Cover Page
Cover Page - shares | 6 Months Ended | |
Jun. 30, 2024 | Aug. 02, 2024 | |
Document Information [Line Items] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Jun. 30, 2024 | |
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 $0.00001 per share | |
Trading Symbol | DDOG | |
Security Exchange Name | NASDAQ | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Amendment Flag | false | |
Document Fiscal Year Focus | 2024 | |
Document Fiscal Period Focus | Q2 | |
Entity Central Index Key | 0001561550 | |
Current Fiscal Year End Date | --12-31 | |
Class A Common Stock | ||
Document Information [Line Items] | ||
Entity Common Stock, Shares Outstanding (in shares) | 311,110,360 | |
Class B Common Stock | ||
Document Information [Line Items] | ||
Entity Common Stock, Shares Outstanding (in shares) | 26,041,915 |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Jun. 30, 2024 | Dec. 31, 2023 |
CURRENT ASSETS: | ||
Cash and cash equivalents | $ 410,963 | $ 330,339 |
Marketable securities | 2,549,143 | 2,252,559 |
Accounts receivable, net of allowance for credit losses of $12,902 and $12,096 as of June 30, 2024 and December 31, 2023, respectively | 533,292 | 509,279 |
Deferred contract costs, current | 49,518 | 44,938 |
Prepaid expenses and other current assets | 49,174 | 41,022 |
Total current assets | 3,592,090 | 3,178,137 |
Property and equipment, net | 198,911 | 171,872 |
Operating lease assets | 166,941 | 126,562 |
Goodwill | 350,864 | 352,694 |
Intangible assets, net | 5,804 | 9,617 |
Deferred contract costs, non-current | 77,040 | 73,728 |
Other assets | 20,741 | 23,462 |
TOTAL ASSETS | 4,412,391 | 3,936,072 |
CURRENT LIABILITIES: | ||
Accounts payable | 115,991 | 87,712 |
Accrued expenses and other current liabilities | 104,791 | 127,631 |
Operating lease liabilities, current | 24,565 | 21,974 |
Convertible senior notes, net, current | 743,970 | 0 |
Deferred revenue, current | 801,562 | 765,735 |
Total current liabilities | 1,790,879 | 1,003,052 |
Operating lease liabilities, non-current | 193,835 | 138,128 |
Convertible senior notes, net, non-current | 0 | 742,235 |
Deferred revenue, non-current | 14,049 | 21,210 |
Other liabilities | 6,320 | 6,093 |
Total liabilities | 2,005,083 | 1,910,718 |
COMMITMENTS AND CONTINGENCIES (NOTE 8) | ||
STOCKHOLDERS' EQUITY: | ||
Additional paid-in capital | 2,484,264 | 2,181,267 |
Accumulated other comprehensive loss | (9,716) | (2,218) |
Accumulated deficit | (67,243) | (153,698) |
Total stockholders’ equity | 2,407,308 | 2,025,354 |
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY | 4,412,391 | 3,936,072 |
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 | Jun. 30, 2024 | Dec. 31, 2023 |
Accounts receivable, net of allowance for doubtful accounts | $ 12,902 | $ 12,096 |
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) | 310,772,876 | 305,395,175 |
Common stock, outstanding (in shares) | 310,772,876 | 305,395,175 |
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) | 25,996,783 | 25,684,571 |
Common stock, outstanding (in shares) | 25,996,783 | 25,684,571 |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Income Statement [Abstract] | ||||
Revenue | $ 645,279 | $ 509,460 | $ 1,256,532 | $ 991,174 |
Cost of revenue | 123,499 | 101,846 | 233,597 | 201,760 |
Gross profit | 521,780 | 407,614 | 1,022,935 | 789,414 |
Operating expenses: | ||||
Research and development | 274,599 | 239,494 | 544,587 | 468,972 |
Sales and marketing | 187,005 | 147,455 | 360,886 | 292,426 |
General and administrative | 47,558 | 42,671 | 92,848 | 84,992 |
Total operating expenses | 509,162 | 429,620 | 998,321 | 846,390 |
Operating income (loss) | 12,618 | (22,006) | 24,614 | (56,976) |
Other income (loss): | ||||
Interest expense | (1,477) | (1,526) | (2,851) | (3,707) |
Interest income and other income, net | 36,652 | 22,624 | 72,215 | 39,351 |
Other income, net | 35,175 | 21,098 | 69,364 | 35,644 |
Income (loss) before provision for income taxes | 47,793 | (908) | 93,978 | (21,332) |
Provision for income taxes | 3,969 | 3,061 | 7,523 | 6,723 |
Net income (loss) | 43,824 | (3,969) | 86,455 | (28,055) |
Net income (loss) attributable to common stockholders, basic | 43,824 | (3,969) | 86,455 | (28,055) |
Net income (loss) attributable to common stockholders, diluted | $ 43,824 | $ (3,969) | $ 86,455 | $ (28,055) |
Basic net income (loss) per share (in dollars per share) | $ 0.13 | $ (0.01) | $ 0.26 | $ (0.09) |
Diluted net income (loss) per share (in dollars per share) | $ 0.12 | $ (0.01) | $ 0.24 | $ (0.09) |
Weighted average shares used in calculating basic net income (loss) per share (in shares) | 334,941 | 322,215 | 333,373 | 320,788 |
Weighted average shares used in calculating diluted net income (loss) per share (in shares) | 356,740 | 322,215 | 356,650 | 320,788 |
CONDENSED CONSOLIDATED STATEM_2
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Statement of Comprehensive Income [Abstract] | ||||
Net income (loss) | $ 43,824 | $ (3,969) | $ 86,455 | $ (28,055) |
Other comprehensive (loss) income: | ||||
Foreign currency translation adjustments | (815) | (579) | (3,079) | 62 |
Unrealized (loss) gain on available-for-sale marketable securities | (1,201) | (5,966) | (4,419) | 42 |
Other comprehensive (loss) income | (2,016) | (6,545) | (7,498) | 104 |
Comprehensive income (loss) | $ 41,808 | $ (10,514) | $ 78,957 | $ (27,951) |
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 | Accumulated Other Comprehensive (Loss) Gain | Accumulated Deficit |
Beginning balance (in 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) | 2,742,866 | ||||
Issuance of common stock upon exercise of stock options | 7,517 | 7,517 | |||
Vesting of restricted and performance stock units (in shares) | 2,228,646 | ||||
Issuance (retirement) of restricted shares of common stock from acquisitions (in shares) | 130,162 | ||||
Issuance of common stock under the Employee Stock Purchase Plan (in shares) | 285,211 | ||||
Issuance of common stock under the Employee Stock Purchase Plan | 19,986 | 19,986 | |||
Stock-based compensation | 239,302 | 239,302 | |||
Change in accumulated other comprehensive income (loss) | 104 | 104 | |||
Net income (loss) | (28,055) | (28,055) | |||
Ending balance (in shares) at Jun. 30, 2023 | 324,576,728 | ||||
Ending balance at Jun. 30, 2023 | 1,649,359 | $ 3 | 1,891,995 | (12,318) | (230,321) |
Beginning balance (in shares) at Mar. 31, 2023 | 321,446,243 | ||||
Beginning balance at Mar. 31, 2023 | 1,512,099 | $ 3 | 1,744,221 | (5,773) | (226,352) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Issuance of common stock upon exercise of stock options (in shares) | 1,534,681 | ||||
Issuance of common stock upon exercise of stock options | 5,441 | 5,441 | |||
Vesting of restricted and performance stock units (in shares) | 1,180,431 | ||||
Issuance (retirement) of restricted shares of common stock from acquisitions (in shares) | 130,162 | ||||
Issuance of common stock under the Employee Stock Purchase Plan (in shares) | 285,211 | ||||
Issuance of common stock under the Employee Stock Purchase Plan | 19,986 | 19,986 | |||
Stock-based compensation | 122,347 | 122,347 | |||
Change in accumulated other comprehensive income (loss) | (6,545) | (6,545) | |||
Net income (loss) | (3,969) | (3,969) | |||
Ending balance (in shares) at Jun. 30, 2023 | 324,576,728 | ||||
Ending balance at Jun. 30, 2023 | 1,649,359 | $ 3 | 1,891,995 | (12,318) | (230,321) |
Beginning balance (in shares) at Dec. 31, 2023 | 331,079,746 | ||||
Beginning balance at Dec. 31, 2023 | $ 2,025,354 | $ 3 | 2,181,267 | (2,218) | (153,698) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Issuance of common stock upon exercise of stock options (in shares) | 2,587,839 | 2,587,839 | |||
Issuance of common stock upon exercise of stock options | $ 3,899 | 3,899 | |||
Vesting of restricted and performance stock units (in shares) | 2,723,339 | ||||
Issuance (retirement) of restricted shares of common stock from acquisitions (in shares) | 136,079 | ||||
Issuance of common stock under the Employee Stock Purchase Plan (in shares) | 242,656 | ||||
Issuance of common stock under the Employee Stock Purchase Plan | 22,507 | 22,507 | |||
Stock-based compensation | 276,591 | 276,591 | |||
Change in accumulated other comprehensive income (loss) | (7,498) | (7,498) | |||
Net income (loss) | 86,455 | 86,455 | |||
Ending balance (in shares) at Jun. 30, 2024 | 336,769,659 | ||||
Ending balance at Jun. 30, 2024 | 2,407,308 | $ 3 | 2,484,264 | (9,716) | (67,243) |
Beginning balance (in shares) at Mar. 31, 2024 | 333,965,590 | ||||
Beginning balance at Mar. 31, 2024 | 2,202,355 | $ 3 | 2,321,119 | (7,700) | (111,067) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Issuance of common stock upon exercise of stock options (in shares) | 1,247,195 | ||||
Issuance of common stock upon exercise of stock options | 1,726 | 1,726 | |||
Vesting of restricted and performance stock units (in shares) | 1,178,139 | ||||
Issuance (retirement) of restricted shares of common stock from acquisitions (in shares) | 136,079 | ||||
Issuance of common stock under the Employee Stock Purchase Plan (in shares) | 242,656 | ||||
Issuance of common stock under the Employee Stock Purchase Plan | 22,507 | 22,507 | |||
Stock-based compensation | 138,912 | 138,912 | |||
Change in accumulated other comprehensive income (loss) | (2,016) | (2,016) | |||
Net income (loss) | 43,824 | 43,824 | |||
Ending balance (in shares) at Jun. 30, 2024 | 336,769,659 | ||||
Ending balance at Jun. 30, 2024 | $ 2,407,308 | $ 3 | $ 2,484,264 | $ (9,716) | $ (67,243) |
CONDENSED CONSOLIDATED STATEM_4
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2024 | Jun. 30, 2023 | |
CASH FLOWS FROM OPERATING ACTIVITIES: | ||
Net income (loss) | $ 86,455 | $ (28,055) |
Adjustments to reconcile net income (loss) to net cash provided by operating activities: | ||
Depreciation and amortization | 25,335 | 20,825 |
Accretion of discounts on marketable securities | (26,695) | (13,291) |
Amortization of issuance costs | 1,760 | 1,691 |
Amortization of deferred contract costs | 24,294 | 17,996 |
Stock-based compensation, net of amounts capitalized | 269,685 | 231,065 |
Non-cash lease expense | 13,591 | 12,196 |
Allowance for credit losses on accounts receivable | 6,574 | 6,311 |
Loss on disposal of property and equipment | 343 | 421 |
Changes in operating assets and liabilities: | ||
Accounts receivable, net | (30,586) | 60,139 |
Deferred contract costs | (32,170) | (27,618) |
Prepaid expenses and other current assets | (8,443) | (16,823) |
Other assets | 2,171 | 2,241 |
Accounts payable | 31,570 | 24,897 |
Accrued expenses and other liabilities | (15,856) | (44,089) |
Deferred revenue | 28,666 | 39,039 |
Net cash provided by operating activities | 376,694 | 286,945 |
CASH FLOWS FROM INVESTING ACTIVITIES: | ||
Purchases of marketable securities | (1,240,301) | (1,390,334) |
Maturities of marketable securities | 965,985 | 1,018,317 |
Proceeds from sale of marketable securities | 8 | 36,633 |
Purchases of property and equipment | (18,573) | (11,078) |
Capitalized software development costs | (27,594) | (17,798) |
Cash paid for acquisition of businesses; net of cash acquired | (444) | (2,025) |
Net cash used in investing activities | (320,919) | (366,285) |
CASH FLOWS FROM FINANCING ACTIVITIES: | ||
Proceeds from exercise of stock options | 3,944 | 7,534 |
Proceeds from issuance of common stock under the employee stock purchase plan | 22,507 | 19,986 |
Repayments of convertible senior notes | (25) | 0 |
Net cash provided by financing activities | 26,426 | 27,520 |
Effect of exchange rate changes on cash, cash equivalents and restricted cash | (1,577) | 836 |
NET INCREASE (DECREASE) IN CASH, CASH EQUIVALENTS AND RESTRICTED CASH | 80,624 | (50,984) |
CASH, CASH EQUIVALENTS AND RESTRICTED CASH—Beginning of period | 330,339 | 342,288 |
CASH, CASH EQUIVALENTS AND RESTRICTED CASH—End of period | 410,963 | 291,304 |
SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION: | ||
Cash paid for income taxes | 14,822 | 10,677 |
SUPPLEMENTAL DISCLOSURE OF NON-CASH INVESTING AND FINANCING ACTIVITIES: | ||
Accrued property and equipment purchases | 3,840 | 274 |
Stock-based compensation included in capitalized software development costs | 6,906 | 8,237 |
Acquisition holdback | 0 | 750 |
RECONCILIATION OF CASH AND CASH EQUIVALENTS WITHIN THE CONDENSED CONSOLIDATED BALANCE SHEETS TO THE AMOUNTS SHOWN IN THE STATEMENTS OF CASH FLOWS ABOVE: | ||
Cash and cash equivalents | 410,963 | 291,304 |
Total cash and cash equivalents | $ 410,963 | $ 291,304 |
Organization and Description of
Organization and Description of Business | 6 Months Ended |
Jun. 30, 2024 | |
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, user experience monitoring, cloud security, 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 | 6 Months Ended |
Jun. 30, 2024 | |
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 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, 2024 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, 2023, as filed with the SEC on February 23, 2024 (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. Accounting Pronouncements Not Yet Adopted In November 2023, the FASB issued ASU No. 2023-07 , Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures (“ASU No. 2023-07 ” ), which intends to improve reportable segment disclosure requirements, primarily through enhanced disclosures about significant segment expenses. The amendments in this ASU are effective for public business entities for fiscal years beginning after December 15, 2023, and interim periods within fiscal years beginning after December 15, 2024. Early adoption is permitted. The amendments in this ASU should be applied retrospectively to all prior periods presented in the financial statements. The Company is currently evaluating the impact of the adoption of this standard on its consolidated financial statements. In December 2023, the FASB issued ASU No. 2023-09 , Income Taxes (Topic 740): Improvements to Income Tax Disclosures (“ASU No. 2023-09 ” ), which intends to increase the transparency of income tax disclosures, particularly the rate reconciliation table and disclosures about income taxes paid. For public business entities, it is effective for annual periods beginning after December 15, 2024, and interim periods beginning after December 15, 2025, with early adoption permitted. The Company is currently evaluating the impact of the adoption of this standard on its consolidated financial statements. |
Marketable Securities
Marketable Securities | 6 Months Ended |
Jun. 30, 2024 | |
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 June 30, 2024 and December 31, 2023 (in thousands): June 30, 2024 Amortized Unrealized Unrealized Fair Corporate debt securities $ 1,495,277 $ 229 $ (3,438) $ 1,492,068 U.S. government treasury securities 442,675 20 (2,065) 440,630 Commercial paper 376,717 35 (95) 376,657 Certificates of deposit 191,090 113 (6) 191,197 U.S. government agency securities 48,728 — (137) 48,591 Marketable securities $ 2,554,487 $ 397 $ (5,741) $ 2,549,143 December 31, 2023 Amortized Unrealized Unrealized Fair Corporate debt securities $ 776,323 $ 770 $ (1,140) $ 775,953 Commercial paper 605,291 570 (75) 605,786 U.S. government treasury securities 460,854 390 (1,399) 459,845 Certificates of deposit 264,405 335 (15) 264,725 U.S. government agency securities 146,611 — (361) 146,250 Marketable securities $ 2,253,484 $ 2,065 $ (2,990) $ 2,252,559 As of June 30, 2024, the fair values of available-for-sale marketable securities, by remaining contractual maturity, were as follows (in thousands): Due within one year $ 1,588,551 Due in one year through five years 960,592 Total $ 2,549,143 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 | 6 Months Ended |
Jun. 30, 2024 | |
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 June 30, 2024 and December 31, 2023, and indicate the fair value hierarchy of the valuation inputs utilized to determine such fair value (in thousands): Fair Value Measurement as of June 30, 2024 Level 1 Level 2 Level 3 Total Financial Assets: Cash equivalents: Money market funds $ 303,735 $ — $ — $ 303,735 Commercial paper — 15,709 — 15,709 Corporate debt securities — 2,430 — 2,430 Marketable Securities: Corporate debt securities — 1,492,068 — 1,492,068 Commercial paper — 376,657 — 376,657 Certificates of deposit — 191,197 — 191,197 U.S. government treasury securities — 440,630 — 440,630 U.S. government agency securities — 48,591 — 48,591 Total financial assets $ 303,735 $ 2,567,282 $ — $ 2,871,017 Fair Value Measurement as of December 31, 2023 Level 1 Level 2 Level 3 Total Financial Assets: Cash equivalents: Money market funds $ 240,909 $ — $ — $ 240,909 Corporate debt securities — 484 — 484 U.S. government treasury securities — 53,972 — 53,972 Marketable Securities: Corporate debt securities — 775,953 — 775,953 Commercial paper — 605,786 — 605,786 Certificates of deposit — 264,725 — 264,725 U.S. government treasury securities — 459,845 — 459,845 U.S. government agency securities — 146,250 — 146,250 Total financial assets $ 240,909 $ 2,307,015 $ — $ 2,547,924 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 | 6 Months Ended |
Jun. 30, 2024 | |
Property, Plant and Equipment [Abstract] | |
Property and Equipment, Net | Property and Equipment, Net Property and equipment, net consisted of the following (in thousands): June 30, December 31, Computers and equipment $ 40,362 $ 35,736 Furniture and fixtures 19,649 17,202 Leasehold improvements 61,801 55,111 Capitalized software development costs 234,569 192,691 Total property and equipment $ 356,381 $ 300,740 Less: accumulated depreciation and amortization (157,470) (128,868) Total property and equipment, net $ 198,911 $ 171,872 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. Depreciation and amortization expense was approximately $10.9 million and $21.6 million for the three and six months ended June 30, 2024, respectively. Depreciation and amortization expense was approximately $8.3 million and $16.4 million for the three and six months ended June 30, 2023, respectively. |
Acquisitions, Intangible Assets
Acquisitions, Intangible Assets and Goodwill | 6 Months Ended |
Jun. 30, 2024 | |
Acquisitions, Intangible Assets And Goodwill [Abstract] | |
Acquisitions, Intangible Assets and Goodwill | Acquisitions, Intangible Assets and Goodwill 2023 Acquisitions During the year ended December 31, 2023, the Company entered into three 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 $2.1 million and goodwill in the amount of $3.5 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): June 30, 2024 Gross Accumulated Net Amortization Developed technology $ 14,595 $ (9,431) $ 5,164 3 Years Customer relationships 3,300 (2,660) 640 4 Years Total $ 17,895 $ (12,091) $ 5,804 December 31, 2023 Gross Accumulated Net Amortization Developed technology $ 24,995 $ (16,428) $ 8,567 3 years Customer relationships 3,300 (2,250) 1,050 4 years Total $ 28,295 $ (18,678) $ 9,617 Intangible amortization expense was approximately $1.5 million and $2.3 million for the three months ended June 30, 2024 and 2023, respectively, and $3.7 million and $4.5 million for the six months ended June 30, 2024 and 2023, respectively. As of June 30, 2024, future amortization expense by year is expected to be as follows (in thousands): Amount Remainder of 2024 $ 2,716 2025 2,562 2026 526 Total $ 5,804 Goodwill The changes in the carrying amount of goodwill were as follows (in thousands): Amount Balance as of December 31, 2023 $ 352,694 Foreign currency translation adjustments (1,830) Balance as of June 30, 2024 $ 350,864 |
Acquisitions, Intangible Assets and Goodwill | Acquisitions, Intangible Assets and Goodwill 2023 Acquisitions During the year ended December 31, 2023, the Company entered into three 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 $2.1 million and goodwill in the amount of $3.5 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): June 30, 2024 Gross Accumulated Net Amortization Developed technology $ 14,595 $ (9,431) $ 5,164 3 Years Customer relationships 3,300 (2,660) 640 4 Years Total $ 17,895 $ (12,091) $ 5,804 December 31, 2023 Gross Accumulated Net Amortization Developed technology $ 24,995 $ (16,428) $ 8,567 3 years Customer relationships 3,300 (2,250) 1,050 4 years Total $ 28,295 $ (18,678) $ 9,617 Intangible amortization expense was approximately $1.5 million and $2.3 million for the three months ended June 30, 2024 and 2023, respectively, and $3.7 million and $4.5 million for the six months ended June 30, 2024 and 2023, respectively. As of June 30, 2024, future amortization expense by year is expected to be as follows (in thousands): Amount Remainder of 2024 $ 2,716 2025 2,562 2026 526 Total $ 5,804 Goodwill The changes in the carrying amount of goodwill were as follows (in thousands): Amount Balance as of December 31, 2023 $ 352,694 Foreign currency translation adjustments (1,830) Balance as of June 30, 2024 $ 350,864 |
Convertible Senior Notes
Convertible Senior Notes | 6 Months Ended |
Jun. 30, 2024 | |
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 June 30, 2024, 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 June 30, 2024. Therefore the 2025 Notes are not convertible, in whole or in part, at the option of the holders between July 1, 2024 through September 30, 2024. 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. Since the issuance of the 2025 Notes, the Company received and settled an immaterial amount of conversion notices from the holders in cash. As of June 30, 2024, the 2025 Notes were classified as short-term debt on the Company's condensed consolidated balance sheet. The Company may redeem for cash all or any portion of the 2025 Notes prior to the 31 st scheduled trading day immediately preceding the maturity date, 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. 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”) using the modified retrospective approach. As a result, the 2025 Notes are accounting for as a single liability measured at their amortized cost, as no other embedded features require bifurcation and recognition as derivatives. The net carrying amount of the liability component of the 2025 Notes was as follows (in thousands): June 30, December 31, Convertible senior notes, net: Principal $ 747,471 $ 747,496 Unamortized debt issuance costs (3,501) (5,261) Net carrying amount $ 743,970 $ 742,235 As of June 30, 2024, the total estimated fair value of the 2025 Notes was approximately $1,081.6 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 and six months ended June 30, 2024 and 2023 (in thousands): Three Months Ended Six Months Ended 2024 2023 2024 2023 Contractual interest expense $ 233 $ 234 $ 467 $ 468 Amortization of issuance costs 910 846 1,760 1,691 Total $ 1,143 $ 1,080 $ 2,227 $ 2,159 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 | 6 Months Ended |
Jun. 30, 2024 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies Non-cancelable Material Commitments— During the six months ended June 30, 2024, 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 and six months ended June 30, 2024, the Company incurred expense of $2.0 million and $3.8 million, respectively, for matching contributions. For the three and six months ended June 30, 2023, the Company incurred expense of $1.7 million and $3.1 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 | 6 Months Ended |
Jun. 30, 2024 | |
Leases [Abstract] | |
Leases | Leases The Company has entered into various non-cancelable operating leases for its facilities expiring between 2024 and 2033. Certain lease agreements contain an option for the Company to renew a lease for a term of up to three 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 Six Months Ended 2024 2023 2024 2023 Operating lease cost (1) $ 10,533 $ 8,070 $ 21,063 $ 15,450 Short-term lease cost 1,404 2,200 2,719 4,719 1) Includes non-cash lease expense of $6.8 million and $6.3 million for the three months ended June 30, 2024 and 2023, respectively, and $13.6 million and $12.2 million for the six months ended June 30, 2024 and 2023, respectively. Supplemental cash flow information and non-cash activity related to the Company’s operating leases are as follows (in thousands): Six Months Ended 2024 2023 Cash paid for amounts included in measurement of lease liabilities $ 2,421 $ 4,145 Operating lease assets obtained in exchange for new lease liabilities 55,042 46,290 Maturities of lease liabilities by fiscal year for the Company’s operating leases are as follows (in thousands): Amount Remainder of 2024 $ 15,975 2025 40,665 2026 39,930 2027 36,688 2028 33,764 2029 and beyond 117,993 Total lease payments $ 285,015 Less: imputed interest (66,615) Present value of lease liabilities $ 218,400 As of June 30, 2024, the Company had various operating leases that had not yet commenced, which are excluded from the table above. The operating leases will commence in fiscal year 2025 with total undiscounted future payments of $56.9 million and a weighted-average lease term of 8.5 years. Weighted average remaining lease term and discount rate for the Company’s operating leases are as follows: June 30, Weighted-average remaining lease term (years) 7.3 Weighted-average discount rate 6.57 % |
Revenue
Revenue | 6 Months Ended |
Jun. 30, 2024 | |
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 Six Months Ended 2024 2023 2024 2023 North America (1) $ 448,002 $ 355,965 $ 873,602 $ 697,181 International 197,277 153,495 382,930 293,993 Total $ 645,279 $ 509,460 $ 1,256,532 $ 991,174 1) Includes revenue from the United States of $426.6 million and $337.5 million for the three months ended June 30, 2024 and 2023, respectively, and $831.1 million and $661.0 million for the six months ended June 30, 2024 and 2023, respectively. 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 June 30, 2024 and 2023, which was included in the deferred revenue balances at the beginning of each such period, was $355.0 million and $261.0 million, respectively. Revenue recognized during the six months ended June 30, 2024 and 2023 that was included in the deferred revenue balances at the beginning of each such period was $570.0 million and $391.7 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 June 30, 2024 and December 31, 2023, the aggregate transaction price allocated to remaining performance obligations was $1,792.4 million and $1,839.4 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 six months ended June 30, 2024 and 2023, the Company charged $4.8 million and $2.4 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 June 30, 2024 and December 31, 2023, unbilled accounts receivable of approximately $77.8 million and $61.2 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 $126.6 million and $118.7 million as of June 30, 2024 and December 31, 2023, respectively. Amortization expense was $12.5 million and $9.4 million for the three months ended June 30, 2024 and 2023, respectively, and $24.3 million and $18.0 million for the six months ended June 30, 2024 and 2023, respectively. |
Stockholders' Equity
Stockholders' Equity | 6 Months Ended |
Jun. 30, 2024 | |
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 and six months ended June 30, 2024, 430,542 shares and 650,716 shares of Class B common stock were converted into Class A common stock, respectively. As of June 30, 2024, 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 310,772,876 shares of Class A common stock and 25,996,783 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 June 30, 2024, there were 9,468,788 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, 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 June 30, 2024, there were 87,888,035 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, 2023 12,077,635 $ 3.24 3.4 $ 1,426,912 Options granted — — Options exercised (2,587,839) 1.51 Options forfeited or expired (1,038) 5.08 Balance outstanding—June 30, 2024 9,488,758 $ 3.71 3.1 $ 1,195,430 Ending Exercisable—June 30, 2024 9,487,145 $ 3.70 3.1 $ 1,195,264 As of June 30, 2024, there were 19,970 shares of Class A common stock and 9,468,788 shares of Class B common stock issuable upon the exercise of options outstanding. As of December 31, 2023, there were 22,926 shares of Class A common stock and 12,054,709 shares of Class B common stock issuable upon the exercise of options outstanding. Approximately all compensation cost related to unvested stock options was recognized as of June 30, 2024 and December 31, 2023. There were no options granted during the six months ended June 30, 2024 and 2023. The Company received approximately $3.9 million and $7.5 million in cash proceeds from options exercised during the six months ended June 30, 2024 and 2023, respectively. The intrinsic value of options exercised during the six months ended June 30, 2024 and 2023 was approximately $310.7 million and $210.4 million, respectively. The aggregate fair value of options vested during the six months ended June 30, 2024 was insignificant. The aggregate fair value of options vested during the six months ended June 30, 2023 was $9.6 million. Restricted Stock Units, Restricted Stock and Performance Stock Units The following table summarizes the activity for the Company’s unvested RSUs and PSUs: Shares Weighted- Balance—December 31, 2023 13,663,501 $ 99.13 Awarded 2,530,139 122.35 Vested (2,723,339) 92.59 Forfeited/canceled (673,489) 102.67 Balance—June 30, 2024 12,796,812 $ 104.93 The Company granted no restricted shares of Class A common stock in connection with acquisitions during the six months ended June 30, 2024. In addition, we issued 136,079 fully-vested shares in April 2024 in connection with an acquisition that closed in 2021. Total compensation cost related to unvested RSUs and restricted shares of common stock not yet recognized was approximately $1,150.7 million and $1,187.3 million as of June 30, 2024 and December 31, 2023, respectively. The weighted-average period over which this compensation cost related to unvested RSUs and restricted shares of common stock will be recognized is 2.7 years and 2.8 years as of June 30, 2024 and December 31, 2023, respectively. Total compensation cost related to unvested PSUs not yet recognized was approximately $38.5 million and $25.1 million as of June 30, 2024 and December 31, 2023, respectively. The weighted-average period over which this compensation cost related to unvested PSUs will be recognized is 1.5 years and 1.3 years as of June 30, 2024 and December 31, 2023, respectively. Employee Stock Purchase Plan In September 2019, the Board adopted and approved the 2019 Employee Stock Purchase Plan (the “ESPP”). 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. Historically offering periods have been approximately 6 months. 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 $3.7 million and $8.1 million of stock-based compensation expense related to the ESPP during the three and six months ended June 30, 2024, respectively. As of June 30, 2024, $7.1 million has been withheld on behalf of employees for a future purchase under the ESPP due to the timing of payroll deductions. During the three months ended June 30, 2024, the Company issued 242,656 shares of Class A common stock under the ESPP. As of June 30, 2024, 20,549,200 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. 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 Six Months Ended 2024 2023 2024 2023 Cost of revenue $ 6,393 $ 4,157 $ 11,920 $ 7,882 Research and development 87,105 75,730 175,518 150,433 Sales and marketing 29,201 25,884 57,732 48,898 General and administrative 11,953 12,566 24,515 23,852 Stock-based compensation, net of amounts capitalized 134,652 118,337 269,685 231,065 Capitalized stock-based compensation expense 4,260 4,010 6,906 8,237 Total stock-based compensation expense $ 138,912 $ 122,347 $ 276,591 $ 239,302 |
Interest Income and Other Incom
Interest Income and Other Income, Net | 6 Months Ended |
Jun. 30, 2024 | |
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 Six Months Ended 2024 2023 2024 2023 Interest income $ 37,241 $ 23,355 $ 72,676 $ 41,875 Other loss, net (589) (731) (461) (2,524) Interest income and other income, net $ 36,652 $ 22,624 $ 72,215 $ 39,351 |
Income Taxes
Income Taxes | 6 Months Ended |
Jun. 30, 2024 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Ta xes The Compa ny recorded a provision for income taxes of $4.0 million and $3.1 million for the three months ended June 30, 2024 and 2023, respectively . The Company has generated U.S. operating income 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 six months ended June 30, 2024 and 2023. 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. 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 six months ended June 30, 2024, 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 Income (Loss) Per Share
Net Income (Loss) Per Share | 6 Months Ended |
Jun. 30, 2024 | |
Earnings Per Share [Abstract] | |
Net Income (Loss) Per Share | Net Income (Loss) Per Share Basic and diluted net income (loss) per common share is presented in conformity with the two-class method required for participating securities. Basic and diluted net income (loss) 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 income (loss) per share of Class A common stock, the undistributed earnings are equal to net income (loss) for that computation. The following table presents the calculation of basic and diluted net income (loss) per share (in thousands, except per share data): Three Months Ended Six Months Ended 2024 2023 2024 2023 Basic net income (loss) per share: Class A Class B Class A Class B Class A Class B Class A Class B Numerator: Net income (loss) $ 40,409 $ 3,415 $ (3,652) $ (317) $ 79,715 $ 6,740 $ (25,811) $ (2,244) Denominator: Weighted-average shares used in calculating net income (loss) per share, basic 308,838 26,103 296,466 25,749 307,382 25,991 295,126 25,662 Basic net income (loss) per share $ 0.13 $ 0.13 $ (0.01) $ (0.01) $ 0.26 $ 0.26 $ (0.09) $ (0.09) Diluted net income (loss) per share: Numerator: Allocation of distributed net income (loss) for basic computation $ 40,409 $ 3,415 $ (3,652) $ (317) $ 79,715 $ 6,740 $ (25,811) $ (2,244) Reallocation of undistributed net income (loss) as a result of conversion of Class B to Class A shares 3,415 — (317) — 6,740 — (2,244) Allocation of undistributed income (loss) $ 43,824 $ 3,415 $ (3,969) $ (317) $ 86,455 $ 6,740 $ (28,055) $ (2,244) Denominator: Number of shares used in basic calculation 308,838 26,103 296,466 25,749 307,382 25,991 295,126 25,662 Weighted-average effect of diluted securities: Conversion of Class B to Class A common shares outstanding 26,103 — 25,749 — 25,991 — 25,662 — Employee stock options 9,716 — — — 10,382 — — — Employee stock purchase plan 26 — — — 30 — — — Restricted stock units and performance stock units 3,687 — — — 4,367 — — — Unvested restricted stock in connection with acquisition 272 — — — 400 — — — Shares issuable upon conversion of the convertible senior notes 8,098 — — — 8,098 — — — Number of shares used in diluted calculation 356,740 26,103 322,215 25,749 356,650 25,991 320,788 25,662 Diluted net income (loss) per share $ 0.12 $ 0.13 $ (0.01) $ (0.01) $ 0.24 $ 0.26 $ (0.09) $ (0.09) 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 June 30, 2024 2023 Shares subject to outstanding stock options, RSUs and PSUs 1,017 29,200 Unvested restricted shares of common stock — 799 Shares subject to the employee stock purchase plan 104 254 Shares issuable upon conversion of the convertible senior notes — 8,098 Total 1,121 38,351 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. Refer to 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. |
Pay vs Performance Disclosure
Pay vs Performance Disclosure - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Pay vs Performance Disclosure | ||||
Net income (loss) | $ 43,824 | $ (3,969) | $ 86,455 | $ (28,055) |
Insider Trading Arrangements
Insider Trading Arrangements | 3 Months Ended | 6 Months Ended |
Jun. 30, 2024 shares | Jun. 30, 2024 shares | |
Trading Arrangements, by Individual | ||
Material Terms of Trading Arrangement | During the three months ended June 30, 2024 , the Company’s directors and officers (as defined in Rule 16a-1(f) under the Exchange Act) adopted written plans intended to satisfy the affirmative defense conditions of Securities Exchange Act Rule 10b5-1(c) for the sale of the Company’s securities as set forth in the table below. Name Position Adoption Date Total Shares of Class A Common Stock to be Sold Expiration Date David Obstler Chief Financial Officer June 12, 2024 100,000 June 15, 2025 Shardul Shah (1) Director June 14, 2024 95,000 August 14, 2025 (1) The shares will be sold under a Rule 10b5-1 trading plan by the 2019 Shah Family Trust. | |
Non-Rule 10b5-1 Arrangement Adopted | false | |
Rule 10b5-1 Arrangement Terminated | false | |
Non-Rule 10b5-1 Arrangement Terminated | false | |
David Obstler [Member] | ||
Trading Arrangements, by Individual | ||
Name | David Obstler | |
Title | Chief Financial Officer | |
Rule 10b5-1 Arrangement Adopted | true | |
Adoption Date | June 12, 2024 | |
Expiration Date | June 15, 2025 | |
Arrangement Duration | 368 days | |
Aggregate Available | 100,000 | 100,000 |
Shardul Shah [Member] | ||
Trading Arrangements, by Individual | ||
Name | Shardul Shah (1) | |
Title | Director | |
Rule 10b5-1 Arrangement Adopted | true | |
Adoption Date | June 14, 2024 | |
Expiration Date | August 14, 2025 | |
Arrangement Duration | 426 days | |
Aggregate Available | 95,000 | 95,000 |
Basis of Presentation and Sum_2
Basis of Presentation and Summary of Significant Accounting Policies (Policies) | 6 Months Ended |
Jun. 30, 2024 | |
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. |
Accounting Pronouncements Not Yet Adopted | Accounting Pronouncements Not Yet Adopted In November 2023, the FASB issued ASU No. 2023-07 , Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures (“ASU No. 2023-07 ” ), which intends to improve reportable segment disclosure requirements, primarily through enhanced disclosures about significant segment expenses. The amendments in this ASU are effective for public business entities for fiscal years beginning after December 15, 2023, and interim periods within fiscal years beginning after December 15, 2024. Early adoption is permitted. The amendments in this ASU should be applied retrospectively to all prior periods presented in the financial statements. The Company is currently evaluating the impact of the adoption of this standard on its consolidated financial statements. In December 2023, the FASB issued ASU No. 2023-09 , Income Taxes (Topic 740): Improvements to Income Tax Disclosures (“ASU No. 2023-09 ” ), which intends to increase the transparency of income tax disclosures, particularly the rate reconciliation table and disclosures about income taxes paid. For public business entities, it is effective for annual periods beginning after December 15, 2024, and interim periods beginning after December 15, 2025, with early adoption permitted. The Company is currently evaluating the impact of the adoption of this standard on its consolidated financial statements. |
Marketable Securities (Tables)
Marketable Securities (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
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 June 30, 2024 and December 31, 2023 (in thousands): June 30, 2024 Amortized Unrealized Unrealized Fair Corporate debt securities $ 1,495,277 $ 229 $ (3,438) $ 1,492,068 U.S. government treasury securities 442,675 20 (2,065) 440,630 Commercial paper 376,717 35 (95) 376,657 Certificates of deposit 191,090 113 (6) 191,197 U.S. government agency securities 48,728 — (137) 48,591 Marketable securities $ 2,554,487 $ 397 $ (5,741) $ 2,549,143 December 31, 2023 Amortized Unrealized Unrealized Fair Corporate debt securities $ 776,323 $ 770 $ (1,140) $ 775,953 Commercial paper 605,291 570 (75) 605,786 U.S. government treasury securities 460,854 390 (1,399) 459,845 Certificates of deposit 264,405 335 (15) 264,725 U.S. government agency securities 146,611 — (361) 146,250 Marketable securities $ 2,253,484 $ 2,065 $ (2,990) $ 2,252,559 |
Schedule of Fair Values of Available-for-Sale Marketable Securities, by Remaining Contractual Maturity | As of June 30, 2024, the fair values of available-for-sale marketable securities, by remaining contractual maturity, were as follows (in thousands): Due within one year $ 1,588,551 Due in one year through five years 960,592 Total $ 2,549,143 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
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 June 30, 2024 and December 31, 2023, and indicate the fair value hierarchy of the valuation inputs utilized to determine such fair value (in thousands): Fair Value Measurement as of June 30, 2024 Level 1 Level 2 Level 3 Total Financial Assets: Cash equivalents: Money market funds $ 303,735 $ — $ — $ 303,735 Commercial paper — 15,709 — 15,709 Corporate debt securities — 2,430 — 2,430 Marketable Securities: Corporate debt securities — 1,492,068 — 1,492,068 Commercial paper — 376,657 — 376,657 Certificates of deposit — 191,197 — 191,197 U.S. government treasury securities — 440,630 — 440,630 U.S. government agency securities — 48,591 — 48,591 Total financial assets $ 303,735 $ 2,567,282 $ — $ 2,871,017 Fair Value Measurement as of December 31, 2023 Level 1 Level 2 Level 3 Total Financial Assets: Cash equivalents: Money market funds $ 240,909 $ — $ — $ 240,909 Corporate debt securities — 484 — 484 U.S. government treasury securities — 53,972 — 53,972 Marketable Securities: Corporate debt securities — 775,953 — 775,953 Commercial paper — 605,786 — 605,786 Certificates of deposit — 264,725 — 264,725 U.S. government treasury securities — 459,845 — 459,845 U.S. government agency securities — 146,250 — 146,250 Total financial assets $ 240,909 $ 2,307,015 $ — $ 2,547,924 |
Property and Equipment, Net (Ta
Property and Equipment, Net (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Property, Plant and Equipment [Abstract] | |
Schedule of Property and Equipment, Net | Property and equipment, net consisted of the following (in thousands): June 30, December 31, Computers and equipment $ 40,362 $ 35,736 Furniture and fixtures 19,649 17,202 Leasehold improvements 61,801 55,111 Capitalized software development costs 234,569 192,691 Total property and equipment $ 356,381 $ 300,740 Less: accumulated depreciation and amortization (157,470) (128,868) Total property and equipment, net $ 198,911 $ 171,872 |
Acquisitions, Intangible Asse_2
Acquisitions, Intangible Assets and Goodwill (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Acquisitions, Intangible Assets And Goodwill [Abstract] | |
Schedule of Intangible Assets, Net | Intangible assets, net consisted of the following (in thousands): June 30, 2024 Gross Accumulated Net Amortization Developed technology $ 14,595 $ (9,431) $ 5,164 3 Years Customer relationships 3,300 (2,660) 640 4 Years Total $ 17,895 $ (12,091) $ 5,804 December 31, 2023 Gross Accumulated Net Amortization Developed technology $ 24,995 $ (16,428) $ 8,567 3 years Customer relationships 3,300 (2,250) 1,050 4 years Total $ 28,295 $ (18,678) $ 9,617 |
Schedule of Future Amortization Expense | As of June 30, 2024, future amortization expense by year is expected to be as follows (in thousands): Amount Remainder of 2024 $ 2,716 2025 2,562 2026 526 Total $ 5,804 |
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, 2023 $ 352,694 Foreign currency translation adjustments (1,830) Balance as of June 30, 2024 $ 350,864 |
Convertible Senior Notes (Table
Convertible Senior Notes (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
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): June 30, December 31, Convertible senior notes, net: Principal $ 747,471 $ 747,496 Unamortized debt issuance costs (3,501) (5,261) Net carrying amount $ 743,970 $ 742,235 |
Schedule of Interest Expense related to 2025 Notes | The following table sets forth the interest expense related to the 2025 Notes for the three and six months ended June 30, 2024 and 2023 (in thousands): Three Months Ended Six Months Ended 2024 2023 2024 2023 Contractual interest expense $ 233 $ 234 $ 467 $ 468 Amortization of issuance costs 910 846 1,760 1,691 Total $ 1,143 $ 1,080 $ 2,227 $ 2,159 |
Leases (Tables)
Leases (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
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 Six Months Ended 2024 2023 2024 2023 Operating lease cost (1) $ 10,533 $ 8,070 $ 21,063 $ 15,450 Short-term lease cost 1,404 2,200 2,719 4,719 1) Includes non-cash lease expense of $6.8 million and $6.3 million for the three months ended June 30, 2024 and 2023, respectively, and $13.6 million and $12.2 million for the six months ended June 30, 2024 and 2023, 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): Six Months Ended 2024 2023 Cash paid for amounts included in measurement of lease liabilities $ 2,421 $ 4,145 Operating lease assets obtained in exchange for new lease liabilities 55,042 46,290 |
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 2024 $ 15,975 2025 40,665 2026 39,930 2027 36,688 2028 33,764 2029 and beyond 117,993 Total lease payments $ 285,015 Less: imputed interest (66,615) Present value of lease liabilities $ 218,400 |
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: June 30, Weighted-average remaining lease term (years) 7.3 Weighted-average discount rate 6.57 % |
Revenue (Tables)
Revenue (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
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 Six Months Ended 2024 2023 2024 2023 North America (1) $ 448,002 $ 355,965 $ 873,602 $ 697,181 International 197,277 153,495 382,930 293,993 Total $ 645,279 $ 509,460 $ 1,256,532 $ 991,174 1) Includes revenue from the United States of $426.6 million and $337.5 million for the three months ended June 30, 2024 and 2023, respectively, and $831.1 million and $661.0 million for the six months ended June 30, 2024 and 2023, respectively. |
Stockholders' Equity (Tables)
Stockholders' Equity (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
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, 2023 12,077,635 $ 3.24 3.4 $ 1,426,912 Options granted — — Options exercised (2,587,839) 1.51 Options forfeited or expired (1,038) 5.08 Balance outstanding—June 30, 2024 9,488,758 $ 3.71 3.1 $ 1,195,430 Ending Exercisable—June 30, 2024 9,487,145 $ 3.70 3.1 $ 1,195,264 |
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, 2023 13,663,501 $ 99.13 Awarded 2,530,139 122.35 Vested (2,723,339) 92.59 Forfeited/canceled (673,489) 102.67 Balance—June 30, 2024 12,796,812 $ 104.93 |
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, 2023 13,663,501 $ 99.13 Awarded 2,530,139 122.35 Vested (2,723,339) 92.59 Forfeited/canceled (673,489) 102.67 Balance—June 30, 2024 12,796,812 $ 104.93 |
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 Six Months Ended 2024 2023 2024 2023 Cost of revenue $ 6,393 $ 4,157 $ 11,920 $ 7,882 Research and development 87,105 75,730 175,518 150,433 Sales and marketing 29,201 25,884 57,732 48,898 General and administrative 11,953 12,566 24,515 23,852 Stock-based compensation, net of amounts capitalized 134,652 118,337 269,685 231,065 Capitalized stock-based compensation expense 4,260 4,010 6,906 8,237 Total stock-based compensation expense $ 138,912 $ 122,347 $ 276,591 $ 239,302 |
Interest Income and Other Inc_2
Interest Income and Other Income, Net (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
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 Six Months Ended 2024 2023 2024 2023 Interest income $ 37,241 $ 23,355 $ 72,676 $ 41,875 Other loss, net (589) (731) (461) (2,524) Interest income and other income, net $ 36,652 $ 22,624 $ 72,215 $ 39,351 |
Net Income (Loss) Per Share (Ta
Net Income (Loss) Per Share (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Earnings Per Share [Abstract] | |
Schedule of Calculation of Basic and Diluted Net Income (Loss) Per Share | The following table presents the calculation of basic and diluted net income (loss) per share (in thousands, except per share data): Three Months Ended Six Months Ended 2024 2023 2024 2023 Basic net income (loss) per share: Class A Class B Class A Class B Class A Class B Class A Class B Numerator: Net income (loss) $ 40,409 $ 3,415 $ (3,652) $ (317) $ 79,715 $ 6,740 $ (25,811) $ (2,244) Denominator: Weighted-average shares used in calculating net income (loss) per share, basic 308,838 26,103 296,466 25,749 307,382 25,991 295,126 25,662 Basic net income (loss) per share $ 0.13 $ 0.13 $ (0.01) $ (0.01) $ 0.26 $ 0.26 $ (0.09) $ (0.09) Diluted net income (loss) per share: Numerator: Allocation of distributed net income (loss) for basic computation $ 40,409 $ 3,415 $ (3,652) $ (317) $ 79,715 $ 6,740 $ (25,811) $ (2,244) Reallocation of undistributed net income (loss) as a result of conversion of Class B to Class A shares 3,415 — (317) — 6,740 — (2,244) Allocation of undistributed income (loss) $ 43,824 $ 3,415 $ (3,969) $ (317) $ 86,455 $ 6,740 $ (28,055) $ (2,244) Denominator: Number of shares used in basic calculation 308,838 26,103 296,466 25,749 307,382 25,991 295,126 25,662 Weighted-average effect of diluted securities: Conversion of Class B to Class A common shares outstanding 26,103 — 25,749 — 25,991 — 25,662 — Employee stock options 9,716 — — — 10,382 — — — Employee stock purchase plan 26 — — — 30 — — — Restricted stock units and performance stock units 3,687 — — — 4,367 — — — Unvested restricted stock in connection with acquisition 272 — — — 400 — — — Shares issuable upon conversion of the convertible senior notes 8,098 — — — 8,098 — — — Number of shares used in diluted calculation 356,740 26,103 322,215 25,749 356,650 25,991 320,788 25,662 Diluted net income (loss) per share $ 0.12 $ 0.13 $ (0.01) $ (0.01) $ 0.24 $ 0.26 $ (0.09) $ (0.09) |
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 June 30, 2024 2023 Shares subject to outstanding stock options, RSUs and PSUs 1,017 29,200 Unvested restricted shares of common stock — 799 Shares subject to the employee stock purchase plan 104 254 Shares issuable upon conversion of the convertible senior notes — 8,098 Total 1,121 38,351 |
Marketable Securities - Schedul
Marketable Securities - Schedule of Available-for-sale Marketable Securities (Details) - USD ($) $ in Thousands | Jun. 30, 2024 | Dec. 31, 2023 |
Marketable Securities [Line Items] | ||
Amortized Cost | $ 2,554,487 | $ 2,253,484 |
Unrealized Gain | 397 | 2,065 |
Unrealized Losses | (5,741) | (2,990) |
Fair Value | 2,549,143 | 2,252,559 |
Corporate debt securities | ||
Marketable Securities [Line Items] | ||
Amortized Cost | 1,495,277 | 776,323 |
Unrealized Gain | 229 | 770 |
Unrealized Losses | (3,438) | (1,140) |
Fair Value | 1,492,068 | 775,953 |
U.S. government treasury securities | ||
Marketable Securities [Line Items] | ||
Amortized Cost | 442,675 | 460,854 |
Unrealized Gain | 20 | 390 |
Unrealized Losses | (2,065) | (1,399) |
Fair Value | 440,630 | 459,845 |
Commercial paper | ||
Marketable Securities [Line Items] | ||
Amortized Cost | 376,717 | 605,291 |
Unrealized Gain | 35 | 570 |
Unrealized Losses | (95) | (75) |
Fair Value | 376,657 | 605,786 |
Certificates of deposit | ||
Marketable Securities [Line Items] | ||
Amortized Cost | 191,090 | 264,405 |
Unrealized Gain | 113 | 335 |
Unrealized Losses | (6) | (15) |
Fair Value | 191,197 | 264,725 |
U.S. government agency securities | ||
Marketable Securities [Line Items] | ||
Amortized Cost | 48,728 | 146,611 |
Unrealized Gain | 0 | 0 |
Unrealized Losses | (137) | (361) |
Fair Value | $ 48,591 | $ 146,250 |
Marketable Securities - Sched_2
Marketable Securities - Schedule of Fair Values of Available-for-Sale Marketable Securities, by Remaining Contractual Maturity (Details) $ in Thousands | Jun. 30, 2024 USD ($) |
Investments, Debt and Equity Securities [Abstract] | |
Due within one year | $ 1,588,551 |
Due in one year through five years | 960,592 |
Total | $ 2,549,143 |
Fair Value Measurements (Detail
Fair Value Measurements (Details) - USD ($) $ in Thousands | Jun. 30, 2024 | Dec. 31, 2023 |
Financial Assets: | ||
Marketable Securities: | $ 2,549,143 | $ 2,252,559 |
Corporate debt securities | ||
Financial Assets: | ||
Marketable Securities: | 1,492,068 | 775,953 |
Commercial paper | ||
Financial Assets: | ||
Marketable Securities: | 376,657 | 605,786 |
Certificates of deposit | ||
Financial Assets: | ||
Marketable Securities: | 191,197 | 264,725 |
U.S. government treasury securities | ||
Financial Assets: | ||
Marketable Securities: | 440,630 | 459,845 |
U.S. government agency securities | ||
Financial Assets: | ||
Marketable Securities: | 48,591 | 146,250 |
Fair Value, Recurring | ||
Financial Assets: | ||
Total financial assets | 2,871,017 | 2,547,924 |
Fair Value, Recurring | Corporate debt securities | ||
Financial Assets: | ||
Marketable Securities: | 1,492,068 | 775,953 |
Fair Value, Recurring | Commercial paper | ||
Financial Assets: | ||
Marketable Securities: | 376,657 | 605,786 |
Fair Value, Recurring | Certificates of deposit | ||
Financial Assets: | ||
Marketable Securities: | 191,197 | 264,725 |
Fair Value, Recurring | U.S. government treasury securities | ||
Financial Assets: | ||
Marketable Securities: | 440,630 | 459,845 |
Fair Value, Recurring | U.S. government agency securities | ||
Financial Assets: | ||
Marketable Securities: | 48,591 | 146,250 |
Fair Value, Recurring | Money market funds | ||
Financial Assets: | ||
Cash equivalents: | 303,735 | 240,909 |
Fair Value, Recurring | Commercial paper | ||
Financial Assets: | ||
Cash equivalents: | 15,709 | |
Fair Value, Recurring | Corporate debt securities | ||
Financial Assets: | ||
Cash equivalents: | 2,430 | 484 |
Fair Value, Recurring | U.S. government treasury securities | ||
Financial Assets: | ||
Cash equivalents: | 53,972 | |
Fair Value, Recurring | Level 1 | ||
Financial Assets: | ||
Total financial assets | 303,735 | 240,909 |
Fair Value, Recurring | Level 1 | Corporate debt 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 treasury securities | ||
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: | 303,735 | 240,909 |
Fair Value, Recurring | Level 1 | Commercial paper | ||
Financial Assets: | ||
Cash equivalents: | 0 | |
Fair Value, Recurring | Level 1 | Corporate debt securities | ||
Financial Assets: | ||
Cash equivalents: | 0 | 0 |
Fair Value, Recurring | Level 1 | U.S. government treasury securities | ||
Financial Assets: | ||
Cash equivalents: | 0 | |
Fair Value, Recurring | Level 2 | ||
Financial Assets: | ||
Total financial assets | 2,567,282 | 2,307,015 |
Fair Value, Recurring | Level 2 | Corporate debt securities | ||
Financial Assets: | ||
Marketable Securities: | 1,492,068 | 775,953 |
Fair Value, Recurring | Level 2 | Commercial paper | ||
Financial Assets: | ||
Marketable Securities: | 376,657 | 605,786 |
Fair Value, Recurring | Level 2 | Certificates of deposit | ||
Financial Assets: | ||
Marketable Securities: | 191,197 | 264,725 |
Fair Value, Recurring | Level 2 | U.S. government treasury securities | ||
Financial Assets: | ||
Marketable Securities: | 440,630 | 459,845 |
Fair Value, Recurring | Level 2 | U.S. government agency securities | ||
Financial Assets: | ||
Marketable Securities: | 48,591 | 146,250 |
Fair Value, Recurring | Level 2 | Money market funds | ||
Financial Assets: | ||
Cash equivalents: | 0 | 0 |
Fair Value, Recurring | Level 2 | Commercial paper | ||
Financial Assets: | ||
Cash equivalents: | 15,709 | |
Fair Value, Recurring | Level 2 | Corporate debt securities | ||
Financial Assets: | ||
Cash equivalents: | 2,430 | 484 |
Fair Value, Recurring | Level 2 | U.S. government treasury securities | ||
Financial Assets: | ||
Cash equivalents: | 53,972 | |
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 | 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 treasury securities | ||
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 | Commercial paper | ||
Financial Assets: | ||
Cash equivalents: | 0 | |
Fair Value, Recurring | Level 3 | Corporate debt securities | ||
Financial Assets: | ||
Cash equivalents: | $ 0 | 0 |
Fair Value, Recurring | Level 3 | U.S. government treasury securities | ||
Financial Assets: | ||
Cash equivalents: | $ 0 |
Property and Equipment, Net - S
Property and Equipment, Net - Schedule of Property and Equipment, Net (Details) - USD ($) $ in Thousands | Jun. 30, 2024 | Dec. 31, 2023 |
Property, Plant and Equipment [Line Items] | ||
Total property and equipment | $ 356,381 | $ 300,740 |
Less: accumulated depreciation and amortization | (157,470) | (128,868) |
Total property and equipment, net | 198,911 | 171,872 |
Computers and equipment | ||
Property, Plant and Equipment [Line Items] | ||
Total property and equipment | 40,362 | 35,736 |
Furniture and fixtures | ||
Property, Plant and Equipment [Line Items] | ||
Total property and equipment | 19,649 | 17,202 |
Leasehold improvements | ||
Property, Plant and Equipment [Line Items] | ||
Total property and equipment | 61,801 | 55,111 |
Capitalized software development costs | ||
Property, Plant and Equipment [Line Items] | ||
Total property and equipment | $ 234,569 | $ 192,691 |
Property and Equipment, Net - A
Property and Equipment, Net - Additional Information (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Property, Plant and Equipment [Abstract] | ||||
Depreciation and amortization expense | $ 10.9 | $ 8.3 | $ 21.6 | $ 16.4 |
Acquisitions, Intangible Asse_3
Acquisitions, Intangible Assets and Goodwill - Additional Information (Details) $ in Thousands | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||
Jun. 30, 2024 USD ($) | Jun. 30, 2023 USD ($) | Jun. 30, 2024 USD ($) | Jun. 30, 2023 USD ($) | Dec. 31, 2023 USD ($) businessCombination | |
Business Acquisition [Line Items] | |||||
Goodwill | $ 350,864 | $ 350,864 | $ 352,694 | ||
Intangible amortization expense | $ 1,500 | $ 2,300 | $ 3,700 | $ 4,500 | |
Individually immaterial business acquisitions | |||||
Business Acquisition [Line Items] | |||||
Number of purchase agreements | businessCombination | 3 | ||||
Purchase price allocated to intangible assets | $ 2,100 | ||||
Goodwill | $ 3,500 |
Acquisitions, Intangible Asse_4
Acquisitions, Intangible Assets and Goodwill - Schedule of Intangible Assets, Net (Details) - USD ($) $ in Thousands | Jun. 30, 2024 | Dec. 31, 2023 |
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | $ 17,895 | $ 28,295 |
Accumulated Amortization | (12,091) | (18,678) |
Net Carrying Amount | 5,804 | 9,617 |
Developed technology | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 14,595 | 24,995 |
Accumulated Amortization | (9,431) | (16,428) |
Net Carrying Amount | $ 5,164 | $ 8,567 |
Amortization Period | 3 years | 3 years |
Customer relationships | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | $ 3,300 | $ 3,300 |
Accumulated Amortization | (2,660) | (2,250) |
Net Carrying Amount | $ 640 | $ 1,050 |
Amortization Period | 4 years | 4 years |
Acquisitions, Intangible Asse_5
Acquisitions, Intangible Assets and Goodwill - Schedule of Future Amortization Expense (Details) - USD ($) $ in Thousands | Jun. 30, 2024 | Dec. 31, 2023 |
Acquisitions, Intangible Assets And Goodwill [Abstract] | ||
Remainder of 2024 | $ 2,716 | |
2025 | 2,562 | |
2026 | 526 | |
Net Carrying Amount | $ 5,804 | $ 9,617 |
Acquisitions, Intangible Asse_6
Acquisitions, Intangible Assets and Goodwill - Schedule of Changes in Carrying Amount of Goodwill (Details) $ in Thousands | 6 Months Ended |
Jun. 30, 2024 USD ($) | |
Goodwill [Roll Forward] | |
Goodwill, beginning balance | $ 352,694 |
Foreign currency translation adjustments | (1,830) |
Goodwill, ending balance | $ 350,864 |
Convertible Senior Notes - Addi
Convertible Senior Notes - Additional Information (Details) - 0.125% Convertible Senior Notes due 2025 $ / shares in Units, shares in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 02, 2020 USD ($) d $ / shares | Jun. 30, 2024 USD ($) d | Jun. 30, 2024 USD ($) $ / shares shares | Dec. 31, 2023 USD ($) | |
Debt Instrument [Line Items] | ||||
Principal | $ | $ 747,500,000 | $ 747,471,000 | $ 747,471,000 | $ 747,496,000 |
Debt instrument, interest rate | 0.125% | |||
Debt instrument, net proceeds from sale of notes | $ | $ 730,200,000 | |||
Debt instrument, trading days | 20 | |||
Debt instrument, consecutive trading days | 30 | |||
Debt instrument, principal amount denomination used in conversion | $ | $ 100 | 100 | ||
Debt instrument, estimated fair value | $ | $ 1,081,600,000 | $ 1,081,600,000 | ||
Initial cap price per share of capped calls (in dollars per share) | $ / shares | $ 151.04 | |||
Cost incurred to purchase capped calls | $ | $ 89,600,000 | |||
Class A Common Stock | ||||
Debt Instrument [Line Items] | ||||
Common stock covered under capped calls (in shares) | shares | 8.1 | |||
Redemption, On or After June 20, 2023, and Prior to 31st Scheduled Trading Day | ||||
Debt Instrument [Line Items] | ||||
Debt instrument, trading days | 20 | |||
Debt instrument, consecutive trading days | 30 | |||
Debt instrument, threshold percentage of conversion price | 130% | |||
Debt instrument redemption price percentage of principal amount redeemed | 100% | |||
Conversion Preceding March 15, 2025, Scenario One | ||||
Debt Instrument [Line Items] | ||||
Debt instrument, trading days | 20 | |||
Debt instrument, consecutive trading days | 30 | |||
Debt instrument, threshold percentage of conversion price | 130% | |||
Conversion Preceding March 15, 2025, Scenario Two | ||||
Debt Instrument [Line Items] | ||||
Debt instrument, consecutive trading days | 10 | |||
Debt instrument, convertible, measurement period (days) | 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% | |||
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) - 0.125% Convertible Senior Notes due 2025 - USD ($) | Jun. 30, 2024 | Dec. 31, 2023 | Jun. 02, 2020 |
Debt Instrument [Line Items] | |||
Principal | $ 747,471,000 | $ 747,496,000 | $ 747,500,000 |
Unamortized debt issuance costs | (3,501,000) | (5,261,000) | |
Net carrying amount | $ 743,970,000 | $ 742,235,000 |
Convertible Senior Notes - Sc_2
Convertible Senior Notes - Schedule of Interest Expense related to 2025 Notes (Details) - 0.125% Convertible Senior Notes due 2025 - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Debt Instrument [Line Items] | ||||
Contractual interest expense | $ 233 | $ 234 | $ 467 | $ 468 |
Amortization of Debt Issuance Costs | 910 | 846 | 1,760 | 1,691 |
Total | $ 1,143 | $ 1,080 | $ 2,227 | $ 2,159 |
Commitments and Contingencies (
Commitments and Contingencies (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Commitments and Contingencies Disclosure [Abstract] | ||||
Matching contributions to the 401(k) plan | $ 2 | $ 1.7 | $ 3.8 | $ 3.1 |
Leases - Additional Information
Leases - Additional Information (Details) $ in Millions | 6 Months Ended |
Jun. 30, 2024 USD ($) | |
Leases [Abstract] | |
Operating lease, renewal term | 3 years |
Operating lease, termination term | 1 year |
Operating lease not yet commenced, undiscounted future payments | $ 56.9 |
Operating lease not yet commenced, term of contract | 8 years 6 months |
Leases - Schedule of Components
Leases - Schedule of Components of Lease Cost Recognized (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Leases [Abstract] | ||||
Operating lease cost | $ 10,533 | $ 8,070 | $ 21,063 | $ 15,450 |
Short-term lease cost | 1,404 | 2,200 | 2,719 | 4,719 |
Operating lease, non-cash lease expense | $ 6,800 | $ 6,300 | $ 13,600 | $ 12,200 |
Leases - Schedule of Supplement
Leases - Schedule of Supplemental Cash Flow Information and Non-cash Activity (Details) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2024 | Jun. 30, 2023 | |
Leases [Abstract] | ||
Cash paid for amounts included in measurement of lease liabilities | $ 2,421 | $ 4,145 |
Operating lease assets obtained in exchange for new lease liabilities | $ 55,042 | $ 46,290 |
Leases - Schedule of Maturities
Leases - Schedule of Maturities of Lease Liabilities (Details) $ in Thousands | Jun. 30, 2024 USD ($) |
Leases [Abstract] | |
Remainder of 2024 | $ 15,975 |
2025 | 40,665 |
2026 | 39,930 |
2027 | 36,688 |
2028 | 33,764 |
2029 and beyond | 117,993 |
Total lease payments | 285,015 |
Less: imputed interest | (66,615) |
Present value of lease liabilities | $ 218,400 |
Leases - Schedule of Weighted A
Leases - Schedule of Weighted Average Remaining Lease Term and Discount Rate (Details) | Jun. 30, 2024 |
Leases [Abstract] | |
Weighted-average remaining lease term (years) | 7 years 3 months 18 days |
Weighted-average discount rate | 6.57% |
Revenue - Schedule of Revenue b
Revenue - Schedule of Revenue by Geographic Area (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Disaggregation of Revenue [Line Items] | ||||
Total | $ 645,279 | $ 509,460 | $ 1,256,532 | $ 991,174 |
North America | ||||
Disaggregation of Revenue [Line Items] | ||||
Total | 448,002 | 355,965 | 873,602 | 697,181 |
International | ||||
Disaggregation of Revenue [Line Items] | ||||
Total | 197,277 | 153,495 | 382,930 | 293,993 |
UNITED STATES | ||||
Disaggregation of Revenue [Line Items] | ||||
Total | $ 426,600 | $ 337,500 | $ 831,100 | $ 661,000 |
Revenue - Additional Informatio
Revenue - Additional Information (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | Dec. 31, 2023 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |||||
Revenue recognized | $ 355,000 | $ 261,000 | $ 570,000 | $ 391,700 | |
Remaining performance obligations | 1,792,400 | 1,792,400 | $ 1,839,400 | ||
Accounts charged of accounts receivable deemed uncollectible against the allowance for credit losses | 4,800 | 2,400 | |||
Unbilled accounts receivable | $ 77,800 | $ 77,800 | 61,200 | ||
Deferred contract costs amortization period | 4 years | 4 years | |||
Deferred contract costs | $ 126,600 | $ 126,600 | $ 118,700 | ||
Amortization of deferred contract costs | $ 12,500 | $ 9,400 | $ 24,294 | $ 17,996 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date: 2024-07-01 | |||||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |||||
Remaining performance obligations, expected to recognize period | 24 months | 24 months |
Stockholders' Equity - Addition
Stockholders' Equity - Additional Information (Details) $ / shares in Units, $ in Thousands | 1 Months Ended | 3 Months Ended | 6 Months Ended | 12 Months Ended | |||
Apr. 30, 2023 shares | Sep. 30, 2019 | Jun. 30, 2024 USD ($) vote class plan $ / shares shares | Jun. 30, 2023 USD ($) | Jun. 30, 2024 USD ($) vote class plan $ / shares shares | Jun. 30, 2023 USD ($) shares | Dec. 31, 2023 USD ($) $ / shares shares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Number of common stock classes | class | 2 | 2 | |||||
Number of equity incentive plan | plan | 2 | 2 | |||||
Options granted (in shares) | 0 | 0 | |||||
Proceeds from exercise of stock options | $ | $ 3,944 | $ 7,534 | |||||
Intrinsic value of options exercised | $ | 310,700 | 210,400 | |||||
Aggregate fair value of options vested | $ | 9,600 | ||||||
Shares issued (in shares) | 136,079 | ||||||
Stock-based compensation, net of amounts capitalized | $ | $ 134,652 | $ 118,337 | $ 269,685 | $ 231,065 | |||
Unvested restricted stock in connection with acquisition | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Awarded (in shares) | 0 | ||||||
RSUs and Restricted Stock | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Total compensation cost related to unvested awards not yet recognized | $ | 1,150,700 | $ 1,150,700 | $ 1,187,300 | ||||
Weighted average period over compensation cost related to unvested employee awards | 2 years 8 months 12 days | 2 years 9 months 18 days | |||||
PSUs | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Total compensation cost related to unvested awards not yet recognized | $ | $ 38,500 | $ 38,500 | $ 25,100 | ||||
Weighted average period over compensation cost related to unvested employee awards | 1 year 6 months | 1 year 3 months 18 days | |||||
2019 Equity Incentive Plan | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Number of shares available for grant (in shares) | 87,888,035 | 87,888,035 | |||||
Employee Stock Purchase Plan | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Share-based payment arrangement, expiration period | 6 months | ||||||
Purchase price as percentage of fair market value | 85% | ||||||
Stock-based compensation, net of amounts capitalized | $ | $ 3,700 | $ 8,100 | |||||
Amount withheld for future ESPP purchases | $ | $ 7,100 | $ 7,100 | |||||
Employee Stock Purchase Plan | Maximum | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Share-based payment arrangement, expiration period | 27 months | ||||||
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) | vote | 1 | 1 | |||||
Common stock, authorized (in shares) | 2,000,000,000 | 2,000,000,000 | 2,000,000,000 | ||||
Common stock, par value (in dollars per share) | $ / shares | $ 0.00001 | $ 0.00001 | $ 0.00001 | ||||
Common stock, issued (in shares) | 310,772,876 | 310,772,876 | 305,395,175 | ||||
Common stock, outstanding (in shares) | 310,772,876 | 310,772,876 | 305,395,175 | ||||
Stock issuable upon the exercise of options outstanding (in shares) | 19,970 | 19,970 | 22,926 | ||||
Class A Common Stock | Employee Stock Purchase Plan | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Shares issued (in shares) | 242,656 | ||||||
Remaining common stock available for grant under ESPP (in shares) | 20,549,200 | 20,549,200 | |||||
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) | vote | 10 | 10 | |||||
Common stock, number of shares converted (in shares) | 430,542 | 650,716 | |||||
Common stock, authorized (in shares) | 310,000,000 | 310,000,000 | 310,000,000 | ||||
Common stock, par value (in dollars per share) | $ / shares | $ 0.00001 | $ 0.00001 | $ 0.00001 | ||||
Common stock, issued (in shares) | 25,996,783 | 25,996,783 | 25,684,571 | ||||
Common stock, outstanding (in shares) | 25,996,783 | 25,996,783 | 25,684,571 | ||||
Stock issuable upon the exercise of options outstanding (in shares) | 12,054,709 | ||||||
Class B Common Stock | 2012 Equity Incentive Plan | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Stock issuable upon the exercise of options outstanding (in shares) | 9,468,788 | 9,468,788 |
Stockholders' Equity - Schedule
Stockholders' Equity - Schedule of Stock Option Activity and Weighted Average Exercise Prices (Details) - USD ($) $ / shares in Units, $ in Thousands | 6 Months Ended | 12 Months Ended | |
Jun. 30, 2024 | Jun. 30, 2023 | Dec. 31, 2023 | |
Number Of Options Outstanding | |||
Beginning balance (in shares) | 12,077,635 | ||
Options granted (in shares) | 0 | 0 | |
Options exercised (in shares) | (2,587,839) | ||
Options forfeited or expired (in shares) | (1,038) | ||
Ending balance (in shares) | 9,488,758 | 12,077,635 | |
Exercisable (in shares) | 9,487,145 | ||
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) | 1.51 | ||
Options forfeited or expired (in dollars per share) | 5.08 | ||
Ending balance (in dollars per share) | 3.71 | $ 3.24 | |
Exercisable (in dollars per share) | $ 3.70 | ||
Weighted- Average Remaining Contractual Life (in Years) | |||
Options outstanding | 3 years 1 month 6 days | 3 years 4 months 24 days | |
Exercisable | 3 years 1 month 6 days | ||
Aggregate Intrinsic Value (in thousands) | |||
Balance | $ 1,195,430 | $ 1,426,912 | |
Exercisable | $ 1,195,264 |
Stockholders' Equity - Schedu_2
Stockholders' Equity - Schedule of Activity for Unvested RSUs and PSUs (Details) - Restricted Stock Units, Restricted Stock and Performance Stock Units | 6 Months Ended |
Jun. 30, 2024 $ / shares shares | |
Shares | |
Beginning balance (in shares) | shares | 13,663,501 |
Awarded (in shares) | shares | 2,530,139 |
Vested (in shares) | shares | (2,723,339) |
Forfeited/canceled (in shares) | shares | (673,489) |
Ending balance (in shares) | shares | 12,796,812 |
Weighted- Average Grant Date Fair Value | |
Beginning balance (in dollars per share) | $ / shares | $ 99.13 |
Awarded (in dollars per share) | $ / shares | 122.35 |
Vested (in dollars per share) | $ / shares | 92.59 |
Forfeited/cancelled (in dollars per share) | $ / shares | 102.67 |
Ending balance (in dollars per share) | $ / shares | $ 104.93 |
Stockholders' Equity - Schedu_3
Stockholders' Equity - Schedule of Stock-based Compensation Expense (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | ||||
Stock-based compensation, net of amounts capitalized | $ 134,652 | $ 118,337 | $ 269,685 | $ 231,065 |
Capitalized stock-based compensation expense | 4,260 | 4,010 | 6,906 | 8,237 |
Total stock-based compensation expense | 138,912 | 122,347 | 276,591 | 239,302 |
Cost of revenue | ||||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | ||||
Stock-based compensation, net of amounts capitalized | 6,393 | 4,157 | 11,920 | 7,882 |
Research and development | ||||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | ||||
Stock-based compensation, net of amounts capitalized | 87,105 | 75,730 | 175,518 | 150,433 |
Sales and marketing | ||||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | ||||
Stock-based compensation, net of amounts capitalized | 29,201 | 25,884 | 57,732 | 48,898 |
General and administrative | ||||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | ||||
Stock-based compensation, net of amounts capitalized | $ 11,953 | $ 12,566 | $ 24,515 | $ 23,852 |
Interest Income and Other Inc_3
Interest Income and Other Income, Net (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Interest and Other Income [Abstract] | ||||
Interest income | $ 37,241 | $ 23,355 | $ 72,676 | $ 41,875 |
Other loss, net | (589) | (731) | (461) | (2,524) |
Interest income and other income, net | $ 36,652 | $ 22,624 | $ 72,215 | $ 39,351 |
Income Taxes (Details)
Income Taxes (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Income Tax Disclosure [Abstract] | ||||
Provision for income taxes | $ 3,969 | $ 3,061 | $ 7,523 | $ 6,723 |
Net Income (Loss) Per Share - S
Net Income (Loss) Per Share - Schedule of Calculation of Basic and Diluted Net Income (Loss) Per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Basic net income (loss) per share: | ||||
Net income (loss) | $ 43,824 | $ (3,969) | $ 86,455 | $ (28,055) |
Weighted-average shares used in calculating net income (loss) per share, basic (in shares) | 334,941 | 322,215 | 333,373 | 320,788 |
Basic net income (loss) per share (in dollars per share) | $ 0.13 | $ (0.01) | $ 0.26 | $ (0.09) |
Diluted net income (loss) per share: | ||||
Allocation of distributed net income (loss) for basic computation | $ 43,824 | $ (3,969) | $ 86,455 | $ (28,055) |
Number of shares used in basic calculation (in shares) | 334,941 | 322,215 | 333,373 | 320,788 |
Weighted-average effect of diluted securities: | ||||
Number of shares used in diluted calculation (in shares) | 356,740 | 322,215 | 356,650 | 320,788 |
Diluted net income (loss) per share (in dollars per share) | $ 0.12 | $ (0.01) | $ 0.24 | $ (0.09) |
Class A | ||||
Basic net income (loss) per share: | ||||
Net income (loss) | $ 40,409 | $ (3,652) | $ 79,715 | $ (25,811) |
Weighted-average shares used in calculating net income (loss) per share, basic (in shares) | 308,838 | 296,466 | 307,382 | 295,126 |
Basic net income (loss) per share (in dollars per share) | $ 0.13 | $ (0.01) | $ 0.26 | $ (0.09) |
Diluted net income (loss) per share: | ||||
Allocation of distributed net income (loss) for basic computation | $ 40,409 | $ (3,652) | $ 79,715 | $ (25,811) |
Reallocation of undistributed net income (loss) as a result of conversion of Class B to Class A shares | 3,415 | (317) | 6,740 | (2,244) |
Allocation of undistributed income (loss) | $ 43,824 | $ (3,969) | $ 86,455 | $ (28,055) |
Number of shares used in basic calculation (in shares) | 308,838 | 296,466 | 307,382 | 295,126 |
Weighted-average effect of diluted securities: | ||||
Conversion of Class B to Class A common shares outstanding (in shares) | 26,103 | 25,749 | 25,991 | 25,662 |
Shares issuable upon conversion of the convertible senior notes (in shares) | 8,098 | 0 | 8,098 | 0 |
Number of shares used in diluted calculation (in shares) | 356,740 | 322,215 | 356,650 | 320,788 |
Diluted net income (loss) per share (in dollars per share) | $ 0.12 | $ (0.01) | $ 0.24 | $ (0.09) |
Class A | Employee stock options | ||||
Weighted-average effect of diluted securities: | ||||
Dilutive effect of share-based payment arrangements (in shares) | 9,716 | 0 | 10,382 | 0 |
Class A | Employee stock purchase plan | ||||
Weighted-average effect of diluted securities: | ||||
Dilutive effect of share-based payment arrangements (in shares) | 26 | 0 | 30 | 0 |
Class A | Restricted stock units and performance stock units | ||||
Weighted-average effect of diluted securities: | ||||
Dilutive effect of share-based payment arrangements (in shares) | 3,687 | 0 | 4,367 | 0 |
Class A | Unvested restricted stock in connection with acquisition | ||||
Weighted-average effect of diluted securities: | ||||
Dilutive effect of share-based payment arrangements (in shares) | 272 | 0 | 400 | 0 |
Class B | ||||
Basic net income (loss) per share: | ||||
Net income (loss) | $ 3,415 | $ (317) | $ 6,740 | $ (2,244) |
Weighted-average shares used in calculating net income (loss) per share, basic (in shares) | 26,103 | 25,749 | 25,991 | 25,662 |
Basic net income (loss) per share (in dollars per share) | $ 0.13 | $ (0.01) | $ 0.26 | $ (0.09) |
Diluted net income (loss) per share: | ||||
Allocation of distributed net income (loss) for basic computation | $ 3,415 | $ (317) | $ 6,740 | $ (2,244) |
Reallocation of undistributed net income (loss) as a result of conversion of Class B to Class A shares | 0 | 0 | 0 | |
Allocation of undistributed income (loss) | $ 3,415 | $ (317) | $ 6,740 | $ (2,244) |
Number of shares used in basic calculation (in shares) | 26,103 | 25,749 | 25,991 | 25,662 |
Weighted-average effect of diluted securities: | ||||
Conversion of Class B to Class A common shares outstanding (in shares) | 0 | 0 | 0 | 0 |
Shares issuable upon conversion of the convertible senior notes (in shares) | 0 | 0 | 0 | 0 |
Number of shares used in diluted calculation (in shares) | 26,103 | 25,749 | 25,991 | 25,662 |
Diluted net income (loss) per share (in dollars per share) | $ 0.13 | $ (0.01) | $ 0.26 | $ (0.09) |
Class B | Employee stock options | ||||
Weighted-average effect of diluted securities: | ||||
Dilutive effect of share-based payment arrangements (in shares) | 0 | 0 | 0 | 0 |
Class B | Employee stock purchase plan | ||||
Weighted-average effect of diluted securities: | ||||
Dilutive effect of share-based payment arrangements (in shares) | 0 | 0 | 0 | 0 |
Class B | Restricted stock units and performance stock units | ||||
Weighted-average effect of diluted securities: | ||||
Dilutive effect of share-based payment arrangements (in shares) | 0 | 0 | 0 | 0 |
Class B | Unvested restricted stock in connection with acquisition | ||||
Weighted-average effect of diluted securities: | ||||
Dilutive effect of share-based payment arrangements (in shares) | 0 | 0 | 0 | 0 |
Net Income (Loss) Per Share -_2
Net Income (Loss) Per Share - Schedule of Potentially Dilutive Securities not Included in Diluted Per Share Calculations (Details) - shares shares in Thousands | 6 Months Ended | |
Jun. 30, 2024 | Jun. 30, 2023 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Potentially dilutive securities not included in diluted per share calculations (in shares) | 1,121 | 38,351 |
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) | 1,017 | 29,200 |
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) | 0 | 799 |
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) | 104 | 254 |
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) | 0 | 8,098 |