Leases

6 Months Ended

Jun. 30, 2022

The Company leases facilities under non-cancellable operating leases primarily in the United States, South Africa, the United Kingdom and Canada. The Company’s operating leases have remaining lease terms of between less than one to 12 years, some of which include options to extend the leases for up to five years, and some of which include options to terminate the leases within one year. These options to extend the terms of the Company’s operating leases were not deemed to be reasonably certain of exercise as of lease commencement and are therefore not included in the determination of their respective non-cancellable lease terms. The future lease payments due under non-cancellable operating lease arrangements contain fixed rent increases over the term of the lease.

In October 2020, the Company entered into an agreement with an unrelated party to sublease a portion of the Company’s office space in the United States. In October 2021, the Company entered into an agreement with the same party to sublease additional office space in the same facility. The agreements are coterminous. As of June 30, 2022, the subleases were classified as operating leases and each had a remaining term of 1.3 years, with scheduled annual rent increases and no option to extend or renew the sublease term. Sublease income is recognized on a straight-line basis over the term of the subleases as a reduction to expense incurred by the Company under the associated head lease.

In August 2021, the Company entered into an agreement with an unrelated party to sublease a portion of the Company’s office space in Denver, Colorado, as part of its overall real estate management strategy. As of June 30, 2022, this sublease was classified as an operating lease and had a remaining term of 2.4 years with scheduled annual rent increases and no option to extend or renew the sublease term. Sublease income is recognized on a straight-line basis over the sublease term as a reduction to expense incurred by the Company under the associated master lease. In connection with the execution of this agreement, the Company recognized a non-cash loss on sublease of $4.8 million in the third quarter of 2021.

The following table presents the components of lease expense on the Company’s condensed consolidated statements of operations and comprehensive loss for each of the periods indicated.


	Three Months Ended June 30,				Six Months Ended June 30,
	2022		2021		2022		2021

	(in thousands)
Operating lease expense	$	5,611	$	4,345	$	11,372	$	8,627
Short-term lease expense	157		10		268		54
Variable lease expense	1,546		1,593		3,369		3,029
Sublease income	(228)		(56)		(456)		(110)
Total lease expense	$	7,086	$	5,892	$	14,553	$	11,600

As of June 30, 2022, for the Company’s operating leases, the weighted-average remaining lease term was 7.5 years and the weighted-average discount rate was 11.2%. For the six months ended June 30, 2022 and 2021, cash paid for amounts included in the measurement of operating lease liabilities was $13.1 million and $9.2 million, respectively. For each of the six months ended June 30, 2022 and 2021, lease liabilities arising from obtaining right-of use assets were $1.3 million and $11.3 million, respectively.

The following table presents the maturities of the Company’s operating lease liabilities as of the date indicated, and excludes the impact of future sublease income totaling $4.0 million in aggregate.


	June 30, 2022
	(in thousands)
Remainder of 2022	$	11,152
2023	21,960
2024	21,707
2025	17,890
2026	18,404
Thereafter	69,751
Total lease payments	160,864
Less: imputed interest	(54,836)
Total lease liability	$	106,028

As of June 30, 2022, the Company had additional operating leases for facilities that have not yet commenced with future minimum lease payments of approximately $17.5 million. Each of these operating leases will commence during the fiscal year ending 2022 and have lease terms of approximately 6 to 8 years.