Cover Page
Cover Page - shares shares in Millions | 3 Months Ended | |
Mar. 31, 2024 | Apr. 26, 2024 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Mar. 31, 2024 | |
Document Transition Report | false | |
Entity File Number | 001-38897 | |
Entity Registrant Name | FASTLY, INC. | |
Entity Incorporation, State or Country Code | DE | |
Entity Tax Identification Number | 27-5411834 | |
Entity Address, Address Line One | 475 Brannan Street, Suite 300 | |
Entity Address, City or Town | San Francisco | |
Entity Address, State or Province | CA | |
Entity Address, Postal Zip Code | 94107 | |
City Area Code | 844 | |
Local Phone Number | 432-7859 | |
Title of 12(b) Security | Class A Common Stock, $0.00002 par value | |
Trading Symbol | FSLY | |
Security Exchange Name | NYSE | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 136.6 | |
Entity Central Index Key | 0001517413 | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Year Focus | 2024 | |
Document Fiscal Period Focus | Q1 | |
Amendment Flag | false |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Mar. 31, 2024 | Dec. 31, 2023 |
Current assets: | ||
Cash and cash equivalents | $ 150,809 | $ 107,921 |
Marketable securities, current | 178,677 | 214,799 |
Accounts receivable, net of allowance for credit losses of $7,870 and $7,054 as of March 31, 2024 and December 31, 2023, respectively | 107,517 | 120,498 |
Prepaid expenses and other current assets | 23,207 | 20,455 |
Total current assets | 460,210 | 463,673 |
Property and equipment, net | 177,574 | 176,608 |
Operating lease right-of-use assets, net | 54,420 | 55,212 |
Goodwill | 670,356 | 670,356 |
Intangible assets, net | 57,576 | 62,475 |
Marketable securities, non-current | 1,743 | 6,088 |
Other assets | 84,044 | 90,779 |
Total assets | 1,505,923 | 1,525,191 |
Current liabilities: | ||
Accounts payable | 5,485 | 5,611 |
Accrued expenses | 35,555 | 61,818 |
Finance lease liabilities, current | 11,974 | 15,684 |
Operating lease liabilities, current | 22,580 | 24,042 |
Other current liabilities | 44,633 | 40,539 |
Total current liabilities | 120,227 | 147,694 |
Long-term debt | 343,837 | 343,507 |
Finance lease liabilities, non-current | 440 | 1,602 |
Operating lease liabilities, non-current | 46,857 | 48,484 |
Other long-term liabilities | 2,756 | 4,416 |
Total liabilities | 514,117 | 545,703 |
Commitments and contingencies (Note 9) | ||
Stockholders’ equity: | ||
Common stock | 3 | 3 |
Additional paid-in capital | 1,870,503 | 1,815,245 |
Accumulated other comprehensive loss | (521) | (1,008) |
Accumulated deficit | (878,179) | (834,752) |
Total stockholders’ equity | 991,806 | 979,488 |
Total liabilities and stockholders’ equity | $ 1,505,923 | $ 1,525,191 |
CONDENSED CONSOLIDATED BALANC_2
CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands | Mar. 31, 2024 | Dec. 31, 2023 |
Statement of Financial Position [Abstract] | ||
Allowance for doubtful accounts | $ 7,870 | $ 7,054 |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Income Statement [Abstract] | ||
Revenue | $ 133,520 | $ 117,564 |
Cost of revenue | 60,286 | 57,310 |
Gross profit | 73,234 | 60,254 |
Operating expenses: | ||
Research and development | 38,248 | 37,431 |
Sales and marketing | 49,607 | 44,271 |
General and administrative | 31,639 | 25,827 |
Total operating expenses | 119,494 | 107,529 |
Loss from operations | (46,260) | (47,275) |
Interest income | 3,848 | 4,186 |
Interest expense | (579) | (1,213) |
Other expense, net | (89) | (250) |
Loss before income tax expense | (43,080) | (44,552) |
Income tax expense | 347 | 135 |
Net loss | $ (43,427) | $ (44,687) |
Net loss per share attributable to common stockholders, basic (in US dollar per share) | $ (0.32) | $ (0.36) |
Net loss per share attributable to common stockholders, diluted (in US dollar per share) | $ (0.32) | $ (0.36) |
Weighted-average shares used in computing net loss per share attributable to common stockholders, basic (in shares) | 134,587 | 125,418 |
Weighted-average shares used in computing net loss per share attributable to common stockholders, diluted (in shares) | 134,587 | 125,418 |
CONDENSED CONSOLIDATED STATEM_2
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Statement of Other Comprehensive Income [Abstract] | ||
Net loss | $ (43,427) | $ (44,687) |
Other comprehensive income: | ||
Foreign currency translation adjustment | 0 | 84 |
Gain on investments in available-for-sale-securities | 487 | 3,608 |
Total other comprehensive income | 487 | 3,692 |
Comprehensive loss | $ (42,940) | $ (40,995) |
CONDENSED CONSOLIDATED STATEM_3
CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY - USD ($) shares in Thousands, $ in Thousands | Total | Common Stock | Common Stock Restricted Stock Units | Additional Paid-in Capital | Accumulated Other Comprehensive Loss | Accumulated Deficit |
Beginning balance (in shares) at Dec. 31, 2022 | 124,336 | |||||
Beginning balance at Dec. 31, 2022 | $ 955,158 | $ 2 | $ 1,666,106 | $ (9,286) | $ (701,664) | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Exercise of vested stock options (in shares) | 44 | |||||
Exercise of vested stock options | 336 | 336 | ||||
Vesting of restricted stock units (in shares) | 1,211 | |||||
Shares issued under bonus program (in shares) | 1,193 | |||||
Shares issued under bonus program | 16,599 | 16,599 | ||||
Stock-based compensation | 27,457 | 27,457 | ||||
Net loss | (44,687) | (44,687) | ||||
Other comprehensive income | 3,692 | 3,692 | ||||
Ending balance (in shares) at Mar. 31, 2023 | 126,784 | |||||
Ending balance at Mar. 31, 2023 | $ 958,555 | $ 2 | 1,710,498 | (5,594) | (746,351) | |
Beginning balance (in shares) at Dec. 31, 2023 | 133,000 | 132,992 | ||||
Beginning balance at Dec. 31, 2023 | $ 979,488 | $ 3 | 1,815,245 | (1,008) | (834,752) | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Exercise of vested stock options (in shares) | 71 | 71 | ||||
Exercise of vested stock options | $ 111 | 111 | ||||
Vesting of restricted stock units (in shares) | 1,532 | |||||
Shares issued under bonus program (in shares) | 1,889 | |||||
Shares issued under bonus program | 26,849 | 26,849 | ||||
Stock-based compensation | 28,298 | 28,298 | ||||
Net loss | (43,427) | (43,427) | ||||
Other comprehensive income | $ 487 | 487 | ||||
Ending balance (in shares) at Mar. 31, 2024 | 136,500 | 136,484 | ||||
Ending balance at Mar. 31, 2024 | $ 991,806 | $ 3 | $ 1,870,503 | $ (521) | $ (878,179) |
CONDENSED CONSOLIDATED STATEM_4
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Cash flows from operating activities: | ||
Net loss | $ (43,427) | $ (44,687) |
Adjustments to reconcile net loss to net cash provided by (used in) operating activities: | ||
Depreciation expense | 13,277 | 12,040 |
Amortization of intangible assets | 4,899 | 5,175 |
Non-cash lease expense | 5,556 | 6,115 |
Amortization of debt discount and issuance costs | 354 | 716 |
Amortization of deferred contract costs | 4,573 | 3,425 |
Stock-based compensation | 31,821 | 28,151 |
Deferred income taxes | 228 | 0 |
Provision for credit losses | 953 | 533 |
Loss on disposals of property and equipment | 399 | 251 |
Amortization of premiums (discounts) on investments | (1,158) | 449 |
Other adjustments | (259) | (243) |
Changes in operating assets and liabilities: | ||
Accounts receivable | 12,028 | 3,701 |
Prepaid expenses and other current assets | (2,700) | (634) |
Other assets | (1,814) | (7,212) |
Accounts payable | 101 | (175) |
Accrued expenses | (8,760) | (6,827) |
Operating lease liabilities | (7,606) | (5,750) |
Other liabilities | 2,667 | (3,889) |
Net cash provided by (used in) operating activities | 11,132 | (8,861) |
Cash flows from investing activities: | ||
Purchases of marketable securities | (56,948) | 0 |
Maturities of marketable securities | 99,080 | 227,211 |
Purchases of property and equipment | (1,603) | (3,494) |
Proceeds from sale of property and equipment | 0 | 22 |
Capitalized internal-use software | (6,845) | (4,209) |
Net cash provided by investing activities | 33,684 | 219,530 |
Cash flows from financing activities: | ||
Repayments of finance lease liabilities | (4,872) | (8,645) |
Proceeds from exercise of vested stock options | 111 | 336 |
Proceeds from employee stock purchase plan | 2,881 | 2,596 |
Net cash used in financing activities | (1,880) | (5,713) |
Effects of exchange rate changes on cash, cash equivalents, and restricted cash | (48) | 116 |
Net increase in cash, cash equivalents, and restricted cash | 42,888 | 205,072 |
Cash, cash equivalents, and restricted cash at beginning of period | 108,071 | 143,541 |
Cash, cash equivalents, and restricted cash at end of period | 150,959 | 348,613 |
Supplemental disclosure of cash flow information: | ||
Cash paid for interest | 225 | 497 |
Cash paid for income taxes, net of refunds received | 292 | 182 |
Cash paid for finance lease interest | 162 | 633 |
Noncash investing and financing activities: | ||
Net increase (decrease) in property and equipment included in accounts payable and accrued expenses | (459) | 1,368 |
Stock-based compensation capitalized to internal-use software | 2,942 | 1,286 |
Assets obtained in exchange for operating lease obligations | 3,857 | 1,324 |
Net non-cash change in operating lease assets and liabilities associated with modifications and terminations | 912 | 3,027 |
Deployments of prepaid capital equipment | 3,724 | 1,413 |
Reconciliation of cash, cash equivalents, and restricted cash as shown in the statements of cash flows: | ||
Cash and cash equivalents | 150,809 | 348,463 |
Restricted cash, current | 150 | 150 |
Total cash, cash equivalents, and restricted cash | $ 150,959 | $ 348,613 |
Nature of Business
Nature of Business | 3 Months Ended |
Mar. 31, 2024 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Nature of Business | Nature of Business Fastly, Inc. has built an edge cloud platform that can process, serve, and secure its customers' applications as close to their end users as possible. The Company was incorporated in Delaware in 2011 and is headquartered in San Francisco, California. As used herein, “Fastly,” “the Company,” “its” and similar terms include Fastly, Inc. and its subsidiaries, unless the context indicates otherwise. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 3 Months Ended |
Mar. 31, 2024 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | Summary of Significant Accounting Policies Basis of Presentation and Consolidation The accompanying condensed consolidated financial statements and footnotes have been prepared in conformity with U.S. generally accepted accounting principles (“GAAP”), consistent in all material respects with those applied in the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2023, filed with the Securities and Exchange Commission (“SEC”) on February 21, 2024. The Company’s condensed consolidated financial statements include its accounts and its wholly owned subsidiaries. All significant intercompany balances and transactions have been eliminated in consolidation. The Company’s condensed consolidated financial statements are unaudited but include all adjustments of a normal recurring nature necessary for a fair presentation of its quarterly results. The Company’s condensed consolidated financial statements should be read in conjunction with the audited consolidated financial statements and related notes in the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2023. Use of Estimates The preparation of condensed consolidated financial statements in conformity with GAAP requires management to make estimates, judgments, and assumptions that affect the reported amounts of assets, liabilities, revenue, costs and expenses, and related disclosures. Actual results and outcomes could differ significantly from the Company’s estimates, judgments, and assumptions. Significant estimates, judgments, and assumptions used in these financial statements include, but are not limited to, those related to revenue, accounts receivable and related reserves, internal-use software development costs, the incremental borrowing rate related to the Company’s lease liabilities, fair value of assets acquired and liabilities assumed during business combinations, useful lives of acquired intangible assets and property and equipment, fair value of the Company’s long-lived assets as well as goodwill, income tax reserves, and accounting for stock-based compensation. Estimates are periodically reviewed in light of changes in circumstances, facts, and experience. The effects of material revisions in estimates are reflected in the consolidated financial statements in the period of change and prospectively from the date of the change in estimate. Significant Accounting Policies There have been no material changes to the Company’s significant accounting policies as compared to those described in “Note 2 – Summary of Significant Accounting Policies” of the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2023. Recently Adopted and Issued Accounting Pronouncements In November 2023, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2023-07 “Segment Reporting - Improvements to Reportable Segment Disclosures,” which updates reportable segment disclosure requirements, primarily through enhanced disclosures about significant segment expenses and information used to assess segment performance. The guidance is effective for the Company's annual periods beginning in 2024 and interim periods beginning in the first quarter of fiscal year 2025. The Company is currently evaluating the impact of the new guidance. In December 2023, the FASB issued ASU 2023-09 “Income Taxes (Topic 740): Improvements to Income Tax Disclosures,” which expands disclosures in an entity’s income tax rate reconciliation table and regarding cash taxes paid both in the U.S. and foreign jurisdictions. The guidance is effective for the Company's annual periods beginning in 2025. The Company is currently evaluating the impact of the new guidance and intends to adopt the guidance prospectively when it becomes effective in 2025. Concentrations of Credit Risk Financial instruments that potentially subject the Company to significant concentrations of credit risk consist primarily of cash, cash equivalents, marketable securities and accounts receivable. The Company’s cash, cash equivalents, and marketable securities primarily consisted of bank deposits, money market funds, investment-grade commercial paper, corporate notes and bonds, U.S. treasury securities, municipal securities, foreign government and supranational securities and asset-backed securities held at major financial institutions that the Company believes to be of high credit standing. The primary focus of its investment strategy is to preserve capital and meet liquidity requirements. The Company’s investment policy limits the amount of credit exposure with any one financial institution or commercial issuer. The Company maintains deposits in federally insured financial institutions in excess of federally insured limits. The Company is exposed to credit risk in the event of default by the financial institutions holding its cash and cash equivalents to the extent recorded in the balance sheets. While the Company has not experienced any losses in such accounts and the Company has historically maintained its cash in multiple financial institutions, the failure of Silicon Valley Bank (“SVB”) in March 2023, at which the Company held cash and cash equivalents in multiple accounts, exposed the Company to limited credit risk prior to the completion by the Federal Deposit Insurance Corporation (“FDIC”) of the resolution of SVB in a manner that fully protected all depositors. Concentrations of credit risk with respect to accounts receivable are primarily limited to certain customers to which the Company makes substantial sales. The Company’s customer base consists of a large number of geographically dispersed customers diversified across several industries. No customer accounted for more than 10% of revenue for both the three months ended March 31, 2024 and 2023. One customer accounted for more than 10% of the total accounts receivable balance as of both March 31, 2024 and December 31, 2023. Affiliated customers that are business units of a single company in the streaming entertainment space generated an aggregate of 12% and 10% of the Company’s revenue for the three months ended March 31, 2024 and 2023, respectively. The same affiliated customers accounted for an aggrega |
Revenue
Revenue | 3 Months Ended |
Mar. 31, 2024 | |
Revenue from Contract with Customer [Abstract] | |
Revenue | Revenue Revenue by geography is based on the billing address of the customer. Aside from the United States, no other single country accounted for more than 10% of revenue for both the three months ended March 31, 2024 and March 31, 2023. The following table presents the Company’s net revenue by geographic region: Three months ended March 31, 2024 2023 (in thousands) United States $ 98,498 $ 85,364 Asia Pacific 19,098 16,431 Europe 11,246 10,515 All other 4,678 5,254 Total revenue $ 133,520 $ 117,564 The majority of the Company’s revenue is derived from enterprise customers, which are defined as customers with annualized current quarter revenue in excess of $100,000. This is calculated by taking the sum of revenue for each customer within the quarter and multiplying it by four. The following table presents the Company's net revenue for enterprise and non-enterprise customers: Three months ended March 31, 2024 2023 (in thousands) Enterprise customers $ 122,060 $ 107,373 Non-enterprise customers 11,460 10,191 Total revenue $ 133,520 $ 117,564 The Company reports its revenue by three product lines: Network Services, Security and Other. Network Services include solutions designed to improve performance of websites, apps, application programming interfaces (“APIs”) and digital media. Security includes products designed to protect websites, apps, APIs and users. Other includes Compute solutions that allow developers to build and deploy modern web applications on Fastly's edge cloud platform, and Observability solutions that provide real-time logs, data and metrics streamed from Fastly's edge platform for actionable insights. The following table presents the Company’s revenue by product line: Three months ended March 31, 2024 2023 (in thousands) Network Services $ 105,996 $ 94,307 Security 24,600 21,208 Other 2,924 2,049 Total revenue $ 133,520 $ 117,564 Contract balances The timing of revenue recognition may differ from the timing of invoicing to customers. The Company has an unconditional right to consideration when it invoices its customers and records a receivable. The Company records a contract asset, or unbilled receivable, when revenue is recognized prior to invoicing. The Company records a contract liability, or deferred revenue, when a contract is billed in advance of revenue being recognized. Deferred revenue pertains to amounts billed to customers for which revenue has not been recognized, which primarily consists of the unearned portions of billings for the Company’s security subscription services and the unearned portion of edge cloud platform usage. Amounts that have been invoiced for annual subscriptions, but not collected, are recorded in accounts receivable and in unearned revenue or in revenue depending on whether services have been delivered to the customer. The Company’s payment terms and conditions vary by contract type, and generally range from 30 to 90 days. The following table presents the Company’s contract assets and contract liabilities as of March 31, 2024 and as of December 31, 2023: As of March 31, 2024 As of December 31, 2023 (in thousands) Contract assets $ — $ 621 Contract liabilities $ 41,136 $ 38,150 The following table presents revenue recognized during the three months ended March 31, 2024 and 2023 from amounts included in the contract liability at the beginning of the period: Three months ended March 31, 2024 2023 (in thousands) Revenue recognized in the period from amounts included in contract liability at the beginning of the period $ 12,760 $ 12,221 Remaining performance obligations As of March 31, 2024, the aggregate amount of the transaction price in our contracts allocated to remaining performance obligations that are unsatisfied or partially unsatisfied was $227.0 million. This amount includes future committed revenue for periods within current contracts with customers, as well as deferred revenue arising from consideration invoiced for which the related performance obligations have not been satisfied. The Company has elected to not provide certain information about its remaining performance obligations for service contracts with an original contract duration of one year or less. As of March 31, 2024, the Company expects to recognize approximately 78% of its remaining performance obligations over the next 12 months. The Company’s typical contractual term with its customers is one year, although terms may vary by contract. Costs to obtain a contract As of March 31, 2024 and December 31, 2023, the Company's costs to obtain contracts were as follows: As of March 31, 2024 As of December 31, 2023 (in thousands) Deferred contract costs, net $ 59,011 $ 61,981 |
Investments and Fair Value Meas
Investments and Fair Value Measurements | 3 Months Ended |
Mar. 31, 2024 | |
Fair Value Disclosures [Abstract] | |
Investments and Fair Value Measurements | Investments and Fair Value Measurements The Company's total cash, cash equivalents and marketable securities consisted of the following: As of March 31, 2024 As of December 31, 2023 (in thousands) Cash and cash equivalents: Cash $ 19,621 $ 21,269 U.S. Treasury securities 1,800 52,830 Money market funds 124,417 21,166 Commercial paper 4,971 12,656 Total cash and cash equivalents (1) $ 150,809 $ 107,921 Marketable securities: U.S. Treasury securities $ 21,799 $ 73,448 Corporate notes and bonds 83,789 105,566 Commercial paper 63,111 25,934 Agency bonds 9,978 9,851 Total marketable securities, current (2) $ 178,677 $ 214,799 Corporate notes and bonds 1,743 5,999 Asset-backed securities — 89 Total marketable securities, non-current (3) $ 1,743 $ 6,088 Total marketable securities $ 180,420 $ 220,887 Total cash and cash equivalents and marketable securities $ 331,229 $ 328,808 (1) The Company’s cash equivalents include investments with an original maturity date of three months or less. (2) The Company classifies its marketable securities as current, where it intends to hold the securities for less than 12 months. (3) The Company classifies its marketable securities are non-current, where it intends to hold the securities for longer than 12 months. The following table summarizes adjusted cost, gross unrealized gains and losses, and fair value related to cash equivalents and available-for-sale securities on the accompanying condensed consolidated balance sheets as of March 31, 2024 and December 31, 2023: As of March 31, 2024 Amortized Gross Gross Fair (in thousands) Cash equivalents: Money market funds $ 124,417 $ — $ — $ 124,417 U.S. Treasury securities 1,800 — — 1,800 Commercial paper 4,975 — (4) 4,971 Marketable securities: U.S. Treasury securities 21,806 — (7) 21,799 Corporate notes and bonds 85,880 30 (378) 85,532 Commercial paper 63,174 — (63) 63,111 Agency bonds 9,984 — (6) 9,978 Total $ 312,036 $ 30 $ (458) $ 311,608 As of December 31, 2023 Amortized Gross Gross Fair (in thousands) Cash equivalents: U.S. Treasury securities $ 52,824 $ 6 $ — $ 52,830 Commercial paper 12,663 — (7) 12,656 Marketable securities: U.S. Treasury securities 73,444 8 (4) 73,448 Corporate notes and bonds 112,487 9 (931) 111,565 Commercial paper 25,946 — (12) 25,934 Asset-backed securities 89 — — 89 Agency bonds 9,854 — (3) 9,851 Total $ 287,307 $ 23 $ (957) $ 286,373 There were no material realized gains or losses from sales of marketable securities that were reclassified out of accumulated other comprehensive loss into other income during the three months ended March 31, 2024 and 2023. Investments are reviewed periodically to identify possible other-than-temporary impairments. For the three months ended March 31, 2024 and 2023, the Company did not record any impairment charges for its marketable debt securities in its condensed consolidated statements of operations. No impairment loss has been recorded on the securities as the Company does not intend to sell any impaired securities, nor is it more likely than not that the Company would be required to sell impaired securities before recovery of amortized cost basis. Furthermore, the Company has determined that the decline in fair value of the investment is not due to credit related factors. Fair Value of Financial Instruments For certain of the Company's financial instruments, including cash held in banks, accounts receivable, and accounts payable, the carrying amounts approximate fair value due to their short maturities, and are therefore excluded from the fair value tables below. Fair value is defined as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. There is a three-tier fair value hierarchy, which prioritizes the inputs used in measuring fair value as follows: Level 1—Observable inputs such as quoted prices in active markets for identical assets or liabilities; Level 2—Inputs other than Level 1 that are observable, either directly or indirectly, such as quoted prices for similar assets or liabilities, quoted prices in markets that are not active, or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities; and Level 3—Unobservable inputs that are supported by little or no market activity, which require management judgment or estimation. The Company measures its cash equivalents, marketable securities, and restricted cash at fair value. The Company classifies its cash equivalents, marketable securities and restricted cash within Level 1 or Level 2 because the Company values these investments using quoted market prices or alternative pricing sources and models utilizing market observable inputs. The Company classifies its investments, which are comprised of corporate notes and bonds, U.S. treasury securities, foreign government and supranational securities and asset-backed securities within Level 2 of the fair value hierarchy because the fair value of these securities is priced by using inputs based on non-binding market consensus prices that are primarily corroborated by observable market data or quoted market prices for similar instruments. Financial assets and liabilities measured and recorded at fair value on a recurring basis consisted of the following types of instruments: As of March 31, 2024 Level 1 Level 2 Level 3 Total (in thousands) Cash equivalents: Money market funds $ 124,417 $ — $ — $ 124,417 U.S. Treasury securities — 1,800 — 1,800 Commercial paper — 4,971 — 4,971 Total cash equivalents 124,417 6,771 — 131,188 Marketable securities: U.S. Treasury securities — 21,799 — 21,799 Corporate notes and bonds — 85,532 — 85,532 Commercial paper — 63,111 — 63,111 Agency bonds — 9,978 — 9,978 Total marketable securities — 180,420 — 180,420 Restricted cash: Restricted cash, current 150 — — 150 Total restricted cash 150 — — 150 Total financial assets $ 124,567 $ 187,191 $ — $ 311,758 As of December 31, 2023 Level 1 Level 2 Level 3 Total (in thousands) Cash equivalents: Money market funds $ 21,166 $ — $ — $ 21,166 U.S. Treasury securities — 52,830 — 52,830 Commercial paper — 12,656 — 12,656 Total cash equivalents 21,166 65,486 — 86,652 Marketable securities: U.S. Treasury securities — 73,448 — 73,448 Corporate notes and bonds — 111,565 — 111,565 Commercial paper — 25,934 — 25,934 Asset-backed securities — 89 — 89 Agency bonds — 9,851 — 9,851 Total marketable securities — 220,887 — 220,887 Restricted cash: Restricted cash, current 150 — — 150 Total restricted cash 150 — — 150 Total financial assets $ 21,316 $ 286,373 $ — $ 307,689 Restricted cash was $0.2 million as of both March 31, 2024 and December 31, 2023. The restricted cash balance consisted of letters of credit related to lease arrangements that were collateralized by the Company’s cash. The amounts as of March 31, 2024 and December 31, 2023, were both classified as current on the Company’s balance sheets. There were no transfers of assets and liabilities measured at fair value between Level 1 and Level 2, or between Level 2 and Level 3, during the three months ended March 31, 2024 and 2023. |
Balance Sheet Information
Balance Sheet Information | 3 Months Ended |
Mar. 31, 2024 | |
Balance Sheet Related Disclosures [Abstract] | |
Balance Sheet Information | Balance Sheet Information Property and Equipment, Net Property and equipment, net consisted of the following: As of March 31, 2024 As of December 31, 2023 (in thousands) Computer and networking equipment $ 228,835 $ 224,313 Leasehold improvements 8,605 8,605 Furniture and fixtures 2,150 2,142 Office equipment 1,228 1,228 Internal-use software 100,839 97,623 Property and equipment, gross $ 341,657 $ 333,911 Accumulated depreciation and amortization (164,083) (157,303) Property and equipment, net $ 177,574 $ 176,608 Depreciation on property and equipment for the three months ended March 31, 2024 and 2023 was approximately $13.3 million and $12.0 million, respectively. Included in these amounts was amortization expense for capitalized internal-use software costs of approximately $3.9 million and $2.9 million for the three months ended March 31, 2024 and 2023, respectively. As of March 31, 2024 and December 31, 2023, the unamortized balance of capitalized internal-use software costs on the Company’s condensed consolidated balance sheets was approximately $68.2 million and $62.6 million, respectively. The Company leases certain networking equipment from various third parties through equipment finance leases. The Company’s networking equipment assets as of March 31, 2024 and December 31, 2023, included a total of $74.6 million and $74.7 million acquired under finance lease agreements, respectively. These leases are capitalized in property and equipment, and the related amortization of assets under finance leases is included in depreciation and amortization expense. The accumulated depreciation of the associated networking equipment assets under finance leases totaled $43.5 million and $40.1 million as of March 31, 2024 and December 31, 2023, respectively. Other Assets Other assets consisted of the following: As of March 31, 2024 As of December 31, 2023 (in thousands) Deferred contract costs, net $ 59,011 $ 61,981 Advance payment for purchase of property and equipment 20,485 24,509 Other assets 4,548 4,289 Total other assets $ 84,044 $ 90,779 Accrued Expenses Accrued expenses consisted of the following: As of March 31, 2024 As of December 31, 2023 (in thousands) Accrued compensation and related benefits $ 13,046 $ 14,918 Accrued bonus 2,930 24,614 Accrued colocation and bandwidth costs 10,771 14,362 Other tax liabilities 4,071 4,344 Other accrued expenses 4,737 3,580 Total accrued expenses $ 35,555 $ 61,818 Other Current Liabilities Other current liabilities consisted of the following: As of March 31, 2024 As of December 31, 2023 (in thousands) Deferred revenue $ 38,240 $ 33,824 Accrued computer and networking equipment 1,460 1,673 Holdback payable 3,771 3,771 Other current liabilities 1,162 1,271 Total other current liabilities $ 44,633 $ 40,539 Accumulated Other Comprehensive Loss For the three months ended March 31, 2024 and 2023, components of accumulated other comprehensive loss, net of taxes, were as follows (in thousands): Foreign Currency Translation Available-for-sale investments Accumulated Other Comprehensive Income (Loss) Balance, December 31, 2023 $ (12) $ (996) $ (1,008) Other comprehensive income — 487 487 Balance, March 31, 2024 $ (12) $ (509) $ (521) Foreign Currency Translation Available-for-sale investments Accumulated Other Comprehensive Income (Loss) Balance, December 31, 2022 $ (577) $ (8,709) $ (9,286) Other comprehensive income 84 3,608 3,692 Balance, March 31, 2023 $ (493) $ (5,101) $ (5,594) There were no material reclassifications out of accumulated other comprehensive loss during the three months ended March 31, 2024 and 2023. Additionally, there was no material tax impact on the amounts presented. |
Leases
Leases | 3 Months Ended |
Mar. 31, 2024 | |
Leases [Abstract] | |
Leases | Leases The Company has operating leases for corporate offices and data centers (“colocation” leases), and finance leases for networking equipment. The Company’s operating leases have remaining lease terms ranging from less than 1 year to 6 years, some of which include options to extend the leases. The Company’s finance leases have remaining lease terms up to 1 year. The Company also subleases a portion of its corporate office spaces. The Company’s subleases have remaining lease terms ranging from less than 1 year to 6 years. The Company’s sublease income was $0.4 million and $0.3 million for the three months ended March 31, 2024 and 2023, respectively. The components of lease cost were as follows: Three months ended March 31, 2024 2023 (in thousands) Operating lease costs: Operating lease cost $ 6,606 $ 7,201 Variable lease cost 4,247 3,576 Total operating lease costs $ 10,853 $ 10,777 Finance lease costs: Amortization of assets under finance lease $ 3,595 $ 3,623 Interest 162 439 Total finance lease costs $ 3,757 $ 4,062 The short-term lease costs were not material for either of the three months ended March 31, 2024 and 2023. The Company did not recognize any material impairment on its operating lease right-of-use assets for either of the three months ended March 31, 2024 and 2023. As of March 31, 2024 As of December 31, 2023 Weighted Average Remaining Lease Term (in years): Operating leases 3.35 3.48 Finance leases 0.82 1.00 Weighted Average Discount Rate: Operating leases 6.24 % 6.03 % Finance leases 4.67 % 4.67 % Future minimum lease payments under non-cancellable leases as of March 31, 2024 were as follows: Operating Leases Finance Leases (in thousands) Remaining 2024 $ 20,820 $ 11,029 2025 22,187 1,617 2026 19,969 — 2027 11,286 — 2028 2,996 — Thereafter 1,836 — Total future minimum lease payments $ 79,094 $ 12,646 Less: imputed interest (7,686) (232) Total liability $ 71,408 $ 12,414 As of March 31, 2024, the Company has undiscounted commitments of $2.0 million for operating leases that have not yet commenced, and therefore are not included in the right-of-use asset or operating lease liability. These operating leases will commence in the second quarter of 2024 with lease terms of 3 years. |
Leases | Leases The Company has operating leases for corporate offices and data centers (“colocation” leases), and finance leases for networking equipment. The Company’s operating leases have remaining lease terms ranging from less than 1 year to 6 years, some of which include options to extend the leases. The Company’s finance leases have remaining lease terms up to 1 year. The Company also subleases a portion of its corporate office spaces. The Company’s subleases have remaining lease terms ranging from less than 1 year to 6 years. The Company’s sublease income was $0.4 million and $0.3 million for the three months ended March 31, 2024 and 2023, respectively. The components of lease cost were as follows: Three months ended March 31, 2024 2023 (in thousands) Operating lease costs: Operating lease cost $ 6,606 $ 7,201 Variable lease cost 4,247 3,576 Total operating lease costs $ 10,853 $ 10,777 Finance lease costs: Amortization of assets under finance lease $ 3,595 $ 3,623 Interest 162 439 Total finance lease costs $ 3,757 $ 4,062 The short-term lease costs were not material for either of the three months ended March 31, 2024 and 2023. The Company did not recognize any material impairment on its operating lease right-of-use assets for either of the three months ended March 31, 2024 and 2023. As of March 31, 2024 As of December 31, 2023 Weighted Average Remaining Lease Term (in years): Operating leases 3.35 3.48 Finance leases 0.82 1.00 Weighted Average Discount Rate: Operating leases 6.24 % 6.03 % Finance leases 4.67 % 4.67 % Future minimum lease payments under non-cancellable leases as of March 31, 2024 were as follows: Operating Leases Finance Leases (in thousands) Remaining 2024 $ 20,820 $ 11,029 2025 22,187 1,617 2026 19,969 — 2027 11,286 — 2028 2,996 — Thereafter 1,836 — Total future minimum lease payments $ 79,094 $ 12,646 Less: imputed interest (7,686) (232) Total liability $ 71,408 $ 12,414 As of March 31, 2024, the Company has undiscounted commitments of $2.0 million for operating leases that have not yet commenced, and therefore are not included in the right-of-use asset or operating lease liability. These operating leases will commence in the second quarter of 2024 with lease terms of 3 years. |
Goodwill and Intangible Assets
Goodwill and Intangible Assets | 3 Months Ended |
Mar. 31, 2024 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Intangible Assets | Goodwill and Intangible Assets Goodwill As of each of March 31, 2024 and December 31, 2023, the Company’s goodwill was $670.4 million. The Company did not record an impairment charge on goodwill during each of the three months ended March 31, 2024 and 2023. As of March 31, 2024 and December 31, 2023, the Company’s intangible assets consisted of the following: As of March 31, 2024 As of December 31, 2023 Gross carrying value Accumulated amortization Net carrying value Gross carrying value Accumulated amortization Net carrying value (in thousands) Intangible assets: Customer relationships $ 69,860 $ (30,696) $ 39,164 $ 69,860 $ (28,473) $ 41,387 Developed technology 50,130 (34,939) 15,191 50,130 (32,424) 17,706 Trade names 3,910 (3,580) 330 3,910 (3,542) 368 Internet protocol addresses 4,984 (2,093) 2,891 4,984 (1,970) 3,014 Total intangible assets $ 128,884 $ (71,308) $ 57,576 $ 128,884 $ (66,409) $ 62,475 The Company’s customer relationships, developed technology, trade names and internet protocol addresses represent intangible assets subject to amortization. Amortization expense was $4.9 million and $5.2 million for the three months ended March 31, 2024 and 2023, respectively. The Company did not purchase any intangible assets during both the three months ended March 31, 2024 and 2023. The Company did not record any impairment charges on its intangible assets during both the three months ended March 31, 2024 and 2023. The expected amortization expense of intangible assets subject to amortization as of March 31, 2024 is as follows: As of March 31, 2024 (in thousands) Remainder of 2024 $ 14,699 2025 16,976 2026 9,193 2027 9,051 2028 6,892 Thereafter 765 Total $ 57,576 |
Debt Instruments
Debt Instruments | 3 Months Ended |
Mar. 31, 2024 | |
Debt Disclosure [Abstract] | |
Debt Instruments | Debt Instruments Senior Secured Credit Facilities Agreement On February 16, 2021, the Company entered into a Senior Secured Credit Facilities Agreement (“Credit Agreement”) with the lenders from time to time party thereto (the “Lenders”) and Silicon Valley Bank, as a lender and as administrative agent and collateral agent for the Lenders, for an aggregate commitment amount of $100.0 million with a maturity date of February 16, 2024. The Company recorded $0.6 million of debt issuance costs associated with the Credit Agreement in other assets on the Company’s condensed consolidated balance sheet. The Credit Agreement originally bore interest at a rate per annum equal to the sum of LIBOR for the applicable interest period plus 1.75% to 2.00%, depending on the average daily outstanding balance of all loans and letters of credit under the Credit Agreement. On June 28, 2023, the Company entered into the First Amendment to Credit Agreement with the Lenders and First-Citizens Bank & Trust Company (successor by purchase to the Federal Deposit Insurance Corporation as Receiver for Silicon Valley Bridge Bank, N.A. (as successor to Silicon Valley Bank)), as a lender and as administrative agent and collateral agent for the Lenders, which, among other things, amended the interest rate provisions of the Credit Agreement to replace LIBOR with the Secured Overnight Finance Rate (“SOFR”) as the interest rate benchmark. On February 16, 2024, the Company entered into the Second Amendment to Credit Agreement with the Lenders and Silicon Valley Bank, a division of First-Citizens Bank & Trust Company, as a lender and as administrative agent and collateral agent for the Lenders, which, among other things, extended the maturity date of the loans under the Credit Agreement to June 14, 2024. On April 30, 2024, the Company entered into the Third Amendment to Credit Agreement with the Lenders and Silicon Valley Bank, a division of First-Citizens Bank & Trust Company, as a lender and as administrative agent and collateral agent for the Lenders, which, among other things, extended the maturity date of the loans under the Credit Agreement to April 30, 2027 and decreased the commitment amount from $100.0 million to $60.0 million, including a $10.0 million sublimit for the issuance of letters of credit, and a swingline subfacility of up to $20.0 million. As amended, the revolving loans bear interest, at the Company’s election, at an annual rate based on SOFR or a base rate. Loans based on SOFR bear interest at a rate per annum equal to SOFR, plus an adjustment of 0.10%, plus 1.75% to 2.00%, depending on the average daily outstanding balance of all loans and letters of credit under the Credit Agreement. Loans based on the base rate bear interest at a rate per annum equal to the base rate plus 0.75% to 1.00%, depending on the average daily outstanding balance of all loans and letters of credit under the Credit Agreement. Interest payments on outstanding borrowings are due on the last day of each interest period. The Credit Agreement has a commitment fee on the unused portion of the borrowing commitment, which is payable on the last day of each calendar quarter at a rate per annum of 0.20% to 0.25% depending on the average daily outstanding balance of all loans and letters of credit under the Credit Agreement. In addition, the Company’s Credit Agreement contains a financial covenant that requires the Company to maintain a consolidated adjusted quick ratio of at least 1:25 to 1:00 tested on a quarterly basis as well as a springing revenue growth covenant for certain periods if the Company’s consolidated adjusted quick ratio falls below 1.75 to 1:00 on the last day of any fiscal quarter. The Credit Agreement requires the Company to comply with various affirmative and negative covenants, and contains customary events of default. As of March 31, 2024, the Company was in compliance with all of the Credit Agreement’s covenants. During the three months ended March 31, 2024 and 2023, no amounts were drawn down on the Credit Agreement. As of March 31, 2024 and December 31, 2023, no amounts were outstanding under the Credit Agreement. Convertible Senior Notes On March 5, 2021, the Company issued approximately $948.8 million aggregate principal amount of 0% convertible senior notes due 2026 (the “Notes”), including the exercise in full by the initial purchasers of their option to purchase up to an additional approximately $123.8 million principal amount of the Notes. The Notes were issued in a private placement to qualified institutional buyers pursuant to Rule 144A under the Securities Act. The Notes will mature on March 15, 2026, unless earlier converted, redeemed or repurchased. The net proceeds from the issuance of the Notes were approximately $930.0 million after deducting the initial purchasers’ discounts and transaction costs. The Company may not redeem the Notes prior to March 20, 2024. On or after March 20, 2024, the Company may redeem for cash, all or any portion of the Notes, at the Company’s option, at a redemption price equal to 100% of the principal amount of the Notes to be redeemed, plus accrued and unpaid special interest, if any, to, but excluding, the redemption date, if the last reported sale price of the Company’s Class A common stock (“common stock”) has been at least 130% of the conversion price for the Notes then in effect for at least 20 trading days (whether or not consecutive) during any 30 consecutive trading day period (including the last trading day of such period) ending on, and including, the trading day immediately preceding the date on which the Company provides notice of redemption. No sinking fund is provided for the Notes. Holders of the Notes may convert their notes at their option at any time prior to the close of business on the business day immediately preceding December 15, 2025, only under the following circumstances: (i) during any calendar quarter commencing after the calendar quarter ending on June 30, 2021 (and only during such calendar quarter), if the last reported sale price of the Company’s common stock for at least 20 trading days (whether or not consecutive) during a period of 30 consecutive trading days ending on, and including, the last trading day of the immediately preceding calendar quarter is greater than or equal to 130% of the conversion price for the Notes on each applicable trading day; (ii) during the five business day period after any ten consecutive trading day period (the “Measurement Period”) in which the trading price, as defined in the indenture agreement governing the Note filed with the Company’s Current Report on Form 8-K filed with the SEC on March 5, 2021, per $1,000 principal amount of notes for each trading day of the Measurement Period was less than 98% of the product of the last reported sale price of the Company’s common stock and the conversion rate on each such trading day; (iii) if the Company calls such Notes for redemption, at any time prior to the close of business on the scheduled trading day immediately preceding the applicable redemption date, but only with respect to the Notes called (or deemed called) for redemption; or (iv) upon the occurrence of specified corporate events. On or after December 15, 2025 until the close of business on the second scheduled trading day immediately preceding the maturity date, holders may convert all or any portion of their notes at any time, regardless of the foregoing circumstances. Upon conversion, the Company may satisfy its conversion obligation by paying or delivering, as the case may be, cash, shares of its common stock or a combination of cash and shares of its common stock, at the Company’s election. The initial conversion rate is 9.7272 shares of common stock per $1,000 principal amount of Notes, equivalent to an initial conversion price of approximately $102.80 per share of common stock. The conversion rate is subject to adjustment as described in the indenture governing the Notes but will not be adjusted for any accrued and unpaid special interest. In addition, following certain corporate events that occur prior to the maturity date of the Notes or if the Company delivers a notice of redemption in respect of the Notes, the Company will, in certain circumstances, increase the conversion rate of the Notes for a holder who elects to convert its Notes, in connection with such a corporate event or convert its Notes called (or deemed called) for redemption during the related redemption period, as the case may be. The indenture includes customary covenants and sets forth certain events of default after which the Notes may be declared immediately due and payable and sets forth certain types of bankruptcy or insolvency events of default involving the Company after which the Notes become automatically due and payable. If the Company undergoes a fundamental change, as defined in the indenture agreement governing the Notes, then subject to certain conditions and except as described in the indenture governing the Notes, holders may require the Company to repurchase for cash all or any portion of their Notes at a fundamental change repurchase price equal to 100% of the principal amount of the Notes to be repurchased, plus accrued and unpaid special interest, if any, to, but excluding, the fundamental change repurchase date. The Company evaluated the terms of its debt and concluded that the instrument does not require separation and that there were no other derivatives that required separation. As such, the Company has combined these features with the host contract and the Company accounts for its convertible debt as a single liability in long-term debt on its condensed consolidated balance sheet. The initial purchasers' discounts and transaction costs of $18.6 million incurred related to the issuance of the Notes were classified as liability and represents the difference between the principal amount of the Notes and the liability component (the “debt discount”), which is amortized to interest expense using the effective interest method over the term of the Notes. As of March 31, 2024, the conversion conditions had not been met and therefore the Notes were not yet convertible. On May 25, 2022, the Company entered into separate, privately negotiated transactions with certain holders of the Notes to repurchase (the “Repurchases”) $235.0 million aggregate principal amount of the Notes for an aggregate cash repurchase price of $176.4 million and aggregate transaction costs of $0.7 million. During the year ended December 31, 2023, the Company entered into several separate privately negotiated transactions with certain holders of the Notes to repurchase $367.3 million aggregate principal amount of the Notes for an aggregate cash repurchase price of $309.1 million and aggregate transaction costs of $2.0 million. The following table reflects the carrying values of the debt agreements as of March 31, 2024 and December 31, 2023: As of March 31, 2024 As of December 31, 2023 (in thousands) (in thousands) Convertible Senior notes (effective interest rate of 0.38%) Principal amount $ 346,489 $ 346,489 Less: unamortized debt issuance costs (2,652) (2,982) Less: current portion of long-term debt — — Long-term debt, less current portion $ 343,837 $ 343,507 For the three months ended March 31, 2024 and 2023, interest expense related to the Company’s debt obligations was $0.4 million and $0.8 million, respectively. As of March 31, 2024 and December 31, 2023, the total estimated fair value of the Notes was $314.4 million and $301.4 million, respectively. |
Commitments and Contingencies
Commitments and Contingencies | 3 Months Ended |
Mar. 31, 2024 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies Purchase Commitments As of March 31, 2024, the Company had long-term commitments for cost of revenue related agreements (i.e., bandwidth usage, peering and other managed services with various networks, fixed asset vendors, Internet service providers and other third-party vendors). The Company also has non-cost of revenue long-term commitments for various non-cancelable agreements. Aside from the Company’s finance and operating lease commitments, including its colocation operating commitments, which have been disclosed in Note 6—Leases, the minimum future commitments related to the Company's purchase commitments as of March 31, 2024 were as follows: Cost of Revenue Commitments Operating Expense Commitments Total Purchase Commitments (in thousands) Remainder of 2024 $ 37,203 $ 5,131 $ 42,334 2025 7,418 4,799 12,217 2026 8,122 3,069 11,191 2027 111 — 111 2028 40 — 40 Thereafter — — — Total $ 52,894 $ 12,999 $ 65,893 Sales and Use Tax The Company conducts its operations in many tax jurisdictions throughout the United States. In some of these jurisdictions the Company is subject to indirect taxes, such as sales and use taxes, and may be subject to certain other taxes. In accordance with GAAP, the Company has recorded a provision for its tax exposure in these jurisdictions when it is both probable that a liability has been incurred and the amount of the exposure can be reasonably estimated. The Company has accrued $4.1 million and $4.3 million as of March 31, 2024 and December 31, 2023, respectively, for sales and use tax. These estimates are based on several key assumptions, including the taxability of the Company’s operations and the jurisdictions in which the Company believes it has nexus. In the event these jurisdictions challenge the Company’s assumptions and analysis, its actual exposure could differ materially from its current estimates. Legal Matters From time to time, the Company has been and may be subject to legal proceedings and claims. Such matters are subject to many uncertainties and outcomes are not predictable with assurance. The Company accrues for contingencies when it believes that a loss is probable and that the Company can reasonably estimate the amount of any such loss. The Company is not presently a party to any legal proceedings that, if determined adversely to it, would individually or taken together have a material effect on the Company’s business, results of operations, financial condition, or cash flows. As of March 31, 2024, the Company has not recorded any significant accruals for loss contingencies associated with such legal proceedings, determined that an unfavorable outcome is probable or reasonably possible, or determined that the amount or range of any possible loss is reasonably estimable. Indemnification The Company enters into standard indemnification agreements in the ordinary course of business. Pursuant to these agreements, the Company agrees to indemnify, hold harmless, and reimburse the indemnified party for losses suffered or incurred by the indemnified party, generally the Company’s business partners or customers, in connection with its provision of its services. Generally, these obligations are limited to claims relating to infringement of a patent, copyright, or other intellectual property right, breach of the Company’s security or data protection obligations, or its negligence, willful misconduct, or violation of law. Subject to applicable statutes of limitation, the term of these indemnification agreements is generally for the duration of the agreement. The maximum potential amount of future payments the Company could be required to make under these indemnification agreements is unlimited; however, the Company carries insurance that covers certain third-party claims relating to the Company’s services and could limit its exposure in that respect. The Company has agreed to indemnify each of its officers and directors during his or her lifetime for certain events or occurrences that happen by reason of the fact that the officer or director is, was, or has agreed to serve as an officer or director of the Company. The Company has director and officer insurance policies that may limit its exposure and may enable it to recover a portion of certain future amounts paid. To date, the Company has not encountered material costs as a result of such indemnification obligations and has not accrued any related liabilities in its financial statements. In assessing whether to establish an accrual, the Company considers such factors as the degree of probability of an unfavorable outcome and the ability to make a reasonable estimate of the amount of loss. |
Stockholders' Equity
Stockholders' Equity | 3 Months Ended |
Mar. 31, 2024 | |
Stockholders' Equity Note [Abstract] | |
Stockholders' Equity | Stockholders' Equity Equity Incentive Plans The Company maintains four equity incentive plans: the 2019 Equity Incentive Plan (the “2019 Plan”), 2011 Equity Incentive Plan (“2011 Plan”), Employee Stock Purchase Plan and the Signal Sciences Corp. 2014 Stock Option and Grant Plan, as amended (the “Signal Plan”). The 2019 Plan became effective in May 2019 and replaced the 2011 Plan. The Company’s 2019 Plan provides for the issuance of incentive stock options, non-statutory stock options, stock appreciation rights, restricted stock units (“RSUs”), restricted stock awards, performance-based stock awards (“PSUs”), and other forms of equity compensation, which are collectively referred to as stock awards to its employees, directors, and consultants. The Signal Plan includes 251,754 registered shares which can be exercised to purchase shares of Fastly’s common stock. As of March 31, 2024 and December 31, 2023, there were 12.0 million and 8.9 million shares of common stock available for issuance under the 2019 Plan, respectively. As of March 31, 2024 and December 31, 2023, 136.5 million and 133.0 million shares of common stock were issued and outstanding, respectively. Stock Options Options granted under the 2011 Plan and 2019 Plan are exercisable for common stock and generally expire within 10 years from the date of grant and generally vest over four years, at the rate of 25% on the first anniversary of the date of grant and ratably on a monthly basis over the remaining 36-month period thereafter based on continued service. Forfeitures are recognized as they occur. The following table summarizes stock option activity during the three months ended March 31, 2024: Shares Weighted- Weighted- Aggregate (in thousands) (in years) (in thousands) Outstanding at December 31, 2023 2,710 8.14 5.1 $ 26,383 Granted — — Exercised (71) 1.58 Cancelled/forfeited — — Outstanding at March 31, 2024 2,639 8.32 4.9 $ 15,255 Vested and exercisable at March 31, 2024 2,110 6.28 3.7 $ 15,255 During the three months ended March 31, 2024 and 2023, the Company recorded stock-based compensation expense from stock options of approximately $0.6 million and $0.7 million, respectively. Restricted Stock Units (“RSUs”) The Company began granting RSUs under the 2019 Plan during the fiscal year ended December 31, 2019. The fair value of RSUs is based on the grant date fair value and is expensed on a straight-line basis over the applicable vesting period. RSUs granted to new hires typically vest over three three The following table summarizes RSU activity during the three months ended March 31, 2024: Number of Shares Weighted-Average (in thousands) Unvested RSUs as of December 31, 2023 11,244 $ 17.46 Granted 3,320 13.96 Vested (3,258) 16.34 Cancelled/forfeited (230) 21.95 Unvested RSUs as of March 31, 2024 11,076 $ 16.65 During the three months ended March 31, 2024 and 2023, the Company recognized stock-based compensation expense related to RSUs of $24.5 million and $23.6 million, respectively. Performance-Based Restricted Stock Units ("PSUs") Performance stock awards for executive officers (“Executive PSUs”) In March and May 2023, pursuant to the Company’s 2019 Equity Incentive Plan, the Company granted certain employees shares of PSUs, which are to vest based on the level of achievement of certain Company-wide targets related to the Company’s operating plan for the fiscal year 2023. The Company has accounted for these awards as equity-based awards and will recognize stock-based compensation expense over the employees' requisite service period based on the expected attainment of the Company-wide targets as of the end of each reporting period. In February 2024, pursuant to the Company’s 2019 Equity Incentive Plan, the Company granted certain employees shares of PSUs, which are to vest based on the level of achievement of certain Company-wide targets related to the Company’s operating plan for the fiscal year 2024. The Company has accounted for these awards as equity-based awards and will recognize stock-based compensation expense over the employees' requisite service period based on the expected attainment of the Company-wide targets as of the end of each reporting period. Number of Shares Weighted-Average Grant Date Fair Value Per Share (in thousands) Nonvested PSUs as of December 31, 2023 732 $ 16.49 Granted 909 12.60 Vested (162) 16.14 Cancelled/forfeited (263) 16.05 Nonvested PSUs as of March 31, 2024 1,216 $ 13.72 For the three months ended March 31, 2024 and 2023, the Company recognized $1.2 million and $0.3 million of stock-based compensation expense associated with these awards, respectively. Company-wide Bonus Program (“Bonus Program”) In March 2023, the Compensation Committee approved a company-wide bonus program, including performance targets, to most of the Company’s employees on active payroll in fiscal year 2023 ( “ 2023 Bonus Program ” ). Shares awarded under the program were paid out in February 2024 in fully vested RSUs and based on the final attainment of Company-wide performance targets which were tied to its operating plan for fiscal year 2023. The Company recognized stock-based compensation expense over the employees requisite service period, based on the final attainment of the Company-wide targets. In February 2024, the Company paid out 1.9 million of restricted stock units associated with the 2023 Bonus Program, and correspondingly recorded a charge to additional paid-in-capital of $26.8 million. In February 2024, the Compensation Committee approved a company-wide bonus program, including performance targets, for the current fiscal year to most of the Company’s employees on active payroll in fiscal year 2024 ("2024 Bonus Program"). Shares awarded under the program will be in fully vested RSUs and will be based on the final attainment of Company-wide performance targets which are tied to its operating plan for fiscal year 2024. The payout of the 2024 Company-wide bonus program will vary linearly between 50%, 100% and 150% based on the achievement of these targets. Employees are required to be employed through the payout date to earn the awards. The Company has accounted for these awards as liability-based awards, since the monetary value of the obligation associated with the award is based predominantly on a fixed monetary amount known at inception, and it has an unconditional obligation that it must or may settle by issuing a variable number of its equity shares. The Company is recognizing the stock-based compensation expense over the employees requisite service period, based on the expected attainment of the Company-wide targets as of the end of each reporting period. During the three months ended March 31, 2024 and 2023, the Company recognized $6.5 million and $2.0 million, respectively, of stock-based compensation expense associated with the Bonus Programs, respectively. Market-Based Performance Stock Awards (“MPSUs”) In September 2022 and January 2023, pursuant to the Company’s 2019 Equity Incentive Plan, the Company granted certain employees shares of MPSUs, which are to vest upon the satisfaction of the Company’s achievement of specified Fastly common stock price targets during the applicable performance period. In addition, the awards are subject to each recipient’s continuous service through each applicable vest dates. Number of Shares Weighted-Average Grant Date Fair Value Per Share (in thousands) Nonvested MPSUs as of December 31, 2023 1,471 $ 6.46 Granted — — Vested — — Cancelled/forfeited (158) 6.69 Nonvested MPSUs as of March 31, 2024 1,313 $ 6.45 Stock-based compensation expense relating to the MPSUs are recognized using the accelerated attribution method over the derived service period. During the three months ended March 31, 2024 and 2023, the Company recognized $0.7 million and $1.6 million stock-based compensation expense associated with these awards, respectively. Employee Stock Purchase Program (“ESPP”) The ESPP allows eligible employees to purchase shares of the Company’s common stock through payroll deductions of up to 15% of their eligible compensation. The ESPP provides for six-month offering periods, commencing in May and November of each year. At the end of each offering period employees are able to purchase shares at 85% of the lower of the fair market value of the Company’s common stock on the first trading day of the offering period or on the date of purchase. During the three months ended March 31, 2024 and 2023 the Company recognized $1.2 million and $1.3 million in stock-based compensation expense related to the ESPP, respectively. No common stock was issued under the ESPP in the three months ended March 31, 2024, nor in the three months ended March 31, 2023. Stock-Based Compensation Expense The following table summarizes the components of total stock-based compensation expense included in the accompanying condensed consolidated statements of operations: Three months ended March 31, 2024 2023 (in thousands) Cost of revenue $ 2,779 $ 2,681 Research and development 10,323 11,481 Sales and marketing 7,843 6,705 General and administrative 10,876 7,284 Total stock-based compensation expense $ 31,821 $ 28,151 For the three months ended March 31, 2024 and 2023, the Company capitalized $2.9 million and $1.3 million of stock-based compensation expense to internal-use software, respectively. For the three months ended March 31, 2024 and 2023, the Company recognized $6.5 million and $2.0 million of stock-based compensation expense associated with liability classified awards related to the company-wide Bonus Program, respectively. |
Net Loss Per Share Attributable
Net Loss Per Share Attributable to Common Stockholders | 3 Months Ended |
Mar. 31, 2024 | |
Earnings Per Share [Abstract] | |
Net Loss Per Share Attributable to Common Stockholders | Net Loss Per Share Attributable to Common Stockholders Basic net loss per share is computed by dividing net loss by basic weighted-average shares outstanding during the period. Diluted net loss per share is computed by dividing net loss by diluted weighted-average shares outstanding, including potentially dilutive securities. The following table presents the computation of basic and diluted net loss per share of common stock: Three months ended March 31, 2024 2023 (in thousands, except per share amounts) Net loss attributable to common stockholders $ (43,427) $ (44,687) Weighted-average shares used in computing net loss per share attributable to common stockholders, basic and diluted 134,587 125,418 Net loss per share attributable to common stockholders, basic and diluted $ (0.32) $ (0.36) The following securities were excluded from the computation of diluted net loss per share of common stock for the periods presented as their effect would have been antidilutive: Number of Shares As of March 31, 2024 2023 (in thousands) Stock options 2,639 2,362 RSUs 11,076 11,799 PSUs 1,216 822 MPSUs 1,313 2,161 Shares issuable pursuant to the ESPP 550 581 Convertible senior notes (if-converted) 3,370 7,338 Total 20,164 25,063 The dilution table above excludes RSUs to be awarded under the Company’s 2024 Bonus Program, which is expected to have an impact on its outstanding awards in the first quarter of 2025. Refer to Note 10 — Stockholders' Equity for further details on the Company’s 2024 Bonus Program. |
Income Taxes
Income Taxes | 3 Months Ended |
Mar. 31, 2024 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes The Company’s provision for income taxes for interim periods is determined using an estimate of its annual effective tax rate, adjusted for discrete items, if any, that arise during the period. Each quarter, the Company updates its estimate of the annual effective tax rate, and if the estimated annual effective tax rate changes, the Company makes a cumulative adjustment in such period. The Company continues to maintain a full valuation allowance on the Company’s U.S. Federal and state net deferred tax assets. The tax expense for the three months ended March 31, 2024 and 2023 was primarily due to foreign tax expense. |
Information About Revenue and G
Information About Revenue and Geographic Areas | 3 Months Ended |
Mar. 31, 2024 | |
Segment Reporting [Abstract] | |
Information About Revenue and Geographic Areas | Information About Revenue and Geographic Areas Revenue Revenue by geography is based on the billing address of the customer. Refer to Note 3—Revenue for more information on net revenue by geographic area. Long-Lived Assets The Company’s property and equipment and operating lease right-of-use assets, each net, by geographic area were as follows: As of March 31, 2024 As of December 31, 2023 (in thousands) United States $ 166,770 $ 166,413 All other countries 65,224 65,407 Total long-lived assets $ 231,994 $ 231,820 |
Subsequent Event
Subsequent Event | 3 Months Ended |
Mar. 31, 2024 | |
Subsequent Events [Abstract] | |
Subsequent Event | Subsequent EventOn April 30, 2024, the Company entered into the Third Amendment to Credit Agreement with the Lenders and Silicon Valley Bank, a division of First-Citizens Bank & Trust Company, as a lender and as administrative agent and collateral agent for the Lenders, which, among other things, extended the maturity date of the loans under the Credit Agreement to April 30, 2027 and decreased the commitment amount from $100.0 million to $60.0 million, including a $10.0 million sublimit for the issuance of letters of credit, and a swingline subfacility of up to $20.0 million. |
Pay vs Performance Disclosure
Pay vs Performance Disclosure - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Pay vs Performance Disclosure | ||
Net Income (Loss) | $ (43,427) | $ (44,687) |
Insider Trading Arrangements
Insider Trading Arrangements | 3 Months Ended |
Mar. 31, 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 |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 3 Months Ended |
Mar. 31, 2024 | |
Accounting Policies [Abstract] | |
Basis of Presentation and Consolidation | Basis of Presentation and Consolidation The accompanying condensed consolidated financial statements and footnotes have been prepared in conformity with U.S. generally accepted accounting principles (“GAAP”), consistent in all material respects with those applied in the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2023, filed with the Securities and Exchange Commission (“SEC”) on February 21, 2024. The Company’s condensed consolidated financial statements include its accounts and its wholly owned subsidiaries. All significant intercompany balances and transactions have been eliminated in consolidation. The Company’s condensed consolidated financial statements are unaudited but include all adjustments of a normal recurring nature necessary for a fair presentation of its quarterly results. The Company’s condensed consolidated financial statements should be read in conjunction with the audited consolidated financial statements and related notes in the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2023. |
Use of Estimates | Use of Estimates The preparation of condensed consolidated financial statements in conformity with GAAP requires management to make estimates, judgments, and assumptions that affect the reported amounts of assets, liabilities, revenue, costs and expenses, and related disclosures. Actual results and outcomes could differ significantly from the Company’s estimates, judgments, and assumptions. Significant estimates, judgments, and assumptions used in these financial statements include, but are not limited to, those related to revenue, accounts receivable and related reserves, internal-use software development costs, the incremental borrowing rate related to the Company’s lease liabilities, fair value of assets acquired and liabilities assumed during business combinations, useful lives of acquired intangible assets and property and equipment, fair value of the Company’s long-lived assets as well as goodwill, income tax reserves, and accounting for stock-based compensation. Estimates are periodically reviewed in light of changes in circumstances, facts, and experience. The effects of material revisions in estimates are reflected in the consolidated financial statements in the period of change and prospectively from the date of the change in estimate. |
Recently Adopted and Issued Accounting Pronouncements | Recently Adopted and Issued Accounting Pronouncements In November 2023, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2023-07 “Segment Reporting - Improvements to Reportable Segment Disclosures,” which updates reportable segment disclosure requirements, primarily through enhanced disclosures about significant segment expenses and information used to assess segment performance. The guidance is effective for the Company's annual periods beginning in 2024 and interim periods beginning in the first quarter of fiscal year 2025. The Company is currently evaluating the impact of the new guidance. In December 2023, the FASB issued ASU 2023-09 “Income Taxes (Topic 740): Improvements to Income Tax Disclosures,” which expands disclosures in an entity’s income tax rate reconciliation table and regarding cash taxes paid both in the U.S. and foreign jurisdictions. The guidance is effective for the Company's annual periods beginning in 2025. The Company |
Concentrations of Credit Risk | Concentrations of Credit Risk Financial instruments that potentially subject the Company to significant concentrations of credit risk consist primarily of cash, cash equivalents, marketable securities and accounts receivable. The Company’s cash, cash equivalents, and marketable securities primarily consisted of bank deposits, money market funds, investment-grade commercial paper, corporate notes and bonds, U.S. treasury securities, municipal securities, foreign government and supranational securities and asset-backed securities held at major financial institutions that the Company believes to be of high credit standing. The primary focus of its investment strategy is to preserve capital and meet liquidity requirements. The Company’s investment policy limits the amount of credit exposure with any one financial institution or commercial issuer. The Company maintains deposits in federally insured financial institutions in excess of federally insured limits. The Company is exposed to credit risk in the event of default by the financial institutions holding its cash and cash equivalents to the extent recorded in the balance sheets. While the Company has not experienced any losses in such accounts and the Company has historically maintained its cash in multiple financial institutions, the failure of Silicon Valley Bank (“SVB”) in March 2023, at which the Company held cash and cash equivalents in multiple accounts, exposed the Company to limited credit risk prior to the completion by the Federal Deposit Insurance Corporation (“FDIC”) of the resolution of SVB in a manner that fully protected all depositors. |
Revenue | Revenue by geography is based on the billing address of the customer. |
Fair Value of Financial Instruments | Fair Value of Financial Instruments For certain of the Company's financial instruments, including cash held in banks, accounts receivable, and accounts payable, the carrying amounts approximate fair value due to their short maturities, and are therefore excluded from the fair value tables below. Fair value is defined as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. There is a three-tier fair value hierarchy, which prioritizes the inputs used in measuring fair value as follows: Level 1—Observable inputs such as quoted prices in active markets for identical assets or liabilities; Level 2—Inputs other than Level 1 that are observable, either directly or indirectly, such as quoted prices for similar assets or liabilities, quoted prices in markets that are not active, or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities; and Level 3—Unobservable inputs that are supported by little or no market activity, which require management judgment or estimation. The Company measures its cash equivalents, marketable securities, and restricted cash at fair value. The Company classifies its cash equivalents, marketable securities and restricted cash within Level 1 or Level 2 because the Company values these investments using quoted market prices or alternative pricing sources and models utilizing market observable inputs. |
Revenue (Tables)
Revenue (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Revenue from Contract with Customer [Abstract] | |
Schedule of Net Revenue by Geographic Region | The following table presents the Company’s net revenue by geographic region: Three months ended March 31, 2024 2023 (in thousands) United States $ 98,498 $ 85,364 Asia Pacific 19,098 16,431 Europe 11,246 10,515 All other 4,678 5,254 Total revenue $ 133,520 $ 117,564 |
Schedule of Revenue by Customer Type | The following table presents the Company's net revenue for enterprise and non-enterprise customers: Three months ended March 31, 2024 2023 (in thousands) Enterprise customers $ 122,060 $ 107,373 Non-enterprise customers 11,460 10,191 Total revenue $ 133,520 $ 117,564 |
Schedule of Revenue by Product Line | The following table presents the Company’s revenue by product line: Three months ended March 31, 2024 2023 (in thousands) Network Services $ 105,996 $ 94,307 Security 24,600 21,208 Other 2,924 2,049 Total revenue $ 133,520 $ 117,564 |
Schedule of Contract Assets and Contract Liabilities | The following table presents the Company’s contract assets and contract liabilities as of March 31, 2024 and as of December 31, 2023: As of March 31, 2024 As of December 31, 2023 (in thousands) Contract assets $ — $ 621 Contract liabilities $ 41,136 $ 38,150 The following table presents revenue recognized during the three months ended March 31, 2024 and 2023 from amounts included in the contract liability at the beginning of the period: Three months ended March 31, 2024 2023 (in thousands) Revenue recognized in the period from amounts included in contract liability at the beginning of the period $ 12,760 $ 12,221 |
Schedule of Costs to Obtain Contracts | As of March 31, 2024 and December 31, 2023, the Company's costs to obtain contracts were as follows: As of March 31, 2024 As of December 31, 2023 (in thousands) Deferred contract costs, net $ 59,011 $ 61,981 |
Investments and Fair Value Me_2
Investments and Fair Value Measurements (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Fair Value Disclosures [Abstract] | |
Schedule of Cash, Cash Equivalents, and Marketable Securities | The Company's total cash, cash equivalents and marketable securities consisted of the following: As of March 31, 2024 As of December 31, 2023 (in thousands) Cash and cash equivalents: Cash $ 19,621 $ 21,269 U.S. Treasury securities 1,800 52,830 Money market funds 124,417 21,166 Commercial paper 4,971 12,656 Total cash and cash equivalents (1) $ 150,809 $ 107,921 Marketable securities: U.S. Treasury securities $ 21,799 $ 73,448 Corporate notes and bonds 83,789 105,566 Commercial paper 63,111 25,934 Agency bonds 9,978 9,851 Total marketable securities, current (2) $ 178,677 $ 214,799 Corporate notes and bonds 1,743 5,999 Asset-backed securities — 89 Total marketable securities, non-current (3) $ 1,743 $ 6,088 Total marketable securities $ 180,420 $ 220,887 Total cash and cash equivalents and marketable securities $ 331,229 $ 328,808 (1) The Company’s cash equivalents include investments with an original maturity date of three months or less. (2) The Company classifies its marketable securities as current, where it intends to hold the securities for less than 12 months. (3) The Company classifies its marketable securities are non-current, where it intends to hold the securities for longer than 12 months. |
Schedule of Available-For-Sale Investments | The following table summarizes adjusted cost, gross unrealized gains and losses, and fair value related to cash equivalents and available-for-sale securities on the accompanying condensed consolidated balance sheets as of March 31, 2024 and December 31, 2023: As of March 31, 2024 Amortized Gross Gross Fair (in thousands) Cash equivalents: Money market funds $ 124,417 $ — $ — $ 124,417 U.S. Treasury securities 1,800 — — 1,800 Commercial paper 4,975 — (4) 4,971 Marketable securities: U.S. Treasury securities 21,806 — (7) 21,799 Corporate notes and bonds 85,880 30 (378) 85,532 Commercial paper 63,174 — (63) 63,111 Agency bonds 9,984 — (6) 9,978 Total $ 312,036 $ 30 $ (458) $ 311,608 As of December 31, 2023 Amortized Gross Gross Fair (in thousands) Cash equivalents: U.S. Treasury securities $ 52,824 $ 6 $ — $ 52,830 Commercial paper 12,663 — (7) 12,656 Marketable securities: U.S. Treasury securities 73,444 8 (4) 73,448 Corporate notes and bonds 112,487 9 (931) 111,565 Commercial paper 25,946 — (12) 25,934 Asset-backed securities 89 — — 89 Agency bonds 9,854 — (3) 9,851 Total $ 287,307 $ 23 $ (957) $ 286,373 |
Schedule of Financial Assets and Liabilities Measured and Recorded at Fair Value on a Recurring Basis | Financial assets and liabilities measured and recorded at fair value on a recurring basis consisted of the following types of instruments: As of March 31, 2024 Level 1 Level 2 Level 3 Total (in thousands) Cash equivalents: Money market funds $ 124,417 $ — $ — $ 124,417 U.S. Treasury securities — 1,800 — 1,800 Commercial paper — 4,971 — 4,971 Total cash equivalents 124,417 6,771 — 131,188 Marketable securities: U.S. Treasury securities — 21,799 — 21,799 Corporate notes and bonds — 85,532 — 85,532 Commercial paper — 63,111 — 63,111 Agency bonds — 9,978 — 9,978 Total marketable securities — 180,420 — 180,420 Restricted cash: Restricted cash, current 150 — — 150 Total restricted cash 150 — — 150 Total financial assets $ 124,567 $ 187,191 $ — $ 311,758 As of December 31, 2023 Level 1 Level 2 Level 3 Total (in thousands) Cash equivalents: Money market funds $ 21,166 $ — $ — $ 21,166 U.S. Treasury securities — 52,830 — 52,830 Commercial paper — 12,656 — 12,656 Total cash equivalents 21,166 65,486 — 86,652 Marketable securities: U.S. Treasury securities — 73,448 — 73,448 Corporate notes and bonds — 111,565 — 111,565 Commercial paper — 25,934 — 25,934 Asset-backed securities — 89 — 89 Agency bonds — 9,851 — 9,851 Total marketable securities — 220,887 — 220,887 Restricted cash: Restricted cash, current 150 — — 150 Total restricted cash 150 — — 150 Total financial assets $ 21,316 $ 286,373 $ — $ 307,689 |
Balance Sheet Information (Tabl
Balance Sheet Information (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Balance Sheet Related Disclosures [Abstract] | |
Schedule of Property and Equipment, Net | Property and equipment, net consisted of the following: As of March 31, 2024 As of December 31, 2023 (in thousands) Computer and networking equipment $ 228,835 $ 224,313 Leasehold improvements 8,605 8,605 Furniture and fixtures 2,150 2,142 Office equipment 1,228 1,228 Internal-use software 100,839 97,623 Property and equipment, gross $ 341,657 $ 333,911 Accumulated depreciation and amortization (164,083) (157,303) Property and equipment, net $ 177,574 $ 176,608 |
Schedule of Other Assets | Other assets consisted of the following: As of March 31, 2024 As of December 31, 2023 (in thousands) Deferred contract costs, net $ 59,011 $ 61,981 Advance payment for purchase of property and equipment 20,485 24,509 Other assets 4,548 4,289 Total other assets $ 84,044 $ 90,779 |
Schedule of Accrued Expenses | Accrued expenses consisted of the following: As of March 31, 2024 As of December 31, 2023 (in thousands) Accrued compensation and related benefits $ 13,046 $ 14,918 Accrued bonus 2,930 24,614 Accrued colocation and bandwidth costs 10,771 14,362 Other tax liabilities 4,071 4,344 Other accrued expenses 4,737 3,580 Total accrued expenses $ 35,555 $ 61,818 |
Schedule of Other Current Liabilities | Other current liabilities consisted of the following: As of March 31, 2024 As of December 31, 2023 (in thousands) Deferred revenue $ 38,240 $ 33,824 Accrued computer and networking equipment 1,460 1,673 Holdback payable 3,771 3,771 Other current liabilities 1,162 1,271 Total other current liabilities $ 44,633 $ 40,539 |
Schedule of Accumulated Other Comprehensive Loss | For the three months ended March 31, 2024 and 2023, components of accumulated other comprehensive loss, net of taxes, were as follows (in thousands): Foreign Currency Translation Available-for-sale investments Accumulated Other Comprehensive Income (Loss) Balance, December 31, 2023 $ (12) $ (996) $ (1,008) Other comprehensive income — 487 487 Balance, March 31, 2024 $ (12) $ (509) $ (521) Foreign Currency Translation Available-for-sale investments Accumulated Other Comprehensive Income (Loss) Balance, December 31, 2022 $ (577) $ (8,709) $ (9,286) Other comprehensive income 84 3,608 3,692 Balance, March 31, 2023 $ (493) $ (5,101) $ (5,594) |
Leases (Tables)
Leases (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Leases [Abstract] | |
Schedule of Lease Costs & Other Information | The components of lease cost were as follows: Three months ended March 31, 2024 2023 (in thousands) Operating lease costs: Operating lease cost $ 6,606 $ 7,201 Variable lease cost 4,247 3,576 Total operating lease costs $ 10,853 $ 10,777 Finance lease costs: Amortization of assets under finance lease $ 3,595 $ 3,623 Interest 162 439 Total finance lease costs $ 3,757 $ 4,062 As of March 31, 2024 As of December 31, 2023 Weighted Average Remaining Lease Term (in years): Operating leases 3.35 3.48 Finance leases 0.82 1.00 Weighted Average Discount Rate: Operating leases 6.24 % 6.03 % Finance leases 4.67 % 4.67 % |
Schedule of Operating Lease Maturity | Future minimum lease payments under non-cancellable leases as of March 31, 2024 were as follows: Operating Leases Finance Leases (in thousands) Remaining 2024 $ 20,820 $ 11,029 2025 22,187 1,617 2026 19,969 — 2027 11,286 — 2028 2,996 — Thereafter 1,836 — Total future minimum lease payments $ 79,094 $ 12,646 Less: imputed interest (7,686) (232) Total liability $ 71,408 $ 12,414 |
Schedule of Finance Lease Maturity | Future minimum lease payments under non-cancellable leases as of March 31, 2024 were as follows: Operating Leases Finance Leases (in thousands) Remaining 2024 $ 20,820 $ 11,029 2025 22,187 1,617 2026 19,969 — 2027 11,286 — 2028 2,996 — Thereafter 1,836 — Total future minimum lease payments $ 79,094 $ 12,646 Less: imputed interest (7,686) (232) Total liability $ 71,408 $ 12,414 |
Goodwill and Intangible Assets
Goodwill and Intangible Assets (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Intangible Assets, Net | As of March 31, 2024 and December 31, 2023, the Company’s intangible assets consisted of the following: As of March 31, 2024 As of December 31, 2023 Gross carrying value Accumulated amortization Net carrying value Gross carrying value Accumulated amortization Net carrying value (in thousands) Intangible assets: Customer relationships $ 69,860 $ (30,696) $ 39,164 $ 69,860 $ (28,473) $ 41,387 Developed technology 50,130 (34,939) 15,191 50,130 (32,424) 17,706 Trade names 3,910 (3,580) 330 3,910 (3,542) 368 Internet protocol addresses 4,984 (2,093) 2,891 4,984 (1,970) 3,014 Total intangible assets $ 128,884 $ (71,308) $ 57,576 $ 128,884 $ (66,409) $ 62,475 |
Schedule of Expected Amortization Expense of Intangible Assets | The expected amortization expense of intangible assets subject to amortization as of March 31, 2024 is as follows: As of March 31, 2024 (in thousands) Remainder of 2024 $ 14,699 2025 16,976 2026 9,193 2027 9,051 2028 6,892 Thereafter 765 Total $ 57,576 |
Debt Instruments (Tables)
Debt Instruments (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Debt Disclosure [Abstract] | |
Schedule of Carrying Values of Debt Agreements | The following table reflects the carrying values of the debt agreements as of March 31, 2024 and December 31, 2023: As of March 31, 2024 As of December 31, 2023 (in thousands) (in thousands) Convertible Senior notes (effective interest rate of 0.38%) Principal amount $ 346,489 $ 346,489 Less: unamortized debt issuance costs (2,652) (2,982) Less: current portion of long-term debt — — Long-term debt, less current portion $ 343,837 $ 343,507 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule of Purchase Commitments | Aside from the Company’s finance and operating lease commitments, including its colocation operating commitments, which have been disclosed in Note 6—Leases, the minimum future commitments related to the Company's purchase commitments as of March 31, 2024 were as follows: Cost of Revenue Commitments Operating Expense Commitments Total Purchase Commitments (in thousands) Remainder of 2024 $ 37,203 $ 5,131 $ 42,334 2025 7,418 4,799 12,217 2026 8,122 3,069 11,191 2027 111 — 111 2028 40 — 40 Thereafter — — — Total $ 52,894 $ 12,999 $ 65,893 |
Stockholders' Equity (Tables)
Stockholders' Equity (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Stockholders' Equity Note [Abstract] | |
Schedule of Stock Option Activity | The following table summarizes stock option activity during the three months ended March 31, 2024: Shares Weighted- Weighted- Aggregate (in thousands) (in years) (in thousands) Outstanding at December 31, 2023 2,710 8.14 5.1 $ 26,383 Granted — — Exercised (71) 1.58 Cancelled/forfeited — — Outstanding at March 31, 2024 2,639 8.32 4.9 $ 15,255 Vested and exercisable at March 31, 2024 2,110 6.28 3.7 $ 15,255 |
Schedule of RSU, PSU, MPSUs Activity | The following table summarizes RSU activity during the three months ended March 31, 2024: Number of Shares Weighted-Average (in thousands) Unvested RSUs as of December 31, 2023 11,244 $ 17.46 Granted 3,320 13.96 Vested (3,258) 16.34 Cancelled/forfeited (230) 21.95 Unvested RSUs as of March 31, 2024 11,076 $ 16.65 Number of Shares Weighted-Average Grant Date Fair Value Per Share (in thousands) Nonvested PSUs as of December 31, 2023 732 $ 16.49 Granted 909 12.60 Vested (162) 16.14 Cancelled/forfeited (263) 16.05 Nonvested PSUs as of March 31, 2024 1,216 $ 13.72 Number of Shares Weighted-Average Grant Date Fair Value Per Share (in thousands) Nonvested MPSUs as of December 31, 2023 1,471 $ 6.46 Granted — — Vested — — Cancelled/forfeited (158) 6.69 Nonvested MPSUs as of March 31, 2024 1,313 $ 6.45 |
Schedule of Stock-Based Compensation Expense | The following table summarizes the components of total stock-based compensation expense included in the accompanying condensed consolidated statements of operations: Three months ended March 31, 2024 2023 (in thousands) Cost of revenue $ 2,779 $ 2,681 Research and development 10,323 11,481 Sales and marketing 7,843 6,705 General and administrative 10,876 7,284 Total stock-based compensation expense $ 31,821 $ 28,151 |
Net Loss Per Share Attributab_2
Net Loss Per Share Attributable to Common Stockholders (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Earnings Per Share [Abstract] | |
Schedule of Computation of Basic and Diluted Net Loss Per Share of Common Stock | The following table presents the computation of basic and diluted net loss per share of common stock: Three months ended March 31, 2024 2023 (in thousands, except per share amounts) Net loss attributable to common stockholders $ (43,427) $ (44,687) Weighted-average shares used in computing net loss per share attributable to common stockholders, basic and diluted 134,587 125,418 Net loss per share attributable to common stockholders, basic and diluted $ (0.32) $ (0.36) |
Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share | The following securities were excluded from the computation of diluted net loss per share of common stock for the periods presented as their effect would have been antidilutive: Number of Shares As of March 31, 2024 2023 (in thousands) Stock options 2,639 2,362 RSUs 11,076 11,799 PSUs 1,216 822 MPSUs 1,313 2,161 Shares issuable pursuant to the ESPP 550 581 Convertible senior notes (if-converted) 3,370 7,338 Total 20,164 25,063 |
Information About Revenue and_2
Information About Revenue and Geographic Areas (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Segment Reporting [Abstract] | |
Schedule of Long-Lived Assets by Geographic Region | The Company’s property and equipment and operating lease right-of-use assets, each net, by geographic area were as follows: As of March 31, 2024 As of December 31, 2023 (in thousands) United States $ 166,770 $ 166,413 All other countries 65,224 65,407 Total long-lived assets $ 231,994 $ 231,820 |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Details) - Customer One and Affiliated Customer - Customer Concentration Risk | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | Dec. 31, 2023 | |
Revenue | |||
Concentration Risk [Line Items] | |||
Concentration risk, percentage | 12% | 10% | |
Accounts Receivable | |||
Concentration Risk [Line Items] | |||
Concentration risk, percentage | 14% | 23% |
Revenue - Schedule of Net Reven
Revenue - Schedule of Net Revenue by Geographic Region (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Disaggregation of Revenue [Line Items] | ||
Total revenue | $ 133,520 | $ 117,564 |
United States | ||
Disaggregation of Revenue [Line Items] | ||
Total revenue | 98,498 | 85,364 |
Asia Pacific | ||
Disaggregation of Revenue [Line Items] | ||
Total revenue | 19,098 | 16,431 |
Europe | ||
Disaggregation of Revenue [Line Items] | ||
Total revenue | 11,246 | 10,515 |
All other | ||
Disaggregation of Revenue [Line Items] | ||
Total revenue | $ 4,678 | $ 5,254 |
Revenue - Narrative (Details)
Revenue - Narrative (Details) - USD ($) | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Revenue from Contract with Customer [Abstract] | ||
Enterprise customer threshold | $ 100,000 | |
Revenue, performance obligation, description of payment terms | The Company’s payment terms and conditions vary by contract type, and generally range from 30 to 90 days. | |
Amortization of deferred contract costs | $ 4,573,000 | $ 3,425,000 |
Revenue - Schedule of Revenue b
Revenue - Schedule of Revenue by Customer Type (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Disaggregation of Revenue [Line Items] | ||
Total revenue | $ 133,520 | $ 117,564 |
Network Services | ||
Disaggregation of Revenue [Line Items] | ||
Total revenue | 105,996 | 94,307 |
Security | ||
Disaggregation of Revenue [Line Items] | ||
Total revenue | 24,600 | 21,208 |
Other | ||
Disaggregation of Revenue [Line Items] | ||
Total revenue | 2,924 | 2,049 |
Enterprise customers | ||
Disaggregation of Revenue [Line Items] | ||
Total revenue | 122,060 | 107,373 |
Non-enterprise customers | ||
Disaggregation of Revenue [Line Items] | ||
Total revenue | $ 11,460 | $ 10,191 |
Revenue - Schedule of Contract
Revenue - Schedule of Contract Assets and Contract Liabilities (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2024 | Mar. 31, 2023 | Dec. 31, 2023 | |
Revenue from Contract with Customer [Abstract] | |||
Contract assets | $ 0 | $ 621 | |
Contract liabilities | 41,136 | $ 38,150 | |
Contract with Customer, Liability | |||
Revenue recognized in the period from amounts included in contract liability at the beginning of the period | $ 12,760 | $ 12,221 |
Revenue - Remaining Performance
Revenue - Remaining Performance Obligation (Narrative) (Details) $ in Millions | Mar. 31, 2024 USD ($) |
Revenue from Contract with Customer [Abstract] | |
Revenue performance obligation | $ 227 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenue performance obligation | $ 227 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2024-04-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Remaining performance obligation, percentage | 78% |
Remaining performance obligation, timing of satisfaction | 12 months |
Revenue - Schedule of Costs to
Revenue - Schedule of Costs to Obtain Contracts (Details) - USD ($) $ in Thousands | Mar. 31, 2024 | Dec. 31, 2023 |
Revenue from Contract with Customer [Abstract] | ||
Deferred contract costs, net | $ 59,011 | $ 61,981 |
Investments and Fair Value Me_3
Investments and Fair Value Measurements - Schedule of Cash, Cash Equivalents, and Marketable Securities (Details) - USD ($) $ in Thousands | Mar. 31, 2024 | Dec. 31, 2023 | Mar. 31, 2023 |
Debt Securities, Available-for-sale [Line Items] | |||
Total cash and cash equivalents | $ 150,809 | $ 107,921 | $ 348,463 |
Total marketable securities, current | 178,677 | 214,799 | |
Total marketable securities, non-current | 1,743 | 6,088 | |
Total marketable securities | 180,420 | 220,887 | |
Total cash and cash equivalents and marketable securities | 331,229 | 328,808 | |
U.S. Treasury securities | |||
Debt Securities, Available-for-sale [Line Items] | |||
Total marketable securities, current | 21,799 | 73,448 | |
Total marketable securities | 21,799 | 73,448 | |
Corporate notes and bonds | |||
Debt Securities, Available-for-sale [Line Items] | |||
Total marketable securities, current | 83,789 | 105,566 | |
Total marketable securities, non-current | 1,743 | 5,999 | |
Total marketable securities | 85,532 | 111,565 | |
Commercial paper | |||
Debt Securities, Available-for-sale [Line Items] | |||
Total marketable securities, current | 63,111 | 25,934 | |
Total marketable securities | 63,111 | 25,934 | |
Agency bonds | |||
Debt Securities, Available-for-sale [Line Items] | |||
Total marketable securities, current | 9,978 | 9,851 | |
Total marketable securities | 9,978 | 9,851 | |
Asset-backed securities | |||
Debt Securities, Available-for-sale [Line Items] | |||
Total marketable securities, non-current | 0 | 89 | |
Total marketable securities | 89 | ||
Cash | |||
Debt Securities, Available-for-sale [Line Items] | |||
Total cash and cash equivalents | 19,621 | 21,269 | |
U.S. Treasury securities | |||
Debt Securities, Available-for-sale [Line Items] | |||
Total cash and cash equivalents | 1,800 | 52,830 | |
Money market funds | |||
Debt Securities, Available-for-sale [Line Items] | |||
Total cash and cash equivalents | 124,417 | 21,166 | |
Commercial paper | |||
Debt Securities, Available-for-sale [Line Items] | |||
Total cash and cash equivalents | $ 4,971 | $ 12,656 |
Investments and Fair Value Me_4
Investments and Fair Value Measurements - Schedule of Available-For-Sale Investments (Details) - USD ($) $ in Thousands | Mar. 31, 2024 | Dec. 31, 2023 |
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | $ 312,036 | $ 287,307 |
Gross Unrealized Gain | 30 | 23 |
Gross Unrealized Loss | (458) | (957) |
Fair Value | 311,608 | 286,373 |
U.S. Treasury securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 21,806 | 73,444 |
Gross Unrealized Gain | 0 | 8 |
Gross Unrealized Loss | (7) | (4) |
Fair Value | 21,799 | 73,448 |
Corporate notes and bonds | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 85,880 | 112,487 |
Gross Unrealized Gain | 30 | 9 |
Gross Unrealized Loss | (378) | (931) |
Fair Value | 85,532 | 111,565 |
Commercial paper | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 63,174 | 25,946 |
Gross Unrealized Gain | 0 | 0 |
Gross Unrealized Loss | (63) | (12) |
Fair Value | 63,111 | 25,934 |
Asset-backed securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 89 | |
Gross Unrealized Gain | 0 | |
Gross Unrealized Loss | 0 | |
Fair Value | 89 | |
Agency bonds | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 9,984 | 9,854 |
Gross Unrealized Gain | 0 | 0 |
Gross Unrealized Loss | (6) | (3) |
Fair Value | 9,978 | 9,851 |
Money market funds | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 124,417 | |
Gross Unrealized Gain | 0 | |
Gross Unrealized Loss | 0 | |
Fair Value | 124,417 | |
U.S. Treasury securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 1,800 | 52,824 |
Gross Unrealized Gain | 0 | 6 |
Gross Unrealized Loss | 0 | 0 |
Fair Value | 1,800 | 52,830 |
Commercial paper | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 4,975 | 12,663 |
Gross Unrealized Gain | 0 | 0 |
Gross Unrealized Loss | (4) | (7) |
Fair Value | $ 4,971 | $ 12,656 |
Investments and Fair Value Me_5
Investments and Fair Value Measurements - Schedule of Financial Assets and Liabilities Measured and Recorded at Fair Value on a Recurring Basis (Details) - USD ($) $ in Thousands | Mar. 31, 2024 | Dec. 31, 2023 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total cash equivalents | $ 131,188 | $ 86,652 |
Marketable Securities | 180,420 | 220,887 |
Total restricted cash | 150 | 150 |
Total financial assets | 311,758 | 307,689 |
U.S. Treasury securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Marketable Securities | 21,799 | 73,448 |
Corporate notes and bonds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Marketable Securities | 85,532 | 111,565 |
Commercial paper | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Marketable Securities | 63,111 | 25,934 |
Asset-backed securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Marketable Securities | 89 | |
Agency bonds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Marketable Securities | 9,978 | 9,851 |
Money market funds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total cash equivalents | 124,417 | 21,166 |
Total restricted cash | 150 | 150 |
U.S. Treasury securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total cash equivalents | 1,800 | 52,830 |
Commercial paper | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total cash equivalents | 4,971 | 12,656 |
Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total cash equivalents | 124,417 | 21,166 |
Marketable Securities | 0 | 0 |
Total restricted cash | 150 | 150 |
Total financial assets | 124,567 | 21,316 |
Level 1 | U.S. Treasury securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Marketable Securities | 0 | 0 |
Level 1 | Corporate notes and bonds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Marketable Securities | 0 | 0 |
Level 1 | Commercial paper | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Marketable Securities | 0 | 0 |
Level 1 | Asset-backed securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Marketable Securities | 0 | |
Level 1 | Agency bonds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Marketable Securities | 0 | 0 |
Level 1 | Money market funds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total cash equivalents | 124,417 | 21,166 |
Total restricted cash | 150 | 150 |
Level 1 | U.S. Treasury securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total cash equivalents | 0 | 0 |
Level 1 | Commercial paper | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total cash equivalents | 0 | 0 |
Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total cash equivalents | 6,771 | 65,486 |
Marketable Securities | 180,420 | 220,887 |
Total restricted cash | 0 | 0 |
Total financial assets | 187,191 | 286,373 |
Level 2 | U.S. Treasury securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Marketable Securities | 21,799 | 73,448 |
Level 2 | Corporate notes and bonds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Marketable Securities | 85,532 | 111,565 |
Level 2 | Commercial paper | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Marketable Securities | 63,111 | 25,934 |
Level 2 | Asset-backed securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Marketable Securities | 89 | |
Level 2 | Agency bonds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Marketable Securities | 9,978 | 9,851 |
Level 2 | Money market funds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total cash equivalents | 0 | 0 |
Total restricted cash | 0 | 0 |
Level 2 | U.S. Treasury securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total cash equivalents | 1,800 | 52,830 |
Level 2 | Commercial paper | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total cash equivalents | 4,971 | 12,656 |
Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total cash equivalents | 0 | 0 |
Marketable Securities | 0 | 0 |
Total restricted cash | 0 | 0 |
Total financial assets | 0 | 0 |
Level 3 | U.S. Treasury securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Marketable Securities | 0 | 0 |
Level 3 | Corporate notes and bonds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Marketable Securities | 0 | 0 |
Level 3 | Commercial paper | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Marketable Securities | 0 | 0 |
Level 3 | Asset-backed securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Marketable Securities | 0 | |
Level 3 | Agency bonds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Marketable Securities | 0 | 0 |
Level 3 | Money market funds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total cash equivalents | 0 | 0 |
Total restricted cash | 0 | 0 |
Level 3 | U.S. Treasury securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total cash equivalents | 0 | 0 |
Level 3 | Commercial paper | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total cash equivalents | $ 0 | $ 0 |
Investments and Fair Value Me_6
Investments and Fair Value Measurements - Narrative (Details) - USD ($) $ in Millions | Mar. 31, 2024 | Dec. 31, 2023 |
Fair Value Disclosures [Abstract] | ||
Restricted cash | $ 0.2 | $ 0.2 |
Balance Sheet Information - Sch
Balance Sheet Information - Schedule of Property and Equipment, Net (Details) - USD ($) $ in Thousands | Mar. 31, 2024 | Dec. 31, 2023 |
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | $ 341,657 | $ 333,911 |
Accumulated depreciation and amortization | (164,083) | (157,303) |
Property and equipment, net | 177,574 | 176,608 |
Computer and networking equipment | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | 228,835 | 224,313 |
Leasehold improvements | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | 8,605 | 8,605 |
Furniture and fixtures | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | 2,150 | 2,142 |
Office equipment | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | 1,228 | 1,228 |
Internal-use software | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | 100,839 | 97,623 |
Property and equipment, net | $ 68,200 | $ 62,600 |
Balance Sheet Information - Nar
Balance Sheet Information - Narrative (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2024 | Mar. 31, 2023 | Dec. 31, 2023 | |
Property, Plant and Equipment [Line Items] | |||
Depreciation and amortization | $ 13,300 | $ 12,000 | |
Property and equipment, net | 177,574 | $ 176,608 | |
Internal-use software | |||
Property, Plant and Equipment [Line Items] | |||
Depreciation and amortization | 3,900 | $ 2,900 | |
Property and equipment, net | 68,200 | 62,600 | |
Computer and networking equipment | |||
Property, Plant and Equipment [Line Items] | |||
Finance lease, right-of-use asset, before accumulated amortization | 74,600 | 74,700 | |
Finance lease, right-of-use asset, accumulated amortization | $ 43,500 | $ 40,100 |
Balance Sheet Information - S_2
Balance Sheet Information - Schedule of Other Assets (Details) - USD ($) $ in Thousands | Mar. 31, 2024 | Dec. 31, 2023 |
Balance Sheet Related Disclosures [Abstract] | ||
Deferred contract costs, net | $ 59,011 | $ 61,981 |
Advance payment for purchase of property and equipment | 20,485 | 24,509 |
Other assets | 4,548 | 4,289 |
Total other assets | $ 84,044 | $ 90,779 |
Balance Sheet Information - S_3
Balance Sheet Information - Schedule of Accrued Expenses (Details) - USD ($) $ in Thousands | Mar. 31, 2024 | Dec. 31, 2023 |
Balance Sheet Related Disclosures [Abstract] | ||
Accrued compensation and related benefits | $ 13,046 | $ 14,918 |
Accrued bonus | 2,930 | 24,614 |
Accrued colocation and bandwidth costs | 10,771 | 14,362 |
Other tax liabilities | 4,071 | 4,344 |
Other accrued expenses | 4,737 | 3,580 |
Total accrued expenses | $ 35,555 | $ 61,818 |
Balance Sheet Information - S_4
Balance Sheet Information - Schedule of Other Current Liabilities (Details) - USD ($) $ in Thousands | Mar. 31, 2024 | Dec. 31, 2023 |
Balance Sheet Related Disclosures [Abstract] | ||
Deferred revenue | $ 38,240 | $ 33,824 |
Accrued computer and networking equipment | 1,460 | 1,673 |
Holdback payable | 3,771 | 3,771 |
Other current liabilities | 1,162 | 1,271 |
Total other current liabilities | $ 44,633 | $ 40,539 |
Balance Sheet Information - S_5
Balance Sheet Information - Schedule of Accumulated Other Comprehensive Income (Loss) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||
Beginning balance | $ 979,488 | $ 955,158 |
Other comprehensive income | 487 | 3,692 |
Ending balance | 991,806 | 958,555 |
Foreign Currency Translation | ||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||
Beginning balance | (12) | (577) |
Other comprehensive income | 0 | 84 |
Ending balance | (12) | (493) |
Available-for-sale investments | ||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||
Beginning balance | (996) | (8,709) |
Other comprehensive income | 487 | 3,608 |
Ending balance | (509) | (5,101) |
Accumulated Other Comprehensive Income (Loss) | ||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||
Beginning balance | (1,008) | (9,286) |
Other comprehensive income | 487 | 3,692 |
Ending balance | $ (521) | $ (5,594) |
Leases - Narrative (Details)
Leases - Narrative (Details) - USD ($) | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Lessee, Lease, Description [Line Items] | ||
Sublease income | $ 400,000 | $ 300,000 |
Impairment of operating lease right-of-use assets | 0 | $ 0 |
Lease not yet commenced, commitment amount | $ 2,000,000 | |
Lease not yet commenced, term of contract | 3 years | |
Minimum | ||
Lessee, Lease, Description [Line Items] | ||
Remaining lease terms, operating (in years) | 1 year | |
Subleases, remaining lease terms (in years) | 1 year | |
Maximum | ||
Lessee, Lease, Description [Line Items] | ||
Remaining lease terms, operating (in years) | 6 years | |
Remaining lease terms, finance (in years) | 1 year | |
Subleases, remaining lease terms (in years) | 6 years |
Leases - Schedule of Lease Cost
Leases - Schedule of Lease Costs (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Leases [Abstract] | ||
Operating lease cost | $ 6,606 | $ 7,201 |
Variable lease cost | 4,247 | 3,576 |
Total operating lease costs | 10,853 | 10,777 |
Amortization of assets under finance lease | 3,595 | 3,623 |
Interest | 162 | 439 |
Total finance lease costs | $ 3,757 | $ 4,062 |
Leases - Schedule of Other Info
Leases - Schedule of Other Information (Details) | Mar. 31, 2024 | Dec. 31, 2023 |
Weighted Average Remaining Lease Term (in years): | ||
Operating leases | 3 years 4 months 6 days | 3 years 5 months 23 days |
Finance leases | 9 months 25 days | 1 year |
Weighted Average Discount Rate: | ||
Operating leases | 6.24% | 6.03% |
Finance leases | 4.67% | 4.67% |
Leases - Schedule of Lease Matu
Leases - Schedule of Lease Maturity (Details) $ in Thousands | Mar. 31, 2024 USD ($) |
Operating Leases | |
Remaining 2024 | $ 20,820 |
2025 | 22,187 |
2026 | 19,969 |
2027 | 11,286 |
2028 | 2,996 |
Thereafter | 1,836 |
Total future minimum lease payments | 79,094 |
Less: imputed interest | (7,686) |
Total liability | 71,408 |
Finance Leases | |
Remaining 2024 | 11,029 |
2025 | 1,617 |
2026 | 0 |
2027 | 0 |
2028 | 0 |
Thereafter | 0 |
Total future minimum lease payments | 12,646 |
Less: imputed interest | (232) |
Total liability | $ 12,414 |
Goodwill and Intangible Asset_2
Goodwill and Intangible Assets - Narrative (Details) - USD ($) | 3 Months Ended | ||
Mar. 31, 2024 | Mar. 31, 2023 | Dec. 31, 2023 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |||
Goodwill | $ 670,356,000 | $ 670,356,000 | |
Amortization of intangible assets | 4,899,000 | $ 5,175,000 | |
Payments to acquire intangible assets | 0 | 0 | |
Impairment of intangible assets | $ 0 | $ 0 |
Goodwill and Intangible Asset_3
Goodwill and Intangible Assets - Schedule of Intangible Assets, Net (Details) - USD ($) $ in Thousands | Mar. 31, 2024 | Dec. 31, 2023 |
Finite-Lived Intangible Assets [Line Items] | ||
Gross carrying value | $ 128,884 | $ 128,884 |
Accumulated amortization | (71,308) | (66,409) |
Net carrying value | 57,576 | 62,475 |
Customer relationships | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross carrying value | 69,860 | 69,860 |
Accumulated amortization | (30,696) | (28,473) |
Net carrying value | 39,164 | 41,387 |
Developed technology | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross carrying value | 50,130 | 50,130 |
Accumulated amortization | (34,939) | (32,424) |
Net carrying value | 15,191 | 17,706 |
Trade names | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross carrying value | 3,910 | 3,910 |
Accumulated amortization | (3,580) | (3,542) |
Net carrying value | 330 | 368 |
Internet protocol addresses | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross carrying value | 4,984 | 4,984 |
Accumulated amortization | (2,093) | (1,970) |
Net carrying value | $ 2,891 | $ 3,014 |
Goodwill and Intangible Asset_4
Goodwill and Intangible Assets - Schedule of Expected Amortization Expense of Intangible Assets (Details) - USD ($) $ in Thousands | Mar. 31, 2024 | Dec. 31, 2023 |
Goodwill and Intangible Assets Disclosure [Abstract] | ||
Remainder of 2024 | $ 14,699 | |
2025 | 16,976 | |
2026 | 9,193 | |
2027 | 9,051 | |
2028 | 6,892 | |
Thereafter | 765 | |
Net carrying value | $ 57,576 | $ 62,475 |
Debt Instruments - Senior Secur
Debt Instruments - Senior Secured Credit Facilities Agreement (Narrative) (Details) - Credit Agreement | 3 Months Ended | ||||||
Jun. 28, 2023 | Feb. 16, 2021 USD ($) | Mar. 31, 2024 USD ($) | Mar. 31, 2023 USD ($) | Apr. 30, 2024 USD ($) | Apr. 29, 2024 USD ($) | Dec. 31, 2023 USD ($) | |
Debt Instrument [Line Items] | |||||||
Debt facility, maximum borrowing amount | $ 100,000,000 | ||||||
Transaction costs | $ 600,000 | ||||||
Basis spread adjustment | 0.10% | ||||||
Debt covenant, adjusted quick ratio, minimum requirement | 1.25 | ||||||
Debt covenant, adjusted quick ratio, minimum threshold to trigger revenue growth covenant requirement | 1.75 | ||||||
Amounts drawn on line of credit during the period | $ 0 | $ 0 | |||||
Amount of debt outstanding | $ 0 | $ 0 | |||||
Subsequent Event | |||||||
Debt Instrument [Line Items] | |||||||
Debt facility, maximum borrowing amount | $ 60,000,000 | $ 100,000,000 | |||||
Subsequent Event | Letter of Credit | |||||||
Debt Instrument [Line Items] | |||||||
Debt facility, maximum borrowing amount | 10,000,000 | ||||||
Subsequent Event | Bridge Loan | |||||||
Debt Instrument [Line Items] | |||||||
Debt facility, maximum borrowing amount | $ 20,000,000 | ||||||
Minimum | |||||||
Debt Instrument [Line Items] | |||||||
Line of credit, unused capacity, commitment fee percentage | 0.20% | ||||||
Maximum | |||||||
Debt Instrument [Line Items] | |||||||
Line of credit, unused capacity, commitment fee percentage | 0.25% | ||||||
LIBOR | Minimum | |||||||
Debt Instrument [Line Items] | |||||||
Basis spread on variable rate | 1.75% | ||||||
LIBOR | Maximum | |||||||
Debt Instrument [Line Items] | |||||||
Basis spread on variable rate | 2% | ||||||
SOFR | Minimum | |||||||
Debt Instrument [Line Items] | |||||||
Basis spread on variable rate | 1.75% | ||||||
SOFR | Maximum | |||||||
Debt Instrument [Line Items] | |||||||
Basis spread on variable rate | 2% | ||||||
Base Rate | Minimum | |||||||
Debt Instrument [Line Items] | |||||||
Basis spread on variable rate | 0.75% | ||||||
Base Rate | Maximum | |||||||
Debt Instrument [Line Items] | |||||||
Basis spread on variable rate | 1% |
Debt Instruments - Convertible
Debt Instruments - Convertible Senior Notes (Narrative) (Details) - 2026 Convertible Notes $ / shares in Units, $ in Millions | 3 Months Ended | |||
Mar. 05, 2021 USD ($) | Mar. 31, 2024 d $ / shares | Dec. 31, 2023 USD ($) | May 25, 2022 USD ($) | |
Debt Instrument [Line Items] | ||||
Issuance of convertible note, net of issuance costs | $ 930 | |||
Debt instrument, convertible, conversion ratio | 0.0097272 | |||
Debt instrument, convertible, conversion price (in US dollar per share) | $ / shares | $ 102.80 | |||
Fastly Conversion Option | ||||
Debt Instrument [Line Items] | ||||
Debt instrument, convertible, threshold percentage of stock price trigger | 130% | |||
Debt instrument, convertible, threshold trading days | d | 20 | |||
Debt instrument, convertible, threshold consecutive trading days | d | 30 | |||
Holder Conversion Option One | ||||
Debt Instrument [Line Items] | ||||
Debt instrument, convertible, threshold percentage of stock price trigger | 130% | |||
Debt instrument, convertible, threshold trading days | d | 20 | |||
Debt instrument, convertible, threshold consecutive trading days | d | 30 | |||
Holder Conversion Option Two | ||||
Debt Instrument [Line Items] | ||||
Debt instrument, convertible, threshold percentage of stock price trigger | 98% | |||
Debt instrument, convertible, threshold trading days | d | 5 | |||
Debt instrument, convertible, threshold consecutive trading days | d | 10 | |||
Convertible Debt | ||||
Debt Instrument [Line Items] | ||||
Debt instrument, face amount | $ 948.8 | |||
Interest rate, stated percentage | 0% | |||
Debt instrument, face amount, additional principal issuable | $ 123.8 | |||
Discount and transaction costs | $ 18.6 | |||
Debt instrument, repurchased face amount | $ 367.3 | $ 235 | ||
Debt instrument, repurchase amount | 309.1 | 176.4 | ||
Debt repurchase transaction costs | $ 2 | $ 0.7 | ||
Convertible Debt | Fastly Conversion Option | ||||
Debt Instrument [Line Items] | ||||
Debt instrument, redemption price, percentage | 100% | |||
Convertible Debt | Fundamental Change | ||||
Debt Instrument [Line Items] | ||||
Debt instrument, redemption price, percentage | 100% |
Debt Instruments - Schedule of
Debt Instruments - Schedule of Carrying Values of Debt Agreements (Details) - Convertible Debt - 2026 Convertible Notes - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Dec. 31, 2023 | |
Debt Instrument [Line Items] | ||
Effective interest rate | 0.38% | |
Principal amount | $ 346,489 | $ 346,489 |
Less: unamortized debt issuance costs | (2,652) | (2,982) |
Less: current portion of long-term debt | 0 | 0 |
Long-term debt, less current portion | $ 343,837 | $ 343,507 |
Debt Instruments - Narrative (D
Debt Instruments - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | ||
Mar. 31, 2024 | Mar. 31, 2023 | Dec. 31, 2023 | |
Debt Disclosure [Abstract] | |||
Interest expense | $ 0.4 | $ 0.8 | |
Total estimated fair value of the notes | $ 314.4 | $ 301.4 |
Commitments and Contingencies -
Commitments and Contingencies - Schedule of Purchase Commitments (Details) $ in Thousands | Mar. 31, 2024 USD ($) |
Long-term Purchase Commitment [Line Items] | |
Remainder of 2024 | $ 42,334 |
2025 | 12,217 |
2026 | 11,191 |
2027 | 111 |
2028 | 40 |
Thereafter | 0 |
Total | 65,893 |
Cost of Revenue Commitments | |
Long-term Purchase Commitment [Line Items] | |
Remainder of 2024 | 37,203 |
2025 | 7,418 |
2026 | 8,122 |
2027 | 111 |
2028 | 40 |
Thereafter | 0 |
Total | 52,894 |
Operating Expense Commitments | |
Long-term Purchase Commitment [Line Items] | |
Remainder of 2024 | 5,131 |
2025 | 4,799 |
2026 | 3,069 |
2027 | 0 |
2028 | 0 |
Thereafter | 0 |
Total | $ 12,999 |
Commitments and Contingencies_2
Commitments and Contingencies - Narrative (Details) - USD ($) $ in Millions | Mar. 31, 2024 | Dec. 31, 2023 |
Commitments and Contingencies Disclosure [Abstract] | ||
Sales and use tax liability | $ 4.1 | $ 4.3 |
Stockholders' Equity - Equity I
Stockholders' Equity - Equity Incentive Plans (Narrative) (Details) | 3 Months Ended | |
Mar. 31, 2024 plan shares | Dec. 31, 2023 shares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Number of equity incentive plans | plan | 4 | |
Common stock, shares issued (in shares) | 136,500,000 | 133,000,000 |
Common stock, shares outstanding (in shares) | 136,500,000 | 133,000,000 |
Signal Sciences 2014 Equity Stock Options Plan | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Unvested stock options assumed (in shares) | 251,754 | |
2019 Equity Incentive Plan | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Common stock, shares available for future issuance (in shares) | 12,000,000 | 8,900,000 |
Stockholders' Equity - Stock Op
Stockholders' Equity - Stock Options (Narrative) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Stock-based compensation expense | $ 31,821 | $ 28,151 |
Stock options | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Stock-based compensation expense | $ 600 | $ 700 |
Stock options | 2011 Equity Incentive Plan | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Award expiration period | 10 years | |
Award vesting period | 4 years | |
Stock options | 2011 Equity Incentive Plan | First Year | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Award vesting percentage | 25% | |
Stock options | 2011 Equity Incentive Plan | Remaining Period | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Award vesting period | 36 months |
Stockholders' Equity - Schedule
Stockholders' Equity - Schedule of Stock Option Activity (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 12 Months Ended |
Mar. 31, 2024 | Dec. 31, 2023 | |
Shares | ||
Options outstanding, beginning balance (in shares) | 2,710 | |
Granted (in shares) | 0 | |
Exercised (in shares) | (71) | |
Cancelled/forfeited (in shares) | 0 | |
Options outstanding, ending balance (in shares) | 2,639 | 2,710 |
Vested and exercisable (in shares) | 2,110 | |
Weighted- Average Exercise Price | ||
Options outstanding, weighted-average exercise price, beginning of period (in US dollar per share) | $ 8.14 | |
Granted, weighted-average exercise price (in US dollar per share) | 0 | |
Exercised, weighted-average exercise price (in US dollar per share) | 1.58 | |
Cancelled/forfeited, weighted-average exercise price (in US dollar per share) | 0 | |
Options outstanding, weighted-average exercise price, end of period (in US dollar per share) | 8.32 | $ 8.14 |
Vested and exercisable, weighted-average exercise price (in US dollar per share) | $ 6.28 | |
Stock Option Activity, Additional Disclosures | ||
Weighted-average remaining contractual period | 4 years 10 months 24 days | 5 years 1 month 6 days |
Vested and exercisable, weighted average contractual term | 3 years 8 months 12 days | |
Aggregate intrinsic value | $ 15,255 | $ 26,383 |
Vested and exercisable, aggregate intrinsic value | $ 15,255 |
Stockholders' Equity - RSUs (Na
Stockholders' Equity - RSUs (Narrative) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Stock-based compensation expense | $ 31,821 | $ 28,151 |
RSUs | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Stock-based compensation expense | $ 24,500 | $ 23,600 |
RSUs | Minimum | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Award vesting period | 3 years | |
RSUs | Maximum | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Award vesting period | 4 years | |
RSUs | First Year | Minimum | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Award vesting period | 3 years | |
Award vesting percentage | 25% | |
RSUs | First Year | Maximum | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Award vesting period | 4 years | |
Award vesting percentage | 33% | |
RSUs | Remaining Period | Minimum | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Award vesting period | 24 months | |
RSUs | Remaining Period | Maximum | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Award vesting period | 36 months |
Stockholders' Equity - Schedu_2
Stockholders' Equity - Schedule of RSU, PSU, MPSUs Activity (Details) shares in Thousands | 3 Months Ended |
Mar. 31, 2024 $ / shares shares | |
RSUs | |
Number of Shares | |
Beginning balance (in shares) | shares | 11,244 |
Granted (in shares) | shares | 3,320 |
Vested (in shares) | shares | (3,258) |
Cancelled/forfeited (in shares) | shares | (230) |
Ending balance (in shares) | shares | 11,076 |
Weighted-Average Grant Date Fair Value Per Share | |
Beginning balance (in US dollar per share) | $ / shares | $ 17.46 |
Granted (in US dollar per share) | $ / shares | 13.96 |
Vested (in US dollar per share) | $ / shares | 16.34 |
Cancelled/forfeited (in US dollar per share) | $ / shares | 21.95 |
Ending balance (in US dollar per share) | $ / shares | $ 16.65 |
PSUs | |
Number of Shares | |
Beginning balance (in shares) | shares | 732 |
Granted (in shares) | shares | 909 |
Vested (in shares) | shares | (162) |
Cancelled/forfeited (in shares) | shares | (263) |
Ending balance (in shares) | shares | 1,216 |
Weighted-Average Grant Date Fair Value Per Share | |
Beginning balance (in US dollar per share) | $ / shares | $ 16.49 |
Granted (in US dollar per share) | $ / shares | 12.60 |
Vested (in US dollar per share) | $ / shares | 16.14 |
Cancelled/forfeited (in US dollar per share) | $ / shares | 16.05 |
Ending balance (in US dollar per share) | $ / shares | $ 13.72 |
MPSUs | |
Number of Shares | |
Beginning balance (in shares) | shares | 1,471 |
Granted (in shares) | shares | 0 |
Vested (in shares) | shares | 0 |
Cancelled/forfeited (in shares) | shares | (158) |
Ending balance (in shares) | shares | 1,313 |
Weighted-Average Grant Date Fair Value Per Share | |
Beginning balance (in US dollar per share) | $ / shares | $ 6.46 |
Granted (in US dollar per share) | $ / shares | 0 |
Vested (in US dollar per share) | $ / shares | 0 |
Cancelled/forfeited (in US dollar per share) | $ / shares | 6.69 |
Ending balance (in US dollar per share) | $ / shares | $ 6.45 |
Stockholders' Equity - Performa
Stockholders' Equity - Performance-Based Restricted Stock Units (PSUs) (Narrative) (Details) - USD ($) $ in Thousands, shares in Millions | 1 Months Ended | 3 Months Ended | |
Feb. 29, 2024 | Mar. 31, 2024 | Mar. 31, 2023 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Stock-based compensation expense | $ 31,821 | $ 28,151 | |
Bonus Program | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Issuance of restricted stock units related to bonus (in shares) | 1.9 | ||
Stock issued during period, value, restricted stock award, bonus program | $ 26,800 | ||
Bonus Program | Performance Target Payout Level One | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Payout of performance-based restricted stock units, percentage | 50% | ||
Bonus Program | Performance Target Payout Level Two | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Payout of performance-based restricted stock units, percentage | 100% | ||
Bonus Program | Performance Target Payout Level Three | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Payout of performance-based restricted stock units, percentage | 150% | ||
PSUs | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Stock-based compensation expense | 1,200 | 300 | |
PSUs | Bonus Program | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Stock-based compensation expense | $ 6,500 | $ 2,000 |
Stockholders' Equity - Market-B
Stockholders' Equity - Market-Based Performance Stock Units (MPSU) (Narrative) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Stock-based compensation expense | $ 31,821 | $ 28,151 |
MPSUs | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Stock-based compensation expense | $ 700 | $ 1,600 |
Stockholders' Equity - Employee
Stockholders' Equity - Employee Stock Purchase Program (ESPP) (Narrative) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Stock-based compensation expense | $ 31,821 | $ 28,151 |
Shares issued under ESPP (in shares) | 0 | 0 |
Shares issuable pursuant to the ESPP | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Maximum employee contribution as a percentage of salary | 15% | |
Offering period duration | 6 months | |
Purchase price of common stock, percent | 85% | |
Stock-based compensation expense | $ 1,200 | $ 1,300 |
Stockholders' Equity - Schedu_3
Stockholders' Equity - Schedule of Stock-Based Compensation Expense (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Stock-based compensation expense | $ 31,821 | $ 28,151 |
Share-based payment arrangement, amount capitalized | 2,942 | 1,286 |
Liability Classified Awards | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Stock-based compensation expense | 6,500 | 2,000 |
Cost of revenue | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Stock-based compensation expense | 2,779 | 2,681 |
Research and development | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Stock-based compensation expense | 10,323 | 11,481 |
Sales and marketing | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Stock-based compensation expense | 7,843 | 6,705 |
General and administrative | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Stock-based compensation expense | $ 10,876 | $ 7,284 |
Net Loss Per Share Attributab_3
Net Loss Per Share Attributable to Common Stockholders - Schedule of Computation of Basic and Diluted Net Loss Per Share of Common Stock (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Earnings Per Share [Abstract] | ||
Net loss attributable to common stockholders, basic | $ (43,427) | $ (44,687) |
Net loss attributable to common stockholders, diluted | $ (43,427) | $ (44,687) |
Weighted-average shares used in computing net loss per share attributable to common stockholders, basic (in shares) | 134,587 | 125,418 |
Weighted-average shares used in computing net loss per share attributable to common stockholders, diluted (in shares) | 134,587 | 125,418 |
Net loss per share attributable to common stockholders, basic (in US dollar per share) | $ (0.32) | $ (0.36) |
Net loss per share attributable to common stockholders, diluted (in US dollar per share) | $ (0.32) | $ (0.36) |
Net Loss Per Share Attributab_4
Net Loss Per Share Attributable to Common Stockholders - Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share (Details) - shares shares in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Antidilutive securities (in shares) | 20,164 | 25,063 |
Stock options | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Antidilutive securities (in shares) | 2,639 | 2,362 |
RSUs | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Antidilutive securities (in shares) | 11,076 | 11,799 |
PSUs | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Antidilutive securities (in shares) | 1,216 | 822 |
MPSUs | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Antidilutive securities (in shares) | 1,313 | 2,161 |
Shares issuable pursuant to the ESPP | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Antidilutive securities (in shares) | 550 | 581 |
Convertible senior notes (if-converted) | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Antidilutive securities (in shares) | 3,370 | 7,338 |
Income Taxes (Details)
Income Taxes (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Income Tax Disclosure [Abstract] | ||
Income tax expense | $ 347 | $ 135 |
Information About Revenue and_3
Information About Revenue and Geographic Areas (Details) - USD ($) $ in Thousands | Mar. 31, 2024 | Dec. 31, 2023 |
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Total long-lived assets | $ 231,994 | $ 231,820 |
United States | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Total long-lived assets | 166,770 | 166,413 |
All other countries | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Total long-lived assets | $ 65,224 | $ 65,407 |
Subsequent Event (Details)
Subsequent Event (Details) - Credit Agreement - USD ($) | Apr. 30, 2024 | Apr. 29, 2024 | Feb. 16, 2021 |
Subsequent Event [Line Items] | |||
Debt facility, maximum borrowing amount | $ 100,000,000 | ||
Subsequent Event | |||
Subsequent Event [Line Items] | |||
Debt facility, maximum borrowing amount | $ 60,000,000 | $ 100,000,000 | |
Subsequent Event | Letter of Credit | |||
Subsequent Event [Line Items] | |||
Debt facility, maximum borrowing amount | 10,000,000 | ||
Subsequent Event | Bridge Loan | |||
Subsequent Event [Line Items] | |||
Debt facility, maximum borrowing amount | $ 20,000,000 |