Fair Value Measurements

3 Months Ended

Mar. 31, 2024

Fair Value Disclosures [Abstract]

Fair Value Measurements

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 three months ended March 31, 2024. 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 authoritative guidance on fair value measurements establishes a consistent framework for measuring fair value on either a recurring or nonrecurring basis whereby inputs, used in valuation techniques, are assigned a hierarchical level. The following are the hierarchical levels of inputs to measure fair value:

•Level 1: Observable inputs that reflect quoted prices (unadjusted) for identical assets or liabilities in active markets.

•Level 2: Observable inputs that reflect quoted prices for identical assets or liabilities in markets that are not active; quoted prices for similar assets or liabilities in active markets; inputs other than quoted prices that are observable for the assets or liabilities; or inputs that are derived principally from or corroborated by observable market data by correlation or other means.

•Level 3: Unobservable inputs reflecting the Company’s own assumptions incorporated in valuation techniques used to determine fair value. These assumptions are required to be consistent with market participant assumptions that are reasonably available.

The following table sets forth the Company’s assets and liabilities that were measured at fair value as of March 31, 2024 and December 31, 2023 by level within the fair value hierarchy (in thousands):

 

	As of March 31, 2024
	(unaudited)								As of December 31, 2023
	Level I		Level II		Level III		Total		Level I		Level II		Level III		Total
Financial assets:
Cash equivalents:
Money market funds	$	42,890	$	—	$	—	$	42,890	$	164,848	$	—	$	—	$	164,848
Marketable securities:
US Treasury securities	—		345,762		—		345,762		—		243,162		—		243,162
US Government Agency securities	—		9,981		—		9,981		—		10,013		—		10,013
Prepaid expenses and other current assets:
Forward foreign exchange contracts	—		3,323		—		3,323		—		3,408		—		3,408
Long-term marketable securities:
US Treasury securities	—		226,366		—		226,366		—		211,063		—		211,063
Long-term other assets:
Forward foreign exchange contracts	—		164		—		164		—		519		—		519
Financial liabilities:
Accrued expenses and other short-term liabilities:
Forward foreign exchange contracts	—		(1,573)		—		(1,573)		—		(7)		—		(7)
Long-term other liabilities:
Forward foreign exchange contracts	—		(1,487)		—		(1,487)		—		(1,624)		—		(1,624)
Total financial assets (liabilities), net	$	42,890	$	582,536	$	—	$	625,426	$	164,848	$	466,534	$	—	$	631,382

See Note 5 “Convertible Senior Notes and Capped Call Transactions” for the carrying amount and estimated fair value of the Company's 2025 Notes as of March 31, 2024.