notes, the Company recorded a $36.0 million discount in connection with the embedded conversion feature, as well as deferred financing costs of $6.0 million in its consolidated balance sheet. The Notes, which were exchanged and cancelled upon the IPO, bore interest that accrued at the rate of (i) prior to July 1, 2024, 10.0% per annum and (ii) on and after July 1, 2024, 14.5% per annum, payable quarterly and were guaranteed by certain of the Company’s wholly-owned subsidiaries and secured by a second priority lien on all of the Company’s and its subsidiaries’ tangible and intangible assets, subject to certain excluded assets, permitted liens and customary exceptions. On July 27, 2021, in connection with the closing of the Company’s IPO and pursuant to the terms of the Note Purchase Agreement, the Company exchanged $200 million aggregate principal amount of the Notes due July 1, 2026 for $236.0 million aggregate principal amount of the Convertible Notes, pursuant to an indenture, dated as of July 27, 2021 (the “Indenture”), between the Company and The Bank of New York Mellon, as trustee. Upon the issuance of such Convertible Notes, the Notes and the obligations of the Company and the guarantee thereunder have been canceled and extinguished. The Convertible Notes mature on July 27, 2026, unless earlier converted, redeemed or repurchased. In connection with the exchange of Notes to Convertible Notes, the Company recognized accelerated amortization of the unamortized discount and deferred issuance costs relating to the Notes totaling $42.0 million, which was recorded within gain (loss) on convertible debt in the Company’s consolidated statement of operations for the year ended December 31, 2021. Deferred financing costs related to Convertible Notes were not material. On April 14, 2023, the Company repurchased $118.0 million aggregate principal amount of the Convertible Notes out of the initially issued principal balance of $236.0 million via a privately negotiated repurchase agreement with Baupost Group Securities, L.L.C., the sole holder of the Convertible Notes, for approximately $96.2 million in cash, including accrued interest, representing a discount of approximately 19% to the principal amount of the repurchased notes. As a result, the Company recorded a pre-tax gain of approximately $22.6 million within gain (loss) on convertible debt in the Company’s consolidated statement of operations for the year ended December 31, 2023. Following the closing of the repurchase, the repurchased notes were cancelled by the Trustee, and $118.0 million principal amount of the Convertible Notes out of the initially issued principal balance of $236.0 million, remains outstanding as of December 31, 2023 and continues to be subject to the terms of the Indenture pursuant to which they were issued. Interest is payable semi-annually in arrears on January 27 and July 27 of each year, beginning on January 27, 2022, at a rate of 2.95% per year. The initial conversion rate for the Convertible Notes is 40 shares of the Company’s common stock per $1,000 principal amount of Convertible Notes (equivalent to an initial conversion price of $25 per share of the Company’s common stock), subject to adjustment. The Company may not redeem its outstanding Convertible Notes prior to July 27, 2024. On or after July 27, 2024, the Company may redeem for cash all or any portion of the Convertible Notes, at its option, if the last reported sale price of the common stock has been at least 130% of the conversion price then in effect for at least 20 trading days (whether or not consecutive) during any 30 consecutive trading day period (including the last trading day of such period) ending on, and including, the trading day immediately preceding the date on which the Company provides notice of redemption at a redemption price equal to 100% of the principal amount of the Convertible Notes to be redeemed plus accrued and unpaid interest to, but excluding, the redemption date. In addition, calling any Convertible Note for redemption will constitute a “make-whole fundamental change” (as defined in the Indenture) with respect to that Convertible Note, in which case the conversion rate applicable to the conversion of that Convertible Note will be increased if it is converted by holders after it is called for redemption. Holders may convert all or any portion of their Convertible Notes, in multiples of $1,000 principal amount, into shares of the Company’s common stock at any time until the second scheduled trading day immediately preceding the maturity date, at the conversion rate then in effect. The Company will settle conversions of the Convertible Notes by paying or delivering, as the case may be, cash, shares of common stock, or a combination thereof, at its election. Upon the occurrence of a fundamental change (as defined in the Indenture), subject to certain conditions, holders of the Convertible Notes may require the Company to repurchase for cash all or any portion of their Convertible Notes in principal amounts of $1,000 or an integral multiple thereof, at a repurchase price of the principal amount of the Convertible Notes to be repurchased, plus accrued and unpaid interest to, but excluding, the repurchase date. In addition, following certain corporate events that occur prior to the maturity date or if the Company delivers a notice of redemption, the Company will, in certain circumstances, increase the conversion rate for a holder who elects to convert its Convertible Notes in connection with such a corporate event or convert its Convertible Notes called for redemption during the related redemption period, as the case may be. The Indenture contains customary covenants and events of default. The Company was not required to bifurcate the embedded conversion feature and the Convertible Notes were not issued with a substantial premium. As such, the Company accounted for the Convertible Notes as a liability under the no proceeds allocated model. The Company calculates earnings per share using the if-converted method. Revolving Credit Facility On November 2, 2021, the Company entered into the Second Amended and Restated Loan and Security Agreement with SVB, which provides, subject to borrowing availability and certain other conditions, for revolving loans in an aggregate principal amount of up to $75.0 million (the “Facility”), with a $15.0 million sub-facility for letters of credit. On July 18, 2023, the Company entered into a first amendment to the Facility to convert the borrowing rate from LIBOR to SOFR and reduce the required level of domestic cash deposits that the Company is required to maintain at SVB. The Company’s borrowing availability under the Facility is calculated by reference to a borrowing base which is determined by specified percentages of eligible accounts receivable. The Facility will terminate on the earlier of (i) November 2, 2026 or (ii) 120 days prior to the maturity date of the Convertible Notes, unless the Convertible Notes have been converted to common equity securities of the Company. Outstanding loans under the Facility, as recently amended, accrue interest, at the Company’s option based upon borrowing availability under the Facility, at a rate equal to either (a) a base rate minus an applicable margin ranging from 1.5% to 1.0% per annum or (b) SOFR plus an applicable margin of 1.5% to 2.0% per annum, subject to a SOFR adjustment ranging from 0.10% to 0.15%, depending on the length of the borrowing. The undrawn portions of the commitments under the Facility are subject to a commitment fee at a rate ranging from 0.20% per annum to 0.30% per annum, based upon borrowing availability under the Facility. The Facility contains representations and warranties, including, without limitation, with respect to collateral; accounts receivable; financials; litigation, indictment and compliance with laws; disclosure and no material adverse effect, each of which is a condition to funding. Additionally, the Facility includes events of default and customary affirmative and negative covenants applicable to the Company and its subsidiaries, including, without limitation, restrictions on liens, indebtedness, investments, fundamental changes, dispositions, restricted payments and prepayment of the Convertible Notes and of junior indebtedness. The Facility contains a financial covenant that requires, in the event that credit extensions under the Facility equal or exceed 85% of the available commitments under the Facility or upon the occurrence of an event of default, the Company to maintain a minimum consolidated monthly fixed charge coverage ratio of 1.00. The obligations of the Company and the other subsidiary co-borrowers under the Facility are secured by a first-priority lien on substantially all the assets of the Company and such other subsidiary co-borrowers. As previously discussed in Note 7, on March 27, 2023, First Citizens Bank entered into an agreement with FDIC to acquire the Silicon Valley Bridge Bank, N.A, assuming all customer deposits and certain other liabilities of Silicon Valley Bridge Bank, N.A. As a result, the Facility remains in effect with First Citizens Bank. The Company was in compliance with all of the financial covenants under the Facility as of December 31, 2023 and December 31, 2022. As of December 31, 2023 and December 31, 2022, the Company had no borrowings outstanding under the Facility and its available borrowing capacity was $75.0 million and $70.7 million, respectively, based on the defined borrowing formula. Other assets in the Company’s consolidated balance sheets as of December 31, 2023 and December 31, 2022 included deferred financing costs of $0.3 million and $0.4 million, respectively, which are being amortized over the term of the Facility.

- Definition

The entire disclosure for information about short-term and long-term debt arrangements, which includes amounts of borrowings under each line of credit, note payable, commercial paper issue, bonds indenture, debenture issue, own-share lending arrangements and any other contractual agreement to repay funds, and about the underlying arrangements, rationale for a classification as long-term, including repayment terms, interest rates, collateral provided, restrictions on use of assets and activities, whether or not in compliance with debt covenants, and other matters important to users of the financial statements, such as the effects of refinancing and noncompliance with debt covenants.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Topic 470
-SubTopic 20
-Name Accounting Standards Codification
-Section 50
-Paragraph 1B
-Subparagraph (h)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481139/470-20-50-1B

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Topic 235
-SubTopic 10
-Name Accounting Standards Codification
-Section S99
-Paragraph 1
-Subparagraph (SX 210.4-08(c))
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147480678/235-10-S99-1

Reference 3: http://fasb.org/us-gaap/role/ref/legacyRef
-Topic 470
-Name Accounting Standards Codification
-Publisher FASB
-URI https://asc.fasb.org//470/tableOfContent

Reference 4: http://www.xbrl.org/2003/role/disclosureRef
-Topic 470
-SubTopic 20
-Name Accounting Standards Codification
-Section 50
-Paragraph 1B
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481139/470-20-50-1B

Reference 5: http://www.xbrl.org/2003/role/disclosureRef
-Topic 470
-SubTopic 20
-Name Accounting Standards Codification
-Section 50
-Paragraph 1B
-Subparagraph (g)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481139/470-20-50-1B

Reference 6: http://www.xbrl.org/2003/role/disclosureRef
-Topic 470
-SubTopic 20
-Name Accounting Standards Codification
-Section 50
-Paragraph 1B
-Subparagraph (i)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481139/470-20-50-1B

Reference 7: http://www.xbrl.org/2003/role/disclosureRef
-Topic 470
-SubTopic 20
-Name Accounting Standards Codification
-Section 50
-Paragraph 1C
-Subparagraph (a)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481139/470-20-50-1C

Reference 8: http://www.xbrl.org/2003/role/disclosureRef
-Topic 470
-SubTopic 20
-Name Accounting Standards Codification
-Section 50
-Paragraph 1C
-Subparagraph (b)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481139/470-20-50-1C

Reference 9: http://www.xbrl.org/2003/role/disclosureRef
-Topic 470
-SubTopic 20
-Name Accounting Standards Codification
-Section 50
-Paragraph 1C
-Subparagraph (c)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481139/470-20-50-1C

Reference 10: http://www.xbrl.org/2003/role/disclosureRef
-Topic 470
-SubTopic 20
-Name Accounting Standards Codification
-Section 50
-Paragraph 1E
-Subparagraph (b)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481139/470-20-50-1E

Reference 11: http://www.xbrl.org/2003/role/disclosureRef
-Topic 470
-SubTopic 20
-Name Accounting Standards Codification
-Section 50
-Paragraph 1I
-Subparagraph (a)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481139/470-20-50-1I

Reference 12: http://www.xbrl.org/2003/role/disclosureRef
-Topic 470
-SubTopic 20
-Name Accounting Standards Codification
-Section 50
-Paragraph 1I
-Subparagraph (b)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481139/470-20-50-1I

Reference 13: http://www.xbrl.org/2003/role/disclosureRef
-Topic 470
-SubTopic 20
-Name Accounting Standards Codification
-Section 50
-Paragraph 1I
-Subparagraph (d)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481139/470-20-50-1I

+ Details

Stockholders' Equity (Deficit) - Narrative (Details) $ / shares in Units, $ in Thousands		12 Months Ended
	Jul. 27, 2021 USD ($) $ / shares shares	Dec. 31, 2023 USD ($) $ / shares shares	Dec. 31, 2022 USD ($) $ / shares shares	Dec. 31, 2021 USD ($) shares	Dec. 14, 2022 USD ($) $ / shares	Feb. 28, 2022 USD ($)	Jul. 31, 2021 vote $ / shares shares	Dec. 31, 2020 shares
Stockholders' Equity [Line Items]
Common and preferred stock, shares authorized \| shares							1,100,000,000
Common stock, shares authorized \| shares		1,000,000,000	1,000,000,000				1,000,000,000
Common stock, par value (in usd per share) \| $ / shares		$ 0.001	$ 0.001				$ 0.001
Preferred stock, shares authorized \| shares		100,000,000	100,000,000				100,000,000
Preferred stock, par value (in usd per share) \| $ / shares		$ 0.001	$ 0.001				$ 0.001
Number of votes entitled to \| vote							1
Conversion of convertible preferred stock to common stock (in shares) \| shares	28,091,267
Stock Issued During Period, Value, Conversion of Convertible Securities \| $	$ 162,400			$ 162,444
Convertible preferred stock, shares issued \| shares		0	0
Convertible preferred stock, shares outstanding \| shares		0	0	0				27,652,449
Treasury stock, value, acquired, cost method \| $		$ 17,769	$ 30,192
Number of shares withheld to satisfy employee tax withholding obligations (in shares) \| shares		163,265	245,465	1,032,995
Fair value of shares withheld to satisfy employee tax withholding obligations \| $		$ 800	$ 2,500	$ 14,200
December 2022 Repurchase Program
Stockholders' Equity [Line Items]
Common stock, par value (in usd per share) \| $ / shares					$ 0.001
Stock repurchase program, authorized amount \| $					$ 30,000
Stock repurchase program, remaining authorized repurchase amount \| $		$ 12,400
Treasury stock, shares, acquired (in shares) \| shares		3,729,462
Treasury stock, value, acquired, cost method \| $		$ 17,800
February 2022 Repurchase Program
Stockholders' Equity [Line Items]
Stock repurchase program, authorized amount \| $						$ 30,000
Treasury stock, shares, acquired (in shares) \| shares			6,389,129
Treasury stock, value, acquired, cost method \| $			$ 30,200
Series F
Stockholders' Equity [Line Items]
Convertible preferred stock, conversion ratio	1.14
All Series Except Series F Convertible Preferred Stock
Stockholders' Equity [Line Items]
Convertible preferred stock, conversion ratio	1
IPO
Stockholders' Equity [Line Items]
Number of shares issued \| shares	8,000,000
Stock price (in usd per share) \| $ / shares	$ 20.00
Net proceeds from sale of stock \| $	$ 145,100
Deferred offering costs \| $	$ 3,700

Leases - Lease, Cost (Details) - USD ($) $ in Thousands	12 Months Ended
Leases - Lease, Cost (Details) - USD ($) $ in Thousands	Dec. 31, 2023	Dec. 31, 2022
Leases [Abstract]
Fixed lease costs	$ 4,453	$ 4,309
Variable lease costs	207	136
Short-term lease costs	578	564
Depreciation	1,632	2,962
Interest	83	259
Total lease cost	$ 6,953	$ 8,230

Stock-based Compensation - Warrant Activity (Details) - Warrants - $ / shares	12 Months Ended
	Dec. 31, 2023	Dec. 31, 2022
Weighted-Average Remaining Contractual Term and Aggregate Intrinsic Value
Number of shares outstanding	188,235	188,235
Outstanding, weighted- average remaining contractual term (years)	1 year 4 months 13 days
Weighted Average Exercise Price	$ 7.57	$ 7.57
Exercisable, weighted- average remaining contractual term (years)	1 year 4 months 13 days

Organization, Description of Business and Summary of Significant Accounting Policies (Policies)	12 Months Ended
	Dec. 31, 2023
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Basis of Presentation	Basis of Presentation The accompanying audited consolidated financial statements have been prepared in accordance with generally accepted accounting principles in the United States of America (“U.S. GAAP”). The accompanying audited consolidated financial statements include the accounts of Outbrain Inc. and its wholly owned subsidiaries. All intercompany accounts and transactions have been eliminated in consolidation. The share and per-share amounts for all periods presented in these audited consolidated financial statements and notes thereto reflect the effect of the 1-for-1.7 reverse stock split of the Company’s common and convertible preferred stock, which became effective on July 13, 2021, with the exception of the par value, which was not adjusted.
Use of Estimates	Use of Estimates The preparation of audited consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and related disclosures as of the date of the audited consolidated financial statements and the reported amounts of revenue and expenses during the reporting period. Estimates and judgments are based on historical information and on various other assumptions that the Company believes are reasonable under the circumstances. Estimates and assumptions made in the accompanying audited consolidated financial statements include, but are not limited to, the allowance for credit losses, sales allowance, software development costs eligible for capitalization, valuation of deferred tax assets, the useful lives of property and equipment, the useful lives and fair value of intangible assets, valuation of goodwill, the fair value of stock-based awards, and the recognition and measurement of income tax uncertainties and other contingencies. Actual results could differ materially from these estimates.
Reclassifications	Reclassifications Certain reclassifications have been made to the prior periods’ financial information in order to conform to the current period’s presentation.
Cash and Cash Equivalents, and Investments	Cash and Cash Equivalents and Investments The Company considers all highly liquid investments with maturities of three months or less when purchased to be cash equivalents. Cash and cash equivalents consist of cash on hand and highly liquid investments in money market funds, U.S. government bonds, U.S. treasuries and commercial paper. Most of the Company’s cash deposits are above the $250,000 Federal Deposit Insurance Corporation (“FDIC”) limit and, therefore, not insured. The Company’s investments in debt securities are classified as available-for-sale and are recorded at fair value. The Company classifies its investments in debt securities as short-term or long-term, based on each security’s maturity date. Unrealized gains and losses on available-for-sale securities are recognized in other comprehensive (loss) income (“OCI”), net of taxes. Although the Company does not have intent to sell its debt investments, the Company may sell them prior to their maturities for a variety of reasons, including portfolio diversification, credit quality, yields, and liquidity requirements. Any realized gains and losses on the sale of investments are determined based on a specific identification method and recorded within interest income and other (expense) income, net in the Company’s consolidated statements of operations. Restricted Cash Restricted cash represents security deposits for facility leases and is included in other assets in the accompanying consolidated balance sheets.
Accounts Receivable	Accounts Receivable and Allowance for Credit Losses Accounts receivable are recorded at invoiced amounts, net of allowances for credit losses, if applicable, and are unsecured and do not bear interest. Accounts receivable also includes earned and billable amounts not yet invoiced as of the end of the reporting period.
Allowance for Credit Losses	The allowance for credit losses is based on the best estimate of the amount of probable credit losses in accounts receivable. The allowance for credit losses is determined based on historical collection experience, reasonable and supportable forecasted information, and any applicable market conditions. The allowance for credit losses also takes into consideration the Company’s current customer information, collection history, and other relevant data. The Company reviews the allowance for credit losses on a quarterly basis. Account balances are written off against the allowance when it is deemed probable that the receivable will not be recovered. If circumstances change, such as higher-than-expected defaults or an unexpected material adverse change in a major customer’s ability to meet its financial obligations, the Company’s estimate of amounts collectible could be reduced by a material amount.
Certain Risks and Concentrations	Certain Risks and Concentrations Financial instruments that potentially subject the Company to concentrations of credit risk consist of cash and cash equivalents, restricted cash and accounts receivable. The Company’s cash and cash equivalents and restricted cash are generally invested in high-credit quality financial instruments with both banks and financial institutions to reduce the amount of exposure to any single financial institution. The Company generally does not require collateral to secure accounts receivable.
Property, equipment and capitalized software, net	Property, equipment and capitalized software, net Property and equipment, including leasehold improvements, is stated at cost, less accumulated depreciation and amortization. Depreciation is computed using the straight-line method over the estimated useful lives of the related assets. The estimated useful lives relating to software and computer and equipment (excluding servers) is generally three years, and the estimated useful lives for furniture and fixtures is generally five years. Leasehold improvements are depreciated on a straight-line basis over the shorter of the estimated useful lives of the assets or the remaining lease term. In January 2023 the Company completed an assessment of the useful lives of servers and adjusted the estimated useful life of servers from three to six years, effective in 2023. The Company capitalizes qualifying development costs associated with software that is developed or obtained for internal use, provided that management with the relevant authority authorizes and commits to the funding of the project, it is probable the project will be completed and the software will be used to perform the function intended. Capitalized costs, including costs incurred for enhancements that are expected to result in additional significant functionality are capitalized and amortized on a straight-line basis over the estimated useful life, which approximates three years. Costs related to preliminary project activities and post-implementation operation activities, including training and maintenance, are expensed as incurred.
Intangible assets, net	Intangible assets, net Intangible assets primarily consist of developed technology, media owner and customer relationships and trade names, resulting from the Company’s acquisitions. Intangible assets are carried at cost, less accumulated amortization, unless a determination has been made that their value has been impaired. Intangible assets are amortized on a straight-line basis over their estimated useful lives. Amortization expense in the accompanying consolidated statements of operations is included as a component of other cost of revenue for developed technology assets and sales and marketing expense for customer and media owner relationships and tradenames.
Impairment of Long-Lived Assets	Impairment of Long-Lived Assets Long-lived assets consist of the Company’s property, equipment, capitalized software development costs and other assets, including identifiable intangible assets with finite lives. The Company’s long-lived assets are reviewed for impairment whenever events or changes in circumstances indicate that the carrying value of these assets may not be recoverable or that the useful life is shorter than originally estimated. Recoverability of these assets is first assessed by comparison of the carrying amount of each asset to the future undiscounted cash flows the asset is expected to generate over their remaining lives. If the asset is considered to be impaired, the amount of any impairment is measured as the difference between the carrying value and the fair value of the impaired asset. If the useful life is shorter than originally estimated, the Company amortizes the remaining carrying value over the new shorter useful life.
Goodwill	Goodwill Goodwill represents the excess of the purchase price of an acquired entity over the fair value of intangible assets acquired and liabilities assumed in a business combination. Goodwill is not amortized but instead evaluated for impairment. The Company performs its annual impairment test of goodwill during the fourth quarter of each fiscal year or whenever events or circumstances change that would indicate that goodwill may not be recoverable. In conducting the impairment test, the Company can opt to perform a qualitative assessment to test goodwill for impairment or can directly perform the two-step impairment test described below. If the Company performs a qualitative assessment and it is determined that the fair value of a reporting unit is more likely than not to be less than its carrying amount, a quantitative impairment test is performed. If the fair value of the reporting unit exceeds the carrying value of the net assets assigned to that unit, goodwill is not impaired. If the carrying value of the reporting unit exceeds its fair value, an impairment charge is recorded for the difference. Based on the Company’s qualitative assessment performed during the fourth quarter of fiscal years 2023, 2022 and 2021, the Company concluded that it was more-likely-than-not that the estimated fair value of the Company’s single reporting unit exceeded its carrying value. Accordingly, no goodwill impairment charges were recognized for the years ended December 31, 2023, 2022 and 2021.
Revenue Recognition	Revenue Recognition The Company recognizes revenues when it transfers control of promised services directly to its customers, in an amount that reflects the consideration to which the Company expects to be entitled to in exchange for those services. The Company recognizes revenue pursuant to the five-step framework contained in ASC 606: (i) identify the contract with a client; (ii) identify the performance obligations in the contract, including whether they are distinct in the context of the contract; (iii) determine the transaction price, including the constraint on variable consideration; (iv) allocate the transaction price to the performance obligations in the contract; and (v) recognize revenue as the Company satisfies the performance obligations. The Company generates revenue primarily from advertisers through user engagement with the ads that it places on media partners’ web pages and mobile applications. The Company’s platform delivers ads to end-users that appear as links to articles and videos on media owners’ sites. The Company’s customers include brands, performance marketers and other advertisers, which are collectively referred to as its advertisers, each of which contract for use of its services primarily through insertion orders or through self-service tools, allowing advertisers to establish budgets for their advertising campaigns. Advertising campaigns are primarily billed on a monthly basis. The Company’s payment terms generally range from 30 to 60 days. For advertising campaigns priced on a cost-per-click basis, the Company bills its advertisers and recognizes revenue when a user clicks on an advertisement it delivers. For campaigns priced on a cost-per-impression basis, the Company bills its advertisers and recognizes revenue based on the number of times an advertisement is displayed to a user in the period. Variable consideration, including allowances, discounts, refunds, credits, incentives, or other price concessions, is estimated and recorded at the time that related revenue is recognized. Advance payments from advertisers for future services represent contract liabilities and are recorded as deferred revenue in the Company’s consolidated balance sheets. The determination of whether revenue should be reported on a gross or a net basis involves judgement. In general, the Company acts as a principal on behalf of its advertisers and revenue is recognized gross of any costs that it remits to the media partners. In these cases, the Company determined that it controls the advertising inventory before it is transferred to its advertisers. The Company’s control is evidenced by its ability to monetize the advertising inventory before it is transferred to its advertisers. For those revenue arrangements where the Company does not control the advertising inventory before it is transferred to its advertisers, the Company is the agent and recognizes revenue on a net basis. The Company recognizes revenue net of applicable sales taxes. Contract Balances. There were no contract assets as of December 31, 2023 or December 31, 2022. Contract liabilities primarily relate to advance payments and consideration received from customers. As of December 31, 2023 and December 31, 2022, the Company’s contract liabilities were recorded as deferred revenue in its consolidated balance sheets.
Cost of Revenue	Cost of Revenue Traffic Acquisition Costs. Traffic acquisition costs consist of amounts the Company owes to media owners when users engage with promoted recommendations on media owners’ properties. The Company incurs costs with media owners in the period in which the click-throughs occur or in some circumstances based on a guaranteed minimum rate of payment from the Company in exchange for guaranteed placement of the Company’s promoted recommendations on specified portions of the media owners’ online properties. These guaranteed rates are typically provided per thousand qualified page views, whereby the Company’s minimum monthly payment to the media owner may fluctuate based on how many qualified page views the media owner generates, generally subject to a maximum guarantee. Traffic acquisition costs also include amounts payable to programmatic supply partners. In some instances, the Company may make upfront payments to media owners in connection with long-term contracts. The Company capitalizes these advance payments under these agreements if specific capitalization criteria have been met. The capitalization criteria includes the existence of future economic benefits to the Company, the existence of legally enforceable recoverability language (e.g., early termination clauses), management’s ability and intent to enforce the recoverability language and the ability to generate future earnings from the agreement in excess of amounts deferred. Capitalized amounts are amortized as traffic acquisition costs over the shorter of the period of contractual recoverability or the corresponding period of economic benefit. Amounts not yet paid are accrued systematically based on the Company’s estimate of user engagement. Other Cost of Revenue. Cost of revenue also includes costs related to the management of the Company’s data centers, hosting fees, data connectivity costs and depreciation and amortization. Cost of revenue also includes the amortization of capitalized software that is developed or obtained for internal use associated with the Company’s revenue-generating technologies. Additionally, other cost of revenue includes amortization of intangible assets related to developed technology acquired by the Company and used in its revenue-generating efforts.
Research and Development	Research and Development The Company incurs research and development expenses primarily relating to the development and enhancement of its content discovery platform. These expenses consist primarily of personnel and the related overhead costs and amortization of capitalized software for non-revenue generating infrastructure. Research and development expenses are expensed as incurred, except for internal-use software development costs that qualify for capitalization.
Advertising and Promotional Costs	Advertising and Promotional Costs Advertising and promotional costs are included in sales and marketing expenses as incurred in the accompanying consolidated statements of operations.
Segment Information	Segment Information The Company has one operating and reporting segment. The Company’s chief operating decision maker is its Co-Chief Executive Officer who makes resource allocation decisions and assesses performance based on financial information presented on a consolidated basis.
Stock-based Compensation and Severance Pay Asset and Liability	Stock-based Compensation The Company recognizes stock-based compensation for stock-based awards, including stock options, restricted stock units (“RSUs”) and stock appreciation rights (“SARs”) based on the estimated fair value of the awards. The fair value of the Company’s RSUs is the fair value of the Company’s common stock on the date of grant. The Company estimates the fair value of its stock option awards on the grant date using the Black-Scholes option-pricing model. The Black-Scholes option-pricing model requires the use of judgments and assumptions, including the option’s expected term and the price volatility of the underlying stock. The Company accounts for forfeitures as they occur. Certain of the Company’s stock option awards, RSUs and SARs had a service condition and a performance condition, satisfied upon the Company’s IPO, which was a qualifying liquidity event. Accordingly, the Company recognized stock-based compensation expense upon its IPO to the extent the related service condition was met. Stock-based compensation expense for unvested stock option and RSU awards, and other awards that vest subject to the satisfaction of service conditions is being recognized on a straight-line basis over the requisite service period. Severance Pay Asset and Liability The Company records a severance pay asset and liability on its consolidated balance sheets related to certain of its employees located in Israel. The liability for severance pay is calculated pursuant to Israeli severance pay law based on the most recent salary for the employees multiplied by the number of years of employment, as of the respective balance sheet date. Eligible employees are entitled to one month salary for each year of employment or a portion thereof. The Company’s liability at each respective balance sheet date for its eligible Israeli employees is fully accrued in other liabilities in the accompanying consolidated balance sheets. The Company funds this obligation through monthly deposits to the employees’ pension and management insurance policies. The carrying value of these policies is recorded as a severance fund asset in other assets in the accompanying consolidated balance sheets. The deposited funds may be withdrawn only upon the fulfillment of the Company’s obligation pursuant to Israeli severance pay law. The carrying value of its deposited funds is based on the cash surrender value of these policies and includes profits accumulated through the respective balance sheet date.
Foreign Currency	Foreign Currency The Company transacts business in various foreign currencies. In general, the functional currency of its foreign subsidiaries is the currency of the local country. Accordingly, revenues and expenses of operations outside the United States (“U.S.”) are generally translated into U.S. dollars using weighted-average exchange rates, while assets and liabilities are translated into U.S. dollars using exchange rates in effect at the balance sheet date with the resulting translation adjustments recorded as a component of accumulated other comprehensive income (loss) within the statements of stockholders’ equity (deficit). Foreign currency transaction gains and losses resulting from remeasurement of transactions denominated in a currency other than the functional currency are recognized in the consolidated statements of operations.
Derivative Financial Instruments	Derivative Financial Instruments The Company is exposed to certain risks relating to its ongoing business operations, including but not limited to, fluctuations in foreign currency exchange rates. The Company enters into foreign currency forward exchange contracts to manage its foreign currency exchange risk by reducing the effects of fluctuations in foreign currency exchange rates on its net cash flows. These derivative contracts are not designated as accounting hedges. Accordingly, the Company recognizes gains and losses resulting from a change in fair value for these derivatives in the period in which the change occurs. The Company classifies cash flows from these contracts as operating activities in its consolidated statements of cash flows. The notional amount of the Company’s outstanding derivative instruments was $36.3 million and $44.9 million as of December 31, 2023 and 2022, respectively. See Note 7 for additional information.
Defined Contribution Plans	Defined Contribution Plans The Company contributes to defined contribution savings plans covering eligible employees of the Company. Participants of the plans may defer annual pre-tax compensation, subject to statutory and plan limitations. In addition, a certain percentage of an employee’s contributions are matched by the Company and vest over a specified period of time, subject to certain statutory and plan limitations.
Income Taxes	Income Taxes The Company accounts for income taxes using an asset and liability method. Deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases and operating loss and tax credit carryforwards. Deferred income tax assets and liabilities are measured using the currently enacted tax rates that apply to taxable income in effect for the years in which those tax assets and liabilities are expected to be realized or settled. The Company regularly assesses the likelihood that its deferred income tax assets will be realized. To the extent that the Company believes any amounts are not more likely than not to be realized, a valuation allowance is recorded to reduce the deferred income tax assets. The Company’s deferred tax assets were $38.4 million and $35.7 million as of December 31, 2023 and 2022, respectively. The Company’s deferred tax liabilities were $4.0 million and $5.3 million as of December 31, 2023 and 2022, respectively, and are included within other liabilities in the consolidated balance sheets. The Company regularly assesses the need for the valuation allowance on its deferred tax assets, and to the extent that it determines that an adjustment is needed, such adjustment will be recorded in the period that the determination is made. The Company recognizes the effect of income tax positions only if those positions are more likely than not of being sustained. Recognized income tax positions are measured at the largest amount that is greater than 50% likely of being realized. Changes in recognition or measurement are reflected in the period in which the change in judgment occurs. The Company recognizes interest and penalties related to income tax matters as income tax expense. The Company's policy with respect to releasing the income tax effects related to its available-for-sale investments in debt securities from accumulated other comprehensive income is to apply a security by security approach whereby the tax effects are measured based on the change to unrealized gains or losses reflected in other comprehensive income.
Recently issued Accounting Pronouncements	New Accounting Pronouncements Under the JOBS Act, the Company meets the definition of an emerging growth company and can delay adopting new or revised accounting standards issued subsequent to the enactment of the JOBS Act until such time as those standards would otherwise apply to private companies. The Company has elected to use this extended transition period for complying with new or revised accounting standards that have different effective dates for public and private companies until the Company is no longer an emerging growth company or until the Company affirmatively and irrevocably opts out of the extended transition period. Recently Issued Accounting Pronouncements In November 2023, the FASB issued ASU 2023-07, “Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures” (“ASU 2023-07”). ASU 2023-07 requires enhanced disclosures about significant segment expenses and profitability measures for all public entities, including those that have one reportable segment. The ASU is required to be applied retrospectively and is effective for fiscal years beginning after December 15, 2023, and interim periods within fiscal years beginning after December 15, 2024. The Company is in the process of evaluating the impact of ASU 2023-07 on its segment disclosures. In December 2023, the FASB issued ASU 2023-09, “Income Taxes (Topic 740): Improvements to Income Tax Disclosures” (“ASU 2023-09”). ASU 2023-09 is focused on increased visibility into specific income tax components, requiring disclosures of specific categories and a greater disaggregation of information by jurisdiction within the effective tax rate reconciliation and income taxes paid disclosures. ASU 2023-09 is effective for our annual periods beginning January 1, 2025, with early adoption permitted. The Company is in the process of evaluating the impact of ASU 2023-09 on its tax-related disclosures.
Fair Value Measurement	The Company utilizes valuation techniques that maximize the use of observable inputs and minimize the use of unobservable inputs to the extent possible. The Company’s financial instruments include restricted time deposits, severance pay fund deposits and foreign currency forward contracts. The Company determines the fair value of its financial instruments based on assumptions that market participants would use in pricing an asset or liability in the principal or most advantageous market. When considering market participant assumptions in fair value measurements, the Company uses the fair value hierarchy described below to distinguish between observable and unobservable inputs: Level I — Valuations based on quoted prices in active markets for identical assets and liabilities at the measurement date; Level II — Valuations based on quoted prices in active markets for similar assets or liabilities, quoted prices for identical or similar assets or liabilities in inactive markets, or other inputs that are observable or can be principally corroborated by observable market data for substantially the full term of the related assets or liabilities; and Level III — Valuations based on unobservable inputs that are significant to the measurement of the fair value of the assets or liabilities that are supported by little or no market data.
Lessee, Leases	The Company leases certain equipment and computers under finance lease arrangements, as well as office facilities and managed data center facilities under non-cancelable operating lease arrangements for its U.S. and international locations that expire on various dates through 2032. These arrangements require the Company to pay certain operating expenses, such as taxes, repairs and insurance and contain renewal and escalation clauses. The Company’s options to extend or terminate a lease are not included in the lease terms, unless the Company is reasonably certain it will exercise that option. The Company’s leases generally do not contain any material restrictive covenants. The Company’s minimum lease payments include fixed payments for non-lease components included in the lease agreement, but exclude variable lease payments that are not dependent on an index or rate, such as common area maintenance, operating expenses, utilities, or other costs that are subject to fluctuations from period to period. Non-lease components that are variable in nature are recorded as variable lease expenses in the period incurred.

Consolidated Statements of Comprehensive (Loss) Income - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2021
Statement of Comprehensive Income [Abstract]
Net income (loss)	$ 10,242	$ (24,581)	$ 10,995
Other comprehensive income (loss):
Foreign currency translation adjustments	(695)	(3,870)	(184)
Unrealized gains (losses) on available-for-sale investments in debt securities (net of taxes of $(467) and $470 in 2023 and 2022, respectively)	1,556	(1,569)	0
Total other comprehensive income (loss)	861	(5,439)	(184)
Comprehensive income (loss)	$ 11,103	$ (30,020)	$ 10,811

- Definition

The portion of profit or loss for the period, net of income taxes, which is attributable to the parent.

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Reference 4: http://www.xbrl.org/2003/role/disclosureRef
-Topic 944
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-Name Accounting Standards Codification
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Reference 6: http://www.xbrl.org/2009/role/commonPracticeRef
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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
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Reference 9: http://www.xbrl.org/2003/role/disclosureRef
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Reference 10: http://www.xbrl.org/2003/role/disclosureRef
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Reference 12: http://www.xbrl.org/2003/role/disclosureRef
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+ Details

Leases - Future Lease Payments (Details) $ in Thousands	Dec. 31, 2023 USD ($)
Operating Leases
2024	$ 4,481
2025	4,012
2026	2,710
2027	2,104
2028	755
Thereafter	1,064
Total minimum payments required	15,126
Less: imputed interest	(2,225)
Lease liabilities	12,901
Finance Leases
2024	256
2025	0
2026	0
2027	0
2028	0
Thereafter	0
Total minimum payments required	256
Less: imputed interest	(2)
Total present value of lease liabilities	$ 254

Consolidated Balance Sheets (Parenthetical) - $ / shares	Dec. 31, 2023	Dec. 31, 2022
Statement of Financial Position [Abstract]
Common stock, par value (in usd per share)	$ 0.001	$ 0.001
Common stock, shares authorized	1,000,000,000	1,000,000,000
Common stock, shares issued	61,567,520	60,175,020
Common stock, shares outstanding	49,726,518	52,226,745
Preferred stock, par value (in usd per share)	$ 0.001	$ 0.001
Preferred stock, shares authorized	100,000,000	100,000,000
Preferred stock, shares issued	0	0
Preferred stock, shares outstanding	0	0
Treasury stock, shares	11,841,002	7,948,275

Segment and Geographic Information (Tables)

12 Months Ended

Dec. 31, 2023

Segment Reporting [Abstract]

Total Revenue Based on Location

The following table represents total revenue based on where the Company’s marketers are physically located:


	Year Ended December 31,
	2023		2022		2021
	(In thousands)
USA	$	286,039	$	330,333	$	372,855
Europe, the Middle East and Africa (EMEA)	552,621		553,051		523,580
Other	97,158		108,698		119,195
Total revenue	$	935,818	$	992,082	$	1,015,630

Long-Lived Assets by Geographic Location

The Company’s long-lived assets by geographic location, which are comprised of property, equipment and capitalized software, net and operating lease right-of-use assets, net are summarized below:


	December 31,
	2023		2022
	(In thousands)
USA	$	44,466	$	43,191
EMEA	9,685		7,181
Other	455		583
Total long-lived assets, net	$	54,606	$	50,955

Stockholders' Equity (Deficit)

12 Months Ended

Dec. 31, 2023

Stockholders' Equity Note [Abstract]

Stockholders' Equity

The Company’s certificate of incorporation, as amended and restated in July 2021, provides the Company with the authority to issue up to 1.1 billion shares, comprised of 1.0 billion shares of $0.001 par value common stock and 0.1 billion shares of $0.001 par value preferred stock. Each holder of common stock is entitled to one vote with respect to each share of common stock and is entitled to dividends, if and when declared by the Company’s Board of Directors (the “Board”), subject to preferential rights of preferred stockholders.

Initial Public Offering

On July 22, 2021, the Company’s Form S-1, filed on June 29, 2021, as amended, was declared effective by the U.S. Securities and Exchange Commission (the “SEC”) in connection with the Company’s IPO of the Company’s common stock and its common stock began trading on Nasdaq on July 23, 2021. On July 27, 2021, the Company closed its IPO and issued 8,000,000 shares of its common stock at an initial offering price of $20.00 per share, receiving aggregate net proceeds of $145.1 million, after deducting underwriting discounts, commissions and other offering costs.

Deferred offering costs of $3.7 million, primarily comprised of accounting, legal and other transaction costs directly related to the IPO, were recorded against the proceeds of the offering in additional paid-in capital within stockholders’ equity (deficit).

In connection with the IPO, all of the shares of the Company’s Series A-H convertible preferred stock previously outstanding automatically converted into an aggregate of 28,091,267 shares of the Company’s common stock, with all series converted on a one-to-one basis, with the exception of Series F, which was converted at 1.14-to-1, based on the terms of the Series F agreement and the IPO price. During 2021, total carrying value of convertible preferred stock of $162.4 million was reclassified to stockholders’ equity (deficit) and there was no remaining convertible preferred stock issued and outstanding.

Share Repurchases

On December 14, 2022, the Company’s Board approved a new share repurchase program, authorizing the Company to repurchase up to $30 million of its common stock, par value $0.001 per share, with no requirement to purchase any minimum number of shares. The manner, timing, and actual number of shares repurchased under the program will depend on a variety of factors, including price, general business and market conditions, and other investment opportunities. Shares may be repurchased through privately negotiated transactions or open market purchases, including through the use of trading plans intended to qualify under Rule 10b5-1 under the Exchange Act. The repurchase program may be commenced, suspended, or terminated at any time by the Company at its discretion without prior notice. As of December 31, 2023, the remaining repurchase availability under the Company’s $30 million share repurchase program was $12.4 million, reflecting repurchases of 3,729,462 shares for $17.8 million in 2023. Commission costs associated with share repurchases and excise taxes accrued as a result of the Inflation Reduction Act of 2022 do not reduce the remaining authorized amount under the repurchase programs.

During 2022, the Company repurchased 6,389,129 shares with a fair value of $30.2 million, including commissions, under its prior $30 million share repurchase program authorized in February 2022.

In addition to its publicly announced programs, the Company periodically withholds shares to satisfy employee tax withholding obligations arising in connection with the vesting of restricted stock units and exercise of options and warrants in accordance with the terms of the Company’s equity incentive plans and the underlying award agreements. During 2023, 2022 and 2021, the Company withheld 163,265 shares, 245,465 shares, and 1,032,995 shares, respectively, with a fair value of $0.8 million, $2.5 million, and $14.2 million, respectively, to satisfy the minimum employee tax withholding obligations.

Accumulated Other Comprehensive Loss

The following table details the changes in accumulated other comprehensive income (loss) (“AOCI”), net of tax:


	Foreign Currency Translation Loss		Unrealized (Loss) Gain on Investments in Marketable Securities(1)		Total Accumulated Other Comprehensive Loss
Balance–January 1, 2021	$	(4,290)	$	—	$	(4,290)
Other comprehensive income, net of tax	(184)		—		(184)
Balance–December 31, 2021	(4,474)		—		(4,474)
Other comprehensive loss, net of tax	(3,870)		(1,569)		(5,439)
Balance–December 31, 2022	(8,344)		(1,569)		(9,913)
Other comprehensive (loss) income before reclassifications, net of tax	(695)		1,136		441
Realized losses reclassified to earnings, net of tax	—		420		420
Other comprehensive (loss) income, net of tax	$	(695)	$	1,556	$	861
Balance–December 31, 2023	$	(9,039)	$	(13)	$	(9,052)

_______________________________

- Definition

The entire disclosure for equity.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Topic 505
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-Name Accounting Standards Codification
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Reference 2: http://www.xbrl.org/2003/role/disclosureRef
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Reference 3: http://www.xbrl.org/2003/role/disclosureRef
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Reference 4: http://www.xbrl.org/2003/role/disclosureRef
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Reference 5: http://www.xbrl.org/2003/role/disclosureRef
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Reference 6: http://www.xbrl.org/2003/role/disclosureRef
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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
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Reference 9: http://www.xbrl.org/2003/role/disclosureRef
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Reference 10: http://fasb.org/us-gaap/role/ref/legacyRef
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Reference 11: http://www.xbrl.org/2003/role/disclosureRef
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Reference 12: http://www.xbrl.org/2003/role/disclosureRef
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Reference 13: http://www.xbrl.org/2003/role/disclosureRef
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Reference 14: http://www.xbrl.org/2003/role/disclosureRef
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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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Reference 18: http://www.xbrl.org/2003/role/disclosureRef
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Reference 19: http://www.xbrl.org/2003/role/disclosureRef
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-Subparagraph (d)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481112/505-10-50-18

+ Details

Leases - Narrative (Details) $ in Millions	Dec. 31, 2023 USD ($) segment
Leases [Abstract]
Number of operating leases not yet commenced \| segment	1
Future operating leases payments, not yet commenced \| $	$ 0.6
Lease term	2 years

Organization, Description of Business and Summary of Significant Accounting Policies	12 Months Ended
	Dec. 31, 2023
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Organization, Description of Business and Summary of Significant Accounting Policies	1. Organization, Description of Business and Summary of Significant Accounting Policies Organization and Description of Business Outbrain Inc. (together with its subsidiaries, “Outbrain,” the “Company,” “we,” “our” or “us”), was incorporated in August 2006 in Delaware. The Company is headquartered in New York, New York and has wholly owned subsidiaries in Israel, Europe, Asia, Brazil and Australia. In connection with the Company’s initial public offering (“IPO”), its common stock began trading on The Nasdaq Stock Market LLC (“Nasdaq”) on July 23, 2021 under the “OB” ticker symbol. Outbrain is a leading technology platform that drives business results by connecting media owners and advertisers with engaged audiences to drive business outcomes across the Open Internet. The Company’s platform provides advertisements on media owners’ online properties. The Company generates revenue from advertisers through consumer engagements with advertisements that it delivers across a variety of third-party media owners’ online properties. The Company pays traffic acquisition costs to its media owner partners on whose digital properties the advertisements are shown. The Company’s advertiser solutions are mainly priced using a performance-based model based on the actual number of engagements generated by consumers, which is highly dependent on its ability to generate trustworthy and interesting advertisements to individual consumers based on its proprietary algorithms. A portion of the Company’s revenue is generated through advertisers participating in programmatic auctions wherein the pricing is determined by the auction results and not dependent on user engagement. Basis of Presentation The accompanying audited consolidated financial statements have been prepared in accordance with generally accepted accounting principles in the United States of America (“U.S. GAAP”). The accompanying audited consolidated financial statements include the accounts of Outbrain Inc. and its wholly owned subsidiaries. All intercompany accounts and transactions have been eliminated in consolidation. The share and per-share amounts for all periods presented in these audited consolidated financial statements and notes thereto reflect the effect of the 1-for-1.7 reverse stock split of the Company’s common and convertible preferred stock, which became effective on July 13, 2021, with the exception of the par value, which was not adjusted. Use of Estimates The preparation of audited consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and related disclosures as of the date of the audited consolidated financial statements and the reported amounts of revenue and expenses during the reporting period. Estimates and judgments are based on historical information and on various other assumptions that the Company believes are reasonable under the circumstances. Estimates and assumptions made in the accompanying audited consolidated financial statements include, but are not limited to, the allowance for credit losses, sales allowance, software development costs eligible for capitalization, valuation of deferred tax assets, the useful lives of property and equipment, the useful lives and fair value of intangible assets, valuation of goodwill, the fair value of stock-based awards, and the recognition and measurement of income tax uncertainties and other contingencies. Actual results could differ materially from these estimates. Reclassifications Certain reclassifications have been made to the prior periods’ financial information in order to conform to the current period’s presentation. Cash and Cash Equivalents and Investments The Company considers all highly liquid investments with maturities of three months or less when purchased to be cash equivalents. Cash and cash equivalents consist of cash on hand and highly liquid investments in money market funds, U.S. government bonds, U.S. treasuries and commercial paper. Most of the Company’s cash deposits are above the $250,000 Federal Deposit Insurance Corporation (“FDIC”) limit and, therefore, not insured. The Company’s investments in debt securities are classified as available-for-sale and are recorded at fair value. The Company classifies its investments in debt securities as short-term or long-term, based on each security’s maturity date. Unrealized gains and losses on available-for-sale securities are recognized in other comprehensive (loss) income (“OCI”), net of taxes. Although the Company does not have intent to sell its debt investments, the Company may sell them prior to their maturities for a variety of reasons, including portfolio diversification, credit quality, yields, and liquidity requirements. Any realized gains and losses on the sale of investments are determined based on a specific identification method and recorded within interest income and other (expense) income, net in the Company’s consolidated statements of operations. Restricted Cash Restricted cash represents security deposits for facility leases and is included in other assets in the accompanying consolidated balance sheets. Accounts Receivable and Allowance for Credit Losses Accounts receivable are recorded at invoiced amounts, net of allowances for credit losses, if applicable, and are unsecured and do not bear interest. Accounts receivable also includes earned and billable amounts not yet invoiced as of the end of the reporting period. The allowance for credit losses is based on the best estimate of the amount of probable credit losses in accounts receivable. The allowance for credit losses is determined based on historical collection experience, reasonable and supportable forecasted information, and any applicable market conditions. The allowance for credit losses also takes into consideration the Company’s current customer information, collection history, and other relevant data. The Company reviews the allowance for credit losses on a quarterly basis. Account balances are written off against the allowance when it is deemed probable that the receivable will not be recovered. If circumstances change, such as higher-than-expected defaults or an unexpected material adverse change in a major customer’s ability to meet its financial obligations, the Company’s estimate of amounts collectible could be reduced by a material amount. Certain Risks and Concentrations Financial instruments that potentially subject the Company to concentrations of credit risk consist of cash and cash equivalents, restricted cash and accounts receivable. The Company’s cash and cash equivalents and restricted cash are generally invested in high-credit quality financial instruments with both banks and financial institutions to reduce the amount of exposure to any single financial institution. The Company generally does not require collateral to secure accounts receivable. No single marketer accounted for 10% or more of the Company’s total revenue for the years ended 2023, 2022 and 2021, or 10% or more of its gross accounts receivable balance as of December 31, 2023 and 2022. For the years ended December 31, 2023 and December 31, 2022, none of the Company’s media owners accounted for 10% of its total traffic acquisition costs. For the year ended December 31, 2021, one media owner accounted for 10% of the Company’s total traffic acquisition costs. Property, equipment and capitalized software, net Property and equipment, including leasehold improvements, is stated at cost, less accumulated depreciation and amortization. Depreciation is computed using the straight-line method over the estimated useful lives of the related assets. The estimated useful lives relating to software and computer and equipment (excluding servers) is generally three years, and the estimated useful lives for furniture and fixtures is generally five years. Leasehold improvements are depreciated on a straight-line basis over the shorter of the estimated useful lives of the assets or the remaining lease term. In January 2023 the Company completed an assessment of the useful lives of servers and adjusted the estimated useful life of servers from three to six years, effective in 2023. The Company capitalizes qualifying development costs associated with software that is developed or obtained for internal use, provided that management with the relevant authority authorizes and commits to the funding of the project, it is probable the project will be completed and the software will be used to perform the function intended. Capitalized costs, including costs incurred for enhancements that are expected to result in additional significant functionality are capitalized and amortized on a straight-line basis over the estimated useful life, which approximates three years. Costs related to preliminary project activities and post-implementation operation activities, including training and maintenance, are expensed as incurred. Intangible assets, net Intangible assets primarily consist of developed technology, media owner and customer relationships and trade names, resulting from the Company’s acquisitions. Intangible assets are carried at cost, less accumulated amortization, unless a determination has been made that their value has been impaired. Intangible assets are amortized on a straight-line basis over their estimated useful lives. Amortization expense in the accompanying consolidated statements of operations is included as a component of other cost of revenue for developed technology assets and sales and marketing expense for customer and media owner relationships and tradenames. Impairment of Long-Lived Assets Long-lived assets consist of the Company’s property, equipment, capitalized software development costs and other assets, including identifiable intangible assets with finite lives. The Company’s long-lived assets are reviewed for impairment whenever events or changes in circumstances indicate that the carrying value of these assets may not be recoverable or that the useful life is shorter than originally estimated. Recoverability of these assets is first assessed by comparison of the carrying amount of each asset to the future undiscounted cash flows the asset is expected to generate over their remaining lives. If the asset is considered to be impaired, the amount of any impairment is measured as the difference between the carrying value and the fair value of the impaired asset. If the useful life is shorter than originally estimated, the Company amortizes the remaining carrying value over the new shorter useful life. Goodwill Goodwill represents the excess of the purchase price of an acquired entity over the fair value of intangible assets acquired and liabilities assumed in a business combination. Goodwill is not amortized but instead evaluated for impairment. The Company performs its annual impairment test of goodwill during the fourth quarter of each fiscal year or whenever events or circumstances change that would indicate that goodwill may not be recoverable. In conducting the impairment test, the Company can opt to perform a qualitative assessment to test goodwill for impairment or can directly perform the two-step impairment test described below. If the Company performs a qualitative assessment and it is determined that the fair value of a reporting unit is more likely than not to be less than its carrying amount, a quantitative impairment test is performed. If the fair value of the reporting unit exceeds the carrying value of the net assets assigned to that unit, goodwill is not impaired. If the carrying value of the reporting unit exceeds its fair value, an impairment charge is recorded for the difference. Based on the Company’s qualitative assessment performed during the fourth quarter of fiscal years 2023, 2022 and 2021, the Company concluded that it was more-likely-than-not that the estimated fair value of the Company’s single reporting unit exceeded its carrying value. Accordingly, no goodwill impairment charges were recognized for the years ended December 31, 2023, 2022 and 2021. Revenue Recognition The Company recognizes revenues when it transfers control of promised services directly to its customers, in an amount that reflects the consideration to which the Company expects to be entitled to in exchange for those services. The Company recognizes revenue pursuant to the five-step framework contained in ASC 606: (i) identify the contract with a client; (ii) identify the performance obligations in the contract, including whether they are distinct in the context of the contract; (iii) determine the transaction price, including the constraint on variable consideration; (iv) allocate the transaction price to the performance obligations in the contract; and (v) recognize revenue as the Company satisfies the performance obligations. The Company generates revenue primarily from advertisers through user engagement with the ads that it places on media partners’ web pages and mobile applications. The Company’s platform delivers ads to end-users that appear as links to articles and videos on media owners’ sites. The Company’s customers include brands, performance marketers and other advertisers, which are collectively referred to as its advertisers, each of which contract for use of its services primarily through insertion orders or through self-service tools, allowing advertisers to establish budgets for their advertising campaigns. Advertising campaigns are primarily billed on a monthly basis. The Company’s payment terms generally range from 30 to 60 days. For advertising campaigns priced on a cost-per-click basis, the Company bills its advertisers and recognizes revenue when a user clicks on an advertisement it delivers. For campaigns priced on a cost-per-impression basis, the Company bills its advertisers and recognizes revenue based on the number of times an advertisement is displayed to a user in the period. Variable consideration, including allowances, discounts, refunds, credits, incentives, or other price concessions, is estimated and recorded at the time that related revenue is recognized. Advance payments from advertisers for future services represent contract liabilities and are recorded as deferred revenue in the Company’s consolidated balance sheets. The determination of whether revenue should be reported on a gross or a net basis involves judgement. In general, the Company acts as a principal on behalf of its advertisers and revenue is recognized gross of any costs that it remits to the media partners. In these cases, the Company determined that it controls the advertising inventory before it is transferred to its advertisers. The Company’s control is evidenced by its ability to monetize the advertising inventory before it is transferred to its advertisers. For those revenue arrangements where the Company does not control the advertising inventory before it is transferred to its advertisers, the Company is the agent and recognizes revenue on a net basis. The Company recognizes revenue net of applicable sales taxes. Contract Balances. There were no contract assets as of December 31, 2023 or December 31, 2022. Contract liabilities primarily relate to advance payments and consideration received from customers. As of December 31, 2023 and December 31, 2022, the Company’s contract liabilities were recorded as deferred revenue in its consolidated balance sheets. See Note 15 for disaggregation of the Company’s revenue based on geography of where the Company’s marketers are physically located. Cost of Revenue Traffic Acquisition Costs. Traffic acquisition costs consist of amounts the Company owes to media owners when users engage with promoted recommendations on media owners’ properties. The Company incurs costs with media owners in the period in which the click-throughs occur or in some circumstances based on a guaranteed minimum rate of payment from the Company in exchange for guaranteed placement of the Company’s promoted recommendations on specified portions of the media owners’ online properties. These guaranteed rates are typically provided per thousand qualified page views, whereby the Company’s minimum monthly payment to the media owner may fluctuate based on how many qualified page views the media owner generates, generally subject to a maximum guarantee. Traffic acquisition costs also include amounts payable to programmatic supply partners. In some instances, the Company may make upfront payments to media owners in connection with long-term contracts. The Company capitalizes these advance payments under these agreements if specific capitalization criteria have been met. The capitalization criteria includes the existence of future economic benefits to the Company, the existence of legally enforceable recoverability language (e.g., early termination clauses), management’s ability and intent to enforce the recoverability language and the ability to generate future earnings from the agreement in excess of amounts deferred. Capitalized amounts are amortized as traffic acquisition costs over the shorter of the period of contractual recoverability or the corresponding period of economic benefit. Amounts not yet paid are accrued systematically based on the Company’s estimate of user engagement. Other Cost of Revenue. Cost of revenue also includes costs related to the management of the Company’s data centers, hosting fees, data connectivity costs and depreciation and amortization. Cost of revenue also includes the amortization of capitalized software that is developed or obtained for internal use associated with the Company’s revenue-generating technologies. Additionally, other cost of revenue includes amortization of intangible assets related to developed technology acquired by the Company and used in its revenue-generating efforts. Research and Development The Company incurs research and development expenses primarily relating to the development and enhancement of its content discovery platform. These expenses consist primarily of personnel and the related overhead costs and amortization of capitalized software for non-revenue generating infrastructure. Research and development expenses are expensed as incurred, except for internal-use software development costs that qualify for capitalization. Advertising and Promotional Costs Advertising and promotional costs are included in sales and marketing expenses as incurred in the accompanying consolidated statements of operations. Advertising and promotional costs were $12.7 million, $15.6 million and $13.1 million for the years ended December 31, 2023, 2022 and 2021, respectively. Segment Information The Company has one operating and reporting segment. The Company’s chief operating decision maker is its Co-Chief Executive Officer who makes resource allocation decisions and assesses performance based on financial information presented on a consolidated basis. Stock-based Compensation The Company recognizes stock-based compensation for stock-based awards, including stock options, restricted stock units (“RSUs”) and stock appreciation rights (“SARs”) based on the estimated fair value of the awards. The fair value of the Company’s RSUs is the fair value of the Company’s common stock on the date of grant. The Company estimates the fair value of its stock option awards on the grant date using the Black-Scholes option-pricing model. The Black-Scholes option-pricing model requires the use of judgments and assumptions, including the option’s expected term and the price volatility of the underlying stock. The Company accounts for forfeitures as they occur. Certain of the Company’s stock option awards, RSUs and SARs had a service condition and a performance condition, satisfied upon the Company’s IPO, which was a qualifying liquidity event. Accordingly, the Company recognized stock-based compensation expense upon its IPO to the extent the related service condition was met. Stock-based compensation expense for unvested stock option and RSU awards, and other awards that vest subject to the satisfaction of service conditions is being recognized on a straight-line basis over the requisite service period. Foreign Currency The Company transacts business in various foreign currencies. In general, the functional currency of its foreign subsidiaries is the currency of the local country. Accordingly, revenues and expenses of operations outside the United States (“U.S.”) are generally translated into U.S. dollars using weighted-average exchange rates, while assets and liabilities are translated into U.S. dollars using exchange rates in effect at the balance sheet date with the resulting translation adjustments recorded as a component of accumulated other comprehensive income (loss) within the statements of stockholders’ equity (deficit). Foreign currency transaction gains and losses resulting from remeasurement of transactions denominated in a currency other than the functional currency are recognized in the consolidated statements of operations. The net foreign exchange transaction losses included in interest income and other (expense) income, net in the accompanying consolidated statements of operations were $1.0 million, $2.1 million and $3.1 million for the years ended December 31, 2023, 2022 and 2021, respectively. Derivative Financial Instruments The Company is exposed to certain risks relating to its ongoing business operations, including but not limited to, fluctuations in foreign currency exchange rates. The Company enters into foreign currency forward exchange contracts to manage its foreign currency exchange risk by reducing the effects of fluctuations in foreign currency exchange rates on its net cash flows. These derivative contracts are not designated as accounting hedges. Accordingly, the Company recognizes gains and losses resulting from a change in fair value for these derivatives in the period in which the change occurs. The Company classifies cash flows from these contracts as operating activities in its consolidated statements of cash flows. The notional amount of the Company’s outstanding derivative instruments was $36.3 million and $44.9 million as of December 31, 2023 and 2022, respectively. See Note 7 for additional information. Severance Pay Asset and Liability The Company records a severance pay asset and liability on its consolidated balance sheets related to certain of its employees located in Israel. The liability for severance pay is calculated pursuant to Israeli severance pay law based on the most recent salary for the employees multiplied by the number of years of employment, as of the respective balance sheet date. Eligible employees are entitled to one month salary for each year of employment or a portion thereof. The Company’s liability at each respective balance sheet date for its eligible Israeli employees is fully accrued in other liabilities in the accompanying consolidated balance sheets. The Company funds this obligation through monthly deposits to the employees’ pension and management insurance policies. The carrying value of these policies is recorded as a severance fund asset in other assets in the accompanying consolidated balance sheets. The deposited funds may be withdrawn only upon the fulfillment of the Company’s obligation pursuant to Israeli severance pay law. The carrying value of its deposited funds is based on the cash surrender value of these policies and includes profits accumulated through the respective balance sheet date. Defined Contribution Plans The Company contributes to defined contribution savings plans covering eligible employees of the Company. Participants of the plans may defer annual pre-tax compensation, subject to statutory and plan limitations. In addition, a certain percentage of an employee’s contributions are matched by the Company and vest over a specified period of time, subject to certain statutory and plan limitations. The Company’s contributions were approximately $8.5 million, $9.6 million, and $8.4 million for 2023, 2022, and 2021, respectively, which were expensed as incurred. Income Taxes The Company accounts for income taxes using an asset and liability method. Deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases and operating loss and tax credit carryforwards. Deferred income tax assets and liabilities are measured using the currently enacted tax rates that apply to taxable income in effect for the years in which those tax assets and liabilities are expected to be realized or settled. The Company regularly assesses the likelihood that its deferred income tax assets will be realized. To the extent that the Company believes any amounts are not more likely than not to be realized, a valuation allowance is recorded to reduce the deferred income tax assets. The Company’s deferred tax assets were $38.4 million and $35.7 million as of December 31, 2023 and 2022, respectively. The Company’s deferred tax liabilities were $4.0 million and $5.3 million as of December 31, 2023 and 2022, respectively, and are included within other liabilities in the consolidated balance sheets. The Company regularly assesses the need for the valuation allowance on its deferred tax assets, and to the extent that it determines that an adjustment is needed, such adjustment will be recorded in the period that the determination is made. The Company recognizes the effect of income tax positions only if those positions are more likely than not of being sustained. Recognized income tax positions are measured at the largest amount that is greater than 50% likely of being realized. Changes in recognition or measurement are reflected in the period in which the change in judgment occurs. The Company recognizes interest and penalties related to income tax matters as income tax expense. The Company's policy with respect to releasing the income tax effects related to its available-for-sale investments in debt securities from accumulated other comprehensive income is to apply a security by security approach whereby the tax effects are measured based on the change to unrealized gains or losses reflected in other comprehensive income. New Accounting Pronouncements Under the JOBS Act, the Company meets the definition of an emerging growth company and can delay adopting new or revised accounting standards issued subsequent to the enactment of the JOBS Act until such time as those standards would otherwise apply to private companies. The Company has elected to use this extended transition period for complying with new or revised accounting standards that have different effective dates for public and private companies until the Company is no longer an emerging growth company or until the Company affirmatively and irrevocably opts out of the extended transition period. Recently Issued Accounting Pronouncements In November 2023, the FASB issued ASU 2023-07, “Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures” (“ASU 2023-07”). ASU 2023-07 requires enhanced disclosures about significant segment expenses and profitability measures for all public entities, including those that have one reportable segment. The ASU is required to be applied retrospectively and is effective for fiscal years beginning after December 15, 2023, and interim periods within fiscal years beginning after December 15, 2024. The Company is in the process of evaluating the impact of ASU 2023-07 on its segment disclosures. In December 2023, the FASB issued ASU 2023-09, “Income Taxes (Topic 740): Improvements to Income Tax Disclosures” (“ASU 2023-09”). ASU 2023-09 is focused on increased visibility into specific income tax components, requiring disclosures of specific categories and a greater disaggregation of information by jurisdiction within the effective tax rate reconciliation and income taxes paid disclosures. ASU 2023-09 is effective for our annual periods beginning January 1, 2025, with early adoption permitted. The Company is in the process of evaluating the impact of ASU 2023-09 on its tax-related disclosures.

Stockholders' Equity (Deficit) - AOCI (Details) - USD ($)	12 Months Ended
	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2021
AOCI Attributable to Parent, Net of Tax [Roll Forward]
Balance - beginning of period	$ 217,786,000	$ 256,775,000	$ (79,813,000)
Balance - end of period	223,064,000	217,786,000	256,775,000
Total other comprehensive income (loss)	861,000	(5,439,000)	(184,000)
OCI, Debt Securities, Available-for-Sale, Unrealized Holding Gain (Loss), before Adjustment, Tax	(400,000)	500,000
Other Comprehensive Income (Loss), Reclassification Adjustment from AOCI for Sale of Securities, Tax	(100,000)	0	0
Foreign Currency Translation Loss
AOCI Attributable to Parent, Net of Tax [Roll Forward]
Balance - beginning of period	(8,344,000)	(4,474,000)	(4,290,000)
Balance - end of period	(9,039,000)	(8,344,000)	(4,474,000)
Other Comprehensive Income (Loss), before Reclassifications, Net of Tax	(695,000)
Reclassification from Accumulated Other Comprehensive Income, Current Period, Net of Tax	0
Total other comprehensive income (loss)	(695,000)	(3,870,000)	(184,000)
Unrealized (Loss) Gain on Investments in Marketable Securities(1)
AOCI Attributable to Parent, Net of Tax [Roll Forward]
Balance - beginning of period	(1,569,000)	0	0
Balance - end of period	(13,000)	(1,569,000)	0
Other Comprehensive Income (Loss), before Reclassifications, Net of Tax	1,136,000
Reclassification from Accumulated Other Comprehensive Income, Current Period, Net of Tax	420,000
Total other comprehensive income (loss)	1,556,000	(1,569,000)	0
Total Accumulated Other Comprehensive Loss
AOCI Attributable to Parent, Net of Tax [Roll Forward]
Balance - beginning of period	(9,913,000)	(4,474,000)	(4,290,000)
Balance - end of period	(9,052,000)	(9,913,000)	(4,474,000)
Other Comprehensive Income (Loss), before Reclassifications, Net of Tax	441,000
Reclassification from Accumulated Other Comprehensive Income, Current Period, Net of Tax	420,000
Total other comprehensive income (loss)	$ 861,000	$ (5,439,000)	$ (184,000)

Fair Value Measurements - Narrative (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2021
Forward Contracts [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Gain (loss) on foreign currency derivative instruments	$ 1.6	$ (1.5)	$ 0.2

Income Taxes

12 Months Ended

Dec. 31, 2023

Income Tax Disclosure [Abstract]

Income Taxes

10. Income Taxes

The components of income (loss) before income taxes and the income tax provision (benefit) are as follows:


	Year Ended December 31,
	2023		2022		2021
	(In thousands)
United States	$	16,837	$	(11,707)	$	(38,175)
Foreign	(482)		(6,866)		23,640
Income (loss) before provision for income taxes	$	16,355	$	(18,573)	$	(14,535)


	Year Ended December 31,
	2023		2022		2021
	(In thousands)
Current provisions for income taxes:
Federal	$	5,177	$	—	$	—
State	57		744		541
Foreign	5,191		9,117		5,739
Total current provision for income taxes	10,425		9,861		6,280
Deferred tax benefit:
Federal	(2,427)		(792)		(25,787)
State	446		(1,153)		(5,558)
Foreign	(2,331)		(1,908)		(465)
Total deferred tax benefit	(4,312)		(3,853)		(31,810)
Provision (benefit) for income taxes	$	6,113	$	6,008	$	(25,530)

The reconciliation of the statutory federal income tax and the Company’s effective income tax is as follows:


	Year Ended December 31,
	2023		2022		2021
Tax at statutory federal rate	21.0	%	21.0	%	21.0	%
State tax—net of federal benefit	2.4	%	1.7	%	1.9	%
Foreign withholding taxes	1.8	%	(2.0)	%	(2.9)	%
Foreign rate differential (1)	12.5	%	(11.8)	%	3.2	%
Stock compensation and other permanent items	7.0	%	(5.1)	%	(24.9)	%
Tax rate change	1.6	%	(0.1)	%	(4.4)	%
Uncertain tax positions	6.5	%	(22.0)	%	(18.9)	%
Change in valuation allowance	4.2	%	(13.6)	%	209.4	%
Global intangible low-taxed income inclusion	4.4	%	—	%	(19.3)	%
Foreign-derived intangible income deduction	(12.6)	%	—	%	—	%
Foreign tax credits	(6.1)	%	—	%	4.9	%
Return to provision adjustments	(5.1)	%	(0.4)	%	5.4	%
Other	(0.2)	%	—	%	0.2	%
Effective tax rate	37.4	%	(32.3)	%	175.6	%

_______________________________

(1) Primarily relates to higher tax rates relating to certain of the Company’s European operations.

Deferred taxes are the result of temporary differences between the bases of assets and liabilities for financial reporting and income tax purposes. Deferred tax assets and liabilities as of December 31, 2023 and 2022 were comprised of the following:


	December 31,
	2023		2022
	(In thousands)
Deferred tax assets:
Net operating loss carryforwards	$	12,500	$	15,005
Foreign tax credit carryforwards	1,492		1,048
Capital loss carryforwards	3,390		3,398
Stock-based compensation	1,578		1,110
Accruals, reserves, and other	5,433		6,276
Senior notes interest & deferred financing fees	4,872		10,033
Capitalization of research and development costs	24,257		13,946
Allowance for credit losses	2,565		1,409
Gross deferred tax assets	56,087		52,225
Valuation allowance	(16,309)		(15,629)
Total deferred tax assets	39,778		36,596
Deferred tax liabilities:
Intangible assets and capitalized software	(5,399)		(6,181)
Total deferred tax liabilities	(5,399)		(6,181)
Net deferred tax assets	$	34,379	$	30,415

The Company regularly assesses the need for the valuation allowance on its deferred tax assets, and to the extent that it determines that an adjustment is needed, such adjustment will be recorded in the period that the determination is made.

During the fourth quarter of 2021, the Company reassessed the need for a valuation allowance, considering, among other things, its cumulative pre-tax book income, excluding one-time expenses, in the three-year period ended December 31, 2021, its projected future taxable income, and the scheduled reversals of its deferred tax liabilities. After weighing all of the evidence, the Company determined that the positive evidence in favor of releasing a portion of the valuation allowance outweighed the negative evidence against releasing the allowance on certain U.S. deferred tax assets, and concluded that it is more likely than not that the majority of the U.S. deferred tax assets will be realized. As a result, during the fourth quarter of 2021, the Company released $38.1 million of its U.S. valuation allowance.

During 2023 and 2022, after weighing all of the evidence, the Company determined that the positive evidence, particularly the evidence that was objectively verifiable, continued to outweigh the negative evidence. However, upon evaluating its forecasted state taxable income, the Company increased its valuation allowance against state net operating loss carryforwards by $0.5 million and $2.8 million as of December 31, 2023 and 2022, respectively. As of each reporting date, the Company will continue to consider existing evidence, both positive and negative, that could impact its view with regard to future realization of deferred tax assets. It is possible that the valuation allowance could change in the next 12 months.

Recognition of deferred tax assets is appropriate when realization of these assets is more likely than not. Based upon the weight of available evidence, which includes the Company’s historical operating performance and the recorded cumulative net losses in prior fiscal periods, the Company recorded a valuation allowance of $16.3 million and $15.6 million against certain deferred tax assets as of December 31, 2023 and December 31, 2022, respectively. The net valuation allowance increased by $0.7 million and $4.9 million for the years ended December 31, 2023 and 2022, respectively.

As of December 31, 2023 and 2022, the Company had U.S. federal net operating loss carryforwards of $2.7 million and $13.2 million, respectively. The federal net operating loss carryforwards will expire at various amounts beginning in the year ending December 31, 2032, if not utilized. Utilization of the net operating losses remaining as of December 31, 2023 is subject to an annual limitation provided for in Section 382 of the Internal Revenue Code of 1986, as amended (the “Code”) and any annual limitation could result in the expiration of net operating loss carryforwards before utilization.

As of December 31, 2023 and 2022, the Company had state net operating loss carryforwards of $116.0 million and $117.5 million, respectively. State net operating losses will expire at various amounts beginning in the year ending December 31, 2025, if not utilized. As of December 31, 2023, the Company had Swiss net operating loss carryforwards of $13.2 million, which will expire in various amounts beginning in tax year 2027, if not utilized. As of December 31, 2023 and 2022, the Company had U.K. foreign tax credits of $1.1 million and $1.0 million, respectively, which can be carried forward indefinitely. As of December 31, 2023, the Company also had U.S. foreign tax credits of $0.4 million, which can be carried forward for 10 years.

While the Company has recognized the U.S. federal tax impact on a portion of the undistributed earnings of its foreign subsidiaries under the Tax Cuts and Jobs Act, enacted in 2017 (“Tax Act”), its policy with respect to foreign earnings remains unchanged and the Company considers them to be indefinitely reinvested. Upon distribution of those earnings in the form of a dividend or otherwise, the Company could be subject to taxes, including withholding taxes payable to various foreign countries, for which a deferred tax liability is not currently recognized.

On August 16, 2022, the U.S. enacted the Inflation Reduction Act of 2022, which among other things implements a 15% minimum tax on adjusted financial statement income of certain large corporations and a 1% excise tax on net stock repurchases. Accordingly, during the year ended December 31, 2023, the Company recorded a liability of $0.1 million for federal excise tax with a corresponding increase in Treasury stock in connection with its share repurchase program.

In addition, a provision enacted as part of the 2017 Tax Cuts & Jobs Act requires companies to capitalize certain research and experimental expenditures for tax purposes in tax years beginning after December 31, 2021. As a result, as of December 31, 2023, the Company’s U.S. federal net operating losses have been fully utilized, with the exception of the $2.7 million subject to the annual limitation provided under Section 382 of the Code, which resulted in higher cash taxes and lower effective tax rate due to a deduction related to foreign-derived intangible income.

Unrecognized Tax Benefits

The activity related to the gross amount of unrecognized tax benefits is as follows:


	Year Ended December 31,
	2023		2022		2021
	(In thousands)
Beginning balance	$	7,352	$	3,272	$	1,232
Decreases due to tax settlements	—		(464)		(616)
Decreases due to expirations of statutes of limitations	(699)		(93)		(112)
Additions based on tax positions related to prior year	1,612		1,617		2,323
Additions based on tax positions related to current year	158		3,020		445
Ending balance	$	8,423	$	7,352	$	3,272

If recognized, the Company’s gross unrecognized tax benefits would not have a material impact on its effective tax rate for the year ended December 31, 2023. While it is often difficult to predict the outcome of any particular uncertain tax position, the Company believes it is reasonably possible that its unrecognized tax benefits will decrease by approximately $5.6 million during the next 12 months, primarily due to the expected completion of ongoing tax audits. The Company further expects that the amount of unrecognized tax benefits will continue to change in the future as a result of ongoing operations, the outcomes of audits, and the expiration of the statute of limitations. This change is not expected to have a significant impact on the Company’s results of operations or financial condition.

The Company recognizes accrued interest and penalties related to unrecognized tax benefits in its income tax provision (benefit). Accrued interest and penalties recognized for the year ended December 31, 2023 were de minimis. As of December 31, 2022 and 2021, the Company recognized $0.9 million, and $(0.1) million of accrued interest and penalties, respectively, which are reflected in the table above.

The Company is subject to taxation in the United States, various states, and several foreign jurisdictions. The Company establishes reserves for open tax years for uncertain tax positions that may be subject to challenge by various taxing authorities. The consolidated tax provision and related accruals include the impact of such reasonably estimable losses and related interest and penalties as deemed appropriate. United States and foreign jurisdictions have statutes of limitations generally ranging from 3 to 5 years. However, the statute of limitations does not begin for years that a net operating loss carryforward was generated until the loss is applied against taxable income. In that scenario, the taxing authority can only make adjustments in the original loss year to the extent of the net operating loss. Open audit years in the United States are 2013 through 2023, in the U.K. are 2017 through 2023 and in Israel are 2020 through 2023. The Company is currently under audit in the U.K. for tax years 2018-2022, Germany for the tax years 2018-2021 and in Japan for tax years 2020-2022.

- 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
-SubTopic 10
-Name Accounting Standards Codification
-Section S99
-Paragraph 1
-Subparagraph (SX 210.4-08(h)(2))
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147480678/235-10-S99-1

Reference 3: http://www.xbrl.org/2003/role/disclosureRef
-Topic 740
-Name Accounting Standards Codification
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-URI https://asc.fasb.org//740/tableOfContent

Reference 4: http://www.xbrl.org/2003/role/disclosureRef
-Topic 740
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 14
-Publisher FASB
-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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-Name Accounting Standards Codification
-Section 50
-Paragraph 21
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482685/740-10-50-21

Reference 6: http://www.xbrl.org/2003/role/disclosureRef
-Topic 740
-SubTopic 270
-Name Accounting Standards Codification
-Section 50
-Paragraph 1
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-URI https://asc.fasb.org//1943274/2147482526/740-270-50-1

Reference 7: http://www.xbrl.org/2003/role/disclosureRef
-Topic 740
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 17
-Subparagraph (b)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482685/740-10-50-17

Reference 8: http://www.xbrl.org/2003/role/disclosureRef
-Topic 740
-SubTopic 10
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-Section S99
-Paragraph 1
-Subparagraph (SAB TOPIC 6.I.5.Q1)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147479360/740-10-S99-1

Reference 9: http://www.xbrl.org/2003/role/disclosureRef
-Topic 740
-SubTopic 10
-Name Accounting Standards Codification
-Section S99
-Paragraph 2
-Subparagraph (SAB Topic 11.C)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147479360/740-10-S99-2

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

Segment and Geographic Information

12 Months Ended

Dec. 31, 2023

Segment Reporting [Abstract]

Segment and Geographic Information

15. Segment and Geographic Information

The Company has one operating and reporting segment.

The following table represents total revenue based on where the Company’s marketers are physically located:


	Year Ended December 31,
	2023		2022		2021
	(In thousands)
USA	$	286,039	$	330,333	$	372,855
Europe, the Middle East and Africa (EMEA)	552,621		553,051		523,580
Other	97,158		108,698		119,195
Total revenue	$	935,818	$	992,082	$	1,015,630

The Company’s long-lived assets by geographic location, which are comprised of property, equipment and capitalized software, net and operating lease right-of-use assets, net are summarized below:


	December 31,
	2023		2022
	(In thousands)
USA	$	44,466	$	43,191
EMEA	9,685		7,181
Other	455		583
Total long-lived assets, net	$	54,606	$	50,955

- Definition

The entire disclosure for reporting segments including data and tables. Reportable segments include those that meet any of the following quantitative thresholds a) it's reported revenue, including sales to external customers and intersegment sales or transfers is 10 percent or more of the combined revenue, internal and external, of all operating segments b) the absolute amount of its reported profit or loss is 10 percent or more of the greater, in absolute amount of 1) the combined reported profit of all operating segments that did not report a loss or 2) the combined reported loss of all operating segments that did report a loss c) its assets are 10 percent or more of the combined assets of all operating segments.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Topic 280
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 22
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482810/280-10-50-22

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
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-SubTopic 10
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-Publisher FASB
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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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-Publisher FASB
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Reference 4: http://www.xbrl.org/2003/role/disclosureRef
-Topic 280
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 32
-Subparagraph (d)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482810/280-10-50-32

Reference 5: http://www.xbrl.org/2003/role/disclosureRef
-Topic 280
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-Name Accounting Standards Codification
-Section 50
-Paragraph 42
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482810/280-10-50-42

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

Reference 7: http://www.xbrl.org/2003/role/disclosureRef
-Topic 280
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 40
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482810/280-10-50-40

Reference 8: http://www.xbrl.org/2003/role/disclosureRef
-Topic 280
-Name Accounting Standards Codification
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Reference 9: http://www.xbrl.org/2003/role/disclosureRef
-Topic 280
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 26
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482810/280-10-50-26

Reference 10: http://www.xbrl.org/2003/role/disclosureRef
-Topic 280
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 34
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482810/280-10-50-34

Reference 11: http://www.xbrl.org/2003/role/disclosureRef
-Topic 280
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Reference 12: http://www.xbrl.org/2003/role/disclosureRef
-Topic 280
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-Name Accounting Standards Codification
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-Subparagraph (a)
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Reference 13: http://www.xbrl.org/2003/role/disclosureRef
-Topic 280
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-Name Accounting Standards Codification
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-Paragraph 21
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Reference 14: http://www.xbrl.org/2003/role/disclosureRef
-Topic 280
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 32
-Subparagraph (e)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482810/280-10-50-32

+ Details

Organization, Description of Business and Summary of Significant Accounting Policies - Income Taxes (Details) - USD ($) $ in Thousands	Dec. 31, 2023	Dec. 31, 2022
Income Tax Contingency [Line Items]
Deferred tax assets	$ 38,360	$ 35,735
Other Assets
Income Tax Contingency [Line Items]
Deferred tax assets	38,400	35,700
Other Liabilities
Income Tax Contingency [Line Items]
Deferred tax liabilities	$ 4,000	$ 5,300

Fair Value Measurements - Financial Assets and Liabilities on Recurring Basis (Details) - USD ($) $ in Thousands	Dec. 31, 2023	Dec. 31, 2022
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Total financial assets	$ 185,277	$ 291,153
Derivative liability	106	1,463
Total financial liabilities	$ 106	1,463
Derivative Liability, Statement of Financial Position [Extensible Enumeration]	Total accrued and other current liabilities
Foreign currency forward contract
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Derivative asset	$ 1,254	726
Cash equivalents and investments
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Other assets	178,932	284,864
Restricted time deposit
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Other assets	190	185
Severance pay fund deposits
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Other assets	4,901	5,378
Level I
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Total financial assets	15,355	39,198
Derivative liability	0	0
Total financial liabilities	0	0
Level I \| Foreign currency forward contract
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Derivative asset	0	0
Level I \| Cash equivalents and investments
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Other assets	15,355	39,198
Level I \| Restricted time deposit
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Other assets	0	0
Level I \| Severance pay fund deposits
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Other assets	0	0
Level II
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Total financial assets	169,922	251,955
Derivative liability	106	1,463
Total financial liabilities	106	1,463
Level II \| Foreign currency forward contract
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Derivative asset	1,254	726
Level II \| Cash equivalents and investments
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Other assets	163,577	245,666
Level II \| Restricted time deposit
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Other assets	190	185
Level II \| Severance pay fund deposits
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Other assets	4,901	5,378
Level III
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Total financial assets	0	0
Derivative liability	0	0
Total financial liabilities	0	0
Level III \| Foreign currency forward contract
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Derivative asset	0	0
Level III \| Cash equivalents and investments
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Other assets	0	0
Level III \| Restricted time deposit
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Other assets	0	0
Level III \| Severance pay fund deposits
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Other assets	$ 0	$ 0

Fair Value Measurements

12 Months Ended

Dec. 31, 2023

Fair Value Disclosures [Abstract]

Fair Value Measurements

The Company utilizes valuation techniques that maximize the use of observable inputs and minimize the use of unobservable inputs to the extent possible. The Company’s financial instruments include restricted time deposits, severance pay fund deposits and foreign currency forward contracts. The Company determines the fair value of its financial instruments based on assumptions that market participants would use in pricing an asset or liability in the principal or most advantageous market. When considering market participant assumptions in fair value measurements, the Company uses the fair value hierarchy described below to distinguish between observable and unobservable inputs:

Level I — Valuations based on quoted prices in active markets for identical assets and liabilities at the measurement date;

Level II — Valuations based on quoted prices in active markets for similar assets or liabilities, quoted prices for identical or similar assets or liabilities in inactive markets, or other inputs that are observable or can be principally corroborated by observable market data for substantially the full term of the related assets or liabilities; and

Level III — Valuations based on unobservable inputs that are significant to the measurement of the fair value of the assets or liabilities that are supported by little or no market data.

The following table sets forth the fair value of the Company’s financial assets and liabilities measured on a recurring basis by level within the fair value hierarchy:


	December 31, 2023
	Level I		Level II		Level III		Total
	(In thousands)
Financial Assets:
Cash equivalents and investments (1)	$	15,355	$	163,577	$	—	$	178,932
Restricted time deposit (2)	—		190		—		190
Severance pay fund deposits (2)	—		4,901		—		4,901
Foreign currency forward contract (3)	—		1,254		—		1,254
Total financial assets	$	15,355	$	169,922	$	—	$	185,277
Financial Liabilities:
Foreign currency forward contract (4)	—		106		—		106
Total financial liabilities	$	—	$	106	$	—	$	106


	December 31, 2022
	Level I		Level II		Level III		Total
	(In thousands)
Financial Assets:
Cash equivalents and investments (1)	$	39,198	$	245,666	$	—	$	284,864
Restricted time deposit (2)	—		185		—		185
Severance pay fund deposits (2)	—		5,378		—		5,378
Foreign currency forward contract (3)	—		726		—		726
Total financial assets	$	39,198	$	251,955	$	—	$	291,153
Financial Liabilities:
Foreign currency forward contract (4)	—		1,463		—		1,463
Total financial liabilities	$	—	$	1,463	$	—	$	1,463

_____________________

(1)Money market securities are valued using Level I of the fair value hierarchy, while the fair values of U.S. Treasuries, government bonds, commercial paper, corporate bonds and municipal bonds are considered Level II and are obtained from independent pricing services, which may use various methods, including quoted prices for identical or similar securities in active and inactive markets. See Note 4 for additional detail of the Company’s fixed income securities by balance sheet location.

(2)Recorded within other assets.

(3)Recorded within prepaid expenses and other current assets.

(4)Recorded within accrued and other current liabilities.

The Company records the fair values of the assets and liabilities relating to its undesignated foreign currency forward contracts on a gross basis in its consolidated balance sheets, as they are not subject to master netting arrangements. There is no cash collateral required to be pledged by the Company or its counterparties. The Company enters into foreign currency forward exchange contracts to manage the effects of fluctuations in foreign currency exchange rates on its net cash flows from non-U.S. dollar denominated operations.

By entering into foreign currency forward contracts, the Company is exposed to a potential credit risk that the counterparty to its contracts will fail to meet its contractual obligations. If a counterparty fails to perform, the Company’s maximum credit risk exposure would be the positive fair value of the foreign currency forward contracts, or any asset balance, which represents the amount the counterparty owes to the Company. In order to mitigate the counterparty risk, the Company performs an evaluation of its counterparty credit worthiness, and its forward contracts have a term of no more than 12 months. The Company had foreign currency forward contracts with Silicon Valley Bank (“SVB”), which was closed by the California regulators on March 10, 2023. On March 12, 2023, the Department of the Treasury, Federal Reserve and the FDIC approved actions enabling the FDIC to complete its resolution of SVB in a manner that fully protected all depositors and converted SVB to Silicon Valley Bridge Bank, N.A. On March 27, 2023, First-Citizens Bank & Trust Company (“First Citizens Bank”) entered into an agreement with the FDIC to acquire Silicon Valley Bridge Bank, N.A and the Company’s existing foreign currency forward contracts were assumed by First Citizens Bank. For the years ended December 31, 2023, 2022 and 2021, the Company recorded net unrealized gains of $1.6 million, net unrealized losses of $1.5 million, and net unrealized gains of $0.2 million, respectively, within interest income and other income (expense), net in its consolidated statements of operations, related to mark-to-market adjustments on its undesignated foreign currency forward contacts.

The Convertible Notes are recorded within long-term debt on the Company’s consolidated balance sheets at their carrying value, which may differ from their fair value. The fair value of Convertible Notes is estimated using external pricing data, including any available market data for other debt instruments with similar characteristics. The following table summarizes the carrying value and the estimated fair value of the Company’s Convertible Notes, based on Level II measurements of the fair value hierarchy:


	December 31, 2023				December 31, 2022
	Carrying Value		Estimated Fair Value		Carrying Value		Estimated Fair Value
			(In thousands)
Convertible Notes	$	118,000	$	95,958	$	236,000	$	180,752

See Note 9 for additional information relating to the Convertible Notes, half of which were repurchased in April 2023.

- 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

Income Taxes - Deferred Tax Assets and Liabilities (Details) - USD ($) $ in Thousands	Dec. 31, 2023	Dec. 31, 2022
Deferred tax assets:
Net operating loss carryforwards	$ 12,500	$ 15,005
Foreign tax credit carryforwards	1,492	1,048
Capital loss carryforwards	3,390	3,398
Stock-based compensation	1,578	1,110
Accruals, reserves, and other	5,433	6,276
Senior notes interest & deferred financing fees	4,872	10,033
Capitalization of research and development costs	24,257	13,946
Allowance for credit losses	2,565	1,409
Gross deferred tax assets	56,087	52,225
Valuation allowance	(16,309)	(15,629)
Total deferred tax assets	39,778	36,596
Deferred tax liabilities:
Intangible assets and capitalized software	(5,399)	(6,181)
Total deferred tax liabilities	(5,399)	(6,181)
Net deferred tax assets	$ 34,379	$ 30,415

Balance Sheet Components - Accounts Receivable, Net (Details) - USD ($) $ in Thousands	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Accounts receivable	$ 199,714	$ 186,770
Allowance for credit losses	(10,380)	(5,512)	$ (4,402)	$ (4,174)
Accounts receivable, net of allowance for credit losses	$ 189,334	$ 181,258

Leases - Weighted Average Lease Terms and Discount Rates (Details)	Dec. 31, 2023	Dec. 31, 2022
Leases [Abstract]
Weighted average remaining lease term, operating leases (in years)	4 years 25 days	3 years 10 months 13 days
Weighted average remaining lease term, finance leases (in years)	2 months 15 days	1 year 18 days
Weighted average discount rate, operating leases	7.30%	5.82%
Weighted average discount rate, finance leases	7.30%	7.34%

Income Taxes - Activities in Unrecognized Tax Benefits (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	$ 7,352	$ 3,272	$ 1,232
Decreases due to tax settlements	0	(464)	(616)
Decreases due to expirations of statutes of limitations	(699)	(93)	(112)
Additions based on tax positions related to prior year	1,612	1,617	2,323
Additions based on tax positions related to current year	158	3,020	445
Ending balance	$ 8,423	$ 7,352	$ 3,272

Organization, Description of Business and Summary of Significant Accounting Policies - Basis of Presentation (Details)	Jul. 13, 2021
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Reverse stock split ratio	0.5882

Goodwill and Intangible Assets - Intangible Assets, Net (Details) - USD ($) $ in Thousands	Dec. 31, 2023	Dec. 31, 2022
Finite-Lived Intangible Assets [Line Items]
Gross Value	$ 49,863	$ 49,456
Accumulated amortization	(29,467)	(24,882)
Net carrying value	$ 20,396	$ 24,574
Developed technology
Finite-Lived Intangible Assets [Line Items]
Weighted Average Amortization Period	8 years	5 years 9 months 18 days
Gross Value	$ 18,410	$ 18,411
Accumulated amortization	(10,900)	(9,652)
Net carrying value	$ 7,510	$ 8,759
Customer relationships
Finite-Lived Intangible Assets [Line Items]
Weighted Average Amortization Period	5 years	4 years 1 month 6 days
Gross Value	$ 5,972	$ 5,856
Accumulated amortization	(5,530)	(5,022)
Net carrying value	$ 442	$ 834
Publisher relationships
Finite-Lived Intangible Assets [Line Items]
Weighted Average Amortization Period	8 years	6 years 3 months 18 days
Gross Value	$ 18,973	$ 18,738
Accumulated amortization	(10,863)	(8,782)
Net carrying value	$ 8,110	$ 9,956
Trade names
Finite-Lived Intangible Assets [Line Items]
Weighted Average Amortization Period	8 years 9 months 18 days	8 years 8 months 12 days
Gross Value	$ 5,326	$ 5,279
Accumulated amortization	(1,779)	(1,143)
Net carrying value	$ 3,547	$ 4,136
Content Provider Relationships
Finite-Lived Intangible Assets [Line Items]
Weighted Average Amortization Period	5 years	5 years
Gross Value	$ 284	$ 284
Accumulated amortization	(113)	(56)
Net carrying value	$ 171	$ 228
Other
Finite-Lived Intangible Assets [Line Items]
Weighted Average Amortization Period	15 years 9 months 18 days	15 years 9 months 18 days
Gross Value	$ 898	$ 888
Accumulated amortization	(282)	(227)
Net carrying value	$ 616	$ 661

Net Income Loss Per Common Share

12 Months Ended

Dec. 31, 2023

Earnings Per Share [Abstract]

Net (Loss) Income Per Common Share

14. Net Income (Loss) Per Common Share

The following table presents the computation of the Company’s basic and diluted net income (loss) per share attributable to its common stockholders:


	Year Ended December 31,
	2023		2022		2021
	(Dollars in thousands)
Numerator:
Basic and diluted:
Net income (loss) attributed to common stockholders - basic	$	10,242	$	(24,581)	$	10,995
Adjustments related to convertible debt (1)	(13,930)		—		—
Net (loss) income attributable to common stockholders - diluted	$	(3,688)	$	(24,581)	$	10,995

Denominator:
Basic weighted-average shares	50,900,422		55,615,385		35,159,757
Weighted average dilutive share equivalents:
Convertible debt (1)	6,064,877		—		—
Preferred stock, stock options, warrants and RSUs	—		—		18,734,590
Diluted weighted-average shares	56,965,299		55,615,385		53,894,347

Net income (loss) per share attributable to common stockholders:
Basic	$	0.20	$	(0.44)	$	0.31
Diluted	$	(0.06)	$	(0.44)	$	0.20

____________________


	Year Ended December 31,
	2023	2022	2021
Convertible debt	—	9,440,000	9,440,000
Options to purchase common stock	2,523,643	2,681,436	1,080,703
Warrants	188,235	188,235	—
Restricted stock units	3,326,964	2,785,510	—
Total shares excluded from diluted net income (loss) per share	6,038,842	15,095,181	10,520,703

Net Income Loss Per Common Share - Basic and Diluted Earnings Per Share (Details) - USD ($) $ / shares in Units, $ in Thousands	12 Months Ended
	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2021
Numerator, Basic:
Net Income (Loss) Available to Common Stockholders, Basic	$ 10,242	$ (24,581)	$ 10,995
Numerator, Diluted:
Net Income (Loss) Available to Common Stockholders, Basic	10,242	(24,581)	10,995
Dilutive Securities, Effect on Basic Earnings Per Share, Dilutive Convertible Securities	(13,930)	0	0
Net (loss) income attributable to common stockholders - diluted	$ (3,688)	$ (24,581)	$ 10,995
Denominator:
Basic weighted-average shares used in computing net income (loss) attributable to common stockholders (in shares)	50,900,422	55,615,385	35,159,757
Incremental Common Shares Attributable to Dilutive Effect of Conversion of Debt Securities	6,064,877	0	0
Incremental Common Shares Attributable to Dilutive Effect of Share-Based Payment Arrangements	0	0	18,734,590
Diluted weighted-average shares used in computing net income (loss) attributable to common stockholders (in shares)	56,965,299	55,615,385	53,894,347
Net income (loss) per common share:
Basic (in usd per share)	$ 0.20	$ (0.44)	$ 0.31
Diluted (in usd per share)	$ (0.06)	$ (0.44)	$ 0.20

Consolidated Balance Sheets - USD ($) $ in Thousands	Dec. 31, 2023	Dec. 31, 2022
Current assets:
Cash and cash equivalents	$ 70,889	$ 105,580
Short-term investments	94,313	166,905
Accounts receivable, net of allowances	189,334	181,258
Prepaid expenses and other current assets	47,240	46,761
Total current assets	401,776	500,504
Non-current assets:
Long-term investments	65,767	78,761
Property, equipment and capitalized software, net	42,461	39,890
Operating lease right-of-use assets, net	12,145	11,065
Intangible assets, net	20,396	24,574
Goodwill	63,063	63,063
Deferred tax assets	38,360	35,735
Other assets	20,669	27,556
TOTAL ASSETS	664,637	781,148
Current liabilities:
Accounts payable	150,812	147,653
Accrued compensation and benefits	18,620	19,662
Total accrued and other current liabilities	119,703	126,092
Deferred revenue	8,486	6,698
Total current liabilities	297,621	300,105
Non-current liabilities:
Long-term debt	118,000	236,000
Operating lease liabilities, non-current	9,217	8,445
Other liabilities	16,735	18,812
TOTAL LIABILITIES	441,573	563,362
Commitments and Contingencies (Note 11)
STOCKHOLDERS’ EQUITY:
Common stock, par value of $0.001 per share − one billion shares authorized, 61,567,520 shares issued and 49,726,518 shares outstanding as of December 31, 2023; one billion shares authorized, 60,175,020 share issued and 52,226,745 shares outstanding as of December 31, 2022.	62	60
Preferred stock, par value of $0.001 per share − 100,000,000 shares authorized, none issued and outstanding as of December 31, 2023 and December 31, 2022	0	0
Additional paid-in capital	468,525	455,831
Treasury stock, at cost − 11,841,002 shares as of December 31, 2023 and 7,948,275 shares as of December 31, 2022	(67,689)	(49,168)
Accumulated other comprehensive loss	(9,052)	(9,913)
Accumulated deficit	(168,782)	(179,024)
TOTAL STOCKHOLDERS’ EQUITY	223,064	217,786
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY	$ 664,637	$ 781,148

Cover Page - USD ($) $ in Millions	12 Months Ended
Cover Page - USD ($) $ in Millions	Dec. 31, 2023	Feb. 29, 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	001-40643
Entity Registrant Name	OUTBRAIN INC.
Entity Incorporation, State or Country Code	DE
Entity Tax Identification Number	20-5391629
Entity Address, Address Line One	111 West 19th Street
Entity Address, City or Town	New York,
Entity Address, State or Province	NY
Entity Address, Postal Zip Code	10011
City Area Code	(646)
Local Phone Number	867-0149
Title of 12(b) Security	Common stock, par value $0.001 per share
Trading Symbol	OB
Security Exchange Name	NASDAQ
Entity Well-known Seasoned Issuer	No
Entity Voluntary Filers	No
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Accelerated Filer
Entity Small Business	true
Entity Emerging Growth Company	true
Entity Ex Transition Period	false
ICFR Auditor Attestation Flag	false
Entity Shell Company	false
Entity Public Float			$ 201.3
Entity Common Stock, Shares Outstanding		49,054,785
Entity Central Index Key	0001454938
Document Fiscal Year Focus	2023
Document Fiscal Period Focus	FY
Amendment Flag	false
Documents Incorporated by Reference	DOCUMENTS INCORPORATED BY REFERENCE Portions of the registrant’s proxy statement for its 2024 annual meeting of stockholders are incorporated herein by reference in Part III of this Annual Report on Form 10-K to the extent stated herein. Such proxy statement will be filed with the Securities and Exchange Commission within 120 days of the registrant’s fiscal year ended December 31, 2023.
Document Financial Statement Error Correction [Flag]	false

Organization, Description of Business and Summary of Significant Accounting Policies - Goodwill (Details) - USD ($)	12 Months Ended
	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2021
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Goodwill impairment charges	$ 0	$ 0	$ 0

Stock-based Compensation - Weighted-Average Assumptions (Details) - $ / shares	12 Months Ended
	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2021
Share-Based Payment Arrangement [Abstract]
Options granted (in shares)	0	0	37,624
Grant date fair value (in usd per share)			$ 5.95
Expected term (in years)			6 years 10 days
Risk-free interest rate			1.29%
Expected volatility			43.00%
Dividend rate			0.00%

Investments in Marketable Securities

12 Months Ended

Dec. 31, 2023

Investments, Debt and Equity Securities [Abstract]

Investments in Marketable Securities

All of the Company’s debt securities are classified as available-for-sale. The Company’s cash equivalents and investments as of December 31, 2023 and December 31, 2022 consisted of the following:


		December 31, 2023
(In thousands)	Fair Value Level	Amortized cost (1)		Gross Unrealized Gains		Gross Unrealized Losses		Estimated Fair Value		Cash Equivalents		Short-term investments		Long-term investments
Money market funds	1	$	15,355	$	—	$	—	$	15,355	$	15,355	$	—	$	—
U.S. Treasuries	2	14,977		1		(29)		14,949		3,497		11,452		—
U.S. government bonds	2	39,048		40		(114)		38,974		—		20,762		18,212
Commercial paper	2	9,422		11		(3)		9,430		—		9,430		—
U.S. Corporate bonds	2	100,146		275		(197)		100,224		—		52,669		47,555
Total cash equivalents and investments		$	178,948	$	327	$	(343)	$	178,932	$	18,852	$	94,313	$	65,767


		December 31, 2022
(In thousands)	Fair Value Level	Amortized cost (1)		Gross Unrealized Gains		Gross Unrealized Losses		Estimated Fair Value		Cash Equivalents		Short-term investments		Long-term investments
Money market funds	1	$	39,198	$	—	$	—	$	39,198	$	39,198	$	—	$	—
U.S. Treasuries	2	31,721		—		(317)		31,404		—		23,701		7,703
U.S. government bonds	2	77,259		—		(899)		76,360		—		52,254		24,106
Commercial paper	2	43,126		3		(161)		42,968		—		42,968		—
U.S. Corporate bonds	2	95,599		29		(694)		94,934		—		47,982		46,952
Total cash equivalents and investments		$	286,903	$	32	$	(2,071)	$	284,864	$	39,198	$	166,905	$	78,761

___________________________

(1) The amortized cost of debt securities excludes accrued interest of $1.4 million and $1.0 million, respectively, as of December 31, 2023 and December 31, 2022.

On April 14, 2023, in connection with the Company’s partial repurchase of its 2.95% Convertible Senior Notes due 2026 (“Convertible Notes”), the Company redeemed half of its available-for-sale marketable securities prior to their maturities to finance the debt repurchase. Proceeds from the sales of securities for the twelve months ended December 31, 2023 were $81.7 million and a gross realized loss of $0.5 million was released from other comprehensive loss and recorded within interest income and other income (expense), net in the Company’s audited consolidated statement of operations for the twelve months ended December 31, 2023. The gross realized loss was determined using the specific identification method. See Note 12 for the effect of the reclassification adjustments on other comprehensive income.

The following table shows the fair value of the Company’s available-for-sale securities by contractual maturity:


	December 31, 2023
	(In thousands)
Within 1 year	$	113,165
After 1 year through 2 years	65,767
Total fair value	$	178,932


	December 31, 2023
	Less than 12 Months				12 Months or More				Total
(In thousands)	Fair Value		Unrealized Loss		Fair Value		Unrealized Loss		Fair Value		Unrealized Loss
U.S. Treasuries	$	1,279	$	—	$	4,711	$	(29)	$	5,990	$	(29)
U.S. government bonds	6,798		(9)		16,964		(105)		23,762		(114)
Commercial paper	3,649		(3)		—		—		3,649		(3)
U.S. Corporate bonds	40,031		(119)		18,840		(78)		58,871		(197)
Total	$	51,757	$	(131)	$	40,515	$	(212)	$	92,272	$	(343)

As of December 31, 2022, all of the Company’s marketable securities had been in an unrealized loss position for less than twelve months.

For marketable securities with unrealized loss positions, the Company does not intend to sell these securities and it is more likely than not that the Company will hold these securities until maturity or a recovery of the cost basis. No allowance for credit losses was recorded for these securities as of December 31, 2023 and December 31, 2022.

Goodwill and Intangible Assets - Goodwill Rollforward (Details) - USD ($) $ in Thousands	Dec. 31, 2023	Dec. 31, 2022
Goodwill and Intangible Assets Disclosure [Abstract]
Goodwill	$ 63,063	$ 63,063

- 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

Balance Sheet Components (Tables)

12 Months Ended

Dec. 31, 2023

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Accounts Receivable, Net

Accounts receivable, net of allowance for credit losses consists of the following:


	December 31,
	2023		2022
	(In thousands)
Accounts receivable	$	199,714	$	186,770
Allowance for credit losses	(10,380)		(5,512)
Accounts receivable, net of allowance for credit losses	$	189,334	$	181,258

Activity in Allowance for Credit Losses

The allowance for credit losses consists of the following activity:


	Year Ended December 31,
	2023		2022		2021
	(In thousands)
Allowance for credit losses, beginning balance	$	5,512	$	4,402	$	4,174
Provision for credit losses, net of recoveries	8,220		3,227		2,601
Write-offs	(3,352)		(2,117)		(2,373)
Allowance for credit losses, ending balance	$	10,380	$	5,512	$	4,402

Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure

Prepaid expenses and other current assets consists of the following:


	December 31,
	2023		2022
	(In thousands)
Prepaid traffic acquisition costs	$	26,398	$	23,149
Prepaid taxes	11,371		15,280
Prepaid software licenses	2,224		2,465
Other prepaid expenses and other current assets	7,247		5,867
Total prepaid expenses and other current assets	$	47,240	$	46,761

Property, Equipment and Capitalized Software, Net

Property, equipment and capitalized software, net consists of the following:


	December 31,
	2023		2022
	(In thousands)
Capitalized software development costs	$	78,389	$	67,685
Computer and equipment	61,529		59,536
Leasehold improvements	3,300		2,859
Software	3,221		3,113
Furniture and fixtures	1,098		1,177
Property, equipment and capitalized software, gross	147,537		134,370
Less: accumulated depreciation and amortization	(105,076)		(94,480)
Total property, equipment and capitalized software, net	$	42,461	$	39,890

Accrued and Other Current Liabilities

Accrued and other current liabilities consist of the following:


	December 31,
	2023		2022
	(In thousands)
Accrued traffic acquisition costs	$	75,870	$	73,396
Accrued tax liabilities	15,596		15,013
Accrued agency commissions	12,376		13,451
Operating lease obligations, current	3,684		3,236
Accrued professional fees	3,261		4,915
Interest payable	1,566		3,074
Other	7,350		13,007
Total accrued and other current liabilities	$	119,703	$	126,092

Stock-based Compensation - Equity Incentive Plans, Narrative (Details)	Dec. 31, 2023 shares
2021 LTIP
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of shares available for grant (in shares)	6,301,466
2007 Plan
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of shares available for grant (in shares)	766,241

- 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

Consolidated Statements of Comprehensive (Loss) Income (Parenthetical) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2023	Dec. 31, 2022
Statement of Comprehensive Income [Abstract]
Unrealized gains (losses) on available-for-sale investments in debt securities (net of taxes of $(467) and $470 in 2023 and 2022, respectively)	$ (467)	$ 470

Restructuring and Related Activities	12 Months Ended
Restructuring and Related Activities	Dec. 31, 2023
Restructuring and Related Activities [Abstract]
Restructuring and Related Activities Disclosure	On May 31, 2023, the Company announced a reduction in its global workforce of approximately 10%, to adjust to the continued macroeconomic uncertainty, create additional operating efficiencies, and support the Company’s strategic growth and profitability objectives. As a result, the Company recorded pre-tax charges of approximately $2.3 million for employee severance and related benefit costs in its consolidated statement of operations for 2023, $1.5 million of which was recorded within sales and marketing expenses, $0.4 million within research and development expenses, and $0.4 million within general and administrative expenses. During the twelve months ended December 31, 2023, all of the associated costs have been fully paid. In addition, the Company incurred $1.2 million of other severance and related costs related to reorganization activities undertaken in 2023, approximately $0.9 million of which have been paid during the twelve months ended December 31, 2023.

Goodwill and Intangible Assets (Tables)

12 Months Ended

Dec. 31, 2023

Goodwill and Intangible Assets Disclosure [Abstract]

Schedule of Finite-Lived Intangible Assets

The gross carrying amount and accumulated amortization of the Company’s intangible assets are as follows:


	December 31, 2023
	Weighted Average Amortization Period	Gross Value		Accumulated Amortization		Net Carrying Value
	(In thousands)
Developed technology	8.0 years	$	18,410	$	(10,900)	$	7,510
Customer relationships	5.0 years	5,972		(5,530)		442
Publisher relationships	8.0 years	18,973		(10,863)		8,110
Trade names	8.8 years	5,326		(1,779)		3,547
Content Provider Relationships	5.0 years	284		(113)		171
Other	15.8 years	898		(282)		616
Total intangible assets, net		$	49,863	$	(29,467)	$	20,396


	December 31, 2022
	Weighted Average Amortization Period	Gross Value		Accumulated Amortization		Net Carrying Value
	(In thousands)
Developed technology	5.8 years	$	18,411	$	(9,652)	$	8,759
Customer relationships	4.1 years	5,856		(5,022)		834
Publisher relationships	6.3 years	18,738		(8,782)		9,956
Trade names	8.7 years	5,279		(1,143)		4,136
Content Provider Relationships	5.0 years	284		(56)		228
Other	15.8 years	888		(227)		661
Total intangible assets, net		$	49,456	$	(24,882)	$	24,574

Schedule of Estimated Amortization on Identifiable Acquisition-Related Intangible Assets

As of December 31, 2023, estimated amortization related to the Company’s identifiable acquisition-related intangible assets in future periods was as follows:


Year Ending December 31,	Amount
	(In thousands)
2024	$	3,469
2025	3,469
2026	3,469
2027	3,117
2028	3,062
Thereafter	3,810
Total	$	20,396

Leases - Supplemental Cash Flow Information (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2021
Leases [Abstract]
Operating cash outflows from operating leases	$ 4,297	$ 4,246
Cash flows from finance leases	1,830	3,190
Operating lease right-of-use assets obtained in exchange for lease obligations	$ 5,061	$ 1,247	$ 0

Fair Value Measurements - Carrying Value and Estimated Fair Value of Convertible Notes (Details) - Level II - Convertible Notes - 2.95% Convertible Senior Notes Due 2026 - USD ($) $ in Thousands	Dec. 31, 2023	Dec. 31, 2022
Carrying Value
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Long-term debt	$ 118,000	$ 236,000
Estimated Fair Value
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Long-term debt	$ 95,958	$ 180,752

Acquisition (Details) - vi - USD ($)		3 Months Ended	12 Months Ended
Acquisition (Details) - vi - USD ($)	Jan. 05, 2022	Sep. 30, 2022	Dec. 31, 2023	Dec. 31, 2022
Business Acquisition [Line Items]
Consideration transferred, gross	$ 54,200,000
Stock consideration (in shares)	355,786
Stock consideration issued for acquisition of a business	$ 4,200,000
Payments to Acquire Businesses, Gross	37,300,000	$ 10,600,000	$ 1,300,000
Business combination, contingent consideration, liability	$ 500,000			$ 900,000
Contingent consideration payable, change in fair value				400,000
Acquisition transaction costs				$ 200,000

Fair Value Measurements (Tables)

12 Months Ended

Dec. 31, 2023

Fair Value Disclosures [Abstract]

Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis

The following table sets forth the fair value of the Company’s financial assets and liabilities measured on a recurring basis by level within the fair value hierarchy:


	December 31, 2023
	Level I		Level II		Level III		Total
	(In thousands)
Financial Assets:
Cash equivalents and investments (1)	$	15,355	$	163,577	$	—	$	178,932
Restricted time deposit (2)	—		190		—		190
Severance pay fund deposits (2)	—		4,901		—		4,901
Foreign currency forward contract (3)	—		1,254		—		1,254
Total financial assets	$	15,355	$	169,922	$	—	$	185,277
Financial Liabilities:
Foreign currency forward contract (4)	—		106		—		106
Total financial liabilities	$	—	$	106	$	—	$	106


	December 31, 2022
	Level I		Level II		Level III		Total
	(In thousands)
Financial Assets:
Cash equivalents and investments (1)	$	39,198	$	245,666	$	—	$	284,864
Restricted time deposit (2)	—		185		—		185
Severance pay fund deposits (2)	—		5,378		—		5,378
Foreign currency forward contract (3)	—		726		—		726
Total financial assets	$	39,198	$	251,955	$	—	$	291,153
Financial Liabilities:
Foreign currency forward contract (4)	—		1,463		—		1,463
Total financial liabilities	$	—	$	1,463	$	—	$	1,463

_____________________

(2)Recorded within other assets.

(3)Recorded within prepaid expenses and other current assets.

(4)Recorded within accrued and other current liabilities.

Summary of Carrying Value and Estimated Fair Value of Convertible Notes

The following table summarizes the carrying value and the estimated fair value of the Company’s Convertible Notes, based on Level II measurements of the fair value hierarchy:


	December 31, 2023				December 31, 2022
	Carrying Value		Estimated Fair Value		Carrying Value		Estimated Fair Value
			(In thousands)
Convertible Notes	$	118,000	$	95,958	$	236,000	$	180,752

Commitment and Contingencies	12 Months Ended
Commitment and Contingencies	Dec. 31, 2023
Commitments and Contingencies Disclosure [Abstract]
Commitments and Contingencies	11. Commitments and Contingencies Legal Proceedings and Other Matters From time to time, the Company may become subject to legal proceedings, claims and litigation arising in the ordinary course of business. In addition, the Company may receive letters alleging infringement of patent or other intellectual property rights. The Company is not currently a party to any material legal proceedings, nor is it aware of any pending or threatened litigation that, in its opinion, would have a material adverse effect on its business, operating results, cash flows or financial condition should such litigation be resolved unfavorably. Since 2021, the Company had been cooperating with the previously disclosed criminal investigation being conducted by the Antitrust Division of the U.S. Department of Justice into the hiring practices in the Company’s industry that included the Company. On July 11, 2023, the U.S. Department of Justice informed the Company that it is no longer pursuing this investigation.

Restructuring and Related Activities (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2023	May 31, 2023
Global Workforce Reduction [Member]
Restructuring Cost and Reserve [Line Items]
Employee Reduction Percentage		10.00%
Restructuring Charges	$ 2,300
Other Severance [Member]
Restructuring Cost and Reserve [Line Items]
Restructuring Charges	1,200
Payments for Restructuring	900
Sales and marketing \| Global Workforce Reduction [Member]
Restructuring Cost and Reserve [Line Items]
Restructuring Charges	1,500
Research and development \| Global Workforce Reduction [Member]
Restructuring Cost and Reserve [Line Items]
Restructuring Charges	400
General and administrative \| Global Workforce Reduction [Member]
Restructuring Cost and Reserve [Line Items]
Restructuring Charges	$ 400

- 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

Maturities of available-for-sale debt securities (Details) $ in Thousands	Dec. 31, 2023 USD ($)
Debt Securities, Available-for-Sale, Maturity, Fair Value, Rolling Maturity [Abstract]
Within 1 year	$ 113,165
After 1 year through 2 years	65,767
Total fair value	$ 178,932

Leases (Tables)

12 Months Ended

Dec. 31, 2023

Leases [Abstract]

Operating and Financing Leases, Assets and Liabilities

The following table summarizes assets and liabilities related to the Company’s operating and finance leases:


	Consolidated Balance Sheet Location	December 31, 2023		December 31, 2022
		(In thousands)
Lease assets
Operating leases	Operating lease right-of-use assets, net	$	12,145	$	11,065
Finance leases	Property, equipment and capitalized software, net	226		1,858
Total lease assets		$	12,371	$	12,923

Lease liabilities
Current liabilities:
Operating leases	Accrued and other current liabilities	$	3,684	$	3,236
Finance leases	Accrued and other current liabilities	254		1,758

Non-current liabilities:
Operating leases	Operating lease liabilities, non-current	9,217		8,445
Finance leases	Other liabilities	—		254
Total lease liabilities		$	13,155	$	13,693

Lease, Cost

The following table presents the components of the Company’s total lease expense:


		Twelve Months Ended December 31,
	Consolidated Statements of Operations Location	2023		2022
		(In thousands)
Operating lease cost
Fixed lease costs	Cost of revenue and operating expenses	$	4,453	$	4,309
Variable lease costs	Operating Expenses	207		136
Short-term lease costs	Cost of revenue and operating expenses	578		564
Finance lease cost:
Depreciation	Cost of revenue	1,632		2,962
Interest	Interest expense	83		259
Total lease cost		$	6,953	$	8,230

The following table summarizes weighted-average lease terms and discount rates for the Company’s leases:

December 31, 2023

December 31, 2022

Weighted-average remaining lease term (in years)

Operating leases

4.07 years

3.87 years

Finance leases

0.21 years

1.05 years

Weighted-average discount rate

Operating leases

7.30%

5.82%

Finance leases

7.30%

7.34%

Supplemental cash flow information related to the Company’s leases is as follows:


	Year Ended December 31, 2023		Year Ended December 31, 2022
	(In thousands)
Cash paid for amounts included in measurement of lease liabilities:
Operating cash outflows from operating leases	$	4,297	$	4,246
Cash flows from finance leases	$	1,830	$	3,190
New operating lease assets obtained in exchange for new lease obligations	$	5,061	$	1,247

Finance Lease, Liability, Fiscal Year Maturity

As of December 31, 2023, the maturities of the Company's lease liabilities under operating and finance leases were as follows:


Year	Operating Leases		Finance Leases
	(In thousands)
2024	$	4,481	$	256
2025	4,012		—
2026	2,710		—
2027	2,104		—
2028	755		—
Thereafter	1,064		—
Total minimum payments required	$	15,126	$	256
Less: imputed interest	(2,225)		(2)
Total present value of lease liabilities	$	12,901	$	254

Lessee, Operating Lease, Liability, Maturity

As of December 31, 2023, the maturities of the Company's lease liabilities under operating and finance leases were as follows:


Year	Operating Leases		Finance Leases
	(In thousands)
2024	$	4,481	$	256
2025	4,012		—
2026	2,710		—
2027	2,104		—
2028	755		—
Thereafter	1,064		—
Total minimum payments required	$	15,126	$	256
Less: imputed interest	(2,225)		(2)
Total present value of lease liabilities	$	12,901	$	254

Organization, Description of Business and Summary of Significant Accounting Policies - Advertising and Promotional Costs (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2021
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Advertising and promotional costs	$ 12,700	$ 15,600	$ 13,100

Income Taxes (Tables)

12 Months Ended

Dec. 31, 2023

Income Tax Disclosure [Abstract]

Components of (Loss) Income From Continuing Operations Before Income Taxes

The components of income (loss) before income taxes and the income tax provision (benefit) are as follows:


	Year Ended December 31,
	2023		2022		2021
	(In thousands)
United States	$	16,837	$	(11,707)	$	(38,175)
Foreign	(482)		(6,866)		23,640
Income (loss) before provision for income taxes	$	16,355	$	(18,573)	$	(14,535)

Components of Income Tax Expense (Benefit)


	Year Ended December 31,
	2023		2022		2021
	(In thousands)
Current provisions for income taxes:
Federal	$	5,177	$	—	$	—
State	57		744		541
Foreign	5,191		9,117		5,739
Total current provision for income taxes	10,425		9,861		6,280
Deferred tax benefit:
Federal	(2,427)		(792)		(25,787)
State	446		(1,153)		(5,558)
Foreign	(2,331)		(1,908)		(465)
Total deferred tax benefit	(4,312)		(3,853)		(31,810)
Provision (benefit) for income taxes	$	6,113	$	6,008	$	(25,530)

Schedule of Effective Income Tax Rate Reconciliation

The reconciliation of the statutory federal income tax and the Company’s effective income tax is as follows:


	Year Ended December 31,
	2023		2022		2021
Tax at statutory federal rate	21.0	%	21.0	%	21.0	%
State tax—net of federal benefit	2.4	%	1.7	%	1.9	%
Foreign withholding taxes	1.8	%	(2.0)	%	(2.9)	%
Foreign rate differential (1)	12.5	%	(11.8)	%	3.2	%
Stock compensation and other permanent items	7.0	%	(5.1)	%	(24.9)	%
Tax rate change	1.6	%	(0.1)	%	(4.4)	%
Uncertain tax positions	6.5	%	(22.0)	%	(18.9)	%
Change in valuation allowance	4.2	%	(13.6)	%	209.4	%
Global intangible low-taxed income inclusion	4.4	%	—	%	(19.3)	%
Foreign-derived intangible income deduction	(12.6)	%	—	%	—	%
Foreign tax credits	(6.1)	%	—	%	4.9	%
Return to provision adjustments	(5.1)	%	(0.4)	%	5.4	%
Other	(0.2)	%	—	%	0.2	%
Effective tax rate	37.4	%	(32.3)	%	175.6	%

_______________________________

(1) Primarily relates to higher tax rates relating to certain of the Company’s European operations.

Schedule of Deferred Tax Assets and Liabilities


	December 31,
	2023		2022
	(In thousands)
Deferred tax assets:
Net operating loss carryforwards	$	12,500	$	15,005
Foreign tax credit carryforwards	1,492		1,048
Capital loss carryforwards	3,390		3,398
Stock-based compensation	1,578		1,110
Accruals, reserves, and other	5,433		6,276
Senior notes interest & deferred financing fees	4,872		10,033
Capitalization of research and development costs	24,257		13,946
Allowance for credit losses	2,565		1,409
Gross deferred tax assets	56,087		52,225
Valuation allowance	(16,309)		(15,629)
Total deferred tax assets	39,778		36,596
Deferred tax liabilities:
Intangible assets and capitalized software	(5,399)		(6,181)
Total deferred tax liabilities	(5,399)		(6,181)
Net deferred tax assets	$	34,379	$	30,415

The activity related to the gross amount of unrecognized tax benefits is as follows:


	Year Ended December 31,
	2023		2022		2021
	(In thousands)
Beginning balance	$	7,352	$	3,272	$	1,232
Decreases due to tax settlements	—		(464)		(616)
Decreases due to expirations of statutes of limitations	(699)		(93)		(112)
Additions based on tax positions related to prior year	1,612		1,617		2,323
Additions based on tax positions related to current year	158		3,020		445
Ending balance	$	8,423	$	7,352	$	3,272

Investments in Marketable Securities - Debt Securities, Available-for-Sale (Details) - USD ($) $ in Thousands	Dec. 31, 2023	Dec. 31, 2022
Debt Securities, Available-for-Sale [Line Items]
Amortized cost	$ 178,948	$ 286,903
Gross unrealized gains	327	32
Gross Unrealized Losses	(343)	(2,071)
Estimated Fair Value	178,932	284,864
Cash Equivalents	18,852	39,198
Short-term investments	94,313	166,905
Long-term investments	65,767	78,761
Accrued interest	$ 1,400	$ 1,000
Debt Securities, Available-for-Sale, Accrued Interest, after Allowance for Credit Loss, Statement of Financial Position [Extensible Enumeration]	Total accrued and other current liabilities	Total accrued and other current liabilities
Level I \| Money market funds
Debt Securities, Available-for-Sale [Line Items]
Amortized cost	$ 15,355	$ 39,198
Gross unrealized gains	0	0
Gross Unrealized Losses	0	0
Estimated Fair Value	15,355	39,198
Level I \| Money market funds \| Cash Equivalents
Debt Securities, Available-for-Sale [Line Items]
Cash Equivalents	15,355	39,198
Short-term investments	0	0
Long-term investments	0	0
Level II \| U.S. Treasuries
Debt Securities, Available-for-Sale [Line Items]
Amortized cost	14,977	31,721
Gross unrealized gains	1	0
Gross Unrealized Losses	(29)	(317)
Estimated Fair Value	14,949	31,404
Level II \| U.S. Treasuries \| Short And Long Term Marketable Securities
Debt Securities, Available-for-Sale [Line Items]
Cash Equivalents	3,497	0
Short-term investments	11,452	23,701
Long-term investments	0	7,703
Level II \| U.S. government bonds
Debt Securities, Available-for-Sale [Line Items]
Amortized cost	39,048	77,259
Gross unrealized gains	40	0
Gross Unrealized Losses	(114)	(899)
Estimated Fair Value	38,974	76,360
Level II \| U.S. government bonds \| Short And Long Term Marketable Securities
Debt Securities, Available-for-Sale [Line Items]
Cash Equivalents	0	0
Short-term investments	20,762	52,254
Long-term investments	18,212	24,106
Level II \| Commercial paper
Debt Securities, Available-for-Sale [Line Items]
Amortized cost	9,422	43,126
Gross unrealized gains	11	3
Gross Unrealized Losses	(3)	(161)
Estimated Fair Value	9,430	42,968
Level II \| Commercial paper \| Short And Long Term Marketable Securities
Debt Securities, Available-for-Sale [Line Items]
Cash Equivalents	0	0
Short-term investments	9,430	42,968
Long-term investments	0	0
Level II \| U.S. Corporate bonds
Debt Securities, Available-for-Sale [Line Items]
Amortized cost	100,146	95,599
Gross unrealized gains	275	29
Gross Unrealized Losses	(197)	(694)
Estimated Fair Value	100,224	94,934
Level II \| U.S. Corporate bonds \| Short And Long Term Marketable Securities
Debt Securities, Available-for-Sale [Line Items]
Cash Equivalents	0	0
Short-term investments	52,669	47,982
Long-term investments	$ 47,555	$ 46,952

Organization, Description of Business and Summary of Significant Accounting Policies - Revenue Recognition (Details) - USD ($)	12 Months Ended
	Dec. 31, 2023	Dec. 31, 2022
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Contract asset	$ 0	$ 0
Minimum
Disaggregation of Revenue [Line Items]
Payment terms	30 days
Maximum
Disaggregation of Revenue [Line Items]
Payment terms	60 days

- 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

Leases - Assets and Liabilities (Details) - USD ($) $ in Thousands	Dec. 31, 2023	Dec. 31, 2022
Lease assets
Operating leases	$ 12,145	$ 11,065
Finance leases	226	1,858
Total lease assets	12,371	12,923
Lease liabilities
Operating lease obligations, current	3,684	3,236
Finance leases	$ 254	$ 1,758
Finance Lease, Liability, Current, Statement of Financial Position [Extensible Enumeration]	Total accrued and other current liabilities	Total accrued and other current liabilities
Operating lease liabilities, non-current	$ 9,217	$ 8,445
Finance leases	$ 0	$ 254
Finance Lease, Liability, Noncurrent, Statement of Financial Position [Extensible Enumeration]	Other liabilities	Other liabilities
Total lease liabilities	$ 13,155	$ 13,693
Finance Lease, Right-of-Use Asset, Statement of Financial Position [Extensible Enumeration]	Property, equipment and capitalized software, net	Property, equipment and capitalized software, net
Operating Lease, Liability, Current, Statement of Financial Position [Extensible Enumeration]	Total accrued and other current liabilities	Total accrued and other current liabilities

Income Taxes - Effective Income Tax Rate Reconciliation (Details)	12 Months Ended
	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2021
Income Tax Disclosure [Abstract]
Tax at statutory federal rate	21.00%	21.00%	21.00%
State tax—net of federal benefit	2.40%	1.70%	1.90%
Foreign withholding taxes	1.80%	(2.00%)	(2.90%)
Foreign rate differential (1)	12.50%	(11.80%)	3.20%
Stock compensation and other permanent items	7.00%	(5.10%)	(24.90%)
Tax rate change	1.60%	(0.10%)	(4.40%)
Uncertain tax positions	6.50%	(22.00%)	(18.90%)
Change in valuation allowance	4.20%	(13.60%)	209.40%
Global intangible low-taxed income inclusion	4.40%	0.00%	(19.30%)
Foreign-derived intangible income deduction	(12.60%)	0.00%	0.00%
Foreign tax credits	(6.10%)	0.00%	4.90%
Return to provision adjustments	(5.10%)	(0.40%)	5.40%
Other	(0.20%)	0.00%	0.20%
Effective tax rate	37.40%	(32.30%)	175.60%