CHEGG, INC, 10-Q filed on 8/7/2023
Quarterly Report
v3.23.2
Cover Page - shares
 6 Months Ended
Jun. 30, 2023
Jul. 31, 2023
Cover [Abstract]    
Document Type 10-Q  
Document Quarterly Report true  
Document Period End Date Jun. 30, 2023  
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, $0.001 par value per share  
Trading Symbol CHGG  
Security Exchange Name NYSE  
Entity Current Reporting Status Yes  
Entity Interactive Data Current Yes  
Entity Filer Category Large Accelerated Filer  
Entity Small Business false  
Entity Emerging Growth Company false  
Entity Shell Company false  
Entity Common Stock, Shares Outstanding   115,321,288
Entity Central Index Key 0001364954  
Current Fiscal Year End Date --12-31  
Document Fiscal Year Focus 2023  
Document Fiscal Period Focus Q2  
Amendment Flag false  
v3.23.2
CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($)
$ in Thousands
Jun. 30, 2023
Dec. 31, 2022
Current assets    
Cash and cash equivalents $ 175,368 $ 473,677
Short-term investments 209,686 583,973
Accounts receivable, net of allowance of $224 and $394 at June 30, 2023 and December 31, 2022, respectively 20,670 23,515
Prepaid expenses 18,620 28,481
Other current assets 22,372 34,754
Total current assets 446,716 1,144,400
Long-term investments 422,758 216,233
Property and equipment, net 198,318 204,383
Goodwill 629,564 615,093
Intangible assets, net 67,630 78,333
Right of use assets 28,267 18,838
Deferred tax assets 146,790 167,524
Other assets 28,492 20,612
Total assets 1,968,535 2,465,416
Current liabilities    
Accounts payable 12,954 12,367
Deferred revenue 53,200 56,273
Accrued liabilities 76,657 70,234
Total current liabilities 142,811 138,874
Long-term liabilities    
Convertible senior notes, net 767,043 1,188,593
Long-term operating lease liabilities 21,253 13,375
Other long-term liabilities 2,427 7,985
Total long-term liabilities 790,723 1,209,953
Total liabilities 933,534 1,348,827
Commitments and contingencies (Note 6)
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; 115,177,618 and 126,473,827 shares issued and outstanding at June 30, 2023 and December 31, 2022, respectively 115 126
Additional paid-in capital 1,121,820 1,244,504
Accumulated other comprehensive loss (43,179) (57,488)
Accumulated deficit (43,755) (70,553)
Total stockholders' equity 1,035,001 1,116,589
Total liabilities and stockholders' equity $ 1,968,535 $ 2,465,416
v3.23.2
CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($)
$ in Thousands
Jun. 30, 2023
Dec. 31, 2022
Statement of Financial Position [Abstract]    
Allowance for doubtful accounts receivable, current $ 224 $ 394
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) 115,177,618 126,473,827
Common stock, shares outstanding (in shares) 115,177,618 126,473,827
v3.23.2
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($)
shares in Thousands, $ in Thousands
 3 Months Ended 6 Months Ended
Jun. 30, 2023
Jun. 30, 2022
Jun. 30, 2023
Jun. 30, 2022
Income Statement [Abstract]        
Net revenues $ 182,853 $ 194,721 $ 370,454 $ 396,965
Cost of revenues 47,412 45,684 96,562 100,769
Gross profit 135,441 149,037 273,892 296,196
Operating expenses:        
Research and development 52,872 52,480 99,779 104,895
Sales and marketing 30,956 35,279 67,973 77,777
General and administrative 70,309 53,935 129,282 100,805
Total operating expenses 154,137 141,694 297,034 283,477
(Loss) income from operations (18,696) 7,343 (23,142) 12,719
Interest expense, net and other income, net:        
Interest expense, net (1,114) (1,616) (2,382) (3,213)
Other income, net 64,103 1,809 76,179 7,989
Total interest expense, net and other income, net 62,989 193 73,797 4,776
Income before provision for income taxes 44,293 7,536 50,655 17,495
Provision for income taxes (19,681) (60) (23,857) (4,277)
Net income $ 24,612 $ 7,476 $ 26,798 $ 13,218
Net income (loss) per share        
Basic (in dollars per share) $ 0.21 $ 0.06 $ 0.22 $ 0.10
Diluted (in dollars per share) $ (0.11) $ 0.06 $ (0.08) $ 0.10
Weighted average shares used to compute net income (loss) per share        
Basic (in shares) 117,977 126,272 120,828 129,201
Diluted (in shares) 132,944 149,574 137,416 129,934
v3.23.2
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) - USD ($)
$ in Thousands
 3 Months Ended 6 Months Ended
Jun. 30, 2023
Jun. 30, 2022
Jun. 30, 2023
Jun. 30, 2022
Statement of Comprehensive Income [Abstract]        
Net income $ 24,612 $ 7,476 $ 26,798 $ 13,218
Other comprehensive income (loss)        
Change in net unrealized loss on investments, net of tax (4,420) (2,333) (608) (15,250)
Change in foreign currency translation adjustments, net of tax 6,579 (29,613) 14,917 (48,284)
Other comprehensive income (loss) 2,159 (31,946) 14,309 (63,534)
Total comprehensive income (loss) $ 26,771 $ (24,470) $ 41,107 $ (50,316)
v3.23.2
CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY - USD ($)
$ in Thousands
Total
Common Stock
Additional Paid-In Capital
Accumulated Other Comprehensive Loss
Accumulated Deficit
Beginning balance (in shares) at Dec. 31, 2021   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)   (11,562,000)      
Repurchases of common stock (300,450) $ (12) (300,438)    
Issuance of common stock upon exercise of stock options and ESPP (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)   635,000      
Net share settlement of equity awards 10,220 $ (1) 10,221    
Share-based compensation expense 68,303   68,303    
Other comprehensive income (loss) (63,534)     (63,534)  
Net income 13,218       13,218
Ending balance (in shares) at Jun. 30, 2022   126,344,000      
Ending balance at Jun. 30, 2022 818,791 $ 126 1,211,506 (68,868) (323,973)
Beginning balance (in shares) at Dec. 31, 2021   136,952,000      
Beginning balance at Dec. 31, 2021 $ 1,106,917 $ 137 1,449,305 (5,334) (337,191)
Ending balance (in shares) at Dec. 31, 2022 126,473,827 126,474,000      
Ending balance at Dec. 31, 2022 $ 1,116,589 $ 126 1,244,504 (57,488) (70,553)
Beginning balance (in shares) at Mar. 31, 2022   126,682,000      
Beginning balance at Mar. 31, 2022 808,521 $ 127 1,176,765 (36,922) (331,449)
Increase (Decrease) in Stockholders' Equity [Roll Forward]          
Repurchases of common stock (in shares)   (837,000)      
Repurchases of common stock 0 $ (1) 1    
Issuance of common stock upon exercise of stock options and ESPP (in shares)   265,000      
Issuance of common stock upon exercise of stock options and ESPP 4,102   4,102    
Net share settlement of equity awards (in shares)   234,000      
Net share settlement of equity awards 2,754   2,754    
Share-based compensation expense 33,392   33,392    
Other comprehensive income (loss) (31,946)     (31,946)  
Net income 7,476       7,476
Ending balance (in shares) at Jun. 30, 2022   126,344,000      
Ending balance at Jun. 30, 2022 $ 818,791 $ 126 1,211,506 (68,868) (323,973)
Beginning balance (in shares) at Dec. 31, 2022 126,473,827 126,474,000      
Beginning balance at Dec. 31, 2022 $ 1,116,589 $ 126 1,244,504 (57,488) (70,553)
Increase (Decrease) in Stockholders' Equity [Roll Forward]          
Repurchases of common stock (in shares)   (13,008,000)      
Repurchases of common stock (186,368) $ (13) (186,355)    
Issuance of common stock upon exercise of stock options and ESPP (in shares)   376,000      
Issuance of common stock upon exercise of stock options and ESPP 3,079   3,079    
Net share settlement of equity awards (in shares)   1,336,000      
Net share settlement of equity awards 11,066 $ (2) 11,068    
Share-based compensation expense 71,363   71,363    
Net proceeds from capped call related to conversions of 2023 notes and 2025 notes 297   297    
Other comprehensive income (loss) 14,309     14,309  
Net income $ 26,798       26,798
Ending balance (in shares) at Jun. 30, 2023 115,177,618 115,178,000      
Ending balance at Jun. 30, 2023 $ 1,035,001 $ 115 1,121,820 (43,179) (43,755)
Beginning balance (in shares) at Mar. 31, 2023   119,628,000      
Beginning balance at Mar. 31, 2023 1,006,759 $ 120 1,120,344 (45,338) (68,367)
Increase (Decrease) in Stockholders' Equity [Roll Forward]          
Repurchases of common stock (in shares)   (5,408,000)      
Repurchases of common stock (35,057) $ (6) (35,051)    
Issuance of common stock upon exercise of stock options and ESPP (in shares)   358,000      
Issuance of common stock upon exercise of stock options and ESPP 2,935   2,935    
Net share settlement of equity awards (in shares)   600,000      
Net share settlement of equity awards 3,331 $ 1 3,332    
Share-based compensation expense 36,627   36,627    
Net proceeds from capped call related to conversions of 2023 notes and 2025 notes 297   297    
Other comprehensive income (loss) 2,159     2,159  
Net income $ 24,612       24,612
Ending balance (in shares) at Jun. 30, 2023 115,177,618 115,178,000      
Ending balance at Jun. 30, 2023 $ 1,035,001 $ 115 $ 1,121,820 $ (43,179) $ (43,755)
v3.23.2
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($)
$ in Thousands
 6 Months Ended
Jun. 30, 2023
Jun. 30, 2022
Cash flows from operating activities    
Net income $ 26,798 $ 13,218
Adjustments to reconcile net income to net cash provided by operating activities:    
Share-based compensation expense 69,666 64,171
Other depreciation and amortization expense 52,027 41,921
Deferred income taxes 20,142 (303)
Gain on early extinguishment of debt (53,777) 0
Restructuring charges 5,704 0
Loss contingency 7,000 0
Operating lease expense, net 3,009 3,242
Amortization of debt issuance costs 1,988 2,779
Loss from write-off of property and equipment 450 2,767
Gain on foreign currency remeasurement of purchase consideration 0 (4,628)
Print textbook depreciation expense 0 1,610
Impairment on lease related assets 0 3,411
Gain on textbook library, net 0 (4,967)
Other non-cash items (1,083) 470
Change in assets and liabilities, net of effect of acquisition of business:    
Accounts receivable 3,081 3,227
Prepaid expenses and other current assets 15,082 28,768
Other assets 5,470 13,058
Accounts payable (671) (5,246)
Deferred revenue (3,634) 4,256
Accrued liabilities (7,140) (21,034)
Other liabilities (8,205) (2,965)
Net cash provided by operating activities 135,907 143,755
Cash flows from investing activities    
Purchases of property and equipment (33,864) (57,286)
Purchases of textbooks 0 (3,815)
Proceeds from disposition of textbooks 9,787 2,494
Purchases of investments (552,409) (356,553)
Maturities of investments 476,862 522,466
Proceeds from sale of investments 238,681 0
Purchase of strategic equity investment (9,604) 0
Acquisition of business, net of cash acquired 0 (401,125)
Net cash provided by (used in) investing activities 129,453 (293,819)
Cash flows from financing activities    
Proceeds from common stock issued under stock plans, net 3,081 4,558
Payment of taxes related to the net share settlement of equity awards (11,068) (10,221)
Repurchases of common stock (186,368) (300,450)
Repayment of convertible senior notes (369,761) 0
Proceeds from exercise of convertible senior notes capped call 300 0
Net cash used in financing activities (563,819) (306,113)
Effect of exchange rate changes 197 4,628
Net decrease in cash, cash equivalents and restricted cash (298,262) (451,549)
Cash, cash equivalents and restricted cash, beginning of period 475,854 855,893
Cash, cash equivalents and restricted cash, end of period 177,592 404,344
Supplemental cash flow data:    
Interest 517 437
Income taxes, net of refunds 6,171 3,915
Cash paid for amounts included in the measurement of lease liabilities:    
Operating cash flows from operating leases 4,909 3,869
Right of use assets obtained in exchange for lease obligations:    
Operating leases 12,407 3,244
Non-cash investing and financing activities:    
Accrued purchases of long-lived assets 4,518 4,057
Reconciliation of cash, cash equivalents and restricted cash:    
Cash and cash equivalents 175,368 402,089
Restricted cash included in other current assets 60 64
Restricted cash included in other assets 2,164 2,191
Total cash, cash equivalents and restricted cash $ 177,592 $ 404,344
v3.23.2
Background and Basis of Presentation
 6 Months Ended
Jun. 30, 2023
Organization, Consolidation and Presentation of Financial Statements [Abstract]  
Background and Basis of Presentation Background and Basis of Presentation
Company and Background

Chegg, Inc. (“we,” “us,” “our,” “Company” or “Chegg”), 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 June 30, 2023, our results of operations, results of comprehensive income (loss), and stockholders' equity for the three and six months ended June 30, 2023 and 2022 and cash flows for the six months ended June 30, 2023 and 2022. Our results of operations, results of comprehensive income (loss), stockholders' equity, and cash flows for the six months ended June 30, 2023 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, 2022 (the Annual Report on Form 10-K) filed with the SEC.

Except for our policies on strategic investments, 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.

Strategic Investments

Investments in partnerships where we have the ability to exercise significant influence, but not control, over the investee are accounted for under the equity method of accounting. Equity method investments are initially recorded at cost and adjusted for our share of the investees' earnings or losses, based on our percentage ownership, recognized on a one-quarter lag basis within other income, net on our condensed consolidated statements of operations.

Investments in entities where we do not have the ability to exercise significant influence and which do not have readily determinable fair values are accounted for at cost, plus or minus changes resulting from observable price changes in orderly transactions for the identical or a similar investment of the same issuer, if any.

Strategic investments are included in other assets on our condensed consolidated balance sheets. We assess our strategic investments for impairment whenever events or changes in circumstances indicate that they may be impaired. The factors we consider in our evaluation include, but are not limited to, a significant deterioration in the earnings performance or business prospects of the investee or factors that raise significant concerns about the investee’s ability to continue as a going concern, such as negative cash flows from operations or working capital deficiencies.

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 six months ended June 30, 2023 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, 2022.

Reclassification of Prior Period Presentation

In order to conform with current period presentation, $0.3 million of deferred tax assets during the six months ended June 30, 2022 has been reclassified from other non-cash items on our condensed consolidated statements of cash flows. This change in presentation does not affect previously reported results.

Leases

During the six months ended June 30, 2023, we extended our existing lease agreement related to our corporate headquarters in Santa Clara and reassessed lease terms related to office spaces internationally in India, resulting in the recording of $12.4 million of right of use assets in exchange for lease liabilities.

The aggregate future minimum lease payments and reconciliation to operating lease liabilities as of June 30, 2023, are as follows (in thousands):
June 30, 2023
Remaining six months of 2023$4,356 
20247,886 
20256,622 
20265,932 
20275,515 
Thereafter1,902 
Total future minimum lease payments32,213 
Less imputed interest(3,896)
Total lease liabilities$28,317 

Condensed Consolidated Statements of Operations Details

Other income, net consists of the following (in thousands):
Three Months Ended
June 30,		Six Months Ended
June 30,
2023202220232022
Gain on early extinguishment of debt$53,777 $— 53,777 $— 
Interest income$10,658 $2,032 21,921 $3,509 
Gain on foreign currency remeasurement of purchase consideration— — — $4,628 
Other(332)(223)481 (148)
Total other income, net
$64,103 $1,809 $76,179 $7,989 

Recent Accounting Pronouncements

Recently Issued Accounting Pronouncements Not Yet Adopted

There were no accounting pronouncements issued during the six months ended June 30, 2023 that would have a material impact on our financial statements.
Recently Adopted Accounting Pronouncements

We did not adopt any accounting pronouncements during the six months ended June 30, 2023 that had a material impact on our financial statements.
v3.23.2
Revenues
 6 Months Ended
Jun. 30, 2023
Revenue from Contract with Customer [Abstract]  
Revenues Revenues
Revenue Recognition

Revenues are recognized when control of the 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, with certain revenues being recognized at a point in time.

We have changed our revenue disaggregation to Subscription Services and Skills and Other to better reflect the nature and timing of revenue and cash flows. Subscription Services includes revenues from our Chegg Study Pack, Chegg Study, Chegg Writing, Chegg Math, and Busuu offerings. Skills and Other includes revenues from our Skills, advertising services, print textbooks and eTextbooks offerings. We no longer present our Required Materials product line separately as we no longer recognize significant revenue from our print textbook and eTextbooks offerings.

The following tables set forth our total net revenues for the periods shown disaggregated for our Subscription Services and Skills and Other product lines (in thousands, except percentages):
 Three Months Ended
June 30,		Change
 20232022$%
Subscription Services$165,855 $175,424 $(9,569)(5)%
Skills and Other16,998 19,297 (2,299)(12)
Total net revenues$182,853 $194,721 $(11,868)(6)
 Six Months Ended
June 30,		Change
 20232022$%
Subscription Services$334,295 $348,461 $(14,166)(4)%
Skills and Other36,159 48,504 (12,345)(25)
Total net revenues$370,454 $396,965 $(26,511)(7)

During the three and six months ended June 30, 2023, we recognized revenues of $41.1 million and $47.9 million, respectively, that were included in our deferred revenue balance at the beginning of each respective reporting period. During the three and six months ended June 30, 2022, we recognized revenues of $42.2 million and $32.9 million, respectively, that were included in our deferred revenue balance at the beginning of each respective reporting period.

Contract Balances

The following table presents our accounts receivable, net, contract assets and deferred revenue balances (in thousands, except percentages):
 Change
 June 30,
2023		December 31, 2022$%
Accounts receivable, net$20,670 $23,515 $(2,845)(12)%
Contract assets10,693 11,946 (1,253)(10)
Deferred revenue53,200 56,273 (3,073)(5)

During the six months ended June 30, 2023 our accounts receivable, net balance decreased by $2.8 million, or 12%, primarily due to timing of billings and seasonality of our business. During the six months ended June 30, 2023, our contract assets balance decreased by $1.3 million, or 10%, primarily due to our Thinkful service. During the six months ended June 30, 2023, our deferred revenue balance decreased by $3.1 million, or 5%, primarily due to timing of bookings and seasonality of our business.
v3.23.2
Net Income (Loss) Per Share
 6 Months Ended
Jun. 30, 2023
Earnings Per Share [Abstract]  
Net Income (Loss) Per Share Net Income (Loss) Per Share
The following tables set forth the computation of basic and diluted net income (loss) per share (in thousands, except per share amounts):
Three Months Ended
June 30,		Six Months Ended
June 30,
2023202220232022
Basic
Numerator:
Net income
$24,612 $7,476 $26,798 $13,218 
Denominator:
Weighted average shares used to compute net income per share, basic
117,977 126,272 120,828 129,201 
Net income per share, basic
$0.21 $0.06 $0.22 $0.10 
Diluted
Numerator:
Net income$24,612 $7,476 $26,798 $13,218 
Convertible senior notes activity, net of tax(1)
(39,398)1,212 (38,446)— 
Net (loss) income, diluted
$(14,786)$8,688 $(11,648)$13,218 
Denominator:
Weighted average shares used to compute net income per share, basic
117,977 126,272 120,828 129,201 
Shares related to stock plan activity— 427 — 733 
Shares related to convertible senior notes14,967 22,875 16,588 — 
Weighted average shares used to compute net (loss) income per share, diluted
132,944 149,574 137,416 129,934 
Net (loss) income per share, diluted
$(0.11)$0.06 $(0.08)$0.10 
(1) Includes the gain on early extinguishment and interest expense on our notes, net of tax. For further information, see Note 5, “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
June 30,		Six Months Ended
June 30,
2023202220232022
Shares related to stock plan activity9,982 8,041 7,661 3,645 
Shares related to convertible senior notes— — — 22,875 
Total common stock equivalents9,982 8,041 7,661 26,520 
v3.23.2
Cash and Cash Equivalents, Investments and Fair Value Measurements
 6 Months Ended
Jun. 30, 2023
Cash and Cash Equivalents [Abstract]  
Cash and Cash Equivalents, Investments and Fair Value Measurements Cash and Cash Equivalents, 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 June 30, 2023 and December 31, 2022 (in thousands except for fair value levels):
 June 30, 2023
 Fair Value LevelAdjusted CostUnrealized GainUnrealized LossFair Value
Cash and cash equivalents:   
Cash$38,597 $— $— $38,597 
Money market fundsLevel 1136,771 — — 136,771 
Total cash and cash equivalents$175,368 $— $— $175,368 
Short-term investments:   
Corporate debt securitiesLevel 2$106,429 $— $(805)$105,624 
U.S. treasury securitiesLevel 130,063 — (32)30,031 
Agency bondsLevel 274,496 — (465)74,031 
Total short-term investments$210,988 $— $(1,302)$209,686 
Long-term investments:   
Corporate debt securitiesLevel 2$195,372 $10 $(1,736)$193,646 
U.S. treasury securitiesLevel 198,946 — (1,168)97,778 
Agency bondsLevel 2133,017 — (1,683)131,334 
Total long-term investments$427,335 $10 $(4,587)$422,758 

 December 31, 2022
 Fair Value LevelAdjusted CostUnrealized GainUnrealized LossFair Value
Cash and cash equivalents:   
Cash$33,532 $— $— $33,532 
Money market fundsLevel 1440,145 — — 440,145 
Total cash and cash equivalents$473,677 $— $— $473,677 
Short-term investments:   
Commercial paperLevel 2$11,744 $— $(29)$11,715 
Corporate debt securitiesLevel 2491,459 — (4,130)487,329 
U.S. treasury securitiesLevel 185,271 — (342)84,929 
Total short-term investments$588,474 $— $(4,501)$583,973 
Long-term investments:   
Corporate debt securitiesLevel 2$125,735 $158 $(909)$124,984 
U.S. treasury securitiesLevel 130,633 122 — 30,755 
Agency bondsLevel 260,635 — (141)60,494 
Total long-term investments$217,003 $280 $(1,050)$216,233 

As of June 30, 2023, we determined that the unrealized losses on our investments were not driven by credit related factors. During the three and six months ended June 30, 2023 and 2022, we did not recognize any losses on our investments due to credit related factors. During the three and six months ended June 30, 2023 and 2022, 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 June 30, 2023 (in thousands):
 Adjusted CostFair Value
Due within one year$210,988 $209,686 
Due after one year through three years427,335 422,758 
Investments not due at a single maturity date136,771 136,771 
Total$775,094 $769,215 

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

Strategic Investments

In May 2023, we entered into a $15.0 million commitment to invest in Sound Ventures AI Fund, L.P. (Sound Ventures), a limited partnership that invests in artificial intelligence companies, for an approximate 6% ownership. We accounted for our investment under the equity method of accounting. During the three months ended June 30, 2023, we funded $9.6 million of our investment commitment. As part of the conditions for entering into the investment, we are contractually required to provide additional investment commitments. As of June 30, 2023, we have unfunded investment commitments of $5.4 million, which can be issued at any time within five years of the commencement of the partnership, which occurred in February 2023.

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 and six months ended June 30, 2023, 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 and six months ended June 30, 2023.

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 June 30, 2023 and December 31, 2022 was $312.7 million and $385.0 million, respectively. The estimated fair value of the 2025 notes as of June 30, 2023 and December 31, 2022 was $318.5 million and $640.5 million, respectively. For further information on the notes, refer to Note 5, “Convertible Senior Notes.”
v3.23.2
Convertible Senior Notes
 6 Months Ended
Jun. 30, 2023
Debt Disclosure [Abstract]  
Convertible Senior Notes Convertible Senior Notes
In 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 May 2023, in connection with our securities repurchase program, we extinguished $85.8 million and $341.1 million aggregate principal amount of the 2026 notes and 2025 notes, respectively, in privately-negotiated transactions for a total consideration of $368.6 million, which was paid to the holders in cash. We also incurred approximately $1.2 million in fees resulting in a total reacquisition price of $369.8 million. The carrying amount of the extinguished notes was $423.5 million resulting in a $53.8 million gain on early extinguishment of debt. We elected to reacquire and not cancel the extinguished 2026 notes and the 2025 notes were canceled with the trustee. Additionally, we terminated 2025 notes capped call transactions underlying 6,615,161 shares of our common stock and received aggregate cash proceeds of $0.3 million. As of June 30, 2023, we had 9,297,800 and 6,961,352 shares remaining underlying the 2026 notes and 2025 notes, respectively.

During the three months ended June 30, 2023, 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.
The net carrying amount of the notes is as follows (in thousands):
June 30, 2023December 31, 2022
2026 Notes2025 Notes2026 Notes2025 Notes
Principal$414,198 $358,914 $500,000 $699,979 
Unamortized issuance costs(3,466)(2,603)(4,837)(6,549)
Net carrying amount$410,732 $356,311 $495,163 $693,430 

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

Three Months Ended June 30,Six Months Ended June 30,
2023202220232022
2026 notes:
Contractual interest expense$— $— $— $— 
Amortization of issuance costs310 657 635 1,307 
Total 2026 notes interest expense$310 $657 $635 $1,307 
2025 notes:
Contractual interest expense$182 $219 $398 $434 
Amortization of issuance costs621 740 1,353 1,472 
Total 2025 notes interest expense$803 $959 $1,751 $1,906 

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 June 30, 2023, cover 9,297,800 and 6,961,352 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.
v3.23.2
Commitments and Contingencies
 6 Months Ended
Jun. 30, 2023
Commitments and Contingencies Disclosure [Abstract]  
Commitments and Contingencies Commitments and Contingencies
We 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 1, 2023, Plaintiff Shiva Stein, derivatively on behalf of Chegg, filed a stockholder derivative complaint in the Court of Chancery of the State of Delaware (Case No. 2023-0244-NAC) asserting breach of fiduciary duty, unjust enrichment, and waste of corporate asset claims against members of Chegg’s Board and certain Chegg officers. The matter is stayed. The Company disputes these claims and intends to vigorously defend itself in this matter.

On February 14, 2023, Plaintiff Brian Stansell, individually and on behalf of other similarly situated stockholders of Chegg, filed a putative class action complaint in the Court of Chancery of the State of Delaware (Case No. 2023-0180) on behalf of all Chegg stockholders who were eligible to vote at Chegg's 2022 Annual Stockholders' Meeting, asserting breach of fiduciary duty claims against the members of Chegg's Board. The Company disputes these claims and intends to vigorously defend itself in this matter.
On December 27, 2022, Plaintiff Sheri Moyer, individually and on behalf of all others similarly situated, filed a putative consumer class action in the United States District Court for the Northern District of California (Case No. 22-cv-09123) on behalf of all purchasers of a Chegg product or service as part of an automatic renewal plan or continuous service offer within the past four years. On July 25, 2023, the Company received an order granting its motion to compel arbitration, and the case will be stayed pending arbitration. The Company disputes these claims and intends to vigorously defend itself in this matter.

On December 22, 2022, JPMorgan Chase Bank, N.A. (JPMC) asserted a demand for repayment by the Company of certain investment proceeds received by the Company in its capacity as an investor in TAPD, Inc. (more commonly known as “Frank”). JPMC seeks such repayment pursuant to certain provisions in the existing Support Agreement between JPMC and the Company that was entered into in connection with JPMC's acquisition of Frank. JPMC has alleged fraud on the part of certain former Frank executives regarding the quantity and quality of its customer accounts. The Company is not at fault however is pursuing a settlement agreement with JPMC. As of June 30, 2023, a loss is probable and reasonably estimable, therefore we have recognized an estimated loss contingency accrual of $7.0 million within general and administrative expense on our condensed consolidated statements of operations.

On November 9, 2022, Plaintiff Joshua Keller, individually and on behalf of all others similarly situated, filed a putative class action in the United States District Court for the Northern District of California (Case No. 22-cv-06986) on behalf of individuals whose data was allegedly impacted by past data breaches. The Company disputes these claims and intends to vigorously defend itself in this matter.

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 violations of securities laws and breaches of fiduciary duties. On February 22, 2023, Plaintiff filed an Amended Shareholder Derivative Complaint. This matter has been consolidated with Choi, below, and both matters are stayed. 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 violations of securities laws, breaches of fiduciary duties, unjust enrichment, abuse of control, gross mismanagement, and waste of corporate assets. On February 22, 2023, Plaintiff filed an Amended Shareholder Derivative Complaint. This matter has been consolidated with Robinson, above, and both matters are stayed. The Company disputes these claims and intends to vigorously defend itself in this matter.

On December 22, 2021, Steven Leventhal, individually and on behalf of all others similarly situated, filed a purported 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. On September 7, 2022, KBC Asset Management and The Pompano Beach Police & Firefighters Retirement System were appointed as lead plaintiff in the case. On December 8, 2022, Plaintiff filed his Amended Complaint and 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. Pearson’s June 29, 2022 Motion for Leave to File Amended Complaint seeking to add Bedford, Freeman & Worth Publishing Group, LLC d/b/a Macmillan Learning as a plaintiff was denied. Pearson filed an Amended Complaint on May 10, 2023, and the Company filed an amended answer on June 7, 2023. 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) regarding certain alleged deceptive or unfair acts or practices related to consumer privacy and/or data security. On October 31, 2022, the FTC published the parties’ agreed-upon consent order regarding Chegg’s privacy and data security practices. On January 27, 2023, the FTC finalized its order ("Final Order") requiring Chegg to implement a comprehensive information security program, limit the data the Company can collect and retain, offer users multi factor authentication to secure their accounts, and allow users to request access to and delete their data. No monetary penalties or fines were included in the Final Order.
Aside from the loss contingency accrual recorded related to the Frank matter, we have not recorded any additional 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.
v3.23.2
Guarantees and Indemnifications
 6 Months Ended
Jun. 30, 2023
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 June 30, 2023.
v3.23.2
Common Stock
 6 Months Ended
Jun. 30, 2023
Equity [Abstract]  
Common Stock Common Stock
We are authorized to issue 400 million shares of our common stock, with a par value per share of $0.001. As of June 30, 2023, we have reserved the following shares of our common stock for future issuance:
June 30, 2023
Outstanding stock options257,542 
Outstanding RSUs and PSUs11,162,669 
Shares available for grant under the 2023 Equity Incentive Plan12,070,617 
Shares available for issuance under the Amended and Restated 2013 Employee Stock Purchase Plan4,000,000 
Total common shares reserved for future issuance27,490,828 

Stock Plans

2023 Equity Incentive Plan

On April 7, 2023, our Board of Directors adopted our 2023 Equity Incentive Plan (the “2023 EIP”), which was subsequently approved by our stockholders and became effective on June 7, 2023, replacing our 2013 Equity Incentive Plan (the “2013 Plan”). On the effective date of the 2023 EIP, 12,000,000 shares of our common stock were reserved for issuance under the 2023 EIP. On June 6, 2023, the date on which the 2013 Plan expired, all remaining shares available for grant under the 2013 Plan were cancelled, and we will not make any additional grants under the 2013 Plan. In addition, any shares subject to awards, including shares subject to awards granted under the 2013 Plan that were outstanding on June 7, 2023, that are cancelled, forfeited, repurchased, expire by their terms without shares being issued, are used to pay the exercise price of an option or stock appreciation right or withheld to satisfy the tax withholding obligations related to any award, will be returned to the pool of shares available for grant and issuance under the 2023 Plan. As of June 30, 2023, there were 12,070,617 shares available for grant under the 2023 EIP. The 2023 EIP permits the granting of incentive stock options, non-qualified stock options, RSUs, restricted stock awards, stock bonus awards, stock appreciation rights and performance awards. The 2023 EIP terminates on April 7, 2033.

Amended and Restated 2013 Employee Stock Purchase Plan

On April 7, 2023, our Board of Directors adopted our Amended and Restated 2013 Employee Stock Purchase Plan (the “A&R ESPP”), which was subsequently approved by our stockholders and became effective on June 7, 2023. The A&R ESPP permits eligible employees to purchase shares of our common stock by accumulating funds through periodic payroll deductions.
The A&R ESPP is intended to qualify as an "employee stock purchase plan" under Section 423 of the Code. Under the A&R ESPP, eligible employees will be granted an option to purchase shares of our common stock at a 15% discount to the lesser of the fair market value of our common stock on (i) the first trading day of the applicable offering period or (ii) the last day of each purchase period in the applicable offering period. The Compensation Committee of our Board of Directors shall determine the duration and commencement date of each offering period, provided that an offering period shall in no event be longer than twenty-seven (27) months, except as otherwise provided by an applicable sub-plan. Upon approval of the A&R ESPP, the available share pool under our existing 2013 Employee Stock Purchase Plan was reduced, and we have reserved 4,000,000 shares of our common stock under the A&R ESPP. As of June 30, 2023, there were 4,000,000 shares of common stock available for future issuance under the A&R ESPP.
v3.23.2
Stockholders' Equity
 6 Months Ended
Jun. 30, 2023
Share-Based Payment Arrangement [Abstract]  
Stockholders' Equity Stockholders' Equity
Share Repurchases

In June 2023, we repurchased 3,433,157 shares of our common stock in open market transactions for $34.5 million.

In February 2023, we entered into an accelerated share repurchase (ASR) agreement with a financial institution (2023 ASR). We accounted for the 2023 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 $150.0 million and received an initial delivery of 7,599,747 shares of our common stock, which were retired immediately. The initial delivery of shares of our common stock represented approximately 80 percent of the fixed amount paid of $150.0 million, which was based on the share price of our common stock on the date of execution. The 2023 ASR, along with $1.9 million in associated costs, primarily consisting of an estimated 1% excise tax, were recorded as a reduction to additional paid in capital on our condensed consolidated statements of stockholders’ equity. The 2023 ASR settled during the three months ended June 30, 2023 and we received an additional delivery of 1,974,762 shares of our common stock, which were retired immediately. The 2023 ASR resulted in a total repurchase of 9,574,509 shares of our common stock at a volume-weighted-average price, less an agreed upon discount, of $15.67 per share. We were not required to make any additional cash payments or delivery of common stock to the financial institution upon settlement.

In February 2022 and December 2021, we entered into ASR agreements with financial institutions. During the year ended December 31, 2022, we received a total of 11,562,475 shares of our common stock from these ASR agreements, which were retired immediately. Additionally, during the year ended December 31, 2022, we repurchased 1,146,803 shares of our common stock in open market transactions.

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.

As of December 31, 2022, we had $642.6 million remaining under the securities repurchase program. During the six months ended June 30, 2023, we repurchased shares of our common stock for $184.5 million and a portion of our notes for $368.6 million. As of June 30, 2023, we had $89.4 million remaining under the securities 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.
Share-based Compensation Expense

Total share-based compensation expense recorded for employees and non-employees is as follows (in thousands):
 Three Months Ended
June 30,		Six Months Ended
June 30,
 2023202220232022
Cost of revenues$560 $669 $1,087 $1,292 
Research and development11,968 10,006 22,882 21,782 
Sales and marketing2,182 4,019 4,681 8,405 
General and administrative21,210 16,393 41,016 32,692 
Total share-based compensation expense$35,920 $31,087 $69,666 $64,171 

During the three and six months ended June 30, 2023, we capitalized share-based compensation expense of $0.7 million and $1.7 million, respectively. During the three and six months ended June 30, 2022, we capitalized share-based compensation expense of $2.3 million and $4.1 million, respectively. As of June 30, 2023, total unrecognized share-based compensation expense was approximately $204.8 million, which is expected to be recognized over the remaining weighted-average vesting period of approximately 2.1 years.

Activity for RSUs and PSUs is as follows:
 RSUs and PSUs Outstanding
 Shares OutstandingWeighted Average Grant Date Fair Value
Balance at December 31, 20229,155,680 $36.03 
Granted5,269,726 15.68 
Released(2,080,263)36.20 
Forfeited(1,182,474)30.53 
Balance at June 30, 202311,162,669 26.98 
v3.23.2
Restructuring
 6 Months Ended
Jun. 30, 2023
Restructuring and Related Activities [Abstract]  
Restructuring RestructuringIn June 2023, we announced a reduction in workforce to better position the Company to execute against its AI strategy and to create long-term, sustainable value for its students and investors. This resulted in a management approved restructuring plan that impacted approximately 90 employees primarily in the United States. During the three months ended June 30, 2023, we recorded restructuring charges of $5.7 million related to one-time employee termination benefits classified on our condensed consolidated statements of operations based on the employees' job function. As of June 30, 2023, $2.0 million in payments have been made and the $3.7 million liability is included within accrued liabilities on our condensed consolidated balance sheets. The total cost of the restructuring plan has been recorded and we expect it to be completed by the end of fiscal 2023. We expect cost savings from the restructuring plan to be reinvested in future growth opportunities.
v3.23.2
Pay vs Performance Disclosure - USD ($)
$ in Thousands
 3 Months Ended 6 Months Ended
Jun. 30, 2023
Jun. 30, 2022
Jun. 30, 2023
Jun. 30, 2022
Pay vs Performance Disclosure        
Net income $ 24,612 $ 7,476 $ 26,798 $ 13,218
v3.23.2
Insider Trading Arrangements
 3 Months Ended 6 Months Ended
Jun. 30, 2023
shares
Jun. 30, 2023
shares
Trading Arrangements, by Individual    
Material Terms of Trading Arrangement  
The adoption or termination of contracts, instructions or written plans for the purchase or sale of our securities by our Section 16 officers and directors for the three months ended June 30, 2023, each of which is intended to satisfy the affirmative defense conditions of Rule 10b5-1(c) under the Exchange Act ("Rule 10b5-1 Plan"), were as follows:
NameTitleAction
Date Adopted
Expiration Date
Aggregate # of Securities to be Purchased/Sold
Andrew Brown(1)
Chief Financial OfficerAdoptionMay 19, 2023June 28, 202428,241
(1) Andrew Brown, the Company's Chief Financial Officer, entered into a Rule 10b5-1 Plan on May 19, 2023. Mr. Brown's plan provides for the potential sale of up to 28,241 shares of the Company's common stock. The plan expires on June 28, 2024, or upon the earlier completion of all authorized transactions under the plan.
Name Andrew Brown  
Title Chief Financial Officer  
Rule 10b5-1 Arrangement Adopted true  
Non-Rule 10b5-1 Arrangement Adopted false  
Adoption Date May 19, 2023  
Rule 10b5-1 Arrangement Terminated false  
Non-Rule 10b5-1 Arrangement Terminated false  
Aggregate Available 28,241,000 28,241,000
v3.23.2
Background and Basis of Presentation (Policies)
 6 Months Ended
Jun. 30, 2023
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 June 30, 2023, our results of operations, results of comprehensive income (loss), and stockholders' equity for the three and six months ended June 30, 2023 and 2022 and cash flows for the six months ended June 30, 2023 and 2022. Our results of operations, results of comprehensive income (loss), stockholders' equity, and cash flows for the six months ended June 30, 2023 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, 2022 (the Annual Report on Form 10-K) filed with the SEC.
Except for our policies on strategic investments, 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.
Strategic Investments
Strategic Investments

Investments in partnerships where we have the ability to exercise significant influence, but not control, over the investee are accounted for under the equity method of accounting. Equity method investments are initially recorded at cost and adjusted for our share of the investees' earnings or losses, based on our percentage ownership, recognized on a one-quarter lag basis within other income, net on our condensed consolidated statements of operations.

Investments in entities where we do not have the ability to exercise significant influence and which do not have readily determinable fair values are accounted for at cost, plus or minus changes resulting from observable price changes in orderly transactions for the identical or a similar investment of the same issuer, if any.
Strategic investments are included in other assets on our condensed consolidated balance sheets. We assess our strategic investments for impairment whenever events or changes in circumstances indicate that they may be impaired. The factors we consider in our evaluation include, but are not limited to, a significant deterioration in the earnings performance or business prospects of the investee or factors that raise significant concerns about the investee’s ability to continue as a going concern, such as negative cash flows from operations or working capital deficiencies.
Use of Estimates
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.
Reclassification of Prior Period Presentation
Reclassification of Prior Period Presentation

In order to conform with current period presentation, $0.3 million of deferred tax assets during the six months ended June 30, 2022 has been reclassified from other non-cash items on our condensed consolidated statements of cash flows. This change in presentation does not affect previously reported results.
Recent Accounting Pronouncements
Recent Accounting Pronouncements

Recently Issued Accounting Pronouncements Not Yet Adopted

There were no accounting pronouncements issued during the six months ended June 30, 2023 that would have a material impact on our financial statements.
Recently Adopted Accounting Pronouncements

We did not adopt any accounting pronouncements during the six months ended June 30, 2023 that had a material impact on our financial statements.
v3.23.2
Background and Basis of Presentation (Tables)
 6 Months Ended
Jun. 30, 2023
Organization, Consolidation and Presentation of Financial Statements [Abstract]  
Schedule of Maturities of Operating Lease Liabilities
The aggregate future minimum lease payments and reconciliation to operating lease liabilities as of June 30, 2023, are as follows (in thousands):
June 30, 2023
Remaining six months of 2023$4,356 
20247,886 
20256,622 
20265,932 
20275,515 
Thereafter1,902 
Total future minimum lease payments32,213 
Less imputed interest(3,896)
Total lease liabilities$28,317 
Schedule of Other Income Net
Other income, net consists of the following (in thousands):
Three Months Ended
June 30,		Six Months Ended
June 30,
2023202220232022
Gain on early extinguishment of debt$53,777 $— 53,777 $— 
Interest income$10,658 $2,032 21,921 $3,509 
Gain on foreign currency remeasurement of purchase consideration— — — $4,628 
Other(332)(223)481 (148)
Total other income, net
$64,103 $1,809 $76,179 $7,989 
v3.23.2
Revenues (Tables)
 6 Months Ended
Jun. 30, 2023
Revenue from Contract with Customer [Abstract]  
Schedule of Disaggregation of Revenue
The following tables set forth our total net revenues for the periods shown disaggregated for our Subscription Services and Skills and Other product lines (in thousands, except percentages):
 Three Months Ended
June 30,		Change
 20232022$%
Subscription Services$165,855 $175,424 $(9,569)(5)%
Skills and Other16,998 19,297 (2,299)(12)
Total net revenues$182,853 $194,721 $(11,868)(6)
 Six Months Ended
June 30,		Change
 20232022$%
Subscription Services$334,295 $348,461 $(14,166)(4)%
Skills and Other36,159 48,504 (12,345)(25)
Total net revenues$370,454 $396,965 $(26,511)(7)
Schedule of Accounts Receivable
The following table presents our accounts receivable, net, contract assets and deferred revenue balances (in thousands, except percentages):
 Change
 June 30,
2023		December 31, 2022$%
Accounts receivable, net$20,670 $23,515 $(2,845)(12)%
Contract assets10,693 11,946 (1,253)(10)
Deferred revenue53,200 56,273 (3,073)(5)
v3.23.2
Net Income (Loss) Per Share (Tables)
 6 Months Ended
Jun. 30, 2023
Earnings Per Share [Abstract]  
Schedule of Earnings Per Share, Basic and Diluted
The following tables set forth the computation of basic and diluted net income (loss) per share (in thousands, except per share amounts):
Three Months Ended
June 30,		Six Months Ended
June 30,
2023202220232022
Basic
Numerator:
Net income
$24,612 $7,476 $26,798 $13,218 
Denominator:
Weighted average shares used to compute net income per share, basic
117,977 126,272 120,828 129,201 
Net income per share, basic
$0.21 $0.06 $0.22 $0.10 
Diluted
Numerator:
Net income$24,612 $7,476 $26,798 $13,218 
Convertible senior notes activity, net of tax(1)
(39,398)1,212 (38,446)— 
Net (loss) income, diluted
$(14,786)$8,688 $(11,648)$13,218 
Denominator:
Weighted average shares used to compute net income per share, basic
117,977 126,272 120,828 129,201 
Shares related to stock plan activity— 427 — 733 
Shares related to convertible senior notes14,967 22,875 16,588 — 
Weighted average shares used to compute net (loss) income per share, diluted
132,944 149,574 137,416 129,934 
Net (loss) income per share, diluted
$(0.11)$0.06 $(0.08)$0.10 
(1) Includes the gain on early extinguishment and interest expense on our notes, net of tax. For further information, see Note 5, “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
June 30,		Six Months Ended
June 30,
2023202220232022
Shares related to stock plan activity9,982 8,041 7,661 3,645 
Shares related to convertible senior notes— — — 22,875 
Total common stock equivalents9,982 8,041 7,661 26,520 
v3.23.2
Cash and Cash Equivalents, Investments and Fair Value Measurements (Tables)
 6 Months Ended
Jun. 30, 2023
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 June 30, 2023 and December 31, 2022 (in thousands except for fair value levels):
 June 30, 2023
 Fair Value LevelAdjusted CostUnrealized GainUnrealized LossFair Value
Cash and cash equivalents:   
Cash$38,597 $— $— $38,597 
Money market fundsLevel 1136,771 — — 136,771 
Total cash and cash equivalents$175,368 $— $— $175,368 
Short-term investments:   
Corporate debt securitiesLevel 2$106,429 $— $(805)$105,624 
U.S. treasury securitiesLevel 130,063 — (32)30,031 
Agency bondsLevel 274,496 — (465)74,031 
Total short-term investments$210,988 $— $(1,302)$209,686 
Long-term investments:   
Corporate debt securitiesLevel 2$195,372 $10 $(1,736)$193,646 
U.S. treasury securitiesLevel 198,946 — (1,168)97,778 
Agency bondsLevel 2133,017 — (1,683)131,334 
Total long-term investments$427,335 $10 $(4,587)$422,758 

 December 31, 2022
 Fair Value LevelAdjusted CostUnrealized GainUnrealized LossFair Value
Cash and cash equivalents:   
Cash$33,532 $— $— $33,532 
Money market fundsLevel 1440,145 — — 440,145 
Total cash and cash equivalents$473,677 $— $— $473,677 
Short-term investments:   
Commercial paperLevel 2$11,744 $— $(29)$11,715 
Corporate debt securitiesLevel 2491,459 — (4,130)487,329 
U.S. treasury securitiesLevel 185,271 — (342)84,929 
Total short-term investments$588,474 $— $(4,501)$583,973 
Long-term investments:   
Corporate debt securitiesLevel 2$125,735 $158 $(909)$124,984 
U.S. treasury securitiesLevel 130,633 122 — 30,755 
Agency bondsLevel 260,635 — (141)60,494 
Total long-term investments$217,003 $280 $(1,050)$216,233 
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 June 30, 2023 (in thousands):
 Adjusted CostFair Value
Due within one year$210,988 $209,686 
Due after one year through three years427,335 422,758 
Investments not due at a single maturity date136,771 136,771 
Total$775,094 $769,215 
v3.23.2
Convertible Senior Notes (Tables)
 6 Months Ended
Jun. 30, 2023
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):
June 30, 2023December 31, 2022
2026 Notes2025 Notes2026 Notes2025 Notes
Principal$414,198 $358,914 $500,000 $699,979 
Unamortized issuance costs(3,466)(2,603)(4,837)(6,549)
Net carrying amount$410,732 $356,311 $495,163 $693,430 
Schedule Of Interest Expense Recognized
The following table sets forth the total interest expense recognized related to the notes (in thousands):

Three Months Ended June 30,Six Months Ended June 30,
2023202220232022
2026 notes:
Contractual interest expense$— $— $— $— 
Amortization of issuance costs310 657 635 1,307 
Total 2026 notes interest expense$310 $657 $635 $1,307 
2025 notes:
Contractual interest expense$182 $219 $398 $434 
Amortization of issuance costs621 740 1,353 1,472 
Total 2025 notes interest expense$803 $959 $1,751 $1,906 
v3.23.2
Common Stock (Tables)
 6 Months Ended
Jun. 30, 2023
Equity [Abstract]  
Schedule Of Common Stock Reserved For Future Issuance As of June 30, 2023, we have reserved the following shares of our common stock for future issuance:
June 30, 2023
Outstanding stock options257,542 
Outstanding RSUs and PSUs11,162,669 
Shares available for grant under the 2023 Equity Incentive Plan12,070,617 
Shares available for issuance under the Amended and Restated 2013 Employee Stock Purchase Plan4,000,000 
Total common shares reserved for future issuance27,490,828 
v3.23.2
Stockholders' Equity (Tables)
 6 Months Ended
Jun. 30, 2023
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
June 30,		Six Months Ended
June 30,
 2023202220232022
Cost of revenues$560 $669 $1,087 $1,292 
Research and development11,968 10,006 22,882 21,782 
Sales and marketing2,182 4,019 4,681 8,405 
General and administrative21,210 16,393 41,016 32,692 
Total share-based compensation expense$35,920 $31,087 $69,666 $64,171 
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, 20229,155,680 $36.03 
Granted5,269,726 15.68 
Released(2,080,263)36.20 
Forfeited(1,182,474)30.53 
Balance at June 30, 202311,162,669 26.98 
v3.23.2
Background and Basis of Presentation - Narrative (Details)
$ in Thousands
 6 Months Ended
Jun. 30, 2023
USD ($)
segment
Jun. 30, 2022
USD ($)
Error Corrections and Prior Period Adjustments Restatement [Line Items]    
Number of operating segments | segment 1  
Number of reportable segments | segment 1  
Deferred income taxes $ 20,142 $ (303)
Operating leases $ 12,407 3,244
Revision of Prior Period, Adjustment    
Error Corrections and Prior Period Adjustments Restatement [Line Items]    
Deferred income taxes   $ (300)
v3.23.2
Background and Basis of Presentation - Maturities of Operating Lease Liabilities (Details)
$ in Thousands
Jun. 30, 2023
USD ($)
Organization, Consolidation and Presentation of Financial Statements [Abstract]  
Remaining six months of 2023 $ 4,356
2024 7,886
2025 6,622
2026 5,932
2027 5,515
Thereafter 1,902
Total future minimum lease payments 32,213
Less imputed interest (3,896)
Total lease liabilities $ 28,317
v3.23.2
Background and Basis of Presentation - Other Income Net (Details) - USD ($)
$ in Thousands
 3 Months Ended 6 Months Ended
Jun. 30, 2023
Jun. 30, 2022
Jun. 30, 2023
Jun. 30, 2022
Organization, Consolidation and Presentation of Financial Statements [Abstract]        
Gain on early extinguishment of debt $ 53,777 $ 0 $ 53,777 $ 0
Interest income 10,658 2,032 21,921 3,509
Gain on foreign currency remeasurement of purchase consideration 0 0 0 4,628
Other (332) (223) 481 (148)
Total other income, net $ 64,103 $ 1,809 $ 76,179 $ 7,989
v3.23.2
Revenues - Disaggregation of Revenue (Details) - USD ($)
$ in Thousands
 3 Months Ended 6 Months Ended
Jun. 30, 2023
Jun. 30, 2022
Jun. 30, 2023
Jun. 30, 2022
Disaggregation of Revenue [Line Items]        
Total net revenues $ 182,853 $ 194,721 $ 370,454 $ 396,965
Change, Total net revenues $ (11,868)   $ (26,511)  
Change, Total net revenues, percent (6.00%)   (7.00%)  
Subscription Services        
Disaggregation of Revenue [Line Items]        
Total net revenues $ 165,855 175,424 $ 334,295 348,461
Change, Total net revenues $ (9,569)   $ (14,166)  
Change, Total net revenues, percent (5.00%)   (4.00%)  
Skills and Other        
Disaggregation of Revenue [Line Items]        
Total net revenues $ 16,998 $ 19,297 $ 36,159 $ 48,504
Change, Total net revenues $ (2,299)   $ (12,345)  
Change, Total net revenues, percent (12.00%)   (25.00%)  
v3.23.2
Revenues - Narrative (Details) - USD ($)
$ in Thousands
 3 Months Ended 6 Months Ended
Jun. 30, 2023
Jun. 30, 2022
Jun. 30, 2023
Jun. 30, 2022
Revenue from Contract with Customer [Abstract]        
Contract with customer, liability, revenue recognized $ 41,100 $ 42,200 $ 47,900 $ 32,900
Decrease in accounts receivable, net     $ (2,845)  
Decrease in accounts receivable, net, percent     (12.00%)  
Decrease in contract assets     $ 1,253  
Decrease in contract assets, percent     10.00%  
Increase in deferred revenue     $ (3,073)  
Increase in deferred revenue, percent     (5.00%)  
v3.23.2
Revenues - Contract Balances (Details) - USD ($)
$ in Thousands
 6 Months Ended
Jun. 30, 2023
Dec. 31, 2022
Revenue from Contract with Customer [Abstract]    
Accounts receivable, net $ 20,670 $ 23,515
Change, accounts receivable, net $ (2,845)  
Change, accounts receivable, net, percent (12.00%)  
Contract assets $ 10,693 11,946
Change, Contract assets $ (1,253)  
Change, Contract assets, percent (10.00%)  
Deferred revenue $ 53,200 $ 56,273
Change, deferred revenue $ (3,073)  
Change, deferred revenue, percent (5.00%)  
v3.23.2
Net Income (Loss) Per Share - Computation of Basic and Diluted Net Income Per Share (Details) - USD ($)
$ / shares in Units, shares in Thousands, $ in Thousands
 3 Months Ended 6 Months Ended
Jun. 30, 2023
Jun. 30, 2022
Jun. 30, 2023
Jun. 30, 2022
Numerator:        
Net income $ 24,612 $ 7,476 $ 26,798 $ 13,218
Convertible senior notes activity, net of tax (39,398) 1,212 (38,446) 0
Net (loss) income, diluted $ (14,786) $ 8,688 $ (11,648) $ 13,218
Denominator:        
Weighted average shares used to compute net income per share, basic (in shares) 117,977 126,272 120,828 129,201
Net income per share, basic (in dollars per share) $ 0.21 $ 0.06 $ 0.22 $ 0.10
Weighted average shares used to compute net (loss) income per share, diluted (in shares) 132,944 149,574 137,416 129,934
Net (loss) income per share, diluted (in dollars per share) $ (0.11) $ 0.06 $ (0.08) $ 0.10
Shares related to stock plan activity        
Denominator:        
Incremental common shares attributable to dilutive effect (in shares) 0 427 0 733
Shares related to convertible senior notes        
Denominator:        
Incremental common shares attributable to dilutive effect (in shares) 14,967 22,875 16,588 0
v3.23.2
Net Income (Loss) Per Share - Shares Excluded From Computation Of Diluted Net Income Per Share (Details) - shares
shares in Thousands
 3 Months Ended 6 Months Ended
Jun. 30, 2023
Jun. 30, 2022
Jun. 30, 2023
Jun. 30, 2022
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]        
Total common stock equivalents (in shares) 9,982 8,041 7,661 26,520
Shares related to stock plan activity        
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]        
Total common stock equivalents (in shares) 9,982 8,041 7,661 3,645
Shares related to convertible senior notes        
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]        
Total common stock equivalents (in shares) 0 0 0 22,875
v3.23.2
Cash and Cash Equivalents, Investments and Fair Value Measurements - Schedule of Available For Sale Securities (Details) - USD ($)
$ in Thousands
Jun. 30, 2023
Dec. 31, 2022
Debt Securities, Available-for-sale [Line Items]    
Adjusted Cost $ 775,094  
Fair Value 769,215  
Cash and cash equivalents:    
Debt Securities, Available-for-sale [Line Items]    
Adjusted Cost   $ 473,677
Unrealized Gain   0
Unrealized Loss   0
Fair Value   473,677
Cash and cash equivalents: | Level 2    
Debt Securities, Available-for-sale [Line Items]    
Adjusted Cost 175,368  
Unrealized Gain 0  
Unrealized Loss 0  
Fair Value 175,368  
Cash and cash equivalents: | Cash    
Debt Securities, Available-for-sale [Line Items]    
Adjusted Cost 38,597 33,532
Unrealized Gain 0 0
Unrealized Loss 0 0
Fair Value 38,597 33,532
Cash and cash equivalents: | Money market funds | Level 1    
Debt Securities, Available-for-sale [Line Items]    
Adjusted Cost 136,771 440,145
Unrealized Gain 0 0
Unrealized Loss 0 0
Fair Value 136,771 440,145
Short-term investments:    
Debt Securities, Available-for-sale [Line Items]    
Adjusted Cost   588,474
Unrealized Gain   0
Unrealized Loss   (4,501)
Fair Value   583,973
Short-term investments: | Level 2    
Debt Securities, Available-for-sale [Line Items]    
Adjusted Cost 210,988  
Unrealized Gain 0  
Unrealized Loss (1,302)  
Fair Value 209,686  
Short-term investments: | Commercial paper | Level 2    
Debt Securities, Available-for-sale [Line Items]    
Adjusted Cost   11,744
Unrealized Gain   0
Unrealized Loss   (29)
Fair Value   11,715
Short-term investments: | Corporate debt securities | Level 2    
Debt Securities, Available-for-sale [Line Items]    
Adjusted Cost 106,429 491,459
Unrealized Gain 0 0
Unrealized Loss (805) (4,130)
Fair Value 105,624 487,329
Short-term investments: | U.S. treasury securities | Level 1    
Debt Securities, Available-for-sale [Line Items]    
Adjusted Cost 30,063 85,271
Unrealized Gain 0 0
Unrealized Loss (32) (342)
Fair Value 30,031 84,929
Short-term investments: | Agency bonds | Level 2    
Debt Securities, Available-for-sale [Line Items]    
Adjusted Cost 74,496  
Unrealized Gain 0  
Unrealized Loss (465)  
Fair Value 74,031  
Long-term investments:    
Debt Securities, Available-for-sale [Line Items]    
Adjusted Cost   217,003
Unrealized Gain   280
Unrealized Loss   (1,050)
Fair Value   216,233
Long-term investments: | Level 2    
Debt Securities, Available-for-sale [Line Items]    
Adjusted Cost 427,335  
Unrealized Gain 10  
Unrealized Loss (4,587)  
Fair Value 422,758  
Long-term investments: | Corporate debt securities | Level 2    
Debt Securities, Available-for-sale [Line Items]    
Adjusted Cost 195,372 125,735
Unrealized Gain 10 158
Unrealized Loss (1,736) (909)
Fair Value 193,646 124,984
Long-term investments: | U.S. treasury securities | Level 1    
Debt Securities, Available-for-sale [Line Items]    
Adjusted Cost 98,946 30,633
Unrealized Gain 0 122
Unrealized Loss (1,168) 0
Fair Value 97,778 30,755
Long-term investments: | Agency bonds | Level 2    
Debt Securities, Available-for-sale [Line Items]    
Adjusted Cost 133,017 60,635
Unrealized Gain 0 0
Unrealized Loss (1,683) (141)
Fair Value $ 131,334 $ 60,494
v3.23.2
Cash and Cash Equivalents, Investments and Fair Value Measurements - Contractual Maturity (Details)
$ in Thousands
Jun. 30, 2023
USD ($)
Adjusted Cost  
Due within one year $ 210,988
Due after one year through three years 427,335
Investments not due at a single maturity date 136,771
Adjusted Cost 775,094
Fair Value  
Due within one year 209,686
Due after one year through three years 422,758
Investments not due at a single maturity date 136,771
Fair Value $ 769,215
v3.23.2
Cash and Cash Equivalents, Investments and Fair Value Measurements - Strategic Investments (Details) - USD ($)
$ in Thousands
 1 Months Ended 3 Months Ended 6 Months Ended
May 31, 2023
Jun. 30, 2023
Jun. 30, 2023
Jun. 30, 2022
Jul. 31, 2022
Schedule of Investments [Line Items]          
Funded capital calls     $ 9,604 $ 0  
Sound Ventures AI Fund, LP          
Schedule of Investments [Line Items]          
Commitment to invest $ 15,000        
Invests in artificial intelligence companies, ownership percentage 6.00%        
Funded capital calls   $ 9,600      
Unfunded investment   $ 5,400 $ 5,400    
Unfunded commitment, length of period to issue     5 years    
Knack Technologies, Inc          
Schedule of Investments [Line Items]          
Investment without readily determinable fair value         $ 6,000
v3.23.2
Cash and Cash Equivalents, Investments and Fair Value Measurements - Debt (Details) - Estimate of Fair Value Measurement - Senior Notes - Fair Value, Measurements, Nonrecurring - USD ($)
$ in Millions
Jun. 30, 2023
Dec. 31, 2022
Senior Notes due 2026    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Convertible senior notes $ 312.7 $ 385.0
Senior Notes due 2025    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Convertible senior notes $ 318.5 $ 640.5
v3.23.2
Convertible Senior Notes - Narrative (Details)
$ / shares in Units, $ in Thousands
 1 Months Ended 3 Months Ended 6 Months Ended
May 31, 2023
USD ($)
Aug. 31, 2020
USD ($)
$ / shares
Apr. 30, 2019
USD ($)
$ / shares
Apr. 30, 2018
Jun. 30, 2023
USD ($)
$ / shares
shares
Jun. 30, 2022
USD ($)
Jun. 30, 2023
USD ($)
day
$ / shares
shares
Jun. 30, 2022
USD ($)
Dec. 31, 2022
USD ($)
Mar. 31, 2019
USD ($)
Debt Instrument [Line Items]                    
Repayments of convertible senior notes             $ 369,761 $ 0    
Gain on early extinguishment of debt         $ 53,777 $ 0 53,777 0    
Proceeds from exercise and termination of convertible senior notes capped call         297   $ 300 $ 0    
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 due 2026 | Senior Notes                    
Debt Instrument [Line Items]                    
Face value   $ 1,000,000     $ 414,198   $ 414,198   $ 500,000  
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                
Repurchased face amount $ 85,800                  
Net proceeds   $ 984,096                
Senior Notes due 2026 | Senior Notes | Capped Call                    
Debt Instrument [Line Items]                    
Conversion price (in dollars per share) | $ / shares         $ 156.44   $ 156.44      
Debt instrument, convertible (in shares) | shares         9,297,800   9,297,800      
Net proceeds   103,400                
0% Convertible Senior Notes Due 2026, Additional Notes | Senior Notes                    
Debt Instrument [Line Items]                    
Face value   $ 100,000                
Senior Notes due 2025 | Senior Notes                    
Debt Instrument [Line Items]                    
Face value     $ 100,000   $ 358,914   $ 358,914   $ 699,979 $ 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              
Repurchased face amount 341,100                  
Net proceeds     $ 780,180              
Senior Notes due 2025 | Senior Notes | Capped Call                    
Debt Instrument [Line Items]                    
Conversion price (in dollars per share) | $ / shares         $ 79.32   $ 79.32      
Debt instrument, convertible (in shares) | shares         6,961,352   6,961,352      
Net proceeds     $ 97,200              
Senior Notes due 2025 | Senior Notes | Terminated Capped Call                    
Debt Instrument [Line Items]                    
Debt instrument, convertible (in shares) | shares         6,615,161   6,615,161      
0% Convertible Senior Notes Due 2026 And 0.125% Convertible Senior Notes Due 2025 | Senior Notes                    
Debt Instrument [Line Items]                    
Repayments of convertible senior notes 368,600                  
Extinguishment incurred 1,200                  
Debt instrument, reacquisition price of debt 369,800                  
Debt extinguished 423,500                  
Gain on early extinguishment of debt $ 53,800                  
v3.23.2
Convertible Senior Notes - Long-term Debt Instruments (Details) - Senior Notes - USD ($)
$ in Thousands
 1 Months Ended
Aug. 31, 2020
Apr. 30, 2019
Senior Notes due 2026    
Debt Instrument [Line Items]    
Principal amount $ 1,000,000  
Less initial purchasers’ discount (15,000)  
Less other issuance costs (904)  
Net proceeds $ 984,096  
Senior Notes due 2025    
Debt Instrument [Line Items]    
Principal amount   $ 800,000
Less initial purchasers’ discount   (18,998)
Less other issuance costs   (822)
Net proceeds   $ 780,180
v3.23.2
Convertible Senior Notes - Net Carrying Amount (Details) - Senior Notes - USD ($)
$ in Thousands
Jun. 30, 2023
Dec. 31, 2022
Aug. 31, 2020
Apr. 30, 2019
Mar. 31, 2019
Senior Notes due 2026          
Debt Instrument [Line Items]          
Principal $ 414,198 $ 500,000 $ 1,000,000    
Unamortized issuance costs (3,466) (4,837)      
Senior Notes due 2026 | Carrying Amount | Fair Value, Measurements, Nonrecurring          
Debt Instrument [Line Items]          
Net carrying amount 410,732 495,163      
Senior Notes due 2025          
Debt Instrument [Line Items]          
Principal 358,914 699,979   $ 100,000 $ 700,000
Unamortized issuance costs (2,603) (6,549)      
Senior Notes due 2025 | Carrying Amount | Fair Value, Measurements, Nonrecurring          
Debt Instrument [Line Items]          
Net carrying amount $ 356,311 $ 693,430      
v3.23.2
Convertible Senior Notes - Interest Expense Recognized (Details) - Senior Notes - USD ($)
$ in Thousands
 3 Months Ended 6 Months Ended
Jun. 30, 2023
Jun. 30, 2022
Jun. 30, 2023
Jun. 30, 2022
Senior Notes due 2026        
Debt Instrument [Line Items]        
Contractual interest expense $ 0 $ 0 $ 0 $ 0
Amortization of issuance costs 310 657 635 1,307
Total interest expense 310 657 635 1,307
Senior Notes due 2025        
Debt Instrument [Line Items]        
Contractual interest expense 182 219 398 434
Amortization of issuance costs 621 740 1,353 1,472
Total interest expense $ 803 $ 959 $ 1,751 $ 1,906
v3.23.2
Convertible Senior Notes - Capped Call Transactions (Details) - Senior Notes - USD ($)
$ / shares in Units, $ in Thousands
 1 Months Ended
Aug. 31, 2020
Apr. 30, 2019
Jun. 30, 2023
Senior Notes due 2026      
Debt Instrument [Line Items]      
Net proceeds $ 984,096    
Conversion price (in dollars per share) $ 107.55    
Senior Notes due 2025      
Debt Instrument [Line Items]      
Net proceeds   $ 780,180  
Conversion price (in dollars per share)   $ 51.56  
Capped Call | Senior Notes due 2026      
Debt Instrument [Line Items]      
Net proceeds $ 103,400    
Debt instrument, convertible (in shares)     9,297,800
Conversion price (in dollars per share)     $ 156.44
Capped Call | Senior Notes due 2025      
Debt Instrument [Line Items]      
Net proceeds   $ 97,200  
Debt instrument, convertible (in shares)     6,961,352
Conversion price (in dollars per share)     $ 79.32
v3.23.2
Commitments and Contingencies (Details)
$ in Millions
Jun. 30, 2023
USD ($)
Commitments and Contingencies Disclosure [Abstract]  
Loss contingency accrual $ 7.0
v3.23.2
Common Stock - Narrative (Details) - $ / shares
Jun. 07, 2023
Jun. 30, 2023
Dec. 31, 2022
Class of Stock [Line Items]      
Common stock, shares authorized (in shares)   400,000,000 400,000,000
Common stock, par value (in dollars per share)   $ 0.001 $ 0.001
Total common shares reserved for future issuance (in shares)   27,490,828  
2023 Equity Incentive Plan      
Class of Stock [Line Items]      
Total common shares reserved for future issuance (in shares) 12,000,000    
Shares available for grant under the 2023 EIP (in shares)   12,070,617  
2013 Employee Stock Purchase Plan      
Class of Stock [Line Items]      
Total common shares reserved for future issuance (in shares)   4,000,000  
Employee discount on applicable offering period 15.00%    
Shares reserved 4,000,000    
v3.23.2
Common Stock - Schedule of Common Stock Reserved for Future Issuance (Details) - shares
Jun. 30, 2023
Jun. 07, 2023
Dec. 31, 2022
Class of Stock [Line Items]      
Outstanding stock options (in shares) 257,542    
Total common shares reserved for future issuance (in shares) 27,490,828    
2023 Equity Incentive Plan      
Class of Stock [Line Items]      
Shares available for grant under the 2023 EIP (in shares) 12,070,617    
Total common shares reserved for future issuance (in shares)   12,000,000  
2013 Employee Stock Purchase Plan      
Class of Stock [Line Items]      
Total common shares reserved for future issuance (in shares) 4,000,000    
RSUs and PSUs      
Class of Stock [Line Items]      
Outstanding RSUs and PSUs (in shares) 11,162,669   9,155,680
v3.23.2
Stockholders' Equity - Share Repurchase (Details)
$ / shares in Units, $ in Thousands
 1 Months Ended 3 Months Ended 6 Months Ended 12 Months Ended
Jun. 30, 2023
USD ($)
shares
Feb. 28, 2023
USD ($)
transaction
shares
Jun. 30, 2023
USD ($)
shares
Jun. 30, 2022
USD ($)
Jun. 30, 2023
USD ($)
$ / shares
shares
Jun. 30, 2022
USD ($)
Dec. 31, 2022
shares
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]              
Repurchases of common stock     $ 35,057 $ 0 $ 186,368 $ 300,450  
Purchase price         $ 186,368 $ 300,450  
Open Market Transactions              
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]              
Repurchases of common stock (in shares) | shares 3,433,157           1,146,803
Repurchases of common stock $ 34,500            
2023 ASR              
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]              
Repurchases of common stock (in shares) | shares         9,574,509    
Number of transactions | transaction   2          
Purchase price   $ 150,000          
Stock repurchased and retired during period, shares (in shares) | shares   7,599,747 1,974,762        
Stock repurchased and retired during period, percentage   80.00%          
Associated costs   $ 1,900          
Stock repurchased of excise tax percentage   1.00%          
Stock repurchased and retired during the period, weighted-average price (in dollars per share) | $ / shares         $ 15.67    
Accelerated Share Repurchase Program              
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]              
Stock repurchased and retired during period, shares (in shares) | shares             11,562,475
v3.23.2
Stockholders' Equity - Securities Repurchase Program (Details) - USD ($)
$ in Thousands
 1 Months Ended 3 Months Ended 6 Months Ended
May 31, 2023
Jun. 30, 2022
Jun. 30, 2023
Jun. 30, 2022
Jun. 30, 2023
Jun. 30, 2022
Dec. 31, 2022
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]              
Repurchases of common stock     $ 35,057 $ 0 $ 186,368 $ 300,450  
Repayments of convertible senior notes         369,761 0  
Securities Repurchase Program              
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   $ 2,000,000   $ 2,000,000  
Remaining under repurchase program     $ 89,400   89,400   $ 642,600
Repurchases of common stock         $ 184,500    
0% Convertible Senior Notes Due 2026 And 0.125% Convertible Senior Notes Due 2025 | Senior Notes              
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]              
Repayments of convertible senior notes $ 368,600            
0% Convertible Senior Notes Due 2026 And 0.125% Convertible Senior Notes Due 2025 | Senior Notes | Securities Repurchase Program              
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]              
Repayments of convertible senior notes $ 368,600            
v3.23.2
Stockholders' Equity - Schedule of Share-based Compensation Expense (Details) - USD ($)
$ in Thousands
 3 Months Ended 6 Months Ended
Jun. 30, 2023
Jun. 30, 2022
Jun. 30, 2023
Jun. 30, 2022
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items]        
Share-based compensation expense $ 35,920 $ 31,087 $ 69,666 $ 64,171
Cost of revenues        
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items]        
Share-based compensation expense 560 669 1,087 1,292
Research and development        
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items]        
Share-based compensation expense 11,968 10,006 22,882 21,782
Sales and marketing        
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items]        
Share-based compensation expense 2,182 4,019 4,681 8,405
General and administrative        
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items]        
Share-based compensation expense $ 21,210 $ 16,393 $ 41,016 $ 32,692
v3.23.2
Stockholders' Equity - Narrative of Share-based Compensation Expense (Details) - USD ($)
$ in Millions
 3 Months Ended 6 Months Ended
Jun. 30, 2023
Jun. 30, 2022
Jun. 30, 2023
Jun. 30, 2022
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]        
Share-based compensation expense capitalized $ 0.7 $ 2.3 $ 1.7 $ 4.1
RSUs and PSUs        
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]        
Unrecognized compensation costs related to restricted stock units $ 204.8   $ 204.8  
Weighted-average vesting period     2 years 1 month 6 days  
v3.23.2
Stockholders' Equity - Schedule of RSU and PSU Activity (Details) - RSUs and PSUs
 6 Months Ended
Jun. 30, 2023
$ / shares
shares
Shares Outstanding  
Beginning balance (in shares) | shares 9,155,680
Granted (in shares) | shares 5,269,726
Released (in shares) | shares (2,080,263)
Forfeited (in shares) | shares (1,182,474)
Ending balance (in shares) | shares 11,162,669
Weighted Average Grant Date Fair Value  
Beginning balance (in dollars per share) | $ / shares $ 36.03
Granted (in dollars per share) | $ / shares 15.68
Released (in dollars per share) | $ / shares 36.20
Forfeited (in dollars per share) | $ / shares 30.53
Ending balance (in dollars per share) | $ / shares $ 26.98
v3.23.2
Restructuring (Details)
$ in Millions
 1 Months Ended 3 Months Ended
Jun. 30, 2023
USD ($)
full_time_employee
Jun. 30, 2023
USD ($)
Restructuring and Related Activities [Abstract]    
Number of positions impacted | full_time_employee 90  
Restructuring charges   $ 5.7
Payments for restructuring $ 2.0  
Restructuring liability $ 3.7 $ 3.7