CHEGG, INC, 10-Q filed on 4/29/2024
Quarterly Report
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Cover Page - shares
3 Months Ended
Mar. 31, 2024
Apr. 22, 2024
Cover [Abstract]    
Document Type 10-Q  
Document Quarterly Report true  
Document Period End Date Mar. 31, 2024  
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, $0.001 par value per share  
Trading Symbol CHGG  
Security Exchange Name NYSE  
Entity Current Reporting Status Yes  
Entity Interactive Data Current Yes  
Entity Filer Category Large Accelerated Filer  
Entity Small Business false  
Entity Emerging Growth Company false  
Entity Shell Company false  
Entity Common Stock, Shares Outstanding   102,217,351
Entity Central Index Key 0001364954  
Current Fiscal Year End Date --12-31  
Document Fiscal Year End 2024  
Document Fiscal Period Focus Q1  
Amendment Flag false  
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CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($)
$ in Thousands
Mar. 31, 2024
Dec. 31, 2023
Current assets    
Cash and cash equivalents $ 143,747 $ 135,757
Short-term investments 247,013 194,257
Accounts receivable, net of allowance of $290 and $376 at March 31, 2024 and December 31, 2023, respectively 24,741 31,404
Prepaid expenses 20,429 20,980
Other current assets 30,010 32,437
Total current assets 465,940 414,835
Long-term investments 221,665 249,547
Property and equipment, net 188,430 183,073
Goodwill 628,784 631,995
Intangible assets, net 48,143 52,430
Right of use assets 23,521 25,130
Deferred tax assets 140,200 141,843
Other assets 15,961 28,382
Total assets 1,732,644 1,727,235
Current liabilities    
Accounts payable 20,119 28,184
Deferred revenue 54,056 55,336
Accrued liabilities 73,555 77,863
Current portion of convertible senior notes, net 357,458 357,079
Total current liabilities 505,188 518,462
Long-term liabilities    
Convertible senior notes, net 242,919 242,758
Long-term operating lease liabilities 16,460 18,063
Other long-term liabilities 4,603 3,334
Total long-term liabilities 263,982 264,155
Total liabilities 769,170 782,617
Commitments and contingencies
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; 101,569,933 and 102,823,700 shares issued and outstanding at March 31, 2024 and December 31, 2023, respectively 102 103
Additional paid-in capital 1,057,837 1,031,627
Accumulated other comprehensive loss (40,672) (34,739)
Accumulated deficit (53,793) (52,373)
Total stockholders' equity 963,474 944,618
Total liabilities and stockholders' equity $ 1,732,644 $ 1,727,235
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CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($)
$ in Thousands
Mar. 31, 2024
Dec. 31, 2023
Statement of Financial Position [Abstract]    
Accounts receivable, net of allowance $ 290 $ 376
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) 101,569,933 102,823,700
Common stock, shares outstanding (in shares) 101,569,933 102,823,700
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CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($)
shares in Thousands, $ in Thousands
3 Months Ended
Mar. 31, 2024
Mar. 31, 2023
Income Statement [Abstract]    
Net revenues $ 174,350 $ 187,601
Cost of revenues 46,497 49,150
Gross profit 127,853 138,451
Operating expenses:    
Research and development 44,435 46,907
Sales and marketing 30,375 37,017
General and administrative 55,534 58,973
Total operating expenses 130,344 142,897
Loss from operations (2,491) (4,446)
Interest expense, net and other income, net:    
Interest expense, net (650) (1,268)
Other income, net 10,780 12,076
Total interest expense, net and other income, net 10,130 10,808
Income before provision for income taxes 7,639 6,362
Provision for income taxes (9,059) (4,176)
Net (loss) income $ (1,420) $ 2,186
Net (loss) income per share    
Basic (in dollars per share) $ (0.01) $ 0.02
Diluted (in dollars per share) $ (0.01) $ 0.02
Weighted average shares used to compute net (loss) income per share    
Basic (in shares) 102,343 123,710
Diluted (in shares) 102,343 124,304
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CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE (LOSS) INCOME - USD ($)
$ in Thousands
3 Months Ended
Mar. 31, 2024
Mar. 31, 2023
Statement of Comprehensive Income [Abstract]    
Net (loss) income $ (1,420) $ 2,186
Other comprehensive (loss) income    
Change in net unrealized (loss) gain on investments (1,970) 3,812
Change in foreign currency translation adjustments (3,963) 8,338
Other comprehensive (loss) income (5,933) 12,150
Total comprehensive (loss) income $ (7,353) $ 14,336
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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, 2022   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)   (7,600,000)      
Repurchases of common stock (151,311) $ (7) (151,304)    
Issuance of common stock upon exercise of stock options (in shares)   18,000      
Issuance of common stock upon exercise of stock options 144   144    
Net share settlement of equity awards (in shares)   736,000      
Net share settlement of equity awards (7,735) $ 1 (7,736)    
Share-based compensation expense 34,736   34,736    
Other comprehensive (loss) income 12,150     12,150  
Net (loss) income 2,186       2,186
Ending balance (in shares) at Mar. 31, 2023   119,628,000      
Ending balance at Mar. 31, 2023 1,006,759 $ 120 1,120,344 (45,338) (68,367)
Beginning balance (in shares) at Dec. 31, 2022   126,474,000      
Beginning balance at Dec. 31, 2022 $ 1,116,589 $ 126 1,244,504 (57,488) (70,553)
Ending balance (in shares) at Dec. 31, 2023 102,823,700 102,824,000      
Ending balance at Dec. 31, 2023 $ 944,618 $ 103 1,031,627 (34,739) (52,373)
Increase (Decrease) in Stockholders' Equity [Roll Forward]          
Repurchases of common stock (in shares)   (2,116,000)      
Repurchases of common stock (114) $ (2) (112)    
Net share settlement of equity awards (in shares)   862,000      
Net share settlement of equity awards (4,293) $ 1 (4,294)    
Share-based compensation expense 30,616   30,616    
Other comprehensive (loss) income (5,933)     (5,933)  
Net (loss) income $ (1,420)       (1,420)
Ending balance (in shares) at Mar. 31, 2024 101,569,933 101,570,000      
Ending balance at Mar. 31, 2024 $ 963,474 $ 102 $ 1,057,837 $ (40,672) $ (53,793)
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CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($)
$ in Thousands
3 Months Ended
Mar. 31, 2024
Mar. 31, 2023
Cash flows from operating activities    
Net (loss) income $ (1,420) $ 2,186
Adjustments to reconcile net (loss) income to net cash provided by operating activities:    
Share-based compensation expense 29,289 33,746
Depreciation and amortization expense 19,687 25,543
Deferred income taxes 2,877 3,441
Operating lease expense, net 1,567 1,496
Amortization of issuance costs 541 1,057
Loss from write-off of property and equipment 478 120
Other non-cash items (31) (5)
Change in assets and liabilities:    
Accounts receivable 6,705 1,578
Prepaid expenses and other current assets 3,583 8,485
Other assets (1,270) 2,803
Accounts payable (6,589) (336)
Deferred revenue (1,159) 2,012
Accrued liabilities 640 (2,569)
Other liabilities (1,580) (6,397)
Net cash provided by operating activities 53,318 73,160
Cash flows from investing activities    
Purchases of property and equipment (28,017) (17,166)
Purchases of investments (79,028) (497,372)
Maturities of investments 50,731 407,759
Proceeds from sale of strategic equity investment 15,500 0
Net cash used in investing activities (40,814) (106,779)
Cash flows from financing activities    
Proceeds from common stock issued under stock plans, net 0 145
Payment of taxes related to the net share settlement of equity awards (4,294) (7,736)
Repurchase of common stock 0 (151,311)
Net cash used in financing activities (4,294) (158,902)
Effect of exchange rate changes (226) 187
Net increase (decrease) in cash, cash equivalents and restricted cash 7,984 (192,334)
Cash, cash equivalents and restricted cash, beginning of period 137,976 475,854
Cash, cash equivalents and restricted cash, end of period 145,960 283,520
Supplemental cash flow data:    
Interest 224 437
Income taxes, net of refunds 641 2,017
Cash paid for amounts included in the measurement of lease liabilities:    
Operating cash flows from operating leases 2,216 2,866
Right of use assets obtained in exchange for lease obligations:    
Operating leases 0 12,407
Non-cash investing and financing activities:    
Accrued purchases of long-lived assets 6,302 3,941
Reconciliation of cash, cash equivalents and restricted cash:    
Cash and cash equivalents 143,747 281,302
Restricted cash included in other current assets 224 63
Restricted cash included in other assets 1,989 2,155
Total cash, cash equivalents and restricted cash $ 145,960 $ 283,520
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Background and Basis of Presentation
3 Months Ended
Mar. 31, 2024
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. No matter the goal, level, or style, Chegg helps learners learn with confidence. We provide 24/7 on-demand support, and our personalized learning assistant leverages the power of artificial intelligence (“AI”), more than a hundred million pieces of proprietary content, as well as a decade of learning insights. Our platform also helps learners build essential life and job skills to accelerate their path from learning to earning, and we work with companies to offer learning programs for their employees.

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 March 31, 2024 and our results of operations, results of comprehensive (loss) income, stockholders' equity and cash flows for the three months ended March 31, 2024 and 2023. Our results of operations, results of comprehensive (loss) income, stockholders' equity, and cash flows for the three months ended March 31, 2024 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, 2023 (the Annual Report on Form 10-K) filed with the SEC.

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

Use of Estimates

The preparation of financial statements in conformity with GAAP requires management to make estimates, judgments, and assumptions that affect the reported amounts of assets and liabilities; the disclosure of contingent liabilities at the date of the financial statements; and the reported amounts of revenues and expenses during the reporting periods. We base our estimates on historical experience, knowledge of current business conditions, and various other factors we believe to be reasonable under the circumstances. These estimates are based on management’s knowledge about current events and expectations about actions we may undertake in the future. Actual results could differ from these estimates, and such differences could be material to our financial position and results of operations. There have been no material changes in our use of estimates during the three months ended March 31, 2024 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, 2023.

Recent Accounting Pronouncements

Recently Issued Accounting Pronouncements Not Yet Adopted

In December 2023, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) 2024-02, Codification Improvements—Amendments to Remove References to the Concepts Statements. ASU 2024-02 removes various references to the FASB’s Concepts Statements from the FASB’s Accounting Standards Codification. Early adoption is permitted, and the guidance will be applied prospectively with the option to apply retrospectively. The guidance is effective for annual periods beginning after December 15, 2024. We did not early adopt ASU 2024-02 and do not believe it will have a significant impact on our financial statements, however, we are currently in the process of evaluating the impact.
Recently Adopted Accounting Pronouncements

We did not adopt any accounting pronouncements during the three months ended March 31, 2024 that had a material impact on our financial statements.
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Revenues
3 Months Ended
Mar. 31, 2024
Revenue from Contract with Customer [Abstract]  
Revenues Revenues
Revenue Recognition

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

The following table presents 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
March 31,
Change
 20242023$%
Subscription Services$154,051 $168,440 $(14,389)(9)%
Skills and Other20,299 19,161 1,138 
Total net revenues$174,350 $187,601 $(13,251)(7)

During the three months ended March 31, 2024 and 2023, we recognized revenues of $37.5 million and $39.1 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
 March 31,
2024
December 31, 2023$%
Accounts receivable, net$24,741 $31,404 $(6,663)(21)%
Contract assets7,973 8,598 (625)(7)
Deferred revenue54,056 55,336 (1,280)(2)

During the three months ended March 31, 2024 our accounts receivable, net balance decreased by $6.7 million, or 21%, primarily due to timing of billings and seasonality of our business. During the three months ended March 31, 2024, our contract assets balance decreased by $0.6 million, or 7%, primarily due to cash collections from our Chegg Skills service. During the three months ended March 31, 2024, our deferred revenue balance decreased by $1.3 million, or 2%, primarily due to timing of bookings and seasonality of our business.
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Net (Loss) Income Per Share
3 Months Ended
Mar. 31, 2024
Earnings Per Share [Abstract]  
Net (Loss) Income Per Share Net (Loss) Income Per Share
The following table presents the computation of basic and diluted net (loss) income per share (in thousands, except per share amounts):
Three Months Ended
March 31,
20242023
Basic
Numerator:
Net (loss) income
$(1,420)$2,186 
Denominator:
Weighted average shares used to compute net (loss) income per share, basic
102,343 123,710 
Net (loss) income per share, basic
$(0.01)$0.02 
Diluted
Numerator:
Net (loss) income$(1,420)$2,186 
Denominator:
Weighted average shares used to compute net (loss) income per share, basic
102,343 123,710 
Shares related to stock plan activity— 594 
Weighted average shares used to compute net (loss) income per share, diluted
102,343 124,304 
Net (loss) income per share, diluted
$(0.01)$0.02 

The following table presents potential weighted-average shares of common stock outstanding that were excluded from the computation of diluted net (loss) income per share because including them would have been anti-dilutive (in thousands):
Three Months Ended
March 31,
20242023
Shares related to stock plan activity6,992 6,283 
Shares related to convertible senior notes9,234 18,226 
Total common stock equivalents16,226 24,509 
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Cash and Cash Equivalents, Investments and Fair Value Measurements
3 Months Ended
Mar. 31, 2024
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 present our cash and cash equivalents, and investments’ fair value level classification, adjusted cost, unrealized gain, unrealized loss and fair value as of March 31, 2024 and December 31, 2023 (in thousands):
 March 31, 2024
 Fair Value LevelAdjusted CostUnrealized GainUnrealized LossFair Value
Cash and cash equivalents:   
Cash$46,996 $— $— $46,996 
Money market fundsLevel 196,751 — — 96,751 
Total cash and cash equivalents$143,747 $— $— $143,747 
Short-term investments:   
Corporate debt securitiesLevel 2$117,099 $— $(425)$116,674 
U.S. treasury securitiesLevel 166,670 — (357)66,313 
Agency bondsLevel 264,207 — (181)64,026 
Total short-term investments$247,976 $— $(963)$247,013 
Long-term investments:   
Corporate debt securitiesLevel 2$169,302 $287 $(631)$168,958 
U.S. treasury securitiesLevel 153,107 — (400)52,707 
Total long-term investments$222,409 $287 $(1,031)$221,665 

 December 31, 2023
 Fair Value LevelAdjusted CostUnrealized GainUnrealized LossFair Value
Cash and cash equivalents:   
Cash$45,050 $— $— $45,050 
Money market fundsLevel 190,707 — — 90,707 
Total cash and cash equivalents$135,757 $— $— $135,757 
Short-term investments:   
Corporate debt securitiesLevel 269,548 — (170)69,378 
U.S. treasury securitiesLevel 125,734 — (114)25,620 
Agency bondsLevel 299,505 — (246)99,259 
Total short-term investments$194,787 $— $(530)$194,257 
Long-term investments:   
Corporate debt securitiesLevel 2$191,467 $898 $(213)$192,152 
U.S. treasury securitiesLevel 157,287 165 (57)57,395 
Total long-term investments$248,754 $1,063 $(270)$249,547 

As of March 31, 2024, we determined that the unrealized losses on our investments were not driven by credit related factors. During the three months ended March 31, 2024 and 2023, we did not recognize any losses on our investments due to credit related factors and our realized gains and losses on investments were not significant.

The following table presents our cash equivalents and investments' adjusted cost and fair value by contractual maturity as of March 31, 2024 (in thousands):
 Adjusted CostFair Value
Due within one year$247,976 $247,013 
Due after one year through three years222,409 221,665 
Investments not due at a single maturity date96,751 96,751 
Total$567,136 $565,429 
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. As of December 31, 2023, the carrying amount of our investment was $11.7 million. On January 1, 2024, we sold our investment for a total cash consideration of $15.5 million, resulting in a gain of $3.8 million. The cash payment received was included within cash flows from investing activities on our condensed consolidated statements of cash flows and the gain was included within other income, net on our condensed consolidated statements of operations.

In July 2022, we completed an investment of $6.0 million in Knack Technologies, Inc. (Knack), a privately held U.S. based peer-to-peer tutoring platform for higher education institutions. We do not have the ability to exercise significant influence over Knack's operating and financial policies and have elected to account for our investment at cost as it does not have a readily determinable fair value. We did not record any impairment charges during the three months ended March 31, 2024 and 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 months ended March 31, 2024 and 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 (defined below). 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 March 31, 2024 and December 31, 2023 was $205.4 million and $202.9 million, respectively. The estimated fair value of the 2025 notes as of March 31, 2024 and December 31, 2023 was $337.8 million and $329.5 million, respectively. For further information on the notes, refer to Note 5, “Convertible Senior Notes.”
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Convertible Senior Notes
3 Months Ended
Mar. 31, 2024
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). In March/April 2019, we issued $800 million in aggregate principal amount of 0.125% convertible senior notes due in 2025 (2025 notes, together with the 2026 notes, the notes). 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 certain circumstances. During the three months ended March 31, 2024, the circumstances allowing holders of the 2026 notes and 2025 notes to convert were not met.

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 circumstances. As of March 31, 2024, the 2025 notes were classified as a current liability on our condensed consolidated balance sheets as they will be convertible at the option of the holder at any time beginning December 15, 2024 and will mature on March 15, 2025, both of which are within the next twelve months.
The following table presents the net carrying amount of the notes (in thousands):
March 31, 2024December 31, 2023
2026 Notes2025 Notes2026 Notes2025 Notes
Principal$244,479 $358,914 $244,479 $358,914 
Unamortized issuance costs(1,560)(1,456)(1,721)(1,835)
Net carrying amount$242,919 $357,458 $242,758 $357,079 

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

Three Months Ended March 31,
2024
2023
2026 notes:
Contractual interest expense$— $— 
Amortization of issuance costs161 325 
Total 2026 notes interest expense$161 $325 
2025 notes:
Contractual interest expense$109 $216 
Amortization of issuance costs380 732 
Total 2025 notes interest expense$489 $948 

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 March 31, 2024, 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.
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Commitments and Contingencies
3 Months Ended
Mar. 31, 2024
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 has filed a motion to dismiss the case, which is pending before the Court. 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 March 31, 2024, we believe a loss is probable and reasonably estimable, and we have previously recognized an estimated loss contingency accrual of $7.0 million within general and administrative expense on our consolidated statements in 2023.

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. On August 15, 2023, the Company received an order granting its motion to compel arbitration, and the case was stayed and administratively closed pending the conclusion of arbitration. The parties have since resolved this matter, and the related settlement amount did not have a significant impact on our financial statements.

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 has filed a motion to dismiss the case, which was denied by the Court. 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. We continue to work with the FTC on the implementation of and compliance with the Final Order.

Aside from the loss contingency accrual recorded related to the Frank matter, we have not recorded any contingent liabilities related to the above matters as we do not believe that a loss is probable and reasonably estimable in these matters. We
are not aware of any other pending legal matters or claims, individually or in the aggregate, which 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 or financial condition.
v3.24.1.u1
Guarantees and Indemnifications
3 Months Ended
Mar. 31, 2024
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 March 31, 2024.
v3.24.1.u1
Stockholders' Equity
3 Months Ended
Mar. 31, 2024
Share-Based Payment Arrangement [Abstract]  
Stockholders' Equity Stockholders' Equity
Share Repurchases

During the three months ended March 31, 2024, we repurchased 2,115,952 shares of our common stock related to the final delivery of our November 2023 accelerated share repurchase (ASR) agreement. The November 2023 ASR settled, and we were not required to make any additional cash payments or delivery of common stock to the financial institution upon settlement.

During the year ended December 31, 2023, we repurchased a total of 26,505,979 shares of our common stock, which included the initial delivery of 13,498,313 shares from our November 2023 ASR, 3,433,157 shares from open market transactions in June 2023, and the total delivery of 9,574,509 shares from our February 2023 ASR, which were retired immediately.

Securities Repurchase Program

In August 2023, our board of directors approved a $200.0 million increase to our existing securities repurchase program authorizing the repurchase of up to $2.2 billion of our common stock and/or convertible notes, through open market purchases, block trades, and/or privately negotiated transactions or pursuant to Rule 10b5-1 plans, in compliance with applicable securities laws and other legal requirements. The timing, volume, and nature of the repurchases will be determined by management based on the capital needs of the business, market conditions, applicable legal requirements, and other factors. During the three months ended March 31, 2024, we had no cash repurchases of our common stock or notes. As of March 31, 2024, we had $3.7 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

The following table presents total share-based compensation expense recorded (in thousands):
 Three Months Ended
March 31,
 20242023
Cost of revenues$513 $527 
Research and development9,209 10,914 
Sales and marketing2,140 2,499 
General and administrative17,427 19,806 
Total share-based compensation expense$29,289 $33,746 
During the three months ended March 31, 2024 and 2023, we capitalized share-based compensation expense of $1.3 million and $1.0 million, respectively. As of March 31, 2024, total unrecognized share-based compensation expense was approximately $113.1 million, which is expected to be recognized over the remaining weighted-average vesting period of approximately 1.8 years.

The following table presents activity for outstanding RSUs and PSUs:
 RSUs and PSUs Outstanding
 Shares OutstandingWeighted Average Grant Date Fair Value
Balance at December 31, 202310,065,783 $23.63 
Granted225,385 9.50 
Released(1,361,503)25.19 
Forfeited(853,434)35.90 
Balance at March 31, 20248,076,231 21.67 
v3.24.1.u1
Pay vs Performance Disclosure - USD ($)
$ in Thousands
3 Months Ended
Mar. 31, 2024
Mar. 31, 2023
Pay vs Performance Disclosure    
Net (loss) income $ (1,420) $ 2,186
v3.24.1.u1
Insider Trading Arrangements
3 Months Ended
Mar. 31, 2024
Trading Arrangements, by Individual  
Rule 10b5-1 Arrangement Adopted false
Non-Rule 10b5-1 Arrangement Adopted false
Rule 10b5-1 Arrangement Terminated false
Non-Rule 10b5-1 Arrangement Terminated false
v3.24.1.u1
Background and Basis of Presentation (Policies)
3 Months Ended
Mar. 31, 2024
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 March 31, 2024 and our results of operations, results of comprehensive (loss) income, stockholders' equity and cash flows for the three months ended March 31, 2024 and 2023. Our results of operations, results of comprehensive (loss) income, stockholders' equity, and cash flows for the three months ended March 31, 2024 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, 2023 (the Annual Report on Form 10-K) filed with the SEC.
There have been no material changes to our significant accounting policies as compared to the significant accounting policies described in our Annual Report on Form 10-K.
Use of Estimates
Use of 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.
Recent Accounting Pronouncements
Recent Accounting Pronouncements

Recently Issued Accounting Pronouncements Not Yet Adopted

In December 2023, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) 2024-02, Codification Improvements—Amendments to Remove References to the Concepts Statements. ASU 2024-02 removes various references to the FASB’s Concepts Statements from the FASB’s Accounting Standards Codification. Early adoption is permitted, and the guidance will be applied prospectively with the option to apply retrospectively. The guidance is effective for annual periods beginning after December 15, 2024. We did not early adopt ASU 2024-02 and do not believe it will have a significant impact on our financial statements, however, we are currently in the process of evaluating the impact.
Recently Adopted Accounting Pronouncements

We did not adopt any accounting pronouncements during the three months ended March 31, 2024 that had a material impact on our financial statements.
v3.24.1.u1
Revenues (Tables)
3 Months Ended
Mar. 31, 2024
Revenue from Contract with Customer [Abstract]  
Schedule of Disaggregation of Revenue
The following table presents 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
March 31,
Change
 20242023$%
Subscription Services$154,051 $168,440 $(14,389)(9)%
Skills and Other20,299 19,161 1,138 
Total net revenues$174,350 $187,601 $(13,251)(7)
Schedule of Accounts Receivable
The following table presents our accounts receivable, net, contract assets and deferred revenue balances (in thousands, except percentages):
 Change
 March 31,
2024
December 31, 2023$%
Accounts receivable, net$24,741 $31,404 $(6,663)(21)%
Contract assets7,973 8,598 (625)(7)
Deferred revenue54,056 55,336 (1,280)(2)
v3.24.1.u1
Net (Loss) Income Per Share (Tables)
3 Months Ended
Mar. 31, 2024
Earnings Per Share [Abstract]  
Schedule of Net (Loss) Income Per Share, Basic and Diluted
The following table presents the computation of basic and diluted net (loss) income per share (in thousands, except per share amounts):
Three Months Ended
March 31,
20242023
Basic
Numerator:
Net (loss) income
$(1,420)$2,186 
Denominator:
Weighted average shares used to compute net (loss) income per share, basic
102,343 123,710 
Net (loss) income per share, basic
$(0.01)$0.02 
Diluted
Numerator:
Net (loss) income$(1,420)$2,186 
Denominator:
Weighted average shares used to compute net (loss) income per share, basic
102,343 123,710 
Shares related to stock plan activity— 594 
Weighted average shares used to compute net (loss) income per share, diluted
102,343 124,304 
Net (loss) income per share, diluted
$(0.01)$0.02 
Schedule of Antidilutive Securities Excluded from Computation of Net (Loss) Income Per Share
The following table presents potential weighted-average shares of common stock outstanding that were excluded from the computation of diluted net (loss) income per share because including them would have been anti-dilutive (in thousands):
Three Months Ended
March 31,
20242023
Shares related to stock plan activity6,992 6,283 
Shares related to convertible senior notes9,234 18,226 
Total common stock equivalents16,226 24,509 
v3.24.1.u1
Cash and Cash Equivalents, Investments and Fair Value Measurements (Tables)
3 Months Ended
Mar. 31, 2024
Cash and Cash Equivalents [Abstract]  
Schedule of Cash, Cash Equivalents and Investments
The following tables present our cash and cash equivalents, and investments’ fair value level classification, adjusted cost, unrealized gain, unrealized loss and fair value as of March 31, 2024 and December 31, 2023 (in thousands):
 March 31, 2024
 Fair Value LevelAdjusted CostUnrealized GainUnrealized LossFair Value
Cash and cash equivalents:   
Cash$46,996 $— $— $46,996 
Money market fundsLevel 196,751 — — 96,751 
Total cash and cash equivalents$143,747 $— $— $143,747 
Short-term investments:   
Corporate debt securitiesLevel 2$117,099 $— $(425)$116,674 
U.S. treasury securitiesLevel 166,670 — (357)66,313 
Agency bondsLevel 264,207 — (181)64,026 
Total short-term investments$247,976 $— $(963)$247,013 
Long-term investments:   
Corporate debt securitiesLevel 2$169,302 $287 $(631)$168,958 
U.S. treasury securitiesLevel 153,107 — (400)52,707 
Total long-term investments$222,409 $287 $(1,031)$221,665 

 December 31, 2023
 Fair Value LevelAdjusted CostUnrealized GainUnrealized LossFair Value
Cash and cash equivalents:   
Cash$45,050 $— $— $45,050 
Money market fundsLevel 190,707 — — 90,707 
Total cash and cash equivalents$135,757 $— $— $135,757 
Short-term investments:   
Corporate debt securitiesLevel 269,548 — (170)69,378 
U.S. treasury securitiesLevel 125,734 — (114)25,620 
Agency bondsLevel 299,505 — (246)99,259 
Total short-term investments$194,787 $— $(530)$194,257 
Long-term investments:   
Corporate debt securitiesLevel 2$191,467 $898 $(213)$192,152 
U.S. treasury securitiesLevel 157,287 165 (57)57,395 
Total long-term investments$248,754 $1,063 $(270)$249,547 
Schedule of Available-for-sale Securities Reconciliation
The following table presents our cash equivalents and investments' adjusted cost and fair value by contractual maturity as of March 31, 2024 (in thousands):
 Adjusted CostFair Value
Due within one year$247,976 $247,013 
Due after one year through three years222,409 221,665 
Investments not due at a single maturity date96,751 96,751 
Total$567,136 $565,429 
v3.24.1.u1
Convertible Senior Notes (Tables)
3 Months Ended
Mar. 31, 2024
Debt Disclosure [Abstract]  
Schedule of Debt
The following table presents the net carrying amount of the notes (in thousands):
March 31, 2024December 31, 2023
2026 Notes2025 Notes2026 Notes2025 Notes
Principal$244,479 $358,914 $244,479 $358,914 
Unamortized issuance costs(1,560)(1,456)(1,721)(1,835)
Net carrying amount$242,919 $357,458 $242,758 $357,079 
Schedule Of Interest Expense Recognized
The following table presents the total interest expense recognized related to the notes (in thousands):

Three Months Ended March 31,
2024
2023
2026 notes:
Contractual interest expense$— $— 
Amortization of issuance costs161 325 
Total 2026 notes interest expense$161 $325 
2025 notes:
Contractual interest expense$109 $216 
Amortization of issuance costs380 732 
Total 2025 notes interest expense$489 $948 
v3.24.1.u1
Stockholders' Equity (Tables)
3 Months Ended
Mar. 31, 2024
Share-Based Payment Arrangement [Abstract]  
Schedule of Stock-Based Compensation Expense for Employees and Non-Employees
The following table presents total share-based compensation expense recorded (in thousands):
 Three Months Ended
March 31,
 20242023
Cost of revenues$513 $527 
Research and development9,209 10,914 
Sales and marketing2,140 2,499 
General and administrative17,427 19,806 
Total share-based compensation expense$29,289 $33,746 
Schedule of Restricted Stock Unit Activity
The following table presents activity for outstanding RSUs and PSUs:
 RSUs and PSUs Outstanding
 Shares OutstandingWeighted Average Grant Date Fair Value
Balance at December 31, 202310,065,783 $23.63 
Granted225,385 9.50 
Released(1,361,503)25.19 
Forfeited(853,434)35.90 
Balance at March 31, 20248,076,231 21.67 
v3.24.1.u1
Background and Basis of Presentation - Narrative (Details)
3 Months Ended
Mar. 31, 2024
segment
Organization, Consolidation and Presentation of Financial Statements [Abstract]  
Number of operating segments 1
Number of reportable segments 1
v3.24.1.u1
Revenues - Disaggregation of Revenue (Details) - USD ($)
$ in Thousands
3 Months Ended
Mar. 31, 2024
Mar. 31, 2023
Disaggregation of Revenue [Line Items]    
Total net revenues $ 174,350 $ 187,601
Change, Total net revenues $ (13,251)  
Change, Total net revenues, percent (7.00%)  
Subscription Services    
Disaggregation of Revenue [Line Items]    
Total net revenues $ 154,051 168,440
Change, Total net revenues $ (14,389)  
Change, Total net revenues, percent (9.00%)  
Skills and Other    
Disaggregation of Revenue [Line Items]    
Total net revenues $ 20,299 $ 19,161
Change, Total net revenues $ 1,138  
Change, Total net revenues, percent 6.00%  
v3.24.1.u1
Revenues - Narrative (Details) - USD ($)
$ in Thousands
3 Months Ended
Mar. 31, 2024
Mar. 31, 2023
Revenue from Contract with Customer [Abstract]    
Contract with customer, liability, revenue recognized $ 37,500 $ 39,100
Change, accounts receivable, net $ (6,663)  
Change, accounts receivable, net, percent (21.00%)  
Change in contract assets $ (625)  
Change in contract assets, percent (7.00%)  
Change in deferred revenue $ (1,280)  
Change in deferred revenue, percent (2.00%)  
v3.24.1.u1
Revenues - Contract Balances (Details) - USD ($)
$ in Thousands
3 Months Ended
Mar. 31, 2024
Dec. 31, 2023
Revenue from Contract with Customer [Abstract]    
Accounts receivable, net $ 24,741 $ 31,404
Change, Accounts receivable, net $ (6,663)  
Change, Accounts receivable, net, percent (21.00%)  
Contract assets $ 7,973 8,598
Change, Contract assets $ (625)  
Change, Contract assets, percent (7.00%)  
Deferred revenue $ 54,056 $ 55,336
Change, Deferred revenue $ (1,280)  
Change, Deferred revenue, percent (2.00%)  
v3.24.1.u1
Net (Loss) Income Per Share - Computation of Basic and Diluted Net (Loss) Income Per Share (Details) - USD ($)
$ / shares in Units, shares in Thousands, $ in Thousands
3 Months Ended
Mar. 31, 2024
Mar. 31, 2023
Numerator:    
Net (loss) income $ (1,420) $ 2,186
Denominator:    
Weighted average shares used to compute net (loss) income per share, basic (in shares) 102,343 123,710
Net (loss) income per share, basic (in dollars per share) $ (0.01) $ 0.02
Weighted average shares used to compute net (loss) income per share, diluted (in shares) 102,343 124,304
Net (loss) income per share, diluted (in dollars per share) $ (0.01) $ 0.02
Shares related to stock plan activity    
Denominator:    
Incremental common shares attributable to dilutive effect (in shares) 0 594
v3.24.1.u1
Net (Loss) Income Per Share - Shares Excluded From Computation Of Diluted Net (Loss) Income Per Share (Details) - shares
shares in Thousands
3 Months Ended
Mar. 31, 2024
Mar. 31, 2023
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]    
Total common stock equivalents (in shares) 16,226 24,509
Shares related to stock plan activity    
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]    
Total common stock equivalents (in shares) 6,992 6,283
Shares related to convertible senior notes    
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]    
Total common stock equivalents (in shares) 9,234 18,226
v3.24.1.u1
Cash and Cash Equivalents, Investments and Fair Value Measurements - Schedule of Available For Sale Securities (Details) - USD ($)
$ in Thousands
Mar. 31, 2024
Dec. 31, 2023
Debt Securities, Available-for-sale [Line Items]    
Adjusted Cost $ 567,136  
Fair Value 565,429  
Cash and cash equivalents:    
Debt Securities, Available-for-sale [Line Items]    
Adjusted Cost 143,747 $ 135,757
Unrealized Gain 0 0
Unrealized Loss 0 0
Fair Value 143,747 135,757
Cash and cash equivalents: | Cash    
Debt Securities, Available-for-sale [Line Items]    
Adjusted Cost 46,996 45,050
Unrealized Gain 0 0
Unrealized Loss 0 0
Fair Value 46,996 45,050
Cash and cash equivalents: | Money market funds | Level 1    
Debt Securities, Available-for-sale [Line Items]    
Adjusted Cost 96,751 90,707
Unrealized Gain 0 0
Unrealized Loss 0 0
Fair Value 96,751 90,707
Short-term investments:    
Debt Securities, Available-for-sale [Line Items]    
Adjusted Cost 247,976 194,787
Unrealized Gain 0 0
Unrealized Loss (963) (530)
Fair Value 247,013 194,257
Short-term investments: | Corporate debt securities | Level 2    
Debt Securities, Available-for-sale [Line Items]    
Adjusted Cost 117,099 69,548
Unrealized Gain 0 0
Unrealized Loss (425) (170)
Fair Value 116,674 69,378
Short-term investments: | U.S. treasury securities | Level 1    
Debt Securities, Available-for-sale [Line Items]    
Adjusted Cost 66,670 25,734
Unrealized Gain 0 0
Unrealized Loss (357) (114)
Fair Value 66,313 25,620
Short-term investments: | Agency bonds | Level 2    
Debt Securities, Available-for-sale [Line Items]    
Adjusted Cost 64,207 99,505
Unrealized Gain 0 0
Unrealized Loss (181) (246)
Fair Value 64,026 99,259
Long-term investments:    
Debt Securities, Available-for-sale [Line Items]    
Adjusted Cost 222,409 248,754
Unrealized Gain 287 1,063
Unrealized Loss (1,031) (270)
Fair Value 221,665 249,547
Long-term investments: | Corporate debt securities | Level 2    
Debt Securities, Available-for-sale [Line Items]    
Adjusted Cost 169,302 191,467
Unrealized Gain 287 898
Unrealized Loss (631) (213)
Fair Value 168,958 192,152
Long-term investments: | U.S. treasury securities | Level 1    
Debt Securities, Available-for-sale [Line Items]    
Adjusted Cost 53,107 57,287
Unrealized Gain 0 165
Unrealized Loss (400) (57)
Fair Value $ 52,707 $ 57,395
v3.24.1.u1
Cash and Cash Equivalents, Investments and Fair Value Measurements - Contractual Maturity (Details)
$ in Thousands
Mar. 31, 2024
USD ($)
Adjusted Cost  
Due within one year $ 247,976
Due after one year through three years 222,409
Investments not due at a single maturity date 96,751
Adjusted Cost 567,136
Fair Value  
Due within one year 247,013
Due after one year through three years 221,665
Investments not due at a single maturity date 96,751
Fair Value $ 565,429
v3.24.1.u1
Cash and Cash Equivalents, Investments and Fair Value Measurements - Strategic Investments (Details) - USD ($)
$ in Thousands
1 Months Ended 3 Months Ended
Jan. 01, 2024
May 31, 2023
Mar. 31, 2024
Mar. 31, 2023
Dec. 31, 2023
Jul. 31, 2022
Schedule of Investments [Line Items]            
Proceeds from sale of strategic equity investment     $ 15,500 $ 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%        
Investment, carrying amount         $ 11,700  
Proceeds from sale of strategic equity investment $ 15,500          
Equity method investment, realized gain on disposal $ 3,800          
Knack Technologies, Inc            
Schedule of Investments [Line Items]            
Investment without readily determinable fair value           $ 6,000
v3.24.1.u1
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
Mar. 31, 2024
Dec. 31, 2023
Senior Notes due 2026    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Convertible senior notes $ 205.4 $ 202.9
Senior Notes due 2025    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Convertible senior notes $ 337.8 $ 329.5
v3.24.1.u1
Convertible Senior Notes - Narrative (Details) - Senior Notes
$ / shares in Units, $ in Thousands
1 Months Ended
Aug. 31, 2020
USD ($)
$ / shares
Apr. 30, 2019
USD ($)
$ / shares
Mar. 31, 2024
USD ($)
$ / shares
shares
Dec. 31, 2023
USD ($)
Mar. 31, 2019
Senior Notes due 2026          
Debt Instrument [Line Items]          
Face value | $ $ 1,000,000   $ 244,479 $ 244,479  
Interest rate, stated percentage 0.00%        
Conversion ratio 0.0092978        
Conversion price (in dollars per share) | $ / shares $ 107.55        
Senior Notes due 2026 | Capped Call          
Debt Instrument [Line Items]          
Conversion price (in dollars per share) | $ / shares     $ 156.44    
Net proceeds | $ $ 103,400        
Debt instrument, convertible (in shares) | shares     9,297,800    
Senior Notes due 2025          
Debt Instrument [Line Items]          
Face value | $   $ 800,000 $ 358,914 $ 358,914  
Interest rate, stated percentage   0.125%     0.125%
Conversion ratio   0.0193956      
Conversion price (in dollars per share) | $ / shares   $ 51.56      
Senior Notes due 2025 | Capped Call          
Debt Instrument [Line Items]          
Conversion price (in dollars per share) | $ / shares     $ 79.32    
Net proceeds | $   $ 97,200      
Debt instrument, convertible (in shares) | shares     6,961,352    
v3.24.1.u1
Convertible Senior Notes - Net Carrying Amount (Details) - Senior Notes - USD ($)
$ in Thousands
Mar. 31, 2024
Dec. 31, 2023
Aug. 31, 2020
Apr. 30, 2019
2026 Notes        
Debt Instrument [Line Items]        
Principal $ 244,479 $ 244,479 $ 1,000,000  
Unamortized issuance costs (1,560) (1,721)    
2026 Notes | Carrying Amount | Fair Value, Measurements, Nonrecurring        
Debt Instrument [Line Items]        
Net carrying amount 242,919 242,758    
2025 Notes        
Debt Instrument [Line Items]        
Principal 358,914 358,914   $ 800,000
Unamortized issuance costs (1,456) (1,835)    
2025 Notes | Carrying Amount | Fair Value, Measurements, Nonrecurring        
Debt Instrument [Line Items]        
Net carrying amount $ 357,458 $ 357,079    
v3.24.1.u1
Convertible Senior Notes - Interest Expense Recognized (Details) - USD ($)
$ in Thousands
3 Months Ended
Mar. 31, 2024
Mar. 31, 2023
Debt Instrument [Line Items]    
Amortization of issuance costs $ 541 $ 1,057
Senior Notes | 2026 Notes    
Debt Instrument [Line Items]    
Contractual interest expense 0 0
Amortization of issuance costs 161 325
Total interest expense 161 325
Senior Notes | 2025 Notes    
Debt Instrument [Line Items]    
Contractual interest expense 109 216
Amortization of issuance costs 380 732
Total interest expense $ 489 $ 948
v3.24.1.u1
Commitments and Contingencies (Details)
$ in Millions
Mar. 31, 2024
USD ($)
Commitments and Contingencies Disclosure [Abstract]  
Loss contingency accrual $ 7.0
v3.24.1.u1
Stockholders' Equity - Share Repurchase (Details) - shares
3 Months Ended 12 Months Ended
Mar. 31, 2024
Dec. 31, 2023
November 2023 ASRs    
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]    
Repurchases of common stock (in shares) 2,115,952  
Stock repurchased and retired during period, shares (in shares)   13,498,313
ASRs And Open Market Transactions    
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]    
Repurchases of common stock (in shares)   26,505,979
Open Market Transactions    
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]    
Stock repurchased and retired during period, shares (in shares)   3,433,157
February 2023 ASRs    
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]    
Stock repurchased and retired during period, shares (in shares)   9,574,509
v3.24.1.u1
Stockholders' Equity - Securities Repurchase Program (Details) - USD ($)
1 Months Ended 3 Months Ended
Aug. 31, 2023
Mar. 31, 2024
Mar. 31, 2023
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]      
Cash repurchases   $ 0 $ 151,311,000
Securities Repurchase Program      
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]      
Stock repurchase program, increase of authorized amount $ 200,000,000    
Stock repurchase program, authorized amount $ 2,200,000,000    
Cash repurchases   0  
Remaining under repurchase program   $ 3,700,000  
v3.24.1.u1
Stockholders' Equity - Schedule of Share-based Compensation Expense (Details) - USD ($)
$ in Thousands
3 Months Ended
Mar. 31, 2024
Mar. 31, 2023
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items]    
Total share-based compensation expense $ 29,289 $ 33,746
Cost of revenues    
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items]    
Total share-based compensation expense 513 527
Research and development    
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items]    
Total share-based compensation expense 9,209 10,914
Sales and marketing    
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items]    
Total share-based compensation expense 2,140 2,499
General and administrative    
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items]    
Total share-based compensation expense $ 17,427 $ 19,806
v3.24.1.u1
Stockholders' Equity - Narrative of Share-based Compensation Expense (Details) - USD ($)
$ in Millions
3 Months Ended
Mar. 31, 2024
Mar. 31, 2023
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]    
Share-based compensation expense capitalized $ 1.3 $ 1.0
RSUs and PSUs    
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]    
Unrecognized compensation costs related to restricted stock units $ 113.1  
Weighted-average vesting period 1 year 9 months 18 days  
v3.24.1.u1
Stockholders' Equity - Schedule of RSU and PSU Activity (Details) - RSUs and PSUs
3 Months Ended
Mar. 31, 2024
$ / shares
shares
Shares Outstanding  
Beginning balance (in shares) | shares 10,065,783
Granted (in shares) | shares 225,385
Released (in shares) | shares (1,361,503)
Forfeited (in shares) | shares (853,434)
Ending balance (in shares) | shares 8,076,231
Weighted Average Grant Date Fair Value  
Beginning balance (in dollars per share) | $ / shares $ 23.63
Granted (in dollars per share) | $ / shares 9.50
Released (in dollars per share) | $ / shares 25.19
Forfeited (in dollars per share) | $ / shares 35.90
Ending balance (in dollars per share) | $ / shares $ 21.67