Udemy (UDMY) 10-K 27 Feb 23 2022 FY Annual report Financial data

Cover

Cover - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2022	Feb. 21, 2023	Jun. 30, 2022
Cover [Abstract]
Document Type	10-K
Document Annual Report	true
Document Period End Date	Dec. 31, 2022
Current Fiscal Year End Date	--12-31
Document Transition Report	false
Entity File Number	001-40956
Entity Registrant Name	Udemy, Inc.
Entity Incorporation, State or Country Code	DE
Entity Tax Identification Number	27-1779864
Entity Address, Address Line One	600 Harrison Street
Entity Address, Address Line Two	3rd Floor
Entity Address, City or Town	San Francisco
Entity Address, State or Province	CA
Entity Address, Postal Zip Code	94107
City Area Code	415
Local Phone Number	813-1710
Title of 12(b) Security	Common Stock, $0.00001 par value
Trading Symbol	UDMY
Security Exchange Name	NASDAQ
Entity Well-known Seasoned Issuer	No
Entity Voluntary Filers	No
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Small Business	false
Entity Emerging Growth Company	false
ICFR Auditor Attestation Flag	true
Entity Shell Company	false
Entity Public Float			$ 803.9
Entity Common Stock, Shares Outstanding		145,359,888
Documents Incorporated by Reference	Portions of the registrant’s Definitive Proxy Statement relating to the registrant’s 2023 Annual Meeting of Stockholders are incorporated by reference into Part III of this Annual Report on Form 10-K where indicated. Such Definitive Proxy Statement will be filed with the Securities and Exchange Commission within 120 days after the end of the registrant’s fiscal year ended December 31, 2022.
Amendment Flag	false
Document Fiscal Period Focus	FY
Document Fiscal Year Focus	2022
Entity Central Index Key	0001607939
Entity Filer Category	Large Accelerated Filer

Audit Information

Audit Information	12 Months Ended
	Dec. 31, 2022
Audit Information [Abstract]
Auditor Name	DELOITTE & TOUCHE LLP
Auditor Location	San Francisco, California
Auditor Firm ID	34

Consolidated Balance Sheets

Consolidated Balance Sheets - USD ($) $ in Thousands	Dec. 31, 2022	Dec. 31, 2021
Current assets:
Cash and cash equivalents	$ 313,685	$ 533,868
Marketable securities	151,687	0
Accounts receivable, net	104,530	73,180
Prepaid expenses and other current assets	14,878	15,927
Deferred contract costs, current	30,234	18,898
Total current assets	615,014	641,873
Property and equipment, net	7,012	9,887
Capitalized software, net	27,412	20,054
Operating lease right-of-use assets	11,377	0
Restricted cash, non-current	3,629	2,900
Deferred contract costs, non-current	35,411	25,647
Strategic investments	12,104	10,000
Intangible assets, net	9,331	13,597
Goodwill	12,646	12,646
Other assets	3,632	3,247
Total assets	737,568	739,851
Current liabilities:
Accounts payable	14,529	34,627
Accrued expenses and other current liabilities	31,247	40,140
Content costs payable	37,310	35,961
Accrued compensation and benefits	22,882	22,341
Operating lease liabilities, current	7,002	0
Deferred revenue, current	273,937	208,274
Total current liabilities	386,907	341,343
Operating lease liabilities, non-current	6,545	0
Deferred revenue, non-current	4,342	2,280
Other liabilities, non-current	464	6,528
Total liabilities	398,258	350,151
Note 10 – Commitments and contingencies
Stockholders' equity:
Preferred stock, $0.00001 par value - 50,000,000 shares authorized; zero shares issued and outstanding as of December 31, 2022, and December 31, 2021.	0	0
Common stock, $0.00001 par value - 950,000,000 shares authorized; 145,013,786 and 139,164,693 shares issued and outstanding as of December 31, 2022, and December 31, 2021, respectively.	1	1
Additional paid-in capital	951,946	848,229
Accumulated other comprehensive loss	(233)	(1)
Accumulated deficit	(612,404)	(458,529)
Total stockholders’ equity	339,310	389,700
Total liabilities and stockholders' equity	$ 737,568	$ 739,851

Consolidated Balance Sheets (Pa

Consolidated Balance Sheets (Parenthetical) - $ / shares	Dec. 31, 2022	Dec. 31, 2021
Statement of Financial Position [Abstract]
Preferred stock, par value (in dollars per share)	$ 0.00001	$ 0.00001
Preferred stock, shares authorized (in shares)	50,000,000	50,000,000
Preferred stock, shares issued (in shares)	0	0
Preferred stock, shares outstanding (in shares)	0	0
Common stock, par value (in dollars per share)	$ 0.00001	$ 0.00001
Common stock, shares authorized (in shares)	950,000,000	950,000,000
Common stock, shares issued (in shares)	145,013,786	139,164,693
Common stock, shares outstanding (in shares)	145,013,786	139,164,693

Consolidated Statements of Oper

Consolidated Statements of Operations - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Income Statement [Abstract]
Revenue	$ 629,097	$ 515,657	$ 429,899
Cost of revenue	275,320	236,024	209,253
Gross profit	353,777	279,633	220,646
Operating expenses
Sales and marketing	301,347	227,023	192,600
Research and development	104,556	66,107	50,643
General and administrative	99,064	64,410	50,783
Total operating expenses	504,967	357,540	294,026
Loss from operations	(151,190)	(77,907)	(73,380)
Other income (expense)
Interest income (expense), net	4,297	(16)	(1,146)
Other income (expense), net	(4,696)	(920)	55
Total other expense, net	(399)	(936)	(1,091)
Net loss before taxes	(151,589)	(78,843)	(74,471)
Income tax provision	(2,286)	(1,183)	(3,149)
Net loss attributable to common stockholders	(153,875)	(80,026)	(77,620)
Net loss attributable to common stockholders	$ (153,875)	$ (80,026)	$ (77,620)
Net loss per share attributable to common stockholders
Basic (in dollars per share)	$ (1.09)	$ (1.46)	$ (2.33)
Diluted (in dollars per share)	$ (1.09)	$ (1.46)	$ (2.33)
Weighted-average shares used in computing net loss per share attributable to common stockholders
Basic (in shares)	140,873,504	54,972,827	33,384,438
Diluted (in shares)	140,873,504	54,972,827	33,384,438

Consolidated Statements of Comp

Consolidated Statements of Comprehensive Loss - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Statement of Comprehensive Income [Abstract]
Net loss	$ (153,875)	$ (80,026)	$ (77,620)
Net loss	(153,875)	(80,026)	(77,620)
Foreign currency translation loss, net of tax	(20)	(1)	0
Change in unrealized gain (loss) on marketable securities, net of tax	(212)	0	0
Comprehensive loss	$ (154,107)	$ (80,027)	$ (77,620)

Consolidated Statements of Rede

Consolidated Statements of Redeemable Convertible Preferred Stock and Stockholders’ Equity (Deficit) - USD ($) $ in Thousands	Total	Series E Preferred Stock	Series F Preferred Stock	Common Stock	Additional Paid-In Capital	Accumulated Other Comprehensive Loss	Accumulated Deficit
Redeemable convertible preferred stock, beginning balance (in shares) at Dec. 31, 2019	79,472,483
Redeemable convertible preferred stock, beginning balance at Dec. 31, 2019	$ 155,645
Increase (Decrease) in Temporary Equity [Roll Forward]
Temporary equity, stock issued during period, shares, new issues (in shares)		2,569,043	3,349,812
Temporary equity, stock issued during period, value, new issues		$ 39,948	$ 78,511
Redeemable convertible preferred stock, ending balance (in shares) at Dec. 31, 2020	85,391,338
Redeemable convertible preferred stock, ending balance at Dec. 31, 2020	$ 274,104
Increase (Decrease) in Temporary Equity [Roll Forward]
Stock issuance costs		$ 52	$ 2,320
Beginning balance (in shares) at Dec. 31, 2019				30,619,605
Beginning balance at Dec. 31, 2019	(225,590)			$ 0	$ 75,293	$ 0	$ (300,883)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Stock-based compensation	32,135				32,135
Exercise of stock options (in shares)				5,007,898
Exercise of stock options	10,383				10,383
Vesting of early exercised stock options	7				7
Cumulative translation adjustment	0
Net loss	(77,620)						(77,620)
Ending balance (in shares) at Dec. 31, 2020				35,627,503
Ending balance at Dec. 31, 2020	$ (260,685)			$ 0	117,818	0	(378,503)
Increase (Decrease) in Temporary Equity [Roll Forward]
Exercise of Series A-1 redeemable convertible preferred stock warrants (in shares)	12,595
Exercise of Series A-1 redeemable convertible preferred stock warrants	$ 163
Conversion of redeemable convertible preferred stock to common stock upon initial public offering (in shares)	(85,403,933)
Conversion of redeemable convertible preferred stock to common stock upon initial public offering	$ (274,267)
Redeemable convertible preferred stock, ending balance (in shares) at Dec. 31, 2021	0
Redeemable convertible preferred stock, ending balance at Dec. 31, 2021	$ 0
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Conversion of redeemable convertible preferred stock to common stock upon initial public offering (in shares)				85,403,933
Conversion of redeemable convertible preferred stock to common stock upon initial public offering	274,267			$ 1	274,266
Issuance of common stock in connection with initial public offering, net of issuance costs and underwriting discount (in shares)				15,150,000
Issuance of common stock in connection with initial public offering, net of issuance costs and underwriting discount	408,416				408,416
Stock-based compensation	36,701				36,701
Exercise of stock options (in shares)				2,921,957
Exercise of stock options	11,028				11,028
Vesting of restricted stock units (in shares)				61,300
Cumulative translation adjustment	(1)					(1)
Net loss	(80,026)						(80,026)
Ending balance (in shares) at Dec. 31, 2021				139,164,693
Ending balance at Dec. 31, 2021	$ 389,700			$ 1	848,229	(1)	(458,529)
Redeemable convertible preferred stock, ending balance (in shares) at Dec. 31, 2022	0
Redeemable convertible preferred stock, ending balance at Dec. 31, 2022	$ 0
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Stock-based compensation	87,152				87,152
Exercise of stock options (in shares)				1,569,999
Exercise of stock options	7,004				7,004
Vesting of restricted stock units (in shares)				3,408,672
Vesting of restricted stock units	307				307
Reclassification of stock appreciation rights	62				62
Issuances of common stock under employee stock purchase plan (in shares)				870,422
Issuance of common stock under employee stock purchase plan	9,192				9,192
Other comprehensive loss	(232)					(232)	0
Cumulative translation adjustment	(20)
Net loss	(153,875)						(153,875)
Ending balance (in shares) at Dec. 31, 2022				145,013,786
Ending balance at Dec. 31, 2022	$ 339,310			$ 1	$ 951,946	$ (233)	$ (612,404)

Consolidated Statements of Re_2

Consolidated Statements of Redeemable Convertible Preferred Stock and Stockholders’ Equity (Deficit) (Parenthetical)) $ in Thousands	12 Months Ended
	Dec. 31, 2020 USD ($)
Series E Preferred Stock
Stock issuance costs	$ 52
Series F Preferred Stock
Stock issuance costs	$ 2,320

Consolidated Statements of Cash

Consolidated Statements of Cash Flows - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Cash flows from operating activities:
Net loss	$ (153,875)	$ (80,026)	$ (77,620)
Adjustments to reconcile net loss to net cash provided by (used in) operating activities:
Depreciation and amortization	21,216	15,297	11,055
Amortization of deferred sales commissions	32,279	17,801	7,486
Stock-based compensation	81,293	34,680	31,618
Allowance for credit losses	960	326	182
Accretion of marketable securities	(896)	0	0
Non-cash operating lease expense	6,205	0	0
Unrealized loss on strategic investments	2,896	0	0
Other	690	0	52
Changes in operating assets and liabilities:
Accounts receivable	(32,309)	(27,000)	(19,632)
Prepaid expenses and other assets	(4)	(9,903)	(3,344)
Deferred contract costs	(53,379)	(36,508)	(18,943)
Accounts payable, accrued expenses and other liabilities	(28,620)	7,272	17,488
Content costs payable	1,349	4,389	6,615
Operating lease liabilities	(6,487)	0	0
Deferred revenue	67,725	66,568	54,667
Net cash provided by (used in) operating activities	(60,957)	(7,104)	9,624
Cash flows from investing activities:
Purchases of marketable securities	(158,503)	0	0
Proceeds from maturities of marketable securities	7,500	0	0
Purchases of property and equipment	(1,564)	(5,335)	(5,180)
Capitalized software costs	(14,160)	(12,868)	(9,357)
Purchases of strategic investments	(5,000)	(10,000)	0
Payments related to business combination, net of cash acquired	(1,500)	(24,490)	0
Net cash used in investing activities	(173,227)	(52,693)	(14,537)
Cash flows from financing activities:
Net proceeds from exercise of stock options	7,149	10,878	10,383
Net proceeds from issuance of redeemable convertible preferred stock	0	2	120,710
Proceeds from share purchases under employee stock purchase plan	9,192	0	0
Payment of redeemable convertible preferred stock issuance costs	0	(2,250)	0
Payment of deferred offering costs	(1,586)	(5,183)	0
Cash proceeds from initial public offering	0	415,187	0
Net cash provided by financing activities	14,755	418,634	131,093
Effect of foreign exchange rates on cash flows	(25)	0	0
Net increase (decrease) in cash, cash equivalents and restricted cash	(219,454)	358,837	126,180
Cash, cash equivalents and restricted cash—Beginning of period	536,768	177,931	51,751
Cash, cash equivalents and restricted cash—End of period	317,314	536,768	177,931
Reconciliation of cash, cash equivalents and restricted cash:
Cash and cash equivalents	313,685	533,868	175,031
Restricted cash	3,629	2,900	2,900
Total cash, cash equivalents and restricted cash	317,314	536,768	177,931
Supplemental disclosures of cash flow information:
Interest paid	23	90	48
Income taxes paid	678	385	154
Supplemental disclosure of non-cash investing and financing activities:
Accrued redeemable convertible preferred stock issuance costs	0	0	2,250
Unpaid deferred offering costs	0	1,586	0
Stock-based compensation in capitalized costs	5,911	2,571	749
Acquisition holdback liability	0	1,500	0
Changes in purchases of property and equipment in accounts payable and accrued expenses	22	(186)	131
Vesting of early-exercised stock options, net	0	0	7
Unrealized losses on marketable securities	$ 213	$ 0	$ 0

Organization and description of

Organization and description of business	12 Months Ended
	Dec. 31, 2022
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Organization and description of business	1. Organization and description of business Description of business Udemy, Inc. (“Udemy” or the “Company”) was incorporated in January 2010 under the laws of the state of Delaware. The Company is headquartered in San Francisco, California. Udemy is a global learning company whose online platform empowers organizations and individuals with flexible and effective skill acquisition and development. The Company’s learning marketplace platform enables tens of thousands of subject matter experts to develop, distribute and enhance content that reaches Udemy’s broad global audience of learners. Udemy leverages technology, data and insights to deliver personalized and effective learning experiences. The Company further curates its highest-quality content from the marketplace for Udemy Business, which enables companies around the world to offer engaging, effective, on-demand learning for all employees, immersive laboratory-style learning for tech teams, and cohort-based learning focused on leadership development.

Summary of significant accounti

Summary of significant accounting policies	12 Months Ended
	Dec. 31, 2022
Accounting Policies [Abstract]
Summary of significant accounting policies	2. Summary of significant accounting policies Basis of consolidation and presentation — The accompanying consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”). The consolidated financial statements include the accounts of the Company and its wholly owned subsidiaries. All intercompany transactions and balances have been eliminated in consolidation, and all other normal and recurring adjustments that are, in the opinion of management, necessary for a fair presentation of the results of the periods presented have been made. Segment information — The Company defines its segments as those operations the chief operating decision maker (“CODM”), determined to be the Chief Executive Officer of the Company, regularly reviews to allocate resources and assess performance. For the fiscal years ended December 31, 2022, 2021, and 2020, the Company operated under two operating and reportable segments: Consumer and Enterprise. The Company continually monitors and reviews its segment reporting structure in accordance with Accounting Standards Codification (“ASC”) Topic 280, Segment Reporting, to determine whether any changes have occurred that would impact its reportable segments. For further information on the Com pany’s segment reporting, see Note 16 – Segment and geographic information. Use of estimates — The preparation of consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the dates of the consolidated financial statements and the results of operations during the reporting periods. Significant estimates and assumptions reflected in the consolidated financial statements include, but are not limited to, allowance for credit losses, capitalization of internally developed software and ass ociated useful lives, stock-based compensation, determination of the income tax valuation allowance and the potential outcome of uncertain tax positions, estimated instructor withholding tax obligations, estimated period of consumption for consumer learners’ single course purchases, the period of benefit for deferred commissions, t he fair value and associated useful lives of intangible assets and goodwill acquired via business combinations, and the valuation of privately-held strategic investments, including impairments. Management periodically evaluates such estimates and assumptions for continued reasonableness. Actual results may ultimately differ from management’s estimates and such differences could be material to the financial position and results of operations. Concentration of credit risk — Financial instruments that potentially subject the Company to concentrations of credit risk consist primarily of cash and cash equivalents, marketable securities, restricted cash, and accounts receivable. For cash and restricted cash, the Company is exposed to credit risk in the event of default by the financial institutions to the extent the amounts recorded on the accompanying consolidated balance sheets are in excess of federal insurance limits. The Company’s investments, classified as cash equivalents and marketable securities, consist of high-credit-quality instruments and fixed-income securities. The Company generally does not require collateral or other security in support of accounts receivable. To reduce credit risk, management performs ongoing evaluations of its customers’ financial condition and maintains an allowance based upon expected credit losses of outstandin g receivables. No customer accounted for more than 10% of total accounts receivable as of December 31, 2022, or December 31, 2021. No customer accounted for more than 10% of total revenue during the fiscal years ended December 31, 2022, 2021, and 2020. Summary of significant ac counting policies Revenue recognition — The Company accounts for revenue under ASC Topic 606, Revenue from Contracts with Customers. The Company’s two sources of revenues are its Consumer and Enterprise business channels. Consumer revenue — The Company generates revenue by selling access to course content on the Udemy platform directly to individual learners. Consumer revenues consist of (i) single course purchases and (ii) consumer subscriptions. All contracts with consumer customers are billed in advance and require payment by the customer prior to accessing any course content, or in the case for new consumer subscription customers, upon expiration of the 7-day free trial. After checkout, consumer customers purchasing a single course receive a lifetime access license to the digital course content in addition to stand-ready access to the Udemy platform online services needed to access the content. Consumer subscription plans offer on-demand access to a library of courses over a subscription term, as well as additional features and functionalities. Consumer revenue transactions are governed by Udemy’s standard terms of use. The time between a customer’s payment and the receipt of funds is not significant. Payment terms are generally fixed and do not include variable consideration. Consumer revenues are recorded net of actual and estimated refunds and exclude any taxes that are collected from learners and remitted to governmental authorities. Consumer revenue arrangements do not include significant obligations associated with warranties. Consumer subscriptions are either one-month or one-year in duration and paid in advance, with new customers able to sign up for a 7-day free trial period. Once the free trial period lapses and advance payment is made, there is no right to a refund (unless otherwise required by applicable law). Subscribers have continuous access to enroll in and consume an unlimited number of curated courses included in the subscription catalog on the platform during the subscription term. Subscribers retain access to the courses in which they enroll for the duration of their subscriptions (including any renewal period), even if the instructor subsequently elects to remove the course from the Company’s subscription programs. The continual access to the platform represents a series of distinct services, as the Company continually provides access to, and fulfills its obligation to, the customer over the contract term. Consumer subscriptions automatically renew at the end of the subscription term. Customers may cancel renewal of their subscription at any point but will retain their access to the platform until the end of the current subscription term. Enterprise revenue — The Company primarily generates revenue by selling subscription licenses to a variety of enterprise and government customers. The Company’s subscription contracts with enterprise customers generally have annual or multi-year contractual terms and consist of a fixed quantity of seat licenses, which allows each seat to access an unlimited number of course enrollments during the contract term. Subscribers retain access to the courses in which they enroll for the duration of their subscriptions (including any renewal period), even if the instructor subsequently elects to remove the course from the Company’s subscription programs. Enterprise contracts are typically evidenced by a fully executed Master Services Agreement with an accompanying executed Order Form specifying the contractual subscription term and pricing. Revenue is recognized ratably over the respective contractual subscription term beginning on the date that the platform is made available to the customer. Standard subscription agreements have auto-renewal clauses, which allow the agreement to continue after the expiration of the initial term. The Company’s standard billing terms are to invoice upfront annually for contracts with terms of one year or longer. For contracts that are less than one year, the Company generally bills in advance on a quarterly or semi-annual basis. The Company recognizes unbilled receivables that relate to consideration for services completed but not billed as of period end. The unbilled receivables are recorded in accounts receivable, net, and were not material for any period presented. Revenue from contracts with customers is recognized when control of promised services is transferred. The amount of revenue recognized reflects the consideration the Company expects to be entitled to receive in exchange for these services. The Company accounts for revenue contracts with customers using the five-step model under ASC Topic 606: 1) Identify the contract with a customer Udemy determines a contract with a customer to exist when the contract is approved, each party’s rights regarding the services to be transferred can be identified, the payment terms for the services can be identified, the customer has the ability and intent to pay, and the contract has commercial substance. At contract inception, the Company evaluates whether two or more contracts should be combined and accounted for as a single contract and whether the combined or single contract includes more than one performance obligation. The Company applies judgment in determining the customer’s ability and intent to pay, which is based on a variety of factors, including the customer’s historical payment experience if available. Consumer customers are generally required to pay in advance using a credit card. Generally, enterprise customers are billed upfront annually for contracts with terms of one year or longer or in advance quarterly or semi-annually for contracts with terms of less than one year. 2) Identify the performance obligations in the contract Performance obligations committed in a contract are identified based on the services that will be transferred to the customer that are both capable of being distinct, whereby the customer can benefit from the service either on its own or together with other resources that are readily available from third parties or from Udemy, and are distinct in the context of the contract, whereby the transfer of the services and the products is separately identifiable from other promises in the contract. Customers do not have the ability to take possession of the software supporting the platform and, as a result, contracts are accounted for as service arrangements. The non-exclusive lifetime access license associated with single course purchases and the licensed content associated with subscriptions are not considered distinct from the Udemy platform, because the course content is significantly integrated, and highly interdependent and interrelated with the platform. Specifically, the learner does not obtain control of the course content’s functionality without the Udemy platform. Accordingly, management concluded there is a single, combined performance obligation, which is customer’s access to the online content on the Udemy platform, representing a series of distinct services as the Company continually provides access to and fulfills its obligation to allow access to licensed content and platform functionality to the learner. 3) Determine the transaction price The transaction price is determined based on the consideration to which Udemy expects to be entitled in exchange for transferring services to the customer. The prices for Consumer and Enterprise, or Udemy Business (“UB”), contracts are fixed at contract inception and do not contain significant estimates related to variable consideration. With respect to single course purchases, consumers may request a full refund within 30 days after the initial purchase transaction. The Company estimates and establishes a refund reserve based on historical refund rates, which has historically been immaterial. None of the Company’s contracts contain a significant financing component. Revenue excludes taxes collected from customers, which are subsequently remitted to governmental entities (e.g., sales and other indirect taxes). 4) Allocate the transaction price to performance obligations in the contract Contracts that contain multiple performance obligations require an allocation of the transaction price to each performance obligation based on each performance obligation’s relative standalone selling price. As access to content is not considered distinct from the Udemy platform hosting services, the transaction price is allocated to a single performance obligation. 5) Recognize revenue when or as performance obligations are satisfied Revenue is recognized at the time the related performance obligation is satisfied by transferring the control of the promised service to a customer. Revenue is recognized in an amount that reflects the consideration that Udemy expects to receive in exchange for those services. Udemy has a stand ready obligation to deliver its services continually throughout the requisite contract period, which is either lifetime access for consumer single course purchases or the contractual subscription term for UB and consumer subscription customers. As such, the Company recognizes revenue on a straight-line basis as it satisfies the performance obligation, using an estimated service period for individual consumer single course purchases and the contractual subscription term for UB and consumer subscription customers. Other than the circumstances noted below, no significant judgment has historically been required in determining the amount and timing of revenue from the Company’s contracts with customers. Principal vs. agent —In order to determine if revenue should be reported gross or net of either payments to third-party instructors or amounts retained by reseller partners who sell access to Enterprise subscription offerings, the Company evaluated whether Udemy acts as the principal in sales of its online course offerings. An entity is the principal if it controls a good or service before it is transferred to the end customer. Key indicators that management evaluated in determining gross versus net treatment included but are not limited to: • the nature of the Company’s promise to the customer, as well as the distinct performance obligation identified; • the underlying contract terms and conditions between the parties to the transaction; • which party is primarily responsible for fulfilling the promise to provide the specified good or service to the end customer; • which party has inventory risk before the specified good or service has been transferred to the end customer; and • which party has discretion in establishing the price for the specified good or service. Based on an evaluation of the above indicators, management determined that the Company is the principal to learners who purchase access to online course content via direct or reseller sales of its consumer and enterprise offerings. The Company controls the promised goods or services (i.e., access to course content via the Udemy platform) before it is transferred to the customer and is primarily responsible for fulfillment with respect to delivering access to course content. The Company is the entity which licenses content to learners as the agreements with instructors grant the Company the right to sub-license content to its learners at its discretion. The Company also has substantial discretion to determine the pricing of its offerings. Therefore, the Company reports the gross purchase price paid by the customer related to these arrangements in the revenue caption of the consolidated statements of operations. The Company records payments to instructors as content costs within cost of revenues, while amounts retained by reseller partners for Enterprise sales are recognized as customer support costs within cost of revenues and deferred sales commissions within sales and marketing, based on the nature of the partnership transaction. Estimated service period for consumer single course purchases —The Company considers a variety of data points when determining the estimated service period for a consumer single course purchase over which revenue is recognized. Quantitative data points considered include, but are not limited to, the average time period between a learner’s purchase date and the last date the learner accesses the purchased content, the average total hours consumed for a given purchase, and the time period over which learner activity stabilizes. Management also considers certain qualitative factors such as the nature of the Company’s consumer offerings, known online trends, and, to the extent publicly available, service periods of competitors’ online content that is similar in nature to those offered by the Company. The Company believes consideration of all of these factors enables the Company to determine the best representation of the time period during which consumer learners access the online course content on the Company’s platform and therefore the service period over which the Company provides services to learners. Determining the estimated service period is subjective and requires management’s judgment. Future usage patterns may differ from historical usage patterns, and the estimated service period may change in the future. The estimated service period for consumer single course purchase transactions is four months from the date of enrollment. The Company records contract liabilities when cash payments are received or due in advance of performance to deferred revenue. Deferred revenue primarily relates to the advance consideration allocated to remaining performance obligations received from customers. The price of subscriptions is fixed at contract inception and the Company’s contracts do not contain significant estimates related to variable consideration. As a result, the amount of revenue recognized in the periods presented from performance obligations satisfied (or partially satisfied) in prior periods was not material. Cost of revenues — Costs of revenues are related to content costs (which are payments to instructors), payment and mobile processing fees, costs associated with the hosting of digital content, employee-related expenses for the customer support organization, including salaries, benefits, stock-based compensation, facilities and other expenses, depreciation of network equipment, and amortization of capitalized software. Advertising costs — Advertising costs are expensed as incurred. Advertising expense is recorded in sales and marketing expenses in the consolidated statements of operations and was $97.0 million, $105.2 million and $110.5 million for the fiscal years ended December 31, 2022, 2021 and 2020. Research and development — Research and development costs are expensed as incurred. Research and development expenses include salaries, benefits, stock-based compensation, costs related to the ongoing management, maintenance, and expansion of features and services offered on the Company’s platform. Research and development costs also include contracted services, supplies, and other miscellaneous expenses. Stock-based compensation — The Company accounts for its stock-based compensation pursuant to ASC Topic 718, Compensation-Stock Compensation, which requires the measurement and recognition of stock-based awards using the estimated fair value of the awards on the date of grant. Stock-based awards include stock options, restricted stock units (“RSUs”), stock appreciation rights (“SARs”), and restricted stock granted to employees, directors, and non-employees, and stock purchase rights granted to employees under the Employee Stock Purchase Plan (“ESPP Rights”). The Company estimates the fair value of RSUs and restricted stock based on the fair value on the date of grant. The Company estimates the fair value of stock options, SARs, and ESPP Rights using the Black-Scholes option-pricing model, which requires the use of the following subjective and complex assumptions: Expected term — For stock options and SARs, the Company has elected to use the midpoint of the vesting term and contractual expiration period to compute the expected term, as the Company does not have sufficient historical information to develop reasonable expectations about future exercise patterns and post-vesting employment termination behavior. For ESPP Rights, the expected term is equal to the purchase periods in a given offering period. Risk-free interest rate — The risk-free interest rate is based on the U.S. Treasury yield curve in effect at the time of grant for zero-coupon U.S. Treasury notes with maturities approximately equal to the award’s expected term. Expected volatility — The Company estimates future expected volatility by considering both the average volatility of a peer group of representative public companies with sufficient trading history and, to the extent available, its historical volatility over the expected term. Dividend yield — The expected dividend was assumed to be zero as the Company has never paid dividends and has no current plans to do so. Stock appreciation rights granted to employees are settled in cash upon exercise. The Company accounts for SARs in the other liabilities, non-current caption in the accompanying consolidated balance sheets. Vested and outstanding SARs are subject to remeasurement at each balance sheet date using the Black-Scholes option-pricing model and the assumptions described above, and any change in fair value is recognized as a component of expense. The Company adjusts the fair value of the liability for vested and outstanding SARs until the earlier of the exercise or expiration of the SARs. For awards with only service-based vesting conditions, the Company recognizes the resulting stock-based compensation on a straight-line basis over the requisite service period of the awards. Stock-based compensation for awards that are subject to performance conditions are attributed separately for each vesting tranche of the award. The Company accounts for forfeitures in the period they occur. Income taxes — The Company accounts for income taxes in accordance with ASC 740, Income Taxes (“ASC 740”), which requires an asset and liability approach in accounting for income taxes. Under this method, the tax provision includes taxes currently due plus the net change in deferred tax assets and liabilities. Deferred tax assets and liabilities arise from the temporary differences between the tax basis of an asset or liability and its reported amount in the consolidated financial statements, as well as from net operating loss and tax credit carryforwards. Deferred tax amounts are determined by using the tax rates expected to be in effect when the taxes will actually be paid or refund received, as provided for under currently enacted tax law. A valuation allowance is provided for the amount of deferred tax assets that, based on available evidence, is not expected to be realized. ASC 740 prescribes a recognition threshold and measurement attributes for financial statement disclosure of tax positions taken or expected to be taken on a tax return. Under this guidance, the impact of an uncertain income tax position on the income tax return must be recognized at the largest amount that is more likely than not to be sustained upon audit by the relevant taxing authority. An uncertain income tax position will not be recognized if it has less than a 50% likelihood of being sustained. The Company recognizes interest accrued related to uncertain tax positions as a component of the provision for income taxes. There was no accrued interest or penalties associated with any uncertain tax positions, nor was any interest expense recognized during the fiscal years ended December 31, 2022, 2021 and 2020. The Company does not currently anticipate that any significant increase or decrease to uncertain tax positions will be recorded during the next twelve months. Translation of foreign currency — The Company’s reporting currency is the U.S. dollar. The Company determines the functional currency for each of its foreign subsidiaries by reviewing their operations and currencies used in their primary economic environments. Assets and liabilities for foreign subsidiaries with functional currency other than U.S. dollar are translated into U.S. dollars at the rate of exchange existing at the balance sheet date. Statements of operations amounts are translated at average exchange rates for the period. Translation gains and losses are recorded in accumulated other comprehensive income (loss) as a component of stockholders’ equity (deficit). Remeasurement gains and losses are included in other income (expense), net in the consolidated statements of operations. Monetary assets and liabilities are remeasured at the exchange rate on the balance sheet date and nonmonetary assets and liabilities are measured at historical exchange rates. Net loss per share attributable to common stockholders — Prior to the completion of the Company’s Initial Public Offering (“IPO”) and the conversion of all outstanding preferred shares into common stock, basic and diluted net loss per share attributable to common stockholders was computed in conformity with the two-class method required for participating securities. The Company considered all series of its redeemable convertible preferred stock to be participating securities as the holders of such stock had the right to receive nonforfeitable dividends on a pari passu basis in the event that a dividend was paid on common stock. Under the two-class method, the net loss attributable to common stockholders was not allocated to the redeemable convertible preferred stock as the preferred stockholders did not have a contractual obligation to share in the Company’s losses. Basic net loss per share is computed by dividing net loss attributable to common stockholders by the weighted-average number of shares of common stock outstanding during the period. Diluted net loss per share is computed by giving effect to all potentially dilutive common stock equivalents to the extent they are dilutive. For purposes of this calculation, common stock options, RSUs, restricted stock, contingently issuable shares under the Company’s ESPP plan, and early exercised common stock options subject to repurchase are considered to be common stock equivalents but have been excluded from the calculation of diluted net loss per share attributable to common stockholders as their effect is anti-dilutive for the periods presented. For the fiscal years ended December 31, 2021 and 2020, outstanding redeemable convertible preferred stock and redeemable convertible preferred stock warrants were also considered to be common stock equivalents, but were excluded from the calculation of diluted net loss per share attributable to common stockholders as their effect was anti-dilutive. Comprehensive loss — Comprehensive loss consists of two components, net loss and other comprehensive loss, net of tax. Other comprehensive loss, net of tax, refers to revenue, expenses, gains, and losses that under GAAP are recorded as an element of stockholders’ equity (deficit) but are excluded from net loss. The Company’s other comprehensive loss for the fiscal year ended December 31, 2022 consisted of changes in unrealized holding losses on available-for-sale securities and foreign currency translation gains and losses. The Company’s other comprehensive income for the fiscal year ended December 31, 2021 consisted of foreign currency translation gains and losses. The Company recorded no other comprehensive income or loss for the fiscal year ended December 31, 2020. Fair value of financial instruments — The Company considers fair value as the exchange price that would be received for an asset or paid to transfer a liability, an exit price, in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants at the measurement date. Valuation techniques used to measure fair value are either observable or unobservable. Observable inputs reflect assumptions that market participants would use in pricing an asset or liability based on market data obtained from independent sources, while unobservable inputs reflect a reporting entity’s pricing based on their own market assumptions. The Company utilizes the following three-level fair value hierarchy to establish the priorities of the inputs used to measure fair value: Level 1— Unadjusted quoted prices in active markets for identical assets or liabilities; Level 2— Inputs are observable, unadjusted quoted prices for similar assets or liabilities in an active market, quoted prices for identical or similar assets or liabilities in markets that are not active, inputs other than quoted prices that are observable and market-corroborated inputs which are derived principally from or corroborated by observable market data; and Level 3— Inputs are derived from valuation techniques in which one or more significant inputs or value drivers are unobservable. The carrying amounts of cash, cash equivalents, restricted cash, accounts receivable, and accounts payable approximate fair value due to the relatively short-term maturities and are classified as short-term assets and liabilities, as appropriate, in the accompanying consolidated balance sheets. The Company’s money market funds and sweep account are classified within Level 1 of the fair value hierarchy because they are valued using quoted prices in active markets. The Company’s investments in U.S. government securities are classified within Level 2 of the fair value hierarchy because they have been valued using inputs other than quoted prices in active markets that are directly or indirectly observable. The Company’s strategic investment is classified within Level 3 of the fair value hierarchy because it has been valued using significant unobservable inputs for which the Company has been required to develop its own assumptions. Cash and cash equivalents — Cash and cash equivalents include on demand deposits, money market funds, and other highly liquid investments with original or remaining maturities of less than 90 days when purchased. Cash equivalents also include amounts in transit from certain payment processors for credit and debit card transactions, which typically settle within five business days. Restricted cash — Restricted cash primarily consists of cash restricted in connection with lease agreements for the Company’s facilities. Restricted cash is included in current assets for leases that expire within one year from the balance sheet date and in non-current assets for leases that expire in more than one year from the balance sheet date. Marketable securities — Marketable securities consist of obligations issued by the U.S. Treasury and other U.S. federal agencies, corporate debt, and commercial paper securities, with an original maturity greater than 90 days at the date of purchase and are classified as available-for-sale securities. As the Company views these securities as available to support current operations, it has classified all available-for-sale securities as current assets. Available-for-sale securities are initially recorded at cost and periodically adjusted to fair value with unrealized gains and losses reported as a component of accumulated other comprehensive income (loss) in stockholders’ equity (deficit), while realized gains and losses are reported within other income (expense), net as a component of net loss. Accounts receivable, net — Accounts receivable primarily represent amounts owed to the Company for Enterprise subscriptions. Also included in accounts receivable are amounts due from payment processors or mobile application store partners that settle over a period longer than five business days. Accounts receivable balances are recorded at the invoiced amount and are non-interest-bearing. Accounts receivable is presented net of allowance for credit losses in the accompanying consolidated balance sheets. The Company maintains an allowance based upon expected credit losses of outstanding receivables. Management derives its estimate using a variety of factors, including historical collection and loss patterns; the current aging of receivables; geographic and other customer-specific credit risk factors; and reasonable and supportable forecasts of future economic conditions which inform adjustments to historical loss patterns. The provision for expected credit losses is recorded in general and administrative expenses in the accompanying consolidated statements of operations. Accounts receivable deemed to be uncollectible are written off, net of expected or actual recoveries. Balance at Beginning of Period Charged to Expenses Charges Utilized/Written-off, N

Revenue recognition

Revenue recognition	12 Months Ended
	Dec. 31, 2022
Revenue from Contract with Customer [Abstract]
Revenue recognition	3. Revenue recognition Deferred revenue — Revenue recognized for the fiscal year ended December 31, 2022 from amounts included in deferred revenue as of December 31, 2021 was $204.4 million. R evenue recognized for the fiscal year ended December 31, 2021 from amounts included in deferred revenue as of December 31, 2020 was $139.5 million. R evenue recognized for the fiscal year ended December 31, 2020 from amounts included in deferred revenue as of December 31, 2019 were $83.4 million. The below table presents a summary of deferred revenue balances by reportable segment (in thousands): December 31, December 31, December 31, December 31, 2022 2021 2020 2019 Deferred revenue: Enterprise $ 219,030 $ 148,966 $ 84,241 $ 40,686 Consumer 59,249 61,588 58,135 47,023 Total deferred revenue $ 278,279 $ 210,554 $ 142,376 $ 87,709 Remaining performance obligations — Remaining performance obligations represent the aggregate amount of the transaction price in contracts for performance obligations not delivered, or partially undelivered, as of the end of the reporting period. Remaining performance obligations primarily relate to unearned revenue from Consumer single course purchase arrangements and unearned and unbilled revenue from multi-year Enterprise subscription contracts with future installment payments at the end of any given period. As of December 31, 2022, the aggregate transaction price for remaining performance obliga tions was $478.7 million, of which 69% is expected to be recognized over the next twelve months and the remainder thereafter. Deferred contract costs — The following table represents a rollforward of the Company’s deferred contract costs (in thousands): Balance at Beginning of Period Additions Amortization Expense Balance at End of Period Fiscal Year Ended December 31, 2022 $ 44,545 $ 53,379 $ (32,279) $ 65,645 Fiscal Year Ended December 31, 2021 $ 25,837 $ 36,509 $ (17,801) $ 44,545 Fiscal Year Ended December 31, 2020 $ 14,380 $ 18,943 $ (7,486) $ 25,837

Investments and fair value meas

Investments and fair value measurements	12 Months Ended
	Dec. 31, 2022
Fair Value Disclosures [Abstract]
Investments and fair value measurements	4. Investments and fair value measurements The Company’s assets and liabilities that are measured at fair value on a recurring or nonrecurring basis within the fair value hierarchy are as follows (in thousands): As of December 31, 2022 Level 1 Level 2 Level 3 Cash equivalents: Money market funds $ 130,377 $ — $ — U.S. government securities — 48,900 — Total cash equivalents $ 130,377 $ 48,900 $ — Marketable securities: U.S. government securities $ — $ 151,687 $ — Non-current assets: Strategic investments $ — $ — $ 12,104 Non-current liabilities: Cash settled stock appreciation rights $ — $ — $ 462 As of December 31, 2021 Level 1 Level 2 Level 3 Non-current assets: Strategic investments $ — $ — $ 10,000 Non-current liabilities: Cash settled stock appreciation rights $ — $ — $ 818 A summary of the changes in the fair value of Level 3 financial instruments, of which remeasurement of SARs, remeasurement of redeemable convertible preferred stock warrants, and strategic investment impairment are recognized in the consolidated statements of operations, is as follows (in thousands): Warrants Stock Appreciation Rights Strategic Investments Balance— December 31, 2019 $ 108 $ 36 $ — Change in fair value of redeemable convertible preferred stock warrants 52 — — Vesting and remeasurement of SARs, net — 232 — Balance— December 31, 2020 160 268 — Exercise of redeemable convertible preferred stock warrants (160) — — Vesting and remeasurement of SARs, net — 550 — Purchases of strategic investments — — 10,000 Balance— December 31, 2021 — 818 10,000 Vesting and remeasurement of SARs, net — (294) — Purchases of strategic investments — — 5,000 Amount reclassified from liability to equity upon exchange — (62) — Unrealized loss on strategic investments — — (2,896) Balance— December 31, 2022 $ — $ 462 $ 12,104 During the fiscal year ended December 31, 2021, the remaining outstanding 12,595 warrants to purchase Series A-1 redeemable convertible preferred stock were exercised for an immaterial amount of cash proceeds at an exercise price of $0.196 per share. The Company reclassified the $0.2 million fair value of the warrants into Series A-1 redeemable convertible preferred stock on the consolidated balance sheet. The change in fair value of the warrants during fiscal year ended December 31, 2021 was immaterial.

Consolidated balance sheet comp

Consolidated balance sheet components	12 Months Ended
	Dec. 31, 2022
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Consolidated balance sheet components	5. Consolidated balance sheet components Cash, cash equivalents, and marketable securities — The amortized cost, unrealized gains and losses, and estimated fair value of cash, cash equivalents, and marketable securities consisted of the following (in thousands): As of December 31, 2022 Amortized Cost Unrealized Gains Unrealized Losses Fair Value Cash and cash equivalents: Cash $ 134,408 $ — $ — $ 134,408 Money market funds 130,377 — — 130,377 U.S. government securities 48,899 4 (3) 48,900 Total cash and cash equivalents 313,684 4 (3) 313,685 Marketable securities: U.S. government securities 151,900 30 (243) 151,687 Total cash, cash equivalents, and marketable securities $ 465,584 $ 34 $ (246) $ 465,372 Cash equivalents and marketable securities in an unrealized loss position consisted of the following (in thousands): December 31, 2022 Fair Value Gross Unrealized Losses Cash equivalents: U.S. government securities $ 24,960 $ (3) Marketable securities: U.S. government securities 59,057 (243) Total securities in an unrealized loss position $ 84,017 $ (246) Realized gains and losses reclassified from accumulated other comprehensive loss to other income (expense), net were zero for the fiscal year ended December 31, 2022. No securities had been in a continuous unrealized loss position for twelve months or longer as of December 31, 2022. The Company does not intend to sell available-for-sale marketable debt securities in unrealized loss positions, and it is more likely than not that the Company will hold these securities until maturity or recovery of the cost basis. As of December 31, 2022, the Company did not have an allowance for credit losses related to its available-for-sale debt securities due to a zero loss expectation for the portfolio which consists solely of U.S. government securities. As of December 31, 2022, the entirety of the Company’s marketable securities portfolio had remaining contractual maturities of one year or less. Prepaid expenses and other current assets — Prepaid expenses and other current assets consisted of the following (in thousands): December 31, December 31, 2022 2021 Prepaid expenses $ 10,512 $ 12,465 Capitalized cloud computing costs, current 941 808 Short term deposits 181 745 Other current assets 3,244 1,909 Prepaid expenses and other current assets $ 14,878 $ 15,927 Property and equipment, net — Property and equipment, net consisted of the following (in thousands): December 31, December 31, 2022 2021 Computers and equipment $ 7,820 $ 6,798 Furniture and fixtures 4,870 4,701 Purchased software 383 383 Leasehold improvements 19,109 18,932 Construction in progress — 18 Total property and equipment 32,182 30,832 Less accumulated depreciation and amortization (25,170) (20,945) Property and equipment, net $ 7,012 $ 9,887 Depreciation expense w as $4.3 million, $4.5 million, and $4.2 million for the fiscal years ended December 31, 2022, 2021, and 2020, respectively. Capitalized software, net — Capitalized software, net consisted of the following (in thousands): December 31, December 31, 2022 2021 Capitalized software $ 63,748 $ 43,804 Less accumulated amortization (36,336) (23,750) Capitalized software, net $ 27,412 $ 20,054 Amortization expense of capitalized software was $12.6 million, $9.3 million, and $6.9 million for the fiscal years ended December 31, 2022, 2021, and 2020, respectively. As of December 31, 2022, expected amortization expense for capitalized software over the remaining asset lives was as follows (in thousands): 2023 $ 13,975 2024 9,651 2025 3,786 Total expected amortization $ 27,412

Leases

Leases	12 Months Ended
	Dec. 31, 2022
Leases [Abstract]
Leases	6. Leases The Company adopted Topic 842 as of January 1, 2022 using the modified retrospective approach. The Company leases real estate facilities under non-cancelable operating leases with various expiration dates through fiscal year 2026. During the fiscal year ended December 31, 2022, the Company recorded operating lease costs of $6.8 million and variable lease costs of $0.8 million. During the fiscal year ended December 31, 2022, the Company recognized an immaterial amount for short term lease expense and no sublease income. The following tables set forth a summary of information pertaining to the Company’s operating leases (dollar amounts in thousands): Fiscal Year Ended Cash paid for amounts included in the measurement of operating lease liabilities, net of lease incentives $ 6,740 December 31, 2022 Weighted average remaining term (years) 2.0 Weighted average discount rate 3.8 % Future minimum lease payments under noncancellable operating leases with initial lease terms in excess of one year as of December 31, 2022, were as follows (in thousands): 2023 $ 7,135 2024 5,770 2025 809 2026 410 Gross lease payments 14,124 Less imputed interest (578) Present value of operating lease liabilities $ 13,546 Future minimum lease payments as measured under Topic 840 for noncancellable operating leases as of December 31, 2021, were as follows (in thousands): 2022 $ 7,826 2023 7,212 2024 5,921 2025 809 2026 410 Total lease commitments $ 22,178

Business combinations

Business combinations	12 Months Ended
	Dec. 31, 2022
Business Combination and Asset Acquisition [Abstract]
Business combinations	7. Business combinations On August 24, 2021, the Company completed its acquisition of CorpU, an online learning platform and content catalog focused on blended executive training. The acquisition is intended to deepen the Company’s UB offerings through CorpU’s cohort-based learning in scalable, virtual environments. The transaction has been accounted for as a business combination. The purchase price was $28.6 million, of which $27.1 million was paid at closing. The remaining balance of $1.5 million was paid during the fiscal year ended December 31, 2022 . The Company issued 61,300 shares of restricted common stock to a former executive of CorpU, which is not included in the calculation of the acquisition purchase price and is accounted for as post-acquisition stock-based compensation over a three-year term. The total purchase consideration of the CorpU acquisition was allocated to the tangible and intangible assets acquired, and liabilities assumed, based upon their respective fair values as of the date of the acquisition. Management determined the preliminary fair values based on a number of factors, including a valuation from an independent third-party valuation firm. The excess of the purchase price over the net assets acquired was recorded as goodwill. Goodwill is attributable t o the assembled workforce and anticipated synergies arising from the acquisition, and has been allocated to the Enterprise reporting segment for the purposes of annual impairment testing. The goodwill recorded in the acquisition is not expected to be deductible for income tax purposes. The assets acquired and liabilities assumed were recorded at fair value as follows (in thousands): Cash and cash equivalents $ 2,641 Accounts receivable, net 250 Prepaid expenses and other current assets 67 Property and equipment, net 133 Intangible assets 15,100 Goodwill 12,646 Accounts payable and other liabilities (596) Deferred revenue (1,610) Total acquisition consideration $ 28,631 The Company has included the financial results of CorpU in the consolidated financial statements from the date of acquisition, which for the fiscal years ended December 31, 2022 and 2021 were not material. The business combination does not qualify as an acquisition of a significant business, and therefore pro forma financial statements were not required.

Intangible assets, net and good

Intangible assets, net and goodwill	12 Months Ended
	Dec. 31, 2022
Goodwill and Intangible Assets Disclosure [Abstract]
Intangible assets, net and goodwill	8. Intangible assets, net and goodwill As of December 31, 2022, intangible assets, net acquired as part of the CorpU business combination were as follows (in thousands): Estimated Useful Lives Intangible Assets, Gross Accumulated Amortization Intangible Assets, Net Customer relationships 6 years $ 5,500 $ (1,239) $ 4,261 Vendor relationships 3 years 4,500 (2,028) 2,472 Developed technology 3 years 4,200 (1,893) 2,307 Tradename 2 years 900 (609) 291 Total $ 15,100 $ (5,769) $ 9,331 As of December 31, 2021, intangible assets, net acquired as part of the CorpU business combination were as follows (in thousands): Estimated Useful Lives Intangible Assets, Gross Accumulated Amortization Intangible Assets, Net Customer relationships 6 years $ 5,500 $ (323) $ 5,177 Vendor relationships 3 years 4,500 (529) 3,971 Developed technology 3 years 4,200 (493) 3,707 Tradename 2 years 900 (158) 742 Total $ 15,100 $ (1,503) $ 13,597 Amortization expense of intangible assets for the fiscal years ended December 31, 2022 and 2021 was $4.3 million and $1.5 million, respectively. The Company did not have any intangible assets as of December 31, 2020. The expected future amortization expense for intangible assets as of December 31, 2022 was as follows (in thousands): 2023 $ 4,108 2024 2,795 2025 917 2026 917 2027 594 Total expected amortization $ 9,331

Accrued expenses and other curr

Accrued expenses and other current liabilities	12 Months Ended
	Dec. 31, 2022
Payables and Accruals [Abstract]
Accrued expenses and other current liabilities	9. Accrued expenses and other current liabilities Accrued expenses and other current liabilities consist of the following (in thousands): December 31, December 31, 2022 2021 Accrued expenses $ 8,494 $ 7,326 Indirect tax reserves 6,627 18,392 Indirect tax payables 9,137 10,786 Deferred rent, current — 803 Other current liabilities 6,989 2,833 Accrued expenses and other current liabilities $ 31,247 $ 40,140 Indirect tax payables relate to amounts collected from customers on behalf of third-party taxing authorities, primarily on sales in the U.S. and in international jurisdictions. Indirect tax payables also include withholding taxes on payments made to the Company’s instructors before remitting these amounts to the taxing authorities. As of December 31, 2022, indirect tax reserves consist of the residual interest payable on the Company’s instructor withholding tax reserves and other indirect tax reserves. Instructor withholding tax reserves — The Company conducts operations in many tax jurisdictions throughout the United States and the rest of the world. The Company has an obligation to comply with information reporting and tax withholding requirements with regards to certain payments made to its U.S. and non-U.S. instructors. Under United States federal tax rules, in the case where the Company withholds less than the correct amount of tax or fails to report it, it is liable for the correct amount that it was required to withhold, plus interest and potential penalties. The Company may be entitled to relief on certain payments if the Company can obtain documentation (e.g. taxpayer identification forms) from instructors establishing that the instructor payee qualifies for reduced withholding tax rates, or that the instructor payee reported the payments and paid the corresponding taxes owed. Prior to March 2020, the Company had not obtained appropriate taxpayer identification forms from instructors, nor remitted applicable tax withholding amounts to the U.S. Internal Revenue Service (“IRS”) where required. In accordance with GAAP, the Company recorded a provision for its tax exposure when it was both probable that a liability had been incurred and the amount of the exposure could be reasonably estimated. Given the significant quantity of instructor payments that the Company makes in its operations, the Company had applied a statistical sampling approach that is analogous to methods commonly used by the IRS during IRS audits when determining the extent of withholding tax obligations for the historical instructor payments. Beginning in March 2020, the Company began collecting appropriate taxpayer identification forms from its instructors, assessing whether the forms justified a reduced rate of withholding or withholding exemption, and remitting withholding tax payments to the IRS where required. The Company also began reporting payments to its non-U.S. instructors and the IRS annually where required to do so. In 2020, the Company approached the IRS to address the historical tax withholding amounts for instructors and engaged in a voluntary disclosure program. As of December 31, 2022, the Company has filed all outstanding withholding tax returns and has paid the associated tax obligation to the IRS. The estimated interest associated with the reserve is still outstanding. Changes in the estimated amount the Company has determined it will owe are recorded in general and administrative expenses in the accompanying consolidated statements of operations. Estimated interest is recorded in interest income (expense), net in the accompanying consolidated statement of operations. Changes to the instructor withholding tax reserve are as follows (in thousands): Fiscal Year Ended December 31, 2022 2021 2020 Balance, beginning of period $ 17,036 $ 22,166 $ 20,926 Amounts charged to (released from) expense (781) (5,130) 2,826 Net payments and settlements (13,727) — (1,586) Balance, end of period $ 2,528 $ 17,036 $ 22,166

Commitments and contingencies

Commitments and contingencies	12 Months Ended
	Dec. 31, 2022
Commitments and Contingencies Disclosure [Abstract]
Commitments and contingencies	10. Commitments and contingencies Noncancellable purchase commitments — The Company has contractual commitments with its cloud infrastructure provider, network service providers and paid advertising vendors that are noncancellable. Future noncancellable commitments under these arrangements as of December 31, 2022 were as follows (in thousands): 2023 $ 24,333 2024 15,860 2025 21,000 Total purchase commitments (1) $ 61,193 (1) Includes $45.0 million of non-cancelable contractual commitments as of December 31, 2022 related to the Company's third-party cloud infrastructure agreement, under which the Company committed to spend an aggregate of at least $45.0 million between January 2023 and December 2025, with a $12.0 million minimum purchase commitment each year. The Company is required to pay the residual difference if it fails to meet the aggregate minimum purchase commitment by December 2025. Indemnification — The Company enters into indemnification provisions under agreements with other parties in the ordinary course of business, including certain business partners, investors, contractors, and the Company’s officers, directors, and certain employees. The Company has agreed to indemnify and defend the indemnified party’s claims and related losses suffered or incurred by the indemnified party resulting from actual or threatened third-party claims because of the Company’s activities or, in some cases, non-compliance with certain representations and warranties made by the Company. In general, the Company does not record any liability for these indemnities in the accompanying consolidated balance sheets as the amounts cannot be reasonably estimated and are not considered probable. The Company does, however, accrue for losses for any known contingent liability, including those that may arise from indemnification provisions, when future payment is probable. To date, losses recorded in the Company’s consolidated statements of operations in connection with the indemnification provisions have not been material. Litigation — From time to time, in the ordinary course of business, the Company is subject to legal proceedings, claims, investigations, and other proceedings, including claims of alleged infringement of third-party patents and other intellectual property rights, and commercial, employment, and other matters. In accordance with generally accepted accounting principles, the Company makes a provision for a liability when it is both probable that a liability has been incurred and the amount of the loss can be reasonably estimated. These provisions are reviewed at least annually and adjusted to reflect the impacts of negotiations, settlements, rulings, advice of legal counsel, and other information and events pertaining to a particular case. The outcome of such litigation is not expected to have a material effect on the financial position, results of operation and cash flows of the Company. The Company has recorded an immaterial amount related to all outstanding litigation matters in the accompanying consolidated balance sheets, within accrued expenses and other current liabilities as of December 31, 2022, and other liabilities, non-current as of December 31, 2021.

Income taxes

Income taxes	12 Months Ended
	Dec. 31, 2022
Income Tax Disclosure [Abstract]
Income taxes	11. Income taxes The domestic and foreign components of income (loss) before provision for income taxes consisted of the following (in thousands): Fiscal Year Ended December 31, 2022 2021 2020 Domestic $ (155,528) $ (80,243) $ (77,212) Foreign 3,939 1,400 2,741 Total net loss before taxes $ (151,589) $ (78,843) $ (74,471) The provision for income taxes consisted of the following (in thousands): Fiscal Year Ended December 31, 2022 2021 2020 Current: Federal $ — $ — $ — State 45 183 63 Foreign 2,241 1,149 2,937 Total current income tax expense 2,286 1,332 3,000 Deferred: Federal — — — State — — — Foreign — (149) 149 Total deferred income tax expense — (149) 149 Total provision for income taxes $ 2,286 $ 1,183 $ 3,149 The Company had an effective tax rate of (1.51)%, (1.50)%, and (4.23)% for the fiscal years ended December 31, 2022, 2021, and 2020, respectively. The difference between the 21% statutory federal tax rate and the effective tax rate was primarily a result of income earned in jurisdictions with higher statutory tax rates, foreign withholding taxes, and tax credits offset by change in valuation allowance. The reconciliation between the statutory federal income tax rate and the Company’s effective tax rate as a percentage of loss before income taxes is as follows: Fiscal Year Ended December 31, 2022 2021 2020 Federal tax expense 21.00 % 21.00 % 21.00 % State taxes, net of federal benefit 1.24 % 1.07 % 1.17 % Foreign rate differential (0.33) % (0.12) % (0.32) % Withholding taxes (0.60) % (0.78) % (3.06) % Nondeductible compensation (2.52) % (5.29) % — % Stock-based compensation (3.18) % 0.27 % (1.94) % Change in valuation allowance (21.41) % (34.54) % (21.16) % Research and development credits 4.69 % 16.87 % — % Other (0.40) % 0.02 % 0.08 % Effective tax rate (1.51) % (1.50) % (4.23) % Significant components of the net deferred tax assets (liabilities) for the fiscal years ended December 31, 2022 and 2021, consisted of the following (in thousands): December 31, December 31, 2022 2021 Deferred tax assets: Accruals and reserves $ 5,107 $ 4,795 Deferred revenue 61,285 45,268 Net operating loss 30,047 42,008 Research and development tax credits 20,412 13,301 Stock-based compensation expense 7,995 2,952 Indirect tax reserves 1,496 4,107 Property and equipment, net 2,031 1,799 Capitalized research and development costs 23,475 — Operating lease liabilities 2,767 — Other 491 351 Gross deferred tax assets 155,106 114,581 Valuation allowance (129,453) (97,010) Total deferred tax assets 25,653 17,571 Deferred tax liabilities: Deferred contract costs (14,814) (10,009) Operating lease right-of-use assets (2,245) — Other deferred tax liabilities (8,594) (7,562) Total deferred tax liabilities (25,653) (17,571) Net deferred tax liabilities $ — $ — A valuation allowance is provided for deferred tax assets where the recoverability of the assets is uncertain. The determination to provide a valuation allowance is dependent upon the assessment of whether it is more likely than not that sufficient future taxable income will be generated to utilize the deferred tax assets. As of December 31, 2022 and December 31, 2021, the Company has established a valuation allowance of $129.5 million and $97.0 million, respectively, against its gross deferred tax assets due to the uncertainty surrounding the realization of such assets. The change in total valuation allowance from 2021 to 2022 was an increase of $32.5 million. As of December 31, 2022, the Company had $132.7 million of federal net operating loss (“NOL”) carryforwards. $44.5 million of federal NOL carryforwards generated in taxable years beginning prior to January 1, 2018 begin expiring in 2030, if not utilized. $88.2 million of federal NOL carryforwards generated in taxable years beginning after December 31, 2017 have an indefinite carryforward period, but are subject to the 80% deduction limitation based upon pre-NOL deduction taxable income. As of December 31, 2022, the Company had $31.7 million of state NOL carryforwards. The state NOL carryforwards begin expiring in 2030, if not utilized. As of December 31, 2022, the Company had U.S. federal and state research and development tax credit carryforwards of $15.5 million and $12.3 million, respectively. The federal research and development tax credit carryforwards will expire in various amounts beginning in 2035 while the state research and development tax credit carryforwards can be carried forward indefinitely. The United States enacted the Tax Cuts and Jobs Act in December 2017, which requires companies to capitalize all their research and development costs for U.S. tax purposes, including software development costs, incurred in tax years beginning after December 31, 2021. Beginning in 2022, the Company began capitalizing and amortizing research and development costs over a five-year period for domestic research and a fifteen-year period for international research rather than expensing these costs. The utilization of the Company’s net operating losses may be subject to a limitation due to the “ownership change” provisions under Section 382 of the Internal Revenue Code and similar state and foreign provisions. Such limitation may result in the expiration of the net operating loss carryforwards generated before 2018 prior to their utilization. The Company has performed a recent Section 382 study as of December 31, 2022 to determine any potential Section 382 limitations on the utilization of its net operating loss carryforwards and tax credit carryforwards and has determined that no additional ownership changes have occurred since November 2012. The Company experienced two ownership changes with the Company’s Series A and A-1 redeemable convertible preferred stock offering in September 2011 and with the Company’s Series B redeemable convertible preferred stock offering in November 2012. The Company has estimated that the gross U.S. federal NOL carryforwards from 2010 to 2012 that would be subject to limitation are approximately $3.4 million. For the fiscal year ended December 31, 2021, the Company performed a Section 382 study to determine any potential Section 382 limitations on the utilization of the acquired federal NOLs from the business combination of CorpU. The Company determined that CorpU experienced an ownership change in May 2013 and therefore, the federal gross NOL carry forwards of $20.7 million would be subject to limitation. The $3.2 million of acquired NOL carryforwards subject to the Section 382 limitation will expire unutilized, therefore the deferred tax asset associated with such NOLs were written off. Uncertain tax positions — As of December 31, 2022 and 2021, the Company had gross unrecognized tax benefits of $5.3 million and $3.6 million, respectively, related to federal and state research and development tax credits. The Company has performed a research and development tax credit study and has reserved against a portion of its federal and state research and development tax credit carryforwards. The Company’s tax position of such credits is not more likely than not to be sustained upon examination. The Company has recorded an uncertain tax position related to the deferred tax asset recognized for these credits. A reconciliation of the beginning and ending balance of unrecognized tax benefit is as follows (in thousands): Fiscal Year Ended December 31, 2022 2021 2020 Gross unrecognized tax benefits at the beginning of the year $ 3,608 $ 10,580 $ 146 Increases (decreases) related to prior year tax positions 224 (7,892) 7,006 Increases related to current year tax positions 1,478 920 3,428 Statute of limitations expirations — — — Gross unrecognized tax benefits at the end of the year $ 5,310 $ 3,608 $ 10,580 The Company is currently unaware of uncertain tax positions that could result in significant additional payments, accruals, or other material deviations in the next 12 months. The Company currently does not record interest and penalties, if any, related to unrecognized tax benefits. None of the unrecognized tax benefits as of December 31, 2022, if recognized in a future period, would affect the Company’s effective tax rate. The Company files income tax returns in U.S. federal, and certain state and foreign jurisdictions with varying statutes of limitations. Due to NOL carryforwards and tax credit carryforwards, the statutes of limitations remain open for tax years from inception of the Company through the fiscal year ended December 31, 2022. There are currently no income tax audits underway by U.S. federal or state jurisdictions. There are income tax audits in Turkey and India that began in 2022 but no notices or assessments have been issued at this time. The Company intends to indefinitely reinvest any future undistributed foreign earnings outside the United States and therefore such earnings will not be subject to U.S. federal or state, or foreign withholding tax. The Company has prepared an analysis of the repatriation of earnings outside of the U.S. and has determined that the potential tax in connection with such repatriation is approximately $0.3 million.

Employee retirement plan

Employee retirement plan	12 Months Ended
	Dec. 31, 2022
Retirement Benefits [Abstract]
Employee retirement plan	12. Employee retirement plan The Company maintains a 401(k) retirement savings plan covering eligible employees. Employee contributions to the plan consist of a percentage based on eligible employee compensation. The Company matches 25% of an employ ee’s contribution up to 6% of the employee’s compensation, with a cap of $500 annually, subject to a two-year graded vesting schedule that vests 50% after an employee’s first year of employment and 100% after two years of employment. The Company contributed $0.5 million, $0.4 million, and $0.2 million for the fiscal years ended December 31, 2022, 2021, and 2020, respectively.

Related party transactions

Related party transactions	12 Months Ended
	Dec. 31, 2022
Related Party Transactions [Abstract]
Related party transactions	13. Related party transactions Naspers Ltd. (“Naspers”), through an investment entity controlled by Prosus N.V. (“Prosus”), beneficially owns more than 5% of the Company’s outstanding capital stock. A current member of the Company’s Board of Directors is an executive officer of a Prosus operating subsidiary, OLX Global B.V. A former member of the Company’s Board of Directors, who resigned in September 2022, was an executive officer of Prosus. Naspers and cer tain entities directly and indirectly controlled by Naspers are customers of the Company’s Enterprise subscription offering. The Company recorded $1.5 million, $1.5 million, and $1.3 million of revenue from services provided to these customers during the fiscal years ended December 31, 2022, 2021, and 2020. As of December 31, 2022 and 2021 the Company had an accounts receivable balance with these customers of $0.1 million and $0.1 million, respectively. Insight Partners, where a member of the Company’s Board of Directors is a Managing Director, is affiliated with certain vendors that the Company has contracted to provide technology and software solutions. During the fiscal years ended December 31, 2022, 2021, and 2020, the Company recorded $0.9 million, $0.9 million, and $0.3 million, respectively, of expense with these vendors. As of December 31, 2022 and 2021 the Company had an accounts payable balance with these vendors of zero and $0.1 million, respectively.

Stockholders' equity

Stockholders' equity	12 Months Ended
	Dec. 31, 2022
Share-Based Payment Arrangement [Abstract]
Stockholders' equity	14. Stockholders' equity Preferred stock — In connection with the IPO, the Company’s amended and restated certificate of incorporation became effective, which authorized the issuance of 50,000,000 shares of undesignated preferred stock with a par value of $0.00001 per share with rights and preferences, including voting rights, designated from time to time by the board of directors. Common stock — Common stockholders are entitled to one vote per share. As of December 31, 2022 and 2021 , there were 16,178,101 and 2,545,051 RSUs outstanding as detailed in the RSU activity table below. As of December 31, 2022 and 2021 , there wer e 10,333,771 and 20,342,259 outstanding st ock options to purchase common stock as detailed in the stock options activity tables below. Additionally, the Company had the following common stock available for future issuances of stock-based awards: December 31, December 31, 2022 2021 Shares available for future issuance under: 2021 Equity Incentive Plan 2,814,126 11,417,359 2021 Employee Stock Purchase Plan 1,929,578 2,800,000 Total shares of common stock available for future issuance 4,743,704 14,217,359 Equity incentive plans — In 2010, the Company adopted the 2010 Equity Incentive Plan (the “2010 Plan”). The 2010 Plan provided for incentive stock options (“ISOs”), non-statutory stock options (“NSOs”, collectively with ISOs, “stock options”), SARs, restricted stock, and restricted stock units (“RSUs”) to be granted to eligible employees, directors, and consultants. The 2010 Plan was terminated in October 2021 in connection with the IPO but continues to govern the terms and conditions of the outstanding awards granted pursuant to the 2010 Plan. No further equity awards will be granted under the 2010 Plan. The Company adopted the 2021 Equity Incentive Plan (the "2021 Plan") in September 2021, which became effective on October 28, 2021 (collectively with the 2010 Plan, the “Equity Incentive Plans”) and was approved by the Company’s stockholders. The 2021 Plan provides for the granting of ISOs, NSOs, SARs, restricted stock, RSUs, and performance awards to eligible employees, directors, and consultants. The Company initially reserved 13,800,000 shares for issuance under the 2021 Plan. The amount available for issuance is subject to an annual increase on the first day of each calendar year, beginning on January 1, 2023, in an amount equal to 5% of the outstanding shares of the Company’s common stock on the last day of the immediately preceding calendar year or a lesser amount determined by the Company’s Board of Directors or compensation committee. The amount available for issuance shall also include Returning Shares, which are any shares subject to awards granted under the 2010 Plan that, on or after October 29, 2021, expire or otherwise terminate without having been exercised in full, are tendered to or withheld by the Company for payment of an exercise price or for tax withholding obligations, or are forfeited to or repurchased by the Company due to failure to vest. Equity Exchange — On July 11, 2022, the Company launched an equity exchange program (the “Equity Exchange”) in which eligible employees and executives were able to exchange certain outstanding stock options and SARs, whether vested or unvested, with a per share exercise price equal to or greater than $11.13, for RSUs on a one-for-one basis. Upon expiration of the offer to exchange on August 6, 2022, 6,958,544 stock options and SARs (collectively, the “Exchanged Awards”) were canceled and immediately exchanged for an equivalent number of new RSUs, representing a participation rate by eligible awards of approximately 97%. The incremental stock-based compensation expense associated with the Equity Exchange was calculated as the excess of the fair value of each new RSU awarded, as measured on the date exchanged, over the fair value of the corresponding Exchanged Awards, as measured immediately prior to the exchange closing on August 6, 2022. The fair value of the new RSUs was estimated using the fair value of the Company’s common stock on the exchange date. The following table summarizes the weighted-average assumptions used in the Black-Scholes option-pricing model to estimate the fair value of the Exchanged Awards as of August 6, 2022: Risk-free interest rate 3.0% Expected volatility 68.6% Expected life (in years) 4.9 Expected dividend yield —% The Company will recognize the $45.7 million of incremental stock-based compensation expense associated with the modification, as well as the remaining unrecognized expense associated with the Exchanged Awards at the time of the exchange, on a straight-line basis over the requisite service period for the new RSUs, adjusted as needed for those new RSUs issued for certain Exchanged Awards whose per share exercise prices were lower than the Company’s stock price at the exchange date. The requisite service periods for the new RSUs are determined by the per share exercise price of the corresponding Exchanged Awards, ranging from two Stock options — The Company may grant stock options at exercise prices not less than the fair market value at the date of grant. These options generally expire 10 years from the date of grant. The Company recognizes stock-based compensation expense on a straight-line basis over the requisite service period for each award, which is generally even over four years. The following is a summary of activity for stock options under the Equity Incentive Plans: Options Outstanding Weighted Average Exercise Price Weighted Average Remaining Contractual Term Aggregate Intrinsic Value Balance - December 31, 2021 19,942,259 $ 9.70 8.14 $ 226,350 Granted — — Exercised (1,569,999) 4.46 Canceled in connection with the Equity Exchange (6,762,489) 18.62 Canceled (1,326,000) 13.23 Balance - December 31, 2022 10,283,771 $ 4.18 6.38 $ 66,234 Vested & expected to vest as of December 31, 2022 10,283,771 $ 4.18 6.38 $ 66,234 Exercisable as of December 31, 2022 8,770,918 $ 3.91 6.26 $ 58,562 There were no stock options granted during the fiscal year ended December 31, 2022. The weighted average grant date fair values of stock options granted during the fiscal years ended December 31, 2021 and 2020 were $16.01 and $5.48 per share, respectively. Total aggregate intrinsic value of options exercised during the fiscal years ended December 31, 2022, 2021, and 2020 was $13.7 million, $59.7 million, and $34.8 million, respectively. As of December 31, 2022, total unrecognized stock-based compensation expense related to unvested stock options was $5.5 million, which will be recognized over a weighted average period of 0.9 years. The Company estimates the fair value of stock-based compensation for stock options by utilizing the Black-Scholes option-pricing model, which is dependent upon several variables, such as the expected option term, expected volatility of the Company’s stock price over the expected term, expected risk-free interest rate over the expected option term, and expected dividend yield rate over the expected option term. These amounts are estimates and, thus, may not be reflective of actual future results, nor amounts ultimately realized by recipients of these grants. The calculation of grant date fair value of stock options was based on the following weighted average assumptions: Fiscal Year Ended December 31, 2021 2020 Risk-free interest rate 1.0 % 0.5 % Expected volatility 60.5 % 57.3 % Expected life (in years) 6.0 5.9 Expected dividend yield — % — % Stock appreciation rights — The Company may grant SARs at exercise prices not less than the fair market value at the date of grant. The SARs are liability-classified awards that generally expire 10 years from the date of grant. The Company recognizes stock-based compensation expense on a straight-line basis over the requisite service period for each award, which is generally even over four years. Refer to Note 2 “Summary of Significant Accounting Policies—Stock-Based Compensation” for more information. The following is a summary of activity for SARs under the Equity Incentive Plans: SARs Outstanding Weighted Average Exercise Price Weighted Average Remaining Contractual Term Aggregate Intrinsic Value Balance - December 31, 2021 106,155 $ 8.45 8.25 $ 1,267 Granted — — Exercised (743) 3.63 Canceled in connection with the Equity Exchange (21,055) 19.19 Canceled (2,587) 12.63 Balance - December 31, 2022 81,770 $ 5.44 6.90 $ 418 Vested & expected to vest as of December 31, 2022 81,770 $ 5.44 6.90 $ 418 Exercisable as of December 31, 2022 66,325 $ 5.21 6.81 $ 354 There were no SARs granted during the fiscal year ended December 31, 2022. The weighted average grant date fair values of SARs granted during the fiscal years ended December 31, 2021 and 2020 were $22.47 and $6.04 per share, respectively. As of December 31, 2022, total compensation cost related to unvested SARs not yet recognized was $0.1 million, which will be recognized over a weighted average period of 1.0 year. The Company estimates the fair value of stock-based compensation for SARs by utilizing the Black-Scholes option-pricing model as described above. The calculation of grant date fair value was based on the following weighted average assumptions: Fiscal Year Ended December 31, 2021 2020 Risk-free interest rate 1.5 % 0.7 % Expected volatility 60.9 % 58.3 % Expected life (in years) 6.2 6.1 Expected dividend yield — % — % Restricted stock units — The fair value of RSUs is determined using the fair value of the Company’s common stock on the date of grant. The Company recognizes stock-based compensation expense for RSUs with service-based vesting conditions on a straight-line basis over the requisite service period for each award, which typically vest over a three A summary of RSU activity under the 2021 Plan is as follows: RSUs Outstanding Weighted Average Grant Date Fair Value Unvested - December 31, 2021 2,545,051 $ 27.64 Granted 11,045,098 $ 13.79 Awarded in connection with the Equity Exchange (1) 7,133,544 $ 19.06 Released (3,409,002) $ 16.38 Canceled (1,136,590) $ 19.20 Unvested - December 31, 2022 16,178,101 $ 17.37 (1) Inclusive of 175,000 Performance-based awards that were separately modified, as discussed below. The aggregate fair value of RSUs that vested during the fiscal year ended December 31, 2022 was $50.7 million. No RSUs vested during the fiscal years ended December 31, 2021 or 2020. As of December 31, 2022, total unrecognized stock-based compensation expense related to unvested RSUs was $244.4 million, which will be recognized over a weighted average period of 3.1 years. Performance-based awards — U nder the Equity Incentive Plans, the Company may grant share-based awards whose vesting is contingent on meeting various departmental or company-wide performance goals, such as the achievement of certain sales targets or an IPO event, in lieu of or in addition to a service-based vesting condition (“Performance-Based Awards”). Such awards are generally granted with an exercise price equal to the fair market value of the underlying common stock share on the date of grant and have a contractual term of 10 years. If vesting is dependent on satisfying a performance condition that is probable of being achieved, the Company estimates the expected term as the midpoint between the time at which the performance conditions are probable of being satisfied and the contractual term of the award. If vesting is dependent on satisfying a performance condition that is not probable of being achieved and the service period is not explicitly stated, the Company estimates the expected term as the contractual term. The remaining inputs to the Black-Scholes option pricing model used to determine grant date fair value, including risk-free interest, expected volatility, and expected dividend yield, are calculated using the same method as that used for stock options with service-based vesting conditions. Grants for Performance-Based Awards are made out of the same pool of stock options available for future issuance under the Equity Incentive Plans. Compensation expense for Performance-Based Awards is based on the grant date fair market value. The Company recognizes expense for Performance-Based Awards having either (a) multiple performance-based vesting conditions, or (b) performance and graded service-based vesting conditions, by separately attributing each vesting tranche of the award over the requisite service period applicable to each vesting condition. Management’s estimate of the number of shares expected to vest is based on the anticipated achievement of the specified performance goals. If the performance-based vesting condition is considered probable of being achieved, the Company recognizes expense over the remaining service period based on the probable outcome of achievement. If the performance goals are not met, no compensation cost is recognized, and any previously recognized compensation cost is reversed. For awards with both performance and service-based vesting conditions where the performance condition is considered improbable of being achieved, the Company does not recognize expense until the performance condition is satisfied, after which time expense is recognized over the requisite service period. The Company had one Performance-Based Award outstanding as of December 31, 2022, and two Performance-Based Awards outstanding as of December 31, 2021. In 2018, the Company granted an award of 50,000 stock options that was eligible to vest upon the closing of the Company’s IPO occurring prior to the sixth (6th) anniversary of the date the award was granted and subject to recipient’s continued service to the Company. Upon the completion of the IPO requirement, the options vest in 48 equal monthly installments thereafter, subject to the recipient continuing to provide service to the Company through each vesting date. Prior to the Company’s IPO on October, 29, 2021, management considered the performance-based vesting conditions improbable of being satisfied. Upon completion of the IPO, the performance condition was satisfied, and the Company recognized an immaterial amount of cumulative stock-based compensation expense. In 2020, the Company granted 350,000 stock options with performance-based vesting conditions, with 50% vesting when the Company achieves $230.0 million in UB Annual Recurring Revenue (“ARR”), and the other 50% vesting when the Company achieves $330.0 million in UB ARR. Management considered that both performance-based vesting conditions were probable of being satisfied during the performance period. As such, the Company began recognizing expense for each tranche of the award using the estimated time period by which the performance conditions were probable of being achieved. The $230.0 million UB ARR performance condition was achieved in the fourth quarter of fiscal year 2021, and the Board of Directors’ compensation committee formally certified satisfaction of the performance condition in February 2022. The first, vested tranche of the award participated in the Equity Exchange program, as described in the section above, resulting in the cancellation of 175,000 performance-based stock options and the subsequent issuance of an equal number of RSUs. The $330.0 million UB ARR performance condition was achieved and certified by the Board of Directors’ compensation committee in the third quarter of fiscal year 2022. In the same quarter, after the certification occurred, the second tranche was separately modified under equivalent terms and accounting treatment to those described in the Equity Exchange section above, resulting in the cancellation of 175,000 performance-based stock options and the concurrent issuance of an equal number of RSUs. Modification of the second tranche resulted in incremental stock-based compensation expense of $0.9 million, which was recognized on a straight-line basis over the requisite service period. All 350,000 new RSUs issued in exchange for the performance-based stock options vested in November 2022. The following table summarizes the activities of Performance-Based Awards under the Equity Incentive Plans: Performance-Based Awards Outstanding Weighted Average Exercise Price Weighted Average Remaining Contractual Term Aggregate Intrinsic Value Balance - December 31, 2021 400,000 $ 10.12 8.60 $ 3,768 Granted — — Exercised — — Canceled (1) (350,000) 11.13 Balance - December 31, 2022 50,000 $ 3.06 5.58 $ 375 Vested & expected to vest as of December 31, 2022 50,000 $ 3.06 5.58 $ 375 Exercisable as of December 31, 2022 13,541 $ 3.06 5.58 $ 101 (1) 175,000 shares were canceled as part of the Equity Exchange, and 175,000 shares were canceled as part of the modification discussed above. As of December 31, 2022, total compensation cost related to unvested Performance-Based Awards not yet recognized was $0.1 million, which will be recognized over a weighted average period of 1.4 years. Employee stock purchase plan — The 2021 Employee Stock Purchase Plan (the “ESPP”) became effective on October 29, 2021. The Company initially reserved 2,800,000 shares of the Company's common stock under the ESPP. Shares reserved for issuance shall increase on the first day of the fiscal year, beginning in fiscal 2023, in an amount equal to the least of 1% of the outstanding shares of common stock on the last day of the immediately preceding fiscal year, three times the initial number of shares reserved under the ESPP, or a lesser amount determined by the Company’s Board of Directors or compensation committee. The ESPP allows eligible employees to purchase shares of the Company’s common stock at a discount of 15% during an offering period. Offering periods are 24-month periods beginning on the first trading day on or after May 20 or November 20 (defined as the enrollment date). Each offering period has four purchase periods which last approximately 6 months, or the length of time between exercise dates (defined as the first trading day on or after May 20 and November 20 of each purchase period), except that the first purchase period of any offering period is the time between the enrollment date and first exercise date. At the start of an offering period, eligible employees may elect to contribute up to 15% of their eligible compensation each payroll period during that offering period to purchase shares of common stock in accordance with the ESPP. On each exercise date, eligible employees will purchase the Company’s common stock at a price per share equal to 85% of the lesser of the fair market value of the Company’s common stock on (i) the enrollment date or (ii) the exercise date. In the event that the fair market value per share of the Company’s common stock at the end of a six-month purchase period is lower than the fair market value per share at the first day of the related offering period, a reset occurs that automatically cancels the current offering period and enrolls participants in a new offering period. During the fiscal year ended December 31, 2022, 870,442 shares of common stock were issued under the ESPP. The following table summarizes the weighted-average assumptions used in the Black-Scholes option-pricing model to estimate the fair value of new grants made under the ESPP: Fiscal Year Ended December 31, 2022 2021 Risk-free interest rate 3.5 % 0.3 % Expected volatility 68.5 % 61.2 % Expected life (in years) 1.2 1.2 Expected dividend yield — % — % As of December 31, 2022, total unrecognized compensation cost for the ESPP was $8.9 million, which will be recognized over a weighted average period of 1.6 years. Other equity transactions — During the fiscal year ended December 31, 2021, the Company facilitated a tender offer for certain eligible employees to sell 236,086 vested stock options and outstanding shares of common stock to an existing investor at a per share price of $23.75 per share. The Company recorded stock-based compensation of $1.6 million during the fiscal year ended December 31, 2021, in its consolidated statements of operations for the difference be tween the price paid and the fair value of the Company’s common stock on the date of the transaction. During the fiscal year ended December 31, 2020, the Company facilitated a tender offer for certain eligible employees to sell 891,265 vested stock options and outstanding shares of common stock at a per share price of $11.22 per share. The Company recorded stock-based compensation of $3.5 million during the fiscal year ended December 31, 2020, in its consolidated statements of operations for the difference between the price paid and the fair value of the Company’s common stock on the date of the transaction. Additionally, during the fiscal years ended December 31, 2021 and 2020, the Company waived its right of first refusal and transfer restrictions with respect to certain transfers of outstanding common stock. Where the Company has concluded that such transfers included a deemed compensatory element as a result of both the Company’s role in facilitating the transfers and the buyers of the shares transferred having a pre-existing economic interest in the Company’s equity, the Company recorded stock-based compensation expense for the difference between the price paid and the fair market value on the date of the transaction. The Company recorded $4.0 million and $17.9 million of stock-based compensation expense for such transactions during the fiscal years ended December 31, 2021 and 2020, respectively. On August 24, 2021, the Company issued 61,300 shares of Udemy restricted common stock to a former executive of CorpU at a grant date fair value per share of $34.14. The total compensation cost recognized during the fiscal years ended December 31, 2022 and 2021 was $0.7 million and $0.2 million, respectively. As of December 31, 2022, total compensation cost related to the restricted stock not yet recognized was $1.1 million, which will be recognized over a weighted average period of 1.6 years. Total stock-based compensation expense included in the consolidated statements of operations was as follows (in thousands): Fiscal Year Ended December 31, 2022 2021 2020 Cost of revenue $ 5,360 $ 1,623 $ 418 Sales and marketing 29,054 8,637 7,518 Research and development 20,850 6,816 5,232 General and administrative 26,029 17,604 18,450 Total stock-based compensation expense $ 81,293 $ 34,680 $ 31,618 The Company capitalized $5.8 million, $2.5 million, and $0.7 million of stock-based compensation expense as capitalized software during the fiscal years ended December 31, 2022, 2021, and 2020, respectively.

Net loss per share

Net loss per share	12 Months Ended
	Dec. 31, 2022
Earnings Per Share [Abstract]
Net loss per share	15. Net loss per share The following table presents the calculation of basic and diluted net loss per share attributable to common stockholders (in thousands, except share and per share amounts): Fiscal Year Ended December 31, 2022 2021 2020 Numerator: Net loss attributable to common stockholders $ (153,875) $ (80,026) $ (77,620) Denominator: Weighted-average shares used in computing net loss per share attributable to common stockholders Basic and diluted 140,873,504 54,972,827 33,384,438 Net loss per share attributable to common stockholders Basic and diluted $ (1.09) $ (1.46) $ (2.33) The following potentially dilutive securities were excluded from the computation of diluted net loss per share calculations, because the impact of including them would have been anti-dilutive: Fiscal Year Ended December 31, 2022 2021 2020 Redeemable convertible preferred stock — — 85,391,338 Stock options 10,333,771 20,342,259 19,028,454 RSUs and restricted stock 16,218,968 2,606,351 — Contingently issuable shares under ESPP 116,601 60,880 — Redeemable convertible preferred stock warrants — — 12,595 Total potentially dilutive securities 26,669,340 23,009,490 104,432,387

Segment and geographic informat

Segment and geographic information	12 Months Ended
	Dec. 31, 2022
Segment Reporting [Abstract]
Segment and geographic information	16. Segment and geographic information The Company’s Chief Executive Officer is its CODM. The CODM reviews separate financial information presented for the Company’s two segments, Consumer and Enterprise, in order to allocate resources and evaluate the Company’s financial performance. The Consumer segment targets individual learners seeking to obtain hands-on learning, gain valuable job skills to advance their professional careers, or learn a new personal skill. The Enterprise segment is focused on helping business and government customers upskill and reskill their employees and public servants. The CODM measures the performance of each segment primarily based on segment revenue and segment gross profit. Segment gross profit, as presented below, is defined as segment revenue less segment cost of revenue. Segment cost of revenue includes content costs, hosting and platform costs, customer support services, and payment processing fees that are allocable to each segment. Segment gross profit excludes amortization of capitalized software, depreciation, stock-based compensation, and amortization of intangible assets allocated to cost of revenue as the CODM does not include the information in his measurement of the performance of the operating segments. Additionally, the Company does not allocate sales and marketing expenses, research and development expenses, and general and administrative expenses because the CODM does not include the information in his measurement of the performance of the operating segments. The Udemy platform supports the operations of each segment. The CODM does not use asset information by segments to assess performance and make decisions regarding allocation of resources, and the Company does not track its long-lived assets by segment. The geographic identification of these assets is set forth below. Financial information for each reportable segment was as follows (in thousands): Fiscal Year Ended December 31, 2022 2021 2020 Revenue Consumer $ 315,059 $ 328,703 $ 326,454 Enterprise 314,038 186,954 103,445 Total revenue 629,097 515,657 429,899 Segment cost of revenue Consumer 149,254 159,342 165,804 Enterprise 104,577 63,984 35,519 Total segment cost of revenue 253,831 223,326 201,323 Segment gross profit Consumer 165,805 169,361 160,650 Enterprise 209,461 122,970 67,926 Total segment gross profit 375,266 292,331 228,576 Reconciliation of segment gross profit to gross profit Amortization of capitalized software 12,586 9,293 6,894 Amortization of intangible assets 2,900 1,022 — Depreciation 643 760 618 Stock-based compensation $ 5,360 $ 1,623 $ 418 Total reconciling items 21,489 12,698 7,930 Total gross profit $ 353,777 $ 279,633 $ 220,646 Subsequent to the issuance of the Company’s consolidated financial statements as of and for the fiscal year ended December 31, 2020, the Company identified an error in the classification of segment cost of revenue between the Consumer and Enterprise segments. Management corrected the error in the table above by decreasing Consumer segment cost of revenue and increasing Enterprise segment cost of revenue by $6.7 million for the fiscal year ended December 31, 2020. Consumer segment gross profit increased by $6.7 million and Enterprise segment gross profit decreased by $6.7 million for the fiscal year ended December 31, 2020. Management considers such corrections to be immaterial to the previously issued consolidated financial statements. Geographic information Revenue : The following table summarizes the revenue by region based on the billing address of the Company’s customers (in thousands): Fiscal Year Ended December 31, 2022 2021 2020 North America $ 256,547 $ 199,268 $ 168,612 Europe, Middle East, Africa 189,618 168,612 139,005 Asia Pacific 137,829 107,924 85,847 Latin America 45,103 39,853 36,435 Total revenue $ 629,097 $ 515,657 $ 429,899 No single country other than the United States represented 10% or more of the Company’s total revenue du ring the fiscal years ended December 31, 2022, 2021, and 2020. Long-lived assets : The following table presents the Company’s long-lived assets, which consist of tangible property and equipment, net of depreciation, and operating lease ROU assets, by geographic region (in thousands): December 31, December 31, 2022 2021 North America $ 12,782 $ 6,922 Rest of world 5,556 2,832 Total long-lived assets $ 18,338 $ 9,754

Subsequent events

Subsequent events	12 Months Ended
	Dec. 31, 2022
Subsequent Events [Abstract]
Subsequent events	Subsequent events On January 9, 2023, the Company announced that Gregg Coccari will retire from his position as Chief Executive Officer (“CEO”) and Chairman of the Board, effective February 28, 2023. On the same date, Gregory Brown, the current President of Udemy Business, will be appointed as the new Company President and CEO. The Company's Lead Independent Director, Jeff Lieberman, will be appointed Interim Chairman of the Board upon Mr. Coccari's departure. In connection with his retirement, Mr. Coccari entered into a consulting agreement with the Company in which he will provide transitional advisory advice and other assistance on an as-needed basis through February 28, 2024. As compensation for the consulting services, Mr. Coccari’s existing equity incentive awards will continue to vest during the term of the agreement. On February 13, 2023, the Company communicated to its employees that in response to current macroeconomic conditions and to further streamline its operations and cost structure, it would reduce its global workforce by approximately 10%. As a result, the Company expects to recognize restructuring charges of $9.0 million to $11.0 million in the first quarter of 2023, primarily consisting of personnel expenses such as salaries and wages, one-time severance payments, and other benefits. Cash payments related to these expenses will occur primarily in the first and second quarters of 2023. Also included in the indicated range is an immaterial amount of stock-based compensation expense that will be recognized in the first quarter of 2023 as a result of modifications to allow vesting of certain stock-based awards held by impacted personnel.

Summary of significant accoun_2

Summary of significant accounting policies (Policies)	12 Months Ended
	Dec. 31, 2022
Accounting Policies [Abstract]
Basis of consolidation and presentation	Basis of consolidation and presentation —
Segment information	Segment information — The Company defines its segments as those operations the chief operating decision maker (“CODM”), determined to be the Chief Executive Officer of the Company, regularly reviews to allocate resources and assess performance. For the fiscal years ended December 31, 2022, 2021, and 2020, the Company operated under two operating and reportable segments: Consumer and Enterprise. The Company continually monitors and reviews its segment reporting structure in accordance with Accounting Standards Codification (“ASC”) Topic 280, Segment Reporting, to determine whether any changes have occurred that would impact its reportable segments. For further information on the Com pany’s segment reporting, see Note 16 – Segment and geographic information.
Use of estimates	Use of estimates — The preparation of consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the dates of the consolidated financial statements and the results of operations during the reporting periods. Significant estimates and assumptions reflected in the consolidated financial statements include, but are not limited to, allowance for credit losses, capitalization of internally developed software and ass ociated useful lives, stock-based compensation, determination of the income tax valuation allowance and the potential outcome of uncertain tax positions, estimated instructor withholding tax obligations, estimated period of consumption for consumer learners’ single course purchases, the period of benefit for deferred commissions, t he fair value and associated useful lives of intangible assets and goodwill acquired via business combinations, and the valuation of privately-held strategic investments, including impairments. Management periodically evaluates such estimates and assumptions for continued reasonableness. Actual results may ultimately differ from management’s estimates and such differences could be material to the financial position and results of operations.
Concentration of credit risk	Concentration of credit risk — Financial instruments that potentially subject the Company to concentrations of credit risk consist primarily of cash and cash equivalents, marketable securities, restricted cash, and accounts receivable. For cash and restricted cash, the Company is exposed to credit risk in the event of default by the financial institutions to the extent the amounts recorded on the accompanying consolidated balance sheets are in excess of federal insurance limits. The Company’s investments, classified as cash equivalents and marketable securities, consist of high-credit-quality instruments and fixed-income securities.
Revenue recognition and Cost of revenues	Revenue recognition — The Company accounts for revenue under ASC Topic 606, Revenue from Contracts with Customers. The Company’s two sources of revenues are its Consumer and Enterprise business channels. Consumer revenue — The Company generates revenue by selling access to course content on the Udemy platform directly to individual learners. Consumer revenues consist of (i) single course purchases and (ii) consumer subscriptions. All contracts with consumer customers are billed in advance and require payment by the customer prior to accessing any course content, or in the case for new consumer subscription customers, upon expiration of the 7-day free trial. After checkout, consumer customers purchasing a single course receive a lifetime access license to the digital course content in addition to stand-ready access to the Udemy platform online services needed to access the content. Consumer subscription plans offer on-demand access to a library of courses over a subscription term, as well as additional features and functionalities. Consumer revenue transactions are governed by Udemy’s standard terms of use. The time between a customer’s payment and the receipt of funds is not significant. Payment terms are generally fixed and do not include variable consideration. Consumer revenues are recorded net of actual and estimated refunds and exclude any taxes that are collected from learners and remitted to governmental authorities. Consumer revenue arrangements do not include significant obligations associated with warranties. Consumer subscriptions are either one-month or one-year in duration and paid in advance, with new customers able to sign up for a 7-day free trial period. Once the free trial period lapses and advance payment is made, there is no right to a refund (unless otherwise required by applicable law). Subscribers have continuous access to enroll in and consume an unlimited number of curated courses included in the subscription catalog on the platform during the subscription term. Subscribers retain access to the courses in which they enroll for the duration of their subscriptions (including any renewal period), even if the instructor subsequently elects to remove the course from the Company’s subscription programs. The continual access to the platform represents a series of distinct services, as the Company continually provides access to, and fulfills its obligation to, the customer over the contract term. Consumer subscriptions automatically renew at the end of the subscription term. Customers may cancel renewal of their subscription at any point but will retain their access to the platform until the end of the current subscription term. Enterprise revenue — The Company primarily generates revenue by selling subscription licenses to a variety of enterprise and government customers. The Company’s subscription contracts with enterprise customers generally have annual or multi-year contractual terms and consist of a fixed quantity of seat licenses, which allows each seat to access an unlimited number of course enrollments during the contract term. Subscribers retain access to the courses in which they enroll for the duration of their subscriptions (including any renewal period), even if the instructor subsequently elects to remove the course from the Company’s subscription programs. Enterprise contracts are typically evidenced by a fully executed Master Services Agreement with an accompanying executed Order Form specifying the contractual subscription term and pricing. Revenue is recognized ratably over the respective contractual subscription term beginning on the date that the platform is made available to the customer. Standard subscription agreements have auto-renewal clauses, which allow the agreement to continue after the expiration of the initial term. The Company’s standard billing terms are to invoice upfront annually for contracts with terms of one year or longer. For contracts that are less than one year, the Company generally bills in advance on a quarterly or semi-annual basis. The Company recognizes unbilled receivables that relate to consideration for services completed but not billed as of period end. The unbilled receivables are recorded in accounts receivable, net, and were not material for any period presented. Revenue from contracts with customers is recognized when control of promised services is transferred. The amount of revenue recognized reflects the consideration the Company expects to be entitled to receive in exchange for these services. The Company accounts for revenue contracts with customers using the five-step model under ASC Topic 606: 1) Identify the contract with a customer Udemy determines a contract with a customer to exist when the contract is approved, each party’s rights regarding the services to be transferred can be identified, the payment terms for the services can be identified, the customer has the ability and intent to pay, and the contract has commercial substance. At contract inception, the Company evaluates whether two or more contracts should be combined and accounted for as a single contract and whether the combined or single contract includes more than one performance obligation. The Company applies judgment in determining the customer’s ability and intent to pay, which is based on a variety of factors, including the customer’s historical payment experience if available. Consumer customers are generally required to pay in advance using a credit card. Generally, enterprise customers are billed upfront annually for contracts with terms of one year or longer or in advance quarterly or semi-annually for contracts with terms of less than one year. 2) Identify the performance obligations in the contract Performance obligations committed in a contract are identified based on the services that will be transferred to the customer that are both capable of being distinct, whereby the customer can benefit from the service either on its own or together with other resources that are readily available from third parties or from Udemy, and are distinct in the context of the contract, whereby the transfer of the services and the products is separately identifiable from other promises in the contract. Customers do not have the ability to take possession of the software supporting the platform and, as a result, contracts are accounted for as service arrangements. The non-exclusive lifetime access license associated with single course purchases and the licensed content associated with subscriptions are not considered distinct from the Udemy platform, because the course content is significantly integrated, and highly interdependent and interrelated with the platform. Specifically, the learner does not obtain control of the course content’s functionality without the Udemy platform. Accordingly, management concluded there is a single, combined performance obligation, which is customer’s access to the online content on the Udemy platform, representing a series of distinct services as the Company continually provides access to and fulfills its obligation to allow access to licensed content and platform functionality to the learner. 3) Determine the transaction price The transaction price is determined based on the consideration to which Udemy expects to be entitled in exchange for transferring services to the customer. The prices for Consumer and Enterprise, or Udemy Business (“UB”), contracts are fixed at contract inception and do not contain significant estimates related to variable consideration. With respect to single course purchases, consumers may request a full refund within 30 days after the initial purchase transaction. The Company estimates and establishes a refund reserve based on historical refund rates, which has historically been immaterial. None of the Company’s contracts contain a significant financing component. Revenue excludes taxes collected from customers, which are subsequently remitted to governmental entities (e.g., sales and other indirect taxes). 4) Allocate the transaction price to performance obligations in the contract Contracts that contain multiple performance obligations require an allocation of the transaction price to each performance obligation based on each performance obligation’s relative standalone selling price. As access to content is not considered distinct from the Udemy platform hosting services, the transaction price is allocated to a single performance obligation. 5) Recognize revenue when or as performance obligations are satisfied Revenue is recognized at the time the related performance obligation is satisfied by transferring the control of the promised service to a customer. Revenue is recognized in an amount that reflects the consideration that Udemy expects to receive in exchange for those services. Udemy has a stand ready obligation to deliver its services continually throughout the requisite contract period, which is either lifetime access for consumer single course purchases or the contractual subscription term for UB and consumer subscription customers. As such, the Company recognizes revenue on a straight-line basis as it satisfies the performance obligation, using an estimated service period for individual consumer single course purchases and the contractual subscription term for UB and consumer subscription customers. Other than the circumstances noted below, no significant judgment has historically been required in determining the amount and timing of revenue from the Company’s contracts with customers. Principal vs. agent —In order to determine if revenue should be reported gross or net of either payments to third-party instructors or amounts retained by reseller partners who sell access to Enterprise subscription offerings, the Company evaluated whether Udemy acts as the principal in sales of its online course offerings. An entity is the principal if it controls a good or service before it is transferred to the end customer. Key indicators that management evaluated in determining gross versus net treatment included but are not limited to: • the nature of the Company’s promise to the customer, as well as the distinct performance obligation identified; • the underlying contract terms and conditions between the parties to the transaction; • which party is primarily responsible for fulfilling the promise to provide the specified good or service to the end customer; • which party has inventory risk before the specified good or service has been transferred to the end customer; and • which party has discretion in establishing the price for the specified good or service. Based on an evaluation of the above indicators, management determined that the Company is the principal to learners who purchase access to online course content via direct or reseller sales of its consumer and enterprise offerings. The Company controls the promised goods or services (i.e., access to course content via the Udemy platform) before it is transferred to the customer and is primarily responsible for fulfillment with respect to delivering access to course content. The Company is the entity which licenses content to learners as the agreements with instructors grant the Company the right to sub-license content to its learners at its discretion. The Company also has substantial discretion to determine the pricing of its offerings. Therefore, the Company reports the gross purchase price paid by the customer related to these arrangements in the revenue caption of the consolidated statements of operations. The Company records payments to instructors as content costs within cost of revenues, while amounts retained by reseller partners for Enterprise sales are recognized as customer support costs within cost of revenues and deferred sales commissions within sales and marketing, based on the nature of the partnership transaction. Estimated service period for consumer single course purchases —The Company considers a variety of data points when determining the estimated service period for a consumer single course purchase over which revenue is recognized. Quantitative data points considered include, but are not limited to, the average time period between a learner’s purchase date and the last date the learner accesses the purchased content, the average total hours consumed for a given purchase, and the time period over which learner activity stabilizes. Management also considers certain qualitative factors such as the nature of the Company’s consumer offerings, known online trends, and, to the extent publicly available, service periods of competitors’ online content that is similar in nature to those offered by the Company. The Company believes consideration of all of these factors enables the Company to determine the best representation of the time period during which consumer learners access the online course content on the Company’s platform and therefore the service period over which the Company provides services to learners. Determining the estimated service period is subjective and requires management’s judgment. Future usage patterns may differ from historical usage patterns, and the estimated service period may change in the future. The estimated service period for consumer single course purchase transactions is four months from the date of enrollment. The Company records contract liabilities when cash payments are received or due in advance of performance to deferred revenue. Deferred revenue primarily relates to the advance consideration allocated to remaining performance obligations received from customers. The price of subscriptions is fixed at contract inception and the Company’s contracts do not contain significant estimates related to variable consideration. As a result, the amount of revenue recognized in the periods presented from performance obligations satisfied (or partially satisfied) in prior periods was not material. Cost of revenues — Costs of revenues are related to content costs (which are payments to instructors), payment and mobile processing fees, costs associated with the hosting of digital content, employee-related expenses for the customer support organization, including salaries, benefits, stock-based compensation, facilities and other expenses, depreciation of network equipment, and amortization of capitalized software. Deferred revenue — The Company records contract liabilities to deferred revenue for amounts billed to customers in advance of the performance obligations being satisfied, and primarily consists of the unearned portion of enterprise and consumer services. The Company also recognizes an immaterial amount of contract assets, or unbilled receivables, primarily relating to consideration for services completed but not billed at the reporting date. Unbilled receivables are classified as receivables when the Company has the right to invoice the customer.
Advertising Cost	Advertising costs —
Research and development	Research and development — Research and development costs are expensed as incurred. Research and development expenses include salaries, benefits, stock-based compensation, costs related to the ongoing management, maintenance, and expansion of features and services offered on the Company’s platform. Research and development costs also include contracted services, supplies, and other miscellaneous expenses.
Stock-based compensation	Stock-based compensation — The Company accounts for its stock-based compensation pursuant to ASC Topic 718, Compensation-Stock Compensation, which requires the measurement and recognition of stock-based awards using the estimated fair value of the awards on the date of grant. Stock-based awards include stock options, restricted stock units (“RSUs”), stock appreciation rights (“SARs”), and restricted stock granted to employees, directors, and non-employees, and stock purchase rights granted to employees under the Employee Stock Purchase Plan (“ESPP Rights”). The Company estimates the fair value of RSUs and restricted stock based on the fair value on the date of grant. The Company estimates the fair value of stock options, SARs, and ESPP Rights using the Black-Scholes option-pricing model, which requires the use of the following subjective and complex assumptions: Expected term — For stock options and SARs, the Company has elected to use the midpoint of the vesting term and contractual expiration period to compute the expected term, as the Company does not have sufficient historical information to develop reasonable expectations about future exercise patterns and post-vesting employment termination behavior. For ESPP Rights, the expected term is equal to the purchase periods in a given offering period. Risk-free interest rate — The risk-free interest rate is based on the U.S. Treasury yield curve in effect at the time of grant for zero-coupon U.S. Treasury notes with maturities approximately equal to the award’s expected term. Expected volatility — The Company estimates future expected volatility by considering both the average volatility of a peer group of representative public companies with sufficient trading history and, to the extent available, its historical volatility over the expected term. Dividend yield — The expected dividend was assumed to be zero as the Company has never paid dividends and has no current plans to do so. Stock appreciation rights granted to employees are settled in cash upon exercise. The Company accounts for SARs in the other liabilities, non-current caption in the accompanying consolidated balance sheets. Vested and outstanding SARs are subject to remeasurement at each balance sheet date using the Black-Scholes option-pricing model and the assumptions described above, and any change in fair value is recognized as a component of expense. The Company adjusts the fair value of the liability for vested and outstanding SARs until the earlier of the exercise or expiration of the SARs. For awards with only service-based vesting conditions, the Company recognizes the resulting stock-based compensation on a straight-line basis over the requisite service period of the awards. Stock-based compensation for awards that are subject to performance conditions are attributed separately for each vesting tranche of the award. The Company accounts for forfeitures in the period they occur.
Income taxes	Income taxes — The Company accounts for income taxes in accordance with ASC 740, Income Taxes (“ASC 740”), which requires an asset and liability approach in accounting for income taxes. Under this method, the tax provision includes taxes currently due plus the net change in deferred tax assets and liabilities. Deferred tax assets and liabilities arise from the temporary differences between the tax basis of an asset or liability and its reported amount in the consolidated financial statements, as well as from net operating loss and tax credit carryforwards. Deferred tax amounts are determined by using the tax rates expected to be in effect when the taxes will actually be paid or refund received, as provided for under currently enacted tax law. A valuation allowance is provided for the amount of deferred tax assets that, based on available evidence, is not expected to be realized.
Translation of foreign currency	Translation of foreign currency — The Company’s reporting currency is the U.S. dollar. The Company determines the functional currency for each of its foreign subsidiaries by reviewing their operations and currencies used in their primary economic environments. Assets and liabilities for foreign subsidiaries with functional currency other than U.S. dollar are translated into U.S. dollars at the rate of exchange existing at the balance sheet date. Statements of operations amounts are translated at average exchange rates for the period. Translation gains and losses are recorded in accumulated other comprehensive income (loss) as a component of stockholders’ equity (deficit). Remeasurement gains and losses are included in other income (expense), net in the consolidated statements of operations. Monetary assets and liabilities are remeasured at the exchange rate on the balance sheet date and nonmonetary assets and liabilities are measured at historical exchange rates.
Net loss per share attributable to common stockholders	Net loss per share attributable to common stockholders — Prior to the completion of the Company’s Initial Public Offering (“IPO”) and the conversion of all outstanding preferred shares into common stock, basic and diluted net loss per share attributable to common stockholders was computed in conformity with the two-class method required for participating securities. The Company considered all series of its redeemable convertible preferred stock to be participating securities as the holders of such stock had the right to receive nonforfeitable dividends on a pari passu basis in the event that a dividend was paid on common stock. Under the two-class method, the net loss attributable to common stockholders was not allocated to the redeemable convertible preferred stock as the preferred stockholders did not have a contractual obligation to share in the Company’s losses. Basic net loss per share is computed by dividing net loss attributable to common stockholders by the weighted-average number of shares of common stock outstanding during the period. Diluted net loss per share is computed by giving effect to all potentially dilutive common stock equivalents to the extent they are dilutive. For purposes of this calculation, common stock options, RSUs, restricted stock, contingently issuable shares under the Company’s ESPP plan, and early exercised common stock options subject to repurchase are considered to be common stock equivalents but have been excluded from the calculation of diluted net loss per share attributable to common stockholders as their effect is anti-dilutive for the periods presented. For the fiscal years ended December 31, 2021 and 2020, outstanding redeemable convertible preferred stock and redeemable convertible preferred stock warrants were also considered to be common stock equivalents, but were excluded from the calculation of diluted net loss per share attributable to common stockholders as their effect was anti-dilutive.
Comprehensive loss	Comprehensive loss —
Fair value of financial instruments	Fair value of financial instruments — The Company considers fair value as the exchange price that would be received for an asset or paid to transfer a liability, an exit price, in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants at the measurement date. Valuation techniques used to measure fair value are either observable or unobservable. Observable inputs reflect assumptions that market participants would use in pricing an asset or liability based on market data obtained from independent sources, while unobservable inputs reflect a reporting entity’s pricing based on their own market assumptions. The Company utilizes the following three-level fair value hierarchy to establish the priorities of the inputs used to measure fair value: Level 1— Unadjusted quoted prices in active markets for identical assets or liabilities; Level 2— Inputs are observable, unadjusted quoted prices for similar assets or liabilities in an active market, quoted prices for identical or similar assets or liabilities in markets that are not active, inputs other than quoted prices that are observable and market-corroborated inputs which are derived principally from or corroborated by observable market data; and Level 3— Inputs are derived from valuation techniques in which one or more significant inputs or value drivers are unobservable. The carrying amounts of cash, cash equivalents, restricted cash, accounts receivable, and accounts payable approximate fair value due to the relatively short-term maturities and are classified as short-term assets and liabilities, as appropriate, in the accompanying consolidated balance sheets.
Cash and cash equivalents	Cash and cash equivalents — Cash and cash equivalents include on demand deposits, money market funds, and other highly liquid investments with original or remaining maturities of less than 90 days when purchased. Cash equivalents also include amounts in transit from certain payment processors for credit and debit card transactions, which typically settle within five business days.
Restricted cash	Restricted cash — Restricted cash primarily consists of cash restricted in connection with lease agreements for the Company’s facilities. Restricted cash is included in current assets for leases that expire within one year from the balance sheet date and in non-current assets for leases that expire in more than one year from the balance sheet date.
Marketable securities	Marketable securities— Marketable securities consist of obligations issued by the U.S. Treasury and other U.S. federal agencies, corporate debt, and commercial paper securities, with an original maturity greater than 90 days at the date of purchase and are classified as available-for-sale securities. As the Company views these securities as available to support current operations, it has classified all available-for-sale securities as current assets. Available-for-sale securities are initially recorded at cost and periodically adjusted to fair value with unrealized gains and losses reported as a component of accumulated other comprehensive income (loss) in stockholders’ equity (deficit), while realized gains and losses are reported within other income (expense), net as a component of net loss.
Accounts receivable, net	Accounts receivable, net — Accounts receivable primarily represent amounts owed to the Company for Enterprise subscriptions. Also included in accounts receivable are amounts due from payment processors or mobile application store partners that settle over a period longer than five business days. Accounts receivable balances are recorded at the invoiced amount and are non-interest-bearing. Accounts receivable is presented net of allowance for credit losses in the accompanying consolidated balance sheets.
Deferred contract costs	Deferred contract costs — Sales commissions earned by the Company’s sales force on both new and renewal business are considered incremental and recoverable costs of obtaining a contract with a customer. These costs are deferred and then amortized on a straight-line basis over an estimated period of benefit of four years, as commissions paid for initial and renewal contracts are generally not considered commensurate. The Company determined the period of benefit by taking into consideration the length of terms in its Enterprise customer contracts, changes and enhancements in course offerings, and other factors. In addition, a portion of the revenue share retained by enterprise reseller partners from sales to UB customers is considered an incremental and recoverable cost of obtaining a contract with a customer. This cost is deferred and amortized on a straight-line basis over the service term of the corresponding contractual subscription term, as commissions paid to resellers on initial and renewal contracts are generally commensurate. Amounts expected to be recognized within one year of the consolidated balance sheet dates are recorded as deferred contract costs, current, while the remaining portion is recorded as deferred contract costs, non-current in the consolidated balance sheets. Deferred contract costs are periodically analyzed for impairment. Amortization expense is included in sales and marketing expenses in the accompanying consolidated statements of operations.
Property and equipment, net	Property and equipment, net — Property, equipment, and purchased software are stated at cost, less accumulated depreciation and amortization. Depreciation is computed using the straight-line method over the estimated useful lives of the respective assets, which are generally three years for computers, purchased software, and equipment, and five years for furniture and fixtures. Leasehold improvements are amortized using the straight-line method over the shorter of the estimated useful lives of the assets or the term of the related lease. Expenditures for repairs and maintenance are charged to expense as incurred. Upon disposition or retirement, the cost and related accumulated depreciation are removed from the accounts and the resulting gain or loss, if any, is reflected as operating expenses in the consolidated statements of operations.
Capitalized software, net	Capitalized software, net — The Company capitalizes costs to develop software for internal use incurred during the application development stage. Costs related to preliminary project activities and post implementation activities are expensed as incurred. Once an application has reached the development stage, qualifying internal and external costs are capitalized until the software feature is substantially complete and ready for its intended use. Capitalized qualifying costs are amortized on a straight-line basis when the software is ready for its intended use over an estimated useful life, which is generally three years. The Company evaluates the useful lives of these assets and tests for impairment whenever events or changes in circumstances occur that could impact the recoverability of these assets.
Operating leases	Operating leases — The Company leases real estate facilities under non-cancelable operating leases with various expiration dates through fiscal year 2026. The Company determines if an arrangement contains a lease at inception based on whether there is an identified tangible asset and whether the Company controls the use of the identified asset throughout the period of use. The Company adopted Accounting Standard Update (“ASU”) No. 2016-02, Leases (Topic 842) on January 1, 2022. Operating leases are included in operating lease right-of-use (“ROU”) assets and in operating lease liabilities in the accompanying consolidated balance sheet. Operating lease ROU assets represent the Company’s right to use an underlying asset for the lease term and operating lease liabilities represent the Company’s obligation to make lease payments arising from the lease. The Company measures its operating lease liabilities at lease inception date based on the present value of total lease payments over the lease term. Total lease payments are discounted to present value using the more readily determinable of (i) the rate implicit in the lease or (ii) the Company’s incremental borrowing rate (which is the estimated rate the Company would be required to pay for a collateralized borrowing equal to the total lease payments over the term of the lease). Because the Company’s operating leases generally do not provide an implicit rate, the Company estimates its incremental borrowing rate using information available at the lease commencement date, including but not limited to credit rating, lease term, and the currency in which the arrangement is denominated. The Company’s operating lease ROU assets are equal to the corresponding operating lease liability, adjusted for payments made to the lessor at or before the commencement date, initial direct costs incurred, and tenant incentives under the lease. The Company does not assume renewals or early terminations unless it is reasonably certain to exercise these options at commencement. The Company does not allocate consideration between lease and non-lease components. Variable lease payments, such as those for common area maintenance or property taxes, are not included in the measurement of operating lease liabilities and are expensed as incurred. In addition, the Company does not recognize operating ROU assets or operating lease liabilities for leases with a term of 12 months or less for all asset classes. Operating lease expense is recognized on a straight-line basis over the lease term. Lease accounting prior to the adoption of Topic 842
Strategic investments	Strategic investments — The Company holds an investment in equity securities of a privately held company without a readily determinable fair value and in which the Company does not have a controlling interest. Investments in equity securities without readily determinable fair values are initially recorded at cost and are subsequently adjusted to fair value only in the event of either price changes from observable transactions in the same or a similar security from the same issuer or impairment, as discussed below. This practice is referred to as the measurement alternative. Privately held equity securities are valued using significant unobservable inputs or data in inactive markets. This valuation requires judgment due to the absence of market prices and inherent lack of liquidity and are classified as Level 3 in the fair value hierarchy. In determining the estimated fair value of investments in privately held companies, the Company utilizes the most recent data available including observed transactions, such as equity financing transactions of the investees and sales of the existing shares of the investees’ securities. In addition, the determination of whether an observed transaction is similar to the equity securities held by the Company requires significant management judgment based on the rights and preferences of the securities.
Goodwill and intangible assets	Goodwill and intangible assets — Intangible assets are amortized over their estimated useful lives. Each period, the Company evaluates the estimated remaining useful life of its intangible assets and whether events or changes in circumstances warrant a revision to the remaining period of amortization. Management tests for impairment whenever events or changes in circumstances occur that could impact the recoverability of these assets. No such triggering events were noted for the fiscal years ended December 31, 2022 and 2021.
Impairment of long-lived assets	Impairment of long-lived assets —
Business combinations	Business combinations — In accordance with applicable accounting standards, the Company estimates the fair value of acquired assets and assumed liabilities as of the acquisition date of business combinations. The purchase consideration is allocated to the tangible assets acquired, liabilities assumed, and intangible assets acquired based on their estimated fair values. The purchase price is determined based on the fair value of the assets transferred, liabilities assumed, and equity interests issued, after considering any transactions that are separate from the business combination. The excess of fair value of purchase consideration over the fair values of the identifiable assets and liabilities is recorded as goodwill. Such valuations require management to make significant estimates and assumptions, especially with respect to intangible assets. Significant estimates in valuing certain intangible assets include, but are not limited to, future expected cash flows from acquired customer relationships and developed technology, costs to recreate acquired vendor relationships, royalty rates, and discount rates. The estimates are inherently uncertain and subject to revision as additional information is obtained during the measurement period for an acquisition, which may last up to one year from the acquisition date. During the measurement period, management may record adjustments to the fair value of tangible and intangible assets acquired and liabilities assumed, with a corresponding offset to goodwill. After the conclusion of the measurement period or the final determination of the fair value of assets acquired or liabilities assumed, whichever comes first, any subsequent adjustments are recorded to earnings.
Recently Adopted Accounting Pronouncements	Recently Adopted Accounting Pronouncements — In August 2018, the FASB issued ASU No. 2018-15, Intangibles-Goodwill and Other-Internal-Use Software (Subtopic 350-40): Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract. The ASU aligns the requirements for capitalizing implementation costs incurred in a hosting arrangement that is a service contract with the requirements for capitalizing implementation costs incurred to develop or obtain internal-use software. The Company adopted the standard with an effective date of January 1, 2021 using the prospective transition adoption approach. Capitalized implementation costs are recorded in prepaid expenses and other current assets and other assets in the consolidated balance sheet. The adoption of this ASU did not have a material impact on the consolidated financial statements. In February 2016, the FASB issued ASU No. 2016-02, Leases (Topic 842). The new standard requires a lessee to record an asset representing the lessees’ right to use the underlying asset and a liability to make lease payments. At inception, lessees must classify all leases as either finance or operating based on five criteria. Balance sheet recognition of finance and operating leases is similar, but the pattern of expense recognition in the income statement, as well as the effect on the statement of cash flows, differs depending on the lease classification. The Company adopted Topic 842 on January 1, 2022, using the modified retrospective approach. The Company elected the package of practical expedients, the use of hindsight in determining the lease term, and the practical expedient to not recognize an operating ROU asset or operating lease liability for leases with a term of 12 months or less. Upon adoption, the Company recognized $17.6 million in operating ROU assets and $20.0 million in operating lease liabilities in its consolidated balance sheets. The difference between the amounts of operating ROU assets and operating lease liabilities consisted of deferred rent and prepaid rent that were derecognized upon transition. There was no adoption date impact to accumulated deficit, and adoption of the new standard did not have a material impact on the Company’s consolidated statements of operations or cash flows. In October 2021, the FASB issued ASU 2021-08, Business Combinations (Topic 805), Accounting for Contract Assets and Contract Liabilities from Contracts with Customers, which aims to improve the accounting for acquired revenue contracts with customers in a business combination by addressing diversity in practice and inconsistency related to (1) recognition of an acquired contract liability and (2) payment terms and their effect on subsequent revenue recognized by the acquirer. The Company elected to early adopt this standard on a prospective basis on January 1, 2022. There has been no impact of adoption to date, as the Company has not entered into any business combinations since adoption. In June 2016, the FASB issued ASU 2016-13, Financial Instruments-Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments, for which adoption effective dates were subsequently amended by ASU 2019-10. This ASU replaces the existing incurred loss impairment model with a future expected credit loss model and requires a financial asset measured at amortized cost, such as accounts receivable and available-for-sale debt securities, to be presented at the net amount expected to be collected. The Company adopted this ASU on a modified retrospective basis with an effective date of January 1, 2022. The adoption did not result in a material impact or cumulative effect adjustment to the consolidated financial statements given historical and anticipated collection trends, credit risk profiles of enterprise customers, and other external factors. In December 31, 2019, the FASB issued ASU 2019-12, Income Taxes (Topic 740), Simplifying the Accounting for Income Taxes, which simplifies the accounting for income taxes by removing certain exceptions to the general principles of income taxes and reducing the cost and complexity in accounting for income taxes. The Company adopted this ASU effective January 1, 2022, and the adoption did not have a material impact on the consolidated financial statements.

Summary of significant accoun_3

Summary of significant accounting policies (Tables)	12 Months Ended
	Dec. 31, 2022
Accounting Policies [Abstract]
Summary of Allowance for Credit Losses	Balance at Beginning of Period Charged to Expenses Charges Utilized/Written-off, Net of Recoveries Balance at End of Period Allowance for credit losses Fiscal Year Ended December 31, 2022 $ 678 $ 960 $ (110) $ 1,528 Fiscal Year Ended December 31, 2021 $ 643 $ 326 $ (291) $ 678 Fiscal Year Ended December 31, 2020 $ 582 $ 182 $ (121) $ 643

Revenue recognition (Tables)

Revenue recognition (Tables)	12 Months Ended
	Dec. 31, 2022
Revenue from Contract with Customer [Abstract]
Summary of Deferred Revenue Balances by Reportable Segment	The below table presents a summary of deferred revenue balances by reportable segment (in thousands): December 31, December 31, December 31, December 31, 2022 2021 2020 2019 Deferred revenue: Enterprise $ 219,030 $ 148,966 $ 84,241 $ 40,686 Consumer 59,249 61,588 58,135 47,023 Total deferred revenue $ 278,279 $ 210,554 $ 142,376 $ 87,709
Summary of Deferred Contract Costs	The following table represents a rollforward of the Company’s deferred contract costs (in thousands): Balance at Beginning of Period Additions Amortization Expense Balance at End of Period Fiscal Year Ended December 31, 2022 $ 44,545 $ 53,379 $ (32,279) $ 65,645 Fiscal Year Ended December 31, 2021 $ 25,837 $ 36,509 $ (17,801) $ 44,545 Fiscal Year Ended December 31, 2020 $ 14,380 $ 18,943 $ (7,486) $ 25,837

Investments and fair value me_2

Investments and fair value measurements (Tables)	12 Months Ended
	Dec. 31, 2022
Fair Value Disclosures [Abstract]
Summary of Investments on Condensed Consolidated Balance Sheets	The Company’s assets and liabilities that are measured at fair value on a recurring or nonrecurring basis within the fair value hierarchy are as follows (in thousands): As of December 31, 2022 Level 1 Level 2 Level 3 Cash equivalents: Money market funds $ 130,377 $ — $ — U.S. government securities — 48,900 — Total cash equivalents $ 130,377 $ 48,900 $ — Marketable securities: U.S. government securities $ — $ 151,687 $ — Non-current assets: Strategic investments $ — $ — $ 12,104 Non-current liabilities: Cash settled stock appreciation rights $ — $ — $ 462 As of December 31, 2021 Level 1 Level 2 Level 3 Non-current assets: Strategic investments $ — $ — $ 10,000 Non-current liabilities: Cash settled stock appreciation rights $ — $ — $ 818
Summary of Investments on Condensed Consolidated Balance Sheets	The Company’s assets and liabilities that are measured at fair value on a recurring or nonrecurring basis within the fair value hierarchy are as follows (in thousands): As of December 31, 2022 Level 1 Level 2 Level 3 Cash equivalents: Money market funds $ 130,377 $ — $ — U.S. government securities — 48,900 — Total cash equivalents $ 130,377 $ 48,900 $ — Marketable securities: U.S. government securities $ — $ 151,687 $ — Non-current assets: Strategic investments $ — $ — $ 12,104 Non-current liabilities: Cash settled stock appreciation rights $ — $ — $ 462 As of December 31, 2021 Level 1 Level 2 Level 3 Non-current assets: Strategic investments $ — $ — $ 10,000 Non-current liabilities: Cash settled stock appreciation rights $ — $ — $ 818
Summary of the Changes in the Fair Value of Level 3 Financial Instruments	A summary of the changes in the fair value of Level 3 financial instruments, of which remeasurement of SARs, remeasurement of redeemable convertible preferred stock warrants, and strategic investment impairment are recognized in the consolidated statements of operations, is as follows (in thousands): Warrants Stock Appreciation Rights Strategic Investments Balance— December 31, 2019 $ 108 $ 36 $ — Change in fair value of redeemable convertible preferred stock warrants 52 — — Vesting and remeasurement of SARs, net — 232 — Balance— December 31, 2020 160 268 — Exercise of redeemable convertible preferred stock warrants (160) — — Vesting and remeasurement of SARs, net — 550 — Purchases of strategic investments — — 10,000 Balance— December 31, 2021 — 818 10,000 Vesting and remeasurement of SARs, net — (294) — Purchases of strategic investments — — 5,000 Amount reclassified from liability to equity upon exchange — (62) — Unrealized loss on strategic investments — — (2,896) Balance— December 31, 2022 $ — $ 462 $ 12,104
Summary of the Changes in the Fair Value of Level 3 Financial Instruments	A summary of the changes in the fair value of Level 3 financial instruments, of which remeasurement of SARs, remeasurement of redeemable convertible preferred stock warrants, and strategic investment impairment are recognized in the consolidated statements of operations, is as follows (in thousands): Warrants Stock Appreciation Rights Strategic Investments Balance— December 31, 2019 $ 108 $ 36 $ — Change in fair value of redeemable convertible preferred stock warrants 52 — — Vesting and remeasurement of SARs, net — 232 — Balance— December 31, 2020 160 268 — Exercise of redeemable convertible preferred stock warrants (160) — — Vesting and remeasurement of SARs, net — 550 — Purchases of strategic investments — — 10,000 Balance— December 31, 2021 — 818 10,000 Vesting and remeasurement of SARs, net — (294) — Purchases of strategic investments — — 5,000 Amount reclassified from liability to equity upon exchange — (62) — Unrealized loss on strategic investments — — (2,896) Balance— December 31, 2022 $ — $ 462 $ 12,104

Consolidated balance sheet co_2

Consolidated balance sheet components (Tables)	12 Months Ended
	Dec. 31, 2022
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Summary of Cash, Cash Equivalents, and Marketable Securities	The amortized cost, unrealized gains and losses, and estimated fair value of cash, cash equivalents, and marketable securities consisted of the following (in thousands): As of December 31, 2022 Amortized Cost Unrealized Gains Unrealized Losses Fair Value Cash and cash equivalents: Cash $ 134,408 $ — $ — $ 134,408 Money market funds 130,377 — — 130,377 U.S. government securities 48,899 4 (3) 48,900 Total cash and cash equivalents 313,684 4 (3) 313,685 Marketable securities: U.S. government securities 151,900 30 (243) 151,687 Total cash, cash equivalents, and marketable securities $ 465,584 $ 34 $ (246) $ 465,372 Cash equivalents and marketable securities in an unrealized loss position consisted of the following (in thousands): December 31, 2022 Fair Value Gross Unrealized Losses Cash equivalents: U.S. government securities $ 24,960 $ (3) Marketable securities: U.S. government securities 59,057 (243) Total securities in an unrealized loss position $ 84,017 $ (246)
Summary of Prepaid Expenses and Other Current Assets	Prepaid expenses and other current assets consisted of the following (in thousands): December 31, December 31, 2022 2021 Prepaid expenses $ 10,512 $ 12,465 Capitalized cloud computing costs, current 941 808 Short term deposits 181 745 Other current assets 3,244 1,909 Prepaid expenses and other current assets $ 14,878 $ 15,927
Summary of Property and Equipment, Net	Property and equipment, net consisted of the following (in thousands): December 31, December 31, 2022 2021 Computers and equipment $ 7,820 $ 6,798 Furniture and fixtures 4,870 4,701 Purchased software 383 383 Leasehold improvements 19,109 18,932 Construction in progress — 18 Total property and equipment 32,182 30,832 Less accumulated depreciation and amortization (25,170) (20,945) Property and equipment, net $ 7,012 $ 9,887
Summary of Capitalized Computer Software	Capitalized software, net consisted of the following (in thousands): December 31, December 31, 2022 2021 Capitalized software $ 63,748 $ 43,804 Less accumulated amortization (36,336) (23,750) Capitalized software, net $ 27,412 $ 20,054
Summary of Expected Amortization Expense	As of December 31, 2022, expected amortization expense for capitalized software over the remaining asset lives was as follows (in thousands): 2023 $ 13,975 2024 9,651 2025 3,786 Total expected amortization $ 27,412 The expected future amortization expense for intangible assets as of December 31, 2022 was as follows (in thousands): 2023 $ 4,108 2024 2,795 2025 917 2026 917 2027 594 Total expected amortization $ 9,331

Leases (Tables)

Leases (Tables)	12 Months Ended
	Dec. 31, 2022
Leases [Abstract]
Summary of Other Information Pertaining to Operating Leases	The following tables set forth a summary of information pertaining to the Company’s operating leases (dollar amounts in thousands): Fiscal Year Ended Cash paid for amounts included in the measurement of operating lease liabilities, net of lease incentives $ 6,740 December 31, 2022 Weighted average remaining term (years) 2.0 Weighted average discount rate 3.8 %
Summary of Future Minimum Lease Payments	Future minimum lease payments under noncancellable operating leases with initial lease terms in excess of one year as of December 31, 2022, were as follows (in thousands): 2023 $ 7,135 2024 5,770 2025 809 2026 410 Gross lease payments 14,124 Less imputed interest (578) Present value of operating lease liabilities $ 13,546
Summary of Non cancellable Operating Future Minimum Lease Payments	Future minimum lease payments as measured under Topic 840 for noncancellable operating leases as of December 31, 2021, were as follows (in thousands): 2022 $ 7,826 2023 7,212 2024 5,921 2025 809 2026 410 Total lease commitments $ 22,178

Business combinations (Tables)

Business combinations (Tables)	12 Months Ended
	Dec. 31, 2022
Business Combination and Asset Acquisition [Abstract]
Summary of Assets and Liabilities Assumed	The assets acquired and liabilities assumed were recorded at fair value as follows (in thousands): Cash and cash equivalents $ 2,641 Accounts receivable, net 250 Prepaid expenses and other current assets 67 Property and equipment, net 133 Intangible assets 15,100 Goodwill 12,646 Accounts payable and other liabilities (596) Deferred revenue (1,610) Total acquisition consideration $ 28,631

Intangible assets, net and go_2

Intangible assets, net and goodwill (Tables)	12 Months Ended
	Dec. 31, 2022
Goodwill and Intangible Assets Disclosure [Abstract]
Summary of Intangible Assets Acquired through Business Combination	As of December 31, 2022, intangible assets, net acquired as part of the CorpU business combination were as follows (in thousands): Estimated Useful Lives Intangible Assets, Gross Accumulated Amortization Intangible Assets, Net Customer relationships 6 years $ 5,500 $ (1,239) $ 4,261 Vendor relationships 3 years 4,500 (2,028) 2,472 Developed technology 3 years 4,200 (1,893) 2,307 Tradename 2 years 900 (609) 291 Total $ 15,100 $ (5,769) $ 9,331 As of December 31, 2021, intangible assets, net acquired as part of the CorpU business combination were as follows (in thousands): Estimated Useful Lives Intangible Assets, Gross Accumulated Amortization Intangible Assets, Net Customer relationships 6 years $ 5,500 $ (323) $ 5,177 Vendor relationships 3 years 4,500 (529) 3,971 Developed technology 3 years 4,200 (493) 3,707 Tradename 2 years 900 (158) 742 Total $ 15,100 $ (1,503) $ 13,597
Summary of Expected Amortization Expense	As of December 31, 2022, expected amortization expense for capitalized software over the remaining asset lives was as follows (in thousands): 2023 $ 13,975 2024 9,651 2025 3,786 Total expected amortization $ 27,412 The expected future amortization expense for intangible assets as of December 31, 2022 was as follows (in thousands): 2023 $ 4,108 2024 2,795 2025 917 2026 917 2027 594 Total expected amortization $ 9,331

Accrued expenses and other cu_2

Accrued expenses and other current liabilities (Tables)	12 Months Ended
	Dec. 31, 2022
Payables and Accruals [Abstract]
Summary of Accrued Expenses and Other Current Liabilities	Accrued expenses and other current liabilities consist of the following (in thousands): December 31, December 31, 2022 2021 Accrued expenses $ 8,494 $ 7,326 Indirect tax reserves 6,627 18,392 Indirect tax payables 9,137 10,786 Deferred rent, current — 803 Other current liabilities 6,989 2,833 Accrued expenses and other current liabilities $ 31,247 $ 40,140
Summary of Changes to the Withholding Tax Reserve	Changes to the instructor withholding tax reserve are as follows (in thousands): Fiscal Year Ended December 31, 2022 2021 2020 Balance, beginning of period $ 17,036 $ 22,166 $ 20,926 Amounts charged to (released from) expense (781) (5,130) 2,826 Net payments and settlements (13,727) — (1,586) Balance, end of period $ 2,528 $ 17,036 $ 22,166

Commitment and contingencies (T

Commitment and contingencies (Tables)	12 Months Ended
	Dec. 31, 2022
Commitments and Contingencies Disclosure [Abstract]
Schedule of Future Noncancellable Commitments	Future noncancellable commitments under these arrangements as of December 31, 2022 were as follows (in thousands): 2023 $ 24,333 2024 15,860 2025 21,000 Total purchase commitments (1) $ 61,193 (1) Includes $45.0 million of non-cancelable contractual commitments as of December 31, 2022 related to the Company's third-party cloud infrastructure agreement, under which the Company committed to spend an aggregate of at least $45.0 million between January 2023 and December 2025, with a $12.0 million minimum purchase commitment each year. The Company is required to pay the residual difference if it fails to meet the aggregate minimum purchase commitment by December 2025.

Income Taxes (Tables)

Income Taxes (Tables)	12 Months Ended
	Dec. 31, 2022
Income Tax Disclosure [Abstract]
Schedule of Income before Income Tax, Domestic and Foreign	The domestic and foreign components of income (loss) before provision for income taxes consisted of the following (in thousands): Fiscal Year Ended December 31, 2022 2021 2020 Domestic $ (155,528) $ (80,243) $ (77,212) Foreign 3,939 1,400 2,741 Total net loss before taxes $ (151,589) $ (78,843) $ (74,471)
Schedule of Components of Income Tax Expense (Benefit)	The provision for income taxes consisted of the following (in thousands): Fiscal Year Ended December 31, 2022 2021 2020 Current: Federal $ — $ — $ — State 45 183 63 Foreign 2,241 1,149 2,937 Total current income tax expense 2,286 1,332 3,000 Deferred: Federal — — — State — — — Foreign — (149) 149 Total deferred income tax expense — (149) 149 Total provision for income taxes $ 2,286 $ 1,183 $ 3,149
Schedule of Effective Income Tax Rate Reconciliation	The reconciliation between the statutory federal income tax rate and the Company’s effective tax rate as a percentage of loss before income taxes is as follows: Fiscal Year Ended December 31, 2022 2021 2020 Federal tax expense 21.00 % 21.00 % 21.00 % State taxes, net of federal benefit 1.24 % 1.07 % 1.17 % Foreign rate differential (0.33) % (0.12) % (0.32) % Withholding taxes (0.60) % (0.78) % (3.06) % Nondeductible compensation (2.52) % (5.29) % — % Stock-based compensation (3.18) % 0.27 % (1.94) % Change in valuation allowance (21.41) % (34.54) % (21.16) % Research and development credits 4.69 % 16.87 % — % Other (0.40) % 0.02 % 0.08 % Effective tax rate (1.51) % (1.50) % (4.23) %
Schedule of Deferred Tax Assets and Liabilities	Significant components of the net deferred tax assets (liabilities) for the fiscal years ended December 31, 2022 and 2021, consisted of the following (in thousands): December 31, December 31, 2022 2021 Deferred tax assets: Accruals and reserves $ 5,107 $ 4,795 Deferred revenue 61,285 45,268 Net operating loss 30,047 42,008 Research and development tax credits 20,412 13,301 Stock-based compensation expense 7,995 2,952 Indirect tax reserves 1,496 4,107 Property and equipment, net 2,031 1,799 Capitalized research and development costs 23,475 — Operating lease liabilities 2,767 — Other 491 351 Gross deferred tax assets 155,106 114,581 Valuation allowance (129,453) (97,010) Total deferred tax assets 25,653 17,571 Deferred tax liabilities: Deferred contract costs (14,814) (10,009) Operating lease right-of-use assets (2,245) — Other deferred tax liabilities (8,594) (7,562) Total deferred tax liabilities (25,653) (17,571) Net deferred tax liabilities $ — $ —
Schedule of Unrecognized Tax Benefits Roll Forward	A reconciliation of the beginning and ending balance of unrecognized tax benefit is as follows (in thousands): Fiscal Year Ended December 31, 2022 2021 2020 Gross unrecognized tax benefits at the beginning of the year $ 3,608 $ 10,580 $ 146 Increases (decreases) related to prior year tax positions 224 (7,892) 7,006 Increases related to current year tax positions 1,478 920 3,428 Statute of limitations expirations — — — Gross unrecognized tax benefits at the end of the year $ 5,310 $ 3,608 $ 10,580

Stockholders' equity (Tables)

Stockholders' equity (Tables)	12 Months Ended
	Dec. 31, 2022
Share-Based Payment Arrangement [Abstract]
Summary of Common Stock Reserved for Future Issuance	Additionally, the Company had the following common stock available for future issuances of stock-based awards: December 31, December 31, 2022 2021 Shares available for future issuance under: 2021 Equity Incentive Plan 2,814,126 11,417,359 2021 Employee Stock Purchase Plan 1,929,578 2,800,000 Total shares of common stock available for future issuance 4,743,704 14,217,359
Summary of Weighted Average Assumptions, Options	The following table summarizes the weighted-average assumptions used in the Black-Scholes option-pricing model to estimate the fair value of the Exchanged Awards as of August 6, 2022: Risk-free interest rate 3.0% Expected volatility 68.6% Expected life (in years) 4.9 Expected dividend yield —% Fiscal Year Ended December 31, 2021 2020 Risk-free interest rate 1.0 % 0.5 % Expected volatility 60.5 % 57.3 % Expected life (in years) 6.0 5.9 Expected dividend yield — % — % The Company estimates the fair value of stock-based compensation for SARs by utilizing the Black-Scholes option-pricing model as described above. The calculation of grant date fair value was based on the following weighted average assumptions: Fiscal Year Ended December 31, 2021 2020 Risk-free interest rate 1.5 % 0.7 % Expected volatility 60.9 % 58.3 % Expected life (in years) 6.2 6.1 Expected dividend yield — % — % The following table summarizes the weighted-average assumptions used in the Black-Scholes option-pricing model to estimate the fair value of new grants made under the ESPP: Fiscal Year Ended December 31, 2022 2021 Risk-free interest rate 3.5 % 0.3 % Expected volatility 68.5 % 61.2 % Expected life (in years) 1.2 1.2 Expected dividend yield — % — %
Summary of Option Activity	The following is a summary of activity for stock options under the Equity Incentive Plans: Options Outstanding Weighted Average Exercise Price Weighted Average Remaining Contractual Term Aggregate Intrinsic Value Balance - December 31, 2021 19,942,259 $ 9.70 8.14 $ 226,350 Granted — — Exercised (1,569,999) 4.46 Canceled in connection with the Equity Exchange (6,762,489) 18.62 Canceled (1,326,000) 13.23 Balance - December 31, 2022 10,283,771 $ 4.18 6.38 $ 66,234 Vested & expected to vest as of December 31, 2022 10,283,771 $ 4.18 6.38 $ 66,234 Exercisable as of December 31, 2022 8,770,918 $ 3.91 6.26 $ 58,562
Summary of Stock Appreciation Rights	The following is a summary of activity for SARs under the Equity Incentive Plans: SARs Outstanding Weighted Average Exercise Price Weighted Average Remaining Contractual Term Aggregate Intrinsic Value Balance - December 31, 2021 106,155 $ 8.45 8.25 $ 1,267 Granted — — Exercised (743) 3.63 Canceled in connection with the Equity Exchange (21,055) 19.19 Canceled (2,587) 12.63 Balance - December 31, 2022 81,770 $ 5.44 6.90 $ 418 Vested & expected to vest as of December 31, 2022 81,770 $ 5.44 6.90 $ 418 Exercisable as of December 31, 2022 66,325 $ 5.21 6.81 $ 354
Summary of Restricted Stock Unit Activity	A summary of RSU activity under the 2021 Plan is as follows: RSUs Outstanding Weighted Average Grant Date Fair Value Unvested - December 31, 2021 2,545,051 $ 27.64 Granted 11,045,098 $ 13.79 Awarded in connection with the Equity Exchange (1) 7,133,544 $ 19.06 Released (3,409,002) $ 16.38 Canceled (1,136,590) $ 19.20 Unvested - December 31, 2022 16,178,101 $ 17.37 (1) Inclusive of 175,000 Performance-based awards that were separately modified, as discussed below.
Summary of Performance-Based Options	The following table summarizes the activities of Performance-Based Awards under the Equity Incentive Plans: Performance-Based Awards Outstanding Weighted Average Exercise Price Weighted Average Remaining Contractual Term Aggregate Intrinsic Value Balance - December 31, 2021 400,000 $ 10.12 8.60 $ 3,768 Granted — — Exercised — — Canceled (1) (350,000) 11.13 Balance - December 31, 2022 50,000 $ 3.06 5.58 $ 375 Vested & expected to vest as of December 31, 2022 50,000 $ 3.06 5.58 $ 375 Exercisable as of December 31, 2022 13,541 $ 3.06 5.58 $ 101 (1) 175,000 shares were canceled as part of the Equity Exchange, and 175,000 shares were canceled as part of the modification discussed above.
Summary of Stock-Based Compensation Expense	Total stock-based compensation expense included in the consolidated statements of operations was as follows (in thousands): Fiscal Year Ended December 31, 2022 2021 2020 Cost of revenue $ 5,360 $ 1,623 $ 418 Sales and marketing 29,054 8,637 7,518 Research and development 20,850 6,816 5,232 General and administrative 26,029 17,604 18,450 Total stock-based compensation expense $ 81,293 $ 34,680 $ 31,618

Net loss per share (Tables)

Net loss per share (Tables)	12 Months Ended
	Dec. 31, 2022
Earnings Per Share [Abstract]
Summary of Net Earnings (Loss) per Share	The following table presents the calculation of basic and diluted net loss per share attributable to common stockholders (in thousands, except share and per share amounts): Fiscal Year Ended December 31, 2022 2021 2020 Numerator: Net loss attributable to common stockholders $ (153,875) $ (80,026) $ (77,620) Denominator: Weighted-average shares used in computing net loss per share attributable to common stockholders Basic and diluted 140,873,504 54,972,827 33,384,438 Net loss per share attributable to common stockholders Basic and diluted $ (1.09) $ (1.46) $ (2.33)
Summary of Potentially Dilutive Securities Excluded from Computation of Diluted Net Loss per Share	The following potentially dilutive securities were excluded from the computation of diluted net loss per share calculations, because the impact of including them would have been anti-dilutive: Fiscal Year Ended December 31, 2022 2021 2020 Redeemable convertible preferred stock — — 85,391,338 Stock options 10,333,771 20,342,259 19,028,454 RSUs and restricted stock 16,218,968 2,606,351 — Contingently issuable shares under ESPP 116,601 60,880 — Redeemable convertible preferred stock warrants — — 12,595 Total potentially dilutive securities 26,669,340 23,009,490 104,432,387

Segment and geographic inform_2

Segment and geographic information (Tables)	12 Months Ended
	Dec. 31, 2022
Segment Reporting [Abstract]
Summary of Financial Information by Each Reportable Segment	Financial information for each reportable segment was as follows (in thousands): Fiscal Year Ended December 31, 2022 2021 2020 Revenue Consumer $ 315,059 $ 328,703 $ 326,454 Enterprise 314,038 186,954 103,445 Total revenue 629,097 515,657 429,899 Segment cost of revenue Consumer 149,254 159,342 165,804 Enterprise 104,577 63,984 35,519 Total segment cost of revenue 253,831 223,326 201,323 Segment gross profit Consumer 165,805 169,361 160,650 Enterprise 209,461 122,970 67,926 Total segment gross profit 375,266 292,331 228,576 Reconciliation of segment gross profit to gross profit Amortization of capitalized software 12,586 9,293 6,894 Amortization of intangible assets 2,900 1,022 — Depreciation 643 760 618 Stock-based compensation $ 5,360 $ 1,623 $ 418 Total reconciling items 21,489 12,698 7,930 Total gross profit $ 353,777 $ 279,633 $ 220,646
Summary of Revenue by Region	The following table summarizes the revenue by region based on the billing address of the Company’s customers (in thousands): Fiscal Year Ended December 31, 2022 2021 2020 North America $ 256,547 $ 199,268 $ 168,612 Europe, Middle East, Africa 189,618 168,612 139,005 Asia Pacific 137,829 107,924 85,847 Latin America 45,103 39,853 36,435 Total revenue $ 629,097 $ 515,657 $ 429,899
Summary of Long-lived Assets by Region	The following table presents the Company’s long-lived assets, which consist of tangible property and equipment, net of depreciation, and operating lease ROU assets, by geographic region (in thousands): December 31, December 31, 2022 2021 North America $ 12,782 $ 6,922 Rest of world 5,556 2,832 Total long-lived assets $ 18,338 $ 9,754

Summary of significant accoun_4

Summary of significant accounting policies - Narrative (Details)	12 Months Ended
	Dec. 31, 2022 USD ($) segment	Dec. 31, 2021 USD ($) segment	Dec. 31, 2020 USD ($) segment	Jan. 01, 2022 USD ($)
Concentration Risk [Line Items]
Number of operating segments | segment	2	2	2
Number of reportable segments | segment	2	2	2
Refund term	30 days
Advertising cost	$ 97,000,000	$ 105,200,000	$ 110,500,000
Expected dividend yield	0%
Amortization period	4 years
Impairment of strategic investment	$ 2,900,000	0
Operating lease right-of-use assets	11,377,000	$ 0
Operating lease liabilities	$ 13,546,000
Minimum
Concentration Risk [Line Items]
Consumer subscription duration	1 month
Maximum
Concentration Risk [Line Items]
Consumer subscription duration	1 year
Computers and equipment
Concentration Risk [Line Items]
Estimated useful lives	3 years
Purchased software
Concentration Risk [Line Items]
Estimated useful lives	3 years
Equipment
Concentration Risk [Line Items]
Estimated useful lives	3 years
Furniture and fixtures
Concentration Risk [Line Items]
Estimated useful lives	5 years
Software Development
Concentration Risk [Line Items]
Estimated useful lives	3 years
Accounting Standards Update 2016-02 | Cumulative Effect, Period of Adoption, Adjustment
Concentration Risk [Line Items]
Operating lease right-of-use assets				$ 17,600,000
Operating lease liabilities				$ 20,000,000

Summary of significant accoun_5

Summary of significant accounting policies - Summary of Allowance for Credit Losses (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Accounts Receivable, Allowance for Credit Loss [Roll Forward]
Balance at Beginning of Period	$ 678	$ 643	$ 582
Charged to Expenses	960	326	182
Charges Utilized/Written-off, Net of Recoveries	(110)	(291)	(121)
Balance at End of Period	$ 1,528	$ 678	$ 643

Revenue recognition - Narrative

Revenue recognition - Narrative (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2019
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Contract with customer, liability, revenue recognized	$ 204.4	$ 139.5	$ 83.4
Remaining performance obligation, amount	$ 478.7
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2023-01-01
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Remaining performance obligation, percentage	69%
Revenue, remaining performance obligation, period	12 months
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2024-01-01
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Remaining performance obligation, percentage	31%
Revenue, remaining performance obligation, period

Revenue recognition - Summary o

Revenue recognition - Summary of Deferred Revenue Balances by Reportable Segment (Details) - USD ($) $ in Thousands	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Disaggregation of Revenue [Line Items]
Total deferred revenue	$ 278,279	$ 210,554	$ 142,376	$ 87,709
Enterprise
Disaggregation of Revenue [Line Items]
Total deferred revenue	219,030	148,966	84,241	40,686
Consumer
Disaggregation of Revenue [Line Items]
Total deferred revenue	$ 59,249	$ 61,588	$ 58,135	$ 47,023

Revenue recognition - Summary_2

Revenue recognition - Summary of Deferred Contract Costs (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Deferred contract costs [Roll Forward]
Balance at Beginning of Period	$ 44,545	$ 25,837	$ 14,380
Additions	53,379	36,509	18,943
Amortization Expense	(32,279)	(17,801)	(7,486)
Balance at End of Period	$ 65,645	$ 44,545	$ 25,837

Investments and fair value me_3

Investments and fair value measurements - Narrative (Details) - USD ($)	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Impairment of strategic investment	$ 2,900,000	$ 0
Exercise price of warrants (in USD per share)		$ 0.196
Fair value of warrants		$ 200,000
Series A-1 Preferred Stock
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Issuance of convertible preferred stock, net of issuance costs (in shares)		12,595

Investments and fair value me_4

Investments and fair value measurements - Summary of Investments on Condensed Consolidated Balance Sheets (Details) - USD ($) $ in Thousands	Dec. 31, 2022	Dec. 31, 2021
Assets
Marketable securities	$ 465,372
Strategic investments	12,104	$ 10,000
Level 1
Assets
Cash equivalents	130,377
Strategic investments	0	0
Non-current liabilities:
Cash settled stock appreciation rights	0	0
Level 1 | U.S. government securities
Assets
Cash equivalents	0
Marketable securities	0
Level 1 | Money market funds
Assets
Cash equivalents	130,377
Level 2
Assets
Cash equivalents	48,900
Strategic investments	0	0
Non-current liabilities:
Cash settled stock appreciation rights	0	0
Level 2 | U.S. government securities
Assets
Cash equivalents	48,900
Marketable securities	151,687
Level 2 | Money market funds
Assets
Cash equivalents	0
Level 3
Assets
Cash equivalents	0
Strategic investments	12,104	10,000
Non-current liabilities:
Cash settled stock appreciation rights	462	$ 818
Level 3 | U.S. government securities
Assets
Cash equivalents	0
Marketable securities	0
Level 3 | Money market funds
Assets
Cash equivalents	$ 0

Investments and fair value me_5

Investments and fair value measurements - Summary of the Changes in the Fair Value of Level 3 Financial Instruments (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Preferred Stock
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Unrealized loss on strategic investments	$ (2,896)
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Beginning balance	10,000	$ 0	$ 0
Purchases of strategic investments	5,000	10,000
Ending balance	12,104	10,000	0
Warrants
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Beginning balance	0	160	108
Unrealized loss on strategic investments			52
Exercise of redeemable convertible preferred stock warrants		(160)
Ending balance	0	0	160
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Purchases of strategic investments	0	0
Stock Appreciation Rights
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Beginning balance	818	268	36
Vesting and remeasurement of SARs, net	(294)	550	232
Amount reclassified from liability to equity upon exchange	(62)
Unrealized loss on strategic investments			0
Ending balance	462	818	$ 268
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Purchases of strategic investments	$ 0	$ 0

Consolidated balance sheet co_3

Consolidated balance sheet components - Summary of Cash, Cash Equivalents, and Marketable Securities (Details) $ in Thousands	Dec. 31, 2022 USD ($)
Cash and Cash Equivalents [Line Items]
Amortized Cost	$ 465,584
Unrealized Gains	34
Unrealized Losses	(246)
Fair Value	465,372
Unrealized Loss Position, Fair Value	84,017
Cash and Cash Equivalents
Cash and Cash Equivalents [Line Items]
Amortized Cost	313,684
Unrealized Gains	4
Unrealized Losses	(3)
Fair Value	313,685
Unrealized Loss Position, Fair Value	24,960
Cash and Cash Equivalents | Cash
Cash and Cash Equivalents [Line Items]
Amortized Cost	134,408
Unrealized Gains	0
Unrealized Losses	0
Fair Value	134,408
Cash and Cash Equivalents | Money market funds
Cash and Cash Equivalents [Line Items]
Amortized Cost	130,377
Unrealized Gains	0
Unrealized Losses	0
Fair Value	130,377
Cash and Cash Equivalents | U.S. government securities
Cash and Cash Equivalents [Line Items]
Amortized Cost	48,899
Unrealized Gains	4
Unrealized Losses	(3)
Fair Value	48,900
Marketable Securities | U.S. government securities
Cash and Cash Equivalents [Line Items]
Amortized Cost	151,900
Unrealized Gains	30
Unrealized Losses	(243)
Fair Value	151,687
Unrealized Loss Position, Fair Value	$ 59,057

Consolidated balance sheet co_4

Consolidated balance sheet components - Narrative (Details) $ in Millions	12 Months Ended
	Dec. 31, 2022 USD ($) security	Dec. 31, 2021 USD ($)	Dec. 31, 2020 USD ($)
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Realized gains and losses reclassified from accumulated other comprehensive loss to other income (expense), net	$ 0
Number of continuous unrealized loss position for twelve months or longer | security	0
Depreciation	$ 4.3	$ 4.5	$ 4.2
Amortization of capitalized software	$ 12.6	$ 9.3	$ 6.9

Consolidated balance sheet co_5

Consolidated balance sheet components - Summary of Prepaid Expenses and Other Current Assets (Details) - USD ($) $ in Thousands	Dec. 31, 2022	Dec. 31, 2021
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Prepaid expenses	$ 10,512	$ 12,465
Capitalized cloud computing costs, current	941	808
Short term deposits	181	745
Other current assets	3,244	1,909
Prepaid expenses and other current assets	$ 14,878	$ 15,927

Consolidated balance sheet co_6

Consolidated balance sheet components - Summary of Property and Equipment, Net (Details) - USD ($) $ in Thousands	Dec. 31, 2022	Dec. 31, 2021
Property, Plant and Equipment [Line Items]
Total property and equipment	$ 32,182	$ 30,832
Less accumulated depreciation and amortization	(25,170)	(20,945)
Property and equipment, net	7,012	9,887
Computers and equipment
Property, Plant and Equipment [Line Items]
Total property and equipment	7,820	6,798
Furniture and fixtures
Property, Plant and Equipment [Line Items]
Total property and equipment	4,870	4,701
Purchased software
Property, Plant and Equipment [Line Items]
Total property and equipment	383	383
Leasehold improvements
Property, Plant and Equipment [Line Items]
Total property and equipment	19,109	18,932
Construction in progress
Property, Plant and Equipment [Line Items]
Total property and equipment	$ 0	$ 18

Consolidated balance sheet co_7

Consolidated balance sheet components - Summary of Capitalized Computer Software (Details) - USD ($) $ in Thousands	Dec. 31, 2022	Dec. 31, 2021
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Capitalized software	$ 63,748	$ 43,804
Less accumulated amortization	(36,336)	(23,750)
Total expected amortization	$ 27,412	$ 20,054

Consolidated balance sheet co_8

Consolidated balance sheet components - Summary of Expected Amortization Expense (Details) - USD ($) $ in Thousands	Dec. 31, 2022	Dec. 31, 2021
Organization, Consolidation and Presentation of Financial Statements [Abstract]
2023	$ 13,975
2024	9,651
2025	3,786
Total expected amortization	$ 27,412	$ 20,054

Leases - Narrative (Details)

Leases - Narrative (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Leases [Abstract]
Operating lease costs	$ 6.8
Variable lease, costs	0.8
Sublease income	$ 0
Operating lease, rent expense		$ 5.8	$ 5.5

Leases - Other Information (Det

Leases - Other Information (Details) $ in Thousands	12 Months Ended
	Dec. 31, 2022 USD ($)
Leases [Abstract]
Cash paid for amounts included in the measurement of operating lease liabilities, net of lease incentives	$ 6,740
Weighted average remaining term (years)	2 years
Weighted average discount rate	3.80%

Leases - Summary of Future Mini

Leases - Summary of Future Minimum Lease Payments (Details) $ in Thousands	Dec. 31, 2022 USD ($)
Leases [Abstract]
2023	$ 7,135
2024	5,770
2025	809
2026	410
Gross lease payments	14,124
Less imputed interest	(578)
Present value of operating lease liabilities	$ 13,546

Leases - Summary of Non cancell

Leases - Summary of Non cancellable Operating Future Minimum Lease Payments (Details) $ in Thousands	Dec. 31, 2021 USD ($)
Leases [Abstract]
2022	$ 7,826
2023	7,212
2024	5,921
2025	809
2026	410
Total lease commitments	$ 22,178

Business combinations - Narrati

Business combinations - Narrative (Details) - CorpU - USD ($) $ in Millions		12 Months Ended
	Aug. 24, 2021	Dec. 31, 2022
Business Acquisition [Line Items]
Business combination, consideration transferred	$ 28.6
Cash consideration paid	$ 27.1	$ 1.5
Acquisition costs		$ 0.3
Restricted stock
Business Acquisition [Line Items]
Restricted stock issued for business combination (in shares)	61,300
Unrecognized compensation costs, period for recognition (in years)	3 years	1 year 7 months 6 days

Business combinations - Summary

Business combinations - Summary of Assets and Liabilities Assumed (Details) - USD ($) $ in Thousands	Dec. 31, 2022	Dec. 31, 2021	Aug. 24, 2021
Business Acquisition [Line Items]
Goodwill	$ 12,646	$ 12,646
CorpU
Business Acquisition [Line Items]
Cash and cash equivalents			$ 2,641
Accounts receivable, net			250
Prepaid expenses and other current assets			67
Property and equipment, net			133
Intangible assets			15,100
Goodwill			12,646
Accounts payable and other liabilities			(596)
Deferred revenue			(1,610)
Total acquisition consideration			$ 28,631

Intangible assets, net and go_3

Intangible assets, net and goodwill - Summary of Intangible Assets Acquired through Business Combination (Details) - USD ($) $ in Thousands	6 Months Ended	12 Months Ended
	Jun. 30, 2022	Dec. 31, 2022	Dec. 31, 2021
Acquired Finite-Lived Intangible Assets [Line Items]
Intangible Assets, Gross		$ 15,100	$ 15,100
Accumulated Amortization		(5,769)	(1,503)
Intangible Assets, Net		$ 9,331	13,597
Customer relationships
Acquired Finite-Lived Intangible Assets [Line Items]
Estimated Useful Lives	6 years	6 years
Intangible Assets, Gross		$ 5,500	5,500
Accumulated Amortization		(1,239)	(323)
Intangible Assets, Net		$ 4,261	5,177
Vendor relationships
Acquired Finite-Lived Intangible Assets [Line Items]
Estimated Useful Lives	3 years	3 years
Intangible Assets, Gross		$ 4,500	4,500
Accumulated Amortization		(2,028)	(529)
Intangible Assets, Net		$ 2,472	3,971
Developed technology
Acquired Finite-Lived Intangible Assets [Line Items]
Estimated Useful Lives	3 years	3 years
Intangible Assets, Gross		$ 4,200	4,200
Accumulated Amortization		(1,893)	(493)
Intangible Assets, Net		$ 2,307	3,707
Tradename
Acquired Finite-Lived Intangible Assets [Line Items]
Estimated Useful Lives	2 years	2 years
Intangible Assets, Gross		$ 900	900
Accumulated Amortization		(609)	(158)
Intangible Assets, Net		$ 291	$ 742

Intangible assets, net and go_4

Intangible assets, net and goodwill - Narrative (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	Aug. 24, 2021
Finite-Lived Intangible Assets [Line Items]
Amortization of intangible assets	$ 4,300	$ 1,500
Goodwill	$ 12,646	$ 12,646
CorpU
Finite-Lived Intangible Assets [Line Items]
Goodwill			$ 12,646

Intangible assets, net and go_5

Intangible assets, net and goodwill - Summary of Expected Amortization Expense (Details) - USD ($) $ in Thousands	Dec. 31, 2022	Dec. 31, 2021
Goodwill and Intangible Assets Disclosure [Abstract]
2023	$ 4,108
2024	2,795
2025	917
2026	917
2027	594
Intangible Assets, Net	$ 9,331	$ 13,597

Accrued expenses and other cu_3

Accrued expenses and other current liabilities - Summary of Accrued Expenses and Other Current Liabilities (Details) - USD ($) $ in Thousands	Dec. 31, 2022	Dec. 31, 2021
Payables and Accruals [Abstract]
Accrued expenses	$ 8,494	$ 7,326
Indirect tax reserves	6,627	18,392
Indirect tax payables	9,137	10,786
Deferred rent, current	0	803
Other current liabilities	6,989	2,833
Accrued expenses and other current liabilities	$ 31,247	$ 40,140

Accrued expenses and other cu_4

Accrued expenses and other current liabilities - Changes to Withholding Tax Reserve (Details) - Historical Tax Withholding Possible Loss - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Loss Contingency Accrual [Roll Forward]
Balance, beginning of period	$ 17,036	$ 22,166	$ 20,926
Amounts charged to (released from) expense	(781)	(5,130)	2,826
Net payments and settlements	(13,727)	0	(1,586)
Balance, end of period	$ 2,528	$ 17,036	$ 22,166

Commitment and contingencies -

Commitment and contingencies - Schedule of Future Noncancellable Commitments (Details) $ in Thousands	Dec. 31, 2022 USD ($)
Commitments and Contingencies Disclosure [Abstract]
2023	$ 24,333
2024	15,860
2025	21,000
Total purchase commitments	61,193
Contractual Obligation	45,000
Non-cancelable purchase commitment	$ 12,000

Income taxes - Domestic and For

Income taxes - Domestic and Foreign Components of Income (Loss) before Taxes (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Income Tax Disclosure [Abstract]
Domestic	$ (155,528)	$ (80,243)	$ (77,212)
Foreign	3,939	1,400	2,741
Net loss before taxes	$ (151,589)	$ (78,843)	$ (74,471)

Income taxes - Provision for In

Income taxes - Provision for Income Taxes (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Current:
Federal	$ 0	$ 0	$ 0
State	45	183	63
Foreign	2,241	1,149	2,937
Total current income tax expense	2,286	1,332	3,000
Deferred:
Federal	0	0	0
State	0	0	0
Foreign	0	(149)	149
Total deferred income tax expense	0	(149)	149
Total provision for income taxes	$ 2,286	$ 1,183	$ 3,149

Income taxes - Narrative (Detai

Income taxes - Narrative (Details) $ in Thousands	12 Months Ended
	Dec. 31, 2022 USD ($) ownership	Dec. 31, 2021 USD ($)	Dec. 31, 2020 USD ($)	Dec. 31, 2019 USD ($)
Operating Loss Carryforwards [Line Items]
Effective income tax rate, percent	(1.51%)	(1.50%)	(4.23%)
Valuation allowance	$ 129,453	$ 97,010
Valuation allowance increase	$ 32,500
Number Of Ownership Changes | ownership	2
Research and development tax credits	$ 20,412	13,301
Net operating loss carryforward, amount limited by Section 382	3,200
Unrecognized tax benefits	5,310	3,608	$ 10,580	$ 146
Potential tax associated with foreign earnings being repatriated	300
Deferred tax liability, CARES Act	2,600
Payment of deferred taxes, CARES Act	1,100	1,500
Domestic Tax Authority
Operating Loss Carryforwards [Line Items]
Net operating loss carryforward	132,700
Net operating loss carryforward subject to expiration	44,500
Net operating loss carryforward not subject to expiration	88,200
Research and development tax credits	15,500
Domestic Tax Authority | CorpU
Operating Loss Carryforwards [Line Items]
Net operating loss carryforward subject to expiration		20,700
Domestic Tax Authority | Tax Year 2010-2012
Operating Loss Carryforwards [Line Items]
Net operating loss carryforward subject to expiration	3,400
State and Local Jurisdiction
Operating Loss Carryforwards [Line Items]
Net operating loss carryforward		$ 31,700
Research and development tax credits	$ 12,300

Income taxes - Effective Tax Ra

Income taxes - Effective Tax Rate Reconciliation (Details)	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Income Tax Disclosure [Abstract]
Federal tax expense	21%	21%	21%
State taxes, net of federal benefit	1.24%	1.07%	1.17%
Foreign rate differential	(0.33%)	(0.12%)	(0.32%)
Withholding taxes	(0.0060)	(0.0078)	(0.0306)
Nondeductible compensation	(2.52%)	(5.29%)	0%
Stock-based compensation	(3.18%)	0.27%	(1.94%)
Change in valuation allowance	(21.41%)	(34.54%)	(21.16%)
Research and development credits	4.69%	16.87%	0%
Other	(0.40%)	0.02%	0.08%
Effective tax rate	(1.51%)	(1.50%)	(4.23%)

Income taxes - Deferred Tax Ass

Income taxes - Deferred Tax Assets and Liabilities (Details) - USD ($) $ in Thousands	Dec. 31, 2022	Dec. 31, 2021
Deferred tax assets:
Accruals and reserves	$ 5,107	$ 4,795
Deferred revenue	61,285	45,268
Net operating loss	30,047	42,008
Research and development tax credits	20,412	13,301
Stock-based compensation expense	7,995	2,952
Indirect tax reserves	1,496	4,107
Property and equipment, net	2,031	1,799
Capitalized research and development costs	23,475	0
Operating lease liabilities	2,767	0
Other	491	351
Gross deferred tax assets	155,106	114,581
Valuation allowance	(129,453)	(97,010)
Total deferred tax assets	25,653	17,571
Deferred tax liabilities:
Deferred contract costs	(14,814)	(10,009)
Operating lease right-of-use assets	(2,245)	0
Other deferred tax liabilities	(8,594)	(7,562)
Total deferred tax liabilities	(25,653)	(17,571)
Net deferred tax liabilities	$ 0	$ 0

Income taxes - Unrecognized Tax

Income taxes - Unrecognized Tax Benefits (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward]
Gross unrecognized tax benefits at the beginning of the year	$ 3,608	$ 10,580	$ 146
Increases (decreases) related to prior year tax positions		(7,892)
Increases (decreases) related to prior year tax positions	224		7,006
Increases related to current year tax positions	1,478	920	3,428
Statute of limitations expirations	0	0	0
Gross unrecognized tax benefits at the end of the year	$ 5,310	$ 3,608	$ 10,580

Employee retirement plan (Detai

Employee retirement plan (Details) - USD ($)	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Retirement Benefits [Abstract]
Employer matching contribution, percent of match	25%
Employer matching contribution, percent of employees' gross pay	6%
Maximum annual contributions per employee	$ 500
Vesting period (in years)	2 years
Annual vesting percentage	50%
Vesting percentage after two years of employment	1
Contributions made	$ 500,000	$ 400,000	$ 200,000

Related party transactions (Det

Related party transactions (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Naspers
Related Party Transaction [Line Items]
Ownership percentage	5%
Affiliated Entity | Naspers Ltd. and Other Entity
Related Party Transaction [Line Items]
Revenue from related parties	$ 1.5	$ 1.5	$ 1.3
Accounts receivable, related parties	0.1	0.1
Affiliated Entity | Certain Vendors
Related Party Transaction [Line Items]
General and administrative expenses, related party	0.9	0.9	$ 0.3
Accounts payable, related parties	0	$ 0.1
Board of Directors | Enterprise Subscription Offering
Related Party Transaction [Line Items]
Revenue from related parties	0.5
Accounts receivable, related parties	$ 0.4

Stockholders' equity - Narrativ

Stockholders' equity - Narrative (Details)

1 Months Ended

3 Months Ended

12 Months Ended

Aug. 06, 2022 USD ($) shares

May 20, 2022 USD ($)

Aug. 24, 2021 $ / shares shares

Nov. 30, 2022 shares

Feb. 28, 2022 shares

Sep. 30, 2022 USD ($)

Dec. 31, 2022 USD ($) vote award period $ / shares shares

Dec. 31, 2021 USD ($) award $ / shares shares

Dec. 31, 2020 USD ($) $ / shares shares

Dec. 31, 2018 installment shares

Jul. 11, 2022 $ / shares

Oct. 29, 2021 shares

Share-based Compensation Arrangement by Share-based Payment Award [Line Items]

Preferred stock, shares authorized (in shares)

50,000,000

50,000,000

Preferred stock, par value (in dollars per share) | $ / shares

$ 0.00001

$ 0.00001

Number of votes per common stock | vote

1

Equity exchange participation rate

97%

Stock-based compensation in capitalized costs | $

$ 45,700,000

$ 5,911,000

$ 2,571,000

$ 749,000

Award vesting date

6 years

Aggregate intrinsic value of options exercised in period | $

13,700,000

$ 59,700,000

34,800,000

Unrecognized compensation costs, options | $

$ 5,500,000

Total shares of common stock reserved (in shares)

4,743,704

14,217,359

Stock-based compensation | $

$ 81,293,000

$ 34,680,000

31,618,000

Stock-based compensation capitalized as a software | $

$ 5,800,000

$ 2,500,000

$ 700,000

Tender Offer to Sell Common Stock to an Investor

Share-based Compensation Arrangement by Share-based Payment Award [Line Items]

Number of shares sold in initial public offering (in shares)

236,086

Initial public offering, price per share (in dollars per share) | $ / shares

$ 23.75

$ 11.22

Stock-based compensation | $

$ 1,600,000

$ 3,500,000

Tender offer to sell vested stock options and common stock

Share-based Compensation Arrangement by Share-based Payment Award [Line Items]

Number of shares sold in initial public offering (in shares)

891,265

Other Equity Transaction

Share-based Compensation Arrangement by Share-based Payment Award [Line Items]

Stock-based compensation | $

$ 4,000,000

$ 17,900,000

Stock Options And SARs

Share-based Compensation Arrangement by Share-based Payment Award [Line Items]

Exercise price range options and non options (in dollars per share) | $ / shares

$ 11.13

Weighted average grant date fair value, SARs (in USD per share) | $ / shares

$ 10

Restricted Stock Units (RSUs)

Share-based Compensation Arrangement by Share-based Payment Award [Line Items]

Stock options to purchase common stock (in shares)

16,178,101

2,545,051

Conversion basis

1

Shares exchanged

6,958,544

Number of shares vested (in shares)

350,000

Unrecognized compensation costs, period for recognition (in years)

3 years 1 month 6 days

Unrecognized compensation costs, excluding options | $

$ 244,400,000

Restricted stock issued for business combination, grant date fair value (in dollars per share) | $ / shares

$ 17.37

$ 27.64

Aggregate fair value of awards vested during the period | $ / shares

$ 50,700,000

Restricted Stock Units (RSUs) | Minimum

Share-based Compensation Arrangement by Share-based Payment Award [Line Items]

Award vesting date

2 years

Award vesting period (in years)

3 years

Restricted Stock Units (RSUs) | Maximum

Share-based Compensation Arrangement by Share-based Payment Award [Line Items]

Award vesting date

3 years

Award vesting period (in years)

4 years

Stock options

Share-based Compensation Arrangement by Share-based Payment Award [Line Items]

Stock options to purchase common stock (in shares)

10,333,771

20,342,259

Contractual term (in years)

10 years

Award vesting period (in years)

4 years

Unrecognized compensation costs, period for recognition (in years)

10 months 24 days

Stock Appreciation Rights

Share-based Compensation Arrangement by Share-based Payment Award [Line Items]

Contractual term (in years)

10 years

Award vesting period (in years)

4 years

Unrecognized compensation costs, period for recognition (in years)

1 year

Granted (in shares)

0

Unrecognized compensation costs, excluding options | $

$ 100,000

Canceled (in shares)

2,587

Weighted average grant date fair value, SARs (in USD per share) | $ / shares

$ 22.47

$ 6.04

Performance-Based Awards

Share-based Compensation Arrangement by Share-based Payment Award [Line Items]

Granted (in shares)

350,000

50,000

Unrecognized compensation costs, period for recognition (in years)

1 year 4 months 24 days

Number of Performance-Based Awards outstanding | award

1

2

Number of equal monthly installments | installment

48

Unrecognized compensation costs | $

$ 100,000

Performance-Based Awards | Share-based Payment Arrangement, Tranche One

Share-based Compensation Arrangement by Share-based Payment Award [Line Items]

Award vesting rights, percentage

50%

Required annual recurring revenues, vesting term | $

$ 230,000,000

$ 230,000,000

Canceled (in shares)

175,000

Performance-Based Awards | Share-based Payment Arrangement, Tranche Two

Share-based Compensation Arrangement by Share-based Payment Award [Line Items]

Stock-based compensation in capitalized costs | $

$ 900,000

Award vesting rights, percentage

50%

Required annual recurring revenues, vesting term | $

$ 330,000,000

$ 330,000,000

Canceled (in shares)

175,000

Contingently issuable shares under ESPP

Share-based Compensation Arrangement by Share-based Payment Award [Line Items]

Unrecognized compensation costs, period for recognition (in years)

1 year 7 months 6 days

Minimum annual increase in shares reserved for issuance

1%

Unrecognized compensation costs, excluding options | $

$ 8,900,000

Shares issued (in shares)

870,442

Total shares of common stock reserved (in shares)

2,800,000

Percent of outstanding shares

300%

ESPP discount percentage from market price, beginning of purchase period

15%

Consecutive offering period

24 months

Number of purchase periods | period

4

Purchase period

6 months

ESPP purchase price of common stock, percent of market price

85%

Incremental compensation cost | $

$ 3,400,000

Restricted stock | CorpU

Share-based Compensation Arrangement by Share-based Payment Award [Line Items]

Unrecognized compensation costs, period for recognition (in years)

3 years

1 year 7 months 6 days

Unrecognized compensation costs, excluding options | $

$ 1,100,000

Stock-based compensation | $

$ 700,000

$ 200,000

Restricted stock issued for business combination (in shares)

61,300

Restricted stock issued for business combination, grant date fair value (in dollars per share) | $ / shares

$ 34.14

2021 Stock incentive Plan

Share-based Compensation Arrangement by Share-based Payment Award [Line Items]

Stock options to purchase common stock (in shares)

10,283,771

19,942,259

Number of shares reserved for future issuance (in shares)

13,800,000

Annual percentage increase, term

0.05

Granted (in shares)

0

Weighted average grant date fair value, options (in USD per share) | $ / shares

$ 16.01

$ 5.48

Stockholders' equity - Summary

Stockholders' equity - Summary of Common Stock Reserved for Future Issuance (Details) - shares	Dec. 31, 2022	Dec. 31, 2021
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Total shares of common stock reserved (in shares)	4,743,704	14,217,359
2021 Equity Incentive Plan
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock options available for future issuance (in shares)	2,814,126	11,417,359
2021 Employee Stock Purchase Plan
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock options available for future issuance (in shares)	1,929,578	2,800,000

Stockholders' equity - Summar_2

Stockholders' equity - Summary of Weighted Average Assumptions, Options (Details)		12 Months Ended
	Aug. 06, 2022	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Expected dividend yield		0%
Stock options
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Risk-free interest rate	3%		1%	0.50%
Expected volatility	68.60%		60.50%	57.30%
Expected life (in years)	4 years 10 months 24 days		6 years	5 years 10 months 24 days
Expected dividend yield	0%		0%	0%
Stock Appreciation Rights
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Risk-free interest rate			1.50%	0.70%
Expected volatility			60.90%	58.30%
Expected life (in years)			6 years 2 months 12 days	6 years 1 month 6 days
Expected dividend yield			0%	0%
Employee Stock Option
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Risk-free interest rate		3.50%	0.30%
Expected volatility		68.50%	61.20%
Expected life (in years)		1 year 2 months 12 days	1 year 2 months 12 days
Expected dividend yield		0%	0%

Stockholders' equity - Summar_3

Stockholders' equity - Summary of Stock Option Activity (Details) - USD ($) $ / shares in Units, $ in Thousands	1 Months Ended	12 Months Ended
	Feb. 28, 2022	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2018
2021 Stock incentive Plan
Options Outstanding
Outstanding, beginning balance (in shares)		19,942,259
Granted (in shares)		0
Exercised (in shares)		(1,569,999)
Canceled in connection with the Equity Exchange (in shares)		(6,762,489)
Canceled (in shares)		(1,326,000)
Outstanding, ending balance (in shares)		10,283,771	19,942,259
Vested & expected to vest, awards outstanding (in shares)		10,283,771
Exercisable, awards outstanding (in shares)		8,770,918
Weighted Average Exercise Price
Outstanding, beginning balance (in USD per share)		$ 9.70
Granted (in USD per share)		0
Exercised (in USD per share)		4.46
Canceled in connection with the Equity Exchange (in USD per share)		18.62
Canceled (in USD per share)		13.23
Outstanding, ending balance (in USD per share)		4.18	$ 9.70
Vested & expected to vest, weighted average exercise price (in USD per shares)		4.18
Exercisable, weighted average exercise price (in USD per share)		$ 3.91
Outstanding, weighted average remaining contractual term		6 years 4 months 17 days	8 years 1 month 20 days
Outstanding, aggregate intrinsic value		$ 66,234	$ 226,350
Vested & expected to vest, weighted average remaining contractual term		6 years 4 months 17 days
Vested & expected to vest, aggregate intrinsic value		$ 66,234
Exercisable, weighted average remaining contractual term		6 years 3 months 3 days
Exercisable, aggregate intrinsic value		$ 58,562
Performance-Based Awards
Options Outstanding
Granted (in shares)				350,000	50,000
Performance-Based Awards | Share-based Payment Arrangement, Tranche One
Weighted Average Exercise Price
Canceled (in shares)	175,000
Performance-Based Awards | Share-based Payment Arrangement, Tranche Two
Weighted Average Exercise Price
Canceled (in shares)	175,000
Performance-Based Awards | Amended and Restated 2010 Equity Incentive Plan
Options Outstanding
Outstanding, beginning balance (in shares)		400,000
Granted (in shares)		0
Exercised (in shares)		0
Canceled (in shares)		(350,000)
Outstanding, ending balance (in shares)		50,000	400,000
Vested & expected to vest, awards outstanding (in shares)		50,000
Exercisable, awards outstanding (in shares)		13,541
Weighted Average Exercise Price
Outstanding, beginning balance (in USD per share)		$ 10.12
Granted (in USD per share)		0
Exercised (in USD per share)		0
Canceled (in USD per share)		11.13
Outstanding, ending balance (in USD per share)		3.06	$ 10.12
Vested & expected to vest, weighted average exercise price (in USD per shares)		3.06
Exercisable, weighted average exercise price (in USD per share)		$ 3.06
Outstanding, weighted average remaining contractual term		5 years 6 months 29 days	8 years 7 months 6 days
Outstanding, aggregate intrinsic value		$ 375	$ 3,768
Vested & expected to vest, weighted average remaining contractual term		5 years 6 months 29 days
Vested & expected to vest, aggregate intrinsic value		$ 375
Exercisable, weighted average remaining contractual term		5 years 6 months 29 days
Exercisable, aggregate intrinsic value		$ 101

Stockholders' equity - Summar_4

Stockholders' equity - Summary of SARs Activity (Details) - Stock Appreciation Rights - USD ($) $ / shares in Units, $ in Thousands	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021
SARs Outstanding
Outstanding, beginning balance (in shares)	106,155
Granted (in shares)	0
Exercised (in shares)	(743)
Canceled in connection with the Equity Exchange (in shares)	(21,055)
Canceled (in shares)	(2,587)
Outstanding, ending balance (in shares)	81,770	106,155
Vested and expected to vest, SARs outstanding (in shares)	81,770
Exercisable, SARs outstanding (in shares)	66,325
Weighted Average Exercise Price
Outstanding, beginning balance (in USD per share)	$ 8.45
Granted (in USD per share)	0
Exercised (in USD per share)	3.63
Canceled in connection with the Equity Exchange (in USD per share)	19.19
Canceled (in USD per share)	12.63
Outstanding, ending balance (in USD per share)	5.44	$ 8.45
Vested and expected to vest, weighted average exercise price (in USD per shares)	5.44
Exercisable, weighted average exercise price (in USD per share)	$ 5.21
Outstanding, weighted average remaining contractual term	6 years 10 months 24 days	8 years 3 months
Outstanding, aggregate intrinsic value	$ 418	$ 1,267
Vested and expected to vest, weighted average remaining contractual term	6 years 10 months 24 days
Vested and expected to vest, aggregate intrinsic value	$ 418
Exercisable, weighted average remaining contractual term	6 years 9 months 21 days
Exercisable, aggregate intrinsic value	$ 354

Stockholders' equity - RSU Acti

Stockholders' equity - RSU Activity (Details) - $ / shares	1 Months Ended	12 Months Ended
	Feb. 28, 2022	Dec. 31, 2022
Restricted Stock Units (RSUs)
RSUs Outstanding
Unvested beginning balance (in shares)		2,545,051
Granted (in shares)		11,045,098
Awarded in connection with the Equity Exchange (in shares)		7,133,544
Released (in shares)		(3,409,002)
Canceled (in shares)		(1,136,590)
Unvested ending balance (in shares)		16,178,101
Weighted Average Grant Date Fair Value
Unvested beginning balance (in USD per share)		$ 27.64
Granted (in USD per share)		13.79
Awarded in connection with the Equity Exchange (in USD per share)		19.06
Released (in USD per share)		16.38
Canceled (in USD per share)		19.20
Unvested ending balance (in USD per share)		$ 17.37
Performance-Based Awards | Share-based Payment Arrangement, Tranche Two
Weighted Average Grant Date Fair Value
Number of awards separately modified (in shares)	175,000

Stockholders' equity - Stock-Ba

Stockholders' equity - Stock-Based Compensation Expense (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]
Stock-based compensation	$ 81,293	$ 34,680	$ 31,618
Cost of revenue
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]
Stock-based compensation	5,360	1,623	418
Sales and marketing
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]
Stock-based compensation	29,054	8,637	7,518
Research and development
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]
Stock-based compensation	20,850	6,816	5,232
General and administrative
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]
Stock-based compensation	$ 26,029	$ 17,604	$ 18,450

Net loss per share - Summary of

Net loss per share - Summary of Net Earnings (Loss) per Share (Details) - USD ($) $ / shares in Units, $ in Thousands	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Numerator:
Net loss attributable to common stockholders	$ (153,875)	$ (80,026)	$ (77,620)
Net loss attributable to common stockholders	$ (153,875)	$ (80,026)	$ (77,620)
Weighted-average shares used in computing net loss per share attributable to common stockholders
Basic (in shares)	140,873,504	54,972,827	33,384,438
Diluted (in shares)	140,873,504	54,972,827	33,384,438
Net loss per share attributable to common stockholders
Basic (in dollars per share)	$ (1.09)	$ (1.46)	$ (2.33)
Diluted (in dollars per share)	$ (1.09)	$ (1.46)	$ (2.33)

Net loss per share - Summary _2

Net loss per share - Summary of Potentially Dilutive Securities Excluded from Computation of Diluted Net Loss per Share (Details) - shares	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Total potentially dilutive securities	26,669,340	23,009,490	104,432,387
Redeemable convertible preferred stock
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Total potentially dilutive securities	0	0	85,391,338
Stock options
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Total potentially dilutive securities	10,333,771	20,342,259	19,028,454
RSUs and restricted stock
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Total potentially dilutive securities	16,218,968	2,606,351	0
Contingently issuable shares under ESPP
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Total potentially dilutive securities	116,601	60,880	0
Redeemable convertible preferred stock warrants
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Total potentially dilutive securities	0	0	12,595

Segment and geographic inform_3

Segment and geographic information - Narrative (Details) $ in Thousands	12 Months Ended
	Dec. 31, 2022 USD ($) segment	Dec. 31, 2021 USD ($) segment	Dec. 31, 2020 USD ($) segment
Segment Reporting Information [Line Items]
Number of operating segments | segment	2	2	2
Number of reportable segments | segment	2	2	2
Segment cost of revenue	$ 275,320	$ 236,024	$ 209,253
Gross Profit	(353,777)	(279,633)	(220,646)
Operating Segments
Segment Reporting Information [Line Items]
Segment cost of revenue	253,831	223,326	201,323
Gross Profit	(375,266)	(292,331)	(228,576)
Operating Segments | Enterprise
Segment Reporting Information [Line Items]
Segment cost of revenue	104,577	63,984	35,519
Gross Profit	(209,461)	(122,970)	(67,926)
Operating Segments | Consumer
Segment Reporting Information [Line Items]
Segment cost of revenue	149,254	159,342	165,804
Gross Profit	$ (165,805)	$ (169,361)	(160,650)
Operating Segments | Revision of Prior Period, Error Correction, Adjustment | Enterprise
Segment Reporting Information [Line Items]
Segment cost of revenue			6,700
Gross Profit			6,700
Operating Segments | Revision of Prior Period, Error Correction, Adjustment | Consumer
Segment Reporting Information [Line Items]
Gross Profit			$ (6,700)

Segment and geographic inform_4

Segment and geographic information - Summary of Financial Information by Each Reportable Segment (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Segment Reporting Information [Line Items]
Revenue	$ 629,097	$ 515,657	$ 429,899
Segment cost of revenue	275,320	236,024	209,253
Gross profit	353,777	279,633	220,646
Reconciliation of segment gross profit to gross profit
Amortization of capitalized software	12,600	9,300	6,900
Amortization of intangible assets	4,300	1,500
Depreciation	4,300	4,500	4,200
Stock-based compensation	81,293	34,680	31,618
Gross profit	353,777	279,633	220,646
Operating Segments
Segment Reporting Information [Line Items]
Revenue	629,097	515,657	429,899
Segment cost of revenue	253,831	223,326	201,323
Gross profit	375,266	292,331	228,576
Reconciliation of segment gross profit to gross profit
Gross profit	375,266	292,331	228,576
Segment Reconciling Items
Segment Reporting Information [Line Items]
Gross profit	21,489	12,698	7,930
Reconciliation of segment gross profit to gross profit
Amortization of capitalized software	12,586	9,293	6,894
Amortization of intangible assets	2,900	1,022	0
Depreciation	643	760	618
Stock-based compensation	5,360	1,623	418
Gross profit	21,489	12,698	7,930
Consumer | Operating Segments
Segment Reporting Information [Line Items]
Revenue	315,059	328,703	326,454
Segment cost of revenue	149,254	159,342	165,804
Gross profit	165,805	169,361	160,650
Reconciliation of segment gross profit to gross profit
Gross profit	165,805	169,361	160,650
Consumer | Operating Segments | Revision of Prior Period, Error Correction, Adjustment
Segment Reporting Information [Line Items]
Gross profit			6,700
Reconciliation of segment gross profit to gross profit
Gross profit			6,700
Enterprise | Operating Segments
Segment Reporting Information [Line Items]
Revenue	314,038	186,954	103,445
Segment cost of revenue	104,577	63,984	35,519
Gross profit	209,461	122,970	67,926
Reconciliation of segment gross profit to gross profit
Gross profit	$ 209,461	$ 122,970	67,926
Enterprise | Operating Segments | Revision of Prior Period, Error Correction, Adjustment
Segment Reporting Information [Line Items]
Segment cost of revenue			6,700
Gross profit			(6,700)
Reconciliation of segment gross profit to gross profit
Gross profit			$ (6,700)

Segment and geographic inform_5

Segment and geographic information - Summary of Revenue by Region (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Segment Reporting Information [Line Items]
Revenue	$ 629,097	$ 515,657	$ 429,899
North America
Segment Reporting Information [Line Items]
Revenue	256,547	199,268	168,612
Europe, Middle East, Africa
Segment Reporting Information [Line Items]
Revenue	189,618	168,612	139,005
Asia Pacific
Segment Reporting Information [Line Items]
Revenue	137,829	107,924	85,847
Latin America
Segment Reporting Information [Line Items]
Revenue	$ 45,103	$ 39,853	$ 36,435

Segment and geographic inform_6

Segment and geographic information - Summary of Long-lived Assets by Region (Details) - USD ($) $ in Thousands	Dec. 31, 2022	Dec. 31, 2021
Segment Reporting Information [Line Items]
Total long-lived assets	$ 18,338	$ 9,754
North America
Segment Reporting Information [Line Items]
Total long-lived assets	12,782	6,922
Rest of world
Segment Reporting Information [Line Items]
Total long-lived assets	$ 5,556	$ 2,832

Subsequent events (Details)

Subsequent events (Details) - Subsequent Event - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2023	Feb. 13, 2023
Forecast
Subsequent Event [Line Items]
Reduction in global workforce, percent	10%
Minimum
Subsequent Event [Line Items]
Expected restructuring charges		$ 9
Maximum
Subsequent Event [Line Items]
Expected restructuring charges		$ 11