Investments and fair value measurements

12 Months Ended

Dec. 31, 2024

Fair Value Disclosures [Abstract]

Investments and fair value measurements

4. Investments and fair value measurements

The following tables present the Company’s assets and liabilities that are measured at fair value on a recurring or nonrecurring basis within the fair value hierarchy (in thousands):

As of December 31, 2024	Level 1		Level 2		Level 3
Assets
Cash equivalents(1):
Money market funds	$	136,771	$	—	$	—
Time deposits	9,809		—		—
U.S. government securities	—		1,686		—
Marketable securities:
U.S. government securities	—		163,844		—
Strategic investments	—		—		—
Total assets	$	146,580	$	165,530	$	—
Liabilities
Accrued expenses and other current liabilities:
Cash settled SARs	$	—	$	—	$	1
Other liabilities, non-current:
Cash settled SARs	—		—		6
Total liabilities	$	—	$	—	$	7

As of December 31, 2023	Level 1		Level 2		Level 3
Assets
Cash equivalents(1):
Money market funds	$	266,692	$	—	$	—
Marketable securities:
U.S. government securities	—		171,372		—
Strategic investments	—		—		10,311
Total assets	$	266,692	$	171,372	$	10,311
Other liabilities, non-current:
Cash settled SARs	$	—	$	—	$	48

(1) Included in cash and cash equivalents in the accompanying consolidated balance sheets, in addition to $42.3 million and $38.9 million of cash, as of December 31, 2024 and 2023, respectively.

A summary of the changes in the fair value of Level 3 financial instruments, of which vesting and remeasurement of 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— December 31, 2021	$	818	$	10,000
Vesting and remeasurement of SARs, net of exercises	(294)		—
Purchase of strategic investments	—		5,000
Amount reclassified from liability to equity upon exchange	(62)		—
Unrealized loss on strategic investments	—		(2,896)
Balance— December 31, 2022	462		12,104
Vesting and remeasurement of SARs	(161)		—
Exercises of SARs	(253)		—
Unrealized loss on strategic investments	—		(1,793)
Balance— December 31, 2023	48		10,311
Vesting and remeasurement of SARs	(34)		—
Exercises of SARs	(7)		—
Unrealized loss on strategic investments	—		(10,311)
Balance— December 31, 2024	$	7	$	—

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 during the quarter ended 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 second quarter of 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 $10.3 million impairment charge recognized during the second quarter of 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. There have been no observable price changes in orderly transactions for identical or similar investments of the same issuer during the periods presented.