Fair Value Measurements

12 Months Ended

Dec. 31, 2023

Fair Value Disclosures [Abstract]

Fair Value Measurements

Note 3. Fair Value Measurements

The following table presents the balances of assets measured at fair value on a recurring basis, by level within the fair value hierarchy, as of the dates presented (in thousands):

	December 31, 2023								December 31, 2022
	Level 1		Level 2		Level 3		Total		Level 1		Level 2		Level 3		Total
Cash equivalents:
Money market funds	$	78,661	$	—	$	—	$	78,661	$	14,620	$	—	$	—	$	14,620
Total cash equivalents		78,661		—		—		78,661		14,620		—		—		14,620
Short-term investments:
U.S. government agency securities		—		11,893		—		11,893		—		78,621		—		78,621
Corporate notes and bonds		—		—		—		—		—		26,953		—		26,953
Commercial paper		—		—		—		—		—		24,073		—		24,073
Treasury bill		—		—		—		—		—		11,359		—		11,359
Yankee bonds		—		1,951		—		1,951		—		1,939		—		1,939
Agency bonds		—		2,994		—		2,994		—		2,882		—		2,882
Asset-backed securities		—		1,602		—		1,602		—		8,321		—		8,321
Total short-term investments		—		18,440		—		18,440		—		154,148		—		154,148
Long-term investments:
U.S. government agency securities		—		—		—		—		—		13,462		—		13,462
Yankee bonds		—		—		—		—		—		1,869		—		1,869
Agency bonds		—		—		—		—		—		2,983		—		2,983
Asset-backed securities		—		—		—		—		—		886		—		886
Total long-term investments		—		—		—		—		—		19,200		—		19,200
Total	$	78,661	$	18,440	$	—	$	97,101	$	14,620	$	173,348	$	—	$	187,968
Acquisition related contingent consideration liability		—		—		6,180		6,180		—		—		—		—
Total liabilities at fair value	$	—	$	—	$	6,180	$	6,180	$	—	$	—	$	—	$	—

The following table presents additional information about liabilities measured at fair value for which the Company utilizes Level 3 inputs to determine fair value as of December 31, 2023:

	Year Ended December 31,
	2023
Balance as of January 1	$	—
Addition of contingent consideration liability due to acquisition		4,602
Change in fair value of contingent consideration liability due to remeasurement		1,578
Balance as of December 31	$	6,180

We recorded the contingent consideration related to the Voyantic Oy acquisition at its fair value using unobservable inputs and used the Monte Carlo simulation option pricing framework, incorporating contractual terms and assumptions regarding financial forecasts, discount rates and volatility of forecasted revenue and gross margins. A decrease in estimated revenues and gross margins or an increase in the discount rate would decrease the fair value of the contingent consideration liability. The estimated revenues and gross margins are not interrelated inputs. The development and determination of the unobservable inputs for Level 3 fair value measurements and fair value calculations is management's responsibility with the assistance of a third-party valuation specialist. During the year ended December 31, 2023, we remeasured the fair value of the contingent consideration liability based on updated inputs related to actual performance results and recorded an additional expense of $1.6 million in general and administrative expense on the consolidated statement of operations. As of December 31, 2023, the contingent consideration liability of $6.2 million is included in "Accrued expenses and other current liabilities" on the consolidated balance sheet.

We did not have any Level 3 assets nor did we measure any liabilities at fair value as of December 31, 2022.

We expect short-term investments to mature within 1 year of the reporting date. We expect long-term investments to mature between 1 and 2 years from the reporting date. See Note 8 for the carrying amount and estimated fair value of our convertible senior notes due 2027.

The following tables present the cost or amortized cost, gross unrealized gains, gross unrealized losses and total estimated fair value of our financial assets as of the dates presented (in thousands):

	December 31, 2023
	Cost or		Gross		Gross			Total Estimated
	Amortized Cost		Unrealized Gains		Unrealized Losses			Fair Value
Description:
Money market funds	$	78,661	$	—	$	—		$	78,661
U.S. government agency securities		11,932		—		(39	)		11,893
Corporate notes and bonds		—		—		—			—
Yankee bonds		1,956		—		(5	)		1,951
Commercial paper		—		—		—			—
Treasury bill		—		—		—			—
Agency bond		2,998		—		(4	)		2,994
Asset-backed securities		1,604		—		(2	)		1,602
Total	$	97,151	$	—	$	(50	)	$	97,101

	December 31, 2022
	Cost or		Gross		Gross			Total Estimated
	Amortized Cost		Unrealized Gains		Unrealized Losses			Fair Value
Description:
Money market funds	$	14,620	$	—	$	—		$	14,620
U.S. government agency securities		93,065		—		(982	)		92,083
Corporate notes and bonds		27,133		6		(186	)		26,953
Yankee bonds		3,815		—		(7	)		3,808
Commercial paper		24,073		—		—			24,073
Treasury bill		11,361		2		(4	)		11,359
Agency bond		5,863		4		(2	)		5,865
Asset-backed securities		9,287		2		(82	)		9,207
Total	$	189,217	$	14	$	(1,263	)	$	187,968

Marketable securities in a continuous loss position for less than 12 months had an estimated fair value of $10.2 million and unrealized losses of $0.02 million as of December 31, 2023. Marketable securities in a continuous loss position for less than 12 months had an estimated fair value of $125.6 million and unrealized losses of $1.2 million as of December 31, 2022. Marketable securities in a continuous loss position for greater than 12 months had an estimated fair value of $8.2 million and unrealized losses of $0.03 million as of December 31, 2023. Marketable securities in a continuous loss position for greater than 12 months had an estimated fair value of $13.9 million and unrealized losses of $0.1 million as of December 31, 2022.

Unrealized losses from our fixed-income securities are primarily attributable to changes in interest rates and not to lower credit ratings of the issuers. In determining whether an unrealized loss is other-than-temporary, for the

periods presented, we determined we do not have plans to sell the securities nor is it more likely than not that we would be required to sell the securities before their anticipated recovery.