Fair value

9 Months Ended

Sep. 30, 2024

Fair Value Disclosures [Abstract]

Fair value

Fair value

Estimates of fair value of financial instruments not carried at fair value on a recurring basis are generally subjective in nature, and are determined as of a specific point in time based on the characteristics of the financial instruments and relevant market information. The Company’s financial assets and liabilities are generally short-term in nature; therefore, the carrying value of these items approximates their fair value. The following table summarizes certain fair value information as of September 30, 2024 and December 31, 2023 for financial assets and liabilities measured at fair value on a recurring basis, as well as estimated fair values of certain other financial assets and liabilities not measured on a recurring basis:

					Fair Value Hierarchy
	Balance		Estimated Fair Value		Level 1		Level 2		Level 3
	(in thousands)
September 30, 2024
Financial Assets:
Cash equivalents:
Money market funds	$	159,066	$	159,066	$	159,066	$	—	$	—
Long-term investments:
Marketable equity securities	$	1,379	$	1,379	$	1,379	$	—	$	—
Non-marketable equity securities(1)	$	1,250
Financial Liabilities:
Contingent consideration payable	$	7,501	$	7,501	$	—	$	—	$	7,501
December 31, 2023
Financial Assets:
Cash equivalents:
Money market funds	$	204,388	$	204,388	$	204,388	$	—	$	—
Long-term investments:
Marketable equity securities	$	421	$	421	$	421	$	—	$	—
Non-marketable equity securities(1)	$	1,250

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(1)Equity securities that do not have readily determinable fair value and are measured at cost.

Contingent consideration payable

The Company measures contingent consideration payable at fair value on a recurring basis using significant inputs that are not observable in the market. Fair value of the contingent consideration liability is based on the Monte-Carlo model which is primarily based on forecasts and discounted cash flow analysis. The Company believes its estimates and assumptions are reasonable; however, there is significant judgment involved. Changes in the fair value of contingent consideration payable primarily result from changes in the timing and amount of specific milestone estimates and changes in probability assumptions

with respect to the likelihood of achieving the various earnout criteria. These changes could cause a material impact to, and volatility in the Company’s operating results.

During the three months ended September 30, 2024, the Company completed the acquisition of JUXT, under which the Company committed to make a cash earnout payment subject to attainment of specific performance targets. The weighted average discount rates used to determine fair value of JUXT contingent consideration payable was 10.5%.

A reconciliation of the beginning and ending balances of Level 3 acquisition-related contingent consideration payable using significant unobservable inputs for the nine months ended September 30, 2024 is as follows:

	Amount
	(in thousands)
Contingent consideration payable as of January 1, 2024	$	—
Acquisition date fair value of contingent consideration payable — JUXT	7,480
Effect of net foreign currency exchange rate changes	21
Contingent consideration payable as of September 30, 2024	$	7,501

Investments in equity securities

The Company holds investments in public and privately-held entities. As the Company does not have either controlling interest or significant influence over these entities, investments are accounted using two different methods depending on the type of equity investments:

•Equity investments in public entities are measured and carried at fair value with any changes recognized in Other income/(expense), net in the condensed consolidated statements of income/(loss) and comprehensive income/(loss).

•Equity investments that do not have readily determinable fair value are accounted for under the fair value measurement alternative. Under the measurement alternative, the carrying value is measured at cost, less any impairment, plus or minus changes resulting from observable price changes in orderly transactions for identical or similar investments of the same issuer. All gains and losses on non-marketable securities, whether realized or unrealized, are recognized in Other income/(expense), net in the condensed consolidated statements of loss and comprehensive loss.

The Company classifies its investments in equity securities in Other noncurrent assets in the Company’s unaudited condensed consolidated balance sheets.

Investment in non-marketable equity securities held by the Company as of September 30, 2024 and December 31, 2023 represents investment in its related party, a company affiliated with the member of the Company’s Board of Directors, that does not have readily determinable fair values.