CHEGG, INC, 10-Q filed on 11/1/2022
Quarterly Report
v3.22.2.2
Cover Page - shares
 9 Months Ended
Sep. 30, 2022
Oct. 25, 2022
Cover [Abstract]    
Document Type 10-Q  
Document Quarterly Report true  
Document Period End Date Sep. 30, 2022  
Document Transition Report false  
Entity File Number 001-36180  
Entity Registrant Name CHEGG, INC  
Entity Incorporation, State or Country Code DE  
Entity Tax Identification Number 20-3237489  
Entity Address, Address Line One 3990 Freedom Circle  
Entity Address, City or Town Santa Clara  
Entity Address, State or Province CA  
Entity Address, Postal Zip Code 95054  
City Area Code 408  
Local Phone Number 855-5700  
Title of 12(b) Security Common stock, $0.001 par value per share  
Trading Symbol CHGG  
Security Exchange Name NYSE  
Entity Current Reporting Status Yes  
Entity Interactive Data Current Yes  
Entity Filer Category Large Accelerated Filer  
Entity Small Business false  
Entity Emerging Growth Company false  
Entity Shell Company false  
Entity Common Stock, Shares Outstanding   125,477,315
Entity Central Index Key 0001364954  
Current Fiscal Year End Date --12-31  
Document Fiscal Year Focus 2022  
Document Fiscal Period Focus Q3  
Amendment Flag false  
v3.22.2.2
CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($)
$ in Thousands
Sep. 30, 2022
Dec. 31, 2021
Current assets    
Cash and cash equivalents $ 69,349 $ 854,078
Short-term investments 871,408 691,781
Accounts receivable, net of allowance of $298 and $153 at September 30, 2022 and December 31, 2021, respectively 22,187 17,850
Prepaid expenses 33,441 35,093
Other current assets 35,196 23,846
Total current assets 1,031,581 1,622,648
Long-term investments 286,781 745,993
Textbook library, net 0 11,241
Property and equipment, net 202,362 169,938
Goodwill 589,702 289,763
Intangible assets, net 80,646 40,566
Right of use assets 18,144 18,062
Deferred tax assets 166,965 1,365
Other assets 21,680 19,670
Total assets 2,397,861 2,919,246
Current liabilities    
Accounts payable 14,902 11,992
Deferred revenue 60,475 35,143
Accrued liabilities 68,096 67,209
Total current liabilities 143,473 114,344
Long-term liabilities    
Convertible senior notes, net 1,187,513 1,678,155
Long-term operating lease liabilities 12,347 12,447
Other long-term liabilities 7,996 7,383
Total long-term liabilities 1,207,856 1,697,985
Total liabilities 1,351,329 1,812,329
Commitments and contingencies (Note 9)
Stockholders' equity:    
Preferred stock, $0.001 par value per share, 10,000,000 shares authorized, no shares issued and outstanding 0 0
Common stock, $0.001 par value per share: 400,000,000 shares authorized; 125,423,860 and 136,951,956 shares issued and outstanding at September 30, 2022 and December 31, 2021, respectively 125 137
Additional paid-in capital 1,220,688 1,449,305
Accumulated other comprehensive loss (101,870) (5,334)
Accumulated deficit (72,411) (337,191)
Total stockholders' equity 1,046,532 1,106,917
Total liabilities and stockholders' equity $ 2,397,861 $ 2,919,246
v3.22.2.2
CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($)
$ in Thousands
Sep. 30, 2022
Dec. 31, 2021
Statement of Financial Position [Abstract]    
Allowance for doubtful accounts receivable, current $ 298 $ 153
Preferred stock, par value (in dollars per share) $ 0.001 $ 0.001
Preferred stock, shares authorized (in shares) 10,000,000 10,000,000
Preferred stock, shares issued (in shares) 0 0
Preferred stock, shares outstanding (in shares) 0 0
Common stock, par value (in dollars per share) $ 0.001 $ 0.001
Common stock, shares authorized (in shares) 400,000,000 400,000,000
Common stock, shares issued (in shares) 125,423,860 136,951,956
Common stock, shares outstanding (in shares) 125,423,860 136,951,956
v3.22.2.2
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($)
shares in Thousands, $ in Thousands
 3 Months Ended 9 Months Ended
Sep. 30, 2022
Sep. 30, 2021
Sep. 30, 2022
Sep. 30, 2021
Income Statement [Abstract]        
Net revenues $ 164,739 $ 171,942 $ 561,704 $ 568,798
Cost of revenues 45,203 67,102 145,972 199,194
Gross profit 119,536 104,840 415,732 369,604
Operating expenses:        
Research and development 45,426 43,269 150,321 130,995
Sales and marketing 31,803 27,239 109,580 75,139
General and administrative 53,742 33,971 154,547 111,560
Total operating expenses 130,971 104,479 414,448 317,694
(Loss) income from operations (11,435) 361 1,284 51,910
Interest expense, net and other income (expense), net:        
Interest expense, net (1,525) (1,633) (4,738) (5,263)
Other income (expense), net 97,258 8,670 105,247 (66,618)
Total interest expense, net and other income (expense), net 95,733 7,037 100,509 (71,881)
Income (loss) before benefit from (provision for) income taxes 84,298 7,398 101,793 (19,971)
Benefit from (provision for) income taxes 167,264 (747) 162,987 (5,793)
Net income (loss) $ 251,562 $ 6,651 $ 264,780 $ (25,764)
Net income (loss) per share        
Basic (in dollars per share) $ 1.99 $ 0.05 $ 2.07 $ (0.18)
Diluted (in dollars per share) $ 1.23 $ 0.05 $ 1.31 $ (0.18)
Weighted average shares used to compute net income (loss) per share        
Basic (in shares) 126,132 144,746 128,166 140,775
Diluted (in shares) 148,045 146,699 151,221 140,775
v3.22.2.2
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) - USD ($)
$ in Thousands
 3 Months Ended 9 Months Ended
Sep. 30, 2022
Sep. 30, 2021
Sep. 30, 2022
Sep. 30, 2021
Statement of Comprehensive Income [Abstract]        
Net income (loss) $ 251,562 $ 6,651 $ 264,780 $ (25,764)
Other comprehensive loss        
Change in net unrealized loss on investments, net of tax (1,946) (455) (17,196) (1,974)
Change in foreign currency translation adjustments, net of tax (31,056) (127) (79,340) (1,108)
Other comprehensive loss (33,002) (582) (96,536) (3,082)
Total comprehensive income (loss) $ 218,560 $ 6,069 $ 168,244 $ (28,846)
v3.22.2.2
CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY - USD ($)
$ in Thousands
Total
Cumulative Effect, Period of Adoption, Adjustment
Common Stock
Additional Paid-In Capital
Additional Paid-In Capital
Cumulative Effect, Period of Adoption, Adjustment
Accumulated Other Comprehensive Loss
Accumulated Deficit
Accumulated Deficit
Cumulative Effect, Period of Adoption, Adjustment
Beginning balance (in shares) at Dec. 31, 2020     129,344,000          
Beginning balance at Dec. 31, 2020 $ 609,635 $ (378,138) $ 129 $ 1,030,577 $ (465,006) $ 1,530 $ (422,601) $ 86,868
Increase (Decrease) in Stockholders' Equity [Roll Forward]                
Issuance of common stock in connection with equity offering, net of offering costs (in shares)     10,975,000          
Issuance of common stock upon exercise of stock options and ESPP 1,091,466   $ 11 1,091,455        
Equity component on conversions of 2023 notes and 2025 notes (236,920)     (236,920)        
Issuance of common stock upon conversions of 2023 notes (in shares)     2,983,000          
Issuance of common stock upon conversions of 2023 notes 235,521   $ 3 235,518        
Net proceeds from capped call related to conversions of 2023 notes and 2025 notes 67,769     67,769        
Issuance of common stock upon exercise of stock options and ESPP (in shares)     178,000          
Issuance of common stock upon exercise of stock options and ESPP 5,371     5,371        
Net share settlement of equity awards (in shares)     1,421,000          
Net share settlement of equity awards (89,337)   $ 2 (89,339)        
Share-based compensation expense 77,996     77,996        
Other comprehensive loss (3,082)         (3,082)    
Net income (25,764)           (25,764)  
Ending balance (in shares) at Sep. 30, 2021     144,901,000          
Ending balance at Sep. 30, 2021 1,354,517   $ 145 1,717,421   (1,552) (361,497)  
Beginning balance (in shares) at Jun. 30, 2021     144,621,000          
Beginning balance at Jun. 30, 2021 1,337,882   $ 145 1,706,855   (970) (368,148)  
Increase (Decrease) in Stockholders' Equity [Roll Forward]                
Issuance of common stock upon exercise of stock options and ESPP (in shares)     14,000          
Issuance of common stock upon exercise of stock options and ESPP 106     106        
Net share settlement of equity awards (in shares)     266,000          
Net share settlement of equity awards (14,697)     (14,697)        
Share-based compensation expense 25,157     25,157        
Other comprehensive loss (582)         (582)    
Net income 6,651           6,651  
Ending balance (in shares) at Sep. 30, 2021     144,901,000          
Ending balance at Sep. 30, 2021 $ 1,354,517   $ 145 1,717,421   (1,552) (361,497)  
Beginning balance (in shares) at Dec. 31, 2021 136,951,956   136,952,000          
Beginning balance at Dec. 31, 2021 $ 1,106,917   $ 137 1,449,305   (5,334) (337,191)  
Increase (Decrease) in Stockholders' Equity [Roll Forward]                
Repurchases of common stock (in shares)     (12,709,000)          
Repurchases of common stock (323,528)   $ (13) (323,515)        
Issuance of common stock in connection with equity offering, net of offering costs (in shares)     319,000          
Issuance of common stock upon exercise of stock options and ESPP 4,557     4,557        
Net share settlement of equity awards (in shares)     862,000          
Net share settlement of equity awards (12,775)   $ 1 (12,776)        
Share-based compensation expense 103,117     103,117        
Other comprehensive loss (96,536)         (96,536)    
Net income $ 264,780           264,780  
Ending balance (in shares) at Sep. 30, 2022 125,423,860   125,424,000          
Ending balance at Sep. 30, 2022 $ 1,046,532   $ 125 1,220,688   (101,870) (72,411)  
Beginning balance (in shares) at Jun. 30, 2022     126,344,000          
Beginning balance at Jun. 30, 2022 $ 818,791   $ 126 1,211,506   (68,868) (323,973)  
Increase (Decrease) in Stockholders' Equity [Roll Forward]                
Repurchases of common stock (in shares) (1,146,803)   (1,147,000)          
Repurchases of common stock $ (23,078)   $ (1) (23,077)        
Net share settlement of equity awards (in shares)     227,000          
Net share settlement of equity awards (2,555)     (2,555)        
Share-based compensation expense 34,814     34,814        
Other comprehensive loss (33,002)         (33,002)    
Net income $ 251,562           251,562  
Ending balance (in shares) at Sep. 30, 2022 125,423,860   125,424,000          
Ending balance at Sep. 30, 2022 $ 1,046,532   $ 125 $ 1,220,688   $ (101,870) $ (72,411)  
v3.22.2.2
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($)
$ in Thousands
 9 Months Ended
Sep. 30, 2022
Sep. 30, 2021
Cash flows from operating activities    
Net income (loss) $ 264,780 $ (25,764)
Adjustments to reconcile net income (loss) to net cash provided by operating activities:    
Print textbook depreciation expense 1,610 9,024
Other depreciation and amortization expense 64,295 46,273
Share-based compensation expense 98,341 76,157
Amortization of debt issuance costs 4,084 4,509
Gain on foreign currency remeasurement of purchase consideration (4,628) 0
Impairment on lease related assets 3,411 0
(Gain) loss on early extinguishment of debt (93,519) 78,152
Loss on change in fair value of derivative instruments, net 0 7,148
Loss from write-off of property and equipment 3,117 1,857
Tax benefit related to release of valuation allowance (174,601) 0
Deferred income taxes 6,376 563
Gain on sale of strategic equity investment 0 (12,496)
(Gain) loss on textbook library, net (4,976) 8,765
Operating lease expense, net of accretion 4,746 4,527
Restructuring charges 0 1,851
Other non-cash items 619 (65)
Change in assets and liabilities, net of effect of acquisition of businesses:    
Accounts receivable (2,259) 3,593
Prepaid expenses and other current assets 13,251 (31,070)
Other assets 15,926 9,472
Accounts payable (1,728) 1,820
Deferred revenue 11,434 17,363
Accrued liabilities (23,323) 10,552
Other liabilities (5,240) (4,108)
Net cash provided by operating activities 181,716 208,123
Cash flows from investing activities    
Purchases of property and equipment (79,242) (67,126)
Purchases of textbooks (3,815) (10,666)
Proceeds from disposition of textbooks 2,503 7,815
Purchases of investments (534,008) (1,574,060)
Maturities of investments 783,912 893,315
Purchase of strategic equity investment (6,000) 0
Proceeds from sale of strategic equity investment 0 16,076
Acquisition of businesses, net of cash acquired (401,125) (7,891)
Net cash used in investing activities (237,775) (742,537)
Cash flows from financing activities    
Proceeds from common stock issued under stock plans, net 4,558 5,373
Payment of taxes related to the net share settlement of equity awards (12,776) (89,339)
Proceeds from equity offering, net of offering costs 0 1,091,466
Repayment of convertible senior notes (401,203) (300,755)
Proceeds from exercise of convertible senior notes capped call 0 69,005
Repurchases of common stock (323,528) 0
Payment of escrow related to acquisition 0 (7,451)
Net cash (used in) provided by financing activities (732,949) 768,299
Effect of exchange rate changes 4,628 0
Net (decrease) increase in cash, cash equivalents and restricted cash (784,380) 233,885
Cash, cash equivalents and restricted cash, beginning of period 855,893 481,715
Cash, cash equivalents and restricted cash, end of period 71,513 715,600
Supplemental cash flow data:    
Interest 875 1,053
Income taxes, net of refunds 5,530 5,610
Cash paid for amounts included in the measurement of lease liabilities:    
Operating cash flows from operating leases 6,908 5,934
Right of use assets obtained in exchange for lease obligations:    
Operating leases 7,603 0
Non-cash investing and financing activities:    
Accrued purchases of long-lived assets 4,101 1,837
Issuance of common stock related to repayment of convertible senior notes 0 235,521
Reconciliation of cash, cash equivalents and restricted cash:    
Cash and cash equivalents 69,349 713,837
Restricted cash included in other current assets 63 0
Restricted cash included in other assets 2,101 1,763
Total cash, cash equivalents and restricted cash $ 71,513 $ 715,600
v3.22.2.2
Background and Basis of Presentation
 9 Months Ended
Sep. 30, 2022
Organization, Consolidation and Presentation of Financial Statements [Abstract]  
Background and Basis of Presentation Background and Basis of Presentation
Company and Background

Chegg, Inc. (Chegg, the Company, we, us, or our), headquartered in Santa Clara, California, was incorporated as a Delaware corporation in July 2005. Millions of people all around the world Learn with Chegg. Our mission is to improve learning and learning outcomes by putting students first. We support life-long learners starting with their academic journey and extending into their careers. The Chegg platform provides products and services to support learners to help them better understand their academic course materials, and also provides personal and professional development skills training, to help them achieve their learning goals.

Basis of Presentation

The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with generally accepted accounting principles in the United States (“GAAP”) and applicable rules and regulations of the U.S. Securities and Exchange Commission (“SEC”) regarding interim financial reporting. The condensed consolidated financial statements include the results of Chegg, Inc. and its wholly-owned subsidiaries. Significant intercompany balances and transactions have been eliminated. In the opinion of management, the accompanying unaudited condensed consolidated financial statements contain all adjustments, including normal recurring adjustments, necessary to present fairly our financial position as of September 30, 2022, our results of operations, results of comprehensive income (loss), and stockholders' equity for the three and nine months ended September 30, 2022 and 2021 and cash flows for the nine months ended September 30, 2022 and 2021. Our results of operations, results of comprehensive income (loss), stockholders' equity, and cash flows for the nine months ended September 30, 2022 are not necessarily indicative of the results to be expected for the full year.

We have a single operating and reportable segment and operating unit structure. The condensed consolidated financial statements and related financial information should be read in conjunction with the audited consolidated financial statements and the related notes thereto that are included in our Annual Report on Form 10-K for the year ended December 31, 2021 (the Annual Report on Form 10-K) filed with the SEC.

There have been no material changes to our significant accounting policies as compared to the significant accounting policies described in our Annual Report on Form 10-K.

Use of Estimates

The preparation of financial statements in conformity with GAAP requires management to make estimates, judgments, and assumptions that affect the reported amounts of assets and liabilities; the disclosure of contingent liabilities at the date of the financial statements; and the reported amounts of revenues and expenses during the reporting periods. We base our estimates on historical experience, knowledge of current business conditions, and various other factors we believe to be reasonable under the circumstances. These estimates are based on management’s knowledge about current events and expectations about actions we may undertake in the future. Actual results could differ from these estimates, and such differences could be material to our financial position and results of operations. There have been no material changes in our use of estimates during the nine months ended September 30, 2022 as compared to the use of estimates disclosed in Part II, Item 8 “Consolidated Financial Statements and Supplementary Data” contained in our Annual Report on Form 10-K for the year ended December 31, 2021.
Condensed Consolidated Statements of Operations Details

Other income (expense), net consists of the following (in thousands):
Three Months Ended
September 30,		Nine Months Ended
September 30,
2022202120222021
Gain (loss) on early extinguishment of debt(1)
$93,519 $— $93,519 $(78,152)
Loss on change in fair value of derivative instruments, net— — — (7,148)
Gain on sale of strategic equity investments— 7,158 — 12,496 
Gain on foreign currency remeasurement of purchase consideration(2)
— — 4,628 — 
Interest income3,737 1,485 7,246 5,385 
Other2 27 (146)801 
Total other income (expense), net
$97,258 $8,670 $105,247 $(66,618)
(1) For further information, see Note 8, “Convertible Senior Notes.”
(2) For further information, see Note 5, “Acquisition.”

Impairment of Lease Related Assets

Right of use (ROU) assets are evaluated for impairment whenever events or changes in circumstances indicate that the carrying amount may not be recoverable. During the nine months ended September 30, 2022, we announced the closure of our San Francisco office and determined that the carrying amount of the ROU asset was not recoverable. As a result, we recorded an impairment charge of $3.4 million, consisting of a $2.0 million impairment of a ROU asset and $1.4 million write-off of leasehold improvements, included in general and administrative expense on our condensed consolidated statement of operations. Our intent and ability to sublease the office as well as the local market conditions were factored in when measuring the amount of impairment.

Recent Accounting Pronouncements

Recently Issued Accounting Pronouncements Not Yet Adopted

There were no accounting pronouncements issued during the nine months ended September 30, 2022 that would have an impact on our financial statements.

Recently Adopted Accounting Pronouncements

In October 2021, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) 2021-08, Business Combinations-Accounting for Contract Assets and Contract Liabilities from Contracts with Customers (Topic 805). The new guidance requires contract assets and contract liabilities acquired in a business combination to be recognized in accordance with Accounting Standards Codification (ASC) Topic 606 as if the acquirer had originated the contracts. The standard is effective for fiscal years beginning after December 15, 2022, including interim periods within those fiscal years, and early adoption is permitted. We early adopted ASU 2021-08 on January 1, 2022 and applied it to our acquisition of Busuu. The most significant impacts were an increase in contract liabilities, contained within deferred revenue, and goodwill.

In May 2021, the FASB issued ASU 2021-04, Issuer’s Accounting for Certain Modifications or Exchanges of Freestanding Equity-Classified Written Call Options. ASU 2021-04 aims to clarify and reduce diversity in an issuer’s accounting for modifications or exchanges of freestanding equity-classified written call options that remain equity classified after modification or exchange based on the economic substance of the modification or exchange. Early adoption is permitted and the guidance must be applied prospectively to all modifications or exchanges that occur on or after the date of adoption. The guidance is effective for annual periods beginning after December 15, 2021. We adopted ASU 2021-04 on January 1, 2022 under the prospective method of adoption and there was no impact to our results of operations as we did not modify or exchange any freestanding equity-classified written call options.
v3.22.2.2
Revenues
 9 Months Ended
Sep. 30, 2022
Revenue from Contract with Customer [Abstract]  
Revenues Revenues
Revenue Recognition

Revenues are recognized when control of the promised goods or services is transferred to our customers, in an amount that reflects the consideration we expect to be entitled to in exchange for those goods or services. The majority of our revenues are recognized over time as services are performed, with certain revenues being recognized at a point in time.

The following tables set forth our total net revenues for the periods shown disaggregated for our Chegg Services and Required Materials product lines (in thousands, except percentages):
 Three Months Ended
September 30,		Change
 20222021$%
Chegg Services$159,264 $146,790 $12,474 8 %
Required Materials5,475 25,152 (19,677)(78)
Total net revenues$164,739 $171,942 $(7,203)(4)

 Nine Months Ended September 30,Change
 20222021$%
Chegg Services$533,152 $482,654 $50,498 10 %
Required Materials28,552 86,144 (57,592)(67)
Total net revenues$561,704 $568,798 $(7,094)(1)

During the three and nine months ended September 30, 2022, we recognized $35.2 million and $33.8 million, respectively, of revenues that were included in our deferred revenue balance at the beginning of each respective reporting period. During the three and nine months ended September 30, 2021 we recognized $31.3 million and $32.6 million, respectively, of revenues that were included in our deferred revenue balance at the beginning of each respective reporting period. During the three and nine months ended September 30, 2022, we recognized no operating lease income and $5.1 million of operating lease income, respectively, from print textbook rentals that we owned. During the three and nine months ended September 30, 2021, we recognized $6.2 million and $26.9 million, respectively, of operating lease income from print textbook rentals that we owned. The decreases in operating lease income are primarily due to the transition of our Required Materials product line. For further information, refer to Note 7, “Required Materials Transition.”

Contract Balances

The following table presents our accounts receivable, net, contract assets and deferred revenue balances (in thousands, except percentages):
 Change
 September 30,
2022		December 31, 2021$%
Accounts receivable, net$22,187 $17,850 $4,337 24 %
Contract assets12,710 14,231 (1,521)(11)
Deferred revenue60,475 35,143 25,332 72 
During the nine months ended September 30, 2022 our accounts receivable, net balance increased by $4.3 million, or 24%, primarily due to timing of billings and seasonality of our business. During the nine months ended September 30, 2022, our contract assets balance decreased by $1.5 million, or 11%, primarily due to our Thinkful service. During the nine months ended September 30, 2022, our deferred revenue balance increased by $25.3 million, or 72%, primarily due to acquired deferred revenue in conjunction with our acquisition of Busuu, increased bookings, and seasonality of our business.
v3.22.2.2
Net Income (Loss) Per Share
 9 Months Ended
Sep. 30, 2022
Earnings Per Share [Abstract]  
Net Income (Loss) Per Share Net Income (Loss) Per Share
The following table sets forth the computation of basic and diluted net income (loss) per share (in thousands, except per share amounts):
Three Months Ended
September 30,		Nine Months Ended
September 30,
2022202120222021
Basic
Numerator:
Net income (loss)
$251,562 $6,651 $264,780 $(25,764)
Denominator:
Weighted average shares used to compute net income (loss) per share, basic
126,132 144,746 128,166 140,775 
Net income (loss) per share, basic
$1.99 $0.05 $2.07 $(0.18)
Diluted
Numerator:
Net income (loss)$251,562 $6,651 $264,780 $(25,764)
Convertible senior notes activity, net of tax(1)
(69,042)— (66,630)— 
Net income (loss), diluted
$182,520 $6,651 $198,150 $(25,764)
Denominator:
Weighted average shares used to compute net income (loss) per share, basic
126,132 144,746 128,166 140,775 
Shares related to stock plan activity504 1,953 674 — 
Shares related to convertible senior notes21,409 — 22,381 — 
Weighted average shares used to compute net income (loss) per share, diluted
148,045 146,699 151,221 140,775 
Net income (loss) per share, diluted
$1.23 $0.05 $1.31 $(0.18)
(1) Includes the gain on early extinguishment on our 2026 notes and interest expense on our notes, net of tax. For further information, see Note 8, “Convertible Senior Notes.”

The following potential weighted-average shares of common stock outstanding were excluded from the computation of diluted net income (loss) per share because including them would have been anti-dilutive (in thousands):
Three Months Ended
September 30,		Nine Months Ended
September 30,
2022202120222021
Shares related to stock plan activity7,534 849 4,148 2,727 
Shares related to convertible senior notes— 22,875 — 23,876 
Total common stock equivalents7,534 23,724 4,148 26,603 
v3.22.2.2
Cash and Cash Equivalents, and Investments and Fair Value Measurements
 9 Months Ended
Sep. 30, 2022
Cash and Cash Equivalents [Abstract]  
Cash and Cash Equivalents, and Investments and Fair Value Measurements Cash and Cash Equivalents, and Investments and Fair Value Measurements
The following tables show our cash and cash equivalents, and investments’ fair value level classification, adjusted cost, unrealized gain, unrealized loss and fair value as of September 30, 2022 and December 31, 2021 (in thousands except for fair value levels):
 September 30, 2022
 Fair Value LevelAdjusted CostUnrealized GainUnrealized LossFair Value
Cash and cash equivalents:   
Cash$35,131 $— $— $35,131 
Money market fundsLevel 134,218 — — 34,218 
Total cash and cash equivalents$69,349 $— $— $69,349 
Short-term investments:   
Commercial paperLevel 2$11,720 $— $(114)$11,606 
Corporate debt securitiesLevel 2770,221 (12,945)757,276 
U.S. treasury securitiesLevel 1104,671 — (2,145)102,526 
Total short-term investments$886,612 $— $(15,204)$871,408 
Long-term investments:   
Corporate debt securitiesLevel 2$156,687 $— $(4,065)$152,622 
U.S. treasury securitiesLevel 1101,890 — (1,907)99,983 
Agency bondsLevel 234,119 57 — 34,176 
Total long-term investments$292,696 $57 $(5,972)$286,781 

 December 31, 2021
 Fair Value LevelAdjusted CostUnrealized GainUnrealized LossFair Value
Cash and cash equivalents:   
Cash$30,324 $— $— $30,324 
Money market fundsLevel 1823,754 — — 823,754 
Total cash and cash equivalents$854,078 $— $— $854,078 
Short-term investments:   
Commercial paperLevel 2$124,211 $2 $(33)$124,180 
Corporate debt securitiesLevel 2552,609 36 (546)552,099 
Agency bondsLevel 215,500 2 — 15,502 
Total short-term investments$692,320 $40 $(579)$691,781 
Long-term investments:   
Corporate debt securitiesLevel 2$724,517 $— $(3,277)$721,240 
U.S. treasury securitiesLevel 124,860 — (107)24,753 
Total long-term investments$749,377 $— $(3,384)$745,993 

As of September 30, 2022, we determined that the declines in the market value of our investment portfolio were not driven by credit related factors. During the three and nine months ended September 30, 2022 and 2021 we did not recognize any losses on our investments due to credit related factors. During the three and nine months ended September 30, 2022 and 2021, our realized gains and losses on investments were not significant.
The following table shows our cash equivalents and investments' adjusted cost and fair value by contractual maturity as of September 30, 2022 (in thousands):
 Adjusted CostFair Value
Due in 1 year or less$886,612 $871,408 
Due in 1-2 years292,696 286,781 
Investments not due at a single maturity date34,218 34,218 
Total$1,213,526 $1,192,407 

Investments not due at a single maturity date in the preceding table consisted of money market funds.

Strategic Investment

In July 2022, we completed an investment of $6.0 million in Knack Technologies, Inc. (Knack), a privately held U.S. based peer-to-peer tutoring platform for higher education institutions. We do not have the ability to exercise significant influence over Knack's operating and financial policies and have elected to account for our investment at cost as it does not have a readily determinable fair value. We did not record any impairment charges during the three months ended September 30, 2022, as there were no significant identified events or changes in circumstances that would be considered an indicator for impairment. There were no observable price changes in orderly transactions for the identical or similar investments of the same issuer during the three months ended September 30, 2022.

Financial Instruments Not Recorded at Fair Value on a Recurring Basis

We report our financial instruments at fair value with the exception of the notes. The estimated fair value of the notes was determined based on the trading price of the notes as of the last day of trading for the period. We consider the fair value of the notes to be a Level 2 measurement due to the limited trading activity. The estimated fair value of the 2026 notes as of September 30, 2022 and December 31, 2021 was $370.0 million and $840.0 million, respectively. The estimated fair value of the 2025 notes as of September 30, 2022 and December 31, 2021 was $595.0 million and $682.2 million, respectively. For further information on the notes, refer to Note 8, “Convertible Senior Notes.”
v3.22.2.2
Acquisition
 9 Months Ended
Sep. 30, 2022
Business Combination and Asset Acquisition [Abstract]  
Acquisition Acquisition
On January 13, 2022, we completed our acquisition of 100% of the outstanding shares of Busuu Online S.L (Busuu) in cash, an online language learning company that offers a comprehensive solution through a combination of self-paced lessons, live classes with expert tutors and the ability to learn and practice with members of the Busuu language learning community. The acquisition helps to expand our existing offerings and global reach through language learning, allowing us to drive further into international markets.

The following table presents the preliminary allocation of purchase consideration recorded on our condensed consolidated balance sheet as of the acquisition date (in thousands):
 Busuu
Cash and cash equivalents$20,525 
Accounts receivable2,446 
Right of use assets2,715 
Other acquired assets3,710 
Acquired intangible assets71,600 
Total identifiable assets acquired100,996 
Accounts payable(5,174)
Accrued liabilities(1)
(21,964)
Deferred revenue(16,761)
Long term operating lease liabilities(2,038)
Other long-term liabilities(1)
(1,646)
Net identifiable assets acquired53,413 
Goodwill368,237 
Total fair value of purchase consideration$421,650 
(1) During the three months ended June 30, 2022, we recorded a $0.8 million decrease to accrued liabilities and a $1.7 million increase to other long-term liabilities as a result of measurement period adjustments to the fair value of the initial liabilities related to taxes.

The estimates and assumptions regarding the fair value of certain tangible assets acquired and liabilities assumed, the valuation of intangible assets acquired, income taxes, and goodwill are subject to change as we obtain additional information during the measurement period, which usually lasts for up to one year from the acquisition date.

Goodwill is primarily attributable to the potential for expanding our offerings to include an online language learning platform and global reach allowing us to drive further into international markets. Substantially all of the amounts recorded for intangible assets and goodwill are deductible for tax purposes.

The following table presents the details of the allocation of purchase consideration to the acquired intangible assets (in thousands, except weighted-average amortization period):
Busuu
AmountWeighted-Average Amortization Period (in months)
Trade name$4,600 72
Customer lists18,000 24
Developed technology49,000 84
Total acquired intangible assets$71,600 68

During the nine months ended September 30, 2022 and year ended December 31, 2021, we incurred acquisition-related expenses of $0.6 million and $5.3 million, respectively, associated with our acquisition of Busuu, which have been included in general and administrative expense on our condensed consolidated statement of operations.
The purchase consideration was paid in Euros, which is different from our functional currency of United States Dollars. We initially funded an equivalent of $417.0 million that was remeasured at $421.7 million at closing, which is included in our statement of cash flows as a cash outflow from investing activities net of cash acquired, resulting in a $4.6 million gain included in other income (expense), net on our condensed consolidated statement of operations.

The Busuu purchase agreement provides for additional payments of up to approximately $25.5 million, subject to the continued employment of certain key employees. These payments are not included in the fair value of the purchase consideration but rather are expensed ratably as acquisition-related compensation costs and classified based on the employees' job function, on our condensed consolidated statement of operations. As of September 30, 2022, we have recorded approximately $5.3 million within accrued liabilities on our condensed consolidated balance sheets for these payments.
Since the acquisition date, we have recorded revenues and net loss from Busuu of $29.0 million and $28.7 million, respectively. These results should not be taken as representative of future results of operations of the combined company. The following unaudited supplemental pro forma revenues and earnings is for informational purposes only and presents our combined results as if the acquisition of Busuu had occurred on January 1, 2021. During the three and nine months ended September 30, 2022, our unaudited supplemental pro forma revenues would have been $164.7 million and $562.4 million, respectively. During the three and nine months ended September 30, 2021, our unaudited supplemental pro forma revenues would have been $184.2 million and $601.5 million, respectively. During the three and nine months ended September 30, 2022, our unaudited supplemental pro forma earnings would have been a net income of $253.6 million and $267.3 million, respectively. During the three and nine months ended September 30, 2021, our unaudited supplemental pro forma earnings would have been a net loss of $3.9 million and $55.6 million, respectively. The unaudited supplemental pro forma earnings information includes the historical combined operating results adjusted for acquisition-related compensation costs, amortization of intangible assets, share-based compensation expense and acquisition-related expenses and does not necessarily reflect the actual results that would have been achieved, nor is it necessarily indicative of our future consolidated results.
v3.22.2.2
Goodwill and Intangible Assets
 9 Months Ended
Sep. 30, 2022
Goodwill and Intangible Assets Disclosure [Abstract]  
Goodwill and Intangible Assets Goodwill and Intangible Assets
Goodwill consists of the following (in thousands):
 Nine Months Ended September 30, 2022
Beginning balance$289,763 
Initial addition due to acquisition367,376 
Foreign currency translation adjustment(68,298)
Measurement period adjustments related to prior acquisition(1)
861 
Ending balance$589,702 
(1) For further information, see Note 5, “Acquisition.”

Intangible assets consist of the following (in thousands, except weighted-average amortization period):
 September 30, 2022
 Weighted-Average Amortization Period (in months)Gross Carrying AmountAccumulated AmortizationForeign Currency Translation AdjustmentNet Carrying Amount
Developed technologies80$106,703 $(41,306)$(8,638)$56,759 
Content libraries6012,230 (8,670)— 3,560 
Customer lists3534,190 (19,527)(2,385)12,278 
Trade and domain names5216,213 (10,928)(836)4,449 
Indefinite-lived trade name— 3,600 — — 3,600 
Total intangible assets, net67$172,936 $(80,431)$(11,859)$80,646 
 
 December 31, 2021
Weighted-Average Amortization
Period
(in months)		Gross
Carrying
Amount		Accumulated
Amortization		Foreign Currency Translation AdjustmentNet
Carrying
Amount
Developed technologies76$57,521 $(31,790)$— $25,731 
Content libraries6012,230 (6,836)— 5,394 
Customer lists4716,190 (12,432)— 3,758 
Trade and domain names4411,613 (9,530)— 2,083 
Indefinite-lived trade name— 3,600 — — 3,600 
Total intangible assets, net65$101,154 $(60,588)$— $40,566 

During the three and nine months ended September 30, 2022, amortization expense related to our finite-lived intangible assets totaled approximately $6.5 million and $19.7 million, respectively. During the three and nine months ended September 30, 2021, amortization expense related to our finite-lived intangible assets totaled approximately $3.0 million and $10.7 million, respectively.

As of September 30, 2022, the estimated future amortization expense related to our finite-lived intangible assets is as follows (in thousands):
Remaining three months of 2022$5,950 
202322,844 
202412,757 
202510,688 
202610,340 
Thereafter14,467 
Total$77,046 
v3.22.2.2
Required Materials Transition
 9 Months Ended
Sep. 30, 2022
Discontinued Operations and Disposal Groups [Abstract]  
Required Materials Transition Required Materials Transition
In April 2022, we entered into definitive agreements regarding the sale of our print textbook library and partnership with GT Marketplace, LLC (GT) for our Required Materials product line. We will continue to offer our Required Materials offering on our website and maintain relationships with the students, however, GT has purchased our existing print textbook library for $14 million, subject to payment terms and certain adjustments, and will continue to make print textbook investments and provide fulfillment logistics for print textbook transactions. We expect that we will continue to fulfill eTextbook transactions through the end of 2022, at which point GT will fulfill eTextbook transactions.

Upon board of directors approval of the transaction with GT in April 2022, our net textbook library and unrecognized deferred revenue related to print textbook transactions met the criteria to be classified as a held for sale asset group which had a carrying amount of $7.7 million. During the three months ended June 30, 2022, we subsequently sold the held for sale asset group to GT at a gain of $4.4 million, subject to certain adjustments, included in cost of revenues on our condensed consolidated statement of operations.
Subsequent to April 2022, we no longer recognize operating lease income from print textbooks that we own ratable on a gross basis. In relation to print textbooks owned by GT, we recognize revenues immediately on a net basis, representing the margin earned, based on our role in the transaction as an agent as we have concluded that we do not control the use of the print textbooks, and therefore record only the net revenue share we earn.
v3.22.2.2
Convertible Senior Notes
 9 Months Ended
Sep. 30, 2022
Debt Disclosure [Abstract]  
Convertible Senior Notes Convertible Senior NotesIn August 2020, we issued $1.0 billion in aggregate principal amount of 0% convertible senior notes due in 2026 (2026 notes). The aggregate principal amount of the 2026 notes includes $100 million from the initial purchasers fully exercising their option to purchase additional notes. In March 2019, we issued $700 million in aggregate principal amount of 0.125% convertible senior notes due in 2025 (2025 notes, together with the 2026 notes, the notes) and in April 2019, the initial purchasers fully exercised their option to purchase $100 million of additional 2025 notes for aggregate total principal amount of
$800 million. The notes were issued in private placements to qualified institutional buyers pursuant to Rule 144A of the Securities Act of 1933, as amended.

The total net proceeds from the notes are as follows (in thousands):
2026 Notes2025 Notes
Principal amount$1,000,000 $800,000 
Less initial purchasers’ discount(15,000)(18,998)
Less other issuance costs(904)(822)
Net proceeds$984,096 $780,180 

The notes are our senior, unsecured obligations and are governed by indenture agreements by and between us and Computershare Trust Company, National Association (as successor to Wells Fargo Bank, National Association), as Trustee (the indentures). The 2026 notes bear no interest and will mature on September 1, 2026, unless repurchased, redeemed or converted in accordance with their terms prior to such date. The 2025 notes bear interest of 0.125% per year which is payable semi-annually in arrears on March 15 and September 15 of each year, beginning on September 15, 2019. The 2025 notes will mature on March 15, 2025, unless repurchased, redeemed or converted in accordance with their terms prior to such date.

Each $1,000 principal amount of the 2026 notes will initially be convertible into 9.2978 shares of our common stock. This is equivalent to an initial conversion price of approximately $107.55 per share, which is subject to adjustment in certain circumstances. Each $1,000 principal amount of the 2025 notes will initially be convertible into 19.3956 shares of our common stock. This is equivalent to an initial conversion price of approximately $51.56 per share, which is subject to adjustment in certain circumstances.

Prior to the close of business on the business day immediately preceding June 1, 2026 for the 2026 notes and December 15, 2024 for the 2025 notes, the notes are convertible at the option of holders only upon satisfaction of the following circumstances:

•during any calendar quarter commencing after the calendar quarter ending on December 31, 2020 for the 2026 notes and June 30, 2019 for the 2025 notes, if the last reported sale price of our common stock for at least 20 trading days (whether or not consecutive) during a period of 30 consecutive trading days ending on, and including, the last trading day of the immediately preceding calendar quarter is greater than or equal to 130% of the respective conversion price for the notes on each applicable trading day;
•during the five-business day period after any 10 consecutive trading day period (the measurement period) in which the trading price per $1,000 principal amount of notes for each trading day of the measurement period was less than 98% of the product of the last reported sale price of our common stock and the conversion rate on each such trading day;
•if we call any or all of the notes for redemption, at any time prior to the close of business on the second scheduled trading day immediately preceding the redemption date; or
•upon the occurrence of certain specified corporate events described in the indentures.

On or after June 1, 2026 for the 2026 notes and December 15, 2024 for the 2025 notes until the close of business on the second scheduled trading day immediately preceding the respective maturity dates, holders may convert their notes at any time, regardless of the foregoing circumstances. Upon conversion, the notes may be settled in shares of our common stock, cash or a combination of cash and shares of our common stock, at our election.

If we undergo a fundamental change, as defined in the indentures, prior to the respective maturity dates, subject to certain conditions, holders of the notes may require us to repurchase for cash all or any portion of their notes at a repurchase price equal to 100% of the principal amount of the notes to be repurchased, plus accrued and unpaid interest to, but excluding, the fundamental change repurchase date. In addition, if specific corporate events, described in the indentures, occur prior to the respective maturity dates, we will also increase the conversion rate for a holder who elects to convert their notes in connection with such specified corporate events.

In September 2022, in connection with our securities repurchase program, we extinguished $500.0 million aggregate principal amount of the 2026 notes in privately-negotiated transactions for $399.9 million, which was paid to the holders in cash. We also incurred approximately $1.3 million in fees resulting in total consideration of $401.2 million. The carrying amount of the extinguished 2026 notes was $494.7 million resulting in a $93.5 million gain on early extinguishment of debt. We elected to reacquire and not cancel the extinguished 2026 notes and left the associated capped call transactions outstanding. As of September 30, 2022, we had 9,297,800 shares remaining underlying the 2026 notes capped call transactions.
During the three months ended September 30, 2022, the conditions allowing holders of the 2026 notes and 2025 notes to convert were not met and therefore the 2026 notes and 2025 notes are not convertible the following quarter. During the year ended December 31, 2021, we issued 2,983,011 shares of our common stock related to the redemption of our 2023 notes.

The net carrying amount of the notes is as follows (in thousands):
September 30, 2022December 31, 2021
2026 Notes2025 Notes2026 Notes2025 Notes
Principal$500,000 $699,979 $1,000,000 $699,982 
Unamortized issuance costs(5,169)(7,297)(12,309)(9,518)
Net carrying amount$494,831 $692,682 $987,691 $690,464 

The following tables set forth the total interest expense recognized related to the notes (in thousands):

Three Months Ended September 30,Nine Months Ended September 30,
2022202120222021
2026 notes:
Contractual interest expense$— $— $— $— 
Amortization of issuance costs556 663 1,863 1,970 
Total 2026 notes interest expense$556 $663 $1,863 $1,970 
2025 notes:
Contractual interest expense$220 $221 $654 $676 
Amortization of issuance costs749 749 2,221 2,297 
Total 2025 notes interest expense$969 $970 $2,875 $2,973 
2023 notes:
Contractual interest expense$— $— $— $78 
Amortization of issuance costs— — — 242 
Total 2023 notes interest expense$— $— $— $320 

Capped Call Transactions

Concurrently with the offering of the 2026 notes and 2025 notes, we used $103.4 million and $97.2 million, respectively, of the net proceeds to enter into privately negotiated capped call transactions which are expected to reduce or offset potential dilution to holders of our common stock upon conversion of the notes or offset the potential cash payments we would be required to make in excess of the principal amount of any converted notes. The capped call transactions automatically exercise upon conversion of the notes and as of September 30, 2022, cover 9,297,800 and 13,576,513 shares of our common stock for the 2026 notes and 2025 notes, respectively. These are intended to effectively increase the overall conversion price from $107.55 to $156.44 per share for the 2026 notes and $51.56 to $79.32 per share for the 2025 notes. The effective increase in conversion price as a result of the capped call transactions serves to reduce potential dilution to holders of our common stock and/or offset the cash payments we are required to make in excess of the principal amount of any converted notes. As these transactions meet certain accounting criteria, they are recorded in stockholders’ equity as a reduction of additional paid-in capital on our condensed consolidated balance sheets and are not accounted for as derivatives. The fair value of the capped call instrument is not remeasured each reporting period. The cost of the capped call is not expected to be deductible for tax purposes.
v3.22.2.2
Commitments and Contingencies
 9 Months Ended
Sep. 30, 2022
Commitments and Contingencies Disclosure [Abstract]  
Commitments and Contingencies Commitments and ContingenciesWe may from time to time be subject to certain legal proceedings and claims in the ordinary course of business, including claims of alleged infringement of trademarks, patents, copyrights, and other intellectual property rights; employment claims; and general contract or other claims. We may also, from time to time, be subject to various legal or government claims, demands, disputes, investigations, or requests for information. Such matters may include, but not be limited to, claims, disputes, or investigations related to warranty, refund, breach of contract, employment, intellectual property, government regulation, or compliance or other matters.
On March 30, 2022, Joseph Robinson, derivatively on behalf of Chegg, filed a shareholder derivative complaint against Chegg and certain of its current and former directors and officers in the United States District Court for the Northern District of California, alleging breaches of fiduciary duties, among others (the “Robinson Matter”). The Robinson Matter has been consolidated with the Choi Matter (described below) and has been stayed on the same terms. The Company disputes these claims and intends to vigorously defend itself in this matter.

On January 12, 2022, Rak Joon Choi, derivatively on behalf of Chegg, filed a shareholder derivative complaint against Chegg and certain of its current and former directors and officers in the United States District Court for the Northern District of California, alleging breaches of fiduciary duties, unjust enrichment, abuse of control, gross mismanagement, and waste of corporate assets, among others (the “Choi Matter”). The Company disputes these claims and intends to vigorously defend itself in this matter. On March 1, 2022, the court entered an order deeming the Choi Matter related to the Leventhal Matter (described below). On March 29, 2022, the Court entered an order staying the Choi Matter during the pendency of the Leventhal Matter.

On December 22, 2021, Steven Leventhal, individually and on behalf of all others similarly situated, filed a putative securities fraud class action on behalf of all purchasers of Chegg common stock between May 5, 2020 and November 1, 2021, inclusive, against Chegg and certain of its current and former officers in the United States District Court for the Northern District of California (Case No. 5:21-cv-09953), alleging that Chegg and several of its officers made materially false and misleading statements in violation of Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 (the “Leventhal Matter”). On September 7, 2022, Judge Edward J. Davila appointed the lead plaintiff and approved lead counsel in this matter. The parties agreed upon a scheduling for amending the complaint and motion to dismiss briefing in early 2023, and with a hearing slated for June 2023. The plaintiff in this matter seeks unspecified compensatory damages, costs, and expenses, including counsel and expert fees. The Company disputes these claims and intends to vigorously defend itself in this matter.

On September 13, 2021, Pearson Education, Inc. (Pearson) filed a complaint captioned Pearson Education, Inc. v. Chegg, Inc. (Pearson Complaint) in the United States District Court for the District of New Jersey against the Company (Case 2:21-cv-16866), alleging infringement of Pearson’s registered copyrights and exclusive rights under copyright in violation of the United States Copyright Act. Pearson is seeking injunctive relief, monetary damages, costs, and attorneys’ fees. The Company filed its answer to the Pearson Complaint on November 19, 2021. On June 29, 2022, Pearson filed a Motion for Leave to File Amended Complaint which seeks to add Bedford, Freeman & Worth Publishing Group, LLC d/b/a Macmillan Learning (“Macmillan Learning”) as a plaintiff, add an additional claim for relief on behalf of both Pearson and Macmillan Learning for copyright infringement, and add allegations regarding Pearson’s original complaint. The Company disputes these claims and intends to vigorously defend itself in this matter.

On June 18, 2020, we received a Civil Investigative Demand (CID) from the Federal Trade Commission (FTC) to determine whether we may have violated Section 5 of the FTC Act or the Children's Online Privacy Protection Act (COPPA), as they relate to deceptive or unfair acts or practices related to consumer privacy and/or data security. We have provided the FTC with the requested responses to interrogatories and follow-up questions and have produced documents pertaining to data breach incidents and our data security and privacy practices generally. We have agreed to enter into a Consent Order with the FTC related to consumer privacy and data security, which has been announced by the FTC but has not yet been published on the Federal Register. No COPPA provisions nor monetary fines are included in the Consent Order.

On May 12, 2020, we received notice that 15,107 arbitration demands were filed against us on April 30, 2020 by individuals all represented by the same legal counsel. Each individual claimant claimed to have suffered more than $25 thousand in damages as a result of the unauthorized access of certain items of their user data in April 2018. On July 1, 2020, an additional 1,007 arbitration demands were filed by the same counsel, making identical allegations. On August 12, 2020, an additional 577 arbitration demands were filed by the same counsel, making identical allegations. Related cases were filed by the same counsel in Maryland and California. We disputed that these claimants had a valid basis for seeking arbitration, asserted that they have acted in bad faith and have been working with the Maryland and California courts and plaintiffs’ counsel on resolution of these claims. The Maryland case is now closed. On August 22, 2021, Chegg and the claimants' legal counsel, on behalf of its clients, entered into a settlement agreement, pursuant to which each eligible claimant that signs a release agreement agrees, among other things, to dismiss with prejudice all claims against Chegg that such claimant currently maintains in exchange for such claimant's pro rata portion of the settlement amount. Claimants had until January 26, 2022 to sign their release agreements. As a result of the settlement, all but four petitions to compel arbitration in the California action were dismissed with prejudice.

We have not recorded any loss contingency accruals related to the above matters as we do not believe that a loss is probable in these matters. We are not aware of any other pending legal matters or claims, individually or in the aggregate, that are expected to have a material adverse impact on our consolidated financial position, results of operations, or cash flows. However, our analysis of whether a claim will proceed to litigation cannot be predicted with certainty, nor can the results of litigation be predicted with certainty. Nevertheless, defending any of these actions, regardless of the outcome, may be costly,
time consuming, distract management personnel and have a negative effect on our business. An adverse outcome in any of these actions, including a judgment or settlement, may cause a material adverse effect on our future business, operating results and/or financial condition.
v3.22.2.2
Guarantees and Indemnifications
 9 Months Ended
Sep. 30, 2022
Guarantees And Indemnifications [Abstract]  
Guarantees and Indemnifications Guarantees and Indemnifications
We have agreed to indemnify our directors and officers for certain events or occurrences, subject to certain limits, while such persons are or were serving at our request in such capacity. We may terminate the indemnification agreements with these persons upon termination of employment, but termination will not affect claims for indemnification related to events occurring prior to the effective date of termination. We have a directors’ and officers’ insurance policy that limits our potential exposure up to the limits of our insurance coverage. In addition, we also have other indemnification agreements with various vendors against certain claims, liabilities, losses, and damages. The maximum amount of potential future indemnification is unlimited.

We believe the fair value of these indemnification agreements is immaterial. We have not recorded any liabilities for these agreements as of September 30, 2022.
v3.22.2.2
Stockholders' Equity
 9 Months Ended
Sep. 30, 2022
Share-Based Payment Arrangement [Abstract]  
Stockholders' Equity Stockholders' Equity
Securities Repurchase Program

In June 2022, our board of directors approved a $1.0 billion increase to our existing securities repurchase program authorizing the repurchase of up to $2.0 billion of our common stock and/or convertible notes, through open market purchases, block trades, and/or privately negotiated transactions or pursuant to Rule 10b5-1 plans, in compliance with applicable securities laws and other legal requirements. The timing, volume, and nature of the repurchases will be determined by management based on the capital needs of the business, market conditions, applicable legal requirements, and other factors. During the three months ended September 30, 2022, we repurchased $500.0 million aggregate principal amount of the 2026 notes in privately-negotiated transactions for $399.9 million. Additionally, we repurchased 1,146,803 shares of our common stock in open market transactions for $23.1 million. As of September 30, 2022, we had $642.6 million remaining under the repurchase program, which has no expiration date and will continue until otherwise suspended, terminated or modified at any time for any reason by our board of directors.

Accelerated Share Repurchases

On February 22, 2022, we entered into an accelerated share repurchase (ASR) agreement with a financial institution (2022 ASR). We accounted for the 2022 ASR as two separate transactions, a repurchase of our common stock and an equity-linked contract indexed to our common stock that met certain accounting criteria for classification in stockholders' equity. Upon execution, we paid a fixed amount of $300.0 million and received an initial delivery of 8,562,255 shares of our common stock over the following three business days, which were retired immediately. The initial delivery of shares of our common stock represented approximately 80 percent of the fixed amount paid of $300.0 million, which was based on the share price of our common stock on the date of execution. The 2022 ASR was recorded as a reduction to additional paid in capital on our condensed consolidated statements of stockholders’ equity. The 2022 ASR settled during the three months ended June 30, 2022 and we received an additional delivery of 837,001 shares of our common stock, which were retired immediately. The 2022 ASR resulted in a total repurchase of 9,399,256 shares of our common stock at a volume-weighted-average price, less an agreed upon discount, $31.9174 per share. We were not required to make any additional cash payments or delivery of common stock to the financial institutions upon settlement.

On December 3, 2021, we entered into an ASR agreement with a financial institution (2021 ASR) to repurchase $300.0 million of our outstanding common stock. The 2021 ASR settled during the three months ended March 31, 2022 and we received an additional delivery of 2,163,219 shares of our common stock.
Share-based Compensation Expense

Total share-based compensation expense recorded for employees and non-employees is as follows (in thousands):
 Three Months Ended
September 30,		Nine Months Ended
September 30,
 2022202120222021
Cost of revenues$653 $393 $1,945 $1,174 
Research and development9,172 8,917 30,954 25,976 
Sales and marketing2,771 3,051 11,176 9,625 
General and administrative21,574 12,151 54,266 39,382 
Total share-based compensation expense$34,170 $24,512 $98,341 $76,157 

During the three and nine months ended September 30, 2022, we capitalized share-based compensation expense of $0.7 million and $4.8 million, respectively. During the three and nine months ended September 30, 2021, we capitalized share-based compensation expense of $0.6 million and $1.8 million, respectively.

RSU and PSU Activity

Activity for RSUs and PSUs is as follows:
 RSUs and PSUs Outstanding
 Shares OutstandingWeighted Average Grant Date Fair Value
Balance at December 31, 20218,171,462 $46.36 
Granted4,570,547 28.36 
Released(1,356,059)63.12 
Forfeited(1,612,877)39.31 
Balance at September 30, 20229,773,073 $36.80 

As of September 30, 2022, our total unrecognized share-based compensation expense related to RSUs and PSUs was approximately $238.0 million, which will be recognized over the remaining weighted-average vesting period of approximately 2.4 years.
v3.22.2.2
Income Taxes
 9 Months Ended
Sep. 30, 2022
Income Tax Disclosure [Abstract]  
Income Taxes Income Taxes
During the three and nine months ended September 30, 2022, we recorded a benefit from income taxes of $167.3 million and $163.0 million, respectively. During the three and nine months ended September 30, 2021, we recorded a provision for income taxes of $0.7 million and $5.8 million, respectively.

During the three and nine months ended September 30, 2022, the benefit from income taxes was primarily due to the $174.6 million release of the valuation allowance as a discrete non-cash income tax benefit on certain U.S. and state deferred tax assets. Previously, we maintained a valuation allowance against our deferred tax assets until we expected that it would be more-likely-than not that they would be realized. The release of the valuation allowance is the result of our expectation that our domestic operations will continue to be profitable and is based on a detailed evaluation of all available evidence. The principal indicator leading to the release is the recent cumulative earnings of U.S. and certain state jurisdictions and the forecasted earnings in these jurisdictions. We continue to maintain a valuation allowance against our California deferred tax assets and our anticipated capital loss temporary differences. We will continue to quarterly assess the need for such valuation allowance.
v3.22.2.2
Background and Basis of Presentation (Policies)
 9 Months Ended
Sep. 30, 2022
Organization, Consolidation and Presentation of Financial Statements [Abstract]  
Basis of Presentation
Basis of Presentation

The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with generally accepted accounting principles in the United States (“GAAP”) and applicable rules and regulations of the U.S. Securities and Exchange Commission (“SEC”) regarding interim financial reporting. The condensed consolidated financial statements include the results of Chegg, Inc. and its wholly-owned subsidiaries. Significant intercompany balances and transactions have been eliminated. In the opinion of management, the accompanying unaudited condensed consolidated financial statements contain all adjustments, including normal recurring adjustments, necessary to present fairly our financial position as of September 30, 2022, our results of operations, results of comprehensive income (loss), and stockholders' equity for the three and nine months ended September 30, 2022 and 2021 and cash flows for the nine months ended September 30, 2022 and 2021. Our results of operations, results of comprehensive income (loss), stockholders' equity, and cash flows for the nine months ended September 30, 2022 are not necessarily indicative of the results to be expected for the full year.

We have a single operating and reportable segment and operating unit structure. The condensed consolidated financial statements and related financial information should be read in conjunction with the audited consolidated financial statements and the related notes thereto that are included in our Annual Report on Form 10-K for the year ended December 31, 2021 (the Annual Report on Form 10-K) filed with the SEC.
There have been no material changes to our significant accounting policies as compared to the significant accounting policies described in our Annual Report on Form 10-K.
Use of Estimates Use of EstimatesThe preparation of financial statements in conformity with GAAP requires management to make estimates, judgments, and assumptions that affect the reported amounts of assets and liabilities; the disclosure of contingent liabilities at the date of the financial statements; and the reported amounts of revenues and expenses during the reporting periods. We base our estimates on historical experience, knowledge of current business conditions, and various other factors we believe to be reasonable under the circumstances. These estimates are based on management’s knowledge about current events and expectations about actions we may undertake in the future. Actual results could differ from these estimates, and such differences could be material to our financial position and results of operations.
Recent Accounting Pronouncements
Recent Accounting Pronouncements

Recently Issued Accounting Pronouncements Not Yet Adopted

There were no accounting pronouncements issued during the nine months ended September 30, 2022 that would have an impact on our financial statements.

Recently Adopted Accounting Pronouncements

In October 2021, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) 2021-08, Business Combinations-Accounting for Contract Assets and Contract Liabilities from Contracts with Customers (Topic 805). The new guidance requires contract assets and contract liabilities acquired in a business combination to be recognized in accordance with Accounting Standards Codification (ASC) Topic 606 as if the acquirer had originated the contracts. The standard is effective for fiscal years beginning after December 15, 2022, including interim periods within those fiscal years, and early adoption is permitted. We early adopted ASU 2021-08 on January 1, 2022 and applied it to our acquisition of Busuu. The most significant impacts were an increase in contract liabilities, contained within deferred revenue, and goodwill.

In May 2021, the FASB issued ASU 2021-04, Issuer’s Accounting for Certain Modifications or Exchanges of Freestanding Equity-Classified Written Call Options. ASU 2021-04 aims to clarify and reduce diversity in an issuer’s accounting for modifications or exchanges of freestanding equity-classified written call options that remain equity classified after modification or exchange based on the economic substance of the modification or exchange. Early adoption is permitted and the guidance must be applied prospectively to all modifications or exchanges that occur on or after the date of adoption. The guidance is effective for annual periods beginning after December 15, 2021. We adopted ASU 2021-04 on January 1, 2022 under the prospective method of adoption and there was no impact to our results of operations as we did not modify or exchange any freestanding equity-classified written call options.
v3.22.2.2
Background and Basis of Presentation (Tables)
 9 Months Ended
Sep. 30, 2022
Organization, Consolidation and Presentation of Financial Statements [Abstract]  
Schedule of Other Income (Expense), Net
Other income (expense), net consists of the following (in thousands):
Three Months Ended
September 30,		Nine Months Ended
September 30,
2022202120222021
Gain (loss) on early extinguishment of debt(1)
$93,519 $— $93,519 $(78,152)
Loss on change in fair value of derivative instruments, net— — — (7,148)
Gain on sale of strategic equity investments— 7,158 — 12,496 
Gain on foreign currency remeasurement of purchase consideration(2)
— — 4,628 — 
Interest income3,737 1,485 7,246 5,385 
Other2 27 (146)801 
Total other income (expense), net
$97,258 $8,670 $105,247 $(66,618)
(1) For further information, see Note 8, “Convertible Senior Notes.”
(2) For further information, see Note 5, “Acquisition.”
v3.22.2.2
Revenues (Tables)
 9 Months Ended
Sep. 30, 2022
Revenue from Contract with Customer [Abstract]  
Schedule of Disaggregation of Revenue
The following tables set forth our total net revenues for the periods shown disaggregated for our Chegg Services and Required Materials product lines (in thousands, except percentages):
 Three Months Ended
September 30,		Change
 20222021$%
Chegg Services$159,264 $146,790 $12,474 8 %
Required Materials5,475 25,152 (19,677)(78)
Total net revenues$164,739 $171,942 $(7,203)(4)

 Nine Months Ended September 30,Change
 20222021$%
Chegg Services$533,152 $482,654 $50,498 10 %
Required Materials28,552 86,144 (57,592)(67)
Total net revenues$561,704 $568,798 $(7,094)(1)
Schedule of Accounts Receivable
The following table presents our accounts receivable, net, contract assets and deferred revenue balances (in thousands, except percentages):
 Change
 September 30,
2022		December 31, 2021$%
Accounts receivable, net$22,187 $17,850 $4,337 24 %
Contract assets12,710 14,231 (1,521)(11)
Deferred revenue60,475 35,143 25,332 72 
v3.22.2.2
Net Income (Loss) Per Share (Tables)
 9 Months Ended
Sep. 30, 2022
Earnings Per Share [Abstract]  
Schedule of Earnings Per Share, Basic and Diluted The following table sets forth the computation of basic and diluted net income (loss) per share (in thousands, except per share amounts):
Three Months Ended
September 30,		Nine Months Ended
September 30,
2022202120222021
Basic
Numerator:
Net income (loss)
$251,562 $6,651 $264,780 $(25,764)
Denominator:
Weighted average shares used to compute net income (loss) per share, basic
126,132 144,746 128,166 140,775 
Net income (loss) per share, basic
$1.99 $0.05 $2.07 $(0.18)
Diluted
Numerator:
Net income (loss)$251,562 $6,651 $264,780 $(25,764)
Convertible senior notes activity, net of tax(1)
(69,042)— (66,630)— 
Net income (loss), diluted
$182,520 $6,651 $198,150 $(25,764)
Denominator:
Weighted average shares used to compute net income (loss) per share, basic
126,132 144,746 128,166 140,775 
Shares related to stock plan activity504 1,953 674 — 
Shares related to convertible senior notes21,409 — 22,381 — 
Weighted average shares used to compute net income (loss) per share, diluted
148,045 146,699 151,221 140,775 
Net income (loss) per share, diluted
$1.23 $0.05 $1.31 $(0.18)
(1) Includes the gain on early extinguishment on our 2026 notes and interest expense on our notes, net of tax. For further information, see Note 8, “Convertible Senior Notes.”
Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share
The following potential weighted-average shares of common stock outstanding were excluded from the computation of diluted net income (loss) per share because including them would have been anti-dilutive (in thousands):
Three Months Ended
September 30,		Nine Months Ended
September 30,
2022202120222021
Shares related to stock plan activity7,534 849 4,148 2,727 
Shares related to convertible senior notes— 22,875 — 23,876 
Total common stock equivalents7,534 23,724 4,148 26,603 
v3.22.2.2
Cash and Cash Equivalents, and Investments and Fair Value Measurements (Tables)
 9 Months Ended
Sep. 30, 2022
Cash and Cash Equivalents [Abstract]  
Schedule of Cash, Cash Equivalents and Investments
The following tables show our cash and cash equivalents, and investments’ fair value level classification, adjusted cost, unrealized gain, unrealized loss and fair value as of September 30, 2022 and December 31, 2021 (in thousands except for fair value levels):
 September 30, 2022
 Fair Value LevelAdjusted CostUnrealized GainUnrealized LossFair Value
Cash and cash equivalents:   
Cash$35,131 $— $— $35,131 
Money market fundsLevel 134,218 — — 34,218 
Total cash and cash equivalents$69,349 $— $— $69,349 
Short-term investments:   
Commercial paperLevel 2$11,720 $— $(114)$11,606 
Corporate debt securitiesLevel 2770,221 (12,945)757,276 
U.S. treasury securitiesLevel 1104,671 — (2,145)102,526 
Total short-term investments$886,612 $— $(15,204)$871,408 
Long-term investments:   
Corporate debt securitiesLevel 2$156,687 $— $(4,065)$152,622 
U.S. treasury securitiesLevel 1101,890 — (1,907)99,983 
Agency bondsLevel 234,119 57 — 34,176 
Total long-term investments$292,696 $57 $(5,972)$286,781 

 December 31, 2021
 Fair Value LevelAdjusted CostUnrealized GainUnrealized LossFair Value
Cash and cash equivalents:   
Cash$30,324 $— $— $30,324 
Money market fundsLevel 1823,754 — — 823,754 
Total cash and cash equivalents$854,078 $— $— $854,078 
Short-term investments:   
Commercial paperLevel 2$124,211 $2 $(33)$124,180 
Corporate debt securitiesLevel 2552,609 36 (546)552,099 
Agency bondsLevel 215,500 2 — 15,502 
Total short-term investments$692,320 $40 $(579)$691,781 
Long-term investments:   
Corporate debt securitiesLevel 2$724,517 $— $(3,277)$721,240 
U.S. treasury securitiesLevel 124,860 — (107)24,753 
Total long-term investments$749,377 $— $(3,384)$745,993 
Schedule of Available-for-sale Securities Reconciliation
The following table shows our cash equivalents and investments' adjusted cost and fair value by contractual maturity as of September 30, 2022 (in thousands):
 Adjusted CostFair Value
Due in 1 year or less$886,612 $871,408 
Due in 1-2 years292,696 286,781 
Investments not due at a single maturity date34,218 34,218 
Total$1,213,526 $1,192,407 
v3.22.2.2
Acquisition (Tables)
 9 Months Ended
Sep. 30, 2022
Business Combination and Asset Acquisition [Abstract]  
Schedule of Recognized Identified Assets Acquired and Liabilities Assumed
The following table presents the preliminary allocation of purchase consideration recorded on our condensed consolidated balance sheet as of the acquisition date (in thousands):
 Busuu
Cash and cash equivalents$20,525 
Accounts receivable2,446 
Right of use assets2,715 
Other acquired assets3,710 
Acquired intangible assets71,600 
Total identifiable assets acquired100,996 
Accounts payable(5,174)
Accrued liabilities(1)
(21,964)
Deferred revenue(16,761)
Long term operating lease liabilities(2,038)
Other long-term liabilities(1)
(1,646)
Net identifiable assets acquired53,413 
Goodwill368,237 
Total fair value of purchase consideration$421,650 
(1) During the three months ended June 30, 2022, we recorded a $0.8 million decrease to accrued liabilities and a $1.7 million increase to other long-term liabilities as a result of measurement period adjustments to the fair value of the initial liabilities related to taxes.
Schedule of Allocation of Purchase Consideration to Acquired Intangible Assets
The following table presents the details of the allocation of purchase consideration to the acquired intangible assets (in thousands, except weighted-average amortization period):
Busuu
AmountWeighted-Average Amortization Period (in months)
Trade name$4,600 72
Customer lists18,000 24
Developed technology49,000 84
Total acquired intangible assets$71,600 68
v3.22.2.2
Goodwill and Intangible Assets (Tables)
 9 Months Ended
Sep. 30, 2022
Goodwill and Intangible Assets Disclosure [Abstract]  
Schedule of Goodwill
Goodwill consists of the following (in thousands):
 Nine Months Ended September 30, 2022
Beginning balance$289,763 
Initial addition due to acquisition367,376 
Foreign currency translation adjustment(68,298)
Measurement period adjustments related to prior acquisition(1)
861 
Ending balance$589,702 
(1) For further information, see Note 5, “Acquisition.”
Schedule of Finite-lived Intangible Assets
Intangible assets consist of the following (in thousands, except weighted-average amortization period):
 September 30, 2022
 Weighted-Average Amortization Period (in months)Gross Carrying AmountAccumulated AmortizationForeign Currency Translation AdjustmentNet Carrying Amount
Developed technologies80$106,703 $(41,306)$(8,638)$56,759 
Content libraries6012,230 (8,670)— 3,560 
Customer lists3534,190 (19,527)(2,385)12,278 
Trade and domain names5216,213 (10,928)(836)4,449 
Indefinite-lived trade name— 3,600 — — 3,600 
Total intangible assets, net67$172,936 $(80,431)$(11,859)$80,646 
 
 December 31, 2021
Weighted-Average Amortization
Period
(in months)		Gross
Carrying
Amount		Accumulated
Amortization		Foreign Currency Translation AdjustmentNet
Carrying
Amount
Developed technologies76$57,521 $(31,790)$— $25,731 
Content libraries6012,230 (6,836)— 5,394 
Customer lists4716,190 (12,432)— 3,758 
Trade and domain names4411,613 (9,530)— 2,083 
Indefinite-lived trade name— 3,600 — — 3,600 
Total intangible assets, net65$101,154 $(60,588)$— $40,566 
Schedule of Indefinite-lived Intangible Assets
Intangible assets consist of the following (in thousands, except weighted-average amortization period):
 September 30, 2022
 Weighted-Average Amortization Period (in months)Gross Carrying AmountAccumulated AmortizationForeign Currency Translation AdjustmentNet Carrying Amount
Developed technologies80$106,703 $(41,306)$(8,638)$56,759 
Content libraries6012,230 (8,670)— 3,560 
Customer lists3534,190 (19,527)(2,385)12,278 
Trade and domain names5216,213 (10,928)(836)4,449 
Indefinite-lived trade name— 3,600 — — 3,600 
Total intangible assets, net67$172,936 $(80,431)$(11,859)$80,646 
 
 December 31, 2021
Weighted-Average Amortization
Period
(in months)		Gross
Carrying
Amount		Accumulated
Amortization		Foreign Currency Translation AdjustmentNet
Carrying
Amount
Developed technologies76$57,521 $(31,790)$— $25,731 
Content libraries6012,230 (6,836)— 5,394 
Customer lists4716,190 (12,432)— 3,758 
Trade and domain names4411,613 (9,530)— 2,083 
Indefinite-lived trade name— 3,600 — — 3,600 
Total intangible assets, net65$101,154 $(60,588)$— $40,566 
Schedule of Estimated Future Amortization Expense Related to Intangible Assets
As of September 30, 2022, the estimated future amortization expense related to our finite-lived intangible assets is as follows (in thousands):
Remaining three months of 2022$5,950 
202322,844 
202412,757 
202510,688 
202610,340 
Thereafter14,467 
Total$77,046 
v3.22.2.2
Convertible Senior Notes (Tables)
 9 Months Ended
Sep. 30, 2022
Debt Disclosure [Abstract]  
Schedule of Long-term Debt Instruments
The total net proceeds from the notes are as follows (in thousands):
2026 Notes2025 Notes
Principal amount$1,000,000 $800,000 
Less initial purchasers’ discount(15,000)(18,998)
Less other issuance costs(904)(822)
Net proceeds$984,096 $780,180 
Schedule of Debt
The net carrying amount of the notes is as follows (in thousands):
September 30, 2022December 31, 2021
2026 Notes2025 Notes2026 Notes2025 Notes
Principal$500,000 $699,979 $1,000,000 $699,982 
Unamortized issuance costs(5,169)(7,297)(12,309)(9,518)
Net carrying amount$494,831 $692,682 $987,691 $690,464 
Schedule Of Interest Expense Recognized
The following tables set forth the total interest expense recognized related to the notes (in thousands):

Three Months Ended September 30,Nine Months Ended September 30,
2022202120222021
2026 notes:
Contractual interest expense$— $— $— $— 
Amortization of issuance costs556 663 1,863 1,970 
Total 2026 notes interest expense$556 $663 $1,863 $1,970 
2025 notes:
Contractual interest expense$220 $221 $654 $676 
Amortization of issuance costs749 749 2,221 2,297 
Total 2025 notes interest expense$969 $970 $2,875 $2,973 
2023 notes:
Contractual interest expense$— $— $— $78 
Amortization of issuance costs— — — 242 
Total 2023 notes interest expense$— $— $— $320 
v3.22.2.2
Stockholders' Equity (Tables)
 9 Months Ended
Sep. 30, 2022
Share-Based Payment Arrangement [Abstract]  
Schedule of Stock-Based Compensation Expense for Employees and Non-Employees
Total share-based compensation expense recorded for employees and non-employees is as follows (in thousands):
 Three Months Ended
September 30,		Nine Months Ended
September 30,
 2022202120222021
Cost of revenues$653 $393 $1,945 $1,174 
Research and development9,172 8,917 30,954 25,976 
Sales and marketing2,771 3,051 11,176 9,625 
General and administrative21,574 12,151 54,266 39,382 
Total share-based compensation expense$34,170 $24,512 $98,341 $76,157 
Schedule of Restricted Stock Unit Activity
Activity for RSUs and PSUs is as follows:
 RSUs and PSUs Outstanding
 Shares OutstandingWeighted Average Grant Date Fair Value
Balance at December 31, 20218,171,462 $46.36 
Granted4,570,547 28.36 
Released(1,356,059)63.12 
Forfeited(1,612,877)39.31 
Balance at September 30, 20229,773,073 $36.80 
v3.22.2.2
Background and Basis of Presentation - Narrative (Details)
$ in Millions
 9 Months Ended
Sep. 30, 2022
USD ($)
segment
Organization, Consolidation and Presentation of Financial Statements [Abstract]  
Number of operating segments | segment 1
Number of reportable segments | segment 1
Impairment charges $ 3.4
Impairment of ROU asset 2.0
Write-off of leasehold improvements $ 1.4
v3.22.2.2
Background and Basis of Presentation - Other Income (Expenses) (Details) - USD ($)
$ in Thousands
 3 Months Ended 9 Months Ended
Sep. 30, 2022
Sep. 30, 2021
Sep. 30, 2022
Sep. 30, 2021
Organization, Consolidation and Presentation of Financial Statements [Abstract]        
Gain (loss) on early extinguishment of debt $ 93,519 $ 0 $ 93,519 $ (78,152)
Loss on change in fair value of derivative instruments, net 0 0 0 (7,148)
Gain on sale of strategic equity investments 0 7,158 0 12,496
Gain on foreign currency remeasurement of purchase consideration 0 0 4,628 0
Interest income 3,737 1,485 7,246 5,385
Other 2 27 (146) 801
Total other income (expense), net $ 97,258 $ 8,670 $ 105,247 $ (66,618)
v3.22.2.2
Revenues - Disaggregation of Revenue (Details) - USD ($)
$ in Thousands
 3 Months Ended 9 Months Ended
Sep. 30, 2022
Sep. 30, 2021
Sep. 30, 2022
Sep. 30, 2021
Disaggregation of Revenue [Line Items]        
Total net revenues $ 164,739 $ 171,942 $ 561,704 $ 568,798
Change, Total net revenues $ (7,203)   $ (7,094)  
Change, Total net revenues, percent (4.00%)   (1.00%)  
Chegg Services        
Disaggregation of Revenue [Line Items]        
Total net revenues $ 159,264 146,790 $ 533,152 482,654
Change, Total net revenues $ 12,474   $ 50,498  
Change, Total net revenues, percent 8.00%   10.00%  
Required Materials        
Disaggregation of Revenue [Line Items]        
Total net revenues $ 5,475 $ 25,152 $ 28,552 $ 86,144
Change, Total net revenues $ (19,677)   $ (57,592)  
Change, Total net revenues, percent (78.00%)   (67.00%)  
v3.22.2.2
Revenues - Narrative (Details) - USD ($)
$ in Thousands
 3 Months Ended 9 Months Ended
Sep. 30, 2022
Sep. 30, 2021
Sep. 30, 2022
Sep. 30, 2021
Disaggregation of Revenue [Line Items]        
Contract with customer, liability, revenue recognized $ 35,200 $ 31,300 $ 33,800 $ 32,600
Increase in accounts receivable, net     $ 4,337  
Increase in accounts receivable, net, percent     24.00%  
Decrease in contract assets     $ 1,521  
Decrease in contract assets, percent     11.00%  
Increase in deferred revenue     $ 25,332  
Increase in deferred revenue, percent     72.00%  
Textbook Library        
Disaggregation of Revenue [Line Items]        
Operating lease income $ 0 $ 6,200 $ 5,100 $ 26,900
v3.22.2.2
Revenues - Contract Balances (Details) - USD ($)
$ in Thousands
 9 Months Ended
Sep. 30, 2022
Dec. 31, 2021
Revenue from Contract with Customer [Abstract]    
Accounts receivable, net $ 22,187 $ 17,850
Change, accounts receivable, net $ 4,337  
Change, accounts receivable, net, percent 24.00%  
Contract assets $ 12,710 14,231
Change, Contract assets $ (1,521)  
Change, Contract assets, percent (11.00%)  
Deferred revenue $ 60,475 $ 35,143
Change, deferred revenue $ 25,332  
Change, deferred revenue, percent 72.00%  
v3.22.2.2
Net Income (Loss) Per Share - Computation of Basic and Diluted Net Income (Loss) Per Share (Details) - USD ($)
$ / shares in Units, shares in Thousands, $ in Thousands
 3 Months Ended 9 Months Ended
Sep. 30, 2022
Sep. 30, 2021
Sep. 30, 2022
Sep. 30, 2021
Numerator:        
Net income (loss) $ 251,562 $ 6,651 $ 264,780 $ (25,764)
Convertible senior notes activity, net of tax (69,042) 0 (66,630) 0
Net income (loss), diluted $ 182,520 $ 6,651 $ 198,150 $ (25,764)
Denominator:        
Weighted average shares used to compute net income (loss) per share, basic (in shares) 126,132 144,746 128,166 140,775
Net income (loss) per share, basic (in dollars per share) $ 1.99 $ 0.05 $ 2.07 $ (0.18)
Weighted average shares used to compute net income (loss) per share, diluted (in shares) 148,045 146,699 151,221 140,775
Net income (loss) per share, diluted (in dollars per share) $ 1.23 $ 0.05 $ 1.31 $ (0.18)
Shares related to stock plan activity        
Denominator:        
Incremental common shares attributable to dilutive effect (in shares) 504 1,953 674 0
Shares related to convertible senior notes        
Denominator:        
Incremental common shares attributable to dilutive effect (in shares) 21,409 0 22,381 0
v3.22.2.2
Net Income (Loss) Per Share - Shares Excluded From Computation Of Diluted Net Income (Loss) Per Share (Details) - shares
shares in Thousands
 3 Months Ended 9 Months Ended
Sep. 30, 2022
Sep. 30, 2021
Sep. 30, 2022
Sep. 30, 2021
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]        
Total common stock equivalents (in shares) 7,534 23,724 4,148 26,603
Shares related to stock plan activity        
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]        
Total common stock equivalents (in shares) 7,534 849 4,148 2,727
Shares related to convertible senior notes        
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]        
Total common stock equivalents (in shares) 0 22,875 0 23,876
v3.22.2.2
Cash and Cash Equivalents, and Investments and Fair Value Measurements - Schedule of Available For Sale Securities (Details) - USD ($)
$ in Thousands
Sep. 30, 2022
Dec. 31, 2021
Debt Securities, Available-for-sale [Line Items]    
Adjusted Cost $ 1,213,526  
Fair Value 1,192,407  
Cash and cash equivalents:    
Debt Securities, Available-for-sale [Line Items]    
Adjusted Cost 69,349 $ 854,078
Unrealized Gain 0 0
Unrealized Loss 0 0
Fair Value 69,349 854,078
Cash and cash equivalents: | Cash    
Debt Securities, Available-for-sale [Line Items]    
Adjusted Cost 35,131 30,324
Unrealized Gain 0 0
Unrealized Loss 0 0
Fair Value 35,131 30,324
Cash and cash equivalents: | Money market funds | Level 1    
Debt Securities, Available-for-sale [Line Items]    
Adjusted Cost 34,218 823,754
Unrealized Gain 0 0
Unrealized Loss 0 0
Fair Value 34,218 823,754
Short-term investments:    
Debt Securities, Available-for-sale [Line Items]    
Adjusted Cost 886,612 692,320
Unrealized Gain 0 40
Unrealized Loss (15,204) (579)
Fair Value 871,408 691,781
Short-term investments: | Commercial paper | Level 2    
Debt Securities, Available-for-sale [Line Items]    
Adjusted Cost 11,720 124,211
Unrealized Gain 0 2
Unrealized Loss (114) (33)
Fair Value 11,606 124,180
Short-term investments: | Corporate debt securities | Level 2    
Debt Securities, Available-for-sale [Line Items]    
Adjusted Cost 770,221 552,609
Unrealized Gain 36
Unrealized Loss (12,945) (546)
Fair Value 757,276 552,099
Short-term investments: | U.S. treasury securities | Level 1    
Debt Securities, Available-for-sale [Line Items]    
Adjusted Cost 104,671  
Unrealized Gain 0  
Unrealized Loss (2,145)  
Fair Value 102,526  
Short-term investments: | Agency bonds | Level 2    
Debt Securities, Available-for-sale [Line Items]    
Adjusted Cost   15,500
Unrealized Gain   2
Unrealized Loss   0
Fair Value   15,502
Long-term investments:    
Debt Securities, Available-for-sale [Line Items]    
Adjusted Cost 292,696 749,377
Unrealized Gain 57 0
Unrealized Loss (5,972) (3,384)
Fair Value 286,781 745,993
Long-term investments: | Corporate debt securities | Level 2    
Debt Securities, Available-for-sale [Line Items]    
Adjusted Cost 156,687 724,517
Unrealized Gain 0 0
Unrealized Loss (4,065) (3,277)
Fair Value 152,622 721,240
Long-term investments: | U.S. treasury securities | Level 1    
Debt Securities, Available-for-sale [Line Items]    
Adjusted Cost 101,890 24,860
Unrealized Gain 0 0
Unrealized Loss (1,907) (107)
Fair Value 99,983 $ 24,753
Long-term investments: | Agency bonds | Level 2    
Debt Securities, Available-for-sale [Line Items]    
Adjusted Cost 34,119  
Unrealized Gain 57  
Unrealized Loss 0  
Fair Value $ 34,176  
v3.22.2.2
Cash and Cash Equivalents, and Investments and Fair Value Measurements - Contractual Maturity (Details)
$ in Thousands
Sep. 30, 2022
USD ($)
Adjusted Cost  
Due in 1 year or less $ 886,612
Due in 1-2 years 292,696
Investments not due at a single maturity date 34,218
Adjusted Cost 1,213,526
Fair Value  
Due in 1 year or less 871,408
Due in 1-2 years 286,781
Investments not due at a single maturity date 34,218
Fair Value $ 1,192,407
v3.22.2.2
Cash and Cash Equivalents, and Investments and Fair Value Measurements - Strategic Investment (Details)
$ in Millions
Jul. 31, 2022
USD ($)
Knack Technologies, Inc  
Schedule of Investments [Line Items]  
Investment without readily determinable fair value $ 6.0
v3.22.2.2
Cash and Cash Equivalents, and Investments and Fair Value Measurements - Debt (Details) - Estimate of Fair Value Measurement - Senior Notes - Fair Value, Measurements, Nonrecurring - USD ($)
$ in Millions
Sep. 30, 2022
Dec. 31, 2021
2026 Notes    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Convertible senior notes $ 370.0 $ 840.0
2025 Notes    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Convertible senior notes $ 595.0 $ 682.2
v3.22.2.2
Acquisition - Narrative (Details) - USD ($)
$ in Thousands
 3 Months Ended 9 Months Ended 12 Months Ended
Jan. 13, 2022
Sep. 30, 2022
Sep. 30, 2021
Sep. 30, 2022
Sep. 30, 2022
Sep. 30, 2021
Dec. 31, 2021
Business Acquisition [Line Items]              
Business acquisition settled         $ 401,125 $ 7,891  
Gain on foreign currency remeasurement of purchase consideration   $ 0 $ 0   4,628 0  
Busuu Online S.L.              
Business Acquisition [Line Items]              
Ownership percent of stock acquired 100.00%            
Acquisition related costs         600   $ 5,300
Fair value of purchase consideration $ 417,000            
Business acquisition settled 421,700            
Gain on foreign currency remeasurement of purchase consideration 4,600            
Potential additional payments, subject to performance-based contingencies $ 25,500            
Contingent consideration, liability   5,300   $ 5,300 5,300    
Net revenues       29,000      
Net loss       $ 28,700      
Pro forma revenue   164,700 184,200   562,400 601,500  
Pro forma net income (loss)   $ 253,600 $ (3,900)   $ 267,300 $ (55,600)  
v3.22.2.2
Acquisition - Schedule of Assets Acquired and Liabilities Assumed (Details) - USD ($)
$ in Thousands
 3 Months Ended
Jun. 30, 2022
Sep. 30, 2022
Jan. 13, 2022
Dec. 31, 2021
Business Acquisition [Line Items]        
Other long-term liabilities     $ (1,646)  
Goodwill   $ 589,702   $ 289,763
Busuu Online S.L.        
Business Acquisition [Line Items]        
Cash and cash equivalents     20,525  
Accounts receivable     2,446  
Right of use assets     2,715  
Other acquired assets     3,710  
Acquired intangible assets     71,600  
Total identifiable assets acquired     100,996  
Accounts payable     (5,174)  
Accrued liabilities     (21,964)  
Deferred revenue     (16,761)  
Long term operating lease liabilities     (2,038)  
Net identifiable assets acquired     53,413  
Goodwill     368,237  
Total fair value of purchase consideration     $ 421,650  
Decrease to accrued liabilities $ 800      
Increase to other long-term liabilities $ 1,700      
v3.22.2.2
Acquisition - Schedule of Intangible Assets (Details) - Busuu Online S.L.
$ in Thousands
Jan. 13, 2022
USD ($)
Business Acquisition [Line Items]  
Acquired intangible assets $ 71,600
Weighted-Average Amortization Period (in months) 68 months
Trade name  
Business Acquisition [Line Items]  
Acquired intangible assets $ 4,600
Weighted-Average Amortization Period (in months) 72 months
Customer lists  
Business Acquisition [Line Items]  
Acquired intangible assets $ 18,000
Weighted-Average Amortization Period (in months) 24 months
Developed technology  
Business Acquisition [Line Items]  
Acquired intangible assets $ 49,000
Weighted-Average Amortization Period (in months) 84 months
v3.22.2.2
Goodwill and Intangible Assets - Goodwill (Details)
$ in Thousands
 9 Months Ended
Sep. 30, 2022
USD ($)
Goodwill [Roll Forward]  
Beginning balance $ 289,763
Initial addition due to acquisition 367,376
Foreign currency translation adjustment (68,298)
Measurement period adjustments related to prior acquisition 861
Ending balance $ 589,702
v3.22.2.2
Goodwill and Intangible Assets - Finite-lived and Indefinite-lived Intangible Assets (Details) - USD ($)
$ in Thousands
 9 Months Ended 12 Months Ended
Sep. 30, 2022
Dec. 31, 2021
Finite Lived Intangible Assets [Line Items]    
Weighted-Average Amortization Period (in months) 67 months 65 months
Accumulated Amortization $ (80,431) $ (60,588)
Foreign Currency Translation Adjustment (11,859) 0
Net Carrying Amount 77,046  
Indefinite-lived trade name 3,600 3,600
Total intangible assets, net, gross carrying amount 172,936 101,154
Total intangible assets, net, Net carrying amount $ 80,646 $ 40,566
Developed technologies    
Finite Lived Intangible Assets [Line Items]    
Weighted-Average Amortization Period (in months) 80 months 76 months
Gross Carrying Amount $ 106,703 $ 57,521
Accumulated Amortization (41,306) (31,790)
Foreign Currency Translation Adjustment (8,638) 0
Net Carrying Amount $ 56,759 $ 25,731
Content libraries    
Finite Lived Intangible Assets [Line Items]    
Weighted-Average Amortization Period (in months) 60 months 60 months
Gross Carrying Amount $ 12,230 $ 12,230
Accumulated Amortization (8,670) (6,836)
Foreign Currency Translation Adjustment 0 0
Net Carrying Amount $ 3,560 $ 5,394
Customer lists    
Finite Lived Intangible Assets [Line Items]    
Weighted-Average Amortization Period (in months) 35 months 47 months
Gross Carrying Amount $ 34,190 $ 16,190
Accumulated Amortization (19,527) (12,432)
Foreign Currency Translation Adjustment (2,385) 0
Net Carrying Amount $ 12,278 $ 3,758
Trade and domain names    
Finite Lived Intangible Assets [Line Items]    
Weighted-Average Amortization Period (in months) 52 months 44 months
Gross Carrying Amount $ 16,213 $ 11,613
Accumulated Amortization (10,928) (9,530)
Foreign Currency Translation Adjustment (836) 0
Net Carrying Amount $ 4,449 $ 2,083
v3.22.2.2
Goodwill and Intangible Assets - Narrative (Details) - USD ($)
$ in Millions
 3 Months Ended 9 Months Ended
Sep. 30, 2022
Sep. 30, 2021
Sep. 30, 2022
Sep. 30, 2021
Acquisition-Related Intangible Assets        
Finite Lived Intangible Assets [Line Items]        
Amortization expense of acquisition related to acquired intangible assets $ 6.5 $ 3.0 $ 19.7 $ 10.7
v3.22.2.2
Goodwill and Intangible Assets - Estimated Future Amortization Expense Related to Intangible Assets (Details)
$ in Thousands
Sep. 30, 2022
USD ($)
Goodwill and Intangible Assets Disclosure [Abstract]  
Remaining three months of 2022 $ 5,950
2023 22,844
2024 12,757
2025 10,688
2026 10,340
Thereafter 14,467
Net Carrying Amount $ 77,046
v3.22.2.2
Required Materials Transition (Details) - GT Marketplace, LLC - USD ($)
$ in Millions
 3 Months Ended
Jun. 30, 2022
Apr. 30, 2022
Disposal Group, Disposed of by Sale, Not Discontinued Operations    
Impaired Long-Lived Assets Held and Used [Line Items]    
Consideration received on sale   $ 14.0
Gain from sale $ 4.4  
Disposal Group, Held-for-sale, Not Discontinued Operations    
Impaired Long-Lived Assets Held and Used [Line Items]    
Assets held for sale   $ 7.7
v3.22.2.2
Convertible Senior Notes - Narrative (Details)
$ / shares in Units, $ in Thousands
 1 Months Ended 3 Months Ended 9 Months Ended 12 Months Ended
Sep. 30, 2022
USD ($)
$ / shares
Aug. 31, 2020
USD ($)
Apr. 30, 2019
USD ($)
Apr. 30, 2018
day
Sep. 30, 2022
USD ($)
$ / shares
Sep. 30, 2021
USD ($)
Sep. 30, 2022
USD ($)
$ / shares
Sep. 30, 2021
USD ($)
Dec. 31, 2021
USD ($)
shares
Mar. 31, 2019
USD ($)
Debt Instrument [Line Items]                    
Repayments of convertible senior notes             $ 401,203 $ 300,755    
Gain (loss) on early extinguishment of debt         $ 93,519 $ 0 93,519 $ (78,152)    
Senior Notes | Sale Price Is Greater Or Equal 130%                    
Debt Instrument [Line Items]                    
Threshold trading days | day       20            
Threshold consecutive trading days | day       30            
Threshold percentage of stock price trigger       130.00%            
Senior Notes | Trading Price Per $1,000 Principal Amount Less Than 98%                    
Debt Instrument [Line Items]                    
Threshold trading days | day       5            
Threshold consecutive trading days | day       10            
Senior Notes | Trading Price Per $1,000 Principal Amount Less Than 98% | Maximum                    
Debt Instrument [Line Items]                    
Threshold percentage of stock price trigger       98.00%            
Senior Notes | Fundamental Change Scenario                    
Debt Instrument [Line Items]                    
Threshold percentage of stock price trigger       100.00%            
Senior Notes | 2026 Notes                    
Debt Instrument [Line Items]                    
Face value $ 500,000 $ 1,000,000     $ 500,000   $ 500,000   $ 1,000,000  
Interest rate, stated percentage   0.00%                
Proceeds from issuance of debt   $ 1,000,000                
Conversion ratio   0.0092978                
Conversion price (in dollars per share) | $ / shares $ 107.55       $ 107.55   $ 107.55      
Repurchased face amount $ 500,000       $ 500,000   $ 500,000      
Repayments of convertible senior notes 399,900       399,900          
Extinguishment incurred 1,300                  
Total consideration 401,200                  
Debt extinguished 494,700                  
Gain (loss) on early extinguishment of debt 93,500                  
Senior Notes | 0% Convertible Senior Notes Due 2026, Additional Notes                    
Debt Instrument [Line Items]                    
Face value   $ 100,000                
Senior Notes | 2025 Notes                    
Debt Instrument [Line Items]                    
Face value $ 699,979   $ 100,000   $ 699,979   $ 699,979   $ 699,982 $ 700,000
Interest rate, stated percentage                   0.125%
Proceeds from issuance of debt     $ 800,000              
Conversion ratio     0.0193956              
Conversion price (in dollars per share) | $ / shares $ 51.56       $ 51.56   $ 51.56      
Senior Notes | 2023 Notes                    
Debt Instrument [Line Items]                    
Issuance of common stock (in shares) | shares                 2,983,011  
v3.22.2.2
Convertible Senior Notes - Long-term Debt Instruments (Details) - Senior Notes - USD ($)
$ in Thousands
 1 Months Ended
Aug. 31, 2020
Apr. 30, 2019
2026 Notes    
Debt Instrument [Line Items]    
Principal amount $ 1,000,000  
Less initial purchasers’ discount (15,000)  
Less other issuance costs (904)  
Net proceeds $ 984,096  
2025 Notes    
Debt Instrument [Line Items]    
Principal amount   $ 800,000
Less initial purchasers’ discount   (18,998)
Less other issuance costs   (822)
Net proceeds   $ 780,180
v3.22.2.2
Convertible Senior Notes - Net Carrying Amount (Details) - Senior Notes - USD ($)
$ in Thousands
Sep. 30, 2022
Dec. 31, 2021
Aug. 31, 2020
Apr. 30, 2019
Mar. 31, 2019
2026 Notes          
Debt Instrument [Line Items]          
Principal $ 500,000 $ 1,000,000 $ 1,000,000    
Unamortized issuance costs (5,169) (12,309)      
2026 Notes | Carrying Amount | Fair Value, Measurements, Nonrecurring          
Debt Instrument [Line Items]          
Net carrying amount 494,831 987,691      
2025 Notes          
Debt Instrument [Line Items]          
Principal 699,979 699,982   $ 100,000 $ 700,000
Unamortized issuance costs (7,297) (9,518)      
2025 Notes | Carrying Amount | Fair Value, Measurements, Nonrecurring          
Debt Instrument [Line Items]          
Net carrying amount $ 692,682 $ 690,464      
v3.22.2.2
Convertible Senior Notes - Interest Expense Recognized (Details) - Senior Notes - USD ($)
$ in Thousands
 3 Months Ended 9 Months Ended
Sep. 30, 2022
Sep. 30, 2021
Sep. 30, 2022
Sep. 30, 2021
2026 Notes        
Debt Instrument [Line Items]        
Contractual interest expense $ 0 $ 0 $ 0 $ 0
Amortization of issuance costs 556 663 1,863 1,970
Total interest expense 556 663 1,863 1,970
2025 Notes        
Debt Instrument [Line Items]        
Contractual interest expense 220 221 654 676
Amortization of issuance costs 749 749 2,221 2,297
Total interest expense 969 970 2,875 2,973
2023 Notes        
Debt Instrument [Line Items]        
Contractual interest expense 0 0 0 78
Amortization of issuance costs 0 0 0 242
Total interest expense $ 0 $ 0 $ 0 $ 320
v3.22.2.2
Convertible Senior Notes - Capped Call Transactions (Details) - Senior Notes - USD ($)
$ / shares in Units, $ in Thousands
 1 Months Ended
Aug. 31, 2020
Apr. 30, 2019
Sep. 30, 2022
2026 Notes      
Debt Instrument [Line Items]      
Proceeds from issuance of convertible senior notes, net of issuance costs $ 984,096    
Conversion price (in dollars per share)     $ 107.55
2025 Notes      
Debt Instrument [Line Items]      
Proceeds from issuance of convertible senior notes, net of issuance costs   $ 780,180  
Conversion price (in dollars per share)     $ 51.56
Capped Call | 2026 Notes      
Debt Instrument [Line Items]      
Proceeds from issuance of convertible senior notes, net of issuance costs $ 103,400    
Debt instrument, convertible (in shares)     9,297,800
Conversion price (in dollars per share)     $ 156.44
Capped Call | 2025 Notes      
Debt Instrument [Line Items]      
Proceeds from issuance of convertible senior notes, net of issuance costs   $ 97,200  
Debt instrument, convertible (in shares)     13,576,513
Conversion price (in dollars per share)     $ 79.32
v3.22.2.2
Commitments and Contingencies (Details)
$ in Thousands
Aug. 12, 2020
claim
Jul. 01, 2020
claim
May 12, 2020
USD ($)
claim
Jan. 26, 2022
claim
Loss Contingencies [Line Items]        
Loss contingency, number of arbitration demands remaining       4
2018 Data Incident, Arbitration Demands | Pending Litigation        
Loss Contingencies [Line Items]        
Loss contingency, number of arbitration demands filed 577 1,007 15,107  
Loss contingency, damages sought, value | $     $ 25  
v3.22.2.2
Stockholders' Equity - Securities Repurchase Program (Details) - USD ($)
$ in Thousands
 1 Months Ended 3 Months Ended 9 Months Ended
Sep. 30, 2022
Jun. 30, 2022
Sep. 30, 2022
Sep. 30, 2022
Sep. 30, 2021
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]          
Stock repurchase program, increase of authorized amount   $ 1,000,000      
Stock repurchase program, authorized amount   $ 2,000,000      
Repayments of convertible senior notes       $ 401,203 $ 300,755
Repurchases of common stock (in shares)     1,146,803    
Repurchases of common stock     $ 23,078 323,528  
Remaining under repurchase program $ 642,600   642,600 642,600  
2026 Notes | Senior Notes          
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]          
Repurchased face amount 500,000   500,000 $ 500,000  
Repayments of convertible senior notes $ 399,900   $ 399,900    
v3.22.2.2
Stockholders' Equity - Accelerated Share Repurchase (Details)
$ / shares in Units, $ in Thousands
 3 Months Ended 4 Months Ended 9 Months Ended
Feb. 22, 2022
USD ($)
transaction
day
shares
Dec. 03, 2021
USD ($)
Sep. 30, 2022
shares
Jun. 30, 2022
$ / shares
shares
Sep. 30, 2022
USD ($)
shares
Sep. 30, 2021
USD ($)
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]            
Purchase price         $ 323,528 $ 0
2022 ASR            
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]            
Number of transactions | transaction 2          
Purchase price $ 300,000          
Stock repurchased and retired during period, shares (in shares) | shares 8,562,255   837,001 9,399,256    
Stock repurchased and retired during period, number of business days for delivery | day 3          
Stock repurchased and retired during period, percentage 80.00%          
Stock repurchased and retired during the period, weighted-average price (in dollars per share) | $ / shares       $ 31.9174    
2021 ASR            
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]            
Purchase price   $ 300,000        
Stock repurchased and retired during period, shares (in shares) | shares         2,163,219  
v3.22.2.2
Stockholders' Equity - Schedule of Share-based Compensation Expense (Details) - USD ($)
$ in Thousands
 3 Months Ended 9 Months Ended
Sep. 30, 2022
Sep. 30, 2021
Sep. 30, 2022
Sep. 30, 2021
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items]        
Share-based compensation expense $ 34,170 $ 24,512 $ 98,341 $ 76,157
Cost of revenues        
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items]        
Share-based compensation expense 653 393 1,945 1,174
Research and development        
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items]        
Share-based compensation expense 9,172 8,917 30,954 25,976
Sales and marketing        
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items]        
Share-based compensation expense 2,771 3,051 11,176 9,625
General and administrative        
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items]        
Share-based compensation expense $ 21,574 $ 12,151 $ 54,266 $ 39,382
v3.22.2.2
Stockholders' Equity - Narrative of Share-based Compensation Expense (Details) - USD ($)
$ in Millions
 3 Months Ended 9 Months Ended
Sep. 30, 2022
Sep. 30, 2021
Sep. 30, 2022
Sep. 30, 2021
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]        
Share-based compensation expense capitalized $ 0.7 $ 0.6 $ 4.8 $ 1.8
RSUs and PSUs        
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]        
Unrecognized compensation costs related to restricted stock units $ 238.0   $ 238.0  
Weighted-average vesting period     2 years 4 months 24 days  
v3.22.2.2
Stockholders' Equity - Schedule of RSU and PSU Activity (Details) - RSUs and PSUs
 9 Months Ended
Sep. 30, 2022
$ / shares
shares
Shares Outstanding  
Beginning balance (in shares) | shares 8,171,462
Granted (in shares) | shares 4,570,547
Released (in shares) | shares (1,356,059)
Forfeited (in shares) | shares (1,612,877)
Ending balance (in shares) | shares 9,773,073
Weighted Average Grant Date Fair Value  
Beginning balance (in dollars per share) | $ / shares $ 46.36
Granted (in dollars per share) | $ / shares 28.36
Released (in dollars per share) | $ / shares 63.12
Forfeited (in dollars per share) | $ / shares 39.31
Ending balance (in dollars per share) | $ / shares $ 36.80
v3.22.2.2
Income Taxes (Details) - USD ($)
$ in Thousands
 3 Months Ended 9 Months Ended
Sep. 30, 2022
Sep. 30, 2021
Sep. 30, 2022
Sep. 30, 2021
Income Tax Disclosure [Abstract]        
Benefit from (provision for) income taxes $ 167,264 $ (747) $ 162,987 $ (5,793)
Tax benefit related to release of valuation allowance $ 174,600   $ 174,601 $ 0
v3.22.2.2
Label Element Value
Accounting Standards Update [Extensible Enumeration] us-gaap_AccountingStandardsUpdateExtensibleList Accounting Standards Update 2020-06 [Member]