CLOUDFLARE, INC., 10-Q filed on 8/4/2022
Quarterly Report
v3.22.2
Cover - shares
 6 Months Ended
Jun. 30, 2022
Jul. 21, 2022
Document Information [Line Items]    
Document Type 10-Q  
Document Quarterly Report true  
Document Period End Date Jun. 30, 2022  
Document Transition Report false  
Entity File Number 001-39039  
Entity Registrant Name Cloudflare, Inc.  
Entity Incorporation, State or Country Code DE  
Entity Tax Identification Number 27-0805829  
Entity Address, Address Line One 101 Townsend Street  
Entity Address, City or Town San Francisco  
Entity Address, State or Province CA  
Entity Address, Postal Zip Code 94107  
City Area Code 888  
Local Phone Number 993-5273  
Title of 12(b) Security Class A Common Stock, $0.001 par value  
Trading Symbol NET  
Security Exchange Name NYSE  
Entity Current Reporting Status Yes  
Entity Interactive Data Current Yes  
Entity Filer Category Large Accelerated Filer  
Entity Small Business false  
Entity Emerging Growth Company false  
Entity Shell Company false  
Amendment Flag false  
Entity Central Index Key 0001477333  
Document Fiscal Period Focus Q2  
Document Fiscal Year Focus 2022  
Current Fiscal Year End Date --12-31  
Class A common stock    
Document Information [Line Items]    
Entity Common Stock, Shares Outstanding   283,021,083
Class B common stock    
Document Information [Line Items]    
Entity Common Stock, Shares Outstanding   44,439,312
v3.22.2
CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($)
$ in Thousands
Jun. 30, 2022
Dec. 31, 2021
Current assets:    
Cash and cash equivalents $ 142,675 $ 313,777
Available-for-sale securities 1,499,173 1,508,066
Accounts receivable, net 122,114 95,543
Contract assets 7,195 6,079
Restricted cash short-term 9,357 2,958
Prepaid expenses and other current assets 33,499 29,433
Total current assets 1,814,013 1,955,856
Property and equipment, net 244,560 183,736
Goodwill 149,122 23,530
Acquired intangible assets, net 42,258 1,254
Operating lease right-of-use assets 132,165 130,314
Deferred contract acquisition costs, noncurrent 80,706 70,320
Restricted cash 1,746 4,223
Other noncurrent assets 3,889 2,838
Total assets 2,468,459 2,372,071
Current liabilities:    
Accounts payable 55,732 26,086
Accrued expenses and other current liabilities 53,184 38,085
Accrued compensation 36,639 65,905
Operating lease liabilities 28,298 25,175
Liability for early exercise of unvested stock options 3,150 4,651
Deferred revenue 155,811 116,546
Current portion of convertible senior notes, net 0 12,117
Total current liabilities 332,814 288,565
Convertible senior notes, net 1,433,867 1,146,877
Operating lease liabilities, noncurrent 105,348 109,037
Deferred revenue, noncurrent 6,841 4,680
Other noncurrent liabilities 9,099 7,114
Total liabilities 1,887,969 1,556,273
Commitments and contingencies (Note 8)
Temporary equity, convertible senior notes 0 4,439
Stockholders’ Equity:    
Additional paid-in capital 1,347,671 1,494,512
Accumulated deficit (751,428) (680,829)
Accumulated other comprehensive loss (16,078) (2,645)
Total stockholders’ equity 580,490 811,359
Total liabilities, temporary equity and stockholders’ equity 2,468,459 2,372,071
Class A common stock    
Stockholders’ Equity:    
Common stock, value, issued 282 277
Class B common stock    
Stockholders’ Equity:    
Common stock, value, issued $ 43 $ 44
v3.22.2
CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares
Jun. 30, 2022
Dec. 31, 2021
Class A common stock    
Stockholders’ Equity:    
Common stock, par value (in dollars per share) $ 0.001 $ 0.001
Common stock, shares authorized (in shares) 2,250,000,000 2,250,000,000
Common stock, shares issued (in shares) 282,774,214 277,707,635
Common stock, shares outstanding (in shares) 282,774,214 277,707,635
Class B common stock    
Stockholders’ Equity:    
Common stock, par value (in dollars per share) $ 0.001 $ 0.001
Common stock, shares authorized (in shares) 315,000,000 315,000,000
Common stock, shares issued (in shares) 44,623,332 45,904,227
Common stock, shares outstanding (in shares) 44,623,332 45,904,227
v3.22.2
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($)
shares in Thousands, $ in Thousands
 3 Months Ended 6 Months Ended
Jun. 30, 2022
Jun. 30, 2021
Jun. 30, 2022
Jun. 30, 2021
Income Statement [Abstract]        
Revenue $ 234,517 $ 152,428 $ 446,684 $ 290,483
Cost of revenue 55,804 35,029 102,855 67,113
Gross profit 178,713 117,399 343,829 223,370
Operating expenses:        
Sales and marketing 117,622 75,995 217,679 145,969
Research and development 75,114 41,349 142,168 80,876
General and administrative 50,518 28,927 88,547 56,651
Total operating expenses 243,254 146,271 448,394 283,496
Loss from operations (64,541) (28,872) (104,565) (60,126)
Non-operating income (expense):        
Interest income 1,641 373 2,702 917
Interest expense (1,040) (10,444) (2,597) (20,678)
Other income (expense), net 233 (877) (254) (729)
Total non-operating income (expense), net 834 (10,948) (149) (20,490)
Loss before income taxes (63,707) (39,820) (104,714) (80,616)
Provision for (benefit from) income taxes (170) (4,310) 204 (5,143)
Net loss $ (63,537) $ (35,510) $ (104,918) $ (75,473)
Net loss per share attributable to common stockholders, basic (in dollars per share) $ (0.20) $ (0.12) $ (0.32) $ (0.25)
Net loss per share attributable to common stockholders, diluted (in dollars per share) $ (0.20) $ (0.12) $ (0.32) $ (0.25)
Weighted-average shares used in computing net loss per share attributable to common stockholders, basic (in shares) 325,197 308,263 324,574 307,115
Weighted-average shares used in computing net loss per share attributable to common stockholders, diluted (in shares) 325,197 308,263 324,574 307,115
v3.22.2
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS - USD ($)
$ in Thousands
 3 Months Ended 6 Months Ended
Jun. 30, 2022
Jun. 30, 2021
Jun. 30, 2022
Jun. 30, 2021
Statement of Comprehensive Income [Abstract]        
Net loss $ (63,537) $ (35,510) $ (104,918) $ (75,473)
Other comprehensive loss:        
Change in unrealized loss on investments, net of tax (3,333) (78) (13,433) (207)
Other comprehensive loss (3,333) (78) (13,433) (207)
Comprehensive loss $ (66,870) $ (35,588) $ (118,351) $ (75,680)
v3.22.2
CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY - USD ($)
$ in Thousands
Total
Cumulative Effect, Period of Adoption, Adjustment
Additional paid-in capital
Additional paid-in capital
Cumulative Effect, Period of Adoption, Adjustment
Accumulated deficit
Accumulated deficit
Cumulative Effect, Period of Adoption, Adjustment
Accumulated other comprehensive loss
Class A common stock
Class A common stock
Common stock
Class B common stock
Class B common stock
Common stock
Beginning balance (in shares) at Dec. 31, 2020                 249,401,000   59,239,000
Beginning balance at Dec. 31, 2020 $ 816,940   $ 1,236,993   $ (420,520)   $ 163   $ 249   $ 55
Increase (Decrease) in Stockholders' Equity [Roll Forward]                      
Issuance of common stock upon exercise of stock options (in shares)                 411,000   1,811,000
Issuance of common stock upon exercise of stock options 11,519   11,517           $ 0   $ 2
Repurchases of unvested common stock (in shares)                 (67,000)    
Issuance of common stock related to early exercised stock options (in shares)                     34,000
Vesting of shares issued upon early exercise of stock options 2,052   2,051               $ 1
Issuance of common stock related to settlement of RSUs (in shares)                 750,000   669,000
Issuance of common stock related to settlement of RSUs 1   (1)           $ 1   $ 1
Tax withholding on RSU settlement (in shares)                     (14,000)
Tax withholding on RSU settlement (1,090)   (1,090)                
Conversion of Class B to Class A common stock (in shares)                 12,470,000   (12,470,000)
Conversion of Class B to Class A common stock 0               $ 13   $ (13)
Common stock issued under employee stock purchase plan (in shares)                 131,000    
Common stock issued under employee stock purchase plan 7,174   7,174                
Stock-based compensation 40,180   40,180                
Net loss (75,473)       (75,473)       $ (62,079)   $ (13,394)
Other comprehensive loss (207)           (207)        
Ending balance (in shares) at Jun. 30, 2021                 263,096,000   49,269,000
Ending balance at Jun. 30, 2021 $ 801,096   1,296,824   (495,993)   (44)   $ 263   $ 46
Accounting Standards Update [Extensible List] Accounting Standards Update 2020-06                    
Beginning balance (in shares) at Dec. 31, 2020                 249,401,000   59,239,000
Beginning balance at Dec. 31, 2020 $ 816,940   1,236,993   (420,520)   163   $ 249   $ 55
Ending balance (in shares) at Dec. 31, 2021               277,707,635 277,708,000 45,904,227 45,904,000
Ending balance at Dec. 31, 2021 811,359 $ (284,437) 1,494,512 $ (318,756) (680,829) $ 34,319 (2,645)   $ 277   $ 44
Beginning balance (in shares) at Mar. 31, 2021                 255,958,000   54,567,000
Beginning balance at Mar. 31, 2021 804,040   1,264,182   (460,483)   34   $ 256   $ 51
Increase (Decrease) in Stockholders' Equity [Roll Forward]                      
Issuance of common stock upon exercise of stock options (in shares)                 90,000   885,000
Issuance of common stock upon exercise of stock options 3,554   3,554           $ (1)   $ 1
Repurchases of unvested common stock (in shares)                 (7,000)    
Issuance of common stock related to early exercised stock options (in shares)                     (1,000)
Vesting of shares issued upon early exercise of stock options 1,021   1,021                
Issuance of common stock related to settlement of RSUs (in shares)                 418,000   332,000
Issuance of common stock related to settlement of RSUs 2   0           $ 1   $ 1
Tax withholding on RSU settlement (in shares)                     (8,000)
Tax withholding on RSU settlement (560)   (560)                
Conversion of Class B to Class A common stock (in shares)                 6,506,000   (6,506,000)
Conversion of Class B to Class A common stock 0               $ 7   $ (7)
Common stock issued under employee stock purchase plan (in shares)                 131,000    
Common stock issued under employee stock purchase plan 7,174   7,174                
Stock-based compensation 21,453   21,453                
Net loss (35,510)       (35,510)       $ (29,774)   $ (5,736)
Other comprehensive loss (78)           (78)        
Ending balance (in shares) at Jun. 30, 2021                 263,096,000   49,269,000
Ending balance at Jun. 30, 2021 801,096   1,296,824   (495,993)   (44)   $ 263   $ 46
Beginning balance (in shares) at Dec. 31, 2021               277,707,635 277,708,000 45,904,227 45,904,000
Beginning balance at Dec. 31, 2021 811,359 $ (284,437) 1,494,512 $ (318,756) (680,829) $ 34,319 (2,645)   $ 277   $ 44
Increase (Decrease) in Stockholders' Equity [Roll Forward]                      
Issuance of common stock in connection with acquisition (in shares)                 522,000    
Issuance of common stock in connection with acquisition $ 65,505   65,504           $ 1    
Issuance of restricted stock in connection with acquisition (in shares)                 52,000    
Issuance of common stock upon exercise of stock options (in shares) 1,368,000               158,000   1,187,000
Issuance of common stock upon exercise of stock options $ 5,977   5,976               $ 1
Repurchases of unvested common stock (in shares)                 (2,000)    
Issuance of common stock related to early exercised stock options (in shares)                     23,000
Vesting of shares issued upon early exercise of stock options 1,560   1,559               $ 1
Issuance of common stock related to settlement of RSUs (in shares)                 818,000   588,000
Issuance of common stock related to settlement of RSUs 0   (1)               $ 1
Tax withholding on RSU settlement (in shares)                     (14,000)
Tax withholding on RSU settlement (1,264)   (1,264)                
Conversion of Class B to Class A common stock (in shares)                 3,065,000   (3,065,000)
Conversion of Class B to Class A common stock 0               $ 4   $ (4)
Common stock issued under employee stock purchase plan (in shares)                 154,000    
Common stock issued under employee stock purchase plan 8,688   8,688                
Settlement of common stock in connection with convertible senior notes (in shares)                 299,000    
Settlement of common stock in connection with convertible senior notes (201)   (201)                
Stock-based compensation 91,654   91,654                
Net loss (104,918)       (104,918)       $ (90,864)   $ (14,054)
Other comprehensive loss (13,433)           (13,433)        
Ending balance (in shares) at Jun. 30, 2022               282,774,214 282,774,000 44,623,332 44,623,000
Ending balance at Jun. 30, 2022 580,490   1,347,671   (751,428)   (16,078)   $ 282   $ 43
Beginning balance (in shares) at Mar. 31, 2022                 280,412,000   45,128,000
Beginning balance at Mar. 31, 2022 515,477   1,215,790   (687,891)   (12,745)   $ 280   $ 43
Increase (Decrease) in Stockholders' Equity [Roll Forward]                      
Issuance of common stock in connection with acquisition (in shares)                 503,000    
Issuance of common stock in connection with acquisition 63,548   63,547           $ 1    
Issuance of common stock upon exercise of stock options (in shares)                 93,000   418,000
Issuance of common stock upon exercise of stock options 2,971   2,971                
Vesting of shares issued upon early exercise of stock options 719   718               $ 1
Issuance of common stock related to settlement of RSUs (in shares)                 408,000   289,000
Issuance of common stock related to settlement of RSUs 0               $ (1)   $ 1
Tax withholding on RSU settlement (in shares)                     (8,000)
Tax withholding on RSU settlement (516)   (516)                
Conversion of Class B to Class A common stock (in shares)                 1,204,000   (1,204,000)
Conversion of Class B to Class A common stock 0               $ 2   $ (2)
Common stock issued under employee stock purchase plan (in shares)                 154,000    
Common stock issued under employee stock purchase plan 8,688   8,688                
Stock-based compensation 56,473   56,473                
Net loss (63,537)       (63,537)       $ (55,081)   $ (8,456)
Other comprehensive loss (3,333)           (3,333)        
Ending balance (in shares) at Jun. 30, 2022               282,774,214 282,774,000 44,623,332 44,623,000
Ending balance at Jun. 30, 2022 $ 580,490   $ 1,347,671   $ (751,428)   $ (16,078)   $ 282   $ 43
v3.22.2
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($)
$ in Thousands
 6 Months Ended
Jun. 30, 2022
Jun. 30, 2021
Cash Flows From Operating Activities    
Net loss $ (104,918) $ (75,473)
Adjustments to reconcile net loss to cash provided by operating activities:    
Depreciation and amortization expense 45,352 31,245
Non-cash operating lease costs 18,106 11,004
Amortization of deferred contract acquisition costs 20,218 12,915
Stock-based compensation expense 88,780 38,589
Amortization of debt discount and issuance costs 2,332 18,154
Net accretion of discounts and amortization of premiums on available-for-sale securities 3,798 3,864
Deferred income taxes (1,833) (6,616)
Provision for bad debt 2,010 2,009
Other 264 84
Changes in operating assets and liabilities, net of effect of acquisitions:    
Accounts receivable, net (26,947) (14,363)
Contract assets (1,116) (1,711)
Deferred contract acquisition costs (30,604) (25,326)
Prepaid expenses and other current assets (5,067) (1,465)
Other noncurrent assets 371 1,590
Accounts payable 8,174 6,767
Accrued expenses and other current liabilities (30,479) 10,936
Operating lease liabilities (20,523) (10,371)
Deferred revenue 34,477 27,721
Other noncurrent liabilities 389 1,396
Net cash provided by operating activities 2,784 30,949
Cash Flows From Investing Activities    
Purchases of property and equipment (61,565) (35,840)
Capitalized internal-use software (10,034) (7,103)
Cash paid for acquisitions, net of cash acquired (86,941) 0
Purchases of available-for-sale securities (422,374) (381,205)
Maturities of available-for-sale securities 414,036 514,344
Other investing activities 25 50
Net cash provided by (used in) investing activities (166,853) 90,246
Cash Flows From Financing Activities    
Repayments of convertible senior notes (16,571) 0
Proceeds from the exercise of stock options 5,977 11,519
Proceeds from the early exercise of stock options 62 95
Repurchases of unvested common stock (3) (169)
Proceeds from the issuance of common stock for employee stock purchase plan 8,688 7,174
Payment of tax withholding obligation on RSU settlement (1,264) (1,090)
Net cash provided by (used in) financing activities (3,111) 17,529
Net increase (decrease) in cash, cash equivalents, and restricted cash (167,180) 138,724
Cash, cash equivalents, and restricted cash, beginning of period 320,958 118,146
Cash, cash equivalents, and restricted cash, end of period 153,778 256,870
Supplemental Disclosure of Cash Flow Information:    
Cash paid for interest 642 2,186
Cash paid for income taxes, net of refunds 990 942
Cash paid for operating lease liabilities 16,761 10,361
Supplemental Disclosure of Non-cash Investing and Financing Activities:    
Stock-based compensation capitalized for software development 2,656 1,542
Accounts payable and accrued expenses related to property and equipment additions 35,217 19,342
Vesting of early exercised stock options 1,560 2,052
Indemnity holdback consideration associated with business combinations 10,582 0
Issuance of common stock related to an acquisition 65,504 0
Operating lease right-of-use assets obtained in exchange for operating lease liabilities $ 17,537 $ 11,605
v3.22.2
Organization and Basis of Presentation
 6 Months Ended
Jun. 30, 2022
Organization, Consolidation and Presentation of Financial Statements [Abstract]  
Organization and Basis of Presentation Organization and Basis of Presentation
Organization and Description of Business
Cloudflare, Inc. (the Company, Cloudflare, we, us, or our) is a global cloud services provider that delivers a broad range of services to businesses of all sizes and in all geographies, making them more secure, enhancing the performance of their business-critical applications, and eliminating the cost and complexity of managing individual network hardware. Cloudflare’s network serves as a scalable, easy-to-use, unified control plane to deliver security, performance, and reliability across on-premise, hybrid, cloud, and software-as-a-service (SaaS) applications. The Company was incorporated in Delaware in July 2009. The Company is headquartered in San Francisco, California.
Basis of Presentation and Principles of Consolidation
The accompanying interim condensed consolidated financial statements and accompanying notes have been prepared in conformity with generally accepted accounting principles in the United States (U.S. GAAP) and applicable regulations of the Securities and Exchange Commission (the SEC) regarding interim financial reporting, and include the accounts of the Company and its wholly-owned subsidiaries. All intercompany balances and transactions have been eliminated in consolidation. The Company’s fiscal year ends on December 31.
Certain information and note disclosures normally included in the financial statements prepared in accordance with U.S. GAAP have been condensed or omitted pursuant to the applicable required disclosures and regulations of the SEC. Therefore, these unaudited condensed consolidated financial statements should be read in conjunction with the audited consolidated financial statements and the related notes thereto included in the Company's Annual Report on Form 10-K for the fiscal year ended December 31, 2021.
Unaudited Interim Condensed Consolidated Financial Information
The accompanying interim condensed consolidated balance sheet as of June 30, 2022, the condensed consolidated statements of operations and of comprehensive loss for the three and six months ended June 30, 2022 and 2021, the condensed consolidated statements of cash flows for the six months ended June 30, 2022 and 2021, the condensed consolidated statements of stockholders’ equity for the three and six months ended June 30, 2022 and 2021, and the related footnote disclosures are unaudited. These unaudited interim condensed consolidated financial statements have been prepared in accordance with U.S. GAAP. In management’s opinion, the unaudited interim condensed consolidated financial statements include all adjustments necessary to state fairly the Company’s financial position as of June 30, 2022, its results of operations for the three and six months ended June 30, 2022 and 2021, and its cash flows for the six months ended June 30, 2022 and 2021. The results for the three and six months ended June 30, 2022 are not necessarily indicative of the results expected for the full year ending December 31, 2022 or any future period. The unaudited condensed consolidated financial statements should be read in conjunction with the audited consolidated financial statements and the related notes thereto included in the Company's Annual Report on Form 10-K for the fiscal year ended December 31, 2021.
Use of Estimates
The preparation of condensed consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the amounts reported and disclosed in the condensed consolidated financial statements and accompanying notes to the condensed consolidated financial statements. Such estimates include, but are not limited to, allowance for doubtful accounts, deferred contract acquisitions costs, the period of benefit generated from the Company’s deferred contract acquisition costs, the capitalization and estimated useful life of internal-use software, the assessment of recoverability of intangible assets and their estimated useful lives, useful lives of property and equipment, liability and equity allocation of convertible senior notes, the determination of the incremental borrowing rate used for operating lease liabilities, the valuation and recognition of stock-based compensation expense, uncertain tax positions, and the recognition and measurement of current and deferred income tax assets and liabilities. Management bases these estimates and assumptions on historical experience and on various other assumptions that are believed to be reasonable. Due in part to the ongoing COVID-19 pandemic and other geopolitical conditions, there is ongoing uncertainty and significant
disruption in the global economy and financial markets. The Company is not aware of any specific event or circumstance that would require an update to its estimates or assumptions or a revision of the carrying value of its assets or liabilities as of August 4, 2022, the date of issuance of this Quarterly Report on Form 10-Q. These estimates and assumptions may change in the future, however, as new events occur and additional information is obtained. Actual results could differ materially from these estimates.
v3.22.2
Summary of Significant Accounting Policies
 6 Months Ended
Jun. 30, 2022
Accounting Policies [Abstract]  
Summary of Significant Accounting Policies Summary of Significant Accounting Policies
Significant Accounting Policies
The Company's significant accounting policies are discussed in the "Notes to Consolidated Financial Statements, Note 2. Summary of Significant Accounting Policies" in the Company's Annual Report on Form 10-K for the fiscal year ended December 31, 2021. There have been no significant changes to these policies that have had a material impact on the Company's condensed consolidated financial statements and related notes, except as noted below.
Recent Accounting Pronouncements
Recently Adopted Accounting Pronouncements
In August 2020, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) 2020-06, Debt—Debt with Conversion and Other Options (ASC 470-20) and Derivatives and Hedging - Contracts in Entity's Own Equity (ASC 815-40). The FASB issued this ASU to simplify the accounting for certain financial instruments with characteristics of liabilities and equity, including convertible instruments and contracts on an entity's own equity. This ASU removes the separation models for convertible debt with a cash conversion feature and convertible instruments with a beneficial conversion feature. Convertible instruments that continue to be subject to separation models are (1) those with conversion options that are required to be accounted for as bifurcated derivatives and (2) convertible debt instruments issued with substantial premiums for which the premiums are recorded as paid-in capital. The ASU also requires the if-converted method to be applied for all convertible instruments when calculating earnings per share. For public business entities, these amendments are effective for fiscal years beginning after December 15, 2021, with early adoption permitted for fiscal years beginning after December 15, 2020.
The Company adopted ASU 2020-06 effective January 1, 2022 using the modified retrospective method and therefore financial information for periods before January 1, 2022 were not impacted. Upon adoption of ASU 2020-06, the Company is no longer recording the conversion feature of its 0.75% Convertible Senior Notes due 2025 (the 2025 Notes) and its 0.00% Convertible Senior Notes due 2026 (the 2026 Notes and together with the 2025 Notes, the Notes) in equity. Instead, the Company combined the previously separated equity component with the liability component, which together is now classified as debt, thereby eliminating the subsequent amortization of the debt discount as interest expense. Similarly, the portion of issuance costs previously allocated to equity was reclassified to debt and amortized as interest expense. Adoption of ASU 2020-06 resulted in an increase in the carrying value of the Notes by approximately $288.9 million, of which $4.4 million is classified as a current portion of convertible senior notes, net, to reflect the full principal amount of the Notes outstanding, net of unamortized debt discount and issuance costs, a decrease in additional paid-in capital of approximately $318.8 million and temporary equity, convertible senior notes of approximately $4.4 million to remove the equity component separately recorded for the conversion option associated with the Notes and its allocated issuance costs, and a cumulative-effect adjustment of approximately $34.3 million to the beginning balance of accumulated deficit as of January 1, 2022.
In October 2021, the FASB issued ASU 2021-08, Business Combinations (Topic 805): Accounting for Contract Assets and Contract Liabilities from Contracts with Customers, which requires contract assets and contract liabilities acquired in a business combination to be recognized and measured by the acquirer on the acquisition date in accordance with ASC Topic 606, Revenue from Contracts with Customers. Historically, such assets and liabilities are recognized by the acquirer at fair value in accordance with Topic 805.The ASU is effective for interim and annual periods beginning after December 15, 2022, on a prospective basis, with early adoption permitted. The Company early adopted this standard effective January 1, 2022, and such adoption did not have a material impact on its condensed consolidated financial statements.
v3.22.2
Revenue
 6 Months Ended
Jun. 30, 2022
Revenue from Contract with Customer [Abstract]  
Revenue Revenue
Disaggregation of Revenue
Subscription and support revenue is recognized over time and accounted for substantially all of the Company’s revenue for the three and six months ended June 30, 2022 and 2021.
The following table summarizes the revenue by region based on the billing address of customers who use the Company’s products:
Three Months Ended June 30,Six Months Ended June 30,
2022202120222021
(in thousands)
AmountPercentage
of Revenue		AmountPercentage
of Revenue		AmountPercentage
of Revenue		AmountPercentage
of Revenue
United States$124,259 53 %$79,944 52 %$235,609 53 %$151,166 52 %
Europe, Middle East, and Africa
61,147 26 %39,696 26 %116,939 26 %75,228 26 %
Asia Pacific32,755 14 %22,841 15 %62,680 14 %45,720 16 %
Other16,356 7 %9,947 7 %31,456 7 %18,369 6 %
Total$234,517 100 %$152,428 100 %$446,684 100 %$290,483 100 %
The following table summarizes the revenue by type of customer:
Three Months Ended June 30,Six Months Ended June 30,
2022202120222021
(in thousands)
AmountPercentage
of Revenue		AmountPercentage
of Revenue		AmountPercentage
of Revenue		AmountPercentage
of Revenue
Channel partners
$28,933 12 %$16,872 11 %$53,289 12 %$32,234 11 %
Direct customers
205,584 88 %135,556 89 %393,395 88 %258,249 89 %
Total$234,517 100 %$152,428 100 %$446,684 100 %$290,483 100 %
Contract Balances
Contract liabilities consist of deferred revenue and include payments received in advance of performance under the contract. Such amounts are recognized as revenue over the contractual period. For the six months ended June 30, 2022 and 2021, the Company recognized revenue of $92.8 million and $45.6 million, respectively, that was included in the corresponding contract liability balance at the beginning of the periods presented.
The Company receives payments from customers based upon contractual billing schedules; accounts receivable are recorded when the right to consideration becomes unconditional. Standard payment terms are due upon receipt. Contract assets include amounts related to the Company’s contractual right to consideration for both completed and partially completed performance obligations that have not been invoiced.
The following table summarizes the activity of the deferred contract acquisition costs:
Three Months Ended June 30,Six Months Ended June 30,
2022202120222021
(in thousands)
Beginning balance$76,266 $48,982 $70,320 $44,176 
Capitalization of contract acquisition costs
14,996 14,460 30,604 25,326 
Amortization of deferred contract acquisition costs
(10,556)(6,855)(20,218)(12,915)
Ending balance$80,706 $56,587 $80,706 $56,587 
The Company did not recognize any impairment losses of deferred contract acquisition costs during the periods presented.
Remaining Performance Obligations
As of June 30, 2022, the aggregate amount of the transaction price allocated to remaining performance obligations was $760.4 million. As of June 30, 2022, the Company expected to recognize 76% of its remaining performance obligations as revenue over the next 12 months with the remainder recognized thereafter.
v3.22.2
Fair Value Measurements
 6 Months Ended
Jun. 30, 2022
Fair Value Disclosures [Abstract]  
Fair Value Measurements Fair Value Measurements
Fair value is defined as the exchange price that would be received from sale of an asset or paid to transfer a liability in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date.
Assets and liabilities measured at fair value are classified into the following categories:
•Level I: Observable inputs are unadjusted quoted prices in active markets for identical assets or liabilities;
•Level II: Observable inputs are quoted prices for similar assets and liabilities in active markets or inputs other than quoted prices that are observable for the assets or liabilities, either directly or indirectly through market corroboration, for substantially the full term of the financial instruments; and
•Level III: Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities. These inputs are based on the Company’s own assumptions used to measure assets and liabilities at fair value and require significant management judgment or estimation.
The Company's cash equivalents and restricted cash are comprised of highly liquid money market funds. The Company classifies money market funds within Level I of the fair value hierarchy because they are valued based on quoted market prices in active markets. The Company classifies its investments, which are comprised of U.S. treasury securities, U.S. government agency securities, commercial paper, and corporate bonds, within Level II of the fair value hierarchy because the fair value of these securities is priced by using inputs based on non-binding market consensus prices that are primarily corroborated by observable market data or quoted market prices for similar instruments. The Company recognizes transfers between levels within the fair value hierarchy, if any, at the end of each period. There were no transfers between levels during the periods presented.
The following table summarizes the Company’s cash and available-for-sale securities’ amortized cost, unrealized gains (losses), and fair value by significant investment category reported as cash and cash equivalents, restricted cash short-term, restricted cash, or available-for-sale securities as of June 30, 2022 and December 31, 2021.
(in thousands)    Reported as:
June 30, 2022Amortized
Cost		Unrealized
Gain		Unrealized
(Loss)		Fair ValueCash &
Cash
Equivalents		Available-for-sale securitiesRestricted
Cash (Current and Non-Current)
Cash$47,815 $— $— $47,815 $38,458 $— $9,357 
Level I:
Money market funds
95,966 — — 95,966 94,220 — 1,746 
Level II:
Corporate bonds
215,087 — (2,194)212,893 — 212,893 — 
U.S. treasury securities
1,030,056 5 (13,812)1,016,249 9,997 1,006,252 — 
Commercial paper
280,028 — — 280,028 — 280,028 — 
Subtotal
1,525,171 5 (16,006)1,509,170 9,997 1,499,173 — 
Total assets measured at fair value on a recurring basis
$1,668,952 $5 $(16,006)$1,652,951 $142,675 $1,499,173 $11,103 
(in thousands)Reported as:
December 31, 2021Amortized
Cost		Unrealized
Gain		Unrealized
(Loss)		Fair
Value		Cash &
Cash
Equivalents		Available-for-sale securitiesRestricted
Cash
Cash$64,542 $— $— $64,542 $64,021 $— $521 
Level I:
Money market funds
253,075 — — 253,075 246,415 — 6,660 
Level II:
Corporate bonds
202,774 16 (289)202,501 3,341 199,160 — 
U.S. treasury securities
960,278 2 (2,298)957,982 — 957,982 — 
Commercial paper
350,924 — — 350,924 — 350,924 — 
Subtotal
1,513,976 18 (2,587)1,511,407 3,341 1,508,066 — 
Total assets measured at fair value on a recurring basis
$1,831,593 $18 $(2,587)$1,829,024 $313,777 $1,508,066 $7,181 
As of June 30, 2022, the Company had $11.1 million in total restricted cash, mainly related to $10.6 million of indemnity holdback consideration associated with business combinations. For further details on the indemnity holdback, refer to Note 13 to these condensed consolidated financial statements.
The aggregate fair value of the Company’s money market funds approximated amortized cost and, as such, there were no unrealized gains or losses on money market funds as of June 30, 2022 and December 31, 2021. Realized gains and losses, net of tax, were not material for any of the periods presented.
The amortized cost of available-for-sale investments with maturities less than one year was $1,294.0 million and $966.3 million as of June 30, 2022 and December 31, 2021, respectively. The amortized cost of available-for-sale investments with maturities greater than one year was $221.1 million and $544.4 million as of June 30, 2022 and December 31, 2021, respectively.
As of June 30, 2022, net unrealized loss on investments were $16.1 million and were included in accumulated other comprehensive income on the condensed consolidated balance sheets. As of December 31, 2021, net unrealized gains on investments were $2.7 million net of tax and were included in accumulated other comprehensive income on the condensed consolidated balance sheets. The unrealized gains and losses on available-for-sale investments are related to U.S. treasury securities, U.S. government agency securities, commercial paper, and corporate bonds. The Company determined any unrealized losses to be temporary. Factors considered in determining whether a loss is temporary include the financial condition and near-term prospects of the investee, the extent of the loss related to the credit of the issuer, the expected cash flows from the security, the Company’s intent to sell the security, and whether or not the Company will be required to sell the security before the recovery of its amortized cost. As of June 30, 2022, the Company's investment portfolio consisted of investment grade securities with an average credit rating of AA.
The Company carries the 2026 Notes issued in August 2021 at face value less the unamortized issuance costs on its condensed consolidated balance sheets and presents that fair value for disclosure purposes only. As of June 30, 2022, the fair value of the 2026 Notes was $1,012.0 million. The fair value of the 2026 Notes, which are classified as Level II financial instruments, was determined based on the quoted bid prices of the 2026 Notes in an over-the-counter market on the last trading day of the reporting period.
The Company carries the 2025 Notes issued in May 2020 at face value less the unamortized issuance costs on its condensed consolidated balance sheets and presents that fair value for disclosure purposes only. As of June 30, 2022, the fair value of the 2025 Notes was $221.4 million. The fair value of the 2025 Notes, which are classified as Level II financial instruments, was determined based on the quoted bid prices of the 2025 Notes in an over-the-counter market on the last trading day of the reporting period. For further details on the Notes, refer to Note 7 to these condensed consolidated financial statements.
The Company classifies financial instruments in Level III of the fair value hierarchy when there is reliance on at least one significant unobservable input to the valuation model. In addition to these unobservable inputs, the valuation
models for Level III financial instruments typically also rely on a number of inputs that are readily observable, either directly or indirectly. The Company’s assessment of the significance of a particular input to the fair value measurement in its entirety requires management to make judgments and consider factors specific to the asset or liability. There were no financial instruments classified as Level III of the fair value hierarchy as of June 30, 2022 and December 31, 2021.
v3.22.2
Balance Sheet Components
 6 Months Ended
Jun. 30, 2022
Organization, Consolidation and Presentation of Financial Statements [Abstract]  
Balance Sheet Components Balance Sheet Components
Accounts Receivable, Net
As of June 30, 2022 and December 31, 2021, the Company’s allowance for doubtful accounts was $2.8 million and $2.6 million, respectively. Provision for bad debt for the three months ended June 30, 2022 and 2021 was $1.0 million and $0.5 million, respectively, and for the six months ended June 30, 2022 and 2021 was $2.0 million and $2.0 million, respectively. Write-off of uncollectible accounts receivable for the three months ended June 30, 2022 and 2021 was $1.3 million and $0.2 million, respectively, and for the six months ended June 30, 2022 and 2021 was $1.8 million and $1.2 million, respectively.
Property and Equipment, Net
Property and equipment, net consisted of the following:
June 30, 2022December 31, 2021
(in thousands)
Property and equipment:
Servers—network infrastructure$192,893 $151,462 
Construction in progress66,512 41,424 
Capitalized internal-use software76,021 63,331 
Office and computer equipment34,118 24,451 
Office furniture6,684 5,927 
Software5,262 4,032 
Leasehold improvements19,462 12,892 
Asset retirement obligation827 430 
Gross property and equipment401,779 303,949 
Less accumulated depreciation and amortization(157,219)(120,213)
Total property and equipment, net$244,560 $183,736 
Depreciation and amortization expense on property and equipment for the three months ended June 30, 2022 and 2021 was $20.0 million and $15.1 million, respectively, and for the six months ended June 30, 2022 and 2021 was $38.9 million and $29.1 million, respectively. This includes amortization expense for capitalized internal-use software which totaled $4.8 million and $4.6 million for the three months ended June 30, 2022 and 2021, respectively, and $9.6 million and $8.8 million for the six months ended June 30, 2022 and 2021, respectively.
Goodwill
As of June 30, 2022 and December 31, 2021, the Company's goodwill was $149.1 million and $23.5 million, respectively. During the six months ended June 30, 2022, the Company recorded $5.0 million and $120.8 million of goodwill in connection with the acquisition of Vectrix Security, Inc. (Vectrix) and Area 1 Security, Inc. (Area 1), respectively. For further details on these acquisitions, refer to Note 13 to these condensed consolidated financial statements. No goodwill impairments were recorded during the six months ended June 30, 2022 and 2021.
Acquired Intangible Assets, Net
Acquired intangible assets, net consisted of the following:
June 30, 2022
Gross Carrying
Amount		Accumulated
Amortization		Net Book
Value
(in thousands)
Developed technology$40,100 $10,566 $29,534 
Customer relationships11,600 363 11,237 
Trade name1,700 213 1,487 
Total acquired intangible assets, net$53,400 $11,142 $42,258 
December 31, 2021
Gross Carrying
Amount		Accumulated
Amortization		Net Book
Value
(in thousands)
Developed technology$7,000 $5,746 $1,254 
Total acquired intangible assets, net$7,000 $5,746 $1,254 
The estimated useful life of the Company’s acquired developed technology and trade name intangible assets are two years and the estimated useful life of the Company's acquired customer relations intangible assets is eight years. The Company recorded preliminary amounts of $30.0 million, $11.6 million, and $1.7 million of developed technology, customer relationships, and trade name, respectively, in connection with the acquisition of Area 1 as of June 30, 2022. For further details on this acquisition, refer to Note 13 to these condensed consolidated financial statements.
Amortization of acquired intangible assets was $4.9 million and $0.7 million for the three months ended June 30, 2022 and 2021, respectively, and $5.4 million and $1.4 million for the six months ended June 30, 2022 and 2021, respectively.
As of June 30, 2022, the estimated future amortization expense of acquired intangible assets was as follows:
Estimated
Amortization
(in thousands)
Year ending December 31,
2022 (remaining six months)$9,774 
202319,404 
20245,468 
20251,450 
20261,450 
Thereafter4,712 
Total$42,258 
v3.22.2
Leases
 6 Months Ended
Jun. 30, 2022
Leases [Abstract]  
Leases Leases
The Company's lease portfolio consists of real estate and co-location agreements in the U.S. and internationally. The real estate leases include leases for office space and have remaining lease terms of up to 9.0 years. Certain of these leases contain options that allow the Company to extend or terminate the lease agreement. The Company's co-location leases have remaining lease terms of up to 6.5 years. All of the Company's leases are classified as operating leases.
The Company also subleased one of its leased office spaces. The lease term of the sublease ended during the three months ended June 30, 2021. Sublease income, which is recorded as a reduction of rent expense was zero and $0.4 million for the three months ended June 30, 2022 and 2021, respectively and zero and $1.1 million for the six months ended June 30, 2022 and 2021, respectively.
The components of lease cost related to the Company's operating leases included in the condensed consolidated statements of operations were as follows:
Three Months Ended June 30,Six Months Ended June 30,
2022202120222021
(in thousands)
Operating lease cost$9,496 $5,507 $18,106 $11,004 
Sublease income— (350)— (1,096)
Total lease cost$9,496 $5,157 $18,106 $9,908 
Variable lease cost and short-term lease cost for the three and six months ended June 30, 2022 and June 30, 2021 were not material.
As of June 30, 2022, the Company had $46.6 million of total undiscounted future payments under operating leases that have not yet commenced, which were not included on the condensed consolidated balance sheets. These operating leases will commence between July 2022 and September 2026 and have an average lease term of 4.7 years.
As of June 30, 2022, the weighted-average remaining term of the Company’s operating leases was 5.7 years and the weighted-average discount rate used to measure the present value of the operating lease liabilities was 3.5%.

Maturities of the operating lease liabilities as of June 30, 2022 are as follows:
June 30, 2022
(in thousands)
2022 (remaining six months)$8,794 
202331,397 
202428,712 
202521,788 
202619,208 
Thereafter39,977 
Total lease payments$149,876 
Less: Imputed interest$(16,230)
Total operating lease liabilities$133,646 
Leases Leases
The Company's lease portfolio consists of real estate and co-location agreements in the U.S. and internationally. The real estate leases include leases for office space and have remaining lease terms of up to 9.0 years. Certain of these leases contain options that allow the Company to extend or terminate the lease agreement. The Company's co-location leases have remaining lease terms of up to 6.5 years. All of the Company's leases are classified as operating leases.
The Company also subleased one of its leased office spaces. The lease term of the sublease ended during the three months ended June 30, 2021. Sublease income, which is recorded as a reduction of rent expense was zero and $0.4 million for the three months ended June 30, 2022 and 2021, respectively and zero and $1.1 million for the six months ended June 30, 2022 and 2021, respectively.
The components of lease cost related to the Company's operating leases included in the condensed consolidated statements of operations were as follows:
Three Months Ended June 30,Six Months Ended June 30,
2022202120222021
(in thousands)
Operating lease cost$9,496 $5,507 $18,106 $11,004 
Sublease income— (350)— (1,096)
Total lease cost$9,496 $5,157 $18,106 $9,908 
Variable lease cost and short-term lease cost for the three and six months ended June 30, 2022 and June 30, 2021 were not material.
As of June 30, 2022, the Company had $46.6 million of total undiscounted future payments under operating leases that have not yet commenced, which were not included on the condensed consolidated balance sheets. These operating leases will commence between July 2022 and September 2026 and have an average lease term of 4.7 years.
As of June 30, 2022, the weighted-average remaining term of the Company’s operating leases was 5.7 years and the weighted-average discount rate used to measure the present value of the operating lease liabilities was 3.5%.

Maturities of the operating lease liabilities as of June 30, 2022 are as follows:
June 30, 2022
(in thousands)
2022 (remaining six months)$8,794 
202331,397 
202428,712 
202521,788 
202619,208 
Thereafter39,977 
Total lease payments$149,876 
Less: Imputed interest$(16,230)
Total operating lease liabilities$133,646 
v3.22.2
Debt
 6 Months Ended
Jun. 30, 2022
Debt Disclosure [Abstract]  
Debt Debt
2026 Convertible Senior Notes
In August 2021, the Company issued $1,293.8 million aggregate principal amount of the 2026 Notes in a private offering to qualified institutional buyers pursuant to Rule 144A promulgated under the Securities Act, including the initial purchasers’ exercise in full of their option to purchase an additional $168.8 million aggregate principal amounts of the 2026 Notes. The total proceeds from the issuance of the 2026 Notes, net of initial purchaser discounts and commissions and debt issuance costs, were $1,274.0 million.
The 2026 Notes are senior unsecured obligations of the Company and will mature on August 15, 2026, unless earlier redeemed, repurchased, or converted, and are governed by the terms of the indenture dated August 13, 2021 (the 2026 Indenture). The 2026 Notes are 0% convertible senior notes and therefore do not bear regular cash interest.
The 2026 Notes are convertible at an initial conversion rate of 5.2263 shares of the Company's Class A common stock per $1,000 principal amount of the 2026 Notes, which is equivalent to an initial conversion price of approximately $191.34 per share, subject to adjustment upon the occurrence of specified events in accordance with the terms of the 2026 Indenture. The 2026 Notes may be converted at any time on or after May 15, 2026 until the
close of business on the second scheduled trading day immediately preceding the maturity date. Holders of the 2026 Notes may convert all or any portion of their 2026 Notes at their option at any time prior to the close of business on the business day immediately preceding May 15, 2026 only under the following circumstances:
(1) during any calendar quarter commencing after the calendar quarter ending on December 31, 2021 (and only during such calendar quarter), if the last reported sale price of the Company's Class A 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 conversion price on each applicable trading day;
(2) during the five business day period after any five consecutive trading day period in which the trading price per $1,000 principal amount of the 2026 Notes for each trading day of the measurement period was less than 98% of the product of the last reported sale price of the Company's Class A common stock and the conversion rate on each such trading day;
(3) if the Company calls such 2026 Notes for redemption, at any time prior to the close of business on the second scheduled trading day immediately preceding the redemption date; or
(4) upon the occurrence of specified corporate events.
None of the circumstances described in the paragraphs above were met during the three months ended June 30, 2022.
In addition, if the 2026 Notes are converted prior to the maturity date following certain specified corporate events or because the Company issues a notice of redemption, the Company will increase the conversion rate for such 2026 Notes converted in connection with such a corporate event or during the related redemption period, as the case may be, in certain circumstances set forth in the 2026 Indenture.
Upon conversion, the Company will pay or deliver, as the case may be, cash, shares of the Company's Class A common stock, or a combination of cash and shares of the Company's Class A common stock, at the Company's election. It is the Company’s current intent to settle the principal amount of 2026 Notes in cash.
The Company may not redeem the 2026 Notes prior to August 20, 2024. The Company may redeem for cash all or any portion of the 2026 Notes (subject to the partial redemption limitation (as defined below)), at its option, on or after August 20, 2024, if the last reported sale price of the Company’s Class A common stock has been at least 130% of the conversion price then in effect for at least 20 trading days (whether or not consecutive) during any 30 consecutive trading day period (including the last trading day of such period) ending on, and including, the trading day preceding the date on which the Company provides notice of redemption at a redemption price equal to 100% of the principal amount of the 2026 Notes to be redeemed, plus any accrued and unpaid special interest to, but excluding, the redemption date. If the Company elects to redeem fewer than all of the outstanding 2026 Notes, at least $100.0 million aggregate principal amount of 2026 Notes must be outstanding and not subject to redemption as of the relevant redemption date. No sinking fund is provided for the 2026 Notes.
If the Company undergoes a fundamental change (as defined in the 2026 Indenture), holders of the 2026 Notes may require the Company to repurchase for cash all or any portion of their notes at a repurchase price equal to 100% of the principal amount of the 2026 Notes to be repurchased, plus accrued and unpaid special interest to, but excluding, the fundamental change repurchase date.
Based on the closing price of the Company's Class A common stock of $43.75 on June 30, 2022, the if-converted value of the 2026 Notes does not exceed its principal amount. The remaining life of the 2026 Notes was approximately 50 months as of June 30, 2022.
2026 Capped Call Transactions
In connection with the offering of the 2026 Notes, the Company entered into privately-negotiated capped call option transactions (the 2026 Capped Calls) with certain financial institution counterparties. The 2026 Capped Calls each have an initial strike price of approximately $191.34 per share of the Company's Class A common stock, subject to certain adjustments, which corresponds to the initial conversion price of the 2026 Notes. The 2026 Capped Calls each have an initial cap price of approximately $250.94 per share, subject to certain adjustments. The 2026 Capped Calls initially cover, subject to anti-dilution adjustments, approximately 6.8 million shares of the Company's Class A common stock. The 2026 Capped Calls are intended to generally offset potential dilution to the Company's Class A common stock upon conversion of the 2026 Notes and/or offset the potential cash payments that the Company could be required to make in excess of the principal amount upon any conversion, subject to the cap price. The 2026 Capped Calls are subject to either adjustment or termination upon the occurrence of certain specified events
affecting the Company, including a merger event, a tender offer, and a nationalization, insolvency, or delisting involving the Company. The 2026 Capped Calls expire in incremental components on each trading date between July 17, 2026 and August 13, 2026. As of June 30, 2022, the terms of the 2026 Capped Calls have not been adjusted.
The 2026 Capped Calls are recorded in stockholders' equity and are not accounted for as derivatives. The premium paid for the purchase of the 2026 Capped Calls of $86.3 million was recorded as a reduction to additional paid-in capital on the condensed consolidated balance sheets.
2025 Convertible Senior Notes
In May 2020, the Company issued $575.0 million aggregate principal amount of the 2025 Notes in a private offering to qualified institutional buyers pursuant to Rule 144A promulgated under the Securities Act, including the initial purchasers' exercise in full of their option to purchase an additional $75.0 million aggregate principal amount of the 2025 Notes. The total net proceeds from the issuance of the 2025 Notes, after deducting initial purchaser discounts and debt issuance costs, were $562.5 million. Immediately following the closings of the 2025 Notes Exchange (defined below) and other conversions that have since been completed, $158.4 million in aggregate principal amount of the 2025 Notes remained outstanding as of June 30, 2022.
The 2025 Notes are senior unsecured obligations of the Company and will mature on May 15, 2025, unless earlier redeemed, repurchased, or converted, and are governed by the terms of the Indenture dated May 15, 2020 (the 2025 Indenture and, together with the 2026 Indenture, the Indentures). Interest on the 2025 Notes is payable semi-annually in arrears on May 15 and November 15 of each year, beginning on November 15, 2020, at a rate of 0.75% per year.
The 2025 Notes are convertible at an initial conversion rate of 26.7187 shares of the Company's Class A common stock per $1,000 principal amount of the 2025 Notes, which is equivalent to an initial conversion price of approximately $37.43 per share, subject to adjustment upon the occurrence of specified events in accordance with the terms of the 2025 Indenture. The 2025 Notes may be converted at any time on or after February 15, 2025 until the close of business on the second scheduled trading day immediately preceding the maturity date. Holders of the 2025 Notes may convert all or any portion of their 2025 Notes at their option at any time prior to the close of business on the business day immediately preceding February 15, 2025 only under the following circumstances:
(1) during any calendar quarter (and only during such calendar quarter), if the last reported sale price of the Company's Class A 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 conversion price on each applicable trading day;
(2) during the five business day period after any five consecutive trading day period in which the trading price per $1,000 principal amount of the 2025 Notes for each trading day of the measurement period was less than 98% of the product of the last reported sale price of the Company's Class A common stock and the conversion rate on each such trading day;
(3) if the Company calls such 2025 Notes for redemption, at any time prior to the close of business on the second scheduled trading day immediately preceding the redemption date; or
(4) upon the occurrence of specified corporate events.
None of the circumstances described in the paragraphs above were met during the three months ended June 30, 2022.
In addition, if the 2025 Notes are converted prior to the maturity date following certain specified corporate events or because the Company issues a notice of redemption, the Company will increase the conversion rate for such 2025 Notes converted in connection with such a corporate event or during the related redemption period, as the case may be, in certain circumstances set forth in the 2025 Indenture.
Upon conversion, the Company will pay or deliver, as the case may be, cash, shares of the Company's Class A common stock, or a combination of cash and shares of the Company's Class A common stock, at the Company's election. It is the Company’s current intent to settle the principal amount of 2025 Notes in cash.
The Company may not redeem the 2025 Notes prior to May 20, 2023. The Company may redeem for cash all or any portion of the 2025 Notes, at its option, on or after May 20, 2023, if the last reported sale price of the Company’s Class A common stock has been at least 130% of the conversion price then in effect for at least 20 trading days (whether or not consecutive) during any 30 consecutive trading day period (including the last trading day of such period) ending on, and including, the trading day preceding the date on which the Company provides
notice of redemption at a redemption price equal to 100% of the principal amount of the 2025 Notes to be redeemed, plus any accrued and unpaid interest to, but excluding, the redemption date. No sinking fund is provided for the 2025 Notes.
If the Company undergoes a fundamental change (as defined in the 2025 Indenture), holders of the 2025 Notes may require the Company to repurchase for cash all or any portion of their notes at a repurchase price equal to 100% of the principal amount of the 2025 Notes to be repurchased, plus accrued and unpaid interest to, but excluding, the fundamental change repurchase date.
During the six months ended June 30, 2022, the Company settled conversions of approximately $16.6 million aggregate principal amount of the 2025 Notes. The Company elected to settle the conversions in a combination of cash equal to the principal amount of the 2025 Notes converted and the issuance of 298,909 shares of the Company's Class A common stock for the remainder associated with the conversion premium. The difference between the settlement consideration and the carrying value of the 2025 Notes converted was recorded to additional paid-in-capital on the Company's condensed consolidated balance sheets.
2025 Notes Exchange
On August 13, 2021, the Company closed privately-negotiated exchange agreements with certain holders of the 2025 Notes to exchange approximately $400.0 million in aggregate principal amount of the 2025 Notes (the 2025 Notes Exchange) for an aggregate of $400.7 million in cash (including accrued interest) and approximately 7.6 million shares of the Company’s Class A common stock (the Exchange Shares) for aggregate consideration of $1,321.0 million. The Company used a portion of the net proceeds from the offering of the 2026 Notes to fund the 2025 Notes Exchange. As a result, the Company recorded a debt extinguishment loss of $72.2 million, representing the difference between the fair value of the liability component of $355.3 million and the carrying value of the 2025 Notes Exchange of $283.1 million at the closing date. The fair value of the liability component was calculated by using an effective interest rate of 4.08%, which was determined by measuring the fair value of similar debt instruments that did not have an associated convertible feature and adjusted to reflect the term of the remaining 2025 Notes. The aggregate consideration of $1,321.0 million was allocated between the fair value of the liability component of $355.3 million and the reacquisition of the equity component of $965.7 million, which was recorded as a reduction to additional paid-in capital and offset by the additional paid-in capital for the Exchange Shares issued.
Based on the closing price of the Company's Class A common stock of $43.75 on June 30, 2022, the if-converted value of the 2025 Notes exceeded its principal amount by approximately $26.8 million. The remaining life of the 2025 Notes was approximately 35 months as of June 30, 2022.
2025 Capped Call Transactions
In connection with the offering of the 2025 Notes, the Company entered into privately-negotiated capped call option transactions (the 2025 Capped Calls and, together with the 2026 Capped Calls, the capped call transactions) with certain financial institution counterparties. The 2025 Capped Calls each have an initial strike price of approximately $37.43 per share of the Company's Class A common stock, subject to certain adjustments, which corresponds to the initial conversion price of the 2025 Notes. The 2025 Capped Calls each have an initial cap price of $57.58 per share, subject to certain adjustments. The 2025 Capped Calls initially cover, subject to anti-dilution adjustments, approximately 15.4 million shares of the Company's Class A common stock. The 2025 Capped Calls are intended to generally offset potential dilution to the Company's Class A common stock upon conversion of the 2025 Notes and/or offset the potential cash payments that the Company could be required to make in excess of the principal amount upon any conversion, subject to the cap price. The 2025 Capped Calls are subject to either adjustment or termination upon the occurrence of certain specified events affecting the Company, including a merger event, a tender offer, and a nationalization, insolvency, or delisting involving the Company. The 2025 Capped Calls expire in incremental components on each trading date between March 18, 2025 and May 13, 2025. As of June 30, 2022, the terms of the 2025 Capped Calls have not been adjusted and no 2025 Capped Calls were exercised in connection with the 2025 Notes Exchange. As of June 30, 2022, no 2025 Capped Calls were exercised in connection with the 2025 Notes conversion requests.
The 2025 Capped Calls are recorded in stockholders' equity and are not accounted for as derivatives. The premium paid for the purchase of the 2025 Capped Calls of $67.3 million was recorded as a reduction to additional paid-in capital on the condensed consolidated balance sheets.
The net carrying amounts of the Notes were as follows:
June 30, 2022December 31, 2021
2026 Notes2025 Notes2026 Notes2025 Notes
(in thousands)
Principal$1,293,750 $158,429 $1,293,750 $175,000 
Unamortized debt discount(1)
— — (248,179)(45,382)
Unamortized debt issuance costs(16,327)(1,985)(14,541)(1,654)
Carrying amount, net$1,277,423 $156,444 $1,031,030 $127,964 
(1)The carrying value of the equity components of the 2025 Notes and 2026 Notes as of December 31, 2021 was eliminated upon the adoption of ASU 2020-06. Refer to Note 2 to these condensed consolidated financial statements.
The following tables set forth total interest expense recognized related to the Notes:
Three Months Ended June 30,
20222021
2026 Notes2025 Notes2026 Notes2025 Notes
(in thousands)
Coupon interest expense$— $297 $— $1,078 
Amortization of debt discount(1)
— — — 8,779 
Amortization of debt issuance costs989 173 — 404 
Total$989 $470 $— $10,261 
Six Months Ended June 30,
20222021
2026 Notes2025 Notes2026 Notes2025 Notes
(in thousands)
Coupon interest expense$— $607 $— $2,156 
Amortization of debt discount(1)
— — — 17,347 
Amortization of debt issuance costs1,979 353 — 807 
Total$1,979 $960 $— $20,310 
(1)As a result of the adoption of ASU 2020-06 on January 1, 2022, there is no debt discount associated with either the 2025 Notes or the 2026 Notes. Refer to Note 2 to these condensed consolidated financial statements.
Prior to the adoption of ASU 2020-06 on January 1, 2022, the Company separated the Notes into liability and equity components. On issuance of the Notes, the carrying amounts of the equity components were recorded as debt discount and subsequently amortized to interest expense. Upon the adoption of ASU 2020-06, the Company accounts each of the Notes as a single liability measured at its amortized cost. For further details on the adoption of ASU 2020-06, refer to Note 2 to these condensed consolidated financial statements.
v3.22.2
Commitments and Contingencies
 6 Months Ended
Jun. 30, 2022
Commitments and Contingencies Disclosure [Abstract]  
Commitments and Contingencies Commitments and Contingencies
Purchase Commitments
Open purchase commitments are for the purchase of services under non-cancelable contracts. They are not recorded as liabilities on the condensed consolidated balance sheet as of June 30, 2022 as the Company has not yet received the related services. Refer to the table below for purchase commitments under non-cancelable contracts with various vendors as of June 30, 2022.
Bandwidth & Co-location Commitments
The Company enters into long-term non-cancelable agreements with providers in various countries to purchase capacity, such as bandwidth and co-location space, for the Company’s global network. Bandwidth and co-location costs for paying customers are recorded as cost of revenue in the condensed consolidated statements of operations and as sales and marketing expense in the condensed consolidated statements of operations for free customers. Such costs totaled $27.9 million and $18.6 million for the three months ended June 30, 2022 and 2021, respectively,
and $53.7 million and $35.0 million for the six months ended June 30, 2022 and 2021. Refer to the table below for long-term bandwidth and co-location commitments under non-cancelable contracts with various networks and Internet service providers as of June 30, 2022. For the lease components of co-location agreements, refer to Note 6 to these condensed consolidated financial statements.
Payments Due by Period as of June 30, 2022
Total2022 (remaining six months)2023202420252026Thereafter
(in thousands)
Non-cancelable:
Open purchase agreements(1)
$78,002 $25,433 $34,839 $7,779 $2,579 $2,274 $5,098 
Bandwidth and other co-location related commitments(2)
125,555 22,187 37,416 27,106 16,104 10,971 11,771 
Other commitments(3)
10,582 — 10,582 — — — — 
Total$214,139 $47,620 $82,837 $34,885 $18,683 $13,245 $16,869 
(1)Open purchase commitments are for the purchase of services under non-cancelable contracts. They were not recorded as liabilities on the condensed consolidated balance sheet as of June 30, 2022 as the Company had not yet received the related services.
(2)Long-term commitments for bandwidth usage and other co-location related commitments with various networks and Internet service providers. The costs for services not yet received were not recorded as liabilities on the condensed consolidated balance sheet as of June 30, 2022.
(3)Indemnity holdback consideration associated with the Area 1 and Vectrix acquisitions. See Note 13.
Legal Matters
From time to time the Company is a party to various legal proceedings that arise in the ordinary course of business. In addition, third parties may from time to time assert claims against the Company in the form of letters and other communications. Management currently believes that there is no pending or threatened legal proceeding to which the Company is a party that is likely to have a material adverse effect on the Company’s condensed consolidated financial statements. However, the results of legal proceedings are inherently unpredictable and if an unfavorable ruling were to occur in any of the legal proceedings there exists the possibility of a material adverse effect on the Company’s financial position, results of operations, and cash flows. The Company accrues for legal proceedings that it considers probable and for which the loss can be reasonably estimated. The Company also discloses material contingencies when it believes a loss is not probable but reasonably possible and can be reasonably estimated. Legal costs incurred and expected to be incurred related to litigation matters are expensed as incurred.
The Company’s network and associated products are subject to various restrictions under U.S. export control and sanctions laws and regulations, including the U.S. Department of Commerce’s Export Administration Regulations (EAR) and various economic and trade sanctions regulations administered by the U.S. Department of the Treasury’s Office of Foreign Assets Controls (OFAC). The U.S. export control laws and U.S. economic sanctions laws include restrictions or prohibitions on the sale or supply of certain products and services to U.S. embargoed or sanctioned countries, governments, persons and entities and also require authorization for the export of certain encryption items. In addition, various countries regulate the import of certain encryption technology, including through import permitting and licensing requirements and have enacted or could enact laws that could limit the Company’s ability to distribute its products through its network.
Although the Company takes precautions to prevent its network and associated products from being accessed or used in violation of such laws, the Company may have inadvertently allowed its network and associated products to be accessed or used by some customers in apparent violation of U.S. economic sanctions laws, including by users in embargoed or sanctioned countries, and the Company may have exported or allowed the download of certain software prior to making required filings with the U.S. Department of Commerce’s Bureau of Industry and Security. As a result, the Company has submitted to OFAC and to the Bureau of Industry and Security a voluntary self-disclosure concerning potential violations, and the Company has submitted a voluntary self-disclosure to the Census Bureau regarding potential violations of the Foreign Trade Regulations related to some incorrect electronic export information statements to the U.S. government for certain hardware exports, which were authorized. The voluntary self-disclosure to the Census Bureau was completed with no penalties in November 2019, and the voluntary self-disclosure to the Bureau of Industry and Security was completed with no penalties in June 2020. The
voluntary self-disclosure to OFAC remains under review. If the Company is found to be in violation of U.S. economic sanctions or export control laws, it could result in substantial fines and penalties for the Company and for the individuals working for the Company. The Company may also be adversely affected through other penalties, reputational harm, loss of access to certain markets or otherwise. No loss has been recognized in the consolidated financial statements for this loss contingency as it is not probable a loss has been incurred and the range of a possible loss is not yet estimable.
Guarantees and Indemnifications
If the Company's services do not meet certain service level commitments, its contracted customers and certain of its pay-as-you-go customers are entitled to receive service credits, and in certain cases, refunds, each representing a form of variable consideration. To date, the Company has not incurred any material costs as a result of such commitments.
The Company’s arrangements generally include certain provisions for indemnifying customers against liabilities if its products or services infringe a third-party’s intellectual property rights. It is not possible to determine the maximum potential amount under these indemnification obligations due to the limited history of prior indemnification claims and the unique facts and circumstances involved in each particular agreement. To date, the Company has not incurred any material costs as a result of such obligations and has not accrued any liabilities related to such obligations in the condensed consolidated financial statements.
The Company has also agreed to indemnify its directors, executive officers, and certain other employees for costs associated with any fees, expenses, judgments, fines, and settlement amounts incurred by them in any action or proceeding to which any of them are, or are threatened to be, made a party by reason of their service as a director or officer. The Company maintains director and officer insurance coverage that would generally enable it to recover a portion of any future amounts paid. The Company also may be subject to indemnification obligations by law with respect to the actions of its employees under certain circumstances and in certain jurisdictions.
v3.22.2
Common Stock
 6 Months Ended
Jun. 30, 2022
Equity [Abstract]  
Common Stock Common Stock
The Company’s amended and restated certificate of incorporation authorizes the issuance of Class A common stock and Class B common stock. The holder of each share of Class A common stock is entitled to one vote per share, while the holder of each share of Class B common stock is entitled to 10 votes per share. As of June 30, 2022 and December 31, 2021, the Company was authorized to issue 2,250,000,000 shares of Class A common stock and 315,000,000 shares of Class B common stock, each with a par value of $0.001 per share. There were 282,774,214 and 277,707,635 shares of Class A common stock issued and outstanding as of June 30, 2022 and December 31, 2021, respectively. The number of shares of Class B common stock issued and outstanding was 44,623,332 and 45,904,227, as of June 30, 2022 and December 31, 2021, respectively.
Holders of the Company’s Class A common stock and Class B common stock are entitled to dividends when, as and if, declared by the Company’s Board of Directors, subject to the rights of the holders of all classes of stock outstanding having priority rights to dividends. Any dividends paid to the holders of the Class A common stock and Class B common stock will be paid on a pro rata basis. As of June 30, 2022 and December 31, 2021, the Company had not declared any dividends. The rights of the holders of Class A and Class B common stock are identical, except with respect to voting and conversion. Shares of the Company's Class B common stock are convertible into an equivalent number of shares of the Company's Class A common stock and generally convert into shares of the Company's Class A common stock upon cessation of employment or transfer, except for certain transfers described in the Company's amended and restated certificate of incorporation. Class A common stock and Class B common stock are referred to, collectively, as common stock throughout the notes to these condensed consolidated financial statements, unless otherwise indicated.
Common Stock Reserved for Future Issuance
Shares of common stock reserved for future issuance, on an as-if converted basis, are as follows:
June 30, 2022December 31, 2021
(in thousands)
2025 Notes5,503 6,078 
2026 Notes10,311 10,311 
Stock options issued and outstanding17,303 13,603 
Remaining shares available for issuance under the 2019 Plan(1)
48,392 30,761 
Outstanding and unsettled restricted stock units 7,620 7,417 
Shares available for issuance under the Employee Stock Purchase Plan11,139 8,056 
Total shares of common stock reserved100,268 76,226 
(1)    Remaining shares available for issuance under the 2019 Plan as of December 31, 2021, are net of the Co-Founder Performance Awards. See Note 10.
v3.22.2
Stock-based Compensation
 6 Months Ended
Jun. 30, 2022
Share-based Payment Arrangement [Abstract]  
Stock-based Compensation Stock-based Compensation
Equity Incentive Plans
In 2010, the Company's Board of Directors adopted and stockholders approved the 2010 Equity Incentive Plan (2010 Plan). The 2010 Plan is a broad-based retention program and is intended to attract and retain talented employees, directors, and non-employee consultants. The 2010 Plan provides for the granting of stock options, restricted stock, restricted stock units (RSUs), and stock appreciation rights to employees, directors, and consultants. Incentive stock options may be granted only to employees. All other awards under the 2010 Plan, including non-qualified stock options, may be granted to employees, directors, and consultants. Except for qualifying assumptions and substitutions of options, the exercise price of an incentive stock option and non-qualified stock option shall not be less than 100% of the fair market value of such shares on the date of grant. Prior to the Company's IPO, stock-based awards forfeited, canceled, or repurchased generally were returned to the pool of shares of common stock available for issuance under the 2010 Plan. In connection with the IPO, the 2010 Plan was terminated effective immediately prior to the effectiveness of the 2019 Equity Incentive Plan (2019 Plan) and the Company ceased granting any additional awards under the 2010 Plan. All outstanding awards under the 2010 Plan at the time of the termination of the 2010 Plan remain subject to the terms of the 2010 Plan, and any shares underlying stock options that expire or terminate or are forfeited or repurchased by the Company under the 2010 Plan will be automatically transferred to the 2019 Plan.
In 2019, the Company's Board of Directors adopted and stockholders approved the 2019 Plan, which became effective one business day prior to the effective date of the Company's registration statement on Form S-1 for the IPO. The 2019 Plan provides for the granting of stock options, restricted stock, RSUs, stock appreciation rights, performance shares, performance stock units, and performance awards for the Company's Class A common stock to the Company's employees, directors, and consultants. Except as otherwise indicated below, the maximum number of shares of Class A common stock that may be issued under the 2019 Plan will not exceed 66,661,953 shares of the Company's Class A common stock, which is the sum of (1) 29,335,000 new shares, plus (2) an additional number of shares of Class A common stock not to exceed 37,326,953, consisting of the total number of shares of Class A or Class B common stock subject to outstanding awards granted under the 2010 Plan that, on or after the 2019 Plan became effective, are canceled, expire, or otherwise terminate prior to exercise or settlement; are repurchased by the Company because of the failure to vest; or are forfeited, tendered to, or withheld by the Company (or not issued) to satisfy a tax withholding obligation or the payment of an exercise price, if any, as such shares become available from time to time. Stock-based awards under the 2019 Plan that expire or are forfeited, canceled, or repurchased generally are returned to the pool of shares of Class A common stock available for issuance under the 2019 Plan. In addition, the number of shares of the Company's Class A common stock reserved for issuance under the 2019 Plan will automatically increase on January 1 of each calendar year, starting on January 1, 2021 through January 1, 2029, in an amount equal to the least of (i) 29,335,000 shares, (ii) 5% of the total number of shares of Class A and Class B common stock outstanding on December 31 of the fiscal year before the date of each automatic increase, or (iii) a lesser number of shares determined by the compensation committee of the Company's Board of Directors prior to the applicable January 1.
Stock Options
Under the 2010 Plan and 2019 Plan, at exercise, stock option awards entitle the holder to receive one share of Class B or Class A common stock, in the case of the 2010 Plan, or one share of Class A common stock, in the case of the 2019 Plan. The stock options granted under the 2010 Plan and the 2019 Plan generally vest over a four-year period subject to remaining continuously employed and expire no more than 10 years from the date of grant. The following table summarizes the stock options activity under the 2010 Plan and 2019 Plan for the six months ended June 30, 2022:
Stock Options Outstanding
(in thousands, except year and per share data)
Shares Subject to Options OutstandingWeighted- Average Exercise Price per OptionWeighted- Average Remaining Contractual Terms (in years)Aggregate Intrinsic Value
Balances as of December 31, 202113,603 $12.47 6.0$1,726,440 
Options granted 5,074 $102.94 
Options exercised (1,368)$4.35 $125,302 
Options canceled/forfeited/expired (6)$7.41 
Balances as of June 30, 202217,303 $96.26 4.6$490,994 
Vested and expected to vest as of June 30, 202217,266 $33.70 4.6$489,634 
Exercisable as of June 30, 202211,387 $2.62 5.3$468,167 
The aggregate intrinsic value is the difference between the exercise price of the option and the estimated fair value of the underlying common stock. Options exercisable include 4,400,733 and 6,229,524 options that were unvested as of June 30, 2022 and December 31, 2021, respectively.
The total grant date fair value for vested options in the six months ended June 30, 2022 and 2021 was $5.1 million and $8.7 million, respectively.
As of June 30, 2022 and December 31, 2021, there was $305.1 million and $20.1 million, respectively, of unrecognized stock-based compensation expense related to unvested stock options that is expected to be recognized over a weighted-average period of 4.7 years and 2.3 years, respectively.
In December 2021, the Compensation Committee of the Board of Directors of the Company (the Compensation Committee) granted to the Company’s Chief Executive Officer and President and Chief Operating Officer (each, a Co-Founder), a 10-year performance-based stock option that vests and becomes exercisable only if the Company achieves certain stock price milestones and the Co-Founder continues to remain in a primary leadership position with the Company (the Co-Founder Performance Awards). If a majority of the voting power held by the Company’s stockholders other than the Co-Founders, other executive officers of the Company, certain other employees of the Company, and certain of their respective family members and affiliates (the Disinterested Stockholders) do not approve the Co-Founder Performance Awards by December 22, 2022, the Co-Founder Performance Awards will be immediately and automatically forfeited. Each Co-Founder Performance Award was granted under the 2019 Plan and consists of a 10-year option to purchase an aggregate of 3,960,000 shares of the Company’s Class A common stock. The exercise price per share subject to the Co-Founder Performance Awards is $136.81, which was the closing sales price of the Company’s Class A common stock on December 22, 2021, the date of grant by the Compensation Committee. Solely for accounting purposes, the grant date of the Co-Founder Performance Awards will be the date of approval by the majority of the voting power held by the Disinterested Stockholders. As of the date of this report, the Co-Founder Performance Awards have not been voted upon, and therefore not approved, by the Disinterested Stockholders, and accordingly, are not considered granted in accordance with ASC 718 solely for accounting purposes.
On February 14, 2022, the Company's Board of Directors and Compensation Committee granted to our executive officers (other than the Co-Founders) and certain other key employees 10-year performance-based stock options that vest and becomes exercisable only if the Company achieves certain stock price milestones and the employee continues to provide service to the Company through the applicable vesting dates (the Other Performance Awards). The Other Performance Awards were granted under the 2019 Plan and consist of 10-year options to purchase an aggregate of 4,915,000 shares of the Company’s Class A common stock. The exercise price per share subject to the Other Performance Awards is $105.56, which was the closing sales price of the Company’s Class A common stock on February 14, 2022. At the time of grant, the terms of the Other Performance Awards provided that such awards shall automatically forfeit if the Company's Disinterested Stockholders failed to approve the Co-Founder Performance Awards. On April 20, 2022, the Company's Board of Directors and Compensation Committee removed this contingency, resulting in an accounting grant date for the Other Performance Awards under ASC 718.
The fair values of the Other Performance Awards were measured and fixed at the grant date using a Monte Carlo simulation model. The weighted-average assumptions used to determine the fair value of the Other Performance Awards granted were as follows:
Six Months Ended June 30,
2022
Expected term (in years)9.81
Expected volatility59.0 %
Risk-free interest rate2.8 %
Dividend yield— 
The weighted-average grant date fair value of the Other Performance Awards was $58.85 per share.
The Company recognizes stock-based compensation expense for the Other Performance Awards based on the grand date fair value on an expense attribution method over the requisite service period of 5.24 years. The total stock-based compensation expense for the Other Performance Awards for the three and six months ended June 30, 2022 was $12.6 million. As of June 30, 2022, there was $276.6 million of unrecognized stock-based compensation expense related to the Other Performance Awards that is expected to be recognized over a weighted-average period of 5.1 years.
In connection with the acquisition of Area 1, each unvested option to purchase shares of Area 1’s common stock held by Area 1 employees who have joined the Company were assumed and converted into stock option awards to purchase the Company's Class A common stock (the Assumed Area 1 Stock Options). The Assumed Area 1 Stock Options are subject to the terms and conditions set forth in the Area 1 stock incentive plan and consist of options to purchase an aggregate of 156,770 shares of the Company’s Class A common stock. The Assumed Area 1 Stock Options are subject to annual vesting on a ratable basis over the three years from the Area 1 acquisition date, in each case subject to remaining continuously employed by the Company or any of its subsidiaries.
None of the Assumed Area 1 Stock Options vested during the three months ended June 30, 2022.
The weighted-average assumptions used to determine the fair value of the Assumed Area 1 Stock Options during the six months ended June 30, 2022 were as follows:
Six Months Ended June 30,
2022
Expected term (in years)2.3
Expected volatility66.7 %
Risk-free interest rate2.5 %
Dividend yield— 
The weighted-average grant date fair value of the Assumed Area 1 Stock Options was $93.32 per share.
The total stock-based compensation expense for the Assumed Area 1 Stock Options for the three and six months ended June 30, 2022 was $1.2 million.
As of June 30, 2022, there was $13.3 million of unrecognized stock-based compensation expense related to the Assumed Area 1 Stock Options that is expected to be recognized over a weighted-average period of 2.8 years.
For further details on the Area 1 acquisition, refer to Note 13 to these condensed consolidated financial statements.
Early Exercises of Stock Options
The 2010 Plan allows for the early exercise of stock options for certain individuals as determined by the Company’s Board of Directors. Shares of common stock issued upon early exercises of unvested options are not deemed, for accounting purposes, to be issued until those shares vest according to their respective vesting schedules and accordingly, the consideration received for early exercises is initially recorded as a liability and reclassified to common stock and additional paid-in capital as the underlying awards vest. Stock options that are early exercised are subject to a repurchase option that allows the Company to repurchase within six months of an individual’s termination for any reason, including death and disability (or in the case of shares issued upon exercise of an option after termination, within six months of the date of exercise), any unvested shares of such individual for a repurchase price equal to the amount previously paid by the individual for such unvested shares. As of June 30, 2022 and December 31, 2021, the Company had $3.1 million and $4.7 million, respectively, recorded in liability for early exercise of unvested stock options, and the related number of unvested shares subject to repurchase was 1,465,281 and 2,128,660, respectively.
Restricted Stock and Restricted Stock Units
RSUs granted under the 2010 Plan generally vest upon the satisfaction of both a service-based vesting condition and a performance vesting condition, as defined below, occurring before these RSUs expire. RSUs granted under the 2019 Plan generally vest upon the satisfaction of a service-based vesting condition. The service-based vesting condition for employees under both the 2010 Plan and the 2019 Plan is typically satisfied over a four-year period, subject to remaining continuously employed. The performance vesting condition under the 2010 Plan was deemed satisfied upon the effective date of the Company's registration statement on Form S-1 filed with the SEC in connection with the IPO.
In connection with the acquisition of Vectrix in January 2022, the Company issued approximately 71,000 shares of Class A common stock to former Vectrix employees who have joined the Company and previous holders of Vectrix equity interests. Of these issued shares, approximately 52,000 shares are restricted stock that is subject to vesting on a ratable basis over the four years from the acquisition date, in each case subject to remaining continuously employed. None of these restricted shares vested during the three months ended June 30, 2022. The total stock-based compensation expense for shares of unvested restricted stock for the six months ended June 30, 2022 was not material. As of June 30, 2022, the total unrecognized stock-based compensation expense related to unvested restricted stock was $4.6 million. For further details on the Vectrix acquisition, refer to Note 13 to these condensed consolidated financial statements.
In connection with the acquisition of Zaraz Inc. (Zaraz) in October 2021, the Company issued approximately 48,000 shares of Class A common stock to former Zaraz employees who have joined the Company and previous holders of Zaraz equity interests. Of these issued shares, approximately 39,000 are shares of restricted stock that is subject to vesting on a ratable basis over the three years from the acquisition date, in each case subject to remaining continuously employed. The total stock-based compensation expense for such shares of unvested restricted stock for the six months ended June 30, 2022 was not material. As of June 30, 2022, the total unrecognized stock-based compensation expense related to unvested restricted stock was $4.9 million. For further details on the Zaraz acquisition, refer to Note 13 to these condensed consolidated financial statements.
In connection with the acquisition of S2 Systems Corporation (S2) in January 2020, the Company issued approximately 948,000 shares of Class A common stock to former S2 shareholders, some of which have joined the Company as employees. Of these issued shares, approximately 841,000 shares are restricted stock that is subject to vesting, with 77.8% of this restricted stock vesting in two years from the acquisition date and the remainder of this restricted stock vesting in three years from the acquisition date, in each case subject to remaining continuously employed. The total grant date fair value for vested shares in the six months ended June 30, 2022 and June 30, 2021 was $11.2 million and zero, respectively. The total stock-based compensation expense for shares of unvested restricted stock for the six months ended June 30, 2022 was not material. As of June 30, 2022, the total unrecognized stock-based compensation expense related to unvested restricted stock was not material. For further details on the S2 acquisition, refer to Note 13 to these condensed consolidated financial statements.
RSU and restricted stock activity for the six months ended June 30, 2022 was as follows:
Restricted Stock and RSUsWeighted-Average
Grant
Date Fair Value
(in thousands, except per share data)
Unvested and outstanding as of December 31, 20217,456 $47.36 
Granted - RSUs1,918 $95.44 
Granted - Restricted stock52 $100.29 
Vested - RSUs(1,407)$33.27 
Vested - Restricted stock(656)$19.47 
Forfeited (346)$51.04 
Unvested as of June 30, 20227,017 $62.32 
Vested and not yet released— $— 
Outstanding as of June 30, 20227,017 $62.32 
The total grant date fair value for vested RSUs for the six months ended June 30, 2022 and 2021 was $46.8 million and $25.2 million, respectively. The total stock-based compensation expense for RSUs for the three months ended June 30, 2022 and 2021 was $32.6 million and $16.5 million, respectively, and for the six months ended June 30, 2022 and 2021 was $61.9 million and $30.1 million, respectively. As of June 30, 2022 and December 31, 2021, the total unrecognized stock-based compensation expense related to unvested RSUs was $395.5 million and $176.2 million, respectively, that is expected to be recognized over a weighted-average period of 3.2 years and 3.5 years, respectively.
2019 Employee Stock Purchase Plan
In September 2019, the Company's Board of Directors adopted and stockholders approved the 2019 Employee Stock Purchase Plan (ESPP), which became effective one business day prior to the effective date of the Company's registration statement on Form S-1 filed with the SEC in connection with the IPO. A total of 5,870,000 shares of Class A common stock were initially reserved for sale under the ESPP. The number of shares of Class A common stock reserved for issuance includes an annual increase on the first day of each fiscal year, beginning on January 1, 2021, by the least of (1) 5,870,000 shares of Class A common stock, (2) 1% of the total number of shares of Class A and Class B common stock outstanding on December 31 of the fiscal year before the date of each automatic increase; or (3) such lesser amount as the compensation committee of the Company's Board of Directors may determine prior to the applicable January 1.
Generally, all regular employees, including executive officers, employed by the Company or by any of its designated subsidiaries, except for those holding 5% or more of the total combined voting power or value of all classes of common stock, may participate in the ESPP and may contribute, normally through payroll deductions, up to 10% of their eligible compensation for the purchase of Class A common stock under the ESPP. Unless otherwise determined by the compensation committee of the Board of Directors, Class A common stock will be purchased for the accounts of employees participating in the ESPP at a price per share that is the lesser of (1) 85% of the fair market value of a share of the Company's Class A common stock on the first date of an offering period, or (2) 85% of the fair market value of a share of the Company's Class A common stock on the date of purchase.
The ESPP generally provides for six-month offering periods beginning on the first day of trading on or after November 15 and May 15 of each year and terminating on the last trading day before May 15 and November 15, approximately six months later, with identical purchase periods. Current employees cannot sell the shares of Class A common stock purchased under the ESPP until the day after the one-year anniversary of the purchase date of such shares, except for the withholding or sale of shares by the Company to meet any applicable tax withholding obligations. No employee may purchase (i) during each purchase period more than 1,500 shares of Class A common stock and (ii) shares under the ESPP at a rate in excess of $25,000 worth of the Company's Class A common stock based on the fair market value per share of the Company's Class A common stock at the beginning of an offering for each calendar year such purchase right is outstanding.
During the six months ended June 30, 2022 and June 30, 2021, respectively, 153,974 and 130,870 shares of Class A common stock were purchased under the ESPP. As of June 30, 2022 and December 31, 2021, the total unrecognized stock-based compensation expense related to the ESPP was $3.5 million and $2.6 million, respectively, that is expected to be recognized over a weighted average period of 0.4 years and 0.4 years, respectively.
The weighted-average assumptions used to determine the fair value of the ESPP during the periods presented were as follows:
Six months ended June 30,
20222021
Expected term (in years)0.50.5
Risk-free interest rate1.2 %0.1 %
Expected volatility88.5 %62.8 %
Dividend yield— %— %
Stock-based Compensation Expense
The following table sets forth the total stock-based compensation expense included in the Company’s condensed consolidated statements of operations:
Three Months Ended June 30,Six Months Ended June 30,
2022202120222021
(in thousands)
Cost of revenue$1,888 $579 $2,966 $993 
Sales and marketing12,216 6,608 21,135 12,253 
Research and development26,659 9,509 45,488 17,873 
General and administrative14,052 3,855 19,191 7,470 
Total stock-based compensation expense$54,815 $20,551 $88,780 $38,589 
v3.22.2
Net Loss per Share Attributable to Common Stockholders
 6 Months Ended
Jun. 30, 2022
Earnings Per Share [Abstract]  
Net Loss per Share Attributable to Common Stockholders Net Loss per Share Attributable to Common Stockholders
The following table sets forth the computation of basic and diluted net loss per share attributable to common stockholders:
Three Months Ended June 30,Six Months Ended June 30,
2022202120222021
Class AClass BClass AClass BClass AClass BClass AClass B
(in thousands, except per share data)
Net loss attributable to common stockholders
$(55,081)$(8,456)$(29,774)$(5,736)$(90,864)$(14,054)$(62,079)$(13,394)
Weighted-average shares used in computing net loss per share attributable to common stockholders, basic and diluted
281,915 43,282 258,471 49,792 281,097 43,477 252,614 54,501 
Net loss per share attributable to common stockholders, basic and diluted
$(0.20)$(0.20)$(0.12)$(0.12)$(0.32)$(0.32)$(0.25)$(0.25)
Since the Company was in a loss position for all periods presented, basic net loss per share is the same as diluted net loss per share as the inclusion of all potential common shares outstanding would have been antidilutive. The potential shares of common stock that were excluded from the computation of diluted net loss per share attributable to common stockholders for the periods presented because including them would have been antidilutive are as follows:
June 30,
20222021
(in thousands)
2025 Notes4,233 15,363 
2026 Notes6,762 — 
Shares subject to repurchase1,465 2,933 
Unexercised stock options17,303 15,812 
Unvested restricted stock and RSUs7,620 8,113 
Shares issuable pursuant to the ESPP187 141 
Total37,570 42,362 
v3.22.2
Income Taxes
 6 Months Ended
Jun. 30, 2022
Income Tax Disclosure [Abstract]  
Income Taxes Income Taxes
The computation of the provision for (benefit from) income taxes for interim periods is determined by applying the estimated annual effective tax rate to year-to-date earnings from recurring operations and adjusting for discrete tax items recorded in the period. The Company's ability to estimate the geographic mix of earnings is impacted by the relatively high-growth nature of the business, fluctuations of business operations by country, and implementation of tax planning strategies.
The Company recorded an income tax benefit of $0.2 million and $4.3 million for the three months ended June 30, 2022 and 2021, respectively, and an income tax expense of $0.2 million and an income tax benefit of $5.1 million for the six months ended June 30, 2022 and 2021, respectively.
The benefit from income taxes of $0.2 million for the three months ended June 30, 2022 was primarily related to the partial release of the U.S. valuation allowance in connection with an acquisition, offset by withholding taxes in the U.S. and income tax expense from profitable foreign jurisdictions.

The benefit from income taxes of $4.3 million for the three months ended June 30, 2021 was primarily related to excess tax benefits from stock-based compensation deductions and the remeasurement of deferred tax assets from an enacted rate change in the United Kingdom, offset by withholding taxes in the U.S. and income tax expense from profitable foreign jurisdictions.
The provision for income taxes of $0.2 million for the six months ended June 30, 2022 was primarily related to withholding taxes in the U.S. and income tax expense from profitable foreign jurisdictions, offset by the partial release of the U.S. valuation allowance in connection with acquisitions.
The benefit from income taxes of $5.1 million for the six months ended June 30, 2021 was primarily related to excess tax benefits from stock-based compensation deductions and the remeasurement of deferred tax assets from an enacted tax rate change in the United Kingdom, offset by withholding taxes in the U.S. and income tax expense from profitable foreign jurisdictions.
In determining the need for a valuation allowance, the Company weighs both positive and negative evidence in the various jurisdictions in which it operates to determine whether it is more likely than not that its deferred tax assets are realizable. A full valuation allowance has been established in the U.S. and the U.K. and no deferred tax assets and related tax benefits have been recognized in the consolidated financial statements. There is no valuation allowance associated with any other foreign jurisdictions.
v3.22.2
Business Combinations
 6 Months Ended
Jun. 30, 2022
Business Combination and Asset Acquisition [Abstract]  
Business Combinations Business Combinations
Area 1
On April 1, 2022, the Company acquired all of the outstanding shares of Area 1, a company that has developed cloud-native email security technology, for a total purchase consideration of $156.6 million. The total purchase consideration included (i) acquisition-date cash payments of $82.6 million, net of $2.5 million of cash acquired, (ii) $63.5 million in shares of the Company’s Class A common stock, (iii) a cash holdback of $9.3 million, which the Company is retaining for up to 12 months and will be payable to the previous owners of Area 1, subject to offset by the Company for any of the previous owners’ indemnification obligations in connection with the acquisition, and (iv) a cash holdback of $1.1 million, which the Company is retaining for up to five months and will be payable to the previous owners of Area 1, subject to the final purchase price adjustment. Concurrent with the closing of the acquisition, the Company made a cash payment of $4.1 million to repay Area 1’s debt, which was part of the acquisition-date cash payments included in the purchase consideration.
In connection with the acquisition, the Company entered into compensation arrangements for stock-based and cash awards with a value totaling $15.9 million. Of the total stock-based and cash awards, $1.4 million cash awards were recognized as compensation expense on the acquisition date. Refer to Note 10 to these condensed consolidated financial statements for further details on the share-based awards.
The transaction-related costs for the acquisition were not material and are included in general and administrative expenses in the consolidated statements of operations for the three and six months ended June 30, 2022. The preliminary amounts of assets acquired and liabilities assumed on the acquisition date are summarized as follows (in thousands):
Accounts receivable, net$1,634 
Prepaids and other current assets$953 
Acquired Intangible Assets$43,300 
Goodwill$120,830 
Total assets acquired$166,717 
Accounts Payable$(254)
Accrued expense and other current liabilities$(1,895)
Deferred revenue$(5,736)
Deferred revenue, noncurrent$(1,213)
Other noncurrent liabilities$(1,053)
Total purchase price$156,566 
The acquired assets and assumed liabilities were recorded at preliminary amounts based on their estimated fair values, except for deferred revenue which was recorded under ASC 606 in accordance with the early adoption of ASU 2021-08 Business Combinations (Topic 805), Accounting for Contract Assets and Contract Liabilities from Contracts with Customers effective January 1, 2022. The excess of the purchase price over the fair value of the net assets acquired was allocated to goodwill, none of which is expected to be deductible for tax purposes. Goodwill is primarily attributable to the assembled workforce as well as the anticipated synergies from the integration of Area 1’s technology with the Company's technology.
This acquisition did not have a material impact on the Company’s reported revenue or net loss amounts for any period presented; therefore, historical and pro forma disclosures have not been presented.
Vectrix
On January 14, 2022, the Company acquired all of the outstanding shares of Vectrix, a company that has developed an online security technology that gives users the ability to scan and monitor SaaS applications for security issues, for a total purchase consideration of $7.6 million. The total purchase consideration included (i) acquisition-date cash payments of $4.3 million, net of $0.8 million of cash acquired, (ii) $2.0 million in shares of the Company’s Class A common stock, and (iii) a cash holdback of $1.3 million, which the Company is retaining for up to 18 months and will be payable to the previous owners of Vectrix, subject to offset by the Company for any of the previous owners’ indemnification obligations in connection with the acquisition. Concurrent with the closing of the acquisition, the Company made a cash payment of $2.0 million to cancel and settle Vectrix’s other existing equity-related agreements, which was part of the acquisition-date cash payments included in the purchase consideration.
In connection with the acquisition, the Company entered into compensation arrangements for stock-based and cash awards with a value totaling $8.0 million, of which $2.6 million was recognized as compensation expense on the acquisition date. Additional compensation expense during the three and six months ended June 30, 2022 were not material. The remaining compensation amount of $4.8 million is being recognized over a future weighted-average period of 3.5 years subject to the recipients’ continued service with the Company.
The transaction-related costs for the acquisition were not material and are included in general and administrative expenses in the consolidated statements of operations for the three and six months ended June 30, 2022.
The fair values of assets acquired and liabilities assumed on the acquisition date are summarized as follows (in thousands):
Developed technology$3,100 
Goodwill4,951 
Total assets acquired8,051 
Accounts Payable(20)
Other noncurrent liabilities(419)
Total purchase price$7,612 
The acquired assets and assumed liabilities were recorded at their estimated fair values. The estimated useful life for the acquired developed technology is two years. The excess of the purchase price over the fair value of the net assets acquired was allocated to goodwill, none of which is expected to be deductible for tax purposes. Goodwill is primarily attributable to the assembled workforce as well as the anticipated synergies from the integration of Vectrix's technology with the Company's technology.
This acquisition did not have a material impact on the Company’s condensed consolidated financial statements; therefore, historical and pro forma disclosures have not been presented.
Zaraz Inc.
On October 15, 2021, the Company acquired all of the outstanding shares of Zaraz Inc., a remote-first company that has developed a server-side rendering technology, for a total estimated purchase consideration of $7.2 million. The total purchase consideration included (i) acquisition-date cash payments of $5.6 million, net of $0.8 million of cash acquired and (ii) $1.6 million in shares of the Company’s Class A common stock. Concurrent with the closing of the acquisition, the Company made a cash payment of $1.1 million to cancel and settle Zaraz’s existing equity arrangements, which was part of the acquisition-date cash payments included in the purchase consideration.
In connection with the acquisition, the Company entered into compensation arrangements for stock-based and cash awards with a value totaling $6.5 million, of which $0.5 million was recorded as total compensation expense during the year ended December 31, 2021. Additional compensation expense during the three and six months ended June 30, 2022 were not material. The remaining compensation amount of $4.9 million is being recognized over a future weighted-average period of 2.3 years subject to the recipients’ continued service with the Company.
The fair values of assets acquired and liabilities assumed on the acquisition date are summarized as follows (in thousands):
Developed technology$1,400 
Goodwill6,176 
Total assets acquired7,576 
Accrued compensation(82)
Other noncurrent liabilities(322)
Total purchase price$7,172 
The acquired assets and assumed liabilities were recorded at their estimated fair values. The estimated useful life for the acquired developed technology is two years. The excess of the purchase price over the fair value of the net assets acquired was allocated to goodwill, none of which is expected to be deductible for tax purposes. Goodwill is primarily attributable to the assembled workforce as well as the anticipated synergies from the integration of Zaraz's technology with the Company's technology. An immaterial purchase accounting adjustment to revise purchase consideration and goodwill was made during the six months ended June 30, 2022.
This acquisition did not have a material impact on the Company’s condensed consolidated financial statements; therefore, historical and pro forma disclosures have not been presented.
S2 Systems
In January 2020, the Company acquired all of the outstanding shares of S2, a company based in Kirkland, Washington that has developed browser isolation technology, for a total purchase consideration of $17.7 million. The Company is incorporating S2's technology into the Company's Cloudflare Gateway product. The total purchase consideration included (i) acquisition-date cash payments of $13.7 million, net of $0.1 million of cash acquired, (ii) $1.8 million in shares of the Company’s Class A common stock, and (iii) a cash holdback of $2.2 million, which the Company is retaining for up to 18 months and will be payable to the previous owners of S2, subject to offset by the Company for any of the previous owners’ indemnification obligations in connection with the acquisition. Such cash holdback was paid in full during the year ended December 31, 2021. Concurrent with the closing of the acquisition, the Company made a cash payment of $6.9 million to repay S2’s debt, which was part of the acquisition-date cash payments included in the purchase consideration.
In connection with the acquisition, the Company entered into compensation arrangements for stock-based and cash awards with a value totaling $20.3 million, of which $1.4 million and $2.8 million was recognized as total
compensation expense during the three and six months ended June 30, 2021. Additional compensation expense during the three and six months ended June 30, 2022 and the remaining compensation amount were not material.
The fair values of assets acquired and liabilities assumed on the acquisition date are summarized as follows (in thousands):
Prepaid expenses and other current assets$6 
Developed technology5,600 
Goodwill13,084 
Total assets acquired18,690 
Accrued expenses and other current liabilities(208)
Other noncurrent liabilities(782)
Total purchase price$17,700 
A note payable of $0.2 million, included in accrued expenses and other current liabilities in the table above, assumed on the acquisition date, was paid off during the fiscal year ended December 31, 2020.
The acquired assets and assumed liabilities were recorded at their estimated fair values. The estimated useful life for the acquired developed technology is two years. The excess of the purchase price over the fair value of the net assets acquired was allocated to goodwill, none of which is expected to be deductible for tax purposes. Goodwill is primarily attributable to the assembled workforce as well as the anticipated synergies from the integration of S2's technology with the Company's technology. A purchase accounting adjustment of $0.8 million to revise purchase consideration and goodwill was made during the fiscal year ended December 31, 2020.
This acquisition did not have a material impact on the Company’s condensed consolidated financial statements; therefore, historical and pro forma disclosures have not been presented.
v3.22.2
Segment and Geographic Information
 6 Months Ended
Jun. 30, 2022
Segment Reporting [Abstract]  
Segment and Geographic Information Segment and Geographic Information
The Company’s chief operating decision maker (CODM) is its CEO, President and COO, and CFO. Collectively, the CODM reviews financial information presented on a consolidated basis for purposes of allocating resources and evaluating financial performance. The Company has no segment managers who are held accountable by the CODM for operations, operating results, and planning for levels or components below the consolidated unit level. Accordingly, the Company has determined it has a single operating segment.
Refer to Note 3 to these condensed consolidated financial statements for revenue by geography.
The Company’s property and equipment, net, by geographic area were as follows:
 June 30, 2022December 31, 2021
 
 (in thousands)
United States$153,899 $120,357 
Rest of the world90,661 63,379 
Total property and equipment, net$244,560 $183,736 
No single country other than the United States accounted for more than 10% of total property and equipment, net as of June 30, 2022 and December 31, 2021.
v3.22.2
Summary of Significant Accounting Policies (Policies)
 6 Months Ended
Jun. 30, 2022
Accounting Policies [Abstract]  
Basis of Presentation Basis of PresentationThe accompanying interim condensed consolidated financial statements and accompanying notes have been prepared in conformity with generally accepted accounting principles in the United States (U.S. GAAP) and applicable regulations of the Securities and Exchange Commission (the SEC) regarding interim financial reporting, and include the accounts of the Company and its wholly-owned subsidiaries.Certain information and note disclosures normally included in the financial statements prepared in accordance with U.S. GAAP have been condensed or omitted pursuant to the applicable required disclosures and regulations of the SEC. Therefore, these unaudited condensed consolidated financial statements should be read in conjunction with the audited consolidated financial statements and the related notes thereto included in the Company's Annual Report on Form 10-K for the fiscal year ended December 31, 2021.
Principles of Consolidation Principles of ConsolidationAll intercompany balances and transactions have been eliminated in consolidation.
Fiscal Period The Company’s fiscal year ends on December 31.
Use of Estimates
Use of Estimates
The preparation of condensed consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the amounts reported and disclosed in the condensed consolidated financial statements and accompanying notes to the condensed consolidated financial statements. Such estimates include, but are not limited to, allowance for doubtful accounts, deferred contract acquisitions costs, the period of benefit generated from the Company’s deferred contract acquisition costs, the capitalization and estimated useful life of internal-use software, the assessment of recoverability of intangible assets and their estimated useful lives, useful lives of property and equipment, liability and equity allocation of convertible senior notes, the determination of the incremental borrowing rate used for operating lease liabilities, the valuation and recognition of stock-based compensation expense, uncertain tax positions, and the recognition and measurement of current and deferred income tax assets and liabilities. Management bases these estimates and assumptions on historical experience and on various other assumptions that are believed to be reasonable. Due in part to the ongoing COVID-19 pandemic and other geopolitical conditions, there is ongoing uncertainty and significant
disruption in the global economy and financial markets. The Company is not aware of any specific event or circumstance that would require an update to its estimates or assumptions or a revision of the carrying value of its assets or liabilities as of August 4, 2022, the date of issuance of this Quarterly Report on Form 10-Q. These estimates and assumptions may change in the future, however, as new events occur and additional information is obtained. Actual results could differ materially from these estimates.
Recent Accounting Pronouncements
Recent Accounting Pronouncements
Recently Adopted Accounting Pronouncements
In August 2020, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) 2020-06, Debt—Debt with Conversion and Other Options (ASC 470-20) and Derivatives and Hedging - Contracts in Entity's Own Equity (ASC 815-40). The FASB issued this ASU to simplify the accounting for certain financial instruments with characteristics of liabilities and equity, including convertible instruments and contracts on an entity's own equity. This ASU removes the separation models for convertible debt with a cash conversion feature and convertible instruments with a beneficial conversion feature. Convertible instruments that continue to be subject to separation models are (1) those with conversion options that are required to be accounted for as bifurcated derivatives and (2) convertible debt instruments issued with substantial premiums for which the premiums are recorded as paid-in capital. The ASU also requires the if-converted method to be applied for all convertible instruments when calculating earnings per share. For public business entities, these amendments are effective for fiscal years beginning after December 15, 2021, with early adoption permitted for fiscal years beginning after December 15, 2020.
The Company adopted ASU 2020-06 effective January 1, 2022 using the modified retrospective method and therefore financial information for periods before January 1, 2022 were not impacted. Upon adoption of ASU 2020-06, the Company is no longer recording the conversion feature of its 0.75% Convertible Senior Notes due 2025 (the 2025 Notes) and its 0.00% Convertible Senior Notes due 2026 (the 2026 Notes and together with the 2025 Notes, the Notes) in equity. Instead, the Company combined the previously separated equity component with the liability component, which together is now classified as debt, thereby eliminating the subsequent amortization of the debt discount as interest expense. Similarly, the portion of issuance costs previously allocated to equity was reclassified to debt and amortized as interest expense. Adoption of ASU 2020-06 resulted in an increase in the carrying value of the Notes by approximately $288.9 million, of which $4.4 million is classified as a current portion of convertible senior notes, net, to reflect the full principal amount of the Notes outstanding, net of unamortized debt discount and issuance costs, a decrease in additional paid-in capital of approximately $318.8 million and temporary equity, convertible senior notes of approximately $4.4 million to remove the equity component separately recorded for the conversion option associated with the Notes and its allocated issuance costs, and a cumulative-effect adjustment of approximately $34.3 million to the beginning balance of accumulated deficit as of January 1, 2022.
In October 2021, the FASB issued ASU 2021-08, Business Combinations (Topic 805): Accounting for Contract Assets and Contract Liabilities from Contracts with Customers, which requires contract assets and contract liabilities acquired in a business combination to be recognized and measured by the acquirer on the acquisition date in accordance with ASC Topic 606, Revenue from Contracts with Customers. Historically, such assets and liabilities are recognized by the acquirer at fair value in accordance with Topic 805.The ASU is effective for interim and annual periods beginning after December 15, 2022, on a prospective basis, with early adoption permitted. The Company early adopted this standard effective January 1, 2022, and such adoption did not have a material impact on its condensed consolidated financial statements.
v3.22.2
Revenue (Tables)
 6 Months Ended
Jun. 30, 2022
Revenue from Contract with Customer [Abstract]  
Schedule of Disaggregation of Revenue
The following table summarizes the revenue by region based on the billing address of customers who use the Company’s products:
Three Months Ended June 30,Six Months Ended June 30,
2022202120222021
(in thousands)
AmountPercentage
of Revenue		AmountPercentage
of Revenue		AmountPercentage
of Revenue		AmountPercentage
of Revenue
United States$124,259 53 %$79,944 52 %$235,609 53 %$151,166 52 %
Europe, Middle East, and Africa
61,147 26 %39,696 26 %116,939 26 %75,228 26 %
Asia Pacific32,755 14 %22,841 15 %62,680 14 %45,720 16 %
Other16,356 7 %9,947 7 %31,456 7 %18,369 6 %
Total$234,517 100 %$152,428 100 %$446,684 100 %$290,483 100 %
The following table summarizes the revenue by type of customer:
Three Months Ended June 30,Six Months Ended June 30,
2022202120222021
(in thousands)
AmountPercentage
of Revenue		AmountPercentage
of Revenue		AmountPercentage
of Revenue		AmountPercentage
of Revenue
Channel partners
$28,933 12 %$16,872 11 %$53,289 12 %$32,234 11 %
Direct customers
205,584 88 %135,556 89 %393,395 88 %258,249 89 %
Total$234,517 100 %$152,428 100 %$446,684 100 %$290,483 100 %
Schedule of Deferred Contract Acquisition Costs The following table summarizes the activity of the deferred contract acquisition costs:
Three Months Ended June 30,Six Months Ended June 30,
2022202120222021
(in thousands)
Beginning balance$76,266 $48,982 $70,320 $44,176 
Capitalization of contract acquisition costs
14,996 14,460 30,604 25,326 
Amortization of deferred contract acquisition costs
(10,556)(6,855)(20,218)(12,915)
Ending balance$80,706 $56,587 $80,706 $56,587 
v3.22.2
Fair Value Measurements (Tables)
 6 Months Ended
Jun. 30, 2022
Fair Value Disclosures [Abstract]  
Schedule of Fair Value by Significant Investment Category
The following table summarizes the Company’s cash and available-for-sale securities’ amortized cost, unrealized gains (losses), and fair value by significant investment category reported as cash and cash equivalents, restricted cash short-term, restricted cash, or available-for-sale securities as of June 30, 2022 and December 31, 2021.
(in thousands)    Reported as:
June 30, 2022Amortized
Cost		Unrealized
Gain		Unrealized
(Loss)		Fair ValueCash &
Cash
Equivalents		Available-for-sale securitiesRestricted
Cash (Current and Non-Current)
Cash$47,815 $— $— $47,815 $38,458 $— $9,357 
Level I:
Money market funds
95,966 — — 95,966 94,220 — 1,746 
Level II:
Corporate bonds
215,087 — (2,194)212,893 — 212,893 — 
U.S. treasury securities
1,030,056 5 (13,812)1,016,249 9,997 1,006,252 — 
Commercial paper
280,028 — — 280,028 — 280,028 — 
Subtotal
1,525,171 5 (16,006)1,509,170 9,997 1,499,173 — 
Total assets measured at fair value on a recurring basis
$1,668,952 $5 $(16,006)$1,652,951 $142,675 $1,499,173 $11,103 
(in thousands)Reported as:
December 31, 2021Amortized
Cost		Unrealized
Gain		Unrealized
(Loss)		Fair
Value		Cash &
Cash
Equivalents		Available-for-sale securitiesRestricted
Cash
Cash$64,542 $— $— $64,542 $64,021 $— $521 
Level I:
Money market funds
253,075 — — 253,075 246,415 — 6,660 
Level II:
Corporate bonds
202,774 16 (289)202,501 3,341 199,160 — 
U.S. treasury securities
960,278 2 (2,298)957,982 — 957,982 — 
Commercial paper
350,924 — — 350,924 — 350,924 — 
Subtotal
1,513,976 18 (2,587)1,511,407 3,341 1,508,066 — 
Total assets measured at fair value on a recurring basis
$1,831,593 $18 $(2,587)$1,829,024 $313,777 $1,508,066 $7,181 
v3.22.2
Balance Sheet Components (Tables)
 6 Months Ended
Jun. 30, 2022
Organization, Consolidation and Presentation of Financial Statements [Abstract]  
Schedule of Property and Equipment, Net Property and equipment, net consisted of the following:
June 30, 2022December 31, 2021
(in thousands)
Property and equipment:
Servers—network infrastructure$192,893 $151,462 
Construction in progress66,512 41,424 
Capitalized internal-use software76,021 63,331 
Office and computer equipment34,118 24,451 
Office furniture6,684 5,927 
Software5,262 4,032 
Leasehold improvements19,462 12,892 
Asset retirement obligation827 430 
Gross property and equipment401,779 303,949 
Less accumulated depreciation and amortization(157,219)(120,213)
Total property and equipment, net$244,560 $183,736 
Schedule of Acquired Intangible Assets, Net
Acquired intangible assets, net consisted of the following:
June 30, 2022
Gross Carrying
Amount		Accumulated
Amortization		Net Book
Value
(in thousands)
Developed technology$40,100 $10,566 $29,534 
Customer relationships11,600 363 11,237 
Trade name1,700 213 1,487 
Total acquired intangible assets, net$53,400 $11,142 $42,258 
December 31, 2021
Gross Carrying
Amount		Accumulated
Amortization		Net Book
Value
(in thousands)
Developed technology$7,000 $5,746 $1,254 
Total acquired intangible assets, net$7,000 $5,746 $1,254 
Schedule of Estimated Future Amortization Expense of Acquired Intangible Assets As of June 30, 2022, the estimated future amortization expense of acquired intangible assets was as follows:
Estimated
Amortization
(in thousands)
Year ending December 31,
2022 (remaining six months)$9,774 
202319,404 
20245,468 
20251,450 
20261,450 
Thereafter4,712 
Total$42,258 
v3.22.2
Leases (Tables)
 6 Months Ended
Jun. 30, 2022
Leases [Abstract]  
Schedule of Lease Costs The components of lease cost related to the Company's operating leases included in the condensed consolidated statements of operations were as follows:
Three Months Ended June 30,Six Months Ended June 30,
2022202120222021
(in thousands)
Operating lease cost$9,496 $5,507 $18,106 $11,004 
Sublease income— (350)— (1,096)
Total lease cost$9,496 $5,157 $18,106 $9,908 
Schedule of Lease Liability Maturities Maturities of the operating lease liabilities as of June 30, 2022 are as follows:
June 30, 2022
(in thousands)
2022 (remaining six months)$8,794 
202331,397 
202428,712 
202521,788 
202619,208 
Thereafter39,977 
Total lease payments$149,876 
Less: Imputed interest$(16,230)
Total operating lease liabilities$133,646 
v3.22.2
Debt (Tables)
 6 Months Ended
Jun. 30, 2022
Debt Disclosure [Abstract]  
Schedule of Convertible Debt The net carrying amounts of the Notes were as follows:
June 30, 2022December 31, 2021
2026 Notes2025 Notes2026 Notes2025 Notes
(in thousands)
Principal$1,293,750 $158,429 $1,293,750 $175,000 
Unamortized debt discount(1)
— — (248,179)(45,382)
Unamortized debt issuance costs(16,327)(1,985)(14,541)(1,654)
Carrying amount, net$1,277,423 $156,444 $1,031,030 $127,964 
(1)The carrying value of the equity components of the 2025 Notes and 2026 Notes as of December 31, 2021 was eliminated upon the adoption of ASU 2020-06. Refer to Note 2 to these condensed consolidated financial statements.
Schedule of Interest Expense
The following tables set forth total interest expense recognized related to the Notes:
Three Months Ended June 30,
20222021
2026 Notes2025 Notes2026 Notes2025 Notes
(in thousands)
Coupon interest expense$— $297 $— $1,078 
Amortization of debt discount(1)
— — — 8,779 
Amortization of debt issuance costs989 173 — 404 
Total$989 $470 $— $10,261 
Six Months Ended June 30,
20222021
2026 Notes2025 Notes2026 Notes2025 Notes
(in thousands)
Coupon interest expense$— $607 $— $2,156 
Amortization of debt discount(1)
— — — 17,347 
Amortization of debt issuance costs1,979 353 — 807 
Total$1,979 $960 $— $20,310 
(1)As a result of the adoption of ASU 2020-06 on January 1, 2022, there is no debt discount associated with either the 2025 Notes or the 2026 Notes. Refer to Note 2 to these condensed consolidated financial statements.
v3.22.2
Commitments and Contingencies (Tables)
 6 Months Ended
Jun. 30, 2022
Commitments and Contingencies Disclosure [Abstract]  
Schedule of Purchase Commitments Refer to the table below for long-term bandwidth and co-location commitments under non-cancelable contracts with various networks and Internet service providers as of June 30, 2022. For the lease components of co-location agreements, refer to Note 6 to these condensed consolidated financial statements.
Payments Due by Period as of June 30, 2022
Total2022 (remaining six months)2023202420252026Thereafter
(in thousands)
Non-cancelable:
Open purchase agreements(1)
$78,002 $25,433 $34,839 $7,779 $2,579 $2,274 $5,098 
Bandwidth and other co-location related commitments(2)
125,555 22,187 37,416 27,106 16,104 10,971 11,771 
Other commitments(3)
10,582 — 10,582 — — — — 
Total$214,139 $47,620 $82,837 $34,885 $18,683 $13,245 $16,869 
(1)Open purchase commitments are for the purchase of services under non-cancelable contracts. They were not recorded as liabilities on the condensed consolidated balance sheet as of June 30, 2022 as the Company had not yet received the related services.
(2)Long-term commitments for bandwidth usage and other co-location related commitments with various networks and Internet service providers. The costs for services not yet received were not recorded as liabilities on the condensed consolidated balance sheet as of June 30, 2022.
(3)Indemnity holdback consideration associated with the Area 1 and Vectrix acquisitions. See Note 13.
v3.22.2
Common Stock (Tables)
 6 Months Ended
Jun. 30, 2022
Equity [Abstract]  
Schedule of Common Stock Reserved for Future Issuance
Shares of common stock reserved for future issuance, on an as-if converted basis, are as follows:
June 30, 2022December 31, 2021
(in thousands)
2025 Notes5,503 6,078 
2026 Notes10,311 10,311 
Stock options issued and outstanding17,303 13,603 
Remaining shares available for issuance under the 2019 Plan(1)
48,392 30,761 
Outstanding and unsettled restricted stock units 7,620 7,417 
Shares available for issuance under the Employee Stock Purchase Plan11,139 8,056 
Total shares of common stock reserved100,268 76,226 
(1)    Remaining shares available for issuance under the 2019 Plan as of December 31, 2021, are net of the Co-Founder Performance Awards. See Note 10.
v3.22.2
Stock-based Compensation (Tables)
 6 Months Ended
Jun. 30, 2022
Share-based Payment Arrangement [Abstract]  
Schedule of Stock-based Awards The following table summarizes the stock options activity under the 2010 Plan and 2019 Plan for the six months ended June 30, 2022:
Stock Options Outstanding
(in thousands, except year and per share data)
Shares Subject to Options OutstandingWeighted- Average Exercise Price per OptionWeighted- Average Remaining Contractual Terms (in years)Aggregate Intrinsic Value
Balances as of December 31, 202113,603 $12.47 6.0$1,726,440 
Options granted 5,074 $102.94 
Options exercised (1,368)$4.35 $125,302 
Options canceled/forfeited/expired (6)$7.41 
Balances as of June 30, 202217,303 $96.26 4.6$490,994 
Vested and expected to vest as of June 30, 202217,266 $33.70 4.6$489,634 
Exercisable as of June 30, 202211,387 $2.62 5.3$468,167 
Schedule of Assumptions Used to Determine the Fair Value of Stock Options Granted The weighted-average assumptions used to determine the fair value of the Other Performance Awards granted were as follows:
Six Months Ended June 30,
2022
Expected term (in years)9.81
Expected volatility59.0 %
Risk-free interest rate2.8 %
Dividend yield— 
The weighted-average assumptions used to determine the fair value of the Assumed Area 1 Stock Options during the six months ended June 30, 2022 were as follows:
Six Months Ended June 30,
2022
Expected term (in years)2.3
Expected volatility66.7 %
Risk-free interest rate2.5 %
Dividend yield— 
Schedule of Restricted Stock Units Activity
RSU and restricted stock activity for the six months ended June 30, 2022 was as follows:
Restricted Stock and RSUsWeighted-Average
Grant
Date Fair Value
(in thousands, except per share data)
Unvested and outstanding as of December 31, 20217,456 $47.36 
Granted - RSUs1,918 $95.44 
Granted - Restricted stock52 $100.29 
Vested - RSUs(1,407)$33.27 
Vested - Restricted stock(656)$19.47 
Forfeited (346)$51.04 
Unvested as of June 30, 20227,017 $62.32 
Vested and not yet released— $— 
Outstanding as of June 30, 20227,017 $62.32 
Schedule of Fair Value Assumptions for Employee Stock Purchase Plan The weighted-average assumptions used to determine the fair value of the ESPP during the periods presented were as follows:
Six months ended June 30,
20222021
Expected term (in years)0.50.5
Risk-free interest rate1.2 %0.1 %
Expected volatility88.5 %62.8 %
Dividend yield— %— %
Schedule of Stock-based Compensation Expense
The following table sets forth the total stock-based compensation expense included in the Company’s condensed consolidated statements of operations:
Three Months Ended June 30,Six Months Ended June 30,
2022202120222021
(in thousands)
Cost of revenue$1,888 $579 $2,966 $993 
Sales and marketing12,216 6,608 21,135 12,253 
Research and development26,659 9,509 45,488 17,873 
General and administrative14,052 3,855 19,191 7,470 
Total stock-based compensation expense$54,815 $20,551 $88,780 $38,589 
v3.22.2
Net Loss per Share Attributable to Common Stockholders (Tables)
 6 Months Ended
Jun. 30, 2022
Earnings Per Share [Abstract]  
Schedule of Computation of Basic and Diluted Net Loss per Share Attributable to Common Stockholders The following table sets forth the computation of basic and diluted net loss per share attributable to common stockholders:
Three Months Ended June 30,Six Months Ended June 30,
2022202120222021
Class AClass BClass AClass BClass AClass BClass AClass B
(in thousands, except per share data)
Net loss attributable to common stockholders
$(55,081)$(8,456)$(29,774)$(5,736)$(90,864)$(14,054)$(62,079)$(13,394)
Weighted-average shares used in computing net loss per share attributable to common stockholders, basic and diluted
281,915 43,282 258,471 49,792 281,097 43,477 252,614 54,501 
Net loss per share attributable to common stockholders, basic and diluted
$(0.20)$(0.20)$(0.12)$(0.12)$(0.32)$(0.32)$(0.25)$(0.25)
Schedule of Potential Shares of Common Stock Excluded from Computation of Basic and Diluted Net Loss per Share Attributable to Common Stockholders The potential shares of common stock that were excluded from the computation of diluted net loss per share attributable to common stockholders for the periods presented because including them would have been antidilutive are as follows:
June 30,
20222021
(in thousands)
2025 Notes4,233 15,363 
2026 Notes6,762 — 
Shares subject to repurchase1,465 2,933 
Unexercised stock options17,303 15,812 
Unvested restricted stock and RSUs7,620 8,113 
Shares issuable pursuant to the ESPP187 141 
Total37,570 42,362 
v3.22.2
Business Combinations (Tables)
 6 Months Ended
Jun. 30, 2022
Business Combination and Asset Acquisition [Abstract]  
Schedule of Assets Acquired and Liabilities Assumed The preliminary amounts of assets acquired and liabilities assumed on the acquisition date are summarized as follows (in thousands):
Accounts receivable, net$1,634 
Prepaids and other current assets$953 
Acquired Intangible Assets$43,300 
Goodwill$120,830 
Total assets acquired$166,717 
Accounts Payable$(254)
Accrued expense and other current liabilities$(1,895)
Deferred revenue$(5,736)
Deferred revenue, noncurrent$(1,213)
Other noncurrent liabilities$(1,053)
Total purchase price$156,566 
The fair values of assets acquired and liabilities assumed on the acquisition date are summarized as follows (in thousands):
Developed technology$3,100 
Goodwill4,951 
Total assets acquired8,051 
Accounts Payable(20)
Other noncurrent liabilities(419)
Total purchase price$7,612 
The fair values of assets acquired and liabilities assumed on the acquisition date are summarized as follows (in thousands):
Developed technology$1,400 
Goodwill6,176 
Total assets acquired7,576 
Accrued compensation(82)
Other noncurrent liabilities(322)
Total purchase price$7,172 
The fair values of assets acquired and liabilities assumed on the acquisition date are summarized as follows (in thousands):
Prepaid expenses and other current assets$6 
Developed technology5,600 
Goodwill13,084 
Total assets acquired18,690 
Accrued expenses and other current liabilities(208)
Other noncurrent liabilities(782)
Total purchase price$17,700 
v3.22.2
Segment and Geographic Information (Tables)
 6 Months Ended
Jun. 30, 2022
Segment Reporting [Abstract]  
Schedule of Property and Equipment, Net by Geographic Area The Company’s property and equipment, net, by geographic area were as follows:
 June 30, 2022December 31, 2021
 
 (in thousands)
United States$153,899 $120,357 
Rest of the world90,661 63,379 
Total property and equipment, net$244,560 $183,736 
v3.22.2
Summary of Significant Accounting Policies (Details) - USD ($)
$ in Thousands
Jun. 30, 2022
Jan. 01, 2022
Dec. 31, 2021
Aug. 31, 2021
May 31, 2020
New Accounting Pronouncements or Change in Accounting Principle [Line Items]          
Current portion of convertible senior notes, net $ 0   $ 12,117    
Decrease in additional paid-in capital (1,347,671)   (1,494,512)    
Accumulated deficit $ (751,428)   $ (680,829)    
2025 Notes | Convertible Debt          
New Accounting Pronouncements or Change in Accounting Principle [Line Items]          
Interest rate 0.75%       0.75%
2026 Notes | Convertible Debt          
New Accounting Pronouncements or Change in Accounting Principle [Line Items]          
Interest rate 0.00%     0.00%  
Cumulative Effect, Period of Adoption, Adjustment          
New Accounting Pronouncements or Change in Accounting Principle [Line Items]          
Accumulated deficit   $ 34,300      
Accounting Standards Update 2020-06          
New Accounting Pronouncements or Change in Accounting Principle [Line Items]          
Convertible debt   288,900      
Accounting Standards Update 2020-06 | Cumulative Effect, Period of Adoption, Adjustment          
New Accounting Pronouncements or Change in Accounting Principle [Line Items]          
Current portion of convertible senior notes, net   4,400      
Decrease in additional paid-in capital   $ 318,800      
v3.22.2
Revenue - Disaggregation of Revenue (Details) - USD ($)
$ in Thousands
 3 Months Ended 6 Months Ended
Jun. 30, 2022
Jun. 30, 2021
Jun. 30, 2022
Jun. 30, 2021
Disaggregation of Revenue [Line Items]        
Revenue $ 234,517 $ 152,428 $ 446,684 $ 290,483
Geographic Concentration Risk | Revenue        
Disaggregation of Revenue [Line Items]        
Percentage of Revenue 100.00% 100.00% 100.00% 100.00%
Sales Channel Concentration Risk | Revenue        
Disaggregation of Revenue [Line Items]        
Percentage of Revenue 100.00% 100.00% 100.00% 100.00%
Channel partners        
Disaggregation of Revenue [Line Items]        
Revenue $ 28,933 $ 16,872 $ 53,289 $ 32,234
Channel partners | Sales Channel Concentration Risk | Revenue        
Disaggregation of Revenue [Line Items]        
Percentage of Revenue 12.00% 11.00% 12.00% 11.00%
Direct customers        
Disaggregation of Revenue [Line Items]        
Revenue $ 205,584 $ 135,556 $ 393,395 $ 258,249
Direct customers | Sales Channel Concentration Risk | Revenue        
Disaggregation of Revenue [Line Items]        
Percentage of Revenue 88.00% 89.00% 88.00% 89.00%
United States        
Disaggregation of Revenue [Line Items]        
Revenue $ 124,259 $ 79,944 $ 235,609 $ 151,166
United States | Geographic Concentration Risk | Revenue        
Disaggregation of Revenue [Line Items]        
Percentage of Revenue 53.00% 52.00% 53.00% 52.00%
Europe, Middle East, and Africa        
Disaggregation of Revenue [Line Items]        
Revenue $ 61,147 $ 39,696 $ 116,939 $ 75,228
Europe, Middle East, and Africa | Geographic Concentration Risk | Revenue        
Disaggregation of Revenue [Line Items]        
Percentage of Revenue 26.00% 26.00% 26.00% 26.00%
Asia Pacific        
Disaggregation of Revenue [Line Items]        
Revenue $ 32,755 $ 22,841 $ 62,680 $ 45,720
Asia Pacific | Geographic Concentration Risk | Revenue        
Disaggregation of Revenue [Line Items]        
Percentage of Revenue 14.00% 15.00% 14.00% 16.00%
Other        
Disaggregation of Revenue [Line Items]        
Revenue $ 16,356 $ 9,947 $ 31,456 $ 18,369
Other | Geographic Concentration Risk | Revenue        
Disaggregation of Revenue [Line Items]        
Percentage of Revenue 7.00% 7.00% 7.00% 6.00%
v3.22.2
Revenue - Narratives (Details) - USD ($)
 6 Months Ended
Jun. 30, 2022
Jun. 30, 2021
Revenue from Contract with Customer [Abstract]    
Revenue recognized $ 92,800,000 $ 45,600,000
Impairment loss $ 0 $ 0
v3.22.2
Revenue - Deferred Contract Acquisition Costs (Details) - USD ($)
$ in Thousands
 3 Months Ended 6 Months Ended
Jun. 30, 2022
Jun. 30, 2021
Jun. 30, 2022
Jun. 30, 2021
Capitalized Contract Cost [Roll Forward]        
Beginning balance $ 76,266 $ 48,982 $ 70,320 $ 44,176
Capitalization of contract acquisition costs 14,996 14,460 30,604 25,326
Amortization of deferred contract acquisition costs (10,556) (6,855) (20,218) (12,915)
Ending balance $ 80,706 $ 56,587 $ 80,706 $ 56,587
v3.22.2
Revenue - Remaining Performance Obligations (Details)
$ in Millions
Jun. 30, 2022
USD ($)
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]  
Remaining performance obligation, amount $ 760.4
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2022-07-01  
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]  
Remaining performance obligation, percent 76.00%
Remaining performance obligation, expected timing of satisfaction 12 months
v3.22.2
Fair Value Measurements - Schedule of Cash and Available-for-sale Debt Securities' Amortized Cost, Unrealized Gains (Losses) and Fair Value by Significant Investment Category (Details) - USD ($)
Jun. 30, 2022
Dec. 31, 2021
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]    
Amortized Cost $ 142,675,000 $ 313,777,000
Amortized Cost 1,668,952,000 1,831,593,000
Unrealized Gain 5,000 18,000
Unrealized (Loss) (16,006,000) (2,587,000)
Fair Value 1,652,951,000 1,829,024,000
Cash    
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]    
Amortized Cost 47,815,000 64,542,000
Unrealized Gain 0 0
Unrealized (Loss) 0 0
Fair Value 47,815,000 64,542,000
Money market funds    
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]    
Unrealized Gain 0 0
Unrealized (Loss) 0 0
Level I | Money market funds    
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]    
Amortized Cost 95,966,000 253,075,000
Unrealized Gain 0 0
Unrealized (Loss) 0 0
Fair Value 95,966,000 253,075,000
Level II    
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]    
Amortized Cost 1,525,171,000 1,513,976,000
Unrealized Gain 5,000 18,000
Unrealized (Loss) (16,006,000) (2,587,000)
Fair Value 1,509,170,000 1,511,407,000
Level II | Corporate bonds    
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]    
Amortized Cost 215,087,000 202,774,000
Unrealized Gain 0 16,000
Unrealized (Loss) (2,194,000) (289,000)
Fair Value 212,893,000 202,501,000
Level II | U.S. treasury securities    
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]    
Amortized Cost 1,030,056,000 960,278,000
Unrealized Gain 5,000 2,000
Unrealized (Loss) (13,812,000) (2,298,000)
Fair Value 1,016,249,000 957,982,000
Level II | Commercial paper    
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]    
Amortized Cost 280,028,000 350,924,000
Unrealized Gain 0 0
Unrealized (Loss) 0 0
Fair Value 280,028,000 350,924,000
Cash & Cash Equivalents | Fair Value, Recurring    
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]    
Total assets measured at fair value on a recurring basis 142,675,000 313,777,000
Cash & Cash Equivalents | Fair Value, Recurring | Cash    
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]    
Fair Value 38,458,000 64,021,000
Cash & Cash Equivalents | Fair Value, Recurring | Level I | Money market funds    
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]    
Fair Value 94,220,000 246,415,000
Cash & Cash Equivalents | Fair Value, Recurring | Level II    
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]    
Fair Value 9,997,000 3,341,000
Cash & Cash Equivalents | Fair Value, Recurring | Level II | Corporate bonds    
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]    
Fair Value 0 3,341,000
Cash & Cash Equivalents | Fair Value, Recurring | Level II | U.S. treasury securities    
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]    
Fair Value 9,997,000 0
Cash & Cash Equivalents | Fair Value, Recurring | Level II | Commercial paper    
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]    
Fair Value 0 0
Available-for-sale securities | Fair Value, Recurring    
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]    
Fair Value 1,499,173,000 1,508,066,000
Available-for-sale securities | Fair Value, Recurring | Cash    
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]    
Fair Value 0 0
Available-for-sale securities | Fair Value, Recurring | Level I | Money market funds    
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]    
Fair Value 0 0
Available-for-sale securities | Fair Value, Recurring | Level II    
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]    
Fair Value 1,499,173,000 1,508,066,000
Available-for-sale securities | Fair Value, Recurring | Level II | Corporate bonds    
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]    
Fair Value 212,893,000 199,160,000
Available-for-sale securities | Fair Value, Recurring | Level II | U.S. treasury securities    
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]    
Fair Value 1,006,252,000 957,982,000
Available-for-sale securities | Fair Value, Recurring | Level II | Commercial paper    
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]    
Fair Value 280,028,000 350,924,000
Restricted Cash (Current and Non-Current) | Fair Value, Recurring    
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]    
Total assets measured at fair value on a recurring basis 11,103,000 7,181,000
Restricted Cash (Current and Non-Current) | Fair Value, Recurring | Cash    
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]    
Fair Value 9,357,000 521,000
Restricted Cash (Current and Non-Current) | Fair Value, Recurring | Level I | Money market funds    
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]    
Fair Value 1,746,000 6,660,000
Restricted Cash (Current and Non-Current) | Fair Value, Recurring | Level II    
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]    
Fair Value 0 0
Restricted Cash (Current and Non-Current) | Fair Value, Recurring | Level II | Corporate bonds    
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]    
Fair Value 0 0
Restricted Cash (Current and Non-Current) | Fair Value, Recurring | Level II | U.S. treasury securities    
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]    
Fair Value 0 0
Restricted Cash (Current and Non-Current) | Fair Value, Recurring | Level II | Commercial paper    
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]    
Fair Value $ 0 $ 0
v3.22.2
Fair Value Measurements - Narratives (Details) - USD ($)
Jun. 30, 2022
Jan. 14, 2022
Dec. 31, 2021
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]      
Restricted cash $ 11,100,000    
Amortized cost of available-for-sale investments with maturities less than one year 1,294,000,000   $ 966,300,000
Amortized cost of available-for-sale investments with maturities greater than one year 221,100,000   544,400,000
Net unrealized (loss) gains on investments, net of tax (16,100,000)   2,700,000
Vectrix, Inc.      
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]      
Consideration held back 10,600,000 $ 1,300,000  
Convertible Debt      
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]      
Debt instrument, fair value 221,400,000    
Convertible Debt | 2026 Notes      
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]      
Debt instrument, fair value 1,012,000,000    
Money market funds      
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]      
Unrealized gain 0   0
Unrealized loss $ 0   $ 0
v3.22.2
Balance Sheet Components - Accounts Receivable, Net (Details) - USD ($)
$ in Millions
 3 Months Ended 6 Months Ended
Jun. 30, 2022
Jun. 30, 2021
Jun. 30, 2022
Jun. 30, 2021
Dec. 31, 2021
Organization, Consolidation and Presentation of Financial Statements [Abstract]          
Allowance for doubtful accounts $ 2.8   $ 2.8   $ 2.6
Provision for bad debt expense 1.0 $ 0.5 2.0 $ 2.0  
Write-off of uncollectible accounts receivable $ 1.3 $ 0.2 $ 1.8 $ 1.2  
v3.22.2
Balance Sheet Components - Property and Equipment, Net (Details) - USD ($)
$ in Thousands
 3 Months Ended 6 Months Ended
Jun. 30, 2022
Jun. 30, 2021
Jun. 30, 2022
Jun. 30, 2021
Dec. 31, 2021
Property, Plant and Equipment [Line Items]          
Gross property and equipment $ 401,779   $ 401,779   $ 303,949
Less accumulated depreciation and amortization (157,219)   (157,219)   (120,213)
Total property and equipment, net 244,560   244,560   183,736
Depreciation and amortization expense 20,000 $ 15,100 38,900 $ 29,100  
Servers—network infrastructure          
Property, Plant and Equipment [Line Items]          
Gross property and equipment 192,893   192,893   151,462
Construction in progress          
Property, Plant and Equipment [Line Items]          
Gross property and equipment 66,512   66,512   41,424
Capitalized internal-use software          
Property, Plant and Equipment [Line Items]          
Gross property and equipment 76,021   76,021   63,331
Office and computer equipment          
Property, Plant and Equipment [Line Items]          
Gross property and equipment 34,118   34,118   24,451
Office furniture          
Property, Plant and Equipment [Line Items]          
Gross property and equipment 6,684   6,684   5,927
Software          
Property, Plant and Equipment [Line Items]          
Gross property and equipment 5,262   5,262   4,032
Depreciation and amortization expense 4,800 $ 4,600 9,600 $ 8,800  
Leasehold improvements          
Property, Plant and Equipment [Line Items]          
Gross property and equipment 19,462   19,462   12,892
Asset retirement obligation          
Property, Plant and Equipment [Line Items]          
Gross property and equipment $ 827   $ 827   $ 430
v3.22.2
Balance Sheet Components - Goodwill (Details) - USD ($)
$ in Thousands
 6 Months Ended
Jun. 30, 2022
Jun. 30, 2021
Jan. 14, 2022
Dec. 31, 2021
Organization, Consolidation and Presentation of Financial Statements [Abstract]        
Goodwill $ 149,122     $ 23,530
Goodwill, impairment loss 0 $ 0    
Vectrix, Inc.        
Organization, Consolidation and Presentation of Financial Statements [Abstract]        
Goodwill     $ 4,951  
Business Acquisition [Line Items]        
Goodwill acquired during period 5,000      
Area 1 Security, Inc        
Business Acquisition [Line Items]        
Goodwill acquired during period $ 120,800      
v3.22.2
Balance Sheet Components - Acquired Intangible Assets, Net (Details) - USD ($)
$ in Thousands
 3 Months Ended 6 Months Ended
Jun. 30, 2022
Jun. 30, 2021
Jun. 30, 2022
Jun. 30, 2021
Dec. 31, 2021
Finite-Lived Intangible Assets [Line Items]          
Gross Carrying Amount $ 53,400   $ 53,400   $ 7,000
Accumulated Amortization 11,142   11,142   5,746
Net Book Value 42,258   42,258   1,254
Amortization of acquired intangible assets 4,900 $ 700 5,400 $ 1,400  
Developed technology          
Finite-Lived Intangible Assets [Line Items]          
Gross Carrying Amount 40,100   40,100   7,000
Accumulated Amortization 10,566   10,566   5,746
Net Book Value 29,534   $ 29,534   $ 1,254
Estimated useful life of acquired developed technology     2 years    
Estimated fair value of intangible assets     $ 30,000    
Customer relationships          
Finite-Lived Intangible Assets [Line Items]          
Gross Carrying Amount 11,600   11,600    
Accumulated Amortization 363   363    
Net Book Value 11,237   $ 11,237    
Estimated useful life of acquired developed technology     8 years    
Estimated fair value of intangible assets     $ 11,600    
Trade name          
Finite-Lived Intangible Assets [Line Items]          
Gross Carrying Amount 1,700   1,700    
Accumulated Amortization 213   213    
Net Book Value $ 1,487   $ 1,487    
Estimated useful life of acquired developed technology     2 years    
Estimated fair value of intangible assets     $ 1,700    
v3.22.2
Balance Sheet Components - Estimated Future Amortization Expense of Acquired Intangible Assets, Net (Details) - USD ($)
$ in Thousands
Jun. 30, 2022
Dec. 31, 2021
Organization, Consolidation and Presentation of Financial Statements [Abstract]    
2022 (remaining six months) $ 9,774  
2023 19,404  
2024 5,468  
2025 1,450  
2026 1,450  
Thereafter 4,712  
Net Book Value $ 42,258 $ 1,254
v3.22.2
Leases - Narratives (Details)
$ in Thousands
 3 Months Ended 6 Months Ended
Jun. 30, 2022
USD ($)
Jun. 30, 2021
USD ($)
Jun. 30, 2022
USD ($)
office_space
Jun. 30, 2021
USD ($)
Lessee, Lease, Description [Line Items]        
Remaining lease term (up to) 9 years   9 years  
Number of leased office space | office_space     1  
Sublease income $ 0 $ 350 $ 0 $ 1,096
Lease not yet commenced, undiscounted amount $ 46,600   $ 46,600  
Lease not yet commenced, term of contract 4 years 8 months 12 days   4 years 8 months 12 days  
Weighted average remaining lease term 5 years 8 months 12 days   5 years 8 months 12 days  
Operating lease, weighted average discount rate, percent 3.50%   3.50%  
Co-location Asset Lease        
Lessee, Lease, Description [Line Items]        
Remaining lease term (up to) 6 years 6 months   6 years 6 months  
v3.22.2
Leases - Schedule of Lease Costs (Details) - USD ($)
$ in Thousands
 3 Months Ended 6 Months Ended
Jun. 30, 2022
Jun. 30, 2021
Jun. 30, 2022
Jun. 30, 2021
Leases [Abstract]        
Operating lease cost $ 9,496 $ 5,507 $ 18,106 $ 11,004
Sublease income 0 (350) 0 (1,096)
Total lease cost $ 9,496 $ 5,157 $ 18,106 $ 9,908
v3.22.2
Leases - Lease Liability Maturities (Details)
$ in Thousands
Jun. 30, 2022
USD ($)
Leases [Abstract]  
2022 (remaining six months) $ 8,794
2023 31,397
2024 28,712
2025 21,788
2026 19,208
Thereafter 39,977
Total lease payments 149,876
Less: Imputed interest (16,230)
Total operating lease liabilities $ 133,646
v3.22.2
Debt - 2026 Convertible Senior Notes (Details)
 1 Months Ended 6 Months Ended
Jun. 30, 2022
USD ($)
$ / shares
Aug. 31, 2021
USD ($)
day
$ / shares
Aug. 31, 2021
USD ($)
day
$ / shares
Jun. 30, 2022
$ / shares
Debt Instrument [Line Items]        
Converted value in excess of principal $ 26,800,000      
Class A common stock        
Debt Instrument [Line Items]        
Closing share price (in dollars per share) | $ / shares $ 43.75     $ 43.75
2026 Notes | Convertible Debt        
Debt Instrument [Line Items]        
Debt principal amount   $ 1,293,800,000 $ 1,293,800,000  
Face amount, additional principal issuable   $ 168,800,000 168,800,000  
Gross proceeds from issuance of convertible senior notes     $ 1,274,000,000  
Interest rate 0.00% 0.00% 0.00% 0.00%
Convertible debt, conversion ratio     0.0052263  
Conversion price (in dollars per share) | $ / shares   $ 191.34 $ 191.34  
Redemption price, percentage   100.00% 100.00%  
Minimum redeemable face amount   $ 100,000,000 $ 100,000,000  
Remaining life, convertible debt       50 months
2026 Notes | Convertible Debt | Last Reported Stock Price At Lease 130% Of The Debt Conversion Price        
Debt Instrument [Line Items]        
Conversion requirement, threshold trading days (at least) | day   20    
Conversion requirement, threshold consecutive trading days | day   30 30  
Conversion requirement, threshold percentage of stock price trigger (at least)   130.00%    
2026 Notes | Convertible Debt | Principal Amount Less Than 98% of the Product        
Debt Instrument [Line Items]        
Conversion requirement, threshold trading days (at least) | day   5    
Conversion requirement, threshold consecutive trading days | day   5    
Conversion requirement, threshold percentage of stock price trigger (at least)   98.00%    
v3.22.2
Debt - 2026 Capped Call Transactions (Details) - 2026 Notes - Convertible Debt - USD ($)
$ / shares in Units, shares in Millions, $ in Millions
 1 Months Ended
Aug. 30, 2021
Aug. 31, 2021
Debt Instrument [Line Items]    
Purchases of capped calls related to convertible senior notes   $ 86.3
Class A common stock    
Debt Instrument [Line Items]    
Shares covered by capped calls (in shares) 6.8  
Capped Calls | Long | Class A common stock    
Debt Instrument [Line Items]    
Strike price (in dollars per share) $ 191.34  
Capped call, initial cap price (in dollars per share) $ 250.94  
v3.22.2
Debt - 2025 Convertible Senior Notes (Details) - 2025 Notes
 1 Months Ended 6 Months Ended
Aug. 13, 2021
USD ($)
shares
May 31, 2020
USD ($)
day
$ / shares
Jun. 30, 2022
USD ($)
shares
Dec. 31, 2021
USD ($)
Debt Instrument [Line Items]        
Gross proceeds from issuance of convertible senior notes   $ 562,500,000    
Conversion price (in dollars per share) | $ / shares   $ 37.43    
Last Reported Stock Price At Lease 130% Of The Debt Conversion Price        
Debt Instrument [Line Items]        
Conversion requirement, threshold trading days (at least) | day   20    
Conversion requirement, threshold consecutive trading days | day   30    
Conversion requirement, threshold percentage of stock price trigger (at least)   130.00%    
Principal Amount Less Than 98% of the Product        
Debt Instrument [Line Items]        
Conversion requirement, threshold trading days (at least) | day   5    
Conversion requirement, threshold consecutive trading days | day   5    
Conversion requirement, threshold percentage of stock price trigger (at least)   98.00%    
Convertible Debt        
Debt Instrument [Line Items]        
Debt principal amount   $ 575,000,000    
Face amount, additional principal issuable   $ 75,000,000    
Principal     $ 158,429,000 $ 175,000,000
Interest rate   0.75% 0.75%  
Convertible debt, conversion ratio   0.0267187    
Redemption price, percentage   100.00%    
Issuance of common stock for exchange of convertible senior notes $ 1,321,000,000      
Convertible Debt | Class A common stock        
Debt Instrument [Line Items]        
Number of shares issued upon debt conversion | shares 7,600,000   298,909,000,000  
Convertible Debt | Certain Holders Conversion        
Debt Instrument [Line Items]        
Issuance of common stock for exchange of convertible senior notes     $ 16,600,000  
v3.22.2
Debt - 2025 Notes Exchange (Details) - USD ($)
$ / shares in Units, $ in Thousands
 6 Months Ended
Jun. 30, 2022
Aug. 13, 2021
Jun. 30, 2022
Dec. 31, 2021
Debt Instrument [Line Items]        
Converted value in excess of principal $ 26,800      
Class A common stock        
Debt Instrument [Line Items]        
Closing share price (in dollars per share) $ 43.75   $ 43.75  
Convertible Debt        
Debt Instrument [Line Items]        
Debt instrument, fair value $ 221,400   $ 221,400  
2025 Notes | Convertible Debt        
Debt Instrument [Line Items]        
Repurchased face amount   $ 400,000    
Repayments of convertible debt   400,700    
Issuance of common stock for exchange of convertible senior notes   1,321,000    
Loss on extinguishment of debt   72,200    
Debt instrument, fair value   355,300    
Carrying amount, net $ 156,444 $ 283,100 $ 156,444 $ 127,964
Effective interest rate   4.08%    
Equity component of convertible debt   $ 965,700    
Remaining life, convertible debt     35 months  
2025 Notes | Convertible Debt | Class A common stock        
Debt Instrument [Line Items]        
Number of shares issued upon debt conversion   7,600,000 298,909,000,000  
v3.22.2
Debt - 2025 Capped Call Transactions (Details) - 2025 Notes - Convertible Debt - USD ($)
$ / shares in Units, shares in Millions, $ in Millions
Aug. 13, 2021
May 31, 2020
Debt Instrument [Line Items]    
Purchases of capped calls related to convertible senior notes $ 67.3  
Capped Calls | Long | Class A common stock    
Debt Instrument [Line Items]    
Strike price (in dollars per share)   $ 37.43
Capped call, initial cap price (in dollars per share)   $ 57.58
Shares covered by capped calls (in shares)   15.4
v3.22.2
Debt - Schedule of Net Carrying Amount of Notes (Details) - Convertible Debt - USD ($)
$ in Thousands
Jun. 30, 2022
Dec. 31, 2021
Aug. 13, 2021
2026 Notes      
Debt Instrument [Line Items]      
Principal $ 1,293,750 $ 1,293,750  
Unamortized debt discount 0 (248,179)  
Unamortized debt issuance costs (16,327) (14,541)  
Carrying amount, net 1,277,423 1,031,030  
2025 Notes      
Debt Instrument [Line Items]      
Principal 158,429 175,000  
Unamortized debt discount 0 (45,382)  
Unamortized debt issuance costs (1,985) (1,654)  
Carrying amount, net $ 156,444 $ 127,964 $ 283,100
v3.22.2
Debt - Schedule of Interest Components (Details) - Convertible Debt - USD ($)
$ in Thousands
 3 Months Ended 6 Months Ended
Jun. 30, 2022
Jun. 30, 2021
Jun. 30, 2022
Jun. 30, 2021
2026 Notes        
Debt Instrument [Line Items]        
Coupon interest expense $ 0 $ 0 $ 0 $ 0
Amortization of debt discount 0 0 0 0
Amortization of debt issuance costs 989 0 1,979 0
Total 989 0 1,979 0
2025 Notes        
Debt Instrument [Line Items]        
Coupon interest expense 297 1,078 607 2,156
Amortization of debt discount 0 8,779 0 17,347
Amortization of debt issuance costs 173 404 353 807
Total $ 470 $ 10,261 $ 960 $ 20,310
v3.22.2
Commitments and Contingencies - Narratives (Details) - USD ($)
$ in Millions
 3 Months Ended 6 Months Ended
Jun. 30, 2022
Jun. 30, 2021
Jun. 30, 2022
Jun. 30, 2021
Commitments and Contingencies Disclosure [Abstract]        
Cost and expenses related to bandwidth and other co-location commitments $ 27.9 $ 18.6 $ 53.7 $ 35.0
v3.22.2
Commitments and Contingencies - Schedule of Purchase Commitments (Details)
$ in Thousands
Jun. 30, 2022
USD ($)
Open purchase agreements  
Total $ 78,002
2022 (remaining six months) 25,433
2023 34,839
2024 7,779
2025 2,579
2026 2,274
Thereafter 5,098
Bandwidth and other co-location related commitments  
Total 125,555
2022 (remaining six months) 22,187
2023 37,416
2024 27,106
2025 16,104
2026 10,971
Thereafter 11,771
Other commitments  
Total 10,582
2022 (remaining six months) 0
2023 10,582
2024 0
2025 0
2026 0
Thereafter 0
Total  
Total 214,139
2022 (remaining six months) 47,620
2023 82,837
2024 34,885
2025 18,683
2026 13,245
Thereafter $ 16,869
v3.22.2
Common Stock - Narratives (Details)
Jun. 30, 2022
vote
$ / shares
shares
Dec. 31, 2021
$ / shares
shares
Class A common stock    
Class of Stock [Line Items]    
Common stock, number of votes per share | vote 1  
Common stock, shares authorized (in shares) 2,250,000,000 2,250,000,000
Common stock, par value (in dollars per share) | $ / shares $ 0.001 $ 0.001
Common stock, shares issued (in shares) 282,774,214 277,707,635
Common stock, shares outstanding (in shares) 282,774,214 277,707,635
Class B common stock    
Class of Stock [Line Items]    
Common stock, number of votes per share | vote 10  
Common stock, shares authorized (in shares) 315,000,000 315,000,000
Common stock, par value (in dollars per share) | $ / shares $ 0.001 $ 0.001
Common stock, shares issued (in shares) 44,623,332 45,904,227
Common stock, shares outstanding (in shares) 44,623,332 45,904,227
v3.22.2
Common Stock - Schedule of Common Stock Reserved for Future Issuance (Details) - shares
shares in Thousands
Jun. 30, 2022
Dec. 31, 2021
Class of Stock [Line Items]    
Shares of common stock reserved (in shares) 100,268 76,226
Remaining shares available for issuance under the 2019 Plan(1)    
Class of Stock [Line Items]    
Shares of common stock reserved (in shares) 48,392 30,761
Stock options issued and outstanding    
Class of Stock [Line Items]    
Shares of common stock reserved (in shares) 17,303 13,603
Outstanding and unsettled restricted stock units    
Class of Stock [Line Items]    
Shares of common stock reserved (in shares) 7,620 7,417
Shares available for issuance under the Employee Stock Purchase Plan    
Class of Stock [Line Items]    
Shares of common stock reserved (in shares) 11,139 8,056
Convertible Debt | 2025 Notes    
Class of Stock [Line Items]    
Shares of common stock reserved (in shares) 5,503 6,078
Convertible Debt | 2026 Notes    
Class of Stock [Line Items]    
Shares of common stock reserved (in shares) 10,311 10,311
v3.22.2
Stock-based Compensation - Narrative (Details) - USD ($)
 1 Months Ended 3 Months Ended 6 Months Ended 12 Months Ended
Apr. 01, 2022
Feb. 14, 2022
Jan. 14, 2022
Oct. 15, 2021
Dec. 31, 2021
Jan. 31, 2020
Sep. 30, 2019
Jun. 30, 2022
Jun. 30, 2021
Jun. 30, 2022
Jun. 30, 2021
Dec. 31, 2021
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]                        
Stock options exercisable, weighted-average exercise price (in dollars per share)               $ 2.62   $ 2.62    
Stock-based compensation expense               $ 54,815,000 $ 20,551,000 $ 88,780,000 $ 38,589,000  
S2 Systems Corporation                        
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]                        
Stock-based compensation expense                 1,400,000   2,800,000  
Issuance of common stock in connection with acquisition (in shares)           948,000            
Area 1 Security, Inc                        
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]                        
Options vesting during period (in shares)               0        
2019 Equity Incentive Plan | Chief Executive Officer                        
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]                        
Requisite service period of awards         10 years              
2019 Equity Incentive Plan | Chief Operating Officer                        
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]                        
Requisite service period of awards         10 years              
2019 Equity Incentive Plan | President                        
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]                        
Requisite service period of awards         10 years              
2019 Equity Incentive Plan | Class A common stock                        
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]                        
Number of shares authorized for issuance (in shares)               66,661,953   66,661,953    
Number of new shares authorized for issuance (in shares)               29,335,000   29,335,000    
Number of additional shares authorized for issuance (in shares)               37,326,953   37,326,953    
Number of shares available for issuance (in shares)         3,960,000             3,960,000
Stock options exercisable, weighted-average exercise price (in dollars per share)         $ 136.81             $ 136.81
2019 Equity Incentive Plan | Class A and Class B Common Stock                        
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]                        
Potential increase in number of shares authorized, as a percentage of total common stock outstanding                   5.00%    
2010 Plan And 2019 Plan                        
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]                        
Total grant date fair value for vested options                   $ 5,100,000 8,700,000  
Stock options issued and outstanding                        
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]                        
Vesting period                   4 years    
Expiration period                   10 years    
Options unrecognized stock-based compensation expense               $ 13,300,000   $ 13,300,000    
Weighted-average remaining vesting period                   2 years 9 months 18 days    
Weighted-average grant date fair value for options granted (in dollars per share)                   $ 93.32    
Stock-based compensation expense                   $ 1,200,000    
Liability for early exercise of stock options         $ 4,700,000     $ 3,100,000   $ 3,100,000   $ 4,700,000
Number of unvested shares expected to be repurchased (in shares)                   1,465,281   2,128,660
Stock options issued and outstanding | Area 1 Security, Inc                        
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]                        
Vesting period 3 years                      
Stock-based compensation expense $ 1,400,000                      
Stock options issued and outstanding | Chief Executive Officer                        
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]                        
Requisite service period of awards         10 years              
Stock options issued and outstanding | Chief Operating Officer                        
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]                        
Requisite service period of awards         10 years              
Stock options issued and outstanding | President                        
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]                        
Requisite service period of awards         10 years              
Stock options issued and outstanding | Class A common stock | Area 1 Security, Inc                        
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]                        
Number of shares available for issuance (in shares) 156,770                      
Stock options issued and outstanding | 2010 Equity Incentive Plan | Common stock                        
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]                        
Exercise price of common stock, percentage of fair market value                   100.00%    
Stock options issued and outstanding | 2010 Equity Incentive Plan | Class A common stock                        
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]                        
Exercise stock option awards (in shares)               1   1    
Stock options issued and outstanding | 2010 Equity Incentive Plan | Class B common stock                        
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]                        
Exercise stock option awards (in shares)               1   1    
Stock options issued and outstanding | 2019 Equity Incentive Plan | Class A common stock                        
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]                        
Exercise stock option awards (in shares)               1   1    
Stock options issued and outstanding | 2010 Plan And 2019 Plan                        
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]                        
Unvested options exercisable (in shares)         6,229,524     4,400,733   4,400,733   6,229,524
Options unrecognized stock-based compensation expense         $ 20,100,000     $ 305,100,000   $ 305,100,000   $ 20,100,000
Weighted-average remaining vesting period                   4 years 8 months 12 days   2 years 3 months 18 days
Restricted Stock Units (RSUs)                        
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]                        
Vesting period                   4 years    
Weighted-average remaining vesting period                   3 years 2 months 12 days   3 years 6 months
Stock-based compensation expense               32,600,000 16,500,000 $ 61,900,000 30,100,000  
Unrecognized stock-based compensation expense         176,200,000     395,500,000   $ 395,500,000   $ 176,200,000
Number of shares vested during the period (in shares)                   1,407,000    
Total grant date fair value for vested shares                   $ 46,800,000 $ 25,200,000  
Restricted Stock                        
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]                        
Number of shares vested during the period (in shares)                   656,000    
Restricted Stock | Vectrix, Inc.                        
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]                        
Vesting period     4 years                  
Stock-based compensation expense                   $ 0    
Unrecognized stock-based compensation expense               $ 4,600,000   4,600,000    
Number of shares vested during the period (in shares)               0        
Issuance of common stock in connection with acquisition (in shares)     71,000                  
Restricted Stock | Vectrix, Inc. | Subject to vesting                        
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]                        
Issuance of common stock in connection with acquisition (in shares)     52,000                  
Restricted Stock | Vectrix, Inc. | Tranche One                        
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]                        
Vesting percentage     25.00%                  
Restricted Stock | Vectrix, Inc. | Tranche Two                        
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]                        
Vesting percentage     25.00%                  
Restricted Stock | Vectrix, Inc. | Tranche Three                        
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]                        
Vesting percentage     25.00%                  
Restricted Stock | Vectrix, Inc. | Tranche Four                        
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]                        
Vesting percentage     25.00%                  
Restricted Stock | Zaraz                        
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]                        
Vesting period       3 years                
Stock-based compensation expense                   0    
Unrecognized stock-based compensation expense               $ 4,900,000   4,900,000    
Issuance of common stock in connection with acquisition (in shares)       48,000                
Restricted Stock | Zaraz | Subject to vesting                        
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]                        
Issuance of common stock in connection with acquisition (in shares)       39,000                
Restricted Stock | Zaraz | Tranche One                        
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]                        
Vesting percentage       33.33%                
Restricted Stock | Zaraz | Tranche Two                        
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]                        
Vesting percentage       33.33%                
Restricted Stock | Zaraz | Tranche Three                        
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]                        
Vesting percentage       33.33%                
Restricted Stock | S2 Systems Corporation                        
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]                        
Stock-based compensation expense                   0    
Unrecognized stock-based compensation expense               0   $ 0    
Restricted stock issued in connection with acquisition, aggregate grant date fair value               11,200,000 $ 0      
Restricted Stock | S2 Systems Corporation | Subject to vesting                        
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]                        
Issuance of restricted stock in connection with acquisition (in shares)           841,000            
Restricted Stock | S2 Systems Corporation | Tranche One                        
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]                        
Vesting period           2 years            
Vesting percentage           38.90%            
Restricted Stock | S2 Systems Corporation | Tranche Two                        
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]                        
Vesting period           3 years            
Vesting percentage           38.90%            
Restricted Stock | S2 Systems Corporation | Tranche Three                        
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]                        
Vesting percentage           7.40%            
Restricted Stock | S2 Systems Corporation | Tranche Four                        
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]                        
Vesting percentage           7.40%            
Restricted Stock | S2 Systems Corporation | Tranche Five                        
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]                        
Vesting percentage           7.40%            
Restricted Stock | S2 Systems Corporation | Over 2 years                        
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]                        
Vesting percentage           77.80%            
Employee Stock | 2019 Employee Stock Purchase Plan                        
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]                        
Weighted-average remaining vesting period                   4 months 24 days 4 months 24 days  
Unrecognized stock-based compensation expense         $ 2,600,000     3,500,000   $ 3,500,000   $ 2,600,000
Maximum ownership percentage threshold for participation             5.00%          
Maximum contribution percentage per employee             10.00%          
Employee Stock | 2019 Employee Stock Purchase Plan | Class A common stock                        
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]                        
Number of additional shares allowable under the plan (in shares)             5,870,000          
Purchase price of common stock, percentage of fair value             85.00%          
Offering period             6 months          
Purchase period             6 months          
Maximum number of shares available for repurchase for each employee (more than, in shares)             1,500          
Maximum value of shares available for repurchase for each employee             $ 25,000          
Number of shares repurchased (in shares)                   153,974 130,870,000,000  
Employee Stock | 2019 Employee Stock Purchase Plan | Class A and Class B Common Stock                        
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]                        
Potential increase in number of share authorized, as a percentage of total common stock outstanding             1.00%          
Other Performance Awards                        
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]                        
Options unrecognized stock-based compensation expense               276,600,000   $ 276,600,000    
Weighted-average remaining vesting period                   5 years 1 month 6 days    
Requisite service period of awards                   5 years 2 months 26 days    
Authorized exercise price (in dollars per share)   $ 105.56                    
Weighted-average grant date fair value for options granted (in dollars per share)                   $ 58.85    
Stock-based compensation expense               $ 12,600,000   $ 12,600,000    
Other Performance Awards | Executive Officer                        
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]                        
Expiration period   10 years                    
Other Performance Awards | Other Key Employees                        
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]                        
Expiration period   10 years                    
Other Performance Awards | Class A common stock                        
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]                        
Number of shares authorized for issuance (in shares)   4,915,000                    
Expiration period   10 years                    
v3.22.2
Stock-based Compensation - Schedule of Stock-based Awards (Details)
$ / shares in Units, shares in Thousands, $ in Thousands
 6 Months Ended 12 Months Ended
Jun. 30, 2022
USD ($)
$ / shares
shares
Dec. 31, 2021
USD ($)
$ / shares
shares
Shares Subject to Options Outstanding    
Stock options outstanding, beginning balance (in shares) | shares 13,603  
Stock options granted (in shares) | shares 5,074  
Stock options exercised (in shares) | shares (1,368)  
Stock options canceled, forfeited, expired (in shares) | shares (6)  
Stock options outstanding, ending balance (in shares) | shares 17,303 13,603
Stock options vested and expected to vest (in shares) | shares 17,266  
Stock options exercisable (in shares) | shares 11,387  
Weighted- Average Exercise Price per Option    
Stock options outstanding, weighted-average exercise price, beginning balance (in dollars per share) | $ / shares $ 12.47  
Stock options granted, weighted-average exercise price (in dollars per share) | $ / shares 102.94  
Stock options exercised, weighted-average exercise price (in dollars per share) | $ / shares 4.35  
Stock options canceled, forfeited, expired, weighted-averaged exercise price (in dollars per share) | $ / shares 7.41  
Stock options outstanding, weighted-average exercise price, ending balance (in dollars per share) | $ / shares 96.26 $ 12.47
Stock options vested and expected to vest, weighted-average exercise price (in dollars per share) | $ / shares 33.70  
Stock options exercisable, weighted-average exercise price (in dollars per share) | $ / shares $ 2.62  
Weighted- Average Remaining Contractual Terms (in years)    
Stock options outstanding, weighted-average remaining contractual term 4 years 7 months 6 days 6 years
Stock options vested and expected to vest, weighted-average remaining contractual term 4 years 7 months 6 days  
Stock options exercisable, weighted-average remaining contractual term 5 years 3 months 18 days  
Aggregate Intrinsic Value    
Stock options outstanding, aggregate intrinsic value | $ $ 490,994 $ 1,726,440
Stock options exercised, aggregate intrinsic value | $ 125,302  
Stock options vested and expected to vest, aggregate intrinsic value | $ 489,634  
Stock options exercisable, aggregate intrinsic value | $ $ 468,167  
v3.22.2
Stock- based compensation - Schedule of Assumptions Used to Determine the Fair Value of Stock Options Granted (Details)
 6 Months Ended
Jun. 30, 2022
Jun. 30, 2021
Stock options issued and outstanding | Area 1 Security, Inc    
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]    
Expected term (in years) 2 years 3 months 18 days  
Expected volatility 66.70%  
Risk-free interest rate 2.50%  
Dividend yield 0.00%  
Employee Stock    
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]    
Expected term (in years) 6 months 6 months
Expected volatility 88.50% 62.80%
Risk-free interest rate 1.20% 0.10%
Dividend yield 0.00% 0.00%
Other Performance Awards    
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]    
Expected term (in years) 9 years 9 months 21 days  
Expected volatility 59.00%  
Risk-free interest rate 2.80%  
Dividend yield 0.00%  
v3.22.2
Stock-based Compensation - Schedule of Restricted Stock Units Activity (Details) - $ / shares
shares in Thousands
 6 Months Ended
Jun. 30, 2022
Restricted Stock and Restricted Stock Units  
Restricted Stock and RSUs  
Unvested and outstanding, beginning balance (in shares) 7,456
Forfeited (in shares) (346)
Unvested, ending balance (in shares) 7,017
Vested and not yet released (in shares) 0
Outstanding at end of period (in shares) 7,017
Weighted-Average Grant Date Fair Value  
Unvested, weighted average grant date fair value, beginning balance (in dollars per share) $ 47.36
Forfeited (in dollars per share) 51.04
Unvested, weighted average grant date fair value, ending balance (in dollars per share) 62.32
Vested and not yet released, weighted-average grant date fair value (in dollars per share) 0
Outstanding at end of period, weighted-average grant date fair value (in dollars per share) $ 62.32
Restricted Stock Units (RSUs)  
Restricted Stock and RSUs  
Granted (in shares) 1,918
Vested (in shares) (1,407)
Weighted-Average Grant Date Fair Value  
Granted (in dollars per share) $ 95.44
Vested (in dollars per share) $ 33.27
Restricted Stock  
Restricted Stock and RSUs  
Granted (in shares) 52
Vested (in shares) (656)
Weighted-Average Grant Date Fair Value  
Granted (in dollars per share) $ 100.29
Vested (in dollars per share) $ 19.47
v3.22.2
Stock-based Compensation - Schedule of Fair Value Assumptions for Employee Stock Purchase Plan (Details) - Shares available for issuance under the Employee Stock Purchase Plan
 6 Months Ended
Jun. 30, 2022
Jun. 30, 2021
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]    
Expected term (in years) 6 months 6 months
Risk-free interest rate 1.20% 0.10%
Expected volatility 88.50% 62.80%
Dividend yield 0.00% 0.00%
v3.22.2
Stock-based Compensation - Schedule of Stock-based Compensation Expense (Details) - USD ($)
$ in Thousands
 3 Months Ended 6 Months Ended
Jun. 30, 2022
Jun. 30, 2021
Jun. 30, 2022
Jun. 30, 2021
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]        
Total stock-based compensation expense $ 54,815 $ 20,551 $ 88,780 $ 38,589
Cost of revenue        
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]        
Total stock-based compensation expense 1,888 579 2,966 993
Sales and marketing        
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]        
Total stock-based compensation expense 12,216 6,608 21,135 12,253
Research and development        
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]        
Total stock-based compensation expense 26,659 9,509 45,488 17,873
General and administrative        
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]        
Total stock-based compensation expense $ 14,052 $ 3,855 $ 19,191 $ 7,470
v3.22.2
Net Loss per Share Attributable to Common Stockholders - Schedule of Computation of Basic and Diluted Earnings per Share Attributable to Common Stockholders (Details) - USD ($)
$ / shares in Units, shares in Thousands, $ in Thousands
 3 Months Ended 6 Months Ended
Jun. 30, 2022
Jun. 30, 2021
Jun. 30, 2022
Jun. 30, 2021
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items]        
Net loss attributable to common stockholders $ (63,537) $ (35,510) $ (104,918) $ (75,473)
Weighted-average shares used in computing net loss per share attributable to common stockholders, basic (in shares) 325,197 308,263 324,574 307,115
Weighted-average shares used in computing net loss per share attributable to common stockholders, diluted (in shares) 325,197 308,263 324,574 307,115
Net loss per share attributable to common stockholders, basic (in dollars per share) $ (0.20) $ (0.12) $ (0.32) $ (0.25)
Net loss per share attributable to common stockholders, diluted (in dollars per share) $ (0.20) $ (0.12) $ (0.32) $ (0.25)
Class A | Common stock        
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items]        
Net loss attributable to common stockholders $ (55,081) $ (29,774) $ (90,864) $ (62,079)
Weighted-average shares used in computing net loss per share attributable to common stockholders, basic (in shares) 281,915 258,471 281,097 252,614
Weighted-average shares used in computing net loss per share attributable to common stockholders, diluted (in shares) 281,915 258,471 281,097 252,614
Net loss per share attributable to common stockholders, basic (in dollars per share) $ (0.20) $ (0.12) $ (0.32) $ (0.25)
Net loss per share attributable to common stockholders, diluted (in dollars per share) $ (0.20) $ (0.12) $ (0.32) $ (0.25)
Class B | Common stock        
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items]        
Net loss attributable to common stockholders $ (8,456) $ (5,736) $ (14,054) $ (13,394)
Weighted-average shares used in computing net loss per share attributable to common stockholders, basic (in shares) 43,282 49,792 43,477 54,501
Weighted-average shares used in computing net loss per share attributable to common stockholders, diluted (in shares) 43,282 49,792 43,477 54,501
Net loss per share attributable to common stockholders, basic (in dollars per share) $ (0.20) $ (0.12) $ (0.32) $ (0.25)
Net loss per share attributable to common stockholders, diluted (in dollars per share) $ (0.20) $ (0.12) $ (0.32) $ (0.25)
v3.22.2
Net Loss per Share Attributable to Common Stockholders - Schedule of Potential Shares of Common Stock Excluded from Computation of Basic and Diluted Net Loss per Share Attributable to Common Stockholders (Details) - shares
shares in Thousands
 6 Months Ended
Jun. 30, 2022
Jun. 30, 2021
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]    
Potential shares of common stock excluded from computation of diluted net loss per share attributable to common stockholders (in shares) 37,570 42,362
2025 Notes    
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]    
Potential shares of common stock excluded from computation of diluted net loss per share attributable to common stockholders (in shares) 4,233 15,363
2026 Notes    
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]    
Potential shares of common stock excluded from computation of diluted net loss per share attributable to common stockholders (in shares) 6,762 0
Shares subject to repurchase    
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]    
Potential shares of common stock excluded from computation of diluted net loss per share attributable to common stockholders (in shares) 1,465 2,933
Unexercised stock options    
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]    
Potential shares of common stock excluded from computation of diluted net loss per share attributable to common stockholders (in shares) 17,303 15,812
Unvested restricted stock and RSUs    
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]    
Potential shares of common stock excluded from computation of diluted net loss per share attributable to common stockholders (in shares) 7,620 8,113
Employee Stock    
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]    
Potential shares of common stock excluded from computation of diluted net loss per share attributable to common stockholders (in shares) 187 141
v3.22.2
Income Taxes (Details) - USD ($)
$ in Thousands
 3 Months Ended 6 Months Ended
Jun. 30, 2022
Jun. 30, 2021
Jun. 30, 2022
Jun. 30, 2021
Income Tax Disclosure [Abstract]        
Benefit from (provision for) income taxes $ 170 $ 4,310 $ (204) $ 5,143
v3.22.2
Business Combinations - Narratives (Details) - USD ($)
 1 Months Ended 3 Months Ended 6 Months Ended 12 Months Ended
Apr. 01, 2022
Jan. 14, 2022
Oct. 15, 2021
Jan. 31, 2020
Jun. 30, 2022
Jun. 30, 2021
Jun. 30, 2022
Jun. 30, 2021
Dec. 31, 2021
Dec. 31, 2020
Jan. 01, 2022
Business Acquisition [Line Items]                      
Cash paid for acquisitions             $ 86,941,000 $ 0      
Stock-based compensation expense         $ 54,815,000 $ 20,551,000 88,780,000 38,589,000      
Stock options issued and outstanding                      
Business Acquisition [Line Items]                      
Stock-based compensation expense             $ 1,200,000        
Developed technology                      
Business Acquisition [Line Items]                      
Estimated useful life of acquired developed technology             2 years        
Area 1 Security, Inc                      
Business Acquisition [Line Items]                      
Consideration transferred $ 156,600,000                    
Cash paid for acquisitions 82,600,000                    
Cash acquired 2,500,000                    
Value of shares issued 63,500,000                    
Payments to settle acquiree's outstanding debt 4,100,000                    
Goodwill expected to be tax deductible                     $ 0
Area 1 Security, Inc | Scenario One                      
Business Acquisition [Line Items]                      
Cash holdback $ 9,300,000                    
Contingent consideration, liability, period 12 months                    
Area 1 Security, Inc | Scenario Two                      
Business Acquisition [Line Items]                      
Cash holdback $ 1,100,000                    
Contingent consideration, liability, period 5 months                    
Area 1 Security, Inc | Stock options issued and outstanding                      
Business Acquisition [Line Items]                      
Compensation arrangements value $ 15,900,000                    
Stock-based compensation expense $ 1,400,000                    
Vectrix, Inc.                      
Business Acquisition [Line Items]                      
Consideration transferred   $ 7,600,000                  
Cash paid for acquisitions   4,300,000                  
Cash acquired   800,000                  
Value of shares issued   $ 2,000,000                  
Contingent consideration, liability, period   18 months                  
Payments to settle acquiree's outstanding debt   $ 2,000,000                  
Compensation arrangements value   8,000,000                  
Consideration held back   1,300,000     10,600,000   $ 10,600,000        
Compensation arrangement with individual, compensation expense   $ 2,600,000     $ 0   0        
Compensation arrangement, weighted-average remaining recognition period         3 years 6 months            
Vectrix, Inc. | Developed technology                      
Business Acquisition [Line Items]                      
Compensation arrangement with individual, recorded liability         $ 4,800,000   4,800,000        
Estimated useful life of acquired developed technology   2 years                  
Zaraz                      
Business Acquisition [Line Items]                      
Consideration transferred     $ 7,200,000                
Cash paid for acquisitions     5,600,000                
Cash acquired     800,000                
Value of shares issued     1,600,000                
Payments to settle acquiree's outstanding debt     1,100,000                
Compensation arrangements value     $ 6,500,000                
Compensation arrangement with individual, compensation expense         0   $ 0   $ 500,000    
Compensation arrangement, weighted-average remaining recognition period             2 years 3 months 18 days        
Zaraz | Developed technology                      
Business Acquisition [Line Items]                      
Compensation arrangement with individual, recorded liability         4,900,000   $ 4,900,000        
Estimated useful life of acquired developed technology     2 years                
S2 Systems Corporation                      
Business Acquisition [Line Items]                      
Consideration transferred       $ 17,700,000              
Cash acquired       100,000              
Value of shares issued       $ 1,800,000              
Contingent consideration, liability, period       18 months              
Payments to settle acquiree's outstanding debt       $ 6,900,000              
Compensation arrangements value       20,300,000              
Stock-based compensation expense           $ 1,400,000   $ 2,800,000      
Consideration held back       2,200,000              
Cash payments to acquire businesses       $ 13,700,000              
Cost not yet recognized         $ 0   $ 0        
Repayments of notes payable                   $ 200,000  
Purchase accounting adjustment                   $ 800,000  
S2 Systems Corporation | Developed technology                      
Business Acquisition [Line Items]                      
Estimated useful life of acquired developed technology       2 years              
v3.22.2
Business Combinations - Schedule of Assets Acquired and Liabilities Assumed (Details) - USD ($)
$ in Thousands
Jun. 30, 2022
Apr. 01, 2022
Jan. 14, 2022
Dec. 31, 2021
Oct. 15, 2021
Jan. 31, 2020
Business Acquisition [Line Items]            
Goodwill $ 149,122     $ 23,530    
Area 1 Security, Inc | Developed technology            
Business Acquisition [Line Items]            
Accounts receivable, net   $ 1,634        
Prepaid expenses and other current assets   953        
Acquired Intangible Assets   43,300        
Goodwill   120,830        
Total assets acquired   166,717        
Accounts Payable   (254)        
Accrued expense and other current liabilities   (1,895)        
Deferred revenue   (5,736)        
Deferred revenue, noncurrent   (1,213)        
Other noncurrent liabilities   (1,053)        
Total purchase price   $ 156,566        
Vectrix, Inc.            
Business Acquisition [Line Items]            
Goodwill     $ 4,951      
Total assets acquired     8,051      
Accounts Payable     (20)      
Other noncurrent liabilities     (419)      
Total purchase price     7,612      
Vectrix, Inc. | Developed technology            
Business Acquisition [Line Items]            
Developed technology     $ 3,100      
Zaraz            
Business Acquisition [Line Items]            
Goodwill         $ 6,176  
Total assets acquired         7,576  
Other noncurrent liabilities         (322)  
Accrued compensation         (82)  
Total purchase price         7,172  
Zaraz | Developed technology            
Business Acquisition [Line Items]            
Developed technology         $ 1,400  
S2 Systems Corporation            
Business Acquisition [Line Items]            
Prepaid expenses and other current assets           $ 6
Goodwill           13,084
Total assets acquired           18,690
Accrued expense and other current liabilities           (208)
Other noncurrent liabilities           (782)
Total purchase price           17,700
S2 Systems Corporation | Developed technology            
Business Acquisition [Line Items]            
Developed technology           $ 5,600
v3.22.2
Segment and Geographic Information - Narratives (Details)
 6 Months Ended
Jun. 30, 2022
segment
Segment Reporting [Abstract]  
Number of operating segments 1
v3.22.2
Segment and Geographic Information - Schedule of Property and Equipment, Net by Geographic Area (Details) - USD ($)
$ in Thousands
Jun. 30, 2022
Dec. 31, 2021
Segment Reporting Information [Line Items]    
Property and equipment, net $ 244,560 $ 183,736
United States    
Segment Reporting Information [Line Items]    
Property and equipment, net 153,899 120,357
Rest of the world    
Segment Reporting Information [Line Items]    
Property and equipment, net $ 90,661 $ 63,379