Consolidated balance sheet components

9 Months Ended

Sep. 30, 2022

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Consolidated balance sheet components

5. Consolidated balance sheet components

Cash, cash equivalents, and marketable securities— The amortized cost, unrealized gains and losses, and estimated fair value of cash, cash equivalents, and marketable securities consisted of the following (in thousands):

As of September 30, 2022	Amortized cost		Unrealized Gains		Unrealized Losses		Fair Value
Cash and cash equivalents:
Cash	$	418,993	$	—	$	—	$	418,993
Money market funds	1,457		—		—		1,457
U.S. government securities	7,463		1		—		7,464
Total cash and cash equivalents	427,913		1		—		427,914
Marketable securities:
U.S. government securities	66,267		—		(215)		66,052
Total cash, cash equivalents, and marketable securities	$	494,180	$	1	$	(215)	$	493,966

The Company periodically evaluates its investments for other-than-temporary declines in fair value. The unrealized losses on available-for-sale securities were primarily due to unfavorable changes in interest rates subsequent to the initial purchase of these securities. No securities had been in a continuous unrealized loss position for twelve months or longer as of September 30, 2022. The Company expects to recover the full carrying value of its available-for-sale securities in an unrealized loss position as it does not intend or anticipate a need to sell these securities prior to recovering the associated unrealized losses. As a result, the Company does not consider any portion of the unrealized losses as of September 30, 2022 to represent an other-than temporary impairment.

As of September 30, 2022, the entirety of the Company’s marketable securities portfolio had contractual maturities of one year or less.

Prepaid expenses and other current assets— Prepaid expenses and other current assets consisted of the following (in thousands):

	September 30,		December 31,
	2022		2021
Prepaid expenses	$	9,904	$	12,465
Capitalized cloud computing costs, current	913		808
Short term deposits	115		745
Other current assets	2,546		1,909
Prepaid expenses and other current assets	$	13,478	$	15,927

Property and equipment, net— Property and equipment, net consisted of the following (in thousands):

	September 30,		December 31,
	2022		2021
Computers and equipment	$	7,843	$	6,798
Furniture and fixtures	4,843		4,701
Purchased software	383		383
Leasehold improvements	19,045		18,932
Construction in progress	18		18
Total property and equipment	32,132		30,832
Less accumulated depreciation and amortization	(24,316)		(20,945)
Property and equipment, net	$	7,816	$	9,887

Depreciation expense was $1.1 million for both the three months ended September 30, 2022 and 2021, and $3.4 million and $3.3 million for the nine months ended September 30, 2022 and 2021, respectively.

Capitalized software, net— Capitalized software, net consisted of the following (in thousands):

	September 30,		December 31,
	2022		2021
Capitalized software	$	58,637	$	43,804
Less accumulated amortization	(32,750)		(23,750)
Capitalized software, net	$	25,887	$	20,054

Amortization expense of capitalized software was $3.3 million and $2.5 million for the three months ended September 30, 2022 and 2021, respectively, and $9.0 million and $6.7 million for the nine months ended September 30, 2022 and 2021, respectively.

As of September 30, 2022, expected amortization expense for capitalized software over the remaining asset lives is as follows (in thousands):

Remainder of 2022	$	3,445
2023	12,272
2024	7,947
2025	2,223
Total expected amortization	$	25,887