Datadog (DDOG) 10-Q 5 May 23 2023 Q1 Quarterly report Financial data

Cover Page

Cover Page - shares	3 Months Ended
	Mar. 31, 2023	Apr. 26, 2023
Document Information [Line Items]
Document Type	10-Q
Document Quarterly Report	true
Document Period End Date	Mar. 31, 2023
Document Transition Report	false
Entity File Number	001-39051
Entity Registrant Name	Datadog, Inc.
Entity Incorporation, State or Country Code	DE
Entity Tax Identification Number	27-2825503
Entity Address, Address Line One	620 8th Avenue,
Entity Address, Address Line Two	45th Floor
Entity Address, City or Town	New York,
Entity Address, State or Province	NY
Entity Address, Postal Zip Code	10018
City Area Code	866
Local Phone Number	329-4466
Title of 12(b) Security	Class A common stock, par value $0.00001 per share
Trading Symbol	DDOG
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
Amendment Flag	false
Document Fiscal Year Focus	2023
Document Fiscal Period Focus	Q1
Entity Central Index Key	0001561550
Current Fiscal Year End Date	--12-31
Class A Common Stock
Document Information [Line Items]
Entity Common Stock, Shares Outstanding (in shares)		296,268,680
Class B Common Stock
Document Information [Line Items]
Entity Common Stock, Shares Outstanding (in shares)		25,606,382

CONDENSED CONSOLIDATED BALANCE

CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	Mar. 31, 2023	Dec. 31, 2022
CURRENT ASSETS:
Cash and cash equivalents	$ 222,548	$ 338,985
Marketable securities	1,795,342	1,545,341
Accounts receivable, net of allowance for credit losses of $8,071 and $5,626 as of March 31, 2023 and December 31, 2022, respectively	367,046	399,551
Deferred contract costs, current	34,858	33,054
Prepaid expenses and other current assets	43,198	27,303
Total current assets	2,462,992	2,344,234
Property and equipment, net	138,400	125,346
Operating lease assets	94,723	87,629
Goodwill	348,536	348,277
Intangible assets, net	14,152	16,365
Deferred contract costs, non-current	56,636	55,338
Restricted cash	0	3,303
Other assets	24,305	24,360
TOTAL ASSETS	3,139,744	3,004,852
CURRENT LIABILITIES:
Accounts payable	41,598	23,474
Accrued expenses and other current liabilities	148,530	171,158
Operating lease liabilities, current	20,397	22,092
Deferred revenue, current	562,429	543,024
Total current liabilities	772,954	759,748
Operating lease liabilities, non-current	86,242	76,582
Convertible senior notes, net	739,692	738,847
Deferred revenue, non-current	22,506	12,944
Other liabilities	6,251	6,226
Total liabilities	1,627,645	1,594,347
COMMITMENTS AND CONTINGENCIES
STOCKHOLDERS' EQUITY:
Additional paid-in capital	1,744,221	1,625,190
Accumulated other comprehensive loss	(5,773)	(12,422)
Accumulated deficit	(226,352)	(202,266)
Total stockholders’ equity	1,512,099	1,410,505
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY	3,139,744	3,004,852
Class A Common Stock
STOCKHOLDERS' EQUITY:
Common stock, value	3	3
Class B Common Stock
STOCKHOLDERS' EQUITY:
Common stock, value	$ 0	$ 0

CONDENSED CONSOLIDATED BALANC_2

CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands	Mar. 31, 2023	Dec. 31, 2022
Accounts receivable, net of allowance for doubtful accounts	$ 8,071	$ 5,626
Class A Common Stock
Common stock, par value (in dollars per share)	$ 0.00001	$ 0.00001
Common stock, authorized (in shares)	2,000,000,000	2,000,000,000
Common stock, issued (in shares)	295,958,300	293,573,825
Common stock, outstanding (in shares)	295,958,300	293,573,825
Class B Common Stock
Common stock, par value (in dollars per share)	$ 0.00001	$ 0.00001
Common stock, authorized (in shares)	310,000,000	310,000,000
Common stock, issued (in shares)	25,487,943	25,616,018
Common stock, outstanding (in shares)	25,487,943	25,616,018

CONDENSED CONSOLIDATED STATEMEN

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) shares in Thousands, $ in Thousands	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Income Statement [Abstract]
Revenue	$ 481,714	$ 363,030
Cost of revenue	99,914	74,462
Gross profit	381,800	288,568
Operating expenses:
Research and development	229,478	150,608
Sales and marketing	144,971	101,166
General and administrative	42,321	26,380
Total operating expenses	416,770	278,154
Operating (loss) income	(34,970)	10,414
Other income (loss):
Interest expense	(2,181)	(5,247)
Interest income and other income, net	16,727	5,687
Other income, net	14,546	440
(Loss) income before provision for income taxes	(20,424)	10,854
Provision for income taxes	(3,662)	(1,116)
Net (loss) income	(24,086)	9,738
Net (loss) income attributable to common stockholders, basic	(24,086)	9,738
Net (loss) income attributable to common stockholders, diluted	$ (24,086)	$ 9,738
Basic net (loss) income per share (in dollars per share)	$ (0.08)	$ 0.03
Diluted net (loss) income per share (in dollars per share)	$ (0.08)	$ 0.03
Weighted average shares used in calculating basic net (loss) income per share (in shares)	319,286	313,456
Weighted average shares used in calculating diluted net (loss) income per share (in shares)	319,286	345,668

CONDENSED CONSOLIDATED STATEM_2

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE (LOSS) INCOME - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Statement of Comprehensive Income [Abstract]
Net (loss) income	$ (24,086)	$ 9,738
Other comprehensive income (loss):
Foreign currency translation adjustments	641	(539)
Unrealized gain (loss) on available-for-sale marketable securities	6,008	(8,186)
Other comprehensive income (loss)	6,649	(8,725)
Comprehensive (loss) income	$ (17,437)	$ 1,013

CONDENSED CONSOLIDATED STATEM_3

CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY (DEFICIT) - USD ($) $ in Thousands	Total	Class A and Class B Common Stock	Additional Paid-in Capital	Acumulated Other Comprehensive (Loss) Income	Accumulated Deficit
Beginning balance, shares at Dec. 31, 2021		313,365,437
Beginning balance at Dec. 31, 2021	$ 1,041,203	$ 3	$ 1,197,136	$ (3,830)	$ (152,106)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Issuance of common stock upon exercise of stock options (in shares)		1,167,000
Issuance of common stock upon exercise of stock options	4,218		4,218
Vesting of early exercised stock options	33		33
Vesting of restricted stock units (in shares)		388,568
Stock-based compensation	70,390		70,390
Change in accumulated other comprehensive income (loss)	(8,725)			(8,725)
Net (loss) income	9,738				9,738
Ending balance, shares at Mar. 31, 2022		314,921,005
Ending balance at Mar. 31, 2022	1,116,857	$ 3	1,271,777	(12,555)	(142,368)
Beginning balance, shares at Dec. 31, 2022		319,189,843
Beginning balance at Dec. 31, 2022	$ 1,410,505	$ 3	1,625,190	(12,422)	(202,266)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Issuance of common stock upon exercise of stock options (in shares)	1,208,185	1,208,185
Issuance of common stock upon exercise of stock options	$ 2,076		2,076
Vesting of restricted stock units (in shares)		1,048,215
Stock-based compensation	116,955		116,955
Change in accumulated other comprehensive income (loss)	6,649			6,649
Net (loss) income	(24,086)				(24,086)
Ending balance, shares at Mar. 31, 2023		321,446,243
Ending balance at Mar. 31, 2023	$ 1,512,099	$ 3	$ 1,744,221	$ (5,773)	$ (226,352)

CONDENSED CONSOLIDATED STATEM_4

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
CASH FLOWS FROM OPERATING ACTIVITIES:
Net (loss) income	$ (24,086)	$ 9,738
Adjustments to reconcile net (loss) income to net cash provided by operating activities:
Depreciation and amortization	10,275	7,394
(Accretion) amortization of (discounts) premiums on marketable securities	(5,195)	3,959
Amortization of issuance costs	845	840
Amortization of deferred contract costs	8,648	6,022
Stock-based compensation, net of amounts capitalized	112,728	66,884
Non-cash lease expense	5,944	4,411
Allowance for credit losses on accounts receivable	3,732	798
Loss on disposal of property and equipment	88	823
Changes in operating assets and liabilities:
Accounts receivable, net	28,773	(7,319)
Deferred contract costs	(11,750)	(8,166)
Prepaid expenses and other current assets	(15,810)	(8,391)
Other assets	164	(805)
Accounts payable	18,545	(7,624)
Accrued expenses and other liabilities	(28,080)	(2,911)
Deferred revenue	28,966	81,735
Net cash provided by operating activities	133,787	147,388
CASH FLOWS FROM INVESTING ACTIVITIES:
Purchases of marketable securities	(757,787)	(329,706)
Maturities of marketable securities	497,648	199,703
Proceeds from sale of marketable securities	21,341	2,007
Purchases of property and equipment	(8,739)	(9,514)
Capitalized software development costs	(8,711)	(7,973)
Cash paid for acquisition of businesses; net of cash acquired	0	(4,871)
Net cash used in investing activities	(256,248)	(150,354)
CASH FLOWS FROM FINANCING ACTIVITIES:
Proceeds from exercise of stock options	2,098	4,245
Repayments of convertible senior notes	0	(3)
Net cash provided by financing activities	2,098	4,242
Effect of exchange rate changes on cash, cash equivalents and restricted cash	623	(629)
NET (DECREASE) INCREASE IN CASH, CASH EQUIVALENTS AND RESTRICTED CASH	(119,740)	647
CASH, CASH EQUIVALENTS AND RESTRICTED CASH—Beginning of period	342,288	274,463
CASH, CASH EQUIVALENTS AND RESTRICTED CASH—End of period	222,548	275,110
SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION:
Cash paid for income taxes	3,022	339
SUPPLEMENTAL DISCLOSURE OF NON-CASH INVESTING AND FINANCING ACTIVITIES:
Accrued property and equipment purchases	304	2,994
Stock-based compensation included in capitalized software development costs	4,227	3,506
Vesting of early exercised options	0	33
RECONCILIATION OF CASH, CASH EQUIVALENTS AND RESTRICTED CASH WITHIN THE CONDENSED CONSOLIDATED BALANCE SHEETS TO THE AMOUNTS SHOWN IN THE STATEMENTS OF CASH FLOWS ABOVE:
Cash and cash equivalents	222,548	271,686
Restricted cash	0	3,424
Total cash, cash equivalents and restricted cash	$ 222,548	$ 275,110

Organization and Description of

Organization and Description of Business	3 Months Ended
	Mar. 31, 2023
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Organization and Description of Business	Organization and Description of Business Description of Business Datadog, Inc. (“Datadog” or the “Company”) was incorporated in the State of Delaware on June 4, 2010. The Company is the observability and security platform for cloud applications. The Company’s SaaS platform integrates and automates infrastructure monitoring, application performance monitoring, log management, real-user monitoring, and many other capabilities to provide unified, real-time observability and security of its customers’ entire technology stack. The Company is headquartered in New York City and has various other global office locations.

Basis of Presentation and Summa

Basis of Presentation and Summary of Significant Accounting Policies	3 Months Ended
	Mar. 31, 2023
Accounting Policies [Abstract]
Basis of Presentation and Summary of Significant Accounting Policies	Basis of Presentation and Summary of Significant Accounting Policies Unaudited Interim Condensed Consolidated Financial Information The unaudited condensed consolidated financial statements include the accounts of Datadog, Inc. and its wholly-owned subsidiaries, and have been prepared in accordance with generally accepted accounting principles in the United States (“GAAP”) and following the requirements of the Securities and Exchange Commission (“SEC”) for interim reporting. As permitted under those rules, certain footnotes or other financial information that are normally required by GAAP can be condensed or omitted. These financial statements have been prepared on the same basis as the Company’s annual financial statements and, in the opinion of management, reflect all adjustments, consisting only of normal recurring adjustments, which are necessary for the fair statement of the Company’s financial information. These interim results are not necessarily indicative of the results to be expected for the fiscal year ending December 31, 2023 or for any other interim period or for any other future year. The accompanying unaudited condensed consolidated financial statements and related financial information should be read in conjunction with the audited consolidated financial statements and the related notes contained in the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2022, as filed with the SEC on February 24, 2023 (the “Annual Report”). Basis of Presentation The accompanying condensed consolidated financial statements have been prepared in accordance with GAAP. Principles of Consolidation The condensed consolidated financial statements include the accounts of Datadog, Inc. and its wholly-owned subsidiaries. All intercompany transactions and balances have been eliminated in consolidation. Use of Estimates The preparation of condensed consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the amounts reported in the condensed consolidated financial statements and accompanying notes. Such estimates include the fair value of marketable securities, the allowance for credit losses, the fair value of acquired assets and assumed liabilities from business combinations, useful lives of property, equipment, software and finite lived intangibles, stock-based compensation, valuation of long-lived assets and their recoverability, including goodwill, the incremental borrowing rate for operating leases, estimated expected period of benefit for deferred contract costs, fair value of the liability component of the convertible debt, realization of deferred tax assets and uncertain tax positions, revenue recognition and the allocation of overhead costs between cost of revenue and operating expenses. The Company bases its estimates on historical experience and also on assumptions that management considers reasonable. The Company assesses these estimates on a regular basis; however, actual results could materially differ from these estimates.

Marketable Securities

Marketable Securities	3 Months Ended
	Mar. 31, 2023
Investments, Debt and Equity Securities [Abstract]
Marketable Securities	Marketable Securities The following is a summary of available-for-sale marketable securities, excluding those securities classified within cash and cash equivalents on the condensed consolidated balance sheets as of March 31, 2023 and December 31, 2022 (in thousands): March 31, 2023 Amortized Unrealized Unrealized Fair Commercial debt securities $ 853,994 $ 924 $ (4,368) $ 850,550 U.S. government treasury securities 319,009 491 (569) 318,931 Commercial paper 295,478 75 (299) 295,254 Certificates of deposit 170,009 24 (348) 169,685 U.S. government agency securities 160,905 81 (64) 160,922 Marketable securities $ 1,799,395 $ 1,595 $ (5,648) $ 1,795,342 December 31, 2022 Amortized Unrealized Unrealized Fair Commercial debt securities $ 813,598 $ 64 $ (7,554) $ 806,108 Commercial paper 357,030 64 (821) 356,273 Certificates of deposit 174,080 37 (587) 173,530 U.S. government treasury securities 120,977 — (1,099) 119,878 U.S. government agency securities 89,718 12 (178) 89,552 Marketable securities $ 1,555,403 $ 177 $ (10,239) $ 1,545,341 As of March 31, 2023, the fair values of available-for-sale marketable securities, by remaining contractual maturity, were as follows (in thousands): Due within one year $ 1,113,746 Due in one year through five years 681,596 Total $ 1,795,342 The Company does not believe that any unrealized losses are attributable to credit-related factors based on its evaluation of available evidence. To determine whether a decline in value is related to credit loss, the Company evaluates, among other factors: the extent to which the fair value is less than the amortized cost basis, changes to the rating of the security by a rating agency and any adverse conditions specifically related to an issuer of a security or its industry. Unrealized gains and losses on marketable securities are presented net of tax.

Fair Value Measurements

Fair Value Measurements	3 Months Ended
	Mar. 31, 2023
Fair Value Disclosures [Abstract]
Fair Value Measurements	Fair Value Measurements The following tables present information about the Company’s financial assets and liabilities that have been measured at fair value on a recurring basis as of March 31, 2023 and December 31, 2022, and indicate the fair value hierarchy of the valuation inputs utilized to determine such fair value (in thousands): Fair Value Measurement as of March 31, 2023 Level 1 Level 2 Level 3 Total Financial Assets: Cash equivalents: Money market funds $ 196,835 $ — $ — $ 196,835 Marketable Securities: Corporate debt securities — 850,550 — 850,550 U.S. government treasury securities — 318,931 — 318,931 Commercial paper — 295,254 — 295,254 Certificates of deposit — 169,685 — 169,685 U.S. government agency securities — 160,922 — 160,922 Total financial assets $ 196,835 $ 1,795,342 $ — $ 1,992,177 Fair Value Measurement as of December 31, 2022 Level 1 Level 2 Level 3 Total Financial Assets: Cash equivalents: Money market funds $ 302,902 $ — $ — $ 302,902 Corporate debt securities — 2,493 — 2,493 Marketable Securities: Corporate debt securities — 806,108 — 806,108 Commercial paper — 356,273 — 356,273 Certificates of deposit — 173,530 — 173,530 U.S. government treasury securities — 119,878 — 119,878 U.S. government agency securities — 89,552 — 89,552 Total financial assets $ 302,902 $ 1,547,834 $ — $ 1,850,736 The Company classifies its highly liquid money market funds and securities purchased within three months of maturity within Level 1 of the fair value hierarchy because they are valued based on quoted market prices in active markets. The Company classifies its commercial paper, corporate debt securities, certificates of deposit, U.S. government agency securities, and U.S. government treasury securities within Level 2 because they are valued using inputs other than quoted prices that are directly or indirectly observable in the market, including readily available pricing sources for the identical underlying security which may not be actively traded. In addition to its cash equivalents and marketable securities, the Company measures the fair value of its outstanding convertible senior notes on a quarterly basis for disclosure purposes. The Company considers the fair value of the convertible senior notes to be a Level 2 measurement due to limited trading activity of the convertible senior notes. Refer to Note 7, Convertible Senior Notes , to the condensed consolidated financial statements for further details.

Property and Equipment, Net

Property and Equipment, Net	3 Months Ended
	Mar. 31, 2023
Property, Plant and Equipment [Abstract]
Property and Equipment, Net	Property and Equipment, Net Property and equipment, net consisted of the following (in thousands): March 31, December 31, Computers and equipment $ 33,316 $ 33,376 Furniture and fixtures 13,442 13,315 Leasehold improvements 35,189 27,683 Capitalized software development costs 149,464 134,890 Total property and equipment $ 231,411 $ 209,264 Less: accumulated depreciation and amortization (93,011) (83,918) Total property and equipment, net $ 138,400 $ 125,346 The Company capitalizes costs related to the development of computer software for internal use and is included in capitalized software development costs within property and equipment, net.

Acquisitions, Intangible Assets

Acquisitions, Intangible Assets and Goodwill	3 Months Ended
	Mar. 31, 2023
Acquisitions, Intangible Assets And Goodwill [Abstract]
Acquisitions, Intangible Assets and Goodwill	Acquisitions, Intangible Assets and Goodwill 2022 Acquisitions During the year ended December 31, 2022, the Company entered into four purchase agreements for acquisitions of businesses, each of which were accounted for as business combinations in accordance with ASC 805, Business Combinations. The Company does not consider these acquisitions to be material, individually or in aggregate. The total purchase price was allocated to intangible assets in the amount of $8.2 million and goodwill in the amount of $56.6 million based on the respective estimated fair values. The resulting goodwill from each of the agreements is not deductible for income tax purposes. Pro forma results of operations from these acquisitions have not been presented because they were not material to the consolidated results of operations. Intangible Assets Intangible assets, net consisted of the following (in thousands): March 31, 2023 Gross Accumulated Net Amortization Developed technology $ 24,460 $ (11,980) $ 12,480 3 years Customer relationships 3,300 (1,628) 1,672 4 years Total $ 27,760 $ (13,608) $ 14,152 December 31, 2022 Gross Accumulated Net Amortization Developed technology $ 24,460 $ (9,970) $ 14,490 3 years Customer relationships 3,300 (1,425) 1,875 4 years Total $ 27,760 $ (11,395) $ 16,365 Intangible amortization expense was approximately $2.2 million and $1.6 million for the three months ended March 31, 2023 and 2022, respectively. As of March 31, 2023, future amortization expense by year is expected to be as follows (in thousands): Amount Remainder of 2023 $ 6,522 2024 5,744 2025 1,886 Total $ 14,152 Goodwill The changes in the carrying amount of goodwill were as follows (in thousands): Amount Balance as of December 31, 2022 $ 348,277 Foreign currency translation adjustments 259 Balance as of March 31, 2023 $ 348,536
Acquisitions, Intangible Assets and Goodwill	Acquisitions, Intangible Assets and Goodwill 2022 Acquisitions During the year ended December 31, 2022, the Company entered into four purchase agreements for acquisitions of businesses, each of which were accounted for as business combinations in accordance with ASC 805, Business Combinations. The Company does not consider these acquisitions to be material, individually or in aggregate. The total purchase price was allocated to intangible assets in the amount of $8.2 million and goodwill in the amount of $56.6 million based on the respective estimated fair values. The resulting goodwill from each of the agreements is not deductible for income tax purposes. Pro forma results of operations from these acquisitions have not been presented because they were not material to the consolidated results of operations. Intangible Assets Intangible assets, net consisted of the following (in thousands): March 31, 2023 Gross Accumulated Net Amortization Developed technology $ 24,460 $ (11,980) $ 12,480 3 years Customer relationships 3,300 (1,628) 1,672 4 years Total $ 27,760 $ (13,608) $ 14,152 December 31, 2022 Gross Accumulated Net Amortization Developed technology $ 24,460 $ (9,970) $ 14,490 3 years Customer relationships 3,300 (1,425) 1,875 4 years Total $ 27,760 $ (11,395) $ 16,365 Intangible amortization expense was approximately $2.2 million and $1.6 million for the three months ended March 31, 2023 and 2022, respectively. As of March 31, 2023, future amortization expense by year is expected to be as follows (in thousands): Amount Remainder of 2023 $ 6,522 2024 5,744 2025 1,886 Total $ 14,152 Goodwill The changes in the carrying amount of goodwill were as follows (in thousands): Amount Balance as of December 31, 2022 $ 348,277 Foreign currency translation adjustments 259 Balance as of March 31, 2023 $ 348,536

Convertible Senior Notes

Convertible Senior Notes	3 Months Ended
	Mar. 31, 2023
Debt Disclosure [Abstract]
Convertible Senior Notes	Convertible Senior Notes On June 2, 2020, the Company issued $747.5 million aggregate principal amount of 0.125% convertible senior notes due 2025 (the “2025 Notes”) in a private placement to qualified institutional buyers pursuant to Rule 144A under the Securities Act of 1933, as amended (“Securities Act”). The total net proceeds from the sale of the 2025 Notes, after deducting the initial purchasers’ discounts and debt issuance costs, were approximately $730.2 million. The 2025 Notes bear interest at a rate of 0.125% per year, payable semiannually in arrears on June 15 and December 15 of each year, beginning on December 15, 2020. The 2025 Notes will mature on June 15, 2025, unless earlier converted, redeemed or repurchased. Holders may convert their notes at their option at any time prior to the close of business on the business day immediately preceding March 15, 2025 only under the following circumstances: (1) during any calendar quarter commencing after the calendar quarter ending on September 30, 2020 (and only during such calendar quarter), if the last reported sale price of the Company’s Class A common stock for at least 20 trading days (whether or not consecutive) during a period of 30 consecutive trading days ending on, and including, the last trading day of the immediately preceding calendar quarter is greater than or equal to 130% of the conversion price on each applicable trading day; (2) during the five business day period after any ten consecutive trading day period (the "measurement period") in which the trading price per $1,000 principal amount of 2025 Notes for each trading day of the measurement period was less than 98% of the product of the last reported sale price of the Company’s Class A common stock and the conversion rate on each such trading day; (3) if the Company calls such 2025 Notes for redemption, at any time prior to the close of business on the scheduled trading day immediately preceding the redemption date; or (4) upon the occurrence of specified corporate events, as set forth in the indenture governing the 2025 Notes (“the Indenture”). On or after March 15, 2025 until the close of business on the second scheduled trading day immediately preceding the maturity date, holders may convert all or any portion of their notes, in integral multiples of $1,000 principal amount, at the option of the holder regardless of the foregoing circumstances. The conversion rate for the 2025 Notes is initially 10.8338 shares of Class A common stock per $1,000 principal amount of notes (equivalent to an initial conversion price of approximately $92.30 per share of Class A common stock), subject to adjustment as set forth in the Indenture. Upon conversion, the Company will pay or deliver, as the case may be, cash, shares of Class A common stock or a combination of cash and shares of Class A common stock, at the Company’s election. If the Company satisfies its conversion obligation solely in cash or through payment and delivery, as the case may be, of a combination of cash and shares of Class A common stock, the amount of cash and shares of Class A common stock, if any, due upon conversion will be based on a daily conversion value calculated on a proportionate basis for each trading day in a 30 trading day observation period as described in the Indenture. In addition, if specific corporate events occur prior to the applicable maturity date, or if the Company elects to redeem the 2025 Notes, the Company will increase the conversion rate for a holder who elects to convert their notes in connection with such a corporate event or redemption in certain circumstances. During the three months ended March 31, 2023, the conditional conversion feature of the 2025 Notes was not triggered as the last reported sale price of the Company's Class A common stock was not greater than or equal to 130% of the conversion price for at least 20 trading days (whether or not consecutive) during a period of 30 consecutive trading days ending on, and including, the last trading day of the quarter ended March 31, 2023. Therefore the 2025 Notes are not convertible, in whole or in part, at the option of the holders between April 1, 2023 through June 30, 2023. Whether the 2025 Notes will be convertible following such period will depend on the continued satisfaction of this condition or another conversion condition in the future. When a conversion notice is received, the Company has the option to pay or deliver cash, shares of the Company’s common stock, or a combination thereof. During the year ended December 31, 2022, the Company received and settled an immaterial amount of conversion notices from the holders in cash and as of March 31, 2023, the 2025 Notes were classified as long-term debt on the Company's condensed consolidated balance sheet. The Company may not redeem the 2025 Notes prior to June 20, 2023. On or after June 20, 2023, and prior to the 31st scheduled trading day immediately preceding the maturity date, the Company may redeem for cash all or any portion of the 2025 Notes, at its option, if the last reported sale price of its Class A common stock was at least 130% of the conversion price then in effect for at least 20 trading days (whether or not consecutive) during any 30 consecutive trading day period (including the last trading day of such period) ending on, and including, the trading day immediately preceding the date on which the Company provides a notice of redemption at a redemption price equal to 100% of the principal amount of the 2025 Notes to be redeemed, plus accrued and unpaid interest to, but excluding, the redemption date. In accounting for the issuance of the 2025 Notes, the 2025 Notes were separated into liability and equity components. The carrying amount of the liability component was calculated by measuring the fair value of similar liabilities that do not have associated convertible features. The carrying amount of the equity component representing the conversion option was determined by deducting the fair value of the liability component from the par value of the respective 2025 Notes. This difference represents the debt discount that is amortized to interest expense over the contractual terms of the 2025 Notes using the effective interest rate method. The carrying amount of the equity component representing the conversion option was $177.2 million. The equity component was recorded in additional paid-in capital and is not remeasured as long as it continues to meet the conditions for equity classification. In accounting for the debt issuance costs of $17.3 million related to the 2025 Notes, the Company allocated the total amount incurred to the liability and equity components of the 2025 Notes in the same proportion as the allocation of the proceeds. Issuance costs attributable to the liability component were $13.2 million and will be amortized, along with the debt discount to interest expense over the contractual term of the 2025 Notes at an effective interest rate of 5.97%. Issuance costs attributable to the equity component were $4.1 million and are netted against the equity component in additional paid-in capital. On January 1, 2021 the Company adopted ASU No. 2020-06, Accounting for Convertible Instruments and Contracts in an Entity’s Own Equity (“ASU No. 2020-06”) . As a result of the adoption, the debt conversion option of $177.2 million and debt issuance costs of $4.1 million previously attributable to the equity component are no longer presented in equity. Similarly, the debt discount, that is equal to the carrying value of the embedded conversion feature upon issuance, is no longer amortized into income as interest expense over the life of the instrument. This resulted in a $16.8 million decrease to the opening balance of accumulated deficit, a $173.1 million decrease to the opening balance of additional paid-in capital and a $156.3 million increase to the opening balance of convertible senior notes, net on the condensed consolidated balance sheet. The net carrying amount of the liability component of the 2025 Notes was as follows (in thousands): March 31, December 31, Convertible senior notes, net: Principal $ 747,496 $ 747,496 Unamortized debt issuance costs (7,804) (8,649) Net carrying amount $ 739,692 $ 738,847 As of March 31, 2023, the total estimated fair value of the 2025 Notes was approximately $806.7 million. The fair value was determined based on the closing trading price or quoted market price per $100 of the 2025 Notes as of the last day of trading for the period. The fair value of the 2025 Notes is primarily affected by the trading price of the Company’s Class A common stock and market interest rates. The following table sets forth the interest expense related to the 2025 Notes for the three months ended March 31, 2023 and 2022 (in thousands): Three Months Ended 2023 2022 Contractual interest expense $ 234 $ 234 Amortization of issuance costs 845 840 Total $ 1,079 $ 1,074 Capped Calls In connection with the pricing of the 2025 Notes, the Company entered into privately negotiated capped call transactions with certain counterparties (“Capped Calls”). The Capped Calls each have an initial strike price of approximately $92.30 per share, subject to certain adjustments, which corresponds to the initial conversion price of the 2025 Notes. The Capped Calls have initial cap prices of $151.04 per share, subject to certain adjustments. The Capped Calls are expected to partially offset the potential dilution to the Company’s Class A common stock upon any conversion of the 2025 Notes, with such offset subject to a cap based on the cap price. The Capped Calls cover, subject to anti-dilution adjustments, approximately 8.1 million shares of the Company’s Class A common stock. For accounting purposes, the Capped Calls are separate transactions, and not part of the 2025 Notes. As these transactions meet certain accounting criteria, the Capped Calls are recorded in stockholders' equity and are not accounted for as derivatives. The cost of $89.6 million incurred to purchase the Capped Calls was recorded as a reduction to additional paid-in capital and will not be remeasured.

Commitments and Contingencies

Commitments and Contingencies	3 Months Ended
	Mar. 31, 2023
Commitments and Contingencies Disclosure [Abstract]
Commitments and Contingencies	Commitments and Contingencies Non-cancelable Material Commitments— During the three months ended March 31, 2023, other than certain non-cancelable operating leases described in Note 9, Leases , there have been no other material changes outside the ordinary course of business to the Company's contractual obligations and commitments from those disclosed in the Annual Report. 401(k) Plan —The Company sponsors a 401(k) defined contribution plan covering all eligible U.S. employees. The Company is responsible for administrative costs of the 401(k) plan and makes matching contributions to the 401(k) plan. For the three months ended March 31, 2023 and 2022, the Company incurred expense of $1.4 million and $1.2 million, respectively, for matching contributions. Legal Matters —The Company is involved from time to time in various claims and legal actions arising in the ordinary course of business. While it is not feasible to predict or determine the ultimate outcome of these matters, the Company believes that none of its current legal proceedings will have a material adverse effect on its financial position or results of operations. Indemnification —The Company enters into indemnification provisions under some agreements with other parties in the ordinary course of business, including business partners, investors, contractors, customers and the Company’s officers, directors and certain employees. The Company has agreed to indemnify and defend the indemnified party claims and related losses suffered or incurred by the indemnified party from actual or threatened third-party claim because of the Company’s activities or non-compliance with certain representations and warranties made by the Company. It is not possible to determine the maximum potential loss under these indemnification provisions due to the Company’s limited history of prior indemnification claims and the unique facts and circumstances involved in each particular provision. To date, losses recorded in the Company’s condensed consolidated statements of operations in connection with the indemnification provisions have not been material.

Leases

Leases	3 Months Ended
	Mar. 31, 2023
Leases [Abstract]
Leases	Leases The Company has entered into various non-cancelable operating leases for its facilities expiring between 2023 and 2033. Certain lease agreements contain an option for the Company to renew a lease for a term of up to five years or an option to terminate a lease early within one year. The Company considers these options, which may be elected at the Company’s sole discretion, in determining the lease term on a lease-by-lease basis. Lease expense for these leases is recognized on a straight-line basis over the lease term, with variable lease payments recognized in the period those payments are incurred. The components of lease cost recognized within the Company’s condensed consolidated statements of operations were as follows (in thousands): Three Months Ended 2023 2022 Operating lease cost (1) $ 7,380 $ 5,237 Short-term lease cost 2,519 1,169 1) Includes non-cash lease expense of $5.9 million and $4.4 million for the three months ended March 31, 2023 and 2022, respectively. Supplemental cash flow information and non-cash activity related to the Company’s operating leases are as follows (in thousands): Three Months Ended 2023 2022 Cash paid for amounts included in measurement of lease liabilities $ 6,552 $ 5,837 Operating lease assets obtained in exchange for new lease liabilities 12,539 5,181 Maturities of lease liabilities by fiscal year for the Company’s operating leases are as follows (in thousands): Amount Remainder of 2023 $ 5,645 2024 21,323 2025 19,686 2026 17,490 2027 16,906 2028 and beyond 56,224 Total lease payments $ 137,274 Less: imputed interest (30,635) Present value of lease liabilities $ 106,639 As of March 31, 2023, the Company had various operating leases that had not yet commenced, which are excluded from the table above. The operating leases will commence between fiscal year 2023 and 2025 with total undiscounted future payments of $199.5 million and a weighted-average lease term of 8.9 years. Weighted average remaining lease term and discount rate for the Company’s operating leases are as follows: March 31, Weighted-average remaining lease term (years) 6.4 Weighted-average discount rate 5.43 %

Revenue

Revenue	3 Months Ended
	Mar. 31, 2023
Revenue from Contract with Customer [Abstract]
Revenue	Revenue Geographical Information Revenue by location is determined by the billing address of the customer. The following table sets forth revenue by geographic area (in thousands): Three Months Ended 2023 2022 North America $ 341,216 $ 259,862 International 140,498 103,168 Total $ 481,714 $ 363,030 Deferred Revenue and Remaining Performance Obligations Certain of the Company’s customers pay in advance of satisfaction of performance obligations and other customers with monthly contract terms are billed in arrears on a monthly basis. The Company records contract liabilities to deferred revenue when customers are billed or when the Company receives customer payments in advance of the performance obligations being satisfied on the Company’s contracts. Revenue recognized during the three months ended March 31, 2023 and 2022, which was included in the deferred revenue balances at the beginning of each such period, was $245.3 million and $165.4 million, respectively. Remaining performance obligations represent the aggregate amount of the transaction price in contracts allocated to performance obligations not delivered, or partially undelivered, as of the end of the reporting period. Remaining performance obligations include unearned revenue, multi-year contracts with future installment payments and certain unfulfilled orders against accepted customer contracts at the end of any given period. As of March 31, 2023 and December 31, 2022, the aggregate transaction price allocated to remaining performance obligations was $1,138.3 million and $1,057.2 million, respectively. There is uncertainty in the timing of revenues associated with the Company’s drawdown contracts, as future revenue can often vary significantly from past revenue. However, the Company expects to recognize substantially all of the remaining performance obligations over the next 24 months. Accounts Receivable Accounts receivable deemed uncollectible are charged against the allowance for credit losses when identified. During the three months ended March 31, 2023 and 2022, the Company charged $1.3 million and $0.4 million, respectively, of accounts receivable deemed uncollectible against the allowance for credit losses. Unbilled accounts receivable represents revenue recognized on contracts for which billings have not yet been presented to customers because the amounts were earned but not contractually billable as of the balance sheet date. The unbilled accounts receivable balance is due within one year. As of March 31, 2023 and December 31, 2022, unbilled accounts receivable of approximately $63.0 million and $60.0 million, respectively, was included in accounts receivable on the Company’s condensed consolidated balance sheets. Deferred Contract Costs Sales commissions earned by the Company’s sales force are considered incremental and recoverable costs of obtaining a contract with a customer. These costs are deferred and then amortized over a period of benefit which is determined to be four years. Amounts expected to be recognized within one year of the balance sheet date are recorded as deferred contract costs, current; the remaining portion is recorded as deferred contract costs, non-current, in the condensed consolidated balance sheets. Deferred contract costs on the Company’s condensed consolidated balance sheets were $91.5 million and $88.4 million as of March 31, 2023 and December 31, 2022, respectively. Amortization expense was $8.6 million and $6.0 million for the three months ended March 31, 2023 and 2022, respectively.

Stockholders' Equity

Stockholders' Equity	3 Months Ended
	Mar. 31, 2023
Equity [Abstract]
Stockholders' Equity	Stockholders’ Equity Class A and Class B Common Stock The Company has two classes of common stock, Class A and Class B. The rights of the holders of Class A and Class B common stock are identical, except with respect to voting and conversion. Each share of Class A common stock is entitled to one vote per share and each share of Class B common stock is entitled to ten votes per share. Shares of Class B common stock may be converted into Class A common stock at any time at the option of the stockholder and are automatically converted to Class A common stock upon sale or transfer, subject to certain limited exceptions. During the three months ended March 31, 2023, 483,392 shares of Class B common stock were converted into Class A common stock. As of March 31, 2023, the Company had authorized 2,000,000,000 shares of Class A common stock and 310,000,000 shares of Class B common stock, each at a par value per share of $0.00001, of which 295,958,300 shares of Class A common stock and 25,487,943 shares of Class B common stock were issued and outstanding. Equity Incentive Plans The Company has two equity incentive plans, the 2012 Equity Incentive Plan (the “2012 Plan”) and the 2019 Equity Incentive Plan (the “2019 Plan”). In connection with the Company's initial public offering of Class A common stock (the "IPO"), the Company ceased granting awards under the 2012 Plan, and all shares that remained available for issuance under the 2012 Plan at that time were transferred to the 2019 Plan. Additionally, as of March 31, 2023, there were 17,309,434 shares of Class A common stock issuable upon conversion of Class B common stock underlying options outstanding under the 2012 Plan. Under the 2019 Plan, the Board and any other committee or subcommittee of the Board may grant stock options, stock appreciation rights, restricted stock awards, restricted stock units (“RSUs”) and performance stock units ("PSUs") and other awards, each equity award valued or based on the Company’s Class A common stock, to employees, directors, consultants and advisors of the Company. As of March 31, 2023, there were 77,411,827 shares available for grant under the 2019 Plan. Stock Options The following table summarizes the Company’s stock option activity and weighted-average exercise prices: Number Of Weighted- Weighted- Aggregate Balance outstanding—December 31, 2022 18,551,857 $ 3.24 4.4 $ 1,303,464 Options granted — — Options exercised (1,208,185) 1.72 Options forfeited or expired (5,901) 7.87 Balance outstanding—March 31, 2023 17,337,771 $ 3.34 4.2 $ 1,201,788 Ending Exercisable—March 31, 2023 16,674,200 $ 3.03 4.1 $ 1,160,959 As of March 31, 2023, there were 28,337 shares of Class A common stock and 17,309,434 shares of Class B common stock issuable upon the exercise of options outstanding. As of December 31, 2022, there were 28,557 shares of Class A common stock and 18,523,300 shares of Class B common stock issuable upon the exercise of options outstanding. Total compensation cost related to unvested awards not yet recognized was approximately $6.0 million and $10.1 million as of March 31, 2023 and December 31, 2022, respectively. The weighted-average period over which this compensation cost related to unvested employee awards will be recognized is 0.4 years and 0.6 years as of March 31, 2023 and December 31, 2022, respectively. There were no options granted during the three months ended March 31, 2023 and 2022. The Company received approximately $2.1 million and $4.2 million in cash proceeds from options exercised during the three months ended March 31, 2023 and 2022, respectively. The intrinsic value of options exercised during the three months ended March 31, 2023 and 2022 was approximately $86.3 million and $165.5 million, respectively. The aggregate fair value of options vested during the three months ended March 31, 2023 and 2022 was $5.0 million and $6.5 million, respectively. Restricted Stock Units, Restricted Stock Awards and Performance Stock Units The following table summarizes the activity for the Company’s unvested RSUs and PSUs: Shares Weighted- Balance—December 31, 2022 12,378,683 $ 106.19 Awarded 2,172,750 71.36 Vested (1,048,215) 110.80 Forfeited/canceled (328,171) 108.37 Balance—March 31, 2023 13,175,047 $ 100.02 The Company granted a total of 1,130,999 restricted shares of Class A common stock in connection with acquisitions during the period from November 2019 to November 2022, which are subject to service-based vesting conditions over approximately four years from the respective grant dates. Total compensation cost related to unvested RSUs and restricted shares of common stock not yet recognized was approximately $1,161.0 million and $1,151.1 million as of March 31, 2023 and December 31, 2022, respectively. The weighted-average period over which this compensation cost related to unvested RSUs and restricted shares of common stock will be recognized is 2.9 years as of March 31, 2023 and December 31, 2022. Total compensation cost related to unvested PSUs not yet recognized was approximately $14.4 million and $19.0 million as of March 31, 2023 and December 31, 2022, respectively. The weighted-average period over which this compensation cost related to unvested PSUs will be recognized is 1.6 years and 1.4 years as of March 31, 2023 and December 31, 2022, respectively. Employee Stock Purchase Plan In September 2019, the Board adopted and approved the 2019 Employee Stock Purchase Plan (the “ESPP”), which became effective on the date of the final prospectus for the IPO. The ESPP is implemented through a series of offerings under which eligible employees are granted purchase rights to purchase shares of the Company’s Class A common stock on specified dates during such offerings. Under the ESPP, the Company may specify offerings with durations of not more than 27 months and may specify shorter purchase periods within each offering. On each purchase date, eligible employees will purchase the shares at a price per share equal to 85% of the lesser of (1) the fair market value of the Company’s Class A common stock on the first trading day of the offering period, or (2) the fair market value of the Company’s Class A common stock on the purchase date, as defined in the ESPP. The Company recognized $4.5 million of stock-based compensation expense related to the ESPP during the three months ended March 31, 2023. As of March 31, 2023, $16.4 million has been withheld on behalf of employees for a future purchase under the ESPP due to the timing of payroll deductions. There were no purchases related to ESPP in the three months ended March 31, 2023. As of March 31, 2023, 17,998,489 shares of Class A common stock remain available for grant under the ESPP. Stock-Based Compensation The Company recognizes and measures compensation expense for all stock-based payment awards granted to employees, directors and nonemployees, including stock options, restricted stock units (“RSUs”), performance-based awards ("PSUs"), and the employee stock purchase plan (the “ESPP”) based on the fair value of the awards on the date of grant. The determination of the grant date fair value using an option-pricing model is affected by the estimated fair value of the Company’s common stock as well as assumptions regarding a number of other complex and subjective variables. These variables include expected stock price volatility over the expected term of the award, actual and projected employee stock option exercise behaviors, the risk-free interest rate for the expected term of the award and expected dividends. The fair value of RSUs and PSUs is determined by the closing price on the date of grant of the Company’s Class A common stock, as reported on the Nasdaq Global Select Market. The Company estimates the fair value of the rights to acquire stock under the ESPP using the Black-Scholes option-pricing model. Stock-based compensation for stock options and RSUs is recognized on a straight-line basis over the requisite service period and account for forfeitures as they occur. Stock-based compensation for PSUs is amortized under the accelerated attribution method and may be adjusted over the vesting period based on interim estimates of performance against pre-set objectives. PSUs will vest upon achievement of specified performance targets and subject to continuous service through the applicable vesting dates. The compensation cost is recognized over the requisite service period when it is probable that the performance condition will be satisfied and the Company accounts for forfeitures as they occur. Stock-based compensation for PSUs is amortized under the accelerated attribution method and may be adjusted over the vesting period based on interim estimates of performance against pre-set objectives. PSUs will vest upon achievement of specified performance targets and subject to continuous service through the applicable vesting dates. The compensation cost is recognized over the requisite service period when it is considered probable that the performance condition will be satisfied and account for forfeitures as they occur. The Company also has certain options that have performance-based vesting conditions; stock-based compensation expense for such awards is recognized on a straight-line basis from the time the vesting condition is likely to be met through the time the vesting condition has been achieved. Stock-based compensation expense was included in the condensed consolidated statement of operations as follows (in thousands): Three Months Ended 2023 2022 Cost of revenue $ 3,725 $ 1,653 Research and development 74,703 44,696 Sales and marketing 23,014 14,595 General and administrative 11,286 5,940 Stock-based compensation, net of amounts capitalized 112,728 66,884 Capitalized stock-based compensation expense 4,227 3,506 Total stock-based compensation expense $ 116,955 $ 70,390

Interest Income and Other Incom

Interest Income and Other Income, Net	3 Months Ended
	Mar. 31, 2023
Interest and Other Income [Abstract]
Interest Income and Other Income, Net	Interest Income and Other Income, Net Interest income and other income, net consist of the following (in thousands): Three Months Ended 2023 2022 Interest income $ 18,520 $ 5,496 Other income (loss), net (1,793) 191 Interest income and other income, net $ 16,727 $ 5,687

Income Taxes

Income Taxes	3 Months Ended
	Mar. 31, 2023
Income Tax Disclosure [Abstract]
Income Taxes	Income Ta xes The Compa ny has an effective tax rate of (17.9)% and 10.3% for the three months ended March 31, 2023 and 2022, respectively . The Company has incurred U.S. operating losses and has minimal profits in its foreign jurisdictions during the quarter. The Company has applied ASC 740, Income Taxes , and has determined that it has uncertain positions that would result in a tax reserve deemed immaterial for each of the three months ended March 31, 2023 and 2022. The Company’s policy is to recognize interest and penalties related to uncertain tax positions in income tax expense. The Company is subject to U.S. federal tax authority, U.S . state tax authority and foreign tax authority examinations. The Company has evaluated the available evidence supporting the realization of its deferred tax assets, including the amount and timing of future taxable income, and has determined that it is more likely than not that its net deferred tax assets will not be realized in the United States. Due to uncertainties surrounding the realization of the deferred tax assets, the Company recorded a full valuation allowance against substantially all of its net deferred tax assets. When the Company determines that it will be able to realize some portion or all of its deferred tax assets, an adjustment to its valuation allowance on its deferred tax assets would have the effect of increasing net income in the period such determination is made. For tax years beginning on or after January 1, 2022, the Tax Cuts and Jobs Act of 2017 eliminates the option to deduct research and development expenditures, as defined under IRC Section 174, in the year incurred. Instead, taxpayers are required to amortize such expenditures over five years if incurred in the U.S. and over fifteen years if incurred in a foreign jurisdiction. For the three months ended March 31, 2023, the Company conformed to this change in tax law. On August 16, 2022, the Inflation Reduction Act ("the Act") was signed into law. The Act includes a 15.0% corporate alternative minimum tax on the adjusted financial statement income of applicable corporations and a 1.0% excise tax on all corporate stock buybacks of public companies for tax years beginning after December 31, 2022. For the three months ended March 31, 2023, the Act did not materially impact the Company's provision for income tax. The Company will continue to monitor any changes in tax law.

Net (Loss) Income Per Share

Net (Loss) Income Per Share	3 Months Ended
	Mar. 31, 2023
Earnings Per Share [Abstract]
Net (Loss) Income Per Share	Net (Loss) Income Per ShareBasic and diluted net (loss) income per common share is presented in conformity with the two-class method required for participating securities. Basic and diluted net (loss) income per share is computed using the weighted-average number of shares of common stock outstanding during the period. The undistributed earnings are allocated based on the contractual participation rights of the Class A and Class B common stock as if the earnings for the year have been distributed. As the liquidation and dividend rights are identical, the undistributed earnings are allocated on a proportionate basis. Further, as the conversion of Class B common stock is assumed in the computation of the diluted net (loss) income per share of Class A common stock, the undistributed earnings are equal to net (loss) income for that computation. The following table presents the calculation of basic and diluted net (loss) income per share (in thousands, except per share data): Three Months Ended 2023 2022 Class A Class B Class A Class B Basic net (loss) income per share: Numerator: Net (loss) income $ (22,157) $ (1,929) $ 8,332 $ 1,406 Denominator: Weighted-average shares used in calculating net (loss) income per share, basic 293,712 25,574 268,197 45,259 Basic net (loss) income per share $ (0.08) $ (0.08) $ 0.03 $ 0.03 Diluted net (loss) income per share: Numerator: Allocation of distributed net (loss) income for basic computation $ (22,157) $ (1,929) $ 8,332 $ 1,406 Reallocation of undistributed net (loss) income as a result of conversion of Class B to Class A shares (1,929) — 1,406 — Allocation of undistributed (loss) income $ (24,086) $ (1,929) $ 9,738 $ 1,406 Denominator: Number of shares used in basic calculation 293,712 25,574 268,197 45,259 Weighted-average effect of diluted securities: Conversion of Class B to Class A common shares outstanding 25,574 — 45,259 — Employee stock options — — 20,075 — Unvested early exercises — — 11 — Restricted stock units — — 3,373 — Unvested restricted stock in connection with acquisition — — 655 — Shares issuable upon conversion of the convertible senior notes — — 8,098 — Number of shares used in diluted calculation 319,286 25,574 345,668 45,259 Diluted net (loss) income per share $ (0.08) $ (0.08) $ 0.03 $ 0.03 Potentially dilutive securities that were not included in the diluted per share calculations because they would be anti-dilutive were as follows (in thousands): As of March 31, 2023 2022 Shares subject to outstanding stock options, RSUs and PSUs 30,512 1,540 Unvested restricted shares of common stock 1,088 — Shares subject to the employee stock purchase plan 311 48 Shares issuable upon conversion of the convertible senior notes 8,098 — Total 40,009 1,588 ASU No. 2020-06 requires the application of the if-converted method to calculate the impact of convertible instruments on diluted earnings per share when the instruments may be settled in cash or shares. The Company uses the if-converted method for calculating any potential dilutive effect of the conversion options embedded in the 2025 Notes on diluted net income per share as required under ASU No. 2020-06 to determine the dilutive effect of the Notes. See Note 7, Convertible Senior Notes for more information. The Company entered into Capped Calls in connection with the issuance of the 2025 Notes. The effect of the Capped Calls was also excluded from the calculation of diluted net income per share as the effect of the Capped Calls would have been anti-dilutive. The Capped Calls are expected to partially offset the potential dilution to the Company’s Class A common stock upon any conversion of the 2025 Notes.

Basis of Presentation and Sum_2

Basis of Presentation and Summary of Significant Accounting Policies (Policies)	3 Months Ended
	Mar. 31, 2023
Accounting Policies [Abstract]
Basis of Presentation	Basis of Presentation The accompanying condensed consolidated financial statements have been prepared in accordance with GAAP.
Principles of Consolidation	Principles of Consolidation The condensed consolidated financial statements include the accounts of Datadog, Inc. and its wholly-owned subsidiaries. All intercompany transactions and balances have been eliminated in consolidation.
Use of Estimates	Use of Estimates The preparation of condensed consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the amounts reported in the condensed consolidated financial statements and accompanying notes. Such estimates include the fair value of marketable securities, the allowance for credit losses, the fair value of acquired assets and assumed liabilities from business combinations, useful lives of property, equipment, software and finite lived intangibles, stock-based compensation, valuation of long-lived assets and their recoverability, including goodwill, the incremental borrowing rate for operating leases, estimated expected period of benefit for deferred contract costs, fair value of the liability component of the convertible debt, realization of deferred tax assets and uncertain tax positions, revenue recognition and the allocation of overhead costs between cost of revenue and operating expenses. The Company bases its estimates on historical experience and also on assumptions that management considers reasonable. The Company assesses these estimates on a regular basis; however, actual results could materially differ from these estimates.

Marketable Securities (Tables)

Marketable Securities (Tables)	3 Months Ended
	Mar. 31, 2023
Investments, Debt and Equity Securities [Abstract]
Schedule of Available-for-Sale Marketable Securities	The following is a summary of available-for-sale marketable securities, excluding those securities classified within cash and cash equivalents on the condensed consolidated balance sheets as of March 31, 2023 and December 31, 2022 (in thousands): March 31, 2023 Amortized Unrealized Unrealized Fair Commercial debt securities $ 853,994 $ 924 $ (4,368) $ 850,550 U.S. government treasury securities 319,009 491 (569) 318,931 Commercial paper 295,478 75 (299) 295,254 Certificates of deposit 170,009 24 (348) 169,685 U.S. government agency securities 160,905 81 (64) 160,922 Marketable securities $ 1,799,395 $ 1,595 $ (5,648) $ 1,795,342 December 31, 2022 Amortized Unrealized Unrealized Fair Commercial debt securities $ 813,598 $ 64 $ (7,554) $ 806,108 Commercial paper 357,030 64 (821) 356,273 Certificates of deposit 174,080 37 (587) 173,530 U.S. government treasury securities 120,977 — (1,099) 119,878 U.S. government agency securities 89,718 12 (178) 89,552 Marketable securities $ 1,555,403 $ 177 $ (10,239) $ 1,545,341
Schedule of Fair Values of Available-for-Sale Marketable Securities, by Remaining Contractual Maturity	As of March 31, 2023, the fair values of available-for-sale marketable securities, by remaining contractual maturity, were as follows (in thousands): Due within one year $ 1,113,746 Due in one year through five years 681,596 Total $ 1,795,342

Fair Value Measurements (Tables

Fair Value Measurements (Tables)	3 Months Ended
	Mar. 31, 2023
Fair Value Disclosures [Abstract]
Schedule of Financial Assets and Liabilities Measured at Fair Value on Recurring Basis	The following tables present information about the Company’s financial assets and liabilities that have been measured at fair value on a recurring basis as of March 31, 2023 and December 31, 2022, and indicate the fair value hierarchy of the valuation inputs utilized to determine such fair value (in thousands): Fair Value Measurement as of March 31, 2023 Level 1 Level 2 Level 3 Total Financial Assets: Cash equivalents: Money market funds $ 196,835 $ — $ — $ 196,835 Marketable Securities: Corporate debt securities — 850,550 — 850,550 U.S. government treasury securities — 318,931 — 318,931 Commercial paper — 295,254 — 295,254 Certificates of deposit — 169,685 — 169,685 U.S. government agency securities — 160,922 — 160,922 Total financial assets $ 196,835 $ 1,795,342 $ — $ 1,992,177 Fair Value Measurement as of December 31, 2022 Level 1 Level 2 Level 3 Total Financial Assets: Cash equivalents: Money market funds $ 302,902 $ — $ — $ 302,902 Corporate debt securities — 2,493 — 2,493 Marketable Securities: Corporate debt securities — 806,108 — 806,108 Commercial paper — 356,273 — 356,273 Certificates of deposit — 173,530 — 173,530 U.S. government treasury securities — 119,878 — 119,878 U.S. government agency securities — 89,552 — 89,552 Total financial assets $ 302,902 $ 1,547,834 $ — $ 1,850,736

Property and Equipment, Net (Ta

Property and Equipment, Net (Tables)	3 Months Ended
	Mar. 31, 2023
Property, Plant and Equipment [Abstract]
Schedule of Property and Equipment, Net	Property and equipment, net consisted of the following (in thousands): March 31, December 31, Computers and equipment $ 33,316 $ 33,376 Furniture and fixtures 13,442 13,315 Leasehold improvements 35,189 27,683 Capitalized software development costs 149,464 134,890 Total property and equipment $ 231,411 $ 209,264 Less: accumulated depreciation and amortization (93,011) (83,918) Total property and equipment, net $ 138,400 $ 125,346

Acquisitions, Intangible Asse_2

Acquisitions, Intangible Assets and Goodwill (Tables)	3 Months Ended
	Mar. 31, 2023
Acquisitions, Intangible Assets And Goodwill [Abstract]
Schedule of Intangible Assets, Net	Intangible assets, net consisted of the following (in thousands): March 31, 2023 Gross Accumulated Net Amortization Developed technology $ 24,460 $ (11,980) $ 12,480 3 years Customer relationships 3,300 (1,628) 1,672 4 years Total $ 27,760 $ (13,608) $ 14,152 December 31, 2022 Gross Accumulated Net Amortization Developed technology $ 24,460 $ (9,970) $ 14,490 3 years Customer relationships 3,300 (1,425) 1,875 4 years Total $ 27,760 $ (11,395) $ 16,365
Schedule of Future Amortization Expense	As of March 31, 2023, future amortization expense by year is expected to be as follows (in thousands): Amount Remainder of 2023 $ 6,522 2024 5,744 2025 1,886 Total $ 14,152
Schedule of Changes in Carrying Amount of Goodwill	The changes in the carrying amount of goodwill were as follows (in thousands): Amount Balance as of December 31, 2022 $ 348,277 Foreign currency translation adjustments 259 Balance as of March 31, 2023 $ 348,536

Convertible Senior Notes (Table

Convertible Senior Notes (Tables)	3 Months Ended
	Mar. 31, 2023
Debt Disclosure [Abstract]
Schedule of Net Carrying Amount of Liability and Equity Component of 2025 Notes	The net carrying amount of the liability component of the 2025 Notes was as follows (in thousands): March 31, December 31, Convertible senior notes, net: Principal $ 747,496 $ 747,496 Unamortized debt issuance costs (7,804) (8,649) Net carrying amount $ 739,692 $ 738,847
Schedule of Interest Expense related to 2025 Notes	The following table sets forth the interest expense related to the 2025 Notes for the three months ended March 31, 2023 and 2022 (in thousands): Three Months Ended 2023 2022 Contractual interest expense $ 234 $ 234 Amortization of issuance costs 845 840 Total $ 1,079 $ 1,074

Leases (Tables)

Leases (Tables)	3 Months Ended
	Mar. 31, 2023
Leases [Abstract]
Schedule of Components of Lease Cost Recognized	The components of lease cost recognized within the Company’s condensed consolidated statements of operations were as follows (in thousands): Three Months Ended 2023 2022 Operating lease cost (1) $ 7,380 $ 5,237 Short-term lease cost 2,519 1,169 1) Includes non-cash lease expense of $5.9 million and $4.4 million for the three months ended March 31, 2023 and 2022, respectively.
Schedule of Supplemental Cash Flow Information and Non-cash Activity	Supplemental cash flow information and non-cash activity related to the Company’s operating leases are as follows (in thousands): Three Months Ended 2023 2022 Cash paid for amounts included in measurement of lease liabilities $ 6,552 $ 5,837 Operating lease assets obtained in exchange for new lease liabilities 12,539 5,181
Schedule of Maturities of Lease Liabilities	Maturities of lease liabilities by fiscal year for the Company’s operating leases are as follows (in thousands): Amount Remainder of 2023 $ 5,645 2024 21,323 2025 19,686 2026 17,490 2027 16,906 2028 and beyond 56,224 Total lease payments $ 137,274 Less: imputed interest (30,635) Present value of lease liabilities $ 106,639
Schedule of Weighted Average Remaining Lease Term and Discount Rate	Weighted average remaining lease term and discount rate for the Company’s operating leases are as follows: March 31, Weighted-average remaining lease term (years) 6.4 Weighted-average discount rate 5.43 %

Revenue (Tables)

Revenue (Tables)	3 Months Ended
	Mar. 31, 2023
Revenue from Contract with Customer [Abstract]
Schedule of Revenue by Geographic Area	Revenue by location is determined by the billing address of the customer. The following table sets forth revenue by geographic area (in thousands): Three Months Ended 2023 2022 North America $ 341,216 $ 259,862 International 140,498 103,168 Total $ 481,714 $ 363,030

Stockholders' Equity (Tables)

Stockholders' Equity (Tables)	3 Months Ended
	Mar. 31, 2023
Equity [Abstract]
Schedule of Stock Option Activity and Weighted Average Exercise Prices	The following table summarizes the Company’s stock option activity and weighted-average exercise prices: Number Of Weighted- Weighted- Aggregate Balance outstanding—December 31, 2022 18,551,857 $ 3.24 4.4 $ 1,303,464 Options granted — — Options exercised (1,208,185) 1.72 Options forfeited or expired (5,901) 7.87 Balance outstanding—March 31, 2023 17,337,771 $ 3.34 4.2 $ 1,201,788 Ending Exercisable—March 31, 2023 16,674,200 $ 3.03 4.1 $ 1,160,959
Schedule of Activity for Unvested RSUs	The following table summarizes the activity for the Company’s unvested RSUs and PSUs: Shares Weighted- Balance—December 31, 2022 12,378,683 $ 106.19 Awarded 2,172,750 71.36 Vested (1,048,215) 110.80 Forfeited/canceled (328,171) 108.37 Balance—March 31, 2023 13,175,047 $ 100.02
Schedule of Activity for Unvested PSUs	The following table summarizes the activity for the Company’s unvested RSUs and PSUs: Shares Weighted- Balance—December 31, 2022 12,378,683 $ 106.19 Awarded 2,172,750 71.36 Vested (1,048,215) 110.80 Forfeited/canceled (328,171) 108.37 Balance—March 31, 2023 13,175,047 $ 100.02
Schedule of Stock-based Compensation Expense	Stock-based compensation expense was included in the condensed consolidated statement of operations as follows (in thousands): Three Months Ended 2023 2022 Cost of revenue $ 3,725 $ 1,653 Research and development 74,703 44,696 Sales and marketing 23,014 14,595 General and administrative 11,286 5,940 Stock-based compensation, net of amounts capitalized 112,728 66,884 Capitalized stock-based compensation expense 4,227 3,506 Total stock-based compensation expense $ 116,955 $ 70,390

Interest Income and Other Inc_2

Interest Income and Other Income, Net (Tables)	3 Months Ended
	Mar. 31, 2023
Interest and Other Income [Abstract]
Schedule of Interest Income and Other Income, Net	Interest income and other income, net consist of the following (in thousands): Three Months Ended 2023 2022 Interest income $ 18,520 $ 5,496 Other income (loss), net (1,793) 191 Interest income and other income, net $ 16,727 $ 5,687

Net (Loss) Income Per Share (Ta

Net (Loss) Income Per Share (Tables)	3 Months Ended
	Mar. 31, 2023
Earnings Per Share [Abstract]
Schedule of Calculation of Basic and Diluted Net (Loss) Income Per Share	The following table presents the calculation of basic and diluted net (loss) income per share (in thousands, except per share data): Three Months Ended 2023 2022 Class A Class B Class A Class B Basic net (loss) income per share: Numerator: Net (loss) income $ (22,157) $ (1,929) $ 8,332 $ 1,406 Denominator: Weighted-average shares used in calculating net (loss) income per share, basic 293,712 25,574 268,197 45,259 Basic net (loss) income per share $ (0.08) $ (0.08) $ 0.03 $ 0.03 Diluted net (loss) income per share: Numerator: Allocation of distributed net (loss) income for basic computation $ (22,157) $ (1,929) $ 8,332 $ 1,406 Reallocation of undistributed net (loss) income as a result of conversion of Class B to Class A shares (1,929) — 1,406 — Allocation of undistributed (loss) income $ (24,086) $ (1,929) $ 9,738 $ 1,406 Denominator: Number of shares used in basic calculation 293,712 25,574 268,197 45,259 Weighted-average effect of diluted securities: Conversion of Class B to Class A common shares outstanding 25,574 — 45,259 — Employee stock options — — 20,075 — Unvested early exercises — — 11 — Restricted stock units — — 3,373 — Unvested restricted stock in connection with acquisition — — 655 — Shares issuable upon conversion of the convertible senior notes — — 8,098 — Number of shares used in diluted calculation 319,286 25,574 345,668 45,259 Diluted net (loss) income per share $ (0.08) $ (0.08) $ 0.03 $ 0.03
Schedule of Potentially Dilutive Securities not Included in Diluted Per Share Calculations	Potentially dilutive securities that were not included in the diluted per share calculations because they would be anti-dilutive were as follows (in thousands): As of March 31, 2023 2022 Shares subject to outstanding stock options, RSUs and PSUs 30,512 1,540 Unvested restricted shares of common stock 1,088 — Shares subject to the employee stock purchase plan 311 48 Shares issuable upon conversion of the convertible senior notes 8,098 — Total 40,009 1,588

Marketable Securities - Schedul

Marketable Securities - Schedule of Available-for-sale Marketable Securities (Details) - USD ($) $ in Thousands	Mar. 31, 2023	Dec. 31, 2022
Marketable Securities [Line Items]
Amortized Cost	$ 1,799,395	$ 1,555,403
Unrealized Gain	1,595	177
Unrealized Losses	(5,648)	(10,239)
Fair Value	1,795,342	1,545,341
Commercial debt securities
Marketable Securities [Line Items]
Amortized Cost	853,994	813,598
Unrealized Gain	924	64
Unrealized Losses	(4,368)	(7,554)
Fair Value	850,550	806,108
U.S. government treasury securities
Marketable Securities [Line Items]
Amortized Cost	319,009	120,977
Unrealized Gain	491	0
Unrealized Losses	(569)	(1,099)
Fair Value	318,931	119,878
Commercial paper
Marketable Securities [Line Items]
Amortized Cost	295,478	357,030
Unrealized Gain	75	64
Unrealized Losses	(299)	(821)
Fair Value	295,254	356,273
Certificates of deposit
Marketable Securities [Line Items]
Amortized Cost	170,009	174,080
Unrealized Gain	24	37
Unrealized Losses	(348)	(587)
Fair Value	169,685	173,530
U.S. government agency securities
Marketable Securities [Line Items]
Amortized Cost	160,905	89,718
Unrealized Gain	81	12
Unrealized Losses	(64)	(178)
Fair Value	$ 160,922	$ 89,552

Marketable Securities - Sched_2

Marketable Securities - Schedule of Fair Values of Available-for-Sale Marketable Securities, by Remaining Contractual Maturity (Details) $ in Thousands	Mar. 31, 2023 USD ($)
Investments, Debt and Equity Securities [Abstract]
Due within one year	$ 1,113,746
Due in one year through five years	681,596
Total	$ 1,795,342

Fair Value Measurements (Detail

Fair Value Measurements (Details) - USD ($) $ in Thousands	Mar. 31, 2023	Dec. 31, 2022
Financial Assets:
Marketable Securities:	$ 1,795,342	$ 1,545,341
U.S. government treasury securities
Financial Assets:
Marketable Securities:	318,931	119,878
Commercial paper
Financial Assets:
Marketable Securities:	295,254	356,273
Certificates of deposit
Financial Assets:
Marketable Securities:	169,685	173,530
U.S. government agency securities
Financial Assets:
Marketable Securities:	160,922	89,552
Fair Value, Recurring
Financial Assets:
Total financial assets	1,992,177	1,850,736
Fair Value, Recurring | Corporate debt securities
Financial Assets:
Marketable Securities:	850,550	806,108
Fair Value, Recurring | U.S. government treasury securities
Financial Assets:
Marketable Securities:	318,931	119,878
Fair Value, Recurring | Commercial paper
Financial Assets:
Marketable Securities:	295,254	356,273
Fair Value, Recurring | Certificates of deposit
Financial Assets:
Marketable Securities:	169,685	173,530
Fair Value, Recurring | U.S. government agency securities
Financial Assets:
Marketable Securities:	160,922	89,552
Fair Value, Recurring | Money market funds
Financial Assets:
Cash equivalents:	196,835	302,902
Fair Value, Recurring | Corporate debt securities
Financial Assets:
Cash equivalents:		2,493
Fair Value, Recurring | Level 1
Financial Assets:
Total financial assets	196,835	302,902
Fair Value, Recurring | Level 1 | Corporate debt securities
Financial Assets:
Marketable Securities:	0	0
Fair Value, Recurring | Level 1 | U.S. government treasury securities
Financial Assets:
Marketable Securities:	0	0
Fair Value, Recurring | Level 1 | Commercial paper
Financial Assets:
Marketable Securities:	0	0
Fair Value, Recurring | Level 1 | Certificates of deposit
Financial Assets:
Marketable Securities:	0	0
Fair Value, Recurring | Level 1 | U.S. government agency securities
Financial Assets:
Marketable Securities:	0	0
Fair Value, Recurring | Level 1 | Money market funds
Financial Assets:
Cash equivalents:	196,835	302,902
Fair Value, Recurring | Level 1 | Corporate debt securities
Financial Assets:
Cash equivalents:		0
Fair Value, Recurring | Level 2
Financial Assets:
Total financial assets	1,795,342	1,547,834
Fair Value, Recurring | Level 2 | Corporate debt securities
Financial Assets:
Marketable Securities:	850,550	806,108
Fair Value, Recurring | Level 2 | U.S. government treasury securities
Financial Assets:
Marketable Securities:	318,931	119,878
Fair Value, Recurring | Level 2 | Commercial paper
Financial Assets:
Marketable Securities:	295,254	356,273
Fair Value, Recurring | Level 2 | Certificates of deposit
Financial Assets:
Marketable Securities:	169,685	173,530
Fair Value, Recurring | Level 2 | U.S. government agency securities
Financial Assets:
Marketable Securities:	160,922	89,552
Fair Value, Recurring | Level 2 | Money market funds
Financial Assets:
Cash equivalents:	0	0
Fair Value, Recurring | Level 2 | Corporate debt securities
Financial Assets:
Cash equivalents:		2,493
Fair Value, Recurring | Level 3
Financial Assets:
Total financial assets	0	0
Fair Value, Recurring | Level 3 | Corporate debt securities
Financial Assets:
Marketable Securities:	0	0
Fair Value, Recurring | Level 3 | U.S. government treasury securities
Financial Assets:
Marketable Securities:	0	0
Fair Value, Recurring | Level 3 | Commercial paper
Financial Assets:
Marketable Securities:	0	0
Fair Value, Recurring | Level 3 | Certificates of deposit
Financial Assets:
Marketable Securities:	0	0
Fair Value, Recurring | Level 3 | U.S. government agency securities
Financial Assets:
Marketable Securities:	0	0
Fair Value, Recurring | Level 3 | Money market funds
Financial Assets:
Cash equivalents:	$ 0	0
Fair Value, Recurring | Level 3 | Corporate debt securities
Financial Assets:
Cash equivalents:		$ 0

Property and Equipment, Net - C

Property and Equipment, Net - Components of Property and Equipment, Net (Details) - USD ($) $ in Thousands	Mar. 31, 2023	Dec. 31, 2022
Property, Plant and Equipment [Line Items]
Total property and equipment	$ 231,411	$ 209,264
Less: accumulated depreciation and amortization	(93,011)	(83,918)
Total property and equipment, net	138,400	125,346
Computers and equipment
Property, Plant and Equipment [Line Items]
Total property and equipment	33,316	33,376
Furniture and fixtures
Property, Plant and Equipment [Line Items]
Total property and equipment	13,442	13,315
Leasehold improvements
Property, Plant and Equipment [Line Items]
Total property and equipment	35,189	27,683
Capitalized software development costs
Property, Plant and Equipment [Line Items]
Total property and equipment	$ 149,464	$ 134,890

Property and Equipment, Net - A

Property and Equipment, Net - Additional Information (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Property, Plant and Equipment [Abstract]
Depreciation and amortization expense	$ 8.1	$ 5.8

Acquisitions, Intangible Asse_3

Acquisitions, Intangible Assets and Goodwill - Additional Information (Details) $ in Thousands	3 Months Ended		12 Months Ended
	Mar. 31, 2023 USD ($)	Mar. 31, 2022 USD ($)	Dec. 31, 2022 USD ($) businessCombination
Business Acquisition [Line Items]
Goodwill	$ 348,536		$ 348,277
Intangible amortization expense	$ 2,200	$ 1,600
Series of Individually Immaterial Business Acquisitions
Business Acquisition [Line Items]
Number of purchase agreements | businessCombination			4
Purchase price allocated to intangible assets			$ 8,200
Goodwill			$ 56,600

Acquisitions, Intangible Asse_4

Acquisitions, Intangible Assets and Goodwill - Schedule of Intangible Assets, Net (Details) - USD ($) $ in Thousands	3 Months Ended	12 Months Ended
	Mar. 31, 2023	Dec. 31, 2022
Finite-Lived Intangible Assets [Line Items]
Gross Carrying Amount	$ 27,760	$ 27,760
Accumulated Amortization	(13,608)	(11,395)
Net Carrying Amount	14,152	16,365
Developed technology
Finite-Lived Intangible Assets [Line Items]
Gross Carrying Amount	24,460	24,460
Accumulated Amortization	(11,980)	(9,970)
Net Carrying Amount	$ 12,480	$ 14,490
Amortization Period	3 years	3 years
Customer relationships
Finite-Lived Intangible Assets [Line Items]
Gross Carrying Amount	$ 3,300	$ 3,300
Accumulated Amortization	(1,628)	(1,425)
Net Carrying Amount	$ 1,672	$ 1,875
Amortization Period	4 years	4 years

Acquisitions, Intangible Asse_5

Acquisitions, Intangible Assets and Goodwill - Schedule of Future Amortization Expense (Details) - USD ($) $ in Thousands	Mar. 31, 2023	Dec. 31, 2022
Acquisitions, Intangible Assets And Goodwill [Abstract]
Remainder of 2022	$ 6,522
2024	5,744
2025	1,886
Net Carrying Amount	$ 14,152	$ 16,365

Acquisitions, Intangible Asse_6

Acquisitions, Intangible Assets and Goodwill - Schedule of Changes in Carrying Amount of Goodwill (Details) $ in Thousands	3 Months Ended
	Mar. 31, 2023 USD ($)
Goodwill [Roll Forward]
Goodwill, beginning balance	$ 348,277
Foreign currency translation adjustments	259
Goodwill, ending balance	$ 348,536

Convertible Senior Notes - Addi

Convertible Senior Notes - Additional Information (Details) $ / shares in Units, shares in Millions		3 Months Ended
	Jun. 02, 2020 USD ($) d $ / shares	Mar. 31, 2023 USD ($) $ / shares shares	Dec. 31, 2022 USD ($)	Mar. 31, 2022 USD ($)	Dec. 31, 2021 USD ($)	Jan. 01, 2021 USD ($)
Debt Instrument [Line Items]
Stockholders' equity		$ 1,512,099,000	$ 1,410,505,000	$ 1,116,857,000	$ 1,041,203,000
Net carrying amount		739,692,000	738,847,000
Accumulated Deficit
Debt Instrument [Line Items]
Stockholders' equity		(226,352,000)	(202,266,000)	(142,368,000)	(152,106,000)
Additional Paid-in Capital
Debt Instrument [Line Items]
Stockholders' equity		1,744,221,000	1,625,190,000	$ 1,271,777,000	$ 1,197,136,000
Cumulative Effect, Period of Adoption, Adjustment | Accounting Standards Update 2020-06
Debt Instrument [Line Items]
Net carrying amount						$ 156,300,000
Cumulative Effect, Period of Adoption, Adjustment | Accounting Standards Update 2020-06 | Accumulated Deficit
Debt Instrument [Line Items]
Stockholders' equity						16,800,000
Cumulative Effect, Period of Adoption, Adjustment | Accounting Standards Update 2020-06 | Additional Paid-in Capital
Debt Instrument [Line Items]
Stockholders' equity						$ (173,100,000)
0.125% Convertible Senior Notes due 2025
Debt Instrument [Line Items]
Principal	$ 747,500,000	747,496,000	747,496,000
Debt instrument, interest rate	0.125%
Debt instrument, net proceeds from sale of notes	$ 730,200,000
Debt instrument, trading days | d	20
Debt instrument, consecutive trading days | d	30
Debt instrument, threshold percentage of conversion price	130%
Debt instrument, principal amount denomination used in conversion		100
Debt instrument, convertible carrying amount of equity component	$ 177,200,000
Debt issuance costs	17,300,000
Issuance cost attributable to liability component	$ 13,200,000
Debt instrument, effective interest rate	5.97%
Issuance cost attributable to equity component	$ 4,100,000
Net carrying amount		739,692,000	$ 738,847,000
Debt instrument, estimated fair value		$ 806,700,000
Initial cap price per share of capped calls (in dollars per share) | $ / shares		$ 151.04
Cost incurred to purchase capped calls		$ 89,600,000
0.125% Convertible Senior Notes due 2025 | Class A Common Stock
Debt Instrument [Line Items]
Common stock covered under capped calls (in shares) | shares		8.1
0.125% Convertible Senior Notes due 2025 | Redemption, On or After June 20, 2023, and Prior to 31st Scheduled Trading Day
Debt Instrument [Line Items]
Debt instrument, trading days | d	20
Debt instrument, consecutive trading days | d	30
Debt instrument, threshold percentage of conversion price	130%
Debt instrument redemption price percentage of principal amount redeemed	100%
0.125% Convertible Senior Notes due 2025 | Conversion Preceding March 15, 2025, Scenario One
Debt Instrument [Line Items]
Debt instrument, trading days | d	20
Debt instrument, consecutive trading days | d	30
Debt instrument, threshold percentage of conversion price	130%
0.125% Convertible Senior Notes due 2025 | Conversion Preceding March 15, 2025, Scenario Two
Debt Instrument [Line Items]
Debt instrument, consecutive trading days | d	10
Debt instrument, convertible, measurement period | d	5
Debt instrument, principal amount denomination used in conversion	$ 1,000
Debt instrument, convertible, threshold maximum percentage of product of last reported sale price of common stock	98%
0.125% Convertible Senior Notes due 2025 | Conversion, On or After March 15, 2025
Debt Instrument [Line Items]
Debt instrument, principal amount denomination used in conversion	$ 1,000
Debt instrument, conversion ratio	0.0108338
Debt instrument, conversion price per share (in dollars per share) | $ / shares	$ 92.30

Convertible Senior Notes - Sche

Convertible Senior Notes - Schedule of Net Carrying Amount of Liability Component of 2025 Notes (Details) - USD ($) $ in Thousands	Mar. 31, 2023	Dec. 31, 2022	Jun. 02, 2020
Debt Instrument [Line Items]
Net carrying amount	$ 739,692	$ 738,847
0.125% Convertible Senior Notes due 2025
Debt Instrument [Line Items]
Principal	747,496	747,496	$ 747,500
Unamortized debt issuance costs	(7,804)	(8,649)
Net carrying amount	$ 739,692	$ 738,847

Convertible Senior Notes - Inte

Convertible Senior Notes - Interest Expense related to 2025 Notes (Details) - 0.125% Convertible Senior Notes due 2025 - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Debt Instrument [Line Items]
Contractual interest expense	$ 234	$ 234
Amortization of issuance costs	845	840
Total	$ 1,079	$ 1,074

Commitments and Contingencies (

Commitments and Contingencies (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Commitments and Contingencies Disclosure [Abstract]
Matching contributions to the 401(k) plan	$ 1.4	$ 1.2

Leases - Additional Information

Leases - Additional Information (Details) $ in Millions	3 Months Ended
	Mar. 31, 2023 USD ($)
Leases [Abstract]
Operating lease, renewal term	5 years
Operating lease, termination term	1 year
Operating lease not yet commenced, undiscounted future payments	$ 199.5
Operating lease not yet commenced, term of contract	8 years 10 months 24 days

Leases - Summary of Components

Leases - Summary of Components of Lease Cost Recognized (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Leases [Abstract]
Operating lease cost	$ 7,380	$ 5,237
Short-term lease cost	2,519	1,169
Operating lease, non-cash lease expense	$ 5,900	$ 4,400

Leases - Summary of Supplementa

Leases - Summary of Supplemental Cash Flow Information and Non-cash Activity (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Leases [Abstract]
Cash paid for amounts included in measurement of lease liabilities	$ 6,552	$ 5,837
Operating lease assets obtained in exchange for new lease liabilities	$ 12,539	$ 5,181

Leases - Summary of Maturities

Leases - Summary of Maturities of Lease Liabilities (Details) $ in Thousands	Mar. 31, 2023 USD ($)
Leases [Abstract]
Remainder of 2023	$ 5,645
2024	21,323
2025	19,686
2026	17,490
2027	16,906
2028 and beyond	56,224
Total lease payments	137,274
Less: imputed interest	(30,635)
Present value of lease liabilities	$ 106,639

Leases - Summary of Weighted Av

Leases - Summary of Weighted Average Remaining Lease Term and Discount Rate (Details)	Mar. 31, 2023
Leases [Abstract]
Weighted-average remaining lease term (years)	6 years 4 months 24 days
Weighted-average discount rate	5.43%

Revenue - Schedule of Revenue b

Revenue - Schedule of Revenue by Geographic Area (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Disaggregation of Revenue [Line Items]
Total	$ 481,714	$ 363,030
North America
Disaggregation of Revenue [Line Items]
Total	341,216	259,862
International
Disaggregation of Revenue [Line Items]
Total	$ 140,498	$ 103,168

Revenue - Additional Informatio

Revenue - Additional Information (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022	Dec. 31, 2022
Revenue from Contract with Customer [Abstract]
Revenue recognized	$ 245,300	$ 165,400
Remaining performance obligations	1,138,300		$ 1,057,200
Accounts charged of accounts receivable deemed uncollectible against the allowance for credit losses	1,300	400
Unbilled accounts receivable	$ 63,000		60,000
Deferred contract costs amortization period	4 years
Deferred contract costs	$ 91,500		$ 88,400
Amortization of deferred contract costs	$ 8,648	$ 6,022

Revenue - Revenue, Remaining Pe

Revenue - Revenue, Remaining Performance Obligation (Details) - USD ($) $ in Millions	Mar. 31, 2023	Dec. 31, 2022
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Remaining performance obligations	$ 1,138.3	$ 1,057.2
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date: 2023-04-01
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Remaining performance obligations, expected to recognize period	24 months

Stockholders' Equity - Addition

Stockholders' Equity - Additional Information (Details) $ / shares in Units, $ in Thousands	1 Months Ended	3 Months Ended		12 Months Ended	37 Months Ended
	Sep. 30, 2019	Mar. 31, 2023 USD ($) plan class $ / shares shares	Mar. 31, 2022 USD ($) shares	Dec. 31, 2022 USD ($) $ / shares shares	Nov. 30, 2022 shares
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of common stock classes | class		2
Number of equity incentive plan | plan		2
Options granted (in shares)		0	0
Proceeds from exercise of stock options | $		$ 2,098	$ 4,245
Intrinsic value of options exercised | $		86,300	165,500
Aggregate fair value of options vested | $		5,000	6,500
Stock-based compensation, net of amounts capitalized | $		112,728	$ 66,884
Employee stock options
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Total compensation cost related to unvested awards not yet recognized | $		$ 6,000		$ 10,100
Weighted average period over compensation cost related to unvested employee awards		4 months 24 days		7 months 6 days
Unvested restricted stock in connection with acquisition
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Awarded (in shares)					1,130,999
Award vesting period					4 years
Restricted Stock Units and Restricted Stock Awards
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Weighted average period over compensation cost related to unvested employee awards		2 years 10 months 24 days		2 years 10 months 24 days
Total compensation cost related to unvested awards not yet recognized | $		$ 1,161,000		$ 1,151,100
Service-based Restricted Shares
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Weighted average period over compensation cost related to unvested employee awards		1 year 7 months 6 days		1 year 4 months 24 days
Total compensation cost related to unvested awards not yet recognized | $		$ 14,400		$ 19,000
2019 Equity Incentive Plan
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of shares available for grant (in shares)		77,411,827
Employee Stock Purchase Plan
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based payment arrangement, expiration period	27 months
Purchase price as percentage of fair market value	85%
Stock-based compensation, net of amounts capitalized | $		$ 4,500
Amounts withheld on behalf of employees for a future purchase | $		$ 16,400
Class A Common Stock
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of voting rights entitled to stockholders per share (in dollars per share) | $ / shares		$ 1
Common stock, authorized (in shares)		2,000,000,000		2,000,000,000
Common stock, par value (in dollars per share) | $ / shares		$ 0.00001		$ 0.00001
Common stock, outstanding (in shares)		295,958,300		293,573,825
Stock issuable upon the exercise of options outstanding (in shares)		28,337		28,557
Class A Common Stock | 2012 Equity Incentive Plan
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock issuable upon conversion (in shares)		17,309,434
Class A Common Stock | Employee Stock Purchase Plan
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of shares available for grant (in shares)		17,998,489
Class B Common Stock
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of voting rights entitled to stockholders per share (in dollars per share) | $ / shares		$ 10
Common stock, number of shares converted (in shares)		483,392
Common stock, authorized (in shares)		310,000,000		310,000,000
Common stock, par value (in dollars per share) | $ / shares		$ 0.00001		$ 0.00001
Common stock, outstanding (in shares)		25,487,943		25,616,018
Stock issuable upon the exercise of options outstanding (in shares)		17,309,434		18,523,300

Stockholders' Equity - Schedule

Stockholders' Equity - Schedule of Stock Option Activity and Weighted Average Exercise Prices (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended		12 Months Ended
	Mar. 31, 2023	Mar. 31, 2022	Dec. 31, 2022
Number Of Options Outstanding
Beginning balance (in shares)	18,551,857
Options granted (in shares)	0	0
Options exercised (in shares)	(1,208,185)
Options forfeited or expired (in shares)	(5,901)
Ending balance (in shares)	17,337,771		18,551,857
Exercisable (in shares)	16,674,200
Weighted- Average Exercise Price
Beginning balance (in dollars per share)	$ 3.24
Options granted (in dollars per share)	0
Options exercised (in dollars per share)	1.72
Options forfeited or expired (in dollars per share)	7.87
Ending balance (in dollars per share)	3.34		$ 3.24
Exercisable (in dollars per share)	$ 3.03
Weighted- Average Remaining Contractual Life (in Years)
Options outstanding	4 years 2 months 12 days		4 years 4 months 24 days
Exercisable	4 years 1 month 6 days
Aggregate Intrinsic Value (in thousands)
Balance	$ 1,201,788		$ 1,303,464
Exercisable	$ 1,160,959

Stockholders' Equity - Schedu_2

Stockholders' Equity - Schedule of Activity for Unvested RSUs and PSUs (Details) - Restricted Stock Units, Restricted Stock Awards and Performance Stock Units	3 Months Ended
	Mar. 31, 2023 $ / shares shares
Shares
Beginning balance (in shares) | shares	12,378,683
Awarded (in shares) | shares	2,172,750
Vested (in shares) | shares	(1,048,215)
Forfeited/canceled (in shares) | shares	(328,171)
Ending balance (in shares) | shares	13,175,047
Weighted- Average Grant Date Fair Value
Beginning balance (in dollars per share) | $ / shares	$ 106.19
Awarded (in dollars per share) | $ / shares	71.36
Vested (in dollars per share) | $ / shares	110.80
Forfeited/cancelled (in dollars per share) | $ / shares	108.37
Ending balance (in dollars per share) | $ / shares	$ 100.02

Stockholders' Equity - Schedu_3

Stockholders' Equity - Schedule of Stock-based Compensation Expense (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]
Stock-based compensation, net of amounts capitalized	$ 112,728	$ 66,884
Capitalized stock-based compensation expense	4,227	3,506
Total stock-based compensation expense	116,955	70,390
Cost of revenue
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]
Stock-based compensation, net of amounts capitalized	3,725	1,653
Research and development
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]
Stock-based compensation, net of amounts capitalized	74,703	44,696
Sales and marketing
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]
Stock-based compensation, net of amounts capitalized	23,014	14,595
General and administrative
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]
Stock-based compensation, net of amounts capitalized	$ 11,286	$ 5,940

Interest Income and Other Inc_3

Interest Income and Other Income, Net (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Interest and Other Income [Abstract]
Interest income	$ 18,520	$ 5,496
Other income (loss), net	(1,793)	191
Interest income and other income, net	$ 16,727	$ 5,687

Income Taxes (Details)

Income Taxes (Details)	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Income Tax Disclosure [Abstract]
Effective tax rate	(17.90%)	10.30%

Net (Loss) Income Per Share - S

Net (Loss) Income Per Share - Schedule of Calculation of Basic and Diluted Net (Loss) Income Per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Basic net (loss) income per share:
Net (loss) income	$ (24,086)	$ 9,738
Weighted-average shares used in calculating net (loss) income per share, basic (in shares)	319,286	313,456
Basic net (loss) income per share (in dollars per share)	$ (0.08)	$ 0.03
Diluted net (loss) income per share:
Allocation of distributed net (loss) income for basic computation	$ (24,086)	$ 9,738
Number of shares used in basic calculation (in shares)	319,286	313,456
Weighted-average effect of diluted securities:
Number of shares used in diluted calculation (in shares)	319,286	345,668
Diluted net (loss) income per share (in dollars per share)	$ (0.08)	$ 0.03
Class A Common Stock
Basic net (loss) income per share:
Net (loss) income	$ (22,157)	$ 8,332
Weighted-average shares used in calculating net (loss) income per share, basic (in shares)	293,712	268,197
Basic net (loss) income per share (in dollars per share)	$ (0.08)	$ 0.03
Diluted net (loss) income per share:
Allocation of distributed net (loss) income for basic computation	$ (22,157)	$ 8,332
Reallocation of undistributed net (loss) income as a result of conversion of Class B to Class A shares	(1,929)	1,406
Allocation of undistributed (loss) income	$ (24,086)	$ 9,738
Shares issuable upon conversion of the convertible senior notes (in shares)	0	8,098
Number of shares used in basic calculation (in shares)	293,712	268,197
Weighted-average effect of diluted securities:
Conversion of Class B to Class A common shares outstanding (in shares)	25,574	45,259
Number of shares used in diluted calculation (in shares)	319,286	345,668
Diluted net (loss) income per share (in dollars per share)	$ (0.08)	$ 0.03
Class A Common Stock | Employee stock options
Diluted net (loss) income per share:
Dilutive effect of share-based payment arrangements (in shares)	0	20,075
Class A Common Stock | Unvested early exercises
Diluted net (loss) income per share:
Dilutive effect of share-based payment arrangements (in shares)	0	11
Class A Common Stock | Restricted stock units
Diluted net (loss) income per share:
Dilutive effect of share-based payment arrangements (in shares)	0	3,373
Class A Common Stock | Unvested restricted stock in connection with acquisition
Diluted net (loss) income per share:
Dilutive effect of share-based payment arrangements (in shares)	0	655
Class B Common Stock
Basic net (loss) income per share:
Net (loss) income	$ (1,929)	$ 1,406
Weighted-average shares used in calculating net (loss) income per share, basic (in shares)	25,574	45,259
Basic net (loss) income per share (in dollars per share)	$ (0.08)	$ 0.03
Diluted net (loss) income per share:
Allocation of distributed net (loss) income for basic computation	$ (1,929)	$ 1,406
Reallocation of undistributed net (loss) income as a result of conversion of Class B to Class A shares	0	0
Allocation of undistributed (loss) income	$ (1,929)	$ 1,406
Shares issuable upon conversion of the convertible senior notes (in shares)	0	0
Number of shares used in basic calculation (in shares)	25,574	45,259
Weighted-average effect of diluted securities:
Conversion of Class B to Class A common shares outstanding (in shares)	0	0
Number of shares used in diluted calculation (in shares)	25,574	45,259
Diluted net (loss) income per share (in dollars per share)	$ (0.08)	$ 0.03
Class B Common Stock | Employee stock options
Diluted net (loss) income per share:
Dilutive effect of share-based payment arrangements (in shares)	0	0
Class B Common Stock | Unvested early exercises
Diluted net (loss) income per share:
Dilutive effect of share-based payment arrangements (in shares)	0	0
Class B Common Stock | Restricted stock units
Diluted net (loss) income per share:
Dilutive effect of share-based payment arrangements (in shares)	0	0
Class B Common Stock | Unvested restricted stock in connection with acquisition
Diluted net (loss) income per share:
Dilutive effect of share-based payment arrangements (in shares)	0	0

Net (Loss) Income Per Share -_2

Net (Loss) Income Per Share - Schedule of Potentially Dilutive Securities not Included in Diluted Per Share Calculations (Details) - shares shares in Thousands	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Potentially dilutive securities not included in diluted per share calculations (in shares)	40,009	1,588
Shares subject to outstanding stock options, RSUs and PSUs
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Potentially dilutive securities not included in diluted per share calculations (in shares)	30,512	1,540
Unvested restricted shares of common stock
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Potentially dilutive securities not included in diluted per share calculations (in shares)	1,088	0
Shares subject to the employee stock purchase plan
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Potentially dilutive securities not included in diluted per share calculations (in shares)	311	48
Shares issuable upon conversion of the convertible senior notes
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Potentially dilutive securities not included in diluted per share calculations (in shares)	8,098	0