Investments

9 Months Ended

Sep. 30, 2023

Investments, Debt and Equity Securities [Abstract]

Debt Securities

The Company’s investments in debt securities consisted of the following as of September 30, 2023 and December 31, 2022 (in thousands):


	September 30, 2023
	Cost		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value
U.S. treasury securities	$	205,977	$	4	$	(189)	$	205,792
U.S. agency and government sponsored securities	5,691		1		(1)		5,691

Corporate bonds	31,570		—		(50)		31,520

Total debt securities	$	243,238	$	5	$	(240)	$	243,003
Included in cash and cash equivalents	$	5,015	$	1	$	—	$	5,016
Included in marketable securities	$	238,223	$	4	$	(240)	$	237,987


	December 31, 2022
	Cost		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value
U.S. treasury securities	$	191,075	$	3	$	(2,598)	$	188,480
U.S. agency and government sponsored securities	4,999		—		(75)		4,924
Commercial paper	74,755		—		(232)		74,523
Corporate bonds	111,123		—		(1,214)		109,909
Asset-backed securities	11,945		—		(110)		11,835
Total debt securities	$	393,897	$	3	$	(4,229)	$	389,671

Included in marketable securities	$	393,897	$	3	$	(4,229)	$	389,671

The following table presents the gross unrealized losses and the fair value for those debt securities that were in an unrealized loss position for less than 12 months as of September 30, 2023 and December 31, 2022 (in thousands):


	September 30, 2023				December 31, 2022
	Gross Unrealized Losses		Fair Value		Gross Unrealized Losses		Fair Value
U.S. treasury securities	$	(189)	$	158,051	$	(2,598)	$	158,888
U.S. agency and government sponsored securities	(1)		2,969		(75)		4,924
Commercial paper	—		—		(232)		74,523
Corporate bonds	(50)		30,794		(1,214)		109,909
Asset-backed securities	—		—		(110)		11,835
Total	$	(240)	$	191,814	$	(4,229)	$	360,079

As of September 30, 2023, the total amortized cost basis of the Company’s available-for-sale securities exceeded its fair value by $0.2 million, which was primarily attributable to widening credit spreads and rising interest rates since purchase. The Company reviewed its available-for-sale securities and concluded that the decline in fair value was not related to credit losses and that it is more likely than not that the entire amortized cost of each security will be recoverable before the Company is required to sell them or when the security matures. Accordingly, during the three and nine months ended September 30, 2023, no allowance for credit losses was recorded and instead the unrealized losses are reported as a component of accumulated other comprehensive loss.

Equity Investments

The Company’s equity investments consisted of the following as of September 30, 2023 and December 31, 2022 (in thousands):


	Condensed Consolidated Balance Sheets Location	September 30, 2023		December 31, 2022
Money market funds(1)	Cash and cash equivalents	$	28,916	$	42,056
Marketable equity investments(1)	Marketable securities	8,255		29,643
Investment in non-marketable securities	Other non-current assets	10,000		—
Non-marketable equity investment measured using the measurement alternative(2)	Other non-current assets	4,000		4,000
Total		$	51,171	$	75,699

(1) Investments with readily determinable fair values.

(2) Investment in privately held company without readily determinable fair value.

In August 2023, the Company made an investment in a Simple Agreement for Future Equity (“SAFE”) of Plus Automation, Inc. (“Plus”) for consideration of $10.0 million, towards which the Company initially issued 1,490,313 shares of Class A common stock of the Company. In September 2023, the Company settled the consideration owed by issuing an additional 436,158 shares of Class A common stock. The Company’s investment in Plus represents less than 5% of Plus’s capitalization. The Company neither has a significant influence over Plus nor does its investment amount to a controlling financial interest in Plus.

The Company assesses its non-marketable equity investments quarterly for impairment. Adjustments and impairments are recorded in other income (expense), net on the condensed consolidated statements of operations.