DigitalOcean (DOCN) 10-Q 5 Nov 21 2021 Q3 Quarterly report Financial data

Cover Page

Cover Page - shares	9 Months Ended
	Sep. 30, 2021	Oct. 28, 2021
Cover [Abstract]
Document Type	10-Q
Document Quarterly Report	true
Document Period End Date	Sep. 30, 2021
Document Transition Report	false
Entity File Number	001-40252
Entity Registrant Name	DigitalOcean Holdings, Inc.
Entity Incorporation, State or Country Code	DE
Entity Tax Identification Number	45-5207470
Entity Address, Address Line One	101 6th Avenue
Entity Address, City or Town	New York
Entity Address, State or Province	NY
Entity Address, Postal Zip Code	10013
City Area Code	646
Local Phone Number	827-4366
Title of 12(b) Security	Common stock, par value $0.000025 per share
Trading Symbol	DOCN
Security Exchange Name	NYSE
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Non-accelerated Filer
Entity Small Business	false
Entity Emerging Growth Company	true
Entity Ex Transition Period	false
Entity Shell Company	false
Entity Common Stock, Shares Outstanding		109,166,409
Entity Central Index Key	0001582961
Amendment Flag	false
Document Fiscal Year Focus	2021
Document Fiscal Period Focus	Q3
Current Fiscal Year End Date	--12-31

Condensed Consolidated Balance

Condensed Consolidated Balance Sheets - USD ($) $ in Thousands	Sep. 30, 2021	Dec. 31, 2020
Statement of Financial Position [Abstract]
Cash and cash equivalents	$ 589,750	$ 100,311
Accounts receivable, less allowance for doubtful accounts of $3,602 and $3,104, respectively	36,505	28,098
Prepaid expenses and other current assets	16,528	19,544
Total current assets	642,783	147,953
Property and equipment, net	241,083	238,956
Restricted cash	2,226	2,226
Goodwill	32,170	2,674
Intangible assets	43,266	34,649
Deferred tax assets	82	82
Other assets	4,215	3,712
Total assets	965,825	430,252
Accounts payable	12,689	12,433
Accrued other expenses	28,412	27,025
Deferred revenue	5,136	4,873
Current portion of long-term debt	0	17,468
Other current liabilities	11,340	22,986
Total current liabilities	57,577	84,785
Deferred tax liabilities	207	211
Long-term debt	0	242,215
Other long-term liabilities	1,608	2,061
Total liabilities	59,392	329,272
Commitments and Contingencies (Note 6)
Convertible preferred stock	0	173,074
Preferred stock ($0.000025 par value per share; 10,000,000 and 0 shares authorized; 0 shares issued and outstanding as of September 30, 2021 and December 31, 2020, respectively)	0	0
Common stock ($0.000025 par value per share; 750,000,000 and 111,400,000 shares authorized; 110,990,479 and 45,299,339 issued; and 109,022,251 and 43,331,111 outstanding as of September 30, 2021 and December 31, 2020, respectively)	2	1
Treasury stock, at cost (1,968,228 shares at September 30, 2021 and December 31, 2020)	(4,598)	(4,598)
Additional paid-in capital	1,085,788	99,783
Accumulated other comprehensive loss	(346)	(245)
Accumulated deficit	(174,413)	(167,035)
Total stockholders’ equity (deficit)	906,433	(72,094)
Total liabilities, convertible preferred stock and stockholders’ equity (deficit)	$ 965,825	$ 430,252

Condensed Consolidated Statemen

Condensed Consolidated Statements of Operations - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2021	Sep. 30, 2020	Sep. 30, 2021	Sep. 30, 2020
Income Statement [Abstract]
Revenue	$ 111,428	$ 81,160	$ 308,899	$ 230,863
Cost of revenue	43,506	37,063	126,195	106,951
Gross profit	67,922	44,097	182,704	123,912
Operating expenses:
Research and development	29,927	19,706	79,450	54,313
Sales and marketing	13,312	7,700	35,545	24,111
General and administrative	26,354	23,411	68,756	62,917
Total operating expenses	69,593	50,817	183,751	141,341
Loss from operations	(1,671)	(6,720)	(1,047)	(17,429)
Other (income) expense:
Interest expense	186	3,190	2,675	10,485
Loss on extinguishment of debt	0	0	3,435	259
Other (income) expense, net	140	438	(157)	679
Other (income) expense	326	3,628	5,953	11,423
Loss before income taxes	(1,997)	(10,348)	(7,000)	(28,852)
Income tax (benefit) expense	(145)	(134)	378	865
Net loss attributable to common stockholders	$ (1,852)	$ (10,214)	$ (7,378)	$ (29,717)
Net loss per share attributable to common stockholders, basic (in dollars per share)	$ (0.02)	$ (0.24)	$ (0.08)	$ (0.72)
Net loss per share attributable to common stockholders, diluted (in dollars per share)	$ (0.02)	$ (0.24)	$ (0.08)	$ (0.72)
Weighted-average shares used to compute net loss per share, basic (in shares)	107,955,000	42,215,000	88,265,000	41,197,000
Weighted average shares used to compute net loss per share, diluted (in shares)	107,955,000	42,215,000	88,265,000	41,197,000

Condensed Consolidated Statem_2

Condensed Consolidated Statements of Comprehensive Loss - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2021	Sep. 30, 2020	Sep. 30, 2021	Sep. 30, 2020
Statement of Other Comprehensive Income [Abstract]
Net loss attributable to common stockholders	$ (1,852)	$ (10,214)	$ (7,378)	$ (29,717)
Other comprehensive loss:
Foreign currency translation adjustments, net of taxes	(73)	32	(101)	(147)
Comprehensive loss	$ (1,925)	$ (10,182)	$ (7,479)	$ (29,864)

Condensed Consolidated Statem_3

Condensed Consolidated Statements of Convertible Preferred Stock and Stockholders' Equity (Deficit) - USD ($) $ in Thousands	Total	IPO	Common Stock	Common StockIPO	Treasury Stock	Additional Paid-In Capital	Additional Paid-In CapitalIPO	Accumulated Other Comprehensive Loss	Accumulated Deficit
Convertible preferred stock outstanding at beginning of period (in shares) at Dec. 31, 2019	40,750,324
Convertible preferred stock outstanding at beginning of period at Dec. 31, 2019	$ 123,264
Increase (Decrease) in Temporary Equity [Roll Forward]
Issuance of convertible preferred stock (in shares)	4,721,905
Issuance of convertible preferred stock	$ 49,810
Convertible preferred stock outstanding at end of period (in shares) at Sep. 30, 2020	45,472,229
Convertible preferred stock outstanding at end of period at Sep. 30, 2020	$ 173,074
Shares outstanding at beginning of period (in shares) at Dec. 31, 2019			41,095,849		(1,968,228)
Total stockholders’ equity (deficit) at beginning of period at Dec. 31, 2019	(72,280)		$ 1		$ (4,598)	$ 55,896		$ (112)	$ (123,467)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Issuance of common stock under equity incentive plan, net of taxes withheld (in shares)			3,437,068
Issuance of common stock under equity incentive plan, net of taxes withheld	11,402					11,402
Stock-based compensation	25,299					25,299
Other comprehensive loss	(147)							(147)
Net loss	(29,717)								(29,717)
Shares outstanding at end of period (in shares) at Sep. 30, 2020			44,532,917		(1,968,228)
Total stockholders’ equity (deficit) at end of period at Sep. 30, 2020	$ (65,443)		$ 1		$ (4,598)	92,597		(259)	(153,184)
Convertible preferred stock outstanding at beginning of period (in shares) at Jun. 30, 2020	45,472,229
Convertible preferred stock outstanding at beginning of period at Jun. 30, 2020	$ 173,074
Convertible preferred stock outstanding at end of period (in shares) at Sep. 30, 2020	45,472,229
Convertible preferred stock outstanding at end of period at Sep. 30, 2020	$ 173,074
Shares outstanding at beginning of period (in shares) at Jun. 30, 2020			43,893,317		(1,968,228)
Total stockholders’ equity (deficit) at beginning of period at Jun. 30, 2020	(70,131)		$ 1		$ (4,598)	77,727		(291)	(142,970)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Issuance of common stock under equity incentive plan, net of taxes withheld (in shares)			639,600
Issuance of common stock under equity incentive plan, net of taxes withheld	2,009					2,009
Stock-based compensation	12,861					12,861
Other comprehensive loss	32							32
Net loss	(10,214)								(10,214)
Shares outstanding at end of period (in shares) at Sep. 30, 2020			44,532,917		(1,968,228)
Total stockholders’ equity (deficit) at end of period at Sep. 30, 2020	$ (65,443)		$ 1		$ (4,598)	92,597		(259)	(153,184)
Convertible preferred stock outstanding at beginning of period (in shares) at Dec. 31, 2020	45,472,229
Convertible preferred stock outstanding at beginning of period at Dec. 31, 2020	$ 173,074
Increase (Decrease) in Temporary Equity [Roll Forward]
Conversion of convertible preferred stock to common stock in connection with initial public offering (in shares)	(45,472,229)
Conversion of convertible preferred stock to common stock in connection with initial public offering	$ (173,074)
Convertible preferred stock outstanding at end of period (in shares) at Sep. 30, 2021	0
Convertible preferred stock outstanding at end of period at Sep. 30, 2021	$ 0
Shares outstanding at beginning of period (in shares) at Dec. 31, 2020			45,299,339		(1,968,228)
Total stockholders’ equity (deficit) at beginning of period at Dec. 31, 2020	(72,094)		$ 1		$ (4,598)	99,783		(245)	(167,035)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Issuance of common stock under equity incentive plan, net of taxes withheld (in shares)			2,785,069
Issuance of common stock under equity incentive plan, net of taxes withheld	$ 10,368					10,368
Exercise of common stock warrants (in shares)			296,848
Issuance of common stock for acquisition (in shares)	636,994
Stock-based compensation	$ 37,966					37,966
Issuance of common stock for acquisition	27,566
Issuance of common stock in connection with initial public offering, net of underwriting discounts and issuance costs (in shares)				16,500,000
Issuance of common stock in connection with initial public offering, net of underwriting discounts and issuance costs		$ 723,126		$ 1			$ 723,125
Conversion of convertible preferred stock to common stock in connection with initial public offering (in shares)				45,472,229
Conversion of convertible preferred stock to common stock in connection with initial public offering		$ 173,074					$ 173,074
Conversion of redeemable preferred stock warrants to common stock warrants	13,906					13,906
Other comprehensive loss	(101)							(101)
Net loss	(7,378)								(7,378)
Shares outstanding at end of period (in shares) at Sep. 30, 2021			110,990,479		(1,968,228)
Total stockholders’ equity (deficit) at end of period at Sep. 30, 2021	$ 906,433		$ 2		$ (4,598)	1,085,788		(346)	(174,413)
Convertible preferred stock outstanding at beginning of period (in shares) at Jun. 30, 2021	0
Convertible preferred stock outstanding at beginning of period at Jun. 30, 2021	$ 0
Convertible preferred stock outstanding at end of period (in shares) at Sep. 30, 2021	0
Convertible preferred stock outstanding at end of period at Sep. 30, 2021	$ 0
Shares outstanding at beginning of period (in shares) at Jun. 30, 2021			109,213,693		(1,968,228)
Total stockholders’ equity (deficit) at beginning of period at Jun. 30, 2021	858,084		$ 2		$ (4,598)	1,035,514		(273)	(172,561)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Issuance of common stock under equity incentive plan, net of taxes withheld (in shares)			907,272
Issuance of common stock under equity incentive plan, net of taxes withheld	$ 3,888					3,888
Exercise of common stock warrants (in shares)			232,520
Issuance of common stock for acquisition (in shares)	636,994
Stock-based compensation	$ 18,820					18,820
Issuance of common stock for acquisition	27,566
Other comprehensive loss	(73)							(73)
Net loss	(1,852)								(1,852)
Shares outstanding at end of period (in shares) at Sep. 30, 2021			110,990,479		(1,968,228)
Total stockholders’ equity (deficit) at end of period at Sep. 30, 2021	$ 906,433		$ 2		$ (4,598)	$ 1,085,788		$ (346)	$ (174,413)

Condensed Consolidated Statem_4

Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2021	Sep. 30, 2020
Operating activities
Net loss attributable to common stockholders	$ (7,378)	$ (29,717)
Adjustments to reconcile net loss to net cash provided by operating activities:
Depreciation and amortization	64,922	55,203
Loss on impairment	212	1,222
Stock-based compensation	37,380	24,865
Non-cash interest expense	386	907
Loss on extinguishment of debt	3,435	259
Revaluation of warrants	(556)	452
Bad debt expense	6,055	9,386
Release of VAT reserve	3,188	0
Other	477	(139)
Changes in operating assets and liabilities, net of acquisition:
Accounts receivable	(14,462)	(13,045)
Prepaid expenses and other current assets	(134)	(8,934)
Accounts payable and accrued expenses	4,001	824
Deferred revenue	263	(267)
Other assets and liabilities	2,587	(869)
Net cash provided by operating activities	100,376	40,147
Investing activities
Capital expenditures - property and equipment	(66,480)	(69,807)
Capital expenditures - internal-use software development	(4,297)	(10,159)
Purchase of intangible assets	(5,636)	(5,118)
Cash paid for acquisition of businesses, net of cash acquired	(5,000)	0
Proceeds from sale of equipment	209	0
Net cash used in investing activities	(81,204)	(85,084)
Financing activities
Repayment of capital leases	0	(699)
Repayment of notes payable	(33,214)	(8,347)
Proceeds from third-party secured financings	0	7,795
Repayment of term loan	(166,813)	(72,438)
Proceeds from issuance of term loan	0	170,000
Repayment of borrowings under revolving credit facility	(63,200)	(84,500)
Proceeds from borrowings under revolving credit facility	0	63,200
Payment of debt issuance costs	0	(3,274)
Proceeds related to the issuance of common stock under equity incentive plan	12,138	11,402
Proceeds from the issuance of convertible preferred stock, net of issuance costs	0	49,810
Payment of initial public offering costs	0	(247)
Proceeds from initial public offering, net of underwriting discounts and commissions and other offering costs	723,126	0
Employee payroll taxes paid related to net settlement of restricted stock units	(1,770)	0
Net cash provided by financing activities	470,267	132,702
Increase in cash, cash equivalents and restricted cash	489,439	87,765
Cash, cash equivalents and restricted cash - beginning of period	102,537	35,886
Cash, cash equivalents and restricted cash - end of period	591,976	123,651
Supplemental disclosures of cash flow information:
Cash paid for interest	2,248	9,479
Cash paid for taxes (net of refunds)	541	528
Non-cash investing and financing activities:
Capitalized stock-based compensation	587	435
Property and equipment received but not yet paid, included in Accounts payable and Accrued other expenses	14,291	18,280
Seller financed equipment purchases	0	3,927
Issuance of common stock for acquisition	$ 27,566	$ 0

Condensed Consolidated Balanc_2

Condensed Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands	Sep. 30, 2021	Dec. 31, 2020
Statement of Financial Position [Abstract]
Allowance for doubtful accounts	$ 3,602	$ 3,104
Preferred stock, par value (in dollars per share)	$ 0.000025	$ 0.000025
Preferred stock, shares authorized (in shares)	10,000,000	0
Preferred stock, shares issued (in shares)	0	0
Preferred stock, shares outstanding (in shares)	0	0
Common stock, par value (in dollars per share)	$ 0.000025	$ 0.000025
Common stock, shares authorized (in shares)	750,000,000	111,400,000
Common stock, shares issued (in shares)	110,990,479	45,299,339
Common stock, shares outstanding (in shares)	109,022,251	43,331,111
Treasury stock, shares (in shares)	1,968,228	1,968,228

Nature of the Business and Orga

Nature of the Business and Organization	9 Months Ended
	Sep. 30, 2021
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Nature of the Business and Organization	Nature of the Business and Organization DigitalOcean Holdings, Inc. and its subsidiaries (collectively, the “Company”, “we”, “our”, “us”) is a leading cloud computing platform offering on-demand infrastructure and platform tools for developers, start-ups and small-to-medium size businesses. The Company was founded with the guiding principle that the transformative benefits of the cloud should be easy to leverage, broadly accessible, reliable and affordable. The Company’s platform simplifies cloud computing, enabling its customers to rapidly accelerate innovation and increase their productivity and agility. The Company offers mission-critical infrastructure solutions across compute, storage and networking, and also enables developers to extend the native capabilities of the Company’s cloud with fully managed application, container and database offerings. The Company has adopted a holding company structure and the primary operations are performed globally through our wholly-owned operating subsidiaries. Initial Public Offering On March 26, 2021, the Company completed its initial public offering (“IPO”), in which the Company issued and sold 16,500,000 shares of its common stock at a public offering price of $47.00 per share, which resulted in net proceeds of $723,125 after deducting the underwriting discounts and commissions and estimated offering expenses payable by the Company. In connection with the IPO, all shares of the convertible preferred stock then outstanding automatically converted into 45,472,229 shares of common stock, and the redeemable convertible preferred stock warrants automatically converted into common stock warrants. Prior to the IPO, deferred offering costs, which consist of direct incremental legal, accounting, and consulting fees relating to the IPO, were capitalized in Prepaid expenses and other current assets in the condensed consolidated balance sheets. Upon the consummation of the IPO, $1,403 of net deferred offering costs were reclassified into stockholders’ equity as an offset against the IPO proceeds.

Summary of Significant Accounti

Summary of Significant Accounting Policies	9 Months Ended
	Sep. 30, 2021
Accounting Policies [Abstract]
Summary of Significant Accounting Policies	Summary of Significant Accounting Policies Basis of Presentation and Principles of Consolidation The accompanying unaudited interim condensed consolidated financial statements have been prepared in conformity with accounting principles generally accepted in the U.S. (“U.S. GAAP”), the same basis as the audited consolidated financial statements included in the Company’s final prospectus for its IPO dated as of March 23, 2021 and filed with the SEC pursuant to Rule 424(b)(4) under the Securities Act of 1933, as amended, on March 24, 2021 (“Final Prospectus”). In the opinion of management, the condensed consolidated financial statements reflect all adjustments, which include normal recurring adjustments, necessary for a fair statement of the Company’s financial position as of September 30, 2021, results of operations for the three and nine months ended September 30, 2021 and 2020, cash flows for the nine months ended September 30, 2021 and 2020, and stockholders' equity for the three and nine months ended September 30, 2021 and 2020. The condensed consolidated financial statements include the accounts of DigitalOcean Holdings, Inc. and its wholly owned subsidiaries. All intercompany balances and transactions have been eliminated in consolidation. Reclassifications Certain prior year amounts have been reclassified and revised to conform to the current year presentation. Use of Estimates The preparation of these condensed consolidated financial statements in conformity with U.S. GAAP requires management to make, on an ongoing basis, estimates, judgments and assumptions that affect the amounts reported and disclosed in the condensed consolidated financial statements and accompanying notes. Actual results could differ from those estimates. Such estimates include, but are not limited to, those related to revenue recognition, accounts receivable and related reserves, useful lives and realizability of long lived assets, capitalized internal-use software development costs, accounting for stock-based compensation, valuation allowances against deferred tax assets, and the fair value and useful lives of tangible and intangible assets acquired and liabilities assumed resulting from business combinations. Management bases its estimates on historical experience and on various other assumptions which management believes to be reasonable, the results of which form the basis for making judgments about the carrying values of assets and liabilities. Cash and Cash Equivalents Cash and cash equivalents consist of highly liquid investments in money market funds, commercial paper and certificates of deposit, with original maturities from the date of purchase of three months or less. The carrying amounts of cash and cash equivalents approximate fair value because of the short-term maturity and highly liquid nature of these instruments. As of September 30, 2021, the Company held $80,000 in commercial paper and $30,000 in certificates of deposit, maturing monthly for the next three months, with interest rates ranging from 0.06% to 0.10%. Restricted Cash Restricted cash includes deposits in financial institutions related to letters of credit used to secure lease agreements. The following table reconciles cash, cash equivalents and restricted cash per the Condensed Consolidated Statements of Cash Flows: September 30, 2021 2020 Cash and cash equivalents $ 589,750 $ 121,236 Restricted cash 2,226 2,415 Total cash, cash equivalents and restricted cash $ 591,976 $ 123,651 Accounts Receivable and Allowance for Doubtful Accounts Accounts receivable primarily represents revenue recognized that was not invoiced at the balance sheet date and is primarily billed and collected in the following month. Trade accounts receivable are carried at the original invoiced amount less an estimated allowance for doubtful accounts based on the probability of future collection. Management determines the adequacy of the allowance based on historical loss patterns, the number of days that customer invoices are past due and an evaluation of the potential risk of loss associated with specific accounts. When management becomes aware of circumstances that may further decrease the likelihood of collection, it records a specific allowance against amounts due, which reduces the receivable to the amount that management reasonably believes will be collected. The Company records changes in the estimate to the allowance for doubtful accounts through bad debt expense and reverses the allowance after the potential for recovery is considered remote. The following table presents the changes in our allowance for doubtful accounts for the period presented: Amount Balance as of December 31, 2020 $ 3,104 Bad debt expense, net of recoveries 6,055 Write-offs (5,557) Balance as of September 30, 2021 $ 3,602 Deferred Revenue Deferred revenue was $5,136 and $4,873 as of September 30, 2021 and December 31, 2020, respectively. Revenue recognized during the three months ended September 30, 2021 and 2020 was $259 and $383, respectively, and $2,618 and $2,338 during the nine months ended September 30, 2021 and 2020, respectively, which was included in each deferred revenue balance at the beginning of each respective period. Segment Information The Company’s chief operating decision maker, the chief executive officer, reviews discrete financial information presented on a consolidated basis for purposes of regularly making operating decisions, allocation of resources, and assessing financial performance. Accordingly, the Company has one operating and reporting segment. Geographical Information Revenue, as determined based on the billing address of the Company’s customers, was as follows: Three Months Ended September 30, Nine Months Ended September 30, 2021 2020 2021 2020 North America 38 % 39 % 38 % 38 % Europe 28 28 29 28 Asia 24 23 23 24 Other 10 10 10 10 Total 100 % 100 % 100 % 100 % Revenue derived from customers in the U.S. was approximately 31% of total revenue for each of the periods presented on the condensed consolidated statements of operations. No country outside of the U.S. had net revenue greater than 10% of total consolidated revenue in any period presented. Property and equipment located in the U.S. was approximately 48% as of September 30, 2021 and December 31, 2020 with the remainder of net assets residing in international locations, primarily in the Netherlands, Singapore and Germany. Concentration of Credit Risk The amounts reflected in the condensed consolidated balance sheets for cash and cash equivalents, restricted cash, and trade accounts receivable are exposed to concentrations of credit risk. Although the Company maintains cash and cash equivalents with multiple financial institutions, the deposits, at times, may exceed federally insured limits. The Company believes that the financial institutions that hold its cash and cash equivalents are financially sound and, accordingly, minimal credit risk exists with respect to these balances. The Company’s customer base consists of a significant number of geographically dispersed customers. No customer represented 10% or more of accounts receivable, net as of September 30, 2021 and December 31, 2020. Additionally, no customer accounted for 10% or more of total revenue during the three and nine months ended September 30, 2021 and 2020, respectively. Recent Accounting Pronouncements – Pending Adoption The following effective dates represent the requirements for private companies which the Company has elected as an emerging growth company. In February 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standard Update (“ASU”) 2016-02, Leases (Topic 842), and additional changes, modifications, clarifications, or interpretations related to this guidance thereafter (“ASU 2016-02”). ASU 2016-02 requires a reporting entity to recognize right-of-use assets and lease liabilities on the balance sheet for operating leases to increase transparency and comparability. ASU 2016-02 is effective for fiscal years beginning after December 15, 2021, and interim periods within fiscal years beginning after December 15, 2022 with early adoption permitted. The Company will record a right of use asset and liability, and is currently evaluating the impact of adoption on the condensed consolidated financial statements. In June 2016, the FASB issued ASU 2016-13, with subsequent amendments, Financial Instruments – Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments (“ASU 2016-13”). ASU 2016-13 requires immediate recognition of management’s estimates of current expected credit losses. ASU 2016-13 is effective for annual reporting periods beginning after December 15, 2022, and interim periods within annual periods beginning after December 15, 2023, with early adoption permitted. The Company is currently evaluating the impact of adoption on the condensed consolidated financial statements.

Business Acquisitions

Business Acquisitions	9 Months Ended
	Sep. 30, 2021
Business Combination and Asset Acquisition [Abstract]
Business Acquisitions	Business AcquisitionsOn September 1, 2021, the Company consummated a business combination acquiring 100% of Nimbella Corp. (“Nimbella”) pursuant to an Agreement and Plan of Reorganization (the “Agreement”). Nimbella provides a serverless platform, built on open source technologies, that is designed to simplify the cloud programming experience and help developers and SMBs focus more on application development and business outcomes and less on managing the underlying infrastructure. This acquisition has been accounted for as a business combination. The total consideration transferred for this acquisition was $5,000 in cash and 636,994 shares of common stock, of which 200,204 shares of common stock will be treated as stock based compensation that will be expensed over 36 months. See Note 9. Stock-Based Compensation, Restricted Shares for more details.The acquisition was accounted for as a business combination in accordance with ASC 805, Business Combinations, and accordingly, the total fair value of the purchase consideration was allocated to the tangible and intangible assets acquired and liabilities assumed based on their estimated fair values on the acquisition date. The majority of the preliminary purchase price was allocated to intangible assets and goodwill, which was $3,300 and $29,496, respectively. Goodwill resulted primarily from the expectation of enhancing the Company's product offerings. The resulting goodwill is not deductible for income tax purposes. Pro forma results of operations for this acquisition have not been presented because they were not material to the condensed consolidated results of operations. The results of operations of Nimbella, which are not material, have been included in the condensed consolidated financial statements from the date of purchase

Balance Sheet Details

Balance Sheet Details	9 Months Ended
	Sep. 30, 2021
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Balance Sheet Details	Balance Sheet Details Property and equipment, net Property and equipment, net consisted of the following: September 30, 2021 December 31, 2020 Computers and equipment $ 492,173 $ 442,778 Furniture and fixtures 1,511 1,511 Leasehold improvements 6,820 6,820 Internal-use software 66,032 61,640 Property and equipment, gross $ 566,536 $ 512,749 Less: accumulated amortization $ (46,151) $ (36,186) Less: accumulated depreciation (279,302) (237,607) Property and equipment, net $ 241,083 $ 238,956 Depreciation expense on property and equipment for the three months ended September 30, 2021 and 2020 was $18,969 and $16,020, respectively, and $54,359 and $45,368 for the nine months ended September 30, 2021 and 2020, respectively. The Company capitalizes costs related to the development of computer software for internal use of $4,884 and $10,594 for the nine months ended September 30, 2021 and 2020, respectively, which is included in internal-use software costs within Property and equipment, net. Amortization expense related to internal-use software for the three months ended September 30, 2021 and 2020 was $3,245 and $3,385, respectively, and $10,245 and $9,608 for the nine months ended September 30, 2021 and 2020, respectively. During the three and nine months ended September 30, 2020, the Company recorded an impairment loss of $536 and $1,222, respectively, and during the three and nine months ended September 30, 2021, the Company recorded an impairment loss of $212 related to software that is no longer being used. Prepaid expenses and other currents assets Prepaid expenses and other current assets consisted of the following: September 30, 2021 December 31, 2020 Prepaid expenses $ 9,751 $ 6,968 VAT receivable 6,123 9,295 Other current expenses 654 3,281 Total prepaid expenses and other current assets $ 16,528 $ 19,544 Other current liabilities Other current liabilities consisted of the following: September 30, 2021 December 31, 2020 Accrued taxes $ 6,577 $ 7,758 Warrant liability — 14,463 ESPP withholding 4,025 — Other 738 765 Total other current liabilities $ 11,340 $ 22,986

Debt

Debt	9 Months Ended
	Sep. 30, 2021
Debt Disclosure [Abstract]
Debt	Debt Debt consisted of the following: September 30, 2021 December 31, 2020 Credit Facility Term Loan (1) $ — $ 165,051 Revolving Credit Facility — 63,200 Notes payable — 31,432 Total debt $ — $ 259,683 Less: current portion Credit Facility $ — $ (7,438) Notes payable — (10,030) Current portion of long-term debt — (17,468) Total long-term debt $ — $ 242,215 ___________________ (1) Amount is net of unamortized discount and debt issuance costs of $1,761 as of December 31, 2020. Credit Facility As of March 31, 2021, the Company paid the remaining obligations on the outstanding Credit Facility, which includes the Term Loan and Revolving Credit Facility. At September 30, 2021, the Company had available borrowing capacity of $150,000 on the Revolving Credit Facility. The Company recognized a loss on extinguishment of debt of $1,652 for the unamortized discount and debt issuance costs related to the Term Loan in the first quarter of 2021. The write-off of the unamortized discount and debt issuance costs represent a non-cash adjustment to reconcile net income to net cash provided by operating activities within the Condensed Consolidated Statements of Cash Flows. The Company incurred commitment fees on the unused balance of the Revolving Credit Facility of $96 and $82 for the three months ended September 30, 2021 and 2020, respectively, and $266 and $237 for the nine months ended September 30, 2021 and 2020, respectively. Interest and amortization of deferred financing fees for the three months ended September 30, 2021 and 2020 was $90 and $2,511, respectively, and $2,153 and $7,922 for the nine months ended September 30, 2021 and 2020, respectively. Notes Payable During the three months ended March 31, 2021, the Company paid the remaining obligations on all outstanding notes payable. Total interest expense for the nine months ended September 30, 2021 was $254. There was no interest expense for the three months ended September 30, 2021. Total interest expense for the three and nine months ended September 30, 2020 was $594 and $1,760, respectively. The Company recognized a loss on extinguishment of debt of $1,783 for unaccrued interest paid in conjunction with the payoff of the remaining debt obligation during the nine months ended September 30, 2021 .

Operating Leases

Operating Leases	9 Months Ended
	Sep. 30, 2021
Leases [Abstract]
Operating Leases	Operating Leases The Company leases data center facilities and office space under generally non-cancelable operating lease agreements, which expire at various dates through 2025. Facility leases generally include renewal options and may include escalating rental payment provisions. Additionally, the leases may require us to pay a portion of the related operating expenses. Rent expense related to these operating leases for the three months ended September 30, 2021 and 2020 was $1,010 and $1,090, respectively, and $3,032 and $3,329 for the nine months ended September 30, 2021 and 2020, respectively. As of September 30, 2021, future minimum rental payments under operating lease agreements were as follows: 2021 (three months remaining) $ 11,138 2022 30,954 2023 24,017 2024 22,316 2025 3,933 Thereafter — Total minimum operating lease payments $ 92,358

Commitments and Contingencies

Commitments and Contingencies	9 Months Ended
	Sep. 30, 2021
Commitments and Contingencies Disclosure [Abstract]
Commitments and Contingencies	Commitments and Contingencies Purchase Commitments As of September 30, 2021, the Company had long-term commitments for bandwidth usage with various networks and internet service providers and entered into purchase orders with various vendors. The Company’s purchase commitments have not materially changed since December 31, 2020. Letters of Credit In conjunction with the execution of certain office space operating leases, letters of credit in the aggregate amount of $2,226 were issued and outstanding as of September 30, 2021 and December 31, 2020, respectively. No draws have been made under such letters of credit. These funds are included as Restricted cash on the Condensed Consolidated Balance Sheets as they are related to long-term operating leases and are included in beginning and ending Cash, cash equivalents and restricted cash in the Condensed Consolidated Statements of Cash Flows. Certain of the letters of credit can be reduced on an annual basis until 2022, at which point the deposit required will similarly reduce to meet minimum threshold requirements. Legal Proceedings The Company may be involved in various legal proceedings and litigation arising in the ordinary course of business. While it is not feasible to predict or determine the ultimate disposition of any such litigation matters, the Company believes that any such legal proceedings will not have a material adverse effect on its condensed consolidated financial position, results of operations, or liquidity.

Stockholders_ Equity (Deficit)

Stockholders’ Equity (Deficit)	9 Months Ended
	Sep. 30, 2021
Equity [Abstract]
Stockholders’ Equity (Deficit)	Stockholders’ Equity (Deficit) Common Stock The Company’s amended and restated certificate of incorporation authorizes the issuance of common and preferred stock. Holders of common stock are entitled to one vote per share. As of September 30, 2021 and December 31, 2020, the Company was authorized to issue 750,000,000 and 111,400,000 shares of common stock, respectively, with a par value of $0.000025 per share. Common Stock Reserved for Future Issuance The Company is authorized to reserve shares of common stock for potential conversion as follows: September 30, 2021 December 31, 2020 Series Seed preferred stock — 12,517,832 Series A-1 preferred stock (1) — 18,304,108 Series B preferred stock — 10,237,032 Series C preferred stock — 4,721,905 2021 Equity Incentive Plan 30,930,000 34,821,642 Employee Stock Purchase Plan 2,200,000 — Total number of shares for common stock reserved 33,130,000 80,602,519 ___________________ (1) Amount includes 308,632 shares of common stock held in reserve for the redeemable convertible preferred stock warrants which were converted to common stock warrants upon the completion of the IPO. Preferred Stock In connection with the IPO, the Company's amended and restated certificate of incorporation became effective, which authorized the issuance of 10,000,000 shares of preferred stock with a par value of $0.000025 per share with rights and preferences, including voting rights, designated from time to time by the Company's board of directors. No shares of preferred stock were issued and outstanding as of September 30, 2021. Redeemable Convertible Preferred Stock Upon completion of the IPO, all shares of Series Seed, Series A, Series B, and Series C redeemable convertible preferred stock then outstanding, totaling 45,472,229 shares, were automatically converted into an equivalent number of shares of common stock. The carrying value of $173,074 was reclassified into Stockholders' equity (deficit). As of September 30, 2021, there were no shares of redeemable convertible preferred stock authorized, issued and outstanding. Common Stock Warrants During 2015 and 2014, the Company issued warrants to third parties as partial consideration for property and equipment primarily used in our co-location centers. These warrants allowed the holder to purchase 66,668 shares of common stock at $1.50 per share, and 241,964 shares of common stock at $2.0663 per share. The warrants, which are equity classified, are immediately exercisable, had a term of ten years and various expiration dates through 2025. With the conversion of the convertible preferred stock into shares of common stock upon the completion of the IPO, 308,632 shares of the redeemable convertible preferred stock warrants automatically converted into common stock warrants. The warrants were remeasured on the date of the IPO using the public offering price of $47.00 per share, which resulted in a gain of $556 that was recorded to Other (income) expense, net for the period ending March 31, 2021. The warrants are considered indexed to the Company’s own stock and therefore no subsequent remeasurement is required. During April 2021, a warrant holder net exercised its warrant for 64,328 shares of common stock. During July 2021, a warrant holder net exercised its warrants for 232,520 shares of common stock. No warrants remain outstanding as of July 31, 2021 and no further warrants have been issued. Treasury Stock The Company records treasury stock at the cost to acquire shares and is included as a component of Stockholders’ equity (deficit). At September 30, 2021 and December 31, 2020, the Company had 1,968,228 shares of treasury stock which were carried at its cost basis of $4,598 on the Condensed Consolidated Balance Sheets.

Stock-Based Compensation

Stock-Based Compensation	9 Months Ended
	Sep. 30, 2021
Share-based Payment Arrangement [Abstract]
Stock-Based Compensation	Stock-Based Compensation Equity Incentive Plan In March 2021, the Company’s board of directors adopted, and the stockholders approved, the 2021 Equity Incentive Plan. The 2021 Equity Incentive Plan is a successor to and continuation of the 2013 Stock Plan. The 2021 Equity Incentive Plan became effective on the date of the IPO with no further grants being made under the 2013 Stock Plan, however, awards outstanding under our 2013 Stock Plan will continue to be governed by their existing terms. The 2021 Equity Incentive Plan provides for the grant of incentive stock options, nonstatutory stock options, stock appreciation rights, restricted stock awards, restricted stock units awards (“RSUs”), performance awards, and other awards to employees, directors, and consultants up to an aggregate of 30,930,000 shares of common stock. Shares issued pursuant to the exercise of these awards are transferable by the holder. Amounts paid by economic interest holders in excess of fair value are recorded as stock-based compensation (see Note 12). Stock Options Stock options granted have a maximum term of ten years from the grant date, are exercisable upon vesting and vest over a period of four years. Stock option activity for the nine months ended September 30, 2021 was as follows: Number of Options Outstanding Weighted-Average Exercise Price Weighted-Average Remaining Life in Years Aggregate Intrinsic Value Outstanding at January 1, 2021 16,933,494 $ 6.73 8.44 $ 596,767 Exercised (2,712,070) 4.48 Forfeited or cancelled (770,247) 7.90 Outstanding at September 30, 2021 13,451,177 7.12 7.85 948,468 Vested and exercisable at September 30, 2021 6,276,930 5.51 7.36 452,710 Vested and unvested expected to vest at September 30, 2021 11,285,444 $ 6.71 7.74 $ 800,370 The aggregate intrinsic value represents the difference between the fair value of common stock and the exercise price of outstanding in-the-money options. The aggregate intrinsic value of exercised options for the nine months ended September 30, 2021 and 2020 was $98,724 and $10,970, respectively. The weighted-average grant date fair value of options granted to participants during the nine months ended September 30, 2020 was $3.28 per share. No options were granted during the nine months ended September 30, 2021. The aggregate estimated fair value of stock options granted to participants that vested during the nine months ended September 30, 2021 and 2020 was $15,402 and $7,161, respectively. As of September 30, 2021, there was $30,659 of unrecognized stock-based compensation expense related to outstanding stock options granted that is expected to be recognized over a weighted-average period of 2.66 years. RSUs RSUs granted vest over four years. RSU activity for the nine months ended September 30, 2021 was as follows: Shares Weighted-Average Fair Value Unvested balance at January 1, 2021 413,750 $ 13.69 Granted 2,952,505 44.72 Vested (117,480) 18.37 Forfeited or cancelled (144,408) 42.31 Unvested balance at September 30, 2021 3,104,367 41.70 Vested and expected to vest at September 30, 2021 1,862,476 $ 42.30 As of September 30, 2021, there was $67,283 of unrecognized stock-based compensation expense related to outstanding RSUs granted that is expected to be recognized over a weighted-average period of 3.36 years. PRSUs The Company issued performance-based restricted stock units (“PRSUs”) which will vest based on the achievement of each award’s established performance targets. Shares Weighted-Average Fair Value Unvested balance at January 1, 2021 — $ — Granted 578,949 48.04 Unvested balance at September 30, 2021 578,949 $ 48.04 At the end of each reporting period, the Company will adjust compensation expense for the PRSUs based on its best estimate of attainment of the below specified performance metrics. The cumulative effect on current and prior periods of a change in the estimated number of PRSUs that are expected to be earned during the performance period will be recognized as an adjustment to earnings in the period of the revision. Compensation cost in connection with the probable number of shares that will vest will be recognized using the accelerated attribution method. As of September 30, 2021, the Company determined that it was probable that the LTIP PRSUs (defined below) and the other PRSU awards would vest, resulting in $12,414 of unrecognized stock-based compensation expense that is expected to be recognized over a weighted-average period of 1.1 years. LTIP PRSUs On June 10, 2021, the Company granted PRSUs to certain executives of the Company (“LTIP PRSUs”). A percentage of the PRSUs will become eligible to vest based on the Company’s financial performance level for fiscal year 2021 (the “Performance Period”). The financial performance level is determined as the percentage equal to the sum of the revenue growth percentage (percentage increase in revenue from fiscal year 2020 to fiscal year 2021) and profitability percentage (adjusted EBITDA margin minus capital expenditures as a percentage of revenue). Capital expenditures includes purchases of intangible assets, seller financed equipment purchases and acquisition of property and equipment from capital leases. Assuming the minimum performance target is achieved, one-third of the aggregate number of LTIP PRSUs shall vest in 2022 on the later of (i) March 1, 2022 or (ii) two trading days following the public release of the Company’s 2021 financial results, and the remainder shall vest in eight equal quarterly installments subject, in each case, to the individual’s continuous service through the applicable vesting date. Other PRSUs In addition to the above awards, certain other PRSUs have been awarded subject to other various performance measures including the achievement of revenue targets and product launches. MRSUs On July 27, 2021, the board of directors of the Company granted a market-based restricted stock unit (“MRSU”) award to the Company’s Chief Executive Officer, Yancey Spruill (the “CEO Performance Award”). The CEO Performance Award consists of an MRSU award under the Company’s 2021 Equity Incentive Plan for 3,000,000 shares of the Company’s common stock and will vest upon the satisfaction of certain service conditions and the achievement of certain Company stock price goals, as described below. The CEO Performance Award will be earned based on the Company’s stock price performance over a seven-year period beginning on the date of grant. The CEO Performance Award, which is estimated to have a grant date fair value of approximately $75.3 million derived by using a discrete model based on multiple stock price-paths developed through the use of a Monte Carlo simulation, is divided into five tranches that will be earned based on the achievement of stock price goals, measured based on the average of the Company’s closing stock price over a consecutive ninety (90) trading day period during the performance period as set forth in the table below. Tranche Company Stock Price Target Number of Eligible MRSUs 1 $93.50 475,000 2 $140.00 575,000 3 $187.00 650,000 4 $233.50 650,000 5 $280.50 650,000 If the average stock price over a consecutive ninety (90) trading day period fails to reach $93.50 during the performance period, no portion of the CEO Performance Award will be earned. To the extent earned based on the stock price targets set forth above, the CEO Performance Award will vest over a seven-year period beginning on the date of grant in annual amounts equal to 14%, 14%, 14%, 14%, 14%, 15% and 15%, respectively, on each anniversary of the date of grant. As of September 30, 2021, there was $72,215 of unrecognized stock-based compensation expense related to the MRSUs granted that is expected to be recognized over a weighted-average period of 4.61 years. Employee Stock Purchase Plan In March 2021, the Company’s board of directors adopted, and the stockholders approved, the 2021 Employee Stock Purchase Plan (the “ESPP”), which became effective on the date of the Final Prospectus. The ESPP initially reserved and authorized the issuance of up to a total of 2,200,000 shares of common stock to participating employees. The initial offering and purchase period under the ESPP commenced on the IPO date with the first purchase date to be November 19, 2021. As of September 30, 2021, 2,200,000 shares of common stock remain available for issuance under the ESPP. The initial enrollment period began on the date of the IPO and ended on April 3, 2021. On the November 19, 2021 purchase date, eligible employees will purchase the shares at a price per share equal to 85% of the lesser of (1) the $47.00 initial public offering price of the Company’s common stock or (2) the fair market value of the Company’s common stock on the purchase date. During the three and nine months ended September 30, 2021, the Company recorded $186 and $2,108, respectively, of stock based compensation related to the ESPP. As of September 30, 2021, $4,025 has been withheld on behalf of employees and there were no purchases related to the ESPP. Restricted Shares In connection with our acquisition of Nimbella, we issued 200,204 shares of restricted stock for $63.11 per share for a total value of $12,635 to the founders of Nimbella. These shares vest equally on March 1, 2023 and September 1, 2024 and are expensed on a straight line basis over 36 months. The restricted stock is subject to forfeiture and dependent upon each founder’s continuous service on the vesting date. As of September 30, 2021, there was $12,289 of unrecognized stock-based compensation expense related to outstanding restricted shares granted that is expected to be recognized over a weighted-average period of 2.96 years. Stock-Based Compensation Stock-based compensation was included in the Condensed Consolidated Statements of Operations as follows: Three Months Ended September 30, Nine Months Ended September 30, 2021 2020 2021 2020 Cost of revenue $ 196 $ 302 $ 797 $ 394 Research and development 6,099 2,950 13,794 5,983 Sales and marketing 2,582 470 5,621 1,149 General and administrative 9,678 9,004 17,168 17,339 Total $ 18,555 $ 12,726 $ 37,380 $ 24,865 Stock-based compensation related to secondary sales of common stock by certain current and former employees for the three and nine months ended September 30, 2020 was $10,203 and $18,343, respectively. There were no such expenses recorded for the three and nine months ended September 30, 2021.

Net Loss per Share Attributable

Net Loss per Share Attributable to Common Stockholders	9 Months Ended
	Sep. 30, 2021
Earnings Per Share [Abstract]
Net Loss per Share Attributable to Common Stockholders	Net Loss per Share Attributable to Common Stockholders The following table presents the calculation of basic and diluted net loss per share: Three Months Ended September 30, Nine Months Ended September 30, 2021 2020 2021 2020 Numerator: Net loss attributable to common stockholders $ (1,852) $ (10,214) $ (7,378) $ (29,717) Denominator: Weighted average shares, in thousands, used to compute net loss per share, basic and diluted 107,955 42,215 88,265 41,197 Net loss per share attributable to common stockholders, basic and diluted $ (0.02) $ (0.24) $ (0.08) $ (0.72) Potentially dilutive securities that were not included in the diluted per share calculations because they would be anti-dilutive were as follows: September 30, 2021 2020 Series Seed — 12,517,832 Series A-1 — 17,995,460 Series B — 10,237,032 Series C — 4,721,905 Warrants — 308,632 Stock Options 13,451,177 16,027,256 RSUs 3,104,367 320,000 PRSUs 578,949 — MRSU 3,000,000 — ESPP 253,768 — Total 20,388,261 62,128,117

Income Taxes

Income Taxes	9 Months Ended
	Sep. 30, 2021
Income Tax Disclosure [Abstract]
Income Taxes	Income Taxes The computation of the provision for or benefit from income taxes for interim periods is determined by applying the estimated annual effective tax rate to year-to-date income (loss) before tax and adjusting for discrete tax items recorded in the period, if any. For the three and nine months ended September 30, 2021, the Company recorded a tax benefit of $(145) and a tax expense of $378, respectively. The effective tax rate for the three and nine months ended September 30, 2021 was 7.3% and (5.4)%, respectively. The effective tax rate differs from the statutory rate primarily as a result of not recognizing deferred tax assets for U.S. losses due to a full valuation allowance against the U.S. deferred tax assets, and excess tax benefits from stock-based compensation. For the three and nine months ended September 30, 2020, the Company recorded a tax benefit of $(134) and a tax expense of $865, respectively. The effective tax rate for the three and nine months ended September 30, 2020 was 1.3% and (3.0)%, respectively. The effective tax rate differs from the statutory rate primarily as a result of not recognizing deferred tax assets for U.S. losses due to a full valuation allowance against the U.S. deferred tax assets, and excess tax benefits from stock-based compensation. The provision for income taxes consists primarily of income taxes related to international jurisdictions in which the Company conducts business. Based on the available supporting evidence, including the amount and timing of future taxable income, the Company has concluded that it is more likely than not that a significant portion of the deferred tax assets will not be realized. As such, the Company maintains a full valuation allowance on its U.S. deferred tax assets.

Related Party Transactions

Related Party Transactions	9 Months Ended
	Sep. 30, 2021
Related Party Transactions [Abstract]
Related Party Transactions	Related Party TransactionsDuring the three and nine months ended September 30, 2020, the Company recorded $10,203 and 18,343, respectively, of stock-based compensation associated with secondary sales transactions. There were no such expenses recorded for the three and nine months ended September 30, 2021. The secondary sales transactions were executed primarily between holders of economic interest in the Company and the Company’s employees and former employees at prices in excess of the fair value of such shares. Accordingly, the Company recognized such excess value as stock-based compensation. The Company did not sell any shares or receive any proceeds from the transactions.

Subsequent Events

Subsequent Events	9 Months Ended
	Sep. 30, 2021
Subsequent Events [Abstract]
Subsequent Events	Subsequent Events

Summary of Significant Accoun_2

Summary of Significant Accounting Policies (Policies)	9 Months Ended
	Sep. 30, 2021
Accounting Policies [Abstract]
Basis of Presentation	Basis of Presentation and Principles of ConsolidationThe accompanying unaudited interim condensed consolidated financial statements have been prepared in conformity with accounting principles generally accepted in the U.S. (“U.S. GAAP”), the same basis as the audited consolidated financial statements included in the Company’s final prospectus for its IPO dated as of March 23, 2021 and filed with the SEC pursuant to Rule 424(b)(4) under the Securities Act of 1933, as amended, on March 24, 2021 (“Final Prospectus”).
Principles of Consolidation	The condensed consolidated financial statements include the accounts of DigitalOcean Holdings, Inc. and its wholly owned subsidiaries. All intercompany balances and transactions have been eliminated in consolidation.
Reclassifications	Reclassifications Certain prior year amounts have been reclassified and revised to conform to the current year presentation.
Use of Estimates	Use of Estimates The preparation of these condensed consolidated financial statements in conformity with U.S. GAAP requires management to make, on an ongoing basis, estimates, judgments and assumptions that affect the amounts reported and disclosed in the condensed consolidated financial statements and accompanying notes. Actual results could differ from those estimates. Such estimates include, but are not limited to, those related to revenue recognition, accounts receivable and related reserves, useful lives and realizability of long lived assets, capitalized internal-use software development costs, accounting for stock-based compensation, valuation allowances against deferred tax assets, and the fair value and useful lives of tangible and intangible assets acquired and liabilities assumed resulting from business combinations. Management bases its estimates on historical experience and on various other assumptions which management believes to be reasonable, the results of which form the basis for making judgments about the carrying values of assets and liabilities.
Cash and Cash Equivalents	Cash and Cash Equivalents Cash and cash equivalents consist of highly liquid investments in money market funds, commercial paper and certificates of deposit, with original maturities from the date of purchase of three months or less. The carrying amounts of cash and cash equivalents approximate fair value because of the short-term maturity and highly liquid nature of these instruments. As of September 30, 2021, the Company held $80,000 in commercial paper and $30,000 in certificates of deposit, maturing monthly for the next three months, with interest rates ranging from 0.06% to 0.10%.
Restricted Cash	Restricted CashRestricted cash includes deposits in financial institutions related to letters of credit used to secure lease agreements.
Accounts Receivable and Allowance for Doubtful Accounts	Accounts Receivable and Allowance for Doubtful Accounts Accounts receivable primarily represents revenue recognized that was not invoiced at the balance sheet date and is primarily billed and collected in the following month. Trade accounts receivable are carried at the original invoiced amount less an estimated allowance for doubtful accounts based on the probability of future collection. Management determines the adequacy of the allowance based on historical loss patterns, the number of days that customer invoices are past due and an evaluation of the potential risk of loss associated with specific accounts. When management becomes aware of circumstances that may further decrease the likelihood of collection, it records a specific allowance against amounts due, which reduces the receivable to the amount that management reasonably believes will be collected. The Company records changes in the estimate to the allowance for doubtful accounts through bad debt expense and reverses the allowance after the potential for recovery is considered remote.
Deferred Revenue	Deferred Revenue Deferred revenue was $5,136 and $4,873 as of September 30, 2021 and December 31, 2020, respectively. Revenue recognized during the three months ended September 30, 2021 and 2020 was $259 and $383, respectively, and $2,618 and $2,338 during the nine months ended September 30, 2021 and 2020, respectively, which was included in each deferred revenue balance at the beginning of each respective period.
Segment Information	Segment Information The Company’s chief operating decision maker, the chief executive officer, reviews discrete financial information presented on a consolidated basis for purposes of regularly making operating decisions, allocation of resources, and assessing financial performance. Accordingly, the Company has one operating and reporting segment.
Concentration of Credit Risk	Concentration of Credit RiskThe amounts reflected in the condensed consolidated balance sheets for cash and cash equivalents, restricted cash, and trade accounts receivable are exposed to concentrations of credit risk. Although the Company maintains cash and cash equivalents with multiple financial institutions, the deposits, at times, may exceed federally insured limits. The Company believes that the financial institutions that hold its cash and cash equivalents are financially sound and, accordingly, minimal credit risk exists with respect to these balances.
Recent Accounting Pronouncements – Pending Adoption	Recent Accounting Pronouncements – Pending Adoption The following effective dates represent the requirements for private companies which the Company has elected as an emerging growth company. In February 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standard Update (“ASU”) 2016-02, Leases (Topic 842), and additional changes, modifications, clarifications, or interpretations related to this guidance thereafter (“ASU 2016-02”). ASU 2016-02 requires a reporting entity to recognize right-of-use assets and lease liabilities on the balance sheet for operating leases to increase transparency and comparability. ASU 2016-02 is effective for fiscal years beginning after December 15, 2021, and interim periods within fiscal years beginning after December 15, 2022 with early adoption permitted. The Company will record a right of use asset and liability, and is currently evaluating the impact of adoption on the condensed consolidated financial statements. In June 2016, the FASB issued ASU 2016-13, with subsequent amendments, Financial Instruments – Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments (“ASU 2016-13”). ASU 2016-13 requires immediate recognition of management’s estimates of current expected credit losses. ASU 2016-13 is effective for annual reporting periods beginning after December 15, 2022, and interim periods within annual periods beginning after December 15, 2023, with early adoption permitted. The Company is currently evaluating the impact of adoption on the condensed consolidated financial statements.

Summary of Significant Accoun_3

Summary of Significant Accounting Policies (Tables)	9 Months Ended
	Sep. 30, 2021
Accounting Policies [Abstract]
Reconciliation of Cash and Cash Equivalents	The following table reconciles cash, cash equivalents and restricted cash per the Condensed Consolidated Statements of Cash Flows: September 30, 2021 2020 Cash and cash equivalents $ 589,750 $ 121,236 Restricted cash 2,226 2,415 Total cash, cash equivalents and restricted cash $ 591,976 $ 123,651
Reconciliation of Restricted Cash	The following table reconciles cash, cash equivalents and restricted cash per the Condensed Consolidated Statements of Cash Flows: September 30, 2021 2020 Cash and cash equivalents $ 589,750 $ 121,236 Restricted cash 2,226 2,415 Total cash, cash equivalents and restricted cash $ 591,976 $ 123,651
Disclosure of Changes in Allowance for Doubtful Accounts	The following table presents the changes in our allowance for doubtful accounts for the period presented: Amount Balance as of December 31, 2020 $ 3,104 Bad debt expense, net of recoveries 6,055 Write-offs (5,557) Balance as of September 30, 2021 $ 3,602
Revenue by Geographic Areas	Revenue, as determined based on the billing address of the Company’s customers, was as follows: Three Months Ended September 30, Nine Months Ended September 30, 2021 2020 2021 2020 North America 38 % 39 % 38 % 38 % Europe 28 28 29 28 Asia 24 23 23 24 Other 10 10 10 10 Total 100 % 100 % 100 % 100 %

Balance Sheet Details (Tables)

Balance Sheet Details (Tables)	9 Months Ended
	Sep. 30, 2021
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Schedule of property and equipment, net	Property and equipment, net consisted of the following: September 30, 2021 December 31, 2020 Computers and equipment $ 492,173 $ 442,778 Furniture and fixtures 1,511 1,511 Leasehold improvements 6,820 6,820 Internal-use software 66,032 61,640 Property and equipment, gross $ 566,536 $ 512,749 Less: accumulated amortization $ (46,151) $ (36,186) Less: accumulated depreciation (279,302) (237,607) Property and equipment, net $ 241,083 $ 238,956
Schedule of prepaid expenses and other current assets	Prepaid expenses and other current assets consisted of the following: September 30, 2021 December 31, 2020 Prepaid expenses $ 9,751 $ 6,968 VAT receivable 6,123 9,295 Other current expenses 654 3,281 Total prepaid expenses and other current assets $ 16,528 $ 19,544
Schedule of other current liabilities	Other current liabilities consisted of the following: September 30, 2021 December 31, 2020 Accrued taxes $ 6,577 $ 7,758 Warrant liability — 14,463 ESPP withholding 4,025 — Other 738 765 Total other current liabilities $ 11,340 $ 22,986

Debt (Tables)

Debt (Tables)	9 Months Ended
	Sep. 30, 2021
Debt Disclosure [Abstract]
Schedule of Debt	Debt consisted of the following: September 30, 2021 December 31, 2020 Credit Facility Term Loan (1) $ — $ 165,051 Revolving Credit Facility — 63,200 Notes payable — 31,432 Total debt $ — $ 259,683 Less: current portion Credit Facility $ — $ (7,438) Notes payable — (10,030) Current portion of long-term debt — (17,468) Total long-term debt $ — $ 242,215 ___________________ (1) Amount is net of unamortized discount and debt issuance costs of $1,761 as of December 31, 2020.

Operating Leases (Tables)

Operating Leases (Tables)	9 Months Ended
	Sep. 30, 2021
Leases [Abstract]
Maturities of Operating Leases	As of September 30, 2021, future minimum rental payments under operating lease agreements were as follows: 2021 (three months remaining) $ 11,138 2022 30,954 2023 24,017 2024 22,316 2025 3,933 Thereafter — Total minimum operating lease payments $ 92,358

Stockholders_ Equity (Deficit)

Stockholders’ Equity (Deficit) (Tables)	9 Months Ended
	Sep. 30, 2021
Equity [Abstract]
Schedule of Stock by Class	The Company is authorized to reserve shares of common stock for potential conversion as follows: September 30, 2021 December 31, 2020 Series Seed preferred stock — 12,517,832 Series A-1 preferred stock (1) — 18,304,108 Series B preferred stock — 10,237,032 Series C preferred stock — 4,721,905 2021 Equity Incentive Plan 30,930,000 34,821,642 Employee Stock Purchase Plan 2,200,000 — Total number of shares for common stock reserved 33,130,000 80,602,519 ___________________ (1) Amount includes 308,632 shares of common stock held in reserve for the redeemable convertible preferred stock warrants which were converted to common stock warrants upon the completion of the IPO.

Stock-Based Compensation (Table

Stock-Based Compensation (Tables)	9 Months Ended
	Sep. 30, 2021
Share-based Payment Arrangement [Abstract]
Schedule of Stock Option Activity	Stock option activity for the nine months ended September 30, 2021 was as follows: Number of Options Outstanding Weighted-Average Exercise Price Weighted-Average Remaining Life in Years Aggregate Intrinsic Value Outstanding at January 1, 2021 16,933,494 $ 6.73 8.44 $ 596,767 Exercised (2,712,070) 4.48 Forfeited or cancelled (770,247) 7.90 Outstanding at September 30, 2021 13,451,177 7.12 7.85 948,468 Vested and exercisable at September 30, 2021 6,276,930 5.51 7.36 452,710 Vested and unvested expected to vest at September 30, 2021 11,285,444 $ 6.71 7.74 $ 800,370
Schedule of RSU Activity	RSU activity for the nine months ended September 30, 2021 was as follows: Shares Weighted-Average Fair Value Unvested balance at January 1, 2021 413,750 $ 13.69 Granted 2,952,505 44.72 Vested (117,480) 18.37 Forfeited or cancelled (144,408) 42.31 Unvested balance at September 30, 2021 3,104,367 41.70 Vested and expected to vest at September 30, 2021 1,862,476 $ 42.30
Schedule of PRSU Activity	Shares Weighted-Average Fair Value Unvested balance at January 1, 2021 — $ — Granted 578,949 48.04 Unvested balance at September 30, 2021 578,949 $ 48.04
Summary of Share-Based Payment Arrangement and Price Targets	The CEO Performance Award, which is estimated to have a grant date fair value of approximately $75.3 million derived by using a discrete model based on multiple stock price-paths developed through the use of a Monte Carlo simulation, is divided into five tranches that will be earned based on the achievement of stock price goals, measured based on the average of the Company’s closing stock price over a consecutive ninety (90) trading day period during the performance period as set forth in the table below. Tranche Company Stock Price Target Number of Eligible MRSUs 1 $93.50 475,000 2 $140.00 575,000 3 $187.00 650,000 4 $233.50 650,000 5 $280.50 650,000
Summary of Stock-Based Compensation Expense	Stock-based compensation was included in the Condensed Consolidated Statements of Operations as follows: Three Months Ended September 30, Nine Months Ended September 30, 2021 2020 2021 2020 Cost of revenue $ 196 $ 302 $ 797 $ 394 Research and development 6,099 2,950 13,794 5,983 Sales and marketing 2,582 470 5,621 1,149 General and administrative 9,678 9,004 17,168 17,339 Total $ 18,555 $ 12,726 $ 37,380 $ 24,865

Net Loss per Share Attributab_2

Net Loss per Share Attributable to Common Stockholders (Tables)	9 Months Ended
	Sep. 30, 2021
Earnings Per Share [Abstract]
Schedule of Calculation of Basic and Diluted Net Loss Per Share	The following table presents the calculation of basic and diluted net loss per share: Three Months Ended September 30, Nine Months Ended September 30, 2021 2020 2021 2020 Numerator: Net loss attributable to common stockholders $ (1,852) $ (10,214) $ (7,378) $ (29,717) Denominator: Weighted average shares, in thousands, used to compute net loss per share, basic and diluted 107,955 42,215 88,265 41,197 Net loss per share attributable to common stockholders, basic and diluted $ (0.02) $ (0.24) $ (0.08) $ (0.72)
Schedule of Anti-Dilutive Securities Excluded from Computation of Net Loss Per Share	Potentially dilutive securities that were not included in the diluted per share calculations because they would be anti-dilutive were as follows: September 30, 2021 2020 Series Seed — 12,517,832 Series A-1 — 17,995,460 Series B — 10,237,032 Series C — 4,721,905 Warrants — 308,632 Stock Options 13,451,177 16,027,256 RSUs 3,104,367 320,000 PRSUs 578,949 — MRSU 3,000,000 — ESPP 253,768 — Total 20,388,261 62,128,117

Nature of the Business and Or_2

Nature of the Business and Organization (Details) - USD ($) $ / shares in Units, $ in Thousands	Mar. 26, 2021	Sep. 30, 2021
Common Stock
Subsidiary, Sale of Stock [Line Items]
Conversion of convertible preferred stock in common stock (in shares)	45,472,229
IPO
Subsidiary, Sale of Stock [Line Items]
Sale of stock, shares issued in transaction (in shares)	16,500,000
Sale of stock, price per share (in dollars per share)	$ 47
Net proceeds after transaction	$ 723,125
Deferred offering costs reclassified into stockholders' equity	$ 1,403
IPO | Common Stock
Subsidiary, Sale of Stock [Line Items]
Conversion of convertible preferred stock in common stock (in shares)		45,472,229

Summary of Significant Accoun_4

Summary of Significant Accounting Policies - Reconciliation of Cash, Cash Equivalents and Restricted Cash (Details) - USD ($) $ in Thousands	Sep. 30, 2021	Dec. 31, 2020	Sep. 30, 2020	Dec. 31, 2019
Accounting Policies [Abstract]
Cash and cash equivalents	$ 589,750	$ 100,311	$ 121,236
Restricted cash	2,226		2,415
Total cash, cash equivalents and restricted cash	$ 591,976	$ 102,537	$ 123,651	$ 35,886

Summary of Significant Accoun_5

Summary of Significant Accounting Policies - Disclosure of Changes in Allowance for Doubtful Accounts (Details) - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2021	Sep. 30, 2020
Accounts Receivable, Allowance for Credit Loss [Roll Forward]
Balance as of December 31, 2020	$ 3,104
Bad debt expense, net of recoveries	6,055	$ 9,386
Write-offs	(5,557)
Balance as of September 30, 2021	$ 3,602

Summary of Significant Accoun_6

Summary of Significant Accounting Policies - Narrative (Details) $ in Thousands	Sep. 30, 2021USD ($)	Dec. 31, 2020USD ($)	Sep. 30, 2021USD ($)	Sep. 30, 2021USD ($)	Sep. 30, 2020USD ($)	Sep. 30, 2021USD ($)segment	Sep. 30, 2020USD ($)
Accounting Policies [Abstract]
Deferred revenue	$ 5,136	$ 4,873	$ 5,136	$ 5,136		$ 5,136
Revenue recognized during period				259	$ 383	$ 2,618	$ 2,338
Number of operating segments | segment						1
Number of reportable segments | segment						1
Concentration Risk [Line Items]
Revenue recognized during period				$ 259	$ 383	$ 2,618	$ 2,338
Geographic Concentration Risk | Revenue from Contract with Customer
Concentration Risk [Line Items]
Concentration risk, percentage				100.00%	100.00%	100.00%	100.00%
U.S. | Geographic Concentration Risk | Revenue from Contract with Customer
Concentration Risk [Line Items]
Concentration risk, percentage				31.00%	31.00%	31.00%	31.00%
U.S. | Geographic Concentration Risk | Property and Equipment
Concentration Risk [Line Items]
Concentration risk, percentage	48.00%	48.00%
Minimum
Concentration Risk [Line Items]
Interest rate			0.06%
Maximum
Concentration Risk [Line Items]
Interest rate			0.10%
Commercial Paper
Concentration Risk [Line Items]
Commercial Paper	$ 80,000		$ 80,000	$ 80,000		$ 80,000
Certificates of Deposit
Concentration Risk [Line Items]
Payments to acquire cash equivalents			$ 30,000

Summary of Significant Accoun_7

Summary of Significant Accounting Policies - Revenue by Geographic Areas (Details) - Geographic Concentration Risk - Revenue from Contract with Customer	3 Months Ended		9 Months Ended
	Sep. 30, 2021	Sep. 30, 2020	Sep. 30, 2021	Sep. 30, 2020
Revenues from External Customers and Long-Lived Assets [Line Items]
Concentration risk, percentage	100.00%	100.00%	100.00%	100.00%
North America
Revenues from External Customers and Long-Lived Assets [Line Items]
Concentration risk, percentage	38.00%	39.00%	38.00%	38.00%
Europe
Revenues from External Customers and Long-Lived Assets [Line Items]
Concentration risk, percentage	28.00%	28.00%	29.00%	28.00%
Asia
Revenues from External Customers and Long-Lived Assets [Line Items]
Concentration risk, percentage	24.00%	23.00%	23.00%	24.00%
Other
Revenues from External Customers and Long-Lived Assets [Line Items]
Concentration risk, percentage	10.00%	10.00%	10.00%	10.00%

Business Acquisitions (Details)

Business Acquisitions (Details) - USD ($) $ in Thousands	3 Months Ended
	Sep. 30, 2021	Sep. 01, 2021	Dec. 31, 2020
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Goodwill	$ 32,170		$ 2,674
Nimbella Corp
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Business Acquisition, Percentage of Voting Interests Acquired		100.00%
Business Combination, Consideration Transferred	$ 5,000
Business Acquisition, Equity Interest Issued or Issuable, Number of Shares	636,994
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Intangible Assets, Other than Goodwill		$ 3,300
Goodwill		$ 29,496
Restricted Stock | Acquisition of Nimbella
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Restricted stock issued during the period, in connection with Nimbella acquisition	200,204

Balance Sheet Details - Schedul

Balance Sheet Details - Schedule of Property, Plant and Equipment (Details) - USD ($) $ in Thousands	Sep. 30, 2021	Dec. 31, 2020
Property, Plant and Equipment [Line Items]
Property and equipment, gross	$ 566,536	$ 512,749
Less: accumulated amortization	(46,151)	(36,186)
Less: accumulated depreciation	(279,302)	(237,607)
Property and equipment, net	241,083	238,956
Computers and equipment
Property, Plant and Equipment [Line Items]
Property and equipment, gross	492,173	442,778
Furniture and fixtures
Property, Plant and Equipment [Line Items]
Property and equipment, gross	1,511	1,511
Leasehold improvements
Property, Plant and Equipment [Line Items]
Property and equipment, gross	6,820	6,820
Internal-use software
Property, Plant and Equipment [Line Items]
Property and equipment, gross	$ 66,032	$ 61,640

Balance Sheet Details - Narrati

Balance Sheet Details - Narrative (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2021	Sep. 30, 2020	Sep. 30, 2021	Sep. 30, 2020
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Depreciation	$ 18,969	$ 16,020	$ 54,359	$ 45,368
Capitalized computer software			4,884	10,594
Amortization expense related to internal-use software	3,245	3,385	10,245	9,608
Impairment loss	$ 212	$ 536	$ 212	$ 1,222

Balance Sheet Details - Summary

Balance Sheet Details - Summary of Prepaid Expenses and Other Current Assets (Details) - USD ($) $ in Thousands	Sep. 30, 2021	Dec. 31, 2020
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Prepaid expenses	$ 9,751	$ 6,968
VAT receivable	6,123	9,295
Other current expenses	654	3,281
Total prepaid expenses and other current assets	$ 16,528	$ 19,544

Balance Sheet Details - Summa_2

Balance Sheet Details - Summary of Other Current Liabilities (Details) - USD ($) $ in Thousands	Sep. 30, 2021	Dec. 31, 2020
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Accrued taxes	$ 6,577	$ 7,758
Warrant liability	0	14,463
ESPP withholding	4,025	0
Other	738	765
Total other current liabilities	$ 11,340	$ 22,986

Debt - Schedule of Debt (Detail

Debt - Schedule of Debt (Details) - USD ($) $ in Thousands	Sep. 30, 2021	Dec. 31, 2020
Debt Instrument [Line Items]
Total debt	$ 0	$ 259,683
Less: current portion	0	(17,468)
Long-term debt	0	242,215
Term Loan
Debt Instrument [Line Items]
Total debt	0	165,051
Unamortized discount and debt issuance costs		1,761
Credit Facility | Revolving Credit Facility
Debt Instrument [Line Items]
Total debt	0	63,200
Less: current portion	0	(7,438)
Notes payable
Debt Instrument [Line Items]
Total debt	0	31,432
Less: current portion	$ 0	$ (10,030)

Debt - Narrative (Details)

Debt - Narrative (Details) - USD ($) $ in Thousands	3 Months Ended			9 Months Ended
	Sep. 30, 2021	Mar. 31, 2021	Sep. 30, 2020	Sep. 30, 2021	Sep. 30, 2020
Debt Instrument [Line Items]
Loss on extinguishment of debt	$ 0		$ 0	$ 3,435	$ 259
Interest and amortization of deferred financing fees	186		3,190	2,675	10,485
Credit Facility
Debt Instrument [Line Items]
Available borrowing capacity	150,000			150,000
Commitment fees on unused balance	96		82	266	237
Interest and amortization of deferred financing fees	90		2,511	2,153	7,922
Notes payable
Debt Instrument [Line Items]
Loss on extinguishment of debt				1,783
Interest expense	$ 0		$ 594	$ 254	$ 1,760
Term Loan
Debt Instrument [Line Items]
Loss on extinguishment of debt		$ 1,652

Operating Leases - Narrative (D

Operating Leases - Narrative (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2021	Sep. 30, 2020	Sep. 30, 2021	Sep. 30, 2020
Leases [Abstract]
Operating leases, rent expense	$ 1,010	$ 1,090	$ 3,032	$ 3,329

Operating Leases - Maturities o

Operating Leases - Maturities of Operating Leases (Details) $ in Thousands	Sep. 30, 2021USD ($)
Leases [Abstract]
2021 (three months remaining)	$ 11,138
2022	30,954
2023	24,017
2024	22,316
2025	3,933
Thereafter	0
Total minimum operating lease payments	$ 92,358

Commitment and Contingencies (D

Commitment and Contingencies (Details) - USD ($) $ in Thousands	Sep. 30, 2021	Dec. 31, 2020
Commitments and Contingencies Disclosure [Abstract]
Letters of credit outstanding, amount	$ 2,226	$ 2,226

Stockholders_ Equity (Deficit_2

Stockholders’ Equity (Deficit) - Common Stock (Details)	9 Months Ended
	Sep. 30, 2021vote$ / sharesshares	Dec. 31, 2020$ / sharesshares
Equity [Abstract]
Common Stock, Voting Rights | vote	1
Common stock, shares authorized (in shares) | shares	750,000,000	111,400,000
Common stock, shares authorized, par value (in USD per share) | $ / shares	$ 0.000025	$ 0.000025

Stockholders_ Equity (Deficit_3

Stockholders’ Equity (Deficit) - Common Stock Reserved for Future Issuance (Details) - shares	Sep. 30, 2021	Dec. 31, 2020
Class of Stock [Line Items]
Shares of common stock reserved for future issuance (in shares)	33,130,000	80,602,519
2021 Equity Incentive Plan
Class of Stock [Line Items]
Shares of common stock reserved for future issuance (in shares)	30,930,000	34,821,642
Employee Stock Purchase Plan
Class of Stock [Line Items]
Shares of common stock reserved for future issuance (in shares)	2,200,000	0
Series Seed preferred stock
Class of Stock [Line Items]
Shares of common stock reserved for future issuance (in shares)	0	12,517,832
Series A-1 preferred stock
Class of Stock [Line Items]
Shares of common stock reserved for future issuance (in shares)	0	18,304,108
Series B preferred stock
Class of Stock [Line Items]
Shares of common stock reserved for future issuance (in shares)	0	10,237,032
Series C preferred stock
Class of Stock [Line Items]
Shares of common stock reserved for future issuance (in shares)	0	4,721,905
Redeemable convertible preferred stock warrants
Class of Stock [Line Items]
Shares of common stock reserved for future issuance (in shares)		308,632

Stockholders_ Equity (Deficit_4

Stockholders’ Equity (Deficit) - Preferred Stock (Details) - $ / shares	Sep. 30, 2021	Dec. 31, 2020
Equity [Abstract]
Preferred stock, shares authorized (in shares)	10,000,000	0
Preferred stock, par value (in dollars per share)	$ 0.000025	$ 0.000025
Preferred stock, shares issued (in shares)	0	0
Preferred stock, shares outstanding (in shares)	0	0

Stockholders_ Equity (Deficit_5

Stockholders’ Equity (Deficit) - Redeemable Convertible Preferred Stock (Details) - USD ($) $ in Thousands	Mar. 26, 2021	Sep. 30, 2021	Jun. 30, 2021	Dec. 31, 2020	Sep. 30, 2020	Jun. 30, 2020	Dec. 31, 2019
Class of Stock [Line Items]
Conversion of convertible preferred stock to common stock in connection with initial public offering (in shares)	45,472,229	(45,472,229)
Conversion of convertible preferred stock		$ (173,074)
Redeemable convertible preferred stock, issued (in shares)		0
Redeemable convertible preferred stock, outstanding (in shares)		0	0	45,472,229	45,472,229	45,472,229	40,750,324
Redeemable preferred stock, shares authorized (in shares)		0
Common Stock
Class of Stock [Line Items]
Conversion of convertible preferred stock	$ 173,074

Stockholders_ Equity (Deficit_6

Stockholders’ Equity (Deficit) - Common Stock Warrants (Details) - USD ($) $ / shares in Units, $ in Thousands	1 Months Ended		3 Months Ended	9 Months Ended
	Jul. 31, 2021	Apr. 30, 2021	Jun. 30, 2021	Sep. 30, 2021	Sep. 30, 2020	Mar. 26, 2021	Dec. 31, 2020	Dec. 31, 2015	Dec. 31, 2014
Class of Stock [Line Items]
Number of shares called by warrants (in shares)								66,668	241,964
Exercise price of shares called by warrants (in dollars per share)								$ 1.50	$ 2.0663
Warrants, term				10 years
Shares of common stock reserved for future issuance (in shares)				33,130,000			80,602,519
Gain on remeasurement of warrants			$ 556	$ 556	$ (452)
Warrants outstanding	0
IPO
Class of Stock [Line Items]
Sale of stock, price per share (in dollars per share)						$ 47
Common Stock | Warrants Exercised
Class of Stock [Line Items]
Conversion of stock, shares issued (in shares)	232,520	64,328

Stockholders_ Equity (Deficit_7

Stockholders’ Equity (Deficit) - Treasury Stock (Details) - USD ($) $ in Thousands	Sep. 30, 2021	Dec. 31, 2020
Equity [Abstract]
Treasury stock, shares (in shares)	1,968,228	1,968,228
Treasury stock, value	$ (4,598)	$ (4,598)

Stock-Based Compensation - Equi

Stock-Based Compensation - Equity Incentive Plan (Details)	Sep. 30, 2021shares
2021 Stock Plan
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Aggregate number of shares of common stock awarded (in shares)	30,930,000

Stock-Based Compensation - Stoc

Stock-Based Compensation - Stock Options (Details) - USD ($) $ / shares in Units, $ in Thousands	Mar. 31, 2021	Sep. 30, 2021	Sep. 30, 2020
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock options, exercised in period, intrinsic value		$ 98,724	$ 10,970
Stock options, granted in period, weighted average grant date fair value (in dollars per share)			$ 3.28
Options, granted, number (in shares)		0
Stock options, granted in period, aggregate estimated fair value		$ 15,402	$ 7,161
Stock options, unrecognized stock-based compensation expense		$ 30,659
Stock Options
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock options, expiration period		10 years
Stock options, vesting period		4 years
Unrecognized stock-based compensation expense, average recognition period	2 years 7 months 28 days

Stock-Based Compensation - Sche

Stock-Based Compensation - Schedule of Stock Option Activity (Details) - USD ($) $ / shares in Units, $ in Thousands	9 Months Ended	12 Months Ended
	Sep. 30, 2021	Dec. 31, 2020
Number of Options Outstanding
Options, outstanding, number at beginning of period (in shares)	16,933,494
Options, exercised, number (in shares)	(2,712,070)
Options, forfeited or cancelled, number (in shares)	(770,247)
Options, outstanding, number at end of period (in shares)	13,451,177	16,933,494
Options, vested and exercisable, number (in shares)	6,276,930
Options, vested and unvested expected to vest, number (in shares)	11,285,444
Weighted-Average Exercise Price
Options, outstanding, weighted average exercise price at beginning of period (in dollars per share)	$ 6.73
Options, exercised, weighted average exercise price (in dollars per share)	4.48
Options, forfeited or cancelled, weighted average exercise price (in dollars per share)	7.90
Options, outstanding, weighted average exercise price at end of period (in dollars per share)	7.12	$ 6.73
Options, vested and exercisable, weighted average exercise price (in dollars per share)	5.51
Options, vested and unvested expected to vest, weighted average exercise price (in dollars per share)	$ 6.71
Weighted-Average Remaining Life in Years
Options, outstanding, weighted average remaining life (in years)	7 years 10 months 6 days	8 years 5 months 8 days
Options, vested and exercisable, weighted average remaining life (in years)	7 years 4 months 9 days
Options, vested and unvested expected to vest, weighted average remaining life (in years)	7 years 8 months 26 days
Aggregate Intrinsic Value
Options, outstanding, intrinsic value	$ 948,468	$ 596,767
Options, vested and exercisable, intrinsic value	452,710
Stock options, granted in period, aggregate estimated fair value	$ 800,370

Stock-Based Compensation - RSUs

Stock-Based Compensation - RSUs (Details) - RSUs $ in Thousands	9 Months Ended
	Sep. 30, 2021USD ($)
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
RSUs, vesting period	4 years
Unrecognized stock-based compensation expense	$ 67,283
Unrecognized stock-based compensation expense, average recognition period	3 years 4 months 9 days

Stock-Based Compensation - Sc_2

Stock-Based Compensation - Schedule of RSU & PRSU Activity (Details) - $ / shares	9 Months Ended
	Sep. 30, 2021
RSUs
Shares
Unvested balance at beginning of period (in shares)	413,750
Granted (in shares)	2,952,505
Vested (in shares)	(117,480)
Forfeited or cancelled (in shares)	(144,408)
Unvested balance at end of period (in shares)	3,104,367
Vested and expected to vest (in shares)	1,862,476
Weighted-Average Fair Value
Unvested, weighted average grant date fair value at beginning of period (in dollars per share)	$ 13.69
Granted, weighted average grant date fair value (in dollars per share)	44.72
Vested (in dollars per share)	18.37
Forfeited or cancelled, weighted average grant date fair value (in dollars per share)	42.31
Unvested, weighted average grant date fair value at end of period (in dollars per share)	41.70
Vested and expected to vest, weighted average grant date fair value (in dollars per share)	$ 42.30
PRSUs
Shares
Unvested balance at beginning of period (in shares)	0
Granted (in shares)	578,949
Unvested balance at end of period (in shares)	578,949
Weighted-Average Fair Value
Unvested, weighted average grant date fair value at beginning of period (in dollars per share)	$ 0
Granted, weighted average grant date fair value (in dollars per share)	48.04
Unvested, weighted average grant date fair value at end of period (in dollars per share)	$ 48.04

Stock-Based Compensation - PRSU

Stock-Based Compensation - PRSUs (Details) - PRSUs $ in Thousands	Jun. 10, 2021segment	Sep. 30, 2021USD ($)
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Unrecognized stock-based compensation expense | $		$ 12,414
Unrecognized stock-based compensation expense, average recognition period		1 year 1 month 6 days
Number of quarterly installments	8
1
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting percentage	33.33%
Maximum
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of trading days	2

Stock-Based Compensation - Shar

Stock-Based Compensation - Share-Based Payment Arrangements and Price Targets (Details) - MRSUs	Jul. 27, 2021$ / sharesshares
1
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Shares of common stock reserved for future issuance, number available for grant (in shares)	475,000
2
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Company Stock Price Target (in dollars per share) | $ / shares	$ 140
Shares of common stock reserved for future issuance, number available for grant (in shares)	575,000
3
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Company Stock Price Target (in dollars per share) | $ / shares	$ 187
Shares of common stock reserved for future issuance, number available for grant (in shares)	650,000
4
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Company Stock Price Target (in dollars per share) | $ / shares	$ 233.50
Shares of common stock reserved for future issuance, number available for grant (in shares)	650,000
5
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Company Stock Price Target (in dollars per share) | $ / shares	$ 280.50
Shares of common stock reserved for future issuance, number available for grant (in shares)	650,000

Stock-Based Compensation - MRSU

Stock-Based Compensation - MRSUs (Details) - MRSUs $ / shares in Units, $ in Thousands	Jul. 27, 2021USD ($)tranche$ / sharesshares	Sep. 30, 2021USD ($)
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Shares of common stock reserved for future issuance, number available for grant (in shares) | shares	3,000,000
Grant date fair value	$ 75,300
Number of tranches | tranche	5
Unrecognized stock-based compensation expense		$ 72,215
Weighted-average period expected for recognition of compensation expense		4 years 7 months 9 days
1
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Company Stock Price Target (in dollars per share) | $ / shares	$ 93.50
Vesting percentage	14.00%
2
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting percentage	14.00%
3
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting percentage	14.00%
4
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting percentage	14.00%
5
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting percentage	14.00%
6
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting percentage	15.00%
7
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting percentage	15.00%

Stock-Based Compensation - Empl

Stock-Based Compensation - Employee Stock Purchase Plan (Details) - USD ($) $ / shares in Units, $ in Thousands	Nov. 19, 2021	Sep. 30, 2021	Sep. 30, 2020	Sep. 30, 2021	Sep. 30, 2020	Jun. 30, 2021	Mar. 26, 2021
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock-based compensation expense		$ 18,555	$ 12,726	$ 37,380	$ 24,865
IPO
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Sale of stock, price per share (in dollars per share)							$ 47
Issuance of common stock under equity incentive plan, net of taxes withheld				$ 4,025
2021 Employee Stock Purchase Plan | Employee Stock Purchase Plan
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Shares of common stock authorized for future issuance (in shares)						2,200,000
Shares of common stock reserved for future issuance, number available for grant (in shares)		2,200,000		2,200,000
Stock-based compensation expense		$ 186		$ 2,108
Purchases related to ESPP (in shares)				0
2021 Employee Stock Purchase Plan | Employee Stock Purchase Plan | Subsequent Event
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Purchase price of common stock, percent	85.00%
Acquisition of Nimbella | Restricted Stock
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Granted (in shares)		200,204
Restricted stock share price (in dollars per share)		$ 63.11		$ 63.11
Value of restricted stock granted to founders of Nimbella		$ 12,635
Stock options, vesting period		36 months
Unrecognized stock-based compensation expense		$ 12,289		$ 12,289
Weighted-average period expected for recognition of compensation expense				2 years 11 months 15 days

Stock-Based Compensation - Summ

Stock-Based Compensation - Summary of Stock-Based Compensation Expense (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2021	Sep. 30, 2020	Sep. 30, 2021	Sep. 30, 2020
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]
Stock-based compensation expense	$ 18,555	$ 12,726	$ 37,380	$ 24,865
Cost of revenue
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]
Stock-based compensation expense	196	302	797	394
Research and development
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]
Stock-based compensation expense	6,099	2,950	13,794	5,983
Sales and marketing
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]
Stock-based compensation expense	2,582	470	5,621	1,149
General and administrative
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]
Stock-based compensation expense	$ 9,678	$ 9,004	$ 17,168	$ 17,339

Stock-Based Compensation - St_2

Stock-Based Compensation - Stock-Based Compensation (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2021	Sep. 30, 2020	Sep. 30, 2021	Sep. 30, 2020
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]
Stock-based compensation expense	$ 18,555	$ 12,726	$ 37,380	$ 24,865
Current and former employees
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]
Stock-based compensation expense	$ 0	$ 10,203	$ 0	$ 18,343

Net Loss per Share Attributab_3

Net Loss per Share Attributable to Common Stockholder - Schedule of Net Loss Per Share (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2021	Sep. 30, 2020	Sep. 30, 2021	Sep. 30, 2020
Numerator:
Net loss attributable to common stockholders, basic	$ (1,852)	$ (10,214)	$ (7,378)	$ (29,717)
Net loss attributable to common stockholders, diluted	$ (1,852)	$ (10,214)	$ (7,378)	$ (29,717)
Denominator:
Weighted average shares used to compute net loss per share, basic (in shares)	107,955,000	42,215,000	88,265,000	41,197,000
Weighted average shares used to compute net loss per share, diluted (in shares)	107,955,000	42,215,000	88,265,000	41,197,000
Net loss per share attributable to common stockholders, basic (in dollars per share)	$ (0.02)	$ (0.24)	$ (0.08)	$ (0.72)
Net loss per share attributable to common stockholders, diluted (in dollars per share)	$ (0.02)	$ (0.24)	$ (0.08)	$ (0.72)

Net Loss per Share Attributab_4

Net Loss per Share Attributable to Common Stockholder - Schedule of Antidilutive Securities Excluded from Computation of Net Loss Per Share (Details) - shares	3 Months Ended
	Sep. 30, 2021	Sep. 30, 2020
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive securities excluded from computation of loss per share, amount (in shares)	20,388,261	62,128,117
Series Seed
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive securities excluded from computation of loss per share, amount (in shares)	0	12,517,832
Series A-1
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive securities excluded from computation of loss per share, amount (in shares)	0	17,995,460
Series B
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive securities excluded from computation of loss per share, amount (in shares)	0	10,237,032
Series C
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive securities excluded from computation of loss per share, amount (in shares)	0	4,721,905
Warrants
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive securities excluded from computation of loss per share, amount (in shares)	0	308,632
Stock Options
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive securities excluded from computation of loss per share, amount (in shares)	13,451,177	16,027,256
RSUs
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive securities excluded from computation of loss per share, amount (in shares)	3,104,367	320,000
PRSUs
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive securities excluded from computation of loss per share, amount (in shares)	578,949	0
MRSU
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive securities excluded from computation of loss per share, amount (in shares)	3,000,000	0
ESPP
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive securities excluded from computation of loss per share, amount (in shares)	253,768	0

Income Taxes (Details)

Income Taxes (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2021	Sep. 30, 2020	Sep. 30, 2021	Sep. 30, 2020
Income Tax Disclosure [Abstract]
Income tax (benefit) expense	$ (145)	$ (134)	$ 378	$ 865
Effective income tax rate	7.30%	1.30%	(5.40%)	(3.00%)
Uncertain tax positions expense	$ 206	$ 10	$ 340	$ 397

Related Party Disclosures (Deta

Related Party Disclosures (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2021	Sep. 30, 2020	Sep. 30, 2021	Sep. 30, 2020
Related Party Transaction [Line Items]
Stock-based compensation expense	$ 18,555	$ 12,726	$ 37,380	$ 24,865
Current and former employees
Related Party Transaction [Line Items]
Stock-based compensation expense	$ 0	$ 10,203	$ 0	$ 18,343