DoubleVerify (DV) 10-Q10 May 232023 Q1 Quarterly reportFinancial data

Company Profile

Document and Entity Information

Document and Entity Information - shares	3 Months Ended
Document and Entity Information - shares	Mar. 31, 2023	May 01, 2023
Document and Entity Information [Abstract]
Document Type	10-Q
Document Quarterly Report	true
Document Period End Date	Mar. 31, 2023
Document Transition Report	false
Entity File Number	001-40349
Entity Registrant Name	DoubleVerify Holdings, Inc.
Entity Incorporation, State or Country Code	DE
Entity Tax Identification Number	82-2714562
Entity Address, Address Line One	462 Broadway
Entity Address, City or Town	New York
Entity Address State Or Province	NY
Entity Address, Postal Zip Code	10013
City Area Code	212
Local Phone Number	631-2111
Title of 12(b) Security	Common Stock, par value $0.001 per share
Trading Symbol	DV
Security Exchange Name	NYSE
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Large Accelerated Filer
Entity Small Business	false
Entity Emerging Growth Company	false
Entity Shell Company	false
Entity Common Stock, Shares Outstanding		166,288,277
Entity Central Index Key	0001819928
Current Fiscal Year End Date	--12-31
Document Fiscal Year Focus	2023
Document Fiscal Period Focus	Q1
Amendment Flag	false

CONDENSED CONSOLIDATED BALANCE

CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	Mar. 31, 2023	Dec. 31, 2022
Current assets
Cash and cash equivalents	$ 285,738	$ 267,813
Trade receivables, net of allowances for doubtful accounts of $9,883 and $8,893 as of March 31, 2023 and December 31, 2022, respectively	174,262	167,122
Prepaid expenses and other current assets	16,695	10,161
Total current assets	476,695	445,096
Property, plant and equipment, net	48,842	47,034
Operating lease right-of-use assets, net	64,381	64,692
Goodwill	343,859	343,011
Intangible assets, net	129,352	135,429
Deferred tax assets	35	35
Other non-current assets	1,701	1,731
Total assets	1,064,865	1,037,028
Current liabilities
Trade payables	10,672	6,675
Accrued expenses	25,485	33,085
Operating lease liabilities, current	7,852	7,041
Income tax liabilities	22,801	11,953
Current portion of finance lease obligations	1,615	1,846
Other current liabilities	7,585	8,310
Total current liabilities	76,010	68,910
Operating lease liabilities, non-current	74,218	74,086
Finance lease obligations	497	779
Deferred tax liabilities	7,527	12,890
Other non-current liabilities	3,415	3,504
Total liabilities	161,667	160,169
Commitments and contingencies (Note 13)
Stockholders' equity
Common stock, $0.001 par value, 1,000,000 shares authorized, 166,157 shares issued and 166,131 outstanding as of March 31, 2023; 1,000,000 shares authorized, 165,448 shares issued and 165,417 outstanding as of December 31, 2022	166	165
Additional paid-in capital	769,142	756,299
Treasury stock, at cost, 26 shares and 31 shares as of March 31, 2023 and December 31, 2022, respectively	(669)	(796)
Retained earnings	139,692	127,517
Accumulated other comprehensive loss, net of income taxes	(5,133)	(6,326)
Total stockholders' equity	903,198	876,859
Total liabilities and stockholders' equity	$ 1,064,865	$ 1,037,028

CONDENSED CONSOLIDATED BALANC_2

CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) shares in Thousands, $ in Thousands	Mar. 31, 2023	Dec. 31, 2022
CONDENSED CONSOLIDATED BALANCE SHEETS
Trade receivables, net of allowances	$ 9,883	$ 8,893
Common stock, par value	$ 0.001	$ 0.001
Common stock, shares authorized	1,000,000	1,000,000
Common stock, shares issued	166,157	165,448
Common stock, shares outstanding	166,131	165,417
Treasury stock, shares	26	31

CONDENSED CONSOLIDATED STATEMEN

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME - USD ($) shares in Thousands, $ in Thousands	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME
Revenue	$ 122,594	$ 96,723
Cost of revenue (exclusive of depreciation and amortization shown separately below)	23,952	16,877
Product development	28,555	21,588
Sales, marketing and customer support	25,712	26,684
General and administrative	20,188	19,675
Depreciation and amortization	8,983	9,040
Income from operations	15,204	2,859
Interest expense	256	232
Other (income) expense, net	(2,734)	46
Income before income taxes	17,682	2,581
Income tax expense (benefit)	5,507	(1,998)
Net income	$ 12,175	$ 4,579
Earnings per share:
Basic	$ 0.07	$ 0.03
Diluted	$ 0.07	$ 0.03
Weighted-average common stock outstanding:
Basic	165,631	162,612
Diluted	171,657	170,439
Comprehensive income:
Net income	$ 12,175	$ 4,579
Other comprehensive income:
Foreign currency cumulative translation adjustment	1,193	(1,570)
Total comprehensive income	$ 13,368	$ 3,009

CONDENSED CONSOLIDATED STATEM_2

CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY - USD ($) shares in Thousands, $ in Thousands	Common Stock	Treasury Stock	Additional Paid-in Capital	Retained Earnings	Accumulated Other Comprehensive (Loss) Income Net of Income Taxes	Total
Balance at Dec. 31, 2021	$ 162	$ (1,802)	$ 717,228	$ 84,249	$ (771)	$ 799,066
Balance (in shares) at Dec. 31, 2021	162,347	50
Foreign currency translation adjustment					(1,570)	(1,570)
Shares repurchased for settlement of employee tax withholdings		$ (1,058)				(1,058)
Shares repurchased for settlement of employee tax withholdings (in shares)		41
Stock-based compensation expense			10,994			10,994
Common stock issued to non-employees (in shares)	4
Common stock issued upon exercise of stock options	$ 1		1,677			1,678
Common stock issued upon exercise of stock options (in shares)	572
Common stock issued upon vesting of restricted stock units (in shares)	195
Net Income				4,579		4,579
Balance at Mar. 31, 2022	$ 163	$ (2,860)	729,899	88,828	(2,341)	813,689
Balance (in shares) at Mar. 31, 2022	163,118	91
Balance at Dec. 31, 2022	$ 165	$ (796)	756,299	127,517	(6,326)	876,859
Balance (in shares) at Dec. 31, 2022	165,448	31
Foreign currency translation adjustment					1,193	1,193
Shares repurchased for settlement of employee tax withholdings		$ (787)				(787)
Shares repurchased for settlement of employee tax withholdings (in shares)		30
Stock-based compensation expense			11,992			11,992
Common stock issued upon exercise of stock options	$ 1		1,765			$ 1,766
Common stock issued upon exercise of stock options (in shares)	527					544
Common stock issued upon vesting of restricted stock units (in shares)	182
Treasury stock reissued upon settlement of equity awards		$ 914	(914)
Treasury stock reissued upon settlement of equity awards (in shares)		(35)
Net Income				12,175		$ 12,175
Balance at Mar. 31, 2023	$ 166	$ (669)	$ 769,142	$ 139,692	$ (5,133)	$ 903,198
Balance (in shares) at Mar. 31, 2023	166,157	26

CONDENSED CONSOLIDATED STATEM_3

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Operating activities:
Net income	$ 12,175	$ 4,579
Adjustments to reconcile net income to net cash provided by (used in) operating activities
Bad debt expense	1,285	1,079
Depreciation and amortization expense	8,983	9,040
Amortization of debt issuance costs	74	74
Non-cash lease expense	1,658	2,002
Deferred taxes	(5,382)	(2,016)
Stock-based compensation expense	11,813	10,994
Interest income		(14)
Loss on disposal of fixed assets		471
Other	(2)	(150)
Changes in operating assets and liabilities
Trade receivables	(8,052)	(12,224)
Prepaid expenses and other assets	(6,874)	(2,332)
Trade payables	3,700	2
Accrued expenses and other liabilities	2,048	(13,754)
Net cash provided by (used in) operating activities	21,426	(2,249)
Investing activities:
Purchase of property, plant and equipment	(4,099)	(4,759)
Net cash (used in) investing activities	(4,099)	(4,759)
Financing activities:
Proceeds from revolving credit facility	50,000
Payments to revolving credit facility	(50,000)
Payment of contingent consideration related to Zentrick acquisition		(3,247)
Proceeds from common stock issued upon exercise of stock options	1,766	1,678
Payments related to offering costs		(6)
Finance lease payments	(513)	(480)
Shares repurchased for settlement of employee tax withholdings	(787)	(1,058)
Net cash provided by (used in) financing activities	466	(3,113)
Effect of exchange rate changes on cash and cash equivalents and restricted cash	131	131
Net increase (decrease) in cash, cash equivalents, and restricted cash	17,924	(9,990)
Cash, cash equivalents, and restricted cash - Beginning of period	267,938	221,725
Cash, cash equivalents, and restricted cash - End of period	285,862	211,735
Supplemental cash flow information:
Cash paid for taxes	1,708	948
Cash paid for interest	266	244
Non-cash investing and financing activities:
Right-of-use assets obtained in exchange for new operating Right-of-use assets obtained in exchange for new operating lease liabilities, net of impairments and tenant improvement allowances	1,415	$ 79,563
Capital assets financed by accounts payable and accrued expenses	378
Stock-based compensation included in capitalized software development costs	$ 179

CONDENSED CONSOLIDATED STATEM_4

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - Reconciliation of Cashflows - USD ($) $ in Thousands	Mar. 31, 2023	Mar. 31, 2022
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
Cash and cash equivalents	$ 285,738	$ 211,600
Restricted cash (included in prepaid expenses and other current assets on the Condensed Consolidated Balance Sheets)	124	135
Total cash and cash equivalents and restricted cash	$ 285,862	$ 211,735

Description of Business

Description of Business	3 Months Ended
Description of Business	Mar. 31, 2023
Description of Business
Description of Business	1. Description of Business DoubleVerify Holdings, Inc. (the “Company”) is a leading software platform for digital media measurement and analytics. Our mission is to create stronger, safer, more secure digital transactions that drive optimal outcomes for global advertisers. Through our software platform and the metrics it provides, we help preserve the fair value exchange between buyers and sellers of digital media. The Company’s solutions provide advertisers unbiased data analytics that enable advertisers to increase the effectiveness, quality and return on their digital advertising investments. The DV Authentic Ad is our proprietary metric of digital media quality, which measures whether a digital ad was delivered in a brand suitable environment, fully viewable, by a real person and in the intended geography. The Company’s software interface, DV Pinnacle, delivers these metrics to our customers in real time, allowing them to access critical performance data on their digital transactions. The Company’s software solutions are integrated across the entire digital advertising ecosystem, including programmatic platforms, social media channels and digital publishers. The Company’s solutions are accredited by the Media Rating Council, which allows the Company’s data to be used as a single source standard in the evaluation and measurement of digital ads. The Company was incorporated on August 16, 2017, is registered in the state of Delaware and is the parent company of DoubleVerify Midco, Inc. (“MidCo”), which is in turn the parent company of DoubleVerify Inc. On August 18, 2017, DoubleVerify Inc. entered into an agreement and plan of merger (the “Agreement”), whereby the Company and Pixel Merger Sub, Inc. (“Merger Sub”), a wholly-owned subsidiary of the Company, agreed to provide for the merger of the Merger Sub with DoubleVerify Inc. pursuant to the terms and conditions of the Agreement. On the effective date, Merger Sub was merged with and into DoubleVerify Inc. whereupon the separate corporate existence of Merger Sub ceased and DoubleVerify Inc. continued as the surviving corporation. Through the merger, the Company acquired 100% of the outstanding equity instruments of DoubleVerify Inc., (the “Acquisition”) resulting in a change of control at the parent level. The merger resulted in the application of acquisition accounting under the provisions of Financial Accounting Standards Board (“FASB”) Topic Accounting Standards Codification (“ASC”) 805 , “Business Combinations.” The Company is headquartered in New York, New York and has wholly-owned subsidiaries in numerous jurisdictions including Israel, the United Kingdom, the United Arab Emirates, Germany, Singapore, Australia, Canada, Brazil, Belgium, Mexico, France, Japan, Spain, Finland, and India, and operates in one reportable segment.

Basis of Presentation and Summa

Basis of Presentation and Summary of Significant Accounting Policies	3 Months Ended
	Mar. 31, 2023
Basis of Presentation and Summary of Significant Accounting Policies
Basis of Presentation and Summary of Significant Accounting Policies	2. Basis of Presentation and Summary of Significant Accounting Policies Basis of Preparation and Principles of Consolidation The accompanying Condensed Consolidated Balance Sheets as of March 31, 2023 and December 31, 2022, the Condensed Consolidated Statements of Operations and Comprehensive Income for the three months ended March 31, 2023 and 2022, the Condensed Consolidated Statements of Stockholders’ Equity for the three months ended March 31, 2023 and 2022, and the Condensed Consolidated Statements of Cash Flows for the three months ended March 31, 2023 and 2022 reflect all adjustments that are of a normal recurring nature and that are considered necessary for a fair presentation of the results for the periods shown in accordance with accounting principles generally accepted in the United States of America (“GAAP”) and the applicable rules and regulations of the SEC for interim financial reporting periods. Accordingly, certain information and footnote disclosures have been condensed or omitted pursuant to SEC rules that would ordinarily be required under GAAP for complete financial statements. These unaudited interim Condensed Consolidated Financial Statements should be read in conjunction with the Company’s audited consolidated financial statements and related notes included in its Annual Report on Form 10-K for the year ended December 31, 2022. Use of Estimates and Judgments in the Preparation of the Condensed Consolidated Financial Statements The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and the reported amounts of revenue and expense during the reporting periods. Significant estimates and judgments are inherent in the analysis and measurement of items including, but not limited to: revenue recognition criteria including the determination of principal versus agent revenue considerations, income taxes, the valuation and recoverability of goodwill and intangible assets, the assessment of potential loss from contingencies, assumptions in valuing acquired assets and liabilities assumed in business combinations, the allowance for doubtful accounts, and assumptions used in determining the fair value of stock-based compensation. Management bases its estimates and assumptions on historical experience and on various other factors that are believed to be reasonable under the circumstances. Due to the inherent uncertainty involved in making estimates, actual results reported in future periods may be affected by changes in those estimates. These estimates are based on the information available as of the date of the Condensed Consolidated Financial Statements .

Revenue

Revenue	3 Months Ended
Revenue	Mar. 31, 2023
Revenue
Revenue	3. Revenue The following table disaggregates revenue between advertiser customers, where revenue is generated based on number of ads measured for Measurement or measured and purchased for Activation, and Supply-side customers, where revenue is generated based on contracts with minimum guarantees or contracts that contain overages after minimum guarantees are achieved. Disaggregated revenue by customer type is as follows: Three Months Ended March 31, ( in thousands) 2023 2022 Activation $ 69,892 $ 53,031 Measurement 41,385 33,834 Supply-side customer 11,317 9,858 Total revenue $ 122,594 $ 96,723 Contract assets relate to the Company’s conditional right to consideration for completed performance under the contract (e.g., unbilled receivables). Trade receivables, net of allowance for doubtful accounts, include unbilled receivable balances of $48.8 million and $52.7 million as of March 31, 2023 and December 31, 2022, respectively.

Goodwill and Intangible Assets

Goodwill and Intangible Assets	3 Months Ended
Goodwill and Intangible Assets	Mar. 31, 2023
Goodwill and Intangible Assets
Goodwill and Intangible Assets	4. The following is a summary of changes to the goodwill carrying value from December 31, 2022 to March 31, 2023: (in thousands) Goodwill at December 31, 2022 $ 343,011 Foreign exchange impact 848 Goodwill at March 31, 2023 $ 343,859 The following table summarizes the Company’s intangible assets and related accumulated amortization: ( in thousands) March 31, 2023 December 31, 2022 Gross Carrying Accumulated Net Carrying Gross Carrying Accumulated Net Carrying Amount Amortization Amount Amount Amortization Amount Trademarks and brands $ 11,734 $ (4,506) $ 7,228 $ 11,733 $ (4,294) $ 7,439 Customer relationships 145,949 (52,789) 93,160 145,834 (49,587) 96,247 Developed technology 76,827 (47,876) 28,951 76,677 (44,956) 31,721 Non-compete agreements 65 (52) 13 64 (42) 22 Total intangible assets $ 234,575 $ (105,223) $ 129,352 $ 234,308 $ (98,879) $ 135,429 Amortization expense related to intangible assets for the three months ended March 31, 2023 and March 31, 2022 is $6.2 million and $6.3 million, respectively. Estimated future expected amortization expense of intangible assets as of March 31, 2023 is as follows: (in thousands) 2023 (for remaining nine months) $ 18,606 2024 23,314 2025 21,182 2026 16,084 2027 13,874 2028 13,453 Thereafter 22,839 Total $ 129,352 The weighted-average remaining useful life by major asset classes as of March 31, 2023 is as follows: (In years) Trademarks and brands 9 Customer relationships 7 Developed technology 3 Non-compete agreements 1 There were no impairments identified during the three months ended March 31, 2023 or March 31, 2022.

Property, Plant and Equipment

Property, Plant and Equipment	3 Months Ended
Property, Plant and Equipment	Mar. 31, 2023
Property, Plant and Equipment
Property, Plant and Equipment	5. Property, plant and equipment, including equipment under finance lease obligations and capitalized software development costs, consists of the following: As of (in thousands) March 31, 2023 December 31, 2022 Computers and peripheral equipment $ 19,264 $ 19,189 Office furniture and equipment 2,544 2,542 Leasehold improvements 31,492 29,678 Capitalized software development costs 24,579 22,026 Less accumulated depreciation and amortization (29,037) (26,401) Total property, plant and equipment, net $ 48,842 $ 47,034 For each of the three months ended March 31, 2023 and March 31, 2022, total depreciation expense was $2.7 million. Property and equipment under finance lease obligations, consisting of computer equipment, totaled $12.3 million as of March 31, 2023 and December 31, 2022, respectively. As of March 31, 2023 and December 31, 2022, accumulated depreciation related to property and equipment under finance lease obligations totaled $11.4 million and $11.2 million, respectively. Refer to Note 6, Leases.

Leases

Leases	3 Months Ended
Leases	Mar. 31, 2023
Leases
Leases	6. Leases The following table presents lease cost and cash paid for amounts included in the measurement of lease liabilities for finance and operating leases for the three months ended March 31, 2023 and 2022, respectively. Three Months Ended March 31, (in thousands) 2023 2022 Lease cost: Operating lease cost (1) $ 2,587 $ 2,878 Finance lease cost Depreciation of finance lease assets (2) 217 372 Interest on finance lease liabilities (3) 23 42 Short-term lease cost (1) 246 251 Sublease income (1) (267) — Total lease cost $ 2,806 $ 3,543 Other information: Cash paid for amounts included in the measurement of lease liabilities Operating cash outflows from operating leases $ 1,336 $ 1,180 Operating cash outflows from finance leases $ 23 $ 35 Financing cash outflows from finance leases $ 513 $ 480 (1) Included in Cost of revenue, Sales, marketing and customer support, Product development and General and administrative expenses in the accompanying Condensed Consolidated Statements of Operations and Comprehensive Income. (2) Included in Depreciation and amortization in the accompanying Condensed Consolidated Statements of Operations and Comprehensive Income. (3) Included in Interest expense in the accompanying Condensed Consolidated Statements of Operations and Comprehensive Income. The following table presents weighted-average remaining lease terms and weighted-average discount rates for finance and operating leases as of March 31, 2023 and 2022, respectively: March 31, 2023 2022 Weighted-average remaining lease term - operating leases (in years) 13.9 14.7 Weighted-average remaining lease term - finance leases (in years) 1.4 2.2 Weighted-average discount rate - operating leases 4.5% 4.4% Weighted-average discount rate - finance leases 3.7% 3.7% Maturities of lease liabilities as of March 31, 2023 are as follows: March 31, 2023 (in thousands) Operating Leases Finance Leases 2023 (for remaining nine months) $ 5,861 $ 1,401 2024 8,160 598 2025 7,538 168 2026 6,783 — 2027 6,660 — 2028 6,751 — Thereafter 74,037 — Total lease payments 115,790 2,167 Less amount representing interest (33,720) (55) Present value of total lease payments $ 82,070 $ 2,112

Fair Value Measurement

Fair Value Measurement	3 Months Ended
Fair Value Measurement	Mar. 31, 2023
Fair Value Measurement
Fair Value Measurement	7. Fair Value Measurement As of March 31, 2023, the Company did not have any financial instruments measured at fair value. The following table presents the Company’s financial instruments that are measured at fair value on a recurring basis: As of December 31, 2022 Quoted Market Prices in Active Significant (in thousands) Markets for Significant Other Unobservable Identical Assets Observable Inputs Inputs Tota1 Fair Value (Level 1) (Level 2) (Level 3) Measurements Assets: Cash equivalents $ 11,710 $ — $ — $ 11,710 Cash equivalents consisting of money market funds of $11.7 million as of December 31, 2022, were classified as Level 1 of the fair value hierarchy and valued using quoted market prices in active markets.

Long-term Debt

Long-term Debt	3 Months Ended
Long-term Debt	Mar. 31, 2023
Long-term Debt.
Long-term Debt	8. Long-term Debt On October 1, 2020, DoubleVerify Inc., as borrower (the “Borrower”), and MidCo, as guarantor, entered into an amendment and restatement agreement with the banks and other financial institutions party thereto, as lenders, and Capital One, National Association, as administrative agent, letter of credit issuer and swing lender, and others, to (i) amend and restate the Company’s prior credit agreement, as amended and restated on October 1, 2020 (the “Credit Agreement”) and (ii) replace the Company’s prior credit facilities with a new senior secured revolving credit facility (the “New Revolving Credit Facility”) in an aggregate principal amount of $150.0 million (with a letter of credit facility of up to $15.0 million as a sublimit). Subject to certain terms and conditions, the Borrower is entitled to request additional term loan facilities or increases in the revolving credit commitments under the New Revolving Credit Facility. The New Revolving Credit Facility is payable in quarterly installments for interest, with the principal balance due in full at maturity on October 1, 2025. Additional fees paid quarterly include fees for the unused revolving facility and unused letter of credit. The commitment fee on any unused balance is payable periodically and may range from 0.25% to 0.40% based upon the Borrower’s total net leverage ratio calculated in accordance with the Credit Agreement. On March 29, 2023, the Company entered into an amendment to the New Revolving Credit Facility to replace the LIBOR based interest rate with a Secured Overnight Financing Rate (“SOFR”) based interest rate . The New Revolving Credit Facility contains a number of significant negative covenants. Subject to certain exceptions, these covenants require the Borrower to comply with certain requirements and restrictions on its ability to, among other things: incur indebtedness; create liens; engage in mergers or consolidations; make investments, loans and advances; pay dividends or other distributions and repurchase capital stock; sell assets; engage in certain transactions with affiliates; enter into sale and leaseback transactions; and make certain accounting changes. As a result of these restrictions, substantially all of the net assets of the Borrower are restricted from distribution to the Company or any holders of its equity. The New Revolving Credit Facility has a first priority lien on substantially all of the assets of MidCo, the Borrower and Ad-Juster, the Company’s indirect subsidiary. The New Revolving Credit Facility requires the Borrower to remain in compliance with a maximum total net leverage ratio and a minimum fixed charge coverage ratio, each as defined in the Credit Agreement. As of March 31, 2023, the maximum total net leverage ratio and minimum fixed charge coverage ratio is 3.5x and 1.25x, respectively. The Borrower was in compliance with all covenants under the New Revolving Credit Facility as of March 31, 2023. During the three months ended March 31, 2023, the Company borrowed and repaid $50.0 million on the New Revolving Credit Facility. As of March 31, 2023

Income Tax

Income Tax	3 Months Ended
Income Tax	Mar. 31, 2023
Income Tax
Income Tax	9. Income Tax The Company’s quarterly income tax provision is calculated using an estimated annual effective income tax rate ("ETR") based on actual historical information and forward-looking estimates. The Company’s estimated annual ETR may fluctuate due to changes in forecasted annual pre-tax income, changes in the jurisdictional mix of forecasted pre-tax income, and changes to actual or forecasted permanent book to tax differences (e.g., non-deductible expenses). In addition, the Company’s ETR for a particular reporting period may fluctuate as the result of changes to the valuation allowance for net deferred tax assets, the impact of anticipated tax settlements with federal, state, or foreign tax authorities, or the impact of tax law changes. The Company identifies items that are unusual and non-recurring in nature and treats these as discrete events. The tax effect of these discrete events is booked entirely in the quarter in which they occur. During the three months ended March 31, 2023, the Company recorded an income tax provision of $5.5 million, resulting in an effective tax rate of 31.1%, which includes an annualized effective tax provision of $31.1 million (representing an effective tax rate of 32.9%) and discrete items relating primarily to non-cash compensation (representing an effective tax rate of (0.4%)). During the three months ended March 31, 2022, the Company recorded an income tax benefit of $2.0 million, resulting in an effective tax rate of (77.4%). These effective tax rates differ from the U.S. federal statutory rate primarily due to the effects of various permanent book-to-tax adjustments, foreign tax rate differences, U.S. tax on foreign operations, and U.S. state/local taxes. A valuation allowance has been established against a small amount of foreign capital losses and certain U.S. tax loss carryforwards. All other net deferred tax assets have been determined to be more likely than not realizable. The Company regularly reviews its deferred tax assets for recoverability and would establish a valuation allowance if it believed that such assets may not be recovered, taking into consideration historical operating results, expectations of future earnings, changes in its operations, and the expected timing of the reversals of existing temporary differences. The Company accounts for uncertainty in income taxes utilizing ASC 740-10, “Income Taxes.” ASC 740-10 clarifies whether or not to recognize assets or liabilities for tax positions taken that may be challenged by a tax authority. It prescribes a recognition threshold and measurement attribute for financial statement disclosure of tax positions taken or expected to be taken. This interpretation also provides guidance on derecognition, classification, interest and penalties, accounting in interim periods, and disclosures. The application of ASC 740-10 requires judgment related to the uncertainty in income taxes and could impact the Company’s effective tax rate.

Earnings Per Share

Earnings Per Share	3 Months Ended
Earnings Per Share	Mar. 31, 2023
Earnings Per Share
Earnings Per Share	10. Earnings Per Share The following table reconciles the numerators and denominators used in computations of the basic and diluted EPS for the three months ended March 31, 2023 and March 31, 2022: Three Months Ended March 31, 2023 2022 Numerator: Net Income (basic and diluted) $ 12,175 $ 4,579 Denominator: Weighted-average common shares outstanding 165,631 162,612 Dilutive effect of share-based awards 6,026 7,827 Weighted-average dilutive shares outstanding 171,657 170,439 Basic earnings per share $ 0.07 $ 0.03 Diluted earnings per share $ 0.07 $ 0.03 Approximately 7.1 million and 4.9 million weighted average shares issuable under stock-based awards were not included in the diluted EPS calculation in the three months ended March 31, 2023 and March 31, 2022, respectively, because they were antidilutive.

Stock-Based Compensation

Stock-Based Compensation	3 Months Ended
Stock-Based Compensation	Mar. 31, 2023
Stock-Based Compensation
Stock-Based Compensation	11. Stock-Based Compensation Employee Equity Incentive Plan On September 20, 2017, the Company established its 2017 Omnibus Equity Incentive Program (the “2017 Plan”) which provides for the granting of equity-based awards to certain employees, directors, independent contractors, consultants and agents. Under the 2017 Plan, the Company may grant non-qualified stock options, stock appreciation rights, restricted stock units, and other stock-based awards. On April 19, 2021 the Company established its 2021 Omnibus Equity Incentive Plan (“2021 Equity Plan”). The 2021 Equity Plan provides for the grant of stock options (including qualified incentive stock options and nonqualified stock options), stock appreciation rights, restricted stock, restricted stock units, dividend equivalents, and other stock or cash settled incentive awards. Options become exercisable subject to vesting schedules up to four years from the date of the grant and subject to certain timing restrictions upon an employee’s separation of service and no later than 10 years after the grant date. Restricted stock units are subject to vesting schedules up to four years from the date of the grant and subject to certain restrictions upon employee separation. A summary of stock option activity as of and for the three months ended March 31, 2023 is as follows: Stock Option Weighted Average Remaining Number of Weighted Average Contractual Life Aggregate Options Exercise Price (Years) Intrinsic Value Outstanding as of December 31, 2022 11,861 $ 13.43 7.17 $ 129,323 Options granted 789 24.72 Options exercised (544) 3.20 Options forfeited (41) 27.75 Outstanding as of March 31, 2023 12,065 $ 14.58 7.20 $ 194,352 Options expected to vest as of March 31, 2023 4,477 $ 22.98 8.68 $ 35,705 Options exercisable as of March 31, 2023 7,232 $ 8.82 6.18 $ 156,941 Stock options include grants to executives that contain both market-based and performance-based vesting conditions. There were no stock options granted that contain both market-based and performance-based vesting conditions during the three months ended March 31, 2023. During the three months ended March 31, 2023, 11 stock options were exercised and 2,015 market-based and performance-based stock options remain outstanding as of March 31, 2023. The weighted average grant date fair value of options granted during the three months ended March 31, 2023 and March 31, 2022 was $12.21 and $12.77, respectively. The total intrinsic value of options exercised during the three months ended March 31, 2023 and March 31, 2022 was $12.8 million and $12.1 million, respectively. The fair market value of each option granted during the three months ended March 31, 2023 has been estimated on the grant date using the Black-Scholes-Merton option-pricing model with the following assumptions: 2023 Risk - free interest rate (percentage) 3.6 Expected term (years) 6.1 Expected dividend yield (percentage) — Expected volatility (percentage) 46.5 The Company’s board of directors (the “Board”) did not declare or pay dividends on any Company stock during the three months ended March 31, 2023 and March 31, 2022. A summary of restricted stock unit activity as of and for the three months ended March 31, 2023 is as follows: Restricted Stock Units Number of Weighted Average Shares Grant Date Fair Value Outstanding as of December 31, 2022 3,154 $ 27.07 Granted 1,988 24.90 Vested (218) 26.94 Forfeited (56) 28.94 Outstanding as of March 31, 2023 4,868 $ 26.17 The total grant date fair value of restricted stock units that vested during the three months ended March 31, 2023 was $5.9 million. As of March 31, 2023, unrecognized stock-based compensation expense was $146.2 million, which is expected to be recognized over a weighted-average period of 1.6 years. Total stock-based compensation expense recorded in the Condensed Consolidated Statements of Operations and Comprehensive Income as follows: Three Months Ended March 31, (in thousands) 2023 2022 Product development $ 4,379 $ 3,366 Sales, marketing and customer support 3,507 3,829 General and administrative 3,927 3,799 Total stock-based compensation $ 11,813 $ 10,994 Employee Stock Purchase Plan In March 2021, the Board approved the Company’s 2021 Employee Stock Purchase Plan (“ESPP”), and employees became eligible to enroll in August 2021. Purchases are accomplished through participation in discrete offering periods. The ESPP is available to U.S.-based employees and was expanded to most of the Company’s non-U.S.-based employees in 2022. The current offering period began on December 1, 2022 and will end on May 31, 2023. The Company expects the program to continue consecutively for six-month offering periods for the foreseeable future. Under the ESPP, eligible employees are able to acquire shares of the Company’s common stock by accumulating funds through payroll deductions. The purchase price for shares of common stock purchased under the ESPP is 85% of the lesser of the fair market value of the common stock on (i) the first trading day of the applicable offering period and (ii) the last trading day of the applicable offering period. Employees are required to hold shares purchased for minimum of six months following the purchase date. Stock-based compensation expense for the ESPP is recognized on a straight-line basis over the requisite service period of each award. Stock-based compensation expense related to the ESPP totaled $0.2 million and $0.1 million for the three months ended March 31, 2023 and March 31, 2022, respectively.

Supplemental Financial Statemen

Supplemental Financial Statement Information	3 Months Ended
Supplemental Financial Statement Information	Mar. 31, 2023
Supplemental Financial Statement Information
Supplemental Financial Statement Information	12. Supplemental Financial Statement Information Accrued Expenses Accrued expenses as of March 31, 2023 and December 31, 2022 were as follows: As of (in thousands) March 31, 2023 December 31, 2022 Vendor payments $ 5,175 $ 4,824 Employee commissions and bonuses 10,006 17,718 Payroll and other employee related expense 7,581 7,024 401k and pension expense 451 2,144 Other taxes 2,272 1,375 Total accrued expenses $ 25,485 $ 33,085 Other (Income) Expense, Net Other (income) expense, net primarily consists of interest income and the impact of foreign currency transaction gains and losses associated with monetary assets and liabilities. For the three months ended March 31, 2023, Other (income) expense, net was $2.7 million, primarily consisting of interest income earned on interest-bearing monetary assets. For the three months ended March 31, 2022, Other (income) expense, net was less than $0.1 million, primarily related to losses from changes in foreign exchange rates.

Commitments and Contingencies

Commitments and Contingencies	3 Months Ended
Commitments and Contingencies	Mar. 31, 2023
Commitments and Contingencies.
Commitments and Contingencies	13. Commitments and Contingencies Contingencies Litigation From time to time, the Company is subject to various legal proceedings and claims, either asserted or unasserted, that arise in the ordinary course of business. The Company records liabilities for contingencies including legal costs when it is probable that a liability has been incurred and when the amount can be reasonably estimated. Legal costs are expensed as incurred. Although the outcome of the various legal proceedings and claims cannot be predicted with certainty, management does not believe that any of these proceedings or other claims will have a material effect on the Company’s business, financial condition, results of operations or cash flows.

Segment Information

Segment Information	3 Months Ended
Segment Information	Mar. 31, 2023
Segment Information
Segment Information	14. Segment Information The Company has determined that it operates as one operating and reportable

Subsequent Events

Subsequent Events	3 Months Ended
Subsequent Events	Mar. 31, 2023
Subsequent Events
Subsequent Events	15. Subsequent Events On May 1, 2023, the Company approved 54 stock options and 156 restricted stock units under the 2021 Equity Plan.

Basis of Presentation and Sum_2

Basis of Presentation and Summary of Significant Accounting Policies (Policies)	3 Months Ended
	Mar. 31, 2023
Basis of Presentation and Summary of Significant Accounting Policies
Basis of Preparation and Principles of Consolidation	Basis of Preparation and Principles of Consolidation The accompanying Condensed Consolidated Balance Sheets as of March 31, 2023 and December 31, 2022, the Condensed Consolidated Statements of Operations and Comprehensive Income for the three months ended March 31, 2023 and 2022, the Condensed Consolidated Statements of Stockholders’ Equity for the three months ended March 31, 2023 and 2022, and the Condensed Consolidated Statements of Cash Flows for the three months ended March 31, 2023 and 2022 reflect all adjustments that are of a normal recurring nature and that are considered necessary for a fair presentation of the results for the periods shown in accordance with accounting principles generally accepted in the United States of America (“GAAP”) and the applicable rules and regulations of the SEC for interim financial reporting periods. Accordingly, certain information and footnote disclosures have been condensed or omitted pursuant to SEC rules that would ordinarily be required under GAAP for complete financial statements. These unaudited interim Condensed Consolidated Financial Statements should be read in conjunction with the Company’s audited consolidated financial statements and related notes included in its Annual Report on Form 10-K for the year ended December 31, 2022.
Use of Estimates and Judgments in the Preparation of the Condensed Consolidated Financial Statements	Use of Estimates and Judgments in the Preparation of the Condensed Consolidated Financial Statements The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and the reported amounts of revenue and expense during the reporting periods. Significant estimates and judgments are inherent in the analysis and measurement of items including, but not limited to: revenue recognition criteria including the determination of principal versus agent revenue considerations, income taxes, the valuation and recoverability of goodwill and intangible assets, the assessment of potential loss from contingencies, assumptions in valuing acquired assets and liabilities assumed in business combinations, the allowance for doubtful accounts, and assumptions used in determining the fair value of stock-based compensation. Management bases its estimates and assumptions on historical experience and on various other factors that are believed to be reasonable under the circumstances. Due to the inherent uncertainty involved in making estimates, actual results reported in future periods may be affected by changes in those estimates. These estimates are based on the information available as of the date of the Condensed Consolidated Financial Statements .

Revenue (Tables)

Revenue (Tables)	3 Months Ended
Revenue (Tables)	Mar. 31, 2023
Revenue
Schedule of disaggregated revenue	Three Months Ended March 31, ( in thousands) 2023 2022 Activation $ 69,892 $ 53,031 Measurement 41,385 33,834 Supply-side customer 11,317 9,858 Total revenue $ 122,594 $ 96,723

Goodwill and Intangible Assets

Goodwill and Intangible Assets (Tables)	3 Months Ended
Goodwill and Intangible Assets (Tables)	Mar. 31, 2023
Goodwill and Intangible Assets
Summary of changes to the goodwill carrying value	(in thousands) Goodwill at December 31, 2022 $ 343,011 Foreign exchange impact 848 Goodwill at March 31, 2023 $ 343,859
Schedule of intangible assets and related accumulated amortization	( in thousands) March 31, 2023 December 31, 2022 Gross Carrying Accumulated Net Carrying Gross Carrying Accumulated Net Carrying Amount Amortization Amount Amount Amortization Amount Trademarks and brands $ 11,734 $ (4,506) $ 7,228 $ 11,733 $ (4,294) $ 7,439 Customer relationships 145,949 (52,789) 93,160 145,834 (49,587) 96,247 Developed technology 76,827 (47,876) 28,951 76,677 (44,956) 31,721 Non-compete agreements 65 (52) 13 64 (42) 22 Total intangible assets $ 234,575 $ (105,223) $ 129,352 $ 234,308 $ (98,879) $ 135,429 (In years) Trademarks and brands 9 Customer relationships 7 Developed technology 3 Non-compete agreements 1
Schedule of Estimated future expected amortization expense of intangible assets	(in thousands) 2023 (for remaining nine months) $ 18,606 2024 23,314 2025 21,182 2026 16,084 2027 13,874 2028 13,453 Thereafter 22,839 Total $ 129,352

Property, Plant and Equipment (

Property, Plant and Equipment (Tables)	3 Months Ended
Property, Plant and Equipment (Tables)	Mar. 31, 2023
Property, Plant and Equipment
Schedule of Property, Plant and Equipment	As of (in thousands) March 31, 2023 December 31, 2022 Computers and peripheral equipment $ 19,264 $ 19,189 Office furniture and equipment 2,544 2,542 Leasehold improvements 31,492 29,678 Capitalized software development costs 24,579 22,026 Less accumulated depreciation and amortization (29,037) (26,401) Total property, plant and equipment, net $ 48,842 $ 47,034

Leases (Tables)

Leases (Tables)	3 Months Ended
Leases (Tables)	Mar. 31, 2023
Leases
Schedule of lease cost and other information about leases	Three Months Ended March 31, (in thousands) 2023 2022 Lease cost: Operating lease cost (1) $ 2,587 $ 2,878 Finance lease cost Depreciation of finance lease assets (2) 217 372 Interest on finance lease liabilities (3) 23 42 Short-term lease cost (1) 246 251 Sublease income (1) (267) — Total lease cost $ 2,806 $ 3,543 Other information: Cash paid for amounts included in the measurement of lease liabilities Operating cash outflows from operating leases $ 1,336 $ 1,180 Operating cash outflows from finance leases $ 23 $ 35 Financing cash outflows from finance leases $ 513 $ 480 (1) Included in Cost of revenue, Sales, marketing and customer support, Product development and General and administrative expenses in the accompanying Condensed Consolidated Statements of Operations and Comprehensive Income. (2) Included in Depreciation and amortization in the accompanying Condensed Consolidated Statements of Operations and Comprehensive Income. (3) Included in Interest expense in the accompanying Condensed Consolidated Statements of Operations and Comprehensive Income.
Schedule of weighted-average remaining lease terms and discount rates	The following table presents weighted-average remaining lease terms and weighted-average discount rates for finance and operating leases as of March 31, 2023 and 2022, respectively: March 31, 2023 2022 Weighted-average remaining lease term - operating leases (in years) 13.9 14.7 Weighted-average remaining lease term - finance leases (in years) 1.4 2.2 Weighted-average discount rate - operating leases 4.5% 4.4% Weighted-average discount rate - finance leases 3.7% 3.7%
Schedule of the future operating lease commitment under agreement	Maturities of lease liabilities as of March 31, 2023 are as follows: March 31, 2023 (in thousands) Operating Leases Finance Leases 2023 (for remaining nine months) $ 5,861 $ 1,401 2024 8,160 598 2025 7,538 168 2026 6,783 — 2027 6,660 — 2028 6,751 — Thereafter 74,037 — Total lease payments 115,790 2,167 Less amount representing interest (33,720) (55) Present value of total lease payments $ 82,070 $ 2,112
Schedule of maturities of finance lease liabilities	March 31, 2023 (in thousands) Operating Leases Finance Leases 2023 (for remaining nine months) $ 5,861 $ 1,401 2024 8,160 598 2025 7,538 168 2026 6,783 — 2027 6,660 — 2028 6,751 — Thereafter 74,037 — Total lease payments 115,790 2,167 Less amount representing interest (33,720) (55) Present value of total lease payments $ 82,070 $ 2,112

Fair Value Measurement (Tables)

Fair Value Measurement (Tables)	3 Months Ended
Fair Value Measurement (Tables)	Mar. 31, 2023
Fair Value Measurement
Schedule of financial instruments measured at fair value on recurring basis	As of December 31, 2022 Quoted Market Prices in Active Significant (in thousands) Markets for Significant Other Unobservable Identical Assets Observable Inputs Inputs Tota1 Fair Value (Level 1) (Level 2) (Level 3) Measurements Assets: Cash equivalents $ 11,710 $ — $ — $ 11,710

Earnings Per Share (Tables)

Earnings Per Share (Tables)	3 Months Ended
Earnings Per Share (Tables)	Mar. 31, 2023
Earnings Per Share
Schedule of computations of the basic and diluted EPS	Three Months Ended March 31, 2023 2022 Numerator: Net Income (basic and diluted) $ 12,175 $ 4,579 Denominator: Weighted-average common shares outstanding 165,631 162,612 Dilutive effect of share-based awards 6,026 7,827 Weighted-average dilutive shares outstanding 171,657 170,439 Basic earnings per share $ 0.07 $ 0.03 Diluted earnings per share $ 0.07 $ 0.03

Stock-Based Compensation (Table

Stock-Based Compensation (Tables)	3 Months Ended
Stock-Based Compensation (Tables)	Mar. 31, 2023
Stock-Based Compensation
Schedule of stock option activity	Stock Option Weighted Average Remaining Number of Weighted Average Contractual Life Aggregate Options Exercise Price (Years) Intrinsic Value Outstanding as of December 31, 2022 11,861 $ 13.43 7.17 $ 129,323 Options granted 789 24.72 Options exercised (544) 3.20 Options forfeited (41) 27.75 Outstanding as of March 31, 2023 12,065 $ 14.58 7.20 $ 194,352 Options expected to vest as of March 31, 2023 4,477 $ 22.98 8.68 $ 35,705 Options exercisable as of March 31, 2023 7,232 $ 8.82 6.18 $ 156,941
Schedule of Black-Scholes-Merton option-pricing model	2023 Risk - free interest rate (percentage) 3.6 Expected term (years) 6.1 Expected dividend yield (percentage) — Expected volatility (percentage) 46.5
Schedule of restricted stock activity	Restricted Stock Units Number of Weighted Average Shares Grant Date Fair Value Outstanding as of December 31, 2022 3,154 $ 27.07 Granted 1,988 24.90 Vested (218) 26.94 Forfeited (56) 28.94 Outstanding as of March 31, 2023 4,868 $ 26.17
Schedule of stock-based compensation expense	Three Months Ended March 31, (in thousands) 2023 2022 Product development $ 4,379 $ 3,366 Sales, marketing and customer support 3,507 3,829 General and administrative 3,927 3,799 Total stock-based compensation $ 11,813 $ 10,994

Supplemental Financial Statem_2

Supplemental Financial Statement Information (Tables)	3 Months Ended
Supplemental Financial Statement Information (Tables)	Mar. 31, 2023
Commitments and Contingencies.
Schedule of accrued expenses	As of (in thousands) March 31, 2023 December 31, 2022 Vendor payments $ 5,175 $ 4,824 Employee commissions and bonuses 10,006 17,718 Payroll and other employee related expense 7,581 7,024 401k and pension expense 451 2,144 Other taxes 2,272 1,375 Total accrued expenses $ 25,485 $ 33,085

Description of Business (Detail

Description of Business (Details) - segment	3 Months Ended
Description of Business (Details) - segment	Mar. 31, 2023	Aug. 18, 2017
Business Combinations
Number of reportable segments	1
DoubleVerify Inc.
Business Combinations
Ownership percentage acquired		100%

Revenue (Details)

Revenue (Details) - USD ($) $ in Thousands	3 Months Ended
Revenue (Details) - USD ($) $ in Thousands	Mar. 31, 2023	Mar. 31, 2022	Dec. 31, 2022
Disaggregation of revenue
Total revenue	$ 122,594	$ 96,723
Unbilled receivable	48,800		$ 52,700
Activation
Disaggregation of revenue
Total revenue	41,385	33,834
Measurement
Disaggregation of revenue
Total revenue	69,892	53,031
Supply-side customer
Disaggregation of revenue
Total revenue	$ 11,317	$ 9,858

Goodwill and Intangible Asset_2

Goodwill and Intangible Assets - Goodwill (Details) $ in Thousands	3 Months Ended
	Mar. 31, 2023 USD ($)
Changes to the goodwill carrying value
Goodwill at Beginning	$ 343,011
Foreign exchange impact	848
Goodwill at Ending	$ 343,859

Goodwill and Intangible Asset_3

Goodwill and Intangible Assets - Summary of Company's intangible assets (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022	Dec. 31, 2022
Finite-Lived Intangible Assets [Line Items]
Gross Carrying Amount	$ 234,575		$ 234,308
Accumulated Amortization	(105,223)		(98,879)
Total	129,352		135,429
Amortization expense	6,200	$ 6,300
Trademarks and brands
Finite-Lived Intangible Assets [Line Items]
Gross Carrying Amount	11,734		11,733
Accumulated Amortization	(4,506)		(4,294)
Total	7,228		7,439
Customer relationships
Finite-Lived Intangible Assets [Line Items]
Gross Carrying Amount	145,949		145,834
Accumulated Amortization	(52,789)		(49,587)
Total	93,160		96,247
Developed technology
Finite-Lived Intangible Assets [Line Items]
Gross Carrying Amount	76,827		76,677
Accumulated Amortization	(47,876)		(44,956)
Total	28,951		31,721
Non-compete agreements
Finite-Lived Intangible Assets [Line Items]
Gross Carrying Amount	65		64
Accumulated Amortization	(52)		(42)
Total	$ 13		$ 22

Goodwill and Intangible Asset_4

Goodwill and Intangible Assets - Estimated future expected amortization expense (Details) - USD ($) $ in Thousands	Mar. 31, 2023	Dec. 31, 2022
Finite-Lived Intangible Assets, Net, Amortization Expense, Fiscal Year Maturity [Abstract]
2023 (for remaining nine months)	$ 18,606
2024	23,314
2025	21,182
2026	16,084
2027	13,874
2028	13,453
Thereafter	22,839
Total	$ 129,352	$ 135,429

Goodwill and Intangible Asset_5

Goodwill and Intangible Assets - Weighted-average remaining useful life (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Finite-Lived Intangible Assets [Line Items]
Impairment of intangible assets	$ 0	$ 0
Trademarks and brands
Finite-Lived Intangible Assets [Line Items]
Remaining useful life	9 years
Customer relationships
Finite-Lived Intangible Assets [Line Items]
Remaining useful life	7 years
Developed technology
Finite-Lived Intangible Assets [Line Items]
Remaining useful life	3 years
Non-compete agreements
Finite-Lived Intangible Assets [Line Items]
Remaining useful life	1 year

Property, Plant and Equipment_2

Property, Plant and Equipment (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022	Dec. 31, 2022
Property, Plant and Equipment [Line Items]
Less accumulated depreciation and amortization	$ (29,037)		$ (26,401)
Total property, plant and equipment, net	48,842		47,034
Depreciation expense	2,700	$ 2,700
Computers and Peripheral Equipment
Property, Plant and Equipment [Line Items]
Property, plant and equipment gross	19,264		19,189
Finance lease assets	12,300		12,300
Finance lease assets, accumulated depreciation	11,400		11,200
Office Furniture and Equipment
Property, Plant and Equipment [Line Items]
Property, plant and equipment gross	2,544		2,542
Leasehold Improvements
Property, Plant and Equipment [Line Items]
Property, plant and equipment gross	31,492		29,678
Capitalized software development costs
Property, Plant and Equipment [Line Items]
Property, plant and equipment gross	$ 24,579		$ 22,026

Leases - Leases Cost (Details)

Leases - Leases Cost (Details) - USD ($) $ in Thousands	3 Months Ended
Leases - Leases Cost (Details) - USD ($) $ in Thousands	Mar. 31, 2023	Mar. 31, 2022
Lease cost:
Operating lease cost (1)	$ 2,587	$ 2,878
Finance lease cost
Depreciation of finance lease assets (2)	217	372
Interest on finance lease liabilities (3)	23	42
Short-term lease cost (1)	246	251
Sublease income (1)	(267)
Total lease cost	2,806	3,543
Cash paid for amounts included in the measurement of lease liabilities
Operating cash outflows from operating leases	1,336	1,180
Operating cash outflows from finance leases	23	35
Financing cash outflows from finance leases	$ 513	$ 480

Leases - Weighted-average remai

Leases - Weighted-average remaining lease terms and discount rates (Details)	Mar. 31, 2023	Mar. 31, 2022
Leases
Weighted-average remaining lease term - operating leases (in years)	13 years 10 months 24 days	14 years 8 months 12 days
Weighted-average remaining lease term - finance leases (in years)	1 year 4 months 24 days	2 years 2 months 12 days
Weighted-average discount rate - operating leases	4.50%	4.40%
Weighted-average discount rate - finance leases	3.70%	3.70%

Leases - Maturities of Operatin

Leases - Maturities of Operating Lease Liabilities (Details) $ in Thousands	Mar. 31, 2023 USD ($)
Maturities of operating lease liabilities
2023 (for remaining nine months)	$ 5,861
2024	8,160
2025	7,538
2026	6,783
2027	6,660
2028	6,751
Thereafter	74,037
Total lease payments	115,790
Less amount representing interest	(33,720)
Present value of total lease payments	$ 82,070

Leases - Maturities of Finance

Leases - Maturities of Finance Lease Liabilities (Details) $ in Thousands	Mar. 31, 2023 USD ($)
Maturities of finance lease liabilities
2023 (for remaining nine months)	$ 1,401
2024	598
2025	168
Total lease payments	2,167
Less amount representing interest	(55)
Present value of total lease payments	$ 2,112

Fair Value Measurement - Fair v

Fair Value Measurement - Fair value on a recurring basis (Details) - Recurring $ in Thousands	Dec. 31, 2022 USD ($)
Assets:
Cash equivalents	$ 11,710
Level 1
Assets:
Cash equivalents	$ 11,710

Fair Value Measurement - Narrat

Fair Value Measurement - Narrative (Details) $ in Millions	Dec. 31, 2022 USD ($)
Level 1 \| Money market funds and time deposits
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Cash equivalents	$ 11.7

Long-term Debt (Details)

Long-term Debt (Details) $ in Thousands				3 Months Ended
Long-term Debt (Details) $ in Thousands	Mar. 30, 2023	Mar. 29, 2023	Oct. 01, 2020 USD ($)	Mar. 31, 2023 USD ($)	Dec. 31, 2022 USD ($)
Debt Instrument [Line Items]
Maximum total net leverage ratio				3.5
Minimum fixed charge coverage ratio				1.25
Payments to revolving credit facility				$ 50,000
Proceeds from revolving credit facility				50,000
Minimum
Debt Instrument [Line Items]
Percentage of commitment fee payable periodically			0.25%
Maximum
Debt Instrument [Line Items]
Percentage of commitment fee payable periodically			0.40%
Letter of Credit
Debt Instrument [Line Items]
Maximum borrowing capacity			$ 15,000
New Revolving Credit Facility
Debt Instrument [Line Items]
Aggregate principal amount			$ 150,000
Outstanding amount				0	$ 0
Payments to revolving credit facility				50,000
Proceeds from revolving credit facility				$ 50,000
New Revolving Credit Facility \| SOFR
Debt Instrument [Line Items]
Spread rate		1%
New Revolving Credit Facility \| Alternate Base Rate
Debt Instrument [Line Items]
Spread rate	2%

Income Tax (Details)

Income Tax (Details) - USD ($) $ in Thousands	3 Months Ended
Income Tax (Details) - USD ($) $ in Thousands	Mar. 31, 2023	Mar. 31, 2022
Income Tax
Income tax provision (benefit)	$ 5,507	$ (1,998)
Effective tax rate	31.10%	(77.40%)
Annualized effective tax provision	$ 31,100
Annualized effective tax rate	32.90%
Non-cash compensation, effective tax rate	(0.40%)

Earnings Per Share (Details)

Earnings Per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Numerator:
Net Income	$ 12,175	$ 4,579
Denominator:
Weighted-average common shares outstanding	165,631	162,612
Dilutive effect of share-based awards	6,026	7,827
Weighted-average dilutive shares outstanding	171,657	170,439
Basic earnings per share	$ 0.07	$ 0.03
Diluted earnings per share	$ 0.07	$ 0.03
Weighted average shares issuable under stock-based awards, excluded from diluted EPS calculation	7,100	4,900

Stock-Based Compensation (Detai

Stock-Based Compensation (Details)	3 Months Ended
Stock-Based Compensation (Details)	Mar. 31, 2023
Equity Incentive Program
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Term of award	10 years
Stock options
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting period	4 years
Restricted Stock Units (RSUs)
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting period	4 years

Stock-Based Compensation - Stoc

Stock-Based Compensation - Stock option activity (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended	12 Months Ended
	Mar. 31, 2023	Dec. 31, 2022
Number of Options
Outstanding beginning balance	11,861
Options granted	789
Options exercised	(544)
Options forfeited	(41)
Outstanding Ending balance	12,065	11,861
Options expected to vest	4,477
Options exercisable	7,232
Weighted Average Exercise Price
Outstanding beginning balance (in dollars per share)	$ 13.43
Options granted (in dollars per share)	24.72
Options exercised (in dollars per share)	3.20
Options forfeited (in dollars per share)	27.75
Outstanding ending balance (in dollars per share)	14.58	$ 13.43
Options expected to vest (in dollars per share)	22.98
Options exercisable (in dollars per share)	$ 8.82
Additional disclosures
Weighted Average Remaining Contractual Life (Years)	7 years 2 months 12 days	7 years 2 months 1 day
Options expected to vest (in years)	8 years 8 months 4 days
Options exercisable (Years)	6 years 2 months 4 days
Aggregate Intrinsic Value, outstanding (Beginning balance)	$ 129,323
Aggregate Intrinsic Value, outstanding (ending balance)	194,352	$ 129,323
Aggregate Intrinsic Value, expected to vest	35,705
Aggregate Intrinsic Value, exercisable	$ 156,941

Stock-Based Compensation - Addi

Stock-Based Compensation - Additional information (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Millions	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Outstanding Ending balance	12,065
Weighted average grant date fair value (in dollars per share)	$ 12.21	$ 12.77
Intrinsic value	$ 12.8	$ 12.1
Options exercised	544
Performance and Market Based Options
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Granted	0
Outstanding Ending balance	2,015
Options exercised	11
Restricted Stock Units (RSUs)
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Granted	1,988
Vested	218
Vested, Fair value	$ 5.9
Granted, Weighted average grant date fair value	$ 24.90
Unrecognized stock-based compensation expense	$ 146.2
Weighted-average period over which unrecognized stock-based compensation expense are expected to be recognized	1 year 7 months 6 days

Stock-Based Compensation - Blac

Stock-Based Compensation - Black-Scholes-Merton option-pricing model (Details)	3 Months Ended
	Mar. 31, 2023
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions and Methodology [Abstract]
Risk - free interest rate (percentage)	3.60%
Expected term (years)	6 years 1 month 6 days
Expected volatility (percentage)	46.50%

Stock-Based Compensation - Rest

Stock-Based Compensation - Restricted stock award activity (Details) - Restricted Stock Units (RSUs) shares in Thousands	3 Months Ended
	Mar. 31, 2023 $ / shares shares
Number of Shares
Outstanding beginning balance \| shares	3,154
Granted \| shares	1,988
Vested \| shares	(218)
Forfeited \| shares	(56)
Outstanding ending balance \| shares	4,868
Weighted Average Grant Date Fair Value
Outstanding beginning balance (in dollars per share) \| $ / shares	$ 27.07
Granted (in dollars per share) \| $ / shares	24.90
Vested (in dollars per share) \| $ / shares	26.94
Forfeited (in dollars per share) \| $ / shares	28.94
Outstanding ending balance (in dollars per share) \| $ / shares	$ 26.17

Stock-Based Compensation - St_2

Stock-Based Compensation - Stock-based compensation expense (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Share-based payment arrangements information
Total stock-based compensation	$ 11,813	$ 10,994
Product development
Share-based payment arrangements information
Total stock-based compensation	4,379	3,366
Sales, marketing and customer support
Share-based payment arrangements information
Total stock-based compensation	3,507	3,829
General and administrative
Share-based payment arrangements information
Total stock-based compensation	$ 3,927	$ 3,799

Stock-Based Compensation - Empl

Stock-Based Compensation - Employee stock purchase plan (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock-based compensation expense	$ 11,813	$ 10,994
Maximum \| 2021 Employee Stock Purchase Plan
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock-based compensation expense	$ 200	$ 100

Supplemental Financial Statem_3

Supplemental Financial Statement Information (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022	Dec. 31, 2022
Accrued Liabilities, Current [Abstract]
Vendor payments	$ 5,175		$ 4,824
Employee commissions and bonuses	10,006		17,718
Payroll and other employee related expense	7,581		7,024
401k and pension expense	451		2,144
Other taxes	2,272		1,375
Total accrued expense	25,485		$ 33,085
Other (income) expense, net	$ 2,700
Maximum
Accrued Liabilities, Current [Abstract]
Losses from changes in foreign exchange rates		$ (100)

Segment Information (Details)

Segment Information (Details)	3 Months Ended
Segment Information (Details)	Mar. 31, 2023 segment
Segment Information
Number of operating segments	1
Number of reportable segments	1

Subsequent Events (Details)

Subsequent Events (Details) - shares shares in Thousands		3 Months Ended
Subsequent Events (Details) - shares shares in Thousands	May 01, 2023	Mar. 31, 2023
Subsequent Event [Line Items]
Options granted		789
Restricted Stock Units (RSUs)
Subsequent Event [Line Items]
Granted		1,988
Subsequent Event \| 2021 Omnibus Equity Incentive Plan \| Stock options
Subsequent Event [Line Items]
Options granted	54
Subsequent Event \| 2021 Omnibus Equity Incentive Plan \| Restricted Stock Units (RSUs)
Subsequent Event [Line Items]
Granted	156