Balance Sheet Components

6 Months Ended

Jun. 30, 2020

Balance Sheet Related Disclosures [Abstract]

Cash and Cash Equivalents, Restricted Cash, and Funds Held In Escrow, Including Funds In Transit

The following table reconciles cash and cash equivalents, restricted cash, and funds held in escrow that are restricted as reported in the condensed consolidated balance sheets to the total of the same amounts shown in the condensed consolidated statements of cash flows as of June 30, 2020 and December 31, 2019 (in thousands):


	June 30, 2020		December 31, 2019
Cash and cash equivalents	$	76,755	$	48,392
Restricted cash	2,740		2,490
Funds held in escrow, including funds in transit	129,553		108,721
Total cash, cash equivalents, and restricted cash as shown in the condensed consolidated statement of cash flows	$	209,048	$	159,603

Property and Equipment, Net

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


	June 30, 2020		December 31, 2019
Computer equipment and software	$	4,664	$	3,613
Internal-use software and platform development	16,027		12,726
Leasehold improvements	14,597		10,576
Office furniture and fixtures	3,354		2,454
Total property and equipment	38,642		29,369
Less: accumulated depreciation	(11,358)		(7,915)
Property and equipment, net	$	27,284	$	21,454

For the three months ended June 30, 2020 and 2019, depreciation expense related to property and equipment was $0.8 million and $0.6 million, respectively. For the six months ended June 30, 2020 and 2019, depreciation expense related to property and equipment was $1.5 million and $1.4 million, respectively.

For the three months ended June 30, 2020 and 2019, the Company capitalized $1.7 million and $1.4 million of internal-use software and platform development costs, respectively. For the six months ended June 30, 2020 and 2019, the Company capitalized $3.3 million and $2.5 million of internal-use software and platform development costs, respectively.

For the three and six months ended June 30, 2020, amortization expense related to the capitalized internal-use software and platform development costs was $1.1 million and $2.0 million, respectively. For the three and six months ended June 30, 2019, amortization expense related to the capitalized internal-use software and platform development costs was immaterial.

Intangible Assets, Net

All of the Company’s identifiable intangible assets were acquired in March 2014 from the Elance-oDesk Combination. For each of the three months ended June 30, 2020 and 2019, amortization expense of intangible assets was $0.7 million. For each of the six months ended June 30, 2020 and 2019, amortization expense of intangible assets was $1.3 million. Amortization expense is included in general and administrative expenses.

Accrued Expenses and Other Current Liabilities

Accrued expenses and other current liabilities consisted of the following (in thousands):


	June 30, 2020		December 31, 2019
Accrued compensation and related benefits	$	7,245	$	5,344
Accrued freelancer costs	1,552		622
Accrued indirect taxes	2,044		2,401
Accrued vendor expenses	9,720		5,485
Accrued payment processing fees	837		832
Operating lease liability, current	3,053		3,214
Other	913		444
Total accrued expenses and other current liabilities	$	25,364	$	18,342

In February 2020, the Company made changes to its organizational structure to better align with its business strategies and streamline the delivery of its end-to-end user experiences. During the six months ended June 30, 2020, the Company incurred and paid $1.6 million related to these initiatives.

Operating Leases

On January 1, 2020, the Company commenced an operating lease of one additional floor in its Chicago, Illinois office. As a result, the Company recognized a $1.7 million operating lease asset and $1.7 million operating lease liability on January 1, 2020, which are included in operating lease asset and operating lease liability, noncurrent, respectively, on the condensed consolidated balance sheet as of June 30, 2020. The lease has an initial term of five years with the option to renew for an additional five years at the end of the initial lease term. Total minimum lease payments under the initial term are $2.1 million. For the initial measurement of the present value of the lease payments associated with this lease, the Company used its incremental borrowing rate, which is a collateralized rate and approximates the rate at which the Company could borrow, on a secured basis for a similar term, an amount equal to its lease payments in a similar economic environment.

The Company includes lease payments associated with renewal options in its operating lease asset and liability only when it becomes reasonably certain that the Company will exercise the renewal option. The Company has not included renewal options for any of its operating leases in its determination of lease liabilities as of June 30, 2020.