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Investments and fair value measurements
 6 Months Ended
Jun. 30, 2024
Fair Value Disclosures [Abstract]  
Investments and fair value measurements
4. Investments and fair value measurements

The Company’s assets and liabilities that are measured at fair value on a recurring or nonrecurring basis within the fair value hierarchy are as follows (in thousands):
As of June 30, 2024
Level 1Level 2Level 3
Current assets:
Cash equivalents:
Money market funds$234,681 $— $— 
Marketable securities:
U.S. government securities$— $148,559 $— 
Non-current assets:
Strategic investments$— $— $— 
Non-current liabilities:
Cash settled stock appreciation rights
$— $— $16 

As of December 31, 2023
Level 1Level 2Level 3
Current assets:
Cash equivalents:
Money market funds$266,692 $— $— 
Marketable securities:
U.S. government securities$— $171,372 $— 
Non-current assets:
Strategic investments$— $— $10,311 
Non-current liabilities:
Cash settled stock appreciation rights$— $— $48 
The Company’s money market funds are classified within Level 1 of the fair value hierarchy because they are valued using quoted prices in active markets. The Company’s investments in U.S. government securities are classified within Level 2 of the fair value hierarchy because they have been valued using inputs other than quoted prices in active markets that are directly or indirectly observable. The Company’s strategic investment is classified within Level 3 of the fair value hierarchy because it has been valued using significant unobservable inputs for which the Company has been required to develop its own assumptions.
A summary of the changes in the fair value of Level 3 financial instruments, of which vesting and remeasurement of stock appreciation rights (SARs) and impairment of strategic investments are recognized in the consolidated statements of operations, is as follows (in thousands):
Stock Appreciation Rights
Strategic Investments
Balance— March 31, 2024
$22 $10,311 
Vesting and remeasurement of SARs
(6)— 
Unrealized loss on strategic investments
— (10,311)
Balance— June 30, 2024
$16 $— 
Balance— March 31, 2023
$264 $12,104 
Vesting and remeasurement of SARs19 — 
Exercises of SARs(253)— 
Unrealized loss on strategic investments— (1,793)
Balance— June 30, 2023
$30 $10,311 
Balance— December 31, 2023
$48 $10,311 
Vesting and remeasurement of SARs(25)— 
Exercises of SARs(7)— 
Unrealized loss on strategic investments— (10,311)
Balance— June 30, 2024$16 $— 
Balance— December 31, 2022
$462 $12,104 
Vesting and remeasurement of SARs(179)— 
Exercises of SARs(253)— 
Unrealized loss on strategic investments— (1,793)
Balance— June 30, 2023
$30 $10,311 
The Company evaluates its strategic investments for impairment at each reporting period. This evaluation considers several potential qualitative and quantitative impairment indicators including, but not limited to, the investee's financial metrics, whether there were any significant adverse changes in the economic environment or general market conditions of the geographies and industries in which the investee operates, and any other publicly available information that may affect the value of the investment. The Company determined that qualitative indicators of impairment existed as of June 30, 2024, and therefore performed an assessment of the fair value of its investment.
The fair value analysis involved the use of significant observable and unobservable assumptions, including the investee’s forecasted financial condition in relation to its outstanding obligations, ability to secure additional funds through various alternative scenarios, and a dual market and income approach involving revenue multiples of publicly traded peer companies and financial forecasts provided by the investee. Based on the assessment performed as of June 30, 2024, the Company recognized an impairment loss of $10.3 million during the three and six months ended June 30, 2024, such that the carrying value of its strategic investments was reduced to zero.
The cost basis of the strategic investments is $15.0 million. In addition to the impairment charge recognized during the three and six months ended June 30, 2024, the Company previously recognized impairment charges of $1.8 million during the second quarter of 2023 and $2.9 million during the third quarter of 2022.