Property and Equipment, Net

9 Months Ended

Sep. 30, 2023

Property, Plant and Equipment [Abstract]

Property and Equipment, Net

6. Property and Equipment, Net

Property and equipment, net of accumulated depreciation and amortization, consisted of the following:

	Estimated Useful Life	As of December 31,		As of September 30,
		2022		2023
	(in years)	(in millions)
Computer equipment	3	$	15	$	16
Furniture and fixtures	5	13		11
Leasehold improvements	2-8	22		21
Capitalized internal-use software	2-5	25		106
Total property and equipment		75		154
Less: accumulated depreciation and amortization		(37)		(46)
Total property and equipment, net		$	38	$	108

Depreciation and amortization expense related to the Company’s property and equipment was $3 million and $5 million for the three months ended September 30, 2022 and 2023, respectively, and $9 million and $13 million for the nine months ended September 30, 2022 and 2023, respectively.

The Company capitalized $3 million and $54 million of internal-use software costs, inclusive of a not material amount and $41 million of stock-based compensation expense, during the three months ended September 30, 2022 and 2023, respectively, and $6 million and $81 million, inclusive of a not material amount and $41 million, during the nine months ended September 30, 2022 and 2023, respectively. Included in depreciation and amortization expense above is amortization expense related to internal-use software within cost of revenue in the condensed consolidated statements of operations of $1 million and $1 million for the three months ended September 30, 2022 and 2023, respectively, and $3 million and $3 million for the nine months ended September 30, 2022 and 2023, respectively.

Geographic Information

The Company’s long-lived assets, net of accumulated depreciation and amortization, by geographic area were as follows:

	As of December 31,		As of September 30,
	2022		2023
	(in millions)
United States	$	65	$	122
Canada	13		18
Other	1		1
Total long-lived assets, net	$	79	$	141

Long-lived assets consist of property and equipment, net and operating lease right-of-use assets. Long-lived assets attributed to the United States, Canada, and other international geographies are based on the country in which the asset is located.