Leases

12 Months Ended

Dec. 31, 2022

The Company’s operating leases expire between 2027 and 2032 and are primarily for its corporate headquarters in San Mateo, California and Columbus, Ohio, as well as additional office space in Columbus, Ohio and Austin, Texas. Certain leases have rent abatement, escalating rent payment provisions, lease renewal options, and tenant allowances. Rent expense is recognized on a straight-line basis over the non-cancelable lease term, except when it is reasonably certain that the renewal option will be exercised. For leases where the Company is reasonably certain to exercise a renewal option, such option periods have been included in the determination of the Company’s ROU assets and lease liabilities on our consolidated balance sheets.

In connection with the Company’s lease agreements, letters of credit were issued on behalf of the Company for the benefit of the landlord in an aggregate amount of $3.4 million. The letters of credit are secured by certificates of deposit which are included in restricted cash on the consolidated balance sheets.

As of December 31, 2022, future minimum lease payments are as follows:


	Operating Leases
2023	$	15,091
2024	17,054
2025	17,544
2026	18,055
2027	17,745
Thereafter	34,816
Total undiscounted lease payments	120,305
Less: Tenant improvement receivables	(3,341)
Less: Present value adjustment	(16,177)
Operating lease liabilities	$	100,787

The Company did not have any material finance leases in any year presented. The Company’s operating lease expense consists of rent and variable lease payments. Variable lease payments such as common area maintenance and parking fees, were included in operating expenses. Rent expense for the Company’s short-term leases was immaterial for the years presented. Operating lease expense was as follows:


	Year Ended December 31,
		2020		2021		2022
Rent expense		$	5,264	$	7,756	$	15,916
Variable lease payments		1,357		1,650		3,696

Supplemental cash flow and non-cash information related to the Company’s operating leases was as follows:


	Year Ended December 31,
		2020		2021		2022

Cash paid for amounts included in the measurement of lease liabilities		$	4,158	$	4,553	$	11,084

Total right-of-use assets capitalized		5,506		83,463		1,826

Supplemental balance sheet information related to the Company’s operating leases was as follows:


									December 31,
									2022
Weighted-average remaining lease term (in years)									7.28
Weighted-average discount rate									3.85%