Recurring Fair Value Measurements

9 Months Ended

Sep. 30, 2022

Fair Value Disclosures [Abstract]

Recurring Fair Value Measurements

3.Recurring Fair Value Measurements

The following table sets forth the Company’s financial instruments as of September 30, 2022 and December 31, 2021, which are measured at fair value on a recurring basis by level within the fair value hierarchy (in thousands):

	September 30, 2022
	Level 1		Level 2		Level 3		Total
Financial assets:
Money market funds	$	34,081	$	—	$	—	$	34,081
U.S. treasury securities		—		228,440		—		228,440
U.S. government agency securities		—		97,359		—		97,359
Total assets measured at fair value	$	34,081	$	325,799	$	—	$	359,880

	December 31, 2021
	Level 1		Level 2		Level 3		Total
Financial assets:
Money market funds	$	111,221	$	—	$	—	$	111,221
Total assets measured at fair value	$	111,221	$	—	$	—	$	111,221

The Company's money market funds are classified as Level 1 because they are measured using observable inputs from active markets for identical assets.

The Company's U.S. treasury securities and U.S. government agency securities are classified as Level 2 because they are measured with inputs that are either directly or indirectly observable for the asset which include quoted prices for similar assets in active markets and quoted prices for identical or similar assets in markets that are not active.

There were no assets or liabilities classified as Level 3 as of September 30, 2022 and December 31, 2021.

There were no transfers between Level 1, Level 2 or Level 3 categories during the periods presented.

The following tables summarize the estimated fair value of the Company's cash equivalents, available-for-sale securities classified as short-term investments, and associated unrealized gains and losses (in thousands):

	September 30, 2022
	Amortized Cost		Unrealized Gains		Unrealized Losses			Estimated Fair Value
Cash equivalents:
Money market funds	$	34,081	$	—	$	—		$	34,081
U.S. government agency securities		72,322		—		—			72,322
Total cash equivalents		106,403		—		—			106,403
Short-term investments
U.S. treasury securities		228,802		1		(363	)		228,440
U.S. government agency securities		25,067		—		(30	)		25,037
Total short-term investments	$	253,869	$	1	$	(393	)	$	253,477

	December 31, 2021
	Amortized Cost		Unrealized Gains		Unrealized Losses		Estimated Fair Value
Cash equivalents:
Money market funds	$	111,221	$	—	$	—	$	111,221
Total cash equivalents	$	111,221	$	—	$	—	$	111,221

The following table summarizes the maturities of our cash equivalents and available-for-sale securities as of September 30, 2022 (in thousands):

	Amortized Cost		Fair Value
Mature in one year or less	$	360,272	$	359,880
Total	$	360,272	$	359,880

The following table presents the breakdown of the Company's available-for-sale securities with gross unrealized losses and the duration that those losses had been unrealized as September 30, 2022 (in thousands):

	September 30, 2022
	Unrealized Losses Less Than 12 Months					Unrealized Losses 12 Months or Greater				Total
	Fair Value		Unrealized Losses			Fair Value		Unrealized Losses		Fair Value		Unrealized Losses
Financial assets:
U.S. treasury securities	$	218,452	$	(363	)	$	—	$	—	$	218,452	$	(363	)
U.S. government agency securities		25,037		(30	)		—		—		25,037		(30	)
Total financial assets	$	243,489	$	(393	)	$	—	$	—	$	243,489	$	(393	)

The Company did not have available-for-sale securities with gross unrealized losses as of December 31, 2021.

The Company regularly reviews the changes to the rating of its securities and monitors the surrounding economic conditions to assess the risk of expected credit losses. As of September 30, 2022 and December 31, 2021, there were no securities that were in an unrealized loss position for more than 12 months. As of September 30, 2022, the unrealized losses on the Company’s investments in U.S. treasury securities and U.S. government securities were caused by interest rate increases. The current credit ratings are all within the guidelines of the investment policy of the Company and the Company does not expect the issuers to settle any security at a price less than the amortized cost basis of the investment with the contractual cash flows of these investments guaranteed by the issuer. No allowance for credit losses has been recorded since it is not more likely than not that the Company will be required to sell the investments before recovery of their amortized cost basis.