Cover Page
Cover Page - shares | 6 Months Ended | |
Jun. 30, 2024 | Jul. 29, 2024 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Jun. 30, 2024 | |
Document Transition Report | false | |
Entity File Number | 001-36180 | |
Entity Registrant Name | CHEGG, INC | |
Entity Incorporation, State or Country Code | DE | |
Entity Tax Identification Number | 20-3237489 | |
Entity Address, Address Line One | 3990 Freedom Circle | |
Entity Address, City or Town | Santa Clara | |
Entity Address, State or Province | CA | |
Entity Address, Postal Zip Code | 95054 | |
City Area Code | 408 | |
Local Phone Number | 855-5700 | |
Title of 12(b) Security | Common stock, $0.001 par value per share | |
Trading Symbol | CHGG | |
Security Exchange Name | NYSE | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 103,669,879 | |
Entity Central Index Key | 0001364954 | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Year End | 2024 | |
Document Fiscal Period Focus | Q2 | |
Amendment Flag | false |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Jun. 30, 2024 | Dec. 31, 2023 |
Current assets | ||
Cash and cash equivalents | $ 133,068 | $ 135,757 |
Short-term investments | 212,396 | 194,257 |
Accounts receivable, net of allowance of $183 and $376 at June 30, 2024 and December 31, 2023, respectively | 20,964 | 31,404 |
Prepaid expenses | 30,841 | 20,980 |
Other current assets | 36,279 | 32,437 |
Total current assets | 433,548 | 414,835 |
Long-term investments | 259,925 | 249,547 |
Property and equipment, net | 179,278 | 183,073 |
Goodwill | 189,769 | 631,995 |
Intangible assets, net | 12,848 | 52,430 |
Right of use assets | 21,508 | 25,130 |
Deferred tax assets | 2,287 | 141,843 |
Other assets | 15,167 | 28,382 |
Total assets | 1,114,330 | 1,727,235 |
Current liabilities | ||
Accounts payable | 14,424 | 28,184 |
Deferred revenue | 45,023 | 55,336 |
Accrued liabilities | 68,001 | 77,863 |
Current portion of convertible senior notes, net | 357,838 | 357,079 |
Total current liabilities | 485,286 | 518,462 |
Long-term liabilities | ||
Convertible senior notes, net | 243,079 | 242,758 |
Long-term operating lease liabilities | 15,595 | 18,063 |
Other long-term liabilities | 4,870 | 3,334 |
Total long-term liabilities | 263,544 | 264,155 |
Total liabilities | 748,830 | 782,617 |
Commitments and contingencies | ||
Stockholders' equity: | ||
Preferred stock, $0.001 par value per share, 10,000,000 shares authorized, no shares issued and outstanding | 0 | 0 |
Common stock, $0.001 par value per share: 400,000,000 shares authorized; 103,360,633 and 102,823,700 shares issued and outstanding at June 30, 2024 and December 31, 2023, respectively | 103 | 103 |
Additional paid-in capital | 1,075,989 | 1,031,627 |
Accumulated other comprehensive loss | (39,915) | (34,739) |
Accumulated deficit | (670,677) | (52,373) |
Total stockholders' equity | 365,500 | 944,618 |
Total liabilities and stockholders' equity | $ 1,114,330 | $ 1,727,235 |
CONDENSED CONSOLIDATED BALANC_2
CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands | Jun. 30, 2024 | Dec. 31, 2023 |
Statement of Financial Position [Abstract] | ||
Accounts receivable, net of allowance | $ 183 | $ 376 |
Preferred stock, par value (in dollars per share) | $ 0.001 | $ 0.001 |
Preferred stock, shares authorized (in shares) | 10,000,000 | 10,000,000 |
Preferred stock, shares issued (in shares) | 0 | 0 |
Preferred stock, shares outstanding (in shares) | 0 | 0 |
Common stock, par value (in dollars per share) | $ 0.001 | $ 0.001 |
Common stock, shares authorized (in shares) | 400,000,000 | 400,000,000 |
Common stock, shares issued (in shares) | 103,360,633 | 102,823,700 |
Common stock, shares outstanding (in shares) | 103,360,633 | 102,823,700 |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Income Statement [Abstract] | ||||
Net revenues | $ 163,147 | $ 182,853 | $ 337,497 | $ 370,454 |
Cost of revenues | 45,411 | 47,412 | 91,908 | 96,562 |
Gross profit | 117,736 | 135,441 | 245,589 | 273,892 |
Operating expenses: | ||||
Research and development | 43,651 | 52,872 | 88,086 | 99,779 |
Sales and marketing | 23,545 | 30,956 | 53,920 | 67,973 |
General and administrative | 54,016 | 70,309 | 109,550 | 129,282 |
Impairment expense | 481,531 | 0 | 481,531 | 0 |
Total operating expenses | 602,743 | 154,137 | 733,087 | 297,034 |
Loss from operations | (485,007) | (18,696) | (487,498) | (23,142) |
Interest expense, net and other income, net: | ||||
Interest expense, net | (651) | (1,114) | (1,301) | (2,382) |
Other income, net | 7,119 | 64,103 | 17,899 | 76,179 |
Total interest expense, net and other income, net | 6,468 | 62,989 | 16,598 | 73,797 |
(Loss) income before provision for income taxes | (478,539) | 44,293 | (470,900) | 50,655 |
Provision for income taxes | (138,345) | (19,681) | (147,404) | (23,857) |
Net (loss) income | $ (616,884) | $ 24,612 | $ (618,304) | $ 26,798 |
Net (loss) income per share | ||||
Basic (in dollars per share) | $ (6.01) | $ 0.21 | $ (6.03) | $ 0.22 |
Diluted (in dollars per share) | $ (6.01) | $ (0.11) | $ (6.03) | $ (0.08) |
Weighted average shares used to compute net (loss) income per share | ||||
Basic (in shares) | 102,604 | 117,977 | 102,474 | 120,828 |
Diluted (in shares) | 102,604 | 132,944 | 102,474 | 137,416 |
CONDENSED CONSOLIDATED STATEM_2
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE (LOSS) INCOME - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Statement of Comprehensive Income [Abstract] | ||||
Net (loss) income | $ (616,884) | $ 24,612 | $ (618,304) | $ 26,798 |
Other comprehensive income (loss) | ||||
Change in net unrealized loss on investments | (119) | (4,420) | (2,089) | (608) |
Change in foreign currency translation adjustments | 876 | 6,579 | (3,087) | 14,917 |
Other comprehensive income (loss) | 757 | 2,159 | (5,176) | 14,309 |
Total comprehensive (loss) income | $ (616,127) | $ 26,771 | $ (623,480) | $ 41,107 |
CONDENSED CONSOLIDATED STATEM_3
CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY - USD ($) $ in Thousands | Total | Common Stock | Additional Paid-In Capital | Accumulated Other Comprehensive Loss | Accumulated Deficit |
Beginning balance (in shares) at Dec. 31, 2022 | 126,474,000 | ||||
Beginning balance at Dec. 31, 2022 | $ 1,116,589 | $ 126 | $ 1,244,504 | $ (57,488) | $ (70,553) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Repurchases of common stock (in shares) | (13,008,000) | ||||
Repurchases of common stock | (186,368) | $ (13) | (186,355) | ||
Issuance of common stock upon exercise of stock options and ESPP (in shares) | 376,000 | ||||
Issuance of common stock upon exercise of stock options and ESPP | 3,079 | 3,079 | |||
Net share settlement of equity awards (in shares) | 1,336,000 | ||||
Net share settlement of equity awards | (11,066) | $ 2 | (11,068) | ||
Share-based compensation expense | 71,363 | 71,363 | |||
Proceeds from capped call related to extinguishment of 2025 notes | 297 | 297 | |||
Other comprehensive income (loss) | 14,309 | 14,309 | |||
Net (loss) income | 26,798 | 26,798 | |||
Ending balance (in shares) at Jun. 30, 2023 | 115,178,000 | ||||
Ending balance at Jun. 30, 2023 | 1,035,001 | $ 115 | 1,121,820 | (43,179) | (43,755) |
Beginning balance (in shares) at Dec. 31, 2022 | 126,474,000 | ||||
Beginning balance at Dec. 31, 2022 | $ 1,116,589 | $ 126 | 1,244,504 | (57,488) | (70,553) |
Ending balance (in shares) at Dec. 31, 2023 | 102,823,700 | 102,824,000 | |||
Ending balance at Dec. 31, 2023 | $ 944,618 | $ 103 | 1,031,627 | (34,739) | (52,373) |
Beginning balance (in shares) at Mar. 31, 2023 | 119,628,000 | ||||
Beginning balance at Mar. 31, 2023 | 1,006,759 | $ 120 | 1,120,344 | (45,338) | (68,367) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Repurchases of common stock (in shares) | (5,408,000) | ||||
Repurchases of common stock | (35,057) | $ (6) | (35,051) | ||
Issuance of common stock upon exercise of stock options and ESPP (in shares) | 358,000 | ||||
Issuance of common stock upon exercise of stock options and ESPP | 2,935 | 2,935 | |||
Net share settlement of equity awards (in shares) | 600,000 | ||||
Net share settlement of equity awards | (3,331) | $ 1 | (3,332) | ||
Share-based compensation expense | 36,627 | 36,627 | |||
Proceeds from capped call related to extinguishment of 2025 notes | 297 | 297 | |||
Other comprehensive income (loss) | 2,159 | 2,159 | |||
Net (loss) income | 24,612 | 24,612 | |||
Ending balance (in shares) at Jun. 30, 2023 | 115,178,000 | ||||
Ending balance at Jun. 30, 2023 | $ 1,035,001 | $ 115 | 1,121,820 | (43,179) | (43,755) |
Beginning balance (in shares) at Dec. 31, 2023 | 102,823,700 | 102,824,000 | |||
Beginning balance at Dec. 31, 2023 | $ 944,618 | $ 103 | 1,031,627 | (34,739) | (52,373) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Repurchases of common stock (in shares) | (2,116,000) | ||||
Repurchases of common stock | (114) | $ (2) | (112) | ||
Issuance of common stock upon issuance of ESPP (in shares) | 557,000 | ||||
Issuance of common stock upon issuance of ESPP | 2,188 | 2,188 | |||
Net share settlement of equity awards (in shares) | 2,096,000 | ||||
Net share settlement of equity awards | (7,823) | $ 2 | (7,825) | ||
Share-based compensation expense | 50,111 | 50,111 | |||
Other comprehensive income (loss) | (5,176) | (5,176) | |||
Net (loss) income | $ (618,304) | (618,304) | |||
Ending balance (in shares) at Jun. 30, 2024 | 103,360,633 | 103,361,000 | |||
Ending balance at Jun. 30, 2024 | $ 365,500 | $ 103 | 1,075,989 | (39,915) | (670,677) |
Beginning balance (in shares) at Mar. 31, 2024 | 101,570,000 | ||||
Beginning balance at Mar. 31, 2024 | 963,474 | $ 102 | 1,057,837 | (40,672) | (53,793) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Issuance of common stock upon issuance of ESPP (in shares) | 557,000 | ||||
Issuance of common stock upon issuance of ESPP | 2,188 | 2,188 | |||
Net share settlement of equity awards (in shares) | 1,234,000 | ||||
Net share settlement of equity awards | (3,530) | $ 1 | (3,531) | ||
Share-based compensation expense | 19,495 | 19,495 | |||
Other comprehensive income (loss) | 757 | 757 | |||
Net (loss) income | $ (616,884) | (616,884) | |||
Ending balance (in shares) at Jun. 30, 2024 | 103,360,633 | 103,361,000 | |||
Ending balance at Jun. 30, 2024 | $ 365,500 | $ 103 | $ 1,075,989 | $ (39,915) | $ (670,677) |
CONDENSED CONSOLIDATED STATEM_4
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2024 | Jun. 30, 2023 | |
Cash flows from operating activities | ||
Net (loss) income | $ (618,304) | $ 26,798 |
Adjustments to reconcile net (loss) income to net cash provided by operating activities: | ||
Share-based compensation expense | 47,336 | 69,666 |
Depreciation and amortization expense | 39,393 | 52,027 |
Deferred income taxes | 141,032 | 20,142 |
Operating lease expense, net | 3,141 | 3,009 |
Amortization of debt issuance costs | 1,081 | 1,988 |
Loss from write-off of property and equipment | 1,657 | 450 |
Impairment expense | 481,531 | 0 |
Gain on early extinguishment of debt | 0 | (53,777) |
Loss contingency | 0 | 7,000 |
Impairment on lease related assets | 2,189 | 0 |
Other non-cash items | 82 | (1,083) |
Change in assets and liabilities: | ||
Accounts receivable | 10,561 | 3,081 |
Prepaid expenses and other current assets | (12,173) | 15,082 |
Other assets | (773) | 5,470 |
Accounts payable | (12,045) | (671) |
Deferred revenue | (10,226) | (3,634) |
Accrued liabilities | (4,057) | (1,436) |
Other liabilities | (2,880) | (8,205) |
Net cash provided by operating activities | 67,545 | 135,907 |
Cash flows from investing activities | ||
Purchases of property and equipment | (45,817) | (33,864) |
Proceeds from disposition of textbooks | 0 | 9,787 |
Purchases of investments | (123,669) | (552,409) |
Maturities of investments | 89,890 | 476,862 |
Proceeds from sale of investments | 0 | 238,681 |
Proceeds from sale of strategic equity investment | 15,500 | 0 |
Purchase of strategic equity investment | 0 | (9,604) |
Net cash (used in) provided by investing activities | (64,096) | 129,453 |
Cash flows from financing activities | ||
Proceeds from common stock issued under stock plans, net | 2,190 | 3,081 |
Payment of taxes related to the net share settlement of equity awards | (7,825) | (11,068) |
Repurchase of common stock | 0 | (186,368) |
Repayment of convertible senior notes | 0 | (369,761) |
Proceeds from exercise of convertible senior notes capped call | 0 | 297 |
Net cash used in financing activities | (5,635) | (563,819) |
Effect of exchange rate changes | (305) | 197 |
Net decrease in cash, cash equivalents and restricted cash | (2,491) | (298,262) |
Cash, cash equivalents and restricted cash, beginning of period | 137,976 | 475,854 |
Cash, cash equivalents and restricted cash, end of period | 135,485 | 177,592 |
Supplemental cash flow data: | ||
Interest | 224 | 517 |
Income taxes, net of refunds | 2,729 | 6,171 |
Cash paid for amounts included in the measurement of lease liabilities: | ||
Operating cash flows from operating leases | 4,346 | 4,909 |
Right of use assets obtained in exchange for lease obligations: | ||
Operating leases | 663 | 12,407 |
Non-cash investing and financing activities: | ||
Accrued purchases of long-lived assets | 5,016 | 4,518 |
Reconciliation of cash, cash equivalents and restricted cash: | ||
Cash and cash equivalents | 133,068 | 175,368 |
Restricted cash included in other current assets | 540 | 60 |
Restricted cash included in other assets | 1,877 | 2,164 |
Total cash, cash equivalents and restricted cash | $ 135,485 | $ 177,592 |
Background and Basis of Present
Background and Basis of Presentation | 6 Months Ended |
Jun. 30, 2024 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Background and Basis of Presentation | Background and Basis of Presentation Company and Background Chegg, Inc. (“we,” “us,” “our,” “Company” or “Chegg”), headquartered in Santa Clara, California, was incorporated as a Delaware corporation in July 2005. Chegg provides individualized learning support to students as they pursue their educational journeys. Available on demand 24/7 and powered by over a decade of learning insights, the Chegg platform offers students AI-powered academic support thoughtfully designed for education coupled with access to a vast network of subject matter experts who ensure quality. No matter the goal, level, or style, Chegg helps millions of students around the world learn with confidence by helping them build essential academic, life, and job skills to achieve success. Basis of Presentation The accompanying unaudited 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 U.S. Securities and Exchange Commission (“SEC”) regarding interim financial reporting. The condensed consolidated financial statements include the results of Chegg, Inc. and its wholly-owned subsidiaries. Significant intercompany balances and transactions have been eliminated. In the opinion of management, the accompanying unaudited condensed consolidated financial statements contain all adjustments, including normal recurring adjustments, necessary to present fairly our financial position as of June 30, 2024, our results of operations, results of comprehensive (loss) income and stockholders' equity for the three and six months ended June 30, 2024 and 2023, and our cash flows for the six months ended June 30, 2024 and 2023. Our results of operations, results of comprehensive (loss) income, stockholders' equity, and cash flows for the six months ended June 30, 2024 are not necessarily indicative of the results to be expected for the full year. We have a single operating and reportable segment and operating unit structure. The condensed consolidated financial statements and related financial information should be read in conjunction with the audited consolidated financial statements and the related notes thereto that are included in our Annual Report on Form 10-K for the year ended December 31, 2023 (the Annual Report on Form 10-K) filed with the SEC. There have been no material changes to our significant accounting policies as compared to the significant accounting policies described in our Annual Report on Form 10-K. Aside from the addition of impairment expense as a component within our operating expenses on our condensed consolidated statements of operations, there have been no other changes to the components on our consolidated statements of operations described in our Annual Report on Form 10-K. Components of Results of Operations Operating Expenses Impairment Expense Our impairment expense consists of impairments of goodwill, intangible assets, and property and equipment, net that were recorded during the three months and six months ended June 30, 2024. For further information, see “Note 5, Property and Equipment, Net” and “Note 6, Goodwill and Intangible Assets.” The following table presents our impairment expense (in thousands): Impairment expense Goodwill $ 439,683 Intangible assets 31,862 Property and equipment, net 9,986 Total impairment expense $ 481,531 Use of Estimates The preparation of financial statements in conformity with GAAP requires management to make estimates, judgments, and assumptions that affect the reported amounts of assets and liabilities; the disclosure of contingent liabilities at the date of the financial statements; and the reported amounts of revenues and expenses during the reporting periods. We base our estimates on historical experience, knowledge of current business conditions, and various other factors we believe to be reasonable under the circumstances. These estimates are based on management’s knowledge about current events and expectations about actions we may undertake in the future. Actual results could differ from these estimates, and such differences could be material to our financial position and results of operations. There have been no material changes in our use of estimates during the six months ended June 30, 2024 as compared to the use of estimates disclosed in Part II, Item 8 “Consolidated Financial Statements and Supplementary Data” contained in our Annual Report on Form 10-K for the year ended December 31, 2023. Reclassification of Prior Period Presentation In order to confirm with current period presentation, $5.7 million of restructuring charges during the six months ended June 30, 2023 has been reclassified to changes in accrued liabilities on our condensed consolidated statements of cash flows. This change in presentation does not affect previously reported results. Recent Accounting Pronouncements Recently Issued Accounting Pronouncements Not Yet Adopted In March 2024, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) 2024-02, Codification Improvements—Amendments to Remove References to the Concepts Statements . ASU 2024-02 removes various references to the FASB’s Concepts Statements from the FASB’s Accounting Standards Codification. Early adoption is permitted, and the guidance will be applied prospectively with the option to apply retrospectively. The guidance is effective for annual periods beginning after December 15, 2024. We did not early adopt ASU 2024-02 and do not believe it will have a significant impact on our financial statements, however, we are currently in the process of evaluating the impact. In December 2023, the FASB issued ASU 2023-09, Improvements to Income Tax Disclosures . ASU 2023-09 requires disaggregated information about our effective tax rate reconciliation as well as information on income taxes paid that meet a quantitative threshold. Early adoption is permitted, and the guidance will be applied prospectively with the option to apply retrospectively. The guidance is effective for annual periods beginning after December 15, 2024. We did not early adopt ASU 2023-09 and we are currently in the process of evaluating the impact of this guidance. In November 2023, the FASB issued ASU 2023-07, Improvements to Reportable Segment Disclosures . ASU 2023-07 enhances current interim and annual reportable segment disclosures and requires additional disclosures about significant segment expenses. Early adoption is permitted, and we are required to adopt the changes on a retrospective basis. The guidance is effective for annual periods beginning after December 15, 2023 and for interim periods beginning December 15, 2024. We did not early adopt ASU 2023-07 and we are currently in the process of evaluating the impact of this guidance. Recently Adopted Accounting Pronouncements We did not adopt any accounting pronouncements during the six months ended June 30, 2024 that had a material impact on our financial statements. |
Revenues
Revenues | 6 Months Ended |
Jun. 30, 2024 | |
Revenue from Contract with Customer [Abstract] | |
Revenues | Revenues Revenue Recognition Revenues are recognized when control of the promised goods or services is transferred to our customers, in an amount that reflects the consideration we expect to be entitled to in exchange for those goods or services. The majority of our revenues are recognized over time as services are performed, with certain revenues being recognized at a point in time. The following tables present our total net revenues for the periods shown disaggregated for our Subscription Services and Skills and Other product lines (in thousands, except percentages): Three Months Ended Change 2024 2023 $ % Subscription Services $ 146,813 $ 165,855 $ (19,042) (11) % Skills and Other 16,334 16,998 (664) (4) Total net revenues $ 163,147 $ 182,853 $ (19,706) (11) Six Months Ended Change 2024 2023 $ % Subscription Services $ 300,864 $ 334,295 $ (33,431) (10) % Skills and Other 36,633 36,159 474 1 Total net revenues $ 337,497 $ 370,454 $ (32,957) (9) During the three and six months ended June 30, 2024, we recognized revenues of $38.9 million and $47.1 million, respectively, that were included in our deferred revenue balance at the beginning of each respective reporting period. During the three and six months ended June 30, 2023, we recognized revenues of $41.1 million and $47.9 million, respectively, that were included in our deferred revenue balance at the beginning of each respective reporting period. Contract Balances The following table presents our accounts receivable, net, contract assets and deferred revenue balances (in thousands, except percentages): Change June 30, December 31, 2023 $ % Accounts receivable, net $ 20,964 $ 31,404 $ (10,440) (33) % Contract assets 7,674 8,598 (924) (11) Deferred revenue 45,023 55,336 (10,313) (19) During the six months ended June 30, 2024 our accounts receivable, net balance decreased by $10.4 million, or 33%, primarily due to lower bookings from Chegg Skills and seasonality of our business. During the six months ended June 30, 2024, our contract assets balance decreased by $0.9 million, or 11%, primarily due to cash collections from our Chegg Skills service. During the six months ended June 30, 2024, our deferred revenue balance decreased by $10.3 million, or 19%, primarily due to lower bookings from Chegg Skills and seasonality of our business. |
Net (Loss) Income Per Share
Net (Loss) Income Per Share | 6 Months Ended |
Jun. 30, 2024 | |
Earnings Per Share [Abstract] | |
Net (Loss) Income Per Share | Net (Loss) Income Per Share The following table presents the computation of basic and diluted net (loss) income per share (in thousands, except per share amounts): Three Months Ended Six Months Ended 2024 2023 2024 2023 Basic Numerator: Net (loss) income $ (616,884) $ 24,612 $ (618,304) $ 26,798 Denominator: Weighted average shares used to compute net (loss) income per share, basic 102,604 117,977 102,474 120,828 Net (loss) income per share, basic $ (6.01) $ 0.21 $ (6.03) $ 0.22 Diluted Numerator: Net (loss) income $ (616,884) $ 24,612 $ (618,304) $ 26,798 Convertible senior notes activity, net of tax — (39,398) — (38,446) Net (loss) income, diluted $ (616,884) $ (14,786) $ (618,304) $ (11,648) Denominator: Weighted average shares used to compute net (loss) income per share, basic 102,604 117,977 102,474 120,828 Shares related to convertible senior notes — 14,967 — 16,588 Weighted average shares used to compute net (loss) income per share, diluted 102,604 132,944 102,474 137,416 Net (loss) income per share, diluted $ (6.01) $ (0.11) $ (6.03) $ (0.08) The following table presents potential weighted-average shares of common stock outstanding that were excluded from the computation of diluted net (loss) income per share because including them would have been anti-dilutive (in thousands): Three Months Ended Six Months Ended 2024 2023 2024 2023 Shares related to stock plan activity 7,421 9,982 7,286 7,661 Shares related to convertible senior notes 9,234 — 9,234 — Total common stock equivalents 16,655 9,982 16,520 7,661 |
Cash and Cash Equivalents, Inve
Cash and Cash Equivalents, Investments and Fair Value Measurements | 6 Months Ended |
Jun. 30, 2024 | |
Cash and Cash Equivalents [Abstract] | |
Cash and Cash Equivalents, Investments and Fair Value Measurements | Cash and Cash Equivalents, Investments and Fair Value Measurements The following tables present our cash and cash equivalents, and investments’ fair value level classification, adjusted cost, unrealized gain, unrealized loss and fair value as of June 30, 2024 and December 31, 2023 (in thousands): June 30, 2024 Fair Value Level Adjusted Cost Unrealized Gain Unrealized Loss Fair Value Cash and cash equivalents: Cash $ 46,551 $ — $ — $ 46,551 Money market funds Level 1 86,517 — — 86,517 Total cash and cash equivalents $ 133,068 $ — $ — $ 133,068 Short-term investments: Corporate debt securities Level 2 $ 121,988 $ — $ (391) $ 121,597 U.S. treasury securities Level 1 66,138 — (247) 65,891 Agency bonds Level 2 25,020 — (112) 24,908 Total short-term investments $ 213,146 $ — $ (750) $ 212,396 Long-term investments: Corporate debt securities Level 2 $ 208,171 $ 144 $ (951) $ 207,364 U.S. treasury securities Level 1 52,830 — (269) 52,561 Total long-term investments $ 261,001 $ 144 $ (1,220) $ 259,925 December 31, 2023 Fair Value Level Adjusted Cost Unrealized Gain Unrealized Loss Fair Value Cash and cash equivalents: Cash $ 45,050 $ — $ — $ 45,050 Money market funds Level 1 90,707 — — 90,707 Total cash and cash equivalents $ 135,757 $ — $ — $ 135,757 Short-term investments: Corporate debt securities Level 2 $ 69,548 $ — $ (170) $ 69,378 U.S. treasury securities Level 1 25,734 — (114) 25,620 Agency bonds Level 2 99,505 — (246) 99,259 Total short-term investments $ 194,787 $ — $ (530) $ 194,257 Long-term investments: Corporate debt securities Level 2 $ 191,467 $ 898 $ (213) $ 192,152 U.S. treasury securities Level 1 57,287 165 (57) 57,395 Total long-term investments $ 248,754 $ 1,063 $ (270) $ 249,547 As of June 30, 2024, we determined that the unrealized losses on our investments were not driven by credit related factors. During the three and six months ended June 30, 2024 and 2023, we did not recognize any losses on our investments due to credit related factors and our realized gains and losses on investments were not significant. The following table presents our cash equivalents and investments' adjusted cost and fair value by contractual maturity as of June 30, 2024 (in thousands): Adjusted Cost Fair Value Due within one year $ 213,146 $ 212,396 Due after one year through three years 261,001 259,925 Investments not due at a single maturity date 86,517 86,517 Total $ 560,664 $ 558,838 Investments not due at a single maturity date in the preceding table consisted of money market funds. Strategic Investments In May 2023, we entered into a $15.0 million commitment to invest in Sound Ventures AI Fund, L.P. (Sound Ventures), a limited partnership that invests in artificial intelligence companies, for an approximate 6% ownership. We accounted for our investment under the equity method of accounting. As of December 31, 2023, the carrying amount of our investment was $11.7 million. On January 1, 2024, we sold our investment for a total cash consideration of $15.5 million, resulting in a gain of $3.8 million. The cash payment received was included within cash flows from investing activities on our condensed consolidated statements of cash flows and the gain was included within other income, net on our condensed consolidated statements of operations. In July 2022, we completed an investment of $6.0 million in Knack Technologies, Inc. (Knack), a privately held U.S. based peer-to-peer tutoring platform for higher education institutions. We do not have the ability to exercise significant influence over Knack's operating and financial policies and have elected to account for our investment at cost as it does not have a readily determinable fair value. We did not record any impairment expenses during the three and six months ended June 30, 2024 and 2023, as there were no significant identified events or changes in circumstances that would be considered an indicator for impairment. There were no observable price changes in orderly transactions for the identical or similar investments of the same issuer during the three and six months ended June 30, 2024 and 2023. Financial Instruments Not Recorded at Fair Value on a Recurring Basis We report our financial instruments at fair value with the exception of the notes (defined below). The estimated fair value of the notes was determined based on the trading price of the notes as of the last day of trading for the period. We consider the fair value of the notes to be a Level 2 measurement due to the limited trading activity. The estimated fair value of the 2026 notes as of June 30, 2024 and December 31, 2023 was $195.3 million and $202.9 million, respectively. The estimated fair value of the 2025 notes as of June 30, 2024 and December 31, 2023 was $328.4 million and $329.5 million, respectively. For further information on the notes, refer to Note 7, “Convertible Senior Notes.” |
Property and Equipment, Net
Property and Equipment, Net | 6 Months Ended |
Jun. 30, 2024 | |
Property, Plant and Equipment [Abstract] | |
Property and Equipment, Net | Property and Equipment, Net Property and equipment, net consisted of the following (in thousands): June 30, 2024 December 31, 2023 Content $ 362,957 $ 346,749 Software 59,744 51,855 Leasehold improvements 10,213 10,857 Furniture and fixtures 4,253 4,607 Computer and equipment 3,210 3,496 Property and equipment 440,377 417,564 Less accumulated depreciation and amortization (261,099) (234,491) Property and equipment, net $ 179,278 $ 183,073 Depreciation and content amortization expense during the three and six months ended June 30, 2024 was $16.2 million and $31.9 million, respectively. Depreciation and content amortization expense during the three and six months ended June 30, 2023 was $20.1 million and $39.4 million, respectively. In connection with the June 2024 Restructuring, we announced that we will no longer offer Chegg Skills directly to customers. As a result, we wrote-off and accelerated depreciation over shortened useful lives for certain content assets of $1.1 million during the three months ended June 30, 2024, which were classified as cost of revenues on our condensed consolidated statements of operations. For further information on the restructuring, see “Note 11, Restructuring and Other Related Charges.” In connection with the intangibles asset impairment analysis performed in June 2024, we also recorded an impairment expense of $10.0 million related to property and equipment, consisting of $6.6 million of content assets and $3.4 million of software assets, during the three months ended June 30, 2024, which were classified as impairment expense on our condensed consolidated statements of operations. For further information on the impairment analysis, see “Note 6, Goodwill and Intangible Assets.” |
Goodwill and Intangible Assets
Goodwill and Intangible Assets | 6 Months Ended |
Jun. 30, 2024 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Intangible Assets | Goodwill and Intangible Assets Goodwill Goodwill is tested for impairment at least annually or when certain events or indicators of impairment occur between annual impairment tests. During the three months ended June 30, 2024, in consideration of the sustained decline in our stock price, industry developments, and our financial performance, we evaluated our current operating performance. Accordingly, we determined that there were indicators of impairment and a quantitative assessment was necessary. In the quantitative assessment, we estimated the fair value of our reporting unit utilizing an income approach, based on the present value of future discounted cash flows, which is classified as Level 3 in the fair value hierarchy. Significant estimates used to determine fair value include the weighted average cost of capital, growth rates, and amount and timing of expected future cash flows. As a result of the quantitative assessment, we determined that goodwill was impaired as the fair value of our reporting unit was less than the carrying value. As such, during the three months ended June 30, 2024, we recorded a $439.7 million impairment expense equal to the excess of the carrying value of our reporting unit over the estimated fair value, which was classified as impairment expense on our condensed consolidated statements of operations. The following table presents our goodwill balances (in thousands): Six Months Ended June 30, 2024 Year Ended December 31, 2023 Beginning balance $ 631,995 $ 615,093 Impairment expense (439,683) — Foreign currency translation adjustment (2,543) 16,902 Ending balance $ 189,769 $ 631,995 Intangible Assets Intangible assets are tested for impairment at the asset group level at least annually or when events or changes in circumstances indicate that the carrying amount of such asset groups may not be recoverable. In conjunction with our goodwill impairment analysis in June 2024, we determined that there were indicators of impairment for our Busuu assets and a recoverability test was necessary. In the recoverability test, we determined that the expected future undiscounted cash flows for the asset group were not sufficient to recover the carrying value. We then proceeded in estimating the fair value of the asset group utilizing the income approach, based on a present value of future discounted cash flows, which is classified as Level 3 in the fair value hierarchy. Significant estimates used to determine fair value include the growth rates and amount and timing of expected future cash flows. As a result of the impairment test, we determined the asset group was impaired and recorded a $31.9 million impairment expense related to the intangible assets during the three months ended June 30, 2024, which was classified as impairment expense on our condensed consolidated statements of operations. We also recorded an impairment expense for property and equipment, net. For further information, see “Note 5, Property and Equipment, Net.” The following tables present our intangible assets balances as of June 30, 2024 and December 31, 2023 (in thousands, except weighted-average amortization period): June 30, 2024 Weighted-Average Amortization Gross Accumulated Accumulated Impairment Foreign Currency Translation Adjustment Net Carrying Amount Developed technologies 80 $ 106,703 $ (61,167) $ (29,369) $ (3,958) $ 12,209 Content libraries 60 12,230 (11,883) — — 347 Customer lists 35 34,190 (32,774) — (1,298) 118 Trade and domain names 52 16,213 (13,169) (2,493) (377) 174 Total intangible assets 67 $ 169,336 $ (118,993) $ (31,862) $ (5,633) $ 12,848 December 31, 2023 Weighted-Average Amortization Gross Accumulated Accumulated Impairment Foreign Currency Translation Adjustment Net Carrying Amount Developed technologies 80 $ 106,703 $ (55,651) $ — $ (3,757) $ 47,295 Content libraries 60 12,230 (11,189) — — 1,041 Customer lists 35 34,190 (31,836) — (1,298) 1,056 Trade and domain names 52 16,213 (12,817) — (358) 3,038 Total intangible assets 67 $ 169,336 $ (111,493) $ — $ (5,413) $ 52,430 During the three and six months ended June 30, 2024, amortization expense related to our intangible assets totaled $3.5 million and $7.5 million, respectively. During the three and six months ended June 30, 2023, amortization expense related to our intangible assets totaled $6.4 million and $12.6 million, respectively. We did not recognize any impairment expenses on any of our other intangible assets during the three and six months ended June 30, 2023. The following table presents the estimated future amortization expense related to our intangible assets as of June 30, 2024 (in thousands): June 30, 2024 Remaining six months of 2024 $ 2,460 2025 4,240 2026 3,897 2027 1,776 2028 407 Thereafter 68 Total $ 12,848 |
Convertible Senior Notes
Convertible Senior Notes | 6 Months Ended |
Jun. 30, 2024 | |
Debt Disclosure [Abstract] | |
Convertible Senior Notes | Convertible Senior Notes In August 2020, we issued $1.0 billion in aggregate principal amount of 0% convertible senior notes due in 2026 (2026 notes). In March/April 2019, we issued $800 million in aggregate principal amount of 0.125% convertible senior notes due in 2025 (2025 notes, together with the 2026 notes, the notes). The 2026 notes bear no interest and will mature on September 1, 2026, unless repurchased, redeemed or converted in accordance with their terms prior to such date. The 2025 notes bear interest of 0.125% per year which is payable semi-annually in arrears on March 15 and September 15 of each year, beginning on September 15, 2019. The 2025 notes will mature on March 15, 2025, unless repurchased, redeemed or converted in accordance with their terms prior to such date. Each $1,000 principal amount of the 2026 notes will initially be convertible into 9.2978 shares of our common stock. This is equivalent to an initial conversion price of approximately $107.55 per share, which is subject to adjustment in certain circumstances. Each $1,000 principal amount of the 2025 notes will initially be convertible into 19.3956 shares of our common stock. This is equivalent to an initial conversion price of approximately $51.56 per share, which is subject to adjustment in certain circumstances. Prior to the close of business on the business day immediately preceding June 1, 2026 for the 2026 notes and December 15, 2024 for the 2025 notes, the notes are convertible at the option of holders only upon satisfaction of certain circumstances. During the three months ended June 30, 2024, the circumstances allowing holders of the 2026 notes and 2025 notes to convert were not met. On or after June 1, 2026 for the 2026 notes and December 15, 2024 for the 2025 notes until the close of business on the second scheduled trading day immediately preceding the respective maturity dates, holders may convert their notes at any time, regardless of the circumstances. As of June 30, 2024, the 2025 notes were classified as a current liability on our condensed consolidated balance sheets as they will be convertible at the option of the holder at any time beginning December 15, 2024 and will mature on March 15, 2025, both of which are within the next twelve months. The following table presents the net carrying amount of the notes (in thousands): June 30, 2024 December 31, 2023 2026 Notes 2025 Notes 2026 Notes 2025 Notes Principal $ 244,479 $ 358,914 $ 244,479 $ 358,914 Unamortized issuance costs (1,400) (1,076) (1,721) (1,835) Net carrying amount $ 243,079 $ 357,838 $ 242,758 $ 357,079 The following table presents the total interest expense recognized related to the notes (in thousands): Three Months Ended June 30, Six Months Ended June 30, 2024 2023 2024 2023 2026 notes: Contractual interest expense $ — $ — $ — $ — Amortization of issuance costs 160 310 321 635 Total 2026 notes interest expense $ 160 $ 310 $ 321 $ 635 2025 notes: Contractual interest expense $ 111 $ 182 $ 220 $ 398 Amortization of issuance costs 380 621 760 1,353 Total 2025 notes interest expense $ 491 $ 803 $ 980 $ 1,751 Capped Call Transactions Concurrently with the offering of the 2026 notes and 2025 notes, we used $103.4 million and $97.2 million, respectively, of the net proceeds to enter into privately negotiated capped call transactions which are expected to reduce or offset potential dilution to holders of our common stock upon conversion of the notes or offset the potential cash payments we would be required to make in excess of the principal amount of any converted notes. The capped call transactions automatically exercise upon conversion of the notes and as of June 30, 2024, cover 9,297,800 and 6,961,352 shares of our common stock for the 2026 notes and 2025 notes, respectively. These are intended to effectively increase the overall conversion price from $107.55 to $156.44 per share for the 2026 notes and $51.56 to $79.32 per share for the 2025 notes. The effective increase in conversion price as a result of the capped call transactions serves to reduce potential dilution to holders of our common stock and/or offset the cash payments we are required to make in excess of the principal amount of any converted notes. As these transactions meet certain accounting criteria, they are recorded in stockholders’ equity as a reduction of additional paid-in capital on our condensed consolidated balance sheets and are not accounted for as derivatives. The fair value of the capped call instrument is not remeasured each reporting period. The cost of the capped call is not expected to be deductible for tax purposes. |
Commitments and Contingencies
Commitments and Contingencies | 6 Months Ended |
Jun. 30, 2024 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies We may from time to time be subject to certain legal proceedings and claims in the ordinary course of business, including claims of alleged infringement of trademarks, patents, copyrights, and other intellectual property rights; employment claims; and general contract or other claims. We may also, from time to time, be subject to various legal or government claims, demands, disputes, investigations, or requests for information. Such matters may include, but not be limited to, claims, disputes, or investigations related to warranty, refund, breach of contract, employment, intellectual property, government regulation, or compliance or other matters. On March 1, 2023, Plaintiff Shiva Stein, derivatively on behalf of Chegg, filed a stockholder derivative complaint in the Court of Chancery of the State of Delaware (Case No. 2023-0244-NAC) asserting breach of fiduciary duty, unjust enrichment, and waste of corporate asset claims against members of Chegg’s Board and certain Chegg officers. The matter is stayed. The Company disputes these claims and intends to vigorously defend itself in this matter. On February 14, 2023, Plaintiff Brian Stansell, individually and on behalf of other similarly situated stockholders of Chegg, filed a putative class action complaint in the Court of Chancery of the State of Delaware (Case No. 2023-0180) on behalf of all Chegg stockholders who were eligible to vote at Chegg's 2022 Annual Stockholders' Meeting, asserting breach of fiduciary duty claims against the members of Chegg's Board. The Court dismissed this matter pursuant to the Company's motion to dismiss and the matter is concluded. On December 22, 2022, JPMorgan Chase Bank, N.A. (JPMC) asserted a demand for repayment by the Company of certain investment proceeds received by the Company in its capacity as an investor in TAPD, Inc. (more commonly known as “Frank”). JPMC seeks such repayment pursuant to certain provisions in the existing Support Agreement between JPMC and the Company that was entered into in connection with JPMC's acquisition of Frank. JPMC has alleged fraud on the part of certain former Frank executives regarding the quantity and quality of its customer accounts. The Company is not at fault, however is pursuing a settlement agreement with JPMC. As of June 30, 2024, we believe a loss is probable and reasonably estimable, and we have previously recognized an estimated loss contingency accrual within general and administrative expense on our consolidated statements in 2023. On November 9, 2022, Plaintiff Joshua Keller, individually and on behalf of all others similarly situated, filed a putative class action in the United States District Court for the Northern District of California (Case No. 22-cv-06986) on behalf of individuals whose data was allegedly impacted by past data breaches. On August 15, 2023, the Company received an order granting its motion to compel arbitration, and the case was stayed and administratively closed pending the conclusion of arbitration. The parties have since resolved this matter, and the related settlement amount did not have a significant impact on our financial statements. On March 30, 2022, Joseph Robinson, derivatively on behalf of Chegg, filed a shareholder derivative complaint against Chegg and certain of its current and former directors and officers in the United States District Court for the Northern District of California, alleging violations of securities laws and breaches of fiduciary duties. On February 22, 2023, Plaintiff filed an Amended Shareholder Derivative Complaint. This matter has been consolidated with Choi, below, and both matters are stayed. The Company disputes these claims and intends to vigorously defend itself in this matter. On January 12, 2022, Rak Joon Choi, derivatively on behalf of Chegg, filed a shareholder derivative complaint against Chegg and certain of its current and former directors and officers in the United States District Court for the Northern District of California, alleging violations of securities laws, breaches of fiduciary duties, unjust enrichment, abuse of control, gross mismanagement, and waste of corporate assets. On February 22, 2023, Plaintiff filed an Amended Shareholder Derivative Complaint. This matter has been consolidated with Robinson, above, and both matters are stayed. The Company disputes these claims and intends to vigorously defend itself in this matter. On December 22, 2021, Steven Leventhal, individually and on behalf of all others similarly situated, filed a purported securities fraud class action on behalf of all purchasers of Chegg common stock between May 5, 2020 and November 1, 2021, inclusive, against Chegg and certain of its current and former officers in the United States District Court for the Northern District of California (Case No. 5:21-cv-09953), alleging that Chegg and several of its officers made materially false and misleading statements in violation of Sections 10(b) and 20(a) of the Securities Exchange Act of 1934. On September 7, 2022, KBC Asset Management and The Pompano Beach Police & Firefighters Retirement System were appointed as lead plaintiff in the case. On December 8, 2022, Plaintiff filed his Amended Complaint and seeks unspecified compensatory damages, costs, and expenses, including counsel and expert fees. The Company has filed a motion to dismiss the case, which was denied by the Court. The Company disputes these claims and intends to vigorously defend itself in this matter. On September 13, 2021, Pearson Education, Inc. (Pearson) filed a complaint captioned Pearson Education, Inc. v. Chegg, Inc. (Pearson Complaint) in the United States District Court for the District of New Jersey against the Company (Case 2:21-cv-16866), alleging infringement of Pearson’s registered copyrights and exclusive rights under copyright in violation of the United States Copyright Act. Pearson is seeking injunctive relief, monetary damages, costs, and attorneys’ fees. The Company filed its answer to the Pearson Complaint on November 19, 2021. Pearson’s June 29, 2022 Motion for Leave to File Amended Complaint seeking to add Bedford, Freeman & Worth Publishing Group, LLC d/b/a Macmillan Learning as a plaintiff was denied. Pearson filed an Amended Complaint on May 10, 2023, and the Company filed an amended answer on June 7, 2023. The Company disputes these claims and intends to vigorously defend itself in this matter. On June 18, 2020, we received a Civil Investigative Demand (CID) from the Federal Trade Commission (FTC) regarding certain alleged deceptive or unfair acts or practices related to consumer privacy and/or data security. On October 31, 2022, the FTC published the parties’ agreed-upon consent order regarding Chegg’s privacy and data security practices. On January 27, 2023, the FTC finalized its order ("Final Order") requiring Chegg to implement a comprehensive information security program, limit the data the Company can collect and retain, offer users multi factor authentication to secure their accounts, and allow users to request access to and delete their data. No monetary penalties or fines were included in the Final Order. We continue to work with the FTC on the implementation of and compliance with the Final Order. We record a contingent liability for loss contingencies related to legal matters when a loss is both probable and reasonably estimable. Additionally, we record an insurance loss recovery up to the recognized loss contingency when realization is probable. Related to the above matters, the net impact of contingent liabilities less the related insurance loss recovery is $7.0 million, of which the contingent liabilities are included within accrued liabilities and the loss recovery is included within other current assets on our condensed consolidated balance sheets. We are not aware of any other pending legal matters or claims, individually or in the aggregate, which are expected to have a material adverse impact on our consolidated financial position, results of operations, or cash flows. Our analysis of whether a claim will proceed to litigation cannot be predicted with certainty, nor can the results of litigation be predicted with certainty. Nevertheless, defending any of these actions, regardless of the outcome, may be costly, time consuming, distract management personnel and have a negative effect on our business. In the ordinary course of business and for certain of the above matters, we are actively pursuing all avenues and strategies to resolve these matters, including available legal remedies, remediation and settlement negotiations with the parties. An adverse outcome in any of these actions, including a judgment or settlement, may cause a material adverse effect on our future business, operating results or financial condition. |
Guarantees and Indemnifications
Guarantees and Indemnifications | 6 Months Ended |
Jun. 30, 2024 | |
Guarantees And Indemnifications [Abstract] | |
Guarantees and Indemnifications | Guarantees and Indemnifications We have agreed to indemnify our directors and officers for certain events or occurrences, subject to certain limits, while such persons are or were serving at our request in such capacity. We may terminate the indemnification agreements with these persons upon termination of employment, but termination will not affect claims for indemnification related to events occurring prior to the effective date of termination. We have a directors’ and officers’ insurance policy that limits our potential exposure up to the limits of our insurance coverage. In addition, we also have other indemnification agreements with various vendors against certain claims, liabilities, losses, and damages. The maximum amount of potential future indemnification is unlimited. We believe the fair value of these indemnification agreements is immaterial. We have not recorded any liabilities for these agreements as of June 30, 2024. |
Stockholders' Equity
Stockholders' Equity | 6 Months Ended |
Jun. 30, 2024 | |
Share-Based Payment Arrangement [Abstract] | |
Stockholders' Equity | Stockholders' Equity Share Repurchases In February 2024, we repurchased 2,115,952 shares of our common stock related to the final delivery of our November 2023 accelerated share repurchase (ASR) agreement. The November 2023 ASR settled, and we were not required to make any additional cash payments or delivery of common stock to the financial institution upon settlement. During the year ended December 31, 2023, we repurchased a total of 26,505,979 shares of our common stock, which included the initial delivery of 13,498,313 shares from our November 2023 ASR, 3,433,157 shares from open market transactions in June 2023, and the total delivery of 9,574,509 shares from our February 2023 ASR, which were retired immediately. Securities Repurchase Program In August 2023, our board of directors approved a $200.0 million increase to our existing securities repurchase program authorizing the repurchase of up to $2.2 billion of our common stock and/or convertible notes, through open market purchases, block trades, and/or privately negotiated transactions or pursuant to Rule 10b5-1 plans, in compliance with applicable securities laws and other legal requirements. The timing, volume, and nature of the repurchases will be determined by management based on the capital needs of the business, market conditions, applicable legal requirements, and other factors. During the three and six months ended June 30, 2024, we had no cash repurchases of our common stock or notes. As of June 30, 2024, we had $3.7 million remaining under the securities repurchase program, which has no expiration date and will continue until otherwise suspended, terminated or modified at any time for any reason by our board of directors. Share-based Compensation Expense The following table presents total share-based compensation expense recorded (in thousands): Three Months Ended Six Months Ended 2024 2023 2024 2023 Cost of revenues $ 466 $ 560 $ 979 $ 1,087 Research and development 7,123 11,968 16,332 22,882 Sales and marketing 1,726 2,182 3,866 4,681 General and administrative 8,732 21,210 26,159 41,016 Total share-based compensation expense $ 18,047 $ 35,920 $ 47,336 $ 69,666 During the three and six months ended June 30, 2024, we capitalized share-based compensation expense of $1.4 million and $2.7 million, respectively. During the three and six months ended June 30, 2023, we capitalized share-based compensation expense of $0.7 million and $1.7 million, respectively. As of June 30, 2024, total unrecognized share-based compensation expense was approximately $98.9 million, which is expected to be recognized over the remaining weighted-average vesting period of approximately 1.6 years. The following table presents activity for outstanding RSUs and PSUs: RSUs and PSUs Outstanding Shares Outstanding Weighted Average Grant Date Fair Value Balance at December 31, 2023 10,065,783 $ 23.63 Granted 5,541,759 4.37 Released (3,186,924) 21.83 Forfeited (1,683,820) 31.45 Balance at June 30, 2024 10,736,798 $ 12.99 |
Restructuring and Other Related
Restructuring and Other Related Charges | 6 Months Ended |
Jun. 30, 2024 | |
Restructuring and Related Activities [Abstract] | |
Restructuring and Other Related Charges | Restructuring and Other Related Charges Restructuring Charges In June 2024, we announced a workforce reduction that resulted in a management approved restructuring plan. During the three months ended June 30, 2024, we recorded $6.7 million of restructuring charges, primarily related to one-time employee termination benefits, classified on our condensed consolidated statement of operations based on employees' job function. The restructuring liability is included within accrued liabilities on our condensed consolidated balance sheets. We estimate we will incur between $3 million and $4 million of additional restructuring charges over the next two fiscal quarters. We expect the plan to be substantially completed by the end of the first quarter of fiscal 2025. The following table presents a reconciliation of the beginning and ending restructuring liability balance (in thousands): Three Months Ended June 30, 2024 Beginning balance $ — Restructuring charges 6,728 Restructuring payments (3,279) Ending balance $ 3,449 Impairment of lease related assets In connection with the June 2024 restructuring, we announced the closure of two offices outside of the United States. As a result, we recorded a full impairment expense of $2.2 million, consisting of $1.1 million impairment of ROU assets and $1.1 million leasehold improvements during the three months ended June 30, 2024, which was classified as general and administrative expense on our condensed consolidated statement of operations. Our intent and ability to sublease the office as well as the local market conditions were factored in when measuring the amount of impairment. |
Income Taxes
Income Taxes | 6 Months Ended |
Jun. 30, 2024 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes During the three and six months ended June 30, 2024, we recorded a provision for income taxes of $138.3 million and $147.4 million, respectively. During the three and six months ended June 30, 2023, we recorded a provision for income taxes of $19.7 million and $23.9 million, respectively. During the three and six months ended June 30, 2024, the provision for income taxes was primarily from the valuation allowance establishment of $141.6 million as a discrete non-cash income tax expense against our U.S. federal and state deferred tax assets. We regularly assess the need for a valuation allowance against our deferred tax assets. In performing our assessment, we consider both positive and negative evidence related to the likelihood of realizing our deferred tax assets. As of June 30, 2024, we determined that it is more likely than not that the deferred tax benefit will not be realized due to the available negative evidence outweighing the positive evidence, primarily resulting from the cumulative loss influenced by the impairment expense recorded during the three and six months ended June 30, 2024. |
Subsequent Event
Subsequent Event | 6 Months Ended |
Jun. 30, 2024 | |
Subsequent Events [Abstract] | |
Subsequent Event | Subsequent Event In July 2024, we entered into an amendment related to our office in India that primarily modifies our existing lease payments, increases the square footage, and extends the lease term. The result of the amendment is a net increase to our future minimum lease payments of approximately $12.3 million. The accounting for the lease amendment is in process as of the issuance date of our condensed consolidated financial statements and therefore we are unable to make any additional disclosures. |
Pay vs Performance Disclosure
Pay vs Performance Disclosure - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Pay vs Performance Disclosure | ||||
Net (loss) income | $ (616,884) | $ 24,612 | $ (618,304) | $ 26,798 |
Insider Trading Arrangements
Insider Trading Arrangements | 3 Months Ended |
Jun. 30, 2024 | |
Trading Arrangements, by Individual | |
Rule 10b5-1 Arrangement Adopted | false |
Non-Rule 10b5-1 Arrangement Adopted | false |
Rule 10b5-1 Arrangement Terminated | false |
Non-Rule 10b5-1 Arrangement Terminated | false |
Background and Basis of Prese_2
Background and Basis of Presentation (Policies) | 6 Months Ended |
Jun. 30, 2024 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation | Basis of Presentation The accompanying unaudited 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 U.S. Securities and Exchange Commission (“SEC”) regarding interim financial reporting. The condensed consolidated financial statements include the results of Chegg, Inc. and its wholly-owned subsidiaries. Significant intercompany balances and transactions have been eliminated. In the opinion of management, the accompanying unaudited condensed consolidated financial statements contain all adjustments, including normal recurring adjustments, necessary to present fairly our financial position as of June 30, 2024, our results of operations, results of comprehensive (loss) income and stockholders' equity for the three and six months ended June 30, 2024 and 2023, and our cash flows for the six months ended June 30, 2024 and 2023. Our results of operations, results of comprehensive (loss) income, stockholders' equity, and cash flows for the six months ended June 30, 2024 are not necessarily indicative of the results to be expected for the full year. We have a single operating and reportable segment and operating unit structure. The condensed consolidated financial statements and related financial information should be read in conjunction with the audited consolidated financial statements and the related notes thereto that are included in our Annual Report on Form 10-K for the year ended December 31, 2023 (the Annual Report on Form 10-K) filed with the SEC. |
Use of Estimates | Use of Estimates |
Reclassification of Prior Period Presentation | Reclassification of Prior Period Presentation In order to confirm with current period presentation, $5.7 million of restructuring charges during the six months ended June 30, 2023 has been reclassified to changes in accrued liabilities on our condensed consolidated statements of cash flows. This change in presentation does not affect previously reported results. |
Recent Accounting Pronouncements | Recent Accounting Pronouncements Recently Issued Accounting Pronouncements Not Yet Adopted In March 2024, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) 2024-02, Codification Improvements—Amendments to Remove References to the Concepts Statements . ASU 2024-02 removes various references to the FASB’s Concepts Statements from the FASB’s Accounting Standards Codification. Early adoption is permitted, and the guidance will be applied prospectively with the option to apply retrospectively. The guidance is effective for annual periods beginning after December 15, 2024. We did not early adopt ASU 2024-02 and do not believe it will have a significant impact on our financial statements, however, we are currently in the process of evaluating the impact. In December 2023, the FASB issued ASU 2023-09, Improvements to Income Tax Disclosures . ASU 2023-09 requires disaggregated information about our effective tax rate reconciliation as well as information on income taxes paid that meet a quantitative threshold. Early adoption is permitted, and the guidance will be applied prospectively with the option to apply retrospectively. The guidance is effective for annual periods beginning after December 15, 2024. We did not early adopt ASU 2023-09 and we are currently in the process of evaluating the impact of this guidance. In November 2023, the FASB issued ASU 2023-07, Improvements to Reportable Segment Disclosures . ASU 2023-07 enhances current interim and annual reportable segment disclosures and requires additional disclosures about significant segment expenses. Early adoption is permitted, and we are required to adopt the changes on a retrospective basis. The guidance is effective for annual periods beginning after December 15, 2023 and for interim periods beginning December 15, 2024. We did not early adopt ASU 2023-07 and we are currently in the process of evaluating the impact of this guidance. Recently Adopted Accounting Pronouncements We did not adopt any accounting pronouncements during the six months ended June 30, 2024 that had a material impact on our financial statements. |
Background and Basis of Prese_3
Background and Basis of Presentation (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Schedule of Intangible Assets and Goodwill | The following table presents our impairment expense (in thousands): Impairment expense Goodwill $ 439,683 Intangible assets 31,862 Property and equipment, net 9,986 Total impairment expense $ 481,531 |
Revenues (Tables)
Revenues (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Revenue from Contract with Customer [Abstract] | |
Schedule of Disaggregation of Revenue | The following tables present our total net revenues for the periods shown disaggregated for our Subscription Services and Skills and Other product lines (in thousands, except percentages): Three Months Ended Change 2024 2023 $ % Subscription Services $ 146,813 $ 165,855 $ (19,042) (11) % Skills and Other 16,334 16,998 (664) (4) Total net revenues $ 163,147 $ 182,853 $ (19,706) (11) Six Months Ended Change 2024 2023 $ % Subscription Services $ 300,864 $ 334,295 $ (33,431) (10) % Skills and Other 36,633 36,159 474 1 Total net revenues $ 337,497 $ 370,454 $ (32,957) (9) |
Schedule of Accounts Receivable | The following table presents our accounts receivable, net, contract assets and deferred revenue balances (in thousands, except percentages): Change June 30, December 31, 2023 $ % Accounts receivable, net $ 20,964 $ 31,404 $ (10,440) (33) % Contract assets 7,674 8,598 (924) (11) Deferred revenue 45,023 55,336 (10,313) (19) |
Net (Loss) Income Per Share (Ta
Net (Loss) Income Per Share (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Earnings Per Share [Abstract] | |
Schedule of Net (Loss) Income Per Share, Basic and Diluted | The following table presents the computation of basic and diluted net (loss) income per share (in thousands, except per share amounts): Three Months Ended Six Months Ended 2024 2023 2024 2023 Basic Numerator: Net (loss) income $ (616,884) $ 24,612 $ (618,304) $ 26,798 Denominator: Weighted average shares used to compute net (loss) income per share, basic 102,604 117,977 102,474 120,828 Net (loss) income per share, basic $ (6.01) $ 0.21 $ (6.03) $ 0.22 Diluted Numerator: Net (loss) income $ (616,884) $ 24,612 $ (618,304) $ 26,798 Convertible senior notes activity, net of tax — (39,398) — (38,446) Net (loss) income, diluted $ (616,884) $ (14,786) $ (618,304) $ (11,648) Denominator: Weighted average shares used to compute net (loss) income per share, basic 102,604 117,977 102,474 120,828 Shares related to convertible senior notes — 14,967 — 16,588 Weighted average shares used to compute net (loss) income per share, diluted 102,604 132,944 102,474 137,416 Net (loss) income per share, diluted $ (6.01) $ (0.11) $ (6.03) $ (0.08) |
Schedule of Antidilutive Securities Excluded from Computation of Net (Loss) Income Per Share | The following table presents potential weighted-average shares of common stock outstanding that were excluded from the computation of diluted net (loss) income per share because including them would have been anti-dilutive (in thousands): Three Months Ended Six Months Ended 2024 2023 2024 2023 Shares related to stock plan activity 7,421 9,982 7,286 7,661 Shares related to convertible senior notes 9,234 — 9,234 — Total common stock equivalents 16,655 9,982 16,520 7,661 |
Cash and Cash Equivalents, In_2
Cash and Cash Equivalents, Investments and Fair Value Measurements (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Cash and Cash Equivalents [Abstract] | |
Schedule of Cash, Cash Equivalents and Investments | The following tables present our cash and cash equivalents, and investments’ fair value level classification, adjusted cost, unrealized gain, unrealized loss and fair value as of June 30, 2024 and December 31, 2023 (in thousands): June 30, 2024 Fair Value Level Adjusted Cost Unrealized Gain Unrealized Loss Fair Value Cash and cash equivalents: Cash $ 46,551 $ — $ — $ 46,551 Money market funds Level 1 86,517 — — 86,517 Total cash and cash equivalents $ 133,068 $ — $ — $ 133,068 Short-term investments: Corporate debt securities Level 2 $ 121,988 $ — $ (391) $ 121,597 U.S. treasury securities Level 1 66,138 — (247) 65,891 Agency bonds Level 2 25,020 — (112) 24,908 Total short-term investments $ 213,146 $ — $ (750) $ 212,396 Long-term investments: Corporate debt securities Level 2 $ 208,171 $ 144 $ (951) $ 207,364 U.S. treasury securities Level 1 52,830 — (269) 52,561 Total long-term investments $ 261,001 $ 144 $ (1,220) $ 259,925 December 31, 2023 Fair Value Level Adjusted Cost Unrealized Gain Unrealized Loss Fair Value Cash and cash equivalents: Cash $ 45,050 $ — $ — $ 45,050 Money market funds Level 1 90,707 — — 90,707 Total cash and cash equivalents $ 135,757 $ — $ — $ 135,757 Short-term investments: Corporate debt securities Level 2 $ 69,548 $ — $ (170) $ 69,378 U.S. treasury securities Level 1 25,734 — (114) 25,620 Agency bonds Level 2 99,505 — (246) 99,259 Total short-term investments $ 194,787 $ — $ (530) $ 194,257 Long-term investments: Corporate debt securities Level 2 $ 191,467 $ 898 $ (213) $ 192,152 U.S. treasury securities Level 1 57,287 165 (57) 57,395 Total long-term investments $ 248,754 $ 1,063 $ (270) $ 249,547 |
Schedule of Available-for-sale Securities Reconciliation | The following table presents our cash equivalents and investments' adjusted cost and fair value by contractual maturity as of June 30, 2024 (in thousands): Adjusted Cost Fair Value Due within one year $ 213,146 $ 212,396 Due after one year through three years 261,001 259,925 Investments not due at a single maturity date 86,517 86,517 Total $ 560,664 $ 558,838 |
Property and Equipment, Net (Ta
Property and Equipment, Net (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Property, Plant and Equipment [Abstract] | |
Schedule of Property and Equipment, Net | Property and equipment, net consisted of the following (in thousands): June 30, 2024 December 31, 2023 Content $ 362,957 $ 346,749 Software 59,744 51,855 Leasehold improvements 10,213 10,857 Furniture and fixtures 4,253 4,607 Computer and equipment 3,210 3,496 Property and equipment 440,377 417,564 Less accumulated depreciation and amortization (261,099) (234,491) Property and equipment, net $ 179,278 $ 183,073 |
Goodwill and Intangible Assets
Goodwill and Intangible Assets (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Goodwill | The following table presents our goodwill balances (in thousands): Six Months Ended June 30, 2024 Year Ended December 31, 2023 Beginning balance $ 631,995 $ 615,093 Impairment expense (439,683) — Foreign currency translation adjustment (2,543) 16,902 Ending balance $ 189,769 $ 631,995 |
Schedule of Finite-lived Intangible Assets | The following tables present our intangible assets balances as of June 30, 2024 and December 31, 2023 (in thousands, except weighted-average amortization period): June 30, 2024 Weighted-Average Amortization Gross Accumulated Accumulated Impairment Foreign Currency Translation Adjustment Net Carrying Amount Developed technologies 80 $ 106,703 $ (61,167) $ (29,369) $ (3,958) $ 12,209 Content libraries 60 12,230 (11,883) — — 347 Customer lists 35 34,190 (32,774) — (1,298) 118 Trade and domain names 52 16,213 (13,169) (2,493) (377) 174 Total intangible assets 67 $ 169,336 $ (118,993) $ (31,862) $ (5,633) $ 12,848 December 31, 2023 Weighted-Average Amortization Gross Accumulated Accumulated Impairment Foreign Currency Translation Adjustment Net Carrying Amount Developed technologies 80 $ 106,703 $ (55,651) $ — $ (3,757) $ 47,295 Content libraries 60 12,230 (11,189) — — 1,041 Customer lists 35 34,190 (31,836) — (1,298) 1,056 Trade and domain names 52 16,213 (12,817) — (358) 3,038 Total intangible assets 67 $ 169,336 $ (111,493) $ — $ (5,413) $ 52,430 |
Schedule of Indefinite-lived Intangible Assets | The following tables present our intangible assets balances as of June 30, 2024 and December 31, 2023 (in thousands, except weighted-average amortization period): June 30, 2024 Weighted-Average Amortization Gross Accumulated Accumulated Impairment Foreign Currency Translation Adjustment Net Carrying Amount Developed technologies 80 $ 106,703 $ (61,167) $ (29,369) $ (3,958) $ 12,209 Content libraries 60 12,230 (11,883) — — 347 Customer lists 35 34,190 (32,774) — (1,298) 118 Trade and domain names 52 16,213 (13,169) (2,493) (377) 174 Total intangible assets 67 $ 169,336 $ (118,993) $ (31,862) $ (5,633) $ 12,848 December 31, 2023 Weighted-Average Amortization Gross Accumulated Accumulated Impairment Foreign Currency Translation Adjustment Net Carrying Amount Developed technologies 80 $ 106,703 $ (55,651) $ — $ (3,757) $ 47,295 Content libraries 60 12,230 (11,189) — — 1,041 Customer lists 35 34,190 (31,836) — (1,298) 1,056 Trade and domain names 52 16,213 (12,817) — (358) 3,038 Total intangible assets 67 $ 169,336 $ (111,493) $ — $ (5,413) $ 52,430 |
Schedule of Estimated Future Amortization Expense Related to Intangible Assets | The following table presents the estimated future amortization expense related to our intangible assets as of June 30, 2024 (in thousands): June 30, 2024 Remaining six months of 2024 $ 2,460 2025 4,240 2026 3,897 2027 1,776 2028 407 Thereafter 68 Total $ 12,848 |
Convertible Senior Notes (Table
Convertible Senior Notes (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Debt Disclosure [Abstract] | |
Schedule of Debt | The following table presents the net carrying amount of the notes (in thousands): June 30, 2024 December 31, 2023 2026 Notes 2025 Notes 2026 Notes 2025 Notes Principal $ 244,479 $ 358,914 $ 244,479 $ 358,914 Unamortized issuance costs (1,400) (1,076) (1,721) (1,835) Net carrying amount $ 243,079 $ 357,838 $ 242,758 $ 357,079 |
Schedule Of Interest Expense Recognized | The following table presents the total interest expense recognized related to the notes (in thousands): Three Months Ended June 30, Six Months Ended June 30, 2024 2023 2024 2023 2026 notes: Contractual interest expense $ — $ — $ — $ — Amortization of issuance costs 160 310 321 635 Total 2026 notes interest expense $ 160 $ 310 $ 321 $ 635 2025 notes: Contractual interest expense $ 111 $ 182 $ 220 $ 398 Amortization of issuance costs 380 621 760 1,353 Total 2025 notes interest expense $ 491 $ 803 $ 980 $ 1,751 |
Stockholders' Equity (Tables)
Stockholders' Equity (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Share-Based Payment Arrangement [Abstract] | |
Schedule of Stock-Based Compensation Expense for Employees and Non-Employees | The following table presents total share-based compensation expense recorded (in thousands): Three Months Ended Six Months Ended 2024 2023 2024 2023 Cost of revenues $ 466 $ 560 $ 979 $ 1,087 Research and development 7,123 11,968 16,332 22,882 Sales and marketing 1,726 2,182 3,866 4,681 General and administrative 8,732 21,210 26,159 41,016 Total share-based compensation expense $ 18,047 $ 35,920 $ 47,336 $ 69,666 |
Schedule of Restricted Stock Unit Activity | The following table presents activity for outstanding RSUs and PSUs: RSUs and PSUs Outstanding Shares Outstanding Weighted Average Grant Date Fair Value Balance at December 31, 2023 10,065,783 $ 23.63 Granted 5,541,759 4.37 Released (3,186,924) 21.83 Forfeited (1,683,820) 31.45 Balance at June 30, 2024 10,736,798 $ 12.99 |
Restructuring and Other Relat_2
Restructuring and Other Related Charges (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Restructuring and Related Activities [Abstract] | |
Schedule of Changes in Restructuring Liability Balance | The following table presents a reconciliation of the beginning and ending restructuring liability balance (in thousands): Three Months Ended June 30, 2024 Beginning balance $ — Restructuring charges 6,728 Restructuring payments (3,279) Ending balance $ 3,449 |
Background and Basis of Prese_4
Background and Basis of Presentation - Narrative (Details) $ in Thousands | 6 Months Ended | |
Jun. 30, 2024 USD ($) segment | Jun. 30, 2023 USD ($) | |
Debt Instrument [Line Items] | ||
Number of operating segments | segment | 1 | |
Number of reportable segments | segment | 1 | |
Decrease in accrued liabilities | $ | $ 4,057 | $ 1,436 |
Revision of Prior Period, Reclassification, Adjustment | ||
Debt Instrument [Line Items] | ||
Decrease in accrued liabilities | $ | $ 5,700 |
Background and Basis of Prese_5
Background and Basis of Presentation - Impairment Expense (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | Dec. 31, 2023 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |||||
Impairment expense | $ 439,683 | $ 439,683 | $ 0 | ||
Intangible assets | 31,862 | 31,862 | |||
Property and equipment, net | 9,986 | 9,986 | |||
Total impairment expense | $ 481,531 | $ 0 | $ 481,531 | $ 0 |
Revenues - Disaggregation of Re
Revenues - Disaggregation of Revenue (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Disaggregation of Revenue [Line Items] | ||||
Total net revenues | $ 163,147 | $ 182,853 | $ 337,497 | $ 370,454 |
Change, Total net revenues | $ (19,706) | $ (32,957) | ||
Change, Total net revenues, percent | (11.00%) | (9.00%) | ||
Subscription Services | ||||
Disaggregation of Revenue [Line Items] | ||||
Total net revenues | $ 146,813 | 165,855 | $ 300,864 | 334,295 |
Change, Total net revenues | $ (19,042) | $ (33,431) | ||
Change, Total net revenues, percent | (11.00%) | (10.00%) | ||
Skills and Other | ||||
Disaggregation of Revenue [Line Items] | ||||
Total net revenues | $ 16,334 | $ 16,998 | $ 36,633 | $ 36,159 |
Change, Total net revenues | $ (664) | $ 474 | ||
Change, Total net revenues, percent | (4.00%) | 1% |
Revenues - Narrative (Details)
Revenues - Narrative (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Revenue from Contract with Customer [Abstract] | ||||
Contract with customer, liability, revenue recognized | $ 38,900 | $ 41,100 | $ 47,100 | $ 47,900 |
Decrease in accounts receivable, net | $ 10,440 | |||
Decrease in accounts receivable, net, percent | 33% | |||
Decrease in contract assets | $ 924 | |||
Decrease in contract assets, percent | 11% | |||
Decrease in deferred revenue | $ 10,313 | |||
Decrease in deferred revenue, percent | 19% |
Revenues - Contract Balances (D
Revenues - Contract Balances (Details) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2024 | Dec. 31, 2023 | |
Revenue from Contract with Customer [Abstract] | ||
Accounts receivable, net | $ 20,964 | $ 31,404 |
Change, accounts receivable, net | $ (10,440) | |
Change, accounts receivable, net, percent | (33.00%) | |
Contract assets | $ 7,674 | 8,598 |
Change in contract assets | $ (924) | |
Change in contract assets, percent | (11.00%) | |
Deferred revenue | $ 45,023 | $ 55,336 |
Change in deferred revenue | $ (10,313) | |
Change in deferred revenue, percent | (19.00%) |
Net (Loss) Income Per Share - C
Net (Loss) Income Per Share - Computation of Basic and Diluted Net (Loss) Income Per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Numerator: | ||||
Net (loss) income | $ (616,884) | $ 24,612 | $ (618,304) | $ 26,798 |
Convertible senior notes activity, net of tax | 0 | (39,398) | 0 | (38,446) |
Net (loss) income, diluted | $ (616,884) | $ (14,786) | $ (618,304) | $ (11,648) |
Net (loss) income per share, basic, (in dollars per share) | $ (6.01) | $ 0.21 | $ (6.03) | $ 0.22 |
Denominator: | ||||
Weighted average shares used to compute net (loss) income per share, basic (in shares) | 102,604 | 117,977 | 102,474 | 120,828 |
Weighted average shares used to compute net loss per share, diluted (in shares) | 102,604 | 132,944 | 102,474 | 137,416 |
Net (loss) income per share, diluted (in dollars per share) | $ (6.01) | $ (0.11) | $ (6.03) | $ (0.08) |
Shares related to convertible senior notes | ||||
Denominator: | ||||
Shares related to convertible senior notes (in shares) | 0 | 14,967 | 0 | 16,588 |
Net (Loss) Income Per Share - S
Net (Loss) Income Per Share - Shares Excluded From Computation Of Diluted Net (Loss) Income Per Share (Details) - shares shares in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Total common stock equivalents (in shares) | 16,655 | 9,982 | 16,520 | 7,661 |
Shares related to stock plan activity | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Total common stock equivalents (in shares) | 7,421 | 9,982 | 7,286 | 7,661 |
Shares related to convertible senior notes | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Total common stock equivalents (in shares) | 9,234 | 0 | 9,234 | 0 |
Cash and Cash Equivalents, In_3
Cash and Cash Equivalents, Investments and Fair Value Measurements - Schedule of Available For Sale Securities (Details) - USD ($) $ in Thousands | Jun. 30, 2024 | Dec. 31, 2023 | Jun. 30, 2023 |
Debt Securities, Available-for-sale [Line Items] | |||
Cash | $ 133,068 | $ 135,757 | $ 175,368 |
Adjusted Cost | 560,664 | ||
Fair Value | 558,838 | ||
Cash | |||
Debt Securities, Available-for-sale [Line Items] | |||
Cash | 46,551 | 45,050 | |
Short-term investments: | |||
Debt Securities, Available-for-sale [Line Items] | |||
Adjusted Cost | 213,146 | 194,787 | |
Unrealized Gain | 0 | 0 | |
Unrealized Loss | (750) | (530) | |
Fair Value | 212,396 | 194,257 | |
Long-term investments: | |||
Debt Securities, Available-for-sale [Line Items] | |||
Adjusted Cost | 261,001 | 248,754 | |
Unrealized Gain | 144 | 1,063 | |
Unrealized Loss | (1,220) | (270) | |
Fair Value | 259,925 | 249,547 | |
Level 1 | Money market funds | |||
Debt Securities, Available-for-sale [Line Items] | |||
Cash | 86,517 | 90,707 | |
Corporate debt securities | Level 2 | Short-term investments: | |||
Debt Securities, Available-for-sale [Line Items] | |||
Adjusted Cost | 121,988 | 69,548 | |
Unrealized Gain | 0 | 0 | |
Unrealized Loss | (391) | (170) | |
Fair Value | 121,597 | 69,378 | |
Corporate debt securities | Level 2 | Long-term investments: | |||
Debt Securities, Available-for-sale [Line Items] | |||
Adjusted Cost | 208,171 | 191,467 | |
Unrealized Gain | 144 | 898 | |
Unrealized Loss | (951) | (213) | |
Fair Value | 207,364 | 192,152 | |
U.S. treasury securities | Level 1 | Short-term investments: | |||
Debt Securities, Available-for-sale [Line Items] | |||
Adjusted Cost | 66,138 | 25,734 | |
Unrealized Gain | 0 | 0 | |
Unrealized Loss | (247) | (114) | |
Fair Value | 65,891 | 25,620 | |
U.S. treasury securities | Level 1 | Long-term investments: | |||
Debt Securities, Available-for-sale [Line Items] | |||
Adjusted Cost | 52,830 | 57,287 | |
Unrealized Gain | 0 | 165 | |
Unrealized Loss | (269) | (57) | |
Fair Value | 52,561 | 57,395 | |
Agency bonds | Level 2 | Short-term investments: | |||
Debt Securities, Available-for-sale [Line Items] | |||
Adjusted Cost | 25,020 | 99,505 | |
Unrealized Gain | 0 | 0 | |
Unrealized Loss | (112) | (246) | |
Fair Value | $ 24,908 | $ 99,259 |
Cash and Cash Equivalents, In_4
Cash and Cash Equivalents, Investments and Fair Value Measurements - Contractual Maturity (Details) $ in Thousands | Jun. 30, 2024 USD ($) |
Adjusted Cost | |
Due within one year | $ 213,146 |
Due after one year through three years | 261,001 |
Investments not due at a single maturity date | 86,517 |
Adjusted Cost | 560,664 |
Fair Value | |
Due within one year | 212,396 |
Due after one year through three years | 259,925 |
Investments not due at a single maturity date | 86,517 |
Fair Value | $ 558,838 |
Cash and Cash Equivalents, In_5
Cash and Cash Equivalents, Investments and Fair Value Measurements - Strategic Investments (Details) - USD ($) $ in Thousands | 1 Months Ended | 6 Months Ended | ||||
Jan. 01, 2024 | May 31, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | Dec. 31, 2023 | Jul. 31, 2022 | |
Schedule of Investments [Line Items] | ||||||
Proceeds from sale of strategic equity investment | $ 15,500 | $ 0 | ||||
Sound Ventures AI Fund, LP | ||||||
Schedule of Investments [Line Items] | ||||||
Commitment to invest | $ 15,000 | |||||
Invests in artificial intelligence companies, ownership percentage | 6% | |||||
Investment, carrying amount | $ 11,700 | |||||
Proceeds from sale of strategic equity investment | $ 15,500 | |||||
Equity method investment, realized gain on disposal | $ 3,800 | |||||
Knack Technologies, Inc | ||||||
Schedule of Investments [Line Items] | ||||||
Investment without readily determinable fair value | $ 6,000 |
Cash and Cash Equivalents, In_6
Cash and Cash Equivalents, Investments and Fair Value Measurements - Debt (Details) - Estimate of Fair Value Measurement - Senior Notes - Fair Value, Measurements, Nonrecurring - USD ($) $ in Millions | Jun. 30, 2024 | Dec. 31, 2023 |
Senior Notes due 2026 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Convertible senior notes | $ 195.3 | $ 202.9 |
Senior Notes due 2025 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Convertible senior notes | $ 328.4 | $ 329.5 |
Property and Equipment, Net - S
Property and Equipment, Net - Schedule of Property and Equipment, Net (Details) - USD ($) $ in Thousands | Jun. 30, 2024 | Dec. 31, 2023 |
Property, Plant and Equipment [Line Items] | ||
Property and equipment | $ 440,377 | $ 417,564 |
Less accumulated depreciation and amortization | (261,099) | (234,491) |
Property and equipment, net | 179,278 | 183,073 |
Content | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment | 362,957 | 346,749 |
Software | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment | 59,744 | 51,855 |
Leasehold improvements | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment | 10,213 | 10,857 |
Furniture and fixtures | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment | 4,253 | 4,607 |
Computer and equipment | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment | $ 3,210 | $ 3,496 |
Property and Equipment, Net - N
Property and Equipment, Net - Narrative (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Property, Plant and Equipment [Line Items] | ||||
Depreciation and content amortization expense | $ 16,200 | $ 20,100 | $ 31,900 | $ 39,400 |
Property and equipment, net | 9,986 | $ 9,986 | ||
Content | ||||
Property, Plant and Equipment [Line Items] | ||||
Property and equipment, net | 6,600 | |||
Content | Disposal Group, Disposed of by Means Other than Sale, Not Discontinued Operations, Abandonment | ||||
Property, Plant and Equipment [Line Items] | ||||
Disposal group, not discontinued operation, depreciation and amortization | 1,100 | |||
Software | ||||
Property, Plant and Equipment [Line Items] | ||||
Property and equipment, net | $ 3,400 |
Goodwill and Intangible Asset_2
Goodwill and Intangible Assets - Narrative (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | Dec. 31, 2023 | |
Finite Lived Intangible Assets [Line Items] | |||||
Impairment expense | $ 439,683 | $ 439,683 | $ 0 | ||
Impairment of intangible assets | 31,900 | ||||
Acquisition-Related Intangible Assets | |||||
Finite Lived Intangible Assets [Line Items] | |||||
Amortization expense of acquisition related to acquired intangible assets | $ 3,500 | $ 6,400 | $ 7,500 | $ 12,600 |
Goodwill and Intangible Asset_3
Goodwill and Intangible Assets - Goodwill (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | 12 Months Ended |
Jun. 30, 2024 | Jun. 30, 2024 | Dec. 31, 2023 | |
Goodwill [Roll Forward] | |||
Goodwill, Beginning Balance | $ 631,995 | $ 615,093 | |
Impairment expense | $ (439,683) | (439,683) | 0 |
Foreign currency translation adjustment | (2,543) | 16,902 | |
Goodwill, Ending Balance | $ 189,769 | $ 189,769 | $ 631,995 |
Goodwill and Intangible Asset_4
Goodwill and Intangible Assets - Finite-lived and Indefinite-lived Intangible Assets (Details) - USD ($) $ in Thousands | Jun. 30, 2024 | Dec. 31, 2023 |
Finite Lived Intangible Assets [Line Items] | ||
Weighted-Average Amortization Period (in months) | 67 months | 67 months |
Gross Carrying Amount | $ 169,336 | $ 169,336 |
Accumulated Amortization | (118,993) | (111,493) |
Accumulated Impairment | (31,862) | 0 |
Foreign Currency Translation Adjustment | (5,633) | (5,413) |
Net Carrying Amount | $ 12,848 | $ 52,430 |
Developed technologies | ||
Finite Lived Intangible Assets [Line Items] | ||
Weighted-Average Amortization Period (in months) | 80 months | 80 months |
Gross Carrying Amount | $ 106,703 | $ 106,703 |
Accumulated Amortization | (61,167) | (55,651) |
Accumulated Impairment | (29,369) | 0 |
Foreign Currency Translation Adjustment | (3,958) | (3,757) |
Net Carrying Amount | $ 12,209 | $ 47,295 |
Content libraries | ||
Finite Lived Intangible Assets [Line Items] | ||
Weighted-Average Amortization Period (in months) | 60 months | 60 months |
Gross Carrying Amount | $ 12,230 | $ 12,230 |
Accumulated Amortization | (11,883) | (11,189) |
Accumulated Impairment | 0 | 0 |
Foreign Currency Translation Adjustment | 0 | 0 |
Net Carrying Amount | $ 347 | $ 1,041 |
Customer lists | ||
Finite Lived Intangible Assets [Line Items] | ||
Weighted-Average Amortization Period (in months) | 35 months | 35 months |
Gross Carrying Amount | $ 34,190 | $ 34,190 |
Accumulated Amortization | (32,774) | (31,836) |
Accumulated Impairment | 0 | 0 |
Foreign Currency Translation Adjustment | (1,298) | (1,298) |
Net Carrying Amount | $ 118 | $ 1,056 |
Trade and domain names | ||
Finite Lived Intangible Assets [Line Items] | ||
Weighted-Average Amortization Period (in months) | 52 months | 52 months |
Gross Carrying Amount | $ 16,213 | $ 16,213 |
Accumulated Amortization | (13,169) | (12,817) |
Accumulated Impairment | (2,493) | 0 |
Foreign Currency Translation Adjustment | (377) | (358) |
Net Carrying Amount | $ 174 | $ 3,038 |
Goodwill and Intangible Asset_5
Goodwill and Intangible Assets - Estimated Future Amortization Expense Related to Intangible Assets (Details) - USD ($) $ in Thousands | Jun. 30, 2024 | Dec. 31, 2023 |
Goodwill and Intangible Assets Disclosure [Abstract] | ||
Remaining six months of 2024 | $ 2,460 | |
2025 | 4,240 | |
2026 | 3,897 | |
2027 | 1,776 | |
2028 | 407 | |
Thereafter | 68 | |
Net Carrying Amount | $ 12,848 | $ 52,430 |
Convertible Senior Notes - Narr
Convertible Senior Notes - Narrative (Details) - Senior Notes $ / shares in Units, $ in Thousands | 1 Months Ended | |||
Aug. 31, 2020 USD ($) $ / shares | Apr. 30, 2019 USD ($) $ / shares | Jun. 30, 2024 USD ($) $ / shares shares | Dec. 31, 2023 USD ($) | |
Senior Notes due 2026 | ||||
Debt Instrument [Line Items] | ||||
Face value | $ | $ 1,000,000 | $ 244,479 | $ 244,479 | |
Interest rate, stated percentage | 0% | |||
Conversion ratio | 0.0092978 | |||
Conversion price (in dollars per share) | $ / shares | $ 107.55 | |||
Senior Notes due 2026 | Capped Call | ||||
Debt Instrument [Line Items] | ||||
Conversion price (in dollars per share) | $ / shares | $ 156.44 | |||
Net proceeds | $ | $ 103,400 | |||
Debt instrument, convertible (in shares) | shares | 9,297,800 | |||
Senior Notes due 2025 | ||||
Debt Instrument [Line Items] | ||||
Face value | $ | $ 800,000 | $ 358,914 | $ 358,914 | |
Interest rate, stated percentage | 0.125% | |||
Conversion ratio | 0.0193956 | |||
Conversion price (in dollars per share) | $ / shares | $ 51.56 | |||
Senior Notes due 2025 | Capped Call | ||||
Debt Instrument [Line Items] | ||||
Conversion price (in dollars per share) | $ / shares | $ 79.32 | |||
Net proceeds | $ | $ 97,200 | |||
Debt instrument, convertible (in shares) | shares | 6,961,352 |
Convertible Senior Notes - Net
Convertible Senior Notes - Net Carrying Amount (Details) - Senior Notes - USD ($) $ in Thousands | Jun. 30, 2024 | Dec. 31, 2023 | Aug. 31, 2020 | Apr. 30, 2019 |
2026 Notes | ||||
Debt Instrument [Line Items] | ||||
Principal | $ 244,479 | $ 244,479 | $ 1,000,000 | |
Unamortized issuance costs | (1,400) | (1,721) | ||
2026 Notes | Carrying Amount | Fair Value, Measurements, Nonrecurring | ||||
Debt Instrument [Line Items] | ||||
Net carrying amount | 243,079 | 242,758 | ||
2025 Notes | ||||
Debt Instrument [Line Items] | ||||
Principal | 358,914 | 358,914 | $ 800,000 | |
Unamortized issuance costs | (1,076) | (1,835) | ||
2025 Notes | Carrying Amount | Fair Value, Measurements, Nonrecurring | ||||
Debt Instrument [Line Items] | ||||
Net carrying amount | $ 357,838 | $ 357,079 |
Convertible Senior Notes - Inte
Convertible Senior Notes - Interest Expense Recognized (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Debt Instrument [Line Items] | ||||
Amortization of issuance costs | $ 1,081 | $ 1,988 | ||
Senior Notes | 2026 Notes | ||||
Debt Instrument [Line Items] | ||||
Contractual interest expense | $ 0 | $ 0 | 0 | 0 |
Amortization of issuance costs | 160 | 310 | 321 | 635 |
Total interest expense | 160 | 310 | 321 | 635 |
Senior Notes | 2025 Notes | ||||
Debt Instrument [Line Items] | ||||
Contractual interest expense | 111 | 182 | 220 | 398 |
Amortization of issuance costs | 380 | 621 | 760 | 1,353 |
Total interest expense | $ 491 | $ 803 | $ 980 | $ 1,751 |
Commitments and Contingencies (
Commitments and Contingencies (Details) $ in Millions | Jun. 30, 2024 USD ($) |
Commitments and Contingencies Disclosure [Abstract] | |
Loss contingency accrual | $ 7 |
Stockholders' Equity - Share Re
Stockholders' Equity - Share Repurchase (Details) - shares | 1 Months Ended | 12 Months Ended |
Feb. 29, 2024 | Dec. 31, 2023 | |
November 2023 ASRs | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Repurchases of common stock (in shares) | 2,115,952 | |
Stock repurchased and retired during period, shares (in shares) | 13,498,313 | |
ASRs And Open Market Transactions | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Repurchases of common stock (in shares) | 26,505,979 | |
Open Market Transactions | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Stock repurchased and retired during period, shares (in shares) | 3,433,157 | |
February 2023 ASRs | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Stock repurchased and retired during period, shares (in shares) | 9,574,509 |
Stockholders' Equity - Securiti
Stockholders' Equity - Securities Repurchase Program (Details) - USD ($) | 1 Months Ended | 3 Months Ended | 6 Months Ended | |
Aug. 31, 2023 | Jun. 30, 2024 | Jun. 30, 2024 | Jun. 30, 2023 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Cash repurchases | $ 0 | $ 186,368,000 | ||
Securities Repurchase Program | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Stock repurchase program, increase of authorized amount | $ 200,000,000 | |||
Stock repurchase program, authorized amount | $ 2,200,000,000 | |||
Cash repurchases | $ 0 | 0 | ||
Remaining under repurchase program | $ 3,700,000 | $ 3,700,000 |
Stockholders' Equity - Schedule
Stockholders' Equity - Schedule of Share-based Compensation Expense (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items] | ||||
Total share-based compensation expense | $ 18,047 | $ 35,920 | $ 47,336 | $ 69,666 |
Cost of revenues | ||||
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items] | ||||
Total share-based compensation expense | 466 | 560 | 979 | 1,087 |
Research and development | ||||
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items] | ||||
Total share-based compensation expense | 7,123 | 11,968 | 16,332 | 22,882 |
Sales and marketing | ||||
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items] | ||||
Total share-based compensation expense | 1,726 | 2,182 | 3,866 | 4,681 |
General and administrative | ||||
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items] | ||||
Total share-based compensation expense | $ 8,732 | $ 21,210 | $ 26,159 | $ 41,016 |
Stockholders' Equity - Narrativ
Stockholders' Equity - Narrative of Share-based Compensation Expense (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Share-based compensation expense capitalized | $ 1.4 | $ 0.7 | $ 2.7 | $ 1.7 |
RSUs and PSUs | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Unrecognized compensation costs related to restricted stock units | $ 98.9 | $ 98.9 | ||
Weighted-average vesting period | 1 year 7 months 6 days |
Stockholders' Equity - Schedu_2
Stockholders' Equity - Schedule of RSU and PSU Activity (Details) - RSUs and PSUs | 6 Months Ended |
Jun. 30, 2024 $ / shares shares | |
Shares Outstanding | |
Beginning balance (in shares) | shares | 10,065,783 |
Granted (in shares) | shares | 5,541,759 |
Released (in shares) | shares | (3,186,924) |
Forfeited (in shares) | shares | (1,683,820) |
Ending balance (in shares) | shares | 10,736,798 |
Weighted Average Grant Date Fair Value | |
Beginning balance (in dollars per share) | $ / shares | $ 23.63 |
Granted (in dollars per share) | $ / shares | 4.37 |
Released (in dollars per share) | $ / shares | 21.83 |
Forfeited (in dollars per share) | $ / shares | 31.45 |
Ending balance (in dollars per share) | $ / shares | $ 12.99 |
Restructuring and Other Relat_3
Restructuring and Other Related Charges - Reconciliation of Changes in Restructuring Liability Balance (Details) $ in Thousands | 3 Months Ended |
Jun. 30, 2024 USD ($) | |
Restructuring Reserve [Roll Forward] | |
Beginning balance | $ 0 |
Restructuring charges | 6,728 |
Restructuring payments | (3,279) |
Ending balance | $ 3,449 |
Restructuring and Other Relat_4
Restructuring and Other Related Charges - Additional Information (Details) $ in Thousands | 1 Months Ended | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 USD ($) office_building | Jun. 30, 2024 USD ($) | Jun. 30, 2023 USD ($) | Jun. 30, 2024 USD ($) | Jun. 30, 2023 USD ($) | |
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring charges | $ 6,728 | ||||
Number of offices closed | office_building | 2 | ||||
Total impairment expense | 481,531 | $ 0 | $ 481,531 | $ 0 | |
Facility Closing | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Total impairment expense | 2,200 | ||||
Impairment of ROU asset | 1,100 | ||||
Impairment of leasehold improvements | 1,100 | ||||
Minimum | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Estimated additional restructuring charges | $ 3,000 | 3,000 | 3,000 | ||
Maximum | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Estimated additional restructuring charges | $ 4,000 | $ 4,000 | $ 4,000 |
Income Taxes (Details)
Income Taxes (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Income Tax Disclosure [Abstract] | ||||
Provision for income taxes | $ (138,345) | $ (19,681) | $ (147,404) | $ (23,857) |
Establishment of a valuation allowance | $ 141,600 | $ 141,600 |
Subsequent Event (Details)
Subsequent Event (Details) $ in Millions | 1 Months Ended |
Jul. 31, 2024 USD ($) | |
Subsequent Event | |
Subsequent Event [Line Items] | |
Increase in future minimum lease payments | $ 12.3 |