Redeemable Convertible Preferred Stock

12 Months Ended

Dec. 31, 2021

Temporary Equity Disclosure [Abstract]

Immediately prior to the completion of the IPO, all shares of redeemable convertible preferred stock then outstanding were converted into 153,937,730 shares of common stock on a one-to-one basis and then reclassified into Class B common stock, and their carrying value of $5.6 billion was reclassified into stockholders' equity (deficit). As of December 31, 2021, there were no shares of redeemable convertible preferred stock issued and outstanding.

As of December 31, 2020, there were 154,055,430 authorized shares and 153,937,730 issued and outstanding shares of redeemable convertible preferred stock with aggregate liquidation preference of $326.6 million.

The following table summarizes the Company’s redeemable convertible preferred stock as of December 31, 2020 (in thousands, except per share amounts):


	December 31, 2020
	Shares Authorized	Shares Outstanding	Original Issue Price		Liquidation Preference		Carrying Value

Series A	21,428	21,311	$	0.05	$	1,059	$	397,172
Series B	36,229	36,229	0.14		5,000		675,223
Series C	15,307	15,307	0.46		7,000		285,280
Series D	30,663	30,663	1.01		31,000		571,476
Series E	21,292	21,292	2.35		50,000		396,927
Series F	8,709	8,709	3.16		27,500		162,439
Series G	9,151	9,151	6.01		55,000		172,344
Series H	11,276	11,276	13.30		150,000		234,235
Total	154,055	153,938			$	326,559	$	2,895,096

Preferred Stock Transactions

In January 2020, an investor, also a member of the Board of Directors of the Company (the Board) at that time, entered into a secondary transaction to sell 26,210 shares of redeemable convertible Series A preferred stock, 1,314,830 shares of redeemable convertible Series B preferred stock, and 448,110 shares of redeemable convertible Series C preferred stock to a new investor for a total price in excess of the fair value of the shares. The sale was facilitated by the Company and deemed compensatory to the seller. The amount paid by the investor to acquire the shares was $25.5 million, while the fair value of the shares on the transaction date was $14.7 million. The excess value of $10.8 million was recognized as stock-based compensation expense by the Company in general and administrative expense in its consolidated statements of operations.

See Note 11 for a discussion of stock-based compensation recognized from the secondary transaction involving the repurchases of redeemable convertible preferred stock (as described above) and common stock from the Company’s founders and employees.