CLOUDFLARE, INC., 10-K filed on 2/21/2024
Annual Report
v3.24.0.1
Cover Page - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2023
Feb. 07, 2024
Jun. 30, 2023
Document Information [Line Items]      
Document Type 10-K    
Document Annual Report true    
Document Period End Date Dec. 31, 2023    
Current Fiscal Year End Date --12-31    
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 Well-known Seasoned Issuer Yes    
Entity Voluntary Filers No    
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    
ICFR Auditor Attestation Flag true    
Document Financial Statement Error Correction [Flag] false    
Entity Shell Company false    
Entity Public Float     $ 9,021
Documents Incorporated by Reference Portions of the registrant's definitive Proxy Statement relating to the 2024 Annual Meeting of Stockholders are incorporated herein by reference in Part III of this Annual Report on Form 10-K to the extent stated herein. Such Proxy Statement will be filed with the Securities and Exchange Commission within 120 days of the registrant's fiscal year ended December 31, 2023.    
Amendment Flag false    
Entity Central Index Key 0001477333    
Document Fiscal Period Focus FY    
Document Fiscal Year Focus 2023    
Class A common stock      
Document Information [Line Items]      
Entity Common Stock, Shares Outstanding   298,376,723  
Class B common stock      
Document Information [Line Items]      
Entity Common Stock, Shares Outstanding   39,282,522  
v3.24.0.1
Audit Information
 12 Months Ended
Dec. 31, 2023
Auditor Information [Abstract]  
Auditor Firm ID 185
Auditor Name KPMG LLP
Auditor Location Santa Clara, California
v3.24.0.1
CONSOLIDATED BALANCE SHEETS - USD ($)
$ in Thousands
Dec. 31, 2023
Dec. 31, 2022
Current assets:    
Cash and cash equivalents $ 86,864 $ 204,178
Available-for-sale securities 1,586,880 1,445,759
Accounts receivable, net 248,268 148,544
Contract assets 11,041 8,292
Restricted cash short-term 2,522 10,555
Prepaid expenses and other current assets 47,502 70,556
Total current assets 1,983,077 1,887,884
Property and equipment, net 322,813 286,600
Goodwill 148,047 148,047
Acquired intangible assets, net 19,564 32,483
Operating lease right-of-use assets 138,556 132,360
Deferred contract acquisition costs, noncurrent 133,236 93,145
Restricted cash 1,838 471
Other noncurrent assets 12,636 6,918
Total assets 2,759,767 2,587,908
Current liabilities:    
Accounts payable 53,727 35,607
Accrued expenses and other current liabilities 63,597 68,327
Accrued compensation 63,801 42,014
Operating lease liabilities 38,351 33,275
Deferred revenue 347,608 218,647
Total current liabilities 567,084 397,870
Convertible senior notes, net 1,283,362 1,436,192
Operating lease liabilities, noncurrent 113,490 107,624
Deferred revenue, noncurrent 17,244 11,732
Other noncurrent liabilities 15,540 10,526
Total liabilities 1,996,720 1,963,944
Commitments and contingencies (Note 8)
Stockholders’ Equity    
Additional paid-in capital 1,784,566 1,475,423
Accumulated deficit (1,023,840) (839,891)
Accumulated other comprehensive income (loss) 1,984 (11,896)
Total stockholders’ equity 763,047 623,964
Total liabilities and stockholders’ equity 2,759,767 2,587,908
Class A common stock    
Stockholders’ Equity    
Common stock 297 286
Class B common stock    
Stockholders’ Equity    
Common stock $ 40 $ 42
v3.24.0.1
CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares
Dec. 31, 2023
Dec. 31, 2022
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) 298,088,556 286,560,947
Common stock, shares outstanding (in shares) 298,088,556 286,560,947
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) 39,443,337 43,524,514
Common stock, shares outstanding (in shares) 39,443,337 43,524,514
v3.24.0.1
CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($)
shares in Thousands, $ in Thousands
 12 Months Ended
Dec. 31, 2023
Dec. 31, 2022
Dec. 31, 2021
Income Statement [Abstract]      
Revenue $ 1,296,745 $ 975,241 $ 656,426
Cost of revenue 307,005 232,610 147,134
Gross profit 989,740 742,631 509,292
Operating expenses:      
Sales and marketing 599,117 465,762 328,065
Research and development 358,143 298,303 189,408
General and administrative 217,965 179,769 119,503
Total operating expenses 1,175,225 943,834 636,976
Loss from operations (185,485) (201,203) (127,684)
Non-operating income (expense):      
Interest income 68,167 14,877 1,970
Interest expense (5,872) (4,984) (49,234)
Loss on extinguishment of debt (50,300) 0 (72,234)
Other income (expense), net (4,372) 577 (794)
Total non-operating income (expense), net 7,623 10,470 (120,292)
Loss before income taxes (177,862) (190,733) (247,976)
Provision for income taxes 6,087 2,648 12,333
Net loss $ (183,949) $ (193,381) $ (260,309)
Net loss per share attributable to common stockholders, basic (in dollars per share) $ (0.55) $ (0.59) $ (0.83)
Net loss per share attributable to common stockholders, diluted (in dollars per share) $ (0.55) $ (0.59) $ (0.83)
Weighted-average shares used in computing net loss per share attributable to common stockholders, basic (in shares) 333,656 326,332 312,321
Weighted-average shares used in computing net loss per share attributable to common stockholders, diluted (in shares) 333,656 326,332 312,321
v3.24.0.1
CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2023
Dec. 31, 2022
Dec. 31, 2021
Statement of Comprehensive Income [Abstract]      
Net loss $ (183,949) $ (193,381) $ (260,309)
Other comprehensive income (loss):      
Change in unrealized gain (loss) on investments, net of tax 13,880 (9,251) (2,808)
Other comprehensive income (loss) 13,880 (9,251) (2,808)
Comprehensive loss $ (170,069) $ (202,632) $ (263,117)
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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 income (loss)
Class A common stock
Class A common stock
Common Stock
Class B common stock
Class B common stock
Common Stock
Accounting Standards Update [Extensible List] Accounting Standards Update 2016-02 [Member]                    
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 in connection with acquisition (in shares)                 9,000    
Issuance of common stock in connection with acquisition $ 1,565   1,565                
Issuance of unvested restricted stock in connection with acquisition (in shares)                 39,000    
Issuance of common stock upon exercise of stock options (in shares) 4,455,000               686,000   3,727,000
Issuance of common stock upon exercise of stock options $ 21,386   21,381           $ 1   $ 4
Repurchases of unvested common stock (in shares)                 (75,000)    
Issuance of common stock related to early exercised stock options (in shares)                     42,000
Vesting of shares issued upon early exercise of stock options 3,879   3,877               $ 2
Issuance of common stock related to settlement of RSUs (in shares)                 1,457,000   1,297,000
Issuance of common stock related to settlement of RSUs (1)   (3)           $ 1   $ 1
Tax withholding on RSU settlement (in shares)                     (29,000)
Tax withholding on RSU settlement (3,634)   (3,634)                
Conversion of Class B to Class A common stock (in shares)                 18,372,000   (18,372,000)
Conversion of Class B to Class A common stock 0               $ 18   $ (18)
Equity component of convertible senior notes, net of issuance costs 262,077   262,077                
Purchases of capped calls related to convertible senior notes (86,293)   (86,293)                
Settlement of common stock in connection with convertible senior notes (in shares)                 7,559,000    
Settlement of common stock in connection with convertible senior notes 920,249   920,241           $ 8    
Equity component of extinguishment of convertible senior notes (965,684)   (965,684)                
Temporary equity reclassification (4,439)   (4,439)                
Common stock issued under employee stock purchase plan (in shares)                 260,000    
Common stock issued under employee stock purchase plan 14,984   14,984           $ 0    
Stock-based compensation 93,447   93,447                
Net loss (260,309)       (260,309)       $ (219,939)   $ (40,370)
Other comprehensive (loss) income (2,808)           (2,808)        
Ending balance (in shares) at Dec. 31, 2021                 277,708,000   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
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 unvested restricted stock in connection with acquisition (in shares)                 52,000    
Issuance of common stock upon exercise of stock options (in shares) 2,484,000               249,000   2,194,000
Issuance of common stock upon exercise of stock options $ 10,000   9,998           $ 0   $ 2
Repurchases of unvested common stock (in shares)                 (1,000)    
Issuance of common stock related to early exercised stock options (in shares)                     41,000
Vesting of shares issued upon early exercise of stock options 2,862   2,861               $ 1
Issuance of common stock related to settlement of RSUs (in shares)                 1,723,000   1,125,000
Issuance of common stock related to settlement of RSUs 0   (3)           $ 2   $ 1
Tax withholding on RSU settlement (in shares)                     (32,000)
Tax withholding on RSU settlement (2,483)   (2,483)                
Conversion of Class B to Class A common stock (in shares)                 5,707,000   (5,707,000)
Conversion of Class B to Class A common stock 0               $ 6   $ (6)
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)                
Common stock issued under employee stock purchase plan (in shares)                 302,000    
Common stock issued under employee stock purchase plan 15,291   15,291                
Stock-based compensation 208,700   208,700                
Net loss (193,381)       (193,381)       $ (167,770)   $ (25,611)
Other comprehensive (loss) income (9,251)           (9,251)        
Ending balance (in shares) at Dec. 31, 2022               286,560,947 286,561,000 43,524,514 43,525,000
Ending balance at Dec. 31, 2022 $ 623,964   1,475,423   (839,891)   (11,896)   $ 286   $ 42
Increase (Decrease) in Stockholders' Equity [Roll Forward]                      
Issuance of common stock upon exercise of stock options (in shares) 2,989,000               448,000   2,541,000
Issuance of common stock upon exercise of stock options $ 14,851   14,848               $ 3
Repurchases of unvested common stock (in shares)                 (17,000)    
Vesting of shares issued upon early exercise of stock options 1,761   1,760               $ 1
Issuance of common stock related to settlement of RSUs (in shares)                 3,291,000   398,000
Issuance of common stock related to settlement of RSUs 0   (4)           $ 3   $ 1
Tax withholding on RSU settlement (in shares)                 (105,000)   (18,000)
Tax withholding on RSU settlement (7,953)   (7,953)                
Conversion of Class B to Class A common stock (in shares)                 7,003,000   (7,003,000)
Conversion of Class B to Class A common stock 0               $ 7   $ (7)
Settlement of common stock in connection with convertible senior notes (in shares)                 461,000    
Settlement of common stock in connection with convertible senior notes 46   46                
Common stock issued under employee stock purchase plan (in shares)                 447,000    
Common stock issued under employee stock purchase plan 19,083   19,082           $ 1    
Stock-based compensation 281,364   281,364                
Net loss (183,949)       (183,949)       $ (161,296)   $ (22,653)
Other comprehensive (loss) income 13,880           13,880        
Ending balance (in shares) at Dec. 31, 2023               298,088,556 298,089,000 39,443,337 39,443,000
Ending balance at Dec. 31, 2023 $ 763,047   $ 1,784,566   $ (1,023,840)   $ 1,984   $ 297   $ 40
v3.24.0.1
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2023
Dec. 31, 2022
Dec. 31, 2021
Cash Flows From Operating Activities      
Net loss $ (183,949) $ (193,381) $ (260,309)
Adjustments to reconcile net loss to cash provided by operating activities:      
Depreciation and amortization expense 135,820 102,335 66,607
Non-cash operating lease costs 44,792 36,332 25,091
Amortization of deferred contract acquisition costs 61,374 45,115 29,267
Stock-based compensation expense 273,989 202,777 90,137
Amortization of debt discount and issuance costs 4,519 4,659 46,174
Net accretion of discounts and amortization of premiums on available-for-sale securities (44,441) (263) 8,357
Deferred income taxes 2,264 (140) 8,738
Provision for bad debt 13,637 4,828 3,804
Loss on extinguishment of debt 50,300 0 72,234
Exchange of convertible senior notes attributable to the accreted interest related to debt discount 0 (29,353)
Other 829 629 511
Changes in operating assets and liabilities, net of effect of acquisitions:      
Accounts receivable, net (113,361) (56,195) (35,848)
Contract assets (2,749) (2,213) (2,541)
Deferred contract acquisition costs (101,465) (67,940) (55,411)
Prepaid expenses and other current assets (22,125) (7,701) (2,395)
Other noncurrent assets 1,018 (539) 1,534
Accounts payable 11,781 (9,605) 2,462
Accrued expenses and other current liabilities 25,788 (5,363) 58,897
Operating lease liabilities (40,046) (31,691) (23,071)
Deferred revenue 134,473 102,204 64,390
Other noncurrent liabilities 1,958 (253) (4,627)
Net cash provided by operating activities 254,406 123,595 64,648
Cash Flows From Investing Activities      
Purchases of property and equipment (114,396) (143,606) (92,986)
Capitalized internal-use software (20,546) (19,758) (14,752)
Asset acquisitions and business combinations, net of cash acquired (6,083) (88,187) (5,605)
Purchases of available-for-sale securities (1,877,513) (1,132,951) (1,589,265)
Sales of available-for-sale securities 20,248 0 25,714
Maturities of available-for-sale securities 1,812,015 1,148,770 967,519
Other investing activities 74 36 53
Net cash used in investing activities (186,201) (235,696) (709,322)
Cash Flows From Financing Activities      
Gross proceeds from issuance of convertible senior notes 0 0 1,293,750
Purchases of capped calls related to convertible senior notes 0 0 (86,293)
Cash consideration paid in exchange of convertible senior debt 0 0 (370,647)
Cash paid for issuance costs on convertible senior notes 0 0 (19,797)
Repayments of convertible senior notes (207,649) (16,571) 0
Proceeds from the exercise of stock options 14,851 10,000 21,385
Proceeds from the early exercise of stock options 0 113 115
Repurchases of unvested common stock (34) (3) (189)
Proceeds from the issuance of common stock for employee stock purchase plan 19,083 15,291 14,984
Payment of tax withholding obligation on RSU settlement (7,953) (2,483) (3,634)
Payment of indemnity holdback (10,483) 0 (2,188)
Net cash provided by (used in) financing activities (192,185) 6,347 847,486
Net (decrease) increase in cash, cash equivalents, and restricted cash (123,980) (105,754) 202,812
Cash, cash equivalents, and restricted cash, beginning of period 215,204 320,958 118,146
Cash, cash equivalents, and restricted cash, end of period 91,224 215,204 320,958
Supplemental Disclosure of Cash Flow Information:      
Cash paid for interest 670 1,238 3,634
Cash paid for income taxes, net of refunds 4,454 2,223 1,546
Cash paid for operating lease liabilities 40,747 28,881 22,765
Supplemental Disclosure of Non-cash Investing and Financing Activities:      
Stock-based compensation capitalized for software development 6,641 5,452 3,212
Accounts payable and accrued expenses related to property and equipment additions 26,423 28,979 13,544
Vesting of early exercised stock options 1,761 2,862 3,878
Indemnity holdback consideration associated with asset acquisitions and business combinations 1,000 10,483 0
Issuance of common stock related to an acquisition 0 65,504 1,565
Operating lease right-of-use assets obtained in exchange for operating lease liabilities 44,707 33,137 109,821
Issuance of common stock for exchange of convertible senior notes $ 0 $ 0 $ 920,249
v3.24.0.1
Organization and Basis of Presentation
 12 Months Ended
Dec. 31, 2023
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-premises, hybrid, cloud, and software-as-a-service (SaaS) applications. Cloudflare serves comprehensive customer needs across security and connectivity, and increasingly, the distributed and programmable nature of the Company’s network is resulting in customers building their applications on top of its network, too — including both traditional applications and those that are enhanced with artificial intelligence. 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 consolidated financial statements and accompanying notes have been prepared in conformity with generally accepted accounting principles in the United States (U.S. GAAP) 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.
Use of Estimates
The preparation of 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 consolidated financial statements and accompanying notes to the 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, valuation of acquired intangible assets, the assessment of recoverability of intangible assets and their estimated useful lives, useful lives of property and equipment, the determination of the incremental borrowing rate used for operating lease liabilities, the valuation and recognition of stock-based compensation awards, 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 Hamas-Israel and Russia-Ukraine conflicts and other macroeconomic and 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 February 21, 2024, the date of issuance of this Annual Report on Form 10-K. 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.
In January 2024, we completed an assessment of the useful lives of our servers-network infrastructure and adjusted the estimated useful lives of our servers-network infrastructure from four years to five years. This change in accounting estimate is effective beginning in fiscal year 2024.
v3.24.0.1
Summary of Significant Accounting Policies
 12 Months Ended
Dec. 31, 2023
Accounting Policies [Abstract]  
Summary of Significant Accounting Policies Summary of Significant Accounting Policies
Concentrations of Risks
The Company’s revenue is reliant on its customers utilizing Internet-based services. These services can be prone to rapid changes in technology and government regulation. If the Company were unable to keep pace with customers’ needs and continue to improve its technological capabilities, or if another firm were to introduce competitive products, or a government jurisdiction were to enact legislation detrimental to the Company’s business, such an event or events could adversely affect the Company’s operating results.
The Company serves its customers from co-location facilities located in various cities and countries around the world. The Company has internal procedures to restore services in the event of disasters at its current co-location facilities. Even with these procedures for disaster recovery in place, the Company’s services could be significantly interrupted during the implementation of restoration procedures.
The Company’s financial instruments that are exposed to concentrations of credit risk consist primarily of cash, cash equivalents, restricted cash, available-for-sale securities, and accounts receivable. Although the Company maintains cash deposits and cash equivalent balances with multiple financial institutions, the deposits, at times, may exceed federally insured limits. Cash and cash equivalents may be withdrawn or redeemed on demand. The Company believes that the financial institutions that hold its cash and cash equivalents and available-for-sale securities are financially sound and, accordingly, minimal credit risk exists with respect to these balances. The Company also maintains investments in U.S. treasury securities, U.S. government agency securities, commercial paper, and corporate bonds that carry high credit ratings and accordingly, minimal credit risk exists with respect to these balances. Cash equivalents consist of money market funds, commercial paper, and corporate bonds which are invested through financial institutions in the United States.
The Company’s accounts receivable are derived from net revenue to customers located throughout the world. The Company grants credit to its customers in the normal course of business. For the years ended December 31, 2023, 2022, and 2021, no customer accounted for more than 10% of the Company’s revenue. No customer represented 10% or more of accounts receivable, net as of December 31, 2023 and 2022.
Revenue Recognition
In accordance with ASC 606, revenue is recognized when a customer obtains control of promised services. The amount of revenue recognized reflects the consideration that the Company expects to be entitled to receive in exchange for these services. To achieve this standard, the Company applies the following five steps:
1. Identify the contract with a customer
2. Identify the performance obligations in the contract
3. Determine the transaction price
4. Allocate the transaction price to performance obligations in the contract
5. Recognize revenue when or as the Company satisfies a performance obligation
The Company generates sales directly through its sales team and through its channel partners. Revenue from sales to channel partners are recorded once all revenue recognition criteria above are met. Channel partners generally receive an order from an end-customer prior to placing an order with the Company. Payment from channel partners is not contingent on the partner’s collection from end-customers. The Company’s performance obligation primarily consists of subscription and support services that are provided over the same service period.
Variable Consideration
If the Company’s services do not meet certain service level commitments, its customers are entitled to receive service credits, and in certain cases, refunds, each representing a form of variable consideration. Revenue from sales is recorded at the net sales price, which is the transaction price, and includes estimates of these forms of variable consideration to the extent that a significant reversal of cumulative revenue is probable to not occur in a future period. The Company has historically not experienced any incidents that had a material impact on its consolidated financial statements. Accordingly, any estimated refunds related to these agreements in the consolidated financial statements are not material during the periods presented. Usage-based consideration is primarily related to fees charged for the Company’s customer’s use of excess bandwidth when accessing the Company’s network and products in a given period and is recognized as revenue in the period in which the usage occurs.
Subscription and Support Revenue
The Company generates revenue primarily from sales to its customers of subscriptions to access its network and products, together with related support services. Arrangements with customers generally do not provide the customer with the right to take possession of the Company’s software operating its global network and products at any time. Instead, customers are granted continuous access to the Company’s global network and products over the contractual period. Access to the Company’s network and products is considered a monthly series comprising one performance obligation. A time-elapsed output method is used to measure progress because the Company transfers control evenly over the contractual period. Accordingly, the fixed consideration related to subscription and support revenue is generally recognized on a straight-line basis over the contract term beginning on the date that the Company’s service is made available to the customer. Usage-based consideration is primarily related to fees charged for the Company’s customer’s use of excess bandwidth when accessing the Company’s network and products in a given period and is recognized as revenue in the period in which the usage occurs.
The subscription and support term contracts for the Company’s contracted customers, typically range from one to three years. Most of the Company’s contracts with contracted customers are non-cancelable over the contractual term. Customers may have the right to terminate their contracts for cause, if the Company fails to perform in accordance with the contractual terms. For the Company’s pay-as-you-go customers, which consist of customers that sign up for the Company's Pro or Business subscription plans through the Company's website (and which the Company previously referred to as self-serve customers), subscription and support terms of service are typically monthly.
Costs to Obtain and Fulfill a Contract
The Company capitalizes sales commission and associated payroll taxes paid to internal sales personnel that are incremental to the acquisition of channel partner and direct customer contracts. These costs are recorded as deferred contract acquisition costs on the consolidated balance sheets. The Company determines whether costs should be deferred based on its sales compensation plans, if the commissions are in fact incremental and would not have occurred absent the customer contract.
Sales commissions for renewal of a contract are not considered commensurate with the commissions paid for the acquisition of the initial contract. Commissions paid upon the initial acquisition of a contract are amortized over an estimated period of benefit of three years while commissions paid for renewal contracts are amortized over the contractual term of the renewals. Amortization of deferred contract acquisition costs is recognized on a straight-line basis commensurate with the pattern of revenue recognition and included in sales and marketing expense in the consolidated statements of operations. The Company determines the period of benefit for commissions paid for the acquisition of the initial contract by taking into consideration the expected subscription term and expected renewals of its customer contracts, the duration of its relationships with its customers, customer retention data, its technology development lifecycle, and other factors. The Company periodically reviews the carrying amount of deferred contract acquisition costs to determine whether events or changes in circumstances have occurred that could impact the period of benefit of these deferred costs.
Accounts Receivable and Allowance
Accounts receivable are recorded at the invoiced amount and are non-interest bearing. Accounts receivable are stated at their net realizable value, net of a sales allowance and an allowance for doubtful accounts. Credit is extended to customers based on an evaluation of their financial condition and other factors. The Company establishes a sales allowance at the time of revenue recognition based on its history of adjustments and credits provided to customers. In determining the necessary allowance for doubtful accounts, the Company considers the current aging and financial condition of its customers, the amount of receivables in dispute, and current payment patterns. Accounts receivable are written off against the allowance when management determines a balance is uncollectible and the Company no longer actively pursues collection of the receivable. The Company does not have any off-balance-sheet credit exposure related to its customers.
Cost of Revenue
Cost of revenue consists primarily of expenses that are directly related to providing the Company's service to its paying customers. These expenses include expenses related to operating in co-location facilities, network and bandwidth costs, depreciation of the Company's equipment located in co-location facilities, certificate authority services costs for paying customers, related overhead costs, the amortization of the Company's capitalized internal-use software, and the amortization of acquired developed technologies. Cost of revenue also includes employee-
related costs, including salaries, bonuses, benefits, and stock-based compensation for employees whose primary responsibilities relate to supporting the Company's paying customers and delivering paid customer support. Other costs included in cost of revenue include credit card fees related to processing customer transactions and allocated overhead costs.
Research and Development
The Company charges costs related to research, design, and development of products to research and development expense in the consolidated statements of operations as incurred. Research and development expenses support the Company's efforts to add new features to its existing offerings and to ensure the security, performance, and reliability of its global network. The majority of the Company's research and development expenses result from employee-related costs, including salaries, bonuses and benefits, consulting costs, depreciation of equipment used in research and development, and allocated overhead costs.
Advertising Expense
Advertising costs are charged to sales and marketing expense in the consolidated statements of operations as incurred. Advertising expense for the years ended December 31, 2023, 2022, and 2021 was $57.6 million, $43.5 million, and $36.2 million, respectively.
Stock-based Compensation
The Company measures and recognizes stock-based compensation expense based on the grant date fair value of the awards. The Company accounts for forfeitures as they occur. The grant date fair value of restricted stock units (RSUs) is estimated based on the fair value of the Company's underlying common stock. The grant date fair value of stock options with service-based vesting only is estimated using the Black-Scholes option pricing model. The grant date fair value of stock options with market conditions is estimated using the Monte Carlo simulation pricing model. The grant date fair value and the stock-based compensation expense related to purchase rights issued under the 2019 Employee Stock Purchase Plan (ESPP) is estimated using the Black-Scholes option pricing model and is based on the estimated number of awards as of the beginning of the offering period, respectively.
The Black-Scholes and Monte Carlo simulation option pricing models require the use of highly subjective assumptions, including the award’s expected term, the fair value of the underlying common stock, the expected volatility of the price of the common stock, risk-free interest rates, and the expected dividend yield of the common stock.
The assumptions used to determine the fair value of the stock-based awards are management’s best estimates and involve inherent uncertainties and the application of judgment. The expected term represents the period that the Company’s stock-based awards are expected to be outstanding. As the Company does not have sufficient historical experience for determining the expected term of the stock option awards granted, it has based its expected term on the simplified method available under U.S. GAAP.
Stock-based compensation expense for awards with service-based vesting only is recognized on a straight-line basis over the requisite service period of the awards, which is generally four years. Stock-based compensation expense for awards with service and market conditions is recognized on a graded attribution basis over the requisite service period of the awards as derived from the Monte Carlo simulation pricing model.
The 2010 Plan (as defined in Note 10 to these consolidated financial statements) 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. Liability for early exercise of unvested stock options and the related number of unvested shares subject to repurchase were not material as of December 31, 2023 and 2022.
Income Taxes
The Company accounts for income taxes using the asset and liability method. Deferred income taxes are recognized by applying the enacted statutory tax rates applicable to future years to differences between the carrying amounts of existing assets and liabilities and their respective tax bases and net operating loss and tax credit carryforwards. The effect of a change in tax rates on deferred tax assets and liabilities is recognized in the period that includes the enactment date. The measurement of deferred tax assets is reduced, when necessary, by a valuation allowance to amounts that are more likely than not to be realized.
The Company recognizes tax benefits from uncertain tax positions only if it believes that it is more likely than not that the tax position will be sustained on examination by the taxing authorities based on the technical merits of the position.
Foreign Currency Remeasurement
The Company's functional currency of its foreign subsidiaries is the U.S. dollar. The monetary assets and liabilities that are denominated in a currency other than the U.S. dollar of the Company's foreign subsidiaries are remeasured into U.S. dollars at the exchange rate on the balance sheet date, while nonmonetary items are remeasured at historical rates. Revenue and expenses are remeasured at average exchange rates during the period. Transaction gains and losses that arise from exchange rate fluctuations on transactions denominated in a currency other than the functional currency are included in other income (expense), net in the consolidated statements of operations. Remeasurement gains and losses were not material for all periods presented.
Cash and Cash Equivalents
Cash and cash equivalents consist of highly liquid investments with an original maturity from the date of purchase of 90 days or less.
Restricted Cash
The Company's restricted cash at December 31, 2023 is primarily related to irrevocable standby letters of credit and bank guarantees that are required under lease agreements and indemnity holdback consideration associated with acquisition of an intangible asset. Restrictions typically lapse at the end of the lease or holdback term, and the Company classifies restricted cash as current or non-current based on the remaining term of the restriction.
The Company's restricted cash at December 31, 2022 is primarily related to indemnity holdback consideration associated with business combinations. Restrictions typically lapse at the end of the holdback term, and the Company classifies restricted cash as current or non-current based on the remaining term of the restriction.
Available-for-sale Securities
The Company’s available-for-sale securities consist of U.S. treasury securities, U.S. government agency securities, commercial paper, and corporate bonds. The Company has designated all securities held by it as available-for-sale and therefore, such securities are reported at fair value, with unrealized gains and losses recorded in accumulated other comprehensive income (loss) on the consolidated balance sheets. For securities sold prior to maturity, the cost of securities sold is based on the specific identification method. Realized gains and losses on the sale of available-for-sale securities are recorded in other income (expense), net in the consolidated statements of operations. All securities are classified within current assets as such securities can be liquidated to fund current operations without penalty.
Other-than-temporary Impairment
All of the Company’s investments are subject to a periodic impairment review. The Company recognizes an impairment charge when a decline in the fair value of its investments below the cost basis is determined to be other-than-temporary. Factors considered in determining whether a loss is temporary include the extent and length of time the investment’s fair value has been lower than its cost basis, the financial condition and near-term prospects of the investee, the extent of the loss related to 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 prior to
the expected recovery of the investment’s amortized cost basis. No such impairment charges were recorded during the years ended December 31, 2023, 2022, and 2021.
Fair Value Measurements
The Company's available-for-sale securities are recorded at fair value. The Company’s cash and cash equivalents and restricted cash are recorded at cost, which approximates fair value. Additionally, accounts receivable, accounts payable, and accrued expenses approximates fair value due to their short-term nature.
Property and Equipment
Property and equipment are stated at cost, net of accumulated depreciation. Depreciation is computed on a straight-line basis over the estimated useful lives of the assets, which is generally as follows:
Useful Lives
Servers—network infrastructure4 years
Buildings30 years
Office and computer equipment3 years
Office furniture3 years
Software3 years
Leasehold improvementsLesser of useful life or term of lease
Asset retirement obligationLesser of useful life or term of lease
Expenditures for maintenance and repairs are expensed as incurred.
Capitalized Internal-Use Software Development Costs
Certain development costs related to the Company’s global network and products during the application development stage are capitalized. Costs incurred in the preliminary stages of development are analogous to research and development activities and are expensed as incurred. The preliminary stage includes such activities as conceptual formulation of alternatives, evaluation of alternatives, determination of existence of needed technology, and final selection of alternatives. Once the application development stage is reached, internal and external costs are capitalized until the software is substantially complete and ready for its intended use. Capitalized costs are recorded as part of property and equipment, net. Capitalized internal-use software is amortized on a straight-line basis over its estimated useful life, which is generally three years, and is recorded as cost of revenue in the consolidated statements of operations.
Business Combinations
The Company includes the results of operations of the businesses that the Company acquires from the date of acquisition. The fair value of the assets acquired and liabilities assumed is based on their estimated fair values as of the respective date of acquisition. Upon early adoption of Accounting Standards Update (ASU) 2021-08, Business Combinations (Topic 805): Accounting for Contract Assets and Contract Liabilities from Contracts with Customers, effective January 1, 2022, the Company measures and recognizes contract assets and contract liabilities acquired in a business combination on the acquisition date in accordance with ASC 606. Refer to Recent Accounting Pronouncements sub-section below for further detail of the adoption of ASU 2021-08. The excess purchase price over the fair value of the net assets acquired and liabilities assumed is recorded as goodwill. Where the purchase price is less than the fair value of the net assets acquired and liabilities assumed, the difference is recorded as a bargain purchase gain. Determining the fair value of assets acquired and liabilities assumed requires significant judgment and estimates including the selection of valuation methodologies, future expected cash flows, discount rates, and useful lives. The Company’s estimates of fair value are based on assumptions believed to be reasonable, but which are inherently uncertain and, as a result, actual results may differ from estimates. During the measurement period, not to exceed one year from the date of acquisition, the Company may record adjustments to the assets acquired and liabilities assumed with a corresponding offset to goodwill. At the conclusion of the measurement period, or final determination of the values of assets acquired or liabilities assumed, whichever comes first, any subsequent adjustments are reflected in the consolidated statements of operations.
When the Company issues payments or grants of equity to selling stockholders in connection with an acquisition, the Company evaluates whether the payments or awards are compensatory. This evaluation includes whether cash payments or stock award vesting is contingent on the continued employment of the selling stockholder beyond the acquisition date. If continued employment is required for the cash to be paid or stock awards to vest, the award is treated as compensation for post-acquisition services and is recognized as compensation expense.
Transaction costs associated with business combinations are expensed as incurred, and are included in general and administrative expense in the Company’s consolidated statements of operations.
Convertible Senior Notes
Prior to January 1, 2022, the Company accounted for 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) as separate liability and equity components. On issuance, the carrying amount of the liability component was calculated by measuring the fair value of a similar debt instrument that did not have an associated convertible feature. The carrying amount of the equity component, representing the conversion option, was calculated by deducting the fair value of the liability component from the total principal of the Notes. The excess of the principal amount of the liability component over its book value (debt discount) is amortized to interest expense over the term of the Notes. In accounting for the issuance costs related to the Notes, the allocation of issuance costs incurred between the liability and equity components was based on their relative values. Issuance costs attributable to the liability component are being amortized over the contractual term of the Notes.
Effective January 1, 2022, the Company adopted ASU 2020-06. As a result, the Notes are each accounted for as a single liability measured at its amortized cost, as no other embedded features require bifurcation and recognition as derivatives, thereby eliminating the subsequent amortization of the debt discount as interest expense. For further details on the ASU 2020-06 adoption, refer to Recent Accounting Pronouncements section below.
Transactions involving contemporaneous exchanges of cash between the same debtor and creditor in connection with the issuance of a new debt obligation and satisfaction of an existing debt obligation by the debtor are evaluated as a modification or an exchange transaction depending on whether the exchange is determined to have substantially different terms. For exchange transactions that are considered an extinguishment of debt, the total consideration for such an exchange is separated into liability and equity components by estimating the fair value of a similar liability without a conversion option and assigning the residual value to the equity component. The gain or loss on extinguishment of the debt is subsequently determined by comparing repurchase consideration allocated to the liability component to the sum of the carrying value of the liability component, net of the proportionate amounts of unamortized debt discount and remaining unamortized debt issuance costs.
Goodwill and Intangible Assets
Goodwill represents the excess of the purchase price of an acquired business over the fair value of the net tangible and identifiable intangible assets acquired. The carrying amount of goodwill is reviewed for impairment at least annually, in the fourth quarter, or whenever events or changes in circumstances indicate that the carrying value may not be recoverable. At December 31, 2023 and 2022, the Company had a single operating segment and reporting unit structure. As part of the annual goodwill impairment test, the Company first performs a qualitative assessment to determine whether further impairment testing is necessary. If, as a result of the qualitative assessment, it is more likely than not that the fair value of the reporting unit is less than its carrying amount, the quantitative impairment test will be required. If the Company has determined it necessary to perform a quantitative impairment assessment, the Company will compare the fair value of the reporting unit with its carrying amount and recognize an impairment charge for the amount by which the carrying amount exceeds the reporting unit’s fair value, limited to the total amount of goodwill of the reporting unit. The Company did not recognize any goodwill impairment charges for any of the periods presented.
Intangible assets are carried at cost, net of accumulated amortization. Intangible assets are amortized on a straight-line basis over their estimated useful lives. The Company estimates the useful life by estimating the expected period of economic benefit. The estimated useful life of the Company’s acquired developed technology and trade name intangible assets is two years and the estimated useful life of the Company's acquired customer relations intangible assets is eight years.
Indefinite lived intangibles are assessed annually for impairment, which includes an assessment of whether there were any triggering events that required an impairment assessment of the Company’s definite lived intangible assets, and whether it was more likely than not that the Company’s indefinite lived intangible asset was impaired. The Company performed an evaluation for impairment and determined there were no impairments for the years ended December 31, 2023, 2022, and 2021.
Impairment of Long-Lived Assets
The Company evaluates long-lived assets, which include depreciable tangible assets, for impairment whenever events or changes in circumstances indicate that the carrying value of long-lived assets may not be recoverable. The recoverability of these assets is measured by comparing the carrying amounts to the future undiscounted cash flows these assets are expected to generate. The Company recognizes an impairment in the event the carrying amount of such assets exceeds the fair value attributable to such assets. There were no events or changes in circumstances that indicated the long-lived assets were impaired during any of the periods presented.
Operating Leases
The Company enters into lease arrangements for real estate assets related to office space and for co-location assets related to space and equipment located in co-location facilities. The Company determines if an arrangement is, or contains, a lease at its inception by assessing whether there is an identified asset and whether the arrangement conveys the right to control the use of the identified asset in exchange for consideration for a period of time. All of the Company's leases are classified as operating leases. At lease commencement, the Company recognizes right-of-use assets, operating lease liabilities, and operating lease liabilities, noncurrent in the Company’s consolidated balance sheets, with the exception of short-term leases with an original term of 12 months or less. Right-of-use assets represent the Company's right to use an underlying asset for the lease term including any renewal options that it is reasonably certain to exercise. The Company generally uses the base, non-cancelable lease term when initially recognizing the right-of-use assets and lease liabilities, unless it is reasonably certain that a renewal or termination option will be exercised. A lease may be modified subsequent to its initial measurement for changes in reasonably certain holding period related to significant events. Such events include, but are not limited to, significant leasehold improvements, and points in time when the Company elects to exercise an option that it was not previously reasonably certain to exercise. Operating lease liabilities represent the present value of the Company's obligation to make payments arising from the lease. Right-of-use assets are initially measured based on the corresponding lease liability adjusted for (i) payments made to the lessor at or before the commencement date, (ii) initial direct costs incurred and (iii) tenant incentives received, incurred or payable under the lease. Right-of-use assets are periodically reviewed for impairment. Lease liabilities are initially measured at the present value of total minimum lease payments not yet paid. As the implicit rate of the Company's leases is not determinable, the Company uses an incremental borrowing rate (IBR) based on the information available at the lease commencement date in determining the present value of lease payments. Minimum lease payments consist of the fixed payments under the arrangement and variable payments that depend on an underlying index or rate, less any lease incentives such as tenant improvement allowances not yet received at commencement date. Variable lease costs that do not depend on an index or a rate are expensed as incurred and not included within the calculation of right-of-use assets and lease liabilities. The Company's operating lease arrangements contain both lease and non-lease components. At inception of an arrangement for co-location assets related to space and equipment located in co-location facilities, the Company allocates the consideration to the lease and non-lease components and recognizes a right-of-use asset and corresponding lease liability for only the lease components. Lease expense for operating leases is recognized on a straight-line basis over the term of the lease.
Legal Contingencies
The Company accrues a liability for an estimated loss for legal contingencies if the potential loss from any claim or legal proceeding is considered probable, and the amount can be reasonably estimated. The Company believes there are no legal proceedings pending that could have, individually or in the aggregate, a material adverse effect on its results of operations or financial condition.
Net Loss per Share Attributable to Common Stockholders
Basic and diluted net loss per share attributable to common stockholders is presented in conformity with the two-class method required for multiple classes of common stock and participating securities. The Company considers any shares issued on the early exercise of stock options subject to repurchase to be participating securities
because holders of such shares have nonforfeitable dividend rights in the event a dividend is paid on common stock. Under the two-class method, net income is attributed to common stockholders and participating securities based on their participation rights. The holders of early exercised shares subject to repurchase do not have a contractual obligation to share in the losses of the Company. As such, the Company’s net losses for the years ended December 31, 2023, 2022, and 2021 were not allocated to these participating securities. The rights, including the liquidation and dividend rights, of the Class A common stock and Class B common stock are substantially identical, other than voting rights. Accordingly, the Class A common stock and Class B common stock share proportionately in the Company’s net losses.
Under the two-class method, basic net loss per share attributable to common stockholders is computed by dividing the net loss attributable to common stockholders by the weighted-average number of shares of common stock outstanding during the period, less shares subject to repurchase. Vested RSUs that have not been settled have been included in the appropriate common share class used to calculate basic net loss per share.
Diluted net loss per share attributable to common stockholders adjusts basic net loss per share for the effect of dilutive securities, including awards under the Company's equity incentive plans. As the Company has reported losses for all periods presented, all potentially dilutive securities are antidilutive and accordingly, basic net loss per share equals diluted net loss per share.
Segment and Geographic Information
The Company has one reportable and operating segment. Financial information about the Company’s operating segment and geographic areas is presented in Note 14 to these consolidated financial statements.
Recent Accounting Pronouncements
Recently Adopted Accounting Pronouncements
The Company adopted 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), effective January 1, 2022 using the modified retrospective method and therefore financial information for periods before January 1, 2022 were not impacted. 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 was 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 Financial Accounting Standards Board (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 consolidated financial statements.
v3.24.0.1
Revenue
 12 Months Ended
Dec. 31, 2023
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 years ended December 31, 2023, 2022, and 2021.
The following table summarizes the revenue by region based on the billing address of customers who have contracted to use the Company’s global network and products:
Year Ended December 31,
202320222021
(dollars in thousands)
AmountPercentage
of Revenue		AmountPercentage
of Revenue		AmountPercentage
of Revenue
United States$678,184 52 %$515,722 53 %$342,578 52 %
Europe, Middle East, and Africa
356,569 28 %258,291 26 %172,129 26 %
Asia Pacific168,826 13 %133,353 14 %96,537 15 %
Other93,166 7 %67,875 7 %45,182 7 %
Total$1,296,745 100 %$975,241 100 %$656,426 100 %
The following table summarizes the revenue from contracts by type of customer:
Year Ended December 31,
202320222021
(dollars in thousands)
AmountPercentage
of Revenue		AmountPercentage
of Revenue		AmountPercentage
of Revenue
Channel partners
$202,404 16 %$122,522 13 %$73,802 11 %
Direct customers
1,094,341 84 %852,719 87 %582,624 89 %
Total$1,296,745 100 %$975,241 100 %$656,426 100 %
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 years ended December 31, 2023, 2022, and 2021 the Company recognized revenue of $220.0 million, $116.0 million, and $55.3 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:
Year Ended December 31,
202320222021
(in thousands)
Beginning balance$93,145 $70,320 $44,176 
Capitalization of contract acquisition costs
101,465 67,940 55,411 
Amortization of deferred contract acquisition costs
(61,374)(45,115)(29,267)
Ending balance$133,236 $93,145 $70,320 
The Company did not recognize any impairment losses of deferred contract acquisition costs during the periods presented.
Remaining Performance Obligations
As of December 31, 2023, the aggregate amount of the transaction price allocated to remaining performance obligations was $1,244.6 million. As of December 31, 2023, the Company expected to recognize 73% of its remaining performance obligations as revenue over the next 12 months with the remainder recognized thereafter.
v3.24.0.1
Fair Value Measurements
 12 Months Ended
Dec. 31, 2023
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 December 31, 2023 and 2022.
(in thousands)    Reported as:
December 31, 2023Amortized
Cost		Unrealized
Gain		Unrealized
(Loss)		Fair ValueCash & Cash EquivalentsAvailable-for-sale SecuritiesRestricted Cash (Current and Non-Current)
Cash$51,189 $— $— $51,189 $46,829 $— $4,360 
Level I:
Money market funds
40,035 — — 40,035 40,035 — — 
Level II:
Corporate bonds
312,510 718 (378)312,850 — 312,850 — 
U.S. treasury securities
1,020,167 2,344 (544)1,021,967 — 1,021,967 — 
U.S. government agency securities
84,154 14 (96)84,072 — 84,072 — 
Commercial paper
167,989 2 — 167,991 — 167,991 — 
Subtotal
1,584,820 3,078 (1,018)1,586,880 — 1,586,880 — 
Total assets measured at fair value on a recurring basis
$1,676,044 $3,078 $(1,018)$1,678,104 $86,864 $1,586,880 $4,360 
(in thousands)Reported as:
December 31, 2022Amortized
Cost		Unrealized
Gain		Unrealized
(Loss)		Fair ValueCash & Cash EquivalentsAvailable-for-sale SecuritiesRestricted Cash (Current and Non-Current)
Cash$87,719 $— $— $87,719 $77,164 $— $10,555 
Level I:
Money market funds
125,450 — — 125,450 124,979 — 471 
Level II:
Corporate bonds
258,617 46 (2,621)256,042 2,035 254,007 — 
U.S. treasury securities
818,379 20 (9,233)809,166 — 809,166 — 
U.S. government agency securities
25,283 — (31)25,252 — 25,252 — 
Commercial paper
357,334 — — 357,334 — 357,334 — 
Subtotal
1,459,613 66 (11,885)1,447,794 2,035 1,445,759 — 
Total assets measured at fair value on a recurring basis
$1,672,782 $66 $(11,885)$1,660,963 $204,178 $1,445,759 $11,026 
Included in prepaid expenses and other current assets on the December 31, 2022 consolidated balance sheet was $37.5 million of proceeds receivable resulting from maturities of US government agency securities that were initiated on December 31, 2022 and settled on January 3, 2023.
As of December 31, 2023, the Company had $4.4 million in total restricted cash, mainly related to irrevocable standby letters of credit and bank guarantees that are required under lease agreements and indemnity holdback consideration associated with asset acquisitions.
As of December 31, 2022, the Company had $11.0 million in total restricted cash, mainly related to indemnity holdback consideration associated with business combinations. For further details on the indemnity holdback, refer to Note 13 to these 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 December 31, 2023 and 2022. Realized gains and losses, net of tax, were not material for December 31, 2023, 2022 and 2021, respectively.
The amortized cost of available-for-sale investments with maturities less than one year was $1,185.1 million and $1,251.6 million as of December 31, 2023 and 2022, respectively. The amortized cost of available-for-sale investments with maturities greater than one year was $399.7 million and $205.9 million as of December 31, 2023 and 2022, respectively.
As of December 31, 2023, net unrealized gain on investments were $2.0 million and were included in accumulated other comprehensive income on the consolidated balance sheet. As of December 31, 2022, net unrealized loss on investments were $11.9 million net of tax and were included in accumulated other comprehensive income on the consolidated balance sheet. 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 December 31, 2023, 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 consolidated balance sheets and presents that fair value for disclosure purposes only. As of December 31, 2023, the fair value of the 2026 Notes was $1,171.4 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 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 December 31, 2023 and December 31, 2022.
v3.24.0.1
Balance Sheet Components
 12 Months Ended
Dec. 31, 2023
Organization, Consolidation and Presentation of Financial Statements [Abstract]  
Balance Sheet Components Balance Sheet Components
Accounts Receivable, Net
Activity in the allowance for doubtful accounts was as follows:
Year Ended December 31,
202320222021
(in thousands)
Beginning balance$3,134 $2,644 $1,703 
Provision for bad debt13,641 4,836 3,735 
Write-off of uncollectible accounts receivable(10,779)(4,346)(2,794)
Ending balance$5,996 $3,134 $2,644 
Property and Equipment, Net
Property and equipment, net consisted of the following:
December 31,
20232022
(in thousands)
Property and equipment:
Servers—network infrastructure$330,295 $239,828 
Construction in progress45,557 72,827 
Capitalized internal-use software75,163 88,541 
Office and computer equipment32,043 30,577 
Office furniture9,003 6,547 
Software5,422 5,962 
Leasehold improvements42,984 20,392 
Asset retirement obligation826 827 
Gross property and equipment541,293 465,501 
Less accumulated depreciation and amortization(218,480)(178,901)
Total property and equipment, net$322,813 $286,600 
Depreciation and amortization expense on property and equipment for the years ended December 31, 2023, 2022, and 2021 was $113.4 million, $84.8 million, and $62.3 million, respectively. This includes amortization expense for capitalized internal-use software which totaled $21.5 million, $20.2 million, and $17.9 million for the years ended December 31, 2023, 2022, and 2021, respectively.
Goodwill
As of December 31, 2023 and 2022, the Company's goodwill was $148.0 million. During the year ended December 31, 2022, the Company recorded $5.0 million and $120.8 million of goodwill in connection with the acquisitions of Vectrix Security, Inc. (Vectrix) and Area 1 Security, Inc. (Area 1), respectively. The Company recorded immaterial purchase accounting adjustments to Vectrix and Area 1 to revise purchase consideration and goodwill during the year ended December 31, 2022. For further details on these acquisitions, refer to Note 13 to these consolidated financial statements. No goodwill impairments were recorded during the years ended December 31, 2023 and 2022.
Acquired Intangible Assets, Net
Acquired intangible assets, net consisted of the following:
December 31, 2023
Gross Carrying
Amount		Accumulated
Amortization		Net Book
Value
(in thousands)
Developed technology$47,183 $36,893 $10,290 
Trade name1,700 1,488 212 
Customer relationships11,600 2,538 9,062 
Total acquired intangible assets, net$60,483 $40,919 $19,564 
December 31, 2022
Gross Carrying
Amount		Accumulated
Amortization		Net Book
Value
(in thousands)
Developed technology$40,100 $19,191 $20,909 
Trade name1,700 638 1,062 
Customer relationships11,600 1,088 10,512 
Total acquired intangible assets, net$53,400 $20,917 $32,483 
During the three months ended December 31, 2023, the Company acquired developed technology of $7.1 million for a combination of cash payments of $6.1 million and cash holdback of $1.0 million, which the Company is retaining for up to 12 months and will be payable to the seller, subject to offset by the Company for any of the seller’s indemnification obligations in connection with the asset acquisition.
Amortization of acquired intangible assets for the years ended December 31, 2023, 2022, and 2021 was $20.0 million, $15.2 million, and $2.9 million, respectively.
As of December 31, 2023, the estimated future amortization expense of acquired intangible assets was as follows:
Estimated
Amortization
(in thousands)
Year ending December 31,
2024$9,010 
2025
4,391 
2026
1,450 
2027
1,450 
2028
1,450 
Thereafter1,813 
Total$19,564 
v3.24.0.1
Leases
 12 Months Ended
Dec. 31, 2023
Leases [Abstract]  
Leases Leases
The Company's lease portfolio consists of real estate and co-location agreements in the United States and internationally. The real estate leases include leases for office space and have remaining lease terms of up to 7.6 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 7.9 years. All of the Company's leases are classified as operating leases.
During the three months ended December 31, 2023, the Company entered a lease agreement (the Lisbon Lease) for 6,000 square meter of office space in Lisbon, Portugal. The Lisbon Lease has an accounting lease term of 84 months plus an option to renew for 12 months at 100% market rate. At lease commencement, it was not reasonably certain the renewal option will be exercised. The total fixed payments per the terms of the Lisbon Lease are approximately $15.7 million plus the Company's share of operating costs for the maturity of the lease.
On July 6, 2021, the Company entered a triple net lease (the Austin Lease) for 128,195 square feet of office space in Austin, Texas. The Austin Lease has an accounting lease term of 121 months plus two options to renew for five years each at 100% market rate. At lease commencement, it was not reasonably certain that these renewal options will be exercised. The total fixed payments per the terms of the Austin Lease are approximately $46.2 million plus the Company's share of operating costs for the maturity of the lease.
During the year ended December 31, 2021, the reasonably certain holding period for three real estate leases was modified as the Company became reasonably certain that the renewal options for these agreements would be exercised. The reasonably certain holding period for these leases increased by their respective renewal term
lengths, which amounted to an additional undiscounted cash payment of $53.8 million based on the terms of their existing agreements.
The Company subleased one of its leased office spaces. The lease term of the sublease terminated during the year ended December 31, 2021. Sublease income, which is recorded as a reduction of rent expense, was $1.1 million for the year ended December 31, 2021.
The components of lease cost related to the Company's operating leases included in the consolidated statements of operations were as follows:
Year Ended December 31,
202320222021
(in thousands)
Operating lease cost$44,792 $36,332 $25,091 
Sublease income— — (1,096)
Total lease cost$44,792 $36,332 $23,995 
Variable lease cost and short-term lease cost for the years ended December 31, 2023, 2022, and 2021, were not material.
As of December 31, 2023, the Company had $35.9 million of total undiscounted future payments under operating leases that have not yet commenced, which were not included on the consolidated balance sheet. These operating leases will commence between January 2024 and July 2026 and have an average lease term of 3.7 years.
As of December 31, 2023 and 2022, the weighted-average remaining term of the Company’s operating leases was 4.9 years and 5.4 years, respectively, and the weighted-average discount rate used to measure the present value of the operating lease liabilities was 4.6% and 4.0%, respectively.

Maturities of the operating lease liabilities as of December 31, 2023 are as follows:
December 31, 2023
(in thousands)
2024$43,921 
202534,212 
202630,003 
202725,654 
202814,479 
Thereafter21,302 
Total lease payments$169,571 
Less: Imputed interest$(17,730)
Total operating lease liabilities$151,841 
Maturities of the operating lease liabilities as of December 31, 2022 were as follows:
December 31, 2022
(in thousands)
2023$33,902 
202432,525 
202525,340 
202622,242 
202719,172 
Thereafter24,864 
Total lease payments$158,045 
Less: Imputed interest$(17,146)
Total operating lease liabilities$140,899 
Leases Leases
The Company's lease portfolio consists of real estate and co-location agreements in the United States and internationally. The real estate leases include leases for office space and have remaining lease terms of up to 7.6 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 7.9 years. All of the Company's leases are classified as operating leases.
During the three months ended December 31, 2023, the Company entered a lease agreement (the Lisbon Lease) for 6,000 square meter of office space in Lisbon, Portugal. The Lisbon Lease has an accounting lease term of 84 months plus an option to renew for 12 months at 100% market rate. At lease commencement, it was not reasonably certain the renewal option will be exercised. The total fixed payments per the terms of the Lisbon Lease are approximately $15.7 million plus the Company's share of operating costs for the maturity of the lease.
On July 6, 2021, the Company entered a triple net lease (the Austin Lease) for 128,195 square feet of office space in Austin, Texas. The Austin Lease has an accounting lease term of 121 months plus two options to renew for five years each at 100% market rate. At lease commencement, it was not reasonably certain that these renewal options will be exercised. The total fixed payments per the terms of the Austin Lease are approximately $46.2 million plus the Company's share of operating costs for the maturity of the lease.
During the year ended December 31, 2021, the reasonably certain holding period for three real estate leases was modified as the Company became reasonably certain that the renewal options for these agreements would be exercised. The reasonably certain holding period for these leases increased by their respective renewal term
lengths, which amounted to an additional undiscounted cash payment of $53.8 million based on the terms of their existing agreements.
The Company subleased one of its leased office spaces. The lease term of the sublease terminated during the year ended December 31, 2021. Sublease income, which is recorded as a reduction of rent expense, was $1.1 million for the year ended December 31, 2021.
The components of lease cost related to the Company's operating leases included in the consolidated statements of operations were as follows:
Year Ended December 31,
202320222021
(in thousands)
Operating lease cost$44,792 $36,332 $25,091 
Sublease income— — (1,096)
Total lease cost$44,792 $36,332 $23,995 
Variable lease cost and short-term lease cost for the years ended December 31, 2023, 2022, and 2021, were not material.
As of December 31, 2023, the Company had $35.9 million of total undiscounted future payments under operating leases that have not yet commenced, which were not included on the consolidated balance sheet. These operating leases will commence between January 2024 and July 2026 and have an average lease term of 3.7 years.
As of December 31, 2023 and 2022, the weighted-average remaining term of the Company’s operating leases was 4.9 years and 5.4 years, respectively, and the weighted-average discount rate used to measure the present value of the operating lease liabilities was 4.6% and 4.0%, respectively.

Maturities of the operating lease liabilities as of December 31, 2023 are as follows:
December 31, 2023
(in thousands)
2024$43,921 
202534,212 
202630,003 
202725,654 
202814,479 
Thereafter21,302 
Total lease payments$169,571 
Less: Imputed interest$(17,730)
Total operating lease liabilities$151,841 
Maturities of the operating lease liabilities as of December 31, 2022 were as follows:
December 31, 2022
(in thousands)
2023$33,902 
202432,525 
202525,340 
202622,242 
202719,172 
Thereafter24,864 
Total lease payments$158,045 
Less: Imputed interest$(17,146)
Total operating lease liabilities$140,899 
v3.24.0.1
Debt
 12 Months Ended
Dec. 31, 2023
Debt Disclosure [Abstract]  
Debt Debt
2026 Convertible Senior Notes
In August 2021, the Company issued $1,293.8 million aggregate principal amount of 0% Convertible Senior Notes due 2026 (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 (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 quarter ended December 31, 2023.
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.
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 December 31, 2023, 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 consolidated balance sheets.
2025 Convertible Senior Notes
In May 2020, the Company issued $575.0 million aggregate principal amount of 0.75% Convertible Senior Notes due 2025 (the 2025 Notes and together with the 2026 Notes, the Notes).The 2025 Notes were senior unsecured obligations of the Company, with interest payable semi-annually in arrears, at a rate of 0.75% per year.
The 2025 Notes were 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 was 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 Indenture dated May 15, 2020 (the 2025 Indenture). After the closing of the transactions described below, no 2025 Notes were outstanding as of December 31, 2023.
During the fiscal year ended December 31, 2021, the Company exchanged approximately $400.0 million 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 approximately $1,321.0 million. 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.
During the fiscal year ended December 31, 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 approximately 0.3 million shares of the Company's Class A common stock for the remainder of the conversion value in excess of the aggregate principal amount converted. 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 consolidated balance sheets.
During the three months ended June 30, 2023, the Company repurchased $123.0 million principal amount of the 2025 Notes (the 2025 Notes Repurchases) for approximately $172.7 million in cash, including approximately $0.5 million of accrued interest. The 2025 Notes Repurchases resulted in a $50.3 million loss on extinguishment of debt, of which $1.1 million consisted of unamortized debt issuance costs.
During the three months ended September 30, 2023, the Company settled conversions of approximately $35.4 million aggregate principal amount of the 2025 Notes. These conversions were exercised by the holders of the 2025 Notes in connection with the Company's issuance of a redemption notice. Pursuant to the terms of the 2025 Indenture, the conversion rate then in effect was 28.5913 shares of the Company's Class A common stock per $1,000 principal amount of the 2025 Notes, inclusive of 1.8726 additional shares added to the initial conversion rate. 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 approximately 0.5 million shares of the Company's Class A common stock for the remainder of the conversion value in excess of the aggregate principal amount converted. 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 consolidated balance sheets. As a result of this transaction, no 2025 Notes were outstanding as of December 31, 2023.
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 December 31, 2023, 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 February 21, 2024, 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 consolidated balance sheets.
The net carrying amounts of the Notes were as follows:
December 31, 2023December 31, 2022
2026 Notes2025 Notes2026 Notes2025 Notes
(in thousands)
Principal$1,293,750 $— $1,293,750 $158,429 
Unamortized debt issuance costs(10,388)— (14,348)(1,639)
Carrying amount, net$1,283,362 $— $1,279,402 $156,790 
The following tables set forth total interest expense recognized related to the Notes:
Year Ended December 31,
202320222021
2026 Notes2025 Notes2026 Notes2025 Notes2026 Notes2025 Notes
(in thousands)
Coupon interest expense$— $477 $— $1,201 $— $3,162 
Amortization of debt discount(1)
— — — — 17,971 25,834 
Amortization of debt issuance costs3,960 559 3,958 701 1,184 1,185 
Total$3,960 $1,036 $3,958 $1,902 $19,155 $30,181 
(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 consolidated financial statements.
v3.24.0.1
Commitments and Contingencies
 12 Months Ended
Dec. 31, 2023
Commitments and Contingencies Disclosure [Abstract]  
Commitments and Contingencies Commitments and Contingencies
Purchase Commitments
Open purchase commitments are for the purchase of goods and services under non-cancelable contracts. They are not recorded as liabilities on the consolidated balance sheet as of December 31, 2023 as the Company has not yet received the related goods and services. Refer to the table below for purchase commitments under non-cancelable contracts with various vendors as of December 31, 2023.
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 consolidated statements of operations and as sales and marketing expense in the consolidated statements of operations for free customers. Such costs totaled $143.8 million, $119.0 million, and $77.1 million for the years ended December 31, 2023, 2022, and 2021, respectively. 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 December 31, 2023. For the lease components of co-location agreements, refer to Note 6 to these consolidated financial statements.
Payments Due by Period as of December 31, 2023
Total20242025202620272028Thereafter
(in thousands)
Non-cancelable:
Open purchase agreements(1)
$85,540 $28,635 $44,786 $5,647 $2,495 $749 $3,228 
Bandwidth and other co-location related commitments(2)
113,284 46,380 28,325 17,965 13,443 5,406 1,765 
Other commitments(3)
1,000 1,000 — — — — — 
Total$199,824 $76,015 $73,111 $23,612 $15,938 $6,155 $4,993 
(1)Open purchase commitments are for the purchase of goods and services under non-cancelable contracts. They were not recorded as liabilities on the consolidated balance sheet as of December 31, 2023 as the Company had not yet received the related goods and 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 consolidated balance sheet as of December 31, 2023.
(3)Indemnity holdback consideration associated with asset acquisitions. See Note 5.
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 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. 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 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.
v3.24.0.1
Common Stock
 12 Months Ended
Dec. 31, 2023
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 December 31, 2023 and 2022, 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 298,088,556 and 286,560,947 shares of Class A common stock issued and outstanding as of December 31, 2023 and 2022, respectively. The number of shares of Class B common stock issued and outstanding was 39,443,337 and 43,524,514, as of December 31, 2023 and 2022, 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 December 31, 2023 and 2022, 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 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:
December 31,
20232022
(in thousands)
2025 Notes— 5,503 
2026 Notes10,311 10,311 
Stock options issued and outstanding12,523 15,886 
Remaining shares available for issuance under the 2019 Plan
56,442 44,693 
Outstanding and unsettled RSUs
10,894 10,196 
Shares available for issuance under the ESPP13,844 10,990 
Total shares of common stock reserved104,014 97,579 
v3.24.0.1
Stock-based Compensation
 12 Months Ended
Dec. 31, 2023
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, 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 initial public offering (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 during the periods presented:
Stock Options Outstanding
(in thousands, except year and per share data)
Shares Subject
to Options
Outstanding		Weighted-
Average
Exercise Price
per Option		Weighted-
Average
Remaining
Contractual
Terms (in years)		Aggregate
Intrinsic Value
Balances as of December 31, 202018,186 $3.92 7.0$1,310,650 
Options granted100 $137.17 
Options exercised(4,455)$4.83 $503,243 
Options canceled/forfeited/expired(228)$2.67 
Balances as of December 31, 202113,603 $12.47 6.0$1,726,440 
Options granted5,733 $97.71 
Options exercised(2,484)$4.08 $180,990 
Options canceled/forfeited/expired(966)$74.88 
Balances as of December 31, 202215,886 $34.21 6.3$451,782 
Options granted 1,290 $51.21 
Options exercised (2,989)$4.96 $171,225 
Options canceled/forfeited/expired (1,664)$62.62 
Balances as of December 31, 202312,523 $21.03 5.7$787,633 
Vested and expected to vest as of December 31, 202312,521 $21.03 5.7$787,469 
Exercisable as of December 31, 20237,534 $4.15 3.8$601,503 
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 401,212 and 2,728,545 options that were unvested as of December 31, 2023 and 2022, respectively.
The total grant date fair value for vested options in the years ended December 31, 2023, 2022, and 2021 was $15.5 million, $12.5 million, and $14.0 million, respectively.
As of December 31, 2023, there was $195.8 million of unrecognized stock-based compensation expense related to unvested stock options that is expected to be recognized over a weighted-average period of 4.3 years.
During the year ended December 31, 2022, the Company granted to certain executive officers and other key employees 10-year stock options with market conditions that vest and become 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 Performance Options). The Performance Options were granted under the 2019 Plan and consist of 10-year options to purchase an aggregate of 5,575,000 shares of the Company’s Class A common stock.
In April 2023, the Company's Compensation Committee and Board of Directors approved amendments to the Performance Options, effective as of May 1, 2023. These amendments reduced the exercise price per share of the Performance Options to the fair market value per share of the Company's Class A common stock on the effective date of the amendment, and modified the structure of the Performance Options to contain a total of nine separate tranches with added stock price milestones. These amendments resulted in an additional stock-based compensation expense of approximately $25.8 million to be recognized over a weighted-average requisite service period.
During the year ended December 31, 2023, the Company granted Performance Options to purchase an aggregate of 1,290,000 shares of the Company’s Class A common stock to newly-hired, key employees.
In January 2024, the Company achieved the stock price milestone for the first tranche of 224,250 Performance Options. Following the achievement of the milestone, the first tranche shares are subject to six quarterly vesting on a ratable basis. Approximately 37,000 tranche shares vested in February 2024.
The weighted-average assumptions used to determine the fair value of the Performance Options during the years ended December 31, 2023 and December 31, 2022 were as follows:
Year ended December 31,
20232022
Expected term (in years)10.009.83
Expected volatility63.7 %59.5 %
Risk-free interest rate3.9 %3.0 %
Dividend yield— — 
The weighted-average grant date fair value of the Performance Options was $52.13 and $55.80 per share for the years ended December 31, 2023 and December 31, 2022, respectively.
The Company recognizes stock-based compensation expense for the Performance Options based on the grant date fair value and using a graded attribution method over the weighted-average requisite service period. The total stock-based compensation expense for the Performance Options for the years ended December 31, 2023 and December 31, 2022 were $33.5 million and $39.5 million, respectively. As of December 31, 2023, there was $187.9 million of unrecognized stock-based compensation expense related to the Performance Options that is expected to be recognized over a weighted-average period of 4.4 years.
In connection with the acquisition of Area 1 Security, Inc. (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 generally 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.
The weighted-average assumptions used to determine the fair value of the Assumed Area 1 Stock Options during the year ended December 31, 2022 were as follows:
Year ended December 31,
2022
Expected term (in years)2.3
Expected volatility66.7 %
Risk-free interest rate2.5 %
Dividend yield— 
The total stock-based compensation expense for the Assumed Area 1 Stock Options for the year ended December 31, 2023 was not material.
As of December 31, 2023, there was $5.0 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 1.6 years.
For further details on the Area 1 acquisition, refer to Note 13 to these consolidated financial statements.
The weighted-average assumptions used to determine the fair value of stock options granted during the year ended December 31, 2021, were as follows:
Year ended December 31,
2021
Expected term (in years)6.0
Expected volatility59.6% 
Risk-free interest rate1.3% 
Dividend yield— 
The weighted-average grant date fair value of options granted during the year ended December 31, 2021, was $90.50 per share.
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.
RSU activity under the 2019 Plan and the 2010 Plan for the year ended December 31, 2023 was as follows:
Restricted Stock and RSUs*
Weighted-Average
Grant
Date Fair Value
(in thousands, except per share data)
Unvested and outstanding as of December 31, 20208,650 $21.41 
Granted - RSUs2,203 $108.87 
Granted - Restricted stock48 $167.69 
Vested - RSUs(2,734)$21.17 
Vested - Restricted stock(9)$— 
Forfeited(681)$29.78 
Unvested as of December 31, 20217,456 $47.36 
Vested and not yet released— $— 
Outstanding as of December 31, 20217,456 $47.36 
Granted - RSUs6,367 $67.13 
Granted - Restricted stock52 $100.29 
Vested - RSUs(2,848)$38.49 
Vested - Restricted stock(668)$19.96 
Forfeited (779)$64.83 
Unvested as of December 31, 20229,580 $61.64 
Vested and not yet released— $— 
Outstanding as of December 31, 20229,580 $61.14 
Granted - RSUs6,428 $62.24 
Vested - RSUs(3,689)$56.75 
Forfeited - RSUs(1,161)$65.87 
Unvested as of December 31, 2023*
10,894 $65.93 
Vested and not yet released*
— $— 
Outstanding as of December 31, 2023*
10,894 $65.93 
*Restricted stock did not have a material impact on the Company’s consolidated financial statements for the fiscal years ended December 31, 2023 or 2022. Effective January 1, 2023, this table discloses RSU activity only.
The total grant date fair value for vested RSUs were $209.4 million, $109.6 million, and $57.9 million for the years ended December 31, 2023, 2022 and 2021, respectively. The total stock-based compensation expense for RSUs were $219.6 million, $137.4 million, and $71.7 million for the years ended December 31, 2023, 2022 and 2021, respectively. As of December 31, 2023, the total unrecognized stock-based compensation expense related to RSUs was $635.7 million that is expected to be recognized over a weighted-average period of 2.9 years.
2019 Employee Stock Purchase Plan
In September 2019, the Company's Board of Directors adopted and stockholders approved the 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 in November and May of each year 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 years ended December 31, 2023 and 2022, respectively, 447,042 and 302,795 shares of Class A common stock were purchased under the ESPP. As of December 31, 2023, the total unrecognized stock-based compensation expense related to the ESPP was $3.2 million and is expected to be recognized over a weighted-average period of 0.4 years.
The weighted-average assumptions used to determine the fair value of the ESPP during the periods presented were as follows:    
Year ended December 31,
202320222021
Expected term (in years)0.50.50.5
Risk-free interest rate5.2 %3.3 %0.1 %
Expected volatility68.9 %100.6 %58.9 %
Dividend yield— — — 
Stock-based Compensation Expense
The following table sets forth the total stock-based compensation expense included in the Company’s consolidated statements of operations:
Year Ended December 31,
202320222021
(in thousands)
Cost of revenue$7,967 $6,251 $2,583 
Sales and marketing73,682 50,317 27,277 
Research and development132,417 103,276 44,196 
General and administrative59,923 42,933 16,081 
Total stock-based compensation expense$273,989 $202,777 $90,137 
v3.24.0.1
Net Loss per Share Attributable to Common Stockholders
 12 Months Ended
Dec. 31, 2023
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:

Year Ended December 31,

202320222021
Class AClass BClass AClass BClass AClass B
(in thousands, except per share data)
Net loss attributable to common stockholders
$(161,296)$(22,653)$(167,770)$(25,611)$(219,939)$(40,370)
Weighted-average shares used in computing net loss per share attributable to common stockholders, basic and diluted
292,568 41,088 283,114 43,218 263,884 48,437 
Net loss per share attributable to common stockholders, basic and diluted
$(0.55)$(0.55)$(0.59)$(0.59)$(0.83)$(0.83)
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:
December 31,
202320222021
(in thousands)
2025 Notes
— 4,233 4,676 
2026 Notes6,762 6,761 6,762 
Shares subject to repurchase
38 900 2,129 
Unexercised stock options
12,523 15,886 13,603 
Unvested restricted stock and RSUs
10,932 10,273 7,417 
Shares issuable pursuant to the ESPP189 248 62 
Total
30,444 38,301 34,649 
v3.24.0.1
Income Taxes
 12 Months Ended
Dec. 31, 2023
Income Tax Disclosure [Abstract]  
Income Taxes Income Taxes
The components of the Company's loss before income taxes for the years ended December 31, 2023, 2022, and 2021 were as follows:
Year Ended December 31,
202320222021
(in thousands)
Domestic$(210,547)$(219,586)$(272,995)
Foreign32,685 28,853 25,019 
Total loss before income taxes$(177,862)$(190,733)$(247,976)
The components of the Company's provision for (benefit from) income taxes for the years ended December 31, 2023, 2022, and 2021 were as follows:
Year Ended December 31,
202320222021
(in thousands)
Current expense:
Federal$513 $332 $722 
State324 1 143 
Foreign2,986 2,455 2,730 
Total current provision for income taxes$3,823 $2,788 $3,595 
Deferred expense (benefit):
Federal— (1,124)— 
State— (573)— 
Foreign2,264 1,557 8,738 
Total deferred provision for (benefit from) income taxes$2,264 $(140)$8,738 
Total provision for income taxes
$6,087 $2,648 $12,333 
A reconciliation of the U.S. federal statutory rate to the Company's effective tax rate is as follows:
Year Ended December 31,
202320222021
Expected benefit at U.S. federal statutory rate21.0 %21.0 %21.0 %
State income taxes, net of federal tax benefits(0.1)0.2 — 
Foreign income or losses taxed at different rates1.0 1.1 (2.5)
Stock-based compensation12.4 18.7 43.6 
Change in valuation allowance(30.6)(41.2)(66.4)
Withholding taxes(0.3)(0.2)(0.3)
Gain/loss on convertible senior notes
(5.1)— (0.4)
Miscellaneous permanent items(1.7)(1.0)— 
Total provision for income taxes
(3.4)%(1.4)%(5.0)%

In 2023, the difference in the Company's effective tax rate and the U.S. federal statutory tax rate was primarily due to the recording of a full valuation allowance on the Company's U.S. and U.K. deferred tax assets and income tax expense from profitable foreign jurisdictions.

In 2022, the difference in the Company's effective tax rate and the U.S. federal statutory tax rate was primarily due to the recording of a full valuation allowance on the Company's U.S. and U.K. deferred tax assets and income tax
expense from profitable foreign jurisdictions, offset by a partial release of the U.S. valuation allowance related to acquisitions.

In 2021, the difference in the Company's effective tax rate and the U.S. federal statutory tax rate was primarily due to the recording of a full valuation allowance on the Company's U.S. and U.K. deferred tax assets, income tax expense from profitable foreign jurisdictions, and income tax expense related to an acquisition.
The components of the Company's deferred tax assets and liabilities as of December 31, 2023 and 2022 were as follows:
Year Ended December 31,
20232022
(in thousands)
Deferred tax assets:
Net operating loss carryforwards$390,405 $373,655 
Tax credit carryforwards65,390 51,925 
Capitalized research and development expenditures71,617 36,886 
Operating lease liabilities36,609 33,790 
Business interest carryforwards1,244 15,762 
Stock-based compensation35,786 27,766 
Accrued expenses and reserves4,650 2,770 
Capitalized contract expenditures32,425 — 
Depreciation and amortization129 3 
Other2,106 919 
Gross deferred tax assets640,361 543,476 
Valuation allowance(552,165)(477,638)
Total deferred tax assets$88,196 $65,838 
Deferred tax liabilities:
Right-of-use assets(33,337)(31,586)
Deferred commissions(32,807)(23,039)
Capitalized internal-use software(3,909)(4,638)
Depreciation and amortization(25,045)(11,197)
Other(57)(73)
Total deferred tax liabilities$(95,155)$(70,533)
Net deferred tax liabilities
$(6,959)$(4,695)
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 United States and United Kingdom 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 jurisdiction as of December 31, 2023.

The worldwide valuation allowance as of December 31, 2023 and 2022 was $552.2 million and $477.6 million, respectively. The net change in the worldwide valuation allowance for the years ended December 31, 2023, 2022, and 2021 was an increase of $74.6 million, an increase of $208.1 million and an increase of $194.4 million, respectively. The increase in the Company’s valuation allowance compared to the prior year was primarily due to an increase in taxable losses generated in the United States and United Kingdom, the capitalization and amortization of research and development expenses, and the capitalization of certain customer contract expenses.
As of December 31, 2023 and 2022, the Company had net operating loss carryforwards for federal income tax purposes of $1,385.1 million and $1,338.5 million, respectively, that will begin to expire in 2029. The Company had federal research and development tax credit carryforwards as of December 31, 2023 and 2022 of $63.6 million and $49.7 million, respectively, that will begin to expire in 2029.
In addition, as of December 31, 2023 and 2022, the Company had net operating loss carryforwards for state income tax purposes of $756.1 million and $757.4 million, respectively, that will begin to expire in 2030. The Company had state research and development tax credit carryforwards as of December 31, 2023 and 2022 of $29.8 million and $25.9 million, respectively, that will begin to expire in 2039.

As of December 31, 2023 and 2022, the Company had net operating loss carryforwards for U.K. income tax purposes of $207.2 million and $178.5 million, respectively, that can be carried forward indefinitely.

As of December 31, 2023 and 2022, the Company had foreign tax credit carryforwards for federal income tax purposes of $1.8 million. The federal foreign tax credit carryforwards will expire, if not utilized, beginning in the year 2024.
Utilization of net operating losses and tax credit carryforwards may be subject to substantial annual limitations due to the ownership change limitations provided by Section 382 of the Internal Revenue Code and similar state provisions. Such a limitation could result in the expiration of the net operating loss carryforwards and tax credits before utilization.
A reconciliation of the beginning and ending amount of the Company's total gross unrecognized tax benefits was as follows:
Year Ended December 31,
202320222021
(in thousands)
Balance as of the beginning of the period$23,940 $12,590 $5,682 
Increases for tax positions related to the prior year590 5,753 1,784 
Decreases for tax positions related to the prior year(243)— — 
Additions for tax positions related to the current year4,752 5,597 5,124 
Balance as of the end of the period$29,039 $23,940 $12,590 
The Company classifies uncertain tax positions as non-current income tax liabilities unless expected to be paid within one year or otherwise directly related to an existing deferred tax asset, in which case the asset is recorded net of the uncertain tax position on the consolidated balance sheet. As of December 31, 2023, $0.3 million of the Company’s gross unrecognized tax benefits, if recognized, would affect the effective tax rate and $28.7 million would result in an adjustment to deferred tax assets with corresponding adjustments to valuation allowance. The Company does not expect significant changes to its uncertain tax positions within the next 12 months.
The Company’s policy is to recognize interest and penalties accrued on any unrecognized tax benefits as a component of income tax expense. The Company did not recognize any income tax expense related to interest and penalties in the years ended December 31, 2023, 2022, and 2021, respectively.
The Company’s significant tax jurisdictions include the United States, Australia, Canada, France, Germany, Netherlands, Portugal, Singapore, and the United Kingdom. Because of the net operating loss carryforwards, substantially all of the Company’s tax years remain open to U.S. federal and state tax examination. The Company’s foreign tax returns are open to audit under the statutes of limitations of the respective foreign countries in which the subsidiaries are located.
The Company generally does not provide deferred income taxes for the undistributed earnings of its foreign subsidiaries where the Company intends to reinvest such earnings indefinitely. Should circumstances change and it becomes apparent that some or all of the undistributed earnings will no longer be indefinitely reinvested, the Company will accrue for income taxes not previously recognized, where applicable.
v3.24.0.1
Business Combinations
 12 Months Ended
Dec. 31, 2023
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 retained for up to 12 months and was then 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 separate cash holdback of $1.1 million. The cash holdback of $9.3 million and $1.1 million were subsequently paid to the previous owners of Area 1 as of the year ended December 31, 2023. 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 consolidated financial statements for further details on the share-based awards.

The transaction-related costs for the acquisition were not material and were included in general and administrative expenses during the year ended December 31, 2022.

The fair values 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 assets953 
Acquired Intangible Assets43,300 
Goodwill119,743 
Total assets acquired165,630 
Accounts Payable(254)
Accrued expense and other current liabilities(595)
Deferred revenue(5,736)
Deferred revenue, noncurrent(1,213)
Other noncurrent liabilities(1,267)
Total purchase price$156,565 

The acquired assets and assumed liabilities were recorded at 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. An immaterial purchase accounting adjustment to revise purchase consideration and goodwill was made during the fiscal year ended December 31, 2022.

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 retained for up to 18 months and was then 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. The cash holdback of $1.3 million was subsequently paid to the previous owners of Vectrix during the year ended December 31, 2023. 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 year ended December 31, 2023 and December 31, 2022 were not material. The remaining compensation amount is not material and will be recognized through the year ended December 31, 2026.

The transaction-related costs for the acquisition were not material and are included in general and administrative expenses in the consolidated statement of operations for the year ended December 31, 2022.

The fair values of assets acquired and liabilities assumed on the acquisition date are summarized as follows (in thousands):

Developed technology$3,100 
Goodwill4,962 
Total assets acquired8,062 
Accounts Payable(20)
Other noncurrent liabilities(430)
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. An immaterial purchase accounting adjustment to revise purchase consideration and goodwill was made during the fiscal year ended December 31, 2022.

This acquisition did not have a material impact on the Company’s consolidated financial statements; therefore, historical and pro forma disclosures have not been presented.

Zaraz
On October 15, 2021, the Company acquired all of the outstanding shares of Zaraz Inc. (Zaraz), a remote-first company, that has developed a server-side rendering technology, for a total 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 compensation expense during the fiscal year ended December 31, 2021. Additional compensation expense during the year ended December 31, 2023 and December 31, 2022 were not material. The remaining compensation amount is not material and will be recognized through the year ended December 31, 2024.
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 fiscal year ended December 31, 2022.
This acquisition did not have a material impact on the Company’s consolidated financial statements; therefore, historical and pro forma disclosures have not been presented.
v3.24.0.1
Segment and Geographic Information
 12 Months Ended
Dec. 31, 2023
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 consolidated financial statements for revenue by geography.
The Company’s property and equipment, net, by geographic area were as follows:
December 31,
20232022
(in thousands)
United States$191,853 $184,753 
Rest of the world130,960 101,847 
Total property and equipment, net$322,813 $286,600 
No single country other than the United States accounted for more than 10% of total property and equipment, net as of December 31, 2023 and 2022.
v3.24.0.1
Pay vs Performance Disclosure - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2023
Dec. 31, 2022
Dec. 31, 2021
Pay vs Performance Disclosure      
Net loss $ (183,949) $ (193,381) $ (260,309)
v3.24.0.1
Insider Trading Arrangements
 3 Months Ended 12 Months Ended
Dec. 31, 2023
shares
Dec. 31, 2023
shares
Trading Arrangements, by Individual    
Non-Rule 10b5-1 Arrangement Adopted false  
Rule 10b5-1 Arrangement Terminated false  
Non-Rule 10b5-1 Arrangement Terminated false  
Matthew Prince [Member]    
Trading Arrangements, by Individual    
Material Terms of Trading Arrangement  
On November 20, 2023, Matthew Prince, our Chief Executive Officer, adopted a Rule 10b5-1 trading arrangement providing for the sale from time to time of up to 2,042,976 shares of our Class A common stock. The trading arrangement is intended to satisfy the affirmative defense in Rule 10b5-1(c). The duration of the trading arrangement is until May 15, 2025, or earlier if all transactions under the trading arrangement are completed.
Name Matthew Prince  
Rule 10b5-1 Arrangement Adopted true  
Adoption Date November 20, 2023  
Arrangement Duration 542 days  
Aggregate Available 2,042,976 2,042,976
Michelle Zatlyn [Member]    
Trading Arrangements, by Individual    
Material Terms of Trading Arrangement  
On November 27, 2023, Michelle Zatlyn, our President and Chief Operating Officer, adopted a Rule 10b5-1 trading arrangement providing for the sale from time to time of up to 1,144,373 shares of our Class A common stock including the amount of shares of Class A common stock settled, net of taxes, following the vesting and settlement of RSUs. The number of shares to be withheld, and therefore the exact number of shares to be sold pursuant to Ms. Zatlyn’s trading arrangement can only be determined upon the occurrence of the future vesting events. The trading
arrangement is intended to satisfy the affirmative defense in Rule 10b5-1(c). The duration of the trading arrangement is until May 22, 2025, or earlier if all transactions under the trading arrangement are completed.
Name Michelle Zatlyn  
Rule 10b5-1 Arrangement Adopted true  
Adoption Date November 27, 2023  
Arrangement Duration 542 days  
Aggregate Available 1,144,373 1,144,373
Thomas Seifert [Member]    
Trading Arrangements, by Individual    
Material Terms of Trading Arrangement  
On November 27, 2023, Thomas Seifert, our Chief Financial Officer, adopted a Rule 10b5-1 trading arrangement providing for the sale from time to time of 505,000 shares of our Class A common stock plus an amount of shares of Class A common stock settled, net of taxes, following the vesting and settlement of RSUs. The number of shares to be withheld, and therefore the exact number of shares to be sold pursuant to Mr. Seifert’s trading arrangement can only be determined upon the occurrence of the future vesting events. The trading arrangement is intended to satisfy the affirmative defense in Rule 10b5-1(c). The duration of the trading arrangement is until March 15, 2025, or earlier if all transactions under the trading arrangement are completed.
Name Thomas Seifert  
Rule 10b5-1 Arrangement Adopted true  
Adoption Date November 27, 2023  
Arrangement Duration 535 days  
Aggregate Available 505,000 505,000
Douglas Kramer [Member]    
Trading Arrangements, by Individual    
Material Terms of Trading Arrangement  
On November 29, 2023, Douglas Kramer, our Chief Legal Officer, adopted a Rule 10b5-1 trading arrangement providing for the sale from time to time of up to 60,000 shares of our Class A common stock. The trading arrangement is intended to satisfy the affirmative defense in Rule 10b5-1(c). The duration of the trading arrangement is until March 4, 2025, or earlier if all transactions under the trading arrangement are completed.
Name Douglas Kramer  
Rule 10b5-1 Arrangement Adopted true  
Adoption Date November 29, 2023  
Arrangement Duration 522 days  
Aggregate Available 60,000 60,000
Katrin Suder [Member]    
Trading Arrangements, by Individual    
Material Terms of Trading Arrangement  
On November 30, 2023, Katrin Suder, a member of our Board of Directors, adopted a Rule 10b5-1 trading arrangement providing for the sale from time to time of up to 2,871 shares of our Class A common stock. The trading arrangement is intended to satisfy the affirmative defense in Rule 10b5-1(c). The duration of the trading arrangement is until June 4, 2025, or earlier if all transactions under the trading arrangement are completed.
Name Katrin Suder  
Rule 10b5-1 Arrangement Adopted true  
Adoption Date November 30, 2023  
Arrangement Duration 460 days  
Aggregate Available 2,871 2,871
Maria Eitel [Member]    
Trading Arrangements, by Individual    
Material Terms of Trading Arrangement  
On November 30, 2023, Maria Eitel, a member of our Board of Directors, adopted a Rule 10b5-1 trading arrangement providing for the sale from time to time of up to 27,500 shares of our Class A common stock. The trading arrangement is intended to satisfy the affirmative defense in Rule 10b5-1(c). The duration of the trading arrangement is until March 1, 2025, or earlier if all transactions under the trading arrangement are completed.
Name Maria Eitel  
Rule 10b5-1 Arrangement Adopted true  
Adoption Date November 30, 2023  
Arrangement Duration 457 days  
Aggregate Available 27,500 27,500
v3.24.0.1
Summary of Significant Accounting Policies (Policies)
 12 Months Ended
Dec. 31, 2023
Accounting Policies [Abstract]  
Basis of Presentation Basis of PresentationThe accompanying consolidated financial statements and accompanying notes have been prepared in conformity with generally accepted accounting principles in the United States (U.S. GAAP) and include the accounts of the Company and its wholly-owned subsidiaries.
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 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 consolidated financial statements and accompanying notes to the 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, valuation of acquired intangible assets, the assessment of recoverability of intangible assets and their estimated useful lives, useful lives of property and equipment, the determination of the incremental borrowing rate used for operating lease liabilities, the valuation and recognition of stock-based compensation awards, 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 Hamas-Israel and Russia-Ukraine conflicts and other macroeconomic and 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 February 21, 2024, the date of issuance of this Annual Report on Form 10-K. 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.
Concentration of Risks
Concentrations of Risks
The Company’s revenue is reliant on its customers utilizing Internet-based services. These services can be prone to rapid changes in technology and government regulation. If the Company were unable to keep pace with customers’ needs and continue to improve its technological capabilities, or if another firm were to introduce competitive products, or a government jurisdiction were to enact legislation detrimental to the Company’s business, such an event or events could adversely affect the Company’s operating results.
The Company serves its customers from co-location facilities located in various cities and countries around the world. The Company has internal procedures to restore services in the event of disasters at its current co-location facilities. Even with these procedures for disaster recovery in place, the Company’s services could be significantly interrupted during the implementation of restoration procedures.
The Company’s financial instruments that are exposed to concentrations of credit risk consist primarily of cash, cash equivalents, restricted cash, available-for-sale securities, and accounts receivable. Although the Company maintains cash deposits and cash equivalent balances with multiple financial institutions, the deposits, at times, may exceed federally insured limits. Cash and cash equivalents may be withdrawn or redeemed on demand. The Company believes that the financial institutions that hold its cash and cash equivalents and available-for-sale securities are financially sound and, accordingly, minimal credit risk exists with respect to these balances. The Company also maintains investments in U.S. treasury securities, U.S. government agency securities, commercial paper, and corporate bonds that carry high credit ratings and accordingly, minimal credit risk exists with respect to these balances. Cash equivalents consist of money market funds, commercial paper, and corporate bonds which are invested through financial institutions in the United States.
The Company’s accounts receivable are derived from net revenue to customers located throughout the world. The Company grants credit to its customers in the normal course of business.
Revenue Recognition
Revenue Recognition
In accordance with ASC 606, revenue is recognized when a customer obtains control of promised services. The amount of revenue recognized reflects the consideration that the Company expects to be entitled to receive in exchange for these services. To achieve this standard, the Company applies the following five steps:
1. Identify the contract with a customer
2. Identify the performance obligations in the contract
3. Determine the transaction price
4. Allocate the transaction price to performance obligations in the contract
5. Recognize revenue when or as the Company satisfies a performance obligation
The Company generates sales directly through its sales team and through its channel partners. Revenue from sales to channel partners are recorded once all revenue recognition criteria above are met. Channel partners generally receive an order from an end-customer prior to placing an order with the Company. Payment from channel partners is not contingent on the partner’s collection from end-customers. The Company’s performance obligation primarily consists of subscription and support services that are provided over the same service period.
Variable Consideration
If the Company’s services do not meet certain service level commitments, its customers are entitled to receive service credits, and in certain cases, refunds, each representing a form of variable consideration. Revenue from sales is recorded at the net sales price, which is the transaction price, and includes estimates of these forms of variable consideration to the extent that a significant reversal of cumulative revenue is probable to not occur in a future period. The Company has historically not experienced any incidents that had a material impact on its consolidated financial statements. Accordingly, any estimated refunds related to these agreements in the consolidated financial statements are not material during the periods presented. Usage-based consideration is primarily related to fees charged for the Company’s customer’s use of excess bandwidth when accessing the Company’s network and products in a given period and is recognized as revenue in the period in which the usage occurs.
Subscription and Support Revenue
The Company generates revenue primarily from sales to its customers of subscriptions to access its network and products, together with related support services. Arrangements with customers generally do not provide the customer with the right to take possession of the Company’s software operating its global network and products at any time. Instead, customers are granted continuous access to the Company’s global network and products over the contractual period. Access to the Company’s network and products is considered a monthly series comprising one performance obligation. A time-elapsed output method is used to measure progress because the Company transfers control evenly over the contractual period. Accordingly, the fixed consideration related to subscription and support revenue is generally recognized on a straight-line basis over the contract term beginning on the date that the Company’s service is made available to the customer. Usage-based consideration is primarily related to fees charged for the Company’s customer’s use of excess bandwidth when accessing the Company’s network and products in a given period and is recognized as revenue in the period in which the usage occurs.
The subscription and support term contracts for the Company’s contracted customers, typically range from one to three years. Most of the Company’s contracts with contracted customers are non-cancelable over the contractual term. Customers may have the right to terminate their contracts for cause, if the Company fails to perform in accordance with the contractual terms. For the Company’s pay-as-you-go customers, which consist of customers that sign up for the Company's Pro or Business subscription plans through the Company's website (and which the Company previously referred to as self-serve customers), subscription and support terms of service are typically monthly.
Costs to Obtain and Fulfill a Contract
The Company capitalizes sales commission and associated payroll taxes paid to internal sales personnel that are incremental to the acquisition of channel partner and direct customer contracts. These costs are recorded as deferred contract acquisition costs on the consolidated balance sheets. The Company determines whether costs should be deferred based on its sales compensation plans, if the commissions are in fact incremental and would not have occurred absent the customer contract.
Sales commissions for renewal of a contract are not considered commensurate with the commissions paid for the acquisition of the initial contract. Commissions paid upon the initial acquisition of a contract are amortized over an estimated period of benefit of three years while commissions paid for renewal contracts are amortized over the contractual term of the renewals. Amortization of deferred contract acquisition costs is recognized on a straight-line basis commensurate with the pattern of revenue recognition and included in sales and marketing expense in the consolidated statements of operations. The Company determines the period of benefit for commissions paid for the acquisition of the initial contract by taking into consideration the expected subscription term and expected renewals of its customer contracts, the duration of its relationships with its customers, customer retention data, its technology development lifecycle, and other factors. The Company periodically reviews the carrying amount of deferred contract acquisition costs to determine whether events or changes in circumstances have occurred that could impact the period of benefit of these deferred costs.
Accounts Receivable and Allowance
Accounts Receivable and Allowance
Accounts receivable are recorded at the invoiced amount and are non-interest bearing. Accounts receivable are stated at their net realizable value, net of a sales allowance and an allowance for doubtful accounts. Credit is extended to customers based on an evaluation of their financial condition and other factors. The Company establishes a sales allowance at the time of revenue recognition based on its history of adjustments and credits provided to customers. In determining the necessary allowance for doubtful accounts, the Company considers the current aging and financial condition of its customers, the amount of receivables in dispute, and current payment patterns. Accounts receivable are written off against the allowance when management determines a balance is uncollectible and the Company no longer actively pursues collection of the receivable. The Company does not have any off-balance-sheet credit exposure related to its customers.
Cost of Revenue
Cost of Revenue
Cost of revenue consists primarily of expenses that are directly related to providing the Company's service to its paying customers. These expenses include expenses related to operating in co-location facilities, network and bandwidth costs, depreciation of the Company's equipment located in co-location facilities, certificate authority services costs for paying customers, related overhead costs, the amortization of the Company's capitalized internal-use software, and the amortization of acquired developed technologies. Cost of revenue also includes employee-
related costs, including salaries, bonuses, benefits, and stock-based compensation for employees whose primary responsibilities relate to supporting the Company's paying customers and delivering paid customer support. Other costs included in cost of revenue include credit card fees related to processing customer transactions and allocated overhead costs.
Research and Development
Research and Development
The Company charges costs related to research, design, and development of products to research and development expense in the consolidated statements of operations as incurred. Research and development expenses support the Company's efforts to add new features to its existing offerings and to ensure the security, performance, and reliability of its global network. The majority of the Company's research and development expenses result from employee-related costs, including salaries, bonuses and benefits, consulting costs, depreciation of equipment used in research and development, and allocated overhead costs.
Advertising Expense
Advertising Expense
Advertising costs are charged to sales and marketing expense in the consolidated statements of operations as incurred.
Stock-based Compensation
Stock-based Compensation
The Company measures and recognizes stock-based compensation expense based on the grant date fair value of the awards. The Company accounts for forfeitures as they occur. The grant date fair value of restricted stock units (RSUs) is estimated based on the fair value of the Company's underlying common stock. The grant date fair value of stock options with service-based vesting only is estimated using the Black-Scholes option pricing model. The grant date fair value of stock options with market conditions is estimated using the Monte Carlo simulation pricing model. The grant date fair value and the stock-based compensation expense related to purchase rights issued under the 2019 Employee Stock Purchase Plan (ESPP) is estimated using the Black-Scholes option pricing model and is based on the estimated number of awards as of the beginning of the offering period, respectively.
The Black-Scholes and Monte Carlo simulation option pricing models require the use of highly subjective assumptions, including the award’s expected term, the fair value of the underlying common stock, the expected volatility of the price of the common stock, risk-free interest rates, and the expected dividend yield of the common stock.
The assumptions used to determine the fair value of the stock-based awards are management’s best estimates and involve inherent uncertainties and the application of judgment. The expected term represents the period that the Company’s stock-based awards are expected to be outstanding. As the Company does not have sufficient historical experience for determining the expected term of the stock option awards granted, it has based its expected term on the simplified method available under U.S. GAAP.
Stock-based compensation expense for awards with service-based vesting only is recognized on a straight-line basis over the requisite service period of the awards, which is generally four years. Stock-based compensation expense for awards with service and market conditions is recognized on a graded attribution basis over the requisite service period of the awards as derived from the Monte Carlo simulation pricing model.
The 2010 Plan (as defined in Note 10 to these consolidated financial statements) 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. Liability for early exercise of unvested stock options and the related number of unvested shares subject to repurchase were not material as of December 31, 2023 and 2022.
Income Taxes
Income Taxes
The Company accounts for income taxes using the asset and liability method. Deferred income taxes are recognized by applying the enacted statutory tax rates applicable to future years to differences between the carrying amounts of existing assets and liabilities and their respective tax bases and net operating loss and tax credit carryforwards. The effect of a change in tax rates on deferred tax assets and liabilities is recognized in the period that includes the enactment date. The measurement of deferred tax assets is reduced, when necessary, by a valuation allowance to amounts that are more likely than not to be realized.
The Company recognizes tax benefits from uncertain tax positions only if it believes that it is more likely than not that the tax position will be sustained on examination by the taxing authorities based on the technical merits of the position.
Foreign Currency Remeasurement
Foreign Currency Remeasurement
The Company's functional currency of its foreign subsidiaries is the U.S. dollar. The monetary assets and liabilities that are denominated in a currency other than the U.S. dollar of the Company's foreign subsidiaries are remeasured into U.S. dollars at the exchange rate on the balance sheet date, while nonmonetary items are remeasured at historical rates. Revenue and expenses are remeasured at average exchange rates during the period. Transaction gains and losses that arise from exchange rate fluctuations on transactions denominated in a currency other than the functional currency are included in other income (expense), net in the consolidated statements of operations. Remeasurement gains and losses were not material for all periods presented.
Cash and Cash Equivalents
Cash and Cash Equivalents
Cash and cash equivalents consist of highly liquid investments with an original maturity from the date of purchase of 90 days or less.
Restricted Cash
Restricted Cash
The Company's restricted cash at December 31, 2023 is primarily related to irrevocable standby letters of credit and bank guarantees that are required under lease agreements and indemnity holdback consideration associated with acquisition of an intangible asset. Restrictions typically lapse at the end of the lease or holdback term, and the Company classifies restricted cash as current or non-current based on the remaining term of the restriction.
The Company's restricted cash at December 31, 2022 is primarily related to indemnity holdback consideration associated with business combinations. Restrictions typically lapse at the end of the holdback term, and the Company classifies restricted cash as current or non-current based on the remaining term of the restriction.
Available-for-sale Securities and Other-than-temporary Impairment
Available-for-sale Securities
The Company’s available-for-sale securities consist of U.S. treasury securities, U.S. government agency securities, commercial paper, and corporate bonds. The Company has designated all securities held by it as available-for-sale and therefore, such securities are reported at fair value, with unrealized gains and losses recorded in accumulated other comprehensive income (loss) on the consolidated balance sheets. For securities sold prior to maturity, the cost of securities sold is based on the specific identification method. Realized gains and losses on the sale of available-for-sale securities are recorded in other income (expense), net in the consolidated statements of operations. All securities are classified within current assets as such securities can be liquidated to fund current operations without penalty.
Other-than-temporary Impairment
All of the Company’s investments are subject to a periodic impairment review. The Company recognizes an impairment charge when a decline in the fair value of its investments below the cost basis is determined to be other-than-temporary. Factors considered in determining whether a loss is temporary include the extent and length of time the investment’s fair value has been lower than its cost basis, the financial condition and near-term prospects of the investee, the extent of the loss related to 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 prior to
the expected recovery of the investment’s amortized cost basis.
Fair Value Measurements
Fair Value Measurements
The Company's available-for-sale securities are recorded at fair value. The Company’s cash and cash equivalents and restricted cash are recorded at cost, which approximates fair value. Additionally, accounts receivable, accounts payable, and accrued expenses approximates fair value due to their short-term nature.
Property and Equipment
Property and Equipment
Property and equipment are stated at cost, net of accumulated depreciation. Depreciation is computed on a straight-line basis over the estimated useful lives of the assets, which is generally as follows:
Useful Lives
Servers—network infrastructure4 years
Buildings30 years
Office and computer equipment3 years
Office furniture3 years
Software3 years
Leasehold improvementsLesser of useful life or term of lease
Asset retirement obligationLesser of useful life or term of lease
Expenditures for maintenance and repairs are expensed as incurred.
Capitalized Internal-Use Software Development Costs
Capitalized Internal-Use Software Development Costs
Certain development costs related to the Company’s global network and products during the application development stage are capitalized. Costs incurred in the preliminary stages of development are analogous to research and development activities and are expensed as incurred. The preliminary stage includes such activities as conceptual formulation of alternatives, evaluation of alternatives, determination of existence of needed technology, and final selection of alternatives. Once the application development stage is reached, internal and external costs are capitalized until the software is substantially complete and ready for its intended use. Capitalized costs are recorded as part of property and equipment, net. Capitalized internal-use software is amortized on a straight-line basis over its estimated useful life, which is generally three years, and is recorded as cost of revenue in the consolidated statements of operations.
Business Combinations
Business Combinations
The Company includes the results of operations of the businesses that the Company acquires from the date of acquisition. The fair value of the assets acquired and liabilities assumed is based on their estimated fair values as of the respective date of acquisition. Upon early adoption of Accounting Standards Update (ASU) 2021-08, Business Combinations (Topic 805): Accounting for Contract Assets and Contract Liabilities from Contracts with Customers, effective January 1, 2022, the Company measures and recognizes contract assets and contract liabilities acquired in a business combination on the acquisition date in accordance with ASC 606. Refer to Recent Accounting Pronouncements sub-section below for further detail of the adoption of ASU 2021-08. The excess purchase price over the fair value of the net assets acquired and liabilities assumed is recorded as goodwill. Where the purchase price is less than the fair value of the net assets acquired and liabilities assumed, the difference is recorded as a bargain purchase gain. Determining the fair value of assets acquired and liabilities assumed requires significant judgment and estimates including the selection of valuation methodologies, future expected cash flows, discount rates, and useful lives. The Company’s estimates of fair value are based on assumptions believed to be reasonable, but which are inherently uncertain and, as a result, actual results may differ from estimates. During the measurement period, not to exceed one year from the date of acquisition, the Company may record adjustments to the assets acquired and liabilities assumed with a corresponding offset to goodwill. At the conclusion of the measurement period, or final determination of the values of assets acquired or liabilities assumed, whichever comes first, any subsequent adjustments are reflected in the consolidated statements of operations.
When the Company issues payments or grants of equity to selling stockholders in connection with an acquisition, the Company evaluates whether the payments or awards are compensatory. This evaluation includes whether cash payments or stock award vesting is contingent on the continued employment of the selling stockholder beyond the acquisition date. If continued employment is required for the cash to be paid or stock awards to vest, the award is treated as compensation for post-acquisition services and is recognized as compensation expense.
Transaction costs associated with business combinations are expensed as incurred, and are included in general and administrative expense in the Company’s consolidated statements of operations.
Convertible Senior Notes
Convertible Senior Notes
Prior to January 1, 2022, the Company accounted for 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) as separate liability and equity components. On issuance, the carrying amount of the liability component was calculated by measuring the fair value of a similar debt instrument that did not have an associated convertible feature. The carrying amount of the equity component, representing the conversion option, was calculated by deducting the fair value of the liability component from the total principal of the Notes. The excess of the principal amount of the liability component over its book value (debt discount) is amortized to interest expense over the term of the Notes. In accounting for the issuance costs related to the Notes, the allocation of issuance costs incurred between the liability and equity components was based on their relative values. Issuance costs attributable to the liability component are being amortized over the contractual term of the Notes.
Effective January 1, 2022, the Company adopted ASU 2020-06. As a result, the Notes are each accounted for as a single liability measured at its amortized cost, as no other embedded features require bifurcation and recognition as derivatives, thereby eliminating the subsequent amortization of the debt discount as interest expense. For further details on the ASU 2020-06 adoption, refer to Recent Accounting Pronouncements section below.
Transactions involving contemporaneous exchanges of cash between the same debtor and creditor in connection with the issuance of a new debt obligation and satisfaction of an existing debt obligation by the debtor are evaluated as a modification or an exchange transaction depending on whether the exchange is determined to have substantially different terms. For exchange transactions that are considered an extinguishment of debt, the total consideration for such an exchange is separated into liability and equity components by estimating the fair value of a similar liability without a conversion option and assigning the residual value to the equity component. The gain or loss on extinguishment of the debt is subsequently determined by comparing repurchase consideration allocated to the liability component to the sum of the carrying value of the liability component, net of the proportionate amounts of unamortized debt discount and remaining unamortized debt issuance costs.
Goodwill and Intangible Assets
Goodwill and Intangible Assets
Goodwill represents the excess of the purchase price of an acquired business over the fair value of the net tangible and identifiable intangible assets acquired. The carrying amount of goodwill is reviewed for impairment at least annually, in the fourth quarter, or whenever events or changes in circumstances indicate that the carrying value may not be recoverable. At December 31, 2023 and 2022, the Company had a single operating segment and reporting unit structure. As part of the annual goodwill impairment test, the Company first performs a qualitative assessment to determine whether further impairment testing is necessary. If, as a result of the qualitative assessment, it is more likely than not that the fair value of the reporting unit is less than its carrying amount, the quantitative impairment test will be required. If the Company has determined it necessary to perform a quantitative impairment assessment, the Company will compare the fair value of the reporting unit with its carrying amount and recognize an impairment charge for the amount by which the carrying amount exceeds the reporting unit’s fair value, limited to the total amount of goodwill of the reporting unit. The Company did not recognize any goodwill impairment charges for any of the periods presented.
Intangible assets are carried at cost, net of accumulated amortization. Intangible assets are amortized on a straight-line basis over their estimated useful lives. The Company estimates the useful life by estimating the expected period of economic benefit. The estimated useful life of the Company’s acquired developed technology and trade name intangible assets is two years and the estimated useful life of the Company's acquired customer relations intangible assets is eight years.
Indefinite lived intangibles are assessed annually for impairment, which includes an assessment of whether there were any triggering events that required an impairment assessment of the Company’s definite lived intangible assets, and whether it was more likely than not that the Company’s indefinite lived intangible asset was impaired.
Impairment of Long-Lived Assets
Impairment of Long-Lived Assets
The Company evaluates long-lived assets, which include depreciable tangible assets, for impairment whenever events or changes in circumstances indicate that the carrying value of long-lived assets may not be recoverable. The recoverability of these assets is measured by comparing the carrying amounts to the future undiscounted cash flows these assets are expected to generate. The Company recognizes an impairment in the event the carrying amount of such assets exceeds the fair value attributable to such assets. There were no events or changes in circumstances that indicated the long-lived assets were impaired during any of the periods presented.
Operating Leases
Operating Leases
The Company enters into lease arrangements for real estate assets related to office space and for co-location assets related to space and equipment located in co-location facilities. The Company determines if an arrangement is, or contains, a lease at its inception by assessing whether there is an identified asset and whether the arrangement conveys the right to control the use of the identified asset in exchange for consideration for a period of time. All of the Company's leases are classified as operating leases. At lease commencement, the Company recognizes right-of-use assets, operating lease liabilities, and operating lease liabilities, noncurrent in the Company’s consolidated balance sheets, with the exception of short-term leases with an original term of 12 months or less. Right-of-use assets represent the Company's right to use an underlying asset for the lease term including any renewal options that it is reasonably certain to exercise. The Company generally uses the base, non-cancelable lease term when initially recognizing the right-of-use assets and lease liabilities, unless it is reasonably certain that a renewal or termination option will be exercised. A lease may be modified subsequent to its initial measurement for changes in reasonably certain holding period related to significant events. Such events include, but are not limited to, significant leasehold improvements, and points in time when the Company elects to exercise an option that it was not previously reasonably certain to exercise. Operating lease liabilities represent the present value of the Company's obligation to make payments arising from the lease. Right-of-use assets are initially measured based on the corresponding lease liability adjusted for (i) payments made to the lessor at or before the commencement date, (ii) initial direct costs incurred and (iii) tenant incentives received, incurred or payable under the lease. Right-of-use assets are periodically reviewed for impairment. Lease liabilities are initially measured at the present value of total minimum lease payments not yet paid. As the implicit rate of the Company's leases is not determinable, the Company uses an incremental borrowing rate (IBR) based on the information available at the lease commencement date in determining the present value of lease payments. Minimum lease payments consist of the fixed payments under the arrangement and variable payments that depend on an underlying index or rate, less any lease incentives such as tenant improvement allowances not yet received at commencement date. Variable lease costs that do not depend on an index or a rate are expensed as incurred and not included within the calculation of right-of-use assets and lease liabilities. The Company's operating lease arrangements contain both lease and non-lease components. At inception of an arrangement for co-location assets related to space and equipment located in co-location facilities, the Company allocates the consideration to the lease and non-lease components and recognizes a right-of-use asset and corresponding lease liability for only the lease components. Lease expense for operating leases is recognized on a straight-line basis over the term of the lease.
Legal Contingencies
Legal Contingencies
The Company accrues a liability for an estimated loss for legal contingencies if the potential loss from any claim or legal proceeding is considered probable, and the amount can be reasonably estimated. The Company believes there are no legal proceedings pending that could have, individually or in the aggregate, a material adverse effect on its results of operations or financial condition.
Net Loss per Share Attributable to Common Stockholders
Net Loss per Share Attributable to Common Stockholders
Basic and diluted net loss per share attributable to common stockholders is presented in conformity with the two-class method required for multiple classes of common stock and participating securities. The Company considers any shares issued on the early exercise of stock options subject to repurchase to be participating securities
because holders of such shares have nonforfeitable dividend rights in the event a dividend is paid on common stock. Under the two-class method, net income is attributed to common stockholders and participating securities based on their participation rights. The holders of early exercised shares subject to repurchase do not have a contractual obligation to share in the losses of the Company. As such, the Company’s net losses for the years ended December 31, 2023, 2022, and 2021 were not allocated to these participating securities. The rights, including the liquidation and dividend rights, of the Class A common stock and Class B common stock are substantially identical, other than voting rights. Accordingly, the Class A common stock and Class B common stock share proportionately in the Company’s net losses.
Under the two-class method, basic net loss per share attributable to common stockholders is computed by dividing the net loss attributable to common stockholders by the weighted-average number of shares of common stock outstanding during the period, less shares subject to repurchase. Vested RSUs that have not been settled have been included in the appropriate common share class used to calculate basic net loss per share.
Diluted net loss per share attributable to common stockholders adjusts basic net loss per share for the effect of dilutive securities, including awards under the Company's equity incentive plans. As the Company has reported losses for all periods presented, all potentially dilutive securities are antidilutive and accordingly, basic net loss per share equals diluted net loss per share.
Segment and Geographic Information
Segment and Geographic Information
The Company has one reportable and operating segment.
Recent Accounting Pronouncements
Recent Accounting Pronouncements
Recently Adopted Accounting Pronouncements
The Company adopted 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), effective January 1, 2022 using the modified retrospective method and therefore financial information for periods before January 1, 2022 were not impacted. 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 was 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 Financial Accounting Standards Board (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 consolidated financial statements.
Reclassification of prior year presentation
Reclassification of prior year presentation
Certain prior year amounts have been reclassified for consistency with the current year presentation. Specifically, Liability for early exercise of unvested stock options, which was previously presented as a separate line item on the consolidated balance sheets, is now included within Accrued expense and other current liabilities.
v3.24.0.1
Summary of Significant Accounting Policies (Tables)
 12 Months Ended
Dec. 31, 2023
Accounting Policies [Abstract]  
Schedule of Property and Equipment
Property and equipment are stated at cost, net of accumulated depreciation. Depreciation is computed on a straight-line basis over the estimated useful lives of the assets, which is generally as follows:
Useful Lives
Servers—network infrastructure4 years
Buildings30 years
Office and computer equipment3 years
Office furniture3 years
Software3 years
Leasehold improvementsLesser of useful life or term of lease
Asset retirement obligationLesser of useful life or term of lease
Property and equipment, net consisted of the following:
December 31,
20232022
(in thousands)
Property and equipment:
Servers—network infrastructure$330,295 $239,828 
Construction in progress45,557 72,827 
Capitalized internal-use software75,163 88,541 
Office and computer equipment32,043 30,577 
Office furniture9,003 6,547 
Software5,422 5,962 
Leasehold improvements42,984 20,392 
Asset retirement obligation826 827 
Gross property and equipment541,293 465,501 
Less accumulated depreciation and amortization(218,480)(178,901)
Total property and equipment, net$322,813 $286,600 
v3.24.0.1
Revenue (Tables)
 12 Months Ended
Dec. 31, 2023
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 have contracted to use the Company’s global network and products:
Year Ended December 31,
202320222021
(dollars in thousands)
AmountPercentage
of Revenue		AmountPercentage
of Revenue		AmountPercentage
of Revenue
United States$678,184 52 %$515,722 53 %$342,578 52 %
Europe, Middle East, and Africa
356,569 28 %258,291 26 %172,129 26 %
Asia Pacific168,826 13 %133,353 14 %96,537 15 %
Other93,166 7 %67,875 7 %45,182 7 %
Total$1,296,745 100 %$975,241 100 %$656,426 100 %
The following table summarizes the revenue from contracts by type of customer:
Year Ended December 31,
202320222021
(dollars in thousands)
AmountPercentage
of Revenue		AmountPercentage
of Revenue		AmountPercentage
of Revenue
Channel partners
$202,404 16 %$122,522 13 %$73,802 11 %
Direct customers
1,094,341 84 %852,719 87 %582,624 89 %
Total$1,296,745 100 %$975,241 100 %$656,426 100 %
Summary of Deferred Contract Acquisition Costs
The following table summarizes the activity of the deferred contract acquisition costs:
Year Ended December 31,
202320222021
(in thousands)
Beginning balance$93,145 $70,320 $44,176 
Capitalization of contract acquisition costs
101,465 67,940 55,411 
Amortization of deferred contract acquisition costs
(61,374)(45,115)(29,267)
Ending balance$133,236 $93,145 $70,320 
v3.24.0.1
Fair Value Measurements (Tables)
 12 Months Ended
Dec. 31, 2023
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 December 31, 2023 and 2022.
(in thousands)    Reported as:
December 31, 2023Amortized
Cost		Unrealized
Gain		Unrealized
(Loss)		Fair ValueCash & Cash EquivalentsAvailable-for-sale SecuritiesRestricted Cash (Current and Non-Current)
Cash$51,189 $— $— $51,189 $46,829 $— $4,360 
Level I:
Money market funds
40,035 — — 40,035 40,035 — — 
Level II:
Corporate bonds
312,510 718 (378)312,850 — 312,850 — 
U.S. treasury securities
1,020,167 2,344 (544)1,021,967 — 1,021,967 — 
U.S. government agency securities
84,154 14 (96)84,072 — 84,072 — 
Commercial paper
167,989 2 — 167,991 — 167,991 — 
Subtotal
1,584,820 3,078 (1,018)1,586,880 — 1,586,880 — 
Total assets measured at fair value on a recurring basis
$1,676,044 $3,078 $(1,018)$1,678,104 $86,864 $1,586,880 $4,360 
(in thousands)Reported as:
December 31, 2022Amortized
Cost		Unrealized
Gain		Unrealized
(Loss)		Fair ValueCash & Cash EquivalentsAvailable-for-sale SecuritiesRestricted Cash (Current and Non-Current)
Cash$87,719 $— $— $87,719 $77,164 $— $10,555 
Level I:
Money market funds
125,450 — — 125,450 124,979 — 471 
Level II:
Corporate bonds
258,617 46 (2,621)256,042 2,035 254,007 — 
U.S. treasury securities
818,379 20 (9,233)809,166 — 809,166 — 
U.S. government agency securities
25,283 — (31)25,252 — 25,252 — 
Commercial paper
357,334 — — 357,334 — 357,334 — 
Subtotal
1,459,613 66 (11,885)1,447,794 2,035 1,445,759 — 
Total assets measured at fair value on a recurring basis
$1,672,782 $66 $(11,885)$1,660,963 $204,178 $1,445,759 $11,026 
v3.24.0.1
Balance Sheet Components (Tables)
 12 Months Ended
Dec. 31, 2023
Organization, Consolidation and Presentation of Financial Statements [Abstract]  
Schedule of Activity in Allowance for Doubtful Accounts
Activity in the allowance for doubtful accounts was as follows:
Year Ended December 31,
202320222021
(in thousands)
Beginning balance$3,134 $2,644 $1,703 
Provision for bad debt13,641 4,836 3,735 
Write-off of uncollectible accounts receivable(10,779)(4,346)(2,794)
Ending balance$5,996 $3,134 $2,644 
Schedule of Property and Equipment, Net
Property and equipment are stated at cost, net of accumulated depreciation. Depreciation is computed on a straight-line basis over the estimated useful lives of the assets, which is generally as follows:
Useful Lives
Servers—network infrastructure4 years
Buildings30 years
Office and computer equipment3 years
Office furniture3 years
Software3 years
Leasehold improvementsLesser of useful life or term of lease
Asset retirement obligationLesser of useful life or term of lease
Property and equipment, net consisted of the following:
December 31,
20232022
(in thousands)
Property and equipment:
Servers—network infrastructure$330,295 $239,828 
Construction in progress45,557 72,827 
Capitalized internal-use software75,163 88,541 
Office and computer equipment32,043 30,577 
Office furniture9,003 6,547 
Software5,422 5,962 
Leasehold improvements42,984 20,392 
Asset retirement obligation826 827 
Gross property and equipment541,293 465,501 
Less accumulated depreciation and amortization(218,480)(178,901)
Total property and equipment, net$322,813 $286,600 
Schedule of Acquired Intangible Assets, Net
Acquired intangible assets, net consisted of the following:
December 31, 2023
Gross Carrying
Amount		Accumulated
Amortization		Net Book
Value
(in thousands)
Developed technology$47,183 $36,893 $10,290 
Trade name1,700 1,488 212 
Customer relationships11,600 2,538 9,062 
Total acquired intangible assets, net$60,483 $40,919 $19,564 
December 31, 2022
Gross Carrying
Amount		Accumulated
Amortization		Net Book
Value
(in thousands)
Developed technology$40,100 $19,191 $20,909 
Trade name1,700 638 1,062 
Customer relationships11,600 1,088 10,512 
Total acquired intangible assets, net$53,400 $20,917 $32,483 
Schedule of Estimated Future Amortization Expense of Acquired Intangible Assets
As of December 31, 2023, the estimated future amortization expense of acquired intangible assets was as follows:
Estimated
Amortization
(in thousands)
Year ending December 31,
2024$9,010 
2025
4,391 
2026
1,450 
2027
1,450 
2028
1,450 
Thereafter1,813 
Total$19,564 
v3.24.0.1
Leases (Tables)
 12 Months Ended
Dec. 31, 2023
Leases [Abstract]  
Schedule of Lease Costs
The components of lease cost related to the Company's operating leases included in the consolidated statements of operations were as follows:
Year Ended December 31,
202320222021
(in thousands)
Operating lease cost$44,792 $36,332 $25,091 
Sublease income— — (1,096)
Total lease cost$44,792 $36,332 $23,995 
Schedule of Lease Liability Maturities
Maturities of the operating lease liabilities as of December 31, 2023 are as follows:
December 31, 2023
(in thousands)
2024$43,921 
202534,212 
202630,003 
202725,654 
202814,479 
Thereafter21,302 
Total lease payments$169,571 
Less: Imputed interest$(17,730)
Total operating lease liabilities$151,841 
Maturities of the operating lease liabilities as of December 31, 2022 were as follows:
December 31, 2022
(in thousands)
2023$33,902 
202432,525 
202525,340 
202622,242 
202719,172 
Thereafter24,864 
Total lease payments$158,045 
Less: Imputed interest$(17,146)
Total operating lease liabilities$140,899 
v3.24.0.1
Debt (Tables)
 12 Months Ended
Dec. 31, 2023
Debt Disclosure [Abstract]  
Schedule of Convertible Debt
The net carrying amounts of the Notes were as follows:
December 31, 2023December 31, 2022
2026 Notes2025 Notes2026 Notes2025 Notes
(in thousands)
Principal$1,293,750 $— $1,293,750 $158,429 
Unamortized debt issuance costs(10,388)— (14,348)(1,639)
Carrying amount, net$1,283,362 $— $1,279,402 $156,790 
Schedule of Interest Expense
The following tables set forth total interest expense recognized related to the Notes:
Year Ended December 31,
202320222021
2026 Notes2025 Notes2026 Notes2025 Notes2026 Notes2025 Notes
(in thousands)
Coupon interest expense$— $477 $— $1,201 $— $3,162 
Amortization of debt discount(1)
— — — — 17,971 25,834 
Amortization of debt issuance costs3,960 559 3,958 701 1,184 1,185 
Total$3,960 $1,036 $3,958 $1,902 $19,155 $30,181 
(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 consolidated financial statements.
v3.24.0.1
Commitments and Contingencies (Tables)
 12 Months Ended
Dec. 31, 2023
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 December 31, 2023. For the lease components of co-location agreements, refer to Note 6 to these consolidated financial statements.
Payments Due by Period as of December 31, 2023
Total20242025202620272028Thereafter
(in thousands)
Non-cancelable:
Open purchase agreements(1)
$85,540 $28,635 $44,786 $5,647 $2,495 $749 $3,228 
Bandwidth and other co-location related commitments(2)
113,284 46,380 28,325 17,965 13,443 5,406 1,765 
Other commitments(3)
1,000 1,000 — — — — — 
Total$199,824 $76,015 $73,111 $23,612 $15,938 $6,155 $4,993 
(1)Open purchase commitments are for the purchase of goods and services under non-cancelable contracts. They were not recorded as liabilities on the consolidated balance sheet as of December 31, 2023 as the Company had not yet received the related goods and 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 consolidated balance sheet as of December 31, 2023.
(3)Indemnity holdback consideration associated with asset acquisitions. See Note 5.
v3.24.0.1
Common Stock (Tables)
 12 Months Ended
Dec. 31, 2023
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:
December 31,
20232022
(in thousands)
2025 Notes— 5,503 
2026 Notes10,311 10,311 
Stock options issued and outstanding12,523 15,886 
Remaining shares available for issuance under the 2019 Plan
56,442 44,693 
Outstanding and unsettled RSUs
10,894 10,196 
Shares available for issuance under the ESPP13,844 10,990 
Total shares of common stock reserved104,014 97,579 
v3.24.0.1
Stock-based Compensation (Tables)
 12 Months Ended
Dec. 31, 2023
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 during the periods presented:
Stock Options Outstanding
(in thousands, except year and per share data)
Shares Subject
to Options
Outstanding		Weighted-
Average
Exercise Price
per Option		Weighted-
Average
Remaining
Contractual
Terms (in years)		Aggregate
Intrinsic Value
Balances as of December 31, 202018,186 $3.92 7.0$1,310,650 
Options granted100 $137.17 
Options exercised(4,455)$4.83 $503,243 
Options canceled/forfeited/expired(228)$2.67 
Balances as of December 31, 202113,603 $12.47 6.0$1,726,440 
Options granted5,733 $97.71 
Options exercised(2,484)$4.08 $180,990 
Options canceled/forfeited/expired(966)$74.88 
Balances as of December 31, 202215,886 $34.21 6.3$451,782 
Options granted 1,290 $51.21 
Options exercised (2,989)$4.96 $171,225 
Options canceled/forfeited/expired (1,664)$62.62 
Balances as of December 31, 202312,523 $21.03 5.7$787,633 
Vested and expected to vest as of December 31, 202312,521 $21.03 5.7$787,469 
Exercisable as of December 31, 20237,534 $4.15 3.8$601,503 
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 Performance Options during the years ended December 31, 2023 and December 31, 2022 were as follows:
Year ended December 31,
20232022
Expected term (in years)10.009.83
Expected volatility63.7 %59.5 %
Risk-free interest rate3.9 %3.0 %
Dividend yield— — 
The weighted-average assumptions used to determine the fair value of the Assumed Area 1 Stock Options during the year ended December 31, 2022 were as follows:
Year ended December 31,
2022
Expected term (in years)2.3
Expected volatility66.7 %
Risk-free interest rate2.5 %
Dividend yield— 
The weighted-average assumptions used to determine the fair value of stock options granted during the year ended December 31, 2021, were as follows:
Year ended December 31,
2021
Expected term (in years)6.0
Expected volatility59.6% 
Risk-free interest rate1.3% 
Dividend yield— 
Schedule of Restricted Stock Units Activity
RSU activity under the 2019 Plan and the 2010 Plan for the year ended December 31, 2023 was as follows:
Restricted Stock and RSUs*
Weighted-Average
Grant
Date Fair Value
(in thousands, except per share data)
Unvested and outstanding as of December 31, 20208,650 $21.41 
Granted - RSUs2,203 $108.87 
Granted - Restricted stock48 $167.69 
Vested - RSUs(2,734)$21.17 
Vested - Restricted stock(9)$— 
Forfeited(681)$29.78 
Unvested as of December 31, 20217,456 $47.36 
Vested and not yet released— $— 
Outstanding as of December 31, 20217,456 $47.36 
Granted - RSUs6,367 $67.13 
Granted - Restricted stock52 $100.29 
Vested - RSUs(2,848)$38.49 
Vested - Restricted stock(668)$19.96 
Forfeited (779)$64.83 
Unvested as of December 31, 20229,580 $61.64 
Vested and not yet released— $— 
Outstanding as of December 31, 20229,580 $61.14 
Granted - RSUs6,428 $62.24 
Vested - RSUs(3,689)$56.75 
Forfeited - RSUs(1,161)$65.87 
Unvested as of December 31, 2023*
10,894 $65.93 
Vested and not yet released*
— $— 
Outstanding as of December 31, 2023*
10,894 $65.93 
*Restricted stock did not have a material impact on the Company’s consolidated financial statements for the fiscal years ended December 31, 2023 or 2022. Effective January 1, 2023, this table discloses RSU activity only.
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:    
Year ended December 31,
202320222021
Expected term (in years)0.50.50.5
Risk-free interest rate5.2 %3.3 %0.1 %
Expected volatility68.9 %100.6 %58.9 %
Dividend yield— — — 
Schedule of Stock-based Compensation Expense
The following table sets forth the total stock-based compensation expense included in the Company’s consolidated statements of operations:
Year Ended December 31,
202320222021
(in thousands)
Cost of revenue$7,967 $6,251 $2,583 
Sales and marketing73,682 50,317 27,277 
Research and development132,417 103,276 44,196 
General and administrative59,923 42,933 16,081 
Total stock-based compensation expense$273,989 $202,777 $90,137 
v3.24.0.1
Net Loss per Share Attributable to Common Stockholders (Tables)
 12 Months Ended
Dec. 31, 2023
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:

Year Ended December 31,

202320222021
Class AClass BClass AClass BClass AClass B
(in thousands, except per share data)
Net loss attributable to common stockholders
$(161,296)$(22,653)$(167,770)$(25,611)$(219,939)$(40,370)
Weighted-average shares used in computing net loss per share attributable to common stockholders, basic and diluted
292,568 41,088 283,114 43,218 263,884 48,437 
Net loss per share attributable to common stockholders, basic and diluted
$(0.55)$(0.55)$(0.59)$(0.59)$(0.83)$(0.83)
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:
December 31,
202320222021
(in thousands)
2025 Notes
— 4,233 4,676 
2026 Notes6,762 6,761 6,762 
Shares subject to repurchase
38 900 2,129 
Unexercised stock options
12,523 15,886 13,603 
Unvested restricted stock and RSUs
10,932 10,273 7,417 
Shares issuable pursuant to the ESPP189 248 62 
Total
30,444 38,301 34,649 
v3.24.0.1
Income Taxes (Tables)
 12 Months Ended
Dec. 31, 2023
Income Tax Disclosure [Abstract]  
Schedule of Loss Before Income Taxes
The components of the Company's loss before income taxes for the years ended December 31, 2023, 2022, and 2021 were as follows:
Year Ended December 31,
202320222021
(in thousands)
Domestic$(210,547)$(219,586)$(272,995)
Foreign32,685 28,853 25,019 
Total loss before income taxes$(177,862)$(190,733)$(247,976)
Schedule of Provision for (Benefit From) Income Taxes
The components of the Company's provision for (benefit from) income taxes for the years ended December 31, 2023, 2022, and 2021 were as follows:
Year Ended December 31,
202320222021
(in thousands)
Current expense:
Federal$513 $332 $722 
State324 1 143 
Foreign2,986 2,455 2,730 
Total current provision for income taxes$3,823 $2,788 $3,595 
Deferred expense (benefit):
Federal— (1,124)— 
State— (573)— 
Foreign2,264 1,557 8,738 
Total deferred provision for (benefit from) income taxes$2,264 $(140)$8,738 
Total provision for income taxes
$6,087 $2,648 $12,333 
Schedule of Reconciliation of U.S. Federal Statutory Rate to Effective Tax Rate
A reconciliation of the U.S. federal statutory rate to the Company's effective tax rate is as follows:
Year Ended December 31,
202320222021
Expected benefit at U.S. federal statutory rate21.0 %21.0 %21.0 %
State income taxes, net of federal tax benefits(0.1)0.2 — 
Foreign income or losses taxed at different rates1.0 1.1 (2.5)
Stock-based compensation12.4 18.7 43.6 
Change in valuation allowance(30.6)(41.2)(66.4)
Withholding taxes(0.3)(0.2)(0.3)
Gain/loss on convertible senior notes
(5.1)— (0.4)
Miscellaneous permanent items(1.7)(1.0)— 
Total provision for income taxes
(3.4)%(1.4)%(5.0)%
Schedule of Deferred Tax Assets and Liabilities
The components of the Company's deferred tax assets and liabilities as of December 31, 2023 and 2022 were as follows:
Year Ended December 31,
20232022
(in thousands)
Deferred tax assets:
Net operating loss carryforwards$390,405 $373,655 
Tax credit carryforwards65,390 51,925 
Capitalized research and development expenditures71,617 36,886 
Operating lease liabilities36,609 33,790 
Business interest carryforwards1,244 15,762 
Stock-based compensation35,786 27,766 
Accrued expenses and reserves4,650 2,770 
Capitalized contract expenditures32,425 — 
Depreciation and amortization129 3 
Other2,106 919 
Gross deferred tax assets640,361 543,476 
Valuation allowance(552,165)(477,638)
Total deferred tax assets$88,196 $65,838 
Deferred tax liabilities:
Right-of-use assets(33,337)(31,586)
Deferred commissions(32,807)(23,039)
Capitalized internal-use software(3,909)(4,638)
Depreciation and amortization(25,045)(11,197)
Other(57)(73)
Total deferred tax liabilities$(95,155)$(70,533)
Net deferred tax liabilities
$(6,959)$(4,695)
Schedule of Reconciliation of Gross Unrecognized Tax Benefits
A reconciliation of the beginning and ending amount of the Company's total gross unrecognized tax benefits was as follows:
Year Ended December 31,
202320222021
(in thousands)
Balance as of the beginning of the period$23,940 $12,590 $5,682 
Increases for tax positions related to the prior year590 5,753 1,784 
Decreases for tax positions related to the prior year(243)— — 
Additions for tax positions related to the current year4,752 5,597 5,124 
Balance as of the end of the period$29,039 $23,940 $12,590 
v3.24.0.1
Business Combinations (Tables)
 12 Months Ended
Dec. 31, 2023
Business Combination and Asset Acquisition [Abstract]  
Schedule of Assets Acquired and Liabilities Assumed
The fair values 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 assets953 
Acquired Intangible Assets43,300 
Goodwill119,743 
Total assets acquired165,630 
Accounts Payable(254)
Accrued expense and other current liabilities(595)
Deferred revenue(5,736)
Deferred revenue, noncurrent(1,213)
Other noncurrent liabilities(1,267)
Total purchase price$156,565 
The fair values of assets acquired and liabilities assumed on the acquisition date are summarized as follows (in thousands):

Developed technology$3,100 
Goodwill4,962 
Total assets acquired8,062 
Accounts Payable(20)
Other noncurrent liabilities(430)
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 
v3.24.0.1
Segment and Geographic Information (Tables)
 12 Months Ended
Dec. 31, 2023
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:
December 31,
20232022
(in thousands)
United States$191,853 $184,753 
Rest of the world130,960 101,847 
Total property and equipment, net$322,813 $286,600 
v3.24.0.1
Organization and Basis of Presentation (Details) - Servers—network infrastructure
Jan. 31, 2024
Dec. 31, 2023
Property, Plant and Equipment [Line Items]    
Useful Lives   4 years
Subsequent Event    
Property, Plant and Equipment [Line Items]    
Useful Lives 5 years  
v3.24.0.1
Summary of Significant Accounting Policies - Narrative (Details)
 12 Months Ended
Dec. 31, 2023
USD ($)
segment
Dec. 31, 2022
USD ($)
Dec. 31, 2021
USD ($)
Jan. 01, 2022
USD ($)
Aug. 31, 2021
May 31, 2020
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]            
Amortization period 3 years          
Advertising expense $ 57,600,000 $ 43,500,000 $ 36,200,000      
Goodwill impairment charges 0 0 0      
Impairment of intangible assets, finite-lived $ 0 0 $ 0      
Number of reportable segments | segment 1          
Number of operating segments | segment 1          
Decrease in additional paid-in capital $ (1,784,566,000) (1,475,423,000)        
Accumulated deficit $ (1,023,840,000) $ (839,891,000)        
Cumulative Effect, Period of Adoption, Adjustment            
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]            
Accumulated deficit       $ 34,300,000    
Accounting Standards Update 2020-06            
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]            
Convertible notes       288,900,000    
Accounting Standards Update 2020-06 | Cumulative Effect, Period of Adoption, Adjustment            
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]            
Current portion of convertible senior notes       4,400,000    
Decrease in additional paid-in capital       $ 318,800,000    
Developed technology            
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]            
Estimated useful life of acquired developed technology 2 years          
Trade name            
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]            
Estimated useful life of acquired developed technology 2 years          
Customer relationships            
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]            
Estimated useful life of acquired developed technology 8 years          
2025 Notes | Convertible Debt            
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]            
Interest rate 0.75%         0.75%
2026 Notes | Convertible Debt            
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]            
Interest rate 0.00%       0.00%  
Capitalized internal-use software            
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]            
Useful life 3 years          
Outstanding and unsettled RSUs            
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]            
Vesting period 4 years          
Minimum            
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]            
Subscription and support term length 1 year          
Maximum            
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]            
Subscription and support term length 3 years          
v3.24.0.1
Summary of Significant Accounting Policies - Schedule of Useful Lives of Property and Equipment (Details)
Dec. 31, 2023
Servers—network infrastructure  
Property, Plant and Equipment [Line Items]  
Useful Lives 4 years
Buildings  
Property, Plant and Equipment [Line Items]  
Useful Lives 30 years
Office and computer equipment  
Property, Plant and Equipment [Line Items]  
Useful Lives 3 years
Office furniture  
Property, Plant and Equipment [Line Items]  
Useful Lives 3 years
Software  
Property, Plant and Equipment [Line Items]  
Useful Lives 3 years
v3.24.0.1
Revenue - Disaggregation of Revenue (Details) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2023
Dec. 31, 2022
Dec. 31, 2021
Disaggregation of Revenue [Line Items]      
Revenue $ 1,296,745 $ 975,241 $ 656,426
Channel partners      
Disaggregation of Revenue [Line Items]      
Revenue 202,404 122,522 73,802
Direct customers      
Disaggregation of Revenue [Line Items]      
Revenue 1,094,341 852,719 582,624
United States      
Disaggregation of Revenue [Line Items]      
Revenue 678,184 515,722 342,578
Europe, Middle East, and Africa      
Disaggregation of Revenue [Line Items]      
Revenue 356,569 258,291 172,129
Asia Pacific      
Disaggregation of Revenue [Line Items]      
Revenue 168,826 133,353 96,537
Other      
Disaggregation of Revenue [Line Items]      
Revenue $ 93,166 $ 67,875 $ 45,182
Geographic Concentration Risk | Revenue      
Disaggregation of Revenue [Line Items]      
Percentage of Revenue 100.00% 100.00% 100.00%
Geographic Concentration Risk | Revenue | United States      
Disaggregation of Revenue [Line Items]      
Percentage of Revenue 52.00% 53.00% 52.00%
Geographic Concentration Risk | Revenue | Europe, Middle East, and Africa      
Disaggregation of Revenue [Line Items]      
Percentage of Revenue 28.00% 26.00% 26.00%
Geographic Concentration Risk | Revenue | Asia Pacific      
Disaggregation of Revenue [Line Items]      
Percentage of Revenue 13.00% 14.00% 15.00%
Geographic Concentration Risk | Revenue | Other      
Disaggregation of Revenue [Line Items]      
Percentage of Revenue 7.00% 7.00% 7.00%
Sales Channel Concentration Risk | Revenue      
Disaggregation of Revenue [Line Items]      
Percentage of Revenue 100.00% 100.00% 100.00%
Sales Channel Concentration Risk | Revenue | Channel partners      
Disaggregation of Revenue [Line Items]      
Percentage of Revenue 16.00% 13.00% 11.00%
Sales Channel Concentration Risk | Revenue | Direct customers      
Disaggregation of Revenue [Line Items]      
Percentage of Revenue 84.00% 87.00% 89.00%
v3.24.0.1
Revenue - Additional Information (Details) - USD ($)
 12 Months Ended
Dec. 31, 2023
Dec. 31, 2022
Dec. 31, 2021
Revenue from Contract with Customer [Abstract]      
Revenue recognized $ 220,000,000 $ 116,000,000 $ 55,300,000
Impairment losses of deferred contract acquisition costs $ 0 $ 0 $ 0
v3.24.0.1
Revenue - Deferred Contract Acquisition Costs (Details) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2023
Dec. 31, 2022
Dec. 31, 2021
Capitalized Contract Cost [Roll Forward]      
Beginning balance $ 93,145 $ 70,320 $ 44,176
Capitalization of contract acquisition costs 101,465 67,940 55,411
Amortization of deferred contract acquisition costs (61,374) (45,115) (29,267)
Ending balance $ 133,236 $ 93,145 $ 70,320
v3.24.0.1
Revenue - Remaining Performance Obligations (Details)
$ in Millions
Dec. 31, 2023
USD ($)
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]  
Remaining performance obligation, amount $ 1,244.6
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2024-01-01  
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]  
Remaining performance obligation, percent 73.00%
Remaining performance obligation, expected timing of satisfaction 12 months
v3.24.0.1
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 ($)
Dec. 31, 2023
Dec. 31, 2022
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]    
Amortized Cost $ 86,864,000 $ 204,178,000
Amortized Cost 1,676,044,000 1,672,782,000
Unrealized Gain 3,078,000 66,000
Unrealized (Loss) (1,018,000) (11,885,000)
Fair Value 1,678,104,000 1,660,963,000
Level II    
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]    
Amortized Cost 1,584,820,000 1,459,613,000
Unrealized Gain 3,078,000 66,000
Unrealized (Loss) (1,018,000) (11,885,000)
Fair Value 1,586,880,000 1,447,794,000
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 86,864,000 204,178,000
Cash & Cash Equivalents | Fair Value, Recurring | Level II    
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]    
Fair Value 0 2,035,000
Available-for-sale Securities | Fair Value, Recurring    
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]    
Fair Value 1,586,880,000 1,445,759,000
Available-for-sale Securities | Fair Value, Recurring | Level II    
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]    
Fair Value 1,586,880,000 1,445,759,000
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 4,360,000 11,026,000
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
Corporate bonds | Level II    
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]    
Amortized Cost 312,510,000 258,617,000
Unrealized Gain 718,000 46,000
Unrealized (Loss) (378,000) (2,621,000)
Fair Value 312,850,000 256,042,000
Corporate bonds | Cash & Cash Equivalents | Fair Value, Recurring | Level II    
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]    
Fair Value 0 2,035,000
Corporate bonds | Available-for-sale Securities | Fair Value, Recurring | Level II    
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]    
Fair Value 312,850,000 254,007,000
Corporate bonds | 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
U.S. treasury securities | Level II    
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]    
Amortized Cost 1,020,167,000 818,379,000
Unrealized Gain 2,344,000 20,000
Unrealized (Loss) (544,000) (9,233,000)
Fair Value 1,021,967,000 809,166,000
U.S. treasury securities | Cash & Cash Equivalents | Fair Value, Recurring | Level II    
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]    
Fair Value 0 0
U.S. treasury securities | Available-for-sale Securities | Fair Value, Recurring | Level II    
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]    
Fair Value 1,021,967,000 809,166,000
U.S. treasury securities | 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
U.S. government agency securities | Level II    
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]    
Amortized Cost 84,154,000 25,283,000
Unrealized Gain 14,000 0
Unrealized (Loss) (96,000) (31,000)
Fair Value 84,072,000 25,252,000
U.S. government agency securities | Cash & Cash Equivalents | Fair Value, Recurring | Level II    
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]    
Fair Value 0 0
U.S. government agency securities | Available-for-sale Securities | Fair Value, Recurring | Level II    
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]    
Fair Value 84,072,000 25,252,000
U.S. government agency securities | 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
Commercial paper | Level II    
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]    
Amortized Cost 167,989,000 357,334,000
Unrealized Gain 2,000 0
Unrealized (Loss) 0 0
Fair Value 167,991,000 357,334,000
Commercial paper | Cash & Cash Equivalents | Fair Value, Recurring | Level II    
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]    
Fair Value 0 0
Commercial paper | Available-for-sale Securities | Fair Value, Recurring | Level II    
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]    
Fair Value 167,991,000 357,334,000
Commercial paper | 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
Cash    
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]    
Amortized Cost 51,189,000 87,719,000
Unrealized Gain 0 0
Unrealized (Loss) 0 0
Fair Value 51,189,000 87,719,000
Cash | Cash & Cash Equivalents | Fair Value, Recurring    
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]    
Fair Value 46,829,000 77,164,000
Cash | Available-for-sale Securities | Fair Value, Recurring    
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]    
Fair Value 0 0
Cash | Restricted Cash (Current and Non-Current) | Fair Value, Recurring    
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]    
Fair Value 4,360,000 10,555,000
Money market funds    
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]    
Unrealized Gain 0 0
Unrealized (Loss) 0 0
Money market funds | Level I    
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]    
Amortized Cost 40,035,000 125,450,000
Unrealized Gain 0 0
Unrealized (Loss) 0 0
Fair Value 40,035,000 125,450,000
Money market funds | Cash & Cash Equivalents | Fair Value, Recurring | Level I    
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]    
Fair Value 40,035,000 124,979,000
Money market funds | Available-for-sale Securities | Fair Value, Recurring | Level I    
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]    
Fair Value 0 0
Money market funds | Restricted Cash (Current and Non-Current) | Fair Value, Recurring | Level I    
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]    
Fair Value $ 0 $ 471,000
v3.24.0.1
Fair Value Measurements - Narrative (Details) - USD ($)
Dec. 31, 2023
Dec. 31, 2022
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]    
Restricted cash $ 1,838,000 $ 471,000
Amortized cost of available-for-sale investments with maturities less than one year 1,185,100,000 1,251,600,000
Amortized cost of available-for-sale investments with maturities greater than one year 399,700,000 205,900,000
Net unrealized losses on investments, net of tax 2,000,000 (11,900,000)
2026 Notes | Convertible Debt    
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]    
Debt instrument, fair value 1,171,400,000  
Money market funds    
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]    
Unrealized gain 0 0
Unrealized loss 0 0
Standby Letters of Credit    
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]    
Restricted cash $ 4,400,000 11,000,000
U.S. government agency securities    
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]    
Proceeds receivable from sale of securities   $ 37,500,000
v3.24.0.1
Balance Sheet Components - Allowance for Doubtful Accounts (Details) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2023
Dec. 31, 2022
Dec. 31, 2021
Allowance For Doubtful Accounts Receivable Current [Roll Forward]      
Beginning balance $ 3,134 $ 2,644 $ 1,703
Provision for bad debt 13,641 4,836 3,735
Write-off of uncollectible accounts receivable (10,779) (4,346) (2,794)
Ending balance $ 5,996 $ 3,134 $ 2,644
v3.24.0.1
Balance Sheet Components - Property and Equipment, Net (Details) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2023
Dec. 31, 2022
Dec. 31, 2021
Property, Plant and Equipment [Line Items]      
Gross property and equipment $ 541,293 $ 465,501  
Less accumulated depreciation and amortization (218,480) (178,901)  
Total property and equipment, net 322,813 286,600  
Depreciation and amortization expense 113,400 84,800 $ 62,300
Servers—network infrastructure      
Property, Plant and Equipment [Line Items]      
Gross property and equipment 330,295 239,828  
Construction in progress      
Property, Plant and Equipment [Line Items]      
Gross property and equipment 45,557 72,827  
Capitalized internal-use software      
Property, Plant and Equipment [Line Items]      
Gross property and equipment 75,163 88,541  
Depreciation and amortization expense 21,500 20,200 $ 17,900
Office and computer equipment      
Property, Plant and Equipment [Line Items]      
Gross property and equipment 32,043 30,577  
Office furniture      
Property, Plant and Equipment [Line Items]      
Gross property and equipment 9,003 6,547  
Software      
Property, Plant and Equipment [Line Items]      
Gross property and equipment 5,422 5,962  
Leasehold improvements      
Property, Plant and Equipment [Line Items]      
Gross property and equipment 42,984 20,392  
Asset retirement obligation      
Property, Plant and Equipment [Line Items]      
Gross property and equipment $ 826 $ 827  
v3.24.0.1
Balance Sheet Components - Goodwill (Details) - USD ($)
 3 Months Ended 12 Months Ended
Dec. 31, 2023
Dec. 31, 2023
Dec. 31, 2022
Dec. 31, 2021
Apr. 01, 2022
Business Acquisition [Line Items]          
Goodwill $ 148,047,000 $ 148,047,000 $ 148,047,000    
Goodwill impairment charges   0 0 $ 0  
Cash payments of intangible assets   20,546,000 19,758,000 $ 14,752,000  
Developed technology          
Business Acquisition [Line Items]          
Estimated fair value of intangible assets 7,100,000        
Cash payments of intangible assets 6,100,000        
Cash holdback of intangible assets $ 1,000,000 $ 1,000,000      
Vectrix          
Business Acquisition [Line Items]          
Goodwill, acquired during period     5,000,000    
Area 1          
Business Acquisition [Line Items]          
Goodwill         $ 119,743,000
Goodwill, acquired during period     $ 120,800,000    
v3.24.0.1
Balance Sheet Components - Acquired Intangible Assets, Net (Details) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2023
Dec. 31, 2022
Dec. 31, 2021
Finite-Lived Intangible Assets [Line Items]      
Gross Carrying Amount $ 60,483 $ 53,400  
Accumulated Amortization 40,919 20,917  
Acquired intangible assets, net 19,564 32,483  
Amortization of acquired intangible assets 20,000 15,200 $ 2,900
Developed technology      
Finite-Lived Intangible Assets [Line Items]      
Gross Carrying Amount 47,183 40,100  
Accumulated Amortization 36,893 19,191  
Acquired intangible assets, net 10,290 20,909  
Trade name      
Finite-Lived Intangible Assets [Line Items]      
Gross Carrying Amount 1,700 11,600  
Accumulated Amortization 1,488 1,088  
Acquired intangible assets, net 212 10,512  
Customer relationships      
Finite-Lived Intangible Assets [Line Items]      
Gross Carrying Amount 11,600 1,700  
Accumulated Amortization 2,538 638  
Acquired intangible assets, net $ 9,062 $ 1,062  
v3.24.0.1
Balance Sheet Components - Estimated Future Amortization Expense of Acquired Intangible Assets, Net (Details) - USD ($)
$ in Thousands
Dec. 31, 2023
Dec. 31, 2022
Organization, Consolidation and Presentation of Financial Statements [Abstract]    
2024 $ 9,010  
2025 4,391  
2026 1,450  
2027 1,450  
2028 1,450  
Thereafter 1,813  
Acquired intangible assets, net $ 19,564 $ 32,483
v3.24.0.1
Leases - Narrative (Details)
$ in Thousands
 12 Months Ended
Jul. 06, 2021
USD ($)
ft²
segment
Dec. 31, 2023
USD ($)
ft²
lease
office_space
Dec. 31, 2022
USD ($)
Dec. 31, 2021
USD ($)
Lessee, Lease, Description [Line Items]        
Total operating lease liabilities   $ 151,841 $ 140,899  
Number of leases with modified holding period | lease   3    
Additional undiscounted cash payment       $ 53,800
Number of leased office spaces | office_space   1    
Sublease income   $ 0 $ 0 $ 1,096
Lease not yet commenced, undiscounted amount   $ 35,900    
Lease not yet commenced, term of contract   3 years 8 months 12 days    
Weighted average remaining lease term   4 years 10 months 24 days 5 years 4 months 24 days  
Operating lease, weighted average discount rate, percent   4.60% 4.00%  
Lisbon Lease        
Lessee, Lease, Description [Line Items]        
Total operating lease liabilities   $ 15,700    
Austin Lease        
Lessee, Lease, Description [Line Items]        
Total operating lease liabilities $ 46,200      
Buildings        
Lessee, Lease, Description [Line Items]        
Area of office space | ft² 128,195 6,000    
Lease term 121 months 84 months    
Renewal term 5 years 12 months    
Market rate (in percent) 100.00% 100.00%    
Number of renewal options | segment 2      
Leases For Office Space        
Lessee, Lease, Description [Line Items]        
Operating lease, remaining lease term   7 years 7 months 6 days    
Co-location Asset Lease        
Lessee, Lease, Description [Line Items]        
Operating lease, remaining lease term   7 years 10 months 24 days    
v3.24.0.1
Leases - Schedule of Lease Costs (Details) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2023
Dec. 31, 2022
Dec. 31, 2021
Leases [Abstract]      
Operating lease cost $ 44,792 $ 36,332 $ 25,091
Sublease income 0 0 (1,096)
Total lease cost $ 44,792 $ 36,332 $ 23,995
v3.24.0.1
Leases - Lease Liability Maturities (Details) - USD ($)
$ in Thousands
Dec. 31, 2023
Dec. 31, 2022
Leases [Abstract]    
Year One $ 43,921 $ 33,902
Year Two 34,212 32,525
Year Three 30,003 25,340
Year Four 25,654 22,242
Year Five 14,479 19,172
Thereafter 21,302 24,864
Total lease payments 169,571 158,045
Less: Imputed interest (17,730) (17,146)
Total operating lease liabilities $ 151,841 $ 140,899
v3.24.0.1
Debt - 2026 Convertible Senior Notes (Details)
 1 Months Ended 12 Months Ended
Aug. 31, 2021
USD ($)
day
$ / shares
Dec. 31, 2023
USD ($)
Dec. 31, 2022
USD ($)
Dec. 31, 2021
USD ($)
Debt Instrument [Line Items]        
Gross proceeds from issuance of convertible senior notes | $   $ 0 $ 0 $ 1,293,750,000
2026 Notes | Convertible Debt        
Debt Instrument [Line Items]        
Debt principal amount | $ $ 1,293,800,000      
Interest rate 0.00% 0.00%    
Gross proceeds from issuance of convertible senior notes | $ $ 1,274,000,000      
Convertible debt, conversion ratio 0.0052263      
Conversion price (in dollars per share) | $ / shares $ 191.34      
Redemption price, percentage 100.00%      
Minimum redeemable face amount | $ $ 100,000,000      
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      
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%      
v3.24.0.1
Debt - 2026 Capped Call Transactions (Details) - USD ($)
$ / shares in Units, $ in Thousands, shares in Millions
 1 Months Ended 12 Months Ended
Aug. 31, 2021
Dec. 31, 2021
Debt Instrument [Line Items]    
Purchases of capped calls related to convertible senior notes   $ 86,293
2026 Notes | Convertible Debt    
Debt Instrument [Line Items]    
Purchases of capped calls related to convertible senior notes $ 86,300  
2026 Notes | Convertible Debt | Class A common stock    
Debt Instrument [Line Items]    
Shares covered by capped calls (in shares) 6.8  
2026 Notes | Capped Calls | Convertible Debt | 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  
v3.24.0.1
Debt - 2025 Convertible Senior Notes (Details)
 1 Months Ended 3 Months Ended 12 Months Ended
May 31, 2020
USD ($)
$ / shares
Sep. 30, 2023
USD ($)
shares
Jun. 30, 2023
USD ($)
Dec. 31, 2023
USD ($)
Dec. 31, 2022
USD ($)
shares
Dec. 31, 2021
USD ($)
shares
Debt Instrument [Line Items]            
Cash consideration paid in exchange of convertible senior debt       $ 0 $ 0 $ 370,647,000
Issuance of common stock for exchange of convertible senior notes       0 0 920,249,000
Loss on extinguishment of debt       $ 50,300,000 0 72,234,000
2025 Notes            
Debt Instrument [Line Items]            
Conversion price (in dollars per share) | $ / shares $ 37.43          
2025 Notes | Convertible Debt            
Debt Instrument [Line Items]            
Debt principal amount $ 575,000,000          
Interest rate 0.75%     0.75%    
Convertible debt, conversion ratio 0.0267187          
Repurchased face amount     $ 123,000,000     400,000,000
Cash consideration paid in exchange of convertible senior debt     172,700,000     400,700,000
Issuance of common stock for exchange of convertible senior notes           1,321,000,000
Loss on extinguishment of debt     50,300,000     72,200,000
Debt instrument, fair value           355,300,000
Amount outstanding       $ 0 156,790,000 $ 283,100,000
Effective interest rate           4.08%
Equity component of convertible debt           $ 965,700,000
Interest payable     500,000      
Deferred debt issuance cost, write-off     $ 1,100,000      
2025 Notes | Convertible Debt | Certain Holders Conversion            
Debt Instrument [Line Items]            
Convertible debt, conversion ratio 0.0285913          
Issuance of common stock for exchange of convertible senior notes   $ 35,400,000     $ 16,600,000  
2025 Notes | Convertible Debt | Class A common stock            
Debt Instrument [Line Items]            
Number of shares issued upon debt conversion (in shares) | shares   500,000     300,000 7,600,000
Debt conversion converted instrument additional shares initial conversion (in shares) | shares   1.8726        
v3.24.0.1
Debt - 2025 Capped Call Transactions (Details) - USD ($)
$ / shares in Units, $ in Thousands, shares in Millions
 12 Months Ended
May 31, 2020
Dec. 31, 2023
Dec. 31, 2021
Debt Instrument [Line Items]      
Purchases of capped calls related to convertible senior notes     $ 86,293
2025 Notes | Convertible Debt      
Debt Instrument [Line Items]      
Purchases of capped calls related to convertible senior notes   $ 67,300  
2025 Notes | Capped Calls | Convertible Debt | 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    
v3.24.0.1
Debt - Schedule of Net Carrying Amount of Notes (Details) - Convertible Debt - USD ($)
$ in Thousands
Dec. 31, 2023
Dec. 31, 2022
Dec. 31, 2021
2026 Notes      
Debt Instrument [Line Items]      
Principal $ 1,293,750 $ 1,293,750  
Unamortized debt issuance costs (10,388) (14,348)  
Carrying amount, net 1,283,362 1,279,402  
2025 Notes      
Debt Instrument [Line Items]      
Principal 0 158,429  
Unamortized debt issuance costs 0 (1,639)  
Carrying amount, net $ 0 $ 156,790 $ 283,100
v3.24.0.1
Debt - Schedule of Interest Components (Details) - Convertible Debt - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2023
Dec. 31, 2022
Dec. 31, 2021
2026 Notes      
Debt Instrument [Line Items]      
Coupon interest expense $ 0 $ 0 $ 0
Amortization of debt discount 0 0 17,971
Amortization of debt issuance costs 3,960 3,958 1,184
Total 3,960 3,958 19,155
2025 Notes      
Debt Instrument [Line Items]      
Coupon interest expense 477 1,201 3,162
Amortization of debt discount 0 0 25,834
Amortization of debt issuance costs 559 701 1,185
Total $ 1,036 $ 1,902 $ 30,181
v3.24.0.1
Commitments and Contingencies - Narrative (Details) - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2023
Dec. 31, 2022
Dec. 31, 2021
Commitments and Contingencies Disclosure [Abstract]      
Cost and expenses related to bandwidth and other co-location commitments $ 143.8 $ 119.0 $ 77.1
v3.24.0.1
Commitments and Contingencies - Schedule of Purchase Commitments (Details)
$ in Thousands
Dec. 31, 2023
USD ($)
Open purchase agreements  
Total $ 85,540
2024 28,635
2025 44,786
2026 5,647
2027 2,495
2028 749
Thereafter 3,228
Bandwidth and other co-location related commitments  
Total 113,284
2024 46,380
2025 28,325
2026 17,965
2027 13,443
2028 5,406
Thereafter 1,765
Other Commitments  
Total 1,000
2024 1,000
2025 0
2026 0
2027 0
2028 0
Thereafter 0
Total  
Total 199,824
2024 76,015
2025 73,111
2026 23,612
2027 15,938
2028 6,155
Thereafter $ 4,993
v3.24.0.1
Common Stock - Narrative (Details)
Dec. 31, 2023
vote
$ / shares
shares
Dec. 31, 2022
$ / 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) 298,088,556 286,560,947
Common stock, shares outstanding (in shares) 298,088,556 286,560,947
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) 39,443,337 43,524,514
Common stock, shares outstanding (in shares) 39,443,337 43,524,514
v3.24.0.1
Common Stock - Schedule of Common Stock Reserved for Future Issuance (Details) - shares
shares in Thousands
Dec. 31, 2023
Dec. 31, 2022
Class of Stock [Line Items]    
Shares of common stock reserved (in shares) 104,014 97,579
2025 Notes | Convertible Debt    
Class of Stock [Line Items]    
Shares of common stock reserved (in shares) 0 5,503
2026 Notes | Convertible Debt    
Class of Stock [Line Items]    
Shares of common stock reserved (in shares) 10,311 10,311
Remaining shares available for issuance under the 2019 Plan    
Class of Stock [Line Items]    
Shares of common stock reserved (in shares) 56,442 44,693
Stock options issued and outstanding    
Class of Stock [Line Items]    
Shares of common stock reserved (in shares) 12,523 15,886
Outstanding and unsettled RSUs    
Class of Stock [Line Items]    
Shares of common stock reserved (in shares) 10,894 10,196
Shares issuable pursuant to the ESPP    
Class of Stock [Line Items]    
Shares of common stock reserved (in shares) 13,844 10,990
v3.24.0.1
Stock-based Compensation - Narrative (Details)
 1 Months Ended 12 Months Ended
May 01, 2023
USD ($)
tranche
Apr. 01, 2022
USD ($)
shares
Feb. 14, 2022
shares
Feb. 29, 2024
shares
Jan. 31, 2024
shares
Sep. 30, 2019
USD ($)
shares
Dec. 31, 2023
USD ($)
$ / shares
shares
Dec. 31, 2022
USD ($)
$ / shares
shares
Dec. 31, 2021
USD ($)
$ / shares
shares
Dec. 31, 2019
shares
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]                    
Options unrecognized stock-based compensation expense | $             $ 5,000,000      
Stock-based compensation | $             281,364,000 $ 208,700,000 $ 93,447,000  
Stock-based compensation expense | $             $ 273,989,000 $ 202,777,000 90,137,000  
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
Number of new shares authorized for issuance (in shares)                   29,335,000
Number of additional shares authorized for issuance (in shares)                   37,326,953
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]                    
Unvested options exercisable (in shares)             401,212 2,728,545    
Total grant date fair value for vested options | $             $ 15,500,000 $ 12,500,000 $ 14,000,000  
Stock options issued and outstanding                    
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]                    
Vesting period             4 years      
Expiration period             10 years      
Weighted-average remaining vesting period             1 year 7 months 6 days      
Weighted-average grant date fair value for options granted (in dollars per share) | $ / shares                 $ 90.50  
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         $ 0      
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      
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      
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      
Stock options issued and outstanding | 2010 Plan And 2019 Plan                    
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]                    
Options unrecognized stock-based compensation expense | $             $ 195,800,000      
Weighted-average remaining vesting period             4 years 3 months 18 days      
Stock options with market conditions | Executive Officer                    
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]                    
Expiration period     10 years              
Stock options with market conditions | Other Key Employees                    
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]                    
Expiration period     10 years              
Other performance awards                    
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]                    
Weighted-average remaining vesting period             4 years 4 months 24 days      
Granted (in dollars per share) | $ / shares             $ 52.13 $ 55.80    
Stock-based compensation expense | $             $ 33,500,000 $ 39,500,000    
Unrecognized stock-based compensation expense | $             $ 187,900,000      
Other performance awards | Subsequent Event                    
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]                    
Options vesting during period (in shares)         224,250          
Other performance awards | Subsequent Event | Forecast                    
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]                    
Options vesting during period (in shares)       37,000            
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)     5,575,000              
Expiration period     10 years              
Number of separate tranches | tranche 9                  
Stock-based compensation | $ $ 25,800,000                  
Other performance awards | Class A common stock | Other Key Employees                    
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]                    
Number of shares granted (in shares)             1,290,000      
Outstanding and unsettled RSUs                    
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]                    
Vesting period             4 years      
Weighted-average remaining vesting period             2 years 10 months 24 days      
Number of shares granted (in shares)             6,428,000 6,367,000 2,203,000  
Granted (in dollars per share) | $ / shares             $ 62.24 $ 67.13 $ 108.87  
Stock-based compensation expense | $             $ 219,600,000 $ 137,400,000 $ 71,700,000  
Total grant date fair value for vested shares | $             209,400,000 $ 109,600,000 $ 57,900,000  
Unrecognized stock-based compensation expense | $             $ 635,700,000      
ESPP | 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      
Unrecognized stock-based compensation expense | $             $ 3,200,000      
Maximum ownership percentage threshold for participation           5.00%        
Maximum contribution percentage per employee           10.00%        
ESPP | 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           1 year        
Maximum number of shares available for repurchase for each employee (in shares)           1,500        
Maximum value of shares available for repurchase for each employee | $           $ 25,000        
Number of shares repurchased (in shares)             447,042 302,795    
ESPP | 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%        
v3.24.0.1
Stock-based Compensation - Schedule of Stock-based Awards (Details) - USD ($)
$ / shares in Units, shares in Thousands, $ in Thousands
 12 Months Ended
Dec. 31, 2023
Dec. 31, 2022
Dec. 31, 2021
Dec. 31, 2020
Shares Subject to Options Outstanding        
Beginning balance (in shares) 15,886 13,603 18,186  
Options granted (in shares) 1,290 5,733 100  
Options exercised (in shares) (2,989) (2,484) (4,455)  
Options cancelled, forfeited, expired (in shares) (1,664) (966) (228)  
Ending balance (in shares) 12,523 15,886 13,603 18,186
Vested and expected to vest, Shares Subject to Options Outstanding (in shares) 12,521      
Exercisable, Shares Subject to Options Outstanding (in shares) 7,534      
Weighted- Average Exercise Price per Option        
Beginning balance (in dollars per share) $ 34.21 $ 12.47 $ 3.92  
Options granted (in dollars per share) 51.21 97.71 137.17  
Options exercised (in dollars per share) 4.96 4.08 4.83  
Options cancelled (in dollars per share) 62.62 74.88 2.67  
Ending balance (in dollars per share) 21.03 $ 34.21 $ 12.47 $ 3.92
Vested and expected to vest, Weighted- Average Exercise Price per Option (in dollars per share) 21.03      
Options exercisable, Weighted- Average Exercise Price per Option (in dollars per share) $ 4.15      
Weighted- Average Remaining Contractual Terms (in years)        
Stock options outstanding, weighted-average remaining contractual term 5 years 8 months 12 days 6 years 3 months 18 days 6 years 7 years
Stock options vested and expected to vest, weighted-average remaining contractual term 5 years 8 months 12 days      
Stock options exercisable, weighted-average remaining contractual term 3 years 9 months 18 days      
Aggregate Intrinsic Value        
Stock options outstanding, aggregate intrinsic value $ 787,633 $ 451,782 $ 1,726,440 $ 1,310,650
Stock options exercised, aggregate intrinsic value 171,225 $ 180,990 $ 503,243  
Stock options vested and expected to vest, aggregate intrinsic value 787,469      
Stock options exercisable, aggregate intrinsic value $ 601,503      
v3.24.0.1
Stock-based Compensation - Schedule of Assumptions Used to Determine the Fair Value of Stock Options Granted (Details)
 12 Months Ended
Dec. 31, 2023
Dec. 31, 2022
Dec. 31, 2021
Other performance awards      
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]      
Expected term (in years) 10 years 9 years 9 months 29 days  
Expected volatility 63.70% 59.50%  
Risk-free interest rate 3.90% 3.00%  
Dividend yield 0.00% 0.00%  
Stock options issued and outstanding      
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]      
Expected term (in years)     6 years
Expected volatility     59.60%
Risk-free interest rate     1.30%
Dividend yield     0.00%
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%    
v3.24.0.1
Stock-based Compensation - Schedule of Restricted Stock Units Activity (Details) - $ / shares
shares in Thousands
 12 Months Ended
Dec. 31, 2023
Dec. 31, 2022
Dec. 31, 2021
Restricted Stock and Restricted Stock Units      
Restricted Stock and RSUs*      
Unvested and outstanding, beginning balance (in shares) 9,580 7,456 8,650
Forfeited (in shares) (1,161) (779) (681)
Unvested, ending balance (in shares) 10,894 9,580 7,456
Vested and not yet released, Restricted Stock and RSUs (in shares) 0 0 0
Outstanding at end of period, Restricted Stock and RSUs (in shares) 10,894 9,580 7,456
Weighted-Average Grant Date Fair Value      
Unvested, weighted average grant date fair value, beginning balance (in dollars per share) $ 61.64 $ 47.36 $ 21.41
Forfeited (in dollars per share) 65.87 64.83 29.78
Unvested, weighted average grant date fair value, ending balance (in dollars per share) 65.93 61.64 47.36
Vested and not yet released, weighted-average grant date fair value (in dollars per share) 0 0 0
Outstanding at end of period, weighted-average grant date fair value (in dollars per share) $ 65.93 $ 61.14 $ 47.36
Restricted Stock Units (RSUs)      
Restricted Stock and RSUs*      
Granted (in shares) 6,428 6,367 2,203
Vested (in shares) (3,689) (2,848) (2,734)
Weighted-Average Grant Date Fair Value      
Granted (in dollars per share) $ 62.24 $ 67.13 $ 108.87
Vested (in dollars per share) $ 56.75 $ 38.49 $ 21.17
Restricted stock      
Restricted Stock and RSUs*      
Granted (in shares)   52 48
Vested (in shares)   (668) (9)
Weighted-Average Grant Date Fair Value      
Granted (in dollars per share)   $ 100.29 $ 167.69
Vested (in dollars per share)   $ 19.96 $ 0
v3.24.0.1
Stock-based Compensation - Schedule of Fair Value Assumptions for Employee Stock Purchase Plan (Details) - ESPP
 12 Months Ended
Dec. 31, 2023
Dec. 31, 2022
Dec. 31, 2021
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]      
Expected term (in years) 6 months 6 months 6 months
Risk-free interest rate 5.20% 3.30% 0.10%
Expected volatility 68.90% 100.60% 58.90%
Dividend yield 0.00% 0.00% 0.00%
v3.24.0.1
Stock-based Compensation - Schedule of Stock-based Compensation Expense (Details) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2023
Dec. 31, 2022
Dec. 31, 2021
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]      
Total stock-based compensation expense $ 273,989 $ 202,777 $ 90,137
Cost of revenue      
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]      
Total stock-based compensation expense 7,967 6,251 2,583
Sales and marketing      
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]      
Total stock-based compensation expense 73,682 50,317 27,277
Research and development      
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]      
Total stock-based compensation expense 132,417 103,276 44,196
General and administrative      
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]      
Total stock-based compensation expense $ 59,923 $ 42,933 $ 16,081
v3.24.0.1
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
 12 Months Ended
Dec. 31, 2023
Dec. 31, 2022
Dec. 31, 2021
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items]      
Net loss attributable to common stockholders $ (183,949) $ (193,381) $ (260,309)
Weighted-average shares used in computing net loss per share attributable to common stockholders, basic (in shares) 333,656 326,332 312,321
Weighted-average shares used in computing net loss per share attributable to common stockholders, diluted (in shares) 333,656 326,332 312,321
Net loss per share attributable to common stockholders, basic (in dollars per share) $ (0.55) $ (0.59) $ (0.83)
Net loss per share attributable to common stockholders, diluted (in dollars per share) $ (0.55) $ (0.59) $ (0.83)
Class A common stock | Common Stock      
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items]      
Net loss attributable to common stockholders $ (161,296) $ (167,770) $ (219,939)
Weighted-average shares used in computing net loss per share attributable to common stockholders, basic (in shares) 292,568 283,114 263,884
Weighted-average shares used in computing net loss per share attributable to common stockholders, diluted (in shares) 292,568 283,114 263,884
Net loss per share attributable to common stockholders, basic (in dollars per share) $ (0.55) $ (0.59) $ (0.83)
Net loss per share attributable to common stockholders, diluted (in dollars per share) $ (0.55) $ (0.59) $ (0.83)
Class B common stock | Common Stock      
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items]      
Net loss attributable to common stockholders $ (22,653) $ (25,611) $ (40,370)
Weighted-average shares used in computing net loss per share attributable to common stockholders, basic (in shares) 41,088 43,218 48,437
Weighted-average shares used in computing net loss per share attributable to common stockholders, diluted (in shares) 41,088 43,218 48,437
Net loss per share attributable to common stockholders, basic (in dollars per share) $ (0.55) $ (0.59) $ (0.83)
Net loss per share attributable to common stockholders, diluted (in dollars per share) $ (0.55) $ (0.59) $ (0.83)
v3.24.0.1
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
 12 Months Ended
Dec. 31, 2023
Dec. 31, 2022
Dec. 31, 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) 30,444 38,301 34,649
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) 0 4,233 4,676
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 6,761 6,762
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) 38 900 2,129
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) 12,523 15,886 13,603
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) 10,932 10,273 7,417
Shares issuable pursuant to the ESPP      
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) 189 248 62
v3.24.0.1
Income Taxes - Schedule of Income (Loss) Before Income Taxes (Details) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2023
Dec. 31, 2022
Dec. 31, 2021
Income Tax Disclosure [Abstract]      
Domestic $ (210,547) $ (219,586) $ (272,995)
Foreign 32,685 28,853 25,019
Loss before income taxes $ (177,862) $ (190,733) $ (247,976)
v3.24.0.1
Income Taxes - Schedule of Provision for Income Taxes (Details) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2023
Dec. 31, 2022
Dec. 31, 2021
Current expense:      
Federal $ 513 $ 332 $ 722
State 324 1 143
Foreign 2,986 2,455 2,730
Total current provision for income taxes 3,823 2,788 3,595
Deferred expense (benefit):      
Federal 0 (1,124) 0
State 0 (573) 0
Foreign 2,264 1,557 8,738
Total deferred provision for (benefit from) income taxes 2,264 (140) 8,738
Total provision for income taxes $ 6,087 $ 2,648 $ 12,333
v3.24.0.1
Income Taxes - Reconciliation of Effective Tax Rate (Details)
 12 Months Ended
Dec. 31, 2023
Dec. 31, 2022
Dec. 31, 2021
Income Tax Disclosure [Abstract]      
Expected benefit at U.S. federal statutory rate 21.00% 21.00% 21.00%
State income taxes, net of federal tax benefits (0.10%) 0.20% 0.00%
Foreign income or losses taxed at different rates 1.00% 1.10% (2.50%)
Stock-based compensation 12.40% 18.70% 43.60%
Change in valuation allowance (30.60%) (41.20%) (66.40%)
Withholding taxes (0.30%) (0.20%) (0.30%)
Gain/loss on convertible senior notes (5.10%) 0.00% (0.40%)
Miscellaneous permanent items (1.70%) (1.00%) 0.00%
Total provision for income taxes (3.40%) (1.40%) (5.00%)
v3.24.0.1
Income Taxes - Schedule of Deferred Tax Assets and Liabilities (Details) - USD ($)
$ in Thousands
Dec. 31, 2023
Dec. 31, 2022
Deferred tax assets:    
Net operating loss carryforwards $ 390,405 $ 373,655
Tax credit carryforwards 65,390 51,925
Capitalized research and development expenditures 71,617 36,886
Operating lease liabilities 36,609 33,790
Business interest carryforwards 1,244 15,762
Stock-based compensation 35,786 27,766
Accrued expenses and reserves 4,650 2,770
Capitalized contract expenditures 32,425 0
Depreciation and amortization 129 3
Other 2,106 919
Gross deferred tax assets 640,361 543,476
Valuation allowance (552,165) (477,638)
Total deferred tax assets 88,196 65,838
Deferred tax liabilities:    
Right-of-use assets (33,337) (31,586)
Deferred commissions (32,807) (23,039)
Capitalized internal-use software (3,909) (4,638)
Depreciation and amortization (25,045) (11,197)
Other (57) (73)
Total deferred tax liabilities (95,155) (70,533)
Deferred tax liabilities $ (6,959) $ (4,695)
v3.24.0.1
Income Taxes - Narrative (Details) - USD ($)
 12 Months Ended
Dec. 31, 2023
Dec. 31, 2022
Dec. 31, 2021
Income Tax Contingency [Line Items]      
Valuation allowance $ (552,165,000) $ (477,638,000)  
Increase in valuation allowance 74,600,000 208,100,000 $ 194,400,000
Amount of unrecognized tax benefits that would impact the effective income tax rate 300,000    
Amount of unrecognized tax benefits that would impact deferred tax assets 28,700,000    
Income tax expense related to interest and penalties 0 0 $ 0
Her Majesty's Revenue and Customs (HMRC)      
Income Tax Contingency [Line Items]      
Net operating loss carryforwards 207,200,000 178,500,000  
Federal      
Income Tax Contingency [Line Items]      
Net operating loss carryforwards 1,385,100,000 1,338,500,000  
Federal | Research and development tax credit carryforward      
Income Tax Contingency [Line Items]      
Tax credit carryforwards 63,600,000 49,700,000  
State      
Income Tax Contingency [Line Items]      
Net operating loss carryforwards 756,100,000 757,400,000  
State | Research and development tax credit carryforward      
Income Tax Contingency [Line Items]      
Tax credit carryforwards 29,800,000 25,900,000  
Foreign      
Income Tax Contingency [Line Items]      
Tax credit carryforwards $ 1,800,000 $ 1,800,000  
v3.24.0.1
Income Taxes - Reconciliation of Gross Unrecognized Tax Benefits (Details) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2023
Dec. 31, 2022
Dec. 31, 2021
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward]      
Balance as of the beginning of the period $ 23,940 $ 12,590 $ 5,682
Increases for tax positions related to the prior year 590 5,753 1,784
Decreases for tax positions related to the prior year (243) 0 0
Additions for tax positions related to the current year 4,752 5,597 5,124
Balance as of the end of the period $ 29,039 $ 23,940 $ 12,590
v3.24.0.1
Business Combinations - Narrative (Details) - USD ($)
 12 Months Ended
Apr. 01, 2022
Jan. 14, 2022
Oct. 15, 2021
Dec. 31, 2023
Dec. 31, 2022
Dec. 31, 2022
Dec. 31, 2021
Jan. 01, 2022
Business Acquisition [Line Items]                
Cash paid for acquisitions, net of cash acquired       $ 6,083,000   $ 88,187,000 $ 5,605,000  
Stock-based compensation expense       $ 273,989,000   $ 202,777,000 90,137,000  
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, net of cash acquired 82,600,000              
Cash acquired 2,500,000              
Value of shares issued 63,500,000              
Payments to settle acquire's outstanding debt 4,100,000              
Goodwill expected to be tax deductible               $ 0
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     $ 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              
Vectrix, Inc.                
Business Acquisition [Line Items]                
Consideration transferred   $ 7,600,000            
Cash paid for acquisitions, net of cash acquired   4,300,000            
Cash acquired   800,000            
Value of shares issued   $ 2,000,000            
Contingent consideration, liability, period   18 months            
Payments to settle acquire's outstanding debt   $ 2,000,000            
Compensation arrangements value         $ 8,000,000      
Consideration held back   1,300,000            
Compensation arrangement with individual, compensation expense   $ 2,600,000            
Vectrix, Inc. | Developed technology                
Business Acquisition [Line Items]                
Estimated useful life of acquired developed technology   2 years            
Zaraz                
Business Acquisition [Line Items]                
Consideration transferred     $ 7,200,000          
Cash paid for acquisitions, net of cash acquired     5,600,000          
Cash acquired     800,000          
Value of shares issued     1,600,000          
Payments to settle acquire's outstanding debt     1,100,000          
Compensation arrangements value     $ 6,500,000          
Compensation arrangement with individual, compensation expense             $ 500,000  
Zaraz | Developed technology                
Business Acquisition [Line Items]                
Estimated useful life of acquired developed technology     2 years          
v3.24.0.1
Business Combinations - Schedule of Assets Acquired and Liabilities Assumed (Details) - USD ($)
$ in Thousands
Dec. 31, 2023
Dec. 31, 2022
Apr. 01, 2022
Jan. 14, 2022
Oct. 15, 2021
Business Acquisition [Line Items]          
Goodwill $ 148,047 $ 148,047      
Area 1 Security, Inc.          
Business Acquisition [Line Items]          
Accounts receivable, net     $ 1,634    
Prepaids and other current assets     953    
Acquired Intangible Assets     43,300    
Goodwill     119,743    
Total assets acquired     165,630    
Accounts Payable     (254)    
Accrued expense and other current liabilities     (595)    
Deferred revenue     (5,736)    
Deferred revenue, noncurrent     (1,213)    
Other noncurrent liabilities     (1,267)    
Total purchase price     $ 156,565    
Vectrix, Inc.          
Business Acquisition [Line Items]          
Goodwill       $ 4,962  
Total assets acquired       8,062  
Accounts Payable       (20)  
Other noncurrent liabilities       (430)  
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
Accrued compensation         (82)
Other noncurrent liabilities         (322)
Total purchase price         7,172
Zaraz | Developed technology          
Business Acquisition [Line Items]          
Developed technology         $ 1,400
v3.24.0.1
Segment and Geographic Information - Narrative (Details)
 12 Months Ended
Dec. 31, 2023
segment
Segment Reporting [Abstract]  
Number of operating segments 1
v3.24.0.1
Segment and Geographic Information - Schedule of Property and Equipment, Net by Geographic Area (Details) - USD ($)
$ in Thousands
Dec. 31, 2023
Dec. 31, 2022
Segment Reporting Information [Line Items]    
Property and equipment, net $ 322,813 $ 286,600
United States    
Segment Reporting Information [Line Items]    
Property and equipment, net 191,853 184,753
Rest of the world    
Segment Reporting Information [Line Items]    
Property and equipment, net $ 130,960 $ 101,847