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UNITED STATES SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-Q
(Mark One)
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended June 30, 2022
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: 001-36383
Five9, Inc.
(Exact Name of Registrant as Specified in Its Charter)
Delaware94-3394123
(State or Other Jurisdiction of
Incorporation or Organization)
(I.R.S. Employer
Identification No.)
3001 Bishop Drive, Suite 350
San Ramon, CA 94583
(Address of Principal Executive Offices) (Zip Code)
(925) 201-2000
(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 $0.001 per shareFIVNThe NASDAQ Global Market
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 and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post 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 definitions of “large accelerated filer,” “accelerated filer”, “smaller reporting company”, and “emerging growth company” in Rule 12b-2 of the Exchange Act.
Large Accelerated FilerAccelerated Filer
Non-accelerated filer(Do not check if a smaller reporting Company)Smaller Reporting Company
Emerging Growth 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.  Yes:  No: 
Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).  Yes: No: 
As of July 25, 2022, there were 70,102,990 shares of the Registrant’s common stock, par value $0.001 per share, outstanding.


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FIVE9, INC.
FORM 10-Q
TABLE OF CONTENTS

1

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SPECIAL NOTE REGARDING FORWARD-LOOKING STATEMENTS

This Quarterly Report on Form 10-Q contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934, which involve substantial risks and uncertainties. These statements reflect the current views of our senior management with respect to future events and our financial performance. These forward-looking statements include statements with respect to our business, expenses, strategies, losses, growth plans, product and client initiatives, market growth projections, and our industry. Statements that include the words “expect,” “intend,” “plan,” “believe,” “project,” “forecast,” “estimate,” “may,” “should,” “anticipate” and similar statements of a future or forward-looking nature identify forward-looking statements for purposes of the federal securities laws or otherwise.
Forward-looking statements address matters that involve risks and uncertainties. Accordingly, there are or will be important factors that could cause our actual results to differ materially from those indicated in these statements. These factors include the information set forth in Part 1, Item 1A, of our Annual Report on Form 10-K for the fiscal year ended December 31, 2021 and Part II, Item 1A, of this Quarterly Report, which we encourage you to carefully read, and include the following:
our quarterly and annual results may fluctuate significantly, including as a result of the timing and success of new product and feature introductions by us, and may not fully reflect the underlying performance of our business and may result in decreases in the price of our common stock;
adverse economic conditions may harm our business, including the current global economic downturn;
if we are unable to attract new clients or sell additional services and functionality to our existing clients, our revenue and revenue growth will be harmed;
our recent rapid growth may not be indicative of our future growth, and even if we continue to grow rapidly, we may fail to manage our growth effectively;
failure to adequately retain and expand our sales force will impede our growth;
if we fail to manage our technical operations infrastructure, our existing clients may experience service outages, our new clients may experience delays in the deployment of our solution and we could be subject to, among other things, claims for credits or damages;
our growth depends in part on the success of our strategic relationships with third parties and our failure to successfully maintain, grow and manage these relationships could harm our business;
we have established, and are continuing to increase, our network of master agents and resellers to sell our solution; our failure to effectively develop, manage, and maintain this network could materially harm our revenues;
the markets in which we participate involve a high number of competitors that is continuing to increase, and if we do not compete effectively, our operating results could be harmed;
we continue to expand our international operations, which exposes us to significant risks;
security breaches and improper access to or disclosure of our data or our clients’ data, or other cyber attacks on our systems, could result in litigation and regulatory risk, harm our reputation and our business;
we may acquire other companies, or technologies or be the target of strategic transactions, or be impacted by transactions by other companies, which could divert our management’s attention, result in additional dilution to our stockholders or use a significant amount of our cash resources and otherwise disrupt our operations and harm our operating results;
if our existing clients terminate their subscriptions or reduce their subscriptions and related usage, our revenues and gross margins will be harmed and we will be required to spend more money to grow our client base;
we sell our solution to larger organizations that require longer sales and implementation cycles and often demand more configuration and integration services or customized features and functions that we may not offer, any of which could delay or prevent these sales and harm our growth rates, business and operating results;
because a significant percentage of our revenue is derived from existing clients, downturns or upturns in new sales will not be immediately reflected in our operating results and may be difficult to discern;
we rely on third-party telecommunications and internet service providers to provide our clients and their customers with telecommunication services and connectivity to our cloud contact center software and any
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failure by these service providers to provide reliable services could cause us to lose clients and subject us to claims for credits or damages, among other things;
we have a history of losses and we may be unable to achieve or sustain profitability;
the contact center software solutions market is subject to rapid technological change, and we must develop and sell incremental and new solutions in order to maintain and grow our business;
the effects of the COVID-19 pandemic have materially affected how we, our clients and business partners are operating, and the duration and extent to which it will impact our future results of operations and overall financial performance remain uncertain;
we may not be able to secure additional financing on favorable terms, or at all, to meet our future capital needs;
failure to comply with laws and regulations could harm our business and our reputation; and
we may not have sufficient cash to service our convertible senior notes and repay such notes, if required.
The foregoing factors should not be construed as exhaustive and should be read together with the other cautionary statements included in, or incorporated into, this report. If one or more of these or other risks or uncertainties materialize, or if our underlying assumptions prove to be incorrect, our actual results may differ materially from what we anticipate. You should not place undue reliance on our forward-looking statements. Any forward-looking statements you read in this report reflect our views only as of the date of this report with respect to future events and are subject to these and other risks, uncertainties and assumptions relating to our operations, results of operations, growth strategy and liquidity. We undertake no obligation to update any forward-looking statements made in this report to reflect events or circumstances after the date of this report or to reflect new information or the occurrence of unanticipated events, except as required by law.

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PART I. FINANCIAL INFORMATION
ITEM 1. Financial Statements
FIVE9, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands, except per share data)
June 30, 2022December 31, 2021
(Unaudited)
ASSETS
Current assets:
Cash and cash equivalents$101,315 $90,878 
Marketable investments397,067 378,980 
Accounts receivable, net82,885 83,731 
Prepaid expenses and other current assets38,464 30,342 
Deferred contract acquisition costs, net40,306 33,295 
Total current assets660,037 617,226 
Property and equipment, net99,994 77,785 
Operating lease right-of-use assets43,593 48,703 
Intangible assets, net34,015 39,897 
Goodwill165,420 165,420 
Marketable investments60,424 147,377 
Other assets11,886 11,871 
Deferred contract acquisition costs, net — less current portion101,854 84,663 
Total assets$1,177,223 $1,192,942 
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:
Accounts payable$25,931 $20,510 
Accrued and other current liabilities56,894 78,577 
Operating lease liabilities9,836 9,826 
Accrued federal fees 2,282 
Sales tax liabilities2,253 2,660 
Deferred revenue51,553 43,720 
Convertible senior notes187  
Total current liabilities146,654 157,575 
Convertible senior notes — less current portion736,485 768,599 
Sales tax liabilities — less current portion888 877 
Operating lease liabilities — less current portion42,186 47,088 
Other long-term liabilities6,108 7,671 
Total liabilities932,321 981,810 
Commitments and contingencies (Note 10)
Stockholders’ equity:
Common stock70 68 
Additional paid-in capital535,592 439,787 
Accumulated other comprehensive loss (4,534)(287)
Accumulated deficit(286,226)(228,436)
Total stockholders’ equity244,902 211,132 
Total liabilities and stockholders’ equity$1,177,223 $1,192,942 
See accompanying notes to the unaudited condensed consolidated financial statements.
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FIVE9, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
AND COMPREHENSIVE LOSS
(Unaudited, in thousands, except per share data)
Three Months EndedSix Months Ended
June 30, 2022June 30, 2021June 30, 2022June 30, 2021
Revenue$189,382 $143,782 $372,159 $281,664 
Cost of revenue88,229 64,395 177,096 124,198 
Gross profit101,153 79,387 195,063 157,466 
Operating expenses:
Research and development34,992 24,648 70,816 46,769 
Sales and marketing64,098 46,024 128,709 90,823 
General and administrative23,824 22,909 48,138 45,154 
Total operating expenses122,914 93,581 247,663 182,746 
Loss from operations(21,761)(14,194)(52,600)(25,280)
Other (expense) income, net:
Interest expense(1,857)(2,118)(3,727)(4,056)
Interest income and other280 (353)1,125 (178)
Total other (expense) income, net(1,577)(2,471)(2,602)(4,234)
Loss before income taxes(23,338)(16,665)(55,202)(29,514)
Provision for (benefit from) income taxes332 (135)2,588 (652)
Net loss$(23,670)$(16,530)$(57,790)$(28,862)
Net loss per share:
Basic and diluted$(0.34)$(0.25)$(0.83)$(0.43)
Shares used in computing net loss per share:
Basic and diluted69,748 67,292 69,363 67,008 
Comprehensive Loss:
Net loss$(23,670)$(16,530)$(57,790)$(28,862)
Other comprehensive loss(1,164)(80)(4,247)(36)
Comprehensive loss$(24,834)$(16,610)$(62,037)$(28,898)
See accompanying notes to the unaudited condensed consolidated financial statements.
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FIVE9, INC.
CONDENSED CONSOLIDATED STATEMENT OF STOCKHOLDERS’ EQUITY
(Unaudited, in thousands)
Common StockAdditional Paid-In CapitalAccumulated
Other Comprehensive Income
Accumulated
Deficit
Total Stockholders’ Equity
SharesAmount
Balance as of March 31, 202167,029 $67 $331,528 $379 $(187,768)$144,206 
Issuance of common stock upon partial conversion of the 2023 convertible senior notes182 — (149)— — (149)
Partial unwind of capped calls and retirement of common stock related to the 2023 convertible senior notes(28)— 5 — — 5 
Issuance of common stock upon exercise of stock options123 — 2,224 — — 2,224 
Issuance of common stock upon vesting of restricted stock units310 1 — — — 1 
Issuance of common stock under ESPP68 — 8,128 — — 8,128 
Stock-based compensation— — 24,901 — — 24,901 
Other comprehensive loss— — — (80)— (80)
Net loss— — — — (16,530)(16,530)
Balance as of June 30, 202167,684 $68 $366,637 $299 $(204,298)$162,706 
Balance as of March 31, 202269,521 $70 $480,215 $(3,370)$(262,556)$214,359 
Issuance of common stock upon partial conversion of the 2023 convertible senior notes34 — (15)— — (15)
Partial unwind of capped calls and retirement of common stock related to the 2023 convertible senior notes(8)— 1 — — 1 
Issuance of common stock upon exercise of stock options70 — 1,728 — — 1,728 
Issuance of common stock upon vesting of restricted stock units376 — (2)— — (2)
Issuance of common stock under ESPP97 — 8,338 — — 8,338 
Stock-based compensation— — 45,327 — — 45,327 
Other comprehensive loss— — — (1,164)— (1,164)
Net loss— — — — (23,670)(23,670)
Balance as of June 30, 202270,090 $70 $535,592 $(4,534)$(286,226)$244,902 


See accompanying notes to the unaudited condensed consolidated financial statements.







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FIVE9, INC.
CONDENSED CONSOLIDATED STATEMENT OF STOCKHOLDERS’ EQUITY
(Unaudited, in thousands)
Common StockAdditional Paid-In CapitalAccumulated
Other Comprehensive Income (Loss)
Accumulated
Deficit
Total Stockholders’ Equity
SharesAmount
Balance as of December 31, 202066,496 $67 $476,941 $335 $(198,179)$279,164 
Cumulative effect adjustment due to adoption of ASU 2020-06(1)
— — (168,412)— 22,743 (145,669)
Issuance of common stock upon partial conversion of the 2023 convertible senior notes325 — (275)— — (275)
Partial unwind of capped calls and retirement of common stock related to the 2023 convertible senior notes(47)— 7 — — 7 
Issuance of common stock upon exercise of stock options246 — 4,439 — — 4,439 
Issuance of common stock upon vesting of restricted stock units596 1 — — — 1 
Issuance of common stock under ESPP68 — 8,128 — — 8,128 
Stock-based compensation— — 45,809 — — 45,809 
Other comprehensive income— — — (36)— (36)
Net loss— — — — (28,862)(28,862)
Balance as of June 30, 202167,684 $68 $366,637 $299 $(204,298)$162,706 
Balance as of December 30, 202168,488 $68 $439,787 $(287)$(228,436)$211,132 
Issuance of common stock upon partial conversion of the 2023 convertible senior notes574 — (259)— — (259)
Partial unwind of capped calls and retirement of common stock related to the 2023 convertible senior notes(119)— 3 — — 3 
Issuance of common stock upon exercise of stock options351 1 3,004 — — 3,005 
Issuance of common stock upon vesting of restricted stock units699 1 (1)— —  
Issuance of common stock under ESPP97 — 8,338 — — 8,338 
Stock-based compensation— — 84,720 — — 84,720 
Other comprehensive loss— — — (4,247)— (4,247)
Net loss— — — — (57,790)(57,790)
Balance as of June 30, 202270,090 $70 $535,592 $(4,534)$(286,226)$244,902 

(1)Effective January 1, 2021, the Company adopted ASU 2020-06, Debt-Debt with Conversion and Other Options (Subtopic 470-20) and Derivatives and Hedging-Contracts in Entity’s Own Equity (Subtopic 815-40): Accounting for Convertible Instruments and Contracts in an Entity’s Own Equity. Accordingly, the Company recorded a net reduction to opening accumulated deficit of $22.7 million and a net reduction to opening additional paid-in capital of $168.4 million as of January 1, 2021 due to the cumulative impact of adopting this new standard.
See accompanying notes to the unaudited condensed consolidated financial statements.
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FIVE9, INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited, in thousands)
Six Months Ended
June 30, 2022June 30, 2021
Cash flows from operating activities:
Net loss$(57,790)$(28,862)
Adjustments to reconcile net loss to net cash provided by operating activities:
Depreciation and amortization22,435 18,414 
Amortization of operating lease right-of-use assets4,942 4,473 
Amortization of deferred contract acquisition costs18,653 11,468 
Amortization of premium on marketable investments1,114 3,521 
Provision for doubtful accounts505 337 
Stock-based compensation84,179 45,809 
Amortization of discount and issuance costs on convertible senior notes1,852 1,959 
Deferred taxes2,054  
Change in fair of value of contingent consideration260 5,200 
Payment of contingent consideration liability in excess of acquisition-date fair value(5,900) 
Other172 226 
Changes in operating assets and liabilities:
Accounts receivable310 (5,526)
Prepaid expenses and other current assets(8,092)(5,962)
Deferred contract acquisition costs(42,854)(35,319)
Other assets(70)147 
Accounts payable4,487 1,725 
Accrued and other current liabilities(4,107)23,343 
Accrued federal fees and sales tax liabilities(2,677)1,277 
Deferred revenue7,571 (2,118)
Other liabilities(1,423)(14,955)
Net cash provided by operating activities25,621 25,157 
Cash flows from investing activities:
Purchases of marketable investments(151,712)(325,628)
Proceeds from sales of marketable investments600 1,557 
Proceeds from maturities of marketable investments214,585 282,048 
Purchases of property and equipment(34,474)(19,477)
Capitalization of software development costs(1,392) 
Cash paid for an equity investment in a privately-held company(2,000) 
Net cash provided by (used in) investing activities25,607 (61,500)
Cash flows from financing activities:
Repurchase of a portion of 2023 convertible senior notes, net of costs(34,034)(17,622)
Proceeds from exercise of common stock options3,005 4,439 
Proceeds from sale of common stock under ESPP8,338 8,128 
Payment of contingent consideration liability up to acquisition-date fair value(18,100) 
Payment of holdback related to an acquisition (3,200)
Payments of finance leases (575)
Net cash used in financing activities(40,791)(8,830)
Net increase (decrease) in cash and cash equivalents10,437 (45,173)
Cash and cash equivalents:
Beginning of period90,878 220,372 
End of period$101,315 $175,199 
Supplemental disclosures of cash flow data:
Cash paid for interest$1,870 $1,912 
Cash paid for income taxes$647 $163 
Non-cash investing and financing activities:
Equipment purchased and unpaid at period-end$16,141 $7,818 
Capitalization of leasehold improvements and furniture and fixtures through non-cash lease incentive$109 $4,815 
Stock-based compensation included in capitalized software development costs$541 $ 
See accompanying notes to the unaudited condensed consolidated financial statements.
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FIVE9, INC.
Notes to Condensed Consolidated Financial Statements (Unaudited)
1. Description of Business and Summary of Significant Accounting Policies
Five9, Inc. and its wholly-owned subsidiaries (the “Company”) is a provider of cloud software for contact centers. The Company was incorporated in Delaware in 2001 and is headquartered in San Ramon, California. The Company has offices in Europe, Asia and Australia, which primarily provide research, development, sales, marketing, and client support services.
Basis of Presentation
The accompanying condensed consolidated financial statements have been prepared in accordance with generally accepted accounting principles in the United States (“GAAP”) and applicable rules and regulations of the Securities and Exchange Commission (“SEC”) regarding interim financial reporting. Certain information and note disclosures normally included in financial statements prepared in accordance with GAAP have been condensed or omitted pursuant to such rules and regulations. Therefore, these condensed consolidated financial statements should be read in conjunction with the consolidated financial statements and notes included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2021. In the opinion of management, the condensed consolidated financial statements reflect all adjustments, which are normal and recurring in nature, necessary for fair financial statement presentation. All intercompany transactions and balances have been eliminated in consolidation.
Certain prior period amounts within investing activities in the condensed consolidated statements of cash flows have been reclassified to conform to the current period presentation.
Use of Estimates
The preparation of condensed consolidated financial statements in accordance with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the condensed consolidated financial statements and the reported amounts of revenue and expenses during the reporting period. The significant estimates made by management affect revenue and related reserves, as well as the fair value of liabilities assumed through business combinations. Management periodically evaluates such estimates and they are adjusted prospectively based upon such periodic evaluation. Actual results could differ from those estimates.
Significant Accounting Policies
Except for the below significant accounting policy, which updates the significant accounting policies previously disclosed in the Company's Annual Report on Form 10-K for the fiscal year ended December 31, 2021 as filed with the SEC on February 28, 2022, there have been no material changes from the significant accounting policies previously disclosed in Part II, Item 8, of the Company's Annual Report on Form 10-K for the fiscal year ended December 31, 2021.
Internal-use software development costs
The Company capitalizes certain qualifying costs incurred during the development stage of internal-use software. Costs related to preliminary project activities and post-implementation activities are expensed in research and development as incurred. Preliminary project activities include conceptual formulation, evaluation and final selection of alternatives, planning, proof of concept and requirement analysis of the selected alternative. Post-implementation stage begins when the internal-use software is ready for its intended use, and includes all internal and external training and application maintenance activities. Capitalized internal-use software costs are included within property and equipment, net on the condensed consolidated balance sheets, and are amortized over the estimated useful life of the software, which is three years. The related amortization expense is recognized in cost of revenue.
Recent Accounting Pronouncements Not Yet Effective
The Company has reviewed or is in the process of evaluating all issued, but not yet effective, accounting pronouncements and does not believe the future adoption of any such accounting pronouncements will cause a material impact on its condensed consolidated financial position, operating results or cash flows.
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2. Revenue
Contract Balances
The following table provides information about accounts receivable, net, deferred contract acquisition costs, net, contract assets and contract liabilities from contracts with customers (in thousands):
June 30, 2022December 31, 2021
Accounts receivable, net$82,885 $83,731 
Deferred contract acquisition costs, net:
Current$40,306 $33,295 
Non-current101,854 84,663 
Total deferred contract acquisition costs, net$142,160 $117,958 
Contract assets and contract liabilities:
Contract assets (included in prepaid expenses and other current assets)$3,112 $2,593 
Contract liabilities (deferred revenue) 51,553 43,720 
Noncurrent contract liabilities (deferred revenue) (included in other long-term liabilities)1,836 2,097 
Net contract liabilities$(50,277)$(43,224)
The Company receives payments from customers based upon billing cycles. Invoice payment terms are usually 30 days or less. Accounts receivable are recorded when the right to consideration becomes unconditional.
Deferred contract acquisition costs are recorded when incurred and are amortized over an estimated customer benefit period of five years.
The Company’s contract assets consist of unbilled amounts typically resulting from professional services revenue recognition when it exceeds the total amounts billed to the customer. The Company’s contract liabilities consist of advance payments and billings in excess of revenue recognized.
In the three and six months ended June 30, 2022, the Company recognized revenue of $6.7 million and $33.0 million, respectively, related to its contract liabilities at December 31, 2021.
Remaining Performance Obligations
As of June 30, 2022, the aggregate amount of the total transaction price allocated in contracts with original duration of greater than one year to the remaining performance obligations was $713.8 million. The Company expects to recognize revenue on approximately three-fourths of the remaining performance obligations over the next 24 months, with the balance recognized thereafter. The Company has elected the optional exemption, which allows for the exclusion of the amounts for remaining performance obligations that are part of contracts with an original expected duration of one year or less. Such remaining performance obligations represent unsatisfied or partially unsatisfied performance obligations.
3. Investments and Fair Value Measurements
Marketable Investments
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The Company’s marketable investments have been classified and accounted for as available-for-sale. The Company’s marketable investments as of June 30, 2022 and December 31, 2021 were as follows (in thousands):
June 30, 2022
Short-Term Marketable InvestmentsCostGross Unrealized GainsGross Unrealized LossesFair Value
Certificates of deposit$950 $ $(4)$946 
U.S. treasury131,289 3 (1,232)130,060 
U.S. agency securities153,324  (1,512)151,812 
Commercial paper18,081   18,081 
Municipal bonds92,382  (516)91,866 
Corporate bonds4,326  (24)4,302 
Total$400,352 $3 $(3,288)$397,067 
June 30, 2022
Long-term Marketable InvestmentsCostGross Unrealized GainsGross Unrealized LossesFair Value
Certificates of deposit$498 $ $(14)$484 
U.S. treasury24,319  (740)23,579 
U.S. agency securities32,286  (888)31,398 
Municipal bonds5,080  (117)4,963 
Total$62,183 $ $(1,759)$60,424 
December 31, 2021
Short-Term Marketable InvestmentsCostGross Unrealized GainsGross Unrealized LossesFair Value
Certificates of deposit$1,615 $ $ $1,615 
U.S. treasury83,237  (24)83,213 
U.S. agency securities159,070  (65)159,005 
Commercial paper47,555   47,555 
Municipal bonds75,337  (96)75,241 
Corporate bonds12,355 2 (6)12,351 
Total$379,169 $2 $(191)$378,980 
December 31, 2021
Long-term Marketable InvestmentsCostGross Unrealized GainsGross Unrealized LossesFair Value
Certificates of deposit$746 $ $(2)$744 
U.S. treasury63,566  (251)63,315 
U.S. agency securities63,960  (254)63,706 
Municipal bonds18,655  (64)18,591 
Corporate bonds1,026  (5)1,021 
Total$147,953 $ $(576)$147,377 
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The following table presents the gross unrealized losses and the fair value for those marketable investments that were in an unrealized loss position for less than 12 months as of June 30, 2022 and December 31, 2021 (in thousands):
June 30, 2022December 31, 2021
Gross Unrealized LossesFair ValueGross Unrealized LossesFair Value
Certificates of deposit$(18)$1,430 $(2)$2,010 
U.S. treasury(1,972)143,721 (275)140,527 
U.S. agency securities(2,400)181,214 (320)222,710 
Municipal bonds(633)96,829 (160)87,184 
Corporate bonds(24)4,302 (10)9,428 
Total$(5,047)$