Document and Entity Information
Document and Entity Information - shares | 6 Months Ended | |
Jun. 30, 2022 | Jul. 27, 2022 | |
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Jun. 30, 2022 | |
Document Fiscal Year Focus | 2022 | |
Document Fiscal Period Focus | Q2 | |
Trading Symbol | CFLT | |
Entity Registrant Name | CONFLUENT, INC. | |
Entity Central Index Key | 0001699838 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Non-accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | true | |
Entity Ex Transition Period | false | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Shell Company | false | |
Title of 12(b) Security | Class A Common Stock, par value $0.00001 per share | |
Entity File Number | 001-40526 | |
Security Exchange Name | NASDAQ | |
Entity Incorporation, State or Country Code | DE | |
Entity Tax Identification Number | 47-1824387 | |
Entity Address, Address Line One | 899 W. Evelyn Avenue | |
Entity Address, City or Town | Mountain View | |
Entity Address, State or Province | CA | |
Entity Address, Postal Zip Code | 94041 | |
City Area Code | 800 | |
Local Phone Number | 439-3207 | |
Document Transition Report | false | |
Document Quarterly Report | true | |
Class A Common Stock [Member] | ||
Entity Common Stock, Shares Outstanding | 141,180,830 | |
Class B Common Stock [Member] | ||
Entity Common Stock, Shares Outstanding | 140,767,255 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets (Unaudited) - USD ($) $ in Thousands | Jun. 30, 2022 | Dec. 31, 2021 |
Current assets: | ||
Cash and cash equivalents | $ 529,667 | $ 1,375,932 |
Marketable securities | 1,427,859 | 640,085 |
Accounts receivable, net | 149,394 | 137,491 |
Deferred contract acquisition costs | 29,491 | 27,646 |
Prepaid expenses and other current assets | 55,612 | 44,919 |
Total current assets | 2,192,023 | 2,226,073 |
Property and equipment, net | 21,813 | 14,428 |
Operating lease right-of-use assets | 32,613 | 37,281 |
Deferred contract acquisition costs, non-current | 54,661 | 51,178 |
Other assets, non-current | 23,807 | 13,769 |
Total assets | 2,324,917 | 2,342,729 |
Current liabilities: | ||
Accounts payable | 15,527 | 7,591 |
Accrued expenses and other liabilities | 93,917 | 98,974 |
Operating lease liabilities | 7,846 | 9,236 |
Deferred revenue | 255,064 | 220,920 |
Liability for early exercise of unvested stock options | 3,826 | 11,467 |
Total current liabilities | 376,180 | 348,188 |
Operating lease liabilities, non-current | 27,975 | 31,645 |
Deferred revenue, non-current | 30,667 | 25,557 |
Convertible senior notes, net | 1,082,583 | 1,080,701 |
Other liabilities, non-current | 10,888 | 6,357 |
Total liabilities | 1,528,293 | 1,492,448 |
Commitments and contingencies (Note 7) | ||
Stockholders' equity: | ||
Preferred stock, par value of $0.00001 per share; 10,000,000 shares authorized as of June 30, 2022 and December 31, 2021; 0 shares issued and outstanding as of June 30, 2022 and December 31, 2021 | 0 | 0 |
Additional paid-in capital | 1,785,640 | 1,599,962 |
Accumulated other comprehensive loss | (9,547) | (830) |
Accumulated deficit | (979,472) | (748,854) |
Total stockholders' equity | 796,624 | 850,281 |
Total liabilities and stockholders' equity | 2,324,917 | 2,342,729 |
Class A Common Stock [Member] | ||
Stockholders' equity: | ||
Common Stock, Value | 1 | 1 |
Class B Common Stock [Member] | ||
Stockholders' equity: | ||
Common Stock, Value | $ 2 | $ 2 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Unaudited) (Parenthetical) - $ / shares | Jun. 30, 2022 | Dec. 31, 2021 |
Preferred Stock, Par Value | $ 0.00001 | $ 0.00001 |
Preferred Stock, Shares Authorized | 10,000,000 | 10,000,000 |
Preferred Stock, Shares Issued | 0 | 0 |
Preferred Stock, Shares Outstanding | 0 | 0 |
Class A Common Stock [Member] | ||
Common Stock, Par Value | $ 0.00001 | $ 0.00001 |
Common Stock, Shares Authorized | 1,000,000,000 | 1,000,000,000 |
Common Stock, Shares, Issued | 140,694,820 | 116,728,968 |
Common Stock, Shares, Outstanding | 140,694,820 | 116,728,968 |
Class B Common Stock [Member] | ||
Common Stock, Par Value | $ 0.00001 | $ 0.00001 |
Common Stock, Shares Authorized | 500,000,000 | 500,000,000 |
Common Stock, Shares, Issued | 140,718,826 | 155,072,914 |
Common Stock, Shares, Outstanding | 140,718,826 | 155,072,914 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Revenue: | ||||
Total revenue | $ 139,407 | $ 88,338 | $ 265,546 | $ 165,366 |
Cost of revenue: | ||||
Total cost of revenue | 49,509 | 30,009 | 95,286 | 53,847 |
Gross profit | 89,898 | 58,329 | 170,260 | 111,519 |
Operating expenses: | ||||
Research and development | 64,472 | 33,225 | 122,133 | 57,538 |
Sales and marketing | 112,754 | 73,206 | 219,456 | 131,715 |
General and administrative | 29,979 | 37,943 | 57,460 | 53,455 |
Total operating expenses | 207,205 | 144,374 | 399,049 | 242,708 |
Operating loss | (117,307) | (86,045) | (228,789) | (131,189) |
Interest income | 2,618 | 688 | 3,184 | 1,532 |
Other expense, net | (1,432) | (643) | (2,814) | (979) |
Loss before income taxes | (116,121) | (86,000) | (228,419) | (130,636) |
Provision for income taxes | 1,510 | 2,170 | 2,199 | 2,060 |
Net loss | $ (117,631) | $ (88,170) | $ (230,618) | $ (132,696) |
Net loss per share, basic | $ (0.42) | $ (0.74) | $ (0.84) | $ (1.17) |
Net loss per share, diluted | $ (0.42) | $ (0.74) | $ (0.84) | $ (1.17) |
Weighted-average shares used to compute net loss per share, basic | 278,268,980 | 118,648,655 | 275,593,362 | 113,717,546 |
Weighted-average shares used to compute net loss per share, diluted | 278,268,980 | 118,648,655 | 275,593,362 | 113,717,546 |
Subscription [Member] | ||||
Revenue: | ||||
Total revenue | $ 127,018 | $ 78,516 | $ 240,938 | $ 146,508 |
Cost of revenue: | ||||
Total cost of revenue | 35,608 | 20,292 | 69,211 | 36,049 |
Services [Member] | ||||
Revenue: | ||||
Total revenue | 12,389 | 9,822 | 24,608 | 18,858 |
Cost of revenue: | ||||
Total cost of revenue | $ 13,901 | $ 9,717 | $ 26,075 | $ 17,798 |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Comprehensive Loss (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Statement of Comprehensive Income [Abstract] | ||||
Net loss | $ (117,631) | $ (88,170) | $ (230,618) | $ (132,696) |
Other comprehensive loss: | ||||
Unrealized loss on marketable securities | (4,005) | (89) | (8,717) | (274) |
Other comprehensive loss | (4,005) | (89) | (8,717) | (274) |
Total comprehensive loss | $ (121,636) | $ (88,259) | $ (239,335) | $ (132,970) |
Condensed Consolidated Statem_3
Condensed Consolidated Statements of Redeemable Convertible Preferred Stock and Stockholders' Equity (Deficit) (Unaudited) - USD ($) $ in Thousands | Total | Redeemable Convertible Preferred Stock [Member] | Convertible Founder Stock [Member] | Common Class A [Member] | Common Stock [Member] | Class A and Class B [Member] | Additional Paid-In Capital [Member] | Accumulated Other Comprehensive Loss [Member] | Accumulated Deficit [Member] |
Balance at Dec. 31, 2020 | $ 574,634 | ||||||||
Balance (shares) at Dec. 31, 2020 | 115,277,850 | ||||||||
Balance at Dec. 31, 2020 | $ (306,249) | $ 1 | $ 0 | $ 99,575 | $ 228 | $ (406,053) | |||
Balance (shares) at Dec. 31, 2020 | 635,818 | 109,447,843 | 0 | ||||||
Issuance of common stock upon early exercise of unvested options, net of repurchases | 2,447,573 | 4,127 | |||||||
Vesting of early exercised options | 4,182 | 4,182 | |||||||
Issuance of common stock upon exercise of vested options | 19,137 | 19,137 | |||||||
Issuance of common stock upon exercise of vested options (shares) | 7,072,147 | 1,685,598 | |||||||
Vesting of restricted stock (shares) | 15,250 | ||||||||
Stock-based compensation | 48,363 | 48,363 | |||||||
Reclassification of common stock to Class B common stock upon initial public offering, Shares | (118,967,563) | 118,967,563 | |||||||
Reclassification of common stock to Class B common stock upon initial public offering | $ (1) | $ 1 | |||||||
Conversion of redeemable convertible preferred and founder stock to Class B common stock upon initial public offering | $ (574,634) | ||||||||
Conversion of redeemable convertible preferred and founder stock to Class B common stock upon initial public offering (shares) | (115,277,850) | ||||||||
Conversion of redeemable convertible preferred and founder stock to Class B common stock upon initial public offering | 574,634 | $ 1 | 574,633 | ||||||
Conversion of redeemable convertible preferred and founder stock to Class B common stock upon initial public offering (shares) | (635,818) | 115,913,668 | |||||||
Issuance of Class A common stock upon initial public offering, net of underwriting discounts and commissions and other issuance costs | 783,158 | 783,158 | |||||||
Issuance of Class A common stock upon initial public offering, net of underwriting discounts and commissions and other issuance costs (shares) | 23,000,000 | ||||||||
Issuance of Class A common stock pursuant to charitable donation | 13,290 | 13,290 | |||||||
Issuance of Class A common stock pursuant to charitable donation (shares) | 250,000 | ||||||||
Other comprehensive loss | (274) | (274) | |||||||
Net loss | (132,696) | (132,696) | |||||||
Balance at Jun. 30, 2021 | 1,003,545 | $ 2 | 1,542,338 | (46) | (538,749) | ||||
Balance (shares) at Jun. 30, 2021 | 259,836,206 | ||||||||
Balance at Mar. 31, 2021 | $ 574,634 | ||||||||
Balance (shares) at Mar. 31, 2021 | 115,277,850 | ||||||||
Balance at Mar. 31, 2021 | (330,086) | $ 1 | $ 0 | 120,449 | 43 | (450,579) | |||
Balance (shares) at Mar. 31, 2021 | 635,818 | 113,451,522 | 0 | ||||||
Issuance of common stock upon early exercise of unvested options, net of repurchases | 1,319,208 | 4,127 | |||||||
Vesting of early exercised options | 2,974 | 2,974 | |||||||
Issuance of common stock upon exercise of vested options | 12,922 | 12,922 | |||||||
Issuance of common stock upon exercise of vested options (shares) | 4,196,833 | 1,685,598 | |||||||
Vesting of restricted stock (shares) | 15,250 | ||||||||
Stock-based compensation | 34,912 | 34,912 | |||||||
Reclassification of common stock to Class B common stock upon initial public offering, Shares | (118,967,563) | 118,967,563 | |||||||
Reclassification of common stock to Class B common stock upon initial public offering | $ (1) | $ 1 | |||||||
Conversion of redeemable convertible preferred and founder stock to Class B common stock upon initial public offering | $ (574,634) | ||||||||
Conversion of redeemable convertible preferred and founder stock to Class B common stock upon initial public offering (shares) | (115,277,850) | ||||||||
Conversion of redeemable convertible preferred and founder stock to Class B common stock upon initial public offering | 574,634 | $ 1 | 574,633 | ||||||
Conversion of redeemable convertible preferred and founder stock to Class B common stock upon initial public offering (shares) | (635,818) | 115,913,668 | |||||||
Issuance of Class A common stock upon initial public offering, net of underwriting discounts and commissions and other issuance costs | 783,158 | 783,158 | |||||||
Issuance of Class A common stock upon initial public offering, net of underwriting discounts and commissions and other issuance costs (shares) | 23,000,000 | ||||||||
Issuance of Class A common stock pursuant to charitable donation | 13,290 | $ 13,300 | 13,290 | ||||||
Issuance of Class A common stock pursuant to charitable donation (shares) | 250,000 | ||||||||
Other comprehensive loss | (89) | (89) | |||||||
Net loss | (88,170) | (88,170) | |||||||
Balance at Jun. 30, 2021 | 1,003,545 | $ 2 | 1,542,338 | (46) | (538,749) | ||||
Balance (shares) at Jun. 30, 2021 | 259,836,206 | ||||||||
Balance at Dec. 31, 2021 | 850,281 | $ 3 | 1,599,962 | (830) | (748,854) | ||||
Balance (shares) at Dec. 31, 2021 | 271,801,882 | ||||||||
Issuance of common stock upon early exercise of unvested options | 59,185 | ||||||||
Repurchases of unvested options | (130,845) | ||||||||
Vesting of early exercised options | 8,794 | 8,794 | |||||||
Issuance of common stock upon exercise of vested options | $ 25,039 | 25,039 | |||||||
Issuance of common stock upon exercise of vested options (shares) | 7,695,923 | 7,636,738 | |||||||
Vesting of restricted stock (shares) | 1,311,869 | ||||||||
Stock-based compensation | $ 129,360 | 129,360 | |||||||
Issuance of Class A common stock pursuant to charitable donation | 0 | ||||||||
Issuance of common stock under employee stock purchase plan | 22,485 | 22,485 | |||||||
Issuance of common stock under employee stock purchase plan (shares) | 734,817 | ||||||||
Other comprehensive loss | (8,717) | (8,717) | |||||||
Net loss | (230,618) | (230,618) | |||||||
Balance at Jun. 30, 2022 | 796,624 | $ 3 | 1,785,640 | (9,547) | (979,472) | ||||
Balance (shares) at Jun. 30, 2022 | 281,413,646 | ||||||||
Balance at Mar. 31, 2022 | 836,069 | $ 3 | 1,703,449 | (5,542) | (861,841) | ||||
Balance (shares) at Mar. 31, 2022 | 278,036,762 | ||||||||
Issuance of common stock upon early exercise of unvested options | 14,584 | ||||||||
Repurchases of unvested options | (121,867) | ||||||||
Vesting of early exercised options | 3,093 | 3,093 | |||||||
Issuance of common stock upon exercise of vested options | 8,634 | 8,634 | |||||||
Issuance of common stock upon exercise of vested options (shares) | 2,610,173 | ||||||||
Vesting of restricted stock (shares) | 873,994 | ||||||||
Stock-based compensation | 70,464 | 70,464 | |||||||
Other comprehensive loss | (4,005) | (4,005) | |||||||
Net loss | (117,631) | (117,631) | |||||||
Balance at Jun. 30, 2022 | $ 796,624 | $ 3 | $ 1,785,640 | $ (9,547) | $ (979,472) | ||||
Balance (shares) at Jun. 30, 2022 | 281,413,646 |
Condensed Consolidated Statem_4
Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2022 | Jun. 30, 2021 | |
CASH FLOWS FROM OPERATING ACTIVITIES | ||
Net loss | $ (230,618) | $ (132,696) |
Adjustments to reconcile net loss to cash used in operating activities: | ||
Depreciation and amortization | 3,060 | 1,543 |
Net amortization of premiums or discounts on marketable securities | 236 | 964 |
Amortization of debt issuance costs | 1,883 | 0 |
Amortization of deferred contract acquisition costs | 17,395 | 11,583 |
Non-cash operating lease costs | 4,475 | 5,604 |
Common stock charitable donation expense | 0 | 13,290 |
Stock-based compensation, net of amounts capitalized | 126,235 | 47,869 |
Deferred income taxes | 26 | 1,730 |
Other | 559 | 648 |
Changes in operating assets and liabilities: | ||
Accounts receivable | (12,462) | (11,853) |
Deferred contract acquisition costs | (22,723) | (26,348) |
Prepaid expenses and other assets | (20,121) | (14,723) |
Accounts payable | 7,452 | 371 |
Accrued expenses and other liabilities | 1,756 | 12,893 |
Operating lease liabilities | (4,910) | (5,382) |
Deferred revenue | 39,254 | 31,352 |
Net cash used in operating activities | (88,503) | (63,155) |
CASH FLOWS FROM INVESTING ACTIVITIES | ||
Capitalization of internal-use software costs | (4,765) | (1,811) |
Purchases of marketable securities | (1,167,362) | (55,971) |
Maturities of marketable securities | 370,659 | 122,974 |
Purchases of property and equipment | (2,071) | (1,673) |
Other | 0 | 9 |
Net cash (used in) provided by investing activities | (803,539) | 63,528 |
CASH FLOWS FROM FINANCING ACTIVITIES | ||
Proceeds from initial public offering, net of underwriting discounts and commissions | 786,600 | |
Proceeds from issuance of common stock upon exercise of vested options | 24,383 | 18,705 |
Proceeds from issuance of common stock upon early exercise of unvested options | 416 | 18,756 |
Repurchases of unvested options | (695) | (213) |
Payments of deferred offering costs | 0 | (920) |
Payments of debt issuance costs for convertible senior notes | (786) | 0 |
Proceeds from issuance of common stock under the ESPP | 22,485 | 0 |
Net cash provided by financing activities | 45,803 | 822,928 |
Effect of exchange rate changes on cash, cash equivalents, and restricted cash | (26) | (10) |
Net (decrease) increase in cash, cash equivalents, and restricted cash | (846,265) | 823,291 |
Cash, cash equivalents, and restricted cash at beginning of period | 1,376,682 | 37,806 |
Cash, cash equivalents, and restricted cash at end of period | 530,417 | 861,097 |
Reconciliation of cash, cash equivalents, and restricted cash within the consolidated balance sheets to the amounts shown above: | ||
Cash and cash equivalents | 529,667 | 860,347 |
Restricted cash included in other assets, current and non-current | 750 | 750 |
Total cash, cash equivalents, and restricted cash | 530,417 | 861,097 |
Cash paid for: | ||
Income taxes | 2,225 | 954 |
Non-cash investing and financing activities: | ||
Stock-based compensation capitalized as internal-use software costs | 3,125 | 494 |
Issuance of common stock upon exercise of vested options included in prepaid expenses and other current assets | 0 | 432 |
Vesting of early exercised stock options | 8,794 | 4,182 |
Unpaid deferred offering costs | $ 0 | $ 2,411 |
Organization and Description of
Organization and Description of Business | 6 Months Ended |
Jun. 30, 2022 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Organization and Description of Business | 1. Organization and Description of Business Description of Business Confluent , Inc. (“Confluent” or the “Company”) created a data infrastructure platform focused on data in motion. Confluent’s platform allows customers to connect their applications, systems, and data layers and can be deployed either as a self-managed software offering, Confluent Platform, or as a fully-managed cloud-native software-as-a-service (“SaaS”) offering, Confluent Cloud. Confluent also offers professional services and education services. The Company was incorporated in the state of Delaware in September 2014 and is headquartered in California with various other global office locations. |
Basis of Presentation and Summa
Basis of Presentation and Summary of Significant Accounting Policies | 6 Months Ended |
Jun. 30, 2022 | |
Accounting Policies [Abstract] | |
Basis of Presentation and Summary of Significant Accounting Policies | 2. Basis of Presentation and Summary of Significant Accounting Policies Basis of Presentation The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States (“GAAP”) and applicable rules and regulations of the U.S. Securities and Exchange Commission (“SEC”) regarding interim financial reporting. Certain information and note disclosures normally included in the financial statements prepared in accordance with GAAP have been condensed or omitted pursuant to such rules and regulations. Therefore, these condensed consolidated financial statements should be read in conjunction with the audited consolidated financial statements and notes included in the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2021, as filed with the SEC on February 24, 2022 (the “ Annual Report ” ) . In management’s opinion, the unaudited condensed consolidated financial statements have been prepared on a basis consistent with the annual consolidated financial statements and reflect all adjustments, which include only normal recurring adjustments, necessary for the fair statement of the Company’s financial position as of June 30, 2022 and the results of operations and cash flows for the three and six months ended June 30, 2022 and 2021. The results of operations for the three and six months ended June 30, 2022 are not necessarily indicative of the results to be expected for the full year or any other future interim or annual period. The condensed consolidated financial statements include the accounts of the Company and its wholly-owned subsidiaries. All intercompany balances and transactions have been eliminated in consolidation. Reclassifications Certain amounts from prior period have been reclassified to conform to the current period presentation. These reclassifications had no effect on consolidated net loss, stockholders’ (deficit) equity, or cash flows as previously reported. Use of Estimates The preparation of the condensed consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenue and expenses during the reporting period. Such estimates include, but are not limited to, the standalone selling price for each distinct performance obligation included in customer contracts, deferred contract acquisition costs and their period of benefit, valuation of stock-based awards, the fair value of the Company’s common stock prior to its initial public offering (“IPO”) in June 2021, capitalization and estimated useful life of internal-use software, the incremental borrowing rate used to measure operating lease liabilities, and accounting for income taxes. The Company bases its estimates on historical and anticipated results, trends, and various other assumptions that it believes are reasonable under the circumstances. Estimates and assumptions about future events and their effects, including the impact of the COVID-19 pandemic, cannot be determined with certainty and therefore require the exercise of judgment. Actual results could differ from those estimates and any such differences may be material to the Company’s condensed consolidated financial statements. Significant Accounting Policies Other than the policies described below, there were no significant changes to the Company’s significant accounting policies disclosed in “Note 2 – Basis of Presentation and Summary of Significant Accounting Policies” of the Company’s Annual Report. Marketable Securities The Company’s marketable securities consist of corporate notes and bonds, commercial paper, U.S. agency obligations, U.S. treasury securities, and municipal bonds. The Company determines the appropriate classification of its marketable securities at the time of purchase and reevaluates such determination at each balance sheet date. The Company has classified and accounted for its marketable securities as available-for-sale securities. The Company may sell these securities at any time for use in its current operations or for other purposes, even prior to maturity. As a result, the Company classifies its marketable securities within current assets. Available-for-sale securities are recorded at fair value each reporting period, and are adjusted for amortization of premiums and accretion of discounts to maturity and such amortization and accretion are included in other income (expense), net in the consolidated statements of operations. Realized gains and losses are determined based on the specific identification method and are reported in other income (expense), net in the condensed consolidated statements of operations. Unrealized gains are reported as a separate component of accumulated other comprehensive income (loss) on the condensed consolidated balance sheets until realized. For available-for-sale debt securities in an unrealized loss position, the Company first assesses whether it intends to sell the security or it is more likely than not that the Company will be required to sell the security before the recovery of its entire amortized cost basis. If either of these criteria is met, the security’s amortized cost basis is written down to fair value through other income (expense), net in the condensed consolidated statements of operations. If neither of these criteria is met, the Company evaluates whether the decline in fair value below amortized cost is due to credit or non-credit related factors. In making this assessment, the Company considers the extent to which fair value is less than amortized cost, any changes to the rating of the security by a rating agency, and any adverse conditions specifically related to the security, among other factors. Credit related unrealized losses are recognized as an allowance for expected credit losses of available-for-sale debt securities on the condensed consolidated balance sheets with a corresponding charge in other income (expense), net in the condensed consolidated statements of operations. Non-credit related unrealized losses are included in accumulated other comprehensive income (loss). Accounts Receivable and Allowance for Credit Losses Accounts receivable on the condensed consolidated balance sheets consists of trade accounts receivable and unbilled receivables, net of an allowance for expected credit losses. Trade accounts receivable are stated at the invoiced amount and consist of amounts currently due from customers. Unbilled receivables represent revenue recognized in excess of invoiced amounts for the Company’s unconditional right to consideration in exchange for goods or services that the Company has transferred to the customer, such that only the passage of time is required before payment of consideration is due. The unbilled receivables balance was $ 42.3 million and $ 32.3 million as of June 30, 2022 and December 31, 2021, respectively. Accounts receivable are reduced by an allowance for expected credit losses. The allowance for expected credits losses represents the best estimate of lifetime expected credit losses against the existing accounts receivable, inclusive of unbilled receivables, based on certain factors including the age of the receivable balance, past collection experience with the customer, historical write-off experience, credit quality of the customer, current economic conditions, and reasonable and supportable forecasts of future economic conditions. Accounts receivable deemed uncollectible are written off against the allowance for expected credit losses when identified and the Company no longer actively pursues collection of the receivable. The Company’s allowance for expected credit losses was no t material as of June 30, 2022 and December 31, 2021 . Additions to and write-offs against the allowance for expected credit losses were no t material for the three and six months ended June 30, 2022 and 2021. Recent Accounting Pronouncements Recently Adopted Accounting Pronouncements Credit Losses: In June 2016, the FASB issued ASU No. 2016-13, Financial Instruments—Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments , which requires the measurement and recognition of expected credit losses for financial assets held at amortized cost, including the Company’s accounts receivable and certain other financial instruments, with multiple codification improvement amendments issued more recently. Credit losses related to available-for-sale debt securities are required to be recorded through an allowance for credit losses rather than as a reduction in the amortized cost basis of the securities. This guidance is effective for the Company for the year beginning January 1, 2023, though early adoption is permitted. The Company early adopted this guidance effective January 1, 2022 on a modified retrospective basis, and the adoption did not result in any cumulative effect adjustment to its opening accumulated deficit balance. |
Marketable Securities
Marketable Securities | 6 Months Ended |
Jun. 30, 2022 | |
Investments, Debt and Equity Securities [Abstract] | |
Marketable Securities | 3. Marketable Securities The following tables summarize the fair values of the Company’s marketable securities (in thousands): June 30, 2022 Amortized Cost Unrealized Gains Unrealized Losses Fair Value U.S. treasury securities $ 1,163,041 $ 45 $ ( 5,355 ) $ 1,157,731 Corporate notes and bonds 137,334 10 ( 2,210 ) 135,134 U.S. agency obligations 100,262 12 ( 1,794 ) 98,480 Commercial paper 36,715 4 ( 205 ) 36,514 Total marketable securities $ 1,437,352 $ 71 $ ( 9,564 ) $ 1,427,859 December 31, 2021 Amortized Cost Unrealized Gains Unrealized Losses Fair Value U.S. treasury securities $ 446,878 $ - $ ( 443 ) $ 446,435 Corporate notes and bonds 125,845 5 ( 246 ) 125,604 U.S. agency obligations 54,122 - ( 115 ) 54,007 Commercial paper 10,995 - - 10,995 Municipal bonds 3,045 - ( 1 ) 3,044 Total marketable securities $ 640,885 $ 5 $ ( 805 ) $ 640,085 Realized gains and losses were not material for the three and six months ended June 30, 2022 and 2021 . No marketable securities were in a continuous unrealized loss position for more than twelve months as of June 30, 2022 and December 31, 2021. Available-for-sale marketable securities in an unrealized loss position had a fair value of $ 1,380.1 million and $ 618.3 million as of June 30, 2022 and December 31, 2021 , respectively. The Company does not intend to sell these securities and it is more likely than not that the Company will hold these securities until maturity or a recovery of the cost basis. The Company determined that the decline in fair value of these securities was not due to credit-related factors, and no allowance for expected credit losses was recorded as of June 30, 2022. The following table summarizes the contractual maturities of the Company’s marketable securities (in thousands): June 30, 2022 Amortized Cost Fair Value Due within one year $ 1,235,817 $ 1,229,767 Due after one year through five years 201,535 198,092 Total $ 1,437,352 $ 1,427,859 |
Fair Value of Financial Instrum
Fair Value of Financial Instruments | 6 Months Ended |
Jun. 30, 2022 | |
Fair Value Disclosures [Abstract] | |
Fair Value of Financial Instruments | 4. Fair Value of Financial Instruments The following tables summarize the Company’s financial assets that are measured at fair value on a recurring basis (in thousands): June 30, 2022 Level 1 Level 2 Total Cash equivalents: U.S. treasury securities $ - $ 93,922 $ 93,922 Money market funds 6,783 - 6,783 U.S. agency obligations - 3,993 3,993 Marketable securities: U.S. treasury securities - 1,157,731 1,157,731 Corporate notes and bonds - 135,134 135,134 U.S. agency obligations - 98,480 98,480 Commercial paper - 36,514 36,514 Total $ 6,783 $ 1,525,774 $ 1,532,557 December 31, 2021 Level 1 Level 2 Total Cash equivalents: U.S. treasury securities $ - $ 69,999 $ 69,999 Money market funds 23,857 - 23,857 Commercial paper - 4,999 4,999 Marketable securities: U.S. treasury securities - 446,435 446,435 Corporate notes and bonds - 125,604 125,604 U.S. agency obligations - 54,007 54,007 Commercial paper - 10,995 10,995 Municipal bonds - 3,044 3,044 Total $ 23,857 $ 715,083 $ 738,940 The Company classifies its highly liquid money market funds within Level 1 of the fair value hierarchy because they are valued based on quoted market prices in active markets. The Company classifies its U.S. treasury securities, corporate notes and bonds, U.S. agency obligations, commercial paper, and municipal bonds within Level 2 of the fair value hierarchy because they are valued using inputs other than quoted prices that are directly or indirectly observable in the market, including readily available pricing sources for the identical underlying security that may not be actively traded. There were no transfers of financial assets between valuation levels during the three and six months ended June 30, 2022 and 2021. As of June 30, 2022 and December 31, 2021, the total estimated fair value of the Company’ s 0% convertible senior notes due 2027 was $ 804.7 million and $ 1,206.7 million, respectively. The fair value was determined based on the quoted price of the convertible senior notes in an inactive market on the last trading day of the reporting period and is classified within Level 2 of the fair value hierarchy. See Note 6 for further information on the Company ’ s convertible senior notes. |
Balance Sheet Components
Balance Sheet Components | 6 Months Ended |
Jun. 30, 2022 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Balance Sheet Components | 5. Balance Sheet Components Property and Equipment, Net The cost and accumulated depreciation and amortization of property and equipment were as follows (in thousands): June 30, 2022 December 31, 2021 Computers and equipment $ 6,927 $ 4,541 Furniture and fixtures 1,336 1,322 Purchased software 104 26 Leasehold improvements 425 459 Internal-use software 15,285 8,024 Construction in progress 5,769 5,140 Property and equipment, at cost $ 29,846 $ 19,512 Less: Accumulated depreciation and amortization ( 8,033 ) ( 5,084 ) Property and equipment, net $ 21,813 $ 14,428 Depreciation and amortization expense was $ 1.8 million and $ 0.7 million for the three months ended June 30, 2022 and 2021, respectively, and $ 3.1 million and $ 1.5 million for the six months ended June 30, 2022 and 2021, respectively. Accrued Expenses and Other Liabilities Accrued expenses and other liabilities consisted of the following (in thousands): June 30, 2022 December 31, 2021 Accrued compensation and benefits $ 23,348 $ 27,703 Employee contributions under employee stock purchase plan 18,092 19,247 Accrued expenses 17,375 17,452 Accrued commissions 11,708 13,734 Accrued payroll taxes 9,685 8,681 Other liabilities 13,709 12,157 Total accrued expenses and other liabilities $ 93,917 $ 98,974 |
Convertible Senior Notes
Convertible Senior Notes | 6 Months Ended |
Jun. 30, 2022 | |
Convertible Debt [Abstract] | |
Convertible Senior Notes | 6. Convertible Senior Notes In December 2021, the Company issued $ 1.1 billion aggregate principal amount of 0 % convertible senior notes due 2027 (the “2027 Notes”), including the exercise in full of the initial purchasers’ option to purchase up to an additional $ 100.0 million principal amount of the 2027 Notes, in a private placement to qualified institutional buyers pursuant to Rule 144A under the Securities Act. The 2027 Notes are general unsecured obligations of the Company and will mature on January 15, 2027, unless earlier converted, redeemed, or repurchased. The 2027 Notes do not bear regular interest, and the principal amount of the 2027 Notes will not accrete. Special interest, if any, will be payable semiannually in arrears on January 15 and July 15 of each year, beginning on July 15, 2022 (if and to the extent that special interest is then payable on the 2027 Notes). The total net proceeds from the offering, after deducting initial purchasers’ discounts and debt issuance costs, were $ 1,080.5 million. The initial conversion rate is 9.9936 shares of the Company’s Class A common stock per $1,000 principal amount of 2027 Notes (equivalent to an initial conversion price of approximately $ 100.06 per share of the Company’s Class A common stock), subject to adjustment as set forth in the indenture governing the 2027 Notes (the “Indenture”). The 2027 Notes are convertible at the option of the holders at any time prior to the close of business on the business day immediately preceding October 15, 2026, only under the following conditions: (1) during any calendar quarter commencing after the calendar quarter ending on March 31, 2022 (and only during such calendar quarter), if the last reported sale price of the Company’s Class A common stock for at least 20 trading days (whether or not consecutive) during a period of 30 consecutive trading days ending on, and including, the last trading day of the immediately preceding calendar quarter is greater than or equal to 130 % of the conversion price for the 2027 Notes on each applicable trading day; (2) during the five business day period after any ten consecutive trading day period (the “measurement period”) in which the trading price per $ 1,000 principal amount of the 2027 Notes for each trading day of the measurement period was less than 98 % of the product of the last reported sale price of the Company’s Class A common stock and the conversion rate for the 2027 Notes on each such trading day; (3) if the Company calls such 2027 Notes for redemption, at any time prior to the close of business on the scheduled trading day immediately preceding the redemption date, but only with respect to the 2027 Notes called (or deemed called) for redemption; or (4) upon the occurrence of specified corporate events as set forth in the Indenture. On or after October 15, 2026, until the close of business on the second scheduled trading day immediately preceding the maturity date, holders of the 2027 Notes may convert all or any portion of their 2027 Notes at any time, at the option of the holder regardless of the foregoing conditions. Upon conversion, the Company may satisfy its conversion obligation by paying or delivering, as the case may be, cash, shares of Class A common stock or a combination of cash and shares of Class A common stock, at the Company’s election, in the manner and subject to the terms and conditions provided in the Indenture. In addition, following certain corporate events that occur prior to the maturity date of the 2027 Notes or if the Company delivers a notice of redemption in respect of the 2027 Notes, the Company will, under certain circumstances, increase the conversion rate of the 2027 Notes for a holder who elects to convert its 2027 Notes in connection with such a corporate event or convert its 2027 Notes called (or deemed called) for redemption in connection with such notice of redemption, as the case may be. During the three months ended June 30, 2022, the conditions allowing holders of the 2027 Notes to convert have not been met. The 2027 Notes were therefore not convertible during the three months ended June 30, 2022 and were classified as long-term debt on the Company’s condensed consolidated balance sheets. The Company may not redeem the 2027 Notes prior to January 20, 2025. The Company may redeem for cash all or any portion of the 2027 Notes (subject to the certain limitations described in the Indenture), at its option, on or after January 20, 2025, if the last reported sale price of the Company’s Class A common stock has been at least 130 % of the conversion price for the 2027 Notes then in effect for at least 20 trading days (whether or not consecutive) during any 30 consecutive trading day period (including the last trading day of such period) ending on, and including, the trading day immediately preceding the date on which the Company provides notice of redemption at a redemption price equal to 100 % of the principal amount of the 2027 Notes to be redeemed, plus accrued and unpaid special interest, if any, to, but excluding, the redemption date. If the Company redeems less than all of the outstanding 2027 Notes, at least $ 100.0 million aggregate principal amount of 2027 Notes must be outstanding and not subject to redemption as of, and after giving effect to, delivery of the relevant notice of redemption. No sinking fund is provided for the 2027 Notes. The Company incurred $ 19.5 million of debt issuance costs related to the 2027 Notes. These costs are amortized to interest expense included within other expense, net on the condensed consolidated statement of operations over the contractual term of the 2027 Notes at an effective interest rate of 0.35 %. Amortization of debt issuance costs for the three and six months ended June 30, 2022 was $ 0.9 million and $ 1.9 million, respectively. The net carrying amount of the 2027 Notes was as follows (in thousands): June 30, 2022 December 31, 2021 Principal $ 1,100,000 $ 1,100,000 Unamortized debt issuance costs ( 17,417 ) ( 19,299 ) Net carrying amount $ 1,082,583 $ 1,080,701 Capped Calls In connection with the pricing of the 2027 Notes and the exercise in full by the initial purchasers of their option to purchase additional 2027 Notes, the Company entered into capped call transactions with certain of the initial purchasers of the 2027 Notes or their respective affiliates and other financial institutions (the “Capped Calls”). The Capped Calls each have an initial strike price of approximately $ 100.06 per share, subject to certain adjustments, which corresponds to the initial conversion price of the 2027 Notes. The Capped Calls have initial cap prices of $ 138.02 per share, subject to certain adjustments. The Capped Calls associated with the 2027 Notes cover, subject to anti-dilution adjustments, approximately 11.0 million shares of the Company’s Class A common stock. The Capped Calls are expected generally to reduce the potential dilution to the Company’s Class A common stock upon any conversion of the 2027 Notes and/or offset any cash payments the Company is required to make in excess of the principal amount of converted 2027 Notes, as the case may be, with such reduction and/or offset subject to a cap based on the cap price. For accounting purposes, the Capped Calls are separate transactions and not part of the terms of the 2027 Notes. As these transactions meet certain accounting criteria, the Capped Calls are recorded in stockholders’ equity and are not accounted for as derivatives. The cost of $ 91.0 million incurred to purchase the Capped Calls was recorded as a reduction to additional paid-in capital and will not be remeasured. |
Commitments and Contingencies
Commitments and Contingencies | 6 Months Ended |
Jun. 30, 2022 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | . Commitments and Contingencies Leases The Company has entered into non-cancelable operating leases, primarily for the rent of office space expiring at various dates through 2029. Certain lease agreements contain an option for the Company to renew the lease for a term of up to three years or an option to terminate the lease early within three years of lease termination . The Company considers these options in determining the lease term on a lease-by-lease basis. None of the Company’s lease agreements contain any material non-lease components, material residual value guarantees, or material restrictive covenants. In 2019, the Company was issued a letter of credit of $ 8.2 million for its office space in Mountain View, California. No draws have been made under the letter of credit as of June 30, 2022 and December 31, 2021. In addition, the Company subleases certain floors of its unoccupied office space expiring at various dates in 2022. Sublease income is recorded as a reduction of lease expense and was no t material for the three months ended June 30, 2022 and 2021, and the six months ended June 30, 2022 . Sublease income was $ 1.4 million for the six months ended June 30, 2021. Purchase Obligations During the six months ended June 30, 2022, there were no material changes to the Company’s purchase obligations from those disclosed in the Company’s Annual Report. Legal Matters From time to time, the Company has become involved in claims and other legal matters arising in the ordinary course of business. The Company investigates these claims as they arise. As of June 30, 2022 and December 31, 2021, the Company is not aware of any matters that would individually or taken together have a material adverse effect on the Company’s results of operations, financial position, or cash flows. Indemnification The Company enters into indemnification provisions under its agreements with other companies in the ordinary course of business, including customers, business partners, landlords, and certain third-party vendors. Under these arrangements, the Company agrees to indemnify, hold harmless, and reimburse the indemnified party for certain losses suffered or incurred by the indemnified party resulting from certain Company activities. The terms of these indemnification agreements are generally perpetual. The maximum potential amount of future payments the Company could be required to make under these agreements is not determinable. As of June 30, 2022 and December 31, 2021, the Company has not incurred material costs to defend lawsuits or settle claims related to these indemnification agreements. The Company maintained commercial general liability insurance and product liability insurance during the three and six months ended June 30, 2022 and 2021 to offset certain of the Company’s potential liabilities under these indemnification provisions. The Company also indemnifies certain of its officers, directors, and certain key employees while they are serving in good faith in their respective capacities. As of June 30, 2022 and December 31, 2021 , the Company has not incurred material costs to defend lawsuits or settle claims related to these indemnification agreements. |
Revenue
Revenue | 6 Months Ended |
Jun. 30, 2022 | |
Revenue from Contract with Customer [Abstract] | |
Revenue | 8. Revenue Disaggregation of Revenue The following table sets forth revenue disaggregated by geographic markets based on the location of the customer and by subscription and service categories (dollars in thousands): Three Months Ended June 30, Six Months Ended June 30, 2022 2021 2022 2021 Geographic markets: United States $ 87,556 63 % $ 56,811 64 % $ 166,548 63 % $ 106,090 64 % International 51,851 37 % 31,527 36 % 98,998 37 % 59,276 36 % Total revenue $ 139,407 100 % $ 88,338 100 % $ 265,546 100 % $ 165,366 100 % Subscriptions and services: Confluent Platform - License $ 19,568 14 % $ 15,551 18 % $ 38,515 15 % $ 29,512 18 % Confluent Platform - PCS (1) 60,470 43 % 43,296 49 % 116,530 44 % 83,408 51 % Confluent Cloud 46,980 34 % 19,669 22 % 85,893 32 % 33,588 20 % Subscription 127,018 91 % 78,516 89 % 240,938 91 % 146,508 89 % Services 12,389 9 % 9,822 11 % 24,608 9 % 18,858 11 % Total revenue $ 139,407 100 % $ 88,338 100 % $ 265,546 100 % $ 165,366 100 % (1) PCS refers to post-contract customer support, maintenance, and upgrades. Remaining Performance Obligations (“RPO”) RPO represent the amount of contracted future revenue that has not yet been recognized as of the end of each period, including both deferred revenue that has been invoiced and non-cancelable committed amounts that will be invoiced and recognized as revenue in future periods. RPO exclude pay-as-you-go arrangements. As of June 30, 2022, the Company’s RPO was $ 591.3 million , approximately 62 % of which is expected to be recognized as revenue over the next 12 months and the substantial majority of the remainder in the next 13 to 36 months. Deferred Revenue Deferred revenue, including current and non-current balances as of June 30, 2022 and December 31, 2021 was $ 285.7 million and $ 246.5 million , respectively. For the six months ended June 30, 2022 and 2021 , revenue recognized from deferred revenue at the beginning of the year was $ 152.7 million and $ 91.0 million, respectively. Deferred Contract Acquisition Costs The following table summarizes the activity of deferred contract acquisition costs (in thousands): Six Months Ended June 30, 2022 2021 Beginning balance $ 78,824 $ 47,599 Capitalization of contract acquisition costs 22,723 26,348 Amortization of deferred contract acquisition costs ( 17,395 ) ( 11,583 ) Ending balance $ 84,152 $ 62,364 |
Stockholders' Equity
Stockholders' Equity | 6 Months Ended |
Jun. 30, 2022 | |
Stockholders' Equity Note [Abstract] | |
Stockholders' Equity | 9. 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 10,000,000 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 The Company has two classes of common stock: Class A common stock and Class B common stock. In connection with the IPO, the Company’s amended and restated certificate of incorporation authorized the issuance of 1,000,000,000 shares of Class A common stock and 500,000,000 shares of Class B common stock. The shares of Class A common stock and Class B common stock are identical, except with respect to voting, converting, and transfer rights. Each share of Class A common stock is entitled to one vote. Each share of Class B common stock is entitled to ten votes. Class A and Class B common stock have a par value of $ 0.00001 per share and are referred to as common stock throughout the notes to the condensed consolidated financial statements, unless otherwise noted. Holders of common stock are entitled to receive any dividends as may be declared from time to time by the board of directors. Each share of Class B common stock is convertible at any time at the option of the holder into one share of Class A common stock. Any holder’s shares of Class B common stock will convert automatically to Class A common stock, on a one-to-one basis, upon the following: (i) sale or transfer of such share of Class B common stock, except for permitted transfers as described in the amended and restated certificate of incorporation; (ii) the death or incapacity of the Class B common stockholder (or nine months after the date of the death or incapacity if the stockholder is one of the Company’s founders); and (iii) on the final conversion date, defined as the earliest of (a) the date fixed by our board of directors that is no less than 61 days and no more than 180 days following the date on which the outstanding shares of Class B common stock represent less than 10 % of the then outstanding shares of Class A and Class B common stock; (b) the last trading day of the fiscal year following the tenth anniversary of the Company’s IPO; or (c) the date specified by a vote of the holders of a majority of the outstanding shares of Class B common stock, voting as a single class. In June 2021, the Company donated 250,000 shares of its Class A common stock to its charitable foundation, Confluent.org. The Company recognized charitable donation expense of $ 13.3 million during the three months ended June 30, 2021 within general and administrative expense based on the closing price of its Class A common stock on the date of donation. Common Stock Reserved for Future Issuance The Company has reserved the following shares of common stock for future issuance: June 30, 2022 December 31, 2021 2014 Stock Plan: Options outstanding 51,899,378 61,903,883 Restricted stock units outstanding 2,864,365 3,495,540 2021 Equity Incentive Plan: Options outstanding 22,500 22,500 Restricted stock units outstanding 14,302,853 2,938,968 Remaining shares available for future issuance 36,782,187 32,797,245 2021 Employee Stock Purchase Plan 7,145,776 5,162,575 Total 113,017,059 106,320,711 Equity Incentive Plans In September 2014, the Company’s board of directors adopted and the Company’s stockholders approved the 2014 Stock Plan (the “2014 Plan”). The 2014 Plan was also amended and restated in March 2021 and June 2021. Under the 2014 Plan, the board of directors may grant stock options and other equity-based awards to eligible employees, directors, and consultants. The 2014 Plan was terminated in June 2021 in connection with the IPO, but continues to govern the terms of outstanding awards that were granted prior to the termination of the 2014 Plan. No further equity awards will be granted under the 2014 Plan. With the establishment of the 2021 Equity Incentive Plan (the “2021 Plan”), upon the expiration, forfeiture, cancellation, or reacquisition of any shares of Class B common stock underlying outstanding stock-based awards granted under the 2014 Plan, an equal number of shares of Class A common stock will become available for grant under the 2021 Plan. Equity-based awards granted under the 2014 Plan and the 2021 Plan generally vest over four years. All stock option grants expire ten years from the date of grant. In April 2021, the Company’s board of directors adopted, and in June 2021, the Company’s stockholders approved, the 2021 Plan, which became effective at the time of the execution of the underwriting agreement related to the Company’s IPO. The 2021 Plan provides for the grant of incentive stock options, nonqualified stock options, stock appreciation rights, restricted stock awards, restricted stock units (“RSUs”) awards , performance awards, and other forms of awards to employees, directors, and consultants, including employees and consultants of the Company’s affiliates. A total of 25,812,876 shares of the Company’s Class A common stock have been reserved for future issuance under the 2021 Plan in addition to (i) the shares that remained available for grant of future awards under the 2014 Plan at the time the 2021 Plan became effective, (ii) shares underlying outstanding stock awards granted under the 2014 Plan that expire, or are forfeited, cancelled, or reacquired, as described above, and (iii) any automatic increases in the number of shares of Class A common stock reserved for future issuance under this plan. In April 2021, the Company’s board of directors adopted, and in June 2021, the Company’s stockholders approved, the 2021 Employee Stock Purchase Plan (the “2021 ESPP”), which became effective at the time of the execution of the underwriting agreement related to the Company’s IPO. The 2021 ESPP authorizes the issuance of shares of Class A common stock pursuant to purchase rights granted to employees. A total of 5,162,575 shares of the Company’s Class A common stock have been reserved for future issuance under the 2021 ESPP, in addition to any automatic increases in the number of shares of Class A common stock reserved for future issuance under this plan. Except for the initial offering period, the 2021 ESPP provides for 12-month offering periods beginning February 16 and August 16 of each year, and each offering period will consist of two six-month purchase periods. The initial offering period began on June 24, 2021 and will end on August 15, 2022. The initial offering consists of two purchase periods, with the first purchase period ending on February 15, 2022 and the second purchase period ending on August 15, 2022. The price at which Class A common stock is purchased under the 2021 ESPP is equal to 85 % of the lesser of (1) the fair market value of the Company’s stock on the offering date or (2) the fair market value of the Company’s stock on the purchase date. Equity Awards Outstanding The following table summarizes stock equity award activity and activity regarding shares available for grant under the 2014 Plan and the 2021 Plan: Equity Awards Outstanding Shares Available for Grant Outstanding Weighted-Average Weighted-Average Remaining Contractual Term (in years) Aggregate Intrinsic Value (in thousands) Balance as of January 1, 2022 32,797,245 61,926,383 $ 6.97 7.88 $ 4,289,643 Increase in authorized shares 13,590,094 - $ - Stock options exercised - ( 7,695,923 ) $ 3.31 Stock options forfeited or expired 2,308,582 ( 2,308,582 ) $ 8.52 Repurchases of unvested common stock 130,845 - $ - RSUs granted ( 12,688,748 ) - $ - RSUs forfeited or cancelled 644,169 - $ - Balance as of June 30, 2022 36,782,187 51,921,878 $ 7.44 7.53 $ 820,908 Vested as of June 30, 2022 24,848,276 $ 5.31 6.99 $ 445,825 Vested and expected to vest as of June 30, 2022 51,921,878 $ 7.44 7.53 $ 820,908 Aggregate intrinsic value represents the difference between the exercise price of the options to purchase common stock and the estimated fair value of the Company’s common stock. The intrinsic value of options exercised was $ 284.4 million and $ 216.1 million for the six months ended June 30, 2022 and 2021 , respectively. No options were granted during the six months ended June 30, 2022 and the weighted-average grant-date fair value per share of options granted during the six months ended June 30, 2021 was $ 12.41 . Early Exercised Options All stock option holders have the right to exercise unvested options, which are subject to a repurchase right held by the Company at the original exercise price in the event of voluntary or involuntary termination of employment of the stockholder. As of June 30, 2022 and December 31, 2021, there were 1,079,122 and 2,164,577 shares that had been early exercised and were subject to repurchase, respectively. The proceeds related to early exercised options are recorded as liabilities until the options vest, at which point they are reclassified to equity. As of June 30, 2022 and December 31, 2021, the liabilities for early exercised options subject to repurchase were $ 6.8 million and $ 15.8 million, respectively, which were recorded as liability for early exercise of unvested stock options and other liabilities, non-current on the condensed consolidated balance sheets. Shares issued for early exercised options are included in issued and outstanding shares as they are legally issued and outstanding, but are not deemed outstanding for accounting purposes until the shares vest. Performance-Based Options The Company had granted 2,875,255 options with both a service-based vesting condition and a performance-based vesting condition prior to the IPO. No performance-based options were granted subsequent to the IPO. The performance-based vesting condition was not deemed probable until consummated, and therefore, stock-based compensation related to these options remained unrecognized prior to the effectiveness of the IPO. Upon the effectiveness of the IPO in June 2021, the performance-based vesting condition was satisfied, and therefore, the Company recognized cumulative stock-based compensation expense of $ 3.8 million to general and administrative expense using the accelerated attribution method for the portion of the awards for which the service-based vesting condition had been fully or partially satisfied. RSUs The Company began granting RSUs in 2021. RSUs granted prior to the IPO had both service-based and performance-based vesting conditions. The service-based vesting condition for these awards is generally satisfied by rendering continuous service for four years , during which time the grants will vest quarterly. The performance-based vesting condition was satisfied upon the sale of the Company’s common stock in a firm commitment underwritten public offering. The performance-based vesting condition was not deemed probable until consummated, and therefore, stock-based compensation related to these RSUs remained unrecognized prior to the effectiveness of the IPO. RSUs granted after the IPO do not contain the performance-based vesting condition described above. Upon the effectiveness of the IPO in June 2021, the performance-based vesting condition was satisfied, and therefore, the Company recognized cumulative stock-based compensation expense of $ 6.8 million using the accelerated attribution method for the portion of the awards for which the service-based vesting condition had been fully or partially satisfied. The following table summarizes RSU activity under the 2014 Plan and the 2021 Plan: RSUs Outstanding Number of Shares Weighted-Average Unvested balance as of January 1, 2022 6,434,508 $ 46.01 RSUs granted 12,688,748 $ 34.80 RSUs vested ( 1,311,869 ) $ 44.21 RSUs forfeited or cancelled ( 644,169 ) $ 44.72 Unvested balance as of June 30, 2022 17,167,218 $ 37.89 Stock-Based Compensation Expense Total stock-based compensation expense was as follows (in thousands): Three Months Ended June 30, Six Months Ended June 30, 2022 2021 2022 2021 Cost of revenue - subscription $ 6,018 $ 2,172 $ 11,331 $ 3,147 Cost of revenue - services 2,328 1,055 4,190 1,599 Research and development 25,337 8,932 45,422 12,443 Sales and marketing 24,746 11,155 45,808 16,131 General and administrative 10,437 11,202 19,484 14,549 Stock-based compensation, net of amounts capitalized $ 68,866 $ 34,516 $ 126,235 $ 47,869 Capitalized stock-based compensation 1,598 396 3,125 494 Total stock-based compensation $ 70,464 $ 34,912 $ 129,360 $ 48,363 As of June 30, 2022, there was $ 789.6 million of unrecognized stock-based compensation expense, which is expected to be recognized over a weighted-average period of 3.1 years. |
Income Taxes
Income Taxes | 6 Months Ended |
Jun. 30, 2022 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | 10. Income Taxes The Company computes its provision for (benefit from) income taxes for interim periods by applying its estimated annual effective tax rate to year-to-date loss or income for includable jurisdictions before income taxes from recurring operations and adjusting for discrete tax items arising in that interim period. The Company’s provision for income taxes was $ 1.5 million and $ 2.2 million for the three months ended June 30, 2022 and 2021, respectively, and $ 2.2 million and $ 2.1 million for the six months ended June 30, 2022 and 2021, respectively. The Company’s provisions for income taxes for the three and six months ended June 30, 2022 and 2021 were primarily due to a valuation allowance on U.S. and U.K. deferred tax assets, and foreign and state income taxes. During the three months ended June 30, 2022, the amount of gross unrecognized tax benefits increased by an immaterial amount, and this amount would not impact the effective tax rate due to the valuation allowance against certain deferred tax assets. The Company does not expect its gross unrecognized tax benefits to change significantly within the next 12 months, although it is reasonably possible that certain unrecognized tax benefits may increase or decrease within the next 12 months due to tax examination changes, settlement activities, or the impact on recognition and measurement considerations related to the results of published tax cases or other similar activities. There were no interest and penalties associated with unrecognized income tax benefits for any period presented. |
Net Loss Per Share
Net Loss Per Share | 6 Months Ended |
Jun. 30, 2022 | |
Earnings Per Share [Abstract] | |
Net Loss Per Share | 11. Net Loss Per Share For periods in which there were shares of Class A and Class B common stock outstanding, the rights, including the liquidation and dividend rights, of the holders of Class A and Class B common stock were identical, except with respect to voting, converting, and transfer rights. As the liquidation and dividend rights were identical for Class A and Class B common stock, the undistributed earnings were allocated on a proportionate basis and the resulting net loss per share would, therefore, be the same for both Class A and Class B common stock on an individual or combined basis. The following table presents the calculation of basic and diluted net loss per share (in thousands, except share and per share data): Three Months Ended June 30, Six Months Ended June 30, 2022 2021 2022 2021 Class A and Class B Class A and Class B Numerator: Net loss $ ( 117,631 ) $ ( 88,170 ) $ ( 230,618 ) $ ( 132,696 ) Denominator: Weighted-average shares used to compute net loss per share, basic and diluted 278,268,980 118,648,655 275,593,362 113,717,546 Net loss per share, basic and diluted $ ( 0.42 ) $ ( 0.74 ) $ ( 0.84 ) $ ( 1.17 ) The following outstanding potentially dilutive shares were excluded from the computation of diluted net loss per share for the periods presented because the impact of including them would have been anti-dilutive: June 30, 2022 June 30, 2021 Stock options 51,921,878 75,323,365 Unvested early exercised stock options 1,079,122 3,486,976 RSUs 17,167,218 4,050,033 ESPP 758,398 - Shares issuable upon conversion of the 2027 Notes 10,992,960 - Total 81,919,576 82,860,374 The Company calculates the potential dilutive effect of its 2027 Notes under the if-converted method. Under this method, diluted net loss per share is determined by assuming that all of the 2027 Notes were converted into shares of the Company’s Class A common stock at the beginning of the reporting period. In connection with the issuance of the 2027 Notes, the Company entered into Capped Calls, which are not included for purposes of calculating the number of diluted weighted-average shares outstanding, as their effect would have been anti-dilutive. The Capped Calls are expected to partially offset the potential dilution to the Company’s Class A common stock upon any conversion of the 2027 Notes. |
Basis of Presentation and Sum_2
Basis of Presentation and Summary of Significant Accounting Policies (Policies) | 6 Months Ended |
Jun. 30, 2022 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States (“GAAP”) and applicable rules and regulations of the U.S. Securities and Exchange Commission (“SEC”) regarding interim financial reporting. Certain information and note disclosures normally included in the financial statements prepared in accordance with GAAP have been condensed or omitted pursuant to such rules and regulations. Therefore, these condensed consolidated financial statements should be read in conjunction with the audited consolidated financial statements and notes included in the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2021, as filed with the SEC on February 24, 2022 (the “ Annual Report ” ) . In management’s opinion, the unaudited condensed consolidated financial statements have been prepared on a basis consistent with the annual consolidated financial statements and reflect all adjustments, which include only normal recurring adjustments, necessary for the fair statement of the Company’s financial position as of June 30, 2022 and the results of operations and cash flows for the three and six months ended June 30, 2022 and 2021. The results of operations for the three and six months ended June 30, 2022 are not necessarily indicative of the results to be expected for the full year or any other future interim or annual period. The condensed consolidated financial statements include the accounts of the Company and its wholly-owned subsidiaries. All intercompany balances and transactions have been eliminated in consolidation. Reclassifications Certain amounts from prior period have been reclassified to conform to the current period presentation. These reclassifications had no effect on consolidated net loss, stockholders’ (deficit) equity, or cash flows as previously reported. |
Reclassifications | Reclassifications Certain amounts from prior period have been reclassified to conform to the current period presentation. These reclassifications had no effect on consolidated net loss, stockholders’ (deficit) equity, or cash flows as previously reported. |
Use of Estimates | Use of Estimates The preparation of the condensed consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenue and expenses during the reporting period. Such estimates include, but are not limited to, the standalone selling price for each distinct performance obligation included in customer contracts, deferred contract acquisition costs and their period of benefit, valuation of stock-based awards, the fair value of the Company’s common stock prior to its initial public offering (“IPO”) in June 2021, capitalization and estimated useful life of internal-use software, the incremental borrowing rate used to measure operating lease liabilities, and accounting for income taxes. The Company bases its estimates on historical and anticipated results, trends, and various other assumptions that it believes are reasonable under the circumstances. Estimates and assumptions about future events and their effects, including the impact of the COVID-19 pandemic, cannot be determined with certainty and therefore require the exercise of judgment. Actual results could differ from those estimates and any such differences may be material to the Company’s condensed consolidated financial statements. |
Significant Accounting Policies | Significant Accounting Policies Other than the policies described below, there were no significant changes to the Company’s significant accounting policies disclosed in “Note 2 – Basis of Presentation and Summary of Significant Accounting Policies” of the Company’s Annual Report. |
Marketable Securities | Marketable Securities The Company’s marketable securities consist of corporate notes and bonds, commercial paper, U.S. agency obligations, U.S. treasury securities, and municipal bonds. The Company determines the appropriate classification of its marketable securities at the time of purchase and reevaluates such determination at each balance sheet date. The Company has classified and accounted for its marketable securities as available-for-sale securities. The Company may sell these securities at any time for use in its current operations or for other purposes, even prior to maturity. As a result, the Company classifies its marketable securities within current assets. Available-for-sale securities are recorded at fair value each reporting period, and are adjusted for amortization of premiums and accretion of discounts to maturity and such amortization and accretion are included in other income (expense), net in the consolidated statements of operations. Realized gains and losses are determined based on the specific identification method and are reported in other income (expense), net in the condensed consolidated statements of operations. Unrealized gains are reported as a separate component of accumulated other comprehensive income (loss) on the condensed consolidated balance sheets until realized. For available-for-sale debt securities in an unrealized loss position, the Company first assesses whether it intends to sell the security or it is more likely than not that the Company will be required to sell the security before the recovery of its entire amortized cost basis. If either of these criteria is met, the security’s amortized cost basis is written down to fair value through other income (expense), net in the condensed consolidated statements of operations. If neither of these criteria is met, the Company evaluates whether the decline in fair value below amortized cost is due to credit or non-credit related factors. In making this assessment, the Company considers the extent to which fair value is less than amortized cost, any changes to the rating of the security by a rating agency, and any adverse conditions specifically related to the security, among other factors. Credit related unrealized losses are recognized as an allowance for expected credit losses of available-for-sale debt securities on the condensed consolidated balance sheets with a corresponding charge in other income (expense), net in the condensed consolidated statements of operations. Non-credit related unrealized losses are included in accumulated other comprehensive income (loss). |
Accounts Receivable and Allowance for Credit Losses | Accounts Receivable and Allowance for Credit Losses Accounts receivable on the condensed consolidated balance sheets consists of trade accounts receivable and unbilled receivables, net of an allowance for expected credit losses. Trade accounts receivable are stated at the invoiced amount and consist of amounts currently due from customers. Unbilled receivables represent revenue recognized in excess of invoiced amounts for the Company’s unconditional right to consideration in exchange for goods or services that the Company has transferred to the customer, such that only the passage of time is required before payment of consideration is due. The unbilled receivables balance was $ 42.3 million and $ 32.3 million as of June 30, 2022 and December 31, 2021, respectively. Accounts receivable are reduced by an allowance for expected credit losses. The allowance for expected credits losses represents the best estimate of lifetime expected credit losses against the existing accounts receivable, inclusive of unbilled receivables, based on certain factors including the age of the receivable balance, past collection experience with the customer, historical write-off experience, credit quality of the customer, current economic conditions, and reasonable and supportable forecasts of future economic conditions. Accounts receivable deemed uncollectible are written off against the allowance for expected credit losses when identified and the Company no longer actively pursues collection of the receivable. The Company’s allowance for expected credit losses was no t material as of June 30, 2022 and December 31, 2021 . Additions to and write-offs against the allowance for expected credit losses were no t material for the three and six months ended June 30, 2022 and 2021. |
Recent Accounting Pronouncements | Recent Accounting Pronouncements Recently Adopted Accounting Pronouncements Credit Losses: In June 2016, the FASB issued ASU No. 2016-13, Financial Instruments—Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments , which requires the measurement and recognition of expected credit losses for financial assets held at amortized cost, including the Company’s accounts receivable and certain other financial instruments, with multiple codification improvement amendments issued more recently. Credit losses related to available-for-sale debt securities are required to be recorded through an allowance for credit losses rather than as a reduction in the amortized cost basis of the securities. This guidance is effective for the Company for the year beginning January 1, 2023, though early adoption is permitted. The Company early adopted this guidance effective January 1, 2022 on a modified retrospective basis, and the adoption did not result in any cumulative effect adjustment to its opening accumulated deficit balance. |
Marketable Securities (Tables)
Marketable Securities (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Investments, Debt and Equity Securities [Abstract] | |
Schedule of Fair Value and Amortized Cost of Marketable Securities | The following tables summarize the fair values of the Company’s marketable securities (in thousands): June 30, 2022 Amortized Cost Unrealized Gains Unrealized Losses Fair Value U.S. treasury securities $ 1,163,041 $ 45 $ ( 5,355 ) $ 1,157,731 Corporate notes and bonds 137,334 10 ( 2,210 ) 135,134 U.S. agency obligations 100,262 12 ( 1,794 ) 98,480 Commercial paper 36,715 4 ( 205 ) 36,514 Total marketable securities $ 1,437,352 $ 71 $ ( 9,564 ) $ 1,427,859 December 31, 2021 Amortized Cost Unrealized Gains Unrealized Losses Fair Value U.S. treasury securities $ 446,878 $ - $ ( 443 ) $ 446,435 Corporate notes and bonds 125,845 5 ( 246 ) 125,604 U.S. agency obligations 54,122 - ( 115 ) 54,007 Commercial paper 10,995 - - 10,995 Municipal bonds 3,045 - ( 1 ) 3,044 Total marketable securities $ 640,885 $ 5 $ ( 805 ) $ 640,085 |
Schedule of Fair Value and Amortized Cost of Contractual Maturities | The following table summarizes the contractual maturities of the Company’s marketable securities (in thousands): June 30, 2022 Amortized Cost Fair Value Due within one year $ 1,235,817 $ 1,229,767 Due after one year through five years 201,535 198,092 Total $ 1,437,352 $ 1,427,859 |
Fair Value of Financial Instr_2
Fair Value of Financial Instruments (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Fair Value Disclosures [Abstract] | |
Schedule of Fair Value, Assets Measured on Recurring Basis | The following tables summarize the Company’s financial assets that are measured at fair value on a recurring basis (in thousands): June 30, 2022 Level 1 Level 2 Total Cash equivalents: U.S. treasury securities $ - $ 93,922 $ 93,922 Money market funds 6,783 - 6,783 U.S. agency obligations - 3,993 3,993 Marketable securities: U.S. treasury securities - 1,157,731 1,157,731 Corporate notes and bonds - 135,134 135,134 U.S. agency obligations - 98,480 98,480 Commercial paper - 36,514 36,514 Total $ 6,783 $ 1,525,774 $ 1,532,557 December 31, 2021 Level 1 Level 2 Total Cash equivalents: U.S. treasury securities $ - $ 69,999 $ 69,999 Money market funds 23,857 - 23,857 Commercial paper - 4,999 4,999 Marketable securities: U.S. treasury securities - 446,435 446,435 Corporate notes and bonds - 125,604 125,604 U.S. agency obligations - 54,007 54,007 Commercial paper - 10,995 10,995 Municipal bonds - 3,044 3,044 Total $ 23,857 $ 715,083 $ 738,940 |
Balance Sheet Components (Table
Balance Sheet Components (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Summary of Property and Equipment, Net | The cost and accumulated depreciation and amortization of property and equipment were as follows (in thousands): June 30, 2022 December 31, 2021 Computers and equipment $ 6,927 $ 4,541 Furniture and fixtures 1,336 1,322 Purchased software 104 26 Leasehold improvements 425 459 Internal-use software 15,285 8,024 Construction in progress 5,769 5,140 Property and equipment, at cost $ 29,846 $ 19,512 Less: Accumulated depreciation and amortization ( 8,033 ) ( 5,084 ) Property and equipment, net $ 21,813 $ 14,428 |
Summary of Accrued Expense and Other Liabilities | Accrued expenses and other liabilities consisted of the following (in thousands): June 30, 2022 December 31, 2021 Accrued compensation and benefits $ 23,348 $ 27,703 Employee contributions under employee stock purchase plan 18,092 19,247 Accrued expenses 17,375 17,452 Accrued commissions 11,708 13,734 Accrued payroll taxes 9,685 8,681 Other liabilities 13,709 12,157 Total accrued expenses and other liabilities $ 93,917 $ 98,974 |
Convertible Senior Notes (Table
Convertible Senior Notes (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Convertible Debt [Abstract] | |
Schedule of Net Carrying Amount of Notes | The net carrying amount of the 2027 Notes was as follows (in thousands): June 30, 2022 December 31, 2021 Principal $ 1,100,000 $ 1,100,000 Unamortized debt issuance costs ( 17,417 ) ( 19,299 ) Net carrying amount $ 1,082,583 $ 1,080,701 |
Stockholders' Equity (Tables)
Stockholders' Equity (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Stockholders' Equity Note [Abstract] | |
Common Stock Reserved for Future Issuance | The Company has reserved the following shares of common stock for future issuance: June 30, 2022 December 31, 2021 2014 Stock Plan: Options outstanding 51,899,378 61,903,883 Restricted stock units outstanding 2,864,365 3,495,540 2021 Equity Incentive Plan: Options outstanding 22,500 22,500 Restricted stock units outstanding 14,302,853 2,938,968 Remaining shares available for future issuance 36,782,187 32,797,245 2021 Employee Stock Purchase Plan 7,145,776 5,162,575 Total 113,017,059 106,320,711 |
Summary of Stock Equity Award Activity | The following table summarizes stock equity award activity and activity regarding shares available for grant under the 2014 Plan and the 2021 Plan: Equity Awards Outstanding Shares Available for Grant Outstanding Weighted-Average Weighted-Average Remaining Contractual Term (in years) Aggregate Intrinsic Value (in thousands) Balance as of January 1, 2022 32,797,245 61,926,383 $ 6.97 7.88 $ 4,289,643 Increase in authorized shares 13,590,094 - $ - Stock options exercised - ( 7,695,923 ) $ 3.31 Stock options forfeited or expired 2,308,582 ( 2,308,582 ) $ 8.52 Repurchases of unvested common stock 130,845 - $ - RSUs granted ( 12,688,748 ) - $ - RSUs forfeited or cancelled 644,169 - $ - Balance as of June 30, 2022 36,782,187 51,921,878 $ 7.44 7.53 $ 820,908 Vested as of June 30, 2022 24,848,276 $ 5.31 6.99 $ 445,825 Vested and expected to vest as of June 30, 2022 51,921,878 $ 7.44 7.53 $ 820,908 |
Schedule of Restricted Stock Unit Activity | The following table summarizes RSU activity under the 2014 Plan and the 2021 Plan: RSUs Outstanding Number of Shares Weighted-Average Unvested balance as of January 1, 2022 6,434,508 $ 46.01 RSUs granted 12,688,748 $ 34.80 RSUs vested ( 1,311,869 ) $ 44.21 RSUs forfeited or cancelled ( 644,169 ) $ 44.72 Unvested balance as of June 30, 2022 17,167,218 $ 37.89 |
Summary of Stock-Based Compensation Expense | Total stock-based compensation expense was as follows (in thousands): Three Months Ended June 30, Six Months Ended June 30, 2022 2021 2022 2021 Cost of revenue - subscription $ 6,018 $ 2,172 $ 11,331 $ 3,147 Cost of revenue - services 2,328 1,055 4,190 1,599 Research and development 25,337 8,932 45,422 12,443 Sales and marketing 24,746 11,155 45,808 16,131 General and administrative 10,437 11,202 19,484 14,549 Stock-based compensation, net of amounts capitalized $ 68,866 $ 34,516 $ 126,235 $ 47,869 Capitalized stock-based compensation 1,598 396 3,125 494 Total stock-based compensation $ 70,464 $ 34,912 $ 129,360 $ 48,363 |
Revenue (Tables)
Revenue (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Revenue from Contract with Customer [Abstract] | |
Summary of Revenue Disaggregated by Geographic Markets | The following table sets forth revenue disaggregated by geographic markets based on the location of the customer and by subscription and service categories (dollars in thousands): Three Months Ended June 30, Six Months Ended June 30, 2022 2021 2022 2021 Geographic markets: United States $ 87,556 63 % $ 56,811 64 % $ 166,548 63 % $ 106,090 64 % International 51,851 37 % 31,527 36 % 98,998 37 % 59,276 36 % Total revenue $ 139,407 100 % $ 88,338 100 % $ 265,546 100 % $ 165,366 100 % Subscriptions and services: Confluent Platform - License $ 19,568 14 % $ 15,551 18 % $ 38,515 15 % $ 29,512 18 % Confluent Platform - PCS (1) 60,470 43 % 43,296 49 % 116,530 44 % 83,408 51 % Confluent Cloud 46,980 34 % 19,669 22 % 85,893 32 % 33,588 20 % Subscription 127,018 91 % 78,516 89 % 240,938 91 % 146,508 89 % Services 12,389 9 % 9,822 11 % 24,608 9 % 18,858 11 % Total revenue $ 139,407 100 % $ 88,338 100 % $ 265,546 100 % $ 165,366 100 % (1) PCS refers to post-contract customer support, maintenance, and upgrades. |
Schedule of Activity of Deferred Contract Acquisition Costs | The following table summarizes the activity of deferred contract acquisition costs (in thousands): Six Months Ended June 30, 2022 2021 Beginning balance $ 78,824 $ 47,599 Capitalization of contract acquisition costs 22,723 26,348 Amortization of deferred contract acquisition costs ( 17,395 ) ( 11,583 ) Ending balance $ 84,152 $ 62,364 |
Net Loss Per Share (Tables)
Net Loss Per Share (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Earnings Per Share [Abstract] | |
Schedule of Calculation of Basic and Diluted Net Loss Per Share Attributable to Stockholders | The following table presents the calculation of basic and diluted net loss per share (in thousands, except share and per share data): Three Months Ended June 30, Six Months Ended June 30, 2022 2021 2022 2021 Class A and Class B Class A and Class B Numerator: Net loss $ ( 117,631 ) $ ( 88,170 ) $ ( 230,618 ) $ ( 132,696 ) Denominator: Weighted-average shares used to compute net loss per share, basic and diluted 278,268,980 118,648,655 275,593,362 113,717,546 Net loss per share, basic and diluted $ ( 0.42 ) $ ( 0.74 ) $ ( 0.84 ) $ ( 1.17 ) |
Schedule of Antidilutive Securities Excluded from Diluted Income (Loss) per Share | The following outstanding potentially dilutive shares were excluded from the computation of diluted net loss per share for the periods presented because the impact of including them would have been anti-dilutive: June 30, 2022 June 30, 2021 Stock options 51,921,878 75,323,365 Unvested early exercised stock options 1,079,122 3,486,976 RSUs 17,167,218 4,050,033 ESPP 758,398 - Shares issuable upon conversion of the 2027 Notes 10,992,960 - Total 81,919,576 82,860,374 |
Basis of Presentation and Sum_3
Basis of Presentation and Summary of Significant Accounting Policies (Additional Information) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |
Jun. 30, 2022 | Jun. 30, 2022 | Dec. 31, 2021 | |
Accounting Policies [Abstract] | |||
Unbilled receivables balance | $ 42,300 | $ 42,300 | $ 32,300 |
Allowance for credit losses | 0 | 0 | $ 0 |
Write-offs against the allowance for credit losses | $ 0 | $ 0 |
Marketable Securities - Schedul
Marketable Securities - Schedule of Fair Value and Amortized Cost of Marketable Securities (Details) - USD ($) $ in Thousands | Jun. 30, 2022 | Dec. 31, 2021 |
Marketable Securities [Line Items] | ||
Amortized Cost | $ 1,437,352 | $ 640,885 |
Unrealized Gains | 71 | 5 |
Unrealized Losses | (9,564) | (805) |
Fair Value | 1,427,859 | 640,085 |
Corporate notes and bonds [Member] | ||
Marketable Securities [Line Items] | ||
Amortized Cost | 137,334 | 125,845 |
Unrealized Gains | 10 | 5 |
Unrealized Losses | (2,210) | (246) |
Fair Value | 135,134 | 125,604 |
Commercial paper [Member] | ||
Marketable Securities [Line Items] | ||
Amortized Cost | 36,715 | 10,995 |
Unrealized Gains | 4 | 0 |
Unrealized Losses | (205) | 0 |
Fair Value | 36,514 | 10,995 |
U.S. treasury securities [Member] | ||
Marketable Securities [Line Items] | ||
Amortized Cost | 1,163,041 | 446,878 |
Unrealized Gains | 45 | 0 |
Unrealized Losses | (5,355) | (443) |
Fair Value | 1,157,731 | 446,435 |
U.S. agency obligations [Member] | ||
Marketable Securities [Line Items] | ||
Amortized Cost | 100,262 | 54,122 |
Unrealized Gains | 12 | 0 |
Unrealized Losses | (1,794) | (115) |
Fair Value | $ 98,480 | 54,007 |
Municipal bonds [Member] | ||
Marketable Securities [Line Items] | ||
Amortized Cost | 3,045 | |
Unrealized Gains | ||
Unrealized Losses | (1) | |
Fair Value | $ 3,044 |
Marketable Securities - Additio
Marketable Securities - Additional Information (Details) - USD ($) $ in Thousands | Jun. 30, 2022 | Dec. 31, 2021 |
Investments, Debt and Equity Securities [Abstract] | ||
Available-for-sale securities, continuous unrealized loss position, twelve months or longer, fair value | $ 0 | $ 0 |
Available-for-sale marketable securities, Continuous Unrealized Loss Position, Fair Value | 1,380,100 | $ 618,300 |
Allowance for credit losses | $ 0 |
Marketable Securities - Sched_2
Marketable Securities - Schedule of Fair Value of Contractual Maturities (Details) - USD ($) $ in Thousands | Jun. 30, 2022 | Dec. 31, 2021 |
Investments, Debt and Equity Securities [Abstract] | ||
Due within one year, amortized cost | $ 1,235,817 | |
Due after one year through five years, amortized cost | 201,535 | |
Amortized Cost | 1,437,352 | $ 640,885 |
Due within one year, fair value | 1,229,767 | |
Due after one year through five years, fair value | 198,092 | |
Fair Value | $ 1,427,859 | $ 640,085 |
Fair Value of Financial Instr_3
Fair Value of Financial Instruments - Financial Assets Measured at Fair Value on Recurring Basis (Details) - USD ($) $ in Thousands | Jun. 30, 2022 | Dec. 31, 2021 |
Marketable securities: | ||
Fair value, Marketable securities | $ 1,427,859 | $ 640,085 |
Municipal bonds [Member] | ||
Marketable securities: | ||
Fair value, Marketable securities | 3,044 | |
Fair Value, Measurements, Recurring [Member] | ||
Cash equivalents and Marketable securities: | ||
Assets, Fair Value | 1,532,557 | 738,940 |
Fair Value, Measurements, Recurring [Member] | Municipal bonds [Member] | ||
Marketable securities: | ||
Fair value, Marketable securities | 3,044 | |
Fair Value, Measurements, Recurring [Member] | Corporate Notes and Bonds [Member] | ||
Marketable securities: | ||
Fair value, Marketable securities | 135,134 | 125,604 |
Fair Value, Measurements, Recurring [Member] | Commercial Paper [Member] | ||
Cash equivalents: | ||
Fair value, Cash equivalents | 4,999 | |
Marketable securities: | ||
Fair value, Marketable securities | 36,514 | 10,995 |
Fair Value, Measurements, Recurring [Member] | U.S. Agency Obligations [Member] | ||
Cash equivalents: | ||
Fair value, Cash equivalents | 3,993 | |
Marketable securities: | ||
Fair value, Marketable securities | 98,480 | 54,007 |
Fair Value, Measurements, Recurring [Member] | U.S. Treasury Securities [Member] | ||
Cash equivalents: | ||
Fair value, Cash equivalents | 93,922 | 69,999 |
Marketable securities: | ||
Fair value, Marketable securities | 1,157,731 | 446,435 |
Fair Value, Measurements, Recurring [Member] | Money Market Funds [Member] | ||
Cash equivalents: | ||
Fair value, Cash equivalents | 6,783 | 23,857 |
Fair Value, Measurements, Recurring [Member] | Level 1 [Member] | ||
Cash equivalents and Marketable securities: | ||
Assets, Fair Value | 6,783 | 23,857 |
Fair Value, Measurements, Recurring [Member] | Level 1 [Member] | Municipal bonds [Member] | ||
Marketable securities: | ||
Fair value, Marketable securities | 0 | |
Fair Value, Measurements, Recurring [Member] | Level 1 [Member] | Corporate Notes and Bonds [Member] | ||
Marketable securities: | ||
Fair value, Marketable securities | 0 | 0 |
Fair Value, Measurements, Recurring [Member] | Level 1 [Member] | Commercial Paper [Member] | ||
Cash equivalents: | ||
Fair value, Cash equivalents | 0 | |
Marketable securities: | ||
Fair value, Marketable securities | 0 | 0 |
Fair Value, Measurements, Recurring [Member] | Level 1 [Member] | U.S. Agency Obligations [Member] | ||
Cash equivalents: | ||
Fair value, Cash equivalents | 0 | |
Marketable securities: | ||
Fair value, Marketable securities | 0 | 0 |
Fair Value, Measurements, Recurring [Member] | Level 1 [Member] | U.S. Treasury Securities [Member] | ||
Cash equivalents: | ||
Fair value, Cash equivalents | 0 | 0 |
Marketable securities: | ||
Fair value, Marketable securities | 0 | 0 |
Fair Value, Measurements, Recurring [Member] | Level 1 [Member] | Money Market Funds [Member] | ||
Cash equivalents: | ||
Fair value, Cash equivalents | 6,783 | 23,857 |
Fair Value, Measurements, Recurring [Member] | Level 2 [Member] | ||
Cash equivalents and Marketable securities: | ||
Assets, Fair Value | 1,525,774 | 715,083 |
Fair Value, Measurements, Recurring [Member] | Level 2 [Member] | Municipal bonds [Member] | ||
Marketable securities: | ||
Fair value, Marketable securities | 3,044 | |
Fair Value, Measurements, Recurring [Member] | Level 2 [Member] | Corporate Notes and Bonds [Member] | ||
Marketable securities: | ||
Fair value, Marketable securities | 135,134 | 125,604 |
Fair Value, Measurements, Recurring [Member] | Level 2 [Member] | Commercial Paper [Member] | ||
Cash equivalents: | ||
Fair value, Cash equivalents | 4,999 | |
Marketable securities: | ||
Fair value, Marketable securities | 36,514 | 10,995 |
Fair Value, Measurements, Recurring [Member] | Level 2 [Member] | U.S. Agency Obligations [Member] | ||
Cash equivalents: | ||
Fair value, Cash equivalents | 3,993 | |
Marketable securities: | ||
Fair value, Marketable securities | 98,480 | 54,007 |
Fair Value, Measurements, Recurring [Member] | Level 2 [Member] | U.S. Treasury Securities [Member] | ||
Cash equivalents: | ||
Fair value, Cash equivalents | 93,922 | 69,999 |
Marketable securities: | ||
Fair value, Marketable securities | 1,157,731 | 446,435 |
Fair Value, Measurements, Recurring [Member] | Level 2 [Member] | Money Market Funds [Member] | ||
Cash equivalents: | ||
Fair value, Cash equivalents | $ 0 | $ 0 |
Fair Value of Financial Instr_4
Fair Value of Financial Instruments - Additional Information (Details) - USD ($) $ in Millions | Jun. 30, 2022 | Dec. 31, 2021 |
Zero Percentage Convertible senior notes due 2027 | ||
Debt Instrument [Line Items] | ||
Total estimated fair value of the 2027 Notes | $ 804.7 | $ 1,206.7 |
Balance Sheet Components - Summ
Balance Sheet Components - Summary of Property and Equipment, Net (Details) - USD ($) $ in Thousands | Jun. 30, 2022 | Dec. 31, 2021 |
Property Plant And Equipment [Line Items] | ||
Property and equipment, gross | $ 29,846 | $ 19,512 |
Less: Accumulated depreciation and amortization | (8,033) | (5,084) |
Property and equipment, net | 21,813 | 14,428 |
Computers and Equipment [Member] | ||
Property Plant And Equipment [Line Items] | ||
Property and equipment, gross | 6,927 | 4,541 |
Furniture and Fixtures [Member] | ||
Property Plant And Equipment [Line Items] | ||
Property and equipment, gross | 1,336 | 1,322 |
Software [Member] | ||
Property Plant And Equipment [Line Items] | ||
Property and equipment, gross | 104 | 26 |
Leasehold Improvements [Member] | ||
Property Plant And Equipment [Line Items] | ||
Property and equipment, gross | 425 | 459 |
Internal-use Software [Member] | ||
Property Plant And Equipment [Line Items] | ||
Property and equipment, gross | 15,285 | 8,024 |
Construction in Progress [Member] | ||
Property Plant And Equipment [Line Items] | ||
Property and equipment, gross | $ 5,769 | $ 5,140 |
Balance Sheet Components - Addi
Balance Sheet Components - Additional Information (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Property, Plant and Equipment [Abstract] | ||||
Depreciation and amortization | $ 1,800 | $ 700 | $ 3,060 | $ 1,543 |
Balance Sheet Components - Su_2
Balance Sheet Components - Summary of Accrued Expense and Other Liabilities (Details) - USD ($) $ in Thousands | Jun. 30, 2022 | Dec. 31, 2021 |
Payables and Accruals [Abstract] | ||
Accrued compensation and benefits | $ 23,348 | $ 27,703 |
Employee contributions under ESPP | 18,092 | 19,247 |
Accrued expenses | 17,375 | 17,452 |
Accrued commissions | 11,708 | 13,734 |
Accrued payroll taxes | 9,685 | 8,681 |
Other liabilities | 13,709 | 12,157 |
Total accrued expenses and other liabilities | $ 93,917 | $ 98,974 |
Convertible Senior Notes - Addi
Convertible Senior Notes - Additional Information (Details) $ / shares in Units, $ in Thousands | 3 Months Ended | 6 Months Ended | |
Jun. 30, 2022 USD ($) $ / shares | Jun. 30, 2022 USD ($) Days $ / shares shares | Jun. 30, 2021 USD ($) | |
Debt Instrument [Line Items] | |||
Amortization of debt issuance costs | $ 900 | $ 1,883 | $ 0 |
Zero Percentage Convertible senior notes due 2027 | |||
Debt Instrument [Line Items] | |||
Debt instrument face amount | $ 1,100,000 | $ 1,100,000 | |
Debt instrument, interest rate, stated percentage | 0% | 0% | |
Debt instrument net proceed after discounts and cost | $ 1,080,500 | ||
Number of trading days | Days | 30 | ||
Debt instrument percentage price | 130% | ||
Debt instrument convertible conversion ratio denominator | $ 1,000 | $ 1,000 | |
Percentage of principal amount of debt redeemed | 100% | ||
Debt issuance costs, Gross | $ 19,500 | $ 19,500 | |
Effective interest rate of debt | 0.35% | 0.35% | |
Zero Percentage Convertible senior notes due 2027 | Capped Calls [Member] | |||
Debt Instrument [Line Items] | |||
Initial strike price | $ / shares | $ 100.06 | ||
Initial cap price | $ / shares | $ 138.02 | $ 138.02 | |
Payments for purchase of capped calls | $ 91,000 | ||
Zero Percentage Convertible senior notes due 2027 | Common Class A [Member] | |||
Debt Instrument [Line Items] | |||
Convertible debt, conversion ratio | 9.9936 | ||
Debt Instrument, Convertible, Conversion Price | $ / shares | $ 100.06 | $ 100.06 | |
Debt instrument percentage price | 130% | ||
Zero Percentage Convertible senior notes due 2027 | Common Class A [Member] | Capped Calls [Member] | |||
Debt Instrument [Line Items] | |||
Adjustment to anti-dilution common stock | shares | 11,000,000 | ||
Zero Percentage Convertible senior notes due 2027 | Common Stock Subject To Mandatory Redemption [Member] | |||
Debt Instrument [Line Items] | |||
Debt instrument face amount | $ 100,000 | $ 100,000 | |
Zero Percentage Convertible senior notes due 2027 | Maximum [Member] | |||
Debt Instrument [Line Items] | |||
Debt instrument face amount | $ 100,000 | $ 100,000 | |
Debt instrument percentage price | 98% | ||
Zero Percentage Convertible senior notes due 2027 | Minimum [Member] | |||
Debt Instrument [Line Items] | |||
Number of trading days | Days | 20 |
Convertible Senior Notes - Sche
Convertible Senior Notes - Schedule of Net Carrying Amount of Notes (Details) - USD ($) $ in Thousands | Jun. 30, 2022 | Dec. 31, 2021 |
Convertible Debt [Abstract] | ||
Principal | $ 1,100,000 | $ 1,100,000 |
Unamortized debt issuance costs | (17,417) | (19,299) |
Long-term debt, Total | $ 1,082,583 | $ 1,080,701 |
Commitments and Contingencies -
Commitments and Contingencies - Additional Information (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | Dec. 31, 2019 | |
Lessee Lease Description [Line Items] | |||||
Lessee, operating lease, existence of option to terminate | true | ||||
Operating lease, option to terminate, description | an option to terminate the lease early within three years of lease termination | ||||
Sublease Income | $ 0 | $ 0 | $ 0 | $ 1,400 | |
CALIFORNIA [Member] | |||||
Lessee Lease Description [Line Items] | |||||
Letters of Credit Outstanding, Amount | $ 8,200 | ||||
Maximum [Member] | |||||
Lessee Lease Description [Line Items] | |||||
Operating lease, renewal term | 3 years | 3 years |
Revenue - Summary of Revenue Di
Revenue - Summary of Revenue Disaggregated by Geographic Markets (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Disaggregation Of Revenue [Line Items] | ||||
Total revenue | $ 139,407 | $ 88,338 | $ 265,546 | $ 165,366 |
Revenue Benchmark [Member] | Geographic Concentration Risk [Member] | Major Customers [Member] | ||||
Disaggregation Of Revenue [Line Items] | ||||
Percentage of Revenue | 100% | 100% | 100% | 100% |
Revenue Benchmark [Member] | Subscription and Service Concentration Risk [Member] | Major Customers [Member] | ||||
Disaggregation Of Revenue [Line Items] | ||||
Percentage of Revenue | 100% | 100% | 100% | 100% |
United States [Member] | ||||
Disaggregation Of Revenue [Line Items] | ||||
Total revenue | $ 87,556 | $ 56,811 | $ 166,548 | $ 106,090 |
United States [Member] | Revenue Benchmark [Member] | Geographic Concentration Risk [Member] | ||||
Disaggregation Of Revenue [Line Items] | ||||
Percentage of Revenue | 63% | 64% | 63% | 64% |
International [Member] | ||||
Disaggregation Of Revenue [Line Items] | ||||
Total revenue | $ 51,851 | $ 31,527 | $ 98,998 | $ 59,276 |
International [Member] | Revenue Benchmark [Member] | Geographic Concentration Risk [Member] | ||||
Disaggregation Of Revenue [Line Items] | ||||
Percentage of Revenue | 37% | 36% | 37% | 36% |
License [Member] | ||||
Disaggregation Of Revenue [Line Items] | ||||
Total revenue | $ 19,568 | $ 15,551 | $ 38,515 | $ 29,512 |
License [Member] | Revenue Benchmark [Member] | Subscription and Service Concentration Risk [Member] | ||||
Disaggregation Of Revenue [Line Items] | ||||
Percentage of Revenue | 14% | 18% | 15% | 18% |
Post Contract Customer Support [Member] | ||||
Disaggregation Of Revenue [Line Items] | ||||
Total revenue | $ 60,470 | $ 43,296 | $ 116,530 | $ 83,408 |
Post Contract Customer Support [Member] | Revenue Benchmark [Member] | Subscription and Service Concentration Risk [Member] | ||||
Disaggregation Of Revenue [Line Items] | ||||
Percentage of Revenue | 43% | 49% | 44% | 51% |
Confluent Cloud [Member] | ||||
Disaggregation Of Revenue [Line Items] | ||||
Total revenue | $ 46,980 | $ 19,669 | $ 85,893 | $ 33,588 |
Confluent Cloud [Member] | Revenue Benchmark [Member] | Subscription and Service Concentration Risk [Member] | ||||
Disaggregation Of Revenue [Line Items] | ||||
Percentage of Revenue | 34% | 22% | 32% | 20% |
Subscription [Member] | ||||
Disaggregation Of Revenue [Line Items] | ||||
Total revenue | $ 127,018 | $ 78,516 | $ 240,938 | $ 146,508 |
Subscription [Member] | Revenue Benchmark [Member] | Subscription and Service Concentration Risk [Member] | ||||
Disaggregation Of Revenue [Line Items] | ||||
Percentage of Revenue | 91% | 89% | 91% | 89% |
Services [Member] | ||||
Disaggregation Of Revenue [Line Items] | ||||
Total revenue | $ 12,389 | $ 9,822 | $ 24,608 | $ 18,858 |
Services [Member] | Revenue Benchmark [Member] | Subscription and Service Concentration Risk [Member] | ||||
Disaggregation Of Revenue [Line Items] | ||||
Percentage of Revenue | 9% | 11% | 9% | 11% |
Revenue - Additional Informatio
Revenue - Additional Information (Details) - USD ($) $ in Millions | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Dec. 31, 2021 | |
Disaggregation Of Revenue [Line Items] | |||
Revenue, remaining performance obligation, amount | $ 591.3 | ||
Revenue, remaining performance obligation, percentage | 62% | ||
Deferred revenue | $ 285.7 | $ 246.5 | |
Revenue recognized from deferred revenue | $ 152.7 | $ 91 |
Revenue - Schedule of Activity
Revenue - Schedule of Activity of Deferred Contract Acquisition Costs (Details) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2022 | Jun. 30, 2021 | |
Revenue from Contract with Customer [Abstract] | ||
Beginning balance | $ 78,824 | $ 47,599 |
Capitalization of contract acquisition costs | 22,723 | 26,348 |
Amortization of deferred contract acquisition costs | (17,395) | (11,583) |
Ending balance | $ 84,152 | $ 62,364 |
Stockholders' Equity - Addition
Stockholders' Equity - Additional Information (Details) $ / shares in Units, $ in Thousands | 1 Months Ended | 3 Months Ended | 6 Months Ended | 12 Months Ended | |
Jun. 30, 2021 shares | Jun. 30, 2021 USD ($) | Jun. 30, 2022 USD ($) Vote $ / shares shares | Jun. 30, 2021 USD ($) $ / shares | Dec. 31, 2021 USD ($) $ / shares shares | |
Class Of Stock [Line Items] | |||||
Preferred Stock, Shares Authorized | 10,000,000 | 10,000,000 | |||
Preferred Stock, Par or Stated Value Per Share | $ / shares | $ 0.00001 | $ 0.00001 | |||
Conversion, percent threshold | 10% | ||||
Common stock reserved for issuance (in shares) | 113,017,059 | 106,320,711 | |||
Intrinsic value of options exercised | $ | $ 284,400 | $ 216,100 | |||
Common stock charitable donation expense | $ | $ 13,290 | $ 0 | $ 13,290 | ||
Weighted average grant date fair value per share of options granted | $ / shares | $ 0 | $ 12.41 | |||
Shares early exercised and repurchase | 1,079,122 | 2,164,577 | |||
Liabilities for early exercise of unvested stock options and other liabilities | $ | $ 6,800 | $ 15,800 | |||
Cumulative stock-based compensation expense | $ | 3,800 | ||||
Unrecognized stock-based compensation expense | $ | $ 789,600 | ||||
Unrecognized stock-based compensation expense, weighted-average period | 3 years 1 month 6 days | ||||
Performance Shares [Member] | |||||
Class Of Stock [Line Items] | |||||
Performance options, shares | 2,875,255 | ||||
Restricted Stock Units [Member] | |||||
Class Of Stock [Line Items] | |||||
Service based vesting period | 4 years | ||||
Stock based compensation expense | $ | $ 6,800 | ||||
Common Class A [Member] | |||||
Class Of Stock [Line Items] | |||||
Common Stock, Shares Authorized | 1,000,000,000 | 1,000,000,000 | |||
Common stock, voting rights, votes per share | Vote | 1 | ||||
Common Stock, Par Value | $ / shares | $ 0.00001 | $ 0.00001 | |||
Number of new stock issued during the period | 250,000 | ||||
Common stock charitable donation expense | $ | $ 13,300 | ||||
Common Class B [Member] | |||||
Class Of Stock [Line Items] | |||||
Common Stock, Shares Authorized | 500,000,000 | 500,000,000 | |||
Common stock, voting rights, votes per share | Vote | 10 | ||||
Common Stock, Par Value | $ / shares | $ 0.00001 | $ 0.00001 | |||
2021 Plan [Member] | Common Class A [Member] | |||||
Class Of Stock [Line Items] | |||||
Common stock reserved for issuance (in shares) | 25,812,876 | ||||
2021 Employee Stock Purchase Plan [Member] | |||||
Class Of Stock [Line Items] | |||||
Common stock reserved for issuance (in shares) | 7,145,776 | 5,162,575 | |||
2021 Employee Stock Purchase Plan [Member] | Common Class A [Member] | |||||
Class Of Stock [Line Items] | |||||
Common stock reserved for issuance (in shares) | 5,162,575 | ||||
Purchase price of common stock expressed as a percentage of its fair value | 85% |
Stockholders' Equity - Common S
Stockholders' Equity - Common Stock Reserved for Future Issuance (Details) - shares | Jun. 30, 2022 | Dec. 31, 2021 |
Class Of Stock [Line Items] | ||
Common stock reserved for issuance (in shares) | 113,017,059 | 106,320,711 |
2014 Stock Plan [Member] | Stock Options [Member] | ||
Class Of Stock [Line Items] | ||
Common stock reserved for issuance (in shares) | 51,899,378 | 61,903,883 |
2014 Stock Plan [Member] | RSUs [Member] | ||
Class Of Stock [Line Items] | ||
Common stock reserved for issuance (in shares) | 2,864,365 | 3,495,540 |
2021 Equity Incentive Plan [Member] | ||
Class Of Stock [Line Items] | ||
Common stock reserved for issuance (in shares) | 36,782,187 | 32,797,245 |
2021 Equity Incentive Plan [Member] | Stock Options [Member] | ||
Class Of Stock [Line Items] | ||
Common stock reserved for issuance (in shares) | 22,500 | 22,500 |
2021 Equity Incentive Plan [Member] | RSUs [Member] | ||
Class Of Stock [Line Items] | ||
Common stock reserved for issuance (in shares) | 14,302,853 | 2,938,968 |
2021 Employee Stock Purchase Plan [Member] | ||
Class Of Stock [Line Items] | ||
Common stock reserved for issuance (in shares) | 7,145,776 | 5,162,575 |
Stockholders' Equity - Summary
Stockholders' Equity - Summary of Stock Equity Award Activity (Details) $ / shares in Units, $ in Thousands | 6 Months Ended | 12 Months Ended |
Jun. 30, 2022 USD ($) $ / shares shares | Dec. 31, 2021 USD ($) $ / shares shares | |
Share-Based Payment Arrangement [Abstract] | ||
Shares Available for Grant, Beginning Balance | 32,797,245 | |
Shares Available for Grant, Increase in authorized shares | 13,590,094 | |
Shares Available for Grant, Stock options forfeited or expired | 2,308,582 | |
Shares Available for Grant, Repurchases of unvested common stock | 130,845 | |
Shares Available for Grant, RSUs granted | (12,688,748) | |
Shares Available for Grant, RSUs Forfeited or Cancelled | 644,169 | |
Shares Available for Grant, Ending Balance | 36,782,187 | 32,797,245 |
Outstanding Stock Options, Beginning Balance | 61,926,383 | |
Outstanding Stock Options, Stock options exercised | (7,695,923) | |
Outstanding Stock Options, Ending Balance | 51,921,878 | 61,926,383 |
Outstanding Stock Options, Vested | 24,848,276 | |
Outstanding Stock Options, Vested and expected to vest | 51,921,878 | |
Weighted-Average Exercise Price, Beginning Balance | $ / shares | $ 6.97 | |
Weighted-Average Exercise Price, Stock options exercised | $ / shares | 3.31 | |
Weighted-Average Exercise Price, Stock options forfeited or expired | $ / shares | 8.52 | |
Weighted-Average Exercise Price, Ending Balance | $ / shares | 7.44 | $ 6.97 |
Weighted-Average Exercise Price, Vested | $ / shares | 5.31 | |
Weighted-Average Exercise Price, Vested and Expected to Vest | $ / shares | $ 7.44 | |
Weighted-Average Remaining Contractual Term (in years) | 7 years 6 months 10 days | 7 years 10 months 17 days |
Weighted-Average Remaining Contractual Term Vested (in years) | 6 years 11 months 26 days | |
Weighted-Average Remaining Contractual Term Vested and expected to vest (in years) | 7 years 6 months 10 days | |
Aggregate Intrinsic Value, Beginning Balance | $ | $ 4,289,643 | |
Aggregate Intrinsic Value, Ending Balance | $ | 820,908 | $ 4,289,643 |
Aggregate Intrinsic Value, Vested as of June 30, 2022 | $ | 445,825 | |
Aggregate Intrinsic Value, Vested and expected to vest as of June 30, 2022 | $ | $ 820,908 |
Stockholders' Equity - Schedule
Stockholders' Equity - Schedule of Restricted Stock Unit Activity (Details) - Restricted Stock Units (RSUs) [Member] | 6 Months Ended |
Jun. 30, 2022 $ / shares shares | |
Share-Based Compensation Arrangement by Share-Based Payment Award, Non-Option Equity Instruments, Outstanding [Roll Forward] | |
Number of Shares, Beginning Balance | shares | 6,434,508 |
Number of Shares, RSUs granted | shares | 12,688,748 |
Number of Shares, RSUs vested | shares | (1,311,869) |
Number of Shares, RSUs forfeited or cancelled | shares | shares | (644,169) |
Number of Shares, Ending Balance | shares | 17,167,218 |
Share-Based Compensation Arrangement by Share-Based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value [Abstract] | |
Weighted-average grant date fair value, Beginning Balance (in dollars per share) | $ / shares | $ 46.01 |
Weighted-average grant date fair value, RSUs granted (in dollars per share) | $ / shares | 34.80 |
Weighted-average grant date fair value, RSUs vested (in dollars per share) | $ / shares | 44.21 |
Weighted-average grant date fair value, RSUs forfeited or cancelled (in dollars per share) | $ / shares | 44.72 |
Weighted-average grant date fair value, Ending Balance (in dollars per share) | $ / shares | $ 37.89 |
Stockholders' Equity - Summar_2
Stockholders' Equity - Summary of Stock-Based Compensation Expense (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Stock-based compensation, net of amounts capitalized | $ 68,866 | $ 34,516 | $ 126,235 | $ 47,869 |
Capitalized stock-based compensation | 1,598 | 396 | 3,125 | 494 |
Total stock-based compensation | 70,464 | 34,912 | 129,360 | 48,363 |
Cost of Revenue [Member] | Subscription [Member] | ||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Stock-based compensation, net of amounts capitalized | 6,018 | 2,172 | 11,331 | 3,147 |
Cost of Revenue [Member] | Services [Member] | ||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Stock-based compensation, net of amounts capitalized | 2,328 | 1,055 | 4,190 | 1,599 |
Research and Development [Member] | ||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Stock-based compensation, net of amounts capitalized | 25,337 | 8,932 | 45,422 | 12,443 |
Sales and Marketing [Member] | ||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Stock-based compensation, net of amounts capitalized | 24,746 | 11,155 | 45,808 | 16,131 |
General and Administrative [Member] | ||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Stock-based compensation, net of amounts capitalized | $ 10,437 | $ 11,202 | $ 19,484 | $ 14,549 |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Income Tax Disclosure [Abstract] | ||||
Provision for income taxes | $ 1,510 | $ 2,170 | $ 2,199 | $ 2,060 |
Income tax interest and penalties | 0 | |||
Gross unrecognized tax benefits | $ 0 | $ 0 |
Net Loss Per Share - Schedule o
Net Loss Per Share - Schedule of Calculation of Basic and Diluted Net Loss Per Share Attributable to Stockholders (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Numerator: | ||||
Net loss | $ (117,631) | $ (88,170) | $ (230,618) | $ (132,696) |
Denominator: | ||||
Weighted-average shares used to compute net loss per share, basic | 278,268,980 | 118,648,655 | 275,593,362 | 113,717,546 |
Weighted-average shares used to compute net loss per share, diluted | 278,268,980 | 118,648,655 | 275,593,362 | 113,717,546 |
Net loss per share, basic | $ (0.42) | $ (0.74) | $ (0.84) | $ (1.17) |
Net loss per share, diluted | $ (0.42) | $ (0.74) | $ (0.84) | $ (1.17) |
Class A and Class B [Member] | ||||
Numerator: | ||||
Net loss | $ (117,631) | $ (88,170) | $ (230,618) | $ (132,696) |
Denominator: | ||||
Weighted-average shares used to compute net loss per share, basic | 278,268,980 | 118,648,655 | 275,593,362 | 113,717,546 |
Weighted-average shares used to compute net loss per share, diluted | 278,268,980 | 118,648,655 | 275,593,362 | 113,717,546 |
Net loss per share, basic | $ (0.42) | $ (0.74) | $ (0.84) | $ (1.17) |
Net loss per share, diluted | $ (0.42) | $ (0.74) | $ (0.84) | $ (1.17) |
Net Loss Per Share - Schedule_2
Net Loss Per Share - Schedule of Antidilutive Securities Excluded From Computation of Diluted Net Loss Per Share (Details) - shares | 6 Months Ended | |
Jun. 30, 2022 | Jun. 30, 2021 | |
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | ||
Antidilutive securities excluded from computation of earnings per share amount | 81,919,576 | 82,860,374 |
Stock Option [Member] | ||
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | ||
Antidilutive securities excluded from computation of earnings per share amount | 51,921,878 | 75,323,365 |
Unvested Early Exercised Stock Options [Member] | ||
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | ||
Antidilutive securities excluded from computation of earnings per share amount | 1,079,122 | 3,486,976 |
RSUs [Member] | ||
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | ||
Antidilutive securities excluded from computation of earnings per share amount | 17,167,218 | 4,050,033 |
ESPP [Member] | ||
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | ||
Antidilutive securities excluded from computation of earnings per share amount | 758,398 | 0 |
Shares issuable upon conversion of the 2027 Notes [Member] | ||
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | ||
Antidilutive securities excluded from computation of earnings per share amount | 10,992,960 | 0 |