Rapid7 (RPD) 10-Q 7 Nov 24 2024 Q3 Quarterly report Financial data

Cover Page

Cover Page - shares	9 Months Ended
	Sep. 30, 2024	Oct. 31, 2024
Cover [Abstract]
Document Type	10-Q
Document Quarterly Report	true
Document Period End Date	Sep. 30, 2024
Document Transition Report	false
Entity File Number	001-37496
Entity Registrant Name	RAPID7, INC.
Entity Incorporation, State or Country Code	DE
Entity Tax Identification Number	35-2423994
Entity Address, Address Line One	120 Causeway Street
Entity Address, City or Town	Boston,
Entity Address, State or Province	MA
Entity Address, Postal Zip Code	02114
City Area Code	617
Local Phone Number	247-1717
Title of 12(b) Security	Common Stock, $0.01 par value per share
Trading Symbol	RPD
Security Exchange Name	NASDAQ
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Large Accelerated Filer
Entity Small Business	false
Entity Emerging Growth Company	false
Entity Shell Company	false
Entity Common Stock, Shares Outstanding		63,206,602
Entity Central Index Key	0001560327
Current Fiscal Year End Date	--12-31
Document Fiscal Year Focus	2024
Document Fiscal Period Focus	Q3
Amendment Flag	false

Condensed Consolidated Balance

Condensed Consolidated Balance Sheets (Unaudited) - USD ($) $ in Thousands	Sep. 30, 2024	Dec. 31, 2023
Current assets:
Cash and cash equivalents	$ 222,571	$ 213,629
Short-term investments	221,122	169,544
Accounts receivable, net of allowance for credit losses of $1,591 and $951 at September 30, 2024 and December 31, 2023, respectively	141,891	164,862
Deferred contract acquisition and fulfillment costs, current portion	49,710	45,008
Prepaid expenses and other current assets	37,328	41,407
Total current assets	672,622	634,450
Long-term investments	60,382	56,171
Property and equipment, net	33,936	39,642
Operating lease right-of-use assets	50,756	54,693
Deferred contract acquisition and fulfillment costs, non-current portion	72,392	76,601
Goodwill	575,165	536,351
Intangible assets, net	90,748	94,546
Other assets	18,530	12,894
Total assets	1,574,531	1,505,348
Current liabilities:
Accounts payable	6,005	15,812
Accrued expenses and other current liabilities	82,319	85,025
Convertible senior notes, current portion, net	45,816	0
Operating lease liabilities, current portion	15,849	13,452
Deferred revenue, current portion	423,640	455,503
Total current liabilities	573,629	569,792
Convertible senior notes non-current portion, net	887,362	929,996
Operating lease liabilities, non-current portion	72,555	81,130
Deferred revenue, non-current portion	28,239	32,577
Other long-term liabilities	19,050	10,032
Total liabilities	1,580,835	1,623,527
Stockholders’ deficit:
Preferred stock, $0.01 par value per share; 100,000,000 shares authorized at September 30, 2024 and December 31, 2023; 0 shares issued and outstanding at September 30, 2024 and December 31, 2023	0	0
Common stock, $0.01 par value per share; 100,000,000 shares authorized at September 30, 2024 and December 31, 2023; $63,747,524 and 62,283,630 shares issued at September 30, 2024 and December 31, 2023, respectively; $63,177,945 and $61,714,051 shares outstanding at September 30, 2024 and December 31, 2023, respectively	632	617
Treasury stock, at cost, 569,579 shares at September 30, 2024 and December 31, 2023	(4,765)	(4,765)
Additional paid-in-capital	978,898	894,630
Accumulated other comprehensive income	1,929	1,344
Accumulated deficit	(982,998)	(1,010,005)
Total stockholders’ deficit	(6,304)	(118,179)
Total liabilities and stockholders’ deficit	$ 1,574,531	$ 1,505,348

Condensed Consolidated Balanc_2

Condensed Consolidated Balance Sheets (Unaudited) (Parenthetical) - USD ($) $ in Thousands	Sep. 30, 2024	Dec. 31, 2023
Statement of Financial Position [Abstract]
Allowance for doubtful accounts receivable	$ 1,591	$ 951
Preferred stock, par value (in dollars per share)	$ 0.01	$ 0.01
Preferred stock, shares authorized (in shares)	100,000,000	100,000,000
Preferred stock, shares issued (in shares)	0	0
Preferred stock, shares outstanding (in shares)	0	0
Common stock, par value (in dollars per share)	$ 0.01	$ 0.01
Common stock, shares authorized (in shares)	100,000,000	100,000,000
Common stock, shares issued (in shares)	63,747,524	62,283,630
Common stock, shares outstanding (in shares)	63,177,945	61,714,051
Treasury stock, at cost (in shares)	569,579	569,579

Condensed Consolidated Statemen

Condensed Consolidated Statements of Operations (Unaudited) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2024	Sep. 30, 2023	Sep. 30, 2024	Sep. 30, 2023
Revenue:
Total revenue	$ 214,654	$ 198,843	$ 627,746	$ 572,439
Cost of revenue:
Total cost of revenue	63,017	57,830	184,768	171,993
Total gross profit	151,637	141,013	442,978	400,446
Operating expenses:
Research and development	44,565	39,940	125,611	137,048
Sales and marketing	74,521	75,699	225,121	239,322
General and administrative	18,590	17,866	60,837	64,961
Impairment of long-lived assets	0	3,553	0	30,784
Restructuring	0	19,996	0	19,996
Total operating expenses	137,676	157,054	411,569	492,111
Income (loss) from operations	13,961	(16,041)	31,409	(91,665)
Other income (expense), net:
Interest income	5,571	2,545	15,512	6,000
Interest expense	(2,837)	(56,515)	(8,180)	(62,005)
Other income (expense), net	2,811	(4,518)	681	(18,093)
Income (loss) before income taxes	19,506	(74,529)	39,422	(165,763)
Provision for income taxes	2,952	2,082	12,415	3,545
Net income (loss)	$ 16,554	$ (76,611)	$ 27,007	$ (169,308)
Net income (loss) per share, basic (in dollars per share)	$ 0.26	$ (1.25)	$ 0.43	$ (2.80)
Net income (loss) per share, diluted (in dollars per share)	$ 0.22	$ (1.25)	$ 0.36	$ (2.80)
Weighted-average common shares outstanding, basic (in Shares)	62,898,078	61,065,157	62,389,482	60,506,082
Weighted-average common shares outstanding, diluted (in Shares)	74,537,085	61,065,157	74,225,110	60,506,082
Product subscriptions
Revenue:
Total revenue	$ 205,593	$ 189,876	$ 602,578	$ 545,349
Cost of revenue:
Total cost of revenue	56,653	51,261	166,290	150,597
Professional services
Revenue:
Total revenue	9,061	8,967	25,168	27,090
Cost of revenue:
Total cost of revenue	$ 6,364	$ 6,569	$ 18,478	$ 21,396

Condensed Consolidated Statem_2

Condensed Consolidated Statements of Comprehensive Income (Loss) (Unaudited) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2024	Sep. 30, 2023	Sep. 30, 2024	Sep. 30, 2023
Statement of Comprehensive Income [Abstract]
Net income (loss)	$ 16,554	$ (76,611)	$ 27,007	$ (169,308)
Other comprehensive income (loss):
Change in fair value of cash flow hedges	1,840	(1,120)	882	(481)
Adjustment for net (gains)/losses realized on cash flow hedges and included in net income (loss), net of taxes	(183)	(49)	(656)	531
Total change in unrealized gains (losses) on cash flow hedges	1,657	(1,169)	226	50
Change in unrealized gains on investments	1,123	97	359	539
Total other comprehensive income (loss)	2,780	(1,072)	585	589
Comprehensive income (loss)	$ 19,334	$ (77,683)	$ 27,592	$ (168,719)

Condensed Consolidated Statem_3

Condensed Consolidated Statements of Changes in Stockholders' Deficit (Unaudited) - USD ($) $ in Thousands	Total	Common stock	Treasury stock	Additional paid-in-capital	Accumulated other comprehensive loss	Accumulated deficit
Common stock, beginning balance (in shares) at Dec. 31, 2022		59,720,000
Beginning balance at Dec. 31, 2022	$ (120,074)	$ 597	$ (4,764)	$ 746,249	$ (1,411)	$ (860,745)
Treasury stock, beginning balance (in shares) at Dec. 31, 2022			487,000
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Stock-based compensation expense	84,513			84,513
Issuance of common stock under employee stock purchase plan (in shares)		330,000
Issuance of common stock under employee stock purchase plan	11,323	$ 4		11,319
Vesting of restricted stock units (in shares)		1,139,000
Vesting of restricted stock units	0	$ 10		(10)
Shares withheld for employee taxes (in shares)		(82,000)
Shares withheld for employee taxes	(4,012)			(4,012)
Issuance of common stock upon exercise of stock options (in shares)		208,000
Issuance of common stock upon exercise of stock options	2,984	$ 2		2,982
Issuance of common stock in relation to an acquisition (in shares)		107,000
Issuance of common stock in relation to an acquisition	0	$ 1		(1)
Repurchase of common stock in relation to acquisition (in shares)			83,000
Repurchase of common stock in relation to acquisition	0		$ (1)	1
Reclassification of 2023 capped calls from equity to derivative asset	33,029			33,029
Purchase of capped calls related to convertible senior notes	(36,570)			(36,570)
Repurchase and inducement of convertible senior notes	35,881			35,881
Other comprehensive gain (loss)	589				589
Net income (loss)	(169,308)					(169,308)
Common stock, ending balance (in shares) at Sep. 30, 2023		61,422,000
Ending balance at Sep. 30, 2023	(161,645)	$ 614	$ (4,765)	873,381	(822)	(1,030,053)
Treasury stock, ending balance (in shares) at Sep. 30, 2023			570,000
Common stock, beginning balance (in shares) at Jun. 30, 2023		60,940,000
Beginning balance at Jun. 30, 2023	(111,022)	$ 609	$ (4,765)	846,326	250	(953,442)
Treasury stock, beginning balance (in shares) at Jun. 30, 2023			570,000
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Stock-based compensation expense	23,719			23,719
Issuance of common stock under employee stock purchase plan (in shares)		152,000
Issuance of common stock under employee stock purchase plan	5,149	$ 2		5,147
Vesting of restricted stock units (in shares)		338,000
Vesting of restricted stock units	0	$ 3		(3)
Shares withheld for employee taxes (in shares)		(29,000)
Shares withheld for employee taxes	(1,421)			(1,421)
Issuance of common stock upon exercise of stock options (in shares)		21,000
Issuance of common stock upon exercise of stock options	302			302
Purchase of capped calls related to convertible senior notes	(36,570)			(36,570)
Repurchase and inducement of convertible senior notes	35,881			35,881
Other comprehensive gain (loss)	(1,072)				(1,072)
Net income (loss)	(76,611)					(76,611)
Common stock, ending balance (in shares) at Sep. 30, 2023		61,422,000
Ending balance at Sep. 30, 2023	$ (161,645)	$ 614	$ (4,765)	873,381	(822)	(1,030,053)
Treasury stock, ending balance (in shares) at Sep. 30, 2023			570,000
Common stock, beginning balance (in shares) at Dec. 31, 2023	61,714,051	61,714,000
Beginning balance at Dec. 31, 2023	$ (118,179)	$ 617	$ (4,765)	894,630	1,344	(1,010,005)
Treasury stock, beginning balance (in shares) at Dec. 31, 2023	569,579		570,000
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Stock-based compensation expense	$ 77,381			77,381
Issuance of common stock under employee stock purchase plan (in shares)		292,000
Issuance of common stock under employee stock purchase plan	9,246	$ 3		9,243
Vesting of restricted stock units (in shares)		1,123,000
Vesting of restricted stock units	0	$ 11		(11)
Shares withheld for employee taxes (in shares)		(83,000)
Shares withheld for employee taxes	(3,883)			(3,883)
Issuance of common stock upon exercise of stock options (in shares)		131,000
Issuance of common stock upon exercise of stock options	1,539	$ 1		1,538
Other comprehensive gain (loss)	585				585
Net income (loss)	$ 27,007					27,007
Common stock, ending balance (in shares) at Sep. 30, 2024	63,177,945	63,177,000
Ending balance at Sep. 30, 2024	$ (6,304)	$ 632	$ (4,765)	978,898	1,929	(982,998)
Treasury stock, ending balance (in shares) at Sep. 30, 2024	569,579		570,000
Common stock, beginning balance (in shares) at Jun. 30, 2024		62,702,000
Beginning balance at Jun. 30, 2024	$ (52,920)	$ 628	$ (4,765)	951,620	(851)	(999,552)
Treasury stock, beginning balance (in shares) at Jun. 30, 2024			570,000
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Stock-based compensation expense	23,739			23,739
Issuance of common stock under employee stock purchase plan (in shares)		144,000
Issuance of common stock under employee stock purchase plan	4,201	$ 1		4,200
Vesting of restricted stock units (in shares)		341,000
Vesting of restricted stock units	0	$ 3		(3)
Shares withheld for employee taxes (in shares)		(21,000)
Shares withheld for employee taxes	(794)			(794)
Issuance of common stock upon exercise of stock options (in shares)		11,000
Issuance of common stock upon exercise of stock options	136			136
Other comprehensive gain (loss)	2,780				2,780
Net income (loss)	$ 16,554					16,554
Common stock, ending balance (in shares) at Sep. 30, 2024	63,177,945	63,177,000
Ending balance at Sep. 30, 2024	$ (6,304)	$ 632	$ (4,765)	$ 978,898	$ 1,929	$ (982,998)
Treasury stock, ending balance (in shares) at Sep. 30, 2024	569,579		570,000

Condensed Consolidated Statem_4

Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2024	Sep. 30, 2023
Cash flows from operating activities:
Net income (loss)	$ 27,007	$ (169,308)
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization	33,457	34,528
Amortization of debt issuance costs	3,325	3,061
Stock-based compensation expense	76,896	84,836
Impairment of long-lived assets	0	30,784
Change in fair value of derivative assets	0	15,511
Deferred income taxes	1,840	0
Induced conversion expense	0	53,889
Other	(4,534)	5,626
Changes in assets and liabilities:
Accounts receivable	22,432	12,428
Deferred contract acquisition and fulfillment costs	(493)	(9,488)
Prepaid expenses and other assets	6,062	5,433
Accounts payable	(10,450)	(1,255)
Accrued expenses	(17,413)	(17,968)
Deferred revenue	(37,112)	(6,367)
Other liabilities	6,880	(898)
Net cash provided by operating activities	107,897	40,812
Cash flows from investing activities:
Business acquisitions, net of cash acquired	(37,198)	(34,841)
Purchases of property and equipment	(2,242)	(3,999)
Capitalization of internal-use software	(10,414)	(13,033)
Purchases of investments	(242,494)	(194,013)
Sales and maturities of investments	192,500	100,700
Other investing activities	360	0
Net cash used in investing activities	(99,488)	(145,186)
Cash flows from financing activities:
Proceeds from issuance of convertible senior notes, net of issuance costs paid of $7,200	0	292,800
Purchase of capped calls related to convertible senior notes	0	(36,570)
Payments for repurchase of convertible senior notes	0	(199,998)
Payments related to business acquisitions	0	(2,250)
Proceeds from capped call settlement	0	17,518
Taxes paid related to net share settlement of equity awards	(3,883)	(4,012)
Proceeds from employee stock purchase plan	9,246	11,323
Proceeds from stock option exercises	1,436	2,984
Net cash provided by financing activities	6,799	81,795
Effect of exchange rate changes on cash ,cash equivalents and restricted cash	770	(2,010)
Net increase (decrease) in cash, cash equivalents and restricted cash	15,978	(24,589)
Cash, cash equivalents and restricted cash, beginning of period	214,130	207,804
Cash, cash equivalents and restricted cash, end of period	230,108	183,215
Supplemental cash flow information:
Cash paid for interest on convertible senior notes	5,840	1,165
Cash paid for income taxes, net of refunds	7,073	4,087
Reconciliation of cash, cash equivalents and restricted cash:
Cash and cash equivalents	222,571	182,727
Restricted cash included in other assets and prepaid expenses and other current assets	7,537	488
Total cash, cash equivalents and restricted cash	$ 230,108	$ 183,215

Condensed Consolidated Statem_5

Condensed Consolidated Statements of Cash Flows (Unaudited) (Parenthetical) - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2024	Sep. 30, 2023
Convertible Debt
Payments of debt issuance costs	$ 7,200	$ 7,200

Description of Business, Basis

Description of Business, Basis of Presentation and Consolidation and Significant Accounting Policies	9 Months Ended
	Sep. 30, 2024
Accounting Policies [Abstract]
Description of Business, Basis of Presentation and Consolidation and Significant Accounting Policies	Note 1. Description of Business, Basis of Presentation and Consolidation and Significant Accounting Policies Description of Business Rapid7, Inc. and subsidiaries (“we,” “us” or “our”) are advancing security with visibility, analytics, and automation delivered through our platform solutions. Our solutions simplify the complex, allowing security teams to work more effectively with IT and development to reduce vulnerabilities, monitor for malicious behavior, investigate and shut down attacks, and automate routine tasks. Basis of Presentation and Consolidation The accompanying unaudited condensed consolidated financial statements have been prepared by us in accordance with accounting principles generally accepted in the United States of America (“GAAP”), as well as pursuant to the rules and regulations of the Securities and Exchange Commission (“SEC”), regarding interim financial reporting. Accordingly, certain information and note disclosures normally included in the financial statements prepared in accordance with GAAP have been condensed or omitted pursuant to such rules and regulations. These condensed consolidated financial statements should be read in conjunction with the consolidated financial statements and related notes included in our Annual Report on Form 10-K for the year ended December 31, 2023 filed with the SEC on February 26, 2024. The condensed consolidated financial statements include our results of operations and those of our wholly-owned subsidiaries and reflect all adjustments (consisting solely of normal, recurring adjustments) which are, in the opinion of management, necessary for a fair statement of results for the interim periods presented. All intercompany transactions and balances have been eliminated in consolidation. The results of operations for the three and nine months ended September 30, 2024 are not necessarily indicative of the results to be expected for any future period or the entire fiscal year. Use of Estimates The preparation of consolidated financial statements in conformity with GAAP requires management to make estimates, judgments and assumptions that affect the amounts reported in the consolidated financial statements and accompanying notes. The management estimates include, but are not limited to the determination of standalone selling prices in revenue transactions with multiple performance obligations, the estimated period of benefit for deferred contract acquisition costs, the useful lives and recoverability of long-lived assets, the valuation for credit losses, the valuation of stock-based compensation, the fair value of assets acquired and liabilities assumed in business combinations, the valuation of contingent consideration, the incremental borrowing rate for operating leases and the valuation for deferred tax assets. We base our estimates on historical experience and on various other assumptions that we believe are reasonable. Actual results could differ from those estimates. Significant Accounting Policies Our significant accounting policies are described in Note 2, Summary of Significant Accounting Policies , to the consolidated financial statements included in our Annual Report on Form 10-K for the year ended December 31, 2023. Except for the inclusion of a description of contingent consideration within our Business Combinations policy, as noted below, there have been no changes to the significant accounting policies included in our Annual Report on Form 10-K for the year ended December 31, 2023. Business Combinations We allocate the fair value of purchase consideration to the tangible asset acquired, liabilities assumed, and intangible assets acquired based on their estimated fair values. The excess of the fair value of purchase consideration over the fair value these identifiable assets and liabilities is recorded as goodwill. During the measurement period, which may be up to one year from the acquisition date, we may record adjustments to the fair value of these assets acquired and liabilities assumed with the corresponding offset to goodwill. Upon the conclusion of the final determination of the fair value of assets acquired or liabilities assumed any subsequent adjustments are recorded to the consolidated statements of operations. Determining the fair value of the tangible assets acquired, liabilities assumed and intangible assets requires management to make significant estimates and assumptions, especially with respect to intangible assets. Significant estimates in valuing certain intangible assets include, but are not limited to, cash flows that an asset is expected to generate in the future, technology migration curves, discount rates, and useful lives. While we use our best estimates and judgements, our estimates are inherently uncertain and subject to refinement. Contingent consideration arising from business combinations is recorded at fair value as a liability on the acquisition date and remeasured at each reporting date. Changes in fair value are recorded in general and administrative expense in the consolidated statements of operations. Determining the fair value of the contingent consideration each period requires management to make assumptions and judgments. These estimates involve inherent uncertainties, and if different assumptions had been used, the fair value of contingent consideration could have been materially different from the amounts recorded. Acquisition-related transaction costs are expensed as incurred. Restricted Cash As of September 30, 2024, we had $7.5 million of restricted cash recorded on our condensed consolidated balance sheet in prepaid expenses and other current assets and other assets in letters of credit outstanding as collateral for certain office space leases. Recent Accounting Pronouncements Accounting Pronouncements Not Yet Effective In December 2023, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2023-09, Improvements to Income Tax Disclosures (“ASU 2023-09”). This new guidance is designed to enhance the transparency and decision usefulness of income tax disclosures. The amendments of this update are related to the rate reconciliation and income taxes paid, requiring (1) consistent categories and greater disaggregation of information in the rate reconciliation and (2) income taxes paid disaggregated by jurisdiction. ASU 2023-09 is effective for fiscal years beginning after December 15, 2024. Early adoption is permitted. We do not plan to early adopt this standard. We are currently evaluating the effect of adopting this standard on our disclosures. In November 2023, the FASB issued ASU 2023-07, Segment Reporting (Topic 280), Improvements to Reportable Segment Disclosures (“ASU 2023-07”) , to improve reportable segment disclosure requirements through enhanced disclosures about significant segment expenses on an interim and annual basis. All disclosure requirements of ASU 2023-07 are required for entities with a single reportable segment. ASU 2023-07 is effective for fiscal years beginning after December 15, 2023, and interim periods for the fiscal years beginning after December 15, 2024, and should be applied on a retrospective basis to all periods presented. Early adoption is permitted. We do not plan to early adopt this standard. We are currently evaluating the effect of adopting this standard on our disclosures.

Revenue from Contracts with Cus

Revenue from Contracts with Customers	9 Months Ended
	Sep. 30, 2024
Revenue from Contract with Customer [Abstract]
Revenue from Contracts with Customers	Note 2. Revenue from Contracts with Customers We generate revenue primarily from: (1) product subscriptions from the sale of cloud-based subscriptions, managed services, term software licenses, content subscriptions and maintenance and support associated with our software licenses and (2) professional services from the sale of our deployment and training services related to our solutions, incident response services, penetration testing and security advisory services. Product Subscriptions Product subscriptions consists primarily of revenue from our cloud-based subscription, managed services offerings, term software licenses, content subscriptions and maintenance and support associated with our software licenses. • We generate cloud-based subscription revenue primarily from sales of subscriptions to access our cloud platform, together with related support services to our customers. These arrangements do not provide the customer with the right to take possession of our software operating on our cloud platform at any time. Instead, customers are granted continuous access to our cloud platform over the contractual period. Revenue is recognized over time on a ratable basis over the contract term beginning on the date that our service is made available to the customer. Our cloud-based subscription contracts generally have annual or multi-year contractual terms which are billed in advance of the annual subscription period and are non-cancellable. • Managed services offerings consist of fees generated when we operate our software and provide our capabilities on behalf of our customers. Revenue is recognized on a ratable basis over the contract term beginning on the date that our service is made available to the customer. Our managed services offerings generally have annual or multi-year contractual terms which are billed in advance of the annual subscription period and are non-cancellable. • For our term software licenses where the utility to the customer is dependent on the continued delivery of content subscriptions, we recognize the license revenue over the contractual term of the content subscription. • Content subscriptions and our maintenance and support services are sold with our term software licenses. Revenue related to our content subscriptions associated with our software licenses is recognized ratably over the contractual period. Professional Services All of our professional services are considered distinct performance obligations when sold stand alone or with other products. The majority of our professional services contracts have terms of one year or less. For the majority of these contracts, revenue is recognized over time based upon the proportion of work performed to date. Contract Balances Contract liabilities consist of deferred revenue and include payments received in advance of performance under the contract. Such amounts are recognized as revenue over the contractual period consistent with the above methodology. For the three months ended September 30, 2024 and 2023, we recognized revenue of $184.6 million and $174.3 million, respectively, and for the nine months ended September 30, 2024 and 2023, we recognized $398.3 million and $366.5 million, respectively, that was included in the corresponding contract liability balance at the beginning of the periods presented. Deferred revenue that will be realized during the succeeding 12-month period is recorded as current, and the remaining deferred revenue is recorded as non-current. We receive payments from customers based upon contractual billing schedules. Accounts receivable are recorded when the right to consideration becomes unconditional. Unbilled receivables include amounts related to our contractual right to consideration for both completed and partially completed performance obligations that have not been invoiced. If the right to consideration is based on satisfaction of another performance obligation in the contract other than the passage of time, we record a contract asset. As of September 30, 2024 and December 31, 2023, unbilled receivables of $3.6 million and $2.0 million, respectively, are included in prepaid expenses and other current assets in our consolidated balance sheet. As of September 30, 2024 and December 31, 2023, we had no contract assets recorded on our condensed consolidated balance sheet. Transaction Price Allocated to the Remaining Performance Obligations The following table includes estimated revenue expected to be recognized in the future related to performance obligations that are unsatisfied or partially unsatisfied as of September 30, 2024. The estimated revenues do not include unexercised contract renewals. Next Twelve Months Thereafter (in thousands) Product subscriptions $ 556,284 $ 268,636 Professional services 16,785 6,410 Total $ 573,069 $ 275,046 Note 8. Deferred Contract Acquisitions and Fulfillment Costs Deferred contract acquisition and fulfillment costs, which primarily consist of capitalized sales commissions, for the nine months ended September 30, 2024 and 2023 was as follows: Nine Months Ended September 30, 2024 2023 (in thousands) Beginning balance $ 121,609 $ 103,075 Capitalization of contract acquisition and fulfillment costs 39,850 39,904 Amortization of deferred contract acquisition and fulfillment costs (39,357) (30,416) Ending balance $ 122,102 $ 112,563

Business Combinations

Business Combinations	9 Months Ended
	Sep. 30, 2024
Business Combination, Asset Acquisition, and Joint Venture Formation [Abstract]
Business Combinations	Note 3. Business Combinations Noetic Cyber, Inc. On July 3, 2024, we acquired Noetic Cyber, Inc, (“Noetic”) a provider of cyber asset attack surface management, to extend Rapid7’s security operations platform by unlocking more accessible and accurate asset inventory in order to provide customers more comprehensive visibility to their attack surface, for a purchase price with an aggregate fair value of $51.0 million. The purchase consideration consisted of $38.6 million in cash paid at closing, $12.1 million of contingent consideration and $0.4 million of deferred cash payments. The deferred cash payments will be held by Rapid7 to satisfy certain post-closing purchase price adjustments. Subject to the terms of the merger agreement, we are required to pay consideration of up to $20.0 million to Noetic shareholders based on the achievement of certain performance targets (the “Earnout Consideration”), measured annually upon the first, second and third anniversaries of the closing date of the transaction (the “Earnout Period”). If all performance targets are achieved, approximately $13.1 million of Earnout Consideration will be paid in cash, and the remaining $6.9 million of Earnout Consideration will be issued to certain employees in the form of shares of our common stock subject to continued employment requirements over the Earnout Period. The approximate $6.9 million of the Earnout Consideration that is subject to continued employment will be recognized as stock-based compensation expense over the required employment period. The fair value of the portion of the Earnout Consideration that is not subject to continued employment is included as part of purchase consideration at the date of the acquisition. As of July 3, 2024, we determined the fair value of the contingent purchase consideration to be $12.1 million. The fair value of the contingent purchase consideration will be reassessed each reporting period and any required adjustment will be recorded to general and administrative expense. As of September 30, 2024 , the fair value of the contingent purchase consideration was $12.2 million of which $6.8 million was recorded within accrued expenses and other current liabilities and $5.4 million was recorded within other liabilities in our condensed consolidated balance sheet. In the three and nine months ended September 30, 2024 , we recorded $0.2 million of accretion expense related to the contingent purchase consideration to general and administrative expense. In connection with the acquisition, we expect to issue an aggregate value of $2.3 million of our common stock to two key employees of Noetic in three installments over a 36-month period following the closing date of the transaction, subject to continued employment requirements (the “Key Employee Consideration”) and therefore will be recognized as stock-based compensation expense over the required employment period. The number of shares to be issued at each issuance date for both the Earnout Consideration and the Key Employee Consideration shares will be determined by dividing the aggregate value by the fair market value of our common stock on the issuance date, and therefore will be liability-classified until the final issuance dates. In the three and nine months ended September 30, 2024 , we recognized stock-based compensation expense related to such shares in the amount of $0.7 million. The following table summarizes the preliminary allocation of purchase price to the estimated fair value of the assets acquired and liabilities assumed at the acquisition date (in thousands): Consideration: Cash $ 38,597 Deferred cash consideration 397 Contingent consideration 12,055 Fair value of total consideration transferred $ 51,049 Recognized amount of identifiable assets acquired and liabilities assumed: Cash and cash equivalents $ 1,296 Accounts receivable 510 Prepaid and other current assets 102 Property and equipment, net 19 Accrued expenses and other current liabilities (220) Deferred revenue (910) Other long-term liabilities (62) Intangible asset 11,500 Total identifiable net assets assumed $ 12,235 Goodwill 38,814 Total purchase price allocation $ 51,049 We identified developed technology as the sole acquired intangible asset. The estimated fair value of the developed technology intangible asset was $11.5 million which was based on a valuation using a probability weighted expected return model ( “ PWERM ” ). The estimated useful life of the developed technology is 7 years. The excess of the purchase price over the tangible assets acquired, identifiable intangible asset acquired and assumed liabilities was recorded as goodwill. We believe that the amount of goodwill reflects the expected synergistic benefits of being able to leverage the integration of the technology acquired with our existing product offerings and being able to successfully market and sell these new features to our customer base. The goodwill was allocated to our one reporting unit. The acquired goodwill and intangible asset were not deductible for tax purposes. In the three and nine months ended September 30, 2024, we recorded $0.1 million and $0.4 million, respectively, of acquisition-related transaction costs related to the acquisition of Noetic to general and administrative expense. Our revenue and net loss attributable to the Noetic business for the three and nine months ended September 30, 2024 was not material. Minerva Labs Ltd. On March 14, 2023, we acquired Minerva Labs Ltd. (“Minerva”), a leading provider of anti-evasion and ransomware prevention technology, for a purchase price with an aggregate fair value of $34.6 million. The purchase consideration consisted of $35 million paid in cash at closing and a $(0.4) million receivable for purchase price adjustments. The assets acquired and liabilities assumed were recorded at their estimated fair values as of the acquisition date. The excess of the purchase price over the assets acquired and liabilities assumed was recorded as goodwill. The fair value of net assets acquired, goodwill and intangible assets were $13.9 million, $20.7 million and $12.8 million, respectively. The goodwill was allocated to our one reporting unit. The acquired goodwill and intangible assets were not deductible for tax purposes. In the first quarter of 2024, we sold acquired intellectual property through a non-cash intercompany transaction, which for the three and nine months ended September 30, 2024 resulted in $4.6 million of current tax expense and $1.8 million o f deferred tax expense in Israel.

Investments

Investments	9 Months Ended
	Sep. 30, 2024
Investments, Debt and Equity Securities [Abstract]
Investments	Note 4. Investments Our investments, which are all classified as available-for-sale, consisted of the following: As of September 30, 2024 Amortized Gross Gross Fair Value (in thousands) Description: U.S government agencies $ 280,757 $ 787 $ (40) $ 281,504 Total $ 280,757 $ 787 $ (40) $ 281,504 As of December 31, 2023 Amortized Gross Gross Fair Value (in thousands) Description: U.S government agencies $ 222,820 $ 467 $ (65) $ 223,222 Agency bonds 2,500 — (7) 2,493 Total $ 225,320 $ 467 $ (72) $ 225,715 As of September 30, 2024, our available-for-sale investments had maturities ranging fro m 1 to 20 months. As of December 31, 2023, our available-for-sale investments had maturities ranging from 1 to 18 months.

Fair Value Measurements

Fair Value Measurements	9 Months Ended
	Sep. 30, 2024
Fair Value Disclosures [Abstract]
Fair Value Measurements	Note 5. Fair Value Measurements We measure certain financial assets and liabilities at fair value. Fair value is determined based upon the exit price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants, as determined by either the principal market or the most advantageous market. Inputs used in the valuation techniques to derive fair values are classified based on a three-level hierarchy, as follows: • Level 1 : Observable inputs that reflect quoted prices (unadjusted) for identical assets or liabilities in active markets. • Level 2 : Observable inputs other than Level 1 prices such as quoted prices for similar assets or liabilities; quoted prices in markets with insufficient volume or infrequent transactions (less active markets); or model-derived valuations in which all significant inputs are observable or can be derived principally from or corroborated by observable market data for substantially the full term of the assets or liabilities. • Level 3 : Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the asset or liability. We consider an active market to be one in which transactions for the asset or liability occur with sufficient frequency and volume to provide pricing information on an ongoing basis, and consider an inactive market to be one in which there are infrequent or few transactions for the asset or liability, the prices are not current, or price quotations vary substantially either over time or among market makers. The following table presents our financial assets and liabilities measured and recorded at fair value on a recurring basis using the above input categories: As of September 30, 2024 Level 1 Level 2 Level 3 Total (in thousands) Description: Assets: U.S. government agencies $ 281,504 $ — $ — $ 281,504 Foreign currency forward contracts designated as cash flow hedges (prepaid expenses and other current assets and other assets) — 1,559 — 1,559 Total assets $ 281,504 $ 1,559 $ — $ 283,063 Liabilities: Contingent consideration (other current liabilities and other long-term liabilities) — — 12,238 12,238 Foreign currency forward contracts designated as cash flow hedges (other current liabilities and other long-term liabilities) — 66 — 66 Total liabilities $ — $ 66 $ 12,238 $ 12,304 As of December 31, 2023 Level 1 Level 2 Level 3 Total (in thousands) Description: Assets: U.S. government agencies $ 223,222 $ — $ — $ 223,222 Agency bonds — 2,493 — 2,493 Foreign currency forward contracts designated as cash flow hedges (prepaid expenses and other current assets and other assets) — 1,322 — 1,322 Total assets $ 223,222 $ 3,815 $ — $ 227,037 Liabilities: Foreign currency forward contracts designated as cash flow hedges (other current liabilities) — 55 — 55 Total liabilities $ — $ 55 $ — $ 55 Cash and cash equivalents are excluded from the table above as carrying amounts reported in our condensed consolidated balance sheet equal or approximate fair value. As of September 30, 2024, the fair value of our 2.25%, 0.25% and 1.25% convertible senior notes due 2025, 2027 and 2029, as further described in Note 10, Debt , was $45.1 million, $547.1 million and $281.9 million, respectively, based upon quoted market prices. We consider the fair value of the Notes (as defined in Note 10, Debt) to be a Level 2 measurement due to limited trading activity of the Notes. As of September 30, 2024, the fair value of our contingent consideration, as further described in Note 3, Business Combinations, was $12.2 million and is classified as a Level 3 measurement based on inputs not observable in the market.

Property and Equipment

Property and Equipment	9 Months Ended
	Sep. 30, 2024
Property, Plant and Equipment [Abstract]
Property and Equipment	Note 6. Property and Equipment Property and equipment are recorded at cost and consist of the following: September 30, December 31, 2024 2023 (in thousands) Computer equipment and software $ 28,100 $ 26,442 Furniture and fixtures 10,954 10,850 Leasehold improvements 56,878 56,151 Total 95,932 93,443 Less accumulated depreciation (61,996) (53,801) Property and equipment, net $ 33,936 $ 39,642

Goodwill and Intangibles

Goodwill and Intangibles	9 Months Ended
	Sep. 30, 2024
Goodwill and Intangible Assets Disclosure [Abstract]
Goodwill and Intangibles	Note 7. Goodwill and Intangibles Goodwill was $575.2 million and $536.4 million as of September 30, 2024 and December 31, 2023, respectively. The following table displays the changes in the gross carrying amount of goodwill: Amount (in thousands) Balance, December 31, 2023 $ 536,351 Noetic acquisition 38,814 Balance, September 30, 2024 $ 575,165 The following table presents details of our intangible assets which include acquired identifiable intangible assets and capitalized internal-use software costs: Weighted- As of September 30, 2024 As of December 31, 2023 Gross Carrying Accumulated Net Book Value Gross Carrying Accumulated Net Book Value (in thousands) Intangible assets subject to amortization: Developed technology 6.1 $ 146,855 $ (89,770) $ 57,085 $ 135,355 $ (77,031) $ 58,324 Customer relationships 4.5 12,000 (9,711) 2,289 12,000 (7,755) 4,245 Trade names 3.1 2,619 (2,514) 105 2,619 (2,379) 240 Total acquired intangible assets 161,474 (101,995) 59,479 149,974 (87,164) 62,810 Internal-use software 3.0 65,130 (33,861) 31,269 55,371 (23,635) 31,736 Total intangible assets $ 226,604 $ (135,856) $ 90,748 $ 205,345 $ (110,799) $ 94,546 Amortization expense was $8.5 million and $8.3 million for the three months ended September 30, 2024 and 2023, respectively, and $25.1 million and $23.6 million for the nine months ended September 30, 2024 and 2023, respectively. Estimated future amortization expense of the acquired identifiable intangible assets and completed capitalized internal-use software costs as of September 30, 2024 was as follows (in thousands): 2024 (for the remaining three months) $ 8,429 2025 30,900 2026 21,149 2027 9,128 2028 3,243 2029 and thereafter 7,652 Total $ 80,501 The table above excludes the impact of $10.2 million of capitalized internal-use software costs for projects that have not been completed as of September 30, 2024, and therefore, all the costs associated with these projects have not been incurred.

Deferred Contract Acquisition a

Deferred Contract Acquisition and Fulfillment Costs	9 Months Ended
	Sep. 30, 2024
Revenue from Contract with Customer [Abstract]
Deferred Contract Acquisition and Fulfillment Costs	Note 2. Revenue from Contracts with Customers We generate revenue primarily from: (1) product subscriptions from the sale of cloud-based subscriptions, managed services, term software licenses, content subscriptions and maintenance and support associated with our software licenses and (2) professional services from the sale of our deployment and training services related to our solutions, incident response services, penetration testing and security advisory services. Product Subscriptions Product subscriptions consists primarily of revenue from our cloud-based subscription, managed services offerings, term software licenses, content subscriptions and maintenance and support associated with our software licenses. • We generate cloud-based subscription revenue primarily from sales of subscriptions to access our cloud platform, together with related support services to our customers. These arrangements do not provide the customer with the right to take possession of our software operating on our cloud platform at any time. Instead, customers are granted continuous access to our cloud platform over the contractual period. Revenue is recognized over time on a ratable basis over the contract term beginning on the date that our service is made available to the customer. Our cloud-based subscription contracts generally have annual or multi-year contractual terms which are billed in advance of the annual subscription period and are non-cancellable. • Managed services offerings consist of fees generated when we operate our software and provide our capabilities on behalf of our customers. Revenue is recognized on a ratable basis over the contract term beginning on the date that our service is made available to the customer. Our managed services offerings generally have annual or multi-year contractual terms which are billed in advance of the annual subscription period and are non-cancellable. • For our term software licenses where the utility to the customer is dependent on the continued delivery of content subscriptions, we recognize the license revenue over the contractual term of the content subscription. • Content subscriptions and our maintenance and support services are sold with our term software licenses. Revenue related to our content subscriptions associated with our software licenses is recognized ratably over the contractual period. Professional Services All of our professional services are considered distinct performance obligations when sold stand alone or with other products. The majority of our professional services contracts have terms of one year or less. For the majority of these contracts, revenue is recognized over time based upon the proportion of work performed to date. Contract Balances Contract liabilities consist of deferred revenue and include payments received in advance of performance under the contract. Such amounts are recognized as revenue over the contractual period consistent with the above methodology. For the three months ended September 30, 2024 and 2023, we recognized revenue of $184.6 million and $174.3 million, respectively, and for the nine months ended September 30, 2024 and 2023, we recognized $398.3 million and $366.5 million, respectively, that was included in the corresponding contract liability balance at the beginning of the periods presented. Deferred revenue that will be realized during the succeeding 12-month period is recorded as current, and the remaining deferred revenue is recorded as non-current. We receive payments from customers based upon contractual billing schedules. Accounts receivable are recorded when the right to consideration becomes unconditional. Unbilled receivables include amounts related to our contractual right to consideration for both completed and partially completed performance obligations that have not been invoiced. If the right to consideration is based on satisfaction of another performance obligation in the contract other than the passage of time, we record a contract asset. As of September 30, 2024 and December 31, 2023, unbilled receivables of $3.6 million and $2.0 million, respectively, are included in prepaid expenses and other current assets in our consolidated balance sheet. As of September 30, 2024 and December 31, 2023, we had no contract assets recorded on our condensed consolidated balance sheet. Transaction Price Allocated to the Remaining Performance Obligations The following table includes estimated revenue expected to be recognized in the future related to performance obligations that are unsatisfied or partially unsatisfied as of September 30, 2024. The estimated revenues do not include unexercised contract renewals. Next Twelve Months Thereafter (in thousands) Product subscriptions $ 556,284 $ 268,636 Professional services 16,785 6,410 Total $ 573,069 $ 275,046 Note 8. Deferred Contract Acquisitions and Fulfillment Costs Deferred contract acquisition and fulfillment costs, which primarily consist of capitalized sales commissions, for the nine months ended September 30, 2024 and 2023 was as follows: Nine Months Ended September 30, 2024 2023 (in thousands) Beginning balance $ 121,609 $ 103,075 Capitalization of contract acquisition and fulfillment costs 39,850 39,904 Amortization of deferred contract acquisition and fulfillment costs (39,357) (30,416) Ending balance $ 122,102 $ 112,563

Derivative and Hedging Activiti

Derivative and Hedging Activities	9 Months Ended
	Sep. 30, 2024
Derivative Instruments and Hedging Activities Disclosure [Abstract]
Derivatives and Hedging Activities	Note 9. Derivative and Hedging Activities To mitigate our exposure to foreign currency fluctuations resulting from certain expenses denominated in certain foreign currencies, we enter into forward contracts that are designated as cash flow hedging instruments. These forward contracts have contractual maturities of twenty months or less, and as of September 30, 2024 and December 31, 2023, outstanding forward contracts had a total notional value of $52.4 million and $49.5 million, respectively. The notional value represents the gross amount of foreign currency that will be bought or sold upon maturity of the forward contract. During the three and nine months ended September 30, 2024, all cash flow hedges were considered effective. Refer to Note 5, Fair Value Measurements , for the fair values of our outstanding derivative instruments.

Debt

Debt	9 Months Ended
	Sep. 30, 2024
Debt Disclosure [Abstract]
Debt	Note 10. Debt Convertible Senior Notes In May 2020, we issued $230.0 million aggregate principal amount of convertible senior notes due May 1, 2025 (the “2025 Notes”), in March 2021, we issued $600.0 million aggregate principal amount of convertible senior notes due March 15, 2027 (the “2027 Notes”), and in September 2023, we issued $300.0 million aggregate principal amount of convertible senior notes due March 15, 2029 (the “2029 Notes”) (collectively, the “Notes”). In September 2023, we used $201.0 million of the proceeds from the issuance of the 2029 Notes to repurchase and retire $184.0 million aggregate principal amount of the 2025 Notes and paid accrued and unpaid interest thereon. Further details of the Notes are as follows: Issuance Maturity Date Interest Rate First Interest Payment Date Effective Interest Rate Semi-Annual Interest Payment Dates Initial Conversion Rate per $1,000 Principal Initial Conversion Price Number of Shares (in millions) 2025 Notes May 1, 2025 2.25% November 1, 2020 2.88% May 1 and November 1 16.3875 $ 61.02 0.8 2027 Notes March 15, 2027 0.25% September 15, 2021 0.67% March 15 and September 15 9.6734 $ 103.38 5.8 2029 Notes March 15, 2029 1.25% March 15, 2024 1.69% March 15 and September 15 15.4213 $ 64.85 4.6 The 2025 Notes, the 2027 Notes and the 2029 Notes are senior unsecured obligations, do not contain any financial covenants and are governed by indentures between the Company, as issuer, and U.S. Trust Company, Bank National Association, as trustee (the “Indentures”). The total net proceeds from the 2025 Notes, the 2027 Notes and the 2029 Notes offerings, after deducting initial purchase discounts and debt issuance costs, were $222.8 million, $585.0 million and $292.0 million, respectively. For additional details on the terms of our Notes, see Note 11, Debt , to the consolidated financial statements included in our Annual Report on Form 10-K for the year ended December 31, 2023. As of September 30, 2024, the 2025 Notes, the 2027 Notes and the 2029 Notes were not convertible at the option of the holders. The holders may convert the 2025 Notes, the 2027 Notes and the 2029 Notes at any time on or after November 1, 2024, December 15, 2026 and December 15, 2028, respectively, until the close of business on the second scheduled trading day immediately preceding the maturity date, regardless of the circumstances set forth above. Upon conversion, we will pay or deliver, as the case may be, cash, shares of our common stock or a combination of cash and shares of our common stock, at our election, in the manner and subject to the terms and conditions provided in the Indentures. If we undergo a fundamental change (as set forth in the Indentures) at any time prior to the maturity date, holders of the Notes will have the right, at their option, to require us to repurchase for cash all or any portion of their Notes at a repurchase price equal to 100% of the principal amount of the Notes to be repurchased, plus accrued and unpaid interest to, but excluding, the fundamental change repurchase date. In addition, following certain corporate events that occur prior to the maturity date or following our issuance of a notice of redemption, in each case as described in the Indentures, we will increase the conversion rate for a holder of the Notes who elects to convert its Notes in connection with such a corporate event or during the related redemption period in certain circumstances. Accounting for the Notes In accounting for the issuance of the Notes, the principal less debt issuance costs are recorded as debt on our condensed consolidated balance sheet. The debt issuance costs are amortized to interest expense using the effective interest method over the contractual term of the Notes. The net carrying amount of the Notes as of September 30, 2024 and December 31, 2023 was as follows (in thousands): 2025 Notes 2027 Notes 2029 Notes Principal Unamortized debt issuance costs Total Principal Unamortized debt issuance costs Total Principal Unamortized debt issuance costs Total Balance at December 31, 2023 $ 45,992 $ (404) $ 45,588 $ 600,000 $ (8,077) $ 591,923 $ 300,000 $ (7,515) $ 292,485 Amortization of debt issuance costs — 228 228 — 1,877 1,877 — 1,077 1,077 Balance at September 30, 2024 $ 45,992 $ (176) $ 45,816 $ 600,000 $ (6,200) $ 593,800 $ 300,000 $ (6,438) $ 293,562 Interest expense related to the Notes was as follows (in thousands): Three Months Ended September 30, 2024 2023 2025 Notes 2027 Notes 2029 Notes Total 2025 Notes 2027 Notes 2029 Notes Total Contractual interest expense $ 258 $ 375 $ 938 $ 1,571 $ 948 $ 375 $ 229 $ 1,552 Amortization of debt issuance costs 79 634 455 1,168 289 631 73 $ 993 Total interest expense $ 337 $ 1,009 $ 1,393 $ 2,739 $ 1,237 $ 1,006 $ 302 $ 2,545 Nine Months Ended September 30, 2024 2023 2025 Notes 2027 Notes 2029 Notes Total 2025 Notes 2027 Notes 2029 Notes Total Contractual interest expense $ 776 $ 1,125 $ 2,812 $ 4,713 $ 3,536 $ 1,125 $ 229 $ 4,890 Amortization of debt issuance costs 228 1,877 1,077 3,182 990 1,855 73 2,918 Total interest expense $ 1,004 $ 3,002 $ 3,889 $ 7,895 $ 4,526 $ 2,980 $ 302 $ 7,808 Capped Calls In connection with the offering of the 2025 Notes, the 2027 Notes and the 2029 Notes, we entered into privately negotiated capped call transactions with certain counterparties (the “2025 Capped Calls”, “2027 Capped Calls” and “2029 Capped Calls”) (collectively, the “Capped Calls”). The Capped Calls are expected to reduce potential dilution to our common stock upon conversion of a given series of notes and/or offset any cash payments that we are required to make in excess of the principal amount of converted notes of such series, as the case may be, with such reduction and/or offset subject to a cap. The Capped Calls are subject to adjustment upon the occurrence of certain specified extraordinary events affecting us, including merger events, tender offers and announcement events. In addition, the Capped Calls are subject to certain specified additional disruption events that may give rise to a termination of the Capped Calls, including nationalization, insolvency or delisting, changes in law, failures to deliver, insolvency filings and hedging disruptions. The following table sets forth other key terms and premiums paid for the Capped Calls related to each series of Notes: Capped Calls Entered into in Connection with the Issuance of the 2025 Notes Capped Calls Entered into in Connection with the Issuance of the 2027 Notes Capped Calls Entered into in Connection with the Issuance of the 2029 Notes Initial strike price, subject to certain adjustments $ 61.02 $ 103.38 $ 64.85 Cap price, subject to certain adjustments $ 93.88 $ 159.04 $ 97.88 Total premium paid (in thousands) $ 27,255 $ 76,020 $ 36,570 Expiration dates March 4, 2025 - April 29, 2025 January 1, 2027 - March 11, 2027 February 13, 2029 - March 13, 2029 For additional details on the terms of our Capped Calls, see Note 11, Debt , to the consolidated financial statements included in our Annual Report on Form 10-K for the year ended December 31, 2023. For accounting purposes, the 2025 Capped Calls, the 2027 Capped Calls and the 2029 Capped Calls are separate transactions, and not part of the terms of the 2025 Notes, the 2027 Notes and the 2029 Notes. The 2025 Capped Calls, 2027 Capped Calls and 2029 Capped Calls are recorded in stockholders' equity and are not accounted for as derivatives. Credit Agreement In April 2020, we entered into a Credit and Security Agreement (the Credit Agreement), with KeyBank National Association (as amended, in December 2021) that provides for a $100.0 million revolving credit facility, with a letter of credit sublimit of $15.0 million and an accordion feature under which we can increase the credit facility to up to $150.0 million. We incurred fees of $0.4 million in connection with entering into the Credit Agreement. The fees are recorded in other current assets on the condensed consolidated balance sheet and are amortized on a straight-line basis over the contractual term of the arrangement. The commitment fee of 0.2% per annum on the unused portion of the credit facility is expensed as incurred and included within interest expense on the condensed consolidated statement of operations. The Credit Agreement contains certain financial covenants including a requirement that we maintain specified minimum recurring revenue and liquidity amounts. The borrowings under the Credit Agreement bear interest, at our option, at a rate equal to either (i) term SOFR plus a credit spread adjustment of 0.10% per annum plus a margin of 2.50% per annum or (ii) the alternate base rate (subject to a floor), plus an applicable margin equal to 0% per annum.

Stock-Based Compensation

Stock-Based Compensation	9 Months Ended
	Sep. 30, 2024
Share-Based Payment Arrangement [Abstract]
Stock-Based Compensation	Note 11. Stock-Based Compensation ( a) General Stock-based compensation expense for restricted stock units (“RSUs”), performance-based restricted stock units (“PSUs”), stock options and purchase rights issued under our employee stock purchase plan was classified in the accompanying condensed consolidated statements of operations as follows: Three Months Ended September 30, Nine Months Ended September 30, 2024 2023 2024 2023 (in thousands) Stock-based compensation expense: Cost of revenue $ 3,001 $ 2,527 $ 8,707 $ 8,348 Research and development 9,535 8,436 25,698 30,575 Sales and marketing 6,823 7,106 21,182 23,087 General and administrative 5,235 5,699 21,309 22,826 Total stock-based compensation expense $ 24,594 $ 23,768 $ 76,896 $ 84,836 We recognize compensation cost of all awards on a straight-line basis over the applicable vesting period, which is generally three Our Compensation Committee adopted and approved the performance goals, targets and payout formulas for our 2024 and 2023 bonus plans, including permitting our executive officers and certain other employees the opportunity to receive payment of their earned bonuses in the form of common stock (in lieu of cash). During the three months ended September 30, 2024 and 2023, we recognized stock-based compensation expense related to such bonuses in the amount of $0.2 million and $50 thousand, respectively, and during the nine months ended September 30, 2024 and 2023, we recognized stock-based compensation expense in the amount of $0.5 million a nd $1.1 million, respectively, based on the probable expected performance against the pre-established corporate financial objectives as of September 30, 2024 and 2023. For employees, including executive officers, who elect to receive their bonuses in the form of common stock (in lieu of cash), the payouts are expected to be made in the form of fully vested stock awards in the first quarter of the following year pursuant to our 2015 Equity Incentive Plan, as amended. The number of shares underlying such awards is determined by dividing the dollar value of the actual bonus award payment by the closing price per share of our common stock on the date of grant. (b) Restricted Stock, Restricted Stock Units and Performance-Based Restricted Stock Units RSUs and PSUs activity during the nine months ended September 30, 2024 was as follows: Shares Weighted- Unvested balance as of December 31, 2023 2,714,426 $ 61.60 Granted 2,338,438 $ 52.37 Vested (1,122,737) $ 61.36 Forfeited (824,443) $ 59.99 Unvested balance as of September 30, 2024 3,105,684 $ 56.24 As of September 30, 2024, the unrecognized compensation expense related to our unvested RSUs and PSUs was $152.0 million. This unrecognized compensation expense will be recognized over an estimated weighted-average amortization period of 2.0 years. In January 2024, our Com pensation Committee awarded 279,570 PSUs that required the achievement of net annualized recurring revenue (“Net ARR”) and Adjusted EBITDA targets for the 2024 full-year to earn any payout. Net ARR is defined as the change in the annual value of all recurring revenue related to contracts in place at year end. In addition, the portion of the PSUs that are earned would be capped at a maximum of 200% of the target level payout and if certain net ARR or Adjusted EBITDA goals were not met, no PSUs will be earned. The PSUs have a performance period of one year and the earned PSUs will vest in three equal installments following each of the first, second and third anniversary of the vesting commencement date, subject to the participant’s continuous service as of each such date. In the three and nine months ended September 30, 2024, we recorded $0.4 million and $2.2 million, respectively, of stock-based compensation expense related to these PSUs based on estimated achievement of the performance criteria. In July 2024, our Compensation Committee awarded 19,605 PSUs that required the achievement of certain milestones related to the integration of Noetic. The PSUs have three measurement and vesting dates through September 15, 2025, subject to the participant's continuous service as of each such date. If achievement of the milestones are not met, no PSUs will be earned. In the three and nine months ended September 30, 2024, we recorded $0.3 million of stock-based compensation expense related to these PSUs based on estimated achievement of the performance criteria. (c) Stock Options Stock option activity during the nine months ended September 30, 2024 was as follows: Shares Weighted Weighted Aggregate Outstanding as of December 31, 2023 716,270 $ 12.26 1.97 $ 32,115 Granted — — Exercised (131,742) $ 11.67 $ 4,981 Forfeited/cancelled (450) $ 7.73 Outstanding as of September 30, 2024 584,078 $ 12.40 1.45 $ 16,056 Vested and exercisable as of September 30, 2024 584,078 $ 12.40 1.45 $ 16,056 (d) Employee Stock Purchase Plan Under the Rapid7, Inc. 2015 Employee Stock Purchase Plan (“ESPP”), employees may set aside up to 15% of their gross earnings, on an after-tax basis, to purchase our common stock at a discounted price, which is calculated at 85% of the lesser of: (i) the market value of our common stock at the beginning of each offering period and (ii) the market value of our common stock on the applicable purchase date. On March 15, 2024, we issued 147,445 shares of common stock to employees, with a purchase price of either $33.78 or $39.78 per share, for aggregate proceeds of $5.0 million. On September 13, 2024, we issued 144,445 shares of common stock to employees, with a purchase price of $29.08 per share, for aggregate proceeds of $4.2 million.

Net Income (Loss) per Share

Net Income (Loss) per Share	9 Months Ended
	Sep. 30, 2024
Earnings Per Share [Abstract]
Net Income (Loss) per Share	Note 12. Net Income (Loss) per Share The following table summarizes the computation of basic and diluted net income (loss) per share of our common stock for the three months September 30, 2024 and 2023: Three Months Ended September 30, Nine Months Ended September 30, 2024 2023 2024 2023 (in thousands, except share and per share data) Numerator: Net income (loss) $ 16,554 $ (76,611) $ 27,007 $ (169,308) Denominator: Weighted-average common shares outstanding, basic 62,898,078 61,065,157 62,389,482 60,506,082 Weighted-average common shares outstanding, diluted 74,537,085 61,065,157 74,225,110 60,506,082 Net income (loss) per share, basic $ 0.26 $ (1.25) $ 0.43 $ (2.80) Net income (loss) per share, diluted $ 0.22 $ (1.25) $ 0.36 (2.80) We intend to settle any conversion of our 2025 Notes, 2027 Notes and 2029 Notes in cash, shares, or a combination thereof. The dilutive impact of the Notes for our calculation of diluted net income (loss) per share is considered using the if-converted method. For the three and nine months ended September 30, 2024 and 2023, the shares underlying the Notes were not considered in the calculation of diluted net income (loss) per share as the effect would have been anti-dilutive. In connection with the issuance of the 2025 Notes, the 2027 Notes and the 2029 Notes, we entered into the 2025 Capped Calls, 2027 Capped Calls and 2029 Capped Calls, which were not included for the purpose of calculating the number of diluted shares outstanding, as their effect would have been anti-dilutive. As of September 30, 2024 and 2023, the 2025 Notes, the 2027 Notes and the 2029 Notes were not convertible at the option of the holder. We had not received any conversion notices through the issuance date of our unaudited condensed consolidated financial statements. For disclosure purposes, we have calculated the potentially dilutive effect of the conversion spread, which is included in the table below. The following potentially dilutive securities outstanding have been excluded from the computation of diluted weighted-average shares outstanding for the respective periods below because they would have been anti-dilutive: Nine Months Ended September 30, 2024 2023 Options to purchase common stock 584,078 723,632 Unvested restricted stock units 3,105,684 3,126,817 Common stock issued in conjunction to acquisitions 36,923 115,041 Shares to be issued under ESPP 18,332 20,802 Convertible senior notes 11,183,611 11,183,611 Total 14,928,628 15,169,903

Commitments and Contingencies

Commitments and Contingencies	9 Months Ended
	Sep. 30, 2024
Commitments and Contingencies Disclosure [Abstract]
Commitments and Contingencies	Note 13. Commitments and Contingencies (a) Warranty We provide limited product warranties. Historically, any payments made under these provisions have been immaterial. (b) Litigation and Claims From time to time, we may be a party to litigation or subject to claims incident to the ordinary course of business. Although the results of litigation and claims cannot be predicted with certainty, we currently believe that the final outcome of these ordinary course matters will not have a material adverse effect on our business. Regardless of the outcome, litigation can have an adverse impact on us because of defense and settlement costs, diversion of management resources and other factors. (c) Indemnification Obligations We agree to standard indemnification provisions in the ordinary course of business. Pursuant to these provisions, we agree to indemnify, hold harmless and reimburse the indemnified party for losses suffered or incurred by the indemnified party, generally our customers, in connection with any United States patent, copyright or other intellectual property infringement claim by any third party arising from the use of our products or services in accordance with the agreement or arising from our gross negligence, willful misconduct or violation of the law (provided that there is not gross or willful misconduct on the part of the other party) with respect to our products or services. The term of these indemnification provisions is generally perpetual from the time of execution of the agreement. We carry insurance that covers certain third-party claims relating to our services and limits our exposure. We have never incurred costs to defend lawsuits or settle claims related to these indemnification provisions. As permitted under Delaware law, we have entered into indemnification agreements with our officers and directors, indemnifying them for certain events or occurrences while they serve as officers or directors of the company. (d) Income Taxes From time to time, we may receive income tax assessments from taxing authorities asserting additional tax liabilities owed by the Company. During the quarter ended June 30, 2024, we received an initial assessment from the Israel Tax Authority (“ITA”) of approximately 324 million Israeli New Shekels (approximately $87 million, based upon the exchange rate between the Israeli New Shekel and the US Dollar as of September 30, 2024) related to fiscal year 2021. Based on our interpretation of the regulations and available case law, we believe that the tax positions we have taken on our filed tax return in Israel are sustainable and we intend to defend our position through all available means. As such, we have not recorded any impact of the ITA assessment in our condensed consolidated financial statements as of and for the three and nine months ended September 30, 2024. We are continuing to monitor developments related to this matter and its impact on our existing income tax reserves for all open years. If we are unsuccessful in sustaining our tax position in this matter, our financial condition and results of operations would be adversely affected.

Segment Information and Informa

Segment Information and Information about Geographic Areas	9 Months Ended
	Sep. 30, 2024
Segment Reporting [Abstract]
Segment Information and Information about Geographic Areas	Note 14. Segment Information and Information about Geographic Areas We operate in one segment. Our chief operating decision maker is our Chief Executive Officer, who makes operating decisions, assesses performance and allocates resources on a consolidated basis. Net revenues by geographic area presented based upon the location of the customer are as follows: Three Months Ended September 30, Nine Months Ended September 30, 2024 2023 2024 2023 (in thousands) North America $ 163,730 $ 155,190 $ 480,392 $ 448,753 Rest of world 50,924 43,653 147,354 123,686 Total $ 214,654 $ 198,843 $ 627,746 $ 572,439 Property and equipment, net by geographic area was as follows: As of September 30, 2024 As of December 31, 2023 (in thousands) North America $ 23,915 $ 27,609 Rest of world 10,021 12,033 Total $ 33,936 $ 39,642

Restructuring

Restructuring	9 Months Ended
	Sep. 30, 2024
Restructuring and Related Activities [Abstract]
Restructuring	Note 15. Restructuring On August 7, 2023, our board of directors approved a restructuring plan that was designed to improve operational efficiencies, reduce operating costs and better align the Company’s workforce with current business needs, top strategic priorities and key growth opportunities (collectively, the “Restructuring Plan”). The Restructuring Plan included a reduction of the Company’s workforce by approximately 16%.

Pay vs Performance Disclosure

Pay vs Performance Disclosure - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2024	Sep. 30, 2023	Sep. 30, 2024	Sep. 30, 2023
Pay vs Performance Disclosure
Net income (loss)	$ 16,554	$ (76,611)	$ 27,007	$ (169,308)

Insider Trading Arrangements

Insider Trading Arrangements	3 Months Ended	9 Months Ended
	Sep. 30, 2024 shares	Sep. 30, 2024 shares
Trading Arrangements, by Individual
Material Terms of Trading Arrangement		During the three months ended September 30, 2024, the executive officers set forth below terminated or modified a 10b5-1 equity trading plan, or adopted, terminated, or modified any “non-Rule 10b5-1 equity trading arrangement”. Name and Position Action Adoption or Transaction Date Type of Trading Arrangement Number of Shares of Common Stock to be Sold Expiration Date Corey Thomas, Chief Executive Officer (1) Adoption September 4, 2024 Rule 10b5-1* 358,620** December 31, 2025*** Christina Luconi, Chief People Officer Adoption September 13, 2024 Rule 10b5-1* 34,039** May 1, 2025*** (1) Mr. Thomas' plan includes the sale of 8,620 shares that were gifted to Ancore Foundation, Inc., a charitable foundation of which Mr. Thomas is a director. * Contract, instruction or written plan intended to satisfy the affirmative defense conditions of Rule 10b5-1(c) under the Exchange Act. ** Represents the maximum number of shares that may be sold pursuant to the Rule 10b5-1 trading arrangement in amounts and prices determined in accordance with a formula set forth in the plan. The actual number of shares sold will be dependent on the satisfaction of certain conditions as set forth in the written plan. *** The Rule 10b5-1 trading arrangement will terminate on the earlier of the date all the shares under the plan are sold and the expiration date indicated, subject to early termination for specified events set forth in the plan.
Non-Rule 10b5-1 Arrangement Adopted	false
Rule 10b5-1 Arrangement Terminated	false
Non-Rule 10b5-1 Arrangement Terminated	false
Corey Thomas [Member]
Trading Arrangements, by Individual
Name	Corey Thomas
Title	Chief Executive Officer
Rule 10b5-1 Arrangement Adopted	true
Adoption Date	September 4, 2024
Expiration Date	December 31, 2025***
Arrangement Duration	483 days
Aggregate Available	358,620	358,620
Christina Luconi [Member]
Trading Arrangements, by Individual
Name	Christina Luconi
Title	Chief People Officer
Rule 10b5-1 Arrangement Adopted	true
Adoption Date	September 13, 2024
Expiration Date	May 1, 2025***
Arrangement Duration	230 days
Aggregate Available	34,039	34,039

Description of Business, Basi_2

Description of Business, Basis of Presentation and Consolidation and Significant Accounting Policies (Policies)	9 Months Ended
	Sep. 30, 2024
Accounting Policies [Abstract]
Basis of Presentation and Consolidation	Basis of Presentation and Consolidation The accompanying unaudited condensed consolidated financial statements have been prepared by us in accordance with accounting principles generally accepted in the United States of America (“GAAP”), as well as pursuant to the rules and regulations of the Securities and Exchange Commission (“SEC”), regarding interim financial reporting. Accordingly, certain information and note disclosures normally included in the financial statements prepared in accordance with GAAP have been condensed or omitted pursuant to such rules and regulations. These condensed consolidated financial statements should be read in conjunction with the consolidated financial statements and related notes included in our Annual Report on Form 10-K for the year ended December 31, 2023 filed with the SEC on February 26, 2024. The condensed consolidated financial statements include our results of operations and those of our wholly-owned subsidiaries and reflect all adjustments (consisting solely of normal, recurring adjustments) which are, in the opinion of management, necessary for a fair statement of results for the interim periods presented. All intercompany transactions and balances have been eliminated in consolidation. The results of operations for the three and nine months ended September 30, 2024 are not necessarily indicative of the results to be expected for any future period or the entire fiscal year.
Use of Estimates	Use of Estimates
Business Combinations	Business Combinations We allocate the fair value of purchase consideration to the tangible asset acquired, liabilities assumed, and intangible assets acquired based on their estimated fair values. The excess of the fair value of purchase consideration over the fair value these identifiable assets and liabilities is recorded as goodwill. During the measurement period, which may be up to one year from the acquisition date, we may record adjustments to the fair value of these assets acquired and liabilities assumed with the corresponding offset to goodwill. Upon the conclusion of the final determination of the fair value of assets acquired or liabilities assumed any subsequent adjustments are recorded to the consolidated statements of operations. Determining the fair value of the tangible assets acquired, liabilities assumed and intangible assets requires management to make significant estimates and assumptions, especially with respect to intangible assets. Significant estimates in valuing certain intangible assets include, but are not limited to, cash flows that an asset is expected to generate in the future, technology migration curves, discount rates, and useful lives. While we use our best estimates and judgements, our estimates are inherently uncertain and subject to refinement. Contingent consideration arising from business combinations is recorded at fair value as a liability on the acquisition date and remeasured at each reporting date. Changes in fair value are recorded in general and administrative expense in the consolidated statements of operations. Determining the fair value of the contingent consideration each period requires management to make assumptions and judgments. These estimates involve inherent uncertainties, and if different assumptions had been used, the fair value of contingent consideration could have been materially different from the amounts recorded. Acquisition-related transaction costs are expensed as incurred.
Restricted Cash	Restricted Cash As of September 30, 2024, we had $7.5 million
Recent Accounting Pronouncements	Recent Accounting Pronouncements Accounting Pronouncements Not Yet Effective In December 2023, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2023-09, Improvements to Income Tax Disclosures (“ASU 2023-09”). This new guidance is designed to enhance the transparency and decision usefulness of income tax disclosures. The amendments of this update are related to the rate reconciliation and income taxes paid, requiring (1) consistent categories and greater disaggregation of information in the rate reconciliation and (2) income taxes paid disaggregated by jurisdiction. ASU 2023-09 is effective for fiscal years beginning after December 15, 2024. Early adoption is permitted. We do not plan to early adopt this standard. We are currently evaluating the effect of adopting this standard on our disclosures. In November 2023, the FASB issued ASU 2023-07, Segment Reporting (Topic 280), Improvements to Reportable Segment Disclosures (“ASU 2023-07”) , to improve reportable segment disclosure requirements through enhanced disclosures about significant segment expenses on an interim and annual basis. All disclosure requirements of ASU 2023-07 are required for entities with a single reportable segment. ASU 2023-07 is effective for fiscal years beginning after December 15, 2023, and interim periods for the fiscal years beginning after December 15, 2024, and should be applied on a retrospective basis to all periods presented. Early adoption is permitted. We do not plan to early adopt this standard. We are currently evaluating the effect of adopting this standard on our disclosures.
Revenue	Product Subscriptions Product subscriptions consists primarily of revenue from our cloud-based subscription, managed services offerings, term software licenses, content subscriptions and maintenance and support associated with our software licenses. • We generate cloud-based subscription revenue primarily from sales of subscriptions to access our cloud platform, together with related support services to our customers. These arrangements do not provide the customer with the right to take possession of our software operating on our cloud platform at any time. Instead, customers are granted continuous access to our cloud platform over the contractual period. Revenue is recognized over time on a ratable basis over the contract term beginning on the date that our service is made available to the customer. Our cloud-based subscription contracts generally have annual or multi-year contractual terms which are billed in advance of the annual subscription period and are non-cancellable. • Managed services offerings consist of fees generated when we operate our software and provide our capabilities on behalf of our customers. Revenue is recognized on a ratable basis over the contract term beginning on the date that our service is made available to the customer. Our managed services offerings generally have annual or multi-year contractual terms which are billed in advance of the annual subscription period and are non-cancellable. • For our term software licenses where the utility to the customer is dependent on the continued delivery of content subscriptions, we recognize the license revenue over the contractual term of the content subscription. • Content subscriptions and our maintenance and support services are sold with our term software licenses. Revenue related to our content subscriptions associated with our software licenses is recognized ratably over the contractual period. Professional Services All of our professional services are considered distinct performance obligations when sold stand alone or with other products. The majority of our professional services contracts have terms of one year or less. For the majority of these contracts, revenue is recognized over time based upon the proportion of work performed to date. Contract Balances Contract liabilities consist of deferred revenue and include payments received in advance of performance under the contract. Such amounts are recognized as revenue over the contractual period consistent with the above methodology. For the three months ended September 30, 2024 and 2023, we recognized revenue of $184.6 million and $174.3 million, respectively, and for the nine months ended September 30, 2024 and 2023, we recognized $398.3 million and $366.5 million, respectively, that was included in the corresponding contract liability balance at the beginning of the periods presented. Deferred revenue that will be realized during the succeeding 12-month period is recorded as current, and the remaining deferred revenue is recorded as non-current. We receive payments from customers based upon contractual billing schedules. Accounts receivable are recorded when the right to consideration becomes unconditional. Unbilled receivables include amounts related to our contractual right to consideration for both completed and partially completed performance obligations that have not been invoiced. If the right to consideration is based on satisfaction of another performance obligation in the contract other than the passage of time, we record a contract asset. As of September 30, 2024 and December 31, 2023, unbilled receivables of $3.6 million and $2.0 million, respectively, are included in prepaid expenses and other current assets in our consolidated balance sheet. As of September 30, 2024 and December 31, 2023, we had no contract assets recorded on our condensed consolidated balance sheet.

Revenue from Contracts with C_2

Revenue from Contracts with Customers (Tables)	9 Months Ended
	Sep. 30, 2024
Revenue from Contract with Customer [Abstract]
Summary of Estimated Revenue Expected to be Recognized in Future Related to Performance Obligations	The following table includes estimated revenue expected to be recognized in the future related to performance obligations that are unsatisfied or partially unsatisfied as of September 30, 2024. The estimated revenues do not include unexercised contract renewals. Next Twelve Months Thereafter (in thousands) Product subscriptions $ 556,284 $ 268,636 Professional services 16,785 6,410 Total $ 573,069 $ 275,046

Business Combinations (Tables)

Business Combinations (Tables)	9 Months Ended
	Sep. 30, 2024
Business Combination, Asset Acquisition, and Joint Venture Formation [Abstract]
Summary of Preliminary Fair Value of Assets Acquired and Liabilities Assumed	The following table summarizes the preliminary allocation of purchase price to the estimated fair value of the assets acquired and liabilities assumed at the acquisition date (in thousands): Consideration: Cash $ 38,597 Deferred cash consideration 397 Contingent consideration 12,055 Fair value of total consideration transferred $ 51,049 Recognized amount of identifiable assets acquired and liabilities assumed: Cash and cash equivalents $ 1,296 Accounts receivable 510 Prepaid and other current assets 102 Property and equipment, net 19 Accrued expenses and other current liabilities (220) Deferred revenue (910) Other long-term liabilities (62) Intangible asset 11,500 Total identifiable net assets assumed $ 12,235 Goodwill 38,814 Total purchase price allocation $ 51,049

Investments (Tables)

Investments (Tables)	9 Months Ended
	Sep. 30, 2024
Investments, Debt and Equity Securities [Abstract]
Summary of Investments Classified as Available-for-sale	Our investments, which are all classified as available-for-sale, consisted of the following: As of September 30, 2024 Amortized Gross Gross Fair Value (in thousands) Description: U.S government agencies $ 280,757 $ 787 $ (40) $ 281,504 Total $ 280,757 $ 787 $ (40) $ 281,504 As of December 31, 2023 Amortized Gross Gross Fair Value (in thousands) Description: U.S government agencies $ 222,820 $ 467 $ (65) $ 223,222 Agency bonds 2,500 — (7) 2,493 Total $ 225,320 $ 467 $ (72) $ 225,715

Fair Value Measurements (Tables

Fair Value Measurements (Tables)	9 Months Ended
	Sep. 30, 2024
Fair Value Disclosures [Abstract]
Summary of Financial Assets and Liabilities Measured and Recorded at Fair Value on Recurring Basis	The following table presents our financial assets and liabilities measured and recorded at fair value on a recurring basis using the above input categories: As of September 30, 2024 Level 1 Level 2 Level 3 Total (in thousands) Description: Assets: U.S. government agencies $ 281,504 $ — $ — $ 281,504 Foreign currency forward contracts designated as cash flow hedges (prepaid expenses and other current assets and other assets) — 1,559 — 1,559 Total assets $ 281,504 $ 1,559 $ — $ 283,063 Liabilities: Contingent consideration (other current liabilities and other long-term liabilities) — — 12,238 12,238 Foreign currency forward contracts designated as cash flow hedges (other current liabilities and other long-term liabilities) — 66 — 66 Total liabilities $ — $ 66 $ 12,238 $ 12,304 As of December 31, 2023 Level 1 Level 2 Level 3 Total (in thousands) Description: Assets: U.S. government agencies $ 223,222 $ — $ — $ 223,222 Agency bonds — 2,493 — 2,493 Foreign currency forward contracts designated as cash flow hedges (prepaid expenses and other current assets and other assets) — 1,322 — 1,322 Total assets $ 223,222 $ 3,815 $ — $ 227,037 Liabilities: Foreign currency forward contracts designated as cash flow hedges (other current liabilities) — 55 — 55 Total liabilities $ — $ 55 $ — $ 55

Property and Equipment (Tables)

Property and Equipment (Tables)	9 Months Ended
	Sep. 30, 2024
Property, Plant and Equipment [Abstract]
Summary of Property and Equipment	Property and equipment are recorded at cost and consist of the following: September 30, December 31, 2024 2023 (in thousands) Computer equipment and software $ 28,100 $ 26,442 Furniture and fixtures 10,954 10,850 Leasehold improvements 56,878 56,151 Total 95,932 93,443 Less accumulated depreciation (61,996) (53,801) Property and equipment, net $ 33,936 $ 39,642

Goodwill and Intangibles (Table

Goodwill and Intangibles (Tables)	9 Months Ended
	Sep. 30, 2024
Goodwill and Intangible Assets Disclosure [Abstract]
Schedule of Goodwill	The following table displays the changes in the gross carrying amount of goodwill: Amount (in thousands) Balance, December 31, 2023 $ 536,351 Noetic acquisition 38,814 Balance, September 30, 2024 $ 575,165
Schedule of Identifiable Intangible Assets	The following table presents details of our intangible assets which include acquired identifiable intangible assets and capitalized internal-use software costs: Weighted- As of September 30, 2024 As of December 31, 2023 Gross Carrying Accumulated Net Book Value Gross Carrying Accumulated Net Book Value (in thousands) Intangible assets subject to amortization: Developed technology 6.1 $ 146,855 $ (89,770) $ 57,085 $ 135,355 $ (77,031) $ 58,324 Customer relationships 4.5 12,000 (9,711) 2,289 12,000 (7,755) 4,245 Trade names 3.1 2,619 (2,514) 105 2,619 (2,379) 240 Total acquired intangible assets 161,474 (101,995) 59,479 149,974 (87,164) 62,810 Internal-use software 3.0 65,130 (33,861) 31,269 55,371 (23,635) 31,736 Total intangible assets $ 226,604 $ (135,856) $ 90,748 $ 205,345 $ (110,799) $ 94,546
Schedule of Estimated Amortization Expense	Estimated future amortization expense of the acquired identifiable intangible assets and completed capitalized internal-use software costs as of September 30, 2024 was as follows (in thousands): 2024 (for the remaining three months) $ 8,429 2025 30,900 2026 21,149 2027 9,128 2028 3,243 2029 and thereafter 7,652 Total $ 80,501

Deferred Contract Acquisition_2

Deferred Contract Acquisition and Fulfillment Costs (Tables)	9 Months Ended
	Sep. 30, 2024
Revenue from Contract with Customer [Abstract]
Summary of Capitalized Contract Cost	Deferred contract acquisition and fulfillment costs, which primarily consist of capitalized sales commissions, for the nine months ended September 30, 2024 and 2023 was as follows: Nine Months Ended September 30, 2024 2023 (in thousands) Beginning balance $ 121,609 $ 103,075 Capitalization of contract acquisition and fulfillment costs 39,850 39,904 Amortization of deferred contract acquisition and fulfillment costs (39,357) (30,416) Ending balance $ 122,102 $ 112,563

Debt (Tables)

Debt (Tables)	9 Months Ended
	Sep. 30, 2024
Debt Disclosure [Abstract]
Summary of Long-term Debt Instruments	Further details of the Notes are as follows: Issuance Maturity Date Interest Rate First Interest Payment Date Effective Interest Rate Semi-Annual Interest Payment Dates Initial Conversion Rate per $1,000 Principal Initial Conversion Price Number of Shares (in millions) 2025 Notes May 1, 2025 2.25% November 1, 2020 2.88% May 1 and November 1 16.3875 $ 61.02 0.8 2027 Notes March 15, 2027 0.25% September 15, 2021 0.67% March 15 and September 15 9.6734 $ 103.38 5.8 2029 Notes March 15, 2029 1.25% March 15, 2024 1.69% March 15 and September 15 15.4213 $ 64.85 4.6
Summary of Liability and Equity Components of Convertible Debt	The net carrying amount of the Notes as of September 30, 2024 and December 31, 2023 was as follows (in thousands): 2025 Notes 2027 Notes 2029 Notes Principal Unamortized debt issuance costs Total Principal Unamortized debt issuance costs Total Principal Unamortized debt issuance costs Total Balance at December 31, 2023 $ 45,992 $ (404) $ 45,588 $ 600,000 $ (8,077) $ 591,923 $ 300,000 $ (7,515) $ 292,485 Amortization of debt issuance costs — 228 228 — 1,877 1,877 — 1,077 1,077 Balance at September 30, 2024 $ 45,992 $ (176) $ 45,816 $ 600,000 $ (6,200) $ 593,800 $ 300,000 $ (6,438) $ 293,562 Interest expense related to the Notes was as follows (in thousands): Three Months Ended September 30, 2024 2023 2025 Notes 2027 Notes 2029 Notes Total 2025 Notes 2027 Notes 2029 Notes Total Contractual interest expense $ 258 $ 375 $ 938 $ 1,571 $ 948 $ 375 $ 229 $ 1,552 Amortization of debt issuance costs 79 634 455 1,168 289 631 73 $ 993 Total interest expense $ 337 $ 1,009 $ 1,393 $ 2,739 $ 1,237 $ 1,006 $ 302 $ 2,545 Nine Months Ended September 30, 2024 2023 2025 Notes 2027 Notes 2029 Notes Total 2025 Notes 2027 Notes 2029 Notes Total Contractual interest expense $ 776 $ 1,125 $ 2,812 $ 4,713 $ 3,536 $ 1,125 $ 229 $ 4,890 Amortization of debt issuance costs 228 1,877 1,077 3,182 990 1,855 73 2,918 Total interest expense $ 1,004 $ 3,002 $ 3,889 $ 7,895 $ 4,526 $ 2,980 $ 302 $ 7,808
Summary of Other Key Terms and Premiums Paid for the Capped Calls Related to Each Series of Notes	The following table sets forth other key terms and premiums paid for the Capped Calls related to each series of Notes: Capped Calls Entered into in Connection with the Issuance of the 2025 Notes Capped Calls Entered into in Connection with the Issuance of the 2027 Notes Capped Calls Entered into in Connection with the Issuance of the 2029 Notes Initial strike price, subject to certain adjustments $ 61.02 $ 103.38 $ 64.85 Cap price, subject to certain adjustments $ 93.88 $ 159.04 $ 97.88 Total premium paid (in thousands) $ 27,255 $ 76,020 $ 36,570 Expiration dates March 4, 2025 - April 29, 2025 January 1, 2027 - March 11, 2027 February 13, 2029 - March 13, 2029

Stock-Based Compensation (Table

Stock-Based Compensation (Tables)	9 Months Ended
	Sep. 30, 2024
Share-Based Payment Arrangement [Abstract]
Summary of Stock-Based Compensation Expense	Stock-based compensation expense for restricted stock units (“RSUs”), performance-based restricted stock units (“PSUs”), stock options and purchase rights issued under our employee stock purchase plan was classified in the accompanying condensed consolidated statements of operations as follows: Three Months Ended September 30, Nine Months Ended September 30, 2024 2023 2024 2023 (in thousands) Stock-based compensation expense: Cost of revenue $ 3,001 $ 2,527 $ 8,707 $ 8,348 Research and development 9,535 8,436 25,698 30,575 Sales and marketing 6,823 7,106 21,182 23,087 General and administrative 5,235 5,699 21,309 22,826 Total stock-based compensation expense $ 24,594 $ 23,768 $ 76,896 $ 84,836
Summary of Restricted Stock and Restricted Stock Unit Activity	RSUs and PSUs activity during the nine months ended September 30, 2024 was as follows: Shares Weighted- Unvested balance as of December 31, 2023 2,714,426 $ 61.60 Granted 2,338,438 $ 52.37 Vested (1,122,737) $ 61.36 Forfeited (824,443) $ 59.99 Unvested balance as of September 30, 2024 3,105,684 $ 56.24
Summary of Stock Option Activity	Stock option activity during the nine months ended September 30, 2024 was as follows: Shares Weighted Weighted Aggregate Outstanding as of December 31, 2023 716,270 $ 12.26 1.97 $ 32,115 Granted — — Exercised (131,742) $ 11.67 $ 4,981 Forfeited/cancelled (450) $ 7.73 Outstanding as of September 30, 2024 584,078 $ 12.40 1.45 $ 16,056 Vested and exercisable as of September 30, 2024 584,078 $ 12.40 1.45 $ 16,056

Net Income (Loss) per Share (Ta

Net Income (Loss) per Share (Tables)	9 Months Ended
	Sep. 30, 2024
Earnings Per Share [Abstract]
Summary of Basic and Diluted Net Income (Loss) Per Share of Common Stock	The following table summarizes the computation of basic and diluted net income (loss) per share of our common stock for the three months September 30, 2024 and 2023: Three Months Ended September 30, Nine Months Ended September 30, 2024 2023 2024 2023 (in thousands, except share and per share data) Numerator: Net income (loss) $ 16,554 $ (76,611) $ 27,007 $ (169,308) Denominator: Weighted-average common shares outstanding, basic 62,898,078 61,065,157 62,389,482 60,506,082 Weighted-average common shares outstanding, diluted 74,537,085 61,065,157 74,225,110 60,506,082 Net income (loss) per share, basic $ 0.26 $ (1.25) $ 0.43 $ (2.80) Net income (loss) per share, diluted $ 0.22 $ (1.25) $ 0.36 (2.80)
Summary of Anti-Dilutive Securities Excluded from Computation Diluted Weighted Average Shares Outstanding	The following potentially dilutive securities outstanding have been excluded from the computation of diluted weighted-average shares outstanding for the respective periods below because they would have been anti-dilutive: Nine Months Ended September 30, 2024 2023 Options to purchase common stock 584,078 723,632 Unvested restricted stock units 3,105,684 3,126,817 Common stock issued in conjunction to acquisitions 36,923 115,041 Shares to be issued under ESPP 18,332 20,802 Convertible senior notes 11,183,611 11,183,611 Total 14,928,628 15,169,903

Segment Information and Infor_2

Segment Information and Information about Geographic Areas (Tables)	9 Months Ended
	Sep. 30, 2024
Segment Reporting [Abstract]
Summary of Net Revenues of Customer by Geographic Area	Net revenues by geographic area presented based upon the location of the customer are as follows: Three Months Ended September 30, Nine Months Ended September 30, 2024 2023 2024 2023 (in thousands) North America $ 163,730 $ 155,190 $ 480,392 $ 448,753 Rest of world 50,924 43,653 147,354 123,686 Total $ 214,654 $ 198,843 $ 627,746 $ 572,439
Summary of Property and Equipment, Net by Geographic Area	Property and equipment, net by geographic area was as follows: As of September 30, 2024 As of December 31, 2023 (in thousands) North America $ 23,915 $ 27,609 Rest of world 10,021 12,033 Total $ 33,936 $ 39,642

Description of Business, Basi_3

Description of Business, Basis of Presentation and Consolidation and Significant Accounting Policies (Details) $ in Millions	Sep. 30, 2024 USD ($)
Accounting Policies [Abstract]
Restricted cash	$ 7.5

Revenue from Contracts with C_3

Revenue from Contracts with Customers - Additional Information (Details) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2024	Sep. 30, 2023	Sep. 30, 2024	Sep. 30, 2023	Dec. 31, 2023
Disaggregation of Revenue [Line Items]
Liability, revenue recognized	$ 184,600,000	$ 174,300,000	$ 398,300,000	$ 366,500,000
Unbilled receivables	3,600,000		3,600,000		$ 2,000,000
Contract assets	$ 0		$ 0		$ 0
Professional Service
Disaggregation of Revenue [Line Items]
Revenue from contract with customer, contractual period			1 year

Revenue from Contracts with C_4

Revenue from Contracts with Customers - Summary of Estimated Revenue Expected to be Recognized in Future Related to Performance Obligations (Details) $ in Thousands	Sep. 30, 2024 USD ($)
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2024-10-01
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Total	$ 573,069
Revenue recognition period	12 months
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2025-10-01
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Total	$ 275,046
Revenue recognition period
Product subscriptions | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2024-10-01
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Total	$ 556,284
Revenue recognition period	12 months
Product subscriptions | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2025-10-01
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Total	$ 268,636
Revenue recognition period
Professional services | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2024-10-01
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Total	$ 16,785
Revenue recognition period	12 months
Professional services | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2025-10-01
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Total	$ 6,410
Revenue recognition period

Business Combinations - Additio

Business Combinations - Additional Information (Details) $ in Thousands			3 Months Ended		9 Months Ended
	Jul. 03, 2024 USD ($) employee installment	Mar. 14, 2023 USD ($) reportingUnit	Sep. 30, 2024 USD ($)	Sep. 30, 2023 USD ($)	Sep. 30, 2024 USD ($) reportingUnit	Sep. 30, 2023 USD ($)	Dec. 31, 2023 USD ($)
Business Acquisition [Line Items]
Share-based payment arrangement, expense			$ 24,594	$ 23,768	$ 76,896	$ 84,836
Number of reporting units | reportingUnit					1
Goodwill			575,165		$ 575,165		$ 536,351
General and administrative
Business Acquisition [Line Items]
Share-based payment arrangement, expense			5,235	$ 5,699	21,309	$ 22,826
Noetic Cyber, Inc,
Business Acquisition [Line Items]
Total consideration transferred	$ 51,049
Purchase consideration	38,597
Contingent consideration (up to)	12,100		12,100		12,100
Deferred cash consideration	397
Business combination contingent consideration payments	20,000
Business combination, contingent consideration, liability remaining	13,100
Business combination, earnout consideration	6,900
Value of equity to be issued	$ 2,300
Number of key employees | employee	2
Number of Installments | installment	3
Equity issuance period	36 months
Intangible asset	$ 11,500
Acquisition related transaction costs			100		400
Total identifiable net assets assumed	12,235
Goodwill	38,814
Noetic Cyber, Inc, | General and administrative
Business Acquisition [Line Items]
Accretion expense			200		200
Noetic Cyber, Inc, | Accrued Liabilities
Business Acquisition [Line Items]
Contingent consideration (up to)			12,200		12,200
Noetic Cyber, Inc, | Other current liabilities
Business Acquisition [Line Items]
Contingent consideration (up to)			6,800		6,800
Noetic Cyber, Inc, | Other Liabilities
Business Acquisition [Line Items]
Contingent consideration (up to)			5,400		5,400
Noetic Cyber, Inc, | Developed technology
Business Acquisition [Line Items]
Share-based payment arrangement, expense	$ 700
Useful life (in years)	7 years
Minerva labs
Business Acquisition [Line Items]
Total consideration transferred		$ 34,600
Purchase consideration		35,000
Intangible asset		12,800
Receivable for purchase price adjustments		(400)
Total identifiable net assets assumed		13,900
Goodwill		$ 20,700
Minerva labs | ISRAEL
Business Acquisition [Line Items]
Current foreign tax expense (benefit)			4,600		4,600
Deferred foreign income tax expense (benefit)			$ 1,800		$ 1,800
Minerva labs | Developed technology
Business Acquisition [Line Items]
Number of reporting units | reportingUnit		1

Business Combinations - Summary

Business Combinations - Summary of Allocation of Purchase Price to Estimated Fair Value of Assets Acquired and Liabilities Assumed (Details) - USD ($) $ in Thousands	Jul. 03, 2024	Sep. 30, 2024	Dec. 31, 2023
Consideration:
Contingent consideration	$ 12,055
Recognized amount of identifiable assets acquired and liabilities assumed:
Goodwill		$ 575,165	$ 536,351
Noetic Cyber, Inc,
Consideration:
Cash	38,597
Deferred cash consideration	397
Fair value of total consideration transferred	51,049
Recognized amount of identifiable assets acquired and liabilities assumed:
Cash and cash equivalents	1,296
Accounts receivable	510
Prepaid and other current assets	102
Property and equipment, net	19
Accrued expenses and other current liabilities	(220)
Deferred revenue	(910)
Other long-term liabilities	(62)
Intangible asset	11,500
Total identifiable net assets assumed	12,235
Goodwill	38,814
Total purchase price allocation	$ 51,049

Investments (Details)

Investments (Details) - USD ($) $ in Thousands	9 Months Ended	12 Months Ended
	Sep. 30, 2024	Dec. 31, 2023
Debt and Equity Securities, FV-NI [Line Items]
Amortized Cost	$ 280,757	$ 225,320
Gross Unrealized Gains	787	467
Gross Unrealized Losses	(40)	(72)
Fair Value	$ 281,504	$ 225,715
Minimum
Debt and Equity Securities, FV-NI [Line Items]
Remaining maturity	1 month	1 month
Maximum
Debt and Equity Securities, FV-NI [Line Items]
Remaining maturity	20 months	18 months
U.S government agencies
Debt and Equity Securities, FV-NI [Line Items]
Amortized Cost	$ 280,757	$ 222,820
Gross Unrealized Gains	787	467
Gross Unrealized Losses	(40)	(65)
Fair Value	$ 281,504	223,222
Agency bonds
Debt and Equity Securities, FV-NI [Line Items]
Amortized Cost		2,500
Gross Unrealized Gains		0
Gross Unrealized Losses		(7)
Fair Value		$ 2,493

Fair Value Measurements - Summa

Fair Value Measurements - Summary of Financial Assets and Liabilities Measured and Recorded at Fair Value on Recurring Basis (Details) - USD ($) $ in Thousands	Sep. 30, 2024	Dec. 31, 2023
Assets:
Debt securities	$ 281,504	$ 225,715
The Notes, Due 2025 | Convertible Debt
Liabilities:
Interest Rate	2.25%
Convertible debt, fair value disclosures	$ 45,100
The Notes, Due 2027 | Convertible Debt
Liabilities:
Interest Rate	0.25%
Convertible debt, fair value disclosures	$ 547,100
The Notes, Due 2029 | Convertible Debt
Liabilities:
Interest Rate	1.25%
Convertible debt, fair value disclosures	$ 281,900
U.S government agencies
Assets:
Debt securities	281,504	223,222
Agency bonds
Assets:
Debt securities		2,493
Level 3
Liabilities:
Contingent consideration (other current liabilities and other long-term liabilities)	12,200
Fair Value, Measurements, Recurring
Assets:
Foreign currency forward contracts designated as cash flow hedges (prepaid expenses and other current assets and other assets)	1,559	1,322
Total assets	283,063	227,037
Liabilities:
Contingent consideration (other current liabilities and other long-term liabilities)	12,238
Foreign currency forward contracts designated as cash flow hedges (other current liabilities and other long-term liabilities)	66	55
Total liabilities	12,304	55
Fair Value, Measurements, Recurring | U.S government agencies
Assets:
Debt securities	281,504	223,222
Fair Value, Measurements, Recurring | Agency bonds
Assets:
Debt securities		2,493
Fair Value, Measurements, Recurring | Level 1
Assets:
Foreign currency forward contracts designated as cash flow hedges (prepaid expenses and other current assets and other assets)	0	0
Total assets	281,504	223,222
Liabilities:
Contingent consideration (other current liabilities and other long-term liabilities)	0
Foreign currency forward contracts designated as cash flow hedges (other current liabilities and other long-term liabilities)	0	0
Total liabilities	0	0
Fair Value, Measurements, Recurring | Level 1 | U.S government agencies
Assets:
Debt securities	281,504	223,222
Fair Value, Measurements, Recurring | Level 1 | Agency bonds
Assets:
Debt securities		0
Fair Value, Measurements, Recurring | Level 2
Assets:
Foreign currency forward contracts designated as cash flow hedges (prepaid expenses and other current assets and other assets)	1,559	1,322
Total assets	1,559	3,815
Liabilities:
Contingent consideration (other current liabilities and other long-term liabilities)	0
Foreign currency forward contracts designated as cash flow hedges (other current liabilities and other long-term liabilities)	66	55
Total liabilities	66	55
Fair Value, Measurements, Recurring | Level 2 | U.S government agencies
Assets:
Debt securities	0	0
Fair Value, Measurements, Recurring | Level 2 | Agency bonds
Assets:
Debt securities		2,493
Fair Value, Measurements, Recurring | Level 3
Assets:
Foreign currency forward contracts designated as cash flow hedges (prepaid expenses and other current assets and other assets)	0	0
Total assets	0	0
Liabilities:
Contingent consideration (other current liabilities and other long-term liabilities)	12,238
Foreign currency forward contracts designated as cash flow hedges (other current liabilities and other long-term liabilities)	0	0
Total liabilities	12,238	0
Fair Value, Measurements, Recurring | Level 3 | U.S government agencies
Assets:
Debt securities	$ 0	0
Fair Value, Measurements, Recurring | Level 3 | Agency bonds
Assets:
Debt securities		$ 0

Property and Equipment - Summar

Property and Equipment - Summary of Property and Equipment (Details) - USD ($) $ in Thousands	Sep. 30, 2024	Dec. 31, 2023
Property, Plant and Equipment [Line Items]
Property and equipment, gross	$ 95,932	$ 93,443
Less accumulated depreciation	(61,996)	(53,801)
Property and equipment, net	33,936	39,642
Computer equipment and software
Property, Plant and Equipment [Line Items]
Property and equipment, gross	28,100	26,442
Furniture and fixtures
Property, Plant and Equipment [Line Items]
Property and equipment, gross	10,954	10,850
Leasehold Improvements
Property, Plant and Equipment [Line Items]
Property and equipment, gross	$ 56,878	$ 56,151

Property and Equipment - Additi

Property and Equipment - Additional Information (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2024	Sep. 30, 2023	Sep. 30, 2024	Sep. 30, 2023
Property, Plant and Equipment [Abstract]
Depreciation expense	$ 2.7	$ 3.3	$ 8.4	$ 10.9

Goodwill and Intangibles - Addi

Goodwill and Intangibles - Additional Information (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2024	Sep. 30, 2023	Sep. 30, 2024	Sep. 30, 2023	Dec. 31, 2023
Goodwill and Intangible Assets Disclosure [Abstract]
Goodwill	$ 575,165		$ 575,165		$ 536,351
Amortization expense	8,500	$ 8,300	25,100	$ 23,600
Capitalized computer software exclude of gross	$ 10,200		$ 10,200

Goodwill and Intangibles - Sche

Goodwill and Intangibles - Schedule of Change in Gross Carrying Amount of Goodwill (Details) $ in Thousands	9 Months Ended
	Sep. 30, 2024 USD ($)
Goodwill [Roll Forward]
Goodwill, beginning balance	$ 536,351
Goodwill, ending balance	575,165
Noetic Acquisition
Goodwill [Roll Forward]
Noetic acquisition	$ 38,814

Goodwill and Intangibles - Sc_2

Goodwill and Intangibles - Schedule of Identifiable Intangible Assets (Details) - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2024	Dec. 31, 2023
Finite-Lived Intangible Assets [Line Items]
Total acquired intangible assets, gross carrying amount	$ 161,474	$ 149,974
Total acquired intangible assets, accumulated amortization	(101,995)	(87,164)
Total acquired intangible assets, net book value	59,479	62,810
Accumulated Amortization	(135,856)	(110,799)
Total intangible assets, gross carrying amount	226,604	205,345
Intangible assets, net book value	$ 90,748	94,546
Developed technology
Finite-Lived Intangible Assets [Line Items]
Weighted- Average Estimated Useful Life (years)	6 years 1 month 6 days
Total acquired intangible assets, gross carrying amount	$ 146,855	135,355
Total acquired intangible assets, accumulated amortization	(89,770)	(77,031)
Total acquired intangible assets, net book value	$ 57,085	58,324
Customer relationships
Finite-Lived Intangible Assets [Line Items]
Weighted- Average Estimated Useful Life (years)	4 years 6 months
Total acquired intangible assets, gross carrying amount	$ 12,000	12,000
Total acquired intangible assets, accumulated amortization	(9,711)	(7,755)
Total acquired intangible assets, net book value	$ 2,289	4,245
Trade names
Finite-Lived Intangible Assets [Line Items]
Weighted- Average Estimated Useful Life (years)	3 years 1 month 6 days
Total acquired intangible assets, gross carrying amount	$ 2,619	2,619
Total acquired intangible assets, accumulated amortization	(2,514)	(2,379)
Total acquired intangible assets, net book value	$ 105	240
Internal-use software
Finite-Lived Intangible Assets [Line Items]
Weighted- Average Estimated Useful Life (years)	3 years
Gross Carrying Amount	$ 65,130	55,371
Accumulated Amortization	(33,861)	(23,635)
Net Book Value	$ 31,269	$ 31,736

Goodwill and Intangibles - Sc_3

Goodwill and Intangibles - Schedule of Estimated Amortization Expense (Details $ in Thousands	Sep. 30, 2024 USD ($)
Goodwill and Intangible Assets Disclosure [Abstract]
2024 (for the remaining three months)	$ 8,429
2025	30,900
2026	21,149
2027	9,128
2028	3,243
2029 and thereafter	7,652
Total	$ 80,501

Deferred Contract Acquisition_3

Deferred Contract Acquisition and Fulfillment Costs (Details) - Contract Acquisition And Fulfillment Costs - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2024	Sep. 30, 2023
Capitalized Contract Costs [Roll Forward]
Beginning balance	$ 121,609	$ 103,075
Capitalization of contract acquisition and fulfillment costs	39,850	39,904
Amortization of deferred contract acquisition and fulfillment costs	(39,357)	(30,416)
Ending balance	$ 122,102	$ 112,563

Derivative and Hedging Activi_2

Derivative and Hedging Activities (Details) - Foreign currency forward contracts designated as cash flow hedges - Designated as Hedging Instrument - USD ($) $ in Millions	9 Months Ended	12 Months Ended
	Sep. 30, 2024	Dec. 31, 2023
Derivative [Line Items]
Term of contract	20 months	20 months
Notional amount	$ 52.4	$ 49.5

Debt - Additional Information (

Debt - Additional Information (Details) - USD ($)	1 Months Ended				9 Months Ended
	Sep. 30, 2023	Dec. 31, 2021	Mar. 31, 2021	May 31, 2020	Sep. 30, 2024	Sep. 30, 2023	Apr. 30, 2020
Debt Instrument [Line Items]
Proceeds from convertible debt					$ 0	$ 292,800,000
Convertible Debt | Debt Covenant Three
Debt Instrument [Line Items]
Redemption price, percentage				100%
2025 Notes | Convertible Debt
Debt Instrument [Line Items]
Face amount				$ 230,000,000
Converted amount	$ 201,000,000
Repurchased face amount	184,000,000					184,000,000
Proceeds from convertible debt				$ 222,800,000
2027 Notes | Convertible Debt
Debt Instrument [Line Items]
Face amount			$ 600,000,000
Proceeds from convertible debt			$ 585,000,000
2029 Notes | Convertible Debt
Debt Instrument [Line Items]
Face amount	300,000,000					$ 300,000,000
Proceeds from convertible debt	$ 292,000,000
Credit Agreement | Secured Overnight Financing Rate (SOFR)
Debt Instrument [Line Items]
Sofr spread rate		0.10%
Basis spread on variable rate		2.50%
Credit Agreement | Base Rate
Debt Instrument [Line Items]
Basis spread on variable rate		0%
Credit Agreement | Revolving Credit Facility
Debt Instrument [Line Items]
Current borrowing capacity							$ 100,000,000
Credit sublimit							15,000,000
Fee amount		$ 400,000
Commitment fee percentage		0.20%
Credit Agreement | Letter of Credit
Debt Instrument [Line Items]
Maximum borrowing capacity							$ 150,000,000

Debt - Summary of Long-term Deb

Debt - Summary of Long-term Debt Instruments (Details) - Convertible Debt shares in Millions	9 Months Ended
	Sep. 30, 2024 shares $ / shares
2025 Notes
Debt Instrument [Line Items]
Interest Rate	2.25%
Effective Interest Rate	2.88%
Initial Conversion Rate per $1,000 Principal	0.0163875
Initial Conversion Price (in dollars per share) | $ / shares	$ 61.02
Number of shares (in shares) | shares	0.8
2027 Notes
Debt Instrument [Line Items]
Interest Rate	0.25%
Effective Interest Rate	0.67%
Initial Conversion Rate per $1,000 Principal	0.0096734
Initial Conversion Price (in dollars per share) | $ / shares	$ 103.38
Number of shares (in shares) | shares	5.8
2029 Notes
Debt Instrument [Line Items]
Interest Rate	1.25%
Effective Interest Rate	1.69%
Initial Conversion Rate per $1,000 Principal	0.0154213
Initial Conversion Price (in dollars per share) | $ / shares	$ 64.85
Number of shares (in shares) | shares	4.6

Debt - Summary of Liability and

Debt - Summary of Liability and Equity Components of Convertible Debt (Details) - Convertible Debt - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2024	Sep. 30, 2023	Sep. 30, 2024	Sep. 30, 2023	Dec. 31, 2023
Debt Instrument [Line Items]
Amortization of debt issuance costs	$ 1,168	$ 993	$ 3,182	$ 2,918
2025 Notes
Debt Instrument [Line Items]
Principal	45,992		45,992		$ 45,992
Unamortized debt issuance costs	(176)		(176)		(404)
Total	45,816		45,816		45,588
Amortization of debt issuance costs	79	289	228	990
2027 Notes
Debt Instrument [Line Items]
Principal	600,000		600,000		600,000
Unamortized debt issuance costs	(6,200)		(6,200)		(8,077)
Total	593,800		593,800		591,923
Amortization of debt issuance costs	634	631	1,877	1,855
2029 Notes
Debt Instrument [Line Items]
Principal	300,000		300,000		300,000
Unamortized debt issuance costs	(6,438)		(6,438)		(7,515)
Total	293,562		293,562		$ 292,485
Amortization of debt issuance costs	$ 455	$ 73	$ 1,077	$ 73

Debt - Summary of Interest Expe

Debt - Summary of Interest Expense (Details) - Convertible Debt - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2024	Sep. 30, 2023	Sep. 30, 2024	Sep. 30, 2023
Debt Instrument [Line Items]
Contractual interest expense	$ 1,571	$ 1,552	$ 4,713	$ 4,890
Amortization of debt issuance costs	1,168	993	3,182	2,918
Total interest expense	2,739	2,545	7,895	7,808
2025 Notes
Debt Instrument [Line Items]
Contractual interest expense	258	948	776	3,536
Amortization of debt issuance costs	79	289	228	990
Total interest expense	337	1,237	1,004	4,526
2027 Notes
Debt Instrument [Line Items]
Contractual interest expense	375	375	1,125	1,125
Amortization of debt issuance costs	634	631	1,877	1,855
Total interest expense	1,009	1,006	3,002	2,980
2029 Notes
Debt Instrument [Line Items]
Contractual interest expense	938	229	2,812	229
Amortization of debt issuance costs	455	73	1,077	73
Total interest expense	$ 1,393	$ 302	$ 3,889	$ 302

Debt - Summary of Other Key Ter

Debt - Summary of Other Key Terms and Premiums Paid for the Capped Calls (Details) - Call Option $ / shares in Units, $ in Thousands	9 Months Ended
	Sep. 30, 2024 USD ($) $ / shares
Capped Calls Entered into in Connection with the Issuance of the 2025 Notes
Debt Instrument [Line Items]
Initial strike price, subject to certain adjustments (in dollars per share)	$ 61.02
Cap price, subject to certain adjustments (in dollars per share)	$ 93.88
Total premium paid (in thousands) | $	$ 27,255
Capped Calls Entered into in Connection with the Issuance of the 2027 Notes
Debt Instrument [Line Items]
Initial strike price, subject to certain adjustments (in dollars per share)	$ 103.38
Cap price, subject to certain adjustments (in dollars per share)	$ 159.04
Total premium paid (in thousands) | $	$ 76,020
Capped Calls Entered into in Connection with the Issuance of the 2029 Notes
Debt Instrument [Line Items]
Initial strike price, subject to certain adjustments (in dollars per share)	$ 64.85
Cap price, subject to certain adjustments (in dollars per share)	$ 97.88
Total premium paid (in thousands) | $	$ 36,570

Stock-Based Compensation - Summ

Stock-Based Compensation - Summary of Stock-Based Compensation Expense (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2024	Sep. 30, 2023	Sep. 30, 2024	Sep. 30, 2023
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based payment arrangement, expense	$ 24,594	$ 23,768	$ 76,896	$ 84,836
Cost of revenue
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based payment arrangement, expense	3,001	2,527	8,707	8,348
Research and development
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based payment arrangement, expense	9,535	8,436	25,698	30,575
Sales and marketing
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based payment arrangement, expense	6,823	7,106	21,182	23,087
General and administrative
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based payment arrangement, expense	$ 5,235	$ 5,699	$ 21,309	$ 22,826

Stock-Based Compensation - Addi

Stock-Based Compensation - Additional Information (Details) $ / shares in Units, $ in Thousands			1 Months Ended		3 Months Ended		9 Months Ended
	Sep. 13, 2024 USD ($) $ / shares shares	Mar. 15, 2024 USD ($) $ / shares shares	Jul. 31, 2024 shares	Jan. 31, 2024 installment shares	Sep. 30, 2024 USD ($)	Sep. 30, 2023 USD ($)	Sep. 30, 2024 USD ($) shares	Sep. 30, 2023 USD ($)
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based payment arrangement, expense					$ 24,594	$ 23,768	$ 76,896	$ 84,836
Purchase price of common stock by employees percentage							85%
Issuance of common stock under employee stock purchase plan					4,201	5,149	$ 9,246	11,323
January 2024 Grant
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of vesting installments | installment				3
RSUs and PSUs
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Unrecognized compensation cost, restricted stock					152,000		$ 152,000
Unrecognized compensation, recognition period							2 years
Granted (in shares) | shares							2,338,438
Performance Stock Units | January 2024 Grant
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting period				1 year
Share-based payment arrangement, expense					400		$ 2,200
Granted (in shares) | shares				279,570
Maximum target payout in shares (percent)				200%
Performance Stock Units | July 2024 Grant
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based payment arrangement, expense					300		$ 300
Granted (in shares) | shares			19,605
2015 Plan | Minimum
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting period							3 years
2015 Plan | Maximum
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting period							4 years
Employee withholding percentage							15%
2024 Bonus Plan
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based payment arrangement, expense					$ 200	$ 50	$ 500
2023 Bonus Plan
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based payment arrangement, expense								$ 1,100
Shares to be issued under ESPP
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Issuance of common stock under employee stock purchase plan (in shares) | shares	144,445	147,445
Share issued, price per share (in dollars per share) | $ / shares	$ 29.08
Issuance of common stock under employee stock purchase plan	$ 4,200	$ 5,000
Shares to be issued under ESPP | Minimum
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share issued, price per share (in dollars per share) | $ / shares		$ 33.78
Shares to be issued under ESPP | Maximum
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share issued, price per share (in dollars per share) | $ / shares		$ 39.78

Stock-Based Compensation - Su_2

Stock-Based Compensation - Summary of Restricted Stock, Restricted Stock Units and Performance-Based Restricted Stock Units (Details) - RSUs and PSUs	9 Months Ended
	Sep. 30, 2024 $ / shares shares
Shares
Unvested balance, Beginning balance (in shares) | shares	2,714,426
Granted (in shares) | shares	2,338,438
Vested (in shares) | shares	(1,122,737)
Forfeited (in shares) | shares	(824,443)
Unvested balance, Ending balance (in shares) | shares	3,105,684
Weighted- Average Grant Date Fair Value
Beginning balance (in dollars per share) | $ / shares	$ 61.60
Granted (in dollars per share) | $ / shares	52.37
Vested (in dollars per share) | $ / shares	61.36
Forfeited (in dollars per share) | $ / shares	59.99
Ending Balance (in dollars per share) | $ / shares	$ 56.24

Stock-Based Compensation - Su_3

Stock-Based Compensation - Summary of Stock Option Activity (Details) - USD ($) $ / shares in Units, $ in Thousands	9 Months Ended	12 Months Ended
	Sep. 30, 2024	Dec. 31, 2023
Shares
Beginning balance (in shares)	716,270
Granted (in shares)	0
Exercised (in shares)	(131,742)
Forfeited/cancelled (in shares)	(450)
Ending balance (in shares)	584,078	716,270
Vested and exercisable (in shares)	584,078
Weighted Average Exercise Price
Beginning balance (in dollars per share)	$ 12.26
Granted (in dollars per share)	0
Exercised (in dollars per share)	11.67
Forfeited/cancelled (in dollars per share)	7.73
Ending balance (in dollars per share)	12.40	$ 12.26
Vested and exercisable (in dollars per share)	$ 12.40
Weighted Average Remaining Contractual Life (in years)
Outstanding	1 year 5 months 12 days	1 year 11 months 19 days
Vested and exercisable	1 year 5 months 12 days
Aggregate Intrinsic Value (in thousands)
Outstanding	$ 16,056	$ 32,115
Exercised	4,981
Vested and exercisable	$ 16,056

Net Income (Loss) per Share - S

Net Income (Loss) per Share - Summary of Basic and Diluted Net Loss Per Share of Common Stock (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2024	Sep. 30, 2023	Sep. 30, 2024	Sep. 30, 2023
Numerator:
Net income (loss)	$ 16,554	$ (76,611)	$ 27,007	$ (169,308)
Denominator:
Weighted-average common shares outstanding, basic (in Shares)	62,898,078	61,065,157	62,389,482	60,506,082
Weighted-average common shares outstanding, diluted (in Shares)	74,537,085	61,065,157	74,225,110	60,506,082
Net income (loss) per share, basic (in dollars per share)	$ 0.26	$ (1.25)	$ 0.43	$ (2.80)
Net income (loss) per share, diluted (in dollars per share)	$ 0.22	$ (1.25)	$ 0.36	$ (2.80)

Net Income (Loss) per Share -_2

Net Income (Loss) per Share - Summary of Antidilutive Securities Excluded From Computation Diluted Weighted Average Shares Outstanding (Details) - shares	9 Months Ended
	Sep. 30, 2024	Sep. 30, 2023
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive securities excluded from computation of earnings per share amount (in shares)	14,928,628	15,169,903
Options to purchase common stock
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive securities excluded from computation of earnings per share amount (in shares)	584,078	723,632
Unvested restricted stock units
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive securities excluded from computation of earnings per share amount (in shares)	3,105,684	3,126,817
Common stock issued in conjunction to acquisitions
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive securities excluded from computation of earnings per share amount (in shares)	36,923	115,041
Shares to be issued under ESPP
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive securities excluded from computation of earnings per share amount (in shares)	18,332	20,802
Convertible senior notes
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive securities excluded from computation of earnings per share amount (in shares)	11,183,611	11,183,611

Commitments and Contingencies (

Commitments and Contingencies (Details) - 3 months ended Jun. 30, 2024 ₪ in Millions, $ in Millions	ILS (₪)	USD ($)
Commitments and Contingencies Disclosure [Abstract]
Income tax examination amount assessed by taxing authorities	₪ 324	$ 87

Segment Information and Infor_3

Segment Information and Information about Geographic Areas - Additional Information (Details)	9 Months Ended
	Sep. 30, 2024 segment
Segment Reporting [Abstract]
Number of operating segments	1

Segment Information and Infor_4

Segment Information and Information about Geographic Areas - Summary of Net Revenues of Customer by Geographic Area (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2024	Sep. 30, 2023	Sep. 30, 2024	Sep. 30, 2023
Revenues from External Customers and Long-Lived Assets [Line Items]
Total	$ 214,654	$ 198,843	$ 627,746	$ 572,439
North America
Revenues from External Customers and Long-Lived Assets [Line Items]
Total	163,730	155,190	480,392	448,753
Rest of world
Revenues from External Customers and Long-Lived Assets [Line Items]
Total	$ 50,924	$ 43,653	$ 147,354	$ 123,686

Segment Information and Infor_5

Segment Information and Information about Geographic Areas - Summary of Property and Equipment, Net By Geographic Area (Details) - USD ($) $ in Thousands	Sep. 30, 2024	Dec. 31, 2023
Revenues from External Customers and Long-Lived Assets [Line Items]
Total	$ 33,936	$ 39,642
North America
Revenues from External Customers and Long-Lived Assets [Line Items]
Total	23,915	27,609
Rest of world
Revenues from External Customers and Long-Lived Assets [Line Items]
Total	$ 10,021	$ 12,033

Restructuring (Details)

Restructuring (Details) - USD ($) $ in Thousands		3 Months Ended			9 Months Ended
	Aug. 07, 2023	Sep. 30, 2024	Mar. 31, 2024	Sep. 30, 2023	Sep. 30, 2024	Sep. 30, 2023
Restructuring and Related Activities [Abstract]
Workforce reduction percentage	16%
Restructuring charges		$ 0	$ (200)	$ (19,996)	$ 0	$ (19,996)