0001288847-23-000077 | 10-Q | XBRL Viewer

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CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	Mar. 31, 2023	Dec. 31, 2022
Current assets:
Cash and cash equivalents	$ 141,359	$ 180,520
Marketable investments	488,381	433,743
Accounts receivable, net	88,085	87,494
Prepaid expenses and other current assets	32,018	29,711
Deferred contract acquisition costs, net	50,566	47,242
Total current assets	800,409	778,710
Property and equipment, net	101,057	101,221
Operating lease right-of-use assets	45,339	44,120
Intangible assets, net	25,346	28,192
Goodwill	165,420	165,420
Marketable investments	13,498	885
Other assets	15,240	11,057
Deferred contract acquisition costs, net — less current portion	119,799	114,880
Total assets	1,286,108	1,244,485
Current liabilities:
Accounts payable	22,461	23,629
Accrued and other current liabilities	62,196	53,092
Operating lease liabilities	11,739	10,626
Accrued federal fees	3,360	2,471
Sales tax liabilities	2,209	2,973
Deferred revenue	58,082	57,816
Convertible senior notes	169	169
Total current liabilities	160,216	150,776
Convertible senior notes — less current portion	739,284	738,376
Sales tax liabilities — less current portion	906	899
Operating lease liabilities — less current portion	41,703	41,389
Other long-term liabilities	4,913	3,080
Total liabilities	947,022	934,520
Commitments and contingencies (Note 10)
Stockholders’ equity:
Common stock	72	71
Additional paid-in capital	690,309	635,668
Accumulated other comprehensive loss	(961)	(2,688)
Accumulated deficit	(350,334)	(323,086)
Total stockholders’ equity	339,086	309,965
Total liabilities and stockholders’ equity	$ 1,286,108	$ 1,244,485

Leases (Tables)

3 Months Ended

Mar. 31, 2023

Leases [Abstract]

Schedule of Lease Expenses and Terms

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


	Three Months Ended
	March 31, 2023		March 31, 2022
Operating lease cost	$	3,382	$	2,900
Finance lease cost:
Amortization of right-of-use assets	$	63	$	333

Total finance lease cost	$	63	$	333

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


	Three Months Ended
	March 31, 2023		March 31, 2022
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash used in operating leases	$	(3,275)	$	(2,709)

Right of use assets obtained in exchange for lease obligations:
Operating leases	4,153		236

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

March 31, 2023

December 31, 2022

Weighted average remaining lease term

Operating leases

6.1

6.4

Weighted average discount rates were as follows:


	March 31, 2023		December 31, 2022
Weighted average discount rate
Operating leases	3.6	%	3.4	%

Schedule of Balance Sheet Information Related to Leases

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


	March 31, 2023		December 31, 2022
Operating leases
Operating lease right-of-use assets	$	45,339	$	44,120

Operating lease liabilities	$	11,739	$	10,626
Operating lease liabilities — less current portion	41,703		41,389
Total operating lease liabilities	$	53,442	$	52,015
Finance leases
Property and equipment, gross	$	30,015	$	36,282
Less: accumulated depreciation and amortization	(29,999)		(36,203)
Property and equipment, net	$	16	$	79

Schedule of Operating Lease Maturities

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


Year Ending December 31,	Operating Leases
Remaining 2023	$	10,155
2024	11,379
2025	8,436
2026	6,541
2027	5,733
Thereafter	17,081
Total future minimum lease payments	59,325
Less: imputed interest	(5,883)
Total	$	53,442

Financial Statement Components - Schedule of Cash and Cash Equivalents (Details) - USD ($) $ in Thousands	Mar. 31, 2023	Dec. 31, 2022	Mar. 31, 2022	Dec. 31, 2021
Cash and Cash Equivalents [Line Items]
Total cash and cash equivalents	$ 141,359	$ 180,520	$ 100,151	$ 90,878
Cash
Cash and Cash Equivalents [Line Items]
Total cash and cash equivalents	124,063	123,260
Money market funds
Cash and Cash Equivalents [Line Items]
Total cash and cash equivalents	17,296	37,560
U.S. treasury
Cash and Cash Equivalents [Line Items]
Total cash and cash equivalents	$ 0	$ 19,700

Goodwill and Intangible Assets - Goodwill and Intangible Asset Activity (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Finite-lived Intangible Assets [Roll Forward]
Beginning of the period	$ 28,192
Amortization	(2,846)	$ (2,900)
End of the period	$ 25,346

Financial Statement Components - Schedule of Long-term Liabilities (Details) - USD ($) $ in Thousands	Mar. 31, 2023	Dec. 31, 2022
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Deferred revenue	$ 1,093	$ 1,178
Deferred tax liabilities	206	157
Other long-term liabilities	3,614	1,745
Other long-term liabilities	$ 4,913	$ 3,080

Cover Page - shares	3 Months Ended
Cover Page - shares	Mar. 31, 2023	May 01, 2023
Cover [Abstract]
Document Type	10-Q
Document Quarterly Report	true
Document Period End Date	Mar. 31, 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		71,176,473
Entity Central Index Key	0001288847
Current Fiscal Year End Date	--12-31
Document Fiscal Year Focus	2023
Document Fiscal Period Focus	Q1
Amendment Flag	false

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)		540
Issuance of common stock upon partial conversion of the 2023 convertible senior notes	(244)		(244)
Partial unwind of capped calls and retirement of common stock related to the 2023 convertible senior notes (in shares)		(111)
Partial unwind of capped calls and retirement of common stock related to the 2023 convertible senior notes	2		2
Issuance of common stock upon exercise of stock options (in shares)		281
Issuance of common stock upon exercise of stock options	1,277	$ 1	1,276
Issuance of common stock upon vesting of restricted stock units (in shares)		323
Issuance of common stock upon vesting of restricted stock units	1	$ 1
Stock-based compensation	39,394		39,394
Other comprehensive income (loss)	(3,083)			(3,083)
Net loss	(34,120)				(34,120)
Ending balance (in shares) at Mar. 31, 2022		69,521
Ending balance at Mar. 31, 2022	214,359	$ 70	480,215	(3,370)	(262,556)
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 exercise of stock options (in shares)		139
Issuance of common stock upon exercise of stock options	3,125		3,125
Issuance of common stock upon vesting of restricted stock units (in shares)		358
Issuance of common stock upon vesting of restricted stock units	1	$ 1
Stock-based compensation	51,516		51,516
Other comprehensive income (loss)	1,727			1,727
Net loss	(27,248)				(27,248)
Ending balance (in shares) at Mar. 31, 2023		71,544
Ending balance at Mar. 31, 2023	$ 339,086	$ 72	$ 690,309	$ (961)	$ (350,334)

Stockholders' Equity - Performance-Based Restricted Stock Units (Narrative) (Details) $ in Millions	1 Months Ended		3 Months Ended							12 Months Ended
	Jun. 30, 2022	Feb. 28, 2022	Mar. 31, 2023	Mar. 31, 2023 shares	Mar. 31, 2023 USD ($)	Mar. 31, 2023	Mar. 31, 2023 Rate	Mar. 31, 2023 period	Mar. 31, 2023 installment	Dec. 31, 2022 USD ($) 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
Award vesting percentage		33.33%
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)							3020.00%
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	0.00%
PRSUs \| Maximum
Stockholders' Equity Capital Structure [Line Items]
Earnout target percentage (as a percent)						2	200.00%
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

Leases - Weighted Average Remaining Terms and Discount Rates (Details)	Mar. 31, 2023	Dec. 31, 2022
Leases [Abstract]
Weighted average remaining lease term	6 years 1 month 6 days	6 years 4 months 24 days
Weighted average discount rate	3.60%	3.40%

Revenue - Contract Balances (Details) - USD ($) $ in Thousands	Mar. 31, 2023	Dec. 31, 2022
Revenue from Contract with Customer [Abstract]
Accounts receivable, net	$ 88,085	$ 87,494
Deferred contract acquisition costs, net:
Current	50,566	47,242
Non-current	119,799	114,880
Total deferred contract acquisition costs, net	170,365	162,122
Contract assets and contract liabilities:
Contract assets (included in prepaid expenses and other current assets)	3,209	3,401
Contract liabilities (deferred revenue)	(58,082)	(57,816)
Noncurrent contract liabilities (deferred revenue) (included in other long-term liabilities)	(1,093)	(1,178)
Net contract liabilities	$ (55,966)	$ (55,593)

Stockholders' Equity - Stock Option Activity (Details) - Stock options $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended
	Mar. 31, 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	(139)
Options forfeited or expired (in shares) \| shares	(39)
Outstanding, ending balance (in shares) \| shares	1,303
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	22.49
Options forfeited or expired, weighted average exercise price (in USD per share) \| $ / shares	139.87
Outstanding, ending balance, weighted average exercise price (in USD per share) \| $ / shares	$ 47.66
Outstanding, ending balance, weighted average remaining contractual life (years)	4 years 6 months
Outstanding, ending balance, aggregate intrinsic value \| $	$ 49,139

Financial Statement Components - Schedule of Property and Equipment (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022	Dec. 31, 2022
Property, Plant and Equipment [Line Items]
Property and equipment	$ 215,274		$ 215,755
Accumulated depreciation and amortization	(114,217)		(114,534)
Property and equipment, net	101,057		101,221
Depreciation and amortization associated with property and equipment	8,500	$ 7,800
Computer and network equipment
Property, Plant and Equipment [Line Items]
Property and equipment	142,408		148,789
Computer software
Property, Plant and Equipment [Line Items]
Property and equipment	54,183		50,955
Internal-use software development costs
Property, Plant and Equipment [Line Items]
Property and equipment	8,690		6,111
Furniture and fixtures
Property, Plant and Equipment [Line Items]
Property and equipment	3,990		3,326
Leasehold improvements
Property, Plant and Equipment [Line Items]
Property and equipment	$ 6,003		$ 6,574

Leases - Lease Cost and Supplemental Cash Flow (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Leases [Abstract]
Operating lease cost	$ 3,382	$ 2,900
Finance lease cost:
Amortization of right-of-use assets	63	333
Total finance lease cost	63	333
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash used in operating leases	(3,275)	(2,709)
Operating leases	$ 4,153	$ 236

Commitments and Contingencies	3 Months Ended
Commitments and Contingencies	Mar. 31, 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, 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 three months ended March 31, 2023 are disclosed herein, including in this Note 10 and in Note 12. As of March 31, 2023, the Company’s commitments under various co-location hosting and telecommunications agreements totaled $15.3 million for terms ranging up to 60 months. These agreements require the Company to make monthly payments over the service term in exchange for certain network services. As of March 31, 2023, the Company had outstanding cloud services and software and maintenance agreement commitments totaling $46.3 million, of which $25.2 million is expected to be paid in the remainder of 2023, $17.1 million is expected to be paid in 2024, and the remaining $4.0 million is expected to be paid in 2025. As of March 31, 2023, $747.7 million of aggregate principal of the convertible senior notes were outstanding. The 2023 convertible senior notes and the 2025 convertible senior notes are due on May 1, 2023 and June 1, 2025, respectively. 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.

Income Taxes (Details) - USD ($) $ in Thousands	3 Months Ended
Income Taxes (Details) - USD ($) $ in Thousands	Mar. 31, 2023	Mar. 31, 2022
Income Tax Disclosure [Abstract]
Provision for income taxes	$ 527	$ 2,256

- Definition

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

+ References + Details

Leases - Balance Sheet Disclosures (Details) - USD ($) $ in Thousands	Mar. 31, 2023	Dec. 31, 2022
Operating leases
Operating lease right-of-use assets	$ 45,339	$ 44,120
Operating lease liabilities	11,739	10,626
Operating lease liabilities — less current portion	41,703	41,389
Total operating lease liabilities	53,442	52,015
Finance leases
Property and equipment, gross	30,015	36,282
Less: accumulated depreciation and amortization	(29,999)	(36,203)
Property and equipment, net	$ 16	$ 79
Finance Lease, Right-of-Use Asset, Balance Sheet Location [Extensible List]	Property and equipment, net	Property and equipment, net

Debt (Tables)

3 Months Ended

Mar. 31, 2023

Convertible Senior Notes, Due 2025

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 March 31, 2023 and as of December 31, 2022 was as follows (in thousands):


	March 31, 2023		December 31, 2022
Principal	$	747,500	$	747,500

Unamortized issuance costs	(8,216)		(9,124)
Net carrying amount	$	739,284	$	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
	March 31, 2023		March 31, 2022
Contractual interest expense	$	934	$	934

Amortization of issuance costs	908		899
Total interest expense	$	1,842	$	1,833

Convertible Senior Notes, Due 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 2023 convertible senior notes as of March 31, 2023 and as of December 31, 2022 was as follows (in thousands):


	March 31, 2023		December 31, 2022
Principal	$	169	$	169

Unamortized issuance costs	—		—
Net carrying amount	$	169	$	169

Schedule of Interest Expense Related to the Notes

Interest expense related to the 2023 convertible senior notes was as follows (in thousands):


	Three Months Ended
	March 31, 2023		March 31, 2022
Contractual interest expense	$	—	$	6

Amortization of issuance costs	—		31
Total interest expense	$	—	$	37

Goodwill and Intangible Assets (Tables)

3 Months Ended

Mar. 31, 2023

Goodwill and Intangible Assets Disclosure [Abstract]

Schedule of Intangible Assets Activity

The following table summarizes the activity in the Company's intangible assets balance during the three months ended March 31, 2023 (in thousands):


	Three Months Ended March 31, 2023
Beginning of the period	$	28,192
Amortization	(2,846)
End of the period	$	25,346

Schedule of Intangible Assets

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



	March 31, 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	$	56,214	$	(31,647)	$	24,567	3.0	$	56,214	$	(28,881)	$	27,333	3.2
Acquired workforce	470		(470)		—		0.0	470		(470)		0		0.0
Customer relationships	1,600		(821)		779		2.5	1,600		(741)		859		2.7
Trademarks	500		(500)		—		0.0	500		(500)		—		0.0
Total	$	58,784	$	(33,438)	$	25,346	3.0	$	58,784	$	(30,592)	$	28,192	3.2

Schedule of Expected Future Amortization Expense of Intangible Assets

As of March 31, 2023, the expected future amortization expense for intangible assets was as follows (in thousands):


Period	Expected Future Amortization Expense
Remaining 2023	$	8,024
2024	7,527
2025	5,595
2026	4,200
2027	—
Thereafter	—
Total	$	25,346

Financial Statement Components - Schedule of Accrued and Other Current Liabilities (Details) - USD ($) $ in Thousands	Mar. 31, 2023	Dec. 31, 2022
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Accrued expenses	$ 21,964	$ 19,343
Accrued compensation and benefits	40,232	33,749
Accrued and other current liabilities	$ 62,196	$ 53,092

Stockholders' Equity - Valuation Assumptions (Details) - $ / shares	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Class of Stock
Closing price of common stock as of grant date (February 28, 2022) (in USD per share)	$ 72.29
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 (February 28, 2022) (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%

Leases

3 Months Ended

Mar. 31, 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
	March 31, 2023		March 31, 2022
Operating lease cost	$	3,382	$	2,900
Finance lease cost:
Amortization of right-of-use assets	$	63	$	333

Total finance lease cost	$	63	$	333

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


	Three Months Ended
	March 31, 2023		March 31, 2022
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash used in operating leases	$	(3,275)	$	(2,709)

Right of use assets obtained in exchange for lease obligations:
Operating leases	4,153		236

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


	March 31, 2023		December 31, 2022
Operating leases
Operating lease right-of-use assets	$	45,339	$	44,120

Operating lease liabilities	$	11,739	$	10,626
Operating lease liabilities — less current portion	41,703		41,389
Total operating lease liabilities	$	53,442	$	52,015
Finance leases
Property and equipment, gross	$	30,015	$	36,282
Less: accumulated depreciation and amortization	(29,999)		(36,203)
Property and equipment, net	$	16	$	79

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

March 31, 2023

December 31, 2022

Weighted average remaining lease term

Operating leases

6.1

6.4

Weighted average discount rates were as follows:


	March 31, 2023		December 31, 2022
Weighted average discount rate
Operating leases	3.6	%	3.4	%

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


Year Ending December 31,	Operating Leases
Remaining 2023	$	10,155
2024	11,379
2025	8,436
2026	6,541
2027	5,733
Thereafter	17,081
Total future minimum lease payments	59,325
Less: imputed interest	(5,883)
Total	$	53,442

Leases

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


	Three Months Ended
	March 31, 2023		March 31, 2022
Operating lease cost	$	3,382	$	2,900
Finance lease cost:
Amortization of right-of-use assets	$	63	$	333

Total finance lease cost	$	63	$	333

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


	Three Months Ended
	March 31, 2023		March 31, 2022
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash used in operating leases	$	(3,275)	$	(2,709)

Right of use assets obtained in exchange for lease obligations:
Operating leases	4,153		236

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


	March 31, 2023		December 31, 2022
Operating leases
Operating lease right-of-use assets	$	45,339	$	44,120

Operating lease liabilities	$	11,739	$	10,626
Operating lease liabilities — less current portion	41,703		41,389
Total operating lease liabilities	$	53,442	$	52,015
Finance leases
Property and equipment, gross	$	30,015	$	36,282
Less: accumulated depreciation and amortization	(29,999)		(36,203)
Property and equipment, net	$	16	$	79

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

March 31, 2023

December 31, 2022

Weighted average remaining lease term

Operating leases

6.1

6.4

Weighted average discount rates were as follows:


	March 31, 2023		December 31, 2022
Weighted average discount rate
Operating leases	3.6	%	3.4	%

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


Year Ending December 31,	Operating Leases
Remaining 2023	$	10,155
2024	11,379
2025	8,436
2026	6,541
2027	5,733
Thereafter	17,081
Total future minimum lease payments	59,325
Less: imputed interest	(5,883)
Total	$	53,442

Geographical Information

3 Months Ended

Mar. 31, 2023

Segment Reporting [Abstract]

Geographical Information

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



	Three Months Ended
	March 31, 2023		March 31, 2022
United States	$	195,363	$	167,247
International	23,076		15,530
Total revenue	$	218,439	$	182,777

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



	March 31, 2023		December 31, 2022
United States	$	93,001	$	92,659
International	8,056		8,562
Property and equipment, net	$	101,057	$	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
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 31
-URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e8924-108599

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
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-Name Accounting Standards Codification
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Reference 3: http://www.xbrl.org/2003/role/disclosureRef
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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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-Name Accounting Standards Codification
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-Name Accounting Standards Codification
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Reference 14: http://www.xbrl.org/2003/role/disclosureRef
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-Name Accounting Standards Codification
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-URI https://asc.fasb.org/topic&trid=2134510

+ Details

Revenue

3 Months Ended

Mar. 31, 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):


	March 31, 2023		December 31, 2022
Accounts receivable, net	$	88,085	$	87,494

Deferred contract acquisition costs, net:
Current	$	50,566	$	47,242
Non-current	119,799		114,880
Total deferred contract acquisition costs, net	$	170,365	$	162,122

Contract assets and contract liabilities:
Contract assets (included in prepaid expenses and other current assets)	$	3,209	$	3,401
Contract liabilities (deferred revenue)	(58,082)		(57,816)
Noncurrent contract liabilities (deferred revenue) (included in other long-term liabilities)	(1,093)		(1,178)
Net contract liabilities	$	(55,966)	$	(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 months ended March 31, 2023, the Company recognized revenue of $31.4 million related to its contract liabilities at December 31, 2022.

Remaining Performance Obligations

As of March 31, 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 $918.3 million. The Company expects to recognize revenue on approximately three-fifths 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
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-URI https://asc.fasb.org/topic&trid=49130388

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
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Reference 3: http://www.xbrl.org/2003/role/disclosureRef
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Reference 5: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
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Reference 6: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
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-Paragraph 12
-Subparagraph (e)
-URI https://asc.fasb.org/extlink&oid=126920106&loc=SL49130554-203045

Reference 7: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-SubTopic 10
-Section 50
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-Subparagraph (a)
-URI https://asc.fasb.org/extlink&oid=126920106&loc=SL49130554-203045

Reference 8: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
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-URI https://asc.fasb.org/extlink&oid=126920106&loc=SL49130554-203045

Reference 9: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-SubTopic 10
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-Paragraph 15
-URI https://asc.fasb.org/extlink&oid=126920106&loc=SL49130558-203045

Reference 10: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-SubTopic 10
-Section 50
-Paragraph 12
-Subparagraph (c)
-URI https://asc.fasb.org/extlink&oid=126920106&loc=SL49130554-203045

+ Details

Revenue - Narrative (Details) $ in Millions	3 Months Ended
Revenue - Narrative (Details) $ in Millions	Mar. 31, 2023 USD ($)
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]
Contract revenue recognized	$ 31.4
Contract acquisition costs
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]
Amortization period of capitalized contract cost (in years)	5 years

Commitments and Contingencies - Narrative (Details) $ in Millions	3 Months Ended
	Mar. 31, 2023 USD ($)
Convertible Debt
Other Commitments [Line Items]
Debt balance	$ 747.7
Hosting and telecommunications agreement
Other Commitments [Line Items]
Total commitments under agreements	15.3
Purchase Commitment - Cloud Services Agreement
Other Commitments [Line Items]
Expiring commercial commitment balance	46.3
Commercial commitment to be paid remainder of 2023	25.2
Commercial commitment to be paid in year 2024	17.1
Commercial commitment to be paid in year 2025	$ 4.0
Maximum \| Hosting and telecommunications agreement
Other Commitments [Line Items]
Period for various agreements (in months)	60 months

Investments and Fair Value Measurements - Schedule of Continuous Unrealized Loss Position (Details) - USD ($) $ in Thousands	Mar. 31, 2023	Dec. 31, 2022
Debt Securities, Available-for-sale [Line Items]
Gross Unrealized Losses	$ (1,848)	$ (3,222)
Fair Value	340,881	315,985
Certificates of deposit
Debt Securities, Available-for-sale [Line Items]
Gross Unrealized Losses	(8)	(13)
Fair Value	490	734
U.S. treasury
Debt Securities, Available-for-sale [Line Items]
Gross Unrealized Losses	(668)	(1,382)
Fair Value	90,248	126,534
U.S. agency securities
Debt Securities, Available-for-sale [Line Items]
Gross Unrealized Losses	(1,020)	(1,660)
Fair Value	203,987	172,458
Commercial paper
Debt Securities, Available-for-sale [Line Items]
Gross Unrealized Losses	(39)	0
Fair Value	28,874	0
Municipal bonds
Debt Securities, Available-for-sale [Line Items]
Gross Unrealized Losses	(97)	(145)
Fair Value	12,622	12,623
Corporate bonds
Debt Securities, Available-for-sale [Line Items]
Gross Unrealized Losses	(16)	(22)
Fair Value	$ 4,660	$ 3,636

Leases - Lease Maturities (Details) - USD ($) $ in Thousands	Mar. 31, 2023	Dec. 31, 2022
Operating Leases
Remaining 2023	$ 10,155
2024	11,379
2025	8,436
2026	6,541
2027	5,733
Thereafter	17,081
Total future minimum lease payments	59,325
Less: imputed interest	(5,883)
Total	$ 53,442	$ 52,015

Subsequent Events (Details) - USD ($) $ in Thousands		1 Months Ended	3 Months Ended
Subsequent Events (Details) - USD ($) $ in Thousands	May 01, 2023	May 31, 2020	Mar. 31, 2022
Subsequent Event [Line Items]
Early settlement of convertible senior notes			$ (244)
Common Stock
Subsequent Event [Line Items]
Early settlement of convertible senior notes (in shares)			540,000
Convertible Senior Notes, Due 2023 \| Convertible Debt
Subsequent Event [Line Items]
Debt instrument, repurchase amount		$ 181,000
Convertible Senior Notes, Due 2023 \| Convertible Debt \| Common Stock
Subsequent Event [Line Items]
Early settlement of convertible senior notes (in shares)		2,723,581
Subsequent Event \| Convertible Senior Notes, Due 2023 \| Convertible Debt
Subsequent Event [Line Items]
Debt instrument, repurchase amount	$ 194,700
Subsequent Event \| Convertible Senior Notes, Due 2023 \| Convertible Debt \| Common Stock
Subsequent Event [Line Items]
Early settlement of convertible senior notes (in shares)	370,877
Early settlement of convertible senior notes	$ 74,500

Investments and Fair Value Measurements - Narrative (Details) - USD ($)	Mar. 31, 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	300,000
Convertible Senior Notes, Due 2025 \| Level 2 \| Convertible Debt
Debt Instrument [Line Items]
Fair value of long-term debt	$ 700,700,000	$ 687,100,000

Goodwill and Intangible Assets

3 Months Ended

Mar. 31, 2023

Goodwill and Intangible Assets Disclosure [Abstract]

Goodwill and Intangible Assets

Goodwill

There was no activity in the Company's goodwill balance during the three months ended March 31, 2023.

Intangible Assets

The following table summarizes the activity in the Company's intangible assets balance during the three months ended March 31, 2023 (in thousands):


	Three Months Ended March 31, 2023
Beginning of the period	$	28,192
Amortization	(2,846)
End of the period	$	25,346

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



	March 31, 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	$	56,214	$	(31,647)	$	24,567	3.0	$	56,214	$	(28,881)	$	27,333	3.2
Acquired workforce	470		(470)		—		0.0	470		(470)		0		0.0
Customer relationships	1,600		(821)		779		2.5	1,600		(741)		859		2.7
Trademarks	500		(500)		—		0.0	500		(500)		—		0.0
Total	$	58,784	$	(33,438)	$	25,346	3.0	$	58,784	$	(30,592)	$	28,192	3.2

Amortization expense related to intangible assets was $2.8 million and $2.9 million for the three months ended March 31, 2023 and 2022, respectively.

As of March 31, 2023, the expected future amortization expense for intangible assets was as follows (in thousands):


Period	Expected Future Amortization Expense
Remaining 2023	$	8,024
2024	7,527
2025	5,595
2026	4,200
2027	—
Thereafter	—
Total	$	25,346

Stockholders' Equity - Narrative (Details) - $ / shares	Mar. 31, 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)	71,544,294	71,047,179
Common stock shares outstanding (in shares)	71,544,294	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)	$ 72.29

Stockholders' Equity - Stock-based Compensation (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Stock-based Compensation Expense
Total stock-based compensation expense	$ 50,743	$ 39,394
Stock options
Stock-based Compensation Expense
Unrecognized stock-based compensation expense	$ 9,144
Weighted-average amortization period	2 years
RSU (excluding PRSUs)
Stock-based Compensation Expense
Unrecognized stock-based compensation expense	$ 375,880
Weighted-average amortization period	2 years 9 months 18 days
PRSU
Stock-based Compensation Expense
Unrecognized stock-based compensation expense	$ 22,462
Weighted-average amortization period	2 years 2 months 12 days
ESPP
Stock-based Compensation Expense
Unrecognized stock-based compensation expense	$ 1,086
Weighted-average amortization period	1 month 6 days
Cost of revenue
Stock-based Compensation Expense
Total stock-based compensation expense	$ 9,333	7,793
Research and development
Stock-based Compensation Expense
Total stock-based compensation expense	12,382	10,145
Sales and marketing
Stock-based Compensation Expense
Total stock-based compensation expense	17,045	13,424
General and administrative
Stock-based Compensation Expense
Total stock-based compensation expense	$ 11,983	$ 8,032

Debt - Convertible Senior Notes and Capped Call (Narrative) (Details)	1 Months Ended		2 Months Ended	3 Months Ended		39 Months Ended
	May 31, 2020 USD ($) shares	May 31, 2018 USD ($) $ / shares	Jun. 30, 2020 USD ($) $ / shares	Mar. 31, 2023 USD ($) day $ / shares Rate shares	Mar. 31, 2022 USD ($) shares	Sep. 30, 2022 day trigger	May 21, 2020 $ / shares
Debt Instrument [Line Items]
Cash consideration to repurchase note \| $				$ 0	$ 31,905,000
Common Stock
Debt Instrument [Line Items]
Equity component from partial repurchase of 2023 convertible senior notes (in shares) \| shares					540,000
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
Premium on conversion price in relation to closing price (as a percent)							30.00%
Closing price of common stock (in USD per share) \| $ / shares				72.29			$ 103.34
Share price of common stock with conversion premium (in USD per share) \| $ / shares				$ 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
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 ratio on convertible debt \| Rate				2.44978%
Conversion price on convertible debt (in USD per share) \| $ / shares				$ 40.82
Cap price of the capped call transactions (in USD per share) \| $ / shares		$ 62.80
Debt instrument, repurchase amount \| $	$ 181,000,000
Aggregate consideration to repurchase note \| $	449,600,000
Cash consideration to repurchase note \| $	$ 181,000,000
Convertible debt \| $				$ 200,000
Number of conversion features triggered \| trigger						1
Conversion price per share, requiring conversion of instrument (in USD per share) \| $ / shares				$ 53.07
Number of shares covered in the capped call transactions (in shares) \| shares				6,300,000
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
Convertible Senior Notes, Due 2023 \| 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 2023 \| Convertible Debt \| Convertible, Term One
Debt Instrument [Line Items]
Number of trading days (in days) \| day				20		20
Number of consecutive trading days (in days) \| day				30		30
Threshold percentage of stock price trigger (as a percent)				130.00%		130.00%
Convertible Senior Notes, Due 2023 \| 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 2023 \| Convertible Debt \| Private Placement
Debt Instrument [Line Items]
Aggregate principal amount of debt \| $		$ 258,800,000

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Cash flows from operating activities:
Net loss	$ (27,248)	$ (34,120)
Adjustments to reconcile net loss to net cash provided by operating activities:
Depreciation and amortization	11,347	10,795
Amortization of operating lease right-of-use assets	2,934	2,403
Amortization of deferred contract acquisition costs	12,423	8,678
(Accretion of discount) amortization of premium on marketable investments	(1,863)	700
Provision for credit losses	317	222
Stock-based compensation	50,743	39,394
Amortization of discount and issuance costs on convertible senior notes	908	930
Deferred taxes	59	1,889
Other	439	470
Changes in operating assets and liabilities:
Accounts receivable	(908)	5,566
Prepaid expenses and other current assets	(2,307)	(2,162)
Deferred contract acquisition costs	(20,665)	(20,160)
Other assets	(4,231)	234
Accounts payable	1,557	11,133
Accrued and other current liabilities	7,599	2,096
Accrued federal fees and sales tax liabilities	133	(1,239)
Deferred revenue	181	2,659
Other liabilities	1,994	(764)
Net cash provided by operating activities	33,412	28,724
Cash flows from investing activities:
Purchases of marketable investments	(140,892)	(105,277)
Proceeds from sales of marketable investments	0	600
Proceeds from maturities of marketable investments	76,940	130,821
Purchases of property and equipment	(9,928)	(12,398)
Capitalization of software development costs	(1,806)	(569)
Cash paid for an equity investment in a privately-held company	0	(2,000)
Net cash (used in) provided by investing activities	(75,686)	11,177
Cash flows from financing activities:
Repurchase of a portion of 2023 convertible senior notes, net of costs	0	(31,905)
Proceeds from exercise of common stock options	3,125	1,277
Net cash provided by (used in) financing activities	3,125	(30,628)
Net (decrease) increase in cash, cash equivalents and restricted cash	(39,149)	9,273
Cash, cash equivalents and restricted cash:
Beginning of period	180,987	90,878
End of period	141,838	100,151
Supplemental disclosures of cash flow data:
Cash paid for interest	2	0
Cash paid for income taxes	32	337
Non-cash investing and financing activities:
Equipment and software purchased and unpaid at period-end	8,310	22,365
Stock-based compensation included in capitalized software development costs	773	0
Reconciliation of Cash, Cash Equivalents and Restricted Cash to the Condensed Consolidated Balance Sheets
Cash and cash equivalents	141,359	100,151
Restricted cash in other assets	479	0
Total cash, cash equivalents and restricted cash	$ 141,838	$ 100,151

Investments and Fair Value Measurements (Tables)

3 Months Ended

Mar. 31, 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 marketable investments as of March 31, 2023 and December 31, 2022 were as follows (in thousands):



	March 31, 2023
Short-Term Marketable Investments	Cost		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value
Certificates of deposit	$	2,201	$	—	$	(8)	$	2,193
U.S. treasury	169,888		35		(668)		169,255
U.S. agency securities	267,338		50		(1,019)		266,369
Commercial paper	35,327		1		(39)		35,289
Municipal bonds	12,719		—		(97)		12,622
Corporate bonds	2,663		—		(10)		2,653
Total	$	490,136	$	86	$	(1,841)	$	488,381

	March 31, 2023
Long-term Marketable Investments	Cost		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value


U.S. agency securities	$	11,478	$	14	$	(1)	$	11,491

Corporate bonds	2,013		—		(6)		2,007
Total	$	13,491	$	14	$	(7)	$	13,498



	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 March 31, 2023 and December 31, 2022 (in thousands):


	March 31, 2023				December 31, 2022

	Gross Unrealized Losses		Fair Value		Gross Unrealized Losses		Fair Value
Certificates of deposit	$	(8)	$	490	$	(13)	$	734
U.S. treasury securities	(668)		90,248		(1,382)		126,534
U.S. agency securities	(1,020)		203,987		(1,660)		172,458
Commercial paper	(39)		28,874		—		—
Municipal bonds	(97)		12,622		(145)		12,623
Corporate bonds	(16)		4,660		(22)		3,636
Total	$	(1,848)	$	340,881	$	(3,222)	$	315,985

Schedule of Assets Carried at Fair Value

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


	March 31, 2023
	Level 1		Level 2		Level 3		Total
Assets
Cash equivalents
Money market funds	$	17,296	$	—	$	—	$	17,296






Total cash equivalents	$	17,296	$	—	$	—	$	17,296

Marketable investments (short and long term)
Certificates of deposit	$	—	$	2,193	$	—	$	2,193
U.S. treasury	169,255		—		—		169,255
U.S. agency securities and government sponsored securities	—		277,860		—		277,860
Commercial paper	—		35,289		—		35,289
Municipal bonds	—		12,622		—		12,622
Corporate bonds	—		4,660		—		4,660
Total marketable investments	$	169,255	$	332,624	$	—	$	501,879



	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

Net Loss Per Share

3 Months Ended

Mar. 31, 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 months ended March 31, 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
	March 31, 2023		March 31, 2022
Net loss	$	(27,248)	$	(34,120)
Weighted-average shares used in computing basic and diluted net loss per share	71,259		68,974
Basic and diluted net loss per share	$	(0.38)	$	(0.49)

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
	March 31, 2023	March 31, 2022
Stock options	1,303	1,768
RSUs (includes PRSUs)	4,842	3,236
Convertible senior notes	5,568	6,042

Total	11,713	11,046

The Company used the if-converted method for calculating any potential dilutive effect of its convertible senior notes for the three months ended March 31, 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 months ended March 31, 2023 and 2022 because the effect would have been anti-dilutive.

Stockholders' Equity (Tables)

3 Months Ended

Mar. 31, 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 March 31, 2023 were as follows (in thousands):


						March 31, 2023
Stock options outstanding						1,303
RSUs (including PRSUs) outstanding						4,842
Shares available for future grant under 2014 Plan						16,339
Shares available for future issuance under ESPP						4,281

Total shares of common stock reserved						26,765

Schedule of Stock Option Activity

A summary of the Company’s stock option activity during the three months ended March 31, 2023 is as follows (in thousands, except years and 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	(139)	22.49
Options forfeited or expired	(39)	139.87
Outstanding as of March 31, 2023	1,303	$	47.66	4.5	$	49,139

Schedule of RSU Activity

A summary of the Company’s restricted stock unit ("RSU") activity (including PRSUs) during the three months ended March 31, 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)	1,673	71.33
RSUs vested and released	(358)	114.70
RSUs forfeited or canceled	(191)	111.80
Outstanding as of March 31, 2023	4,842	90.00

(1) Includes 35,921 PRSUs granted during the three months ended March 31, 2023.

Schedule of Stock-based Compensation Expense

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



	Three Months Ended
	March 31, 2023		March 31, 2022
Cost of revenue	$	9,333	$	7,793
Research and development	12,382		10,145
Sales and marketing	17,045		13,424
General and administrative	11,983		8,032
Total stock-based compensation expense	$	50,743	$	39,394

Schedule of Unrecognized Compensation Expense

As of March 31, 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	$	9,144	$	375,880	$	22,462	$	1,086
Weighted-average amortization period	2.0 years		2.8 years		2.2 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
	March 31, 2023	March 31, 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
	March 31, 2023			March 31, 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.

Debt - Schedule of Net Carrying Amount of the Liability Component of the Notes (Details) - Convertible Debt - USD ($) $ in Thousands	Mar. 31, 2023	Dec. 31, 2022
Debt Instrument [Line Items]
Principal	$ 747,700
Convertible Senior Notes, Due 2025
Debt Instrument [Line Items]
Principal	747,500	$ 747,500
Unamortized issuance costs	(8,216)	(9,124)
Net carrying amount	739,284	738,376
Convertible Senior Notes, Due 2023
Debt Instrument [Line Items]
Principal	169	169
Unamortized issuance costs	0	0
Net carrying amount	$ 169	$ 169

- Definition

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

+ References + Details

Description of Business and Summary of Significant Accounting Policies	3 Months Ended
	Mar. 31, 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 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.

Debt - Schedule of Interest Expense (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Debt Instrument [Line Items]
Total interest expense	$ 1,845	$ 1,870
Convertible Senior Notes, Due 2025 \| Convertible Debt
Debt Instrument [Line Items]
Contractual interest expense	934	934
Amortization of issuance costs	908	899
Total interest expense	1,842	1,833
Convertible Senior Notes, Due 2023 \| Convertible Debt
Debt Instrument [Line Items]
Contractual interest expense	0	6
Amortization of issuance costs	0	31
Total interest expense	$ 0	$ 37

Investments and Fair Value Measurements

3 Months Ended

Mar. 31, 2023

Fair Value Disclosures [Abstract]

Investments and Fair Value Measurements

Investments and Fair Value MeasurementsMarketable Investments



	March 31, 2023
Short-Term Marketable Investments	Cost		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value
Certificates of deposit	$	2,201	$	—	$	(8)	$	2,193
U.S. treasury	169,888		35		(668)		169,255
U.S. agency securities	267,338		50		(1,019)		266,369
Commercial paper	35,327		1		(39)		35,289
Municipal bonds	12,719		—		(97)		12,622
Corporate bonds	2,663		—		(10)		2,653
Total	$	490,136	$	86	$	(1,841)	$	488,381

	March 31, 2023
Long-term Marketable Investments	Cost		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value


U.S. agency securities	$	11,478	$	14	$	(1)	$	11,491

Corporate bonds	2,013		—		(6)		2,007
Total	$	13,491	$	14	$	(7)	$	13,498



	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


	March 31, 2023				December 31, 2022

	Gross Unrealized Losses		Fair Value		Gross Unrealized Losses		Fair Value
Certificates of deposit	$	(8)	$	490	$	(13)	$	734
U.S. treasury securities	(668)		90,248		(1,382)		126,534
U.S. agency securities	(1,020)		203,987		(1,660)		172,458
Commercial paper	(39)		28,874		—		—
Municipal bonds	(97)		12,622		(145)		12,623
Corporate bonds	(16)		4,660		(22)		3,636
Total	$	(1,848)	$	340,881	$	(3,222)	$	315,985

Although the Company had certain available-for-sale debt securities in an unrealized loss position as of March 31, 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.

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):


	March 31, 2023
	Level 1		Level 2		Level 3		Total
Assets
Cash equivalents
Money market funds	$	17,296	$	—	$	—	$	17,296






Total cash equivalents	$	17,296	$	—	$	—	$	17,296

Marketable investments (short and long term)
Certificates of deposit	$	—	$	2,193	$	—	$	2,193
U.S. treasury	169,255		—		—		169,255
U.S. agency securities and government sponsored securities	—		277,860		—		277,860
Commercial paper	—		35,289		—		35,289
Municipal bonds	—		12,622		—		12,622
Corporate bonds	—		4,660		—		4,660
Total marketable investments	$	169,255	$	332,624	$	—	$	501,879



	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 March 31, 2023 and December 31, 2022, the estimated fair value of the Company’s outstanding 2023 convertible senior notes was $0.3 million for each of the periods. As of March 31, 2023 and December 31, 2022, the estimated fair value of the Company's outstanding 2025 convertible senior notes was $700.7 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 will be 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 March 31, 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 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.

Income Taxes	3 Months Ended
Income Taxes	Mar. 31, 2023
Income Tax Disclosure [Abstract]
Income Taxes	Income Taxes The provision for income taxes for the three months ended March 31, 2023 and 2022 was approximately $0.5 million and $2.3 million, respectively. The provision for income taxes for the three months ended March 31, 2023 consisted primarily of state and foreign current income tax expense. The provision for income taxes for the three months ended March 31, 2022 consisted primarily of foreign income tax expense from the intercompany sale of the Company's Australian intellectual property to the United States. For the three months ended March 31, 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 months ended March 31, 2022, the provision for income taxes differed from the statutory amount primarily due to 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 of 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 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 March 31, 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 months ended March 31, 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
-Publisher FASB
-Name Accounting Standards Codification
-Topic 740
-SubTopic 10
-Section 50
-Paragraph 21
-URI https://asc.fasb.org/extlink&oid=121826272&loc=d3e32857-109319

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 740
-SubTopic 10
-Section S99
-Paragraph 2
-Subparagraph (SAB Topic 11.C)
-URI https://asc.fasb.org/extlink&oid=122134291&loc=d3e330215-122817

Reference 3: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 740
-SubTopic 10
-Section 50
-Paragraph 17
-Subparagraph (b)
-URI https://asc.fasb.org/extlink&oid=121826272&loc=d3e32809-109319

Reference 4: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 740
-SubTopic 10
-Section S99
-Paragraph 1
-Subparagraph (SAB TOPIC 6.I.5.Q1)
-URI https://asc.fasb.org/extlink&oid=122134291&loc=d3e330036-122817

Reference 5: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 740
-SubTopic 10
-Section 50
-Paragraph 14
-URI https://asc.fasb.org/extlink&oid=121826272&loc=d3e32705-109319

Reference 6: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 740
-SubTopic 270
-Section 50
-Paragraph 1
-URI https://asc.fasb.org/extlink&oid=6424409&loc=d3e44925-109338

Reference 7: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 740
-URI https://asc.fasb.org/topic&trid=2144680

Reference 8: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 740
-SubTopic 30
-Section 50
-Paragraph 2
-Subparagraph (a)
-URI https://asc.fasb.org/extlink&oid=6424122&loc=d3e41874-109331

Reference 9: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 235
-SubTopic 10
-Section S99
-Paragraph 1
-Subparagraph (SX 210.4-08(h)(2))
-URI https://asc.fasb.org/extlink&oid=120395691&loc=d3e23780-122690

+ Details

Leases - Narrative (Details)	3 Months Ended
Leases - Narrative (Details)	Mar. 31, 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

Subsequent Event	3 Months Ended
Subsequent Event	Mar. 31, 2023
Subsequent Events [Abstract]
Subsequent Event	Subsequent Event 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. Upon maturity, the outstanding capped calls associated with the repurchase and early settlements of $194.7 million 2023 convertible senior notes were settled, which resulted in the Company receiving 370,877 shares and $74.5 million.

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS - USD ($) shares in Thousands, $ in Thousands	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Income Statement [Abstract]
Revenue	$ 218,439	$ 182,777
Cost of revenue	104,756	88,867
Gross profit	113,683	93,910
Operating expenses:
Research and development	38,108	35,824
Sales and marketing	76,314	64,611
General and administrative	28,258	24,314
Total operating expenses	142,680	124,749
Loss from operations	(28,997)	(30,839)
Other (expense) income, net:
Interest expense	(1,845)	(1,870)
Interest income and other	4,121	845
Total other income (expense), net	2,276	(1,025)
Loss before income taxes	(26,721)	(31,864)
Provision for income taxes	527	2,256
Net loss	$ (27,248)	$ (34,120)
Net loss per share:
Basic (in USD per share)	$ (0.38)	$ (0.49)
Diluted (in USD per share)	$ (0.38)	$ (0.49)
Shares used in computing net loss per share:
Basic (in shares)	71,259	68,974
Diluted (in shares)	71,259	68,974
Comprehensive Loss:
Net loss	$ (27,248)	$ (34,120)
Other comprehensive income (loss)	1,727	(3,083)
Comprehensive loss	$ (25,521)	$ (37,203)

Investments and Fair Value Measurements - Schedule of Marketable Investments (Details) - USD ($) $ in Thousands	Mar. 31, 2023	Dec. 31, 2022
Debt Securities, Available-for-sale [Line Items]
Fair Value	$ 501,879	$ 434,628
Short-Term Marketable Investments
Debt Securities, Available-for-sale [Line Items]
Cost	490,136	436,928
Gross Unrealized Gains	86	37
Gross Unrealized Losses	(1,841)	(3,222)
Fair Value	488,381	433,743
Long-term Marketable Investments
Debt Securities, Available-for-sale [Line Items]
Cost	13,491	885
Gross Unrealized Gains	14	0
Gross Unrealized Losses	(7)	0
Fair Value	13,498	885
Certificates of deposit
Debt Securities, Available-for-sale [Line Items]
Fair Value	2,193	734
Certificates of deposit \| Short-Term Marketable Investments
Debt Securities, Available-for-sale [Line Items]
Cost	2,201	747
Gross Unrealized Gains	0	0
Gross Unrealized Losses	(8)	(13)
Fair Value	2,193	734
U.S. treasury
Debt Securities, Available-for-sale [Line Items]
Fair Value	169,255	185,402
U.S. treasury \| Short-Term Marketable Investments
Debt Securities, Available-for-sale [Line Items]
Cost	169,888	186,776
Gross Unrealized Gains	35	8
Gross Unrealized Losses	(668)	(1,382)
Fair Value	169,255	185,402
U.S. agency securities \| Short-Term Marketable Investments
Debt Securities, Available-for-sale [Line Items]
Cost	267,338	197,597
Gross Unrealized Gains	50	29
Gross Unrealized Losses	(1,019)	(1,660)
Fair Value	266,369	195,966
U.S. agency securities \| Long-term Marketable Investments
Debt Securities, Available-for-sale [Line Items]
Cost	11,478	885
Gross Unrealized Gains	14	0
Gross Unrealized Losses	(1)	0
Fair Value	11,491	885
Commercial paper
Debt Securities, Available-for-sale [Line Items]
Fair Value	35,289	25,386
Commercial paper \| Short-Term Marketable Investments
Debt Securities, Available-for-sale [Line Items]
Cost	35,327	25,386
Gross Unrealized Gains	1	0
Gross Unrealized Losses	(39)	0
Fair Value	35,289	25,386
Municipal bonds
Debt Securities, Available-for-sale [Line Items]
Fair Value	12,622	22,619
Municipal bonds \| Short-Term Marketable Investments
Debt Securities, Available-for-sale [Line Items]
Cost	12,719	22,764
Gross Unrealized Gains	0	0
Gross Unrealized Losses	(97)	(145)
Fair Value	12,622	22,619
Corporate bonds
Debt Securities, Available-for-sale [Line Items]
Fair Value	4,660	3,636
Corporate bonds \| Short-Term Marketable Investments
Debt Securities, Available-for-sale [Line Items]
Cost	2,663	3,658
Gross Unrealized Gains	0	0
Gross Unrealized Losses	(10)	(22)
Fair Value	2,653	$ 3,636
Corporate bonds \| Long-term Marketable Investments
Debt Securities, Available-for-sale [Line Items]
Cost	2,013
Gross Unrealized Gains	0
Gross Unrealized Losses	(6)
Fair Value	$ 2,007

Financial Statement Components - Schedule of Other Assets (Details) - USD ($) $ in Thousands	Mar. 31, 2023	Dec. 31, 2022	Feb. 28, 2022
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Other assets	$ 9,275	$ 5,081
Equity investment in a privately-held company	2,000	2,000	$ 2,000
Deferred tax assets	3,965	3,976
Total	$ 15,240	$ 11,057

Goodwill and Intangible Assets - Schedule of Intangible Assets (Details) - USD ($) $ in Thousands	3 Months Ended		12 Months Ended
	Mar. 31, 2023	Mar. 31, 2022	Dec. 31, 2022
Acquired Finite-Lived Intangible Assets
Gross Carrying Amount	$ 58,784		$ 58,784
Accumulated Amortization	(33,438)		(30,592)
Net Carrying Amount	$ 25,346		$ 28,192
Weighted Average Remaining Amortization period (Years)	3 years		3 years 2 months 12 days
Amortization of intangible assets	$ 2,846	$ 2,900
Developed technology
Acquired Finite-Lived Intangible Assets
Gross Carrying Amount	56,214		$ 56,214
Accumulated Amortization	(31,647)		(28,881)
Net Carrying Amount	$ 24,567		$ 27,333
Weighted Average Remaining Amortization period (Years)	3 years		3 years 2 months 12 days
Acquired workforce
Acquired Finite-Lived Intangible Assets
Gross Carrying Amount	$ 470		$ 470
Accumulated Amortization	(470)		(470)
Net Carrying Amount	$ 0		$ 0
Weighted Average Remaining Amortization period (Years)	0 years		0 years
Customer relationships
Acquired Finite-Lived Intangible Assets
Gross Carrying Amount	$ 1,600		$ 1,600
Accumulated Amortization	(821)		(741)
Net Carrying Amount	$ 779		$ 859
Weighted Average Remaining Amortization period (Years)	2 years 6 months		2 years 8 months 12 days
Trademarks
Acquired Finite-Lived Intangible Assets
Gross Carrying Amount	$ 500		$ 500
Accumulated Amortization	(500)		(500)
Net Carrying Amount	$ 0		$ 0
Weighted Average Remaining Amortization period (Years)	0 years		0 years

Net Loss Per Share (Tables)

3 Months Ended

Mar. 31, 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
	March 31, 2023		March 31, 2022
Net loss	$	(27,248)	$	(34,120)
Weighted-average shares used in computing basic and diluted net loss per share	71,259		68,974
Basic and diluted net loss per share	$	(0.38)	$	(0.49)

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
	March 31, 2023	March 31, 2022
Stock options	1,303	1,768
RSUs (includes PRSUs)	4,842	3,236
Convertible senior notes	5,568	6,042

Total	11,713	11,046

Net Loss Per Share - Antidilutive Securities Excluded from Computation of Diluted Net Loss Per Share (Details) - shares shares in Thousands	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Antidilutive Securities Excluded from Computation of Earnings Per Share
Total (in shares)	11,713	11,046
Stock options
Antidilutive Securities Excluded from Computation of Earnings Per Share
Total (in shares)	1,303	1,768
RSUs (includes PRSUs)
Antidilutive Securities Excluded from Computation of Earnings Per Share
Total (in shares)	4,842	3,236
Convertible senior notes
Antidilutive Securities Excluded from Computation of Earnings Per Share
Total (in shares)	5,568	6,042

Description of Business and Summary of Significant Accounting Policies (Policies)	3 Months Ended
	Mar. 31, 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 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
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-SubTopic 10
-Section 50
-Paragraph 17
-URI https://asc.fasb.org/extlink&oid=126920106&loc=SL49130561-203045

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-SubTopic 10
-Section 50
-Paragraph 20
-Subparagraph (d)
-URI https://asc.fasb.org/extlink&oid=126920106&loc=SL49130566-203045

Reference 3: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-SubTopic 10
-Section 50
-Paragraph 18
-Subparagraph (b)
-URI https://asc.fasb.org/extlink&oid=126920106&loc=SL49130563-203045

Reference 4: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-URI https://asc.fasb.org/topic&trid=49130388

Reference 5: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-SubTopic 10
-Section 50
-Paragraph 20
-Subparagraph (c)
-URI https://asc.fasb.org/extlink&oid=126920106&loc=SL49130566-203045

Reference 6: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-SubTopic 10
-Section 50
-Paragraph 18
-Subparagraph (a)
-URI https://asc.fasb.org/extlink&oid=126920106&loc=SL49130563-203045

Reference 7: http://www.xbrl.org/2003/role/exampleRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 235
-SubTopic 10
-Section 50
-Paragraph 4
-Subparagraph (e)
-URI https://asc.fasb.org/extlink&oid=126899994&loc=d3e18823-107790

Reference 8: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-SubTopic 10
-Section 50
-Paragraph 20
-Subparagraph (b)
-URI https://asc.fasb.org/extlink&oid=126920106&loc=SL49130566-203045

Reference 9: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-SubTopic 10
-Section 50
-Paragraph 19
-URI https://asc.fasb.org/extlink&oid=126920106&loc=SL49130564-203045

Reference 10: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-SubTopic 10
-Section 50
-Paragraph 20
-Subparagraph (a)
-URI https://asc.fasb.org/extlink&oid=126920106&loc=SL49130566-203045

+ Details

Debt

3 Months Ended

Mar. 31, 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 $72.29 per share on March 31, 2023, the last trading day during the three months ended March 31, 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, March 31, 2023, was not greater than or equal to 130% of the initial conversion price. As such, during the three months ended March 31, 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 June 30, 2023.

The Company may not redeem the 2025 convertible senior notes prior to June 6, 2023. The Company may redeem for cash all or any portion of the 2025 convertible senior notes, at its option, on or after June 6, 2023 and 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.

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 (including the 2023 convertible senior notes); 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 March 31, 2023 and as of December 31, 2022 was as follows (in thousands):


	March 31, 2023		December 31, 2022
Principal	$	747,500	$	747,500

Unamortized issuance costs	(8,216)		(9,124)
Net carrying amount	$	739,284	$	738,376

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


	Three Months Ended
	March 31, 2023		March 31, 2022
Contractual interest expense	$	934	$	934

Amortization of issuance costs	908		899
Total interest expense	$	1,842	$	1,833

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 2023 convertible senior notes mature on May 1, 2023 and bear interest at a fixed rate of 0.125% per annum, payable semiannually in arrears on May 1 and November 1 of each year. 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").

As of March 31, 2023, after giving effect to the 2023 Note Repurchase Transactions and other settlements upon conversion requests, approximately $0.2 million aggregate principal amount of 2023 convertible senior notes remained outstanding.

Each $1,000 principal amount of the 2023 convertible senior notes was initially convertible into 24.4978 shares of the Company’s common stock (the “2023 Conversion Option”), which is equivalent to an initial conversion price of approximately $40.82 per share of common stock, subject to adjustment upon the occurrence of specified events. The 2023 convertible senior notes were convertible, in multiples of $1,000 principal amount, at the option of the holders at any time prior to the close of business on the business day immediately preceding November 1, 2022, only under the following circumstances: (1) during any calendar quarter commencing after the calendar quarter ended on September 30, 2018 (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 “2023 Measurement Period”) in which the trading price (as defined in the indenture governing the 2023 convertible senior notes) per $1,000 principal amount of the 2023 convertible senior notes for each trading day of the 2023 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 2023 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. Commencing on November 1, 2022, and 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 2023 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 2023 convertible senior notes), subject to certain conditions, holders may require the Company to repurchase for cash all or any portion of their 2023 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 2023 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 that occur prior to the maturity date 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 2023 convertible senior 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 2023 convertible senior notes since issuance. During each of the quarters from the third quarter of 2019 through the third quarter of 2022, one of the triggers for convertibility of the 2023 convertible senior notes was triggered as the last reported sale price of the Company’s common stock was greater than $53.07 per share, which represents 130% of the initial conversion price of $40.82 per share, for at least 20 trading days in the period of 30 consecutive trading days ended on, and including, the last trading day of the quarter for each quarter of 2020 and 2021 and for the first three quarters of 2022. As a result, the 2023 convertible senior notes were convertible, in multiples of $1,000 principal amount, at the option of the 2023 convertible senior note holders between October 1, 2019 to October 31, 2022. The 2023 convertible senior notes continue to be convertible from November 1, 2022 until the close of business on the second scheduled trading day immediately preceding the maturity date. There were no conversions of the 2023 convertible senior notes during the three months ended March 31, 2023. As of March 31, 2023, approximately $0.2 million aggregate principal amount of the Company's 2023 convertible senior notes remained outstanding.

The 2023 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 2023 convertible senior notes; equal in right of payment to any of the Company’s unsecured indebtedness that is not so subordinated (including the 2025 convertible senior notes); 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 2023 convertible senior notes as of March 31, 2023 and as of December 31, 2022 was as follows (in thousands):


	March 31, 2023		December 31, 2022
Principal	$	169	$	169

Unamortized issuance costs	—		—
Net carrying amount	$	169	$	169

Interest expense related to the 2023 convertible senior notes was as follows (in thousands):


	Three Months Ended
	March 31, 2023		March 31, 2022
Contractual interest expense	$	—	$	6

Amortization of issuance costs	—		31
Total interest expense	$	—	$	37

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, and is subject to certain adjustments under the terms of the 2023 Capped Call Transactions. The 2023 Capped Call Transactions cover, subject to anti-dilution adjustments, approximately 6.3 million shares of the Company’s common stock.

- 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.

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+ Details

Net Loss Per Share - Basic and Diluted Net Loss Per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Earnings Per Share [Abstract]
Net loss	$ (27,248)	$ (34,120)
Weighted-average shares used in computing basic loss per share (in shares)	71,259	68,974
Weighted-average shares used in computing diluted loss per share (in shares)	71,259	68,974
Basic loss per share (in USD per share)	$ (0.38)	$ (0.49)
Diluted loss per share (in USD per share)	$ (0.38)	$ (0.49)

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

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Reference 29: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 220
-SubTopic 10
-Section 45
-Paragraph 1B
-Subparagraph (a)
-URI https://asc.fasb.org/extlink&oid=126968391&loc=SL7669625-108580

Reference 30: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
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-Paragraph 22
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Reference 31: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
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-Section S99
-Paragraph 1A
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Reference 32: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
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-Section S99
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Reference 33: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 470
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-Section S99
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-Subparagraph (SX 210.13-02(a)(4)(iii)(A))
-URI https://asc.fasb.org/extlink&oid=126975872&loc=SL124442552-122756

Reference 34: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
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-Section 50
-Paragraph 30
-Subparagraph (b)
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Reference 35: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
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-Section 50
-Paragraph 32
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-URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e8933-108599

+ Details

Financial Statement Components (Tables)

3 Months Ended

Mar. 31, 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):


	March 31, 2023		December 31, 2022
Cash	$	124,063	$	123,260

Money market funds	17,296		37,560
U.S. treasury	—		19,700

Total cash and cash equivalents	$	141,359	$	180,520

Schedule of Accounts Receivable

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


	March 31, 2023		December 31, 2022
Trade accounts receivable	$	77,712	$	77,621
Unbilled trade accounts receivable, net of advance client deposits	10,614		10,135
Allowance for credit losses	(241)		(262)
Accounts receivable, net	$	88,085	$	87,494

Schedule of Prepaid Expenses and Other Current Assets

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


	March 31, 2023		December 31, 2022
Prepaid expenses	$	22,149	$	17,151
Other current assets	6,660		9,159
Contract assets	3,209		3,401

Prepaid expenses and other current assets	$	32,018	$	29,711

Schedule of Property and Equipment

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


	March 31, 2023		December 31, 2022
Computer and network equipment	$	142,408	$	148,789
Computer software	54,183		50,955
Internal-use software development costs	8,690		6,111
Furniture and fixtures	3,990		3,326
Leasehold improvements	6,003		6,574
Property and equipment	215,274		215,755
Accumulated depreciation and amortization	(114,217)		(114,534)
Property and equipment, net	$	101,057	$	101,221

Schedule of Other Assets

Other assets consisted of the following (in thousands):


	March 31, 2023		December 31, 2022
Other assets	$	9,275	$	5,081
Equity investment in a privately-held company	2,000		2,000
Deferred tax assets	3,965		3,976
Total	$	15,240	$	11,057

Schedule of Accrued and Other Current Liabilities

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


	March 31, 2023		December 31, 2022
Accrued expenses	$	21,964	$	19,343
Accrued compensation and benefits	40,232		33,749

Accrued and other current liabilities	$	62,196	$	53,092

Schedule of Other Long-term Liabilities

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


	March 31, 2023		December 31, 2022
Deferred revenue	$	1,093	$	1,178
Deferred tax liabilities	206		157
Other long-term liabilities	3,614		1,745

Other long-term liabilities	$	4,913	$	3,080

Revenue - Remaining Performance Obligations (Details) $ in Millions	3 Months Ended
	Mar. 31, 2023 USD ($)
Revenue from Contract with Customer [Abstract]
Performance obligation	$ 918.3
Performance obligation, description of timing	The Company expects to recognize revenue on approximately three-fifths 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]: 2023-04-01
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)	60.00%

Investments and Fair Value Measurements - Schedule of Assets Carried at Fair Value (Details) - USD ($) $ in Thousands	Mar. 31, 2023	Dec. 31, 2022
Assets
Cash equivalents	$ 17,296	$ 57,260
Marketable investments (short and long term)	501,879	434,628
Level 1
Assets
Cash equivalents	17,296	57,260
Marketable investments (short and long term)	169,255	185,402
Level 2
Assets
Cash equivalents	0	0
Marketable investments (short and long term)	332,624	249,226
Level 3
Assets
Cash equivalents	0	0
Marketable investments (short and long term)	0	0
Certificates of deposit
Assets
Marketable investments (short and long term)	2,193	734
Certificates of deposit \| Level 1
Assets
Marketable investments (short and long term)	0	0
Certificates of deposit \| Level 2
Assets
Marketable investments (short and long term)	2,193	734
Certificates of deposit \| Level 3
Assets
Marketable investments (short and long term)	0	0
U.S. treasury
Assets
Marketable investments (short and long term)	169,255	185,402
U.S. treasury \| Level 1
Assets
Marketable investments (short and long term)	169,255	185,402
U.S. treasury \| Level 2
Assets
Marketable investments (short and long term)	0	0
U.S. treasury \| Level 3
Assets
Marketable investments (short and long term)	0	0
U.S. agency and government-sponsored securities
Assets
Marketable investments (short and long term)	277,860	196,851
U.S. agency and government-sponsored securities \| Level 1
Assets
Marketable investments (short and long term)	0	0
U.S. agency and government-sponsored securities \| Level 2
Assets
Marketable investments (short and long term)	277,860	196,851
U.S. agency and government-sponsored securities \| Level 3
Assets
Marketable investments (short and long term)	0	0
Commercial paper
Assets
Marketable investments (short and long term)	35,289	25,386
Commercial paper \| Level 1
Assets
Marketable investments (short and long term)	0	0
Commercial paper \| Level 2
Assets
Marketable investments (short and long term)	35,289	25,386
Commercial paper \| Level 3
Assets
Marketable investments (short and long term)	0	0
Municipal bonds
Assets
Marketable investments (short and long term)	12,622	22,619
Municipal bonds \| Level 1
Assets
Marketable investments (short and long term)	0	0
Municipal bonds \| Level 2
Assets
Marketable investments (short and long term)	12,622	22,619
Municipal bonds \| Level 3
Assets
Marketable investments (short and long term)	0	0
Corporate bonds
Assets
Marketable investments (short and long term)	4,660	3,636
Corporate bonds \| Level 1
Assets
Marketable investments (short and long term)	0	0
Corporate bonds \| Level 2
Assets
Marketable investments (short and long term)	4,660	3,636
Corporate bonds \| Level 3
Assets
Marketable investments (short and long term)	0	0
Money market funds
Assets
Cash equivalents	17,296	37,560
Money market funds \| Level 1
Assets
Cash equivalents	17,296	37,560
Money market funds \| Level 2
Assets
Cash equivalents	0	0
Money market funds \| Level 3
Assets
Cash equivalents	$ 0	0
U.S. treasury
Assets
Cash equivalents		19,700
U.S. treasury \| Level 1
Assets
Cash equivalents		19,700
U.S. treasury \| Level 2
Assets
Cash equivalents		0
U.S. treasury \| Level 3
Assets
Cash equivalents		$ 0

Stockholders' Equity - Common Stock Reserved for Future Issuance (Details) shares in Thousands	Mar. 31, 2023 shares
Class of Stock
Total shares of common stock reserved (in shares)	26,765
2014 Plan
Class of Stock
Total shares of common stock reserved (in shares)	16,339
Stock options
Class of Stock
Total shares of common stock reserved (in shares)	1,303
RSUs (includes PRSUs)
Class of Stock
Total shares of common stock reserved (in shares)	4,842
Shares available for future issuance under ESPP
Class of Stock
Total shares of common stock reserved (in shares)	4,281

Financial Statement Components - Schedule of Accounts Receivable (Details) - USD ($) $ in Thousands	Mar. 31, 2023	Dec. 31, 2022
Accounts Receivable [Line Items]
Allowance for credit losses	$ (241)	$ (262)
Accounts receivable, net	88,085	87,494
Trade accounts receivable
Accounts Receivable [Line Items]
Trade accounts receivable	77,712	77,621
Unbilled trade accounts receivable, net of advance client deposits
Accounts Receivable [Line Items]
Trade accounts receivable	$ 10,614	$ 10,135

Stockholders' Equity

3 Months Ended

Mar. 31, 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 March 31, 2023 and December 31, 2022, the Company had 71,544,294 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 March 31, 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 March 31, 2023 were as follows (in thousands):


						March 31, 2023
Stock options outstanding						1,303
RSUs (including PRSUs) outstanding						4,842
Shares available for future grant under 2014 Plan						16,339
Shares available for future issuance under ESPP						4,281

Total shares of common stock reserved						26,765

Stock Options

A summary of the Company’s stock option activity during the three months ended March 31, 2023 is as follows (in thousands, except years and 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	(139)	22.49
Options forfeited or expired	(39)	139.87
Outstanding as of March 31, 2023	1,303	$	47.66	4.5	$	49,139

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 $72.29 per share as of March 31, 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 PRSUs) during the three months ended March 31, 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)	1,673	71.33
RSUs vested and released	(358)	114.70
RSUs forfeited or canceled	(191)	111.80
Outstanding as of March 31, 2023	4,842	90.00

(1) Includes 35,921 PRSUs granted during the three months ended March 31, 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 first quarter of 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 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 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 PRSUs resulting from above-target performance in those first two years will be paid following the end of 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 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 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 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 PRSUs are determined on their grant date using a Monte Carlo Simulation model based upon assumptions presented below. The Company recognizes the fair value of the 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 PRSUs subject to the 2022-2024 performance period. Under the 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 concluded that the first revenue target was probable of achievement at March 31, 2023, and thus recognized the related stock-based compensation expense through this period. The Company, however, concluded that, as of March 31, 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
	March 31, 2023		March 31, 2022
Cost of revenue	$	9,333	$	7,793
Research and development	12,382		10,145
Sales and marketing	17,045		13,424
General and administrative	11,983		8,032
Total stock-based compensation expense	$	50,743	$	39,394

As of March 31, 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	$	9,144	$	375,880	$	22,462	$	1,086
Weighted-average amortization period	2.0 years		2.8 years		2.2 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
	March 31, 2023	March 31, 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
	March 31, 2023			March 31, 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 Prepaid Expenses and Other Current Assets (Details) - USD ($) $ in Thousands	Mar. 31, 2023	Dec. 31, 2022
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Prepaid expenses	$ 22,149	$ 17,151
Other current assets	6,660	9,159
Contract assets	3,209	3,401
Prepaid expenses and other current assets	$ 32,018	$ 29,711

Financial Statement Components

3 Months Ended

Mar. 31, 2023

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Financial Statement Components

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


	March 31, 2023		December 31, 2022
Cash	$	124,063	$	123,260

Money market funds	17,296		37,560
U.S. treasury	—		19,700

Total cash and cash equivalents	$	141,359	$	180,520

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


	March 31, 2023		December 31, 2022
Trade accounts receivable	$	77,712	$	77,621
Unbilled trade accounts receivable, net of advance client deposits	10,614		10,135
Allowance for credit losses	(241)		(262)
Accounts receivable, net	$	88,085	$	87,494

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


	March 31, 2023		December 31, 2022
Prepaid expenses	$	22,149	$	17,151
Other current assets	6,660		9,159
Contract assets	3,209		3,401

Prepaid expenses and other current assets	$	32,018	$	29,711

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


	March 31, 2023		December 31, 2022
Computer and network equipment	$	142,408	$	148,789
Computer software	54,183		50,955
Internal-use software development costs	8,690		6,111
Furniture and fixtures	3,990		3,326
Leasehold improvements	6,003		6,574
Property and equipment	215,274		215,755
Accumulated depreciation and amortization	(114,217)		(114,534)
Property and equipment, net	$	101,057	$	101,221

Depreciation and amortization expense associated with property and equipment was $8.5 million and $7.8 million for the three months ended March 31, 2023 and 2022, respectively.

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

Other assets consisted of the following (in thousands):


	March 31, 2023		December 31, 2022
Other assets	$	9,275	$	5,081
Equity investment in a privately-held company	2,000		2,000
Deferred tax assets	3,965		3,976
Total	$	15,240	$	11,057

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


	March 31, 2023		December 31, 2022
Accrued expenses	$	21,964	$	19,343
Accrued compensation and benefits	40,232		33,749

Accrued and other current liabilities	$	62,196	$	53,092

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


	March 31, 2023		December 31, 2022
Deferred revenue	$	1,093	$	1,178
Deferred tax liabilities	206		157
Other long-term liabilities	3,614		1,745

Other long-term liabilities	$	4,913	$	3,080

Label	Element	Value
Restricted Cash and Cash Equivalents	us-gaap_RestrictedCashAndCashEquivalents	$ 467,000
Restricted Cash and Cash Equivalents	us-gaap_RestrictedCashAndCashEquivalents	$ 0

Geographical Information (Tables)

3 Months Ended

Mar. 31, 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
	March 31, 2023		March 31, 2022
United States	$	195,363	$	167,247
International	23,076		15,530
Total revenue	$	218,439	$	182,777

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



	March 31, 2023		December 31, 2022
United States	$	93,001	$	92,659
International	8,056		8,562
Property and equipment, net	$	101,057	$	101,221

Goodwill and Intangible Assets - Future Amortization Expense (Details) - USD ($) $ in Thousands	Mar. 31, 2023	Dec. 31, 2022
Goodwill and Intangible Assets Disclosure [Abstract]
Remaining 2023	$ 8,024
2024	7,527
2025	5,595
2026	4,200
2027	0
Thereafter	0
Net Carrying Amount	$ 25,346	$ 28,192

Revenue (Tables)

3 Months Ended

Mar. 31, 2023

Revenue from Contract with Customer [Abstract]

Schedule of Contract Balances


	March 31, 2023		December 31, 2022
Accounts receivable, net	$	88,085	$	87,494

Deferred contract acquisition costs, net:
Current	$	50,566	$	47,242
Non-current	119,799		114,880
Total deferred contract acquisition costs, net	$	170,365	$	162,122

Contract assets and contract liabilities:
Contract assets (included in prepaid expenses and other current assets)	$	3,209	$	3,401
Contract liabilities (deferred revenue)	(58,082)		(57,816)
Noncurrent contract liabilities (deferred revenue) (included in other long-term liabilities)	(1,093)		(1,178)
Net contract liabilities	$	(55,966)	$	(55,593)

Geographical Information - Schedule of Revenue and Property and Equipment by Geographic Region (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022	Dec. 31, 2022
Revenues from External Customers and Long-Lived Assets
Total revenue	$ 218,439	$ 182,777
Property and equipment, net	101,057		$ 101,221
United States
Revenues from External Customers and Long-Lived Assets
Total revenue	195,363	167,247
Property and equipment, net	93,001		92,659
International
Revenues from External Customers and Long-Lived Assets
Total revenue	23,076	$ 15,530
Property and equipment, net	$ 8,056		$ 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.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 30
-Subparagraph (a)
-URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e8906-108599

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 40
-URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e9031-108599

Reference 3: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 41
-Subparagraph (a)
-URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e9038-108599

Reference 4: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 32
-Subparagraph (b)
-URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e8933-108599

Reference 5: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 32
-Subparagraph (a)
-URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e8933-108599

Reference 6: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-SubTopic 10
-Section 50
-Paragraph 4
-Subparagraph (a)
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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/disclosureRef
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Reference 10: http://www.xbrl.org/2003/role/disclosureRef
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Reference 11: http://www.xbrl.org/2003/role/disclosureRef
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+ Details

Stockholders' Equity - RSU Activity (Details)	3 Months Ended
Stockholders' Equity - RSU Activity (Details)	Mar. 31, 2023 $ / shares shares
RSUs (includes PRSUs)
Number of Shares
Outstanding, beginning balance (in shares)	3,718,000
RSUs granted (in shares)	1,673,000
RSUs vested and released (in shares)	(358,000)
RSUs forfeited or canceled (in shares)	(191,000)
Outstanding, ending balance (in shares)	4,842,000
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	71.33
RSUs vested and released, weighted average grant date fair value (in USD per share) \| $ / shares	114.70
RSUs forfeited or canceled, weighted average grant date fair value (in USD per share) \| $ / shares	111.80
Outstanding, ending balance, weighted-average grant date fair value per share (in USD per share) \| $ / shares	$ 90.00
Performance Based And Market Based Restricted Stock Units PRSUs
Number of Shares
RSUs granted (in shares)	35,921