DigitalOcean (DOCN) 10-Q 10 May 24 2024 Q1 Quarterly report Financial data

Cover Page

Cover Page - shares	3 Months Ended
	Mar. 31, 2024	May 03, 2024
Cover [Abstract]
Document Type	10-Q
Document Quarterly Report	true
Document Period End Date	Mar. 31, 2024
Document Transition Report	false
Entity File Number	001-40252
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	Large Accelerated Filer
Entity Small Business	false
Entity Emerging Growth Company	false
Entity Shell Company	false
Entity Common Stock, Shares Outstanding (in shares)		91,091,324
Entity Central Index Key	0001582961
Amendment Flag	false
Document Fiscal Year Focus	2024
Document Fiscal Period Focus	Q1
Current Fiscal Year End Date	--12-31

Condensed Consolidated Balance

Condensed Consolidated Balance Sheets - USD ($) $ in Thousands	Mar. 31, 2024	Dec. 31, 2023
Current assets:
Cash and cash equivalents	$ 419,063	$ 317,236
Marketable securities	0	94,532
Accounts receivable, less allowance for credit losses of $5,811 and $5,848, respectively	63,866	62,186
Prepaid expenses and other current assets	32,884	29,040
Total current assets	515,813	502,994
Noncurrent assets:
Property and equipment, net	322,052	305,444
Restricted cash	1,747	1,747
Goodwill	348,322	348,322
Intangible assets, net	134,416	140,151
Operating lease right-of-use assets, net	156,002	155,201
Deferred tax assets	1,945	1,994
Other assets	5,276	5,114
Total assets	1,485,573	1,460,967
Current liabilities:
Accounts payable	4,536	3,957
Accrued other expenses	24,398	31,046
Deferred revenue	5,477	5,340
Operating lease liabilities, current	81,218	81,320
Other current liabilities	73,322	70,982
Total current liabilities	188,951	192,645
Noncurrent liabilities:
Deferred tax liabilities	3,517	3,533
Long-term debt	1,479,687	1,477,798
Operating lease liabilities, non-current	95,174	91,161
Other long-term liabilities	4,316	9,528
Total liabilities	1,771,645	1,774,665
Commitments and Contingencies (Note 8)
Preferred stock ($0.000025 par value per share; 10,000,000 shares authorized; 0 shares issued and outstanding as of March 31, 2024 and December 31, 2023)	0	0
Common stock ($0.000025 par value per share; 750,000,000 shares authorized; 91,264,101 and 90,243,442 issued and outstanding as of March 31, 2024 and December 31, 2023, respectively)	2	2
Additional paid-in capital	44,615	30,989
Accumulated other comprehensive loss	(591)	(452)
Accumulated deficit	(330,098)	(344,237)
Total stockholders’ deficit	(286,072)	(313,698)
Total liabilities and stockholders’ deficit	$ 1,485,573	$ 1,460,967

Condensed Consolidated Balanc_2

Condensed Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands	Mar. 31, 2024	Dec. 31, 2023
Statement of Financial Position [Abstract]
Accounts receivable, allowance for credit losses	$ 5,811	$ 5,848
Preferred stock, par value (in dollars per share)	$ 0.000025	$ 0.000025
Preferred stock, shares authorized (in shares)	10,000,000	10,000,000
Preferred stock, shares issued (in shares)	0	0
Preferred stock, shares outstanding (in shares)	0	0
Common stock, par value (in dollars per share)	$ 0.000025	$ 0.000025
Common stock, shares authorized (in shares)	750,000,000	750,000,000
Common stock, shares issued (in shares)	91,264,101	90,243,442
Common stock, shares outstanding (in shares)	91,264,101	90,243,442

Condensed Consolidated Statemen

Condensed Consolidated Statements of Operations - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023
Income Statement [Abstract]
Revenue	$ 184,730	$ 165,134
Cost of revenue	72,644	71,879
Gross profit	112,086	93,255
Operating expenses:
Research and development	33,971	38,272
Sales and marketing	20,804	18,231
General and administrative	45,773	48,939
Restructuring and other charges	0	20,869
Total operating expenses	100,548	126,311
Income (loss) from operations	11,538	(33,056)
Other income (expense):
Interest expense	(2,304)	(2,189)
Interest income and other income, net	5,021	7,394
Other income, net	2,717	5,205
Income (loss) before income taxes	14,255	(27,851)
Income tax (expense) benefit	(116)	11,481
Net income (loss) attributable to common stockholders	$ 14,139	$ (16,370)
Net income (loss) per share attributable to common stockholders
Basic (in dollars per share)	$ 0.16	$ (0.17)
Diluted (in dollars per share)	$ 0.15	$ (0.17)
Weighted-average shares used to compute net income (loss) per share attributable to common stockholders
Basic (in shares)	90,794,000	95,565,000
Diluted (in shares)	93,787,000	95,565,000

Condensed Consolidated Statem_2

Condensed Consolidated Statements of Comprehensive Income (Loss) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023
Statement of Other Comprehensive Income [Abstract]
Net income (loss) attributable to common stockholders	$ 14,139	$ (16,370)
Other comprehensive income (loss):
Foreign currency translation adjustments, net of taxes	(151)	126
Unrealized gain on marketable securities, net of taxes	12	1,243
Other comprehensive income (loss)	(139)	1,369
Comprehensive income (loss)	$ 14,000	$ (15,001)

Condensed Consolidated Statem_3

Condensed Consolidated Statements of Stockholders' Deficit - USD ($) $ in Thousands	Total	Common Stock	Additional Paid-In Capital	Accumulated Other Compreh-ensive Loss	Accumulated Deficit
Beginning Balance (in shares) at Dec. 31, 2022		96,732,507
Beginning Balance at Dec. 31, 2022	$ 47,569	$ 2	$ 263,957	$ (2,048)	$ (214,342)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Issuance of common stock under equity incentive plan, net of taxes withheld (in shares)		1,011,034
Issuance of common stock under equity incentive plan, net of taxes withheld	1,461		1,461
Repurchase and retirement of common stock (in shares)		(7,759,973)
Repurchase and retirement of common stock			(265,901)
Excise taxes related to repurchase of common stock			(2,659)
Stock-based compensation			31,923
Other comprehensive income (loss)	1,369		1,369	1,369
Net income (loss) attributable to common stockholders	(16,370)				(16,370)
Ending Balance (in shares) at Mar. 31, 2023		89,983,568
Ending Balance at Mar. 31, 2023	$ (202,608)	$ 2	28,781	(679)	(230,712)
Beginning Balance (in shares) at Dec. 31, 2023	90,243,442	90,243,442
Beginning Balance at Dec. 31, 2023	$ (313,698)	$ 2	30,989	(452)	(344,237)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Issuance of common stock under equity incentive plan, net of taxes withheld (in shares)	823,221	1,220,917
Issuance of common stock under equity incentive plan, net of taxes withheld	$ (1,888)		(1,888)
Repurchase and retirement of common stock (in shares)		(200,258)
Repurchase and retirement of common stock			(7,795)
Excise taxes related to repurchase of common stock			(78)
Stock-based compensation			23,387
Other comprehensive income (loss)	(139)		(139)	(139)
Net income (loss) attributable to common stockholders	$ 14,139				14,139
Ending Balance (in shares) at Mar. 31, 2024	91,264,101	91,264,101
Ending Balance at Mar. 31, 2024	$ (286,072)	$ 2	$ 44,615	$ (591)	$ (330,098)

Condensed Consolidated Statem_4

Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023
Operating activities
Net income (loss) attributable to common stockholders	$ 14,139	$ (16,370)
Adjustments to reconcile net income (loss) to net cash provided by operating activities:
Depreciation and amortization	31,887	28,913
Stock-based compensation	22,877	31,531
Provision for expected credit losses	4,175	3,987
Operating lease right-of-use assets and liabilities, net	3,300	9,523
Net accretion of discounts and amortization of premiums on investments	2,569	(3,436)
Non-cash interest expense	1,993	1,983
Loss on impairment of long-lived assets	0	553
Deferred income taxes	0	1,589
Other	(53)	590
Changes in operating assets and liabilities:
Accounts receivable	(5,855)	(5,125)
Prepaid expenses and other current assets	(2,744)	(2,568)
Accounts payable and accrued expenses	(3,260)	(11,031)
Deferred revenue	137	(535)
Other assets and liabilities	(2,472)	(3,389)
Net cash provided by operating activities	66,693	36,215
Investing activities
Capital expenditures - property and equipment	(43,665)	(23,314)
Capital expenditures - internal-use software development	(1,563)	(1,794)
Cash paid for asset acquisitions	0	(2,500)
Purchase of marketable securities	0	(195,910)
Maturities of marketable securities	91,675	331,581
Purchased interest on marketable securities	0	(113)
Proceeds from sale of equipment	0	6
Net cash provided by investing activities	46,447	107,956
Financing activities
Proceeds related to the issuance of common stock under equity incentive plan	5,674	5,535
Principal repayments of finance leases	(1,359)	0
Employee payroll taxes paid related to net settlement of equity awards	(6,792)	(3,864)
Repurchase and retirement of common stock	(8,770)	(265,901)
Net cash used in financing activities	(11,247)	(264,230)
Effect of exchange rate changes on cash, cash equivalents, and restricted cash	(66)	(29)
Increase (decrease) in cash, cash equivalents and restricted cash	101,827	(120,088)
Cash, cash equivalents and restricted cash - beginning of period	318,983	151,807
Cash, cash equivalents and restricted cash - end of period	420,810	31,719
Supplemental disclosures of cash flow information:
Cash paid for interest	172	126
Cash paid for taxes, net of refunds	997	393
Operating cash flows paid for operating leases	18,095	16,579
Non-cash investing and financing activities:
Capitalized stock-based compensation	510	392
Property and equipment received but not yet paid, included in Accounts payable and Accrued other expenses	2,500	20,437
Operating right-of-use assets obtained in exchange for operating lease liabilities	$ 24,797	$ 48,597

Nature of the Business and Orga

Nature of the Business and Organization	3 Months Ended
	Mar. 31, 2024
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, platform and software tools for startups and growing technology 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 solutions across Infrastructure-as-a-Service (“IaaS”), including Droplet virtual machines, storage and networking offerings; Platform-as-a-Service (“PaaS”), including Managed Database and Managed Kubernetes offerings; Software-as-a-Service (“SaaS”), including Managed Hosting and Marketplace offerings; and artificial intelligence and machine learning (“AI/ML”), including Machines, Notebooks and Deployments offerings.

Summary of Significant Accounti

Summary of Significant Accounting Policies	3 Months Ended
	Mar. 31, 2024
Accounting Policies [Abstract]
Summary of Significant Accounting Policies	Summary of Significant Accounting Policies Basis of Presentation and Principles of Consolidation The accompanying unaudited interim condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”) and include accounts of the Company and all wholly owned subsidiaries. All intercompany accounts and transactions have been eliminated in consolidation. In the opinion of management, the unaudited 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 March 31, 2024, results of operations for the three months ended March 31, 2024 and 2023, cash flows for the three months ended March 31, 2024 and 2023, and stockholders' deficit for the three months ended March 31, 2024 and 2023. 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 including estimation of the probability of performance vesting conditions, the incremental borrowing rate used to determine lease liabilities, valuation allowances against deferred tax assets, fair value of financial instruments, 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. Restricted Cash The following table reconciles cash, cash equivalents and restricted cash per the Condensed Consolidated Statements of Cash Flows: March 31, 2024 2023 Cash and cash equivalents $ 419,063 $ 20,872 Restricted cash included in Prepaid expenses and other current assets (1) — 9,100 Restricted cash (2) 1,747 1,747 Total cash, cash equivalents and restricted cash $ 420,810 $ 31,719 ___________________ (1) Includes contingent compensation related to the Cloudways Ltd. (“Cloudways”) acquisition, which was paid on September 1, 2023. (2) Includes deposits in financial institutions related to letters of credit used to secure lease agreements. Accounts Receivable Net of Allowance for Expected Credit Losses 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 expected credit losses 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, reasonable and supportable forecasts of future economic conditions to inform adjustments over historical loss data, 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 expected credit losses through provision for expected credit losses and reverses the accounts receivable and related allowance after the potential for recovery is considered remote. The following table presents the changes in our allowance for expected credit losses for the period presented: Amount Balance as of December 31, 2023 $ 5,848 Provision for expected credit losses 4,175 Write-offs and other (4,212) Balance as of March 31, 2024 $ 5,811 Deferred Revenue Deferred revenue was $5,477 and $5,340 as of March 31, 2024 and December 31, 2023, respectively. Revenue recognized during the three months ended March 31, 2024 and 2023 was $2,112 and $2,118, 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 (“CEO”), 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 March 31, 2024 2023 North America 37 % 38 % Europe 29 29 Asia 24 23 Other 10 10 Total 100 % 100 % Revenue derived from customers in the United States was 30% and 31% of total revenue for the three months ended March 31, 2024 and 2023, respectively. Long-lived assets include property and equipment and leases. The geographic locations of the Company’s long-lived assets, net, based on physical location of the assets is as follows: March 31, 2024 December 31, 2023 United States $ 269,188 $ 233,557 Singapore 38,639 43,425 Germany 54,881 62,224 Netherlands 42,367 46,170 Other 72,979 75,269 Total $ 478,054 $ 460,645 Concentration of Credit Risk The amounts reflected in the Condensed Consolidated Balance Sheets for cash and cash equivalents, marketable securities, 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 March 31, 2024 and December 31, 2023. Additionally, no customer accounted for 10% or more of total revenue during the three months ended March 31, 2024 and 2023. Recent Accounting Pronouncements – Pending Adoption In December 2023, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2023-09, Income Taxes (Topic 740)—Improvements to Income Tax Disclosures (“ASU 2023-09”). ASU 2023-09 requires that an entity disclose specific categories in the effective tax rate reconciliation as well as provide additional information for reconciling items that meet a quantitative threshold. Further, ASU 2023-09 requires certain disclosures of state versus federal income tax expense and taxes paid. The amendments in ASU 2023-09 are required to be adopted for fiscal years beginning after December 15, 2024. Early adoption is permitted for annual financial statements that have not yet been issued. The amendments should be applied on a prospective basis although retrospective application is permitted. The Company is currently evaluating the impact of adoption on our financial disclosures. In November 2023, the FASB issued ASU No. 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures (“ASU 2023-07”). ASU 2023-07 expands public entities’ segment disclosures by requiring disclosure of significant segment expenses that are regularly provided to the chief operating decision maker and included within each reported measure of segment profit or loss, an amount and description of its composition for other segment items, and interim disclosures of a reportable segment’s profit or loss and assets. ASU 2023-07 is effective for fiscal years beginning after December 15, 2023 and for interim periods within fiscal years beginning after December 15, 2024, with early application permitted. The Company is currently evaluating the impact of adopting ASU 2023-07 on its consolidated financial statements and disclosures.

Acquisitions, Goodwill and Inta

Acquisitions, Goodwill and Intangible Assets	3 Months Ended
	Mar. 31, 2024
Business Combination and Asset Acquisition [Abstract]
Acquisitions, Goodwill and Intangible Assets	Acquisitions, Goodwill and Intangible Assets Paperspace Co. On July 5, 2023 (the “Paperspace Acquisition Date”), the Company consummated a business combination acquiring 100% of Paperspace Co. (“Paperspace”) for total cash consideration of $100,399. Included in the consideration paid is a contribution of $11,100 to an escrow account held by a third party on the Paperspace Acquisition Date to support certain post-closing indemnification obligations. This acquisition has been accounted for as a business combination and the results of Paperspace’s operations have been included in the accompanying consolidated financial statements since the Paperspace Acquisition Date. The acquisition and integration of Paperspace’s advanced technology into the Company’s platform will extend the Company’s offerings, enabling customers to more easily test, develop and deploy artificial intelligence and machine learning (“AI/ML”) applications, and augment and enhance existing AI/ML applications. The determination and allocation of total consideration is based on estimates of fair value. Measurement period adjustments, if any, will be recognized in the reporting period in which the adjustment amounts are determined within twelve months from the Paperspace Acquisition Date. As of March 31, 2024, the purchase price allocation for Paperspace remains open as the Company gathers additional information in relation to its assessment of tax related items. The following table sets forth the allocation of the purchase price for the business combination and summarizes the fair values of the assets acquired and liabilities assumed at the Paperspace Acquisition Date: Amount Fair value of consideration transferred Cash consideration $ 100,399 Recognized amounts of identifiable assets acquired and liabilities assumed Tangible assets acquired: Cash and cash equivalents $ 1,376 Accounts receivable 1,042 Prepaid expenses and other current assets 193 Property and equipment, net 4,515 Operating right-of-use asset, net 4,398 Finance lease right-of-use asset, net 11,958 Other assets 367 Intangible assets 37,690 Liabilities assumed: Accounts payable and accrued expenses (1,445) Deferred revenue (105) Operating lease liabilities, current (1,475) Operating lease liabilities, non-current (2,923) Finance lease liabilities, current (5,707) Finance lease liabilities, non-current (6,251) Deferred tax liabilities (1,074) Total identifiable net assets acquired 42,559 Goodwill recorded in acquisition 57,840 Total purchase price allocation $ 100,399 The Company amortizes its intangible assets assuming no residual value over periods in which the economic benefit of these assets is consumed (the useful life). The fair values allocated to the identifiable intangible assets and their estimated useful lives are as follows: Estimated Fair Value Weighted Average Useful Life (years) Trademark/Trade Name $ 300 1 Developed Technology 24,120 5 Customer Relationships 13,270 5 Total intangible assets $ 37,690 Paperspace’s assets and liabilities were measured at estimated fair values on July 5, 2023. Estimates of fair value represent management’s best estimate and require a complex series of judgments about future events and uncertainties. Third-party valuation specialists were engaged to assist management in the valuation of these assets and liabilities. The goodwill is attributable primarily to the integration of Paperspace’s advanced technology into the Company’s platform which will extend the Company’s offerings, resulting in incremental revenue from new and existing customers, and to a lesser extent intangible assets that do not qualify for separate recognition, including the existing workforce acquired through the acquisition. None of the goodwill is expected to be deductible for income tax purposes. Unaudited Pro Forma Financial Information The unaudited pro forma information below summarizes the combined results of the Company and Paperspace as if the Company’s acquisition of Paperspace closed on January 1, 2022 but does not necessarily reflect the combined actual results of operations of the Company and Paperspace that would have been achieved, nor are they necessarily indicative of future results of operations. The unaudited pro forma information reflects certain adjustments that were directly attributable to the acquisition of Paperspace, including additional amortization of acquired assets and the timing of nonrecurring acquisition and integration related costs, and other adjustments the Company believes are reasonable for the pro forma presentation. If Paperspace had been acquired on January 1, 2022, it would not have had a material impact to revenue for the three months ended March 31, 2023. Pro Forma for the Three Months Ended March 31, 2023 Net loss $ 21,200 Contingent Compensation for Acquisitions Contingent compensation represents compensation for post-combination services because the payments are contingent on continuing employment of the Paperspace founders, Cloudways seller, and Snapshooter Limited founder at each payment date. Contingent compensation costs related to payments due to certain Paperspace founders for $10,120, of which $5,060 will be earned on July 5, 2024, and $1,265 will be earned quarterly thereafter through July 5, 2025. Contingent compensation costs related to payments due to a Cloudways seller for $38,830, of which $16,851 was earned and paid on September 1, 2023, $7,326 was earned and paid on March 1, 2024, and $7,326 will be earned on September 1, 2024 and March 1, 2025. Contingent compensation costs related to payments due to a SnapShooter Limited founder for $1,000 was earned and paid during the three months ended March 31, 2024.

Marketable Securities

Marketable Securities	3 Months Ended
	Mar. 31, 2024
Investments, Debt and Equity Securities [Abstract]
Marketable Securities	Marketable Securities The following is a summary of available-for-sale marketable securities, excluding those securities classified within cash and cash equivalents, on the Condensed Consolidated Balance Sheets as of December 31, 2023. As of March 31, 2024, the Company reallocated its marketable securities to money market funds due to the more favorable yields. December 31, 2023 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value U.S. treasury securities $ 69,456 $ 6 $ (6) $ 69,456 Commercial paper 25,088 — (12) 25,076 Total Marketable securities $ 94,544 $ 6 $ (18) $ 94,532 Interest income from investments was $5,274 and $7,670 for the three months ended March 31, 2024 and 2023, respectively.

Fair Value Measurements

Fair Value Measurements	3 Months Ended
	Mar. 31, 2024
Fair Value Disclosures [Abstract]
Fair Value Measurements	Fair Value Measurements The fair value of our financial assets measured on a recurring basis is as follows: March 31, 2024 Level I Level II Total Cash and cash equivalents: Cash $ 44,301 $ — $ 44,301 Money market funds 374,762 — 374,762 Total Cash and cash equivalents $ 419,063 $ — $ 419,063 December 31, 2023 Level I Level II Total Cash and cash equivalents: Cash $ 54,871 $ — $ 54,871 Money market funds 262,365 — 262,365 Total Cash and cash equivalents $ 317,236 $ — $ 317,236 Marketable securities: U.S. treasury securities $ 69,456 $ — $ 69,456 Commercial paper — 25,076 25,076 Total Marketable securities $ 69,456 $ 25,076 $ 94,532 The Company classifies its highly liquid money market funds and U.S. treasury securities within Level 1 of the fair value hierarchy because they are valued based on quoted market prices in active markets. The Company classifies its commercial paper and corporate debt securities within Level 2 because they are valued using inputs other than quoted prices that are directly or indirectly observable in the market, including readily available pricing sources for the identical underlying security which may not be actively traded. The Company had no Level 3 financial assets as of March 31, 2024 and December 31, 2023. Financial Instruments Not Recorded at Fair Value on a Recurring Basis The Company reports financial instruments at fair value, with the exception of the 0% Convertible Senior Notes due December 1, 2026 (“Convertible Notes”). Financial instruments that are not recorded at fair value on a recurring basis are measured at fair value on a quarterly basis for disclosure purposes. The carrying values and estimated fair values of financial instruments not recorded at fair value are as follows: March 31, 2024 December 31, 2023 Carrying Value Fair Value Carrying Value Fair Value Convertible Notes $ 1,479,687 $ 1,261,500 $ 1,477,798 $ 1,235,625 The carrying value of the Convertible Notes as of March 31, 2024 and December 31, 2023 was net of unamortized debt issuance costs of $20,313 and $22,202, respectively. The total fair value of the Convertible Notes was determined based on the closing trading price as of the last day of trading for the period. The Company considers the fair value to be a Level 2 valuation due to the limited trading activity.

Balance Sheet Details

Balance Sheet Details	3 Months Ended
	Mar. 31, 2024
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: March 31, 2024 December 31, 2023 Computers and equipment $ 671,694 $ 657,505 Furniture and fixtures 1,511 1,511 Leasehold improvements 6,820 6,820 Internal-use software 86,360 84,279 Equipment under finance leases 12,234 11,938 Property and equipment, gross $ 778,619 $ 762,053 Less: accumulated depreciation $ (381,457) $ (387,083) Less: accumulated amortization (75,110) (69,526) Property and equipment, net $ 322,052 $ 305,444 Depreciation expense on property and equipment was $24,638 and $22,372 for the three months ended March 31, 2024 and 2023, respectively. The Company capitalized costs related to the development of computer software for internal use of $2,072 and $2,199 for the three months ended March 31, 2024 and 2023, respectively, which is included in internal-use software costs within Property and equipment, net. Amortization expense related to internal-use software was $1,514 and $2,750 for the three months ended March 31, 2024 and 2023, respectively. During the three months ended March 31, 2023, the Company recorded an impairment loss of $553 related to software that is no longer being used. No such loss was recorded for the three months ended March 31, 2024. This impairment loss is included in Cost of revenue and Research and development on the Condensed Consolidated Statements of Operations.

Debt

Debt	3 Months Ended
	Mar. 31, 2024
Debt Disclosure [Abstract]
Debt	Debt Credit Facility In February and March 2020, the Company entered into and subsequently amended a second amended and restated credit agreement with KeyBank National Association as administrative agent. In November 2021, the Company further amended such credit agreement to revise certain covenants that restricted the incurrence of indebtedness to permit the issuance of the convertible notes discussed below. In March 2022, the Company entered into a third amended and restated credit agreement (the “Credit Facility”) to, among other modifications, (i) remove the term loan component of the existing credit facility which had been previously repaid in full; (ii) increase the maximum borrowing limit of the revolving credit facility from $150,000 to $250,000; (iii) extend the maturity date; (iv) replace the existing maximum total net leverage ratio financial covenant with a maximum senior secured net leverage ratio financial covenant; (v) eliminate the financial covenant requirement of maintaining a minimum debt service coverage ratio; (vi) reduce the interest rates applicable to any principal amounts outstanding on the revolving credit facility as well as the annual commitment fee for unused amounts on the revolving credit facility; and (vii) replace the benchmark reference rate for U.S. Dollar loans from LIBOR to the forward-looking term rate based on the secured overnight financing rate plus a customary adjustment (“Adjusted Term SOFR”). At March 31, 2024, the Company had available borrowing capacity of $250,000 on the Credit Facility. The Credit Facility will mature on the earlier of (a) March 29, 2027 and (b) 90 days before the maturity date applicable to any outstanding convertible notes issued by the Company in an aggregate principal amount equal to or greater than $100,000. The Credit Facility is secured by a first-priority security interest in substantially all of the assets of the Company. The Credit Facility contains certain financial and operational covenants, including a maximum senior secured net leverage ratio financial covenant of 3.50x. As of March 31, 2024, the Company was in compliance with all covenants under the Credit Facility. The per annum interest rate applicable to any principal amounts outstanding under the Credit Facility for U.S. Dollar loans will be equal to (i) Adjusted Term SOFR plus (ii) an applicable margin varying from 1.25% to 2.00%, subject to a pricing grid based on the senior secured net leverage ratio. The Credit Facility provides for an annual commitment fee varying from 0.20% to 0.30%, also subject to a pricing grid based on the senior secured net leverage ratio, applied to the average daily unused amount of the revolving credit facility. The Company incurred commitment fees on the unused balance of the Credit Facility of $126 and $125 for the three months ended March 31, 2024 and 2023, respectively. Amortization of deferred financing fees was $105 for both the three months ended March 31, 2024 and 2023. Convertible Notes In November 2021, the Company issued $1,500,000 aggregate principal amount of Convertible Notes in a private offering, including the exercise in full of the over-allotment option granted to the initial purchasers of $200,000. The Convertible Notes are senior unsecured obligations of the Company and do not bear interest, and the principal amount of the Convertible Notes does not accrete. The Convertible Notes will mature on December 1, 2026 unless earlier converted, redeemed, or repurchased. Amortization of deferred financing fees for the three months ended March 31, 2024 and 2023 was $1,888 and $1,879, respectively. During the three months ended March 31, 2024, none of the circumstances allowing holders to convert the Convertible Notes were met.

Commitments and Contingencies

Commitments and Contingencies	3 Months Ended
	Mar. 31, 2024
Commitments and Contingencies Disclosure [Abstract]
Commitments and Contingencies	Commitments and Contingencies Purchase Commitments As of March 31, 2024, the Company had long-term commitments for 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, 2023. Letters of Credit In conjunction with the execution of certain office space operating leases, a letter of credit in the amount of $1,747 was issued and outstanding as of March 31, 2024 and December 31, 2023. No draws have been made under the letter 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. The letter of credit was reduced on an annual basis until the end of 2022 and, beginning January 1, 2023, the deposit currently held is the minimum threshold required until the lease expiration. 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. On September 12, 2023, a putative class action lawsuit was filed in the United States District Court for the Southern District of New York against the Company and certain of its current and former executive officers for alleged violations of the U.S. federal securities laws. The complaint in the lawsuit, captioned Agarwal v. DigitalOcean Holdings, Inc., et. al. (Case 1:23-cv-08060), asserted claims under Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 on behalf of a proposed class consisting of those who acquired common stock of the Company between February 16, 2023 and August 25, 2023 (the “Putative Class Period”), and alleged that the Company made materially false and misleading statements regarding its business during the Putative Class Period. On January 3, 2024, the plaintiff in the federal class action lawsuit voluntarily dismissed the action without prejudice. On December 12, 2023 and December 14, 2023, respectively, the Company was named a nominal defendant in two putative stockholder derivative actions filed in the United States District Court for the District of Delaware against its directors and its former chief executive officer and member of the board. The complaints in the two lawsuits, captioned Flanagan v. Spruill, et al. (Case No. 1:23-cv-01424-RGA) and Reynolds v. Spruill, et al. (Case No. 1:23-cv-01433-RGA), alleged, among other things, violations of federal law and breaches of fiduciary duty, in relation to substantially the same factual allegations as the above-described federal class action lawsuit captioned Agarwal v. DigitalOcean Holdings, Inc., et. al. (Case 1:23-cv-08060). On January 12, 2024, the two cases were consolidated. On February 7, 2024, the consolidated action was voluntarily dismissed without prejudice.

Stockholders_ Equity

Stockholders’ Equity	3 Months Ended
	Mar. 31, 2024
Equity [Abstract]
Stockholders’ Equity	Stockholders’ Equity Share Buyback Program On February 20, 2024, the Company’s Board of Directors approved the repurchase of up to an aggregate of $140 million of its common stock (“2024 Share Buyback Program”). Pursuant to the 2024 Share Buyback Program, repurchases of the Company’s common stock will be made at prevailing market prices through open market purchases or in negotiated transactions off the market. The repurchase program is authorized through fiscal year 2025; however, the Company is not obligated to acquire any particular amount of common stock and the program may be extended, modified, suspended or discontinued at any time at the Company’s discretion. During the three months ended March 31, 2024, the Company repurchased and retired 200,258 shares of common stock pursuant to the 2024 Share Buyback Program for an aggregate purchase price of $7,795, which excludes the 1% excise tax of $78 imposed under the Inflation Reduction Act. All purchased shares were retired and are reflected as a reduction of Common stock for the par value of shares, with the excess applied to Additional paid-in capital. As of March 31, 2024, the dollar value of shares that remained available to be repurchased by the Company under the 2024 Share Buyback Program was $132,205.

Stock-Based Compensation

Stock-Based Compensation	3 Months Ended
	Mar. 31, 2024
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 the 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. Shares issued pursuant to the exercise of these awards are transferable by the holder. Stock Options Stock options granted have a maximum term of ten years from the grant date, are exercisable upon vesting and typically vest over a period of four years. Stock option activity for the three months ended March 31, 2024 was as follows: Number of Options Outstanding Weighted-Average Exercise Price Weighted-Average Remaining Life in Years Aggregate Intrinsic Value Outstanding at January 1, 2024 3,289,019 $ 9.43 4.17 $ 89,671 Exercised (823,221) 6.93 Forfeited or cancelled (16,712) 18.22 Outstanding at March 31, 2024 2,449,086 $ 10.18 4.85 $ 68,577 Vested and exercisable at March 31, 2024 2,256,650 9.60 4.70 64,502 Vested and unvested expected to vest at March 31, 2024 2,439,890 $ 10.15 4.84 $ 68,388 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 three months ended March 31, 2024 and 2023 was $24,426 and $21,037, respectively. No options were granted during the three months ended March 31, 2024 and 2023. The aggregate estimated fair value of stock options granted to participants that vested during the three months ended March 31, 2024 and 2023 was $2,020 and $3,836, respectively. As of March 31, 2024, there was $3,384 of unrecognized stock-based compensation related to outstanding stock options granted that is expected to be recognized over a weighted-average period of 0.63 years. RSUs RSUs granted typically vest over four years. RSU activity for the three months ended March 31, 2024 was as follows: Shares Weighted-Average Fair Value Unvested balance at January 1, 2024 6,308,499 $ 36.07 Granted 1,432,970 38.86 Vested (501,216) 37.81 Forfeited or cancelled (585,633) 37.49 Unvested balance at March 31, 2024 6,654,620 36.40 Vested and expected to vest at March 31, 2024 5,177,654 $ 36.53 As of March 31, 2024, there was $174,375 of unrecognized stock-based compensation related to outstanding RSUs granted that is expected to be recognized over a weighted-average period of 2.97 years. PRSUs The Company has issued PRSUs which will vest based on the achievement of each award’s established performance targets. PRSU activity for the three months ended March 31, 2024 was as follows: Shares Weighted-Average Fair Value Unvested balance at January 1, 2024 537,715 $ 35.25 Vested (84,311) 54.07 Forfeited or cancelled (98,833) 31.75 Adjusted by performance factor (305,948) 31.75 Unvested balance at March 31, 2024 48,623 $ 31.75 At the end of each reporting period, the Company will adjust compensation expense for the PRSUs based on its best estimate of attainment of 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. LTIP PRSUs The Company grants Long Term Incentive Plan (“LTIP”) PRSUs to certain executives of the Company typically during the first fiscal quarter of each fiscal year. A percentage of the LTIP PRSUs will become eligible to vest based on the Company’s financial performance level at the end of each fiscal year. The number of LTIP PRSUs received will depend on the achievement of financial metrics relative to the approved performance targets. Depending on the actual financial metrics achieved relative to the target financial metrics throughout the defined performance period of the award, the number of LTIP PRSUs that vest could range from 0% to 200% of the target amount and are subject to the Compensation Committee’s approval of the level of achievement against the approved performance targets. Assuming the minimum performance level is achieved, one-third of the aggregate number of the achieved LTIP PRSUs shall vest on the later of (i) March 1 of the year after grant or (ii) two trading days following the public release of the Company’s financial results, and the remainder shall vest in 8 equal quarterly installments subject, in each case, to the individual’s continuous service through the applicable vesting date. On March 1, 2023, the Company granted an LTIP PRSU award (the “2023 LTIP PRSU”). The financial performance level under the PRSUs was the percentage equal to the sum of the revenue growth percentage and profitability percentage, which on February 21, 2024, was determined to be achieved at 38.5% of the target amount. This resulted in a performance factor reduction of 305,948 shares from the original maximum shares achievable of 378,882, excluding forfeitures. On April 11, 2024, the Company granted an LTIP PRSU award (the “2024 LTIP PRSU”). The financial performance level under the PRSUs can be attained based on the achievement of certain revenue and adjusted free cash flow margin targets. Under the 2024 LTIP PRSU, 75% of the award can be achieved based on the revenue targets and 25% of the award can be achieved based on the adjusted free cash flow margin targets. The target shares granted under the 2024 LTIP PRSU was 84,472. The actual number of shares that are received under the 2024 LTIP PRSU may be higher or lower than the target shares based on the actual financial metrics achieved relative to the target financial metrics for fiscal year 2024. There is $608 of unrecognized stock-based compensation that is expected to be recognized over a weighted-average period of 2 years in regards to the LTIP PRSUs. MRSUs On February 12, 2024, Padmanabhan Srinivasan joined the Company in the role of CEO. As part of his compensation package, Mr. Srinivasan received an MRSU with an estimated grant date fair value of approximately $8 million, which will vest upon the satisfaction of certain service conditions and the achievement of certain Company stock price goals during a five-year performance period, as described below. A cumulative percentage of the MRSU target 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 60 trading day period during the performance period as set forth in the table below: Tranche Company Stock Price Target Total Payout 1 $65.00 25% of Target MRSUs 2 $100.00 50% of Target MRSUs 3 $135.00 100% of Target MRSUs 4 $170.00 150% of Target MRSUs The target number of achievable shares is 193,178 and the maximum number of achievable shares is 289,767. There will be no pro-rata or straight-line interpolation vesting for achievement of a stock price target between the stock price targets, except in the event of a qualifying termination. If the stock price targets are achieved during the first three years following the grant date (the “First Performance Period”), 50% of the MRSUs eligible to vest will vest on the third anniversary of the grant date and the remaining 50% of the eligible MRSUs will vest on the fifth anniversary of the grant date. Each tranche of MRSUs whose stock price target was not achieved during the First Performance Period that is subsequently achieved during the period between the third anniversary of the grant date and fifth anniversary of the grant date will vest on the fifth anniversary of the grant date. The unvested balance of 3,000,000 shares related to the former CEO’s MRSU were forfeited and canceled during the three months ended March 31, 2024. There was no unrecognized stock-based compensation related to the former CEO’s MRSU awards. As of March 31, 2024, there was $7,720 unrecognized stock-based compensation related to the MRSUs granted remaining to be recognized. ESPP In March 2021, the Company’s Board of Directors adopted, and the stockholders approved, the 2021 Employee Stock Purchase Plan (“ESPP”). Eligible employees enroll in the offering period at the start of each purchase period, whereby they may purchase a number of shares at a price per share equal to 85% of the lesser of (1) the stock price at the employee’s first participation in the offering period or (2) the fair market value of the Company’s common stock on the purchase date. After the end of an offering period, a new offering will automatically begin on the date that immediately follows the conclusion of the preceding offering. 2023 Offering A new offering period commenced on November 21, 2023, and consists of two purchase periods, the first of which will have a purchase date of May 20, 2024 and the second and final purchase will have a purchase date of November 20, 2024 (the “2023 Offering”). During the three months ended March 31, 2024 and 2023, the Company recorded stock-based compensation associated with the ESPP of $463 and $625, respectively. As of March 31, 2024, $1,633 has been withheld on behalf of employees. Stock-Based Compensation Stock-based compensation was included in the Condensed Consolidated Statements of Operations as follows: Three Months Ended March 31, 2024 2023 Cost of revenue $ 522 $ 392 Research and development 9,386 9,590 Sales and marketing 3,781 3,332 General and administrative 9,188 14,280 Restructuring and other charges — 3,937 Total $ 22,877 $ 31,531

Net Income (Loss) per Share Att

Net Income (Loss) per Share Attributable to Common Stockholders	3 Months Ended
	Mar. 31, 2024
Earnings Per Share [Abstract]
Net Income (Loss) per Share Attributable to Common Stockholders	Net Income (Loss) per Share Attributable to Common Stockholders The following table presents the calculation of basic and diluted net income (loss) per share: Three Months Ended March 31, (In thousands, except per share amounts) 2024 2023 Basic net income (loss) per share: Numerator: Net income (loss) attributable to common stockholders $ 14,139 $ (16,370) Denominator: Weighted average shares used to compute net income (loss) per share 90,794 95,565 Basic net income (loss) per share attributable to common stockholders $ 0.16 $ (0.17) Diluted net income (loss) per share: Numerator: Net income (loss) attributable to common stockholders $ 14,139 $ (16,370) Denominator: Number of shares used in basic calculation 90,794 95,565 Weighted-average effect of diluted securities: Stock Options 1,931 — RSUs 979 — PRSUs 83 — Number of shares used in diluted calculation 93,787 95,565 Diluted net income (loss) per share attributable to common stockholders $ 0.15 $ (0.17) Potentially dilutive securities that were not included in the diluted per share calculations because they would be anti-dilutive were as follows: Three Months Ended March 31, (In thousands) 2024 2023 Stock Options 16 46 RSUs 2,009 1,456 PRSUs — 15 Convertible Notes 8,403 8,403 Total 10,428 9,920

Income Taxes

Income Taxes	3 Months Ended
	Mar. 31, 2024
Income Tax Disclosure [Abstract]
Income Taxes	Income Taxes The computation of the provision for, or benefit from, income taxes for an interim period is determined using an estimated annual effective tax rate, adjusted for discrete items, if any. Each quarter, the Company updates the estimated annual effective tax rate and records a year-to-date adjustment to the tax provision as necessary. For the three months ended March 31, 2024, the Company recorded a tax expense of $116. The effective tax rate for the three months ended March 31, 2024 was 0.8%. The effective tax rate differs from the statutory rate primarily as a result of having a full valuation allowance in the U.S. and the mix of income in the foreign jurisdictions in which the Company conducts business, and excess tax benefits from stock-based compensation. For the three months ended March 31, 2023, the Company recorded a tax benefit of $11,481. The effective tax rate for the three months ended March 31, 2023 was 41.2%. The effective tax rate differs from the statutory rate primarily as a result of being able to benefit from current year losses in the U.S., despite maintaining a valuation allowance against the remaining U.S. deferred tax assets, as well as the mix of income in foreign jurisdictions. The Organization for Economic Co-operation and Development Pillar Two guidelines published to date include transition and safe harbor rules around the implementation of the Pillar Two global minimum tax of 15%. Based on current enacted legislation effective in 2024, the Company is currently below the threshold of Pillar Two tax. The Company is monitoring developments and evaluating the impacts these new rules will have on its future income tax provision and effective income tax rate.

Pay vs Performance Disclosure

Pay vs Performance Disclosure - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023
Pay vs Performance Disclosure
Net income (loss) attributable to common stockholders	$ 14,139	$ (16,370)

Insider Trading Arrangements

Insider Trading Arrangements	3 Months Ended
	Mar. 31, 2024
Trading Arrangements, by Individual
Rule 10b5-1 Arrangement Adopted	false
Non-Rule 10b5-1 Arrangement Adopted	false
Rule 10b5-1 Arrangement Terminated	false
Non-Rule 10b5-1 Arrangement Terminated	false

Summary of Significant Accoun_2

Summary of Significant Accounting Policies (Policies)	3 Months Ended
	Mar. 31, 2024
Accounting Policies [Abstract]
Basis of Presentation and Principles of Consolidation	Basis of Presentation and Principles of Consolidation
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 including estimation of the probability of performance vesting conditions, the incremental borrowing rate used to determine lease liabilities, valuation allowances against deferred tax assets, fair value of financial instruments, 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.
Segment Information	Segment Information The Company’s chief operating decision maker, the chief executive officer (“CEO”), 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 Risk The amounts reflected in the Condensed Consolidated Balance Sheets for cash and cash equivalents, marketable securities, 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 In December 2023, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2023-09, Income Taxes (Topic 740)—Improvements to Income Tax Disclosures (“ASU 2023-09”). ASU 2023-09 requires that an entity disclose specific categories in the effective tax rate reconciliation as well as provide additional information for reconciling items that meet a quantitative threshold. Further, ASU 2023-09 requires certain disclosures of state versus federal income tax expense and taxes paid. The amendments in ASU 2023-09 are required to be adopted for fiscal years beginning after December 15, 2024. Early adoption is permitted for annual financial statements that have not yet been issued. The amendments should be applied on a prospective basis although retrospective application is permitted. The Company is currently evaluating the impact of adoption on our financial disclosures. In November 2023, the FASB issued ASU No. 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures (“ASU 2023-07”). ASU 2023-07 expands public entities’ segment disclosures by requiring disclosure of significant segment expenses that are regularly provided to the chief operating decision maker and included within each reported measure of segment profit or loss, an amount and description of its composition for other segment items, and interim disclosures of a reportable segment’s profit or loss and assets. ASU 2023-07 is effective for fiscal years beginning after December 15, 2023 and for interim periods within fiscal years beginning after December 15, 2024, with early application permitted. The Company is currently evaluating the impact of adopting ASU 2023-07 on its consolidated financial statements and disclosures.

Summary of Significant Accoun_3

Summary of Significant Accounting Policies (Tables)	3 Months Ended
	Mar. 31, 2024
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: March 31, 2024 2023 Cash and cash equivalents $ 419,063 $ 20,872 Restricted cash included in Prepaid expenses and other current assets (1) — 9,100 Restricted cash (2) 1,747 1,747 Total cash, cash equivalents and restricted cash $ 420,810 $ 31,719 ___________________ (1) Includes contingent compensation related to the Cloudways Ltd. (“Cloudways”) acquisition, which was paid on September 1, 2023. (2) Includes deposits in financial institutions related to letters of credit used to secure lease agreements.
Reconciliation of Restricted Cash	The following table reconciles cash, cash equivalents and restricted cash per the Condensed Consolidated Statements of Cash Flows: March 31, 2024 2023 Cash and cash equivalents $ 419,063 $ 20,872 Restricted cash included in Prepaid expenses and other current assets (1) — 9,100 Restricted cash (2) 1,747 1,747 Total cash, cash equivalents and restricted cash $ 420,810 $ 31,719 ___________________ (1) Includes contingent compensation related to the Cloudways Ltd. (“Cloudways”) acquisition, which was paid on September 1, 2023. (2) Includes deposits in financial institutions related to letters of credit used to secure lease agreements.
Disclosure of Changes in Allowance for Doubtful Accounts	The following table presents the changes in our allowance for expected credit losses for the period presented: Amount Balance as of December 31, 2023 $ 5,848 Provision for expected credit losses 4,175 Write-offs and other (4,212) Balance as of March 31, 2024 $ 5,811
Revenue by Geographic Areas	Revenue, as determined based on the billing address of the Company’s customers, was as follows: Three Months Ended March 31, 2024 2023 North America 37 % 38 % Europe 29 29 Asia 24 23 Other 10 10 Total 100 % 100 %
Long-lived Assets by Geographic Areas	The geographic locations of the Company’s long-lived assets, net, based on physical location of the assets is as follows: March 31, 2024 December 31, 2023 United States $ 269,188 $ 233,557 Singapore 38,639 43,425 Germany 54,881 62,224 Netherlands 42,367 46,170 Other 72,979 75,269 Total $ 478,054 $ 460,645

Acquisitions, Goodwill and In_2

Acquisitions, Goodwill and Intangible Assets (Tables)	3 Months Ended
	Mar. 31, 2024
Business Combination and Asset Acquisition [Abstract]
Schedule of Purchase Price Allocation	The following table sets forth the allocation of the purchase price for the business combination and summarizes the fair values of the assets acquired and liabilities assumed at the Paperspace Acquisition Date: Amount Fair value of consideration transferred Cash consideration $ 100,399 Recognized amounts of identifiable assets acquired and liabilities assumed Tangible assets acquired: Cash and cash equivalents $ 1,376 Accounts receivable 1,042 Prepaid expenses and other current assets 193 Property and equipment, net 4,515 Operating right-of-use asset, net 4,398 Finance lease right-of-use asset, net 11,958 Other assets 367 Intangible assets 37,690 Liabilities assumed: Accounts payable and accrued expenses (1,445) Deferred revenue (105) Operating lease liabilities, current (1,475) Operating lease liabilities, non-current (2,923) Finance lease liabilities, current (5,707) Finance lease liabilities, non-current (6,251) Deferred tax liabilities (1,074) Total identifiable net assets acquired 42,559 Goodwill recorded in acquisition 57,840 Total purchase price allocation $ 100,399
Schedule of Intangible Assets Acquired	The fair values allocated to the identifiable intangible assets and their estimated useful lives are as follows: Estimated Fair Value Weighted Average Useful Life (years) Trademark/Trade Name $ 300 1 Developed Technology 24,120 5 Customer Relationships 13,270 5 Total intangible assets $ 37,690
Schedule of Pro Forma Information	The unaudited pro forma information below summarizes the combined results of the Company and Paperspace as if the Company’s acquisition of Paperspace closed on January 1, 2022 but does not necessarily reflect the combined actual results of operations of the Company and Paperspace that would have been achieved, nor are they necessarily indicative of future results of operations. The unaudited pro forma information reflects certain adjustments that were directly attributable to the acquisition of Paperspace, including additional amortization of acquired assets and the timing of nonrecurring acquisition and integration related costs, and other adjustments the Company believes are reasonable for the pro forma presentation. If Paperspace had been acquired on January 1, 2022, it would not have had a material impact to revenue for the three months ended March 31, 2023. Pro Forma for the Three Months Ended March 31, 2023 Net loss $ 21,200

Marketable Securities (Tables)

Marketable Securities (Tables)	3 Months Ended
	Mar. 31, 2024
Investments, Debt and Equity Securities [Abstract]
Marketable Securities	The following is a summary of available-for-sale marketable securities, excluding those securities classified within cash and cash equivalents, on the Condensed Consolidated Balance Sheets as of December 31, 2023. As of March 31, 2024, the Company reallocated its marketable securities to money market funds due to the more favorable yields. December 31, 2023 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value U.S. treasury securities $ 69,456 $ 6 $ (6) $ 69,456 Commercial paper 25,088 — (12) 25,076 Total Marketable securities $ 94,544 $ 6 $ (18) $ 94,532

Fair Value Measurements (Tables

Fair Value Measurements (Tables)	3 Months Ended
	Mar. 31, 2024
Fair Value Disclosures [Abstract]
Schedule of Liabilities Measured on a Recurring Basis	The fair value of our financial assets measured on a recurring basis is as follows: March 31, 2024 Level I Level II Total Cash and cash equivalents: Cash $ 44,301 $ — $ 44,301 Money market funds 374,762 — 374,762 Total Cash and cash equivalents $ 419,063 $ — $ 419,063 December 31, 2023 Level I Level II Total Cash and cash equivalents: Cash $ 54,871 $ — $ 54,871 Money market funds 262,365 — 262,365 Total Cash and cash equivalents $ 317,236 $ — $ 317,236 Marketable securities: U.S. treasury securities $ 69,456 $ — $ 69,456 Commercial paper — 25,076 25,076 Total Marketable securities $ 69,456 $ 25,076 $ 94,532 March 31, 2024 December 31, 2023 Carrying Value Fair Value Carrying Value Fair Value Convertible Notes $ 1,479,687 $ 1,261,500 $ 1,477,798 $ 1,235,625

Balance Sheet Details (Tables)

Balance Sheet Details (Tables)	3 Months Ended
	Mar. 31, 2024
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Schedule of Property and Equipment, Net	Property and equipment, net consisted of the following: March 31, 2024 December 31, 2023 Computers and equipment $ 671,694 $ 657,505 Furniture and fixtures 1,511 1,511 Leasehold improvements 6,820 6,820 Internal-use software 86,360 84,279 Equipment under finance leases 12,234 11,938 Property and equipment, gross $ 778,619 $ 762,053 Less: accumulated depreciation $ (381,457) $ (387,083) Less: accumulated amortization (75,110) (69,526) Property and equipment, net $ 322,052 $ 305,444

Stock-Based Compensation (Table

Stock-Based Compensation (Tables)	3 Months Ended
	Mar. 31, 2024
Share-Based Payment Arrangement [Abstract]
Schedule of Stock Option Activity	Stock option activity for the three months ended March 31, 2024 was as follows: Number of Options Outstanding Weighted-Average Exercise Price Weighted-Average Remaining Life in Years Aggregate Intrinsic Value Outstanding at January 1, 2024 3,289,019 $ 9.43 4.17 $ 89,671 Exercised (823,221) 6.93 Forfeited or cancelled (16,712) 18.22 Outstanding at March 31, 2024 2,449,086 $ 10.18 4.85 $ 68,577 Vested and exercisable at March 31, 2024 2,256,650 9.60 4.70 64,502 Vested and unvested expected to vest at March 31, 2024 2,439,890 $ 10.15 4.84 $ 68,388
Schedule of RSU Activity	RSU activity for the three months ended March 31, 2024 was as follows: Shares Weighted-Average Fair Value Unvested balance at January 1, 2024 6,308,499 $ 36.07 Granted 1,432,970 38.86 Vested (501,216) 37.81 Forfeited or cancelled (585,633) 37.49 Unvested balance at March 31, 2024 6,654,620 36.40 Vested and expected to vest at March 31, 2024 5,177,654 $ 36.53
Schedule of PRSU Activity	PRSU activity for the three months ended March 31, 2024 was as follows: Shares Weighted-Average Fair Value Unvested balance at January 1, 2024 537,715 $ 35.25 Vested (84,311) 54.07 Forfeited or cancelled (98,833) 31.75 Adjusted by performance factor (305,948) 31.75 Unvested balance at March 31, 2024 48,623 $ 31.75
Summary of Share-Based Payment Arrangement and Price Targets	A cumulative percentage of the MRSU target 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 60 trading day period during the performance period as set forth in the table below: Tranche Company Stock Price Target Total Payout 1 $65.00 25% of Target MRSUs 2 $100.00 50% of Target MRSUs 3 $135.00 100% of Target MRSUs 4 $170.00 150% of Target MRSUs
Summary of Stock-Based Compensation Expense	Stock-based compensation was included in the Condensed Consolidated Statements of Operations as follows: Three Months Ended March 31, 2024 2023 Cost of revenue $ 522 $ 392 Research and development 9,386 9,590 Sales and marketing 3,781 3,332 General and administrative 9,188 14,280 Restructuring and other charges — 3,937 Total $ 22,877 $ 31,531

Net Income (Loss) per Share A_2

Net Income (Loss) per Share Attributable to Common Stockholders (Tables)	3 Months Ended
	Mar. 31, 2024
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 income (loss) per share: Three Months Ended March 31, (In thousands, except per share amounts) 2024 2023 Basic net income (loss) per share: Numerator: Net income (loss) attributable to common stockholders $ 14,139 $ (16,370) Denominator: Weighted average shares used to compute net income (loss) per share 90,794 95,565 Basic net income (loss) per share attributable to common stockholders $ 0.16 $ (0.17) Diluted net income (loss) per share: Numerator: Net income (loss) attributable to common stockholders $ 14,139 $ (16,370) Denominator: Number of shares used in basic calculation 90,794 95,565 Weighted-average effect of diluted securities: Stock Options 1,931 — RSUs 979 — PRSUs 83 — Number of shares used in diluted calculation 93,787 95,565 Diluted net income (loss) per share attributable to common stockholders $ 0.15 $ (0.17)
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: Three Months Ended March 31, (In thousands) 2024 2023 Stock Options 16 46 RSUs 2,009 1,456 PRSUs — 15 Convertible Notes 8,403 8,403 Total 10,428 9,920

Summary of Significant Accoun_4

Summary of Significant Accounting Policies - Reconciliation of Cash, Cash Equivalents and Restricted Cash (Details) - USD ($) $ in Thousands	Mar. 31, 2024	Dec. 31, 2023	Mar. 31, 2023	Dec. 31, 2022
Accounting Policies [Abstract]
Cash and cash equivalents	$ 419,063	$ 317,236	$ 20,872
Restricted cash included in Prepaid expenses and other current assets	0		9,100
Restricted cash	1,747		1,747
Total cash, cash equivalents and restricted cash	$ 420,810	$ 318,983	$ 31,719	$ 151,807

Summary of Significant Accoun_5

Summary of Significant Accounting Policies - Disclosure of Changes in Allowance for Doubtful Accounts (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023
Accounts Receivable, Allowance for Credit Loss [Roll Forward]
Beginning Balance	$ 5,848
Provision for expected credit losses	4,175	$ 3,987
Write-offs and other	(4,212)
Ending Balance	$ 5,811

Summary of Significant Accoun_6

Summary of Significant Accounting Policies - Narrative (Details) $ in Thousands	3 Months Ended
	Mar. 31, 2024 USD ($) segment	Mar. 31, 2023 USD ($)	Dec. 31, 2023 USD ($)
Concentration Risk [Line Items]
Deferred revenue | $	$ 5,477		$ 5,340
Revenue recognized during period | $	$ 2,112	$ 2,118
Number of operating segments | segment	1
Number of reportable segments | segment	1
Geographic Concentration Risk | Revenue from Contract with Customer
Concentration Risk [Line Items]
Revenue derived from customers, percent	100%	100%
United States | Geographic Concentration Risk | Revenue from Contract with Customer
Concentration Risk [Line Items]
Revenue derived from customers, percent	30%	31%

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
	Mar. 31, 2024	Mar. 31, 2023
Revenues from External Customers and Long-Lived Assets [Line Items]
Total	100%	100%
North America
Revenues from External Customers and Long-Lived Assets [Line Items]
Total	37%	38%
Europe
Revenues from External Customers and Long-Lived Assets [Line Items]
Total	29%	29%
Asia
Revenues from External Customers and Long-Lived Assets [Line Items]
Total	24%	23%
Other
Revenues from External Customers and Long-Lived Assets [Line Items]
Total	10%	10%

Summary of Significant Accoun_8

Summary of Significant Accounting Policies -Long-Lived Assets by Geographic Area (Details) - USD ($) $ in Thousands	Mar. 31, 2024	Dec. 31, 2023
Revenues from External Customers and Long-Lived Assets [Line Items]
Total	$ 478,054	$ 460,645
United States
Revenues from External Customers and Long-Lived Assets [Line Items]
Total	269,188	233,557
Singapore
Revenues from External Customers and Long-Lived Assets [Line Items]
Total	38,639	43,425
Germany
Revenues from External Customers and Long-Lived Assets [Line Items]
Total	54,881	62,224
Netherlands
Revenues from External Customers and Long-Lived Assets [Line Items]
Total	42,367	46,170
Other
Revenues from External Customers and Long-Lived Assets [Line Items]
Total	$ 72,979	$ 75,269

Acquisitions, Goodwill and In_3

Acquisitions, Goodwill and Intangible Assets - Narrative (Details) - USD ($) $ in Thousands					1 Months Ended	3 Months Ended
	Mar. 01, 2024	Sep. 01, 2023	Jul. 05, 2023	Sep. 01, 2022	Jan. 31, 2023	Mar. 31, 2024
Earned Three Months Ended March 31, 2024 | SnapShooter Limited
Business Acquisition [Line Items]
Asset acquisition, contingent consideration					$ 1,000
Asset acquisition, contingent consideration paid						$ 1,000
Paperspace Co. Acquisition
Business Acquisition [Line Items]
Business acquisition, percentage of voting interests acquired			100%
Payments to acquire businesses			$ 100,399
Cash contributed to escrow			11,100
Contingent compensations costs			10,120
Paperspace Co. Acquisition | Earned On July 5, 2024
Business Acquisition [Line Items]
Contingent compensations costs			5,060
Paperspace Co. Acquisition | Earned Quarterly After July 5, 2024 Through July 5, 2025
Business Acquisition [Line Items]
Contingent compensations costs			$ 1,265
Cloudways Ltd. Acquisition
Business Acquisition [Line Items]
Contingent compensations costs				$ 38,830
Cloudways Ltd. Acquisition | Earned September 1, 2023
Business Acquisition [Line Items]
Contingent compensations costs				16,851
Contingent compensation costs paid		$ 16,851
Cloudways Ltd. Acquisition | Earned On March 1, 2024
Business Acquisition [Line Items]
Contingent compensations costs				7,326
Contingent compensation costs paid	$ 7,326
Cloudways Ltd. Acquisition | Earned On September 1, 2024 And March 1, 2025
Business Acquisition [Line Items]
Contingent compensations costs				$ 7,326

Acquisitions, Goodwill and In_4

Acquisitions, Goodwill and Intangible Assets - Purchase Price Allocation (Details) - USD ($) $ in Thousands	Jul. 05, 2023	Mar. 31, 2024	Dec. 31, 2023
Liabilities assumed:
Goodwill recorded in acquisition		$ 348,322	$ 348,322
Paperspace Co. Acquisition
Business Acquisition [Line Items]
Cash consideration	$ 100,399
Tangible assets acquired:
Cash and cash equivalents	1,376
Accounts receivable	1,042
Prepaid expenses and other current assets	193
Property and equipment, net	4,515
Operating right-of-use asset, net	4,398
Finance lease right-of-use asset, net	11,958
Other assets	367
Intangible assets	37,690
Liabilities assumed:
Accounts payable and accrued expenses	(1,445)
Deferred revenue	(105)
Operating lease liabilities, current	(1,475)
Operating lease liabilities, non-current	(2,923)
Finance lease liabilities, current	(5,707)
Finance lease liabilities, non-current	(6,251)
Deferred tax liabilities	(1,074)
Total identifiable net assets acquired	42,559
Goodwill recorded in acquisition	57,840
Total purchase price allocation	$ 100,399

Acquisitions, Goodwill and In_5

Acquisitions, Goodwill and Intangible Assets - Intangible Assets (Details) - Paperspace Co. Acquisition $ in Thousands	Jul. 05, 2023 USD ($)
Acquired Finite-Lived Intangible Assets [Line Items]
Estimated Fair Value	$ 37,690
Trademark/Trade Name
Acquired Finite-Lived Intangible Assets [Line Items]
Estimated Fair Value	$ 300
Weighted Average Useful Life (years)	1 year
Developed Technology
Acquired Finite-Lived Intangible Assets [Line Items]
Estimated Fair Value	$ 24,120
Weighted Average Useful Life (years)	5 years
Customer Relationships
Acquired Finite-Lived Intangible Assets [Line Items]
Estimated Fair Value	$ 13,270
Weighted Average Useful Life (years)	5 years

Acquisitions, Goodwill and In_6

Acquisitions, Goodwill and Intangible Assets - Pro Forma (Details) $ in Thousands	3 Months Ended
	Mar. 31, 2023 USD ($)
Paperspace Co. Acquisition
Acquired Finite-Lived Intangible Assets [Line Items]
Net loss	$ 21,200

Marketable Securities - Summary

Marketable Securities - Summary of Securities (Details) $ in Thousands	12 Months Ended
	Dec. 31, 2023 USD ($)
Debt Securities, Available-for-sale [Line Items]
Amortized Cost	$ 94,544
Gross Unrealized Gains	6
Gross Unrealized Losses	(18)
Fair Value	94,532
U.S. treasury securities
Debt Securities, Available-for-sale [Line Items]
Amortized Cost	69,456
Gross Unrealized Gains	6
Gross Unrealized Losses	(6)
Fair Value	69,456
Commercial paper
Debt Securities, Available-for-sale [Line Items]
Amortized Cost	25,088
Gross Unrealized Gains	0
Gross Unrealized Losses	(12)
Fair Value	$ 25,076

Marketable Securities - Narrati

Marketable Securities - Narrative (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023
Investments, Debt and Equity Securities [Abstract]
Interest income	$ 5,274	$ 7,670

Fair Value Measurements - Sched

Fair Value Measurements - Schedule of Fair Value on Recurring Basis (Details) - USD ($) $ in Thousands	Mar. 31, 2024	Dec. 31, 2023
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Marketable securities:		$ 94,532
Fair Value, Recurring
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Cash and cash equivalents:	$ 419,063	317,236
Marketable securities:		94,532
Level I | Fair Value, Recurring
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Cash and cash equivalents:	419,063	317,236
Marketable securities:		69,456
Level II | Fair Value, Recurring
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Cash and cash equivalents:	0	0
Marketable securities:		25,076
Cash | Fair Value, Recurring
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Cash and cash equivalents:	44,301	54,871
Cash | Level I | Fair Value, Recurring
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Cash and cash equivalents:	44,301	54,871
Cash | Level II | Fair Value, Recurring
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Cash and cash equivalents:	0	0
Money market funds | Fair Value, Recurring
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Cash and cash equivalents:	374,762	262,365
Money market funds | Level I | Fair Value, Recurring
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Cash and cash equivalents:	374,762	262,365
Money market funds | Level II | Fair Value, Recurring
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Cash and cash equivalents:	$ 0	0
U.S. treasury securities
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Marketable securities:		69,456
U.S. treasury securities | Fair Value, Recurring
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Marketable securities:		69,456
U.S. treasury securities | Level I | Fair Value, Recurring
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Marketable securities:		69,456
U.S. treasury securities | Level II | Fair Value, Recurring
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Marketable securities:		0
Commercial paper
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Marketable securities:		25,076
Commercial paper | Fair Value, Recurring
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Marketable securities:		25,076
Commercial paper | Level I | Fair Value, Recurring
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Marketable securities:		0
Commercial paper | Level II | Fair Value, Recurring
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Marketable securities:		$ 25,076

Fair Value Measurements - Narra

Fair Value Measurements - Narrative (Details) - USD ($) $ in Thousands	Mar. 31, 2024	Dec. 31, 2023	Nov. 30, 2021
Convertible Notes
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Unamortized discount and debt issuance costs	$ 20,313	$ 22,202
Convertible Senior Notes Due 2026 | Senior Notes
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Interest rate			0%

Fair Value Measurements - Conve

Fair Value Measurements - Convertible Notes Measurement (Details) - Convertible Notes - USD ($) $ in Thousands	Mar. 31, 2024	Dec. 31, 2023
Carrying Value
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Convertible Notes	$ 1,479,687	$ 1,477,798
Fair Value, Recurring | Fair Value
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Convertible Notes	$ 1,261,500	$ 1,235,625

Balance Sheet Details - Schedul

Balance Sheet Details - Schedule of Property, Plant and Equipment (Details) - USD ($) $ in Thousands	Mar. 31, 2024	Dec. 31, 2023
Property, Plant and Equipment [Line Items]
Property and equipment, gross	$ 778,619	$ 762,053
Less: accumulated depreciation	(381,457)	(387,083)
Less: accumulated amortization	(75,110)	(69,526)
Property and equipment, net	322,052	305,444
Computers and equipment
Property, Plant and Equipment [Line Items]
Property and equipment, gross	671,694	657,505
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	86,360	84,279
Equipment under finance leases
Property, Plant and Equipment [Line Items]
Property and equipment, gross	$ 12,234	$ 11,938

Balance Sheet Details - Narrati

Balance Sheet Details - Narrative (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Depreciation	$ 24,638	$ 22,372
Capitalized computer software	2,072	2,199
Amortization expense related to internal-use software	1,514	2,750
Impairment loss	$ 0	$ 553

Debt - Narrative (Details)

Debt - Narrative (Details) $ in Thousands	1 Months Ended	3 Months Ended
	Nov. 30, 2021 USD ($)	Mar. 31, 2024 USD ($)	Mar. 31, 2023 USD ($)	Mar. 31, 2022 USD ($)
Debt Instrument [Line Items]
Interest and amortization of deferred financing fees		$ 2,304	$ 2,189
Credit Facility
Debt Instrument [Line Items]
Commitment fees on unused balance		126	125
Amortization		$ 105	105
Credit Facility | KayBank National Association
Debt Instrument [Line Items]
Debt service coverage ratio		3.50
Credit Facility | Minimum
Debt Instrument [Line Items]
Debt instrument, face amount		$ 100,000
Credit Facility | Revolving Credit Facility
Debt Instrument [Line Items]
Line of credit facility, maximum borrowing capacity	$ 150,000			$ 250,000
Credit Facility | Revolving Credit Facility | Minimum
Debt Instrument [Line Items]
Commitment fee percentage		0.20%
Credit Facility | Revolving Credit Facility | Maximum
Debt Instrument [Line Items]
Commitment fee percentage		0.30%
Credit Facility | Line of Credit | SOFR | Variable Rate Component One | Minimum
Debt Instrument [Line Items]
Variable rate		1.25%
Credit Facility | Line of Credit | SOFR | Variable Rate Component One | Maximum
Debt Instrument [Line Items]
Variable rate		2%
Convertible Senior Notes Due 2026 | Senior Notes
Debt Instrument [Line Items]
Debt instrument, face amount	1,500,000
Interest and amortization of deferred financing fees		$ 1,888	$ 1,879
Convertible Senior Notes Due 2026 | Senior Notes | Underwriters' Option
Debt Instrument [Line Items]
Consideration received	$ 200,000

Commitments and Contingencies -

Commitments and Contingencies - Narrative (Details) $ in Thousands	Dec. 14, 2023 claim	Mar. 31, 2024 USD ($)	Feb. 07, 2024 claim	Jan. 12, 2024 claim	Dec. 31, 2023 USD ($)
Commitments and Contingencies Disclosure [Abstract]
Letters of credit outstanding, amount | $		$ 1,747			$ 1,747
Stockholder Derivative Litigation | Pending Litigation
Loss Contingencies [Line Items]
Number of claims filed	2
Number of claims consolidated				2
Stockholder Derivative Litigation | Voluntarily Dismissed Without Prejudice
Loss Contingencies [Line Items]
Number of claims voluntarily dismissed without prejudice			2

Stockholders_ Equity - Narrativ

Stockholders’ Equity - Narrative (Details) - 2024 Share Buyback Program - USD ($)	3 Months Ended
	Mar. 31, 2024	Feb. 20, 2024
Class of Stock [Line Items]
Stock repurchase program, authorized amount		$ 140,000,000
Repurchase and retirement of common stock (in shares)	200,258,000
Repurchase and retirement of common stock	$ 7,795,000
Share repurchase program, excise tax	78,000
Remaining authorized purchase amount	$ 132,205,000

Stock-Based Compensation - Narr

Stock-Based Compensation - Narrative (Details)				1 Months Ended	3 Months Ended
	Feb. 21, 2024	Feb. 12, 2024 USD ($) trading_day shares	Jun. 10, 2021 trading_day installment	Mar. 31, 2021	Mar. 31, 2024 USD ($) shares	Mar. 31, 2023 USD ($) shares	Apr. 11, 2024 shares	Nov. 21, 2023 purchase_period
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock options, exercised in period, intrinsic value					$ 24,426,000	$ 21,037,000
Options, granted, number (in shares) | shares					0	0
Stock options, granted in period, aggregate estimated fair value					$ 2,020,000	$ 3,836,000
Share-based payment arrangement, expense					$ 22,877,000	31,531,000
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
Stock options, unrecognized stock-based compensation expense					$ 3,384,000
Unrecognized stock-based compensation expense, average recognition period					7 months 17 days
RSUs
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock options, vesting period					4 years
Unrecognized stock-based compensation expense					$ 174,375,000
Unrecognized stock-based compensation expense, average recognition period					2 years 11 months 19 days
PRSUs
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Unrecognized stock-based compensation expense					$ 608,000
Unrecognized stock-based compensation expense, average recognition period					2 years
Number of quarterly installments | installment			8
Percentage of target award (in percent)	38.50%
Adjusted by performance factor | shares					(305,948)
Maximum shares achievable, excluding forfeitures (in shares) | shares					378,882
PRSUs | Subsequent Event
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Percentage of awards based on revenue targets							75%
Percentage of awards based on adjusted free cash flow margin targets							25%
Number of total target shares (in shares) | shares							84,472
PRSUs | Tranche 1
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting percentage			33.33%
PRSUs | Tranche 2
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting percentage			33.33%
PRSUs | Tranche 3
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting percentage			33.33%
PRSUs | Minimum
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting percentage					0%
PRSUs | Maximum
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting percentage					200%
Number of trading days | trading_day			2
MRSUs | Chief Executive Officer
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Unrecognized stock-based compensation expense					$ 7,720,000
Maximum shares achievable, excluding forfeitures (in shares) | shares		289,767
Number of total target shares (in shares) | shares		193,178
Grant date fair value		$ 8,000,000
Award performance period		5 years
Award performance period, number of trading days | trading_day		60
MRSUs | Former Chief Executive Officer
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Unrecognized stock-based compensation expense					$ 0
Forfeited and cancelled (in shares) | shares					3,000,000
MRSUs | Tranche 1, If Three Year Stock Price Targets Achieved | Chief Executive Officer
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting percentage		50%
MRSUs | Tranche 2, If Three Year Stock Price Targets Achieved | Chief Executive Officer
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting percentage		50%
2021 Employee Stock Purchase Plan | Employee Stock
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Purchase price of common stock, percent				85%
2023 Offering | Employee Stock
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of purchase periods | purchase_period								2
2022 Employee Stock Purchase Plan | Employee Stock
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based payment arrangement, expense					$ 463,000	$ 625,000
Share-based award, amount withheld for employees					$ 1,633,000

Stock-Based Compensation - Sche

Stock-Based Compensation - Schedule of Stock Option Activity (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended	12 Months Ended
	Mar. 31, 2024	Dec. 31, 2023
Number of Options Outstanding
Number of options outstanding at the beginning of the period (in shares)	3,289,019
Exercised (in shares)	(823,221)
Forfeited or cancelled (in shares)	(16,712)
Number of options outstanding at the end of the period (in shares)	2,449,086	3,289,019
Vested and exercisable at end of period (in shares)	2,256,650
Vested and unvested expected to vest at end of period (in shares)	2,439,890
Weighted-Average Exercise Price
Weighted-average exercise price outstanding at beginning of period (in dollars per share)	$ 9.43
Exercised (in dollars per share)	6.93
Forfeited or cancelled (in dollars per share)	18.22
Weighted-average exercise price outstanding at end of period (in dollars per share)	10.18	$ 9.43
Vested and exercisable at end of period (in dollars per share)	9.60
Vested and unvested expected to vest at end of period (in dollars per share)	$ 10.15
Weighted-Average Remaining Life in Years
Weighted average remaining life (in years)	4 years 10 months 6 days	4 years 2 months 1 day
Vested and exercisable at end of period (in years)	4 years 8 months 12 days
Vested and unvested expected to vest at end of period (in years)	4 years 10 months 2 days
Aggregate Intrinsic Value
Aggregate intrinsic value at beginning of period	$ 89,671
Aggregate intrinsic value at end of period	68,577	$ 89,671
Vested and exercisable at March 31, 2024	64,502
Vested and unvested expected to vest at March 31, 2024	$ 68,388

Stock-Based Compensation - Sc_2

Stock-Based Compensation - Schedule of RSU & PRSU Activity (Details)	3 Months Ended
	Mar. 31, 2024 $ / shares shares
RSUs
Shares
Unvested balance at beginning of period (in shares) | shares	6,308,499
Granted (in shares) | shares	1,432,970
Vested (in shares) | shares	(501,216)
Forfeited or cancelled (in shares) | shares	(585,633)
Unvested balance at end of period (in shares) | shares	6,654,620
Vested and expected to vest (in shares) | shares	5,177,654
Weighted-Average Fair Value
Unvested balance at beginning of period (in dollars per share) | $ / shares	$ 36.07
Granted (in dollars per share) | $ / shares	38.86
Vested (in dollars per share) | $ / shares	37.81
Forfeited or cancelled (in dollars per share) | $ / shares	37.49
Unvested balance at end of period (in dollars per share) | $ / shares	36.40
Vested and expected to vest (in dollars per share) | $ / shares	$ 36.53
PRSUs
Shares
Unvested balance at beginning of period (in shares) | shares	537,715
Vested (in shares) | shares	(84,311)
Forfeited or cancelled (in shares) | shares	(98,833)
Adjusted by performance factor (in shares) | shares	305,948
Unvested balance at end of period (in shares) | shares	48,623
Weighted-Average Fair Value
Unvested balance at beginning of period (in dollars per share) | $ / shares	$ 35.25
Vested (in dollars per share) | $ / shares	54.07
Forfeited or cancelled (in dollars per share) | $ / shares	31.75
Adjusted for performance factor (in dollars per share) | $ / shares	31.75
Unvested balance at end of period (in dollars per share) | $ / shares	$ 31.75

Stock-Based Compensation - MRSU

Stock-Based Compensation - MRSUs Share-Based Payment Arrangements and Price Targets (Details) - MRSUs - Chief Executive Officer	Feb. 12, 2024 $ / shares
Tranche 1
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Company Stock Price Target (in dollars per share)	$ 65
Total Payout	25%
Tranche 2
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Company Stock Price Target (in dollars per share)	$ 100
Total Payout	50%
Tranche 3
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Company Stock Price Target (in dollars per share)	$ 135
Total Payout	100%
Tranche 4
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Company Stock Price Target (in dollars per share)	$ 170
Total Payout	150%

Stock-Based Compensation - Summ

Stock-Based Compensation - Summary of Stock-Based Compensation Expense (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]
Total	$ 22,877	$ 31,531
Cost of revenue
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]
Total	522	392
Research and development
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]
Total	9,386	9,590
Sales and marketing
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]
Total	3,781	3,332
General and administrative
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]
Total	9,188	14,280
Restructuring and other charges
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]
Total	$ 0	$ 3,937

Net Income (Loss) per Share A_3

Net Income (Loss) per Share Attributable to Common Stockholders - Schedule of Net Income (Loss) Per Share (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023
Numerator:
Net income (loss) attributable to common stockholders	$ 14,139	$ (16,370)
Weighted average shares used to compute net income (loss) per share (in shares)	90,794,000	95,565,000
Basic net income (loss) per share attributable to common stockholders (in dollars per share)	$ 0.16	$ (0.17)
Diluted net income (loss) per share:
Number of shares used in basic calculation (in shares)	90,794,000	95,565,000
Diluted (in shares)	93,787,000	95,565,000
Diluted net income (loss) per share attributable to common stockholders (in dollars per share)	$ 0.15	$ (0.17)
Stock Options
Diluted net income (loss) per share:
Diluted (in shares)	1,931,000	0
RSUs
Diluted net income (loss) per share:
Diluted (in shares)	979,000	0
PRSUs
Diluted net income (loss) per share:
Diluted (in shares)	83,000	0

Net Income (Loss) per Share A_4

Net Income (Loss) per Share Attributable to Common Stockholders - Schedule of Antidilutive Securities Excluded from Computation of Net Loss Per Share (Details) - shares	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive securities excluded from computation of loss per share, amount (in shares)	10,428,000	9,920,000
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)	16,000	46,000
RSUs
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive securities excluded from computation of loss per share, amount (in shares)	2,009,000	1,456,000
PRSUs
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive securities excluded from computation of loss per share, amount (in shares)	0	15,000
Convertible Notes
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive securities excluded from computation of loss per share, amount (in shares)	8,403,000	8,403,000

Income Taxes - Narrative (Detai

Income Taxes - Narrative (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023
Income Tax Disclosure [Abstract]
Income tax expense (benefit)	$ 116	$ (11,481)
Effective income tax rate	0.80%	41.20%