Fair Value Measurements

12 Months Ended

Dec. 31, 2023

FAIR VALUE MEASUREMENTS

The Company evaluates assets and liabilities subject to fair value measurements on a recurring basis to determine the appropriate level to classify them for each reporting period. There have been no transfers between fair value measurements levels during the years ended December 31, 2023 and 2022. The carrying amounts of cash and cash equivalents, marketable securities, trade receivables, short-term deposits and trade payables approximate their fair value due to the short-term maturity of such instruments.

The following table sets forth the Company’s assets and liabilities that were measured at fair value as of December 31, 2023 and 2022 by level within the fair value hierarchy (in thousands):


	As of December 31, 2023								As of December 31, 2022
	Level I		Level II		Level III		Fair Value		Level I		Level II		Level III		Fair Value
Financial assets:
Cash equivalents:
Money market funds	$	164,848	$	—	$	—	$	164,848	$	278,022	$	—	$	—	$	278,022
Marketable securities:
US Treasury securities	—		243,162		—		243,162		—		158,956		—		158,956
US Government Agency securities	—		10,013		—		10,013		—		55,900		—		55,900
Commercial paper	—		—		—		—		—		13,679		—		13,679
Corporate bonds	—		—		—		—		—		7,803		—		7,803
Prepaid expenses and other current assets:
Forward foreign exchange contracts	—		3,408		—		3,408		—		—		—		—
Long-term marketable securities:
US Treasury securities	—		211,063		—		211,063		—		—		—		—
Long-term other assets:
Forward foreign exchange contracts	—		519		—		519		—		—		—		—
Financial liabilities:
Accrued expenses and other short-term liabilities:
Forward foreign exchange contracts	—		(7)		—		(7)		—		(7,447)		—		(7,447)
Long-term other liabilities:
Forward foreign exchange contracts	—		(1,624)		—		(1,624)		—		(2,060)		—		(2,060)
Total financial assets (liabilities)	$	164,848	$	466,534	$	—	$	631,382	$	278,022	$	226,831	$	—	$	504,853

See Note 7 “Convertible Senior Notes and Capped Call Transactions” for the carrying amount and estimated fair value of the Company's 2025 Notes as of December 31, 2023.

- Definition

The entire disclosure for the fair value of financial instruments (as defined), including financial assets and financial liabilities (collectively, as defined), and the measurements of those instruments as well as disclosures related to the fair value of non-financial assets and liabilities. Such disclosures about the financial instruments, assets, and liabilities would include: (1) the fair value of the required items together with their carrying amounts (as appropriate); (2) for items for which it is not practicable to estimate fair value, disclosure would include: (a) information pertinent to estimating fair value (including, carrying amount, effective interest rate, and maturity, and (b) the reasons why it is not practicable to estimate fair value; (3) significant concentrations of credit risk including: (a) information about the activity, region, or economic characteristics identifying a concentration, (b) the maximum amount of loss the entity is exposed to based on the gross fair value of the related item, (c) policy for requiring collateral or other security and information as to accessing such collateral or security, and (d) the nature and brief description of such collateral or security; (4) quantitative information about market risks and how such risks are managed; (5) for items measured on both a recurring and nonrecurring basis information regarding the inputs used to develop the fair value measurement; and (6) for items presented in the financial statement for which fair value measurement is elected: (a) information necessary to understand the reasons for the election, (b) discussion of the effect of fair value changes on earnings, (c) a description of [similar groups] items for which the election is made and the relation thereof to the balance sheet, the aggregate carrying value of items included in the balance sheet that are not eligible for the election; (7) all other required (as defined) and desired information.

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