INVESTMENTS IN DEBT SECURITIES

6 Months Ended

Jun. 30, 2023

Investments, Debt and Equity Securities [Abstract]

The Company's short-term and long-term investments as of June 30, 2023 were as follows (in thousands):


	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value
Short-term debt securities:
U.S. agency securities	$	125,673	$	5	$	(2,303)	$	123,375
Corporate bonds	311,245		2		(5,706)		305,541
Commercial paper	16,586		—		—		16,586
Municipal securities	5,585		—		(44)		5,541
Certificates of deposit	157,500		—		—		157,500
U.S. government securities	512,339		13		(7,186)		505,166
Foreign government securities	8,262		—		(141)		8,121
Total	$	1,137,190	$	20	$	(15,380)	$	1,121,830

Long-term debt securities:
U.S. agency securities	$	29,682	$	—	$	(1,141)	$	28,541
Corporate bonds	72,120		15		(1,452)		70,683
Municipal securities	10,905		—		(523)		10,382
U.S. government securities	194,117		—		(6,493)		187,624
Foreign government securities	—		—		—		—
Total	$	306,824	$	15	$	(9,609)	$	297,230

The Company's short-term and long-term investments as of December 31, 2022 were as follows (in thousands):


	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value
Short-term debt securities:
U.S. agency securities	$	96,545	$	16	$	(2,120)	$	94,441
Corporate bonds	368,110		2		(7,475)		360,637
Commercial paper	31,503		—		—		31,503
Municipal securities	9,884		—		(191)		9,693
Certificates of deposit	6,400		—		—		6,400
U.S. government securities	580,568		6		(8,937)		571,637
Foreign government securities	7,795		—		(255)		7,540
Total	$	1,100,805	$	24	$	(18,978)	$	1,081,851

Long-term debt securities:
U.S. agency securities	$	74,097	$	—	$	(3,782)	$	70,315
Corporate bonds	245,891		6		(9,171)		236,726
Municipal securities	10,415		3		(664)		9,754
U.S. government securities	268,902		—		(13,210)		255,692
Foreign government securities	1,000		—		(58)		942
Total	$	600,305	$	9	$	(26,885)	$	573,429

The amortized cost of investments classified as cash equivalents approximated the fair value due to the short-term nature of the investments.

The Company's gross unrealized losses and fair values for those investments that were in an unrealized loss position as of June 30, 2023 and December 31, 2022, aggregated by investment category and the length of time that individual securities have been in a continuous loss position, were as follows (in thousands):


	June 30, 2023
	Less than 12 Months				Greater than 12 Months				Total
	Fair Value		Gross Unrealized Losses		Fair Value		Gross Unrealized Losses		Fair Value		Gross Unrealized Losses
Short-term debt securities:
U.S. agency securities	$	31,429	$	(77)	$	81,787	$	(2,226)	$	113,216	$	(2,303)
Corporate bonds	31,531		(136)		269,500		(5,570)		301,031		(5,706)

Municipal securities	—		—		4,941		(44)		4,941		(44)

U.S. government securities	194,642		(771)		269,263		(6,415)		463,904		(7,186)
Foreign government securities	—		—		8,121		(141)		8,121		(141)
Total	$	257,602	$	(984)	$	633,612	$	(14,396)	$	891,213	$	(15,380)

Long-term debt securities:
U.S. agency securities	$	10,613	$	(72)	$	17,928	$	(1,069)	$	28,541	$	(1,141)
Corporate bonds	22,584		(169)		43,968		(1,283)		66,552		(1,452)
Municipal securities	1,436		(64)		8,946		(459)		10,382		(523)
U.S. government securities	87,631		(634)		99,993		(5,859)		187,623		(6,493)
Foreign government securities	—		—		—		—		—		—
Total	$	122,264	$	(939)	$	170,835	$	(8,670)	$	293,098	$	(9,609)


	December 31, 2022
	Less than 12 Months				Greater than 12 Months				Total
	Fair Value		Gross Unrealized Losses		Fair Value		Gross Unrealized Losses		Fair Value		Gross Unrealized Losses
Short-term debt securities:
U.S. agency securities	$	8,572	$	(24)	$	84,628	$	(2,096)	$	93,200	$	(2,120)
Corporate bonds	34,795		(423)		320,748		(7,052)		355,543		(7,475)

Municipal securities	587		(13)		5,811		(178)		6,398		(191)

U.S. government securities	146,974		(839)		394,880		(8,098)		541,854		(8,937)
Foreign government securities	—		—		7,540		(255)		7,540		(255)
Total	$	190,928	$	(1,299)	$	813,607	$	(17,679)	$	1,004,535	$	(18,978)

Long-term debt securities:
U.S. agency securities	$	11,501	$	(20)	$	58,814	$	(3,762)	$	70,315	$	(3,782)
Corporate bonds	33,862		(262)		201,791		(8,909)		235,653		(9,171)
Municipal securities	467		(33)		8,784		(631)		9,251		(664)
U.S. government securities	54,405		(590)		201,288		(12,620)		255,693		(13,210)
Foreign government securities	—		—		942		(58)		942		(58)
Total	$	100,235	$	(905)	$	471,619	$	(25,980)	$	571,854	$	(26,885)

The Company does not intend to sell nor anticipate that it will be required to sell these securities before recovery of the amortized cost basis. Unrealized losses on available-for-sale debt securities were determined not to be related to credit losses, therefore, an allowance for credit losses is not required.

The contractual maturities of the Company's short-term and long-term investments as of June 30, 2023 were as follows (in thousands):


	Amortized Cost		Fair Value
Due in one year or less	$	1,137,190	$	1,121,830
Due in one to five years	306,824		297,230
Total	$	1,444,014	$	1,419,060

CUSTOMER FUNDS

The following table presents the assets underlying customer funds (in thousands):


	June 30, 2023		December 31, 2022
Cash	$	2,010,707	$	1,748,983
Customer funds in transit (i)	59,517		—
Cash equivalents:
Money market funds	578,778		851,296
Reverse repurchase agreement (ii)	703,654		580,045





Total customer funds	$	3,352,656	$	3,180,324

(i) The customer funds in transit were received subsequent to June 30, 2023.

(ii) The Company has accounted for the reverse repurchase agreement with a third-party as an overnight lending arrangement, collateralized by the securities subject to the repurchase agreement. The Company classified the amounts due from the counterparty as cash equivalents due to their short-term nature.