Fair Value Measurement

3 Months Ended

Mar. 31, 2022

Fair Value Disclosures [Abstract]

Fair Value Measurement

Fair Value Measurement

The Company categorizes assets and liabilities recorded at fair value on the consolidated balance sheet based on the level of judgment associated with inputs used to measure their fair value. For assets and liabilities measured at fair value, fair value is the price that would be received from selling an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. When determining fair value, the Company considers the principal or most advantageous market in which the Company would transact, and the Company considers assumptions that market participants would use when pricing the asset or liability.

The three levels of inputs that may be used to measure fair value are:

•Level 1 — Quoted prices in active markets for identical assets or liabilities.

•Level 2 — Observable inputs other than Level 1 prices, such as quoted prices for similar assets and liabilities in active markets or quoted prices in less active market. All significant inputs used in the valuations are observable or can be directly or indirectly through market corroboration, for substantially the full term of the assets or liabilities.

•Level 3 — Unobservable inputs are based on assumptions used to measure assets and liabilities at fair value. The inputs require significant management judgment or estimation. The Company monitors and review the inputs to ensure the fair value measurements are reasonable and consistent with market experience in similar asset classes.

The following table summarize the Company’s assets measured at fair value on a recurring basis, by level, within the fair value hierarchy (in thousands):

	March 31, 2022
	Level 1		Level 2		Level 3		Total
Cash equivalents:
Money market fund	$	6,826	$	—	$	—	$	6,826
Total cash equivalents	6,826		—		—		6,826
Short-term investments:
Money market fund	7		—		—		7
Commercial paper	—		92,774		—		92,774
Corporate debt securities	—		132,545		—		132,545
Total short-term investments	7		225,319		—		225,326
Total assets measured at fair value	$	6,833	$	225,319	$	—	$	232,152

	December 31, 2021
	Level 1		Level 2		Level 3		Total
Cash equivalents:
Money market fund	$	391	$	—	$	—	$	391
Total cash equivalents	391		—		—		391
Short-term investments:
Money market fund	7		—		—		7
Commercial paper	—		130,983		—		130,983
Corporate debt securities	—		139,367		—		139,367
Total short-term investments	7		270,350		—		270,357
Total assets measured at fair value	$	398	$	270,350	$	—	$	270,748

Cash equivalents consist primarily of money market funds with original maturities of three months or less at the time of purchase, and the carrying amount is a reasonable estimate of fair value. Short-term investments represent highly liquid commercial paper and corporate debt securities with maturities greater than 90 days at the date of purchase. Marketable securities with maturities greater than one year are classified as current assets and were not significant for all periods presented. Unrealized gains and losses on the Company’s short-term investments were not significant as of March 31, 2022 and 2021 and therefore, the amortized cost of the Company’s short-term investments approximated their fair value.