UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

__________________________________________________

FORM 10-Q

__________________________________________________

(Mark One)

☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended September 30, 2020

or

☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from                to              

Commission file number: 001-39039

__________________________________________________

Cloudflare, Inc.

(Exact name of registrant as specified in its charter)

__________________________________________________

Delaware	27-0805829
(State or other jurisdiction of incorporation or organization)	(I.R.S. Employer Identification Number)

101 Townsend Street

San Francisco, California 94107

(Address of principal executive offices and zip code)

(888) 993-5273

(Registrant’s telephone number, including area code)

__________________________________________________

Securities registered pursuant to Section 12(b) of the Act:

Title of Each Class	Trading Symbol	Name of Each Exchange on Which Registered
Class A Common Stock, $0.001 par value	NET	The New York Stock Exchange

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.  Yes ☒  No ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes ☒  No ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

Large accelerated filer	☐	Accelerated filer	☐
Non-accelerated filer	☒	Smaller reporting company	☐
		Emerging growth company	☒

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).  Yes ☐  No ☒

As of November 3, 2020, 233,914,041 shares of the registrant's Class A common stock were outstanding and 73,386,945 shares of the registrant's Class B common stock were outstanding.

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TABLE OF CONTENTS

	PART I. FINANCIAL INFORMATION	Page
Item 1	Financial Statements (unaudited)	6
	Condensed Consolidated Balance Sheets as of September 30, 2020 and December 31, 2019	6
	Condensed Consolidated Statements of Operations for the Three and Nine Months Ended September 30, 2020 and 2019	7
	Condensed Consolidated Statements of Comprehensive Loss for the Three and Nine Months Ended September 30, 2020 and 2019	8
	Condensed Consolidated Statements of Redeemable Convertible Preferred Stock and Stockholders' Equity (Deficit) for the Three and Nine months ended September 30, 2020 and 2019	9
	Condensed Consolidated Statements of Cash Flows for the Nine months ended September 30, 2020 and 2019	13
	Notes to Condensed Consolidated Financial Statements	14
Item 2	Management's Discussion and Analysis of Financial Condition and Results of Operations	38
Item 3	Quantitative and Qualitative Disclosures about Market Risk	56
Item 4	Controls and Procedures	57
	PART II. OTHER INFORMATION
Item 1	Legal Proceedings	59
Item 1A	Risk Factors	59
Item 2	Unregistered Sales of Equity Securities and Use of Proceeds	102
Item 6	Exhibits	103
	Signatures	105

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SPECIAL NOTE REGARDING FORWARD-LOOKING STATEMENTS

This Quarterly Report on Form 10-Q contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, which statements involve substantial risks and uncertainties. Forward-looking statements generally relate to future events or our future financial or operating performance. In some cases, you can identify forward-looking statements because they contain words such as “may,” “will,” “should,” “expects,” “plans,” “anticipates,” “could,” “intends,” “target,” “projects,” “contemplates,” “believes,” “estimates,” “predicts,” “potential,” or “continue,” or the negative of these words, or other similar terms or expressions that concern our expectations, strategy, plans, or intentions.

Forward-looking statements contained in this Quarterly Report on Form 10-Q include, but are not limited to, statements about:

•the impact of the ongoing COVID-19 pandemic, including on our and our customers’, vendors’, and partners’ respective businesses and the markets in which we and our customers, vendors, and partners operate;

•our ability to retain and upgrade paying customers;

•our ability to attract new customers or convert free customers to paying customers;

•our future financial performance, including trends in revenue, costs of revenue, gross profit or gross margin, operating expenses, paying customers, and free cash flow;

•our ability to achieve or maintain profitability;

•the consequences we may face resulting from the activities of our customers and the actions we take in response, including associated theories of liability;

•the demand for our products or for solutions for security, performance, and reliability in general;

•possible harm caused by significant disruption of service, loss or unauthorized access to customers’ content, or the actual or perceived failure of our products to prevent security incidents;

•our ability to compete successfully in competitive markets;

•our ability to respond to rapid technological changes;

•our ability to continue to innovate and develop new products;

•our expectations and management of future growth;

•our ability to maintain existing co-location relationships, ISP partnerships, and other interconnection arrangements around the world;

•our ability to offer high-quality customer support;

•our ability to manage our global operations;

•our expectations of and ability to comply with applicable laws around the world;

•our ability to correctly estimate our tax obligations around the world;

•our ability to service the interest on our convertible senior notes and repay such notes, to the extent required;

•our ability to attract and retain key personnel and other highly qualified personnel;

•our ability to maintain our brand;

•our ability to prevent serious errors or defects across, and to otherwise maintain the uninterrupted operation of, our network;

•our ability to maintain, protect, and enhance our intellectual property; and

•our ability to successfully identify, acquire, and integrate companies and assets.

You should not rely upon forward-looking statements as predictions of future events. We have based the forward-looking statements contained in this Quarterly Report on Form 10-Q primarily on our current expectations and projections about future events and trends that we believe may affect our business, financial condition, results of

4

operations, and prospects. The outcome of the events described in these forward-looking statements is subject to risks, uncertainties, and other factors described in the section titled “Risk Factors” and elsewhere in this Quarterly Report on Form 10-Q. Readers are urged to carefully review and consider the various disclosures made in this Quarterly Report on Form 10-Q and in other documents we file from time to time with the Securities and Exchange Commission (the SEC) that disclose risks and uncertainties that may affect our business. Moreover, we operate in a very competitive and rapidly changing environment. New risks and uncertainties emerge from time to time, and it is not possible for us to predict all risks and uncertainties that could have an impact on the forward-looking statements contained in this Quarterly Report on Form 10-Q. We cannot assure you that the results, events, and circumstances reflected in the forward-looking statements will be achieved or occur, and actual results, events, or circumstances could differ materially from those described in the forward-looking statements.

The forward-looking statements made in this Quarterly Report on Form 10-Q relate only to events as of the date on which the statements are made. We undertake no obligation to update any forward-looking statements made in this Quarterly Report on Form 10-Q to reflect events or circumstances after the date of this Quarterly Report on Form 10-Q or to reflect new information or the occurrence of unanticipated events, except as required by law. We may not actually achieve the plans, intentions, or expectations disclosed in our forward-looking statements, and you should not place undue reliance on our forward-looking statements. Our forward-looking statements do not reflect the potential impact of any future acquisitions, mergers, dispositions, joint ventures, or investments we may make.

In addition, statements that “we believe” and similar statements reflect our beliefs and opinions on the relevant subject. These statements are based upon information available to us as of the date of this Quarterly Report on Form 10-Q, and while we believe such information forms a reasonable basis for such statements, such information may be limited or incomplete, and our statements should not be read to indicate that we have conducted an exhaustive inquiry into, or review of, all potentially available relevant information. These statements are inherently uncertain and investors are cautioned not to unduly rely upon these statements.

5

PART I—FINANCIAL INFORMATION

Item 1. FINANCIAL STATEMENTS

CLOUDFLARE, INC.

CONDENSED CONSOLIDATED BALANCE SHEETS

(in thousands, except par value)

(unaudited)

	September 30, 2020		December 31, 2019
Assets
Current assets:
Cash and cash equivalents	$	111,959	$	138,976
Available-for-sale securities	939,338		497,972
Accounts receivable, net	48,783		33,867
Contract assets	2,086		2,063
Restricted cash short-term	2,187		—
Prepaid expenses and other current assets	23,026		16,994
Total current assets	1,127,379		689,872
Property and equipment, net	122,423		101,466
Goodwill	17,167		4,083
Acquired intangible assets, net	3,500		31
Operating lease right-of-use assets	45,106		—
Deferred contract acquisition costs, noncurrent	37,714		25,184
Restricted cash	6,660		6,660
Other noncurrent assets	11,276		3,528
Total assets	$	1,371,225	$	830,824
Liabilities and Stockholders’ Equity
Current liabilities:
Accounts payable	$	16,995	$	11,463
Accrued expenses and other current liabilities	38,630		28,314
Operating lease liabilities	17,265		—
Liability for early exercise of unvested stock options	9,679		13,263
Deferred revenue	48,435		30,843
Total current liabilities	131,004		83,883
Convertible senior notes, net	374,511		—
Build-to-suit lease financing obligation	—		10,506
Operating lease liabilities, noncurrent	29,675		—
Deferred revenue, noncurrent	1,637		804
Other noncurrent liabilities	7,951		9,803
Total liabilities	544,778		104,996
Commitments and contingencies (Note 8)
Stockholders’ Equity:
Class A common stock; $0.001 par value; 2,250,000 shares authorized as of September 30, 2020 and December 31, 2019; 233,509 and 87,072 shares issued and outstanding as of September 30, 2020 and December 31, 2019, respectively	233		87
Class B common stock; $0.001 par value; 315,000 shares authorized as of September 30, 2020 and December 31, 2019; 73,520 and 213,101 shares issued and outstanding as of September 30, 2020 and December 31, 2019, respectively	69		207
Additional paid-in capital	1,212,074		1,027,179
Accumulated deficit	(386,499)		(301,706)
Accumulated other comprehensive income	570		61
Total stockholders’ equity	826,447		725,828
Total liabilities and stockholders’ equity	$	1,371,225	$	830,824

The accompanying notes are an integral part of these condensed consolidated financial statements.

6

CLOUDFLARE, INC.

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(in thousands, except per share data)

(unaudited)

	Three Months Ended September 30,				Nine Months Ended September 30,
	2020		2019		2020		2019
Revenue	$	114,162	$	73,941	$	305,133	$	203,092
Cost of revenue	27,005		16,033		71,990		45,225
Gross profit	87,157		57,908		233,143		157,867
Operating expenses:
Sales and marketing	55,982		45,538		154,323		112,191
Research and development	30,902		27,863		92,387		64,380
General and administrative	21,525		25,593		68,460		59,300
Total operating expenses	108,409		98,994		315,170		235,871
Loss from operations	(21,252)		(41,086)		(82,027)		(78,004)
Non-operating income (expense):
Interest income	1,316		1,079		5,742		2,822
Interest expense	(9,828)		(407)		(14,902)		(970)
Other income (expense), net	(208)		(651)		58		(1,030)
Total non-operating income (expense), net	(8,720)		21		(9,102)		822
Loss before income taxes	(29,972)		(41,065)		(91,129)		(77,182)
Provision for (benefit from) income taxes	(3,504)		(212)		(5,780)		491
Net loss	$	(26,468)	$	(40,853)	$	(85,349)	$	(77,673)
Net loss per share attributable to common stockholders, basic and diluted	$	(0.09)	$	(0.35)	$	(0.29)	$	(0.81)
Weighted-average shares used in computing net loss per share attributable to common stockholders, basic and diluted	301,689		118,056		298,628		96,393

The accompanying notes are an integral part of these condensed consolidated financial statements.

7

CLOUDFLARE, INC.

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS

(in thousands)

(unaudited)

	Three Months Ended September 30,				Nine Months Ended September 30,
	2020		2019		2020		2019
Net loss	$	(26,468)	$	(40,853)	$	(85,349)	$	(77,673)
Other comprehensive income (loss):
Change in unrealized gain (loss) on investments, net of tax	(654)		7		509		130
Other comprehensive income (loss)	(654)		7		509		130
Comprehensive loss	$	(27,122)	$	(40,846)	$	(84,840)	$	(77,543)

The accompanying notes are an integral part of these condensed consolidated financial statements.

8

CLOUDFLARE, INC.

CONDENSED CONSOLIDATED STATEMENTS OF REDEEMABLE CONVERTIBLE PREFERRED STOCK AND STOCKHOLDERS' EQUITY (DEFICIT)

(in thousands)

(unaudited)

	Three Months Ended September 30, 2020
	Redeemable convertible preferred stock			Class A common stock			Class B common stock			Additional paid-in capital		Accumulated deficit		Accumulated other comprehensive income (loss)		Total stockholders’ equity (deficit)
	Shares	Amount		Shares	Amount		Shares	Amount
Balance as of June 30, 2020	—	$	—	184,900	$	184	120,524	$	116	$	1,194,125	$	(360,031)	$	1,224	$	835,618
Issuance of common stock upon exercise of stock options	—	—		—	—		927	2		1,388		—		—		1,390
Repurchases of unvested common stock	—	—		(2)	—		—	—		—		—		—		—
Issuance of common stock related to early exercised stock options	—	—		—	—		42	—		—		—		—		—
Vesting of shares issued upon early exercise of stock options	—	—		—	—		—	—		1,140		—		—		1,140
Issuance of common stock related to settlement of RSUs	—	—		197	—		449	—		(1)		—		—		(1)
Tax withholding on RSU settlement	—	—		—	—		(8)	—		(299)		—		—		(299)
Conversion of Class B to Class A common stock	—	—		48,414	49		(48,414)	(49)		—		—		—		—
Stock-based compensation	—	—		—	—		—	—		15,721		—		—		15,721
Net loss	—	—		—	—		—	—		—		(26,468)		—		(26,468)
Other comprehensive income (loss)	—	—		—	—		—	—		—		—		(654)		(654)
Balance as of September 30, 2020	—	$	—	233,509	$	233	73,520	$	69	$	1,212,074	$	(386,499)	$	570	$	826,447

The accompanying notes are an integral part of these condensed consolidated financial statements.

9

CLOUDFLARE, INC.

CONDENSED CONSOLIDATED STATEMENTS OF REDEEMABLE CONVERTIBLE PREFERRED STOCK AND STOCKHOLDERS' EQUITY (DEFICIT)

(in thousands)

(unaudited)

	Three Months Ended September 30, 2019
	Redeemable convertible preferred stock			Class A common stock			Class B common stock			Additional paid-in capital		Accumulated deficit		Accumulated other comprehensive income (loss)		Total stockholders’ equity (deficit)
	Shares	Amount		Shares	Amount		Shares	Amount
Balance as of June 30, 2019	165,658	$	331,521	—	$	—	92,686	$	86	$	87,111	$	(232,698)	$	66	$	(145,435)
Issuance of common stock upon initial public offering, net of underwriting discounts and issuance costs	—	—		40,250	40		—	—		565,001		—		—		565,041
Conversion of redeemable convertible preferred stock to common stock upon initial offering	(165,658)	(331,521)		31,381	31		134,277	135		331,355		—		—		331,521
Conversion of redeemable convertible preferred stock warrants into common stock warrants and issuance of common stock upon net exercise of common stock warrants	—	—		—	—		174	—		3,135		—		—		3,135
Issuance of common stock upon exercise of stock options	—	—		9	1		1,108	1		1,833		—		—		1,835
Repurchases of unvested common stock	—	—		—	—		(33)	—		—		—		—		—
Issuance of common stock related to early exercised stock options	—	—		—	—		295	—		—		—		—		—
Vesting of shares upon early exercise of stock options	—	—		—	—		—	—		951		—		—		951
Conversion of Class B to Class A common stock	—	—		15,199	15		(15,199)	(15)		—						—
Stock-based compensation	—	—		—	—		—	—		24,196		—		—		24,196
Net loss	—	—		—	—		—	—		—		(40,853)		—		(40,853)
Other comprehensive income (loss)	—	—		—	—		—	—		—		—		7		7
Balance as of September 30, 2019	—	$	—	86,839	$	87	213,308	$	207	$	1,013,582	$	(273,551)	$	73	$	740,398

The accompanying notes are an integral part of these condensed consolidated financial statements.

10

CLOUDFLARE, INC.

CONDENSED CONSOLIDATED STATEMENTS OF REDEEMABLE CONVERTIBLE PREFERRED STOCK AND STOCKHOLDERS' EQUITY (DEFICIT)

(in thousands)

(unaudited)

	Nine Months Ended September 30, 2020
	Redeemable convertible preferred stock			Class A common stock			Class B common stock			Additional paid-in capital		Accumulated deficit		Accumulated other comprehensive income		Total stockholders’ equity
	Shares	Amount		Shares	Amount		Shares	Amount
Balance as of December 31, 2019	—	$	—	87,072	$	87	213,101	$	207	$	1,027,179	$	(301,706)	$	61	$	725,828
Cumulative effect adjustment from adoption of ASC 842	—	—		—	—		—	—		—		556		—		556
Issuance of common stock in connection with acquisition	—	—		107	—		—	—		1,821		—		—		1,821
Issuance of unvested restricted stock in connection with acquisition	—	—		841	—		—	—		—		—		—		—
Issuance of common stock upon exercise of stock options	—	—		—	—		3,509	4		5,721		—		—		5,725
Repurchases of unvested common stock	—	—		(39)	—		—	—		—		—		—		—
Issuance of common stock related to early exercised stock options	—	—		—	—		78	—		—		—		—		—
Vesting of shares issued upon early exercise of stock options	—	—		—	—		—	2		3,649		—		—		3,651
Issuance of common stock related to settlement of RSUs	—	—		279	—		2,094	2		(2)		—		—		—
Tax withholding on RSU settlement	—	—		(11)	—		(410)	—		(7,606)		—		—		(7,606)
Conversion of Class B to Class A common stock	—	—		144,852	146		(144,852)	(146)		—		—		—		—
Equity component of convertible senior notes, net of issuance costs	—	—		—	—		—	—		200,812		—		—		200,812
Purchases of capped calls related to convertible senior notes	—	—		—	—		—	—		(67,333)		—		—		(67,333)
Common stock issued under employee stock purchase plan	—	—		421	—		—	—		5,447		—		—		5,447
Tax withholding on common stock issued under employee stock purchase plan	—	—		(13)	—		—	—		(376)		—		—		(376)
Stock-based compensation	—	—		—	—		—	—		42,762				—		42,762
Net loss	—	—		—	—		—	—		—		(85,349)		—		(85,349)
Other comprehensive income (loss)	—	—		—	—		—	—		—		—		509		509
Balance as of September 30, 2020	—	$	—	233,509	$	233	73,520	$	69	$	1,212,074	$	(386,499)	$	570	$	826,447

The accompanying notes are an integral part of these condensed consolidated financial statements.

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CLOUDFLARE, INC.

CONDENSED CONSOLIDATED STATEMENTS OF REDEEMABLE CONVERTIBLE PREFERRED STOCK AND STOCKHOLDERS' EQUITY (DEFICIT)

(in thousands)

(unaudited)

	Nine Months Ended September 30, 2019
	Redeemable convertible preferred stock			Class A common stock			Class B common stock			Additional paid-in capital		Accumulated deficit		Accumulated other comprehensive income (loss)		Total stockholders’ equity (deficit)
	Shares	Amount		Shares	Amount		Shares	Amount
Balance as of December 31, 2018	165,658	$	331,521	—	$	—	91,542	$	85	$	82,345	$	(195,878)	$	(57)	$	(113,505)
Issuance of common stock upon initial public offering, net of underwriting discounts and issuance costs	—	—		40,250	40		—	—		565,001		—		—		565,041
Conversion of redeemable convertible preferred stock to common stock upon initial public offering	(165,658)	(331,521)		31,381	31		134,277	135		331,355		—		—		331,521
Conversion of redeemable convertible preferred stock warrants into common stock warrants and issuance of common stock upon net exercise of common stock warrants	—	—		—	—		174	—		3,135		—		—		3,135
Issuance of common stock in connection with acquisition	—	—		—	—		7	—		18		—		—		18
Issuance of common stock upon exercise of stock options	—	—		9	1		1,689	2		2,899		—		—		2,902
Repurchases of unvested common stock	—	—		—	—		(73)	—		—		—		—		—
Issuance of common stock related to early exercised stock options	—	—		—	—		891	—		—		—		—		—
Vesting of shares issued upon early exercise of stock options	—	—		—	—		—	—		2,389		—		—		2,389
Conversion of Class B to Class A common stock	—	—		15,199	15		(15,199)	(15)		—		—		—		—
Stock-based compensation	—	—		—	—		—	—		26,440		—		—		26,440
Net loss	—	—		—	—		—	—		—		(77,673)		—		(77,673)
Other comprehensive income (loss)	—	—		—	—		—	—		—		—		130		130
Balance as of September 30, 2019	—	$	—	86,839	87		213,308	$	207	$	1,013,582	$	(273,551)	$	73	$	740,398

The accompanying notes are an integral part of these condensed consolidated financial statements.

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CLOUDFLARE, INC.

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(in thousands)

(unaudited)

	Nine Months Ended September 30,
	2020		2019
Cash Flows From Operating Activities
Net loss	$	(85,349)	$	(77,673)
Adjustments to reconcile net loss to cash used in operating activities:
Depreciation and amortization expense	35,029		20,923
Non-cash operating lease costs	14,134		—
Amortization of deferred contract acquisition costs	12,085		7,722
Stock-based compensation expense	40,091		25,012
Amortization of debt discount and issuance costs	12,865		—
Net accretion of discounts and amortization of premiums on available-for-sale securities	248		(1,137)
Deferred income taxes	(6,808)		—
Provision for bad debt	2,794		861
Change in fair value of redeemable convertible preferred stock warrant liability	—		1,517
Other	(73)		27
Changes in operating assets and liabilities, net of effect of acquisitions:
Accounts receivable, net	(17,710)		(7,911)
Contract assets	(23)		82
Deferred contract acquisition costs	(24,615)		(12,923)
Prepaid expenses and other current assets	(6,131)		(7,525)
Other noncurrent assets	(930)		(1,686)
Accounts payable	4,648		(994)
Accrued expenses and other current liabilities	8,545		5,652
Operating lease liabilities	(15,131)		—
Deferred revenue	18,425		13,614
Other noncurrent liabilities	(410)		4,096
Net cash used in operating activities	(8,316)		(30,343)
Cash Flows From Investing Activities
Purchases of property and equipment	(45,962)		(30,981)
Capitalized internal-use software	(14,333)		(11,332)
Cash paid for acquisitions, net of cash acquired	(13,691)		—
Purchases of available-for-sale securities	(956,147)		(157,075)
Sales of available-for-sale securities	—		1,978
Maturities of available-for-sale securities	515,044		132,398
Other investing activities	395		30
Net cash used in investing activities	(514,694)		(64,982)
Cash Flows From Financing Activities
Proceeds from initial public offering, net of underwriting discounts and commissions	—		570,544
Gross proceeds from issuance of convertible senior notes	575,000		—
Purchases of capped calls related to convertible senior notes	(67,333)		—
Cash paid for issuance costs on convertible senior notes	(12,542)		—
Proceeds from the exercise of stock options	5,724		2,899
Proceeds from the early exercise of stock options	180		2,871
Repurchases of unvested common stock	(113)		(155)
Payments on note payable	(200)		(218)
Proceeds from the issuance of common stock for employee stock purchase plan	5,447		—
Proceeds from build-to-suit lease financing obligation drawdown	—		58
Payments of deferred offering costs	—		(3,734)
Payment of tax withholding obligation on RSU settlement	(7,607)		—
Payment of tax withholding obligation on common stock issued under employee stock purchase plan	(376)		—
Net cash provided by financing activities	498,180		572,265
Net increase (decrease) in cash, cash equivalents, and restricted cash	(24,830)		476,940
Cash, cash equivalents, and restricted cash, beginning of period	145,636		31,426
Cash, cash equivalents, and restricted cash, end of period	$	120,806	$	508,366
Supplemental Disclosure of Cash Flow Information:
Cash paid for interest	$	34	$	573
Cash paid for income taxes, net of refunds	$	623	$	1,013
Cash paid for operating lease liabilities	$	15,256	$	—
Supplemental Disclosure of Non-cash Investing and Financing Activities:
Stock-based compensation capitalized for software development	$	2,560	$	1,428
Accounts payable and accrued expenses related to property and equipment additions	$	4,076	$	1,291
Vesting of early exercised stock options	$	3,651	$	2,389
Deferred offering costs, accrued but not paid	$	—	$	1,770
Indemnity holdback consideration associated with business combinations	$	2,187	$	—
Issuance of common stock related to an acquisition	$	1,821	$	—
Operating lease right-of-use assets obtained in exchange for operating lease liabilities	$	7,975	$	—
Derecognition of build-to-suit lease	$	9,886	$