0001664998-22-000025 | 10-K | XBRL Viewer

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CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Cash flows from operating activities:
Net loss	$ (11,845)	$ (2,430)	$ (124,323)
Adjustments to reconcile net loss to net cash from operating activities:
Additions to capitalized content	(6,914)	(5,215)	(6,368)
Depreciation and amortization expense	13,639	11,762	7,898
Deferred commissions amortization	19,474	14,238	12,279
Stock compensation expense	29,347	5,281	118,147
Other, net	2,155	848	(664)
Changes in operating assets and liabilities:
Accounts receivable	(14,415)	(6,978)	(11,403)
Deferred commissions	(34,340)	(22,161)	(22,375)
Prepaid and other assets	(6,200)	679	(3,645)
Accounts payable and other liabilities	9,292	2,328	4,938
Deferred revenue	76,585	46,512	55,234
Net cash provided by operating activities	76,778	44,864	29,718
Cash flows from investing activities:
Business combinations, net of cash acquired	(33,824)	0	(4,970)
Purchases of property and equipment	(3,010)	(5,426)	(5,573)
Capitalized internal-use software costs	(2,506)	(2,682)	(5,223)
Net cash used in investing activities	(39,340)	(8,108)	(15,766)
Cash flows from financing activities:
Dividends paid	0	0	(10,000)
Proceeds from the exercise of stock options	5,774	220	353
Proceeds from issuance of common stock under the employee stock purchase plan	3,339	0	0
Repurchase of common stock and options	(1,171)	(4,857)	(339,880)
Proceeds from the issuance of preferred stock, net of issuance costs	0	0	340,393
Proceeds from the issuance of common stock	155,958	4,274	0
Acquisition-related contingent consideration payments	(375)	(252)	(478)
Proceeds from finance lease obligations	0	214	0
Payments for finance lease obligations	(40)	(35)	0
Taxes paid for the net share settlement of restricted stock units	(12,253)	0	0
Net cash provided by (used in) financing activities	151,232	(436)	(9,612)
Effect of exchange rate changes on cash and cash equivalents	(529)	398	(49)
Net change in cash and cash equivalents	188,141	36,718	4,291
Cash and cash equivalents, beginning of period	85,582	48,864	44,573
Cash and cash equivalents, end of period	273,723	85,582	48,864
Supplemental disclosure of cash flow information:
Cash paid for taxes	2,637	101	16
Supplemental disclosure of noncash investing and financing activities:
Capital expenditures and other assets included in accounts payable and accrued expenses	574	875	1,723
Stock compensation recorded as liability	$ 0	$ 991	$ 249

Stockholder's Equity - Additional Information (Details) $ / shares in Units, $ in Millions		12 Months Ended
	Apr. 26, 2021 USD ($) vote $ / shares shares	Dec. 31, 2021 $ / shares shares	Dec. 31, 2020 $ / shares shares	Dec. 31, 2019 $ / shares	Apr. 25, 2021 vote $ / shares shares	Mar. 31, 2021 $ / shares shares
Subsidiary, Sale of Stock [Line Items]
Offering costs reclassified into stockholders' equity (deficit) \| $	$ 2.2
Common stock, shares authorized (in shares) \| shares		0	176,000,000
Common stock, par value (in dollars per share)		$ 0.00001	$ 0.00001
Common stock, number of votes \| vote					1
Preferred stock, shares authorized (in shares) \| shares		0	114,164,600		100,000,000	114,164,600
Preferred stock, par value (in dollars per share)		$ 0.00001	$ 0.00001		$ 0.00001	$ 0.00001
Preferred stock, dividends per share, declared (in dollars per share)		0	0	$ 0.07
Common stock, dividends per share, declared (in dollars per share)		$ 0	$ 0
Preferred stock, conversion ratio	1
IPO
Subsidiary, Sale of Stock [Line Items]
Sale of stock, number of shares issued and sold (in shares) \| shares	10,425,000
Sale of stock, price per share (in dollars per share)	$ 16.00
Sale of stock, net proceeds \| $	$ 156.0
Over-Allotment Option
Subsidiary, Sale of Stock [Line Items]
Sale of stock, number of shares issued and sold (in shares) \| shares	1,425,000
Common Stock, Class A
Subsidiary, Sale of Stock [Line Items]
Common stock, shares authorized (in shares) \| shares		1,000,000,000	0		1,000,000,000
Common stock, par value (in dollars per share)		$ 0.00001	$ 0.00001		$ 0.00001
Common Stock, Class B
Subsidiary, Sale of Stock [Line Items]
Common stock, shares authorized (in shares) \| shares		500,000,000	0		500,000,000
Common stock, par value (in dollars per share)		$ 0.00001	$ 0.00001		$ 0.00001
Common stock, number of votes \| vote	10
Common stock, conversion ratio	1	1

Income Taxes - Schedule of Provision for (Benefit from) Income Taxes (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Current:
Federal and State	$ (403)	$ (90)	$ (34)
Foreign	(2,243)	(1,113)	(270)
Total current tax expense	(2,646)	(1,203)	(304)
Deferred:
Federal and State	1,543	(4)	(5)
Foreign	(2,785)	(625)	694
Total deferred tax (expense) benefit	(1,242)	(629)	689
(Provision for) benefit from income taxes	$ (3,888)	$ (1,832)	$ 385

CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY (DEFICIT) - USD ($) $ in Thousands	Total	Conversion of convertible preferred stock and previously authorized common stock to Class B common stock	Conversion of Class B common stock to Class A common stock	Common Stock, Class A	Common Stock, Class B	Convertible Preferred Stock, Series C	Convertible Preferred Stock, Series C-1	Convertible Preferred Stock	Convertible Preferred Stock Conversion of convertible preferred stock and previously authorized common stock to Class B common stock	Convertible Preferred Stock Convertible Preferred Stock, Series C	Convertible Preferred Stock Convertible Preferred Stock, Series C-1	Common Stock	Common Stock Conversion of convertible preferred stock and previously authorized common stock to Class B common stock	Common Stock Common Stock, Class A	Common Stock Common Stock, Class A Conversion of Class B common stock to Class A common stock	Common Stock Common Stock, Class B	Common Stock Common Stock, Class B Conversion of convertible preferred stock and previously authorized common stock to Class B common stock	Common Stock Common Stock, Class B Conversion of Class B common stock to Class A common stock	Additional Paid In Capital	Additional Paid In Capital Convertible Preferred Stock, Series C	Additional Paid In Capital Convertible Preferred Stock, Series C-1	Accumulated Other Comprehensive (Loss) Income	Accumulated Deficit
Beginning balance (in shares) at Dec. 31, 2018								55,245,840				92,097,360		0		0
Beginning balance at Dec. 31, 2018	$ 10,521							$ 0				$ 0		$ 0		$ 0			$ 45,523			$ (452)	$ (34,550)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Issuance of common stock for exercise of stock options (in shares)												9,402,120
Issuance of common stock for exercise of stock options	353																		353
Repurchase of common stock (in shares)												(59,412,200)
Repurchase of common stock	(339,880)																		(339,880)
Dividends paid	(10,000)																		(10,000)
Issuance of stock (in shares)										6,511,400	52,407,360
Issuance of stock						$ 31,163	$ 309,230													$ 31,163	$ 309,230
Stock compensation expense	117,898																		117,898
Other comprehensive income (loss)	23																					23
Net loss	(124,323)				$ (124,323)																		(124,323)
Ending balance (in shares) at Dec. 31, 2019								114,164,600				42,087,280		0		0
Ending balance at Dec. 31, 2019	$ (5,015)							$ 0				$ 0		$ 0		$ 0			154,287			(429)	(158,873)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Issuance of common stock for exercise of stock options (in shares)	328,600											328,600				0
Issuance of common stock for exercise of stock options	$ 220																		220
Repurchase of common stock (in shares)												(868,640)
Repurchase of common stock	(5,579)																		(5,579)
Issuance of stock (in shares)												731,760
Issuance of stock	4,274																		4,274
Stock compensation expense	5,281																		5,281
Other comprehensive income (loss)	90																					90
Net loss	(2,430)			$ (2,430)																			(2,430)
Ending balance (in shares) at Dec. 31, 2020								114,164,600				42,279,000		0		0
Ending balance at Dec. 31, 2020	$ (3,159)							$ 0				$ 0		$ 0		$ 0			158,483			(339)	(161,303)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Issuance of common stock for exercise of stock options (in shares)	4,608,536											274,720				4,333,816
Issuance of common stock for exercise of stock options	$ 5,774															$ 1			5,773
Issuance of common stock under the employee stock purchase plan (in shares)														239,937
Issuance of common stock under the employee stock purchase plan	3,339																		3,339
Issuance of common stock for business combinations (in shares)												1,245,440		1,194,957
Issuance of common stock for business combinations	53,653																		53,653
Repurchase of common stock (in shares)												(97,600)
Repurchase of common stock	(181)																		(181)
Conversion of stock to Common stock (in shares)									(114,164,600)				(43,701,560)		53,900,456		157,866,160	(53,900,456)
Conversion of stock to Common stock		$ 2	$ 0												$ 1		$ 2	$ (1)
Issuance of stock (in shares)														10,425,000
Issuance of stock	153,796																		153,796
Issuance of common stock from vesting of restricted stock units (in shares)														1,016,959
Taxes paid related to net share settlement of equity awards (in shares)														(441,379)		(362,741)
Taxes paid related to net share settlement of equity awards	(12,253)																		(12,253)
Stock compensation expense	29,193																		29,193
Other comprehensive income (loss)	(1,052)																					(1,052)
Net loss	(11,845)
Ending balance (in shares) at Dec. 31, 2021								0				0		66,335,930		107,936,779
Ending balance at Dec. 31, 2021	$ 217,267							$ 0				$ 0		$ 1		$ 2			$ 391,803			$ (1,391)	$ (173,148)

Income Taxes - Schedule of Deferred Tax Assets and Liabilities (Details) - USD ($) $ in Thousands	Dec. 31, 2021	Dec. 31, 2020
Deferred tax assets:
Net operating loss carryforward	$ 15,892	$ 12,156
Deferred revenue	21,905	16,007
Stock compensation	2,451	2,838
Operating lease liabilities	2,899	2,521
Research and development tax credit	2,419	1,151
Other	2,602	429
Gross deferred tax assets	48,168	35,102
Less: Valuation allowances	(27,601)	(21,862)
Total deferred tax assets	20,567	13,240
Deferred tax liabilities:
Deferred commissions	(12,282)	(7,398)
Property, equipment and intangible assets	(7,976)	(2,918)
Operating lease right of use assets, net	(2,798)	(2,440)
Other	(740)	(361)
Total deferred tax liabilities	(23,796)	(13,117)
Net deferred tax liabilities	$ (3,229)
Net deferred tax assets		$ 123

Revenue, Deferred Revenue and Remaining Performance Obligations (Tables)

12 Months Ended

Dec. 31, 2021

Revenue from Contract with Customer [Abstract]

Schedule of Customer Revenue by Type

The following table summarizes revenue recognized from performance obligations delivered to customers which relate to (i) subscription services that are recognized ratably over the term of the contract and (ii) subscription revenue allocated to downloadable content which is recognized at a point in time, as follows (in thousands):


	Year Ended December 31,
	2021		2020		2019
Ratable portion of subscription revenue	$	212,128	$	148,977	$	100,084
Subscription revenue allocated to downloadable content	34,170		25,909		20,491
Total	$	246,298	$	174,886	$	120,575

Schedule of Customer Revenue by Region

The following table summarizes the revenue by region based on the shipping address of customers who have contracted to use the Company’s platform (in thousands):


	Year Ended December 31,
	2021		2020		2019
North America	$	207,221	$	154,131	$	108,835
International	39,077		20,755		11,740
Total	$	246,298	$	174,886	$	120,575

Schedule of Changes in Deferred Revenue

Contract liabilities consist of deferred revenue which represents contractual billings made in advance of performance under the contract. Changes in deferred revenue were as follows (in thousands):


	Year Ended December 31,
	2021		2020		2019
Beginning balance	$	185,696	$	138,990	$	83,676
Plus: Additions to deferred revenue	326,376		221,671		175,636
Less: Recognition of revenue deferred in the prior year	(136,325)		(98,657)		(59,682)
Less: Recognition of revenue deferred in the current year	(109,973)		(76,308)		(60,640)
Ending balance	$	265,774	$	185,696	$	138,990

Schedule of Remaining Performance Obligations

Remaining performance obligations consisted of the following (in thousands):


	December 31,
	2021		2020
Current	$	198,134	$	136,382
Noncurrent	125,534		87,395
Total	$	323,668	$	223,777

Schedule of Changes in Deferred Commissions

Changes in deferred commissions were as follows (in thousands):


	Year Ended December 31,
	2021		2020		2019
Beginning balance	$	37,199	$	29,176	$	19,080
Plus: Additions to deferred commissions	34,340		22,161		22,375
Less: Recognition of deferred commissions	(19,474)		(14,238)		(12,279)
Plus: Foreign currency impacts on deferred commissions	(354)		100		—
Ending balance	$	51,711	$	37,199	$	29,176

Capitalized Software and Content, Net - Capitalized Computer Software And Content (Details) - USD ($) $ in Thousands	Dec. 31, 2021	Dec. 31, 2020
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract]
Internally developed capitalized software	$ 16,689	$ 15,081
Acquired developed technology	11,900	0
Capitalized content	23,277	16,899
Capitalized software and content, gross	51,866	31,980
Less: Accumulated amortization	(24,792)	(16,457)
Total capitalized software and content, net	$ 27,074	$ 15,523

Stock Compensation - Narrative (Details) - USD ($)	12 Months Ended
Stock Compensation - Narrative (Details) - USD ($)	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019	Apr. 20, 2021	Jan. 19, 2016
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Additional compensation expense	$ 0	$ 1,900,000	$ 116,500,000
Unrecognized stock compensation	$ 51,800,000
Common Stock
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Shares repurchased during period (in shares)	97,600	868,640	59,412,200
2016 Equity Incentive Plan
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Reserved for issuance (in shares)	9,104,749
2021 Equity Incentive Plan
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Authorized issuance or sale of shares (in shares)				18,400,000
Reserved for issuance (in shares)	18,262,924
Stock options
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Unrecognized stock compensation, weighted-average period (in years)	2 years 8 months 12 days
Stock options \| 2016 Equity Incentive Plan
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Authorized issuance or sale of shares (in shares)					37,728,000
Vesting period (in years)	4 years
Share grant expiration period (in years)	10 years
Stock options \| Tranche One \| 2016 Equity Incentive Plan
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting percentage	25.00%
Employee stock purchase plan
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Authorized issuance or sale of shares (in shares)				3,350,000

Income Taxes - Narrative (Details) - USD ($)	12 Months Ended
Income Taxes - Narrative (Details) - USD ($)	Dec. 31, 2021	Dec. 31, 2020
Income Tax Disclosure [Abstract]
Valuation allowance, increase	$ 5,700,000
Federal net operating loss carryforwards	59,600,000	$ 41,300,000
Net operating loss carryforwards for state income tax purposes	41,800,000	33,800,000
Research and development tax credit carryforward	2,419,000	1,151,000
Unrecognized tax benefits	$ 0	$ 0

Property and Equipment, Net (Tables)

12 Months Ended

Dec. 31, 2021

Property, Plant and Equipment [Abstract]

Schedule of Property and Equipment, Net

Depreciation is calculated on a straight-line basis over the estimated useful lives of the assets, as follows:


Computers and equipment			3 years
Furniture and fixtures			5 - 7 years
Leasehold improvements			shorter of lease term or 5 years

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


	December 31,
	2021		2020
Leasehold improvements	$	8,677	$	9,143
Computers and other equipment	7,038		5,630
Furniture and fixtures	2,002		2,107
	17,717		16,880
Less: Accumulated depreciation	(8,597)		(6,596)
Total property and equipment, net	$	9,120	$	10,284

Summary of Significant Accounting Policies - Useful Lives of Intangible Assets (Details)	12 Months Ended
	Dec. 31, 2021
Acquired content \| Minimum
Finite-Lived Intangible Assets [Line Items]
Definite-lived intangible asset, useful life (in years)	3 years
Acquired content \| Maximum
Finite-Lived Intangible Assets [Line Items]
Definite-lived intangible asset, useful life (in years)	4 years
Customer relationships \| Minimum
Finite-Lived Intangible Assets [Line Items]
Definite-lived intangible asset, useful life (in years)	4 years
Customer relationships \| Maximum
Finite-Lived Intangible Assets [Line Items]
Definite-lived intangible asset, useful life (in years)	6 years
Other Intangibles \| Minimum
Finite-Lived Intangible Assets [Line Items]
Definite-lived intangible asset, useful life (in years)	3 years
Other Intangibles \| Maximum
Finite-Lived Intangible Assets [Line Items]
Definite-lived intangible asset, useful life (in years)	10 years
Patents
Finite-Lived Intangible Assets [Line Items]
Definite-lived intangible asset, useful life (in years)	20 years

Revolving Credit Facility (Details) - Credit Agreement - Line of Credit - USD ($)	Mar. 12, 2021	Dec. 31, 2021
Revolving Credit Facility
Debt Instrument [Line Items]
Current borrowing capacity	$ 100,000,000
Increase limit on borrowings	$ 50,000,000
Borrowings outstanding		$ 0
Revolving Credit Facility \| Federal Funds Rate
Debt Instrument [Line Items]
Basis spread on variable rate	0.50%
Revolving Credit Facility \| Eurodollar Rate
Debt Instrument [Line Items]
Basis spread on variable rate	1.00%
Revolving Credit Facility \| Eurodollar Rate \| Minimum
Debt Instrument [Line Items]
Basis spread on variable rate	0.50%
Letter of Credit
Debt Instrument [Line Items]
Borrowing capacity, swingline sublimit	$ 10,000,000
Borrowings outstanding		$ 0

Net Loss per Share - Schedule of Excluded Antidilutive Securities (Details) - shares	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Stock options
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive securities excluded from computation of earnings per share, amount (in shares)	12,399,924	12,974,400	12,173,640
Restricted stock units
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive securities excluded from computation of earnings per share, amount (in shares)	367,270	0	0
Employee stock purchase plan
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive securities excluded from computation of earnings per share, amount (in shares)	0	0	0
Preferred shares, Series A
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive securities excluded from computation of earnings per share, amount (in shares)	0	30,525,040	30,525,040
Preferred shares, Series A-1
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive securities excluded from computation of earnings per share, amount (in shares)	0	6,764,960	6,764,960
Preferred shares, Series B
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive securities excluded from computation of earnings per share, amount (in shares)	0	17,955,840	17,955,840
Preferred shares, Series C
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive securities excluded from computation of earnings per share, amount (in shares)	0	6,511,400	5,102,080
Preferred shares, Series C-1
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive securities excluded from computation of earnings per share, amount (in shares)	0	52,407,360	26,131,880

Summary of Significant Accounting Policies (Policies)

12 Months Ended

Dec. 31, 2021

Accounting Policies [Abstract]

Basis of Presentation

The Company’s consolidated financial statements and accompanying notes include the accounts of the Company and its wholly-owned subsidiaries and have been prepared in accordance with United States generally accepted accounting principles (“U.S. GAAP”). All intercompany balances and transactions have been eliminated in consolidation. Certain prior period amounts within the accompanying consolidated balance sheets reflect an immaterial error correction and have been reclassified. The consolidated balance sheet as of December 31, 2020 differs from the previously filed Form S-1 as they reflect an adjustment to reclassify amounts from noncurrent deferred revenue to current deferred revenue.

Consolidation

Use of Estimates

The preparation of consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the amounts reported and disclosed in the Company’s consolidated financial statements and accompanying notes. Estimates and assumptions used by management primarily affect revenue recognition, deferred commissions, fair value of net assets acquired in business combinations, common stock valuations (prior to the Company's IPO) and stock compensation expense.

These estimates are based on information available as of the date of the consolidated financial statements. On an ongoing basis, the Company evaluates these assumptions, judgments and estimates. Actual results may differ materially from these estimates.

Operating Segments

The Company operates as a single operating segment, which engages in the development, marketing and sale of the Company’s SaaS-based security awareness platform. Operating segments are defined as components of an enterprise for which separate financial information is evaluated regularly by the chief operating decision maker in deciding how to allocate resources and assess performance. The Company’s chief operating decision maker is the Chief Executive Officer, who is responsible for evaluating the Company’s financial results, evaluating the Company’s resources and assessing the performance of the operations on a consolidated basis.

Cash and Cash Equivalents

The Company considers all investments purchased with an original maturity of 90 days or less to be cash equivalents. Cash and cash equivalents include $180.2 million and $22.5 million of overnight money market mutual funds at December 31, 2021 and 2020, respectively. The carrying amount of such cash equivalents approximates their fair value due to the short-term and highly liquid nature of these instruments.

Accounts Receivable

Accounts receivable represents amounts owed to the Company for subscriptions to the Company’s platform and unbilled receivables representing the Company’s unconditional right to consideration for subscription contracts for which revenue has been earned in excess of the amount invoiced. Accounts receivable balances are recorded at the invoiced amount and are non-interest bearing.The Company maintains an allowance for doubtful accounts based on future expected credit losses measured over the contractual term of the receivable. Management regularly reviews the adequacy of the allowance for doubtful accounts by considering various factors including the age of each outstanding invoice, each customer’s expected ability to pay, historical loss rates and expectations of forward-looking loss estimates to determine whether the allowance is appropriate. The Company writes off accounts receivable balances to the allowance for doubtful accounts when the Company has exhausted all collection efforts.

Deferred Commissions and Revenue Recognition

The Company capitalizes sales commissions and associated benefits and payroll taxes paid to internal sales personnel that are considered incremental costs to acquire a customer contract. These costs are classified as deferred commissions on the consolidated balance sheets. Sales commissions related to an initial subscription contract are considered incremental to the acquisition of the customer contract to the extent that they exceed commissions earned on renewal sales. Sales commissions related to the renewal of a subscription contract are not considered commensurate with the commissions paid for the acquisition of the initial subscription contract given the substantive difference in commission rate between new and renewal contracts. The portion of commissions paid upon the initial acquisition of a contract that are incremental to acquisition of the customer contract are amortized over an estimated period of benefit of six years. The portion of commissions paid upon initial acquisition that are commensurate with those paid on a renewal contract and commissions paid related to renewal contracts are amortized over the average length of the related revenue contract. An estimate of the portion of commissions related to the downloadable content performance obligation is made, which is recognized at contract inception consistent with the pattern of revenue recognition. The estimated period of benefit for commissions paid for the acquisition of the initial subscription contract is determined based on qualitative and quantitative factors including the initial estimated customer life, the technological life of the Company’s platform and related significant features, customer attrition and industry practices. Amortization of deferred sales commissions is included in sales and marketing expense in the accompanying consolidated statements of operations.

The Company derives substantially all of its revenue from subscription services fees paid by customers for access to the Company’s cloud-based platform and content. The Company applies the following five-step approach for considering contracts:

•identification of the contract, or contracts, with the customer;

•identification of the performance obligations in the contract;

•determination of the transaction price;

•allocation of the transaction price to the performance obligations in the contract; and

•recognition of revenue when, or as, the Company satisfies a performance obligation.

The Company recognizes revenue at the time the related performance obligation is satisfied by transferring the service to a customer in an amount that reflects the consideration the Company expects to be entitled to in exchange for those services, net of any sales or other tax. The Company’s subscription contracts typically vary from one year to three years and are generally noncancellable and nonrefundable.

Subscription service revenue consists of subscription fees earned from providing access to the Company’s cloud-based platform, including support services and feature upgrades, if and when available. The Company’s cloud-based platform also includes training content which can be downloaded by the customer during their subscription term. The subscription service contracts do not provide customers with the right to take possession of the software operating on the cloud platform and, as a result, are accounted for as service arrangements. Access to the platform represents a series of distinct services that the Company continually provides access to, which fulfills its obligation to the end customer over the subscription term. This series of distinct services represents a single performance obligation that is satisfied over time. Accordingly, the amounts allocated to the ratable portion of subscription revenue are recorded as deferred revenue and recognized on a straight-line basis over the contract term, beginning on the date that the service is made available to the customer. Amounts expected to be recognized within one year of the balance sheet date are classified within current liabilities and the remaining portion is classified in long-term liabilities.

The customers’ ability to access and download content throughout their subscription term is considered distinct and accounted for as a separate performance obligation. The portion of the transaction price allocated to the downloadable content performance obligation is recognized as revenue at contract inception when the customer gains access to the downloadable content.

The transaction price is allocated to the separate performance obligations on a relative stand-alone selling price, or SSP, basis. The SSP for the ratable portion of subscription revenue is determined using observable stand-alone sales data, including adjustments for standard discounting practices. As it relates to the content available for

download, we determine SSP using an adjusted market assessment approach , which requires significant judgment. The calculation of SSP primarily utilizes suggested royalty rates, assumptions regarding content production costs and other industry pricing data.

Property and Equipment, Net

Property and equipment are stated at cost, net of accumulated depreciation. Depreciation is calculated on a straight-line basis over the estimated useful lives of the assets, as follows:


Computers and equipment			3 years
Furniture and fixtures			5 - 7 years
Leasehold improvements			shorter of lease term or 5 years

Expenditures which significantly add to productive capacity or extend the useful life of an asset are capitalized. Maintenance and repairs to property and equipment are expensed as incurred. When assets are retired or otherwise disposed of, the cost and accumulated depreciation is removed from the accounts and gains or losses, if any, are recorded in other expenses.

Capitalized Software and Content, Net

The Company capitalizes costs incurred related to the development of internal use software during the application development stage. These capitalized costs are primarily related to the development of the Company’s security awareness platform. Costs are capitalized to develop new internal use software or to significantly increase the functionality of existing software. Additionally, the Company records acquired internal-use software and technology assets within the capitalized software and content caption on its consolidated balance sheets. Capitalized software costs are amortized on a straight-line basis over the software’s estimated useful life of three to six years. Management evaluates the useful lives of these assets on an annual basis and tests for impairment whenever events or changes in circumstances occur that could impact the recoverability of these assets. There were no impairments of capitalized internal use software during the years ended December 31, 2021 or 2020.

The Company also capitalizes costs related to the production of its training content, which includes interactive modules, movie series, videos, games and other content. Costs associated with the production of content, including development costs, direct costs and production overhead, are capitalized. Capitalized content is amortized over the estimated period of use, which generally ranges from three to seven years. The Company’s business model is subscription based, therefore, capitalized content is reviewed in the aggregate when an event or change in circumstances indicates a change in the expected usefulness of the content. To date, we have not identified any such event or change in circumstances. If such changes are identified in the future, capitalized content will be stated at the lower of unamortized cost, net realizable value or fair value. In addition, unamortized costs for assets that have been, or are expected to be, abandoned are written off.

Goodwill and Intangible Assets

Goodwill represents the excess of the purchase price in a business combination over the estimated fair value of identifiable net assets acquired. The Company evaluates and tests the recoverability of goodwill for impairment at least annually, on October 1, or more frequently if circumstances indicate that goodwill may not be recoverable. The Company performs the impairment testing by first assessing qualitative factors to determine whether the existence of events or circumstances leads to a determination that it is more likely than not that the fair value of its single reporting unit is less than its carrying amount. In assessing the qualitative factors, the Company considers the impact of certain key factors including macroeconomic conditions, industry and market considerations, changes in management, litigation or regulatory matters, changes in enterprise value, and overall financial performance. If, after assessing the totality of events or circumstances, the Company determines it is more likely than not that the fair value of the reporting unit is less than its carrying amount, the Company calculates the estimated fair value of the reporting unit and any excess of the carrying amount over fair value is recognized as a goodwill impairment loss. Based on the results of the qualitative goodwill impairment analyses, the Company has determined there were no triggering events indicating impairment of goodwill during the years ended December 31, 2021 or 2020.

Intangible assets consist of both definite-lived intangible assets, primarily acquired content, customer relationships, patents, trademarks and domain names, and indefinite-lived trade name intangible assets. Definite-lived intangible assets are amortized on a straight-line basis over their estimated useful lives, as follows:


Acquired content			3 - 4 years
Customer relationships			4 - 6 years
Other Intangibles			3 - 10 years
Patents			20 years

Impairment of Intangible and Other Long-Lived Assets

The Company performs an impairment review of long-lived assets, including property and equipment and both definite and indefinite-lived intangible assets, whenever events or changes in circumstances indicate that the carrying value may not be recoverable, in accordance with the respective accounting standards. If the Company determines that the carrying value of an asset group may not be recoverable, the Company measures recoverability by comparing the carrying amount of the asset group to the future undiscounted cash flows it expects the asset group to generate. If the Company considers any of these assets to be impaired, the impairment to be recognized equals the amount by which the carrying value of the asset exceeds its fair value. In addition, the Company periodically evaluates the estimated remaining useful lives of long-lived assets to determine whether events or changes in circumstances warrant a revision to the remaining period of depreciation or amortization.

Leases

The Company determines whether an arrangement is or contains a lease at inception and classifies its leases at commencement. Operating leases with initial terms of twelve months or greater are included in operating lease right-of-use (“ROU”) assets and operating lease liabilities in the consolidated balance sheets.

ROU assets represent the Company’s right to use underlying assets over the term of the lease and lease liabilities represent the Company’s contractual obligation to make lease payments over the lease term. Operating lease ROU assets and lease liabilities are recognized at the commencement date based on the present value of the lease payments over the lease term. Operating lease ROU assets also include any unamortized initial direct costs and any prepayments less any unamortized lease incentives received. As the Company’s leases do not provide an implicit rate for use in determining the present value of future payments, the Company uses its incremental borrowing rate. Options to extend or terminate a lease are included in the ROU asset and lease liability when it is reasonably certain that the Company will exercise the option.

Lease expense for minimum lease payments for operating leases is recognized on a straight-line basis over the lease term and is included in operating expenses within the consolidated statements of operations. Variable lease costs represent non-lease components, namely common area maintenance and taxes, that are not fixed and are expensed as incurred.

Income Taxes

The Company uses the asset and liability method of accounting for income taxes. Under this method, deferred tax assets and liabilities are determined based on temporary differences between the financial statement and tax bases of assets and liabilities using enacted tax rates in effect for the year in which the differences are expected to reverse.

The Company’s tax positions are subject to income tax audits by certain tax jurisdictions throughout the world. The Company recognizes the tax benefit of an uncertain tax position only if it is more likely than not that the position will be sustainable upon examination by the taxing authority. The tax benefit recognized is measured as the largest amount of benefit which is greater than 50 percent likely to be realized upon settlement with the taxing authority. The Company recognizes interest accrued and penalties related to unrecognized tax benefits in the income tax (benefit) provision.

Valuation allowances are established when necessary to reduce deferred tax assets to the amounts that are more likely than not expected to be realized based on the weighting of positive and negative evidence. Future realization of deferred tax assets ultimately depends on the existence of sufficient taxable income of the appropriate character (for example, ordinary income or capital gain) within the carryback or carryforward periods available under the applicable tax law. The Company regularly reviews the deferred tax assets for recoverability based on historical taxable income, projected future taxable income, the expected timing of the reversals of existing temporary differences and tax planning strategies. The Company’s judgments regarding future profitability may change due to many factors, including future market conditions and the ability to successfully execute its business plans and/or tax

planning strategies. Should there be a change in the ability to recover deferred tax assets, the tax provision would increase or decrease in the period in which the assessment is changed.

Foreign Currency Transactions

The functional currency of the Company’s subsidiaries is determined based on the primary economic environment in which the subsidiary operates. Assets and liabilities of its non-U.S. dollar functional currency subsidiaries are translated into U.S. dollars using exchange rates in effect at the end of each period and revenues and expenses are translated at the average exchange rate for the period. Gains and losses from these translations are recognized as cumulative translation adjustments and included in accumulated other comprehensive loss.

The Company remeasures monetary assets and liabilities that are not denominated in the functional currency at average exchange rates in effect during each period. Gains and losses from these remeasurement adjustments are recognized within other income (expense).

Cost of Revenues

Cost of revenues consists of certain direct costs associated with delivering the Company’s platform and includes hosting fees as well as amortization of capitalized internal-use software and content and allocated overhead. Cost of revenues also includes personnel costs, including salaries, benefits, bonuses, and stock compensation, for employees who provide support services to customers.

Stock Compensation

The Company measures and recognizes compensation expense for all stock-based awards based on the estimated fair value of the award on the date of grant. Following the Company’s IPO, stock awards primarily consist of time and performance-based restricted stock units (“RSUs”). The grant date fair value of RSUs is measured at the grant date closing stock price and expense is recognized on a straight-line basis over the vesting period of the award, which is generally three years, and net of forfeitures, which are recorded as incurred.

Performance-based RSUs vest, if at all, based on internal performance targets in effect during the year of grant. Stock compensation expense related to these awards is initially based on the number of shares that would vest if the Company achieved 100% of the performance target, which is the intended outcome at the grant date. Throughout the requisite service period, which is generally three years, management monitors the probability of achievement of the performance target. If it becomes probable that more or less than the current estimate of awarded shares will vest, an adjustment to stock compensation expense will be recognized as a change in accounting estimate in the period that such probability changes.

Stock compensation expenses related to the Company’s Employee Stock Purchase Plan (“ESPP”) are based on the grant date fair value using the Black-Scholes option-pricing model. These expenses are recognized on a straight-line basis over the offering period, which is generally 6 months unless otherwise determined by the Company’s board of directors or compensation committee. The ESPP allows eligible employees to purchase shares of the Company’s Class A common stock at a 15.0% discount from the lesser of the fair market value of our common stock on (i) the first trading day of the applicable offering period or (ii) the last trading day of the purchase period in the applicable offering period.

Prior to the Company’s IPO and before there was an active market for the Company’s Class A common stock, the Company primarily issued stock options and estimated the fair value of its stock options using the Black-Scholes option-pricing model. The most significant estimate utilized in the model was the fair value of the Company’s common stock which was historically determined by our board of directors who exercised judgment and considered numerous objective and subjective factors to determine the best estimate of the fair value of our common stock including (i) valuations performed at or near the time of grant; (ii) rights, preferences, and privileges of our redeemable convertible preferred stock relative to those of our common stock; (iii) our actual operating and financial performance at the time of the option grant; (iv) likelihood of achieving a liquidity event, such as an initial public offering or a merger or acquisition of our business; (v) the value of comparable companies with respect to industry, business model, stage of growth, financial risk or other factors; (vi) our stage of development and future financial projections; (vii) market transactions at or near the time of grant; and (viii) the lack of marketability of our common stock. Following the IPO, there is an active market for the Company’s Class A common stock, and the Company is no longer estimating the fair value of its common stock.

401(k) Plan

The Company maintains a tax-qualified retirement plan, or the 401(k) plan, that provides eligible employees with an opportunity to save for retirement on a tax-advantaged basis. Eligible employees are able to participate in the 401(k) plan as of the first day of the month following the date they meet the 401(k) plan’s eligibility requirements, and participants are able to defer up to 100% of their eligible compensation subject to applicable annual Internal Revenue Code limits. All participants’ interests in their deferrals are 100% vested when contributed and the Company’s matching contributions are 100% vested following one year of service. The Company contracted with a third-party provider to act as a custodian and trustee, and to process and maintain the records of participant data.

Advertising

Advertising costs are expensed as incurred.

Research and Development Costs

Research and development costs are expensed when incurred, except for certain internal-use software development costs, which may be capitalized as noted above. Research and development expenses consist primarily of personnel and related headcount costs, costs of professional services associated with the ongoing development of the Company’s technology, and allocated overhead and are recorded within technology and development expense in the accompanying consolidated statements of operations.

Net Loss per Share

Basic and diluted net loss per share is presented in conformity with the two-class method required for participating securities. Prior to the IPO, the Company considered all series of its convertible preferred stock to be participating securities. Net loss was not allocated to the convertible preferred stock as the holders of the convertible preferred stock do not have a contractual obligation to share in any losses. Since the completion of the IPO, the Company considers shares of Class B common stock to be participating securities, since each share of Class B common stock is convertible into one share of Class A common stock at the option of the holder. Net income is attributed to common stockholders and participating securities based on their participation rights.

Basic net loss per share is computed by dividing the net loss by the weighted-average number of shares of common stock outstanding during the period. Diluted earnings per share is computed by giving affect to all potentially dilutive common stock equivalents to the extent they are dilutive. As the Company has reported losses for all periods presented, all potentially dilutive securities are antidilutive and, accordingly, basic net loss per share equals diluted net loss per share.

Business Combinations

The Company includes the results of operations of the businesses that it acquires as of the respective dates of acquisition. The Company allocates the fair value of the purchase price of its acquisitions to the assets acquired and liabilities assumed based on their estimated fair values at the date of acquisition. The excess of the fair value of the purchase price over the fair values of these identifiable assets and liabilities is recorded as goodwill. Such valuations require management to make significant estimates and assumptions, especially with respect to intangible assets. Significant estimates in valuing certain intangible assets include, but are not limited to, future expected cash flows from acquired customers, acquired technology, the value of trade names from a market participant perspective, useful lives and discount rates. Management’s estimates of fair value are based upon assumptions believed to be reasonable, but which are inherently uncertain and, as a result, actual results may differ from estimates. During the measurement period, which may be up to one year from the acquisition date, the Company may record adjustments to the fair value of assets acquired and liabilities assumed. Upon conclusion of the measurement period or final determination of the fair value of assets acquired or liabilities assumed, whichever comes first, any subsequent adjustments are recorded to the Company’s consolidated statements of operations. Transaction costs associated with business combinations are expensed as incurred, and are included in general and administrative expense in the Company’s consolidated statements of operations.

Concentrations of Credit Risk and Significant Customers

The Company’s financial instruments that are exposed to concentrations of credit risk consist primarily of cash and cash equivalents and accounts receivable. The Company’s cash deposits typically exceed the federally insured limits. Collateral is not required for accounts receivable.

Fair Value Measurement

Assets and liabilities recorded at fair value in the consolidated financial statements are categorized based upon the level of judgment associated with the inputs used to measure their fair value. The lowest level of significant input determines the placement of the fair value measurement within the following hierarchical levels:

•Level 1: Observable inputs that reflect quoted prices (unadjusted) for identical assets or liabilities in active markets.

•Level 2: Other inputs that are directly or indirectly observable in the marketplace.

•Level 3: Unobservable inputs which are supported by little or no market activity.

The Company’s contingent consideration liabilities were initially measured using (1) a probability estimate of achieving the contingency and (2) a Monte Carlo simulation utilizing future revenue projections, a risk-adjusted discount rate and performance volatility assumptions both of which involve inherent uncertainties.

The carrying amounts of certain financial instruments, including cash held in banks, accounts receivable, and accounts payable, approximate fair value due to their short-term maturities and are excluded from the fair value tables above.

Recently Adopted Accounting Pronouncements

In December 2019, the FASB issued ASU No. 2019-12, Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes, (“ASU 2019-12”), which removes certain exceptions related to the approach for intraperiod tax allocation, the methodology for calculating income taxes in an interim period and the recognition of deferred tax liabilities for outside basis differences. ASU 2019-12 also amends other aspects of the guidance to help simplify and promote consistent application of US GAAP. The guidance is effective for interim and annual periods beginning after December 15, 2020, with early adoption permitted. The Company adopted ASU 2019-12 on January 1, 2021 and the adoption was not material to the Company’s consolidated financial statements.

Summary of Significant Accounting Policies - Narrative (Details)	12 Months Ended
	Dec. 31, 2021 USD ($) segment	Dec. 31, 2020 USD ($)	Dec. 31, 2019 USD ($)	Apr. 26, 2021
Cash and Cash Equivalents [Line Items]
Number of operating segments \| segment	1
Cash and cash equivalents	$ 273,723,000	$ 85,582,000
Allowance for doubtful accounts	$ 500,000	400,000
Amortization period (in years)	6 years
Impairments of capitalized internal use software	$ 0	0
Goodwill impairment	0	0
Intangible asset impairment	0	0
Long-lived asset impairment	$ 0	0
Percentage of annual contributions per employee (up to)	100.00%
Percentage of vested annual eligible compensation	100.00%
Percentage of vested employer matching	100.00%
Vesting period (in years)	1 year
Contributions	$ 1,300,000	2,400,000	$ 1,200,000
Advertising expenses	$ 14,400,000	13,300,000	$ 12,200,000
RSUs
Cash and Cash Equivalents [Line Items]
Vesting period (in years)	3 years
Performance-Based RSUs
Cash and Cash Equivalents [Line Items]
Stock compensation expense, performance target, percent	100.00%
Requisite service period	3 years
Employee stock purchase plan
Cash and Cash Equivalents [Line Items]
Offering period (in months)	6 months
Discount percentage	15.00%
Common Stock, Class B
Cash and Cash Equivalents [Line Items]
Common stock, conversion ratio	1			1
Minimum
Cash and Cash Equivalents [Line Items]
Capitalized computer software, useful life (in years)	3 years
Capitalized computer content, useful life (in years)	3 years
Subscription contracts, term (in years)	1 year
Maximum
Cash and Cash Equivalents [Line Items]
Capitalized computer software, useful life (in years)	6 years
Capitalized computer content, useful life (in years)	7 years
Subscription contracts, term (in years)	3 years
Money Market Funds
Cash and Cash Equivalents [Line Items]
Cash and cash equivalents	$ 180,200,000	$ 22,500,000

Net Loss per Share (Tables)

12 Months Ended

Dec. 31, 2021

Earnings Per Share [Abstract]

Schedule of Computation of Net Loss per Share

The computation of net loss per share is as follows (in thousands, except share and per share data):


	Year Ended December 31,
	2021
	Class A		Class B
Numerator:
Allocation of undistributed losses for basic calculation	$	(1,985)	$	(9,860)
Reallocation of undistributed losses for diluted calculation	—		—
Allocation of undistributed losses for diluted calculation	$	(1,985)	$	(9,860)
Denominator:
Number of shares used in basic and diluted per share computation	19,600,001		97,338,682
Net loss per share, basic and diluted	$	(0.10)	$	(0.10)


	Year Ended December 31,
	2020		2019
Numerator:
Net loss	$	(2,430)	$	(124,323)
Less: dividend distribution allocated to preferred stockholders	—		(3,749)
Net loss attributable to common stockholders	$	(2,430)	$	(128,072)
Denominator:
Weighted-average common shares outstanding	42,049,840		66,958,400
Net loss per share, basic and diluted	$	(0.06)	$	(1.91)

Schedule of Excluded Antidilutive Securities

Potentially dilutive securities that were not included in the diluted per share calculations because they would be anti-dilutive were as follows:


	Year Ended December 31,
	2021	2020	2019
Stock options	12,399,924	12,974,400	12,173,640
Restricted stock units	367,270	—	—
Employee stock purchase plan	—	—	—
Preferred shares, Series A	—	30,525,040	30,525,040
Preferred shares, Series A-1	—	6,764,960	6,764,960
Preferred shares, Series B	—	17,955,840	17,955,840
Preferred shares, Series C	—	6,511,400	5,102,080
Preferred shares, Series C-1	—	52,407,360	26,131,880

Income Taxes - Schedule of Reconciliation of the Statutory Federal Income Tax Rate to Effective Tax Rate (Details)	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Income Tax Disclosure [Abstract]
Tax at federal statutory rate	21.00%	21.00%	21.00%
Foreign income taxes	(39.60%)	113.90%	0.30%
State income taxes	14.60%	(3.70%)	1.60%
Permanent differences	1.90%	(204.80%)	(11.60%)
Change in valuation allowance	(61.90%)	(447.80%)	(9.30%)
Research and development tax credit	15.00%	192.70%	0.00%
Other, net	0.10%	22.60%	(1.80%)
Effective tax rate	(48.90%)	(306.20%)	0.30%

Revenue, Deferred Revenue and Remaining Performance Obligations

12 Months Ended

Dec. 31, 2021

Revenue from Contract with Customer [Abstract]

Revenue, Deferred Revenue and Remaining Performance Obligations


	Year Ended December 31,
	2021		2020		2019
Ratable portion of subscription revenue	$	212,128	$	148,977	$	100,084
Subscription revenue allocated to downloadable content	34,170		25,909		20,491
Total	$	246,298	$	174,886	$	120,575

The following table summarizes the revenue by region based on the shipping address of customers who have contracted to use the Company’s platform (in thousands):


	Year Ended December 31,
	2021		2020		2019
North America	$	207,221	$	154,131	$	108,835
International	39,077		20,755		11,740
Total	$	246,298	$	174,886	$	120,575

Contract Balances

The Company records unbilled receivables when revenue recognized on a contract exceeds amounts invoiced. Unbilled receivables were not material as of December 31, 2021 and 2020.

Contract liabilities consist of deferred revenue which represents contractual billings made in advance of performance under the contract. Changes in deferred revenue were as follows (in thousands):


	Year Ended December 31,
	2021		2020		2019
Beginning balance	$	185,696	$	138,990	$	83,676
Plus: Additions to deferred revenue	326,376		221,671		175,636
Less: Recognition of revenue deferred in the prior year	(136,325)		(98,657)		(59,682)
Less: Recognition of revenue deferred in the current year	(109,973)		(76,308)		(60,640)
Ending balance	$	265,774	$	185,696	$	138,990

Remaining Performance Obligations

The transaction price allocated to remaining performance obligations represents contracted revenue that has not yet been recognized, which includes deferred revenue and unbilled amounts that will be recognized as revenue in future periods. The transaction price allocated to the remaining performance obligation is influenced by several factors, including the timing of delivery of the Company’s products and average contract terms. Unbilled portions of the remaining performance obligation are subject to future economic risks including bankruptcies, regulatory changes and other market factors. The Company excludes from the remaining performance obligation amounts related to performance obligations that are billed and recognized as they are delivered. The majority of the Company’s noncurrent remaining performance obligation is expected to be recognized in the next 13 to 36 months.

Remaining performance obligations consisted of the following (in thousands):


	December 31,
	2021		2020
Current	$	198,134	$	136,382
Noncurrent	125,534		87,395
Total	$	323,668	$	223,777

Deferred Commissions

Changes in deferred commissions were as follows (in thousands):


	Year Ended December 31,
	2021		2020		2019
Beginning balance	$	37,199	$	29,176	$	19,080
Plus: Additions to deferred commissions	34,340		22,161		22,375
Less: Recognition of deferred commissions	(19,474)		(14,238)		(12,279)
Plus: Foreign currency impacts on deferred commissions	(354)		100		—
Ending balance	$	51,711	$	37,199	$	29,176

- Definition

The entire disclosure of revenue from contract with customer to transfer good or service and to transfer nonfinancial asset. Includes, but is not limited to, disaggregation of revenue, credit loss recognized from contract with customer, judgment and change in judgment related to contract with customer, and asset recognized from cost incurred to obtain or fulfill contract with customer. Excludes insurance and lease contracts.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-URI http://asc.fasb.org/topic&trid=49130388

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-Name Accounting Standards Codification
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-Section 50
-Paragraph 10
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Reference 3: http://www.xbrl.org/2003/role/disclosureRef
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+ Details

Revenue, Deferred Revenue and Remaining Performance Obligations - Changes in Deferred Commissions (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Activity In Capitalized Contract Cost, Net [Roll Forward]
Beginning balance	$ 37,199	$ 29,176	$ 19,080
Plus: Additions to deferred commissions	34,340	22,161	22,375
Less: Recognition of deferred commissions	(19,474)	(14,238)	(12,279)
Plus: Foreign currency impacts on deferred commissions	(354)	100	0
Ending balance	$ 51,711	$ 37,199	$ 29,176

CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Statement of Comprehensive Income [Abstract]
Net loss	$ (11,845)	$ (2,430)	$ (124,323)
Other comprehensive (loss) income:
Net change in foreign currency translation adjustments	(1,052)	90	23
Other comprehensive (loss) income	(1,052)	90	23
Total comprehensive loss	$ (12,897)	$ (2,340)	$ (124,300)

- Definition

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

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+ Details

Stock Compensation (Tables)

12 Months Ended

Dec. 31, 2021

Share-based Payment Arrangement [Abstract]

Schedule of Valuation Assumptions for Stock Options

The Company records compensation expense for stock options based on the estimated fair value of the options on the date of grant using the Black-Scholes option-pricing model with the assumptions set forth in the table below.


	Year Ended December 31,
	2021		2020		2019
Expected term (years)	6.3		4.0 - 6.3		6.3
Expected stock price volatility	45.0	%	45.0% - 50.0%		40.0% - 45.0%
Risk-free interest rate	0.8	%	0.2% - 1.7%		1.4% - 2.5%
Dividend yield	—	%	—	%	—	%
Fair value of common stock	$19.82		$4.14 - $5.84		$1.07 - $4.07

Summary of Common Stock Option Activity

The following table summarizes the common stock option activity during the years ended December 31, 2021 and 2020:


	Number of Shares	Weighted-Average Exercise Price		Weighted-Average Grant Date Fair Value		Weighted-Average Remaining Contractual Term (years)	Aggregate Intrinsic Value (in thousands)
Outstanding as of December 31, 2019	10,364,520	$	1.47	$	0.71	8.1	$	18,952
Granted	5,060,720	$	4.93	$	2.22
Exercised	(328,600)	$	0.68				$	3,724
Forfeited or expired	(876,840)	$	1.92
Options outstanding at December 31, 2020	14,219,800	$	2.73	$	1.25	7.9	$	131,893
Granted	40,000	12.01		11.52
Exercised	(4,608,536)	1.78					90,492
Canceled, forfeited or expired	(546,515)	4.15
Options outstanding at December 31, 2021	9,104,749	$	3.18	$	1.51	6.9	$	123,605
Options vested and exercisable at December 31, 2021	6,050,749	$	2.51	$	1.17	8.2	$	21,378

Schedule of Restricted Stock Unit Activity

The following table summarizes the RSUs activity during the year ended December 31, 2021:


	Shares	Weighted-Average Grant-Date Fair Value per share
Outstanding as of December 31, 2020	—	$	—
Granted	3,468,858	$	19.61
Vested	(1,016,959)	$	16.70
Forfeited or expired	(18,218)	$	24.14
Outstanding as of December 31, 2021	2,433,681	$	20.80

Schedule of Valuation Assumptions for Employee Stock Purchase Plan

The fair value of the ESPP purchase right is estimated on the grant date using the Black-Scholes option-pricing model with the following assumptions:


			Year Ended December 31, 2021
Expected term (years)			0.5
Expected stock price volatility			60.9% - 71.0%
Risk-free interest rate			0.1% - 0.4%
Dividend yield			—%

Schedule of Stock-based Compensation Expense

The following table summarizes the components of stock compensation expense recognized in the consolidated statements of operations (in thousands):


	Year Ended December 31,
	2021		2020		2019
Cost of revenues	$	470	$	188	$	83
Sales and marketing	8,474		1,579		5,750
Technology and development	1,706		896		162
General and administrative	18,695		2,571		112,110
Total stock compensation expense	$	29,345	$	5,234	$	118,105

Intangible Assets and Goodwill - Intangible Assets (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020
Finite-Lived Intangible Assets, Net [Abstract]
Finite-Lived Intangible Assets, Accumulated Amortization	$ (3,093)	$ (2,061)
Finite-Lived Intangible Assets, Net Carrying Amount, Total	6,052
Intangible Assets, Net (Excluding Goodwill) [Abstract]
Intangible Assets, Gross (Excluding Goodwill), Total	11,085	5,046
Finite-Lived Intangible Assets, Accumulated Amortization	(3,093)	(2,061)
Intangible Assets, Net (Excluding Goodwill), Total	7,992	2,985
Trade name and other indefinite-lived intangibles
Indefinite-lived Intangible Assets [Line Items]
Indefinite-lived Intangible Assets	709	425
In-process patents and trademarks
Indefinite-lived Intangible Assets [Line Items]
Indefinite-lived Intangible Assets	$ 1,231	$ 873
Acquired content and customer relationships
Finite-Lived Intangible Assets [Line Items]
Weighted Average Amortization Period (in years)	4 years 6 months	3 years 8 months 12 days
Finite-Lived Intangible Assets, Net [Abstract]
Finite-Lived Intangible Assets, Gross Carrying Amount	$ 7,124	$ 2,268
Finite-Lived Intangible Assets, Accumulated Amortization	(2,762)	(1,859)
Finite-Lived Intangible Assets, Net Carrying Amount, Total	4,362	409
Intangible Assets, Net (Excluding Goodwill) [Abstract]
Finite-Lived Intangible Assets, Accumulated Amortization	$ (2,762)	$ (1,859)
Domain names
Finite-Lived Intangible Assets [Line Items]
Weighted Average Amortization Period (in years)	2 years 1 month 6 days	1 year 3 months 18 days
Finite-Lived Intangible Assets, Net [Abstract]
Finite-Lived Intangible Assets, Gross Carrying Amount	$ 260	$ 245
Finite-Lived Intangible Assets, Accumulated Amortization	(211)	(156)
Finite-Lived Intangible Assets, Net Carrying Amount, Total	49	89
Intangible Assets, Net (Excluding Goodwill) [Abstract]
Finite-Lived Intangible Assets, Accumulated Amortization	$ (211)	$ (156)
Patents
Finite-Lived Intangible Assets [Line Items]
Weighted Average Amortization Period (in years)	18 years 6 months	19 years 1 month 6 days
Finite-Lived Intangible Assets, Net [Abstract]
Finite-Lived Intangible Assets, Gross Carrying Amount	$ 1,761	$ 1,235
Finite-Lived Intangible Assets, Accumulated Amortization	(120)	(46)
Finite-Lived Intangible Assets, Net Carrying Amount, Total	1,641	1,189
Intangible Assets, Net (Excluding Goodwill) [Abstract]
Finite-Lived Intangible Assets, Accumulated Amortization	$ (120)	$ (46)

Business Combinations (Tables)

12 Months Ended

Dec. 31, 2021

Business Combination and Asset Acquisition [Abstract]

Schedule of Recognized Identified Assets Acquired and Liabilities Assumed

The following table summarizes the fair values of the assets acquired and liabilities assumed as of the acquisition date (in thousands):


Accounts receivable	$	1,391
Other assets acquired	4,171
Trade name	300
Acquired content	1,600
Customer relationships	3,300
Deferred revenue	(3,919)
Other liabilities acquired	(3,172)
Total identifiable net assets assumed	3,671
Goodwill	34,243
Total net asset value	$	37,914

The following table summarizes the fair values of the assets acquired and liabilities assumed as of the acquisition date (in thousands):


Cash	$	3,985
Deferred tax asset	938
Other assets	119
Acquired technology	11,900
Deferred tax liability	(3,010)
Other liabilities	(221)
Total identifiable net assets assumed	13,711
Goodwill	46,849
Total net asset value	$	60,560

Subsequent Events	12 Months Ended
Subsequent Events	Dec. 31, 2021
Subsequent Events [Abstract]
Subsequent Events	Subsequent EventsThe Company has evaluated subsequent events through the filing of this Annual Report on Form 10-K, and determined that there have been no events that have occurred that would require adjustments to our disclosures in the consolidated financial statements.

Revenue, Deferred Revenue and Remaining Performance Obligations - Changes in Deferred Revenue (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Activity In Contract With Customer, Liability [Roll Forward]
Beginning balance	$ 185,696	$ 138,990	$ 83,676
Plus: Additions to deferred revenue	326,376	221,671	175,636
Less: Recognition of revenue deferred in the prior year	(136,325)	(98,657)	(59,682)
Less: Recognition of revenue deferred in the current year	(109,973)	(76,308)	(60,640)
Ending balance	$ 265,774	$ 185,696	$ 138,990

Description of Business (Details)	Apr. 09, 2021
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Forward stock split ratio	40

Stock Compensation

12 Months Ended

Dec. 31, 2021

Share-based Payment Arrangement [Abstract]

Stock Compensation

2016 Equity Incentive Plan

Effective January 19, 2016, the Company established the KnowBe4, Inc. 2016 Equity Incentive Plan (the “2016 Incentive Plan”). The 2016 Incentive Plan authorizes the issuance of up to an aggregate of 37,728,000 shares of common stock in the form of stock options and other types of equity awards that may be granted to officers, employees, directors, consultants and advisors of the Company and its subsidiaries and affiliates. The Company has only granted stock options under the 2016 Incentive Plan. These options generally become vested within four years from the date of grant and expire ten years from the date of grant, with typical vesting of 25% on the first anniversary and monthly thereafter.

The Company (i) amended the 2016 Incentive Plan to clarify that, following the closing of the IPO, outstanding awards under the 2016 Incentive Plan would cover shares of the Company’s Class B common stock, and (ii) terminated the 2016 Incentive Plan; provided, however, that the 2016 Incentive Plan continues to govern the terms and conditions of outstanding awards under the 2016 Incentive Plan as of the time of its termination. As of December 31, 2021, a total of 9,104,749 shares of common stock have been reserved for issuance upon the exercise of stock options under the 2016 Incentive Plan.

2021 Equity Incentive Plan

Effective April 20, 2021, the Company adopted the 2021 Equity Incentive Plan (“2021 Incentive Plan”). The 2021 Incentive Plan authorizes the issuance of up to an aggregate of 18,400,000 shares of Class A common stock in the form of incentive stock options, nonstatutory stock options, restricted stock, restricted stock units, stock appreciation rights, performance units and performance shares to our employees, directors and consultants and any of our future subsidiary corporations’ employees and consultants. As of December 31, 2021, 18,262,924 shares were reserved for future issuance under the 2021 Incentive Plan.

Stock Options


	Year Ended December 31,
	2021		2020		2019
Expected term (years)	6.3		4.0 - 6.3		6.3
Expected stock price volatility	45.0	%	45.0% - 50.0%		40.0% - 45.0%
Risk-free interest rate	0.8	%	0.2% - 1.7%		1.4% - 2.5%
Dividend yield	—	%	—	%	—	%
Fair value of common stock	$19.82		$4.14 - $5.84		$1.07 - $4.07

The following table summarizes the common stock option activity during the years ended December 31, 2021 and 2020:


	Number of Shares	Weighted-Average Exercise Price		Weighted-Average Grant Date Fair Value		Weighted-Average Remaining Contractual Term (years)	Aggregate Intrinsic Value (in thousands)
Outstanding as of December 31, 2019	10,364,520	$	1.47	$	0.71	8.1	$	18,952
Granted	5,060,720	$	4.93	$	2.22
Exercised	(328,600)	$	0.68				$	3,724
Forfeited or expired	(876,840)	$	1.92
Options outstanding at December 31, 2020	14,219,800	$	2.73	$	1.25	7.9	$	131,893
Granted	40,000	12.01		11.52
Exercised	(4,608,536)	1.78