Document and Entity Information
Document and Entity Information - shares | 6 Months Ended | |
Jun. 30, 2023 | Jul. 26, 2023 | |
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Jun. 30, 2023 | |
Document Fiscal Year Focus | 2023 | |
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 | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | 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 $0.00001 per share | |
Entity File Number | 001-40526 | |
Security Exchange Name | NASDAQ | |
Entity Incorporation, State or Country Code | DE | |
Entity Tax Identification Number | 47-1824387 | |
Entity Address, Address Line One | 899 W. Evelyn Avenue | |
Entity Address, City or Town | Mountain View | |
Entity Address, State or Province | CA | |
Entity Address, Postal Zip Code | 94041 | |
City Area Code | 800 | |
Local Phone Number | 439-3207 | |
Document Transition Report | false | |
Document Quarterly Report | true | |
Class A Common Stock [Member] | ||
Entity Common Stock, Shares Outstanding | 211,915,403 | |
Class B Common Stock [Member] | ||
Entity Common Stock, Shares Outstanding | 90,506,212 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets (Unaudited) - USD ($) $ in Thousands | Jun. 30, 2023 | Dec. 31, 2022 |
Current assets: | ||
Cash and cash equivalents | $ 312,643 | $ 435,781 |
Marketable securities | 1,534,912 | 1,491,044 |
Accounts receivable, net | 188,705 | 178,188 |
Deferred contract acquisition costs | 39,180 | 35,883 |
Prepaid expenses and other current assets | 64,218 | 57,229 |
Total current assets | 2,139,658 | 2,198,125 |
Property and equipment, net | 43,599 | 29,089 |
Operating lease right-of-use assets | 11,870 | 29,478 |
Goodwill and intangible assets, net | 45,814 | 0 |
Deferred contract acquisition costs, non-current | 67,533 | 68,401 |
Other assets, non-current | 19,166 | 19,756 |
Total assets | 2,327,640 | 2,344,849 |
Current liabilities: | ||
Accounts payable | 2,459 | 21,439 |
Accrued expenses and other liabilities | 112,495 | 105,331 |
Operating lease liabilities | 7,618 | 7,375 |
Deferred revenue | 300,786 | 290,185 |
Total current liabilities | 423,358 | 424,330 |
Operating lease liabilities, non-current | 21,394 | 25,136 |
Deferred revenue, non-current | 27,187 | 32,644 |
Convertible senior notes, net | 1,086,389 | 1,084,500 |
Other liabilities, non-current | 7,926 | 8,762 |
Total liabilities | 1,566,254 | 1,575,372 |
Commitments and contingencies (Note 9) | ||
Stockholders' equity: | ||
Preferred stock, par value of $0.00001 per share; 10,000,000 shares authorized as of June 30 ,2023 and December 31, 2022; 0 shares issued and outstanding as of June 30, 2023 and December 31, 2022 | 0 | 0 |
Additional paid-in capital | 2,228,574 | 1,980,335 |
Accumulated other comprehensive loss | (9,806) | (9,456) |
Accumulated deficit | (1,457,385) | (1,201,405) |
Total stockholders' equity | 761,386 | 769,477 |
Total liabilities and stockholders' equity | 2,327,640 | 2,344,849 |
Class A Common Stock [Member] | ||
Stockholders' equity: | ||
Common Stock, Value | 2 | 2 |
Class B Common Stock [Member] | ||
Stockholders' equity: | ||
Common Stock, Value | $ 1 | $ 1 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Unaudited) (Parenthetical) - $ / shares | Jun. 30, 2023 | Dec. 31, 2022 |
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 | 210,903,270 | 172,483,134 |
Common Stock, Shares, Outstanding | 210,903,270 | 172,483,134 |
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 | 90,774,951 | 116,901,046 |
Common Stock, Shares, Outstanding | 90,774,951 | 116,901,046 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Revenue: | ||||
Total revenue | $ 189,285 | $ 139,407 | $ 363,587 | $ 265,546 |
Cost of revenue: | ||||
Total cost of revenue | 57,920 | 49,509 | 116,064 | 95,286 |
Gross profit | 131,365 | 89,898 | 247,523 | 170,260 |
Operating expenses: | ||||
Research and development | 85,677 | 64,472 | 170,567 | 122,133 |
Sales and marketing | 127,770 | 112,754 | 256,394 | 219,456 |
General and administrative | 36,343 | 29,979 | 71,698 | 57,460 |
Restructuring and other related charges | 943 | 0 | 34,325 | 0 |
Total operating expenses | 250,733 | 207,205 | 532,984 | 399,049 |
Operating loss | (119,368) | (117,307) | (285,461) | (228,789) |
Other income, net | 17,610 | 1,186 | 32,795 | 370 |
Loss before income taxes | (101,758) | (116,121) | (252,666) | (228,419) |
Provision for income taxes | 1,667 | 1,510 | 3,314 | 2,199 |
Net loss | $ (103,425) | $ (117,631) | $ (255,980) | $ (230,618) |
Net loss per share, basic | $ (0.35) | $ (0.42) | $ (0.87) | $ (0.84) |
Net loss per share, diluted | $ (0.35) | $ (0.42) | $ (0.87) | $ (0.84) |
Weighted-average shares used to compute net loss per share, basic | 297,827,200 | 278,268,980 | 294,862,197 | 275,593,362 |
Weighted-average shares used to compute net loss per share, diluted | 297,827,200 | 278,268,980 | 294,862,197 | 275,593,362 |
Subscription [Member] | ||||
Revenue: | ||||
Total revenue | $ 176,488 | $ 127,018 | $ 337,055 | $ 240,938 |
Cost of revenue: | ||||
Total cost of revenue | 44,188 | 35,608 | 87,093 | 69,211 |
Services [Member] | ||||
Revenue: | ||||
Total revenue | 12,797 | 12,389 | 26,532 | 24,608 |
Cost of revenue: | ||||
Total cost of revenue | $ 13,732 | $ 13,901 | $ 28,971 | $ 26,075 |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Comprehensive Loss (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Statement of Comprehensive Income [Abstract] | ||||
Net Income (Loss) | $ (103,425) | $ (117,631) | $ (255,980) | $ (230,618) |
Other comprehensive loss, net of tax: | ||||
Net unrealized loss on marketable securities | (5,574) | (4,005) | (1,415) | (8,717) |
Net unrealized gain on derivative instruments | 222 | 0 | 1,065 | 0 |
Other comprehensive loss, net of tax | (5,352) | (4,005) | (350) | (8,717) |
Total comprehensive loss | $ (108,777) | $ (121,636) | $ (256,330) | $ (239,335) |
Condensed Consolidated Statem_3
Condensed Consolidated Statements of Stockholders Equity (Unaudited) - USD ($) $ in Thousands | Total | Class A and Class B [Member] | Additional Paid-In Capital [Member] | Accumulated Other Comprehensive Loss [Member] | Accumulated Deficit [Member] |
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 (shares) | 59,185 | ||||
Repurchases of unvested options (shares) | (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) | 7,636,738 | ||||
Vesting of restricted stock units (shares) | 1,311,869 | ||||
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 | ||||
Stock-based compensation | 129,360 | 129,360 | |||
Other comprehensive loss, net of tax | (8,717) | (8,717) | |||
Net Income (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 (shares) | 14,584 | ||||
Repurchases of unvested options (shares) | (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 units (shares) | 873,994 | ||||
Stock-based compensation | 70,464 | 70,464 | |||
Other comprehensive loss, net of tax | (4,005) | (4,005) | |||
Net Income (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 | ||||
Balance at Dec. 31, 2022 | 769,477 | $ 3 | 1,980,335 | (9,456) | (1,201,405) |
Balance (shares) at Dec. 31, 2022 | 289,384,180 | ||||
Repurchases of unvested options (shares) | (30,828) | ||||
Vesting of early exercised options | 1,904 | 1,904 | |||
Issuance of common stock upon exercise of vested options | $ 47,983 | 47,983 | |||
Issuance of common stock upon exercise of vested options (shares) | 7,241,647 | 7,241,647 | |||
Vesting of restricted stock units (shares) | 4,368,636 | ||||
Issuance of common stock under employee stock purchase plan | $ 17,172 | 17,172 | |||
Issuance of common stock under employee stock purchase plan (shares) | 714,586 | ||||
Stock-based compensation | 181,180 | 181,180 | |||
Other comprehensive loss, net of tax | (350) | (350) | |||
Net Income (Loss) | (255,980) | (255,980) | |||
Balance at Jun. 30, 2023 | 761,386 | $ 3 | 2,228,574 | (9,806) | (1,457,385) |
Balance (shares) at Jun. 30, 2023 | 301,678,221 | ||||
Balance at Mar. 31, 2023 | 744,851 | $ 3 | 2,103,262 | (4,454) | (1,353,960) |
Balance (shares) at Mar. 31, 2023 | 295,378,610 | ||||
Vesting of early exercised options | 629 | 629 | |||
Issuance of common stock upon exercise of vested options | 26,714 | 26,714 | |||
Issuance of common stock upon exercise of vested options (shares) | 3,645,882 | ||||
Vesting of restricted stock units (shares) | 2,653,729 | ||||
Stock-based compensation | 97,969 | 97,969 | |||
Other comprehensive loss, net of tax | (5,352) | (5,352) | |||
Net Income (Loss) | (103,425) | (103,425) | |||
Balance at Jun. 30, 2023 | $ 761,386 | $ 3 | $ 2,228,574 | $ (9,806) | $ (1,457,385) |
Balance (shares) at Jun. 30, 2023 | 301,678,221 |
Condensed Consolidated Statem_4
Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2023 | Jun. 30, 2022 | |
CASH FLOWS FROM OPERATING ACTIVITIES | ||
Net Income (Loss) | $ (255,980) | $ (230,618) |
Adjustments to reconcile net loss to cash used in operating activities: | ||
Depreciation and amortization | 6,378 | 3,060 |
Net (accretion) amortization of (discounts) premiums on marketable securities | (19,721) | 236 |
Amortization of debt issuance costs | 1,889 | 1,883 |
Amortization of deferred contract acquisition costs | 21,537 | 17,395 |
Non-cash operating lease costs | 2,184 | 4,475 |
Lease abandonment charges | 15,667 | 0 |
Stock-based compensation, net of amounts capitalized | 171,448 | 126,235 |
Deferred income taxes | 10 | 26 |
Other | 851 | 559 |
Changes in operating assets and liabilities, net of effects of a business combination: | ||
Accounts receivable | (11,293) | (12,462) |
Deferred contract acquisition costs | (23,966) | (22,723) |
Prepaid expenses and other assets | (6,057) | (20,121) |
Accounts payable | (18,720) | 7,452 |
Accrued expenses and other liabilities | 7,552 | 1,756 |
Operating lease liabilities | (3,754) | (4,910) |
Deferred revenue | 5,143 | 39,254 |
Net cash used in operating activities | (106,832) | (88,503) |
CASH FLOWS FROM INVESTING ACTIVITIES | ||
Capitalization of internal-use software costs | (9,886) | (4,765) |
Purchases of marketable securities | (999,764) | (1,167,362) |
Maturities of marketable securities | 975,383 | 370,659 |
Purchases of property and equipment | (1,355) | (2,071) |
Cash paid for a business combination, net of cash acquired | (45,802) | 0 |
Net cash used in investing activities | (81,424) | (803,539) |
CASH FLOWS FROM FINANCING ACTIVITIES | ||
Proceeds from issuance of common stock upon exercise of vested options | 48,272 | 24,383 |
Proceeds from issuance of common stock upon early exercise of unvested options | 0 | 416 |
Repurchases of unvested options | (223) | (695) |
Payments of debt issuance costs for convertible senior notes | 0 | (786) |
Proceeds from issuance of common stock under employee stock purchase plan | 17,172 | 22,485 |
Net cash provided by financing activities | 65,221 | 45,803 |
Effect of exchange rate changes on cash, cash equivalents, and restricted cash | (103) | (26) |
Net decrease in cash, cash equivalents, and restricted cash | (123,138) | (846,265) |
Cash, cash equivalents, and restricted cash at beginning of period | 435,781 | 1,376,682 |
Cash, cash equivalents, and restricted cash at end of period | 312,643 | 530,417 |
Reconciliation of cash, cash equivalents, and restricted cash within the consolidated balance sheets to the amounts shown above: | ||
Cash and cash equivalents | 312,643 | 529,667 |
Restricted cash included in other assets, current | 0 | 750 |
Total cash, cash equivalents, and restricted cash | 312,643 | 530,417 |
Cash paid for: | ||
Income taxes | 3,979 | 2,225 |
Non-cash investing and financing activities: | ||
Stock-based compensation capitalized as internal-use software costs | 9,732 | 3,125 |
Vesting of early exercised stock options | $ 1,904 | $ 8,794 |
Pay vs Performance Disclosure
Pay vs Performance Disclosure - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Pay vs Performance Disclosure | ||||
Net Income (Loss) | $ (103,425) | $ (117,631) | $ (255,980) | $ (230,618) |
Insider Trading Arrangements
Insider Trading Arrangements | 3 Months Ended |
Jun. 30, 2023 | |
Trading Arrangements, by Individual | |
Rule 10b5-1 Arrangement Adopted | false |
Non-Rule 10b5-1 Arrangement Adopted | false |
Rule 10b5-1 Arrangement Terminated | false |
Non-Rule 10b5-1 Arrangement Terminated | false |
Organization and Description of
Organization and Description of Business | 6 Months Ended |
Jun. 30, 2023 | |
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, 2023 | |
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, 2022, as filed with the SEC on February 28, 2023 (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, 2023 and the results of operations and cash flows for the three and six months ended June 30, 2023 and 2022. The results of operations for the three and six months ended June 30, 2023 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 in the prior year condensed consolidated financial statements have been reclassified to conform to the presentation of the current year consolidated financial statements. These reclassifications had no effect on consolidated net loss, stockholders’ 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 acquired intangible assets, 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 global macroeconomic conditions, 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. Business Combinations When the Company acquires a business, the purchase consideration is allocated to the tangible and intangible assets acquired and liabilities assumed at their estimated acquisition date fair values. The excess of the purchase consideration over the fair value of assets acquired and liabilities assumed, if any, is recorded as goodwill. Determining the fair value of intangible assets requires the use of estimates including, but not limited to, time and resources required to recreate the assets acquired. The Company’s estimates of fair value are based upon assumptions believed to be reasonable, but which are inherently uncertain and unpredictable and, as a result, actual results may differ from estimates. During the measurement period, which may be up to one year from the acquisition date, the Company may record adjustments to the fair values of assets acquired and liabilities assumed, with the corresponding offset to goodwill. Upon the conclusion of the measurement period, any subsequent adjustments are recorded in the condensed consolidated statement of operations. I mpairment of Goodwill, Intangible Assets, and Other Long-Lived Assets The Company evaluates the recoverability of long-lived assets, including property and equipment, operating lease right-of-use assets, and acquired intangible assets, for possible impairment whenever events or circumstances indicate that the carrying amount of such assets may not be fully recoverable. Recoverability of these assets is measured by a comparison of the carrying amounts to the undiscounted future cash flows the assets are expected to generate. If the carrying amount exceeds the undiscounted future cash flows, the carrying amount of such assets is reduced to fair value. There were no impairment charges related to long-lived assets during the three and six months ended June 30, 2023 and 2022. Goodwill is not amortized but rather tested for impairment at least annually or whenever events or changes in circumstances indicate that the carrying value may not be recoverable. Goodwill impairment is recognized when the quantitative assessment results in the carrying value of the reporting unit exceeding its fair value, in which case an impairment charge is recorded to the extent the carrying value exceeds the fair value, limited to the amount of goodwill. There were no goodwill impairment charges during the three and six months ended June 30, 2023 . Recent Accounting Pronouncements Recently Adopted Accounting Pronouncements Acquired Contract Assets and Contract Liabilities : In October 2021, the FASB issued ASU No. 2021-08, Business Combinations (Topic 805): Accounting for Contract Assets and Contract Liabilities from Contracts with Customers , which requires contract assets and contract liabilities acquired in a business combination to be recognized and measured by the acquirer on the acquisition date in accordance with ASC 606, Revenue from Contracts with Customers , as if it had originated the contracts. This guidance is effective for the Company for the year beginning January 1, 2023. The Company adopted this guidance as of January 1, 2023 on a prospective basis and the adoption did not have a material impact on its condensed consolidated financial statements. |
Marketable Securities
Marketable Securities | 6 Months Ended |
Jun. 30, 2023 | |
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, 2023 Amortized Cost Unrealized Gains Unrealized Losses Fair Value U.S. treasury securities $ 924,413 $ 28 $ ( 4,706 ) $ 919,735 U.S. agency obligations 412,422 - ( 3,891 ) 408,531 Corporate notes and bonds 170,102 1 ( 1,693 ) 168,410 Commercial paper 38,290 1 ( 55 ) 38,236 Total marketable securities $ 1,545,227 $ 30 $ ( 10,345 ) $ 1,534,912 December 31, 2022 Amortized Cost Unrealized Gains Unrealized Losses Fair Value U.S. treasury securities $ 1,033,587 $ 68 $ ( 4,072 ) $ 1,029,583 U.S. agency obligations 273,804 17 ( 3,570 ) 270,251 Corporate notes and bonds 160,208 9 ( 2,375 ) 157,842 Commercial paper 33,526 - ( 158 ) 33,368 Total marketable securities $ 1,501,125 $ 94 $ ( 10,175 ) $ 1,491,044 The following tables summarize the fair values and unrealized losses of the Company’s marketable securities, classified by the length of time that the securities have been in a continuous unrealized loss position (in thousands): June 30, 2023 Less than 12 Months 12 Months or Greater Total Fair Value Unrealized Losses Fair Value Unrealized Losses Fair Value Unrealized Losses U.S. treasury securities $ 786,455 $ ( 3,844 ) $ 51,480 $ ( 862 ) $ 837,935 $ ( 4,706 ) U.S. agency obligations 353,803 ( 2,960 ) 52,728 ( 931 ) 406,531 ( 3,891 ) Corporate notes and bonds 108,503 ( 1,174 ) 58,505 ( 519 ) 167,008 ( 1,693 ) Commercial paper 20,286 ( 55 ) - - 20,286 ( 55 ) Total $ 1,269,047 $ ( 8,033 ) $ 162,713 $ ( 2,312 ) $ 1,431,760 $ ( 10,345 ) December 31, 2022 Less than 12 Months 12 Months or Greater Total Fair Value Unrealized Losses Fair Value Unrealized Losses Fair Value Unrealized Losses U.S. treasury securities $ 566,093 $ ( 2,892 ) $ 167,817 $ ( 1,180 ) $ 733,910 $ ( 4,072 ) U.S. agency obligations 201,846 ( 2,014 ) 51,595 ( 1,556 ) 253,441 ( 3,570 ) Corporate notes and bonds 90,287 ( 1,259 ) 65,579 ( 1,116 ) 155,866 ( 2,375 ) Commercial paper 33,368 ( 158 ) - - 33,368 ( 158 ) Total $ 891,594 $ ( 6,323 ) $ 284,991 $ ( 3,852 ) $ 1,176,585 $ ( 10,175 ) 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, 2023 and 2022. Realized gains and losses were not material for the three and six months ended June 30, 2023 and 2022. The following table summarizes the contractual maturities of the Company’s marketable securities (in thousands): June 30, 2023 Amortized Cost Fair Value Due within one year $ 1,121,569 $ 1,115,659 Due after one year through five years 423,658 419,253 Total $ 1,545,227 $ 1,534,912 |
Fair Value of Financial Instrum
Fair Value of Financial Instruments | 6 Months Ended |
Jun. 30, 2023 | |
Fair Value Disclosures [Abstract] | |
Fair Value of Financial Instruments | 4. Fair Value of Financial Instruments The following tables summarize the Company’s financial assets and liabilities that are measured at fair value on a recurring basis (in thousands): June 30, 2023 Level 1 Level 2 Total Assets: Cash equivalents: Money market funds $ 246,569 $ - $ 246,569 Commercial paper - 4,964 4,964 Marketable securities: U.S. treasury securities - 919,735 919,735 U.S. agency obligations - 408,531 408,531 Corporate notes and bonds - 168,410 168,410 Commercial paper - 38,236 38,236 Derivative instruments: Foreign currency forward contracts - 2,032 2,032 Total assets $ 246,569 $ 1,541,908 $ 1,788,477 Liabilities: Derivative instruments: Foreign currency forward contracts $ - $ 605 $ 605 Total liabilities $ - $ 605 $ 605 December 31, 2022 Level 1 Level 2 Total Assets: Cash equivalents: Money market funds $ 367,699 $ - $ 367,699 U.S. treasury securities - 12,971 12,971 U.S. agency obligations - 2,000 2,000 Marketable securities: U.S. treasury securities - 1,029,583 1,029,583 U.S. agency obligations - 270,251 270,251 Corporate notes and bonds - 157,842 157,842 Commercial paper - 33,368 33,368 Derivative instruments: Foreign currency forward contracts - 672 672 Total assets $ 367,699 $ 1,506,687 $ 1,874,386 Liabilities: Derivative instruments: Foreign currency forward contracts $ - $ 19 $ 19 Total liabilities $ - $ 19 $ 19 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, U.S. agency obligations, corporate notes and bonds, commercial paper, and foreign currency forward contracts 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 instruments between valuation levels during the three and six months ended June 30, 2023 and 2022. As of June 30, 2023 and December 31, 2022, the total estimated fair value of the Company’ s 0% convertible senior notes due 2027 was $ 913.2 million and $ 837.3 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 8 for further information on the Company ’ s convertible senior notes. |
Derivative Instruments and Hedg
Derivative Instruments and Hedging | 6 Months Ended |
Jun. 30, 2023 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivative Instruments and Hedging | 5. Derivative Instruments and Hedging In December 2022, the Company began entering into foreign currency forward contracts to manage its exposure to certain foreign currency exchange risks. Derivative instruments that hedge the exposure to variability in expected future cash flows are designated as cash flow hedges. The Company records changes in the fair value of these derivatives as a component of accumulated other comprehensive income (loss) (“AOCI”) and subsequently reclassifies the related gains or losses into cost of revenue or operating expense in the same period, or periods, during which the hedged transaction affects earnings. Derivative instruments that hedge the exposure to variability in the fair value of assets or liabilities are not designated as hedges for financial reporting purposes. The Company records changes in the fair value of these derivatives in other income (expense), net in the condensed consolidated statements of operations. The Company’ s derivative instruments generally have maturities of 13 months or less. The Company does not use derivative instruments for trading or speculative purposes. The following table summarizes the notional amounts of the Company ’s derivative instruments (in thousands): June 30, 2023 December 31, 2022 Foreign currency forward contracts designated as hedging instruments $ 60,517 $ 96,097 Foreign currency forward contracts not designated as hedging instruments 86,645 - Total derivative instruments $ 147,162 $ 96,097 The Company has master netting agreements with each of its counterparties, which permit net settlement of multiple, separate derivative contracts with a single payment. The Company does not have collateral requirements with any of its counterparties. Although the Company is allowed to present the fair value of derivative instruments on a net basis according to master netting arrangements, the Company has elected to present its derivative instruments on a gross basis in the condensed consolidated financial statements. The following table summarizes the fair value of the Company ’s derivative instruments on the condensed consolidated balance sheets (in thousands): Balance Sheet Location June 30, 2023 December 31, 2022 Derivative Assets: Foreign currency forward contracts designated as hedging instruments Prepaid expenses and other current assets $ 819 $ 672 Foreign currency forward contracts not designated as hedging instruments Prepaid expenses and other current assets 1,213 - Total derivative assets $ 2,032 $ 672 Derivative Liabilities: Foreign currency forward contracts designated as hedging instruments Accrued expenses and other liabilities $ 279 $ 19 Foreign currency forward contracts not designated as hedging instruments Accrued expenses and other liabilities 326 - Total derivative liabilities $ 605 $ 19 The following table presents the activity of foreign currency forward contracts designated as hedging instruments and the impact of these derivatives on AOCI (in thousands): Three Months Ended June 30, 2023 Six Months Ended June 30, 2023 Beginning balance $ 1,024 $ 653 Net gain recognized in other comprehensive income 222 1,065 Net gain reclassified from AOCI to earnings ( 706 ) ( 1,178 ) Ending balance $ 540 $ 540 As of June 30, 2023, net unrealized gains included in the balance of accumulated other comprehensive loss related to foreign currency forward contracts designated as hedging instruments was $ 0.5 million , all of which the Company expects to reclassify from accumulated other comprehensive loss into earnings over the next 12 months. The following table summarizes the effect of foreign currency forward contracts on the condensed consolidated statements of operations (in thousands): Three Months Ended June 30, 2023 Six Months Ended June 30, 2023 Derivatives Designated as Hedging Instruments Derivatives Not Designated as Hedging Instruments Derivatives Designated as Hedging Instruments Derivatives Not Designated as Hedging Instruments Cost of revenue - subscription $ 89 $ - $ 133 $ - Cost of revenue - services 60 - 108 - Research and development 140 - 199 - Sales and marketing 318 - 581 - General and administrative 99 - 157 - Other income, net - 11 - 87 Total gains recognized in earnings $ 706 $ 11 $ 1,178 $ 87 |
Balance Sheet Components
Balance Sheet Components | 6 Months Ended |
Jun. 30, 2023 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Balance Sheet Components | 6. 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, 2023 December 31, 2022 Computers, equipment, and software $ 9,862 $ 8,794 Furniture and fixtures 903 977 Leasehold improvements 380 458 Capitalized internal-use software costs 32,725 25,639 Construction in progress 17,935 5,404 Property and equipment, at cost $ 61,805 $ 41,272 Less: Accumulated depreciation and amortization ( 18,206 ) ( 12,183 ) Property and equipment, net $ 43,599 $ 29,089 Depreciation and amortization expense was $ 3.2 million and $ 1.8 million for the three months ended June 30, 2023 and 2022, respectively, and $ 6.2 million and $ 3.1 million for the six months ended June 30, 2023 and 2022, respectively. Accrued Expenses and Other Liabilities Accrued expenses and other liabilities consisted of the following (in thousands): June 30, 2023 December 31, 2022 Accrued compensation and benefits $ 47,353 $ 27,799 Accrued expenses 16,266 16,798 Accrued payroll taxes 12,314 10,349 Employee contributions under employee stock purchase plan 11,233 15,283 Accrued commissions 9,354 18,058 Other liabilities 15,975 17,044 Total accrued expenses and other liabilities $ 112,495 $ 105,331 |
Business Combination, Intangibl
Business Combination, Intangible Assets, and Goodwill | 6 Months Ended |
Jun. 30, 2023 | |
Business Combination, Intangible Assets, and Goodwill [ Abstract] | |
Business Combination, Intangible Assets, and Goodwill | 7. Business Combination, Goodwill, and Intangible Assets Business Combination In January 2023, the Company acquired all outstanding shares of immerok GmbH (“Immerok”), an Apache Flink stream processing managed services company, for purchase consideration of $ 54.9 million in cash. The Company acquired Immerok primarily for its talent and developed technology. The Company also entered into holdback agreements with certain employees of Immerok, pursuant to which the Company will pay up to an aggregate of $ 52.3 million in cash. The vesting and payout of the holdback is subject to continued employment and achievement of certain milestones over three years, and is recorded as post-combination compensation expense within operating expenses over the requisite service period for accounting purposes. During the three and six months ended June 30, 2023 , the Company recognized compensation expense of $ 4.3 million and $ 8.7 million, respectively, related to the holdback agreements. In allocating the purchase consideration, the Company preliminarily recorded $ 9.1 million of cash acquired, $ 2.6 million as a developed technology intangible asset, to be amortized on a straight-line basis over an estimated useful life of five years , and $ 43.5 million of goodwill. The goodwill is primarily attributed to the assembled workforce and expected synergies arising from the acquisition, and is not deductible for income tax purposes. The Company may continue to adjust the preliminary purchase price allocation after obtaining more information primarily relating to deferred income taxes and residual goodwill through the measurement period, no more than one year from the date of acquisition. Transaction costs associated with the acquisition incurred during the three and six months ended June 30, 2023 were not material and were recorded as general and administrative expenses in the condensed consolidated statements of operations. The results of operations of Immerok included in the Company’s condensed consolidated financial statements since the date of acquisition were not material. Pro forma results of operations have not been presented because they were not material to the condensed consolidated results of operations. Goodwill Goodwill as of June 30, 2023 was $ 43.5 million. No goodwill was recorded as of December 31, 2022. Intangible Assets, Net Intangible assets, net consisted of the following (in thousands): June 30, 2023 Gross Accumulated Amortization Net Developed technology $ 2,556 $ ( 240 ) $ 2,316 Total $ 2,556 $ ( 240 ) $ 2,316 Amortization expense was not material for the three and six months ended June 30, 2023. As of June 30, 2023, future amortization expense is expected to be as follows (in thousands): Year Ending December 31, Amount Remainder of 2023 $ 258 2024 513 2025 511 2026 511 2027 511 Thereafter 12 Total $ 2,316 |
Convertible Senior Notes
Convertible Senior Notes | 6 Months Ended |
Jun. 30, 2023 | |
Convertible Debt [Abstract] | |
Convertible Senior Notes | 8. 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, is 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). No special interest has been paid in connection with the 2027 Notes to date. 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, 2023, the conditions allowing holders of the 2027 Notes to convert have not been met. The 2027 Notes were therefore not convertible and were classified as long-term debt on the Company’s condensed consolidated balance sheets as of June 30, 2023 and December 31, 2022. 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 (income) expense, net on the condensed consolidated statements of operations over the contractual term of the 2027 Notes at an effective interest rate of 0.35 %. Amortization of debt issuance costs was $ 1.0 million and $ 0.9 million for the three months ended June 30, 2023 and 2022 , respectively, and $ 1.9 million for both the six months ended June 30, 2023 and 2022. The net carrying amount of the 2027 Notes was as follows (in thousands): June 30, 2023 December 31, 2022 Principal $ 1,100,000 $ 1,100,000 Unamortized debt issuance costs ( 13,611 ) ( 15,500 ) Net carrying amount $ 1,086,389 $ 1,084,500 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, 2023 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | 9. 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 five 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 and minimum lease payments 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, 2023 and December 31, 2022. In addition, the Company subleased certain floors of its unoccupied office space that expired at various dates in 2022. Sublease income was recorded as a reduction of lease expense and was no t material for the three and six months ended June 30, 2022. During the six months ended June 30, 2023 , the Company ceased use of certain leased office space. The Company accelerated amortization of the related operating lease right-of-use assets and recognized $ 15.7 million of lease abandonment charges within restructuring and other related charges in the condensed consolidated statements of operations. See Note 12 for further information on the Company ’s restructuring actions. Purchase Obligations During the six months ended June 30, 2023 , the Company entered into an amended third-party infrastructure agreement that includes a non-cancelable commitment of $ 140.0 million payable over the next five years through June 2028. There were no other material changes to the Company’s p urchase 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, 2023 and December 31, 2022, 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, 2023 and December 31, 2022, 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, 2023 and 2022 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, 2023 and December 31, 2022 , 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, 2023 | |
Revenue from Contract with Customer [Abstract] | |
Revenue | 10. 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, 2023 2022 2023 2022 Geographic markets: United States $ 113,910 60 % $ 87,556 63 % $ 217,852 60 % $ 166,548 63 % International 75,375 40 % 51,851 37 % 145,735 40 % 98,998 37 % Total revenue $ 189,285 100 % $ 139,407 100 % $ 363,587 100 % $ 265,546 100 % Subscriptions and services: Confluent Platform - License $ 20,544 11 % $ 19,568 14 % $ 39,532 11 % $ 38,515 15 % Confluent Platform - PCS (1) 72,366 38 % 60,470 43 % 140,307 39 % 116,530 44 % Confluent Cloud 83,578 44 % 46,980 34 % 157,216 43 % 85,893 32 % Subscription 176,488 93 % 127,018 91 % 337,055 93 % 240,938 91 % Services 12,797 7 % 12,389 9 % 26,532 7 % 24,608 9 % Total revenue $ 189,285 100 % $ 139,407 100 % $ 363,587 100 % $ 265,546 100 % (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, 2023, the Company’s RPO was $ 791.4 million , approximately 65 % 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, 2023 and December 31, 2022 was $ 328.0 million and $ 322.8 million , respectively. For the six months ended June 30, 2023 and 2022 , revenue recognized from deferred revenue at the beginning of the year was $ 199.9 million and $ 152.7 million, respectively. Accounts Receivable, Net The unbilled receivables balance included in accounts receivable, net on the condensed consolidated balance sheets was $ 54.5 million and $ 51.3 million as of June 30, 2023 and December 31, 2022, respectively. The Company’s allowance for expected credit losses was no t material as of June 30, 2023 and December 31, 2022 . 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, 2023 and 2022. Deferred Contract Acquisition Costs The following table summarizes the activity of deferred contract acquisition costs (in thousands): Six Months Ended June 30, 2023 2022 Beginning balance $ 104,284 $ 78,824 Capitalization of contract acquisition costs 23,966 22,723 Amortization of deferred contract acquisition costs ( 21,537 ) ( 17,395 ) Ending balance $ 106,713 $ 84,152 |
Stockholders' Equity
Stockholders' Equity | 6 Months Ended |
Jun. 30, 2023 | |
Stockholders' Equity Note [Abstract] | |
Stockholders' Equity | 11. 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. Common Stock Reserved for Future Issuance The Company has reserved the following shares of common stock for future issuance: June 30, 2023 December 31, 2022 2014 Stock Plan: Options outstanding 36,444,774 45,276,579 Restricted stock units outstanding 1,479,976 2,224,138 2021 Equity Incentive Plan: Options outstanding 22,500 22,500 Restricted stock units outstanding 23,828,489 17,729,318 Remaining shares available for future issuance 39,666,627 33,300,077 2021 Employee Stock Purchase Plan 8,673,168 6,493,913 Total 110,115,534 105,046,525 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 consists of two six-month purchase periods. The initial offering period began on June 24, 2021 and ended on August 15, 2022. The initial offering consisted 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 Class A common stock on the offering date or (2) the fair market value of the Company’s Class A common stock on the purchase date. The 2021 ESPP offers a rollover feature pursuant to which, if the fair market value of a share of Class A common stock on the first trading day of a new purchase period is lower than the fair market value on the offering date, that offering period will terminate and participants will be automatically enrolled in a new 12-month offering period. In February 2023, an ESPP rollover occurred because the Company’s closing stock price on the first trade date of the new purchase period was below the closing stock price on the offering date. This triggered a new 12-month offering period and res ulted in immaterial incremental stock-based compensation expense to be recognized over the remaining requisite service period. 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, 2023 33,300,077 45,299,079 $ 7.76 6.99 $ 657,307 Increase in authorized shares 14,469,209 - $ - Stock options exercised - ( 7,241,647 ) $ 6.63 Stock options forfeited or expired 1,590,158 ( 1,590,158 ) $ 12.26 Repurchases of unvested common stock 30,828 - $ - RSUs granted ( 12,019,143 ) - $ - RSUs forfeited or cancelled 2,295,498 - $ - Balance as of June 30, 2023 39,666,627 36,467,274 $ 7.78 6.58 $ 1,004,232 Vested as of June 30, 2023 25,354,766 $ 6.44 6.33 $ 732,274 Vested and expected to vest as of June 30, 2023 36,467,274 $ 7.78 6.58 $ 1,004,232 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 $ 144.7 million and $ 284.4 million for the six months ended June 30, 2023 and 2022 , respectively. No options were granted during the six months ended June 30, 2023 and 2022. 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, 2023 and December 31, 2022, there were 284,550 and 578,119 shares that had been early exercised and were subject to repurchase, respectively. The proceeds related to early exercised options are recorded as liabilities within accrued expenses and other liabilities and other liabilities, non-current on the condensed consolidated balance sheets until the options vest, at which point they are reclassified to equity. As of June 30, 2023 and December 31, 2022, the liabilities for early exercised options subject to repurchase were $ 2.3 million and $ 4.0 million , respectively. 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. RSUs 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, 2023 19,953,456 $ 33.18 RSUs granted 12,019,143 $ 23.96 RSUs vested ( 4,368,636 ) $ 30.51 RSUs forfeited or cancelled ( 2,295,498 ) $ 33.52 Unvested balance as of June 30, 2023 25,308,465 $ 29.23 Stock-Based Compensation Expense Total stock-based compensation expense was as follows (in thousands): Three Months Ended June 30, Six Months Ended June 30, 2023 2022 2023 2022 Cost of revenue - subscription $ 6,914 $ 6,018 $ 13,242 $ 11,331 Cost of revenue - services 3,125 2,328 5,902 4,190 Research and development 35,420 25,337 65,435 45,422 Sales and marketing 32,889 24,746 61,376 45,808 General and administrative 13,811 10,437 25,493 19,484 Stock-based compensation, net of amounts capitalized $ 92,159 $ 68,866 $ 171,448 $ 126,235 Capitalized stock-based compensation 5,810 1,598 9,732 3,125 Total stock-based compensation $ 97,969 $ 70,464 $ 181,180 $ 129,360 As of June 30, 2023, there was $ 779.7 million of unrecognized stock-based compensation expense, which is expected to be recognized over a weighted-average period of 2.3 years. |
Restructuring and Other Related
Restructuring and Other Related Charges | 6 Months Ended |
Jun. 30, 2023 | |
Restructuring and Related Activities [Abstract] | |
Restructuring and Other Related Charges | 12. Restructuring and Other Related Charges In January 2023, the Company approved restructuring actions (the “Restructuring Plan”) to adjust its cost structure and real estate footprint. The Restructuring Plan includes a reduction of approximately 8 % of the Company’s global workforce as of December 31, 2022. During the three and six months ended June 30, 2023, the Company recorded restructuring and other related charges of $ 0.9 million and $ 34.3 million, respectively, consisting of $ 0.9 million and $ 18.7 million related to employee transition and severance payments, employee benefits, and related facilitation costs, respectively, and nil and $ 15.7 million of lease abandonment charges, respectively. The Restructuring Plan was substantially completed as of June 30, 2023. The following table summarizes the Company’s liability for restructuring-related employee termination benefits included in accrued expenses and other current liabilities on the condensed consolidated balance sheets (in thousands): Employee Termination Benefits Balance as of January 1, 2023 $ - Restructuring charges 18,658 Cash payments ( 16,756 ) Balance as of June 30, 2023 $ 1,902 |
Income Taxes
Income Taxes | 6 Months Ended |
Jun. 30, 2023 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | 13. 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 $ 1.7 million and $ 1.5 million for the three months ended June 30, 2023 and 2022, respectively, and $ 3.3 million and $ 2.2 million for the six months ended June 30, 2023 and 2022, respectively, primarily due to foreign and state income taxes. The Company provides a valuation allowance on its U.S. and U.K. deferred tax assets. |
Net Loss Per Share
Net Loss Per Share | 6 Months Ended |
Jun. 30, 2023 | |
Earnings Per Share [Abstract] | |
Net Loss Per Share | 14. 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, 2023 2022 2023 2022 Class A and Class B Class A and Class B Numerator: Net loss $ ( 103,425 ) $ ( 117,631 ) $ ( 255,980 ) $ ( 230,618 ) Denominator: Weighted-average shares used to compute net loss per share, basic and diluted 297,827,200 278,268,980 294,862,197 275,593,362 Net loss per share, basic and diluted $ ( 0.35 ) $ ( 0.42 ) $ ( 0.87 ) $ ( 0.84 ) 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, 2023 June 30, 2022 Stock options 36,467,274 51,921,878 Unvested early exercised stock options 284,550 1,079,122 RSUs 25,308,465 17,167,218 ESPP 1,553,885 758,398 Shares issuable upon conversion of the 2027 Notes 10,992,960 10,992,960 Total 74,607,134 81,919,576 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, 2023 | |
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, 2022, as filed with the SEC on February 28, 2023 (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, 2023 and the results of operations and cash flows for the three and six months ended June 30, 2023 and 2022. The results of operations for the three and six months ended June 30, 2023 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 | Reclassifications Certain amounts in the prior year condensed consolidated financial statements have been reclassified to conform to the presentation of the current year consolidated financial statements. These reclassifications had no effect on consolidated net loss, stockholders’ 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 acquired intangible assets, 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 global macroeconomic conditions, 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. |
Business Combinations | Business Combinations When the Company acquires a business, the purchase consideration is allocated to the tangible and intangible assets acquired and liabilities assumed at their estimated acquisition date fair values. The excess of the purchase consideration over the fair value of assets acquired and liabilities assumed, if any, is recorded as goodwill. Determining the fair value of intangible assets requires the use of estimates including, but not limited to, time and resources required to recreate the assets acquired. The Company’s estimates of fair value are based upon assumptions believed to be reasonable, but which are inherently uncertain and unpredictable and, as a result, actual results may differ from estimates. During the measurement period, which may be up to one year from the acquisition date, the Company may record adjustments to the fair values of assets acquired and liabilities assumed, with the corresponding offset to goodwill. Upon the conclusion of the measurement period, any subsequent adjustments are recorded in the condensed consolidated statement of operations. |
Impairment of Goodwill, Intangible Assets, and Other Long-Lived Assets | I mpairment of Goodwill, Intangible Assets, and Other Long-Lived Assets The Company evaluates the recoverability of long-lived assets, including property and equipment, operating lease right-of-use assets, and acquired intangible assets, for possible impairment whenever events or circumstances indicate that the carrying amount of such assets may not be fully recoverable. Recoverability of these assets is measured by a comparison of the carrying amounts to the undiscounted future cash flows the assets are expected to generate. If the carrying amount exceeds the undiscounted future cash flows, the carrying amount of such assets is reduced to fair value. There were no impairment charges related to long-lived assets during the three and six months ended June 30, 2023 and 2022. Goodwill is not amortized but rather tested for impairment at least annually or whenever events or changes in circumstances indicate that the carrying value may not be recoverable. Goodwill impairment is recognized when the quantitative assessment results in the carrying value of the reporting unit exceeding its fair value, in which case an impairment charge is recorded to the extent the carrying value exceeds the fair value, limited to the amount of goodwill. There were no goodwill impairment charges during the three and six months ended June 30, 2023 . |
Recent Accounting Pronouncements | Recent Accounting Pronouncements Recently Adopted Accounting Pronouncements Acquired Contract Assets and Contract Liabilities : In October 2021, the FASB issued ASU No. 2021-08, Business Combinations (Topic 805): Accounting for Contract Assets and Contract Liabilities from Contracts with Customers , which requires contract assets and contract liabilities acquired in a business combination to be recognized and measured by the acquirer on the acquisition date in accordance with ASC 606, Revenue from Contracts with Customers , as if it had originated the contracts. This guidance is effective for the Company for the year beginning January 1, 2023. The Company adopted this guidance as of January 1, 2023 on a prospective basis and the adoption did not have a material impact on its condensed consolidated financial statements. |
Marketable Securities (Tables)
Marketable Securities (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
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, 2023 Amortized Cost Unrealized Gains Unrealized Losses Fair Value U.S. treasury securities $ 924,413 $ 28 $ ( 4,706 ) $ 919,735 U.S. agency obligations 412,422 - ( 3,891 ) 408,531 Corporate notes and bonds 170,102 1 ( 1,693 ) 168,410 Commercial paper 38,290 1 ( 55 ) 38,236 Total marketable securities $ 1,545,227 $ 30 $ ( 10,345 ) $ 1,534,912 December 31, 2022 Amortized Cost Unrealized Gains Unrealized Losses Fair Value U.S. treasury securities $ 1,033,587 $ 68 $ ( 4,072 ) $ 1,029,583 U.S. agency obligations 273,804 17 ( 3,570 ) 270,251 Corporate notes and bonds 160,208 9 ( 2,375 ) 157,842 Commercial paper 33,526 - ( 158 ) 33,368 Total marketable securities $ 1,501,125 $ 94 $ ( 10,175 ) $ 1,491,044 |
Schedule of Fair Values and Unrealized Losses on Marketable Securities | The following tables summarize the fair values and unrealized losses of the Company’s marketable securities, classified by the length of time that the securities have been in a continuous unrealized loss position (in thousands): June 30, 2023 Less than 12 Months 12 Months or Greater Total Fair Value Unrealized Losses Fair Value Unrealized Losses Fair Value Unrealized Losses U.S. treasury securities $ 786,455 $ ( 3,844 ) $ 51,480 $ ( 862 ) $ 837,935 $ ( 4,706 ) U.S. agency obligations 353,803 ( 2,960 ) 52,728 ( 931 ) 406,531 ( 3,891 ) Corporate notes and bonds 108,503 ( 1,174 ) 58,505 ( 519 ) 167,008 ( 1,693 ) Commercial paper 20,286 ( 55 ) - - 20,286 ( 55 ) Total $ 1,269,047 $ ( 8,033 ) $ 162,713 $ ( 2,312 ) $ 1,431,760 $ ( 10,345 ) December 31, 2022 Less than 12 Months 12 Months or Greater Total Fair Value Unrealized Losses Fair Value Unrealized Losses Fair Value Unrealized Losses U.S. treasury securities $ 566,093 $ ( 2,892 ) $ 167,817 $ ( 1,180 ) $ 733,910 $ ( 4,072 ) U.S. agency obligations 201,846 ( 2,014 ) 51,595 ( 1,556 ) 253,441 ( 3,570 ) Corporate notes and bonds 90,287 ( 1,259 ) 65,579 ( 1,116 ) 155,866 ( 2,375 ) Commercial paper 33,368 ( 158 ) - - 33,368 ( 158 ) Total $ 891,594 $ ( 6,323 ) $ 284,991 $ ( 3,852 ) $ 1,176,585 $ ( 10,175 ) |
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, 2023 Amortized Cost Fair Value Due within one year $ 1,121,569 $ 1,115,659 Due after one year through five years 423,658 419,253 Total $ 1,545,227 $ 1,534,912 |
Fair Value of Financial Instr_2
Fair Value of Financial Instruments (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Fair Value Disclosures [Abstract] | |
Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis | The following tables summarize the Company’s financial assets and liabilities that are measured at fair value on a recurring basis (in thousands): June 30, 2023 Level 1 Level 2 Total Assets: Cash equivalents: Money market funds $ 246,569 $ - $ 246,569 Commercial paper - 4,964 4,964 Marketable securities: U.S. treasury securities - 919,735 919,735 U.S. agency obligations - 408,531 408,531 Corporate notes and bonds - 168,410 168,410 Commercial paper - 38,236 38,236 Derivative instruments: Foreign currency forward contracts - 2,032 2,032 Total assets $ 246,569 $ 1,541,908 $ 1,788,477 Liabilities: Derivative instruments: Foreign currency forward contracts $ - $ 605 $ 605 Total liabilities $ - $ 605 $ 605 December 31, 2022 Level 1 Level 2 Total Assets: Cash equivalents: Money market funds $ 367,699 $ - $ 367,699 U.S. treasury securities - 12,971 12,971 U.S. agency obligations - 2,000 2,000 Marketable securities: U.S. treasury securities - 1,029,583 1,029,583 U.S. agency obligations - 270,251 270,251 Corporate notes and bonds - 157,842 157,842 Commercial paper - 33,368 33,368 Derivative instruments: Foreign currency forward contracts - 672 672 Total assets $ 367,699 $ 1,506,687 $ 1,874,386 Liabilities: Derivative instruments: Foreign currency forward contracts $ - $ 19 $ 19 Total liabilities $ - $ 19 $ 19 |
Derivative Instruments and He_2
Derivative Instruments and Hedging (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Schedule of Notional Amounts of the Company's Derivative Instruments | The following table summarizes the notional amounts of the Company ’s derivative instruments (in thousands): June 30, 2023 December 31, 2022 Foreign currency forward contracts designated as hedging instruments $ 60,517 $ 96,097 Foreign currency forward contracts not designated as hedging instruments 86,645 - Total derivative instruments $ 147,162 $ 96,097 |
Schedule of Derivative Instruments in Statement of Financial Position, Fair Value | The following table summarizes the fair value of the Company ’s derivative instruments on the condensed consolidated balance sheets (in thousands): Balance Sheet Location June 30, 2023 December 31, 2022 Derivative Assets: Foreign currency forward contracts designated as hedging instruments Prepaid expenses and other current assets $ 819 $ 672 Foreign currency forward contracts not designated as hedging instruments Prepaid expenses and other current assets 1,213 - Total derivative assets $ 2,032 $ 672 Derivative Liabilities: Foreign currency forward contracts designated as hedging instruments Accrued expenses and other liabilities $ 279 $ 19 Foreign currency forward contracts not designated as hedging instruments Accrued expenses and other liabilities 326 - Total derivative liabilities $ 605 $ 19 |
Schedule of Cash Flow Hedges Included in Accumulated Other Comprehensive Income (Loss) | The following table presents the activity of foreign currency forward contracts designated as hedging instruments and the impact of these derivatives on AOCI (in thousands): Three Months Ended June 30, 2023 Six Months Ended June 30, 2023 Beginning balance $ 1,024 $ 653 Net gain recognized in other comprehensive income 222 1,065 Net gain reclassified from AOCI to earnings ( 706 ) ( 1,178 ) Ending balance $ 540 $ 540 |
Schedule of foreign currency forward contracts on the condensed consolidated statements of operations | The following table summarizes the effect of foreign currency forward contracts on the condensed consolidated statements of operations (in thousands): Three Months Ended June 30, 2023 Six Months Ended June 30, 2023 Derivatives Designated as Hedging Instruments Derivatives Not Designated as Hedging Instruments Derivatives Designated as Hedging Instruments Derivatives Not Designated as Hedging Instruments Cost of revenue - subscription $ 89 $ - $ 133 $ - Cost of revenue - services 60 - 108 - Research and development 140 - 199 - Sales and marketing 318 - 581 - General and administrative 99 - 157 - Other income, net - 11 - 87 Total gains recognized in earnings $ 706 $ 11 $ 1,178 $ 87 |
Balance Sheet Components (Table
Balance Sheet Components (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
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, 2023 December 31, 2022 Computers, equipment, and software $ 9,862 $ 8,794 Furniture and fixtures 903 977 Leasehold improvements 380 458 Capitalized internal-use software costs 32,725 25,639 Construction in progress 17,935 5,404 Property and equipment, at cost $ 61,805 $ 41,272 Less: Accumulated depreciation and amortization ( 18,206 ) ( 12,183 ) Property and equipment, net $ 43,599 $ 29,089 |
Summary of Accrued Expense and Other Liabilities | Accrued expenses and other liabilities consisted of the following (in thousands): June 30, 2023 December 31, 2022 Accrued compensation and benefits $ 47,353 $ 27,799 Accrued expenses 16,266 16,798 Accrued payroll taxes 12,314 10,349 Employee contributions under employee stock purchase plan 11,233 15,283 Accrued commissions 9,354 18,058 Other liabilities 15,975 17,044 Total accrued expenses and other liabilities $ 112,495 $ 105,331 |
Business Combination, Intangi_2
Business Combination, Intangible Assets, and Goodwill (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Business Combination, Intangible Assets, and Goodwill [ Abstract] | |
Schedule of Intangible Assets, Net | Intangible assets, net consisted of the following (in thousands): June 30, 2023 Gross Accumulated Amortization Net Developed technology $ 2,556 $ ( 240 ) $ 2,316 Total $ 2,556 $ ( 240 ) $ 2,316 |
Schedule of Expected Future Amortization Expense | As of June 30, 2023, future amortization expense is expected to be as follows (in thousands): Year Ending December 31, Amount Remainder of 2023 $ 258 2024 513 2025 511 2026 511 2027 511 Thereafter 12 Total $ 2,316 |
Convertible Senior Notes (Table
Convertible Senior Notes (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
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, 2023 December 31, 2022 Principal $ 1,100,000 $ 1,100,000 Unamortized debt issuance costs ( 13,611 ) ( 15,500 ) Net carrying amount $ 1,086,389 $ 1,084,500 |
Revenue (Tables)
Revenue (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
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, 2023 2022 2023 2022 Geographic markets: United States $ 113,910 60 % $ 87,556 63 % $ 217,852 60 % $ 166,548 63 % International 75,375 40 % 51,851 37 % 145,735 40 % 98,998 37 % Total revenue $ 189,285 100 % $ 139,407 100 % $ 363,587 100 % $ 265,546 100 % Subscriptions and services: Confluent Platform - License $ 20,544 11 % $ 19,568 14 % $ 39,532 11 % $ 38,515 15 % Confluent Platform - PCS (1) 72,366 38 % 60,470 43 % 140,307 39 % 116,530 44 % Confluent Cloud 83,578 44 % 46,980 34 % 157,216 43 % 85,893 32 % Subscription 176,488 93 % 127,018 91 % 337,055 93 % 240,938 91 % Services 12,797 7 % 12,389 9 % 26,532 7 % 24,608 9 % Total revenue $ 189,285 100 % $ 139,407 100 % $ 363,587 100 % $ 265,546 100 % (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, 2023 2022 Beginning balance $ 104,284 $ 78,824 Capitalization of contract acquisition costs 23,966 22,723 Amortization of deferred contract acquisition costs ( 21,537 ) ( 17,395 ) Ending balance $ 106,713 $ 84,152 |
Stockholders' Equity (Tables)
Stockholders' Equity (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
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, 2023 December 31, 2022 2014 Stock Plan: Options outstanding 36,444,774 45,276,579 Restricted stock units outstanding 1,479,976 2,224,138 2021 Equity Incentive Plan: Options outstanding 22,500 22,500 Restricted stock units outstanding 23,828,489 17,729,318 Remaining shares available for future issuance 39,666,627 33,300,077 2021 Employee Stock Purchase Plan 8,673,168 6,493,913 Total 110,115,534 105,046,525 |
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, 2023 33,300,077 45,299,079 $ 7.76 6.99 $ 657,307 Increase in authorized shares 14,469,209 - $ - Stock options exercised - ( 7,241,647 ) $ 6.63 Stock options forfeited or expired 1,590,158 ( 1,590,158 ) $ 12.26 Repurchases of unvested common stock 30,828 - $ - RSUs granted ( 12,019,143 ) - $ - RSUs forfeited or cancelled 2,295,498 - $ - Balance as of June 30, 2023 39,666,627 36,467,274 $ 7.78 6.58 $ 1,004,232 Vested as of June 30, 2023 25,354,766 $ 6.44 6.33 $ 732,274 Vested and expected to vest as of June 30, 2023 36,467,274 $ 7.78 6.58 $ 1,004,232 |
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, 2023 19,953,456 $ 33.18 RSUs granted 12,019,143 $ 23.96 RSUs vested ( 4,368,636 ) $ 30.51 RSUs forfeited or cancelled ( 2,295,498 ) $ 33.52 Unvested balance as of June 30, 2023 25,308,465 $ 29.23 |
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, 2023 2022 2023 2022 Cost of revenue - subscription $ 6,914 $ 6,018 $ 13,242 $ 11,331 Cost of revenue - services 3,125 2,328 5,902 4,190 Research and development 35,420 25,337 65,435 45,422 Sales and marketing 32,889 24,746 61,376 45,808 General and administrative 13,811 10,437 25,493 19,484 Stock-based compensation, net of amounts capitalized $ 92,159 $ 68,866 $ 171,448 $ 126,235 Capitalized stock-based compensation 5,810 1,598 9,732 3,125 Total stock-based compensation $ 97,969 $ 70,464 $ 181,180 $ 129,360 |
Restructuring and Other Relat_2
Restructuring and Other Related Charges (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Restructuring and Related Activities [Abstract] | |
Schedule of Restructuring Related Employee Termination Benefits Included in Accrued Expenses and Other Current Liabilities | The following table summarizes the Company’s liability for restructuring-related employee termination benefits included in accrued expenses and other current liabilities on the condensed consolidated balance sheets (in thousands): Employee Termination Benefits Balance as of January 1, 2023 $ - Restructuring charges 18,658 Cash payments ( 16,756 ) Balance as of June 30, 2023 $ 1,902 |
Net Loss Per Share (Tables)
Net Loss Per Share (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Earnings Per Share [Abstract] | |
Schedule of Calculation of Basic and Diluted Net Loss Per Share Attributable to Class A and Class B 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, 2023 2022 2023 2022 Class A and Class B Class A and Class B Numerator: Net loss $ ( 103,425 ) $ ( 117,631 ) $ ( 255,980 ) $ ( 230,618 ) Denominator: Weighted-average shares used to compute net loss per share, basic and diluted 297,827,200 278,268,980 294,862,197 275,593,362 Net loss per share, basic and diluted $ ( 0.35 ) $ ( 0.42 ) $ ( 0.87 ) $ ( 0.84 ) |
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, 2023 June 30, 2022 Stock options 36,467,274 51,921,878 Unvested early exercised stock options 284,550 1,079,122 RSUs 25,308,465 17,167,218 ESPP 1,553,885 758,398 Shares issuable upon conversion of the 2027 Notes 10,992,960 10,992,960 Total 74,607,134 81,919,576 |
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, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Accounting Policies [Abstract] | ||||
Impairment of long lived assets | $ 0 | $ 0 | $ 0 | $ 0 |
Goodwill impairment charges | $ 0 | $ 0 |
Marketable Securities - Schedul
Marketable Securities - Schedule of Fair Value and Amortized Cost of Marketable Securities (Details) - USD ($) $ in Thousands | Jun. 30, 2023 | Dec. 31, 2022 |
Marketable Securities [Line Items] | ||
Amortized Cost | $ 1,545,227 | $ 1,501,125 |
Unrealized Gains | 30 | 94 |
Unrealized Losses | (10,345) | (10,175) |
Fair Value | 1,534,912 | 1,491,044 |
U.S. Treasury Securities [Member] | ||
Marketable Securities [Line Items] | ||
Amortized Cost | 924,413 | 1,033,587 |
Unrealized Gains | 28 | 68 |
Unrealized Losses | (4,706) | (4,072) |
Fair Value | 919,735 | 1,029,583 |
U.S. Agency Obligations [Member] | ||
Marketable Securities [Line Items] | ||
Amortized Cost | 412,422 | 273,804 |
Unrealized Gains | 0 | 17 |
Unrealized Losses | (3,891) | (3,570) |
Fair Value | 408,531 | 270,251 |
Corporate Notes and Bonds [Member] | ||
Marketable Securities [Line Items] | ||
Amortized Cost | 170,102 | 160,208 |
Unrealized Gains | 1 | 9 |
Unrealized Losses | (1,693) | (2,375) |
Fair Value | 168,410 | 157,842 |
Commercial Paper [Member] | ||
Marketable Securities [Line Items] | ||
Amortized Cost | 38,290 | 33,526 |
Unrealized Gains | 1 | 0 |
Unrealized Losses | (55) | (158) |
Fair Value | $ 38,236 | $ 33,368 |
Marketable Securities - Sched_2
Marketable Securities - Schedule of Fair Values and Unrealized Losses on Marketable Securities (Details) - USD ($) $ in Thousands | Jun. 30, 2023 | Dec. 31, 2022 |
Marketable Securities [Line Items] | ||
Fair Value, Less than 12 Months | $ 1,269,047 | $ 891,594 |
Fair Value, 12 Months or Greater | 162,713 | 284,991 |
Fair Value, Total | 1,431,760 | 1,176,585 |
Unrealized Losses, Less than 12 Months | (8,033) | (6,323) |
Unrealized Losses, 12 Months or Greater | (2,312) | (3,852) |
Unrealized Losses, Total | (10,345) | (10,175) |
U.S. Treasury Securities [Member] | ||
Marketable Securities [Line Items] | ||
Fair Value, Less than 12 Months | 786,455 | 566,093 |
Fair Value, 12 Months or Greater | 51,480 | 167,817 |
Fair Value, Total | 837,935 | 733,910 |
Unrealized Losses, Less than 12 Months | (3,844) | (2,892) |
Unrealized Losses, 12 Months or Greater | (862) | (1,180) |
Unrealized Losses, Total | (4,706) | (4,072) |
U.S. Agency Obligations [Member] | ||
Marketable Securities [Line Items] | ||
Fair Value, Less than 12 Months | 353,803 | 201,846 |
Fair Value, 12 Months or Greater | 52,728 | 51,595 |
Fair Value, Total | 406,531 | 253,441 |
Unrealized Losses, Less than 12 Months | (2,960) | (2,014) |
Unrealized Losses, 12 Months or Greater | (931) | (1,556) |
Unrealized Losses, Total | (3,891) | (3,570) |
Corporate Notes and Bonds [Member] | ||
Marketable Securities [Line Items] | ||
Fair Value, Less than 12 Months | 108,503 | 90,287 |
Fair Value, 12 Months or Greater | 58,505 | 65,579 |
Fair Value, Total | 167,008 | 155,866 |
Unrealized Losses, Less than 12 Months | (1,174) | (1,259) |
Unrealized Losses, 12 Months or Greater | (519) | (1,116) |
Unrealized Losses, Total | (1,693) | (2,375) |
Commercial Paper [Member] | ||
Marketable Securities [Line Items] | ||
Fair Value, Less than 12 Months | 20,286 | 33,368 |
Fair Value, 12 Months or Greater | 0 | 0 |
Fair Value, Total | 20,286 | 33,368 |
Unrealized Losses, Less than 12 Months | (55) | (158) |
Unrealized Losses, 12 Months or Greater | 0 | 0 |
Unrealized Losses, Total | $ (55) | $ (158) |
Marketable Securities - Additio
Marketable Securities - Additional Information (Details) - USD ($) | Jun. 30, 2023 | Jun. 30, 2022 |
Investments, Debt and Equity Securities [Abstract] | ||
Allowance for credit losses | $ 0 | $ 0 |
Marketable Securities - Sched_3
Marketable Securities - Schedule of Fair Value of Contractual Maturities (Details) - USD ($) $ in Thousands | Jun. 30, 2023 | Dec. 31, 2022 |
Investments, Debt and Equity Securities [Abstract] | ||
Due within one year, amortized cost | $ 1,121,569 | |
Due after one year through five years, amortized cost | 423,658 | |
Amortized Cost | 1,545,227 | $ 1,501,125 |
Due within one year, fair value | 1,115,659 | |
Due after one year through five years, fair value | 419,253 | |
Fair Value | $ 1,534,912 | $ 1,491,044 |
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, 2023 | Dec. 31, 2022 |
Marketable securities: | ||
Fair value, Marketable securities | $ 1,534,912 | $ 1,491,044 |
Derivative instruments: | ||
Fair value, Derivative asset | 2,032 | 672 |
Derivative instruments: | ||
Fair value, Derivative liability | 605 | 19 |
U.S. Treasury Securities [Member] | ||
Marketable securities: | ||
Fair value, Marketable securities | 919,735 | 1,029,583 |
Corporate Notes and Bonds [Member] | ||
Marketable securities: | ||
Fair value, Marketable securities | 168,410 | 157,842 |
Commercial Paper [Member] | ||
Marketable securities: | ||
Fair value, Marketable securities | 38,236 | 33,368 |
Fair Value, Measurements, Recurring [Member] | ||
Cash equivalents, Marketable securities and Derivative instruments: | ||
Assets, Fair Value | 1,788,477 | 1,874,386 |
Liability, Fair value | 605 | 19 |
Fair Value, Measurements, Recurring [Member] | U.S. Treasury Securities [Member] | ||
Cash equivalents: | ||
Fair value, Cash equivalents | 12,971 | |
Marketable securities: | ||
Fair value, Marketable securities | 919,735 | 1,029,583 |
Fair Value, Measurements, Recurring [Member] | U.S. Agency Obligations [Member] | ||
Cash equivalents: | ||
Fair value, Cash equivalents | 2,000 | |
Marketable securities: | ||
Fair value, Marketable securities | 408,531 | 270,251 |
Fair Value, Measurements, Recurring [Member] | Corporate Notes and Bonds [Member] | ||
Marketable securities: | ||
Fair value, Marketable securities | 168,410 | 157,842 |
Fair Value, Measurements, Recurring [Member] | Commercial Paper [Member] | ||
Cash equivalents: | ||
Fair value, Cash equivalents | 4,964 | |
Marketable securities: | ||
Fair value, Marketable securities | 38,236 | 33,368 |
Fair Value, Measurements, Recurring [Member] | Foreign Currency Forward Contracts [Member] | ||
Derivative instruments: | ||
Fair value, Derivative asset | 2,032 | 672 |
Derivative instruments: | ||
Fair value, Derivative liability | 605 | 19 |
Fair Value, Measurements, Recurring [Member] | Money Market Funds [Member] | ||
Cash equivalents: | ||
Fair value, Cash equivalents | 246,569 | 367,699 |
Fair Value, Measurements, Recurring [Member] | Level 1 [Member] | ||
Cash equivalents, Marketable securities and Derivative instruments: | ||
Assets, Fair Value | 246,569 | 367,699 |
Liability, Fair value | 0 | 0 |
Fair Value, Measurements, Recurring [Member] | Level 1 [Member] | U.S. Treasury Securities [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] | 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] | Foreign Currency Forward Contracts [Member] | ||
Derivative instruments: | ||
Fair value, Derivative asset | 0 | 0 |
Derivative instruments: | ||
Fair value, Derivative liability | 0 | 0 |
Fair Value, Measurements, Recurring [Member] | Level 1 [Member] | Money Market Funds [Member] | ||
Cash equivalents: | ||
Fair value, Cash equivalents | 246,569 | 367,699 |
Fair Value, Measurements, Recurring [Member] | Level 2 [Member] | ||
Cash equivalents, Marketable securities and Derivative instruments: | ||
Assets, Fair Value | 1,541,908 | 1,506,687 |
Liability, Fair value | 605 | 19 |
Fair Value, Measurements, Recurring [Member] | Level 2 [Member] | U.S. Treasury Securities [Member] | ||
Cash equivalents: | ||
Fair value, Cash equivalents | 12,971 | |
Marketable securities: | ||
Fair value, Marketable securities | 919,735 | 1,029,583 |
Fair Value, Measurements, Recurring [Member] | Level 2 [Member] | U.S. Agency Obligations [Member] | ||
Cash equivalents: | ||
Fair value, Cash equivalents | 2,000 | |
Marketable securities: | ||
Fair value, Marketable securities | 408,531 | 270,251 |
Fair Value, Measurements, Recurring [Member] | Level 2 [Member] | Corporate Notes and Bonds [Member] | ||
Marketable securities: | ||
Fair value, Marketable securities | 168,410 | 157,842 |
Fair Value, Measurements, Recurring [Member] | Level 2 [Member] | Commercial Paper [Member] | ||
Cash equivalents: | ||
Fair value, Cash equivalents | 4,964 | |
Marketable securities: | ||
Fair value, Marketable securities | 38,236 | 33,368 |
Fair Value, Measurements, Recurring [Member] | Level 2 [Member] | Foreign Currency Forward Contracts [Member] | ||
Derivative instruments: | ||
Fair value, Derivative asset | 2,032 | 672 |
Derivative instruments: | ||
Fair value, Derivative liability | 605 | 19 |
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, 2023 | Dec. 31, 2022 |
Zero Percentage Convertible senior notes due 2027 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total estimated fair value of the 2027 Notes | $ 913.2 | $ 837.3 |
Derivative Instruments and He_3
Derivative Instruments and Hedging - Additional Information (Details) $ in Millions | 6 Months Ended |
Jun. 30, 2023 USD ($) | |
Derivatives, Fair Value [Line Items] | |
Description of Derivative Instruments | 13 months |
Foreign Currency Forward Contracts [Member] | |
Derivatives, Fair Value [Line Items] | |
Derivative instruments, gain (loss) reclassification from accumulated OCI to income, estimated net amount to be transferred | $ (0.5) |
Derivative Instruments and He_4
Derivative Instruments and Hedging - Schedule of Notional Amounts of the Company's Derivative Instruments (Details) - USD ($) $ in Thousands | Jun. 30, 2023 | Dec. 31, 2022 |
Derivatives, Fair Value [Line Items] | ||
Total derivative instruments | $ 147,162 | $ 96,097 |
Designated as Hedging Instrument [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Total derivative instruments | 60,517 | 96,097 |
Not Designated as Hedging Instrument [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Total derivative instruments | $ 86,645 | $ 0 |
Derivative Instruments and He_5
Derivative Instruments and Hedging - Fair Value of Derivative Instruments on The Balance Sheet (Details) - USD ($) $ in Thousands | Jun. 30, 2023 | Dec. 31, 2022 |
Derivative Instruments, Gain (Loss) [Line Items] | ||
Derivative assets | $ 2,032 | $ 672 |
Derivative liabilities | $ 605 | $ 19 |
Foreign Exchange Forward [Member] | Designated as Hedging Instrument [Member] | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Derivative Asset, Statement of Financial Position [Extensible Enumeration] | Prepaid Expense and Other Assets, Current | Prepaid Expense and Other Assets, Current |
Derivative assets | $ 819 | $ 672 |
Derivative Liability, Statement of Financial Position [Extensible Enumeration] | Accrued Liabilities and Other Liabilities | Accrued Liabilities and Other Liabilities |
Derivative liabilities | $ 279 | $ 19 |
Foreign Exchange Forward [Member] | Not Designated as Hedging Instrument [Member] | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Derivative Asset, Statement of Financial Position [Extensible Enumeration] | Prepaid Expense and Other Assets, Current | Prepaid Expense and Other Assets, Current |
Derivative assets | $ 1,213 | $ 0 |
Derivative Liability, Statement of Financial Position [Extensible Enumeration] | Accrued Liabilities and Other Liabilities | Accrued Liabilities and Other Liabilities |
Derivative liabilities | $ 326 | $ 0 |
Derivative Instruments and He_6
Derivative Instruments and Hedging - Impact of Derivative Contracts on Accumulated Other Comprehensive Income (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended |
Jun. 30, 2023 | Jun. 30, 2023 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | ||
Beginning Balance | $ 1,024 | $ 653 |
Net gain recognized in other comprehensive income | 222 | 1,065 |
Net gain reclassified from AOCI to earnings | (706) | (1,178) |
Ending Balance | $ 540 | $ 540 |
Derivative Instruments and He_7
Derivative Instruments and Hedging - Summary of Recognized Net Gains (Losses) From Foreign Currency Forward Contracts (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended |
Jun. 30, 2023 | Jun. 30, 2023 | |
Net (losses) gains recognized from foreign currency forward contracts | $ (706) | $ (1,178) |
Designated as Hedging Instrument [Member] | ||
Net (losses) gains recognized from foreign currency forward contracts | 706 | 1,178 |
Not Designated as Hedging Instrument [Member] | ||
Net (losses) gains recognized from foreign currency forward contracts | 11 | 87 |
Cost of Sales - Subscription [Member] | Designated as Hedging Instrument [Member] | ||
Net (losses) gains recognized from foreign currency forward contracts | 89 | 133 |
Cost of Sales - Subscription [Member] | Not Designated as Hedging Instrument [Member] | ||
Net (losses) gains recognized from foreign currency forward contracts | 0 | 0 |
Cost of Sales - Services [Member] | Designated as Hedging Instrument [Member] | ||
Net (losses) gains recognized from foreign currency forward contracts | 60 | 108 |
Cost of Sales - Services [Member] | Not Designated as Hedging Instrument [Member] | ||
Net (losses) gains recognized from foreign currency forward contracts | 0 | 0 |
Research and Development [Member] | Designated as Hedging Instrument [Member] | ||
Net (losses) gains recognized from foreign currency forward contracts | 140 | 199 |
Research and Development [Member] | Not Designated as Hedging Instrument [Member] | ||
Net (losses) gains recognized from foreign currency forward contracts | 0 | 0 |
Sales and Marketing [Member] | Designated as Hedging Instrument [Member] | ||
Net (losses) gains recognized from foreign currency forward contracts | 318 | 581 |
Sales and Marketing [Member] | Not Designated as Hedging Instrument [Member] | ||
Net (losses) gains recognized from foreign currency forward contracts | 0 | 0 |
General and Administrative [Member] | Designated as Hedging Instrument [Member] | ||
Net (losses) gains recognized from foreign currency forward contracts | 99 | 157 |
General and Administrative [Member] | Not Designated as Hedging Instrument [Member] | ||
Net (losses) gains recognized from foreign currency forward contracts | 0 | 0 |
Other Income, Net [Member] | Designated as Hedging Instrument [Member] | ||
Net (losses) gains recognized from foreign currency forward contracts | 0 | 0 |
Other Income, Net [Member] | Not Designated as Hedging Instrument [Member] | ||
Net (losses) gains recognized from foreign currency forward contracts | $ 11 | $ 87 |
Balance Sheet Components - Summ
Balance Sheet Components - Summary of Property and Equipment, Net (Details) - USD ($) $ in Thousands | Jun. 30, 2023 | Dec. 31, 2022 |
Property Plant And Equipment [Line Items] | ||
Property and equipment, gross | $ 61,805 | $ 41,272 |
Less: Accumulated depreciation and amortization | (18,206) | (12,183) |
Property and equipment, net | 43,599 | 29,089 |
Computers, Equipment, and Software [Member] | ||
Property Plant And Equipment [Line Items] | ||
Property and equipment, gross | 9,862 | 8,794 |
Furniture and Fixtures [Member] | ||
Property Plant And Equipment [Line Items] | ||
Property and equipment, gross | 903 | 977 |
Leasehold Improvements [Member] | ||
Property Plant And Equipment [Line Items] | ||
Property and equipment, gross | 380 | 458 |
Capitalized Internal-Use Software Costs [Member] | ||
Property Plant And Equipment [Line Items] | ||
Property and equipment, gross | 32,725 | 25,639 |
Construction in Progress [Member] | ||
Property Plant And Equipment [Line Items] | ||
Property and equipment, gross | $ 17,935 | $ 5,404 |
Balance Sheet Components - Addi
Balance Sheet Components - Additional Information (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Property, Plant and Equipment [Abstract] | ||||
Depreciation | $ 3.2 | $ 1.8 | $ 6.2 | $ 3.1 |
Balance Sheet Components - Su_2
Balance Sheet Components - Summary of Accrued Expense and Other Liabilities (Details) - USD ($) $ in Thousands | Jun. 30, 2023 | Dec. 31, 2022 |
Payables and Accruals [Abstract] | ||
Accrued compensation and benefits | $ 47,353 | $ 27,799 |
Accrued expenses | 16,266 | 16,798 |
Accrued payroll taxes | 12,314 | 10,349 |
Accrued commissions | 9,354 | 18,058 |
Employee contributions under employee stock purchase plan | 11,233 | 15,283 |
Other liabilities | 15,975 | 17,044 |
Total accrued expenses and other liabilities | $ 112,495 | $ 105,331 |
Business Combination, Intangi_3
Business Combination, Intangible Assets, and Goodwill - Additional Information (Details) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Jan. 09, 2023 | Jun. 30, 2023 | Jun. 30, 2023 | Dec. 31, 2022 | |
Business Acquisition [Line Items] | ||||
Business acquisition, expense attributable to post-combination services | $ 4,300,000 | $ 8,700,000 | ||
Goodwill | $ 43,500,000 | $ 43,500,000 | $ 0 | |
Immerok Gmbh | ||||
Business Acquisition [Line Items] | ||||
Purchase Consideration Amount | $ 54,900,000 | |||
Cash Acquired | 9,100,000 | |||
Developed technology intangible asset | $ 2,600,000 | |||
Estimated useful life (in years) | 5 years | |||
Goodwill | $ 43,500,000 | |||
Holdback Agreement | ||||
Business Acquisition [Line Items] | ||||
Amout paid in cash | $ 52,300,000 |
Business Combination, Intangi_4
Business Combination, Intangible Assets, and Goodwill - Schedule of Intangible Assets, Net (Details) $ in Thousands | Jun. 30, 2023 USD ($) |
Gross | $ 2,556 |
Accumulated Amortization | (240) |
Net | 2,316 |
Developed technology | |
Gross | 2,556 |
Accumulated Amortization | (240) |
Net | $ 2,316 |
Business Combination, Intangi_5
Business Combination, Intangible Assets, and Goodwill - Schedule of Expected Future Amortization Expense (Details) $ in Thousands | Jun. 30, 2023 USD ($) |
Business Combination, Intangible Assets, and Goodwill [ Abstract] | |
Remainder of 2023 | $ 258 |
2024 | 513 |
2025 | 511 |
2026 | 511 |
2027 | 511 |
Thereafter | 12 |
Total | $ 2,316 |
Convertible Senior Notes - Addi
Convertible Senior Notes - Additional Information (Details) $ / shares in Units, $ in Thousands, shares in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 USD ($) $ / shares | Jun. 30, 2022 USD ($) | Jun. 30, 2023 USD ($) Days $ / shares shares | Jun. 30, 2022 USD ($) | |
Debt Instrument [Line Items] | ||||
Amortization of debt issuance costs | $ 1,000 | $ 900 | $ 1,889 | $ 1,883 |
Zero Percentage Convertible senior notes due 2027 | ||||
Debt Instrument [Line Items] | ||||
Debt Instrument Face Amount | 1,100,000 | 1,100,000 | ||
Debt Instrument Convertible Conversion Ratio Denominator | $ 1,000 | $ 1,000 | ||
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 | |||
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% | ||
Debt instrument percentage price | 130% | |||
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 | 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 | Maximum [Member] | ||||
Debt Instrument [Line Items] | ||||
Debt Instrument Face Amount | $ 100,000 | $ 100,000 | ||
Debt instrument percentage price | 98% | 98% | ||
Zero Percentage Convertible senior notes due 2027 | Minimum [Member] | ||||
Debt Instrument [Line Items] | ||||
Number of trading days | Days | 20 | |||
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 | $ 91,000 | ||
Zero Percentage Convertible senior notes due 2027 | Capped Calls [Member] | Common Class A [Member] | ||||
Debt Instrument [Line Items] | ||||
Adjustment to anti-dilution common stock | shares | 11 |
Convertible Senior Notes - Sche
Convertible Senior Notes - Schedule of Net Carrying Amount of Notes (Details) - USD ($) $ in Thousands | Jun. 30, 2023 | Dec. 31, 2022 |
Convertible Debt [Abstract] | ||
Principal | $ 1,100,000 | $ 1,100,000 |
Unamortized debt issuance costs | (13,611) | (15,500) |
Net carrying amount | $ 1,086,389 | $ 1,084,500 |
Commitments and Contingencies -
Commitments and Contingencies - Additional Information (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | Dec. 31, 2019 | |
Lessee Lease Description [Line Items] | ||||
Operating lease, option to terminate, description | an option to terminate the lease early within three years of lease termination | |||
Sublease Income | $ 0 | $ 0 | ||
Lease abandonment charges | $ 15,667 | $ 0 | ||
Non-cancelable commitment | 140,000 | |||
Leased Office Space [Member] | ||||
Lessee Lease Description [Line Items] | ||||
Lease abandonment charges | $ 15,700 | |||
CALIFORNIA [Member] | ||||
Lessee Lease Description [Line Items] | ||||
Letters of Credit Outstanding, Amount | $ 8,200 | |||
Maximum [Member] | ||||
Lessee Lease Description [Line Items] | ||||
Lessee, operating lease, renewal term | 5 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, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Disaggregation Of Revenue [Line Items] | ||||
Total revenue | $ 189,285 | $ 139,407 | $ 363,587 | $ 265,546 |
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 | $ 113,910 | $ 87,556 | $ 217,852 | $ 166,548 |
United States [Member] | Revenue Benchmark [Member] | Geographic Concentration Risk [Member] | ||||
Disaggregation Of Revenue [Line Items] | ||||
Percentage of Revenue | 60% | 63% | 60% | 63% |
International [Member] | ||||
Disaggregation Of Revenue [Line Items] | ||||
Total revenue | $ 75,375 | $ 51,851 | $ 145,735 | $ 98,998 |
International [Member] | Revenue Benchmark [Member] | Geographic Concentration Risk [Member] | ||||
Disaggregation Of Revenue [Line Items] | ||||
Percentage of Revenue | 40% | 37% | 40% | 37% |
License [Member] | ||||
Disaggregation Of Revenue [Line Items] | ||||
Total revenue | $ 20,544 | $ 19,568 | $ 39,532 | $ 38,515 |
License [Member] | Revenue Benchmark [Member] | Subscription and Service Concentration Risk [Member] | ||||
Disaggregation Of Revenue [Line Items] | ||||
Percentage of Revenue | 11% | 14% | 11% | 15% |
Post Contract Customer Support [Member] | ||||
Disaggregation Of Revenue [Line Items] | ||||
Total revenue | $ 72,366 | $ 60,470 | $ 140,307 | $ 116,530 |
Post Contract Customer Support [Member] | Revenue Benchmark [Member] | Subscription and Service Concentration Risk [Member] | ||||
Disaggregation Of Revenue [Line Items] | ||||
Percentage of Revenue | 38% | 43% | 39% | 44% |
Confluent Cloud [Member] | ||||
Disaggregation Of Revenue [Line Items] | ||||
Total revenue | $ 83,578 | $ 46,980 | $ 157,216 | $ 85,893 |
Confluent Cloud [Member] | Revenue Benchmark [Member] | Subscription and Service Concentration Risk [Member] | ||||
Disaggregation Of Revenue [Line Items] | ||||
Percentage of Revenue | 44% | 34% | 43% | 32% |
Subscription [Member] | ||||
Disaggregation Of Revenue [Line Items] | ||||
Total revenue | $ 176,488 | $ 127,018 | $ 337,055 | $ 240,938 |
Subscription [Member] | Revenue Benchmark [Member] | Subscription and Service Concentration Risk [Member] | ||||
Disaggregation Of Revenue [Line Items] | ||||
Percentage of Revenue | 93% | 91% | 93% | 91% |
Services [Member] | ||||
Disaggregation Of Revenue [Line Items] | ||||
Total revenue | $ 12,797 | $ 12,389 | $ 26,532 | $ 24,608 |
Services [Member] | Revenue Benchmark [Member] | Subscription and Service Concentration Risk [Member] | ||||
Disaggregation Of Revenue [Line Items] | ||||
Percentage of Revenue | 7% | 9% | 7% | 9% |
Revenue - Additional Informatio
Revenue - Additional Information (Details) - USD ($) | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | Dec. 31, 2022 | |
Disaggregation Of Revenue [Line Items] | |||||
Revenue, remaining performance obligation, amount | $ 791,400,000 | $ 791,400,000 | |||
Revenue, remaining performance obligation, percentage | 65% | 65% | |||
Deferred revenue | $ 328,000,000 | $ 328,000,000 | $ 322,800,000 | ||
Unbilled receivables balance | 54,500,000 | 54,500,000 | 51,300,000 | ||
Allowance for credit losses | 0 | 0 | $ 0 | ||
Write-offs against the allowance for credit losses | $ 0 | $ 0 | 0 | $ 0 | |
Revenue recognized from deferred revenue | $ 199,900,000 | $ 152,700,000 |
Revenue - Schedule of Activity
Revenue - Schedule of Activity of Deferred Contract Acquisition Costs (Details) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2023 | Jun. 30, 2022 | |
Revenue from Contract with Customer [Abstract] | ||
Beginning balance | $ 104,284 | $ 78,824 |
Capitalization of contract acquisition costs | 23,966 | 22,723 |
Amortization of deferred contract acquisition costs | (21,537) | (17,395) |
Ending balance | $ 106,713 | $ 84,152 |
Stockholders' Equity - Addition
Stockholders' Equity - Additional Information (Details) $ / shares in Units, $ in Thousands | 6 Months Ended | 12 Months Ended | |
Jun. 30, 2023 USD ($) Vote $ / shares shares | Jun. 30, 2022 USD ($) $ / shares | Dec. 31, 2022 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) | 110,115,534 | 105,046,525 | |
Share-based payment arrangement, incremental cost | $ | $ 0 | ||
Intrinsic value of options exercised | $ | $ 144,700 | $ 284,400 | |
Weighted average grant date fair value per share of options granted | $ / shares | $ 0 | $ 0 | |
Shares early exercised and repurchase | 284,550 | 578,119 | |
Liabilities for early exercise of unvested stock options and other liabilities | $ | $ 2,300 | $ 4,000 | |
Unrecognized stock-based compensation expense | $ | $ 779,700 | ||
Unrecognized stock-based compensation expense, weighted-average period | 2 years 3 months 18 days | ||
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 | |
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) | 8,673,168 | 6,493,913 | |
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, 2023 | Dec. 31, 2022 |
Class Of Stock [Line Items] | ||
Common stock reserved for issuance (in shares) | 110,115,534 | 105,046,525 |
2014 Stock Plan [Member] | Employee Stock Option | ||
Class Of Stock [Line Items] | ||
Common stock reserved for issuance (in shares) | 36,444,774 | 45,276,579 |
2014 Stock Plan [Member] | RSUs [Member] | ||
Class Of Stock [Line Items] | ||
Common stock reserved for issuance (in shares) | 1,479,976 | 2,224,138 |
2021 Equity Incentive Plan [Member] | ||
Class Of Stock [Line Items] | ||
Common stock reserved for issuance (in shares) | 39,666,627 | 33,300,077 |
2021 Equity Incentive Plan [Member] | Employee Stock Option | ||
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) | 23,828,489 | 17,729,318 |
2021 Employee Stock Purchase Plan [Member] | ||
Class Of Stock [Line Items] | ||
Common stock reserved for issuance (in shares) | 8,673,168 | 6,493,913 |
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, 2023 USD ($) $ / shares shares | Dec. 31, 2022 USD ($) $ / shares shares | |
Share-Based Payment Arrangement [Abstract] | ||
Shares Available for Grant, Beginning Balance | 33,300,077 | |
Shares Available for Grant, Increase in authorized shares | 14,469,209 | |
Shares Available for Grant, Stock options forfeited or expired | 1,590,158 | |
Shares Available for Grant, Repurchases of unvested common stock | 30,828 | |
Shares Available for Grant, RSUs granted | (12,019,143) | |
Shares Available for Grant, RSUs Forfeited or Cancelled | 2,295,498 | |
Shares Available for Grant, Ending Balance | 39,666,627 | 33,300,077 |
Outstanding Stock Options, Beginning Balance | 45,299,079 | |
Outstanding Stock Options, Stock options exercised | (7,241,647) | |
Outstanding Stock Options, Stock options forfeited or expired | (1,590,158) | |
Outstanding Stock Options, Ending Balance | 36,467,274 | 45,299,079 |
Outstanding Stock Options, Vested | 25,354,766 | |
Outstanding Stock Options, Vested and expected to vest | 36,467,274 | |
Weighted-Average Exercise Price, Beginning Balance | $ / shares | $ 7.76 | |
Weighted-Average Exercise Price, Stock options exercised | $ / shares | 6.63 | |
Weighted-Average Exercise Price, Stock options forfeited or expired | $ / shares | 12.26 | |
Weighted-Average Exercise Price, Ending Balance | $ / shares | 7.78 | $ 7.76 |
Weighted-Average Exercise Price, Vested | $ / shares | 6.44 | |
Weighted-Average Exercise Price, Vested and Expected to Vest | $ / shares | $ 7.78 | |
Weighted-Average Remaining Contractual Term (in years) | 6 years 6 months 29 days | 6 years 11 months 26 days |
Weighted-Average Remaining Contractual Term Vested (in years) | 6 years 3 months 29 days | |
Weighted-Average Remaining Contractual Term Vested and expected to vest (in years) | 6 years 6 months 29 days | |
Aggregate Intrinsic Value, Beginning Balance | $ | $ 657,307 | |
Aggregate Intrinsic Value, Ending Balance | $ | 1,004,232 | $ 657,307 |
Aggregate Intrinsic Value, Vested as of June 30, 2023 | $ | 732,274 | |
Aggregate Intrinsic Value, Vested and expected to vest as of June 30, 2023 | $ | $ 1,004,232 |
Stockholders' Equity - Schedule
Stockholders' Equity - Schedule of Restricted Stock Unit Activity (Details) | 6 Months Ended |
Jun. 30, 2023 $ / shares shares | |
Share-Based Compensation Arrangement by Share-Based Payment Award, Non-Option Equity Instruments, Outstanding [Roll Forward] | |
RSUs forfeited or cancelled | 2,295,498 |
Restricted Stock Units (RSUs) [Member] | |
Share-Based Compensation Arrangement by Share-Based Payment Award, Non-Option Equity Instruments, Outstanding [Roll Forward] | |
Number of Shares, Beginning Balance | 19,953,456 |
Number of Shares, RSUs granted | 12,019,143 |
Number of Shares, RSUs vested | (4,368,636) |
RSUs forfeited or cancelled | (2,295,498) |
Number of Shares, Ending Balance | 25,308,465 |
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 | $ 33.18 |
Weighted-average grant date fair value, RSUs granted (in dollars per share) | $ / shares | 23.96 |
Weighted-average grant date fair value, RSUs vested (in dollars per share) | $ / shares | 30.51 |
Weighted-average grant date fair value, RSUs forfeited or cancelled (in dollars per share) | $ / shares | 33.52 |
Weighted-average grant date fair value, Ending Balance (in dollars per share) | $ / shares | $ 29.23 |
Stockholders' Equity - Summar_2
Stockholders' Equity - Summary of Stock-Based Compensation Expense (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Stock-based compensation, net of amounts capitalized | $ 92,159 | $ 68,866 | $ 171,448 | $ 126,235 |
Capitalized stock-based compensation | 5,810 | 1,598 | 9,732 | 3,125 |
Total stock-based compensation | 97,969 | 70,464 | 181,180 | 129,360 |
Cost of Revenue [Member] | Subscription [Member] | ||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Stock-based compensation, net of amounts capitalized | 6,914 | 6,018 | 13,242 | 11,331 |
Cost of Revenue [Member] | Services [Member] | ||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Stock-based compensation, net of amounts capitalized | 3,125 | 2,328 | 5,902 | 4,190 |
Research and Development [Member] | ||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Stock-based compensation, net of amounts capitalized | 35,420 | 25,337 | 65,435 | 45,422 |
Sales and Marketing [Member] | ||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Stock-based compensation, net of amounts capitalized | 32,889 | 24,746 | 61,376 | 45,808 |
General and Administrative [Member] | ||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Stock-based compensation, net of amounts capitalized | $ 13,811 | $ 10,437 | $ 25,493 | $ 19,484 |
Restructuring and Other Relat_3
Restructuring and Other Related Charges - Additional Information (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | Dec. 31, 2022 | |
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring charges | $ 943 | $ 0 | $ 34,325 | $ 0 | |
Lease abandonment charges | 15,667 | $ 0 | |||
Employee Termination Benefits [Member] | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring charges | 900 | 18,658 | |||
2023 Restructuring Plan | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Reduction of global workforce, percentage | 8% | ||||
Lease abandonment charges | $ 0 | $ 15,700 |
Restructuring and Other Relat_4
Restructuring and Other Related Charges - Schedule of Restructuring Related Employee Termination Benefits Included in Accrued Expenses and Other Current Liabilities (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring charges | $ 943 | $ 0 | $ 34,325 | $ 0 |
Employee Termination Benefits [Member] | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Balance as of January 1, 2023 | 0 | |||
Restructuring charges | 900 | 18,658 | ||
Cash payments | (16,756) | |||
Balance as of March 31, 2023 | $ 1,902 | $ 1,902 |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Income Tax Disclosure [Abstract] | ||||
Provision for income taxes | $ 1,667 | $ 1,510 | $ 3,314 | $ 2,199 |
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, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Numerator: | ||||
Net Income (Loss) | $ (103,425) | $ (117,631) | $ (255,980) | $ (230,618) |
Denominator: | ||||
Weighted-average shares used to compute net loss per share, basic | 297,827,200 | 278,268,980 | 294,862,197 | 275,593,362 |
Weighted-average shares used to compute net loss per share, diluted | 297,827,200 | 278,268,980 | 294,862,197 | 275,593,362 |
Net loss per share, basic | $ (0.35) | $ (0.42) | $ (0.87) | $ (0.84) |
Net loss per share, diluted | $ (0.35) | $ (0.42) | $ (0.87) | $ (0.84) |
Class A and Class B [Member] | ||||
Numerator: | ||||
Net Income (Loss) | $ (103,425) | $ (117,631) | $ (255,980) | $ (230,618) |
Denominator: | ||||
Weighted-average shares used to compute net loss per share, basic | 297,827,200 | 278,268,980 | 294,862,197 | 275,593,362 |
Weighted-average shares used to compute net loss per share, diluted | 297,827,200 | 278,268,980 | 294,862,197 | 275,593,362 |
Net loss per share, basic | $ (0.35) | $ (0.42) | $ (0.87) | $ (0.84) |
Net loss per share, diluted | $ (0.35) | $ (0.42) | $ (0.87) | $ (0.84) |
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, 2023 | Jun. 30, 2022 | |
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | ||
Antidilutive securities excluded from computation of earnings per share amount | 74,607,134 | 81,919,576 |
Stock Options [Member] | ||
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | ||
Antidilutive securities excluded from computation of earnings per share amount | 36,467,274 | 51,921,878 |
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 | 284,550 | 1,079,122 |
RSUs [Member] | ||
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | ||
Antidilutive securities excluded from computation of earnings per share amount | 25,308,465 | 17,167,218 |
ESPP [Member] | ||
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | ||
Antidilutive securities excluded from computation of earnings per share amount | 1,553,885 | 758,398 |
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 | 10,992,960 |