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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
__________________
FORM 10-Q
__________________
Quarterly Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
For the Quarterly Period Ended June 30, 2021
or
Transition Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
For the transition period from _____ to _____
Commission file number 001-38600
__________________
TENABLE HOLDINGS, INC.
(Exact name of registrant as specified in its charter)
__________________
Delaware 47-5580846
(State or other jurisdiction of incorporation or organization) (I.R.S. Employer Identification Number)
6100 Merriweather Drive, Columbia, Maryland 21044
(Address of principal executive offices, including zip code)
(410) 872-0555
(Registrant’s telephone number, including area code)
__________________
Securities registered pursuant to Section 12(b) of the Act:
Title of each classTrading Symbol(s)Name of each exchange on which registered
Common Stock, par value $0.01 per shareTENBThe Nasdaq Stock Market LLC
Indicate by check mark whether the Registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the Registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.    Yes         No     
Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).    Yes       No 
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company” and "emerging growth company" in Rule 12b-2 of the Exchange Act.
Large accelerated filer Accelerated filer
Non-accelerated filer  
Emerging growth company Smaller reporting company
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.
Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).    Yes         No   
The number of shares of the Registrant's common stock outstanding as of July 26, 2021 was 106,578,737.



TENABLE HOLDINGS, INC.
TABLE OF CONTENTS
Page
 

2

Table of Contents
PART I. FINANCIAL INFORMATION
Item 1.        Financial Statements
TENABLE HOLDINGS, INC.
CONSOLIDATED BALANCE SHEETS
June 30, 2021December 31, 2020
(in thousands, except per share data)(unaudited)
Assets
Current assets:
Cash and cash equivalents$135,927 $178,223 
Short-term investments
125,111 113,623 
Accounts receivable (net of allowance for doubtful accounts of $240 and $261 at June 30, 2021 and December 31, 2020, respectively)
100,483 115,342 
Deferred commissions32,686 32,143 
Prepaid expenses and other current assets42,255 44,462 
Total current assets 436,462 483,793 
Property and equipment, net 37,407 38,920 
Deferred commissions (net of current portion)45,811 46,733 
Operating lease right-of-use assets37,299 39,426 
Acquired intangible assets, net42,610 13,193 
Goodwill126,705 54,414 
Other assets 18,473 14,110 
Total assets $744,767 $690,589 
Liabilities and Stockholders’ Equity
Current liabilities:
Accounts payable and accrued expenses$11,992 $5,731 
Accrued compensation35,901 35,509 
Deferred revenue334,106 328,819 
Operating lease liabilities5,355 3,815 
Other current liabilities274 1,028 
Total current liabilities 387,628 374,902 
Deferred revenue (net of current portion) 110,768 105,691 
Operating lease liabilities (net of current portion)52,028 54,529 
Other liabilities 8,888 4,802 
Total liabilities 559,312 539,924 
Stockholders’ equity:
Common stock (par value: $0.01; 500,000 shares authorized; 106,510 and 103,715 shares issued and outstanding at June 30, 2021 and December 31, 2020, respectively)
1,065 1,037 
Additional paid-in capital811,644 757,470 
Accumulated other comprehensive (loss) income(16)10 
Accumulated deficit(627,238)(607,852)
Total stockholders’ equity185,455 150,665 
Total liabilities and stockholders’ equity$744,767 $690,589 
The accompanying notes are an integral part of these consolidated financial statements.
3

Table of Contents
TENABLE HOLDINGS, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)
Three Months Ended June 30,Six Months Ended June 30,
(in thousands, except per share data)2021202020212020
Revenue$130,259 $107,209 $253,448 $209,857 
Cost of revenue26,425 19,142 48,498 37,843 
Gross profit103,834 88,067 204,950 172,014 
Operating expenses:
Sales and marketing65,678 55,443 124,313 115,298 
Research and development28,201 25,310 55,039 52,141 
General and administrative21,836 17,879 43,281 36,812 
Total operating expenses115,715 98,632 222,633 204,251 
Loss from operations(11,881)(10,565)(17,683)(32,237)
Interest (expense) income, net(42)455 (70)1,189 
Other expense, net(471)(298)(537)(1,258)
Loss before income taxes(12,394)(10,408)(18,290)(32,306)
(Benefit) provision for income taxes(756)1,552 1,096 2,631 
Net loss$(11,638)$(11,960)$(19,386)$(34,937)
Net loss per share, basic and diluted
$(0.11)$(0.12)$(0.18)$(0.35)
Weighted-average shares used to compute net loss per share, basic and diluted
105,869 100,209 105,203 99,532 
The accompanying notes are an integral part of these consolidated financial statements.
4

Table of Contents
TENABLE HOLDINGS, INC.
CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS
(Unaudited)
Three Months Ended June 30,Six Months Ended June 30,
(in thousands)2021202020212020
Net loss$(11,638)$(11,960)$(19,386)$(34,937)
Other comprehensive (loss) income, net of tax:
Unrealized (losses) gains on available-for-sale securities(24)(14)(26)99 
Other comprehensive (loss) income(24)(14)(26)99 
Comprehensive loss$(11,662)$(11,974)$(19,412)$(34,838)
The accompanying notes are an integral part of these consolidated financial statements.

5

Table of Contents
TENABLE HOLDINGS, INC.
CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY
(Unaudited)
Additional
Paid-in
Capital
Accumulated
Other
Comprehensive
Income (Loss)
Total
Stockholders’
Equity
Common StockAccumulated Deficit
(in thousands)SharesAmount
Balance at March 31, 2021
105,513 $1,055 $786,476 $8 $(615,600)$171,939 
Exercise of stock options
605 6 4,683 — — 4,689 
Vesting of restricted stock units392 4 (4)— —  
Stock-based compensation— — 20,489 — — 20,489 
Other comprehensive loss— — — (24)— (24)
Net loss— — — — (11,638)(11,638)
Balance at June 30, 2021106,510 $1,065 $811,644 $(16)$(627,238)$185,455 
Balance at December 31, 2020103,715 $1,037 $757,470 $10 $(607,852)$150,665 
Exercise of stock options1,212 12 8,692 — — 8,704 
Vesting of restricted stock units1,184 12 (12)— —  
Issuance of common stock under employee stock purchase plan399 4 8,042 — — 8,046 
Stock-based compensation— — 37,452 — — 37,452 
Other comprehensive loss— — — (26)— (26)
Net loss— — — — (19,386)(19,386)
Balance at June 30, 2021106,510 $1,065 $811,644 $(16)$(627,238)$185,455 
Balance at March 31, 2020
100,003 $1,000 $687,311 $163 $(588,098)$100,376 
Exercise of stock options
959 10 6,986 — — 6,996 
Vesting of restricted stock units165 1 (1)— —  
Stock-based compensation— — 15,770 — — 15,770 
Other comprehensive loss— — — (14)— (14)
Net loss— — — — (11,960)(11,960)
Balance at June 30, 2020101,127 $1,011 $710,066 $149 $(600,058)$111,168 
Balance at December 31, 201998,587 $986 $662,990 $50 $(565,121)$98,905 
Exercise of stock options1,594 16 10,958 — — 10,974 
Vesting of restricted stock units568 5 (5)— —  
Issuance of common stock under employee stock purchase plan378 4 7,303 — — 7,307 
Stock-based compensation— — 28,820 — — 28,820 
Other comprehensive income— — — 99 — 99 
Net loss— — — — (34,937)(34,937)
Balance at June 30, 2020101,127 $1,011 $710,066 $149 $(600,058)$111,168 
The accompanying notes are an integral part of these consolidated financial statements.
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TENABLE HOLDINGS, INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)
Six Months Ended June 30,
(in thousands)20212020
Cash flows from operating activities:
Net loss$(19,386)$(34,937)
Adjustments to reconcile net loss to net cash provided by operating activities:
Depreciation and amortization6,807 5,268 
Stock-based compensation37,421 28,701 
Other(268)606 
Changes in operating assets and liabilities:
Accounts receivable18,985 13,512 
Prepaid expenses and other assets5,077 7,173 
Accounts payable, accrued expenses and accrued compensation985 (8,297)
Deferred revenue6,665 2,182 
Other current and noncurrent liabilities(1,126)7,283 
Net cash provided by operating activities55,160 21,491 
Cash flows from investing activities:
Purchases of property and equipment(2,595)(11,004)
Purchases of short-term investments(87,624)(91,908)
Sales and maturities of short-term investments76,000 124,675 
Business combination, net of cash acquired(98,489) 
Net cash (used in) provided by investing activities(112,708)21,763 
Cash flows from financing activities:
Proceeds from loan agreement 2,000 
Proceeds from stock issued in connection with the employee stock purchase plan8,046 7,307 
Proceeds from the exercise of stock options8,704 10,974 
Other financing activities(5)(8)
Net cash provided by financing activities16,745 20,273 
Effect of exchange rate changes on cash and cash equivalents and restricted cash(1,463)(1,463)
Net (decrease) increase in cash and cash equivalents and restricted cash(42,266)62,064 
Cash and cash equivalents and restricted cash at beginning of period178,463 74,665 
Cash and cash equivalents and restricted cash at end of period$136,197 $136,729 
Supplemental disclosure of cash flow information:
Cash paid for interest$150 $16 
Cash paid for income taxes, net of refunds3,553 2,728 
Supplemental cash flow information related to leases:
Cash payments for operating leases
$2,555 $2,595 
The accompanying notes are an integral part of these consolidated financial statements.
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TENABLE HOLDINGS, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(Unaudited)
1. Business and Summary of Significant Accounting Policies
Business Description
Tenable Holdings, Inc. (the “Company,” “we,” "us," or “our”) is a provider of Cyber Exposure solutions, which is a discipline for managing, measuring and comparing cybersecurity risk in the digital era. Our platform offerings provide broad visibility into security issues such as vulnerabilities, misconfigurations, internal and regulatory compliance violations and other indicators of the state of an organization’s security across IT infrastructure and applications, cloud environments and industrial internet of things and operational technology environments.
Basis of Presentation
The accompanying consolidated financial statements include the accounts of Tenable Holdings, Inc. and our wholly owned subsidiaries. All intercompany accounts and transactions have been eliminated in consolidation.
The consolidated financial statements have been prepared in conformity with United States generally accepted accounting principles (“GAAP”) for interim financial information. The consolidated statements are unaudited and should be read in conjunction with the consolidated financial statements and related notes included in our 2020 Annual Report on Form 10-K ("10-K") filed with the Securities and Exchange Commission on February 23, 2021. The consolidated financial statements have been prepared on a basis consistent with the audited annual consolidated financial statements included in the 10-K and, in the opinion of management, include all adjustments of a normal recurring nature necessary to fairly state our financial position, our results of operations, and cash flows.
The results for the six months ended June 30, 2021 are not necessarily indicative of the operating results expected for the year ending December 31, 2021 or any other future period.
Use of Estimates
The preparation of consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the amounts reported in the consolidated financial statements and accompanying notes. These estimates include, but are not limited to, the determination of the estimated economic life of perpetual licenses for revenue recognition, the estimated period of benefit for deferred commissions, the useful lives of long-lived assets, the fair value of acquired intangible assets and deferred revenue, the valuation of stock-based compensation, including the estimated underlying fair value of our common stock prior to our IPO, the incremental borrowing rate for operating leases, and the valuation of deferred tax assets. We base these estimates on historical experience and on various other assumptions that we believe to be reasonable. Actual results could differ significantly from these estimates.
Significant Accounting Policies
Our significant accounting policies are described in our 10-K. During the six months ended June 30, 2021, there were no material changes to our significant accounting policies other than those described below.
Revenue Recognition
Subscription Revenue
Subscription arrangements generally have annual or multi-year contractual terms and allow customers to use our software or cloud solutions. For our software subscriptions that are dependent on ongoing software updates and the ability to identify the latest cybersecurity vulnerabilities, revenue is recognized ratably over the subscription term given the critical utility provided by the ongoing updates that are released through the contract period. For our software where the critical utility does not depend on ongoing updates, we separate the software license from the maintenance and support. We
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recognize revenue attributable to the license at the time of delivery and the revenue attributable to the maintenance and support ratably over the contract period.

Investments
We classify investments with original maturities of less than 90 days as cash and cash equivalents. Investments with original maturities greater than 90 days, including those we do not currently intend on selling within the next twelve months, are classified as short-term investments as they are available for use in our operations.
Recently Adopted Accounting Pronouncements
We adopted Accounting Standards Update ("ASU") No. 2019-12 - Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes, effective January 1, 2021. The adoption of this guidance did not have a material impact on our condensed consolidated financial statements. This ASU eliminated previously allowed exceptions and clarified existing guidance in the accounting for income taxes, including in the areas of franchise taxes, the tax basis of goodwill and interim period effects of changes in tax laws.
2. Revenue
Disaggregation of Revenue
The following table presents a summary of revenue:
Three Months Ended June 30,Six Months Ended June 30,
(in thousands)2021202020212020
Subscription revenue$114,167 $92,010 $221,569 $178,400 
Perpetual license and maintenance revenue12,567 12,179 24,972 25,598 
Professional services and other revenue3,525 3,020 6,907 5,859 
Revenue$130,259 $107,209 $253,448 $209,857 
Concentrations
We sell and market our products and services through our field sales force that works closely with our channel partners, which includes a network of distributors and resellers, in developing sales opportunities. We use a two-tiered channel model whereby we sell our products and services to our distributors, which in turn sell to resellers, which then sell to end-users. We derived 92% of revenue through our channel network in the three and six months ended June 30, 2021 and 91% of revenue in the three and six months ended June 30, 2020. One of our distributors accounted for 40% of revenue in the three and six months ended June 30, 2021 and 43% of revenue in the three and six months ended June 30, 2020. That same distributor accounted for 37% and 41% of accounts receivable at June 30, 2021 and December 31, 2020, respectively.
Contract Balances
We generally bill our customers in advance and accounts receivable are recorded when we have the right to invoice the customer. Contract liabilities consist of deferred revenue and include customer billings and payments received in advance of performance under the contract. In the three months ended June 30, 2021 and 2020 and the six months ended June 30, 2021 and 2020, we recognized revenue of $119.0 million, $99.5 million, $210.5 million and $175.0 million, respectively, that was included in the deferred revenue balance at the beginning of each of the respective periods.
Remaining Performance Obligations
At June 30, 2021, the future estimated revenue related to unsatisfied performance obligations was $461.6 million, of which approximately 75% is expected to be recognized as revenue over the succeeding twelve months, and the remainder is expected to be recognized over the four years thereafter.
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Deferred Commissions
The following summarizes the activity of deferred incremental costs of obtaining a contract:
Three Months Ended June 30,Six Months Ended June 30,
(in thousands)2021202020212020
Beginning balance$77,300 $70,742 $78,876 $72,265 
Capitalization of contract acquisition costs10,222 8,892 17,446 15,013 
Amortization of deferred contract acquisition costs(9,025)(7,866)(17,825)(15,510)
Ending balance$78,497 $71,768 $78,497 $71,768 
3. Cash Equivalents and Short-Term Investments
The following tables summarize the amortized cost, unrealized gain and loss and estimated fair value of cash equivalents and short-term investments:

June 30, 2021
(in thousands)Amortized CostUnrealized GainUnrealized LossEstimated Fair Value
Cash equivalents
Money market funds$47,682 $— $— $47,682 
Total cash equivalents$47,682 $— $— $47,682 
Short-term investments
Commercial paper$79,725 $ $ $79,725 
Corporate bonds12,682 1 (1)12,682 
Supranational bonds13,198  (11)13,187 
U.S. Treasury and agency obligations19,522 2 (7)19,517 
Total short-term investments$125,127 $3 $(19)$125,111 
December 31, 2020
(in thousands)Amortized CostUnrealized GainUnrealized LossEstimated Fair Value
Cash equivalents
Money market funds$44,153 $— $— $44,153 
Commercial paper4,500 — — 4,500 
Total cash equivalents$48,653 $— $— $48,653 
Short-term investments
Commercial paper$71,425 $ $ $71,425 
Corporate bonds4,502 3  4,505 
U.S. Treasury and agency obligations37,686 7  37,693 
Total short-term investments$113,613 $10 $ $113,623 
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The contractual maturities of our short-term investments are as follows:
June 30, 2021
(in thousands)Amortized CostEstimated Fair Value
Due within one year$102,583 $102,584 
Due between one and two years22,544 22,527 
Total short-term investments$125,127 $125,111 
At June 30, 2021, cash and cash equivalents included $5.8 million of restricted cash primarily related to collateral for our outstanding letters of credit. At December 31, 2020, cash and cash equivalents included $0.4 million of restricted cash related to collateral for a lease and credit card deposits. At June 30, 2021 and December 31, 2020, cash and cash equivalents excluded $0.3 million and $0.2 million, respectively, of restricted cash related to an account established as collateral for a lease arrangement, which is included in other assets on the consolidated balance sheets.
4. Fair Value Measurements
We measure certain financial instruments at fair value using a fair value hierarchy. In the hierarchy, assets are classified based on the lowest level inputs used in valuation into the following categories:
Level 1 — Quoted prices in active markets for identical assets and liabilities;
Level 2 — Observable inputs including quoted market prices for similar assets and liabilities in active markets, quoted prices for identical assets and liabilities in inactive markets, or inputs that are corroborated by observable market data; and
Level 3 — Unobservable inputs.
The following tables summarize assets that are measured at fair value on a recurring basis:
June 30, 2021
(in thousands)Level 1Level 2Level 3Total
Cash equivalents
Money market funds$47,682 $ $ $47,682 
Total cash equivalents$47,682 $ $ $47,682 
Short-term investments
Commercial paper$ $79,725 $ $79,725 
Corporate bonds 12,682  12,682 
Supranational bonds 13,187  13,187 
U.S. Treasury and agency obligations 19,517  19,517 
Total short-term investments$ $125,111 $ $125,111 
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December 31, 2020
(in thousands)Level 1Level 2Level 3Total
Cash equivalents
Money market funds$44,153 $ $ $44,153 
Commercial paper 4,500  4,500 
Total cash equivalents$44,153 $4,500 $ $48,653 
Short-term investments
Commercial paper$ $71,425 $ $71,425 
Corporate bonds 4,505  4,505 
U.S. Treasury and agency obligations 37,693  37,693 
Total short-term investments$ $113,623 $ $113,623 
We did not have any liabilities measured and recorded at fair value at June 30, 2021 or December 31, 2020.
5. Property and Equipment, Net
Property and equipment, net consisted of the following:
(in thousands)
June 30, 2021December 31, 2020
Computer software and equipment
$24,677$22,930
Furniture and fixtures
6,0336,011
Leasehold improvements
27,22926,210
Right-of-use assets under finance leases
1,3441,571
Total
59,28356,722
Less: accumulated depreciation and amortization
(21,876)(17,802)
Property and equipment, net
$37,407$38,920
Depreciation and amortization related to property and equipment was $2.5 million, $2.0 million, $4.7 million and $4.0 million in the three months ended June 30, 2021 and 2020 and the six months ended June 30, 2021 and 2020, respectively.
6. Acquisition, Goodwill and Acquired Intangible Assets
Business Combination
In April 2021, we acquired Alsid SAS ("Alsid"), which expanded our product offerings to include active directory security. Active directory is the basis for managing user permissions across on-premises and hybrid cloud deployments and is foundational to the security of cloud workloads, security remote work, and adopting zero trust architectures. Through a share purchase agreement, we acquired 100% of Alsid's equity in exchange for cash consideration of $98.5 million, net of cash acquired of $3.3 million.
When determining the fair value of assets acquired and liabilities assumed, a non-recurring level 3 fair value measurement, we make estimates and assumptions, especially with respect to intangible assets such as our identified acquired technology and trade name intangible assets. We determined the fair value of our acquired technology using the multi-period excess earnings method, a form of the income approach. Estimates in valuing identifiable intangible assets include, but are not limited to, projected revenue growth rates, future expected operating expenses, obsolescence projections and an appropriate discount rate. Our estimate of fair value is based upon assumptions we believe to be reasonable, but which are inherently uncertain and, as a result, actual results may differ from estimates. During the
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measurement period, we may make adjustments to the fair value of assets acquired and liabilities assumed, with offsetting adjustments to goodwill. Any adjustments made after the measurement period will be reflected in the consolidated statements of operations. We are still finalizing the allocation of the purchase price, which may change as additional information becomes available related to acquired intangible assets, deferred revenue, income taxes and any working capital adjustments.
The cash consideration, net of cash acquired, was preliminarily allocated as follows:
(in thousands)
Accounts receivable
$4,105
Prepaid expenses and other assets2,304 
Intangible assets31,400 
Goodwill72,291 
Accounts payable, accrued expenses and accrued compensation(3,794)
Deferred revenue(3,699)
Deferred tax liabilities, net(4,118)
Total purchase price allocation
$98,489 
Acquired intangible assets and their estimated useful lives at the date of acquisition are as follows:
Intangible Assets
(dollars in thousands)
CostEstimated Useful Life
Acquired technology
$31,3007 years
Trade name100 1 year
Acquired intangible assets$31,400 
The results of operations of Alsid are included in our consolidated statements of operations from the acquisition date and were not material. Pro forma results of operations are not presented as they are not material to the consolidated statements of operations.
In general and administrative expense, we recognized $1.5 million and $3.7 million in acquisition-related transaction costs in the three and six months ended June 30, 2021, respectively.
Goodwill and Acquired Intangible Assets
The changes in the carrying amount of goodwill are as follows:
(in thousands)
Balance at December 31, 2020
$54,414 
Acquired goodwill72,291 
Balance at June 30, 2021
$126,705 
The excess purchase consideration over the fair value of acquired assets and liabilities is recorded as goodwill. The acquired goodwill reflects the synergies we expect from marketing and selling new capabilities from Alsid to our customers. None of the acquired goodwill is tax deductible.
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Acquired intangible assets subject to amortization are as follows:
June 30, 2021December 31, 2020
(in thousands)Gross Carrying AmountAccumulated AmortizationNet Carrying AmountGross Carrying AmountAccumulated AmortizationNet Carrying Amount
Acquired technology$48,625 $(6,138)$42,487 $17,325 $(4,224)$13,101 
Trade name300 (177)123 200 (108)92 
$48,925 $(6,315)$42,610 $17,525 $(4,332)$13,193 
Amortization of acquired intangible assets was $1.4 million, $0.6 million, $2.0 million and $1.2 million in the three months ended June 30, 2021 and 2020 and the six months ended June 30, 2021 and 2020, respectively. At June 30, 2021, our acquired intangible assets are expected to be amortized over an estimated weighted average period of 6.4 years.
At June 30, 2021, estimated future amortization of acquired intangible assets is as follows:
(in thousands)
Year ending December 31,
2021(1)
$3,435 
2022
6,718 
2023
6,686 
2024
6,686 
2025
6,686 
Thereafter
12,399 
Total
$42,610 
_______________
(1)    Represents the six months ending December 31, 2021.
7. Leases
We have operating leases for office facilities and finance leases for office equipment. The components of lease expense were as follows:
Three Months Ended June 30,Six Months Ended June 30,
(in thousands)
2021202020212020
Operating lease cost
$1,907 $2,327 $3,776 $4,811 
Finance lease cost
Amortization of ROU assets
$2 $76 $4 $186 
Interest on lease liabilities
2 1 3 3 
Total finance lease cost
$4 $77 $7 $189 
Rent expense for short-term leases in the three and six months ended June 30, 2021 and 2020 was not material.
Supplemental information related to leases was as follows:
June 30, 2021December 31, 2020
Operating leases
Weighted average remaining lease term
9.9 years10.0 years
Weighted average discount rate
5.6%5.6%
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In the three and six months ended June 30, 2021, we did not obtain any right of use assets in exchange for lease liabilities. During the three and six months ended June 30, 2020, we obtained $0.7 million of right of use assets related to operating lease liabilities.
Maturities of operating lease liabilities at June 30, 2021 were as follows:
(in thousands)
Year ending December 31,
2021(1)
$1,419 
2022
8,017 
2023
7,689 
2024
7,843 
2025
7,405 
Thereafter
44,499 
Total lease payments
76,872 
Less: Imputed interest
(19,489)
Total
$57,383 
_______________
(1)    Represents the six months ending December 31, 2021.
8. Debt
In July 2020, we entered into a $45.0 million senior secured credit facility (“2020 Credit Facility”) with Silicon Valley Bank in connection with the expiration of our $25.0 million revolving credit facility. The 2020 Credit Facility bears interest at either LIBOR plus 2%, with a 1% LIBOR floor, or the base rate plus 1%, and terminates on July 24, 2022. A commitment fee of 0.35% per annum is payable quarterly in arrears based on the unused portion. The obligations under the 2020 Credit Facility are secured by a lien on our tangible and intangible property except intellectual property and certain subsidiaries and by a pledge of all of the equity interests of our material direct and indirect domestic subsidiaries and 65% of each class of capital stock of any material first-tier foreign subsidiaries, subject to limited exceptions. The 2020 Credit Facility includes a $45.0 million uncommitted expansion, as well as a $10.0 million sublimit for the issuance of letters of credit and a swingline sub-facility of up to $10.0 million, and has a financial covenant requiring a minimum consolidated quick ratio of at least 1.5:1.0 on the last day of each quarter.
During the six months ended June 30, 2021, there were no amounts outstanding under our 2020 Credit Facility. At June 30, 2021, we were in compliance with the financial covenant and our borrowing capacity was reduced by $5.5 million related to standby letters of credit.
In July 2021, the 2020 Credit Facility was terminated. See Note 13 for additional information.
9. Stock-Based Compensation
At June 30, 2021, there were 20,239,030 shares available for grant under our 2018 Equity Incentive Plan.
Stock-based compensation expense included in the consolidated statements of operations was as follows:
Three Months Ended June 30,Six Months Ended June 30,
(in thousands)
2021202020212020
Cost of revenue
$1,202$830$2,139$1,577
Sales and marketing
7,5775,37513,8739,871
Research and development
5,1763,8939,3326,841
General and administrative
6,5145,56812,07710,412
Total stock-based compensation expense
$20,469$15,666$37,421$28,701
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At June 30, 2021, the unrecognized stock-based compensation expense related to unvested restricted stock units ("RSUs") was $196.9 million, which is expected to be recognized over an estimated remaining weighted average period of 3.1 years.
At June 30, 2021, the unrecognized stock-based compensation expense related to outstanding stock options was $6.0 million, which is expected to be recognized over an estimated remaining weighted average period of 0.9 years.
Restricted Stock and RSUs
A summary of our restricted stock and RSU activity is presented below:
Restricted StockRSUs
(in thousands, except for per share data)
Number
of Shares
Weighted
Average
Grant Date Fair Value
Number
of Shares
Weighted
Average
Grant Date Fair Value
Unvested balance at December 31, 202099$4.25 4,490$28.13 
Granted
 3,09942.18 
Vested
(99)4.25 (1,184)27.95 
Forfeited
 (353)31.26 
Unvested balance at June 30, 2021 6,05235.18 
Stock Options
A summary of our stock option activity is presented below:
(in thousands, except for exercise prices and years)
Number
of Shares
Weighted
Average
Exercise Price
Weighted-Average Remaining Contractual Term (in years)
Aggregate Intrinsic Value