0001288847-23-000156 | 10-Q | XBRL Viewer

Goodwill and Intangible Assets

9 Months Ended

Sep. 30, 2023

Goodwill and Intangible Assets Disclosure [Abstract]

Goodwill of $62.6 million and intangible assets of $22.0 million were recorded as a result of the Company's acquisition of Aceyus, Inc. ("Aceyus") in August 2023. See Note 13 for further details. The following table summarizes the activity in the Company's goodwill and intangible asset balances during the nine months ended September 30, 2023 (in thousands):


	Goodwill		Intangible Assets
Beginning of the period, December 31, 2022	$	165,420	$	28,192
Addition (Aceyus)	61,992		22,150
Amortization	—		(8,873)
End of the period, September 30, 2023	$	227,412	$	41,469

The components of intangible assets were as follows (in thousands):



	September 30, 2023							December 31, 2022
	Gross Carrying Amount		Accumulated Amortization		Net Carrying Amount		Weighted Average Remaining Amortization period (Years)	Gross Carrying Amount		Accumulated Amortization		Net Carrying Amount		Weighted Average Remaining Amortization period (Years)
Developed technology	$	75,314	$	(37,472)	$	37,842	5.3	$	56,214	$	(28,881)	$	27,333	3.2
Acquired workforce	470		(470)		—		0.0	470		(470)		—		0.0
Customer relationships	4,150		(1,002)		3,148		4.3	1,600		(741)		859		2.7
Trademarks	1,000		(521)		479		2.9	500		(500)		—		0.0
Total	$	80,934	$	(39,465)	$	41,469	5.2	$	58,784	$	(30,592)	$	28,192	3.2

Amortization expense related to intangible assets was $3.2 million and $8.9 million for the three and nine months ended September 30, 2023, respectively. Amortization expense related to intangible assets was $2.9 million and $8.8 million for the three and nine months ended September 30, 2022, respectively.

As of September 30, 2023, the expected future amortization expense for intangible assets was as follows (in thousands):


Period	Expected Future Amortization Expense
Remaining 2023	$	3,143
2024	10,591
2025	8,660
2026	7,201
2027	2,898
Thereafter	8,976
Total	$	41,469

Stockholders' Equity - Performance-Based Restricted Stock Units (Narrative) (Details) $ in Millions	3 Months Ended	9 Months Ended	12 Months Ended
	Mar. 31, 2023 Rate	Sep. 30, 2023 USD ($) period installment shares	Dec. 31, 2022 USD ($) goal installment shares
Market-Based PRSUs
Stockholders' Equity Capital Structure [Line Items]
Equity instruments granted (in shares) \| shares		35,921	284,282
Equity instruments granted, weighted average grant date fair value \| $		$ 3.1	$ 30.6
PRSUs
Stockholders' Equity Capital Structure [Line Items]
Earnout target percentage (as a percent)	58.70%
Number of performance periods \| period		3
Term of the performance period (in years)		1 year
Performance periods limited to 100% of target \| period		2
Earnout target percentage, maximum for 2022 and 2023 (as a percent)		1
Actual total shareholder return (as a percent)	(52.64%)
Relative total shareholder return ranking (as a percent)	30.20%
PRSUs \| Tranche One
Stockholders' Equity Capital Structure [Line Items]
Award vesting percentage		33.33%
PRSUs \| Tranche Two
Stockholders' Equity Capital Structure [Line Items]
Award vesting percentage		66.67%
PRSUs \| Payout At The 25th TSR Percentile
Stockholders' Equity Capital Structure [Line Items]
Earnout target percentage (as a percent)	50.00%
PRSUs \| Payout At The 55th TSR Percentile
Stockholders' Equity Capital Structure [Line Items]
Earnout target percentage (as a percent)	100.00%
PRSUs \| Payout At The 90th TSR Percentile
Stockholders' Equity Capital Structure [Line Items]
Earnout target percentage (as a percent)	200.00%
PRSUs \| Minimum
Stockholders' Equity Capital Structure [Line Items]
Earnout target percentage (as a percent)	0.00%	0
PRSUs \| Maximum
Stockholders' Equity Capital Structure [Line Items]
Earnout target percentage (as a percent)	200.00%	2
PRSUs \| Maximum \| Shareholder for Performance Any Period is Negative
Stockholders' Equity Capital Structure [Line Items]
Earnout target percentage (as a percent)		1
PRSUs \| Maximum \| Executive Employment Terminates due to Death by end of 2024
Stockholders' Equity Capital Structure [Line Items]
Earnout target percentage (as a percent)		1
PRSUs \| Maximum \| Executive Employment Terminates due to Disability by end of 2024
Stockholders' Equity Capital Structure [Line Items]
Earnout target percentage (as a percent)		0.50
Revenue-Based PRSUs
Stockholders' Equity Capital Structure [Line Items]
Equity instruments granted (in shares) \| shares			66,167
Equity instruments granted, weighted average grant date fair value \| $			$ 6.6
Number of quarterly revenue goals \| goal			2
Revenue-Based PRSUs \| Tranche One
Stockholders' Equity Capital Structure [Line Items]
Number of quarterly installments \| installment			4
Revenue-Based PRSUs \| Tranche Two
Stockholders' Equity Capital Structure [Line Items]
Number of quarterly installments \| installment		8

Goodwill and Intangible Assets - Narrative (Details) - USD ($) $ in Thousands	Sep. 30, 2023	Aug. 31, 2023	Aug. 03, 2023	Dec. 31, 2022
Indefinite-lived Intangible Assets [Line Items]
Goodwill	$ 227,412			$ 165,420
Aceyus, Inc.
Indefinite-lived Intangible Assets [Line Items]
Goodwill		$ 62,600	$ 61,992
Intangible assets		$ 22,000

- Definition

Amount after accumulated impairment loss of an asset representing future economic benefits arising from other assets acquired in a business combination that are not individually identified and separately recognized.

+ References + Details

Investments and Fair Value Measurements - Maturities (Details) - USD ($) $ in Thousands	Sep. 30, 2023	Dec. 31, 2022
Fair Value Disclosures [Abstract]
Due within one year	$ 456,826
Due after one year through two years	117,285
Due within one year	456,282
Due after one year through two years	116,180
Fair Value	$ 572,462	$ 434,628

Stockholders' Equity

9 Months Ended

Sep. 30, 2023

Equity [Abstract]

Stockholders' Equity

Stockholders’ Equity

Capital Structure

Common Stock

The Company is authorized to issue 450,000,000 shares of common stock with a par value of $0.001 per share. As of September 30, 2023 and December 31, 2022, the Company had 72,695,935 and 71,047,179 shares of common stock issued and outstanding, respectively.

Preferred Stock

The Company is authorized to designate and issue up to 5,000,000 shares of preferred stock with a par value of $0.001 per share in one or more series without stockholder approval and to fix the rights, preferences, privileges and restrictions thereof. As of September 30, 2023 and December 31, 2022, there were no shares of preferred stock issued and outstanding.

Common Stock Reserved for Future Issuance

Shares of common stock reserved for future issuance related to outstanding equity awards and employee equity incentive plans as of September 30, 2023 were as follows (in thousands):


						September 30, 2023
Stock options outstanding						973
RSUs (including PRSUs) outstanding						4,378
Shares available for future grant under 2014 Plan						15,816
Shares available for future issuance under ESPP						4,076

Total shares of common stock reserved						25,243

Stock Options

A summary of the Company’s stock option activity during the nine months ended September 30, 2023 is as follows (in thousands, except per share data):


	Number of Shares	Weighted Average Exercise Price		Weighted Average Remaining Contractual Life (Years)	Aggregate Intrinsic Value
Outstanding as of December 31, 2022	1,481	$	47.75
Options granted	—	—
Options exercised	(436)	19.07
Options forfeited or expired	(72)	141.71
Outstanding as of September 30, 2023	973	$	53.66	4.8	$	27,290

The aggregate intrinsic value amounts are computed based on the difference between the exercise price of the stock options and the fair market value of the Company’s common stock of $64.30 per share as of September 30, 2023 for all in-the-money stock options outstanding.

Restricted Stock Units (including Performance-Based Restricted Stock Units)

A summary of the Company’s restricted stock unit ("RSU") activity (including Performance-Based Restricted Stock Units "PRSUs") during the nine months ended September 30, 2023 is as follows (in thousands, except per

share data):


	Number of Shares	Weighted Average Grant Date Fair Value Per Share
Outstanding as of December 31, 2022	3,718	$	103.55
RSUs granted(1)	2,388	68.25
RSUs vested and released	(1,378)	101.30
RSUs forfeited or canceled	(350)	103.11
Outstanding as of September 30, 2023	4,378	85.06

(1) Includes 35,921 PRSUs granted during the nine months ended September 30, 2023.

PRSUs with Market and Service Conditions In 2022, the Company granted 284,282 PRSUs subject to market and service conditions (“market-based PRSUs”) with a grant date fair value of $30.6 million as part of its annual grant of equity incentive awards to certain executives and in connection with the appointment of Michael Burkland as its new Chief Executive Officer. During the nine months ended September 30, 2023, the Company granted an additional 35,921 market-based PRSUs with a grant date fair value of $3.1 million. The amount that may be earned pursuant to the market-based PRSUs ranges from 0% to 200% of the target number based on the Company’s relative total shareholder return (“RTSR”) performance as compared to the companies in the S&P Software and Services Select Index during three one-year performance periods. One-third of the total market-based PRSUs may be earned and settled in shares following the end of each one-year performance period based on RTSR performance and subject to continued employment through the payment date, but the amount initially paid for the first two one-year performance periods is limited to 100% of the target amount for such years, and any market-based PRSUs resulting from above-target performance in those first two years will be paid following the end of the final one-year performance period, subject to the executive’s continued employment through the payment date. If the Company’s absolute total shareholder return for any performance period is negative, then no more than 100% of the target amount of market-based PRSUs for such period may be earned. If an executive's employment with the Company terminates before the end of the final one-year performance period due to death or disability, 100% (if due to death) or 50% (if due to disability) of the unvested market-based PRSUs may be earned subject to ultimate RTSR performance in each remaining performance period. Upon a qualifying termination of employment in connection with a change in control of the Company, the unvested market-based PRSUs will vest on a double-trigger basis (i) at the target level for the market-based PRSUs granted to certain executives, excluding Michael Burkland, subject to the 2022-2024 performance period, and (ii) for the market-based PRSUs granted to certain executives, including Michael Burkland, subject to the 2023-2025 performance period, (a) at the target level for the uncompleted portions of the performance periods and (b) at the actual level of performance measured through the date of the change in control of the Company, based on the price per share paid in such change in control. The fair value of the market-based PRSUs is determined on their grant date using a Monte Carlo Simulation model based upon assumptions presented below. The Company recognizes the fair value of the market-based PRSUs ratably over their requisite service period.

During the first quarter of 2023, the Company certified the performance results for the 2022 measurement period for the market-based PRSUs subject to the 2022-2024 performance period. Under the market-based PRSU agreements, the TSR payout percentage ranges from 0% to 200%, with a 50% payout at the 25th TSR percentile (threshold), 100% payout at the 55th TSR percentile (target), 200% payout at the 90th percentile or greater (maximum) and no payout below the threshold performance level. The Company determined that its actual total shareholder return was -52.64% for 2022, and that its relative total shareholder return ranking was in the 30.2 percentile relative to companies in the S&P Software & Services Select Index, which resulted in a payout percentage of 58.7% of target.

PRSUs with Revenue and Service Conditions In 2022, the Company granted 66,167 PRSUs subject to revenue-based performance and service conditions (“revenue-based PRSUs”) with a grant date fair value of $6.6 million. The amount of revenue-based PRSUs that may be earned will be determined based on achievement of two quarterly revenue goals. One third of the revenue-based PRSUs may be earned based on achievement of the first revenue target and, if achieved, will vest in four quarterly installments, with the first installment occurring on the date such achievement is certified, subject to the executive's continuous service through the applicable vesting dates. Two thirds of the revenue-based PRSUs may be earned based on achievement of the second revenue target and, if achieved, will vest in eight quarterly installments, with the first installment occurring on the date such achievement is certified, subject to the executive's continuous service through the applicable vesting dates. The revenue-based PRSUs are otherwise on the Company's standard award terms for its market-based PRSUs. The Company certified that the first revenue target was achieved at September 30, 2023, and thus recognized the related stock-based compensation expense through this period. The Company, however, concluded that, as of September 30, 2023, the second revenue target was not probable of achievement, and thus did not recognize related stock-based

compensation expense through this period. The Company will reassess the probability of the achievement of the performance conditions at each reporting period and a cumulative catch-up adjustment will be recorded to stock-based compensation cost for any change in the probability assessment.

Stock-Based Compensation

Stock-based compensation expense was as follows (in thousands):



	Three Months Ended				Nine Months Ended
	September 30, 2023		September 30, 2022		September 30, 2023		September 30, 2022
Cost of revenue	$	9,856	$	8,329	$	29,077	$	24,659
Research and development	12,980		10,603		38,375		32,567
Sales and marketing	16,404		15,761		50,840		44,148
General and administrative	13,371		9,810		38,429		27,308
Total stock-based compensation expense	$	52,611	$	44,503	156,721		128,682

As of September 30, 2023, unrecognized stock-based compensation expense by award type and expected weighted-average recognition periods are summarized in the following table (in thousands, except years).


	Stock Option		RSU (excluding PRSUs)		PRSU		ESPP
Unrecognized stock-based compensation expense	$	5,781	$	315,047	$	16,228	$	557
Weighted-average amortization period	1.7 years		2.7 years		1.9 years		0.1 years

The weighted-average assumptions used to value stock options granted during the periods presented were as follows:



Stock Options	Three Months Ended		Nine Months Ended
	September 30, 2023	September 30, 2022	September 30, 2023	September 30, 2022
Expected term (years)	—	—	—	6.0
Volatility	—	—	—	46.0	%
Risk-free interest rate	—	—	—	1.8	%
Dividend yield (1)	—	—	—	—

The weighted-average assumptions used to value PRSUs with market conditions granted during the periods presented were as follows:










PRSUs (Market Conditions)	Three Months Ended		Nine Months Ended
	September 30, 2023	September 30, 2022	September 30, 2023			September 30, 2022
Closing price of common stock as of grant date	—	—	$	68.15		$110.00
Expected term (years)	—	—	2.84			2.84
Volatility	—	—	51.1		%	48.8	%
Risk-free interest rate	—	—	4.5		%	1.6	%
Dividend yield (1)	—	—	—			—

(1)The Company has not paid, and does not anticipate paying, cash dividends on its shares of common stock. Accordingly, the expected dividend yield is zero.

Stockholders' Equity - Stock Option Activity (Details) - Stock Options $ / shares in Units, shares in Thousands, $ in Thousands	9 Months Ended
	Sep. 30, 2023 USD ($) $ / shares shares
Options Outstanding [Roll Forward]
Outstanding, beginning balance (in shares) \| shares	1,481
Options granted (in shares) \| shares	0
Options exercised (in shares) \| shares	(436)
Options forfeited or expired (in shares) \| shares	(72)
Outstanding, ending balance (in shares) \| shares	973
Options Outstanding, Weighted Average Exercise Price [Roll Forward]
Outstanding, beginning balance, weighted average exercise price (in USD per share) \| $ / shares	$ 47.75
Options granted, weighted average exercise price (in USD per share) \| $ / shares	0
Options exercised, weighted average exercise price (in USD per share) \| $ / shares	19.07
Options forfeited or expired, weighted average exercise price (in USD per share) \| $ / shares	141.71
Outstanding, ending balance, weighted average exercise price (in USD per share) \| $ / shares	$ 53.66
Outstanding, ending balance, weighted average remaining contractual life (years)	4 years 9 months 18 days
Outstanding, ending balance, aggregate intrinsic value \| $	$ 27,290

Financial Statement Components

9 Months Ended

Sep. 30, 2023

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Financial Statement Components

Cash and cash equivalents consisted of the following (in thousands):


	September 30, 2023		December 31, 2022
Cash	$	81,583	$	123,260
Certificates of deposit	249		—
Money market funds	34,026		37,560
U.S. treasury securities	11,970		19,700

Total cash and cash equivalents	$	127,828	$	180,520

Accounts receivable, net consisted of the following (in thousands):


	September 30, 2023		December 31, 2022
Trade accounts receivable	$	83,122	$	77,621
Unbilled trade accounts receivable, net of advance client deposits	11,567		10,135
Allowance for credit losses	(253)		(262)
Accounts receivable, net	$	94,436	$	87,494

Prepaid expenses and other current assets consisted of the following (in thousands):


	September 30, 2023		December 31, 2022
Prepaid expenses	$	26,325	$	17,151
Other current assets	8,424		9,159
Contract assets	2,878		3,401

Prepaid expenses and other current assets	$	37,627	$	29,711

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


	September 30, 2023		December 31, 2022
Computer and network equipment	$	149,051	$	148,789
Computer software	56,498		50,955
Internal-use software development costs	14,419		6,111
Furniture and fixtures	4,690		3,326
Leasehold improvements	6,042		6,574
Property and equipment	230,700		215,755
Accumulated depreciation and amortization	(128,671)		(114,534)
Property and equipment, net	$	102,029	$	101,221

Depreciation and amortization expense associated with property and equipment was $9.3 million and $26.7 million for the three and nine months ended September 30, 2023, respectively. Depreciation and amortization expense associated with property and equipment was $8.3 million and $24.8 million for the three and nine months ended September 30, 2022, respectively.

Property and equipment capitalized under finance lease obligations consists primarily of computer and network equipment and was immaterial as of September 30, 2023 and December 31, 2022.

Other assets consisted of the following (in thousands):


	September 30, 2023		December 31, 2022
Other assets	$	11,069	$	5,081
Equity investment in a privately-held company	2,000		2,000
Deferred tax assets	3,534		3,976
Total	$	16,603	$	11,057

Accrued and other current liabilities consisted of the following (in thousands):


	September 30, 2023		December 31, 2022
Accrued expenses	$	20,051	$	19,343
Accrued compensation and benefits	39,460		33,749

Accrued and other current liabilities	$	59,511	$	53,092

Other long-term liabilities consisted of the following (in thousands):


	September 30, 2023		December 31, 2022
Deferred revenue	$	1,558	$	1,178
Deferred tax liabilities	463		157
Other long-term liabilities	5,105		1,745

Other long-term liabilities	$	7,126	$	3,080

Investments and Fair Value Measurements - Narrative (Details) - USD ($)	Sep. 30, 2023	Dec. 31, 2022	Feb. 28, 2022
Debt Instrument [Line Items]
Equity investment in a privately-held company	$ 2,000,000	$ 2,000,000	$ 2,000,000
Nonrecurring
Debt Instrument [Line Items]
Assets measured at fair value on nonrecurring basis	0	0
Liabilities measured at fair value on nonrecurring basis	0	0
Convertible Senior Notes, Due 2023 \| Level 2 \| Convertible Debt
Debt Instrument [Line Items]
Fair value of long-term debt		300,000
Convertible Senior Notes, Due 2025 \| Level 2 \| Convertible Debt
Debt Instrument [Line Items]
Fair value of long-term debt	$ 698,500,000	$ 687,100,000

Description of Business and Summary of Significant Accounting Policies	9 Months Ended
	Sep. 30, 2023
Accounting Policies [Abstract]
Description of Business and Summary of Significant Accounting Policies	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, 2022. 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. 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 assets acquired and 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 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, 2022 as filed with the SEC on February 24, 2023. 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 statements of cash flows.

Geographical Information - Schedule of Revenue and Property and Equipment by Geographic Region (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2023	Sep. 30, 2022	Sep. 30, 2023	Sep. 30, 2022	Dec. 31, 2022
Revenues from External Customers and Long-Lived Assets
Total revenue	$ 230,105	$ 198,342	$ 671,426	$ 570,501
Property and equipment, net	102,029		102,029		$ 101,221
United States
Revenues from External Customers and Long-Lived Assets
Total revenue	205,679	179,306	599,259	517,537
Property and equipment, net	95,175		95,175		92,659
International
Revenues from External Customers and Long-Lived Assets
Total revenue	24,426	$ 19,036	72,167	$ 52,964
Property and equipment, net	$ 6,854		$ 6,854		$ 8,562

- Definition

Amount, excluding tax collected from customer, of revenue from satisfaction of performance obligation by transferring promised good or service to customer. Tax collected from customer is tax assessed by governmental authority that is both imposed on and concurrent with specific revenue-producing transaction, including, but not limited to, sales, use, value added and excise.

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+ Details

Stockholders' Equity - Common Stock Reserved for Future Issuance (Details) shares in Thousands	Sep. 30, 2023 shares
Class of Stock
Total shares of common stock reserved (in shares)	25,243
2014 Plan
Class of Stock
Total shares of common stock reserved (in shares)	15,816
Stock Options
Class of Stock
Total shares of common stock reserved (in shares)	973
RSUs (includes PRSUs)
Class of Stock
Total shares of common stock reserved (in shares)	4,378
Shares available for future issuance under ESPP
Class of Stock
Total shares of common stock reserved (in shares)	4,076

- Definition

Line items represent financial concepts included in a table. These concepts are used to disclose reportable information associated with domain members defined in one or many axes to the table.

+ References

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Reference 2: http://www.xbrl.org/2003/role/recommendedDisclosureRef
-Topic 272
-SubTopic 10
-Name Accounting Standards Codification
-Section 45
-Paragraph 3
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147483014/272-10-45-3

Reference 3: http://www.xbrl.org/2003/role/disclosureRef
-Topic 272
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 1
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482987/272-10-50-1

Reference 4: http://www.xbrl.org/2009/role/commonPracticeRef
-Topic 235
-SubTopic 10
-Name Accounting Standards Codification
-Section S99
-Paragraph 1
-Subparagraph (SX 210.4-08(d))
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-URI https://asc.fasb.org//1943274/2147480678/235-10-S99-1

Reference 5: http://www.xbrl.org/2003/role/disclosureRef
-Topic 505
-SubTopic 10
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-Subparagraph (a)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481112/505-10-50-13

Reference 6: http://www.xbrl.org/2003/role/disclosureRef
-Topic 505
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 13
-Subparagraph (b)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481112/505-10-50-13

Reference 7: http://www.xbrl.org/2003/role/disclosureRef
-Topic 505
-SubTopic 10
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-Section 50
-Paragraph 13
-Subparagraph (e)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481112/505-10-50-13

Reference 8: http://www.xbrl.org/2003/role/disclosureRef
-Topic 505
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-Name Accounting Standards Codification
-Section 50
-Paragraph 13
-Subparagraph (h)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481112/505-10-50-13

Reference 9: http://www.xbrl.org/2003/role/disclosureRef
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-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 14
-Subparagraph (b)
-Publisher FASB
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Reference 10: http://www.xbrl.org/2003/role/disclosureRef
-Topic 505
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 18
-Subparagraph (c)
-Publisher FASB
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Reference 11: http://www.xbrl.org/2003/role/disclosureRef
-Topic 210
-SubTopic 10
-Name Accounting Standards Codification
-Section S99
-Paragraph 1
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-Publisher FASB
-URI https://asc.fasb.org//1943274/2147480566/210-10-S99-1

Reference 12: http://www.xbrl.org/2003/role/disclosureRef
-Topic 210
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-Paragraph 1
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-Publisher FASB
-URI https://asc.fasb.org//1943274/2147480566/210-10-S99-1

Reference 13: http://www.xbrl.org/2003/role/disclosureRef
-Topic 505
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 2
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481112/505-10-50-2

Reference 14: http://www.xbrl.org/2003/role/disclosureRef
-Topic 210
-SubTopic 10
-Name Accounting Standards Codification
-Section S99
-Paragraph 1
-Subparagraph (SX 210.5-02(29))
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147480566/210-10-S99-1

Reference 15: http://www.xbrl.org/2003/role/disclosureRef
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-Name Accounting Standards Codification
-Section S99
-Paragraph 3
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Reference 16: http://www.xbrl.org/2003/role/disclosureRef
-Topic 946
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Reference 17: http://www.xbrl.org/2003/role/disclosureRef
-Topic 946
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-Paragraph 3
-Subparagraph (SX 210.6-03(i)(2)(i))
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147479886/946-10-S99-3

Reference 18: http://www.xbrl.org/2003/role/disclosureRef
-Topic 946
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-Section S99
-Paragraph 3
-Subparagraph (SX 210.6-03(i)(2)(ii))
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147479886/946-10-S99-3

+ Details

Debt

9 Months Ended

Sep. 30, 2023

Debt Disclosure [Abstract]

Debt

2025 Convertible Senior Notes and Related Capped Call Transactions

In May and June 2020, the Company issued $747.5 million aggregate principal amount of 2025 convertible senior notes in a private offering, which aggregate principal amount included the exercise in full of the initial purchasers’ option to purchase up to an additional $97.5 million principal amount of the 2025 convertible senior notes. The 2025 convertible senior notes mature on June 1, 2025 and bear interest at a fixed rate of 0.500% per

annum, payable semiannually in arrears on June 1 and December 1 of each year, beginning on December 1, 2020. The total net proceeds from the issuance of the 2025 convertible senior notes, after deducting initial purchasers' discounts and commissions and estimated debt issuance costs, were approximately $728.8 million.

Each $1,000 principal amount of the 2025 convertible senior notes is initially convertible into 7.4437 shares of the Company’s common stock (the “2025 Conversion Option”), which is equivalent to an initial conversion price of approximately $134.34 per share of common stock, subject to adjustment upon the occurrence of specified events. The initial conversion price represents a premium of approximately 30% to the $103.34 per share closing price of the Company’s common stock on The Nasdaq Global Market on May 21, 2020. The 2025 convertible senior notes are convertible, in multiples of $1,000 principal amount, at the option of the holders prior to the close of business on the business day immediately preceding March 1, 2025, only under the following circumstances: (1) during any calendar quarter commencing after the calendar quarter ending on September 30, 2020 (and only during such calendar quarter), if the last reported sale price of the Company’s common stock for at least 20 trading days (whether or not consecutive) during a period of 30 consecutive trading days ending on, and including, the last trading day of the immediately preceding calendar quarter is greater than or equal to 130% of the conversion price on each applicable trading day; (2) during the five business day period after any five consecutive trading day period (the “2025 Measurement Period”) in which the trading price (as defined in the 2025 Indenture governing the 2025 convertible senior notes) per $1,000 principal amount of the 2025 convertible senior notes for each trading day of the 2025 Measurement Period was less than 98% of the product of the last reported sale price of the Company’s common stock and the conversion rate in effect on each such trading day; (3) if the Company calls any or all of the 2025 convertible senior notes for redemption, at any time prior to the close of business on the second scheduled trading day immediately preceding the redemption date; or (4) upon the occurrence of specified corporate events. On or after March 1, 2025 until the close of business on the second scheduled trading day immediately preceding the maturity date, holders may convert all or any portion of their 2025 convertible senior notes, in multiples of $1,000 principal amount, at the option of the holder regardless of the foregoing circumstances.

Upon conversion, the Company will pay or deliver, as the case may be, cash, shares of the Company’s common stock or a combination of cash and shares of the Company’s common stock, at the Company’s election. If the Company undergoes a fundamental change (as defined in the indenture governing the 2025 convertible senior notes), subject to certain conditions, holders may require the Company to repurchase for cash all or any portion of their 2025 convertible senior notes, in principal amounts of $1,000 or a multiple thereof, at a fundamental change repurchase price equal to 100% of the principal amount of the 2025 convertible senior notes to be repurchased, plus accrued and unpaid interest, if any, to, but excluding, the fundamental change repurchase date. In addition, following certain corporate events or if the Company issues a notice of redemption, it will, under certain circumstances, increase the conversion rate for holders who elect to convert their notes in connection with such corporate event or during the relevant redemption period.

There have been no changes to the initial conversion price of the 2025 convertible senior notes since issuance. The closing market price of the Company's common stock of $64.30 per share on September 29, 2023, the last trading day during the three months ended September 30, 2023, was below $174.64 per share, which represents 130% of the initial conversion price of $134.34 per share. Additionally, the last reported sale price of the Company’s common stock for at least 20 trading days (whether or not consecutive) during a period of 30 consecutive trading days ending on, and including, the last trading day, September 29, 2023, was not greater than or equal to 130% of the initial conversion price. As such, during the three months ended September 30, 2023, the conditions allowing holders of the 2025 convertible senior notes to convert were not met. The 2025 convertible senior notes are therefore not convertible during the three months ending December 31, 2023.

The 2025 convertible senior notes became redeemable at the Company's option on June 6, 2023. The Company may redeem for cash all or any portion of the 2025 convertible senior notes, at its option, prior to March 1, 2025, if the last reported sale price of its common stock has been at least 130% of the conversion price then in effect for at least 20 trading days (whether or not consecutive) during any 30 consecutive trading day period (including the last trading day of such period) ending not more than two trading days immediately preceding the date on which the Company provides notice of redemption at a redemption price equal to 100% of the principal amount of the 2025 convertible senior notes to be redeemed, plus accrued and unpaid interest, if any, to, but excluding, the redemption date. No sinking fund is provided for the 2025 convertible senior notes. During the three months ended September 30, 2023, the conditions allowing the Company to redeem for cash all or any portion of the 2025 convertible senior notes were not met.

The 2025 convertible senior notes are the Company’s senior unsecured obligations and rank senior in right of payment to any of the Company’s indebtedness that is expressly subordinated in right of payment to the 2025 convertible senior notes; equal in right of payment to any of the Company’s unsecured indebtedness that is not so subordinated; effectively junior in right of payment to any of the Company’s secured indebtedness to the extent of

the value of the assets securing such indebtedness; and structurally junior to all indebtedness and other liabilities (including trade payables) of the Company’s subsidiaries.

The net carrying amount of the 2025 convertible senior notes as of September 30, 2023 and as of December 31, 2022 was as follows (in thousands):


	September 30, 2023		December 31, 2022
Principal	$	747,500	$	747,500

Unamortized issuance costs	(6,331)		(9,124)
Net carrying amount	$	741,169	$	738,376

Interest expense related to the 2025 convertible senior notes was as follows (in thousands):


	Three Months Ended				Nine Months Ended
	September 30, 2023		September 30, 2022		September 30, 2023		September 30, 2022
Contractual interest expense	$	934	$	935	$	2,803	$	2,804

Amortization of issuance costs	954		944		2,793		2,765
Total interest expense	$	1,888	$	1,879	$	5,596	$	5,569

In connection with the issuance of the 2025 convertible senior notes, the Company entered into privately negotiated capped call transactions (the “2025 Capped Call Transactions”) with certain financial institutions. The initial cap price of the 2025 Capped Call Transactions was $206.68 per share and is subject to certain adjustments under the terms of the 2025 Capped Call Transactions. The 2025 Capped Call Transactions cover, subject to anti-dilution adjustments, approximately 5.6 million shares of the Company’s common stock.

2023 Convertible Senior Notes and Related Capped Call Transactions

In May 2018, the Company issued $258.8 million aggregate principal amount of the 2023 convertible senior notes in a private offering. The total net proceeds from the offering, after deducting initial purchasers' discounts and commissions and estimated debt issuance costs, was approximately $250.8 million.

In May 2020, the Company used part of the net proceeds from the issuance of the 2025 convertible senior notes to repurchase, exchange or otherwise retire approximately $181.0 million aggregate principal amount of the 2023 convertible senior notes in privately-negotiated transactions for aggregate consideration of $449.6 million, consisting of $181.0 million in cash and 2,723,581 shares of the Company’s common stock (the "2023 Note Repurchase Transactions").

The 2023 convertible senior notes matured on May 1, 2023, and were settled in a combination of cash and shares of the Company’s common stock. Prior to maturity, the 2023 convertible senior notes bore interest at a fixed rate of 0.125% per annum, payable semiannually in arrears on May 1 and November 1 of each year. There were no changes to the 2023 convertible senior notes’ initial conversion price of approximately $40.82 per share of common stock since issuance.

The net carrying amount of the 2023 convertible senior notes as of December 31, 2022 was $0.2 million. There were no 2023 convertible senior notes outstanding as of September 30, 2023. Interest expense related to the 2023 convertible senior notes was immaterial for both the three and nine months ended September 30, 2023 and the three and nine months ended September 30, 2022.

In connection with the issuance of the 2023 convertible senior notes, the Company entered into privately negotiated capped call transactions (the “2023 Capped Call Transactions”) with certain financial institutions. The initial cap price of the 2023 Capped Call Transactions was $62.80 per share. The 2023 Capped Call Transactions covered approximately 6.3 million shares of the Company’s common stock. Upon maturity, the outstanding capped calls associated with the repurchase, early settlements and settlements at maturity of $194.7 million of the 2023 convertible senior notes were settled, which resulted in the Company receiving 370,877 shares of the Company’s common stock and $74.5 million.

- Definition

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

+ References

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

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

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

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

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

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

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

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

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

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

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

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

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

+ Details

Net Loss Per Share

9 Months Ended

Sep. 30, 2023

Earnings Per Share [Abstract]

Net Loss Per Share

Net Loss Per ShareBasic net loss per share is calculated by dividing net loss by the weighted average number of shares of common stock outstanding during the period, and excludes any dilutive effects of employee stock-based awards and potential shares upon conversion of the convertible senior notes. Diluted net loss per share is computed giving effect

to all potentially dilutive shares of common stock, including common stock issuable upon exercise of stock options, vesting of RSUs and PRSUs, and shares of common stock issuable upon conversion of convertible senior notes. As the Company had net losses for the three and nine months ended September 30, 2023 and 2022, all potentially issuable shares of common stock were determined to be anti-dilutive.

The following table presents the calculation of basic and diluted net loss per share (in thousands, except per share data):



	Three Months Ended				Nine Months Ended
	September 30, 2023		September 30, 2022		September 30, 2023		September 30, 2022
Net loss	$	(20,419)	$	(23,207)	$	(69,406)	$	(80,997)
Weighted-average shares used in computing basic and diluted net loss per share	72,356		70,232		71,751		69,656
Basic and diluted net loss per share	$	(0.28)	$	(0.33)	$	(0.97)	$	(1.16)

The following securities were excluded from the calculation of diluted net loss per share because their effect would have been anti-dilutive (in thousands):



	Three Months Ended		Nine Months Ended
	September 30, 2023	September 30, 2022	September 30, 2023	September 30, 2022
Stock options	973	1,626	973	1,626
RSUs (includes PRSUs)	4,378	2,879	4,378	2,879
Convertible senior notes	5,564	5,569	5,566	5,725

Total	10,915	10,074	10,917	10,230

The Company used the if-converted method for calculating any potential dilutive effect of its convertible senior notes for the three and nine months ended September 30, 2023 and 2022. Under this method, the Company calculates diluted earnings per share under both the cash and share settlement assumptions to determine which is more dilutive. If share settlement is more dilutive, the Company calculates diluted earnings per share assuming that all of the convertible senior notes were converted solely into shares of common stock at the beginning of the reporting period. The potential impact upon the conversion of the convertible senior notes were excluded from the calculation of diluted net loss per share for the three and nine months ended September 30, 2023 and 2022 because the effect would have been anti-dilutive.

Leases - Balance Sheet Disclosures (Details) - USD ($) $ in Thousands	Sep. 30, 2023	Dec. 31, 2022
Operating leases
Operating lease right-of-use assets	$ 41,522	$ 44,120
Operating lease liabilities	11,454	10,626
Operating lease liabilities — less current portion	38,336	41,389
Total operating lease liabilities	49,790	52,015
Finance leases
Property and equipment, gross	4,612	0
Property and equipment, net	$ 4,612	$ 0
Finance Lease, Right-of-Use Asset, Balance Sheet Location [Extensible List]	Property and equipment, net	Property and equipment, net
Finance lease liabilities	$ 1,617	$ 0
Finance lease liabilities — less current portion	3,048	0
Total finance lease liabilities	4,665	0
Fixed Assets, Excluding New Finance Lease
Finance leases
Property and equipment, gross	29,974	36,282
Less: accumulated depreciation and amortization	(29,974)	(36,203)
Property and equipment, net	$ 0	$ 79

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS - USD ($) shares in Thousands, $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2023	Sep. 30, 2022	Sep. 30, 2023	Sep. 30, 2022
Income Statement [Abstract]
Revenue	$ 230,105	$ 198,342	$ 671,426	$ 570,501
Cost of revenue	111,080	94,111	320,197	271,207
Gross profit	119,025	104,231	351,229	299,294
Operating expenses:
Research and development	40,391	34,113	117,709	104,929
Sales and marketing	73,366	67,353	223,757	196,062
General and administrative	31,006	24,496	89,741	72,634
Total operating expenses	144,763	125,962	431,207	373,625
Loss from operations	(25,738)	(21,731)	(79,978)	(74,331)
Other income (expense), net:
Interest expense	(1,972)	(1,879)	(5,683)	(5,606)
Interest income and other	8,233	982	18,477	2,107
Total other income (expense), net	6,261	(897)	12,794	(3,499)
Loss before income taxes	(19,477)	(22,628)	(67,184)	(77,830)
Provision for income taxes	942	579	2,222	3,167
Net loss	$ (20,419)	$ (23,207)	$ (69,406)	$ (80,997)
Net loss per share:
Basic (in USD per share)	$ (0.28)	$ (0.33)	$ (0.97)	$ (1.16)
Diluted (in USD per share)	$ (0.28)	$ (0.33)	$ (0.97)	$ (1.16)
Shares used in computing net loss per share:
Basic (in shares)	72,356	70,232	71,751	69,656
Diluted (in shares)	72,356	70,232	71,751	69,656
Comprehensive Loss:
Net loss	$ (20,419)	$ (23,207)	$ (69,406)	$ (80,997)
Other comprehensive income (loss)	599	433	1,890	(3,814)
Comprehensive loss	$ (19,820)	$ (22,774)	$ (67,516)	$ (84,811)

Leases (Tables)

9 Months Ended

Sep. 30, 2023

Leases [Abstract]

Schedule of Lease Expenses and Terms

The components of lease expenses were as follows (in thousands):


	Three Months Ended				Nine Months Ended
	September 30, 2023		September 30, 2022		September 30, 2023		September 30, 2022
Operating lease cost	$	3,360	$	2,969	$	10,112	$	8,738
Finance lease cost:
Amortization of right-of-use assets	$	491	$	141	$	570	$	609
Interest on finance lease liabilities	83		—		83		—
Total finance lease cost	$	574	$	141	$	653	$	609

Supplemental cash flow information related to leases was as follows (in thousands):


	Three Months Ended				Nine Months Ended
	September 30, 2023		September 30, 2022		September 30, 2023		September 30, 2022
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash used in operating leases	$	(3,001)	$	(2,951)	$	(8,319)	$	(8,489)
Financing cash used in finance leases	(496)		—		(496)		—
Right of use assets obtained in exchange for lease obligations:
Operating leases	795		3,899		6,273		4,483
Finance leases	2,936		—		5,103		—

Weighted average remaining terms were as follows (in years):


	September 30, 2023	December 31, 2022
Weighted average remaining lease term
Operating leases	5.8	6.4
Finance leases	2.8	—

Weighted average discount rates were as follows:


	September 30, 2023		December 31, 2022
Weighted average discount rate
Operating leases	3.7	%	3.4	%
Finance leases	6.0	%	—	%

Schedule of Balance Sheet Information Related to Leases

Supplemental balance sheet information related to leases was as follows (in thousands):


	September 30, 2023		December 31, 2022
Operating leases
Operating lease right-of-use assets	$	41,522	$	44,120

Operating lease liabilities	$	11,454	$	10,626
Operating lease liabilities — less current portion	38,336		41,389
Total operating lease liabilities	$	49,790	$	52,015
Finance leases
Finance lease right-of-use assets	$	4,612	$	—

Property and equipment, gross	$	29,974	$	36,282
Less: accumulated depreciation and amortization	(29,974)		(36,203)
Property and equipment, net	$	—	$	79

Finance lease liabilities	$	1,617	$	—
Finance lease liabilities — less current portion	3,048		—
Total finance lease liabilities	$	4,665	$	—

Schedule of Operating Lease Maturities

Maturities of lease liabilities were as follows (in thousands):


Year Ending December 31,	Operating Leases		Finance Leases
Remaining 2023	$	3,709	$	452
2024	11,997		1,848
2025	9,171		1,848
2026	6,987		898
2027	5,929		—
Thereafter	17,281		—
Total future minimum lease payments	55,074		5,046
Less: imputed interest	(5,284)		(381)
Total	$	49,790	$	4,665

Revenue - Narrative (Details) $ in Millions	3 Months Ended	9 Months Ended
Revenue - Narrative (Details) $ in Millions	Sep. 30, 2023 USD ($)	Sep. 30, 2023 USD ($)
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]
Contract revenue recognized	$ 4.3	$ 45.8
Contract acquisition costs
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]
Amortization period of capitalized contract cost (in years)	5 years	5 years

Leases - Weighted Average Remaining Terms and Discount Rates (Details)	Sep. 30, 2023	Dec. 31, 2022
Leases [Abstract]
Operating leases (in years)	5 years 9 months 18 days	6 years 4 months 24 days
Finance leases (in years)	2 years 9 months 18 days
Operating leases (in percent)	3.70%	3.40%
Finance leases (in percent)	6.00%	0.00%

Revenue

9 Months Ended

Sep. 30, 2023

Revenue from Contract with Customer [Abstract]

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):


	September 30, 2023		December 31, 2022
Accounts receivable, net	$	94,436	$	87,494

Deferred contract acquisition costs, net:
Current	$	58,320	$	47,242
Non-current	132,124		114,880
Total deferred contract acquisition costs, net	$	190,444	$	162,122

Contract assets and contract liabilities:
Contract assets (included in prepaid expenses and other current assets)	$	2,878	$	3,401
Contract liabilities (deferred revenue)	(64,565)		(57,816)
Noncurrent contract liabilities (deferred revenue) (included in other long-term liabilities)	(1,558)		(1,178)
Net contract liabilities	$	(63,245)	$	(55,593)

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 nine months ended September 30, 2023, the Company recognized revenue of $4.3 million and $45.8 million, respectively, related to its contract liabilities at December 31, 2022.

Remaining Performance Obligations

As of September 30, 2023, 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 $1,046.3 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 excludes 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.

- Definition

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

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Topic 606
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 9
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147479806/606-10-50-9

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Topic 606
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-Name Accounting Standards Codification
-Section 50
-Paragraph 10
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147479806/606-10-50-10

Reference 3: http://www.xbrl.org/2003/role/disclosureRef
-Topic 606
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-Name Accounting Standards Codification
-Section 50
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-Publisher FASB
-URI https://asc.fasb.org//1943274/2147479806/606-10-50-15

Reference 4: http://www.xbrl.org/2003/role/disclosureRef
-Topic 606
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-Name Accounting Standards Codification
-Section 50
-Paragraph 12
-Subparagraph (a)
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-URI https://asc.fasb.org//1943274/2147479806/606-10-50-12

Reference 5: http://www.xbrl.org/2003/role/disclosureRef
-Topic 606
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-URI https://asc.fasb.org//1943274/2147479806/606-10-50-12

Reference 6: http://www.xbrl.org/2003/role/disclosureRef
-Topic 606
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-Name Accounting Standards Codification
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-URI https://asc.fasb.org//1943274/2147479806/606-10-50-12

Reference 7: http://www.xbrl.org/2003/role/disclosureRef
-Topic 606
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-URI https://asc.fasb.org//1943274/2147479806/606-10-50-12

Reference 8: http://www.xbrl.org/2003/role/disclosureRef
-Topic 606
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-Name Accounting Standards Codification
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-Subparagraph (e)
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-URI https://asc.fasb.org//1943274/2147479806/606-10-50-12

Reference 9: http://www.xbrl.org/2003/role/disclosureRef
-Topic 606
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-Name Accounting Standards Codification
-Section 50
-Paragraph 13
-Subparagraph (b)(2)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147479806/606-10-50-13

Reference 10: http://www.xbrl.org/2003/role/disclosureRef
-Name Accounting Standards Codification
-Topic 606
-Publisher FASB
-URI https://asc.fasb.org//606/tableOfContent

+ Details

Geographical Information

9 Months Ended

Sep. 30, 2023

Segment Reporting [Abstract]

Geographical Information

The following table summarizes revenues by geographic region based on client billing address (in thousands):



	Three Months Ended				Nine Months Ended
	September 30, 2023		September 30, 2022		September 30, 2023		September 30, 2022
United States	$	205,679	$	179,306	$	599,259	$	517,537
International	24,426		19,036		72,167		52,964
Total revenue	$	230,105	$	198,342	$	671,426	$	570,501

The following table summarizes total property and equipment, net in the respective locations (in thousands):



	September 30, 2023		December 31, 2022
United States	$	95,175	$	92,659
International	6,854		8,562
Property and equipment, net	$	102,029	$	101,221

- Definition

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

+ References

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

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Topic 280
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-Name Accounting Standards Codification
-Section 50
-Paragraph 15
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482810/280-10-50-15

Reference 3: http://www.xbrl.org/2003/role/disclosureRef
-Topic 280
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-Name Accounting Standards Codification
-Section 50
-Paragraph 31
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482810/280-10-50-31

Reference 4: http://www.xbrl.org/2003/role/disclosureRef
-Topic 280
-SubTopic 10
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-Section 50
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-Subparagraph (d)
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-URI https://asc.fasb.org//1943274/2147482810/280-10-50-32

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

Reference 6: http://www.xbrl.org/2003/role/disclosureRef
-Topic 280
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-URI https://asc.fasb.org//1943274/2147482810/280-10-50-32

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

Reference 8: http://www.xbrl.org/2003/role/disclosureRef
-Topic 280
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-URI https://asc.fasb.org//280/tableOfContent

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

Reference 10: http://www.xbrl.org/2003/role/disclosureRef
-Topic 280
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-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482810/280-10-50-34

Reference 11: http://www.xbrl.org/2003/role/disclosureRef
-Topic 280
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-Section 50
-Paragraph 41
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482810/280-10-50-41

Reference 12: http://www.xbrl.org/2003/role/disclosureRef
-Topic 280
-SubTopic 10
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-Section 50
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-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482810/280-10-50-21

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

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

+ Details

Acquisition (Tables)

9 Months Ended

Sep. 30, 2023

Business Combination and Asset Acquisition [Abstract]

Schedule of Recognized Identified Assets Acquired and Liabilities Assumed

The following table presents the preliminary allocation of the purchase price at the acquisition date (in thousands):


Cash	$	1,424
Tangible assets acquired	383
Other assets acquired	3,002
Acquired technology	19,100
Customer relationships	2,550
Trademarks	500
Goodwill	61,992
Total assets acquired	88,951

Liabilities assumed	(6,939)
Total	$	82,012

Leases - Lease Maturities (Details) - USD ($) $ in Thousands	Sep. 30, 2023	Dec. 31, 2022
Operating Leases
Remaining 2023	$ 3,709
2024	11,997
2025	9,171
2026	6,987
2027	5,929
Thereafter	17,281
Total future minimum lease payments	55,074
Less: imputed interest	(5,284)
Total	49,790	$ 52,015
Finance Leases
Remaining 2023	452
2024	1,848
2025	1,848
2026	898
2027	0
Thereafter	0
Total future minimum lease payments	5,046
Less: imputed interest	(381)
Total	$ 4,665	$ 0

Revenue - Remaining Performance Obligations (Details) $ in Millions	9 Months Ended
	Sep. 30, 2023 USD ($)
Revenue from Contract with Customer [Abstract]
Performance obligation	$ 1,046.3
Performance obligation, description of timing	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 excludes 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.
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2023-10-01
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Performance obligation satisfaction period (in months)	24 months
Remaining performance obligation expected to be recognized (as a percent)	75.00%

Cover Page - shares	9 Months Ended
Cover Page - shares	Sep. 30, 2023	Oct. 27, 2023
Cover [Abstract]
Document Type	10-Q
Document Quarterly Report	true
Document Period End Date	Sep. 30, 2023
Document Transition Report	false
Entity File Number	001-36383
Entity Registrant Name	Five9, Inc.
Entity Incorporation, State or Country Code	DE
Entity Tax Identification Number	94-3394123
Entity Address, Address Line One	3001 Bishop Drive
Entity Address, Address Line Two	Suite 350
Entity Address, City or Town	San Ramon
Entity Address, State or Province	CA
Entity Address, Postal Zip Code	94583
City Area Code	925
Local Phone Number	201-2000
Title of 12(b) Security	Common stock, par value $0.001 per share
Trading Symbol	FIVN
Security Exchange Name	NASDAQ
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		72,695,935
Entity Central Index Key	0001288847
Current Fiscal Year End Date	--12-31
Document Fiscal Year Focus	2023
Document Fiscal Period Focus	Q3
Amendment Flag	false

Investments and Fair Value Measurements (Tables)

9 Months Ended

Sep. 30, 2023

Fair Value Disclosures [Abstract]

Schedule of Marketable Investments

The Company’s marketable investments have been classified and accounted for as available-for-sale. The Company’s intent is that all marketable investments are available for use in its current operations, including marketable investments with maturity dates greater than one year from September 30, 2023. The Company’s

marketable investments as of September 30, 2023 and December 31, 2022 were as follows (in thousands):



	September 30, 2023
Short-Term Marketable Investments	Cost		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value
Certificates of deposit	$	1,206	$	—	$	—	$	1,206
U.S. treasury securities	263,979		10		(903)		263,086
U.S. agency securities	267,458		—		(659)		266,799
Commercial paper	31,412		1		(10)		31,403

Corporate bonds	10,056		—		(88)		9,968
Total	$	574,111	$	11	$	(1,660)	$	572,462



	December 31, 2022
Short-Term Marketable Investments	Cost		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value
Certificates of deposit	$	747	$	—	$	(13)	$	734
U.S. treasury securities	186,776		8		(1,382)		185,402
U.S. agency and government-sponsored securities	197,597		29		(1,660)		195,966
Commercial paper	25,386		—		—		25,386
Municipal bonds	22,764		—		(145)		22,619
Corporate bonds	3,658		—		(22)		3,636
Total	$	436,928	$	37	$	(3,222)	$	433,743

	December 31, 2022
Long-term Marketable Investments	Cost		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value


U.S. agency securities	$	885	$	—	$	—	$	885


Total	$	885	$	—	$	—	$	885

Schedule of Gross Unrealized Losses and Fair Value of Marketable Investments

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 September 30, 2023 and December 31, 2022 (in thousands):


	September 30, 2023				December 31, 2022

	Gross Unrealized Losses		Fair Value		Gross Unrealized Losses		Fair Value
Certificates of deposit	$	—	$	—	$	(13)	$	734
U.S. treasury securities	(903)		123,889		(1,382)		126,534
U.S. agency securities	(659)		266,183		(1,660)		172,458
Commercial paper	(10)		28,284		—		—
Municipal bonds	—		—		(145)		12,623
Corporate bonds	(88)		9,969		(22)		3,636
Total	$	(1,660)	$	428,325	$	(3,222)	$	315,985

Schedule of Assets Carried at Fair Value

The amortized cost and fair value of the Company’s marketable investments by contractual maturity as of September 30, 2023 were as follows (in thousands):


	Cost		Fair Value
Due within one year	$	456,826	$	456,282
Due after one year through two years	117,285		116,180
Total	$	574,111	$	572,462

The following tables set forth the Company’s assets measured at fair value by level within the fair value hierarchy (in thousands):


	September 30, 2023
	Level 1		Level 2		Level 3		Total
Assets
Cash equivalents
Money market funds	$	34,026	$	—	$	—	$	34,026
Certificates of deposit	—		249		—		249
U.S. treasury securities	11,970		—		—		11,970




Total cash equivalents	$	45,996	$	249	$	—	$	46,245

Marketable investments
Certificates of deposit	$	—	$	1,206	$	—	$	1,206
U.S. treasury securities	263,086		—		—		263,086
U.S. agency securities and government sponsored securities	—		266,799		—		266,799
Commercial paper	—		31,403		—		31,403

Corporate bonds	—		9,968		—		9,968
Total marketable investments	$	263,086	$	309,376	$	—	$	572,462



	December 31, 2022
	Level 1		Level 2		Level 3		Total
Assets
Cash equivalents
Money market funds	$	37,560	$	—	$	—	$	37,560
U.S. treasury securities	19,700		—		—		19,700


Total cash equivalents	$	57,260	$	—	$	—	$	57,260

Marketable investments (short and long-term)
Certificates of deposit	$	—	$	734	$	—	$	734
U.S. treasury securities	185,402		—		—		185,402
U.S. agency and government-sponsored securities	—		196,851		—		196,851
Commercial paper	—		25,386		—		25,386
Municipal bonds	—		22,619		—		22,619
Corporate bonds	—		3,636		—		3,636
Total marketable investments	$	185,402	$	249,226	$	—	$	434,628

- Definition

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

+ References

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

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

Reference 3: http://www.xbrl.org/2009/role/commonPracticeRef
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-Section 50
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-URI https://asc.fasb.org//1943274/2147481800/320-10-50-2

Reference 4: http://www.xbrl.org/2009/role/commonPracticeRef
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-Name Accounting Standards Codification
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Reference 5: http://www.xbrl.org/2009/role/commonPracticeRef
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-Paragraph 2
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-URI https://asc.fasb.org//1943274/2147481800/320-10-50-2

Reference 6: http://www.xbrl.org/2009/role/commonPracticeRef
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Reference 8: http://www.xbrl.org/2009/role/commonPracticeRef
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Reference 10: http://www.xbrl.org/2009/role/commonPracticeRef
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-URI https://asc.fasb.org//1943274/2147481800/320-10-50-3

Reference 11: http://www.xbrl.org/2009/role/commonPracticeRef
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-URI https://asc.fasb.org//1943274/2147481800/320-10-50-3

Reference 12: http://www.xbrl.org/2009/role/commonPracticeRef
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-SubTopic 10
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-Section 50
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-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481800/320-10-50-3

+ Details

Investments and Fair Value Measurements - Schedule of Assets Carried at Fair Value (Details) - USD ($) $ in Thousands	Sep. 30, 2023	Dec. 31, 2022
Assets
Cash equivalents	$ 46,245	$ 57,260
Marketable investments	572,462	434,628
Level 1
Assets
Cash equivalents	45,996	57,260
Marketable investments	263,086	185,402
Level 2
Assets
Cash equivalents	249	0
Marketable investments	309,376	249,226
Level 3
Assets
Cash equivalents	0	0
Marketable investments	0	0
Certificates of deposit
Assets
Marketable investments	1,206	734
Certificates of deposit \| Level 1
Assets
Marketable investments	0	0
Certificates of deposit \| Level 2
Assets
Marketable investments	1,206	734
Certificates of deposit \| Level 3
Assets
Marketable investments	0	0
U.S. treasury securities
Assets
Marketable investments	263,086	185,402
U.S. treasury securities \| Level 1
Assets
Marketable investments	263,086	185,402
U.S. treasury securities \| Level 2
Assets
Marketable investments	0	0
U.S. treasury securities \| Level 3
Assets
Marketable investments	0	0
U.S. agency and government-sponsored securities
Assets
Marketable investments	266,799	196,851
U.S. agency and government-sponsored securities \| Level 1
Assets
Marketable investments	0	0
U.S. agency and government-sponsored securities \| Level 2
Assets
Marketable investments	266,799	196,851
U.S. agency and government-sponsored securities \| Level 3
Assets
Marketable investments	0	0
Commercial paper
Assets
Marketable investments	31,403	25,386
Commercial paper \| Level 1
Assets
Marketable investments	0	0
Commercial paper \| Level 2
Assets
Marketable investments	31,403	25,386
Commercial paper \| Level 3
Assets
Marketable investments	0	0
Municipal bonds
Assets
Marketable investments		22,619
Municipal bonds \| Level 1
Assets
Marketable investments		0
Municipal bonds \| Level 2
Assets
Marketable investments		22,619
Municipal bonds \| Level 3
Assets
Marketable investments		0
Corporate bonds
Assets
Marketable investments	9,968	3,636
Corporate bonds \| Level 1
Assets
Marketable investments	0	0
Corporate bonds \| Level 2
Assets
Marketable investments	9,968	3,636
Corporate bonds \| Level 3
Assets
Marketable investments	0	0
Money market funds
Assets
Cash equivalents	34,026	37,560
Money market funds \| Level 1
Assets
Cash equivalents	34,026	37,560
Money market funds \| Level 2
Assets
Cash equivalents	0	0
Money market funds \| Level 3
Assets
Cash equivalents	0	0
Certificates of deposit
Assets
Cash equivalents	249
Certificates of deposit \| Level 1
Assets
Cash equivalents	0
Certificates of deposit \| Level 2
Assets
Cash equivalents	249
Certificates of deposit \| Level 3
Assets
Cash equivalents	0
U.S. treasury securities
Assets
Cash equivalents	11,970	19,700
U.S. treasury securities \| Level 1
Assets
Cash equivalents	11,970	19,700
U.S. treasury securities \| Level 2
Assets
Cash equivalents	0	0
U.S. treasury securities \| Level 3
Assets
Cash equivalents	$ 0	$ 0

Leases - Narrative (Details)	9 Months Ended
Leases - Narrative (Details)	Sep. 30, 2023
Lessee, Lease, Description [Line Items]
Operating lease termination notice, period (in days)	30 days
Minimum
Lessee, Lease, Description [Line Items]
Operating lease, term of contract (in years)	1 year
Operating lease, extension term (in years)	1 year
Maximum
Lessee, Lease, Description [Line Items]
Operating lease, term of contract (in years)	8 years
Operating lease, extension term (in years)	5 years

Leases

9 Months Ended

Sep. 30, 2023

Leases [Abstract]

Leases

The Company has leases for offices, data centers and computer and networking equipment that expire at various dates through 2031. The Company’s leases have remaining terms of one to eight years, some of the leases include a Company option to extend the leases for up to one to five years, and some of the leases include the option to terminate the leases upon 30-days' notice. The Company does not separate lease and non-lease components for real estate operating leases.

The components of lease expenses were as follows (in thousands):


	Three Months Ended				Nine Months Ended
	September 30, 2023		September 30, 2022		September 30, 2023		September 30, 2022
Operating lease cost	$	3,360	$	2,969	$	10,112	$	8,738
Finance lease cost:
Amortization of right-of-use assets	$	491	$	141	$	570	$	609
Interest on finance lease liabilities	83		—		83		—
Total finance lease cost	$	574	$	141	$	653	$	609

Supplemental cash flow information related to leases was as follows (in thousands):


	Three Months Ended				Nine Months Ended
	September 30, 2023		September 30, 2022		September 30, 2023		September 30, 2022
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash used in operating leases	$	(3,001)	$	(2,951)	$	(8,319)	$	(8,489)
Financing cash used in finance leases	(496)		—		(496)		—
Right of use assets obtained in exchange for lease obligations:
Operating leases	795		3,899		6,273		4,483
Finance leases	2,936		—		5,103		—

Supplemental balance sheet information related to leases was as follows (in thousands):


	September 30, 2023		December 31, 2022
Operating leases
Operating lease right-of-use assets	$	41,522	$	44,120

Operating lease liabilities	$	11,454	$	10,626
Operating lease liabilities — less current portion	38,336		41,389
Total operating lease liabilities	$	49,790	$	52,015
Finance leases
Finance lease right-of-use assets	$	4,612	$	—

Property and equipment, gross	$	29,974	$	36,282
Less: accumulated depreciation and amortization	(29,974)		(36,203)
Property and equipment, net	$	—	$	79

Finance lease liabilities	$	1,617	$	—
Finance lease liabilities — less current portion	3,048		—
Total finance lease liabilities	$	4,665	$	—

Weighted average remaining terms were as follows (in years):


	September 30, 2023	December 31, 2022
Weighted average remaining lease term
Operating leases	5.8	6.4
Finance leases	2.8	—

Weighted average discount rates were as follows:


	September 30, 2023		December 31, 2022
Weighted average discount rate
Operating leases	3.7	%	3.4	%
Finance leases	6.0	%	—	%

Maturities of lease liabilities were as follows (in thousands):


Year Ending December 31,	Operating Leases		Finance Leases
Remaining 2023	$	3,709	$	452
2024	11,997		1,848
2025	9,171		1,848
2026	6,987		898
2027	5,929		—
Thereafter	17,281		—
Total future minimum lease payments	55,074		5,046
Less: imputed interest	(5,284)		(381)
Total	$	49,790	$	4,665

Leases

The components of lease expenses were as follows (in thousands):


	Three Months Ended				Nine Months Ended
	September 30, 2023		September 30, 2022		September 30, 2023		September 30, 2022
Operating lease cost	$	3,360	$	2,969	$	10,112	$	8,738
Finance lease cost:
Amortization of right-of-use assets	$	491	$	141	$	570	$	609
Interest on finance lease liabilities	83		—		83		—
Total finance lease cost	$	574	$	141	$	653	$	609

Supplemental cash flow information related to leases was as follows (in thousands):


	Three Months Ended				Nine Months Ended
	September 30, 2023		September 30, 2022		September 30, 2023		September 30, 2022
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash used in operating leases	$	(3,001)	$	(2,951)	$	(8,319)	$	(8,489)
Financing cash used in finance leases	(496)		—		(496)		—
Right of use assets obtained in exchange for lease obligations:
Operating leases	795		3,899		6,273		4,483
Finance leases	2,936		—		5,103		—

Supplemental balance sheet information related to leases was as follows (in thousands):


	September 30, 2023		December 31, 2022
Operating leases
Operating lease right-of-use assets	$	41,522	$	44,120

Operating lease liabilities	$	11,454	$	10,626
Operating lease liabilities — less current portion	38,336		41,389
Total operating lease liabilities	$	49,790	$	52,015
Finance leases
Finance lease right-of-use assets	$	4,612	$	—

Property and equipment, gross	$	29,974	$	36,282
Less: accumulated depreciation and amortization	(29,974)		(36,203)
Property and equipment, net	$	—	$	79

Finance lease liabilities	$	1,617	$	—
Finance lease liabilities — less current portion	3,048		—
Total finance lease liabilities	$	4,665	$	—

Weighted average remaining terms were as follows (in years):


	September 30, 2023	December 31, 2022
Weighted average remaining lease term
Operating leases	5.8	6.4
Finance leases	2.8	—

Weighted average discount rates were as follows:


	September 30, 2023		December 31, 2022
Weighted average discount rate
Operating leases	3.7	%	3.4	%
Finance leases	6.0	%	—	%

Maturities of lease liabilities were as follows (in thousands):


Year Ending December 31,	Operating Leases		Finance Leases
Remaining 2023	$	3,709	$	452
2024	11,997		1,848
2025	9,171		1,848
2026	6,987		898
2027	5,929		—
Thereafter	17,281		—
Total future minimum lease payments	55,074		5,046
Less: imputed interest	(5,284)		(381)
Total	$	49,790	$	4,665

Net Loss Per Share - Basic and Diluted Net Loss Per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2023	Sep. 30, 2022	Sep. 30, 2023	Sep. 30, 2022
Earnings Per Share [Abstract]
Net loss	$ (20,419)	$ (23,207)	$ (69,406)	$ (80,997)
Weighted-average shares used in computing basic net loss per share (in shares)	72,356	70,232	71,751	69,656
Weighted-average shares used in computing diluted net loss per share (in shares)	72,356	70,232	71,751	69,656
Basic net loss per share (in USD per share)	$ (0.28)	$ (0.33)	$ (0.97)	$ (1.16)
Diluted net loss per share (in USD per share)	$ (0.28)	$ (0.33)	$ (0.97)	$ (1.16)

- Definition

The amount of net income (loss) for the period per each share of common stock or unit outstanding during the reporting period.

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Reference 26: http://www.xbrl.org/2003/role/disclosureRef
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Reference 28: http://www.xbrl.org/2003/role/disclosureRef
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+ Details

Acquisition - Narrative (Details) $ in Thousands			3 Months Ended	9 Months Ended
Acquisition - Narrative (Details) $ in Thousands	Aug. 14, 2023 USD ($)	Aug. 03, 2023 USD ($)	Sep. 30, 2023 USD ($)	Sep. 30, 2023 USD ($) opportunity	Aug. 31, 2023 USD ($)	Dec. 31, 2022 USD ($)
Business Acquisition [Line Items]
Nember of business opportunities \| opportunity				2
Goodwill			$ 227,412	$ 227,412		$ 165,420
Aceyus, Inc.
Business Acquisition [Line Items]
Consideration transferred	$ 82,000
Goodwill		$ 61,992			$ 62,600
Acquisition-related transaction costs			$ 700	$ 1,600
Aceyus, Inc. \| Acquired technology
Business Acquisition [Line Items]
Acquired finite-lived intangible assets, weighted average useful life (Years)		8 years
Aceyus, Inc. \| Customer relationships
Business Acquisition [Line Items]
Acquired finite-lived intangible assets, weighted average useful life (Years)		5 years
Aceyus, Inc. \| Trademarks
Business Acquisition [Line Items]
Acquired finite-lived intangible assets, weighted average useful life (Years)		3 years

Pay vs Performance Disclosure - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
Pay vs Performance Disclosure - USD ($) $ in Thousands	Sep. 30, 2023	Sep. 30, 2022	Sep. 30, 2023	Sep. 30, 2022
Pay vs Performance Disclosure
Net loss	$ (20,419)	$ (23,207)	$ (69,406)	$ (80,997)

- Definition

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

+ References

+ Details

Revenue - Contract Balances (Details) - USD ($) $ in Thousands	Sep. 30, 2023	Dec. 31, 2022
Revenue from Contract with Customer [Abstract]
Accounts receivable, net	$ 94,436	$ 87,494
Deferred contract acquisition costs, net:
Current	58,320	47,242
Non-current	132,124	114,880
Total deferred contract acquisition costs, net	190,444	162,122
Contract assets and contract liabilities:
Contract assets (included in prepaid expenses and other current assets)	2,878	3,401
Contract liabilities (deferred revenue)	(64,565)	(57,816)
Noncurrent contract liabilities (deferred revenue) (included in other long-term liabilities)	(1,558)	(1,178)
Net contract liabilities	$ (63,245)	$ (55,593)

Goodwill and Intangible Assets (Tables)

9 Months Ended

Sep. 30, 2023

Goodwill and Intangible Assets Disclosure [Abstract]

Schedule of Intangible Assets Activity

The following table summarizes the activity in the Company's goodwill and intangible asset balances during the nine months ended September 30, 2023 (in thousands):


	Goodwill		Intangible Assets
Beginning of the period, December 31, 2022	$	165,420	$	28,192
Addition (Aceyus)	61,992		22,150
Amortization	—		(8,873)
End of the period, September 30, 2023	$	227,412	$	41,469

Schedule of Intangible Assets

The components of intangible assets were as follows (in thousands):



	September 30, 2023							December 31, 2022
	Gross Carrying Amount		Accumulated Amortization		Net Carrying Amount		Weighted Average Remaining Amortization period (Years)	Gross Carrying Amount		Accumulated Amortization		Net Carrying Amount		Weighted Average Remaining Amortization period (Years)
Developed technology	$	75,314	$	(37,472)	$	37,842	5.3	$	56,214	$	(28,881)	$	27,333	3.2
Acquired workforce	470		(470)		—		0.0	470		(470)		—		0.0
Customer relationships	4,150		(1,002)		3,148		4.3	1,600		(741)		859		2.7
Trademarks	1,000		(521)		479		2.9	500		(500)		—		0.0
Total	$	80,934	$	(39,465)	$	41,469	5.2	$	58,784	$	(30,592)	$	28,192	3.2

Schedule of Expected Future Amortization Expense of Intangible Assets

As of September 30, 2023, the expected future amortization expense for intangible assets was as follows (in thousands):


Period	Expected Future Amortization Expense
Remaining 2023	$	3,143
2024	10,591
2025	8,660
2026	7,201
2027	2,898
Thereafter	8,976
Total	$	41,469

Debt (Tables) - Convertible Senior Notes, Due 2025

9 Months Ended

Sep. 30, 2023

Debt Instrument [Line Items]

Schedule of Net Carrying Amount of Notes and Impact to Additional Paid-in Capital

The net carrying amount of the 2025 convertible senior notes as of September 30, 2023 and as of December 31, 2022 was as follows (in thousands):


	September 30, 2023		December 31, 2022
Principal	$	747,500	$	747,500

Unamortized issuance costs	(6,331)		(9,124)
Net carrying amount	$	741,169	$	738,376

Schedule of Interest Expense Related to the Notes

Interest expense related to the 2025 convertible senior notes was as follows (in thousands):


	Three Months Ended				Nine Months Ended
	September 30, 2023		September 30, 2022		September 30, 2023		September 30, 2022
Contractual interest expense	$	934	$	935	$	2,803	$	2,804

Amortization of issuance costs	954		944		2,793		2,765
Total interest expense	$	1,888	$	1,879	$	5,596	$	5,569

- Definition

Line items represent financial concepts included in a table. These concepts are used to disclose reportable information associated with domain members defined in one or many axes to the table.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Topic 835
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Reference 2: http://www.xbrl.org/2009/role/commonPracticeRef
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Reference 3: http://www.xbrl.org/2003/role/disclosureRef
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Reference 8: http://www.xbrl.org/2003/role/exampleRef
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Reference 9: http://www.xbrl.org/2003/role/disclosureRef
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Reference 14: http://www.xbrl.org/2003/role/disclosureRef
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+ Details

Commitments and Contingencies	9 Months Ended
Commitments and Contingencies	Sep. 30, 2023
Commitments and Contingencies Disclosure [Abstract]
Commitments and Contingencies	Commitments and Contingencies Commitments The Company’s principal commitments consist of future payment obligations under its convertible senior notes, finance leases to finance data centers and other computer and networking equipment, operating leases for office facilities, cloud services and software and maintenance agreements, and agreements with third parties to provide co-location hosting and telecommunication services. These commitments as of December 31, 2022 are disclosed in the Company’s Annual Report on Form 10-K for the year ended December 31, 2022, and material updates to these commitments during the nine months ended September 30, 2023 are disclosed herein, including in this Note 10 and in Note 12. As of September 30, 2023, the Company’s commitments under various co-location hosting and telecommunications agreements totaled $17.0 million for terms ranging up to 57 months. These agreements require the Company to make monthly payments over the service term in exchange for certain network services. As of September 30, 2023, the Company had outstanding cloud services and software and maintenance agreement commitments totaling $72.0 million, of which $10.9 million is expected to be paid in the remainder of 2023, $40.7 million is expected to be paid in 2024, $19.9 million is expected to be paid in 2025, and the remaining $0.5 million is expected to be paid in 2026. As of September 30, 2023, $747.5 million of aggregate principal of the 2025 convertible senior notes was outstanding and is due on June 1, 2025. As of September 30, 2023, no 2023 convertible senior notes were outstanding. See Note 6 for more information concerning the convertible senior notes. Legal Matters The Company is involved in various legal and regulatory matters arising in the normal course of business. In management’s opinion, resolution of these matters is not expected to have a material impact on the Company’s consolidated results of operations, cash flows, or its financial position. However, due to the uncertain nature of legal matters, an unfavorable resolution of a matter could materially affect the Company’s future consolidated results of operations, cash flows or financial position in a particular period. The Company expenses legal fees as incurred. Indemnification Agreements In the ordinary course of business, the Company enters into agreements of varying scope and terms pursuant to which it agrees to indemnify clients, vendors, lessors, business partners and other parties with respect to certain matters, including, but not limited to, losses arising out of breach of such agreements, including breach of security, services to be provided by the Company or from intellectual property infringement claims made by third parties. In addition, the Company has entered into indemnification agreements with its directors, officers and certain employees that requires it, among other things, to indemnify them against certain liabilities that may arise by reason of their status or service as directors, officers or employees. There are no claims that the Company is aware of that could have a material effect on the consolidated balance sheets, consolidated statements of operations and comprehensive loss, or consolidated statements of cash flows.

Investments and Fair Value Measurements

9 Months Ended

Sep. 30, 2023

Fair Value Disclosures [Abstract]

Investments and Fair Value Measurements

Marketable Investments

marketable investments as of September 30, 2023 and December 31, 2022 were as follows (in thousands):



	September 30, 2023
Short-Term Marketable Investments	Cost		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value
Certificates of deposit	$	1,206	$	—	$	—	$	1,206
U.S. treasury securities	263,979		10		(903)		263,086
U.S. agency securities	267,458		—		(659)		266,799
Commercial paper	31,412		1		(10)		31,403

Corporate bonds	10,056		—		(88)		9,968
Total	$	574,111	$	11	$	(1,660)	$	572,462



	December 31, 2022
Short-Term Marketable Investments	Cost		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value
Certificates of deposit	$	747	$	—	$	(13)	$	734
U.S. treasury securities	186,776		8		(1,382)		185,402
U.S. agency and government-sponsored securities	197,597		29		(1,660)		195,966
Commercial paper	25,386		—		—		25,386
Municipal bonds	22,764		—		(145)		22,619
Corporate bonds	3,658		—		(22)		3,636
Total	$	436,928	$	37	$	(3,222)	$	433,743

	December 31, 2022
Long-term Marketable Investments	Cost		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value


U.S. agency securities	$	885	$	—	$	—	$	885


Total	$	885	$	—	$	—	$	885


	September 30, 2023				December 31, 2022

	Gross Unrealized Losses		Fair Value		Gross Unrealized Losses		Fair Value
Certificates of deposit	$	—	$	—	$	(13)	$	734
U.S. treasury securities	(903)		123,889		(1,382)		126,534
U.S. agency securities	(659)		266,183		(1,660)		172,458
Commercial paper	(10)		28,284		—		—
Municipal bonds	—		—		(145)		12,623
Corporate bonds	(88)		9,969		(22)		3,636
Total	$	(1,660)	$	428,325	$	(3,222)	$	315,985

Although the Company had certain available-for-sale debt securities in an unrealized loss position as of September 30, 2023, no impairment loss was recorded since it did not intend to sell them, did not anticipate a need to sell them, and the decline in fair value was not due to any credit-related factors.

The amortized cost and fair value of the Company’s marketable investments by contractual maturity as of September 30, 2023 were as follows (in thousands):


	Cost		Fair Value
Due within one year	$	456,826	$	456,282
Due after one year through two years	117,285		116,180
Total	$	574,111	$	572,462

Fair Value Measurements

The Company carries cash equivalents and marketable investments at fair value. Fair value is based on the price that would be received from selling an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. Fair value is estimated by applying the following hierarchy, which prioritizes the inputs used to measure fair value into three levels and bases the categorization within the hierarchy upon the lowest level of input that is available and significant to the fair value measurement:

Level 1 — Observable inputs, which include unadjusted quoted prices in active markets for identical assets or liabilities.

Level 2 — Observable inputs other than Level 1 inputs, such as quoted prices in markets that are not active, or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities.

Level 3 — Unobservable inputs that are supported by little or no market activity and that are based on management’s assumptions, including fair value measurements determined by using pricing models, discounted cash flow methodologies or similar techniques.

The Company determined the fair value of its Level 1 financial instruments, which are traded in active markets, using quoted market prices for identical instruments.

Marketable investments classified within Level 2 of the fair value hierarchy are valued based on other observable inputs, including broker or dealer quotations or alternative pricing sources. When quoted prices in active markets for identical assets or liabilities are not available, the Company relies on non-binding quotes from its investment managers, which are based on proprietary valuation models of independent pricing services. These models generally use inputs such as observable market data, quoted market prices for similar instruments, historical pricing trends of a security as relative to its peers. To validate the fair value determination provided by its investment managers, the Company reviews the pricing movement in the context of overall market trends and trading information from its investment managers. The Company performs routine procedures such as comparing prices obtained from independent source to ensure that appropriate fair values are recorded.

The following tables set forth the Company’s assets measured at fair value by level within the fair value hierarchy (in thousands):


	September 30, 2023
	Level 1		Level 2		Level 3		Total
Assets
Cash equivalents
Money market funds	$	34,026	$	—	$	—	$	34,026
Certificates of deposit	—		249		—		249
U.S. treasury securities	11,970		—		—		11,970




Total cash equivalents	$	45,996	$	249	$	—	$	46,245

Marketable investments
Certificates of deposit	$	—	$	1,206	$	—	$	1,206
U.S. treasury securities	263,086		—		—		263,086
U.S. agency securities and government sponsored securities	—		266,799		—		266,799
Commercial paper	—		31,403		—		31,403

Corporate bonds	—		9,968		—		9,968
Total marketable investments	$	263,086	$	309,376	$	—	$	572,462



	December 31, 2022
	Level 1		Level 2		Level 3		Total
Assets
Cash equivalents
Money market funds	$	37,560	$	—	$	—	$	37,560
U.S. treasury securities	19,700		—		—		19,700


Total cash equivalents	$	57,260	$	—	$	—	$	57,260

Marketable investments (short and long-term)
Certificates of deposit	$	—	$	734	$	—	$	734
U.S. treasury securities	185,402		—		—		185,402
U.S. agency and government-sponsored securities	—		196,851		—		196,851
Commercial paper	—		25,386		—		25,386
Municipal bonds	—		22,619		—		22,619
Corporate bonds	—		3,636		—		3,636
Total marketable investments	$	185,402	$	249,226	$	—	$	434,628

As of December 31, 2022, the estimated fair value of the Company’s outstanding 2023 convertible senior notes was $0.3 million. The 2023 convertible senior notes matured on May 1, 2023. As of September 30, 2023 and December 31, 2022, the estimated fair value of the Company's outstanding 2025 convertible senior notes was $698.5 million and $687.1 million, respectively. The fair values were determined based on the quoted price of the convertible senior notes in an inactive market on the last trading day of the reporting period and have been classified as Level 2 in the fair value hierarchy. See Note 6 for further information on the Company’s convertible senior notes.

In February 2022, the Company made a $2.0 million equity investment in a privately-held company that it does not have the ability to exercise significant influence over. The Company elected the measurement alternative for an equity security without a readily determinable fair value. Accordingly, this investment is accounted for at its cost minus impairment, if any, and is classified within Level 3. If the Company identifies observable price changes in orderly transactions for such investment or a similar investment, it will measure the investment at fair value as of the date that the observable transactions or events occurred.

Except for the $2.0 million equity investment described above, there were no assets or liabilities measured at fair value on a non-recurring basis as of September 30, 2023 and December 31, 2022.

The fair value of the Company’s other financial instruments, including accounts receivable, accounts payable and other current liabilities, approximate their carrying value due to the relatively short maturity of those instruments. The carrying amounts of the Company’s operating and finance leases approximate their fair value, which is the present value of expected future cash payments based on assumptions about current interest rates and the creditworthiness of the Company.

Debt - Convertible Senior Notes and Capped Call (Narrative) (Details)	1 Months Ended		2 Months Ended	3 Months Ended		9 Months Ended
	May 31, 2020 USD ($) shares	May 31, 2018 USD ($) $ / shares	Jun. 30, 2020 USD ($) $ / shares	Sep. 30, 2023 USD ($) $ / shares shares	Sep. 30, 2022 USD ($) shares	Sep. 30, 2023 USD ($) day $ / shares Rate shares	Sep. 30, 2022 USD ($) shares	Sep. 29, 2023 $ / shares	Dec. 31, 2022 USD ($)	May 21, 2020 $ / shares
Debt Instrument [Line Items]
Cash consideration to repurchase note						$ 0	$ 34,057,000
Interest expense, debt				$ 0	$ 0	0	0
Issuance of common stock upon partial conversion of the 2023 convertible senior notes					$ (16,000)	$ 0	$ (275,000)
Common Stock
Debt Instrument [Line Items]
Equity component from partial repurchase of 2023 convertible senior notes (in shares) \| shares					0	2,000	574,000
Convertible Senior Notes, Due 2025 \| Convertible Debt
Debt Instrument [Line Items]
Stated interest rate on debt (as a percent)			0.50%
Proceeds from issuance of debt			$ 728,800,000
Conversion ratio on convertible debt \| Rate						0.74437%
Conversion price on convertible debt (in USD per share) \| $ / shares				$ 134.34		$ 134.34
Premium on conversion price in relation to closing price (as a percent)										30.00%
Closing price of common stock (in USD per share) \| $ / shares								$ 64.30		$ 103.34
Share price of common stock with conversion premium (in USD per share) \| $ / shares				$ 174.64		$ 174.64
Sinking fund payment						$ 0
Cap price of the capped call transactions (in USD per share) \| $ / shares			$ 206.68
Number of shares covered in the capped call transactions (in shares) \| shares				5,600,000		5,600,000
Long-term debt				$ 741,169,000		$ 741,169,000			$ 738,376,000
Interest expense, debt				$ 934,000	$ 935,000	$ 2,803,000	$ 2,804,000
Convertible Senior Notes, Due 2025 \| Convertible Debt \| Fundamental Change Event
Debt Instrument [Line Items]
Debt redemption price as percentage of principal amount (as a percent)						100.00%
Convertible Senior Notes, Due 2025 \| Convertible Debt \| On or After June 6, 2023
Debt Instrument [Line Items]
Number of trading days (in days) \| day						20
Number of consecutive trading days (in days) \| day						30
Threshold percentage of stock price trigger (as a percent)						130.00%
Debt redemption price as percentage of principal amount (as a percent)						100.00%
Number of trading days preceding notice of redemption (in days) \| day						2
Convertible Senior Notes, Due 2025 \| Convertible Debt \| Convertible, Term One
Debt Instrument [Line Items]
Number of trading days (in days) \| day						20
Number of consecutive trading days (in days) \| day						30
Threshold percentage of stock price trigger (as a percent)						130.00%
Convertible Senior Notes, Due 2025 \| Convertible Debt \| Convertible, Term Two
Debt Instrument [Line Items]
Number of trading days (in days) \| day						5
Number of consecutive trading days (in days) \| day						5
Threshold percentage of stock price trigger (as a percent)						98.00%
Convertible Senior Notes, Due 2025 \| Convertible Debt \| Private Placement
Debt Instrument [Line Items]
Aggregate principal amount of debt			$ 747,500,000
Option to purchase additional debt through private offering			$ 97,500,000
Convertible Senior Notes, Due 2023 \| Convertible Debt
Debt Instrument [Line Items]
Stated interest rate on debt (as a percent)	0.125%
Proceeds from issuance of debt		$ 250,800,000
Conversion price on convertible debt (in USD per share) \| $ / shares				$ 40.82		$ 40.82
Cap price of the capped call transactions (in USD per share) \| $ / shares		$ 62.80
Number of shares covered in the capped call transactions (in shares) \| shares				6,300,000		6,300,000
Debt instrument, repurchase amount	$ 181,000,000			$ 194,700,000		$ 194,700,000
Aggregate consideration to repurchase note	449,600,000
Cash consideration to repurchase note	$ 181,000,000
Long-term debt				$ 0		$ 0			$ 200,000
Convertible Senior Notes, Due 2023 \| Convertible Debt \| Common Stock
Debt Instrument [Line Items]
Equity component from partial repurchase of 2023 convertible senior notes (in shares) \| shares	2,723,581					370,877
Issuance of common stock upon partial conversion of the 2023 convertible senior notes						$ 74,500,000
Convertible Senior Notes, Due 2023 \| Convertible Debt \| Private Placement
Debt Instrument [Line Items]
Aggregate principal amount of debt		$ 258,800,000

Financial Statement Components - Schedule of Property and Equipment (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2023	Sep. 30, 2022	Sep. 30, 2023	Sep. 30, 2022	Dec. 31, 2022
Property, Plant and Equipment [Line Items]
Property and equipment	$ 230,700		$ 230,700		$ 215,755
Accumulated depreciation and amortization	(128,671)		(128,671)		(114,534)
Property and equipment, net	102,029		102,029		101,221
Depreciation and amortization associated with property and equipment	9,300	$ 8,300	26,700	$ 24,800
Computer and network equipment
Property, Plant and Equipment [Line Items]
Property and equipment	149,051		149,051		148,789
Computer software
Property, Plant and Equipment [Line Items]
Property and equipment	56,498		56,498		50,955
Internal-use software development costs
Property, Plant and Equipment [Line Items]
Property and equipment	14,419		14,419		6,111
Furniture and fixtures
Property, Plant and Equipment [Line Items]
Property and equipment	4,690		4,690		3,326
Leasehold improvements
Property, Plant and Equipment [Line Items]
Property and equipment	$ 6,042		$ 6,042		$ 6,574

Financial Statement Components - Schedule of Cash and Cash Equivalents (Details) - USD ($) $ in Thousands	Sep. 30, 2023	Dec. 31, 2022	Sep. 30, 2022	Dec. 31, 2021
Cash and Cash Equivalents [Line Items]
Total cash and cash equivalents	$ 127,828	$ 180,520	$ 129,492	$ 90,878
Cash
Cash and Cash Equivalents [Line Items]
Total cash and cash equivalents	81,583	123,260
Certificates of deposit
Cash and Cash Equivalents [Line Items]
Total cash and cash equivalents	249	0
Money market funds
Cash and Cash Equivalents [Line Items]
Total cash and cash equivalents	34,026	37,560
U.S. treasury securities
Cash and Cash Equivalents [Line Items]
Total cash and cash equivalents	$ 11,970	$ 19,700

Goodwill and Intangible Assets - Goodwill and Intangible Asset Activity (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2023	Sep. 30, 2022	Sep. 30, 2023	Sep. 30, 2022
Goodwill
Beginning of the period, December 31, 2022			$ 165,420
Addition (Aceyus)			61,992
End of the period, September 30, 2023	$ 227,412		227,412
Intangible Assets
Beginning of the period, December 31, 2022			28,192
Addition (Aceyus)			22,150
Amortization	(3,200)	$ (2,900)	(8,873)	$ (8,800)
End of the period, September 30, 2023	$ 41,469		$ 41,469

- Definition

+ References + Details

Goodwill and Intangible Assets - Schedule of Intangible Assets (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2023	Sep. 30, 2022	Sep. 30, 2023	Sep. 30, 2022	Dec. 31, 2022
Acquired Finite-Lived Intangible Assets
Gross Carrying Amount	$ 80,934		$ 80,934		$ 58,784
Accumulated Amortization	(39,465)		(39,465)		(30,592)
Net Carrying Amount	$ 41,469		$ 41,469		$ 28,192
Weighted Average Remaining Amortization period (Years)	5 years 2 months 12 days		5 years 2 months 12 days		3 years 2 months 12 days
Amortization of intangible assets	$ 3,200	$ 2,900	$ 8,873	$ 8,800
Developed technology
Acquired Finite-Lived Intangible Assets
Gross Carrying Amount	75,314		75,314		$ 56,214
Accumulated Amortization	(37,472)		(37,472)		(28,881)
Net Carrying Amount	$ 37,842		$ 37,842		$ 27,333
Weighted Average Remaining Amortization period (Years)	5 years 3 months 18 days		5 years 3 months 18 days		3 years 2 months 12 days
Acquired workforce
Acquired Finite-Lived Intangible Assets
Gross Carrying Amount	$ 470		$ 470		$ 470
Accumulated Amortization	(470)		(470)		(470)
Net Carrying Amount	$ 0		$ 0		$ 0
Weighted Average Remaining Amortization period (Years)	0 years		0 years		0 years
Customer relationships
Acquired Finite-Lived Intangible Assets
Gross Carrying Amount	$ 4,150		$ 4,150		$ 1,600
Accumulated Amortization	(1,002)		(1,002)		(741)
Net Carrying Amount	$ 3,148		$ 3,148		$ 859
Weighted Average Remaining Amortization period (Years)	4 years 3 months 18 days		4 years 3 months 18 days		2 years 8 months 12 days
Trademarks
Acquired Finite-Lived Intangible Assets
Gross Carrying Amount	$ 1,000		$ 1,000		$ 500
Accumulated Amortization	(521)		(521)		(500)
Net Carrying Amount	$ 479		$ 479		$ 0
Weighted Average Remaining Amortization period (Years)	2 years 10 months 24 days		2 years 10 months 24 days		0 years

CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	Sep. 30, 2023	Dec. 31, 2022
Current assets:
Cash and cash equivalents	$ 127,828	$ 180,520
Marketable investments	572,462	433,743
Accounts receivable, net	94,436	87,494
Prepaid expenses and other current assets	37,627	29,711
Deferred contract acquisition costs, net	58,320	47,242
Total current assets	890,673	778,710
Property and equipment, net	102,029	101,221
Operating lease right-of-use assets	41,522	44,120
Finance lease right-of-use assets	4,612	0
Intangible assets, net	41,469	28,192
Goodwill	227,412	165,420
Marketable investments	0	885
Other assets	16,603	11,057
Deferred contract acquisition costs, net — less current portion	132,124	114,880
Total assets	1,456,444	1,244,485
Current liabilities:
Accounts payable	28,528	23,629
Accrued and other current liabilities	59,511	53,092
Operating lease liabilities	11,454	10,626
Finance lease liabilities	1,617	0
Accrued federal fees	3,336	2,471
Sales tax liabilities	2,965	2,973
Deferred revenue	64,565	57,816
Convertible senior notes	0	169
Total current liabilities	171,976	150,776
Convertible senior notes — less current portion	741,169	738,376
Sales tax liabilities — less current portion	919	899
Operating lease liabilities — less current portion	38,336	41,389
Finance lease liabilities — less current portion	3,048	0
Other long-term liabilities	7,126	3,080
Total liabilities	962,574	934,520
Commitments and contingencies (Note 10)
Stockholders’ equity:
Common stock	73	71
Additional paid-in capital	887,087	635,668
Accumulated other comprehensive loss	(798)	(2,688)
Accumulated deficit	(392,492)	(323,086)
Total stockholders’ equity	493,870	309,965
Total liabilities and stockholders’ equity	$ 1,456,444	$ 1,244,485

Financial Statement Components - Schedule of Prepaid Expenses and Other Current Assets (Details) - USD ($) $ in Thousands	Sep. 30, 2023	Dec. 31, 2022
Business Acquisition [Line Items]
Prepaid expenses	$ 26,325	$ 17,151
Other current assets	8,424	9,159
Contract assets	2,878	3,401
Prepaid expenses and other current assets	$ 37,627	$ 29,711

Description of Business and Summary of Significant Accounting Policies (Policies)	9 Months Ended
	Sep. 30, 2023
Accounting Policies [Abstract]
Basis of Presentation	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, 2022. 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.
Use of Estimates	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 assets acquired and 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.
Recent Accounting Pronouncements Not Yet Effective	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 statements of cash flows.
Receivables	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	Deferred contract acquisition costs are recorded when incurred and are amortized over an estimated customer benefit period of five years.
Revenue	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.

- Definition

Disclosure of accounting policy for revenue from contract with customer.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Topic 606
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 17
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147479806/606-10-50-17

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Topic 606
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Reference 3: http://www.xbrl.org/2003/role/disclosureRef
-Topic 606
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Reference 4: http://www.xbrl.org/2003/role/disclosureRef
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Reference 6: http://www.xbrl.org/2003/role/disclosureRef
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Reference 7: http://www.xbrl.org/2003/role/disclosureRef
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Reference 8: http://www.xbrl.org/2003/role/disclosureRef
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Reference 9: http://www.xbrl.org/2003/role/exampleRef
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Reference 10: http://www.xbrl.org/2003/role/disclosureRef
-Name Accounting Standards Codification
-Topic 606
-Publisher FASB
-URI https://asc.fasb.org//606/tableOfContent

+ Details

Income Taxes (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
Income Taxes (Details) - USD ($) $ in Thousands	Sep. 30, 2023	Sep. 30, 2022	Sep. 30, 2023	Sep. 30, 2022
Income Tax Disclosure [Abstract]
Provision for income taxes	$ 942	$ 579	$ 2,222	$ 3,167

- Definition

Amount of current income tax expense (benefit) and deferred income tax expense (benefit) pertaining to continuing operations.

+ References + Details

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2023	Sep. 30, 2022
Cash flows from operating activities:
Net loss	$ (69,406)	$ (80,997)
Adjustments to reconcile net loss to net cash provided by operating activities:
Depreciation and amortization	35,553	33,650
Amortization of operating lease right-of-use assets	9,234	7,491
Amortization of deferred contract acquisition costs	40,088	29,245
(Accretion of discount) amortization of premium on marketable investments	(7,684)	1,006
Provision for credit losses	795	812
Stock-based compensation	156,721	128,682
Amortization of discount and issuance costs on convertible senior notes	2,793	2,796
Deferred taxes	438	2,076
Change in fair of value of contingent consideration	0	260
Payment of contingent consideration liability in excess of acquisition-date fair value	0	(5,900)
Other	669	503
Changes in operating assets and liabilities:
Accounts receivable	(6,661)	(5,337)
Prepaid expenses and other current assets	(6,537)	(2,228)
Deferred contract acquisition costs	(68,410)	(62,835)
Other assets	(4,892)	(213)
Accounts payable	5,562	1,008
Accrued and other current liabilities	(2,006)	796
Accrued federal fees and sales tax liabilities	877	(2,001)
Deferred revenue	1,544	9,519
Other liabilities	3,616	(2,208)
Net cash provided by operating activities	92,294	56,125
Cash flows from investing activities:
Purchases of marketable investments	(544,713)	(250,278)
Proceeds from sales of marketable investments	971	600
Proceeds from maturities of marketable investments	415,117	321,311
Purchases of property and equipment	(19,941)	(46,028)
Capitalization of software development costs	(5,820)	(2,420)
Cash paid to acquire Aceyus	(80,588)	0
Payments of initial direct costs	0	(282)
Cash paid for an equity investment in a privately-held company	0	(2,000)
Net cash (used in) provided by investing activities	(234,974)	20,903
Cash flows from financing activities:
Repayment of outstanding 2023 convertible senior notes at maturity	(169)	0
Cash received from the settlement at maturity of the outstanding capped calls associated with the 2023 convertible senior notes	74,453	0
Repurchase of a portion of 2023 convertible senior notes, net of costs	0	(34,057)
Proceeds from exercise of common stock options	8,315	5,358
Proceeds from sale of common stock under ESPP	9,444	8,338
Payment of contingent consideration liability up to acquisition-date fair value	0	(18,100)
Payment of holdback related to an acquisition	(500)	0
Payments of finance leases	(496)	0
Net cash provided by (used in) financing activities	91,047	(38,461)
Net (decrease) increase in cash, cash equivalents and restricted cash	(51,633)	38,567
Cash, cash equivalents and restricted cash:
Beginning of period	180,987	91,391
End of period	129,354	129,958
Supplemental disclosures of cash flow data:
Cash paid for interest	1,956	1,870
Cash paid for income taxes	1,124	932
Non-cash investing and financing activities:
Equipment and software purchased and unpaid at period-end	11,419	13,372
Capitalization of leasehold improvements and furniture and fixtures through non-cash lease incentive	0	109
Acquisition and related transaction costs accrued at period-end	330	0
Stock-based compensation included in capitalized software development costs	2,487	1,011
Reconciliation of Cash, Cash Equivalents and Restricted Cash to the Condensed Consolidated Balance Sheets
Cash and cash equivalents	127,828	129,492
Restricted cash in other assets	1,526	466
Total cash, cash equivalents and restricted cash	$ 129,354	$ 129,958

Insider Trading Arrangements

3 Months Ended

9 Months Ended

Sep. 30, 2023

Trading Arrangements, by Individual

Material Terms of Trading Arrangement

Rule 10b5-1 Plans

During the fiscal quarter ended September 30, 2023, the following Company’s directors and officers adopted, modified, or terminated a Rule 10b5-1 trading arrangement or a non-Rule 10b5-1 trading arrangement:

Name

Title

Adoption Date

Expiration Date

Aggregate # of securities to be sold

Aggregate # of securities to be purchased

Type of Arrangement

Leena Mansharamani

Chief Accounting Officer

Sept. 13, 2023

Dec. 31, 2024

Not determinable (1)

Rule 10b5-1 trading arrangement (2)

______________________

(1) Rule 10b5-1 trading arrangement provides for sales of securities in order to satisfy tax obligations upon vesting of restricted stock units held by Ms. Mansharamani.

(2) The Rule 10b5-1 trading arrangement is intended to satisfy the affirmative defense conditions of Rule 10b5-1(c).

Rule 10b5-1 Arrangement Adopted

true

Non-Rule 10b5-1 Arrangement Adopted

false

Rule 10b5-1 Arrangement Terminated

false

Non-Rule 10b5-1 Arrangement Terminated

false

Leena Mansharamani [Member]

Trading Arrangements, by Individual

Name

Leena Mansharamani

Title

Chief Accounting Officer

Adoption Date

Sept. 13, 2023

Termination Date

Dec. 31, 2024

Arrangement Duration

475 days

Net Loss Per Share - Antidilutive Securities Excluded from Computation of Diluted Net Loss Per Share (Details) - shares shares in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2023	Sep. 30, 2022	Sep. 30, 2023	Sep. 30, 2022
Antidilutive Securities Excluded from Computation of Earnings Per Share
Total (in shares)	10,915	10,074	10,917	10,230
Stock Options
Antidilutive Securities Excluded from Computation of Earnings Per Share
Total (in shares)	973	1,626	973	1,626
RSUs (includes PRSUs)
Antidilutive Securities Excluded from Computation of Earnings Per Share
Total (in shares)	4,378	2,879	4,378	2,879
Convertible senior notes
Antidilutive Securities Excluded from Computation of Earnings Per Share
Total (in shares)	5,564	5,569	5,566	5,725

Goodwill and Intangible Assets - Future Amortization Expense (Details) - USD ($) $ in Thousands	Sep. 30, 2023	Dec. 31, 2022
Goodwill and Intangible Assets Disclosure [Abstract]
Remaining 2023	$ 3,143
2024	10,591
2025	8,660
2026	7,201
2027	2,898
Thereafter	8,976
Net Carrying Amount	$ 41,469	$ 28,192

Revenue (Tables)

9 Months Ended

Sep. 30, 2023

Revenue from Contract with Customer [Abstract]

Schedule of Contract Balances


	September 30, 2023		December 31, 2022
Accounts receivable, net	$	94,436	$	87,494

Deferred contract acquisition costs, net:
Current	$	58,320	$	47,242
Non-current	132,124		114,880
Total deferred contract acquisition costs, net	$	190,444	$	162,122

Contract assets and contract liabilities:
Contract assets (included in prepaid expenses and other current assets)	$	2,878	$	3,401
Contract liabilities (deferred revenue)	(64,565)		(57,816)
Noncurrent contract liabilities (deferred revenue) (included in other long-term liabilities)	(1,558)		(1,178)
Net contract liabilities	$	(63,245)	$	(55,593)

Geographical Information (Tables)

9 Months Ended

Sep. 30, 2023

Segment Reporting [Abstract]

Schedule of Revenues and Property and Equipment by Geographic Region

The following table summarizes revenues by geographic region based on client billing address (in thousands):



	Three Months Ended				Nine Months Ended
	September 30, 2023		September 30, 2022		September 30, 2023		September 30, 2022
United States	$	205,679	$	179,306	$	599,259	$	517,537
International	24,426		19,036		72,167		52,964
Total revenue	$	230,105	$	198,342	$	671,426	$	570,501

The following table summarizes total property and equipment, net in the respective locations (in thousands):



	September 30, 2023		December 31, 2022
United States	$	95,175	$	92,659
International	6,854		8,562
Property and equipment, net	$	102,029	$	101,221

Stockholders' Equity - Stock-based Compensation (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2023	Sep. 30, 2022	Sep. 30, 2023	Sep. 30, 2022
Stock-based Compensation Expense
Total stock-based compensation expense	$ 52,611	$ 44,503	$ 156,721	$ 128,682
Stock Options
Stock-based Compensation Expense
Unrecognized stock-based compensation expense	5,781		$ 5,781
Weighted-average amortization period			1 year 8 months 12 days
RSU (excluding PRSUs)
Stock-based Compensation Expense
Unrecognized stock-based compensation expense	315,047		$ 315,047
Weighted-average amortization period			2 years 8 months 12 days
PRSU
Stock-based Compensation Expense
Unrecognized stock-based compensation expense	16,228		$ 16,228
Weighted-average amortization period			1 year 10 months 24 days
ESPP
Stock-based Compensation Expense
Unrecognized stock-based compensation expense	557		$ 557
Weighted-average amortization period			1 month 6 days
Cost of revenue
Stock-based Compensation Expense
Total stock-based compensation expense	9,856	8,329	$ 29,077	24,659
Research and development
Stock-based Compensation Expense
Total stock-based compensation expense	12,980	10,603	38,375	32,567
Sales and marketing
Stock-based Compensation Expense
Total stock-based compensation expense	16,404	15,761	50,840	44,148
General and administrative
Stock-based Compensation Expense
Total stock-based compensation expense	$ 13,371	$ 9,810	$ 38,429	$ 27,308

Stockholders' Equity - RSU Activity (Details)	9 Months Ended
Stockholders' Equity - RSU Activity (Details)	Sep. 30, 2023 $ / shares shares
RSUs (includes PRSUs)
Number of Shares
Outstanding, beginning balance (in shares)	3,718,000
RSUs granted (in shares)	2,388,000
RSUs vested and released (in shares)	(1,378,000)
RSUs forfeited or canceled (in shares)	(350,000)
Outstanding, ending balance (in shares)	4,378,000
Weighted Average Grant Date Fair Value Per Share
Outstanding, beginning balance, weighted-average grant date fair value per share (in USD per share) \| $ / shares	$ 103.55
RSUs granted, weighted average grant date fair value (in USD per share) \| $ / shares	68.25
RSUs vested and released, weighted average grant date fair value (in USD per share) \| $ / shares	101.30
RSUs forfeited or canceled, weighted average grant date fair value (in USD per share) \| $ / shares	103.11
Outstanding, ending balance, weighted-average grant date fair value per share (in USD per share) \| $ / shares	$ 85.06
Performance Based And Market Based Restricted Stock Units PRSUs
Number of Shares
RSUs granted (in shares)	35,921

Acquisition

9 Months Ended

Sep. 30, 2023

Business Combination and Asset Acquisition [Abstract]

Acquisition

Aceyus

On August 14, 2023, the Company acquired all of the issued and outstanding shares of capital stock of Aceyus for total cash consideration of approximately $82.0 million. This acquisition, which was accounted for as a business combination, is intended to accelerate the Company's ability to capitalize on two business opportunities, namely facilitating the migration of large enterprise customers from on-premise to cloud and leveraging contextual data to deliver personalized experiences throughout the customer journey, including using this contextual data in the Company's AI & Automation solutions.

The excess of the purchase price over identifiable intangible assets and net tangible assets in the amount of $62.0 million was allocated to goodwill, which is not deductible for tax purposes. The fair values assigned to assets acquired and liabilities assumed are based on management’s best estimates and assumptions as of the acquisition date and are considered preliminary pending finalization of valuation analyses pertaining to intangible assets acquired, liabilities assumed and tax liabilities assumed. During the measurement period, which may be up to one year from the acquisition date, the Company may record adjustments to the fair value of these tangible and intangible assets acquired and liabilities assumed, with the corresponding offset to goodwill. The following table presents the preliminary allocation of the purchase price at the acquisition date (in thousands):


Cash	$	1,424
Tangible assets acquired	383
Other assets acquired	3,002
Acquired technology	19,100
Customer relationships	2,550
Trademarks	500
Goodwill	61,992
Total assets acquired	88,951

Liabilities assumed	(6,939)
Total	$	82,012

The acquired technology, customer relationships, and trademarks will be amortized on a straight-line basis over their estimated useful lives of eight years, five years, and three years, respectively. The Company used the income approach to estimate the fair value of intangible assets acquired.

In connection with this acquisition, the Company incurred total acquisition-related transaction costs of $0.7 million and $1.6 million during the three and nine months ended September 30, 2023, respectively, that have been expensed as incurred and included in general and administrative expenses in the consolidated statements of operations and comprehensive loss.

The results of operations of this acquisition are included in the accompanying consolidated statements of operations and comprehensive loss from the date of acquisition and are not material to the Company's consolidated financial statements.

Acquisition - Schedule of Recognized Identified Assets Acquired and Liabilities Assumed (Details) - USD ($) $ in Thousands	Sep. 30, 2023	Aug. 31, 2023	Aug. 03, 2023	Dec. 31, 2022
Business Acquisition [Line Items]
Goodwill	$ 227,412			$ 165,420
Aceyus, Inc.
Business Acquisition [Line Items]
Cash			$ 1,424
Tangible assets acquired			383
Other assets acquired			3,002
Goodwill		$ 62,600	61,992
Total assets acquired			88,951
Liabilities assumed			(6,939)
Total			82,012
Aceyus, Inc. \| Acquired technology
Business Acquisition [Line Items]
Finite-lived intangibles acquired			19,100
Aceyus, Inc. \| Customer relationships
Business Acquisition [Line Items]
Finite-lived intangibles acquired			2,550
Aceyus, Inc. \| Trademarks
Business Acquisition [Line Items]
Finite-lived intangibles acquired			$ 500

Label	Element	Value
Restricted Cash and Cash Equivalents	us-gaap_RestrictedCashAndCashEquivalents	$ 467,000
Restricted Cash and Cash Equivalents	us-gaap_RestrictedCashAndCashEquivalents	$ 513,000

Stockholders' Equity (Tables)

9 Months Ended

Sep. 30, 2023

Equity [Abstract]

Schedule of Common Stock Reserved for Future Issuance

Shares of common stock reserved for future issuance related to outstanding equity awards and employee equity incentive plans as of September 30, 2023 were as follows (in thousands):


						September 30, 2023
Stock options outstanding						973
RSUs (including PRSUs) outstanding						4,378
Shares available for future grant under 2014 Plan						15,816
Shares available for future issuance under ESPP						4,076

Total shares of common stock reserved						25,243

Schedule of Stock Option Activity

A summary of the Company’s stock option activity during the nine months ended September 30, 2023 is as follows (in thousands, except per share data):


	Number of Shares	Weighted Average Exercise Price		Weighted Average Remaining Contractual Life (Years)	Aggregate Intrinsic Value
Outstanding as of December 31, 2022	1,481	$	47.75
Options granted	—	—
Options exercised	(436)	19.07
Options forfeited or expired	(72)	141.71
Outstanding as of September 30, 2023	973	$	53.66	4.8	$	27,290

Schedule of RSU Activity


	Number of Shares	Weighted Average Grant Date Fair Value Per Share
Outstanding as of December 31, 2022	3,718	$	103.55
RSUs granted(1)	2,388	68.25
RSUs vested and released	(1,378)	101.30
RSUs forfeited or canceled	(350)	103.11
Outstanding as of September 30, 2023	4,378	85.06

(1) Includes 35,921 PRSUs granted during the nine months ended September 30, 2023.

Schedule of Stock-based Compensation Expense

Stock-based compensation expense was as follows (in thousands):



	Three Months Ended				Nine Months Ended
	September 30, 2023		September 30, 2022		September 30, 2023		September 30, 2022
Cost of revenue	$	9,856	$	8,329	$	29,077	$	24,659
Research and development	12,980		10,603		38,375		32,567
Sales and marketing	16,404		15,761		50,840		44,148
General and administrative	13,371		9,810		38,429		27,308
Total stock-based compensation expense	$	52,611	$	44,503	156,721		128,682

Schedule of Unrecognized Compensation Expense


	Stock Option		RSU (excluding PRSUs)		PRSU		ESPP
Unrecognized stock-based compensation expense	$	5,781	$	315,047	$	16,228	$	557
Weighted-average amortization period	1.7 years		2.7 years		1.9 years		0.1 years

Schedule of Valuation Assumptions, Stock Option

The weighted-average assumptions used to value stock options granted during the periods presented were as follows:



Stock Options	Three Months Ended		Nine Months Ended
	September 30, 2023	September 30, 2022	September 30, 2023	September 30, 2022
Expected term (years)	—	—	—	6.0
Volatility	—	—	—	46.0	%
Risk-free interest rate	—	—	—	1.8	%
Dividend yield (1)	—	—	—	—

The weighted-average assumptions used to value PRSUs with market conditions granted during the periods presented were as follows:










PRSUs (Market Conditions)	Three Months Ended		Nine Months Ended
	September 30, 2023	September 30, 2022	September 30, 2023			September 30, 2022
Closing price of common stock as of grant date	—	—	$	68.15		$110.00
Expected term (years)	—	—	2.84			2.84
Volatility	—	—	51.1		%	48.8	%
Risk-free interest rate	—	—	4.5		%	1.6	%
Dividend yield (1)	—	—	—			—

(1)The Company has not paid, and does not anticipate paying, cash dividends on its shares of common stock. Accordingly, the expected dividend yield is zero.

Financial Statement Components - Schedule of Accrued and Other Current Liabilities (Details) - USD ($) $ in Thousands	Sep. 30, 2023	Dec. 31, 2022
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Accrued expenses	$ 20,051	$ 19,343
Accrued compensation and benefits	39,460	33,749
Accrued and other current liabilities	$ 59,511	$ 53,092

Net Loss Per Share (Tables)

9 Months Ended

Sep. 30, 2023

Earnings Per Share [Abstract]

Schedule of Basic and Diluted Net Loss Per Share

The following table presents the calculation of basic and diluted net loss per share (in thousands, except per share data):



	Three Months Ended				Nine Months Ended
	September 30, 2023		September 30, 2022		September 30, 2023		September 30, 2022
Net loss	$	(20,419)	$	(23,207)	$	(69,406)	$	(80,997)
Weighted-average shares used in computing basic and diluted net loss per share	72,356		70,232		71,751		69,656
Basic and diluted net loss per share	$	(0.28)	$	(0.33)	$	(0.97)	$	(1.16)

Schedule of Antidilutive Securities Excluded from Computation of Net Loss Per Share

The following securities were excluded from the calculation of diluted net loss per share because their effect would have been anti-dilutive (in thousands):



	Three Months Ended		Nine Months Ended
	September 30, 2023	September 30, 2022	September 30, 2023	September 30, 2022
Stock options	973	1,626	973	1,626
RSUs (includes PRSUs)	4,378	2,879	4,378	2,879
Convertible senior notes	5,564	5,569	5,566	5,725

Total	10,915	10,074	10,917	10,230

Debt - Schedule of Interest Expense (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2023	Sep. 30, 2022	Sep. 30, 2023	Sep. 30, 2022
Debt Instrument [Line Items]
Contractual interest expense	$ 0	$ 0	$ 0	$ 0
Total interest expense	1,972	1,879	5,683	5,606
Convertible Senior Notes, Due 2025 \| Convertible Debt
Debt Instrument [Line Items]
Contractual interest expense	934	935	2,803	2,804
Amortization of issuance costs	954	944	2,793	2,765
Total interest expense	$ 1,888	$ 1,879	$ 5,596	$ 5,569

- Definition

Line items represent financial concepts included in a table. These concepts are used to disclose reportable information associated with domain members defined in one or many axes to the table.

+ References

+ Details

- Definition

Amount of the cost of borrowed funds accounted for as interest expense.

+ References + Details

Investments and Fair Value Measurements - Schedule of Continuous Unrealized Loss Position (Details) - USD ($) $ in Thousands	Sep. 30, 2023	Dec. 31, 2022
Debt Securities, Available-for-sale [Line Items]
Gross Unrealized Losses	$ (1,660)	$ (3,222)
Fair Value	428,325	315,985
Certificates of deposit
Debt Securities, Available-for-sale [Line Items]
Gross Unrealized Losses	0	(13)
Fair Value	0	734
U.S. treasury securities
Debt Securities, Available-for-sale [Line Items]
Gross Unrealized Losses	(903)	(1,382)
Fair Value	123,889	126,534
U.S. agency securities
Debt Securities, Available-for-sale [Line Items]
Gross Unrealized Losses	(659)	(1,660)
Fair Value	266,183	172,458
Commercial paper
Debt Securities, Available-for-sale [Line Items]
Gross Unrealized Losses	(10)	0
Fair Value	28,284	0
Municipal bonds
Debt Securities, Available-for-sale [Line Items]
Gross Unrealized Losses	0	(145)
Fair Value	0	12,623
Corporate bonds
Debt Securities, Available-for-sale [Line Items]
Gross Unrealized Losses	(88)	(22)
Fair Value	$ 9,969	$ 3,636

- Definition

Line items represent financial concepts included in a table. These concepts are used to disclose reportable information associated with domain members defined in one or many axes to the table.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Topic 320
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 2
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481800/320-10-50-2

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Topic 320
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 2
-Subparagraph (a)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481800/320-10-50-2

Reference 3: http://www.xbrl.org/2003/role/disclosureRef
-Topic 320
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 2
-Subparagraph (aa)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481800/320-10-50-2

Reference 4: http://www.xbrl.org/2003/role/disclosureRef
-Topic 320
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 2
-Subparagraph (aaa)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481800/320-10-50-2

Reference 5: http://www.xbrl.org/2003/role/disclosureRef
-Topic 320
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 2
-Subparagraph (b)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481800/320-10-50-2

Reference 6: http://www.xbrl.org/2003/role/disclosureRef
-Topic 320
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 2
-Subparagraph (c)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481800/320-10-50-2

Reference 7: http://www.xbrl.org/2003/role/disclosureRef
-Topic 320
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 2
-Subparagraph (d)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481800/320-10-50-2

Reference 8: http://www.xbrl.org/2003/role/disclosureRef
-Topic 320
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 3
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481800/320-10-50-3

Reference 9: http://www.xbrl.org/2003/role/disclosureRef
-Topic 320
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 3
-Subparagraph (a)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481800/320-10-50-3

Reference 10: http://www.xbrl.org/2003/role/disclosureRef
-Topic 320
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 3
-Subparagraph (b)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481800/320-10-50-3

Reference 11: http://www.xbrl.org/2003/role/disclosureRef
-Topic 320
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 3
-Subparagraph (c)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481800/320-10-50-3

Reference 12: http://www.xbrl.org/2003/role/disclosureRef
-Topic 320
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 3
-Subparagraph (d)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481800/320-10-50-3

+ Details

Stockholders' Equity - Valuation Assumptions (Details) - $ / shares	9 Months Ended
	Sep. 30, 2023	Sep. 30, 2022
Class of Stock
Closing price of common stock as of grant date (in USD per share)	$ 64.30
Dividend yield (in percent)	0.00%	0.00%
Stock Options
Class of Stock
Expected term (years)		6 years
Volatility		46.00%
Risk-free interest rate		1.80%
Dividend yield (in percent)		0.00%
PRSUs
Class of Stock
Closing price of common stock as of grant date (in USD per share)	$ 68.15	$ 110.00
Expected term (years)	2 years 10 months 2 days	2 years 10 months 2 days
Volatility	51.10%	48.80%
Risk-free interest rate	4.50%	1.60%
Dividend yield (in percent)	0.00%	0.00%

- Definition

Line items represent financial concepts included in a table. These concepts are used to disclose reportable information associated with domain members defined in one or many axes to the table.

+ References

+ Details

Stockholders' Equity - Narrative (Details) - $ / shares	Sep. 30, 2023	Dec. 31, 2022
Stockholders' Equity Capital Structure [Line Items]
Common stock shares authorized (in shares)	450,000,000
Common stock par value (in USD per share)	$ 0.001
Common stock shares issued (in shares)	72,695,935	71,047,179
Common stock shares outstanding (in shares)	72,695,935	71,047,179
Preferred stock shares authorized (up to) (in shares)	5,000,000
Preferred stock par value (in USD per share)	$ 0.001
Preferred stock shares issued (in shares)	0	0
Preferred stock shares outstanding (in shares)	0	0
Closing market price of common stock (in USD per share)	$ 64.30

Financial Statement Components - Schedule of Other Assets (Details) - USD ($) $ in Thousands	Sep. 30, 2023	Dec. 31, 2022	Feb. 28, 2022
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Other assets	$ 11,069	$ 5,081
Equity investment in a privately-held company	2,000	2,000	$ 2,000
Deferred tax assets	3,534	3,976
Total	$ 16,603	$ 11,057

Financial Statement Components (Tables)

9 Months Ended

Sep. 30, 2023

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Schedule of Cash and Cash Equivalents

Cash and cash equivalents consisted of the following (in thousands):


	September 30, 2023		December 31, 2022
Cash	$	81,583	$	123,260
Certificates of deposit	249		—
Money market funds	34,026		37,560
U.S. treasury securities	11,970		19,700

Total cash and cash equivalents	$	127,828	$	180,520

Schedule of Accounts Receivable

Accounts receivable, net consisted of the following (in thousands):


	September 30, 2023		December 31, 2022
Trade accounts receivable	$	83,122	$	77,621
Unbilled trade accounts receivable, net of advance client deposits	11,567		10,135
Allowance for credit losses	(253)		(262)
Accounts receivable, net	$	94,436	$	87,494

Schedule of Prepaid Expenses and Other Current Assets

Prepaid expenses and other current assets consisted of the following (in thousands):


	September 30, 2023		December 31, 2022
Prepaid expenses	$	26,325	$	17,151
Other current assets	8,424		9,159
Contract assets	2,878		3,401

Prepaid expenses and other current assets	$	37,627	$	29,711

Schedule of Property and Equipment

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


	September 30, 2023		December 31, 2022
Computer and network equipment	$	149,051	$	148,789
Computer software	56,498		50,955
Internal-use software development costs	14,419		6,111
Furniture and fixtures	4,690		3,326
Leasehold improvements	6,042		6,574
Property and equipment	230,700		215,755
Accumulated depreciation and amortization	(128,671)		(114,534)
Property and equipment, net	$	102,029	$	101,221

Schedule of Other Assets

Other assets consisted of the following (in thousands):


	September 30, 2023		December 31, 2022
Other assets	$	11,069	$	5,081
Equity investment in a privately-held company	2,000		2,000
Deferred tax assets	3,534		3,976
Total	$	16,603	$	11,057

Schedule of Accrued and Other Current Liabilities

Accrued and other current liabilities consisted of the following (in thousands):


	September 30, 2023		December 31, 2022
Accrued expenses	$	20,051	$	19,343
Accrued compensation and benefits	39,460		33,749

Accrued and other current liabilities	$	59,511	$	53,092

Schedule of Other Long-term Liabilities

Other long-term liabilities consisted of the following (in thousands):


	September 30, 2023		December 31, 2022
Deferred revenue	$	1,558	$	1,178
Deferred tax liabilities	463		157
Other long-term liabilities	5,105		1,745

Other long-term liabilities	$	7,126	$	3,080

Financial Statement Components - Schedule of Long-term Liabilities (Details) - USD ($) $ in Thousands	Sep. 30, 2023	Dec. 31, 2022
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Deferred revenue	$ 1,558	$ 1,178
Deferred tax liabilities	463	157
Other long-term liabilities	5,105	1,745
Other long-term liabilities	$ 7,126	$ 3,080

CONDENSED CONSOLIDATED STATEMENT OF STOCKHOLDERS’ EQUITY - USD ($) shares in Thousands, $ in Thousands	Total	Common Stock	Additional Paid-In Capital	Accumulated Other Comprehensive Income (Loss)	Accumulated Deficit
Beginning balance (in shares) at Dec. 31, 2021		68,488
Beginning balance at Dec. 31, 2021	$ 211,132	$ 68	$ 439,787	$ (287)	$ (228,436)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Issuance of common stock upon partial conversion of the 2023 convertible senior notes (in shares)		574
Issuance of common stock upon partial conversion of the 2023 convertible senior notes	(275)		(275)
Partial unwind of capped calls and retirement of common stock related to the 2023 convertible senior notes (in shares)		(119)
Partial unwind of capped calls and retirement of common stock related to the 2023 convertible senior notes	8		8
Issuance of common stock upon exercise of stock options (in shares)		419
Issuance of common stock upon exercise of stock options	5,358	$ 1	5,357
Issuance of common stock upon vesting of restricted stock units (in shares)		1,044
Issuance of common stock upon vesting of restricted stock units	2	$ 2	0
Issuance of common stock under ESPP (in shares)		97
Issuance of common stock under ESPP	8,338		8,338
Stock-based compensation	129,693		129,693
Other comprehensive income (loss)	(3,814)			(3,814)
Net loss	(80,997)				(80,997)
Ending balance (in shares) at Sep. 30, 2022		70,503
Ending balance at Sep. 30, 2022	269,445	$ 71	582,908	(4,101)	(309,433)
Beginning balance (in shares) at Jun. 30, 2022		70,090
Beginning balance at Jun. 30, 2022	244,902	$ 70	535,592	(4,534)	(286,226)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Issuance of common stock upon partial conversion of the 2023 convertible senior notes (in shares)		0
Issuance of common stock upon partial conversion of the 2023 convertible senior notes	(16)		(16)
Partial unwind of capped calls and retirement of common stock related to the 2023 convertible senior notes (in shares)		0
Partial unwind of capped calls and retirement of common stock related to the 2023 convertible senior notes	5		5
Issuance of common stock upon exercise of stock options (in shares)		68
Issuance of common stock upon exercise of stock options	2,353	$ 0	2,353
Issuance of common stock upon vesting of restricted stock units (in shares)		345
Issuance of common stock upon vesting of restricted stock units	1	$ 1	0
Stock-based compensation	44,974		44,974
Other comprehensive income (loss)	433			433
Net loss	(23,207)				(23,207)
Ending balance (in shares) at Sep. 30, 2022		70,503
Ending balance at Sep. 30, 2022	269,445	$ 71	582,908	(4,101)	(309,433)
Beginning balance (in shares) at Dec. 31, 2022		71,047
Beginning balance at Dec. 31, 2022	309,965	$ 71	635,668	(2,688)	(323,086)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Issuance of common stock upon partial conversion of the 2023 convertible senior notes (in shares)		2
Issuance of common stock upon partial conversion of the 2023 convertible senior notes	0
Partial unwind of capped calls and retirement of common stock related to the 2023 convertible senior notes (in shares)		(371)
Partial unwind of capped calls and retirement of common stock related to the 2023 convertible senior notes	74,453		74,453
Issuance of common stock upon exercise of stock options (in shares)		436
Issuance of common stock upon exercise of stock options	8,315	$ 0	8,315
Issuance of common stock upon vesting of restricted stock units (in shares)		1,378
Issuance of common stock upon vesting of restricted stock units	1	$ 2	(1)
Issuance of common stock under ESPP (in shares)		204
Issuance of common stock under ESPP	9,444		9,444
Stock-based compensation	159,208		159,208
Other comprehensive income (loss)	1,890			1,890
Net loss	(69,406)				(69,406)
Ending balance (in shares) at Sep. 30, 2023		72,696
Ending balance at Sep. 30, 2023	493,870	$ 73	887,087	(798)	(392,492)
Beginning balance (in shares) at Jun. 30, 2023		72,180
Beginning balance at Jun. 30, 2023	458,799	$ 72	832,197	(1,397)	(372,073)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Issuance of common stock upon exercise of stock options (in shares)		57
Issuance of common stock upon exercise of stock options	1,334		1,334
Issuance of common stock upon vesting of restricted stock units (in shares)		459
Issuance of common stock upon vesting of restricted stock units		$ 1	(1)
Stock-based compensation	53,557		53,557
Other comprehensive income (loss)	599			599
Net loss	(20,419)				(20,419)
Ending balance (in shares) at Sep. 30, 2023		72,696
Ending balance at Sep. 30, 2023	$ 493,870	$ 73	$ 887,087	$ (798)	$ (392,492)

Financial Statement Components - Schedule of Accounts Receivable (Details) - USD ($) $ in Thousands	Sep. 30, 2023	Dec. 31, 2022
Accounts Receivable [Line Items]
Allowance for credit losses	$ (253)	$ (262)
Accounts receivable, net	94,436	87,494
Trade accounts receivable
Accounts Receivable [Line Items]
Trade accounts receivable	83,122	77,621
Unbilled trade accounts receivable, net of advance client deposits
Accounts Receivable [Line Items]
Trade accounts receivable	$ 11,567	$ 10,135

Income Taxes	9 Months Ended
Income Taxes	Sep. 30, 2023
Income Tax Disclosure [Abstract]
Income Taxes	Income Taxes The provision for income taxes for the three and nine months ended September 30, 2023 was approximately $0.9 million and $2.2 million, respectively. The provision for income taxes for the three and nine months ended September 30, 2022 was approximately $0.6 million and $3.2 million, respectively. The provision for income taxes for the three and nine months ended September 30, 2023 consisted primarily of current U.S. state tax expense due to the lack of available net operating losses to offset the taxable income generated and foreign income tax expense due to the Company's intercompany cost-plus operating model. The provision for income taxes for the three and nine months ended September 30, 2022 consisted primarily of foreign deferred income tax expense from the intercompany sale of the Company's Australian intellectual property to the United States, U.S. state current income tax expense and foreign current income tax expense. For the three and nine months ended September 30, 2023, the provision for income taxes differed from the statutory amount primarily due to domestic state income taxes, foreign income taxes and the Company realizing no benefit for current year domestic losses due to maintaining a full valuation allowance against its domestic net deferred tax assets. For the three and nine months ended September 30, 2022, the provision for income taxes differed from the statutory amount primarily due to state and foreign income taxes and the Company realizing no benefit for current year domestic losses due to maintaining a full valuation allowance against its domestic net deferred tax assets. The realization of tax benefits from deferred tax assets is dependent upon future levels of taxable income, of an appropriate character, in the periods the items are expected to be deductible or taxable. Based on the available objective evidence, the Company does not believe it is more likely than not that the domestic net deferred tax assets will be realizable. Accordingly, the Company has provided a full valuation allowance against the domestic net deferred tax assets as of September 30, 2023 and December 31, 2022. The Company intends to maintain the remaining valuation allowance until sufficient positive evidence exists to support a reversal of, or decrease in, the valuation allowance. During the three and nine months ended September 30, 2023, there were no material changes to the total amount of unrecognized tax benefits.

- Definition

The entire disclosure for income taxes. Disclosures may include net deferred tax liability or asset recognized in an enterprise's statement of financial position, net change during the year in the total valuation allowance, approximate tax effect of each type of temporary difference and carryforward that gives rise to a significant portion of deferred tax liabilities and deferred tax assets, utilization of a tax carryback, and tax uncertainties information.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Topic 946
-SubTopic 20
-Name Accounting Standards Codification
-Section 50
-Paragraph 13
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147480990/946-20-50-13

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

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

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

Reference 5: http://www.xbrl.org/2003/role/disclosureRef
-Topic 740
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 21
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482685/740-10-50-21

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

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

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

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

Reference 10: http://www.xbrl.org/2003/role/disclosureRef
-Topic 740
-SubTopic 30
-Name Accounting Standards Codification
-Section 50
-Paragraph 2
-Subparagraph (a)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482603/740-30-50-2

+ Details

Investments and Fair Value Measurements - Schedule of Marketable Investments (Details) - USD ($) $ in Thousands	Sep. 30, 2023	Dec. 31, 2022
Debt Securities, Available-for-sale [Line Items]
Fair Value	$ 572,462	$ 434,628
Short-Term Marketable Investments
Debt Securities, Available-for-sale [Line Items]
Cost	574,111	436,928
Gross Unrealized Gains	11	37
Gross Unrealized Losses	(1,660)	(3,222)
Fair Value	572,462	433,743
Long-term Marketable Investments
Debt Securities, Available-for-sale [Line Items]
Cost		885
Gross Unrealized Gains		0
Gross Unrealized Losses		0
Fair Value		885
Certificates of deposit
Debt Securities, Available-for-sale [Line Items]
Fair Value	1,206	734
Certificates of deposit \| Short-Term Marketable Investments
Debt Securities, Available-for-sale [Line Items]
Cost	1,206	747
Gross Unrealized Gains	0	0
Gross Unrealized Losses	0	(13)
Fair Value	1,206	734
U.S. treasury securities
Debt Securities, Available-for-sale [Line Items]
Fair Value	263,086	185,402
U.S. treasury securities \| Short-Term Marketable Investments
Debt Securities, Available-for-sale [Line Items]
Cost	263,979	186,776
Gross Unrealized Gains	10	8
Gross Unrealized Losses	(903)	(1,382)
Fair Value	263,086	185,402
U.S. agency securities \| Short-Term Marketable Investments
Debt Securities, Available-for-sale [Line Items]
Cost	267,458	197,597
Gross Unrealized Gains	0	29
Gross Unrealized Losses	(659)	(1,660)
Fair Value	266,799	195,966
U.S. agency securities \| Long-term Marketable Investments
Debt Securities, Available-for-sale [Line Items]
Cost		885
Gross Unrealized Gains		0
Gross Unrealized Losses		0
Fair Value		885
Commercial paper
Debt Securities, Available-for-sale [Line Items]
Fair Value	31,403	25,386
Commercial paper \| Short-Term Marketable Investments
Debt Securities, Available-for-sale [Line Items]
Cost	31,412	25,386
Gross Unrealized Gains	1	0
Gross Unrealized Losses	(10)	0
Fair Value	31,403	25,386
Municipal bonds
Debt Securities, Available-for-sale [Line Items]
Fair Value		22,619
Municipal bonds \| Short-Term Marketable Investments
Debt Securities, Available-for-sale [Line Items]
Cost		22,764
Gross Unrealized Gains		0
Gross Unrealized Losses		(145)
Fair Value		22,619
Corporate bonds
Debt Securities, Available-for-sale [Line Items]
Fair Value	9,968	3,636
Corporate bonds \| Short-Term Marketable Investments
Debt Securities, Available-for-sale [Line Items]
Cost	10,056	3,658
Gross Unrealized Gains	0	0
Gross Unrealized Losses	(88)	(22)
Fair Value	$ 9,968	$ 3,636

Commitments and Contingencies - Narrative (Details) $ in Millions	9 Months Ended
	Sep. 30, 2023 USD ($)
Convertible Debt
Other Commitments [Line Items]
Debt balance	$ 747.5
Hosting and telecommunications agreement
Other Commitments [Line Items]
Total commitments under agreements	17.0
Purchase Commitment - Cloud Services Agreement
Other Commitments [Line Items]
Expiring commercial commitment balance	72.0
Commercial commitment to be paid remainder of 2023	10.9
Commercial commitment to be paid in year 2024	40.7
Commercial commitment to be paid in year 2025	19.9
Commercial commitment to be paid in year 2026	$ 0.5
Maximum \| Hosting and telecommunications agreement
Other Commitments [Line Items]
Period for various agreements (in months)	57 months

Leases - Lease Cost and Supplemental Cash Flow (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2023	Sep. 30, 2022	Sep. 30, 2023	Sep. 30, 2022
Leases [Abstract]
Operating lease cost	$ 3,360	$ 2,969	$ 10,112	$ 8,738
Finance lease cost:
Amortization of right-of-use assets	491	141	570	609
Interest on finance lease liabilities	83	0	83	0
Total finance lease cost	574	141	653	609
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash used in operating leases	(3,001)	(2,951)	(8,319)	(8,489)
Financing cash used in finance leases	(496)	0	(496)	0
Operating leases	795	3,899	6,273	4,483
Finance leases	$ 2,936	$ 0	$ 5,103	$ 0

Debt - Schedule of Net Carrying Amount of the Liability Component of the Notes (Details) - Convertible Debt - USD ($) $ in Thousands	Sep. 30, 2023	Dec. 31, 2022
Debt Instrument [Line Items]
Principal	$ 747,500
Convertible Senior Notes, Due 2025
Debt Instrument [Line Items]
Principal	747,500	$ 747,500
Unamortized issuance costs	(6,331)	(9,124)
Net carrying amount	$ 741,169	$ 738,376

- Definition

Line items represent financial concepts included in a table. These concepts are used to disclose reportable information associated with domain members defined in one or many axes to the table.

+ References

+ Details

- Definition

Amount, after deduction of unamortized premium (discount) and debt issuance cost, of long-term debt. Excludes lease obligation.

+ References + Details