FASTLY, INC., 10-K filed on 3/1/2022
Annual Report
v3.22.0.1
Cover Page - USD ($)
$ in Billions
12 Months Ended
Dec. 31, 2021
Feb. 18, 2022
Jun. 30, 2021
Cover [Abstract]      
Document Type 10-K    
Document Annual Report true    
Document Period End Date Dec. 31, 2021    
Current Fiscal Year End Date --12-31    
Document Transition Report false    
Entity File Number 001-38897    
Entity Registrant Name FASTLY, INC.    
Entity Incorporation, State or Country Code DE    
Entity Tax Identification Number 27-5411834    
Entity Address, Address Line One 475 Brannan Street, Suite 300    
Entity Address, City or Town San Francisco    
Entity Address, State or Province CA    
Entity Address, Postal Zip Code 94107    
City Area Code 844    
Local Phone Number 432-7859    
Title of 12(b) Security Class A Common Stock, $0.00002 par value    
Trading Symbol FSLY    
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    
Entity Shell Company false    
Entity Public Float     $ 5.6
Entity Common Stock, Shares Outstanding   120,300,000  
Documents Incorporated by Reference Portions of the registrant’s Definitive Proxy Statement relating to the 2022 Annual Meeting of Stockholders are incorporated by reference into Part III of this Annual Report on Form 10-K where indicated. Such Definitive Proxy Statement will be filed with the Securities and Exchange Commission within 120 days after the end of the registrant’s fiscal year ended December 31, 2021.    
Entity Central Index Key 0001517413    
Document Fiscal Year Focus 2021    
Document Fiscal Period Focus FY    
Amendment Flag false    
v3.22.0.1
Audit Information
12 Months Ended
Dec. 31, 2021
Audit Information [Abstract]  
Auditor Name Deloitte & Touche LLP
Auditor Location San Francisco, California
Auditor Firm ID 34
v3.22.0.1
CONSOLIDATED BALANCE SHEETS - USD ($)
$ in Thousands
Dec. 31, 2021
Dec. 31, 2020
Current assets:    
Cash and cash equivalents $ 166,068 $ 62,900
Marketable securities, current 361,795 131,283
Accounts receivable, net of allowance for credit losses of $3,311 and $3,248 as of December 31, 2021 and December 31, 2020, respectively 64,625 50,258
Restricted cash 0 87
Prepaid expenses and other current assets 32,160 16,728
Total current assets 624,648 261,256
Property and equipment, net 166,961 95,979
Operating lease right-of-use assets, net 69,631 60,019
Goodwill 636,805 635,590
Intangible assets, net 102,596 121,742
Marketable securities, non-current 528,911 20,448
Other assets 29,468 24,917
Total assets 2,159,020 1,219,951
Current liabilities:    
Accounts payable 9,257 9,150
Accrued expenses 36,112 34,334
Finance lease liabilities, current 21,125 11,033
Operating lease liabilities, current 20,271 19,895
Other current liabilities 45,107 19,677
Total current liabilities 131,872 94,089
Long-term debt 933,205 0
Finance lease liabilities, noncurrent 22,293 14,707
Operating lease liabilities, noncurrent 55,114 44,890
Other long-term liabilities 2,583 4,400
Total liabilities 1,145,067 158,086
Commitments and contingencies (Note 10)
Stockholders’ equity:    
Class A and Class B common stock, $0.00002 par value; 1,094,129,050 and 1,094,129,050 shares authorized as of December 31, 2021 and 2020, respectively; 118,810,611 and 113,623,196 shares issued and outstanding at December 31, 2021 and 2020, respectively 2 2
Additional paid-in capital 1,527,468 1,350,050
Accumulated other comprehensive income (loss) (2,627) 6
Accumulated deficit (510,890) (288,193)
Total stockholders’ equity 1,013,953 1,061,865
Total liabilities and stockholders’ equity $ 2,159,020 $ 1,219,951
v3.22.0.1
CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($)
$ in Thousands
Dec. 31, 2021
Dec. 31, 2020
Dec. 31, 2019
Statement of Financial Position [Abstract]      
Allowance for doubtful accounts $ 3,311 $ 3,248 $ 1,816
Common stock, par value (in dollars per share) $ 0.00002 $ 0.00002  
Common stock, shares authorized (in shares) 1,094,129,050 1,094,129,050  
Common stock, shares issued (in shares) 118,810,611 113,623,196  
Common stock, shares outstanding (in shares) 118,810,611 113,623,196  
v3.22.0.1
CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($)
shares in Thousands, $ in Thousands
12 Months Ended
Dec. 31, 2021
Dec. 31, 2020
Dec. 31, 2019
Income Statement [Abstract]      
Revenue $ 354,330 $ 290,874 $ 200,462
Cost of revenue 167,002 120,007 88,322
Gross profit 187,328 170,867 112,140
Operating expenses:      
Research and development 126,859 74,814 46,492
Sales and marketing 152,645 101,181 71,097
General and administrative 126,845 102,084 41,099
Total operating expenses 406,349 278,079 158,688
Loss from operations (219,021) (107,212) (46,548)
Interest income 1,282 1,628 3,287
Interest expense (5,245) (1,549) (5,236)
Other income (expense), net 356 (279) (2,561)
Loss before income tax expense (benefit) (222,628) (107,412) (51,058)
Income tax expense (benefit) 69 (11,480) 492
Net loss $ (222,697) $ (95,932) $ (51,550)
Net loss per share attributable to common stockholders, basic (in dollars per share) $ (1.92) $ (0.93) $ (0.75)
Net loss per share attributable to common stockholders, diluted (in dollars per share) $ (1.92) $ (0.93) $ (0.75)
Weighted-average shares used in computing net loss per share attributable to common stockholders, basic (in shares) 116,053 103,552 68,350
Weighted-average shares used in computing net loss per share attributable to common stockholders, diluted (in shares) 116,053 103,552 68,350
v3.22.0.1
CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS - USD ($)
$ in Thousands
12 Months Ended
Dec. 31, 2021
Dec. 31, 2020
Dec. 31, 2019
Statement of Other Comprehensive Income [Abstract]      
Net loss $ (222,697) $ (95,932) $ (51,550)
Other comprehensive income (loss);      
Foreign currency translation adjustment (286) (135) 111
Gain (loss) on investments in available-for-sale-securities (2,347) (55) 121
Total other comprehensive income (loss) (2,633) (190) 232
Comprehensive loss $ (225,330) $ (96,122) $ (51,318)
v3.22.0.1
CONSOLIDATED STATEMENTS OF CONVERTIBLE PREFERRED STOCK AND STOCKHOLDERS’ EQUITY (DEFICIT) - USD ($)
$ in Thousands
Total
Cumulative Effect, Period of Adoption, Adjustment
Conversion of convertible preferred stock to Class B common stock
Conversion of Class B common stock to Class A common stock
Common Class B
Convertible Preferred Shares
Common Stock
Conversion of Class B common stock to Class A common stock
Common Stock
Common Class A
Common Stock
Common Class A
Vesting of restricted stock units
Common Stock
Common Class A
Revest Shares
Common Stock
Common Class A
Conversion of Class B common stock to Class A common stock
Common Stock
Common Class B
Common Stock
Common Class B
Conversion of convertible preferred stock to Class B common stock
Common Stock
Common Class B
Conversion of Class B common stock to Class A common stock
Additional Paid-in Capital
Additional Paid-in Capital
Conversion of convertible preferred stock to Class B common stock
Treasury Stock
Accumulated Other Comprehensive Income (Loss)
Accumulated Deficit
Accumulated Deficit
Cumulative Effect, Period of Adoption, Adjustment
Convertible Preferred Stock, beginning balance (in shares) at Dec. 31, 2018           53,630,213                            
Convertible Preferred Stock, beginning balance at Dec. 31, 2018           $ 219,584                            
Increase (Decrease) in Temporary Equity [Roll Forward]                                        
Conversion of convertible preferred stock to Class B common stock (in shares)           (53,630,213)                            
Conversion of convertible preferred stock to Class B common stock           $ (219,584)                            
Convertible Preferred Stock, ending balance (in shares) at Dec. 31, 2019           0                            
Convertible Preferred Stock, ending balance at Dec. 31, 2019           $ 0                            
Beginning balance (in shares) at Dec. 31, 2018               0       25,025,836                
Beginning balance at Dec. 31, 2018 $ (131,927)             $ 0       $ 1     $ 16,403   $ (2,109) $ (36) $ (146,186)  
Increase (Decrease) in Stockholders' Equity [Roll Forward]                                        
Number of shares converted (in shares)                     46,422,400   53,630,213 46,422,400            
Conversion of stock     $ 219,584 $ 0             $ 1   $ 1 $ (1)   $ 219,583        
Conversion of convertible preferred stock warrants into Class B common stock warrants 5,665                           5,665          
Issuance of Class A common stock, net of underwriting discounts (in shares)               12,937,500                        
Issuance of Class A common stock, net of underwriting discounts $ 186,912                           186,912          
Exercise of stock options (in shares) 2,650,000             1,289,600       1,211,230                
Exercise of stock options $ 5,579                           5,579          
Exercise of common stock warrants (in shares)                       224,102                
Vesting of early exercised stock options (in shares)                       162,101                
Vesting of early exercised stock options 620                           620          
Issuance of common stock under (ESPP in shares)               305,194                        
Shares issued under ESPP 4,150                           4,150          
Stock-based compensation 12,586                           12,586          
Repayment of stockholder note (in shares)                       31,939                
Repayment of shareholder note 74                           74          
Retirement of treasury stock 0                           (2,109)   2,109      
Net loss (51,550)                                   (51,550)  
Other comprehensive income (loss) 232                                 232    
Ending balance (in shares) at Dec. 31, 2019               60,954,694       33,863,021                
Ending balance at Dec. 31, 2019 $ 257,652 $ 5,727           $ 1       $ 1     449,463   0 196 (192,009) $ 5,727
Convertible Preferred Stock, ending balance (in shares) at Dec. 31, 2020 0         0                            
Convertible Preferred Stock, ending balance at Dec. 31, 2020           $ 0                            
Increase (Decrease) in Stockholders' Equity [Roll Forward]                                        
Number of shares converted (in shares)         144,635           23,887,874     23,887,874            
Conversion of stock             $ 0       $ 0     $ 0            
Issuance of Class A common stock, net of underwriting discounts (in shares)               6,900,000                        
Issuance of Class A common stock, net of underwriting discounts $ 274,177                           274,177          
Shares issued related to a business combination (in shares)               6,367,709                        
Shares issued related to a business combination 622,595                           622,595          
Value of equity awards assumed in a business combination 1,129                           1,129          
Restriction of stock awards (in shares)               (896,499)                        
Restriction of stock awards $ (87,714)                           (87,714)          
Vesting of restricted stock awards (in shares) 112,062                                      
Exercise of stock options (in shares) 4,360,000             4,360,205       0                
Exercise of stock options $ 15,273             $ 0             15,273          
Exercise of common stock warrants (in shares)                       144,635                
Vesting of early exercised stock options (in shares)                       108,918                
Vesting of early exercised stock options 467                           467          
Vesting of restricted stock (in shares)               1,377,239                        
Issuance of common stock under (ESPP in shares)               331,212                        
Shares issued under ESPP 8,193                           8,193          
Stock-based compensation 66,467                           66,467          
Net loss (95,932)                                   (95,932)  
Other comprehensive income (loss) (190)                                 (190)    
Ending balance (in shares) at Dec. 31, 2020               103,394,496       10,228,700                
Ending balance at Dec. 31, 2020 $ 1,061,865 $ (252)           $ 1       $ 1     1,350,050   0 6 (288,193) $ (252)
Convertible Preferred Stock, ending balance (in shares) at Dec. 31, 2021 0         0                            
Convertible Preferred Stock, ending balance at Dec. 31, 2021           $ 0                            
Increase (Decrease) in Stockholders' Equity [Roll Forward]                                        
Number of shares converted (in shares)                     10,271,795     10,271,795            
Conversion of stock       $ 0             $ 1     $ (1)            
Exercise of stock options (in shares) 2,188,000             2,188,363                        
Exercise of stock options $ 12,626                           12,626          
Vesting of early exercised stock options (in shares)               47,882       43,095                
Vesting of early exercised stock options 405                           405          
Vesting of restricted stock (in shares)                 1,999,557 448,248                    
Sale of unvested restricted stock awards (in shares)               224,124                        
Proceeds from sale of restricted shares 10,655                           10,655          
Issuance of common stock under (ESPP in shares)               236,146                        
Shares issued under ESPP 8,798                           8,798          
Stock-based compensation 144,934                           144,934          
Net loss (222,697)                                   (222,697)  
Other comprehensive income (loss) (2,633)                                 (2,633)    
Ending balance (in shares) at Dec. 31, 2021               118,810,611       0                
Ending balance at Dec. 31, 2021 $ 1,013,953             $ 2       $ 0     $ 1,527,468   $ 0 $ (2,627) $ (510,890)  
v3.22.0.1
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($)
$ in Thousands
12 Months Ended
Dec. 31, 2021
Dec. 31, 2020
Dec. 31, 2019
Cash flows from operating activities:      
Net loss $ (222,697) $ (95,932) $ (51,550)
Adjustments to reconcile net loss to net cash used in operating activities:      
Depreciation and amortization 28,799 19,979 16,553
Amortization of acquired intangibles 21,238 5,078 0
Amortization of right-of-use assets and other 26,883 21,765 0
Amortization of deferred rent 0 0 (711)
Amortization of debt issuance costs 3,185 219 1,909
Amortization of deferred contract costs 6,294 3,516 2,294
Stock-based compensation 140,488 64,433 12,145
Provision for credit losses and doubtful accounts 196 1,719 360
Change in fair value of preferred stock warrant liabilities 0 0 2,404
Other adjustments 2,225 624 (591)
Interest paid on capital leases (1,754) (688) (364)
(Gain) loss on disposals of property and equipment (300) 653 108
Tax benefit related to release of valuation allowance 0 (12,950) 0
Changes in operating assets and liabilities:      
Accounts receivable (14,563) (9,264) (12,767)
Prepaid expenses and other current assets (4,777) (5,550) (2,666)
Other assets (10,423) (17,162) (3,945)
Accounts payable 146 4,059 2,391
Accrued expenses 4,261 12,992 4,401
Operating lease liabilities (26,447) (18,264) 0
Other liabilities 8,764 4,857 (1,274)
Net cash used in operating activities (38,482) (19,916) (31,303)
Cash flows from investing activities:      
Purchases of marketable securities (928,155) (269,059) (190,980)
Sales of marketable securities 66,527 143,241 52,589
Maturities of marketable securities 118,085 88,719 70,813
Acquisition of business, net of cash acquired (1,169) (200,988) 0
Proceeds from sale of property and equipment 588 575 0
Purchases of property and equipment (34,816) (29,569) (14,609)
Capitalized internal-use software (13,479) (6,131) (4,856)
Purchases of intangible assets (2,092) (1,811) (635)
Net cash used in investing activities (794,511) (275,023) (87,678)
Cash flows from financing activities:      
Proceeds from initial public offering, net of underwriting fees 0 0 192,510
Proceeds from follow-on public offering, net of underwriting fees 0 274,896 0
Issuance of convertible note, net of issuance costs 930,775 0 0
Proceeds from borrowings under notes payable 0 0 20,300
Payments of debt issuance costs (1,351) 0 (231)
Repayments of notes payable 0 (20,300) (49,167)
Repayments of finance lease liabilities (13,568) (5,773) (1,370)
Proceeds from Employee Stock Purchase Plan 8,069 9,318 5,402
Proceeds from exercise of vested stock options 12,626 15,273 5,579
Proceeds from early exercise of stock options 0 0 520
Proceeds from payment of stockholder note 0 0 74
Net cash provided by financing activities 936,551 272,739 168,148
Effects of exchange rate changes on cash, cash equivalents, and restricted cash (477) (149) 99
Net increase (decrease) in cash, cash equivalents, and restricted cash 103,081 (22,349) 49,266
Cash, cash equivalents, and restricted cash at beginning of period 63,880 86,229 36,963
Cash, cash equivalents, and restricted cash at end of period 166,961 63,880 86,229
Supplemental disclosure of cash flow information:      
Cash paid for interest 1,938 1,590 5,422
Cash paid for income taxes, net of refunds received 267 1,219 361
Property and equipment additions not yet paid in cash or financed 18,275 3,184 7,071
Vesting of early-exercised stock options 405 467 620
Capital lease outstanding from current year addition 0 0 7,380
Change in other assets from change in accounting principle 0 0 5,727
Conversion of convertible preferred stock warrants to convertible common stock warrants 0 0 5,665
Cashless exercise of common stock warrants 0 1,557 1,036
Costs related to initial public offering, accrued but not yet paid 0 0 130
Stock-based compensation capitalized to internal-use software 4,446 2,034 441
Assets obtained in exchange for operating lease obligations 32,458 23,827 0
Assets obtained in exchange for finance lease obligations 31,529 22,541 0
Value of common stock issued and stock awards assumed in a business combination 0 536,432 0
Receivable Related to Shares of Restricted Stock 10,655 0 0
Reconciliation of cash, cash equivalents, and restricted cash as shown in the statements of cash flows      
Cash and cash equivalents 166,068 62,900 16,142
Restricted cash 0 87 70,087
Restricted cash included in other assets 893 893 0
Total cash, cash equivalents, and restricted cash 166,961 63,880 86,229
IPO      
Cash flows from financing activities:      
Payments of issuance costs 0 0 (5,469)
Secondary Public Offering      
Cash flows from financing activities:      
Payments of issuance costs $ 0 $ (675) $ 0
v3.22.0.1
Nature of Business
12 Months Ended
Dec. 31, 2021
Organization, Consolidation and Presentation of Financial Statements [Abstract]  
Nature of Business Nature of Business
Fastly, Inc. has built an edge cloud platform that can process, serve, and secure its customer’s applications as close to their end users as possible. As of December 31, 2021, our edge network spans across 71 markets. We were incorporated in Delaware in 2011 and are headquartered in San Francisco, California.
As used herein, "Fastly," "we," "our," "the Company," and similar terms include Fastly, Inc. and its subsidiaries, unless the context indicates otherwise.
Initial Public Offering ("IPO")
On May 21, 2019 we completed an IPO in which we sold 12,937,500 shares of our newly authorized Class A common stock, which included 1,687,500 shares sold pursuant to the exercise by the underwriters of an option to purchase additional shares, at the public offering price of $16.00 per share. We received net proceeds of $192.5 million, after deducting underwriting discounts and commissions, from sales of our shares in the IPO. The net proceeds include additional proceeds of $25.1 million, net of underwriters' discounts and commissions, from the exercise of the underwriters' option to purchase an additional 1,687,500 shares of our Class A common stock. Prior to the closing of the IPO, all shares of common stock then outstanding were reclassified as Class B common stock.
Immediately upon the closing of the IPO, all shares of convertible preferred stock then outstanding were converted into 53,630,213 shares of Class B common stock on a one-to-one basis. Prior to the IPO, we had seven outstanding series of convertible preferred stock each with a par value of $0.00002 per share, convertible at the option of the holder, that was classified as temporary equity on our consolidated balance sheet. On May 17, 2019, immediately upon closing of the IPO, our convertible preferred stock was automatically converted to shares of our Class B common stock. As of both December 31, 2021 and 2020, we had zero convertible preferred stock issued or outstanding.
Follow-on Public Offering
On May 26, 2020, we completed a follow-on public offering in which we sold 6,900,000 shares of Class A common stock, which included 900,000 shares sold pursuant to the exercise by the underwriters of an option to purchase additional shares, at the public offering price of $41.50 per share. We received net proceeds of $274.9 million, after deducting underwriting discounts and commissions, from sales of our shares in the public offering.
Conversion of Dual Class Common Stock Structure
On October 12, 2020, the outstanding shares of our Class B common stock represented less than 10% of the aggregate number of shares of the then outstanding Class A common stock and Class B common stock. As a result, all our outstanding shares of Class B common stock automatically converted into the same number of shares of Class A common stock on July 12, 2021, pursuant to the terms of our amended and restated certificate of incorporation (the "Certificate"). Upon the conversion outstanding options denominated in shares of Class B common stock issued under any of our equity incentive plans remained unchanged, except that they now represent the right to receive shares of Class A common stock. In accordance with the Certificate, the shares of Class B common stock that converted to Class A common stock were retired and will not be reissued by us.
v3.22.0.1
Summary of Significant Accounting Policies
12 Months Ended
Dec. 31, 2021
Accounting Policies [Abstract]  
Summary of Significant Accounting Policies Summary of Significant Accounting Policies
Basis of Presentation
The consolidated financial statements and accompanying notes have been prepared in accordance with United States generally accepted accounting principles ("U.S. GAAP").
Certain changes in presentation have been made to conform the prior period presentation to the current period reporting. Such reclassifications did not affect total revenues, operating income, or net income. We have made certain presentation changes, to distinguish and disclose as a separate line item, our non-current marketable securities balance from our other assets
line in the Consolidated Balance Sheets. We have made certain presentation changes to distinguish and disclose as separate line items, the amortization of intangible assets and depreciation expenses within operating cash flows in the Consolidated Statements of Cash Flows.

Principles of Consolidation
The accompanying consolidated financial statements include the accounts of the Company and its wholly-owned subsidiaries. All intercompany transactions and balances have been eliminated in consolidation.
Use of Estimates
The preparation of our consolidated financial statements requires us to make estimates, judgments, and assumptions that affect the reported amounts of assets, liabilities, revenue, costs and expenses, and related disclosures. Actual results and outcomes could differ significantly from our estimates, judgments, and assumptions. Significant estimates, judgments, and assumptions used in these financial statements include, but are not limited to, those related to revenue, accounts receivable and related reserves, fair value of assets acquired and liabilities assumed for business combinations, useful lives and realizability of long-lived assets including our goodwill and intangible assets, income tax reserves, and accounting for stock-based compensation. Estimates are periodically reviewed in light of changes in circumstances, facts, and experience. The effects of material revisions in estimates are reflected in the consolidated financial statements in the period of change and prospectively from the date of the change in estimate.

The ongoing global COVID-19 pandemic has adversely impacted many operational aspects of our business and may continue to do so in the future. Since the start of the global pandemic, we have assessed the impact that COVID-19 had on our results of operations, including, but not limited to an assessment of our allowance for credit losses, the carrying value of short-term and long-term marketable securities, the carrying value of goodwill and other long-lived assets, and the impact to revenue recognition and cost of revenues. The future impacts of the pandemic and any resulting economic impact are largely unknown and continuing to evolve. We will continue to actively monitor the impact that COVID-19 has on the results of our business operations, and may make decisions required by federal, state or local authorities, or that are determined to be in the best interests of our employees, customers, partners, suppliers and stockholders. As a result, our estimates and judgments may change materially as new events occur or additional information becomes available to us.
Cash, Cash Equivalents and Marketable Securities
We invest our excess cash primarily in short-term fixed income securities, including government and investment-grade debt securities and money market funds. We classify all liquid investments with stated maturities of three months or less from date of purchase as cash equivalents. Marketable securities with original maturities greater than three months from purchase date and remaining maturities less than one year are classified as short-term marketable securities. Marketable securities with remaining maturities greater than one year as of the balance sheet date and which we intend to hold for greater than one year, are classified as long-term marketable securities. The fair market value of cash equivalents at December 31, 2021 and 2020 approximated their carrying value. Cost of securities sold is based on specific identification. We determine the appropriate classification of our investments in marketable securities at the time of purchase and reevaluate such designation at each balance sheet date. We have classified and accounted for our marketable securities as available-for-sale. After considering our capital preservation objectives, as well as our liquidity requirements, we may sell securities prior to their stated maturities. We carry our available-for-sale securities at fair value, and report the unrealized gains and losses as a component of other comprehensive loss, except for unrealized losses determined to be other-than-temporary which are recorded as other expense, net. We determine any realized gains or losses on the sale of marketable securities on a specific identification method and record such gains and losses as a component of other expense, net. Interest earned on cash, cash equivalents, and marketable securities was approximately $1.3 million, $1.4 million, and $3.1 million during the years ended December 31, 2021, 2020 and 2019, respectively. These balances are recorded in interest income in the accompanying Consolidated Statement of Operations.
We evaluate the investments periodically for possible other-than-temporary impairment. A decline in fair value below the amortized costs of debt securities is considered an other-than-temporary impairment if we have the intent to sell the security or it is more likely than not that we will be required to sell the security before recovery of the entire amortized cost basis. In those instances, an impairment charge equal to the difference between the fair value and the amortized cost basis is recognized in other expense. Regardless of our intent or requirement to sell a debt security, impairment is considered other-than-temporary if we do not expect to recover the entire amortized cost basis.
Restricted Cash
As of December 31, 2021 and 2020, we had restricted cash balance of $0.9 million and $1.0 million, respectively, of which $0.9 million consists of letters of credit related to lease arrangements that are collateralized by restricted cash. These are included in other assets on our Consolidated Balance Sheets.
Accounts Receivable, net
Accounts receivable are recorded and carried at the original invoiced amount less an allowance for any potential uncollectible amounts. We determine our trade accounts receivable allowances in line with the current expected credit losses model, based upon the assessment of various factors, such as: historical experience, credit quality of our customers, age of the accounts receivable balances, geographic related risks, economic conditions, and other factors that may affect a customer's ability to pay. Increases and decreases in the allowance for credit losses are included as a component of General and administrative expense in the Consolidated Statements of Operations. We do not have any off-balance sheet credit exposure related to our customers.
Incremental Costs to Obtain a Contract with a Customer
We capitalize incremental costs associated with obtaining customer contracts, specifically certain commission payments. We pay commissions based on contract value upon signing a new arrangement with a customer and upon renewal and upgrades of existing contracts with customers only if the renewal and upgrades result in an incremental increase in contract value. To the extent that renewals and upgrades do not result in an increase in contract value, no additional commissions are paid. These costs are deferred on our Consolidated Balance Sheets and amortized over the expected period of benefit on a straight-line basis. We also incur commission expense on an ongoing basis based upon revenue recognized. In these cases, no incremental costs are deferred, as the commissions are earned and expensed in the same period for which the associated revenue is recognized. Based on the nature of our unique technology and services, and the rate at which we continually enhance and update our technology, the expected life of the customer arrangement is determined to be approximately five years. Commissions for new arrangements and renewals are both amortized over five years. Amortization is primarily included in sales and marketing
expense in the consolidated statements of operations. Deferred commission and incentive payments are included in other assets on our Consolidated Balance Sheets.

Concentrations of Credit Risk
Financial instruments that potentially subject us to significant concentration of credit risk consist primarily of cash, cash equivalents, marketable securities, and accounts receivable. The primary focus of our investment strategy is to preserve capital and meet liquidity requirements. Our investment policy addresses the level of credit exposure by limiting the concentration in any one corporate issuer or sector and establishing a minimum allowable credit rating. To manage the risk exposure, we invest cash equivalents and marketable securities in a variety of fixed income securities, including government and investment-grade debt securities and money market funds. We place our cash primarily in checking and money market accounts with reputable financial institutions. Deposits held with these financial institutions may exceed the amount of insurance provided on such deposits, if any.
Concentrations of credit risk with respect to accounts receivable are primarily limited to certain customers from which we generate significant revenue. Our customer base consists of a large number of geographically dispersed customers diversified across several industries. To reduce this risk, we routinely assess the financial strength of our customers. Based on such assessments, we believe that our accounts receivable credit risk exposure is limited. No customer accounted for more than 10% of revenue for the years ended December 31, 2021 and 2020. No customer accounted for more than 10% of the total accounts receivable balance as of December 31, 2021, and one customer accounted for 10% of the total accounts receivable balance as of December 31, 2020.
Fair Value of Financial Instruments
Our financial instruments consist of cash and cash equivalents, marketable securities, accounts receivable, accounts payable, accrued expenses and debt. Cash equivalents, accounts receivable, accounts payable, and accrued expenses are stated at their carrying value, which approximates fair value due to the short time until the expected receipt or payment date. We measure marketable securities at fair value, using quoted market prices or alternative pricing sources and models utilizing market observable inputs. The carrying amount of our debt approximates fair value as the stated interest rate approximates market rates currently available to us.
Property and Equipment
Property and equipment are stated at cost less accumulated depreciation and amortization. Depreciation and amortization are computed on a straight-line basis over the estimated useful lives of the assets. The estimated useful life of each asset category is as follows:
Computer and networking equipment
3-5 years
Leasehold improvements
Shorter of lease term or 5 years
Furniture and fixtures3 years
Office equipment3 years
Internal-use software3 years
We periodically review the estimated useful lives of property and equipment and any changes to the estimated useful lives are recorded prospectively from the date of the change.
Upon retirement or sale, the cost of the assets disposed of and the related accumulated depreciation are removed from the accounts, and any resulting gain or loss is included in other income (expense), net in the Consolidated Statements of Operations. Repairs and maintenance costs are expensed as incurred.
Internal-Use Software Development Costs
Labor and related costs associated with internal-use software during the application development stage are capitalized. Capitalization of costs begins when the preliminary project stage is completed, management has committed to funding the project, and it is probable that the project will be completed and the software will be used to perform the function intended. Capitalization ceases at the point when the project is fully tested and substantially complete and is ready for its intended purpose. The capitalized amounts are included in property and equipment, net on the Consolidated Balance Sheets. We amortize such costs over the estimated useful life of the software. We amortize completed internal-use software that is used on our network is amortized to cost of revenue over its estimated useful life. Costs incurred during the planning, training, and post-implementation stages of the software development life-cycle are expensed as incurred.
Business Combinations
We account for our acquisitions using the acquisition method of accounting, which requires, among other things, allocation of the fair value of purchase consideration to the tangible and intangible assets acquired and liabilities assumed at their estimated fair values on the acquisition date. The excess of the fair value of purchase consideration over the values of these identifiable assets and liabilities is recorded as goodwill. Acquisition costs, such as legal and consulting fees, are expensed as incurred.
Accounting for business combinations requires us to make significant estimates and assumptions, especially at the acquisition date with respect to tangible and intangible assets acquired and liabilities assumed. We use our best estimates and assumptions to accurately assign fair value to the tangible and intangible assets acquired and liabilities assumed at the acquisition date as well as the useful lives of those acquired intangible assets. Examples of critical estimates in valuing certain of the intangible assets and goodwill we have acquired include but are not limited to future expected cash flows from acquired developed technologies; the acquired company’s trade name, existing customer relationships and backlog. These estimates are inherently uncertain and unpredictable, and if different estimates were used the purchase price for the acquisition could be
allocated to the acquired assets and liabilities differently from the allocation that we have made. Additionally, unanticipated events and circumstances may occur, which may affect the accuracy or validity of such assumptions, estimates or actual results.
The authoritative guidance allows a measurement period of up to one year from the date of acquisition to make adjustments to the preliminary allocation of the purchase price. As a result, during the measurement period we may record adjustments to the fair values of assets acquired and liabilities assumed, with the corresponding offset to goodwill to the extent that it identifies adjustments to the preliminary purchase price allocation. Upon conclusion of the measurement period or final determination of the values of the assets acquired and liabilities assumed, whichever comes first, any subsequent adjustments will be recorded to the Consolidated Statement of Operations.
Goodwill, Intangible Assets and Other Long-Lived Assets

Goodwill is the amount by which the cost of acquired net assets in a business combination exceeds the fair value of the net identifiable assets on the date of purchase and is carried at its historical cost. We test goodwill for impairment on an annual basis or more frequently if events or changes in circumstances indicate that the asset might be impaired. We determined that we operate as one reporting unit and we perform our annual impairment test of goodwill as of October 31 and whenever events or circumstances indicate that the asset might be impaired. We did not record any impairment to goodwill during the years ended December 31, 2021, 2020, and 2019.

Intangible assets with determinable economic lives are carried at cost, less accumulated amortization. Amortization is computed over the estimated useful life of each asset on a straight-line basis. We determine the useful lives of identifiable intangible assets after considering the specific facts and circumstances related to each intangible asset. Factors we consider when determining useful lives include the contractual term of any agreement related to the asset, the historical performance of the asset, our long-term strategy for using the asset, any laws or other local regulations which could impact the useful life of the asset and other economic factors, including competition and specific market conditions. Intangible assets without determinable economic lives are carried at cost, not amortized, and reviewed for impairment at least annually.

The useful lives of our intangible assets are as follows:

Customer relationships8 years
Developed technology5 years
Trade names3 years
Backlog2 years
Domain names3 years
Internet protocol addresses10 years
IPR&DIndefinite

Long-lived assets, including property and equipment and intangible assets, are reviewed for impairment whenever events or changes in circumstances, such as service discontinuance, technological obsolescence, significant decreases in our market capitalization, facility closures, or work-force reductions indicate that the carrying amount of the long-lived asset or asset group may not be recoverable. When such events occur, we compare the carrying amount of the asset or asset group to the undiscounted expected future cash flows related to the asset or asset group. If this comparison indicates that an impairment is present, the amount of the impairment is calculated as the difference between the carrying amount and the fair value of the asset or asset group.
Leases

We lease office space and data centers ("Colocation leases") under non-cancelable operating leases with various expiration dates through 2027. We also lease server equipment under non-cancelable operating finance leases with various expiration dates through 2024. We determine if an arrangement contains a lease at inception.

Operating lease right-of-use assets and lease liabilities are recognized at the present value of the future lease payments at commencement date. The interest rate implicit in our operating leases is not readily determinable, and therefore an incremental borrowing rate is estimated to determine the present value of future payments. The estimated incremental borrowing rate factors in a hypothetical interest rate on a collateralized basis with similar terms, payments, and economic environments. Operating lease right-of-use assets also include any prepaid lease payments and lease incentives.

Certain of the operating lease agreements contain rent concession, rent escalation, and option to renew provisions. Rent concession and rent escalation provisions are considered in determining the single lease cost to be recorded over the lease term. Single lease cost is recognized on a straight-line basis over the lease term commencing on the date we have the right to use the leased property. The lease terms may include options to extend or terminate the lease. We generally use the base, non-cancelable, lease term when recognizing the lease assets and liabilities, unless it is reasonably certain that the option will be exercised. Our lease agreements may contain variable costs such as common area maintenance, operating expenses or other costs. Variable lease costs are expensed as incurred on the consolidated statements of operations. Our lease agreements generally do not contain any residual value guarantees or restrictive covenants.

We lease networking equipment from a third party, through equipment finance leases. These leases include a bargain purchase option, resulting in a full transfer of ownership at the completion of the lease term.

Operating leases are reflected in operating lease right-of-use assets, operating lease liabilities, and operating lease liabilities, non-current on our consolidated balance sheets. Finance leases are included in property and equipment, net, finance lease liabilities, and finance lease liabilities, non-current on our consolidated balance sheets.

Convertible Debt

We early adopted ASU 2020-06 as of January 1, 2021, which in effect, allows for the separation models for convertible debt that contain cash conversion features accounted for as a cash conversion or beneficial conversion features to be removed. We evaluated the terms of our debt in line with ASU 2020-06 and concluded that the instrument does not require separation and that there were no other derivatives that required separation. We have combined these features with the host contract and we account for our convertible debt as a single liability in long-term debt on our condensed consolidated balance sheet. The carrying amount of the liability is based on the gross proceeds, net of the unamortized transaction costs incurred related to the issuance of the convertible debt instrument. This difference represents a debt discount that is amortized to interest expense over the term of the convertible debt instrument using the effective interest rate method. We apply the if-converted method for calculation of diluted earnings per share for our convertible debt instrument.


Revenue Recognition
Refer to Note 3, "Revenues" in the Notes to Consolidated Financial Statements for our Revenue Recognition policy.

Cost of Revenue
Cost of revenue consists primarily of fees paid to network providers for bandwidth and to third-party network data centers for housing servers, also known as colocation costs. Cost of revenue also includes employee costs for network operation, build-out and support and services delivery, network storage costs, cost of managed services and software-as-a-service, depreciation of network equipment used to deliver our services, and amortization of network-related internal-use software. We enter into contracts for bandwidth with third-party network providers with terms of typically one year. These contracts generally commit us to pay minimum monthly fees plus additional fees for bandwidth usage above the committed level. We enter into contracts for colocation services with third-party providers with terms of typically three years.
Research and Development Costs
Research and development costs consist of primarily payroll and related personnel costs for the design, development, deployment, testing, and enhancement of our edge cloud platform. Costs incurred in the development of our edge cloud platform are expensed as incurred, excluding those expenses which met the criteria for development of internal-use software.
Advertising Expense
We recognize advertising expense as incurred. We recognized total advertising expense of approximately $2.3 million, $3.8 million and $1.4 million for the years ended December 31, 2021, 2020, and 2019, respectively.
Accounting for Stock-Based Compensation
We account for stock-based employee compensation plans under the fair value recognition and measurement provisions, which require all stock-based payments, including grants of stock options, restricted stock units ("RSUs"), restricted stock awards ("RSAs"), performance stock awards ("PSUs") and shares issued under our Employee Stock Purchase Plan ("ESPP") to be measured based on the grant-date fair value of the award and recognized as expense over the requisite service period, which is generally the vesting period of the respective award. We account for forfeitures as they occur.
The fair value of RSUs and RSAs granted to our employees and directors is based on the grant date fair value. The fair value of PSUs granted to our employees is based on the fair value determined when the performance metrics were set. The fair value of stock options granted to our employees and directors, and of the shares to be issued under our ESPP are based on the Black-Scholes option-pricing model. The determination of the fair value of a stock-based award is affected by the deemed fair value of the underlying stock price on the grant date, as well as assumptions regarding a number of other complex and subjective variables. These variables include the fair value of our common stock, the expected stock price volatility over the expected term of the options, stock option exercise and cancellation behaviors, risk-free interest rates, and expected dividends:
These assumptions and estimates are as follows:
Fair Value of Common Stock. We use the market closing price of our Class A common stock, as reported on the New York Stock Exchange, for the fair value. Prior to our IPO, our board of directors considered numerous objective and subjective factors to determine the fair value of our common stock at each meeting at which awards are approved. These factors included, but were not limited to (i) contemporaneous third-party valuations of Common Stock; (ii) the rights and preferences of Series Preferred relative to Common Stock; (iii) the lack of marketability of Common Stock; (iv) developments in the business; and (v) the likelihood of achieving a liquidity event, such as an IPO or sale of the Company, given prevailing market conditions.
Expected Term. The expected term represents the period that our stock-based awards are expected to be outstanding. The expected term assumptions were determined based on the vesting terms, exercise terms, and contractual lives of the options. The expected term was estimated using the simplified method allowed under Securities and Exchange Commission (SEC) guidance.
Volatility. The expected volatility is derived from an average of the historical stock volatilities of the common stock of the Company. In prior years the expected volatility calculation also included the historical stock volatilities of comparable companies as we did not have a long enough trading history of our common stock . Comparable companies consist of public companies in our industry, which are similar in size, stage of life cycle, and financial leverage.
Risk-free Interest Rate. The risk-free interest rate used in the Black-Scholes option pricing model is the implied yield available on U.S. Treasury zero-coupon issues with a remaining term equivalent to that of the options for each expected term.
Dividend Yield. The expected dividend assumption is based on our current expectations of our anticipated dividend policy. We have no history of paying any dividends and therefore used an expected dividend yield of zero.
Foreign Currency Translation
The functional currency of our foreign subsidiaries is the U.S. dollar. The local currencies of our foreign subsidiaries are the Australian dollar, British pound, Euros, Japanese yen, and the Swedish Kroner or the Japanese yen as the functional currency. Our foreign subsidiaries remeasure monetary assets and liabilities at period-end exchange rates, while non-monetary items are remeasured at historical rates. Revenue and expenses are remeasured at the average rate in effect during the period. Resulting currency translation adjustments are recorded as a component of accumulated other comprehensive loss, a separate component of stockholders’ equity. Gains and losses on intercompany and other non-functional currency transactions are recorded in other income (expense), net.
Income Taxes
We account for income taxes under the asset and liability method, which requires the recognition of deferred tax assets and liabilities for the expected future tax consequences of events that have been included in the financial statements. Under this method, we determine deferred tax assets and liabilities on the basis of the differences between the financial statement and tax bases of assets and liabilities by using enacted tax rates for the year in which the differences are expected to reverse. The effect of a change in tax rates on deferred tax assets and liabilities is recognized in income in the period that includes the enactment date.
We recognize deferred tax assets to the extent that it believes that these assets are more likely than not to be realized. In making such a determination, we consider all available positive and negative evidence, including future reversals of existing taxable temporary differences, projected future taxable income, tax-planning strategies, and results of recent operations. If we determine that it would be able to realize its deferred tax assets in the future in excess of their net recorded amount, we would make an adjustment to the deferred tax asset valuation allowance, which would reduce the provision for income taxes.
We record uncertain tax positions in accordance with ASC 740 on the basis of a two-step process in which (1) it determines whether it is more likely than not that the tax positions will be sustained on the basis of the technical merits of the position and (2) for those tax positions that meet the more-likely-than-not recognition threshold, we recognize the largest amount of tax benefit that is more than 50 percent likely to be realized upon ultimate settlement with the related tax authority.
We recognize interest and penalties related to unrecognized tax benefits on the income tax expense line in the accompanying Consolidated Statement of Operations and Comprehensive Loss. Accrued interest and penalties are included in accrued expenses on the Consolidated Balance Sheet.
Comprehensive Loss
Comprehensive loss consists of two components: net loss and other comprehensive income (loss). Other comprehensive income (loss) refers to gains and losses that are recorded as an element of stockholders' equity and are excluded from net loss. Our other comprehensive income (loss) is comprised of foreign currency translation adjustments and gain (loss) on investments in available-for-sale securities.
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. Under the two-class method, net income is attributed to common stockholders and participating securities based on their participation rights. 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. We do not consider the restricted stock awards and common stock issued upon early exercise of stock options as participating securities. Diluted earnings per share attributable to common stockholders adjusts basic earnings per share for the potentially dilutive impact of stock options, restricted stock units, restricted stock awards, shares issuable under our employee stock purchase place and performance stock awards. We also apply the if-converted method for calculation of diluted per share for our convertible debt instruments. As we have 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.
On October 12, 2020, the outstanding shares of our Class B common stock represented less than 10% of the aggregate number of shares of the then outstanding Class A common stock and Class B common stock. As a result, all outstanding shares of Class B common stock automatically converted into the same number of shares of Class A common stock on July 12, 2021, pursuant to the terms of our amended and restated certificate of incorporation (the "Certificate"). In accordance with the Certificate, the shares of Class B common stock that converted to Class A common stock were retired and will not be reissued by us.
Recently Adopted Accounting Pronouncements
In March 2020, the FASB issued ASU No. 2020-04, Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting. This ASU was issued to provide temporary optional guidance to ease the potential burden in accounting for reference rate reform. The guidance provides optional expedients and exceptions for applying generally accepted accounting principles to contract modifications and hedging relationships, subject to meeting certain criteria, that reference London Inter-Bank Offered Rate or another reference rate expected to be discontinued. The last expedient is a one-time election to sell or transfer debt securities classified as held to maturity. The expedients are in effect from March 12, 2020, through December 31, 2022. In January 2021, the FASB issued ASU No. 2021-01, Reference Rate Reform (Topic 848): Scope. The amendments in this Update are elective and apply to all entities that have derivative instruments that use an interest rate for margining, discounting, or contract price alignment that is modified as a result of reference rate reform. The amendments clarify certain optional expedients and exceptions in Topic 848 for contract modifications apply to derivatives that are affected by the discounting transition. The amendments are in effect from March 12, 2020, through December 31, 2022. This ASU does not have a material impact on the Company's consolidated financial statements. As of December 31, 2021, there was no impact to the Company’s Consolidated Financial Statements related to ASU 2020-04 and/or ASU 2021-01 .

On December 18, 2019, the FASB released ASU 2019-12 which affects general principles within Topic 740, Income Taxes. The amendments of ASU 2019-12 are meant to simplify and reduce the cost of accounting for income taxes. The FASB has stated that the ASU is being issued as part of its Simplification Initiative, which is meant to reduce complexity in accounting standards by improving certain areas of generally accepted accounting principles ("U.S. GAAP") without compromising information provided to users of financial statements. The standard is effective for public companies on the first interim period within the annual period beginning after December 15, 2020. We adopted this standard on January 1, 2021. The adoption of this standard did not have a material impact on our consolidated financial statements.

In August 2020, the FASB issued ASU No. 2020-06, Debt—Debt with Conversion and Other Options (Subtopic 470-20) and Derivatives and Hedging— Contracts in Entity’s Own Equity (Subtopic 815-40). The update removes separation models for convertible debt that contain cash conversion features accounted for as a cash conversion or beneficial conversion features. Under this ASU, these features will be combined with the host contract. ASU 2020-06 does not impact the accounting
treatment for conversion features that are accounted for as a derivative under Topic 815. The update also requires the application of the if-converted method to be used for convertible instruments and the effect of potential share settlement be included in the diluted earnings per share calculation when an instrument may be settled in cash or shares. The amendments in this update are effective for public business entities for fiscal years beginning after December 15, 2021, and interim periods within those fiscal years. The amendment is to be adopted through either a fully retrospective or modified retrospective method of transition, only at the beginning of an entity's fiscal year. Early adoption is permitted. We have elected to early adopt the standard as of January 1, 2021 using the modified retrospective method of transition. As of the date of adoption, we determined that we had no debt with conversion features or other derivative features that would require separation. As a result, we recorded our convertible debt as a single liability within long-term debt on our Condensed Consolidated Balance Sheet. We use the if-converted method for calculation of diluted earnings per share for our convertible debt instruments.

In February 2016, the FASB issued new guidance, Accounting Standard Update No. 2016-02, Leases (Topic 842) ("ASU 2016-02"), which establishes the principles to report transparent and economically neutral information about the assets and liabilities that arise from leases. Accordingly, this new standard introduces a lessee model that brings most operating leases on the balance sheet and also aligns certain of the underlying principles of the new lessor model with those in the new revenue recognition standard.
We adopted the standard on December 31, 2020, presenting the initial application of ASC 842 beginning on January 1, 2020 (i.e. adoption effective date), using the modified retrospective approach and has elected to use the optional transition method which allows us to apply the guidance of ASC 840, including disclosure requirements, in the comparative periods presented. In addition, we elected the package of practical expedients permitted under the transition guidance within the new
standard, which among other things, allowed us to carry forward the historical lease classification related to agreements entered prior to adoption. We have also elected the: (i) short-term lease recognition exemption for all leases that qualify, whereby we will not recognize right-of-use ("ROU" assets or lease liabilities for existing short-term leases of those assets in transition; (ii) practical expedient to not separate lease and non-lease components for all of our leases; and (iii) use hindsight in determining the lease term, assessing the likelihood that a lease purchase option will be exercised and in assessing the impairment of right-of-use assets.

Upon adoption of ASC 842, we recognized $54.7 million of ROU assets and $56.3 million of lease obligations related to operating leases, which represents the present value of the lease payments discounted using our incremental borrowing rate ("IBR"). The accounting for finance leases remained unchanged as compared to ASC 840. The cumulative impact of transition to retained earnings, recorded as of the adoption date, was not material. The cumulative effect adjustment recorded to accumulated deficit as of the adoption date was not material. The adoption of ASC 842 did not materially impact our consolidated statements of operations or cash flows.

In June 2016, FASB issued new guidance, ASU 2016-13, Financial Instruments-Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments, which introduces a new methodology for accounting for credit losses on financial instruments, including available-for-sale debt securities. The guidance establishes a new “expected loss model” that requires entities to estimate current expected credit losses on financial instruments by using all practical and relevant information. Any expected credit losses are to be reflected as allowances rather than reductions in the amortized cost of available-for-sale debt securities. We adopted the standard on December 31, 2020, presenting the initial application beginning on January 1, 2020 (i.e. adoption effective date). The adoption of this standard did not have a material impact on our consolidated financial statements.

In August 2018, the FASB issued Accounting Standards Update No. 2018-15, Intangibles—Goodwill and Other—Internal-Use Software (ASC 350-40): Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement ("ASU 2018-15"). This guidance provides that implementation costs be evaluated for capitalization using the same criteria as that used for internal-use software development costs, with amortization expense being recorded in the same income statement expense line as the hosted service costs and over the expected term of the hosting arrangement. We adopted the standard on December 31, 2020, presenting the initial application beginning on January 1, 2020 (i.e. adoption effective date). The adoption of this standard did not have a material impact on our consolidated financial statements.

Recently Issued Accounting Standards
In October 2021, the FASB issued ASU No. 2021-08, Accounting for Contract Assets and Contract Liabilities from Contracts with Customers (Topic 805). This ASU requires an acquirer in a business combination to recognize and measure contract assets and contract liabilities (deferred revenue) from acquired contracts using the revenue recognition guidance in Topic 606. At the acquisition date, the acquirer applies the revenue model as if it had originated the acquired contracts. The ASU is effective for annual periods beginning after December 15, 2022, including interim periods within those fiscal years. Adoption of the ASU should be applied prospectively. Early adoption is also permitted, including adoption in an interim period. If early adopted, the amendments are applied retrospectively to all business combinations for which the acquisition date occurred during the fiscal year of adoption. This ASU is currently not expected to have a material impact on our consolidated financial statements.
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Revenue
12 Months Ended
Dec. 31, 2021
Revenue from Contract with Customer [Abstract]  
Revenue Revenue
Revenue recognition
Revenue is recognized upon transfer of control of promised products or services to customers in an amount that reflects the consideration we expect to receive in exchange for those products or services. The processing and recording of certain revenue requires a manual process, which uses a complex set of procedures to generate complete and accurate data to record these revenue transactions. We enter into contracts that can include various combinations of products and services, each of which are distinct and accounted for as separate performance obligations. Revenue is recognized net of any taxes collected from customers, which are subsequently remitted to governmental authorities.
A performance obligation is a promise in a contract to transfer a distinct good or service to the customer and is the unit of account. Our contracts with customers often include promises to transfer multiple products and services to a customer. Determining whether products and services are considered distinct performance obligations that should be accounted for separately versus together may require significant judgment. For contracts with multiple performance obligations, we allocate the contract transaction price to each performance obligation using our estimate of the standalone selling price ("SSP") of each distinct good or service in the contract.
Judgment is required to determine the SSP for each distinct performance obligation. We analyze separate sales of our products and services as a basis for estimating the SSP of our products and services. We then use the SSP as the basis for allocating the transaction price when our product and services are sold together in a contract with multiple performance obligations. In instances where SSP is not directly observable, such as when we do not sell the product or service separately, we determine the SSP using information that may include market conditions and other observable inputs. We typically have more than one SSP for individual products and services due to the stratification of those products and services by customers and circumstances. In these instances, we may use information, such as geographic region and distribution channel, in determining the SSP.
The transaction price in a contract for usage-based services is typically equal to the minimum commit price in the contract less any discounts provided. The transaction price in a contract that does not contain usage-based services is equal to the total contract value. Because our typical contracts represent distinct services delivered over time with the same pattern of transfer to the customer, usage-based consideration primarily related to actual consumption over the minimum commit levels is allocated to the period to which it relates. The amount of consideration recognized for usage above the minimum commit price is limited to the amount we expect to be entitled to receive in exchange for providing services. We have elected to apply the practical expedient for estimating and disclosing the variable consideration when variable consideration is allocated entirely to a wholly unsatisfied performance obligation or to a wholly unsatisfied promise to transfer a distinct good or service that forms part of a single performance obligation from our remaining performance obligations under these contracts.
Performance obligations represent stand-ready obligations that are satisfied over time as the customer simultaneously receives and consumes the benefits provided by us. These obligations can be content delivery, security, subscription services, professional services, support, edge cloud platform services, and others. Accordingly, our revenue is recognized over time, consistent with the pattern of benefit provided to the customer over the term of the agreement.
At times, customers may request changes that either amend, replace, or cancel existing contracts. Judgment is required to determine whether the specific facts and circumstances within the contracts should be accounted for as a separate contract or as a modification.
In contracts where there are timing differences between when we transfer a promised good or service to the customer and when the customer pays for that good or service, we have determined our contracts do not include a significant financing component. We have also elected the practical expedient to not measure financing components for any contract where the timing difference is less than one year.
Nature of products and services
We primarily derive revenue from the sale of services to customers executing contracts in which the standard contract term is one year, although terms may vary by contract. Most of our contracts are non-cancelable over the contractual term. The majority of our usage based contracts commit the customer to a minimum monthly level of usage and specify the rate at which the customer must pay for actual usage above the monthly minimum. Beginning in the fourth quarter of 2020, we also offer subscriptions to access a unified security web application and application programming interface at a fixed rate.
Revenue by geography is based on the billing address of the customer. Aside from the United States, no other single country accounted for more than 10% of revenue for the years ended December 31, 2021, 2020 and 2019.
The following table presents our net revenue by geographic region:
Year ended December 31,
202120202019
(in thousands)
United States$260,399 $196,538 $142,842 
Asia Pacific39,496 44,060 18,806 
Europe35,177 32,768 27,595 
All other countries19,258 17,508 11,219 
Total revenue$354,330 $290,874 $200,462 
The majority of our revenue is derived from enterprise customers, which are defined as customers with revenue in excess of $100,000 over the previous 12-month period. The following table presents our net revenue for enterprise and non-enterprise customers:
Year ended December 31,
202120202019
(in thousands)
Enterprise customers$313,360 $256,483 $174,926 
Non-enterprise customers40,970 34,391 25,536 
Total revenue$354,330 $290,874 $200,462 
Contract balances
The timing of revenue recognition may differ from the timing of invoicing to customers. We have an unconditional right to consideration when we invoice our customers and record a receivable. We record a contract asset when revenue is recognized prior to invoicing, or a contract liability (deferred revenue) when revenue is recognized subsequent to invoicing.
Deferred revenue includes amounts billed to customers for which revenue has not been recognized and consists of the unearned portions of edge cloud platform usage and billings to customers for our security subscription services. Amounts that have been invoiced for annual subscriptions, but not collected, are recorded in accounts receivable and in unearned revenue or in revenue depending on whether services have been delivered to the customer. Our payment terms and conditions vary by contract type. Payment terms on invoiced amounts are at an average of 30 days.

The following presents our contract assets and contract liabilities as of and for the years ended December 31, 2021 and 2020:
As of December 31, 2021As of December 31, 2020
(in thousands)
Contract assets$89 $387 
Contract liabilities$28,907 $18,020 

The following table presents the revenue recognized during the years ended December 31, 2021 and 2020 from amounts included in the contract liability at the beginning of the period:
Year ended December 31, 2021Year ended December 31, 2020
(in thousands)
Revenue recognized in the period from:
Amounts included in contract liability at the beginning of the period$15,948 $310 
Remaining performance obligations
As of December 31, 2021, we had $152.3 million of remaining performance obligations, which includes deferred revenue and amounts that will be invoiced and recognized in future periods, respectively. We apply the practical expedient of ASC 606, which gives us the optional exemption from disclosing certain information about our remaining performance obligations for our service contracts for which the original contract duration is one year or less, such as the aggregate transaction price allocated to the performance obligations that are unsatisfied (or partially unsatisfied) as of the end of the reporting period. The typical contract term is one year, although terms may vary by contract. We expect to recognize 81% of this balance over the next 12 months and the remainder within the following year.
Costs to obtain a contract
As of December 31, 2021 and December 31, 2020, our costs to obtain contracts were as follows:
As of December 31, 2021As of December 31, 2020
(in thousands)
Deferred contract costs, net$23,830 $19,332 

During the years ended December 31, 2021, 2020 and 2019, we recognized $6.3 million, $3.5 million and $2.3 million of amortization related to deferred contract costs, respectively. These costs are recorded within the sales and marketing line item on the accompanying Consolidated Statements of Operations.
v3.22.0.1
Investments and Fair Value Measurements
12 Months Ended
Dec. 31, 2021
Fair Value Disclosures [Abstract]  
Investments and Fair Value Measurements Investments and Fair Value Measurements
Our total cash, cash equivalents and marketable securities consisted of the following:
As of December 31,
20212020
(in thousands)
Cash and cash equivalents:
Cash$134,774 $21,273 
Money market funds31,294 36,629 
Commercial paper— 4,998 
Total cash and cash equivalents166,068 $62,900 
Marketable securities:
U.S. Treasury securities$184,946 $75,524 
Corporate notes and bonds11,327 $14,314 
Commercial paper124,089 41,445 
Asset-backed securities21,576 — 
Municipal securities2,250 — 
Foreign government and supranational securities17,607 — 
Total short-term marketable securities$361,795 $131,283 
U.S. Treasury securities239,528 20,448 
Corporate notes and bonds197,298 — 
Asset-backed securities77,142 — 
Municipal securities2,312 — 
Foreign government and supranational securities12,631 — 
Total long-term marketable securities$528,911 $20,448 
Total marketable securities$890,706 $151,731 
Our long-term marketable securities have remaining maturities that are greater than one year as of the balance sheet date and which we intend to hold for more than one year.
Available-for-Sale Investments
The following table summarizes adjusted cost, gross unrealized gains and losses, and fair value related to available-for-sale securities classified as marketable securities on the accompanying Consolidated Balance Sheets as of December 31, 2021 and December 31, 2020:
As of December 31, 2021
Amortized
Cost
Gross
Unrealized
Gain
Gross
Unrealized
Loss
Fair
Value
(in thousands)
U.S. Treasury securities$425,560 $$(1,086)$424,475 
Corporate notes and bonds209,550 — (925)208,625 
Commercial paper124,098 — (9)124,089 
Asset-backed securities98,857 — (140)98,717 
Municipal securities4,577 — (15)4,562 
Foreign government and supranational securities30,306 — (68)30,238 
Total available-for-sale investments$892,948 $$(2,243)$890,706 
As of December 31, 2020
Amortized
Cost
Gross Unrealized GainGross
Unrealized Loss
Fair
Value
(in thousands)
U.S. Treasury securities$95,884 $93 $(5)$95,972 
Commercial paper41,445 — — 41,445 
Corporate notes and bonds14,297 17 — 14,314 
Total available-for-sale investments$151,626 $110 $(5)$151,731 
Cash equivalents include investments with maturity date of three months or less. The majority of our securities classified as available-for-sale as of December 31, 2021 have contractual maturities of one year or less. Certain securities held and classified as available-for-sale as of December 31, 2021, have contractual maturities that are greater than one year. Where we intend to hold the securities for less than 12 months, we classify them as short-term. Where we intend to hold the securities for more than 12 months, we classify them as long-term. As of December 31, 2021, all securities classified as available-for-sale had contractual maturities of one year or less. There were no securities in a continuous loss position for 12 months or longer as of December 31, 2021 and December 31, 2020. Investments are reviewed periodically to identify possible other-than-temporary impairments. No impairment loss has been recorded on the securities included in the tables above, as we believe that the decrease in fair value of these securities is temporary, and we expect to recover at least up to the initial cost of investment for these securities.
Fair Value of Financial Instruments
For certain of our financial instruments, including cash held in banks, accounts receivable, and accounts payable, the carrying amounts approximate fair value due to their short maturities, and are therefore excluded from the fair value tables below.
Fair value is defined as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. There is a three-tier fair value hierarchy, which prioritizes the inputs used in measuring fair value as follows:
Level 1—Observable inputs such as quoted prices in active markets for identical assets or liabilities;
Level 2—Inputs other than Level 1 that are observable, either directly or indirectly, such as quoted prices for similar assets or liabilities, quoted prices in markets that are not active, or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities; and
Level 3—Unobservable inputs that are supported by little or no market activity, which require management judgment or estimation.
We measure our cash equivalents and marketable securities at fair value. We classify our cash equivalents and marketable securities within Level 1 or Level 2 because we value these investments using quoted market prices or alternative pricing sources and models utilizing market observable inputs. The fair value of our Level 1 financial assets is based on quoted market prices of the identical underlying security. The fair value of our Level 2 financial assets is based on inputs that are directly or indirectly observable in the market, including the readily available pricing sources for the identical underlying security that may not be actively traded.
Financial assets and liabilities measured and recorded at fair value on a recurring basis consisted of the following types of instruments:
As of December 31, 2021
Level 1Level 2Level 3Total
(in thousands)
Cash equivalents:
Money market funds$31,294 $— $— $31,294 
Total cash equivalents31,294 — — 31,294 
Marketable securities:
U.S. Treasury securities— 424,475 — 424,475 
Corporate notes and bonds— 208,625 — 208,625 
Commercial paper— 124,089 — 124,089 
Asset-backed securities— 98,717 — 98,717 
Municipal securities— 4,562 — 4,562 
Foreign government and supranational securities— 30,238 — 30,238 
Total marketable securities 890,706  890,706 
Restricted cash:
Money market funds893 — — 893 
Total restricted cash893 — — 893 
Total financial assets$32,187 $890,706 $— $922,893 
As of December 31, 2021, our remaining restricted cash balance was $0.9 million, consisting of letters of credit related to lease arrangements that are collateralized by restricted cash. These are included in other assets on the Consolidated Balance Sheets.
As of December 31, 2020
Level 1Level 2Level 3Total
(in thousands)
Cash equivalents:
Money market funds$36,629 $— $— $36,629 
U.S. Treasury securities— 4,998 — 4,998 
Total cash equivalents36,629 4,998 — 41,627 
Marketable securities:
U.S. Treasury securities— 95,972 — 95,972 
Commercial paper— 41,445 — 41,445 
Corporate notes and bonds— 14,314 — 14,314 
Total marketable securities— 151,731 — 151,731 
Restricted cash:
Money market funds980 — — 980 
Total restricted cash980 — — 980 
Total financial assets$37,609 $156,729 $— $194,338 

There were no transfers of assets and liabilities measured at fair value between Level 1 and Level 2, or between Level 2 and Level 3, during the years ended December 31, 2021 and 2020.
v3.22.0.1
Business Combinations
12 Months Ended
Dec. 31, 2021
Business Combination and Asset Acquisition [Abstract]  
Business Combinations Business Combinations
Signal Sciences

On October 1, 2020, we completed the acquisition of Signal Sciences where we acquired 100% of the voting rights of Signal Sciences and it is now our wholly-owned subsidiary. The acquisition is expected to expand our security portfolio and bolster our existing security offerings with our web application and API protection solutions.

Under the terms of the Merger Agreement, we acquired Signal Sciences for an aggregate purchase price of $759.4 million, consisting of approximately $223.0 million in cash and the balance in Class A Common Stock and equity consideration of $536.4 million. A total of 6,367,709 shares were issued of which the fair value of 5,471,210 shares were attributed to purchase price and 896,499 shares, which are restricted as they are subject to revesting conditions, will be included in stock-based compensation as required service is provided. All of these shares have a par value of $0.00002 per share.

As part of the acquisition, we also assumed the Signal Sciences Corp. 2014 Stock Option and Grant Plan, as amended (the “Signal Plan”) and the outstanding unvested options to purchase shares of common stock of Signal Sciences Corp. thereunder, and such options became exercisable to purchase shares of Fastly’s Class A common stock, subject to appropriate adjustments to the number of shares and the exercise price of each such option."). In connection with the above, we registered 251,754 shares under the Signal Plan.

We assumed the aforementioned unvested options at the completion of the acquisition with an estimated fair value of $21.8 million. Of the total consideration, $1.1 million was allocated to the purchase price and $20.7 million was allocated to future services and will be expensed over the remaining requisite service periods of approximately 2.5 years on a straight-line basis. The estimated fair value of the stock options we assumed was determined using the Black-Scholes option pricing model. The share conversion ratio of 0.1 was applied to convert Signal Sciences’ outstanding stock awards into shares of Fastly's common stock.
Of the 6,367,709 shares issued in connection with the acquisition, a restriction was placed on 896,499 shares belonging to the three co-founders of Signal Sciences to make them subject to revesting on a quarterly basis over a 2-year period. Since they are subject to service conditions, they will be accounted for as a post-acquisition compensation expense over the requisite service period, which is also the vesting period of the award. During the year-ended December 31, 2021, 336,188 unvested shares were sold. See 11. Stockholders' Equity for additional information.

We accounted for the transaction as a business combination using the acquisition method of accounting. We allocated the purchase price to the tangible and identifiable intangible assets acquired and liabilities assumed based on their respective estimated fair values on the acquisition date. The fair values assigned to tangible assets acquired and liabilities assumed are based on management’s estimates and assumptions and may be subject to change as additional information is received. The determination of the fair value of the intangible assets acquired required management to make significant estimates and assumptions related to forecasted future revenues and selection of the royalty rate and discount rate. Excess purchase price consideration was recorded as goodwill which includes value attributable to the assembled workforce.

The purchase consideration was allocated to the tangible and intangible assets and liabilities acquired as of the acquisition date, with the excess recorded to goodwill as shown below.

Amount
Assets acquired
Cash and cash equivalents$21,501 
Other current assets6,419 
Intangible assets, net124,100 
Other non-current assets8,094 
Total assets acquired$160,114 
Liabilities assumed
Current liabilities(14,755)
Non-current liabilities(21,170)
Total liabilities assumed$(35,925)
Net assets acquired124,189 
Total acquisition consideration759,393 
Goodwill Transferred$635,204 

Identifiable finite-lived intangible assets were comprised of the following (in thousands):
TotalEstimated useful life (in years)
Customer relationships$69,100 8.0
Developed Technology$49,500 5.0
Trade name$3,300 3.0
Backlog$2,200 2.0
Total intangible assets acquired$124,100 
The fair values of the acquired developed technology and trade name intangible assets were determined using the relief from royalty method. The fair values of the acquired customer relationships and backlog intangible assets were determined using the multi-period excess earnings method. The acquired intangible assets have a total weighted average amortization period of 6.6 years.

As part of the stock acquisition of Signal Sciences, we allocated a significant value of the acquisition to intangible assets. The deferred tax liability provided an additional source of taxable income to support the realization of the pre-existing deferred tax assets. As a result, a portion of our valuation allowance was released and we recorded a $13.0 million tax benefit in the year ended December 31, 2020. Please refer to Note 12 — Income Taxes for further details.
During the years ended December 31, 2021 and 2020 , acquisition-related expenses of $2.5 million and $20.8 million, respectively, were included within general and administrative expenses on the Consolidated Statements of Operations.

The amounts of revenue and net loss of Signal Sciences included in our consolidated statement of operations from the acquisition date of October 1, 2020 to December 31, 2020 are $6.7 million and $23.0 million, respectively.

Pro Forma Financial Information

The following unaudited pro forma information presents the combined results of operations as if the acquisition of Signal Sciences had been completed as of the beginning of our fiscal year 2019. The unaudited pro forma results include adjustments primarily related to the amortization of intangible assets, share-based compensation expense for shares which are restricted as they are subject to revesting conditions, and the inclusion of acquisition costs as of the earliest period presented. There were no material transactions between Fastly and Signal Sciences during the periods presented that would need to be eliminated.

The unaudited pro forma results do not reflect any cost saving synergies from operating efficiencies, or the effect of the incremental costs incurred from integrating these companies. For pro forma purposes, 2020 earnings were adjusted to exclude acquisition-related costs, and 2019 earnings were adjusted to include these costs. Accordingly, these unaudited pro forma results are presented for informational purposes only and are not necessarily indicative of what the actual results of operations of the combined company would have been if the acquisition had occurred at the beginning of the period presented, nor are they indicative of future results of operations.

The unaudited pro forma financial information was as follows (in thousands):

(Unaudited)
As of December 31,
20202019
(in thousands)
Revenue$313,665 $218,529 
Net loss$(159,248)$(178,124)
v3.22.0.1
Balance Sheet Information
12 Months Ended
Dec. 31, 2021
Balance Sheet Related Disclosures [Abstract]  
Balance Sheet Information Balance Sheet Information
Allowance for Credit Losses
The activity in the accounts receivable reserves is as follows:
As of December 31,
20212020
(in thousands)
Beginning balance$3,248 $1,816 
Additions to the reserves196 1,719 
Write-offs and adjustments(133)(287)
Ending balance$3,311 $3,248 
Property and Equipment, Net
Property and equipment, net consisted of the following:
As of December 31,
20212020
(in thousands)
Computer and networking equipment$207,575 $129,998 
Leasehold improvements4,631 3,817 
Furniture and fixtures1,606 1,092 
Office equipment654 659 
Internal-use software40,345 22,066 
Property and equipment, gross254,811 157,632 
Accumulated depreciation and amortization(87,850)(61,653)
Property and equipment, net$166,961 $95,979 
Depreciation and amortization expense on property and equipment for the years ended December 31, 2021, 2020 and 2019 was approximately $28.8 million, $19.8 million, and $16.4 million, respectively. Included in these amounts was amortization expense for capitalized internal-use software costs of approximately $4.6 million, $2.4 million and $2.2 million for the years ended December 31, 2021, 2020 and 2019, respectively. As of December 31, 2021 and December 31, 2020, the unamortized balance of capitalized internal-use software costs on our Consolidated Balance Sheets was approximately $27.9 million and $14.2 million, respectively.
We lease certain networking equipment from various third parties, through equipment finance leases. Our networking equipment assets as of December 31, 2021 and 2020, included a total of $67.8 million and $36.2 million acquired under finance lease agreements, respectively. These leases are capitalized in property and equipment, and the related amortization of assets under finance leases is included in depreciation and amortization expense. The accumulated depreciation of the networking equipment assets under finance leases totaled $14.4 million and $6.7 million as of December 31, 2021 and 2020, respectively.
Accrued Expenses
Accrued expenses consisted of the following:
As of December 31,
20212020
(in thousands)
Accrued compensation and related benefits$13,543 $17,840 
Accrued colocation and bandwidth costs10,205 3,644 
Sales and use tax payable7,498 6,274 
Accrued acquisition-related costs— 2,208 
Other accrued liabilities4,866 4,368 
Total accrued expenses$36,112 $34,334 
Other Current Liabilities
Other current liabilities consisted of the following:
As of December 31,
20212020
(in thousands)
Deferred revenue$26,421 $15,916 
Accrued computer and networking equipment18,081 3,126 
Liability for early-exercised stock options (see Note 11)— 255 
Other current liabilities605 380 
Total other current liabilities$45,107 $19,677 
Accumulated Other Comprehensive Income (Loss)
The following table summarizes the changes in accumulated other comprehensive loss, which is reported as a component of stockholders’ equity:
Foreign Currency TranslationAvailable-for-sale investmentsAccumulated Other Comprehensive Income (Loss)
(in thousands)
Balance at January 1, 2019$(12)$(24)$(36)
Other comprehensive income (loss)111 121 232 
Balance at December 31, 201999 97 196 
Other comprehensive income (loss)(135)(55)(190)
Balance at December 31, 2020(36)42 
Other comprehensive income (loss)(286)(2,347)(2,633)
Balance at December 31, 2021$(322)$(2,305)$(2,627)
v3.22.0.1
Leases
12 Months Ended
Dec. 31, 2021
Leases [Abstract]  
Leases Leases
We have operating leases for corporate offices and data centers ("Colocation leases"), and finance leases for networking equipment. Our leases have remaining lease terms of 0 to 6 years, some of which include options to extend the leases.

We also sublease a portion of our corporate office spaces. Subleases have remaining lease terms of 2.75 years. Sublease income was $1.0 million, $1.3 million, and $1.2 million for the years ended December 31, 2021, 2020 and 2019, respectively.

The components of lease cost were as follows:
As of December 31,
20212020
(in thousands)
Operating lease cost:
Operating lease cost$26,716 $21,765 
Variable lease cost6820 4363 
Total operating lease costs$33,536 $26,128 
Finance lease cost:
Amortization of assets under finance lease$6,834 $2,858 
Interest$1754 $688 
Total finance lease cost$8,588 $3,546 

Other information related to leases was as follows:
As of December 31,
20212020
(in thousands)
Supplemental Cash Flow Information
Cash paid for amounts included in the measurement of lease liabilities:
Payments for operating leases included in cash from operating activities$26,447 $18,264 
Payments for finance leases included in cash from financing activities$13,568 $5,773 
Payments for finance leases included in cash from operating activities$1,754 $688 
Assets obtained in exchange for lease obligations:
Operating leases $32,458 $23,827 
Finance leases$31,529 $22,541 

As of December 31,
20212020
(in thousands)
Weighted Average Remaining Lease term (in years)
Operating leases4.414.44
Finance leases2.232.51
Weighted Average Discount Rate
Operating leases5.20 %5.68 %
Finance leases4.86 %5.12 %

As of December 31, 2021, we had undiscounted commitments of $5.9 million for operating leases that have not yet commenced, and therefore are not included in the right-of-use asset or operating lease liability. These operating leases will commence in 2022 with lease terms of 1 years to 5 years.

Future minimum lease payments under non-cancellable leases as of December 31, 2021 were as follows (in thousands):
Year ending December 31,Operating LeasesFinance Leases
2022$19,389 $22,700 
202318,297 17,216 
202415,014 5,855 
202513,391 — 
202613,174 — 
Thereafter5,813 — 
Total future minimum lease payments$85,078 $45,771 
Less: imputed interest(9,693)(2,353)
Total liability$75,385 $43,418 
Leases Leases
We have operating leases for corporate offices and data centers ("Colocation leases"), and finance leases for networking equipment. Our leases have remaining lease terms of 0 to 6 years, some of which include options to extend the leases.

We also sublease a portion of our corporate office spaces. Subleases have remaining lease terms of 2.75 years. Sublease income was $1.0 million, $1.3 million, and $1.2 million for the years ended December 31, 2021, 2020 and 2019, respectively.

The components of lease cost were as follows:
As of December 31,
20212020
(in thousands)
Operating lease cost:
Operating lease cost$26,716 $21,765 
Variable lease cost6820 4363 
Total operating lease costs$33,536 $26,128 
Finance lease cost:
Amortization of assets under finance lease$6,834 $2,858 
Interest$1754 $688 
Total finance lease cost$8,588 $3,546 

Other information related to leases was as follows:
As of December 31,
20212020
(in thousands)
Supplemental Cash Flow Information
Cash paid for amounts included in the measurement of lease liabilities:
Payments for operating leases included in cash from operating activities$26,447 $18,264 
Payments for finance leases included in cash from financing activities$13,568 $5,773 
Payments for finance leases included in cash from operating activities$1,754 $688 
Assets obtained in exchange for lease obligations:
Operating leases $32,458 $23,827 
Finance leases$31,529 $22,541 

As of December 31,
20212020
(in thousands)
Weighted Average Remaining Lease term (in years)
Operating leases4.414.44
Finance leases2.232.51
Weighted Average Discount Rate
Operating leases5.20 %5.68 %
Finance leases4.86 %5.12 %

As of December 31, 2021, we had undiscounted commitments of $5.9 million for operating leases that have not yet commenced, and therefore are not included in the right-of-use asset or operating lease liability. These operating leases will commence in 2022 with lease terms of 1 years to 5 years.

Future minimum lease payments under non-cancellable leases as of December 31, 2021 were as follows (in thousands):
Year ending December 31,Operating LeasesFinance Leases
2022$19,389 $22,700 
202318,297 17,216 
202415,014 5,855 
202513,391 — 
202613,174 — 
Thereafter5,813 — 
Total future minimum lease payments$85,078 $45,771 
Less: imputed interest(9,693)(2,353)
Total liability$75,385 $43,418 
Leases Leases
We have operating leases for corporate offices and data centers ("Colocation leases"), and finance leases for networking equipment. Our leases have remaining lease terms of 0 to 6 years, some of which include options to extend the leases.

We also sublease a portion of our corporate office spaces. Subleases have remaining lease terms of 2.75 years. Sublease income was $1.0 million, $1.3 million, and $1.2 million for the years ended December 31, 2021, 2020 and 2019, respectively.

The components of lease cost were as follows:
As of December 31,
20212020
(in thousands)
Operating lease cost:
Operating lease cost$26,716 $21,765 
Variable lease cost6820 4363 
Total operating lease costs$33,536 $26,128 
Finance lease cost:
Amortization of assets under finance lease$6,834 $2,858 
Interest$1754 $688 
Total finance lease cost$8,588 $3,546 

Other information related to leases was as follows:
As of December 31,
20212020
(in thousands)
Supplemental Cash Flow Information
Cash paid for amounts included in the measurement of lease liabilities:
Payments for operating leases included in cash from operating activities$26,447 $18,264 
Payments for finance leases included in cash from financing activities$13,568 $5,773 
Payments for finance leases included in cash from operating activities$1,754 $688 
Assets obtained in exchange for lease obligations:
Operating leases $32,458 $23,827 
Finance leases$31,529 $22,541 

As of December 31,
20212020
(in thousands)
Weighted Average Remaining Lease term (in years)
Operating leases4.414.44
Finance leases2.232.51
Weighted Average Discount Rate
Operating leases5.20 %5.68 %
Finance leases4.86 %5.12 %

As of December 31, 2021, we had undiscounted commitments of $5.9 million for operating leases that have not yet commenced, and therefore are not included in the right-of-use asset or operating lease liability. These operating leases will commence in 2022 with lease terms of 1 years to 5 years.

Future minimum lease payments under non-cancellable leases as of December 31, 2021 were as follows (in thousands):
Year ending December 31,Operating LeasesFinance Leases
2022$19,389 $22,700 
202318,297 17,216 
202415,014 5,855 
202513,391 — 
202613,174 — 
Thereafter5,813 — 
Total future minimum lease payments$85,078 $45,771 
Less: imputed interest(9,693)(2,353)
Total liability$75,385 $43,418 
v3.22.0.1
Goodwill and Intangible Assets
12 Months Ended
Dec. 31, 2021
Goodwill and Intangible Assets Disclosure [Abstract]  
Goodwill and Intangible Assets Goodwill and Intangible Assets
Goodwill
The changes in the carrying amount of goodwill for the years ended December 31, 2021 and 2020 are as follows:
Year ended December 31,
20212020
(in thousands)
Balance, beginning of period$635,590 $372 
Goodwill acquired1,169 635,204 
Foreign currency translation and other adjustments46 14 
Balance, end of period$636,805 $635,590 
The goodwill acquired from Signal Sciences is carried in U.S. dollars, while goodwill from previous acquisitions is denominated in other foreign currencies. In 2021, we recorded $1.2 million of goodwill in connection with a small acquisition. Goodwill amounts are not amortized but tested for impairment on an annual basis. There was no impairment of goodwill for the periods ended December 31, 2021, 2020 and 2019.
Intangible Assets, net
As of December 31, 2021 and December 31, 2020, our intangible assets consisted of the following:
As of December 31, 2021As of December 31, 2020
Gross carrying valueAccumulated amortizationNet carrying valueGross carrying valueAccumulated amortizationNet carrying value
(in thousands)
Intangible assets:
Customer relationships$69,100 $(10,797)$58,303 $69,100 $(2,053)$67,047 
Developed technology49,500 (12,375)37,125 49,500 (2,475)47,025 
Trade names3,300 (1,375)1,925 3,300 (275)3,025 
Internet protocol addresses4,984 (973)4,011 2,891 (578)2,313 
Backlog2,200 (1,375)825 2,200 (275)1,925 
In-process research and development ("IPR&D")368 — 368 368 — 368 
Domain name
39 — 39 39 — 39 
Total intangible assets$129,491 $(26,895)$102,596 $127,398 $(5,656)$121,742 
Amortization expense was $21.2 million, $5.3 million and $0.1 million, for the years ended December 31, 2021, 2020 and 2019, respectively. We did not record any impairments during the years ended December 31, 2021, 2020 and 2019.
The estimated future amortization expense intangible assets as of December 31, 2021 is as follows:
As of December 31, 2021
(in thousands)
2022$20,974 
202319,874 
202419,040 
202516,561 
20269,065 
Thereafter16,714 
Total$102,228 
v3.22.0.1
Debt Instruments
12 Months Ended
Dec. 31, 2021
Debt Disclosure [Abstract]  
Debt Instruments Debt Instruments
Cash Collateralized Revolving Credit Agreement ("Revolving Credit Agreement")
In November 2019, we entered into a Revolving Credit Agreement with Citibank, N.A (the "Lender") for an aggregate commitment amount of $70.0 million with a maturity date of November 3, 2022 (the "Revolver"). The amount of borrowings available under the Revolving Credit Agreement at any time are collateralized by our cash, which is classified as restricted cash on our balance sheets. With prior written notice to the Lender, we have the right, at any time prior to the Revolver's maturity date, without premium or penalty, to terminate or reduce the Revolver arrangement. In event of such termination, the aggregate principal of the then outstanding amounts, including any accrued interest to date, shall be repaid and the restrictions on the associated collateralized cash would be released.

The interest rate associated with each advance under the Revolving Credit Agreement is equal to the sum of LIBOR for the applicable interest period plus 1.50% which is a per annum rate based on outstanding borrowings. As such, for the initial interest period ending in November 2020, the interest rate is set at 3.46%. The commitment fee is 0.20% per annum based on the average daily unused amount of the commitment amount. Interest payments on outstanding borrowings are due on the last day of each interest period and payments for the commitment fee are due at the end of each calendar quarter.
In November 2020, we terminated the Revolving Credit Agreement in accordance with its terms. In connection with the termination of the Revolving Credit Agreement, we repaid the then outstanding aggregate principal amount of $20.3 million, as well as any accrued and unpaid interest, as of the termination date. The associated restriction on the collateralized cash of $70.1 million was also released, accordingly.

Senior Secured Credit Facilities Agreement

On February 16, 2021, we entered into a Senior Secured Credit Facilities Agreement ("Credit Agreement") with Silicon Valley Bank for an aggregate commitment amount of $100.0 million with a maturity date of February 16, 2024. The Credit Agreement bears interest at a rate per annum equal to the sum of LIBOR for the applicable interest period plus 1.75% - 2.00%, depending on the average daily outstanding balance of all loans and letters of credit under the Credit Agreement. Interest payments on outstanding borrowings are due on the last day of each interest period. The Credit Agreement has a commitment fee on the unused portion of the borrowing commitment, which is payable on the last day of each calendar quarter at a rate per annum of 0.20% - 0.25% depending on the average daily outstanding balance of all loans and letters of credit under the Credit Agreement. The agreement allows for an alternative interest rate to be used. In addition, our Credit Agreement contains a financial covenant that requires us to maintain a consolidated adjusted quick ratio of at least 1:25 to 1:00 tested on a quarterly basis as well as a springing revenue growth covenant for certain periods if our consolidated adjusted quick ratio falls below 1.75 to 1:00 on the last day of any fiscal quarter. The Credit Agreement requires us to comply with these affirmative and negative covenants and we were in compliance with all covenants as of December 31, 2021. We recorded $0.6 million of debt issuance costs associated with the Credit Agreement in other assets on our condensed consolidated balance sheet. During the year ended December 31, 2021, no amount was drawn down on our Credit Agreement, and as of December 31, 2021, no amount was outstanding under the Credit Agreement.

Convertible Senior Notes

On March 5, 2021, we issued approximately $948.8 million aggregate principal amount of our 0% convertible senior notes due 2026 (the “Notes”), including the exercise in full by the initial purchasers of their option to purchase up to an additional approximately $123.8 million principal amount of the Notes. The Notes were issued in a private placement to qualified institutional buyers pursuant to Rule144A under the Securities Act. The Notes will mature on March 15, 2026, unless earlier converted, redeemed or repurchased. The net proceeds from the issuance of the Notes were approximately $930.0 million after deducting the initial purchasers’ discounts and transaction costs.

We may not redeem the Notes prior to March 20, 2024. On or after March 20, 2024, we may redeem for cash, all or any portion of the Notes, at our option, at a redemption price equal to 100% of the principal amount of the Notes to be redeemed, plus accrued and unpaid special interest, if any, to, but excluding, the redemption date, if the last reported sale price of our common stock has been at least 130% of the conversion price for the Notes 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 immediately preceding the date on which we provide notice of redemption. No sinking fund is provided for the Notes.

Holders of the Notes may convert their notes at their option at any time prior to the close of business on the business day immediately preceding December 15, 2025, only under the following circumstances: (i) during any calendar quarter commencing after the calendar quarter ending on June 30, 2021 (and only during such calendar quarter), if the last reported sale price of our 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 for the Notes on each applicable trading day; (ii) during the five business day period after any ten consecutive trading day period (the “Measurement Period”) in which the trading price, as defined in the indenture agreement governing the Note filed with our Current Report on Form 8-K filed with the Securities and Exchange Commission on March 5, 2021, per $1,000 principal amount of notes for each trading day of the Measurement Period was less than 98% of the product of the last reported sale price of our Class A common stock and the conversion rate on each such trading day; (iii) if we call such Notes for redemption, at any time prior to the close of business on the scheduled trading day immediately preceding the applicable redemption date, but only with respect to the Notes called (or deemed called) for redemption; or (iv) upon the occurrence of specified corporate events. On or after December 15, 2025 until the close of business on the second scheduled trading day immediately preceding the maturity date, holders may convert all or any portion of their notes at any time, regardless of the foregoing circumstances.
Upon conversion, we may satisfy our conversion obligation by paying or delivering, as the case may be, cash, shares of our Class A common stock or a combination of cash and shares of our Class A common stock, at our election. The initial conversion rate is 9.7272 shares of Class A common stock per $1,000 principal amount of Notes, equivalent to an initial conversion price of approximately $102.80 per share of Class A common stock. The conversion rate is subject to adjustment as described in the indenture governing the Notes but will not be adjusted for any accrued and unpaid special interest. In addition, following certain corporate events that occur prior to the maturity date of the Notes or if we deliver a notice of redemption in respect of the Notes, we will, in certain circumstances, increase the conversion rate of the Notes for a holder who elects to convert its Notes, in connection with such a corporate event or convert its Notes called (or deemed called) for redemption during the related redemption period, as the case may be.

The indenture includes customary covenants and sets forth certain events of default after which the Notes may be declared immediately due and payable and sets forth certain types of bankruptcy or insolvency events of default involving us after which the Notes become automatically due and payable. If we undergo a fundamental change, as defined in the indenture agreement governing the Notes, then subject to certain conditions and except as described in the indenture governing the Notes, holders may require us to repurchase for cash all or any portion of their Notes at a fundamental change repurchase price equal to 100% of the principal amount of the Notes to be repurchased, plus accrued and unpaid special interest, if any, to, but excluding, the fundamental change repurchase date.

We evaluated the terms of our debt and concluded that the instrument does not require separation and that there were no other derivatives that required separation. As such, we have combined these features with the host contract and we account for our convertible debt as a single liability in long-term debt on our condensed consolidated balance sheet. The initial purchasers' discounts and transaction costs of $18.6 million incurred related to the issuance of the Notes were classified as liability and represents the difference between the principal amount of the Notes and the liability component (the “debt discount”), which is amortized to interest expense using the effective interest method over the term of the Notes.

As of December 31, 2021, the conversion conditions have not been met and therefore the Notes are not yet convertible.

For the years ended December 31, 2021 and 2020, total interest expense related to our debt obligations was $3.5 million and $0.9 million, respectively, which excludes the interest expense related to our finance leases which is separately disclosed in Note 7—Leases. For the year ended December 31, 2019, total interest expense was $5.2 million, of which $4.7 million relates to the Revolving Credit Agreement, Credit Facility and Loan and Security Agreement, and $0.5 million of which related to finance lease agreements and other costs.

The following table reflects the carrying values of the debt agreements as of December 31, 2021:

As of December 31,
2021
(in thousands)
Liability component:
Convertible Senior notes (effective interest rate of 0.39%)
$948,750 
Less: unamortized debt issuance costs(15,545)
Less: current portion of long-term debt— 
Long-term debt, less current portion
$933,205 
v3.22.0.1
Commitments and Contingencies
12 Months Ended
Dec. 31, 2021
Commitments and Contingencies Disclosure [Abstract]  
Commitments and Contingencies Commitments and Contingencies
Finance and Operating Lease Commitments
Our commitments include commitments under our non-cancelable facilities and colocation operating leases (i.e. data center leases), as well as finance leases for networking equipment. Refer to Note 7—Leases for further details and disclosures around their minimum future purchase commitments as of December 31, 2021.
Purchase Commitments
As of December 31, 2021, we had long-term commitments for cost of revenue related agreements (i.e., bandwidth usage, peering and other managed services with various networks, internet service providers ("ISPs") and other third-party vendors). We also have long-term commitments for various non-cancelable software as a service ("SaaS") agreements.

Aside from our finance and operating lease commitments, including our colocation operating commitments, which have been disclosed in Note 7—Leases, the minimum future purchase commitments relating to our other cost of revenue arrangements and SaaS commitments as of December 31, 2021 were as follows:
Cost of Revenue CommitmentsSaaS AgreementsTotal Purchase Commitments
(in thousands)
2022$34,075 $14,981 $49,056 
20235,554 14,593 20,147 
20242,920 849 3,769 
2025160 169 
2026160 — 160 
Thereafter82 — 82 
Total$42,951 $30,432 $73,383 
Sales and Use Tax
We conduct operations in many tax jurisdictions throughout the United States. In many of these jurisdictions, non-income-based taxes, such as sales and use and telecommunications taxes are assessed on our operations. We are subject to indirect taxes, and may be subject to certain other taxes, in some of these jurisdictions. Historically, we have not billed or collected these taxes and, in accordance with U.S. GAAP, we have recorded a provision for our tax exposure in these jurisdictions when it is both probable that a liability has been incurred and the amount of the exposure can be reasonably estimated. As a result, we have recorded a liability of $7.5 million and $6.3 million as of December 31, 2021 and 2020, respectively. These estimates are based on several key assumptions, including the taxability of our products, the jurisdictions in which we believe we have nexus and the sourcing of revenues to those jurisdictions. In the event these jurisdictions challenge our assumptions and analysis, our actual exposure could differ materially from our current estimates.
Legal Matters
We have in the past been involved in, and may in the future be involved in, various legal proceedings and claims arising from the normal course of business, and an unfavorable resolution of any of these matters could materially affect our future results of operations, cash flows or financial position. We are also party to various disputes that management considers routine and incidental to its business. Management does not expect the results of any of these routine actions to have a material effect on our business, results of operations, financial condition, or cash flows.

On August 27, 2020, a purported securities class action lawsuit was filed in the United States District Court for the Northern District of California, captioned Marcos Betancourt v. Fastly, Inc., et al. (Case No. 4:20-cv-06024-PJH) naming as defendants us and certain of our officers. On September 15, 2020, a substantively identical complaint was filed against the same defendants in the same court, captioned Rami Habib v. Fastly, Inc., et al. (Case No. 4:20-cv-06454-JST). On September 27, 2020, the court consolidated the two cases into one putative class action, captioned In re Fastly, Inc. Securities Litigation. On
February 10, 2021, the Court appointed lead plaintiff (“Lead Plaintiff”) and lead counsel. On April 12, 2021, Lead Plaintiff filed a consolidated complaint (the “Consolidated Complaint”). The Consolidated Complaint asserts that all defendants violated Section 10(b) of the Securities Exchange Act of 1934, as amended (the “Exchange Act”) and SEC Rule 10b-5 by making materially false or misleading statements between May 6, 2020 and October 14, 2020 regarding the Company’s business and financials, including allegations that the Company failed to disclose the identity of one of its largest customers. The Lead Plaintiff also alleges that certain of the Company’s officers violated Section 20(a) of the Exchange Act. On June 11, 2021, defendants filed a motion to dismiss the Consolidated Complaint that Lead Plaintiff opposed on July 26, 2021, and defendants filed a reply on September 1, 2021. On December 21, 2021, the consolidated class action was voluntarily dismissed with prejudice.

On December 28, 2020, certain of our officers and directors were named as defendants in a shareholder derivative action filed in the United States District Court for the District of Delaware, captioned Wei v. Bixby, et al., Case No. 1:20-cv-01773-MN. On February 2, 2021, a substantially similar shareholder derivative complaint was filed against the same defendants in the same court, captioned Kristen Gorenberg v. Bixby et al., Case No. 1:21-cv-00136. The derivative complaints assert, inter alia, breach of fiduciary duty claims. On March 15, 2021, the Court consolidated the cases and stayed the consolidated derivative action until after resolution of our motion to dismiss in the above-referenced securities class action, and on January 3, 2022, the consolidated derivative action was voluntarily dismissed without prejudice.

Indemnification
We enter into standard indemnification agreements in the ordinary course of business. Pursuant to these agreements, we agree to indemnify, hold harmless, and reimburse the indemnified party for losses suffered or incurred by the indemnified party, generally our business partners or customers, in connection with our provision of its services. Generally, these obligations are limited to claims relating to infringement of a patent, copyright, or other intellectual property right, breach of our security or data protection obligations, or our negligence, willful misconduct, or violation of law. Subject to applicable statutes of limitation, the term of these indemnification agreements is generally for the duration of the agreement. The maximum potential amount of future payments we could be required to make under these indemnification agreements is unlimited; however, we carry insurance that covers certain third-party claims relating to our services and could limit our exposure in that respect.

We have agreed to indemnify each of our officers and directors during his or her lifetime for certain events or occurrences that happen by reason of the fact that the officer or director is, was, or has agreed to serve as an officer or director of the Company. We have director and officer insurance policies that may limit our exposure and may enable us to recover a portion of certain future amounts paid.

To date, we have not encountered material costs as a result of such indemnification obligations and have not accrued any related liabilities in our financial statements. In assessing whether to establish an accrual, we consider such factors as the degree of probability of an unfavorable outcome and the ability to make a reasonable estimate of the amount of loss.
v3.22.0.1
Stockholders' Equity
12 Months Ended
Dec. 31, 2021
Stockholders' Equity Note [Abstract]  
Stockholders' Equity Stockholders' Equity
Common Stock
Our Amended and Restated Certificate of Incorporation, as amended and restated in May 2019, authorizes the issuance of 1.0 billion shares of Class A common stock and 94.1 million shares of Class B common stock, each at a par value per share of $0.00002. Holders of Class A common stock are entitled to one vote per share and holders of Class B common stock are entitled to 10 votes per share.
As of December 31, 2021 and 2020, 118.8 million and 103.4 million shares of Class A common stock were issued and outstanding, respectively. As of December 31, 2021 and 2020, no shares and 10.2 million shares of class B common stock were issued and outstanding, respectively.

Our Certificate includes an automatic conversion provision, which, on the date when the outstanding shares of our Class B common stock represent less than 10% of the aggregate number of shares of the then outstanding Class A common stock and Class B common stock (the “Sunset Trigger Date”), all our outstanding shares of Class B common stock will automatically convert into the same number of shares of Class A common stock under the terms of our Certificate on the trading day falling nine months after the Sunset Trigger Date ("the Conversion"). No additional Class B shares may be issued following the Conversion. On October 12, 2020, the outstanding shares of our Class B common stock represented less than 10% of the
aggregate number of shares of the then outstanding Class A common stock and Class B common stock. As a result, all our outstanding shares of Class B common stock automatically converted into the same number of shares of Class A common stock on July 12, 2021 (the "Conversion"), pursuant to the terms of our Certificate. Upon the conversion, outstanding options denominated in shares of Class B common stock issued under any of the Company’s equity incentive plans remained unchanged, except that they now represent the right to receive shares of Class A common stock. In accordance with our Certificate, the shares of Class B common stock that converted to Class A common stock were retired and will not be reissued by us.

On July 12, 2021, we filed a certificate with the Secretary of State of the State of Delaware effecting the retirement of the shares of Class B common stock that were issued but no longer outstanding following the Conversion. Upon the effectiveness of the certificate, our total number of authorized shares of capital stock was reduced by the retirement of 90.0 million shares of Class B common stock.

Preferred Stock
Our Amended and Restated Certificate of Incorporation, as amended and restated in May 2019, also authorizes the issuance of 10.0 million shares of preferred stock, at a par value per share of $0.00002, with rights and preferences, including voting rights, designated from time to time by the Board of Directors (the "Board"). As of both December 31, 2021 and 2020, no shares of preferred stock were issued and outstanding.

Equity Incentive Plans
In March 2011, our stockholders approved our 2011 Equity Incentive Plan ("2011 Plan"), which allows for the issuance of incentive stock options, nonstatutory stock options, stock appreciation rights, restricted stock awards, and restricted stock unit awards ("RSUs") to employees, directors, and consultants of the Company. Options granted under our 2011 Plan were originally exercisable for shares of our Class B common stock but due to the Conversion, these awards are now exercisable for shares or our Class A common stock.
As of both December 31, 2021 and 2020, there were 23.6 million shares of Class B common stock reserved for issuance pursuant to outstanding stock options under the 2011 Plan. As of both December 31, 2021 and 2020, there were no shares of Class B common stock available for issuance for future grants under the 2011 Plan. All such shares of Class B common stock were converted to Class A common stock in July 2021 pursuant to the Conversion. As of December 31, 2021 there were no shares of Class A common stock available for issuance for future grants under the 2011 Plan.

In May 2019, in conjunction with our IPO, our Board and stockholders approved our 2019 Equity Incentive Plan (the "2019 Plan") which allows for the issuance of incentive stock options, non-statutory stock options, stock appreciation rights, RSUs, performance-based stock awards, and other forms of equity compensation, which are collectively referred to as stock awards. Additionally, the 2019 Plan provides for the grant of performance cash awards. Options are exercisable for shares of our Class A common stock. No further awards will be issued under the 2011 Plan.

In October 2020, we assumed the Signal Sciences Corp. 2014 Stock Option and Grant Plan, as amended (the “Signal Plan”) and registered 251,754 shares under the Signal Plan, which were the outstanding unvested options to purchase shares of common stock of Signal Sciences. Such options became exercisable to purchase shares of our Class A common stock, subject to appropriate adjustments to the number of shares and the exercise price of each such option.

As of December 31, 2021 and 2020, an aggregate of 21.4 million shares and 19.4 million shares of Class A common stock have been reserved for issuance under the 2019 Plan, respectively. As of December 31, 2021 and 2020, there were 15.9 million and 12.8 million Class A common stock available for issuance under the 2019 Plan, respectively.

In May 2019, in conjunction with our IPO, our Board and stockholders approved the Employee Stock Purchase Plan ("ESPP"). The ESPP allows eligible employees to purchase shares of our Class A common stock through payroll deductions of up to 15% of their eligible compensation, subject to a maximum of $25,000 per calendar year.
As of December 31, 2021 and 2020, an aggregate of 4.6 million shares and 3.5 million shares of Class A common stock have been reserved for issuance under the ESPP, respectively. As of December 31, 2021 and 2020, there were 3.7 million shares and 2.8 million shares of Class A common stock available for future issuance under the ESPP, respectively.
Stock Options

Options granted under the 2011 Plan are exercisable for Class B common stock and generally expire within 10 years from the date of grant and generally vest over four years, at the rate of 25% on the first anniversary of the date of grant and ratably on a monthly basis over the remaining 36-month period thereafter based on continued service.

Options granted under the 2019 Plan are exercisable for Class A common stock and generally expire within 10 years from the date of grant and generally vest over four years, at the rate of 25% on the first anniversary of the date of grant and ratably on a monthly basis over the remaining 36-month period thereafter based on continued service. Forfeitures are recognized as they occur.
Options granted under the Signal Sciences 2014 Equity Stock Options Plan that was assumed through the acquisition are included as part of the option rollforward activity in year ended December 31, 2020. The vesting of these options follow their original grant date terms ("Original grant date") prior to the acquisition of Signal Sciences and generally expire within 10 years from the original grant date and generally vest over four years, at the rate of 25% on the first anniversary of the date of grant and ratably on a monthly basis over the remaining 36-month period thereafter. Subsequent to the acquisition, these options are exercisable for Class A common stock and are recognized ratably over the remaining period based on continued service from the grant date.
Forfeitures are recognized as they occur.
The following table summarizes stock option activity during the years ended December 31, 2021, 2020 and 2019:
Number of SharesWeighted-Average 
Exercise Price
Weighted-Average
Remaining
Contractual Term
Aggregate
Intrinsic Value
(in thousands)(in years)(in thousands)
Outstanding at January 1, 201912,210 $2.96 7.8$64,590 
Granted2,516 10.87 
Exercised(2,650)2.45 
Cancelled/forfeited(807)5.10 
Outstanding at December 31, 201911,269 4.68 7.3$173,471 
Granted252 12.96 
Exercised(4,360)3.46 
Cancelled/forfeited(198)8.79 
Outstanding at December 31, 20206,963 5.63 6.7$569,094 
Granted— — 
Exercised(2,188)5.77 
Cancelled/forfeited(406)11.10 
Outstanding at December 31, 20214,369 $5.07 5.1$132,721 
Vested and exercisable at December 31, 20213,579 $4.10 4.7$112,280 
Unvested and exercisable at December 31, 2021134 $6.70 6.9$3,834 
The total pre-tax intrinsic value of options exercised during the years ended December 31, 2021, 2020, and 2019 was $64.9 million, $200.9 million, and $32.6 million, respectively.
The total grant date fair value of employee options vested for the years ended December 31, 2021, 2020, 2019 was $6.9 million, $10.3 million, and $6.1 million, respectively.
The weighted-average grant date fair value for options granted to employees during the years ended December 31, 2021, 2020, and 2019 was $0.00, $86.77, and $5.77, respectively.
We estimate the fair value of stock options on the date of grant using the Black-Scholes option-pricing model. Each of the Black-Scholes inputs is subjective and generally requires significant judgments to determine. We estimated the fair value of
stock option awards during the years ended December 31, 2021, 2020, and 2019 on the date of the grant using the Black-Scholes option pricing model with the following weighted-average assumptions:
Year ended December 31,
202120202019
Fair value of common stock$—
$85.26 - $96.43
$8.24 - $22.70
Expected term (in years)
5.38 - 9.75
6.02
Risk-free interest rate—%
0.31% - 0.67%
1.55% - 2.5%
Expected volatility—%
43.92% - 46.49%
39.1% - 42.7%
Dividend yield—%—%—%
During the years ended December 31, 2021 and 2020, and 2019, we recognized stock-based compensation expense from stock options of approximately $18.7 million, $10.1 million, and $7.9 million, respectively.
During the years ended December 31, 2021, 2020 and 2019, we modified the terms options awarded to certain employees to allow for the remaining unvested awards to be fully vested upon their change in employment status. As a result, we recorded incremental stock-based compensation expense in relation to these modifications of $6.2 million, $0.9 million and $0.6 million for the years ended December 31, 2021, 2020 and 2019, respectively.
As of December 31, 2021, total unrecognized stock-based compensation cost related to outstanding unvested stock options that are expected to vest was $9.4 million. This unrecognized stock-based compensation cost is expected to be recognized over a weighted-average period of approximately 1.5 years.
Early Exercise of Stock Options
Certain stock options granted by us are exercisable at the date of grant, with unvested shares subject to repurchase by us in the event of voluntary or involuntary termination of employment of the stockholder. Such exercises are recorded as a liability on the accompanying Consolidated Balance Sheets and reclassified into equity as the options vest. During the year ended December 31, 2021, we modified the terms of 47,882 unvested options subject to repurchase, with an exercise value of approximately $0.2 million, to become fully vested upon change in service status. As of December 31, 2021, December 31, 2020, a total of 0 and 90,977 shares of Class B Common Stock were subject to repurchase by us at the lower of (i) the fair market value of such shares on the date of repurchase, or (ii) the original exercise price of such shares. The corresponding exercise value of approximately $0.0 million and $0.4 million as of December 31, 2021 and December 31, 2020, respectively, is recorded in other current liabilities and other liabilities on the accompanying Consolidated Balance Sheets.
The activity of non-vested shares as a result of early exercise of options granted to employees and non-employees, is as follows:
Year ended December 31,
202120202019
(in thousands)
Beginning balance91 200 245 
Early exercise of options— — 117 
Vested(91)(109)(162)
Repurchased— — — 
Ending balance— 91 200 
RSUs
The fair value of RSUs is based on the grant date fair value and is expensed on a straight-line basis over the applicable vesting period. RSUs grant for new hires typically vest over four years, at the rate of 25% on the first anniversary of the vest commencement date and ratably on a quarterly basis over the remaining 36-month period thereafter, based on continued service. Other RSU awards typically vest quarterly over terms of 36 to 48 months. Forfeitures are recognized as they occur.
The following table summarizes RSU activity during the years ended December 31, 2021, 2020and 2019:
Number of SharesWeighted-Average Grant Date Fair Value Per Share
(in thousands)
Nonvested RSUs as of January 1, 2019— — 
Granted1,644 20.07 
Vested— — 
Cancelled/forfeited(3)
Nonvested RSUs as of December 31, 20191,641 20.07 
Granted4,398 31.22 
Vested(1,377)22.92 
Cancelled/forfeited(142)22.58 
Nonvested RSUs as of December 31, 20204,520 30.01 
Granted3,584 54.92 
Vested(1,924)35.18 
Cancelled/forfeited(895)42.91 
Nonvested RSUs as of December 31, 20215,285 $42.80 
During the years ended December 31, 2021, 2020 and 2019, we recognized stock-based compensation expense related to RSUs of $75.5 million , $40.5 million and $2.2 million, respectively.
During the years ended December 31, 2021 and 2020, we modified the terms of RSUs awarded to certain employees to allow for the remaining unvested awards to be fully vested upon their change in employment status. As a result, we recorded incremental stock-based compensation expense in relation to these modifications of $2.8 million and $4.8 million for the year ended December 31, 2021 and 2020, respectively. During the year ended December 31, 2019, there were no RSU award modifications that resulted in incremental expense being recorded.

As of December 31, 2021, total unrecognized stock-based compensation cost related to non-vested RSUs was $210.5 million. This unrecognized stock-based compensation cost is expected to be recognized over a weighted-average period of approximately 2.90 years.
Stock subject to revest ("Revest shares")
In conjunction with the acquisition of Signal Sciences, a restriction was placed on 896,499 shares belonging to the three co-founders of Signal Sciences to make them subject to revesting on a quarterly basis over a 2 year period. Refer to Note 5—Business Combinations for further details.
The activity of revest shares granted to these employees is as follows:
Number of SharesWeighted-Average Grant Date Fair Value Per Share
(in thousands)
Nonvested revest shares as of December 31, 2019— $— 
Restricted896 $97.84 
Vested(112)$97.84 
Cancelled/forfeited— 
Nonvested revest shares as of December 31, 2020784 $97.84 
Restricted— $— 
Vested(448)$97.84 
Cancelled/forfeited— 
Nonvested revest shares as of December 31, 2021336 $97.84 
As of December 31, 2021 and 2020, we recognized stock-based compensation expense related to revest shares of $43.8 million and $11.1 million, respectively.
As of December 31, 2021, total unrecognized stock-based compensation cost related to revest shares was $32.9 million. This unrecognized stock-based compensation cost is expected to be recognized over a weighted-average period of approximately 0.70 years.
During the quarter ended September 30, 2021 and the quarter ended December 31 2021, 186,771 and 149,417 unvested shares were sold prior to vesting, respectively. These shares were sold for an average price of $47.54. As the holders of these shares are not entitled to the benefit of unvested shares, we requested the return of proceeds for the unvested shares as of December 31, 2021. Subsequent to December 31, 2021, we received a total of $10.7 million from these founders attributed to the 224,124 shares that were sold prior to vesting and remain unvested as of December 31, 2021. In connection with the return of these proceeds, we modified the terms of the restricted share agreements for these founders. These proceeds will be returned to these founders in accordance with the original vesting schedule of these awards. Refer to Note -15 Subsequent Events.
Performance-Based Restricted Stock Units ("PSUs")
In March 2020, we granted a maximum total of 87,918 shares of PSUs to certain employees of the company, pursuant to our 2019 Equity Incentive Plan. The PSUs granted reflect a maximum of 200% of target performance and represent the right of the employees to be issued on a future date, one (1) share of Class A common stock for each RSU received that will vest on the applicable vesting date.

On November 2, 2020, the Compensation Committee of the Board set the performance conditions related to the previously granted PSUs ("2020 PSU awards"). The performance conditions are based on the level of achievement of certain Company and individual targets related to Fastly's operating plan for the fiscal year 2020 ("2020 operating plan"). The PSUs will vest at 50% of the target if the Company achieves 90% performance under the 2020 operating plan, 100% of the target if the Company achieves 100% performance under the 2020 operating plan and 200% of the target if the Company achieves 110% performance or greater under the 2020 operating plan. These awards will be eligible to vest linearly within those parameters. Subject to employees’ continuous service with the Company through each vesting date, 25% of the number of RSUs credited to them upon certification of achievement will vest on February 15, 2021, May 15, 2021, August 15, 2021, and November 15,
2021, respectively. Based on the results of the 2020 operating plan, the actual award was reduced to 75,828 shares which represents attainment of 172%. As a result, 12,090 shares were cancelled.


In February 2021, we granted a maximum total of 70,680 shares ("2021 PSU awards") of PSUs to certain employees of the Company, pursuant to the Company’s 2019 Equity Incentive Plan. The PSUs granted reflect a maximum of 150% of target performance and represent the right of the employees to be issued on a future date, one (1) share of Class A common stock for each RSU received that will vest on the applicable vesting date. The performance conditions were set and approved on the date of grant and are based on the level of achievement of certain Company and individual targets related to Fastly's operating plan for the fiscal year 2021 ("2021 operating plan"). The PSUs will vest at 50% of the target if the Company achieves 90% performance under the 2021 operating plan, 100% of the target if the Company achieves 100% performance under the 2021 operating plan and 150% of the target if the Company achieves 110% performance or greater under the 2021 operating plan. These awards will be eligible to vest linearly within those parameters. Subject to employees’ continuous service with the Company through each vesting date, based on the expected extent of such targets achieved, 25% of the total RSUs on February 15, 2022 and thereafter in 12 equal quarterly installments (i.e. 6.25% of the total RSUs will vest per quarter) on May 15, August 15, November 15, and February 15. Based on the results of the 2021 operating plan, the performance conditions were not met in order to achieve the minimum award. As a result,70,680 shares were cancelled subsequent to year-end.

The activity of PSUs granted to employees is as follows:
Number of SharesWeighted-Average Grant Date Fair Value Per Share
(in thousands)
Nonvested PSUs as of December 31, 2019— $— 
Granted88 $65.11 
Vested— — 
Cancelled/forfeited— — 
Nonvested PSUs as of December 31, 202088 $65.11 
Granted71 $102.06 
Vested(76)$65.11 
Cancelled/forfeited(12)$65.11 
Nonvested PSUs as of December 31, 202171 $102.06 

As of December 31, 2021, the performance conditions associated with the 2020 PSU awards were met and we recorded $3.4 million in stock-based compensation expense. As of December 31, 2021, the performance conditions for the 2021 PSU awards were not met and $0 of stock-based compensation expense was recorded.

Subsequent to year-end the 2021 awards were cancelled due to non-performance. As such there is no remaining stock-based compensation to be recognized.

ESPP
The ESPP allows eligible employees to purchase shares of our common stock through payroll deductions of up to 15% of their eligible compensation. The ESPP provides for six-month offering periods, commencing in May and November of each year. At the end of each offering period employees are able to purchase shares at 85% of the lower of the fair market value of our Class A common stock on the first trading day of the offering period or on the last day of the offering period.
We estimate the fair value of shares to be issued under the ESPP on the first day of the offering period using the Black-Scholes valuation model. The inputs to the Black-Scholes option pricing model are our stock price on the first date of the offering period, the risk-free interest rate, the estimated volatility of our stock price over the term of the offering period, the expected term of the offering period and the expected dividend rate. Stock-based compensation expense related to the ESPP is recognized on a straight-line basis over the offering period. Forfeitures are recognized as they occur.
We estimated the fair value of shares granted under the ESPP on the first date of the offering period using the Black-Scholes option pricing model with the following assumptions:
Year ended December 31,
202120202019
Fair value of common stock
$41.24 - $44.87
$14.09 - $24.07
$6.02 - $6.92
Expected term (in years)
0.49 - 0.50
0.49-0.50
0.47-0.50
Risk-free interest rate
0.02% - 0.07%
0.10% - 0.14%
1.59% - 2.35%
Expected volatility
47% - 58%
50% - 60%
36% - 43%
Dividend yield— %— %—%
During the years ended December 31, 2021, 2020 and 2019, we withheld $8.1 million, $9.6 million and $5.5 millionffrom employees, respectively, and recognized $3.5 million, $3.2 million, and $2.5 million in stock-based compensation expense related to the ESPP, respectively. As of December 31, 2021, total unrecognized stock-based compensation cost related to ESPP was $1.9 million. This unrecognized stock-based compensation cost is expected to be recognized over a weighted-average period of approximately 0.4 years.
During the years ended December 31, 2021, 2020 and 2019, an aggregate of 0.2 million and 0.3 million and 0.3 million shares of our Class A common stock was purchased under the ESPP, respectively.
Stock-based Compensation Expense
The following table summarizes the components of total stock-based compensation expense included in the accompanying Consolidated Statements of Operations:
Year ended December 31,
202120202019
(in thousands)
Stock-based compensation expense by caption:
Cost of revenue$7,227 $3,889 $1,410 
Research and development47,019 17,112 2,920 
Sales and marketing31,159 17,028 3,497 
General and administrative55,083 26,404 4,318 
Total$140,488 $64,433 $12,145 
For the years ended December 31, 2021, 2020 and 2019, we capitalized $4.4 million, $2.0 million, and $0.4 million of stock-based compensation expense, respectively.
Common Stock Warrant Liabilities
Prior to the IPO, we issued convertible preferred stock warrants in conjunction with the issuances of debt. We recorded these warrants to purchase convertible preferred stock as a liability on the consolidated balance sheets at fair value upon issuance as the warrants were exercisable for contingently redeemable preferred stock which was classified outside of stockholders' equity (deficit). The liability associated with these warrants were subject to remeasurement at each balance sheet date, with changes in fair value recorded in the consolidated statement of operations and comprehensive loss as other expense, net.

On May 17, 2019, immediately upon closing of the IPO, our warrants to purchase convertible preferred stock were automatically converted to warrants to purchase an equal number of shares of our Class B common stock. As a result, the warrants were remeasured a final time, immediately prior to the closing of the IPO, and reclassified to additional paid-in capital within stockholders' equity. Changes in the fair value were recorded within other expense, net on the consolidated statement of
operations. As of December 31, 2019, the warrants were classified and recorded as additional paid-in capital on the condensed consolidated balance sheets. During the year ended December 31, 2020, the remaining Class B common stock warrants related to the previously outstanding subordinated debt and loan agreements were fully exercised under the cashless exercise method pursuant to the corresponding warrant agreements. As a result of such exercises, we issued 144,635 shares of our Class B common stock. There were no remaining outstanding common stock warrant liabilities as of December 31, 2020.
v3.22.0.1
Net Loss Per Share Attributable to Common Stockholders
12 Months Ended
Dec. 31, 2021
Earnings Per Share [Abstract]  
Net Loss Per Share Attributable to Common Stockholders Net Loss Per Share Attributable to Common Stockholders
We compute net loss per share using the two-class method required for multiple classes of common stock and participating securities. The rights of the holders of the Class A common stock and Class B common stock are identical, except with respect to voting and conversion. Accordingly, the Class A common stock and Class B common stock share equally in our net losses.
On July 12, 2021, the shares of Class B common stock that converted to Class A common stock were retired and will not be reissued by us.
The following table sets forth the calculation of basic and diluted net loss per share attributable to common stockholders during the periods presented. The shares issued in the IPO, the shares issued pursuant to the exercise by the underwriters of an option to purchase additional shares, and the shares of Class A and Class B common stock issued upon conversion of the outstanding shares of convertible preferred stock in the IPO are included in the table below weighted for the period outstanding:
Year ended December 31,
202120202019
Class A(1), (3)
Class B(2)
Class A (1)
Class B(2)
Class A
Class B(2)
(in thousands, except per share amounts)
Net loss attributable to common stockholders$(212,120)$(10,577)$(78,114)$(17,818)$(12,084)$(39,466)
Weighted-average shares used in computing net loss per share attributable to common stockholders, basic and diluted110,541 5,512 84,319 19,233 16,022 52,328 
Net loss per share attributable to common stockholders, basic and diluted$(1.92)$(1.92)$(0.93)$(0.93)(0.75)$(0.75)
__________

(1)Class A common stock includes the issuance of 12.9 million shares of Class A common stock issued by us in connection with our IPO and the shares issued in connection with our follow-on offering on May 26, 2020. It also includes shares issued upon the exercise of options and vesting of RSUs granted subsequent to our IPO, shares issued as part of our prior acquisitions, and converted Common B shares.
(2)Class B common stock includes, for all periods presented, common stock issued prior to the IPO and the conversion of all of our preferred stock into an aggregate of 53.6 million shares of our Class B common stock upon closing of the IPO. Some of these shares were previously converted into shares of Class A common stock. On July 12, 2021, all shares of Class B common stock were converted into shares of Class A common stock.
Since we were in a loss position for the 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 anti-dilutive. The potential shares of common stock that were excluded from the computation of diluted net loss per share attributable to common stockholders for the period presented because including them would have been antidilutive are as follows:
Number of Shares
Year ended December 31,
202120202019
(in thousands)
Stock options4,369 6,963 11,269 
RSUs5,285 4,520 1,641 
Early exercised stock options— 91 200 
Convertible common stock warrants— — 183 
RSAs336 784 — 
Shares issuable pursuant to the ESPP51 25 247 
PSUs71 88 
Convertible senior notes (if-converted)9,229 — — 
Total19,341 12,471 13,540 
v3.22.0.1
Income Taxes
12 Months Ended
Dec. 31, 2021
Income Tax Disclosure [Abstract]  
Income Taxes Income Taxes
Loss before income taxes includes the following components:
Year ended December 31,
202120202019
(in thousands)
United States$(224,159)$(86,842)$(30,970)
Foreign1,531 (20,570)(20,088)
Loss before income taxes$(222,628)$(107,412)$(51,058)
The income tax expense (benefit) consists of the following:
Year ended December 31,
202120202019
(in thousands)
Current tax provision (benefit):
Federal
$— $— $— 
State
— 420 106 
Foreign
322 1,050 386 
Deferred tax provision (benefit):
Federal
(253)(10,631)— 
State
— (2,319)— 
Foreign
— — — 
Total tax expense (benefit)$69 $(11,480)$492 
Reconciliation between our effective tax rate on income from continuing operations and the U.S. federal statutory rate is as follows:
Year ended December 31,
202120202019
Provision at federal statutory tax rate21 %21 %21 %
State taxes, net of federal tax impact— — 
Change in valuation allowance(30)(35)(12)
Foreign tax rate differential— (5)(8)
Acquisition related expenses— (2)— 
Stock-based compensation30 — 
Research and development credits— — 
Restructuring— — 
Other— — (2)
Effective tax rate— %11 %(1)%

We recorded tax expense of $0.1 million for the year ended December 31, 2021. Our income tax expense is primarily due to income taxes from certain foreign jurisdictions where we conduct business and state minimum income taxes in the United States.

Our deferred tax assets and liabilities were as follows:
Year ended December 31,
20212020
(in thousands)
Reserves and accruals$3,149 $941 
Lease liability20,415 17,481 
Stock-based compensation6,000 3,969 
Net operating losses162,260 109,281 
Payroll taxes454 — 
Depreciation of property, plant and equipment1,958 576 
Research and development credits16,636 — 
Deferred revenue7,821 — 
Deferred tax assets218,693 132,248 
Deferred Revenue— (673)
Right-of-use Asset(19,073)(16,160)
Amortization of intangible assets(21,935)(31,188)
State Taxes(8,969)(4,319)
Other(4,724)(133)
Deferred tax liabilities$(54,701)$(52,473)
Valuation allowance(163,992)(80,028)
Net deferred tax (liabilities) assets$— $(253)
As of December 31, 2021 and 2020, we had net operating loss carryforwards for U.S. federal income tax purposes of approximately $586.3 million and $395.9 million, respectively; and for state income tax purposes of approximately $482.5 million and $316.5 million, respectively. The federal net operating loss carryforwards, if not utilized, will begin to expire in 2031. The state net operating loss carryforward, if not utilized, will begin to expire on various dates starting in 2022. The Company also has federal and California research and development credit carryforwards totaling $17.8 million and $6.6 million at December 31, 2021, respectively. The federal research and development credit carryforwards will begin to expire in 2034, unless previously utilized. The California research credits do not expire.
Based on all available evidence on a jurisdictional basis we believe that it is more likely than not that our deferred tax assets will not be utilized and have recorded a full valuation allowance against its net deferred tax assets. We assess on a periodic basis the likelihood that we will be able to recover its deferred tax assets. We consider all available evidence, both positive and negative, including historical losses, we determined that it is more likely than not that the net deferred tax assets will not be fully realizable for the years ended December 31, 2021 and 2020.
We have a valuation allowance for deferred tax assets, including net operating loss carryforwards. We expect to maintain this valuation allowance for the foreseeable future. During the year ended December 31, 2021, the valuation allowance related to the Company's deferred tax assets increased by $79.5 million.
Utilization of the net operating loss carryforwards may be subject to a substantial annual limitation due to the ownership change limitations provided by the Internal Revenue Code of 1986, as amended (the "Code") and similar state provisions. A detailed analysis was performed through June 30, 2020 for Fastly to determine whether an ownership change under Section 382 of the Code has occurred has been performed and as a result there is no limitation on the use of net operating loss carryforwards attributable to periods before the change. A detailed analysis was performed for the period March 1, 2014 to October 1, 2020 for Signal Sciences to determine whether an ownership change under Section 382 of the Code has occurred has been performed and as a result there is a limitation on the use of net operating loss carryforwards acquired from Signal Sciences.

No provision for U.S. income and foreign withholding taxes has been made for these permanently reinvested foreign earnings because it is management’s intention to permanently reinvest such undistributed earnings outside the United States.

A reconciliation of the Company’s unrecognized tax benefits is as follows (in thousands):
Year ended December 31,
20212020
Balance at beginning of year
$3,186 $— 
Increases related to prior year tax positions
3,113 2,328 
Decreases related to prior year tax positions
(31)— 
Increases related to current year tax positions
1,540 858 
Balance at end of year
$7,808 $3,186 

The Company has considered the amounts and probabilities of the outcomes that can be realized upon ultimate settlement with the tax authorities and determined unrecognized tax benefits primarily related to credits should be established as noted in the summary rollforward above. The unrecognized tax benefits, if recognized and in absence of full valuation allowance, would impact the income tax provision by $7.8 million and $3.0 million at December 31, 2021 and 2020, respectively. It would not impact the tax provision for year ended December 31, 2019. As of December 31, 2021, the Company does not believe that it is reasonably possible that its unrecognized tax benefits would significantly change in the following 12 months. Our policy is to recognize interest and penalties associated with uncertain tax benefits as part of the income tax provision and include accrued interest and penalties with the related income tax liability on its consolidated balance sheet. To date, we have not recognized any interest and penalties in its consolidated statements of operations, nor has it accrued for or made payments for interest and penalties.

Generally, in the U.S. federal and state taxing jurisdictions, tax periods in which certain loss and credit carryovers are generated remain open for audit until such time as the limitation period ends for the year in which such losses or credits are utilized.
On March 27, 2020, the “Coronavirus Aid, Relief and Economic Security (CARES) Act” was signed into law (the "CARES Act"). The CARES Act includes provisions relating to refundable payroll tax credits, deferment of the employer portion of certain payroll taxes, net operating loss carryback periods, alternative minimum tax credit refunds, modifications to the net interest deduction limitations and technical corrections to tax depreciation methods for qualified improvement property.
Since the second quarter of 2020, we utilized the provision to defer payment of certain of our payroll taxes. Any deferred payments will be accrued for as a liability and included in our condensed consolidated balance sheet for the applicable period. As of December 31, 2021, we have accrued for $1.7 million in payroll tax deferrals related to the CARES Act.
v3.22.0.1
Information About Revenue and Geographic Areas
12 Months Ended
Dec. 31, 2021
Segment Reporting [Abstract]  
Information About Revenue and Geographic Areas Information About Revenue and Geographic Areas
We consider operating segments to be components of the Company in which separate financial information is available and is evaluated regularly by our Chief Operating Decision Maker ("CODM") in deciding how to allocate resources and in assessing performance. Our CODM is the Chief Executive Officer ("CEO"). The CEO reviews financial information presented on a consolidated basis, accompanied by information about revenue, customer size, and industry vertical for purposes of allocating resources and evaluating financial performance.
We have determined that we operate our business as one reportable segment, and there are no segment managers who are held accountable for operations, operating results, or plans for levels or components below the consolidated unit level. Accordingly, we have determined that we have a single reporting segment and operating unit structure.
Revenue
Revenue by geography is based on the billing address of the customer. Refer to Note 3—Revenue for more information on net revenue by geographic region.
Long-Lived Assets
The following table presents long-lived assets by geographic region:
As of December 31,As of December 31,
20212020
(in thousands)
United States$122,375 $65,054 
All other countries44,586 30,925 
Total long-lived assets$166,961 $95,979 
v3.22.0.1
Subsequent Events
12 Months Ended
Dec. 31, 2021
Subsequent Events [Abstract]  
Subsequent Event Subsequent EventsOn January 24, 2022 we entered into an agreement with the holders of restricted stock that had been sold in advance of vesting conditions to return the proceeds associated with the remaining 224,124 unvested shares as of December 31, 2021. On January 31, we received $10.7 million from these stockholders. We have recorded a receivable of $10.7 million as of December 31, 2021. These funds will be remitted in accordance with the original vesting schedule. The modification to the original award will be reflected subsequent to December 31, 2021. In February, one of the stockholders had a change in service as he converted from an employee to a contractor. Under the terms of his agreement, he is entitled to continued vesting of these awards as long as he provides continued service as a contractor. We have entered into a separate Consulting agreement with him. Due to the reduction in duties to be performed as a contractor, we will accelerate the remaining stock based compensation associated with his award to be recorded on his last day of service as an employee. See Note 11. Stockholders' Equity for additional information.
v3.22.0.1
Summary of Significant Accounting Policies (Policies)
12 Months Ended
Dec. 31, 2021
Accounting Policies [Abstract]  
Basis of Presentation
Basis of Presentation
The consolidated financial statements and accompanying notes have been prepared in accordance with United States generally accepted accounting principles ("U.S. GAAP").
Certain changes in presentation have been made to conform the prior period presentation to the current period reporting. Such reclassifications did not affect total revenues, operating income, or net income. We have made certain presentation changes, to distinguish and disclose as a separate line item, our non-current marketable securities balance from our other assets
line in the Consolidated Balance Sheets. We have made certain presentation changes to distinguish and disclose as separate line items, the amortization of intangible assets and depreciation expenses within operating cash flows in the Consolidated Statements of Cash Flows.
Principles of Consolidation and Unaudited Interim Financial Statements Principles of ConsolidationThe accompanying consolidated financial statements include the accounts of the Company and its wholly-owned subsidiaries. All intercompany transactions and balances have been eliminated in consolidation.
Use of Estimates
Use of Estimates
The preparation of our consolidated financial statements requires us to make estimates, judgments, and assumptions that affect the reported amounts of assets, liabilities, revenue, costs and expenses, and related disclosures. Actual results and outcomes could differ significantly from our estimates, judgments, and assumptions. Significant estimates, judgments, and assumptions used in these financial statements include, but are not limited to, those related to revenue, accounts receivable and related reserves, fair value of assets acquired and liabilities assumed for business combinations, useful lives and realizability of long-lived assets including our goodwill and intangible assets, income tax reserves, and accounting for stock-based compensation. Estimates are periodically reviewed in light of changes in circumstances, facts, and experience. The effects of material revisions in estimates are reflected in the consolidated financial statements in the period of change and prospectively from the date of the change in estimate.

The ongoing global COVID-19 pandemic has adversely impacted many operational aspects of our business and may continue to do so in the future. Since the start of the global pandemic, we have assessed the impact that COVID-19 had on our results of operations, including, but not limited to an assessment of our allowance for credit losses, the carrying value of short-term and long-term marketable securities, the carrying value of goodwill and other long-lived assets, and the impact to revenue recognition and cost of revenues. The future impacts of the pandemic and any resulting economic impact are largely unknown and continuing to evolve. We will continue to actively monitor the impact that COVID-19 has on the results of our business operations, and may make decisions required by federal, state or local authorities, or that are determined to be in the best interests of our employees, customers, partners, suppliers and stockholders. As a result, our estimates and judgments may change materially as new events occur or additional information becomes available to us.
Cash, Cash Equivalents
Cash, Cash Equivalents and Marketable Securities
We invest our excess cash primarily in short-term fixed income securities, including government and investment-grade debt securities and money market funds. We classify all liquid investments with stated maturities of three months or less from date of purchase as cash equivalents. Marketable securities with original maturities greater than three months from purchase date and remaining maturities less than one year are classified as short-term marketable securities. Marketable securities with remaining maturities greater than one year as of the balance sheet date and which we intend to hold for greater than one year, are classified as long-term marketable securities. The fair market value of cash equivalents at December 31, 2021 and 2020 approximated their carrying value. Cost of securities sold is based on specific identification. We determine the appropriate classification of our investments in marketable securities at the time of purchase and reevaluate such designation at each balance sheet date. We have classified and accounted for our marketable securities as available-for-sale. After considering our capital preservation objectives, as well as our liquidity requirements, we may sell securities prior to their stated maturities. We carry our available-for-sale securities at fair value, and report the unrealized gains and losses as a component of other comprehensive loss, except for unrealized losses determined to be other-than-temporary which are recorded as other expense, net. We determine any realized gains or losses on the sale of marketable securities on a specific identification method and record such gains and losses as a component of other expense, net. Interest earned on cash, cash equivalents, and marketable securities was approximately $1.3 million, $1.4 million, and $3.1 million during the years ended December 31, 2021, 2020 and 2019, respectively. These balances are recorded in interest income in the accompanying Consolidated Statement of Operations.
We evaluate the investments periodically for possible other-than-temporary impairment. A decline in fair value below the amortized costs of debt securities is considered an other-than-temporary impairment if we have the intent to sell the security or it is more likely than not that we will be required to sell the security before recovery of the entire amortized cost basis. In those instances, an impairment charge equal to the difference between the fair value and the amortized cost basis is recognized in other expense. Regardless of our intent or requirement to sell a debt security, impairment is considered other-than-temporary if we do not expect to recover the entire amortized cost basis.
Marketable Securities
Cash, Cash Equivalents and Marketable Securities
We invest our excess cash primarily in short-term fixed income securities, including government and investment-grade debt securities and money market funds. We classify all liquid investments with stated maturities of three months or less from date of purchase as cash equivalents. Marketable securities with original maturities greater than three months from purchase date and remaining maturities less than one year are classified as short-term marketable securities. Marketable securities with remaining maturities greater than one year as of the balance sheet date and which we intend to hold for greater than one year, are classified as long-term marketable securities. The fair market value of cash equivalents at December 31, 2021 and 2020 approximated their carrying value. Cost of securities sold is based on specific identification. We determine the appropriate classification of our investments in marketable securities at the time of purchase and reevaluate such designation at each balance sheet date. We have classified and accounted for our marketable securities as available-for-sale. After considering our capital preservation objectives, as well as our liquidity requirements, we may sell securities prior to their stated maturities. We carry our available-for-sale securities at fair value, and report the unrealized gains and losses as a component of other comprehensive loss, except for unrealized losses determined to be other-than-temporary which are recorded as other expense, net. We determine any realized gains or losses on the sale of marketable securities on a specific identification method and record such gains and losses as a component of other expense, net. Interest earned on cash, cash equivalents, and marketable securities was approximately $1.3 million, $1.4 million, and $3.1 million during the years ended December 31, 2021, 2020 and 2019, respectively. These balances are recorded in interest income in the accompanying Consolidated Statement of Operations.
We evaluate the investments periodically for possible other-than-temporary impairment. A decline in fair value below the amortized costs of debt securities is considered an other-than-temporary impairment if we have the intent to sell the security or it is more likely than not that we will be required to sell the security before recovery of the entire amortized cost basis. In those instances, an impairment charge equal to the difference between the fair value and the amortized cost basis is recognized in other expense. Regardless of our intent or requirement to sell a debt security, impairment is considered other-than-temporary if we do not expect to recover the entire amortized cost basis.
Restricted Cash Restricted CashAs of December 31, 2021 and 2020, we had restricted cash balance of $0.9 million and $1.0 million, respectively, of which $0.9 million consists of letters of credit related to lease arrangements that are collateralized by restricted cash. These are included in other assets on our Consolidated Balance Sheets.
Accounts Receivable, net
Accounts Receivable, net
Accounts receivable are recorded and carried at the original invoiced amount less an allowance for any potential uncollectible amounts. We determine our trade accounts receivable allowances in line with the current expected credit losses model, based upon the assessment of various factors, such as: historical experience, credit quality of our customers, age of the accounts receivable balances, geographic related risks, economic conditions, and other factors that may affect a customer's ability to pay. Increases and decreases in the allowance for credit losses are included as a component of General and administrative expense in the Consolidated Statements of Operations. We do not have any off-balance sheet credit exposure related to our customers.
Incremental Costs to Obtain a Contract with a Customer and Revenue Recognition
Incremental Costs to Obtain a Contract with a Customer
We capitalize incremental costs associated with obtaining customer contracts, specifically certain commission payments. We pay commissions based on contract value upon signing a new arrangement with a customer and upon renewal and upgrades of existing contracts with customers only if the renewal and upgrades result in an incremental increase in contract value. To the extent that renewals and upgrades do not result in an increase in contract value, no additional commissions are paid. These costs are deferred on our Consolidated Balance Sheets and amortized over the expected period of benefit on a straight-line basis. We also incur commission expense on an ongoing basis based upon revenue recognized. In these cases, no incremental costs are deferred, as the commissions are earned and expensed in the same period for which the associated revenue is recognized. Based on the nature of our unique technology and services, and the rate at which we continually enhance and update our technology, the expected life of the customer arrangement is determined to be approximately five years. Commissions for new arrangements and renewals are both amortized over five years. Amortization is primarily included in sales and marketing
expense in the consolidated statements of operations. Deferred commission and incentive payments are included in other assets on our Consolidated Balance Sheets.
Revenue Recognition
Refer to Note 3, "Revenues" in the Notes to Consolidated Financial Statements for our Revenue Recognition policy.
Revenue
Revenue recognition
Revenue is recognized upon transfer of control of promised products or services to customers in an amount that reflects the consideration we expect to receive in exchange for those products or services. The processing and recording of certain revenue requires a manual process, which uses a complex set of procedures to generate complete and accurate data to record these revenue transactions. We enter into contracts that can include various combinations of products and services, each of which are distinct and accounted for as separate performance obligations. Revenue is recognized net of any taxes collected from customers, which are subsequently remitted to governmental authorities.
A performance obligation is a promise in a contract to transfer a distinct good or service to the customer and is the unit of account. Our contracts with customers often include promises to transfer multiple products and services to a customer. Determining whether products and services are considered distinct performance obligations that should be accounted for separately versus together may require significant judgment. For contracts with multiple performance obligations, we allocate the contract transaction price to each performance obligation using our estimate of the standalone selling price ("SSP") of each distinct good or service in the contract.
Judgment is required to determine the SSP for each distinct performance obligation. We analyze separate sales of our products and services as a basis for estimating the SSP of our products and services. We then use the SSP as the basis for allocating the transaction price when our product and services are sold together in a contract with multiple performance obligations. In instances where SSP is not directly observable, such as when we do not sell the product or service separately, we determine the SSP using information that may include market conditions and other observable inputs. We typically have more than one SSP for individual products and services due to the stratification of those products and services by customers and circumstances. In these instances, we may use information, such as geographic region and distribution channel, in determining the SSP.
The transaction price in a contract for usage-based services is typically equal to the minimum commit price in the contract less any discounts provided. The transaction price in a contract that does not contain usage-based services is equal to the total contract value. Because our typical contracts represent distinct services delivered over time with the same pattern of transfer to the customer, usage-based consideration primarily related to actual consumption over the minimum commit levels is allocated to the period to which it relates. The amount of consideration recognized for usage above the minimum commit price is limited to the amount we expect to be entitled to receive in exchange for providing services. We have elected to apply the practical expedient for estimating and disclosing the variable consideration when variable consideration is allocated entirely to a wholly unsatisfied performance obligation or to a wholly unsatisfied promise to transfer a distinct good or service that forms part of a single performance obligation from our remaining performance obligations under these contracts.
Performance obligations represent stand-ready obligations that are satisfied over time as the customer simultaneously receives and consumes the benefits provided by us. These obligations can be content delivery, security, subscription services, professional services, support, edge cloud platform services, and others. Accordingly, our revenue is recognized over time, consistent with the pattern of benefit provided to the customer over the term of the agreement.
At times, customers may request changes that either amend, replace, or cancel existing contracts. Judgment is required to determine whether the specific facts and circumstances within the contracts should be accounted for as a separate contract or as a modification.
In contracts where there are timing differences between when we transfer a promised good or service to the customer and when the customer pays for that good or service, we have determined our contracts do not include a significant financing component. We have also elected the practical expedient to not measure financing components for any contract where the timing difference is less than one year.
Concentrations of Credit Risk
Concentrations of Credit Risk
Financial instruments that potentially subject us to significant concentration of credit risk consist primarily of cash, cash equivalents, marketable securities, and accounts receivable. The primary focus of our investment strategy is to preserve capital and meet liquidity requirements. Our investment policy addresses the level of credit exposure by limiting the concentration in any one corporate issuer or sector and establishing a minimum allowable credit rating. To manage the risk exposure, we invest cash equivalents and marketable securities in a variety of fixed income securities, including government and investment-grade debt securities and money market funds. We place our cash primarily in checking and money market accounts with reputable financial institutions. Deposits held with these financial institutions may exceed the amount of insurance provided on such deposits, if any.
Concentrations of credit risk with respect to accounts receivable are primarily limited to certain customers from which we generate significant revenue. Our customer base consists of a large number of geographically dispersed customers diversified across several industries. To reduce this risk, we routinely assess the financial strength of our customers. Based on such assessments, we believe that our accounts receivable credit risk exposure is limited.
Fair Value of Financial Instruments
Fair Value of Financial Instruments
Our financial instruments consist of cash and cash equivalents, marketable securities, accounts receivable, accounts payable, accrued expenses and debt. Cash equivalents, accounts receivable, accounts payable, and accrued expenses are stated at their carrying value, which approximates fair value due to the short time until the expected receipt or payment date. We measure marketable securities at fair value, using quoted market prices or alternative pricing sources and models utilizing market observable inputs. The carrying amount of our debt approximates fair value as the stated interest rate approximates market rates currently available to us.
Property and Equipment
Property and Equipment
Property and equipment are stated at cost less accumulated depreciation and amortization. Depreciation and amortization are computed on a straight-line basis over the estimated useful lives of the assets. The estimated useful life of each asset category is as follows:
Computer and networking equipment
3-5 years
Leasehold improvements
Shorter of lease term or 5 years
Furniture and fixtures3 years
Office equipment3 years
Internal-use software3 years
We periodically review the estimated useful lives of property and equipment and any changes to the estimated useful lives are recorded prospectively from the date of the change.
Upon retirement or sale, the cost of the assets disposed of and the related accumulated depreciation are removed from the accounts, and any resulting gain or loss is included in other income (expense), net in the Consolidated Statements of Operations. Repairs and maintenance costs are expensed as incurred.
Internal-Use Software Development Costs
Internal-Use Software Development Costs
Labor and related costs associated with internal-use software during the application development stage are capitalized. Capitalization of costs begins when the preliminary project stage is completed, management has committed to funding the project, and it is probable that the project will be completed and the software will be used to perform the function intended. Capitalization ceases at the point when the project is fully tested and substantially complete and is ready for its intended purpose. The capitalized amounts are included in property and equipment, net on the Consolidated Balance Sheets. We amortize such costs over the estimated useful life of the software. We amortize completed internal-use software that is used on our network is amortized to cost of revenue over its estimated useful life. Costs incurred during the planning, training, and post-implementation stages of the software development life-cycle are expensed as incurred.
Business Combinations
Business Combinations
We account for our acquisitions using the acquisition method of accounting, which requires, among other things, allocation of the fair value of purchase consideration to the tangible and intangible assets acquired and liabilities assumed at their estimated fair values on the acquisition date. The excess of the fair value of purchase consideration over the values of these identifiable assets and liabilities is recorded as goodwill. Acquisition costs, such as legal and consulting fees, are expensed as incurred.
Accounting for business combinations requires us to make significant estimates and assumptions, especially at the acquisition date with respect to tangible and intangible assets acquired and liabilities assumed. We use our best estimates and assumptions to accurately assign fair value to the tangible and intangible assets acquired and liabilities assumed at the acquisition date as well as the useful lives of those acquired intangible assets. Examples of critical estimates in valuing certain of the intangible assets and goodwill we have acquired include but are not limited to future expected cash flows from acquired developed technologies; the acquired company’s trade name, existing customer relationships and backlog. These estimates are inherently uncertain and unpredictable, and if different estimates were used the purchase price for the acquisition could be
allocated to the acquired assets and liabilities differently from the allocation that we have made. Additionally, unanticipated events and circumstances may occur, which may affect the accuracy or validity of such assumptions, estimates or actual results.
The authoritative guidance allows a measurement period of up to one year from the date of acquisition to make adjustments to the preliminary allocation of the purchase price. As a result, during the measurement period we may record adjustments to the fair values of assets acquired and liabilities assumed, with the corresponding offset to goodwill to the extent that it identifies adjustments to the preliminary purchase price allocation. Upon conclusion of the measurement period or final determination of the values of the assets acquired and liabilities assumed, whichever comes first, any subsequent adjustments will be recorded to the Consolidated Statement of Operations.
Goodwill, Intangible Assets, and Other Long-Lived Assets
Goodwill, Intangible Assets and Other Long-Lived Assets

Goodwill is the amount by which the cost of acquired net assets in a business combination exceeds the fair value of the net identifiable assets on the date of purchase and is carried at its historical cost. We test goodwill for impairment on an annual basis or more frequently if events or changes in circumstances indicate that the asset might be impaired. We determined that we operate as one reporting unit and we perform our annual impairment test of goodwill as of October 31 and whenever events or circumstances indicate that the asset might be impaired. We did not record any impairment to goodwill during the years ended December 31, 2021, 2020, and 2019.

Intangible assets with determinable economic lives are carried at cost, less accumulated amortization. Amortization is computed over the estimated useful life of each asset on a straight-line basis. We determine the useful lives of identifiable intangible assets after considering the specific facts and circumstances related to each intangible asset. Factors we consider when determining useful lives include the contractual term of any agreement related to the asset, the historical performance of the asset, our long-term strategy for using the asset, any laws or other local regulations which could impact the useful life of the asset and other economic factors, including competition and specific market conditions. Intangible assets without determinable economic lives are carried at cost, not amortized, and reviewed for impairment at least annually.

The useful lives of our intangible assets are as follows:

Customer relationships8 years
Developed technology5 years
Trade names3 years
Backlog2 years
Domain names3 years
Internet protocol addresses10 years
IPR&DIndefinite
Long-lived assets, including property and equipment and intangible assets, are reviewed for impairment whenever events or changes in circumstances, such as service discontinuance, technological obsolescence, significant decreases in our market capitalization, facility closures, or work-force reductions indicate that the carrying amount of the long-lived asset or asset group may not be recoverable. When such events occur, we compare the carrying amount of the asset or asset group to the undiscounted expected future cash flows related to the asset or asset group. If this comparison indicates that an impairment is present, the amount of the impairment is calculated as the difference between the carrying amount and the fair value of the asset or asset group.
Leases
Leases

We lease office space and data centers ("Colocation leases") under non-cancelable operating leases with various expiration dates through 2027. We also lease server equipment under non-cancelable operating finance leases with various expiration dates through 2024. We determine if an arrangement contains a lease at inception.

Operating lease right-of-use assets and lease liabilities are recognized at the present value of the future lease payments at commencement date. The interest rate implicit in our operating leases is not readily determinable, and therefore an incremental borrowing rate is estimated to determine the present value of future payments. The estimated incremental borrowing rate factors in a hypothetical interest rate on a collateralized basis with similar terms, payments, and economic environments. Operating lease right-of-use assets also include any prepaid lease payments and lease incentives.

Certain of the operating lease agreements contain rent concession, rent escalation, and option to renew provisions. Rent concession and rent escalation provisions are considered in determining the single lease cost to be recorded over the lease term. Single lease cost is recognized on a straight-line basis over the lease term commencing on the date we have the right to use the leased property. The lease terms may include options to extend or terminate the lease. We generally use the base, non-cancelable, lease term when recognizing the lease assets and liabilities, unless it is reasonably certain that the option will be exercised. Our lease agreements may contain variable costs such as common area maintenance, operating expenses or other costs. Variable lease costs are expensed as incurred on the consolidated statements of operations. Our lease agreements generally do not contain any residual value guarantees or restrictive covenants.

We lease networking equipment from a third party, through equipment finance leases. These leases include a bargain purchase option, resulting in a full transfer of ownership at the completion of the lease term.

Operating leases are reflected in operating lease right-of-use assets, operating lease liabilities, and operating lease liabilities, non-current on our consolidated balance sheets. Finance leases are included in property and equipment, net, finance lease liabilities, and finance lease liabilities, non-current on our consolidated balance sheets.
Convertible Debt
Convertible Debt

We early adopted ASU 2020-06 as of January 1, 2021, which in effect, allows for the separation models for convertible debt that contain cash conversion features accounted for as a cash conversion or beneficial conversion features to be removed. We evaluated the terms of our debt in line with ASU 2020-06 and concluded that the instrument does not require separation and that there were no other derivatives that required separation. We have combined these features with the host contract and we account for our convertible debt as a single liability in long-term debt on our condensed consolidated balance sheet. The carrying amount of the liability is based on the gross proceeds, net of the unamortized transaction costs incurred related to the issuance of the convertible debt instrument. This difference represents a debt discount that is amortized to interest expense over the term of the convertible debt instrument using the effective interest rate method. We apply the if-converted method for calculation of diluted earnings per share for our convertible debt instrument.
Cost of Revenue
Cost of Revenue
Cost of revenue consists primarily of fees paid to network providers for bandwidth and to third-party network data centers for housing servers, also known as colocation costs. Cost of revenue also includes employee costs for network operation, build-out and support and services delivery, network storage costs, cost of managed services and software-as-a-service, depreciation of network equipment used to deliver our services, and amortization of network-related internal-use software. We enter into contracts for bandwidth with third-party network providers with terms of typically one year. These contracts generally commit us to pay minimum monthly fees plus additional fees for bandwidth usage above the committed level. We enter into contracts for colocation services with third-party providers with terms of typically three years.
Research and Development Costs
Research and Development Costs
Research and development costs consist of primarily payroll and related personnel costs for the design, development, deployment, testing, and enhancement of our edge cloud platform. Costs incurred in the development of our edge cloud platform are expensed as incurred, excluding those expenses which met the criteria for development of internal-use software.
Advertising Expense Advertising ExpenseWe recognize advertising expense as incurred.
Accounting for Stock-Based Compensation
Accounting for Stock-Based Compensation
We account for stock-based employee compensation plans under the fair value recognition and measurement provisions, which require all stock-based payments, including grants of stock options, restricted stock units ("RSUs"), restricted stock awards ("RSAs"), performance stock awards ("PSUs") and shares issued under our Employee Stock Purchase Plan ("ESPP") to be measured based on the grant-date fair value of the award and recognized as expense over the requisite service period, which is generally the vesting period of the respective award. We account for forfeitures as they occur.
The fair value of RSUs and RSAs granted to our employees and directors is based on the grant date fair value. The fair value of PSUs granted to our employees is based on the fair value determined when the performance metrics were set. The fair value of stock options granted to our employees and directors, and of the shares to be issued under our ESPP are based on the Black-Scholes option-pricing model. The determination of the fair value of a stock-based award is affected by the deemed fair value of the underlying stock price on the grant date, as well as assumptions regarding a number of other complex and subjective variables. These variables include the fair value of our common stock, the expected stock price volatility over the expected term of the options, stock option exercise and cancellation behaviors, risk-free interest rates, and expected dividends:
These assumptions and estimates are as follows:
Fair Value of Common Stock. We use the market closing price of our Class A common stock, as reported on the New York Stock Exchange, for the fair value. Prior to our IPO, our board of directors considered numerous objective and subjective factors to determine the fair value of our common stock at each meeting at which awards are approved. These factors included, but were not limited to (i) contemporaneous third-party valuations of Common Stock; (ii) the rights and preferences of Series Preferred relative to Common Stock; (iii) the lack of marketability of Common Stock; (iv) developments in the business; and (v) the likelihood of achieving a liquidity event, such as an IPO or sale of the Company, given prevailing market conditions.
Expected Term. The expected term represents the period that our stock-based awards are expected to be outstanding. The expected term assumptions were determined based on the vesting terms, exercise terms, and contractual lives of the options. The expected term was estimated using the simplified method allowed under Securities and Exchange Commission (SEC) guidance.
Volatility. The expected volatility is derived from an average of the historical stock volatilities of the common stock of the Company. In prior years the expected volatility calculation also included the historical stock volatilities of comparable companies as we did not have a long enough trading history of our common stock . Comparable companies consist of public companies in our industry, which are similar in size, stage of life cycle, and financial leverage.
Risk-free Interest Rate. The risk-free interest rate used in the Black-Scholes option pricing model is the implied yield available on U.S. Treasury zero-coupon issues with a remaining term equivalent to that of the options for each expected term.
Dividend Yield. The expected dividend assumption is based on our current expectations of our anticipated dividend policy. We have no history of paying any dividends and therefore used an expected dividend yield of zero.
Foreign Currency Translation
Foreign Currency Translation
The functional currency of our foreign subsidiaries is the U.S. dollar. The local currencies of our foreign subsidiaries are the Australian dollar, British pound, Euros, Japanese yen, and the Swedish Kroner or the Japanese yen as the functional currency. Our foreign subsidiaries remeasure monetary assets and liabilities at period-end exchange rates, while non-monetary items are remeasured at historical rates. Revenue and expenses are remeasured at the average rate in effect during the period. Resulting currency translation adjustments are recorded as a component of accumulated other comprehensive loss, a separate component of stockholders’ equity. Gains and losses on intercompany and other non-functional currency transactions are recorded in other income (expense), net.
Income Taxes
Income Taxes
We account for income taxes under the asset and liability method, which requires the recognition of deferred tax assets and liabilities for the expected future tax consequences of events that have been included in the financial statements. Under this method, we determine deferred tax assets and liabilities on the basis of the differences between the financial statement and tax bases of assets and liabilities by using enacted tax rates for the year in which the differences are expected to reverse. The effect of a change in tax rates on deferred tax assets and liabilities is recognized in income in the period that includes the enactment date.
We recognize deferred tax assets to the extent that it believes that these assets are more likely than not to be realized. In making such a determination, we consider all available positive and negative evidence, including future reversals of existing taxable temporary differences, projected future taxable income, tax-planning strategies, and results of recent operations. If we determine that it would be able to realize its deferred tax assets in the future in excess of their net recorded amount, we would make an adjustment to the deferred tax asset valuation allowance, which would reduce the provision for income taxes.
We record uncertain tax positions in accordance with ASC 740 on the basis of a two-step process in which (1) it determines whether it is more likely than not that the tax positions will be sustained on the basis of the technical merits of the position and (2) for those tax positions that meet the more-likely-than-not recognition threshold, we recognize the largest amount of tax benefit that is more than 50 percent likely to be realized upon ultimate settlement with the related tax authority.
We recognize interest and penalties related to unrecognized tax benefits on the income tax expense line in the accompanying Consolidated Statement of Operations and Comprehensive Loss. Accrued interest and penalties are included in accrued expenses on the Consolidated Balance Sheet.
Comprehensive Loss
Comprehensive Loss
Comprehensive loss consists of two components: net loss and other comprehensive income (loss). Other comprehensive income (loss) refers to gains and losses that are recorded as an element of stockholders' equity and are excluded from net loss. Our other comprehensive income (loss) is comprised of foreign currency translation adjustments and gain (loss) on investments in available-for-sale securities.
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. Under the two-class method, net income is attributed to common stockholders and participating securities based on their participation rights. 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. We do not consider the restricted stock awards and common stock issued upon early exercise of stock options as participating securities. Diluted earnings per share attributable to common stockholders adjusts basic earnings per share for the potentially dilutive impact of stock options, restricted stock units, restricted stock awards, shares issuable under our employee stock purchase place and performance stock awards. We also apply the if-converted method for calculation of diluted per share for our convertible debt instruments. As we have 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.
On October 12, 2020, the outstanding shares of our Class B common stock represented less than 10% of the aggregate number of shares of the then outstanding Class A common stock and Class B common stock. As a result, all outstanding shares of Class B common stock automatically converted into the same number of shares of Class A common stock on July 12, 2021, pursuant to the terms of our amended and restated certificate of incorporation (the "Certificate"). In accordance with the Certificate, the shares of Class B common stock that converted to Class A common stock were retired and will not be reissued by us.
Recently Adopted Accounting Pronouncements and Recently Issued Accounting Standards
Recently Adopted Accounting Pronouncements
In March 2020, the FASB issued ASU No. 2020-04, Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting. This ASU was issued to provide temporary optional guidance to ease the potential burden in accounting for reference rate reform. The guidance provides optional expedients and exceptions for applying generally accepted accounting principles to contract modifications and hedging relationships, subject to meeting certain criteria, that reference London Inter-Bank Offered Rate or another reference rate expected to be discontinued. The last expedient is a one-time election to sell or transfer debt securities classified as held to maturity. The expedients are in effect from March 12, 2020, through December 31, 2022. In January 2021, the FASB issued ASU No. 2021-01, Reference Rate Reform (Topic 848): Scope. The amendments in this Update are elective and apply to all entities that have derivative instruments that use an interest rate for margining, discounting, or contract price alignment that is modified as a result of reference rate reform. The amendments clarify certain optional expedients and exceptions in Topic 848 for contract modifications apply to derivatives that are affected by the discounting transition. The amendments are in effect from March 12, 2020, through December 31, 2022. This ASU does not have a material impact on the Company's consolidated financial statements. As of December 31, 2021, there was no impact to the Company’s Consolidated Financial Statements related to ASU 2020-04 and/or ASU 2021-01 .

On December 18, 2019, the FASB released ASU 2019-12 which affects general principles within Topic 740, Income Taxes. The amendments of ASU 2019-12 are meant to simplify and reduce the cost of accounting for income taxes. The FASB has stated that the ASU is being issued as part of its Simplification Initiative, which is meant to reduce complexity in accounting standards by improving certain areas of generally accepted accounting principles ("U.S. GAAP") without compromising information provided to users of financial statements. The standard is effective for public companies on the first interim period within the annual period beginning after December 15, 2020. We adopted this standard on January 1, 2021. The adoption of this standard did not have a material impact on our consolidated financial statements.

In August 2020, the FASB issued ASU No. 2020-06, Debt—Debt with Conversion and Other Options (Subtopic 470-20) and Derivatives and Hedging— Contracts in Entity’s Own Equity (Subtopic 815-40). The update removes separation models for convertible debt that contain cash conversion features accounted for as a cash conversion or beneficial conversion features. Under this ASU, these features will be combined with the host contract. ASU 2020-06 does not impact the accounting
treatment for conversion features that are accounted for as a derivative under Topic 815. The update also requires the application of the if-converted method to be used for convertible instruments and the effect of potential share settlement be included in the diluted earnings per share calculation when an instrument may be settled in cash or shares. The amendments in this update are effective for public business entities for fiscal years beginning after December 15, 2021, and interim periods within those fiscal years. The amendment is to be adopted through either a fully retrospective or modified retrospective method of transition, only at the beginning of an entity's fiscal year. Early adoption is permitted. We have elected to early adopt the standard as of January 1, 2021 using the modified retrospective method of transition. As of the date of adoption, we determined that we had no debt with conversion features or other derivative features that would require separation. As a result, we recorded our convertible debt as a single liability within long-term debt on our Condensed Consolidated Balance Sheet. We use the if-converted method for calculation of diluted earnings per share for our convertible debt instruments.

In February 2016, the FASB issued new guidance, Accounting Standard Update No. 2016-02, Leases (Topic 842) ("ASU 2016-02"), which establishes the principles to report transparent and economically neutral information about the assets and liabilities that arise from leases. Accordingly, this new standard introduces a lessee model that brings most operating leases on the balance sheet and also aligns certain of the underlying principles of the new lessor model with those in the new revenue recognition standard.
We adopted the standard on December 31, 2020, presenting the initial application of ASC 842 beginning on January 1, 2020 (i.e. adoption effective date), using the modified retrospective approach and has elected to use the optional transition method which allows us to apply the guidance of ASC 840, including disclosure requirements, in the comparative periods presented. In addition, we elected the package of practical expedients permitted under the transition guidance within the new
standard, which among other things, allowed us to carry forward the historical lease classification related to agreements entered prior to adoption. We have also elected the: (i) short-term lease recognition exemption for all leases that qualify, whereby we will not recognize right-of-use ("ROU" assets or lease liabilities for existing short-term leases of those assets in transition; (ii) practical expedient to not separate lease and non-lease components for all of our leases; and (iii) use hindsight in determining the lease term, assessing the likelihood that a lease purchase option will be exercised and in assessing the impairment of right-of-use assets.

Upon adoption of ASC 842, we recognized $54.7 million of ROU assets and $56.3 million of lease obligations related to operating leases, which represents the present value of the lease payments discounted using our incremental borrowing rate ("IBR"). The accounting for finance leases remained unchanged as compared to ASC 840. The cumulative impact of transition to retained earnings, recorded as of the adoption date, was not material. The cumulative effect adjustment recorded to accumulated deficit as of the adoption date was not material. The adoption of ASC 842 did not materially impact our consolidated statements of operations or cash flows.

In June 2016, FASB issued new guidance, ASU 2016-13, Financial Instruments-Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments, which introduces a new methodology for accounting for credit losses on financial instruments, including available-for-sale debt securities. The guidance establishes a new “expected loss model” that requires entities to estimate current expected credit losses on financial instruments by using all practical and relevant information. Any expected credit losses are to be reflected as allowances rather than reductions in the amortized cost of available-for-sale debt securities. We adopted the standard on December 31, 2020, presenting the initial application beginning on January 1, 2020 (i.e. adoption effective date). The adoption of this standard did not have a material impact on our consolidated financial statements.

In August 2018, the FASB issued Accounting Standards Update No. 2018-15, Intangibles—Goodwill and Other—Internal-Use Software (ASC 350-40): Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement ("ASU 2018-15"). This guidance provides that implementation costs be evaluated for capitalization using the same criteria as that used for internal-use software development costs, with amortization expense being recorded in the same income statement expense line as the hosted service costs and over the expected term of the hosting arrangement. We adopted the standard on December 31, 2020, presenting the initial application beginning on January 1, 2020 (i.e. adoption effective date). The adoption of this standard did not have a material impact on our consolidated financial statements.

Recently Issued Accounting Standards
In October 2021, the FASB issued ASU No. 2021-08, Accounting for Contract Assets and Contract Liabilities from Contracts with Customers (Topic 805). This ASU requires an acquirer in a business combination to recognize and measure contract assets and contract liabilities (deferred revenue) from acquired contracts using the revenue recognition guidance in Topic 606. At the acquisition date, the acquirer applies the revenue model as if it had originated the acquired contracts. The ASU is effective for annual periods beginning after December 15, 2022, including interim periods within those fiscal years. Adoption of the ASU should be applied prospectively. Early adoption is also permitted, including adoption in an interim period. If early adopted, the amendments are applied retrospectively to all business combinations for which the acquisition date occurred during the fiscal year of adoption. This ASU is currently not expected to have a material impact on our consolidated financial statements.
v3.22.0.1
Summary of Significant Accounting Policies (Tables)
12 Months Ended
Dec. 31, 2021
Accounting Policies [Abstract]  
Schedule of Property and Equipment, Useful Lives The estimated useful life of each asset category is as follows:
Computer and networking equipment
3-5 years
Leasehold improvements
Shorter of lease term or 5 years
Furniture and fixtures3 years
Office equipment3 years
Internal-use software3 years
Property and equipment, net consisted of the following:
As of December 31,
20212020
(in thousands)
Computer and networking equipment$207,575 $129,998 
Leasehold improvements4,631 3,817 
Furniture and fixtures1,606 1,092 
Office equipment654 659 
Internal-use software40,345 22,066 
Property and equipment, gross254,811 157,632 
Accumulated depreciation and amortization(87,850)(61,653)
Property and equipment, net$166,961 $95,979 
Schedule of Intangible Assets
The useful lives of our intangible assets are as follows:

Customer relationships8 years
Developed technology5 years
Trade names3 years
Backlog2 years
Domain names3 years
Internet protocol addresses10 years
IPR&DIndefinite
As of December 31, 2021 and December 31, 2020, our intangible assets consisted of the following:
As of December 31, 2021As of December 31, 2020
Gross carrying valueAccumulated amortizationNet carrying valueGross carrying valueAccumulated amortizationNet carrying value
(in thousands)
Intangible assets:
Customer relationships$69,100 $(10,797)$58,303 $69,100 $(2,053)$67,047 
Developed technology49,500 (12,375)37,125 49,500 (2,475)47,025 
Trade names3,300 (1,375)1,925 3,300 (275)3,025 
Internet protocol addresses4,984 (973)4,011 2,891 (578)2,313 
Backlog2,200 (1,375)825 2,200 (275)1,925 
In-process research and development ("IPR&D")368 — 368 368 — 368 
Domain name
39 — 39 39 — 39 
Total intangible assets$129,491 $(26,895)$102,596 $127,398 $(5,656)$121,742 
v3.22.0.1
Revenue (Tables)
12 Months Ended
Dec. 31, 2021
Revenue from Contract with Customer [Abstract]  
Revenue by Geographic Area
The following table presents our net revenue by geographic region:
Year ended December 31,
202120202019
(in thousands)
United States$260,399 $196,538 $142,842 
Asia Pacific39,496 44,060 18,806 
Europe35,177 32,768 27,595 
All other countries19,258 17,508 11,219 
Total revenue$354,330 $290,874 $200,462 
Revenue by Customer Type The following table presents our net revenue for enterprise and non-enterprise customers:
Year ended December 31,
202120202019
(in thousands)
Enterprise customers$313,360 $256,483 $174,926 
Non-enterprise customers40,970 34,391 25,536 
Total revenue$354,330 $290,874 $200,462 
Contract Assets and Liabilities
The following presents our contract assets and contract liabilities as of and for the years ended December 31, 2021 and 2020:
As of December 31, 2021As of December 31, 2020
(in thousands)
Contract assets$89 $387 
Contract liabilities$28,907 $18,020 

The following table presents the revenue recognized during the years ended December 31, 2021 and 2020 from amounts included in the contract liability at the beginning of the period:
Year ended December 31, 2021Year ended December 31, 2020
(in thousands)
Revenue recognized in the period from:
Amounts included in contract liability at the beginning of the period$15,948 $310 
Costs to Obtain Contracts
As of December 31, 2021 and December 31, 2020, our costs to obtain contracts were as follows:
As of December 31, 2021As of December 31, 2020
(in thousands)
Deferred contract costs, net$23,830 $19,332 
v3.22.0.1
Investments and Fair Value Measurements (Tables)
12 Months Ended
Dec. 31, 2021
Fair Value Disclosures [Abstract]  
Schedule of Cash, Cash Equivalents, and Marketable Securities
Our total cash, cash equivalents and marketable securities consisted of the following:
As of December 31,
20212020
(in thousands)
Cash and cash equivalents:
Cash$134,774 $21,273 
Money market funds31,294 36,629 
Commercial paper— 4,998 
Total cash and cash equivalents166,068 $62,900 
Marketable securities:
U.S. Treasury securities$184,946 $75,524 
Corporate notes and bonds11,327 $14,314 
Commercial paper124,089 41,445 
Asset-backed securities21,576 — 
Municipal securities2,250 — 
Foreign government and supranational securities17,607 — 
Total short-term marketable securities$361,795 $131,283 
U.S. Treasury securities239,528 20,448 
Corporate notes and bonds197,298 — 
Asset-backed securities77,142 — 
Municipal securities2,312 — 
Foreign government and supranational securities12,631 — 
Total long-term marketable securities$528,911 $20,448 
Total marketable securities$890,706 $151,731 
Schedule of Available-For-Sale Investments
The following table summarizes adjusted cost, gross unrealized gains and losses, and fair value related to available-for-sale securities classified as marketable securities on the accompanying Consolidated Balance Sheets as of December 31, 2021 and December 31, 2020:
As of December 31, 2021
Amortized
Cost
Gross
Unrealized
Gain
Gross
Unrealized
Loss
Fair
Value
(in thousands)
U.S. Treasury securities$425,560 $$(1,086)$424,475 
Corporate notes and bonds209,550 — (925)208,625 
Commercial paper124,098 — (9)124,089 
Asset-backed securities98,857 — (140)98,717 
Municipal securities4,577 — (15)4,562 
Foreign government and supranational securities30,306 — (68)30,238 
Total available-for-sale investments$892,948 $$(2,243)$890,706 
As of December 31, 2020
Amortized
Cost
Gross Unrealized GainGross
Unrealized Loss
Fair
Value
(in thousands)
U.S. Treasury securities$95,884 $93 $(5)$95,972 
Commercial paper41,445 — — 41,445 
Corporate notes and bonds14,297 17 — 14,314 
Total available-for-sale investments$151,626 $110 $(5)$151,731 
Financial Assets and Liabilities Measured and Recorded at Fair Value on a Recurring Basis Financial assets and liabilities measured and recorded at fair value on a recurring basis consisted of the following types of instruments:
As of December 31, 2021
Level 1Level 2Level 3Total
(in thousands)
Cash equivalents:
Money market funds$31,294 $— $— $31,294 
Total cash equivalents31,294 — — 31,294 
Marketable securities:
U.S. Treasury securities— 424,475 — 424,475 
Corporate notes and bonds— 208,625 — 208,625 
Commercial paper— 124,089 — 124,089 
Asset-backed securities— 98,717 — 98,717 
Municipal securities— 4,562 — 4,562 
Foreign government and supranational securities— 30,238 — 30,238 
Total marketable securities 890,706  890,706 
Restricted cash:
Money market funds893 — — 893 
Total restricted cash893 — — 893 
Total financial assets$32,187 $890,706 $— $922,893 
As of December 31, 2021, our remaining restricted cash balance was $0.9 million, consisting of letters of credit related to lease arrangements that are collateralized by restricted cash. These are included in other assets on the Consolidated Balance Sheets.
As of December 31, 2020
Level 1Level 2Level 3Total
(in thousands)
Cash equivalents:
Money market funds$36,629 $— $— $36,629 
U.S. Treasury securities— 4,998 — 4,998 
Total cash equivalents36,629 4,998 — 41,627 
Marketable securities:
U.S. Treasury securities— 95,972 — 95,972 
Commercial paper— 41,445 — 41,445 
Corporate notes and bonds— 14,314 — 14,314 
Total marketable securities— 151,731 — 151,731 
Restricted cash:
Money market funds980 — — 980 
Total restricted cash980 — — 980 
Total financial assets$37,609 $156,729 $— $194,338 
v3.22.0.1
Business Combinations (Tables)
12 Months Ended
Dec. 31, 2021
Business Combination and Asset Acquisition [Abstract]  
Schedule of Recognized Identified Assets Acquired and Liabilities Assumed
The purchase consideration was allocated to the tangible and intangible assets and liabilities acquired as of the acquisition date, with the excess recorded to goodwill as shown below.

Amount
Assets acquired
Cash and cash equivalents$21,501 
Other current assets6,419 
Intangible assets, net124,100 
Other non-current assets8,094 
Total assets acquired$160,114 
Liabilities assumed
Current liabilities(14,755)
Non-current liabilities(21,170)
Total liabilities assumed$(35,925)
Net assets acquired124,189 
Total acquisition consideration759,393 
Goodwill Transferred$635,204 
Schedule Of Identifiable Finite-Lived Intangible Assets
Identifiable finite-lived intangible assets were comprised of the following (in thousands):
TotalEstimated useful life (in years)
Customer relationships$69,100 8.0
Developed Technology$49,500 5.0
Trade name$3,300 3.0
Backlog$2,200 2.0
Total intangible assets acquired$124,100 
Schedule of Pro Forma Information
The unaudited pro forma financial information was as follows (in thousands):

(Unaudited)
As of December 31,
20202019
(in thousands)
Revenue$313,665 $218,529 
Net loss$(159,248)$(178,124)
v3.22.0.1
Balance Sheet Information (Tables)
12 Months Ended
Dec. 31, 2021
Balance Sheet Related Disclosures [Abstract]  
Schedule of Allowance for Doubtful Accounts
The activity in the accounts receivable reserves is as follows:
As of December 31,
20212020
(in thousands)
Beginning balance$3,248 $1,816 
Additions to the reserves196 1,719 
Write-offs and adjustments(133)(287)
Ending balance$3,311 $3,248 
Schedule of Property and Equipment, Net The estimated useful life of each asset category is as follows:
Computer and networking equipment
3-5 years
Leasehold improvements
Shorter of lease term or 5 years
Furniture and fixtures3 years
Office equipment3 years
Internal-use software3 years
Property and equipment, net consisted of the following:
As of December 31,
20212020
(in thousands)
Computer and networking equipment$207,575 $129,998 
Leasehold improvements4,631 3,817 
Furniture and fixtures1,606 1,092 
Office equipment654 659 
Internal-use software40,345 22,066 
Property and equipment, gross254,811 157,632 
Accumulated depreciation and amortization(87,850)(61,653)
Property and equipment, net$166,961 $95,979 
Schedule of Accrued Expenses Accrued expenses consisted of the following:
As of December 31,
20212020
(in thousands)
Accrued compensation and related benefits$13,543 $17,840 
Accrued colocation and bandwidth costs10,205 3,644 
Sales and use tax payable7,498 6,274 
Accrued acquisition-related costs— 2,208 
Other accrued liabilities4,866 4,368 
Total accrued expenses$36,112 $34,334 
Schedule of Other Current Liabilities
Other current liabilities consisted of the following:
As of December 31,
20212020
(in thousands)
Deferred revenue$26,421 $15,916 
Accrued computer and networking equipment18,081 3,126 
Liability for early-exercised stock options (see Note 11)— 255 
Other current liabilities605 380 
Total other current liabilities$45,107 $19,677 
Schedule of Accumulated Other Comprehensive Loss
The following table summarizes the changes in accumulated other comprehensive loss, which is reported as a component of stockholders’ equity:
Foreign Currency TranslationAvailable-for-sale investmentsAccumulated Other Comprehensive Income (Loss)
(in thousands)
Balance at January 1, 2019$(12)$(24)$(36)
Other comprehensive income (loss)111 121 232 
Balance at December 31, 201999 97 196 
Other comprehensive income (loss)(135)(55)(190)
Balance at December 31, 2020(36)42 
Other comprehensive income (loss)(286)(2,347)(2,633)
Balance at December 31, 2021$(322)$(2,305)$(2,627)
v3.22.0.1
Leases (Tables)
12 Months Ended
Dec. 31, 2021
Leases [Abstract]  
Schedule of Lease Costs & Other Information The components of lease cost were as follows:
As of December 31,
20212020
(in thousands)
Operating lease cost:
Operating lease cost$26,716 $21,765 
Variable lease cost6820 4363 
Total operating lease costs$33,536 $26,128 
Finance lease cost:
Amortization of assets under finance lease$6,834 $2,858 
Interest$1754 $688 
Total finance lease cost$8,588 $3,546 

Other information related to leases was as follows:
As of December 31,
20212020
(in thousands)
Supplemental Cash Flow Information
Cash paid for amounts included in the measurement of lease liabilities:
Payments for operating leases included in cash from operating activities$26,447 $18,264 
Payments for finance leases included in cash from financing activities$13,568 $5,773 
Payments for finance leases included in cash from operating activities$1,754 $688 
Assets obtained in exchange for lease obligations:
Operating leases $32,458 $23,827 
Finance leases$31,529 $22,541 

As of December 31,
20212020
(in thousands)
Weighted Average Remaining Lease term (in years)
Operating leases4.414.44
Finance leases2.232.51
Weighted Average Discount Rate
Operating leases5.20 %5.68 %
Finance leases4.86 %5.12 %
Schedule of Operating Lease Maturities Future minimum lease payments under non-cancellable leases as of December 31, 2021 were as follows (in thousands):
Year ending December 31,Operating LeasesFinance Leases
2022$19,389 $22,700 
202318,297 17,216 
202415,014 5,855 
202513,391 — 
202613,174 — 
Thereafter5,813 — 
Total future minimum lease payments$85,078 $45,771 
Less: imputed interest(9,693)(2,353)
Total liability$75,385 $43,418 
Schedule of Finance Lease Maturity Future minimum lease payments under non-cancellable leases as of December 31, 2021 were as follows (in thousands):
Year ending December 31,Operating LeasesFinance Leases
2022$19,389 $22,700 
202318,297 17,216 
202415,014 5,855 
202513,391 — 
202613,174 — 
Thereafter5,813 — 
Total future minimum lease payments$85,078 $45,771 
Less: imputed interest(9,693)(2,353)
Total liability$75,385 $43,418 
v3.22.0.1
Goodwill and Intangible Assets (Tables)
12 Months Ended
Dec. 31, 2021
Goodwill and Intangible Assets Disclosure [Abstract]  
Changes in the Carrying Amount of Goodwill
The changes in the carrying amount of goodwill for the years ended December 31, 2021 and 2020 are as follows:
Year ended December 31,
20212020
(in thousands)
Balance, beginning of period$635,590 $372 
Goodwill acquired1,169 635,204 
Foreign currency translation and other adjustments46 14 
Balance, end of period$636,805 $635,590 
Schedule of Intangible Assets
The useful lives of our intangible assets are as follows:

Customer relationships8 years
Developed technology5 years
Trade names3 years
Backlog2 years
Domain names3 years
Internet protocol addresses10 years
IPR&DIndefinite
As of December 31, 2021 and December 31, 2020, our intangible assets consisted of the following:
As of December 31, 2021As of December 31, 2020
Gross carrying valueAccumulated amortizationNet carrying valueGross carrying valueAccumulated amortizationNet carrying value
(in thousands)
Intangible assets:
Customer relationships$69,100 $(10,797)$58,303 $69,100 $(2,053)$67,047 
Developed technology49,500 (12,375)37,125 49,500 (2,475)47,025 
Trade names3,300 (1,375)1,925 3,300 (275)3,025 
Internet protocol addresses4,984 (973)4,011 2,891 (578)2,313 
Backlog2,200 (1,375)825 2,200 (275)1,925 
In-process research and development ("IPR&D")368 — 368 368 — 368 
Domain name
39 — 39 39 — 39 
Total intangible assets$129,491 $(26,895)$102,596 $127,398 $(5,656)$121,742 
Expected Amortization Expense of Intangible Assets
The estimated future amortization expense intangible assets as of December 31, 2021 is as follows:
As of December 31, 2021
(in thousands)
2022$20,974 
202319,874 
202419,040 
202516,561 
20269,065 
Thereafter16,714 
Total$102,228 
v3.22.0.1
Debt Instruments (Tables)
12 Months Ended
Dec. 31, 2021
Debt Disclosure [Abstract]  
Carrying Values of Debt Agreements
The following table reflects the carrying values of the debt agreements as of December 31, 2021:

As of December 31,
2021
(in thousands)
Liability component:
Convertible Senior notes (effective interest rate of 0.39%)
$948,750 
Less: unamortized debt issuance costs(15,545)
Less: current portion of long-term debt— 
Long-term debt, less current portion
$933,205 
v3.22.0.1
Commitments and Contingencies (Tables)
12 Months Ended
Dec. 31, 2021
Commitments and Contingencies Disclosure [Abstract]  
Purchase Commitments
Aside from our finance and operating lease commitments, including our colocation operating commitments, which have been disclosed in Note 7—Leases, the minimum future purchase commitments relating to our other cost of revenue arrangements and SaaS commitments as of December 31, 2021 were as follows:
Cost of Revenue CommitmentsSaaS AgreementsTotal Purchase Commitments
(in thousands)
2022$34,075 $14,981 $49,056 
20235,554 14,593 20,147 
20242,920 849 3,769 
2025160 169 
2026160 — 160 
Thereafter82 — 82 
Total$42,951 $30,432 $73,383 
v3.22.0.1
Stockholders' Equity (Tables)
12 Months Ended
Dec. 31, 2021
Stockholders' Equity Note [Abstract]  
Schedule of Stock Option Activity
The following table summarizes stock option activity during the years ended December 31, 2021, 2020 and 2019:
Number of SharesWeighted-Average 
Exercise Price
Weighted-Average
Remaining
Contractual Term
Aggregate
Intrinsic Value
(in thousands)(in years)(in thousands)
Outstanding at January 1, 201912,210 $2.96 7.8$64,590 
Granted2,516 10.87 
Exercised(2,650)2.45 
Cancelled/forfeited(807)5.10 
Outstanding at December 31, 201911,269 4.68 7.3$173,471 
Granted252 12.96 
Exercised(4,360)3.46 
Cancelled/forfeited(198)8.79 
Outstanding at December 31, 20206,963 5.63 6.7$569,094 
Granted— — 
Exercised(2,188)5.77 
Cancelled/forfeited(406)11.10 
Outstanding at December 31, 20214,369 $5.07 5.1$132,721 
Vested and exercisable at December 31, 20213,579 $4.10 4.7$112,280 
Unvested and exercisable at December 31, 2021134 $6.70 6.9$3,834 
Employee Stock Purchase Plan, Valuation Assumptions We estimated the fair value of
stock option awards during the years ended December 31, 2021, 2020, and 2019 on the date of the grant using the Black-Scholes option pricing model with the following weighted-average assumptions:
Year ended December 31,
202120202019
Fair value of common stock$—
$85.26 - $96.43
$8.24 - $22.70
Expected term (in years)
5.38 - 9.75
6.02
Risk-free interest rate—%
0.31% - 0.67%
1.55% - 2.5%
Expected volatility—%
43.92% - 46.49%
39.1% - 42.7%
Dividend yield—%—%—%
We estimated the fair value of shares granted under the ESPP on the first date of the offering period using the Black-Scholes option pricing model with the following assumptions:
Year ended December 31,
202120202019
Fair value of common stock
$41.24 - $44.87
$14.09 - $24.07
$6.02 - $6.92
Expected term (in years)
0.49 - 0.50
0.49-0.50
0.47-0.50
Risk-free interest rate
0.02% - 0.07%
0.10% - 0.14%
1.59% - 2.35%
Expected volatility
47% - 58%
50% - 60%
36% - 43%
Dividend yield— %— %—%
Schedule of Unvested Exercised Options
The activity of non-vested shares as a result of early exercise of options granted to employees and non-employees, is as follows:
Year ended December 31,
202120202019
(in thousands)
Beginning balance91 200 245 
Early exercise of options— — 117 
Vested(91)(109)(162)
Repurchased— — — 
Ending balance— 91 200 
Schedule of Restricted Stock Units and Restricted Stock Awards
The following table summarizes RSU activity during the years ended December 31, 2021, 2020and 2019:
Number of SharesWeighted-Average Grant Date Fair Value Per Share
(in thousands)
Nonvested RSUs as of January 1, 2019— — 
Granted1,644 20.07 
Vested— — 
Cancelled/forfeited(3)
Nonvested RSUs as of December 31, 20191,641 20.07 
Granted4,398 31.22 
Vested(1,377)22.92 
Cancelled/forfeited(142)22.58 
Nonvested RSUs as of December 31, 20204,520 30.01 
Granted3,584 54.92 
Vested(1,924)35.18 
Cancelled/forfeited(895)42.91 
Nonvested RSUs as of December 31, 20215,285 $42.80 
The activity of revest shares granted to these employees is as follows:
Number of SharesWeighted-Average Grant Date Fair Value Per Share
(in thousands)
Nonvested revest shares as of December 31, 2019— $— 
Restricted896 $97.84 
Vested(112)$97.84 
Cancelled/forfeited— 
Nonvested revest shares as of December 31, 2020784 $97.84 
Restricted— $— 
Vested(448)$97.84 
Cancelled/forfeited— 
Nonvested revest shares as of December 31, 2021336 $97.84 
The activity of PSUs granted to employees is as follows:
Number of SharesWeighted-Average Grant Date Fair Value Per Share
(in thousands)
Nonvested PSUs as of December 31, 2019— $— 
Granted88 $65.11 
Vested— — 
Cancelled/forfeited— — 
Nonvested PSUs as of December 31, 202088 $65.11 
Granted71 $102.06 
Vested(76)$65.11 
Cancelled/forfeited(12)$65.11 
Nonvested PSUs as of December 31, 202171 $102.06 
Schedule of Stock-Based Compensation Expense
The following table summarizes the components of total stock-based compensation expense included in the accompanying Consolidated Statements of Operations:
Year ended December 31,
202120202019
(in thousands)
Stock-based compensation expense by caption:
Cost of revenue$7,227 $3,889 $1,410 
Research and development47,019 17,112 2,920 
Sales and marketing31,159 17,028 3,497 
General and administrative55,083 26,404 4,318 
Total$140,488 $64,433 $12,145 
v3.22.0.1
Net Loss Per Share Attributable to Common Stockholders (Tables)
12 Months Ended
Dec. 31, 2021
Earnings Per Share [Abstract]  
Schedule of Earnings Per Share, Basic and Diluted The shares issued in the IPO, the shares issued pursuant to the exercise by the underwriters of an option to purchase additional shares, and the shares of Class A and Class B common stock issued upon conversion of the outstanding shares of convertible preferred stock in the IPO are included in the table below weighted for the period outstanding:
Year ended December 31,
202120202019
Class A(1), (3)
Class B(2)
Class A (1)
Class B(2)
Class A
Class B(2)
(in thousands, except per share amounts)
Net loss attributable to common stockholders$(212,120)$(10,577)$(78,114)$(17,818)$(12,084)$(39,466)
Weighted-average shares used in computing net loss per share attributable to common stockholders, basic and diluted110,541 5,512 84,319 19,233 16,022 52,328 
Net loss per share attributable to common stockholders, basic and diluted$(1.92)$(1.92)$(0.93)$(0.93)(0.75)$(0.75)
__________

(1)Class A common stock includes the issuance of 12.9 million shares of Class A common stock issued by us in connection with our IPO and the shares issued in connection with our follow-on offering on May 26, 2020. It also includes shares issued upon the exercise of options and vesting of RSUs granted subsequent to our IPO, shares issued as part of our prior acquisitions, and converted Common B shares.
(2)Class B common stock includes, for all periods presented, common stock issued prior to the IPO and the conversion of all of our preferred stock into an aggregate of 53.6 million shares of our Class B common stock upon closing of the IPO. Some of these shares were previously converted into shares of Class A common stock. On July 12, 2021, all shares of Class B common stock were converted into shares of Class A common stock.
Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share The potential shares of common stock that were excluded from the computation of diluted net loss per share attributable to common stockholders for the period presented because including them would have been antidilutive are as follows:
Number of Shares
Year ended December 31,
202120202019
(in thousands)
Stock options4,369 6,963 11,269 
RSUs5,285 4,520 1,641 
Early exercised stock options— 91 200 
Convertible common stock warrants— — 183 
RSAs336 784 — 
Shares issuable pursuant to the ESPP51 25 247 
PSUs71 88 
Convertible senior notes (if-converted)9,229 — — 
Total19,341 12,471 13,540 
v3.22.0.1
Income Taxes (Tables)
12 Months Ended
Dec. 31, 2021
Income Tax Disclosure [Abstract]  
Schedule of Loss Before Income Taxes
Loss before income taxes includes the following components:
Year ended December 31,
202120202019
(in thousands)
United States$(224,159)$(86,842)$(30,970)
Foreign1,531 (20,570)(20,088)
Loss before income taxes$(222,628)$(107,412)$(51,058)
Schedule of Income Tax Expense (Benefit)
The income tax expense (benefit) consists of the following:
Year ended December 31,
202120202019
(in thousands)
Current tax provision (benefit):
Federal
$— $— $— 
State
— 420 106 
Foreign
322 1,050 386 
Deferred tax provision (benefit):
Federal
(253)(10,631)— 
State
— (2,319)— 
Foreign
— — — 
Total tax expense (benefit)$69 $(11,480)$492 
Schedule of Effective Tax Rate Reconciliation Reconciliation between our effective tax rate on income from continuing operations and the U.S. federal statutory rate is as follows:
Year ended December 31,
202120202019
Provision at federal statutory tax rate21 %21 %21 %
State taxes, net of federal tax impact— — 
Change in valuation allowance(30)(35)(12)
Foreign tax rate differential— (5)(8)
Acquisition related expenses— (2)— 
Stock-based compensation30 — 
Research and development credits— — 
Restructuring— — 
Other— — (2)
Effective tax rate— %11 %(1)%
Schedule of Deferred Tax Assets and Liabilities
Our deferred tax assets and liabilities were as follows:
Year ended December 31,
20212020
(in thousands)
Reserves and accruals$3,149 $941 
Lease liability20,415 17,481 
Stock-based compensation6,000 3,969 
Net operating losses162,260 109,281 
Payroll taxes454 — 
Depreciation of property, plant and equipment1,958 576 
Research and development credits16,636 — 
Deferred revenue7,821 — 
Deferred tax assets218,693 132,248 
Deferred Revenue— (673)
Right-of-use Asset(19,073)(16,160)
Amortization of intangible assets(21,935)(31,188)
State Taxes(8,969)(4,319)
Other(4,724)(133)
Deferred tax liabilities$(54,701)$(52,473)
Valuation allowance(163,992)(80,028)
Net deferred tax (liabilities) assets$— $(253)
Schedule of Unrecognized Tax Benefits
A reconciliation of the Company’s unrecognized tax benefits is as follows (in thousands):
Year ended December 31,
20212020
Balance at beginning of year
$3,186 $— 
Increases related to prior year tax positions
3,113 2,328 
Decreases related to prior year tax positions
(31)— 
Increases related to current year tax positions
1,540 858 
Balance at end of year
$7,808 $3,186 
v3.22.0.1
Information About Revenue and Geographic Areas (Tables)
12 Months Ended
Dec. 31, 2021
Segment Reporting [Abstract]  
Schedule of Long-Lived Assets by Geographic Region
The following table presents long-lived assets by geographic region:
As of December 31,As of December 31,
20212020
(in thousands)
United States$122,375 $65,054 
All other countries44,586 30,925 
Total long-lived assets$166,961 $95,979 
v3.22.0.1
Nature of Business (Details)
$ / shares in Units, $ in Thousands
12 Months Ended
Oct. 12, 2021
May 26, 2020
USD ($)
$ / shares
shares
May 21, 2019
USD ($)
$ / shares
shares
Dec. 31, 2021
USD ($)
operatingMarket
shares
Dec. 31, 2020
USD ($)
shares
Dec. 31, 2019
USD ($)
shares
May 20, 2019
stockSeries
$ / shares
Class of Stock [Line Items]              
Operating markets | operatingMarket       71      
Proceeds from initial public offering, net of underwriting fees | $       $ 0 $ 0 $ 192,510  
Number of convertible preferred stock series | stockSeries             7
Preferred stock, par value (in dollars per share) | $ / shares             $ 0.00002
Preferred stock, shares issued (in shares)       0 0    
Preferred stock, shares outstanding (in shares)       0 0    
Proceeds from follow-on public offering, net of underwriting fees | $       $ 0 $ 274,896 $ 0  
Common Class A              
Class of Stock [Line Items]              
Shares issued (in shares)   6,900,000          
Common stock price per share (in dollars per share) | $ / shares   $ 41.50          
Proceeds from follow-on public offering, net of underwriting fees | $   $ 274,900          
Common Class B              
Class of Stock [Line Items]              
Number of shares converted (in shares)     53,600,000   144,635    
Convertible securities, conversion ratio     1        
Automatic conversion provision, percentage of Class A Common Stock 10.00%     10.00%      
IPO | Common Class A              
Class of Stock [Line Items]              
Shares issued (in shares)     12,937,500        
Common stock price per share (in dollars per share) | $ / shares     $ 16.00        
Proceeds from initial public offering, net of underwriting fees | $     $ 192,500        
Over-Allotment Option | Common Class A              
Class of Stock [Line Items]              
Shares issued (in shares)   900,000 1,687,500        
Proceeds from initial public offering, net of underwriting fees | $     $ 25,100        
Common Stock | Common Class A              
Class of Stock [Line Items]              
Shares issued (in shares)         6,900,000 12,937,500  
Common Stock | Common Class B              
Class of Stock [Line Items]              
Number of shares converted (in shares)     53,630,213        
v3.22.0.1
Summary of Significant Accounting Policies - Cash, Cash Equivalents and Marketable Securities and Restricted Cash (Details) - USD ($)
$ in Thousands
12 Months Ended
Dec. 31, 2021
Dec. 31, 2020
Dec. 31, 2019
Cash and Cash Equivalents [Line Items]      
Interest income $ 1,282 $ 1,628 $ 3,287
Restricted cash 900 1,000  
Restricted cash included in other assets 893 893 0
Cash and Cash Equivalents      
Cash and Cash Equivalents [Line Items]      
Interest income $ 1,300 $ 1,400 $ 3,100
v3.22.0.1
Summary of Significant Accounting Policies - Incremental Costs to Obtain a Contract With Customer (Details)
Dec. 31, 2021
Customer arrangement  
Capitalized Contract Cost [Line Items]  
Capitalized contract cost, useful life 5 years
New arrangements and renewals  
Capitalized Contract Cost [Line Items]  
Capitalized contract cost, useful life 5 years
v3.22.0.1
Summary of Significant Accounting Policies - Concentrations of Credit Risk (Details)
12 Months Ended
Dec. 31, 2020
Customer Concentration Risk | Accounts Receivable | Customer One  
Concentration Risk [Line Items]  
Concentration risk, percentage 10.00%
v3.22.0.1
Summary of Significant Accounting Policies - Property and Equipment (Details)
12 Months Ended
Dec. 31, 2021
Computer and networking equipment | Minimum  
Property, Plant and Equipment [Line Items]  
Property and equipment, useful life 3 years
Computer and networking equipment | Maximum  
Property, Plant and Equipment [Line Items]  
Property and equipment, useful life 5 years
Leasehold improvements | Maximum  
Property, Plant and Equipment [Line Items]  
Property and equipment, useful life 5 years
Furniture and fixtures  
Property, Plant and Equipment [Line Items]  
Property and equipment, useful life 3 years
Office equipment  
Property, Plant and Equipment [Line Items]  
Property and equipment, useful life 3 years
Internal-use software  
Property, Plant and Equipment [Line Items]  
Property and equipment, useful life 3 years
v3.22.0.1
Summary of Significant Accounting Policies - Intangible Assets (Details)
12 Months Ended
Dec. 31, 2021
Customer relationships  
Finite-Lived Intangible Assets [Line Items]  
Useful life 8 years
Developed Technology  
Finite-Lived Intangible Assets [Line Items]  
Useful life 5 years
Trade name  
Finite-Lived Intangible Assets [Line Items]  
Useful life 3 years
Backlog  
Finite-Lived Intangible Assets [Line Items]  
Useful life 2 years
Domain name  
Finite-Lived Intangible Assets [Line Items]  
Useful life 3 years
Internet protocol addresses  
Finite-Lived Intangible Assets [Line Items]  
Useful life 10 years
v3.22.0.1
Summary of Significant Accounting Policies - Cost of Revenue (Details)
12 Months Ended
Dec. 31, 2021
Bandwidth contracts  
Disaggregation of Revenue [Line Items]  
Typical duration of contracts 1 year
Colocation services contracts  
Disaggregation of Revenue [Line Items]  
Typical duration of contracts 3 years
v3.22.0.1
Summary of Significant Accounting Policies - Advertising Expense (Details) - USD ($)
$ in Millions
12 Months Ended
Dec. 31, 2021
Dec. 31, 2020
Dec. 31, 2019
Accounting Policies [Abstract]      
Advertising expense $ 2.3 $ 3.8 $ 1.4
v3.22.0.1
Summary of Significant Accounting Policies - Recently Adopted Accounting Pronouncements (Details) - USD ($)
$ in Thousands
Dec. 31, 2021
Dec. 31, 2020
Jan. 01, 2020
Accounting Policies [Abstract]      
Operating lease right-of-use assets, net $ 69,631 $ 60,019 $ 54,700
Operating lease, liability $ 75,385   $ 56,300
v3.22.0.1
Revenue - Revenue by Geographic Area (Details) - USD ($)
$ in Thousands
12 Months Ended
Dec. 31, 2021
Dec. 31, 2020
Dec. 31, 2019
Disaggregation of Revenue [Line Items]      
Revenue $ 354,330 $ 290,874 $ 200,462
United States      
Disaggregation of Revenue [Line Items]      
Revenue 260,399 196,538 142,842
Asia Pacific      
Disaggregation of Revenue [Line Items]      
Revenue 39,496 44,060 18,806
Europe      
Disaggregation of Revenue [Line Items]      
Revenue 35,177 32,768 27,595
All other countries      
Disaggregation of Revenue [Line Items]      
Revenue $ 19,258 $ 17,508 $ 11,219
v3.22.0.1
Revenue - Narrative (Details) - USD ($)
12 Months Ended
Dec. 31, 2021
Dec. 31, 2020
Dec. 31, 2019
Revenue from Contract with Customer [Abstract]      
Enterprise customer threshold $ 100,000    
Revenue, performance obligation, description of payment terms Payment terms on invoiced amounts are at an average of 30 days    
Amortization of deferred contract costs $ 6,294,000 $ 3,516,000 $ 2,294,000
v3.22.0.1
Revenue - Revenue by Customer Type (Details) - USD ($)
$ in Thousands
12 Months Ended
Dec. 31, 2021
Dec. 31, 2020
Dec. 31, 2019
Disaggregation of Revenue [Line Items]      
Revenue $ 354,330 $ 290,874 $ 200,462
Enterprise customers      
Disaggregation of Revenue [Line Items]      
Revenue 313,360 256,483 174,926
Non-enterprise customers      
Disaggregation of Revenue [Line Items]      
Revenue $ 40,970 $ 34,391 $ 25,536
v3.22.0.1
Revenue - Contract Assets and Liabilities (Details) - USD ($)
$ in Thousands
12 Months Ended
Dec. 31, 2021
Dec. 31, 2020
Revenue from Contract with Customer [Abstract]    
Contract assets $ 89 $ 387
Contract liabilities 28,907 18,020
Revenue recognized in the period from:    
Amounts included in contract liability at the beginning of the period $ 15,948 $ 310
v3.22.0.1
Revenue - Remaining Performance Obligation (Details)
$ in Millions
Dec. 31, 2021
USD ($)
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]  
Remaining performance obligation $ 152.3
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2022-01-01  
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]  
Remaining performance obligation, percentage 81.00%
Remaining performance obligation, expected time period of recognition 12 months
v3.22.0.1
Revenue - Costs to Obtain Contracts (Details) - USD ($)
$ in Thousands
Dec. 31, 2021
Dec. 31, 2020
Revenue from Contract with Customer [Abstract]    
Deferred contract costs, net $ 23,830 $ 19,332
v3.22.0.1
Investments and Fair Value Measurements - Cash, Cash Equivalent and Marketable Securities (Details) - USD ($)
$ in Thousands
Dec. 31, 2021
Dec. 31, 2020
Dec. 31, 2019
Debt Securities, Available-for-sale [Line Items]      
Cash and cash equivalents $ 166,068 $ 62,900 $ 16,142
Short-term marketable securities 361,795 131,283  
Marketable securities, non-current 528,911 20,448  
Total marketable securities 890,706 151,731  
U.S. Treasury securities      
Debt Securities, Available-for-sale [Line Items]      
Short-term marketable securities 184,946 75,524  
Marketable securities, non-current 239,528 20,448  
Total marketable securities 424,475 95,972  
Corporate notes and bonds      
Debt Securities, Available-for-sale [Line Items]      
Short-term marketable securities 11,327 14,314  
Marketable securities, non-current 197,298 0  
Total marketable securities 208,625 14,314  
Commercial paper      
Debt Securities, Available-for-sale [Line Items]      
Short-term marketable securities 124,089 41,445  
Total marketable securities 124,089 41,445  
Asset-backed securities      
Debt Securities, Available-for-sale [Line Items]      
Short-term marketable securities 21,576 0  
Marketable securities, non-current 77,142 0  
Total marketable securities 98,717    
Municipal securities      
Debt Securities, Available-for-sale [Line Items]      
Short-term marketable securities 2,250 0  
Total marketable securities 4,562    
Foreign government and supranational securities      
Debt Securities, Available-for-sale [Line Items]      
Short-term marketable securities 17,607 0  
Marketable securities, non-current 12,631 0  
Total marketable securities 30,238    
Municipal securities      
Debt Securities, Available-for-sale [Line Items]      
Marketable securities, non-current 2,312 0  
Cash      
Debt Securities, Available-for-sale [Line Items]      
Cash and cash equivalents 134,774 21,273  
Money market funds      
Debt Securities, Available-for-sale [Line Items]      
Cash and cash equivalents 31,294 36,629  
Commercial paper      
Debt Securities, Available-for-sale [Line Items]      
Cash and cash equivalents $ 0 $ 4,998  
v3.22.0.1
Investments and Fair Value Measurements - Available-For-Sale Investments (Details) - USD ($)
$ in Thousands
Dec. 31, 2021
Dec. 31, 2020
Debt Securities, Available-for-sale [Line Items]    
Amortized Cost $ 892,948 $ 151,626
Gross Unrealized Gain 1 110
Gross Unrealized Loss (2,243) (5)
Fair Value 890,706 151,731
U.S. Treasury securities    
Debt Securities, Available-for-sale [Line Items]    
Amortized Cost 425,560 95,884
Gross Unrealized Gain 1 93
Gross Unrealized Loss (1,086) (5)
Fair Value 424,475 95,972
Corporate notes and bonds    
Debt Securities, Available-for-sale [Line Items]    
Amortized Cost 209,550 14,297
Gross Unrealized Gain 0 17
Gross Unrealized Loss (925) 0
Fair Value 208,625 14,314
Commercial paper    
Debt Securities, Available-for-sale [Line Items]    
Amortized Cost 124,098 41,445
Gross Unrealized Gain 0 0
Gross Unrealized Loss (9) 0
Fair Value 124,089 $ 41,445
Asset-backed securities    
Debt Securities, Available-for-sale [Line Items]    
Amortized Cost 98,857  
Gross Unrealized Gain 0  
Gross Unrealized Loss (140)  
Fair Value 98,717  
Municipal securities    
Debt Securities, Available-for-sale [Line Items]    
Amortized Cost 4,577  
Gross Unrealized Gain 0  
Gross Unrealized Loss (15)  
Fair Value 4,562  
Foreign government and supranational securities    
Debt Securities, Available-for-sale [Line Items]    
Amortized Cost 30,306  
Gross Unrealized Gain 0  
Gross Unrealized Loss (68)  
Fair Value $ 30,238  
v3.22.0.1
Investments and Fair Value Measurements - Narrative (Details)
$ in Millions
Dec. 31, 2021
USD ($)
security
Dec. 31, 2020
USD ($)
security
Fair Value Disclosures [Abstract]    
Securities in a continuous loss position (in securities) | security 0 0
Restricted cash | $ $ 0.9 $ 1.0
v3.22.0.1
Investments and Fair Value Measurements - Assets and Liabilities at Fair Value (Details) - USD ($)
$ in Thousands
Dec. 31, 2021
Dec. 31, 2020
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Cash and cash equivalents $ 31,294 $ 41,627
Marketable securities 890,706 151,731
Restricted cash 893 980
Total financial assets 922,893 194,338
U.S. Treasury securities    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Marketable securities 424,475 95,972
Corporate notes and bonds    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Marketable securities 208,625 14,314
Commercial paper    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Marketable securities 124,089 41,445
Asset-backed securities    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Marketable securities 98,717  
Municipal securities    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Marketable securities 4,562  
Foreign government and supranational securities    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Marketable securities 30,238  
Money market funds    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Cash and cash equivalents 31,294 36,629
Restricted cash 893 980
U.S. Treasury securities    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Cash and cash equivalents   4,998
Level 1    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Cash and cash equivalents 31,294 36,629
Marketable securities 0 0
Restricted cash 893 980
Total financial assets 32,187 37,609
Level 1 | U.S. Treasury securities    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Marketable securities 0 0
Level 1 | Corporate notes and bonds    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Marketable securities 0 0
Level 1 | Commercial paper    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Marketable securities 0 0
Level 1 | Asset-backed securities    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Marketable securities 0  
Level 1 | Municipal securities    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Marketable securities 0  
Level 1 | Foreign government and supranational securities    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Marketable securities 0  
Level 1 | Money market funds    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Cash and cash equivalents 31,294 36,629
Restricted cash 893 980
Level 1 | U.S. Treasury securities    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Cash and cash equivalents   0
Level 2    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Cash and cash equivalents 0 4,998
Marketable securities 890,706 151,731
Restricted cash 0 0
Total financial assets 890,706 156,729
Level 2 | U.S. Treasury securities    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Marketable securities 424,475 95,972
Level 2 | Corporate notes and bonds    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Marketable securities 208,625 14,314
Level 2 | Commercial paper    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Marketable securities 124,089 41,445
Level 2 | Asset-backed securities    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Marketable securities 98,717  
Level 2 | Municipal securities    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Marketable securities 4,562  
Level 2 | Foreign government and supranational securities    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Marketable securities 30,238  
Level 2 | Money market funds    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Cash and cash equivalents 0 0
Restricted cash 0 0
Level 2 | U.S. Treasury securities    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Cash and cash equivalents   4,998
Level 3    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Cash and cash equivalents 0 0
Marketable securities 0 0
Restricted cash 0 0
Total financial assets 0 0
Level 3 | U.S. Treasury securities    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Marketable securities 0 0
Level 3 | Corporate notes and bonds    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Marketable securities 0 0
Level 3 | Commercial paper    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Marketable securities 0 0
Level 3 | Asset-backed securities    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Marketable securities 0  
Level 3 | Municipal securities    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Marketable securities 0  
Level 3 | Foreign government and supranational securities    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Marketable securities 0  
Level 3 | Money market funds    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Cash and cash equivalents 0 0
Restricted cash $ 0 0
Level 3 | U.S. Treasury securities    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Cash and cash equivalents   $ 0
v3.22.0.1
Business Combinations - Narrative (Details)
$ / shares in Units, $ in Thousands
3 Months Ended 12 Months Ended
Oct. 01, 2020
USD ($)
cofounder
$ / shares
shares
Dec. 31, 2021
$ / shares
shares
Sep. 30, 2021
shares
Dec. 31, 2021
USD ($)
$ / shares
shares
Dec. 31, 2020
USD ($)
$ / shares
Dec. 31, 2019
USD ($)
May 31, 2019
$ / shares
Business Acquisition [Line Items]              
Common stock, par value (in dollars per share) | $ / shares   $ 0.00002   $ 0.00002 $ 0.00002    
Revenue       $ 354,330 $ 290,874 $ 200,462  
Net loss       $ 222,697 95,932 $ 51,550  
Revest Shares              
Business Acquisition [Line Items]              
Nonvested shares sold (in shares) | shares   149,417 186,771 336,188      
Common Class A              
Business Acquisition [Line Items]              
Common stock, par value (in dollars per share) | $ / shares             $ 0.00002
Signal Sciences Corp              
Business Acquisition [Line Items]              
Business acquisition, percentage of voting interests acquired 100.00%            
Aggregate consideration transferred $ 759,400            
Cash consideration transferred 223,000            
Acquisition, value of equity consideration 536,400            
Unvested stock option assumed, fair value 21,800            
Amount allocated to purchase price 1,100            
Amount allocated to future services $ 20,700            
Amount allocated to future services, recognition period 2 years 6 months            
Unvested stock options assumed, conversion ratio 10.00%            
Number of cofounders with shares subject to revesting | cofounder 3            
Shares held back for restricted stock awards, revesting period 2 years            
Estimated useful life (in years) 6 years 7 months 6 days            
Tax benefit from release of valuation allowance         13,000    
Acquisition related costs       $ 2,500 $ 20,800    
Revenue $ 6,700            
Net loss $ 23,000            
Signal Sciences Corp | Common Class A              
Business Acquisition [Line Items]              
Shares issued related to a business combination (in shares) | shares 6,367,709            
Number of shares issued in acquisition (in shares) | shares 5,471,210            
Number of shares restricted for stock awards (in shares) | shares 896,499            
Common stock, par value (in dollars per share) | $ / shares $ 0.00002            
Unvested stock options assumed (in shares) | shares 251,754            
v3.22.0.1
Business Combinations - Assets Acquired and Liabilities (Details) - USD ($)
$ in Thousands
Dec. 31, 2021
Dec. 31, 2020
Oct. 01, 2020
Dec. 31, 2019
Business Acquisition [Line Items]        
Goodwill $ 636,805 $ 635,590   $ 372
Signal Sciences Corp        
Business Acquisition [Line Items]        
Cash and cash equivalents     $ 21,501  
Other current assets     6,419  
Intangible assets, net     124,100  
Other non-current assets     8,094  
Total assets acquired     160,114  
Current liabilities     (14,755)  
Non-current liabilities     (21,170)  
Total liabilities assumed     (35,925)  
Net assets acquired     124,189  
Total acquisition consideration     759,393  
Goodwill     $ 635,204  
v3.22.0.1
Business Combinations - Finite-Lived Intangible Assets (Details) - Signal Sciences Corp
$ in Thousands
Oct. 01, 2020
USD ($)
Business Acquisition [Line Items]  
Total intangible assets acquired $ 124,100
Estimated useful life (in years) 6 years 7 months 6 days
Customer relationships  
Business Acquisition [Line Items]  
Total intangible assets acquired $ 69,100
Estimated useful life (in years) 8 years
Developed Technology  
Business Acquisition [Line Items]  
Total intangible assets acquired $ 49,500
Estimated useful life (in years) 5 years
Trade name  
Business Acquisition [Line Items]  
Total intangible assets acquired $ 3,300
Estimated useful life (in years) 3 years
Backlog  
Business Acquisition [Line Items]  
Total intangible assets acquired $ 2,200
Estimated useful life (in years) 2 years
v3.22.0.1
Business Combinations - Pro Forma Information (Details) - USD ($)
$ in Thousands
12 Months Ended
Dec. 31, 2021
Dec. 31, 2020
Business Combination and Asset Acquisition [Abstract]    
Revenue $ 313,665 $ 218,529
Net loss $ (159,248) $ (178,124)
v3.22.0.1
Balance Sheet Information - Allowance for Credit Losses (Details) - USD ($)
$ in Thousands
12 Months Ended
Dec. 31, 2021
Dec. 31, 2020
Dec. 31, 2019
Accounts Receivable, Allowance for Credit Loss [Roll Forward]      
Beginning balance $ 3,248 $ 1,816  
Additions to the reserves 196 1,719 $ 360
Write-offs and adjustments (133) (287)  
Ending balance $ 3,311 $ 3,248 $ 1,816
v3.22.0.1
Balance Sheet Information - Property and equipment (Details) - USD ($)
$ in Thousands
Dec. 31, 2021
Dec. 31, 2020
Property, Plant and Equipment [Line Items]    
Property and equipment, gross $ 254,811 $ 157,632
Accumulated depreciation and amortization (87,850) (61,653)
Property and equipment, net 166,961 95,979
Computer and networking equipment    
Property, Plant and Equipment [Line Items]    
Property and equipment, gross 207,575 129,998
Leasehold improvements    
Property, Plant and Equipment [Line Items]    
Property and equipment, gross 4,631 3,817
Furniture and fixtures    
Property, Plant and Equipment [Line Items]    
Property and equipment, gross 1,606 1,092
Office equipment    
Property, Plant and Equipment [Line Items]    
Property and equipment, gross 654 659
Internal-use software    
Property, Plant and Equipment [Line Items]    
Property and equipment, gross 40,345 22,066
Property and equipment, net $ 27,900 $ 14,200
v3.22.0.1
Balance Sheet Information - Narrative (Details) - USD ($)
$ in Thousands
12 Months Ended
Dec. 31, 2021
Dec. 31, 2020
Dec. 31, 2019
Property, Plant and Equipment [Line Items]      
Depreciation and amortization $ 28,800 $ 19,800 $ 16,400
Property and equipment, net 166,961 95,979  
Finance lease, right-of-use asset, before accumulated amortization 67,800 36,200  
Finance lease, right-of-use asset, accumulated amortization 14,400 6,700  
Internal-use software      
Property, Plant and Equipment [Line Items]      
Depreciation and amortization 4,600 2,400 $ 2,200
Property and equipment, net $ 27,900 $ 14,200  
v3.22.0.1
Balance Sheet Information - Accrued Expenses (Details) - USD ($)
$ in Thousands
Dec. 31, 2021
Dec. 31, 2020
Balance Sheet Related Disclosures [Abstract]    
Accrued compensation and related benefits $ 13,543 $ 17,840
Accrued colocation and bandwidth costs 10,205 3,644
Sales and use tax payable 7,498 6,274
Accrued acquisition-related costs 0 2,208
Other accrued liabilities 4,866 4,368
Total accrued expenses $ 36,112 $ 34,334
v3.22.0.1
Balance Sheet Information - Other Current Liabilities (Details) - USD ($)
$ in Thousands
Dec. 31, 2021
Dec. 31, 2020
Balance Sheet Related Disclosures [Abstract]    
Deferred revenue $ 26,421 $ 15,916
Accrued computer and networking equipment 18,081 3,126
Liability for early-exercised stock options 0 255
Other current liabilities 605 380
Total other current liabilities $ 45,107 $ 19,677
v3.22.0.1
Balance Sheet Information - Accumulated Other Comprehensive Income (Loss) (Details) - USD ($)
$ in Thousands
12 Months Ended
Dec. 31, 2021
Dec. 31, 2020
Dec. 31, 2019
AOCI Attributable to Parent, Net of Tax [Roll Forward]      
Beginning balance $ 1,061,865 $ 257,652 $ (131,927)
Other comprehensive income (loss) (2,633) (190) 232
Ending balance 1,013,953 1,061,865 257,652
Foreign Currency Translation      
AOCI Attributable to Parent, Net of Tax [Roll Forward]      
Beginning balance (36) 99 (12)
Other comprehensive income (loss) (286) (135) 111
Ending balance (322) (36) 99
Available-for-sale investments      
AOCI Attributable to Parent, Net of Tax [Roll Forward]      
Beginning balance 42 97 (24)
Other comprehensive income (loss) (2,347) (55) 121
Ending balance (2,305) 42 97
Accumulated Other Comprehensive Income (Loss)      
AOCI Attributable to Parent, Net of Tax [Roll Forward]      
Beginning balance 6 196 (36)
Other comprehensive income (loss) (2,633) (190) 232
Ending balance $ (2,627) $ 6 $ 196
v3.22.0.1
Leases - Narrative (Details) - USD ($)
$ in Millions
12 Months Ended
Dec. 31, 2021
Dec. 31, 2020
Dec. 31, 2019
Lessee, Lease, Description [Line Items]      
Subleases, remaining lease terms (in years) 2 years 9 months    
Sublease income $ 1.0 $ 1.3 $ 1.2
Lease not yet commenced, commitment amount $ 5.9    
Minimum      
Lessee, Lease, Description [Line Items]      
Remaining lease terms, operating (in years) 0 years    
Remaining lease terms, finance (in years) 0 years    
Lease not yet commenced, term of contract 1 year    
Maximum      
Lessee, Lease, Description [Line Items]      
Remaining lease terms, operating (in years) 6 years    
Remaining lease terms, finance (in years) 6 years    
Lease not yet commenced, term of contract 5 years    
v3.22.0.1
Leases - Lease Cost (Details) - USD ($)
$ in Thousands
12 Months Ended
Dec. 31, 2021
Dec. 31, 2020
Leases [Abstract]    
Operating lease cost $ 26,716 $ 21,765
Variable lease cost 6,820 4,363
Total operating lease costs 33,536 26,128
Amortization of assets under finance lease 6,834 2,858
Interest 1,754 688
Total finance lease cost $ 8,588 $ 3,546
v3.22.0.1
Leases - Supplemental Lease Information (Details) - USD ($)
$ in Thousands
12 Months Ended
Dec. 31, 2021
Dec. 31, 2020
Dec. 31, 2019
Cash paid for amounts included in the measurement of lease liabilities:      
Payments for operating leases included in cash from operating activities $ 26,447 $ 18,264  
Payments for finance leases included in cash from financing activities 13,568 5,773 $ 1,370
Payments for finance leases included in cash from operating activities 1,754 688  
Assets obtained in exchange for lease obligations:      
Operating leases 32,458 23,827 0
Finance leases $ 31,529 $ 22,541 $ 0
Weighted Average Remaining Lease term (in years)      
Operating lease, weighted average remaining lease term (in years) 4 years 4 months 28 days 4 years 5 months 8 days  
Finance lease, weighted average remaining lease term (in years) 2 years 2 months 23 days 2 years 6 months 3 days  
Weighted Average Discount Rate      
Operating lease, weighted average discount rate 5.20% 5.68%  
Finance lease, weighted average discount rate 4.86% 5.12%  
v3.22.0.1
Leases - Lease Liability Maturity (Details) - USD ($)
$ in Thousands
Dec. 31, 2021
Jan. 01, 2020
Operating Leases    
2022 $ 19,389  
2023 18,297  
2024 15,014  
2025 13,391  
2026 13,174  
Thereafter 5,813  
Total future minimum lease payments 85,078  
Less: imputed interest (9,693)  
Total liability 75,385 $ 56,300
Finance Leases    
2022 22,700  
2023 17,216  
2024 5,855  
2025 0  
2026 0  
Thereafter 0  
Total future minimum lease payments 45,771  
Less: imputed interest (2,353)  
Total liability $ 43,418  
v3.22.0.1
Goodwill and Intangible Assets - Goodwill (Details) - USD ($)
$ in Thousands
12 Months Ended
Dec. 31, 2021
Dec. 31, 2020
Goodwill [Roll Forward]    
Balance, beginning of period $ 635,590 $ 372
Goodwill acquired 1,169 635,204
Foreign currency translation and other adjustments 46 14
Balance, end of period $ 636,805 $ 635,590
v3.22.0.1
Goodwill and Intangible Assets - Narrative (Details) - USD ($)
12 Months Ended
Dec. 31, 2021
Dec. 31, 2020
Dec. 31, 2019
Goodwill and Intangible Assets Disclosure [Abstract]      
Goodwill acquired $ 1,169,000 $ 635,204,000  
Goodwill, impairment loss 0 0 $ 0
Amortization of intangible assets $ 21,200,000 $ 5,300,000 $ 100,000
v3.22.0.1
Goodwill and Intangible Assets - Intangible Assets (Details) - USD ($)
$ in Thousands
Dec. 31, 2021
Dec. 31, 2020
Finite-Lived Intangible Assets [Line Items]    
Accumulated amortization $ (26,895) $ (5,656)
Net carrying value 102,228  
Gross carrying value 129,491 127,398
Intangible assets, net 102,596 121,742
Customer relationships    
Finite-Lived Intangible Assets [Line Items]    
Gross carrying value 69,100 69,100
Accumulated amortization (10,797) (2,053)
Net carrying value 58,303 67,047
Developed Technology    
Finite-Lived Intangible Assets [Line Items]    
Gross carrying value 49,500 49,500
Accumulated amortization (12,375) (2,475)
Net carrying value 37,125 47,025
Trade name    
Finite-Lived Intangible Assets [Line Items]    
Gross carrying value 3,300 3,300
Accumulated amortization (1,375) (275)
Net carrying value 1,925 3,025
Internet protocol addresses    
Finite-Lived Intangible Assets [Line Items]    
Gross carrying value 4,984 2,891
Accumulated amortization (973) (578)
Net carrying value 4,011 2,313
Backlog    
Finite-Lived Intangible Assets [Line Items]    
Gross carrying value 2,200 2,200
Accumulated amortization (1,375) (275)
Net carrying value 825 1,925
In-process research and development ("IPR&D")    
Finite-Lived Intangible Assets [Line Items]    
Gross carrying value 368 368
Accumulated amortization 0 0
Net carrying value 368 368
Domain name    
Finite-Lived Intangible Assets [Line Items]    
Gross carrying value 39 39
Accumulated amortization 0 0
Net carrying value $ 39 $ 39
v3.22.0.1
Goodwill and Intangible Assets - Expected Amortization of Intangible Assets (Details)
$ in Thousands
Dec. 31, 2021
USD ($)
Goodwill and Intangible Assets Disclosure [Abstract]  
2022 $ 20,974
2023 19,874
2024 19,040
2025 16,561
2026 9,065
Thereafter 16,714
Net carrying value $ 102,228
v3.22.0.1
Debt Instruments - Cash Collateralized Revolving Credit Agreement (Details) - USD ($)
12 Months Ended
Dec. 31, 2021
Nov. 30, 2020
Nov. 30, 2019
Line of Credit Facility [Line Items]      
Effective interest rate 0.39%    
Amount of debt outstanding   $ 20,300,000  
Cash collateral for line of credit   $ 70,100,000  
Second Lien Credit Facility | Line of Credit      
Line of Credit Facility [Line Items]      
Debt facility, maximum borrowing amount     $ 70,000,000
Effective interest rate 3.46%    
Commitment fee percentage 0.20%    
Second Lien Credit Facility | Line of Credit | LIBOR      
Line of Credit Facility [Line Items]      
Basis spread on variable rate 1.50%    
v3.22.0.1
Debt Instruments - Senior Secured Credit Facilities Agreement (Details)
12 Months Ended
Feb. 16, 2021
USD ($)
Dec. 31, 2021
USD ($)
Nov. 30, 2020
USD ($)
Debt Instrument [Line Items]      
Amount of debt outstanding     $ 20,300,000
SVB Revolver      
Debt Instrument [Line Items]      
Debt facility, maximum borrowing amount $ 100,000,000    
Debt covenant, adjusted quick ratio, minimum threshold to trigger revenue growth covenant requirement 1.75    
Transaction costs $ 600,000    
Amounts drawn on line of credit during the period   $ 0  
Amount of debt outstanding   $ 0  
SVB Revolver | Minimum      
Debt Instrument [Line Items]      
Commitment fee percentage 0.20%    
SVB Revolver | Maximum      
Debt Instrument [Line Items]      
Commitment fee percentage 0.25%    
SVB Revolver | LIBOR | Minimum      
Debt Instrument [Line Items]      
Basis spread on variable rate 1.75%    
SVB Revolver | LIBOR | Maximum      
Debt Instrument [Line Items]      
Basis spread on variable rate 2.00%    
v3.22.0.1
Debt Instruments - Convertible Senior Notes (Details)
$ / shares in Units, $ in Thousands
12 Months Ended
Mar. 05, 2021
USD ($)
Dec. 31, 2021
USD ($)
day
$ / shares
Dec. 31, 2020
USD ($)
Dec. 31, 2019
USD ($)
Debt Instrument [Line Items]        
Issuance of convertible note, net of issuance costs | $   $ 930,775 $ 0 $ 0
2026 Convertible Notes        
Debt Instrument [Line Items]        
Issuance of convertible note, net of issuance costs | $ $ 930,000      
2026 Convertible Notes | Common Class A        
Debt Instrument [Line Items]        
Debt instrument, convertible, conversion ratio   0.0097272    
Debt instrument, convertible, conversion price (in dollars per share) | $ / shares   $ 102.80    
2026 Convertible Notes | Fastly Conversion Option        
Debt Instrument [Line Items]        
Debt instrument, convertible, threshold percentage of stock price trigger   130.00%    
Debt instrument, convertible, threshold trading days   20    
Debt instrument, convertible, threshold consecutive trading days   30    
2026 Convertible Notes | Holder Conversion Option One | Common Class A        
Debt Instrument [Line Items]        
Debt instrument, convertible, threshold percentage of stock price trigger   130.00%    
Debt instrument, convertible, threshold trading days   20    
Debt instrument, convertible, threshold consecutive trading days   30    
2026 Convertible Notes | Holder Conversion Option Two | Common Class A        
Debt Instrument [Line Items]        
Debt instrument, convertible, threshold percentage of stock price trigger   98.00%    
Debt instrument, convertible, threshold trading days   5    
Debt instrument, convertible, threshold consecutive trading days   10    
Convertible Debt | 2026 Convertible Notes        
Debt Instrument [Line Items]        
Debt instrument, face amount | $ $ 948,800      
Interest rate, stated percentage 0.00%      
Debt instrument, face amount, additional principal issuable | $ $ 123,800      
Discount and transaction costs | $ $ 18,600      
Convertible Debt | 2026 Convertible Notes | Fastly Conversion Option        
Debt Instrument [Line Items]        
Debt instrument, redemption price, percentage   100.00%    
Convertible Debt | 2026 Convertible Notes | Fundamental Change        
Debt Instrument [Line Items]        
Debt instrument, redemption price, percentage   100.00%    
v3.22.0.1
Debt Instruments -Narrative (Details) - USD ($)
$ in Millions
12 Months Ended
Dec. 31, 2021
Dec. 31, 2020
Dec. 31, 2019
Debt Instrument [Line Items]      
Interest expense $ 3.5 $ 0.9 $ 5.2
Line of Credit      
Debt Instrument [Line Items]      
Interest expense     4.7
Capital Lease Obligations      
Debt Instrument [Line Items]      
Interest expense     $ 0.5
v3.22.0.1
Debt Instruments - Carrying Values of Debt Agreements (Details)
$ in Thousands
Dec. 31, 2021
USD ($)
Debt Disclosure [Abstract]  
Effective interest rate 0.39%
Principal amount $ 948,750
Less: unamortized debt issuance costs (15,545)
Less: current portion of long-term debt 0
Long-term debt, less current portion $ 933,205
v3.22.0.1
Commitments and Contingencies - Purchase Commitments (Details)
$ in Thousands
Dec. 31, 2021
USD ($)
Long-term Purchase Commitment [Line Items]  
2022 $ 49,056
2023 20,147
2024 3,769
2025 169
2026 160
Thereafter 82
Total 73,383
Cost of Revenue Commitments  
Long-term Purchase Commitment [Line Items]  
2022 34,075
2023 5,554
2024 2,920
2025 160
2026 160
Thereafter 82
Total 42,951
SaaS Agreements  
Long-term Purchase Commitment [Line Items]  
2022 14,981
2023 14,593
2024 849
2025 9
2026 0
Thereafter 0
Total $ 30,432
v3.22.0.1
Commitments and Contingencies - Narrative (Details)
$ in Thousands
Dec. 31, 2021
USD ($)
Dec. 31, 2020
USD ($)
Sep. 27, 2020
lawsuit
Commitments and Contingencies Disclosure [Abstract]      
Sales and use tax payable | $ $ 7,498 $ 6,274  
Number of lawsuits consolidated     2
Number of lawsuits     1
v3.22.0.1
Stockholders' Equity - Common Stock and Preferred Stock (Details)
12 Months Ended
Oct. 12, 2021
Jul. 12, 2021
shares
Dec. 31, 2021
$ / shares
shares
Dec. 31, 2020
$ / shares
shares
May 31, 2019
vote
$ / shares
shares
Class of Stock [Line Items]          
Common stock, shares authorized (in shares)     1,094,129,050 1,094,129,050  
Common stock, par value (in dollars per share) | $ / shares     $ 0.00002 $ 0.00002  
Common stock, shares issued (in shares)     118,810,611 113,623,196  
Common stock, shares outstanding (in shares)     118,810,611 113,623,196  
Preferred stock, shares authorized (in shares)         10,000,000
Preferred stock, par value (in dollars per share) | $ / shares         $ 0.00002
Preferred stock, shares outstanding (in shares)     0 0  
Preferred stock, shares issued (in shares)     0 0  
Common Class A          
Class of Stock [Line Items]          
Common stock, shares authorized (in shares)         1,000,000,000
Common stock, par value (in dollars per share) | $ / shares         $ 0.00002
Common stock, voting rights (votes per share) | vote         1
Common stock, shares issued (in shares)     118,800,000 103,400,000  
Common stock, shares outstanding (in shares)     118,800,000 103,400,000  
Common Class B          
Class of Stock [Line Items]          
Common stock, shares authorized (in shares)         94,100,000
Common stock, par value (in dollars per share) | $ / shares         $ 0.00002
Common stock, voting rights (votes per share) | vote         10
Common stock, shares issued (in shares)     0 10,200,000  
Common stock, shares outstanding (in shares)     0 10,200,000  
Automatic conversion provision, percentage of Class A Common Stock 10.00%   10.00%    
Common Stock, Shares, Retired   90,000,000      
v3.22.0.1
Stockholders' Equity - Equity Incentive Plans (Details) - USD ($)
1 Months Ended
Oct. 01, 2020
May 31, 2019
Dec. 31, 2021
Dec. 31, 2020
Common Class A | Signal Sciences Corp        
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]        
Unvested stock options assumed (in shares) 251,754      
Shares issuable pursuant to the ESPP        
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]        
Maximum deduction percentage of eligible compensation   15.00% 15.00%  
Maximum purchase value during offering period, per employee   $ 25,000    
Shares issuable pursuant to the ESPP | Common Class A        
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]        
Common stock, shares reserved for future issuance (in shares)     4,600,000 3,500,000
Common stock, shares available for future issuance (in shares)     3,700,000 2,800,000
2011 Equity Incentive Plan | Common Class B        
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]        
Common stock, shares reserved for future issuance (in shares)     23,600,000 23,600,000
Common stock, shares available for future issuance (in shares)       0
2011 Equity Incentive Plan | Common Class A        
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]        
Common stock, shares available for future issuance (in shares)     0  
2019 Equity Incentive Plan | Common Class A        
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]        
Common stock, shares reserved for future issuance (in shares)     21,400,000 19,400,000
Common stock, shares available for future issuance (in shares)     15,900,000 12,800,000
v3.22.0.1
Stockholders' Equity - Stock Options (Details) - USD ($)
$ / shares in Units, $ in Thousands
12 Months Ended
Dec. 31, 2021
Dec. 31, 2020
Dec. 31, 2019
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]      
Pre-tax intrinsic value $ 64,900 $ 200,900 $ 32,600
Vesting of early exercised stock options $ 6,900 $ 10,300 $ 6,100
Weighted-average grant date fair value (in dollars per share) $ 0.00 $ 86.77 $ 5.77
Stock-based compensation expense $ 140,488 $ 64,433 $ 12,145
Unrecognized stock-based compensation cost $ 9,400    
Weighted-average period of recognition 4 months 24 days    
Stock options      
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]      
Stock-based compensation expense $ 18,700 10,100 7,900
Incremental cost due to plan modification $ 6,200 $ 900 $ 600
Weighted-average period of recognition 1 year 6 months    
Stock options | 2011 Equity Incentive Plan      
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]      
Award expiration period 10 years    
Award vesting percentage per year 25.00%    
Stock options | 2011 Equity Incentive Plan | First Year      
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]      
Award vesting period 4 years    
Stock options | 2011 Equity Incentive Plan | Remaining Period      
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]      
Award vesting period 36 months    
Stock options | 2019 Equity Incentive Plan      
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]      
Award expiration period 10 years    
Award vesting percentage per year 25.00%    
Stock options | 2019 Equity Incentive Plan | First Year      
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]      
Award vesting period 4 years    
Stock options | 2019 Equity Incentive Plan | Remaining Period      
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]      
Award vesting period 36 months    
Stock options | Signal Sciences 2014 Equity Stock Options Plan      
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]      
Award expiration period 10 years    
Award vesting percentage per year 25.00%    
Stock options | Signal Sciences 2014 Equity Stock Options Plan | First Year      
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]      
Award vesting period 4 years    
Stock options | Signal Sciences 2014 Equity Stock Options Plan | Remaining Period      
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]      
Award vesting period 36 months    
v3.22.0.1
Stockholders' Equity - Stock Option Activity (Details) - USD ($)
$ / shares in Units, shares in Thousands, $ in Thousands
12 Months Ended
Dec. 31, 2021
Dec. 31, 2020
Dec. 31, 2019
Dec. 31, 2018
Number of Shares        
Options outstanding, beginning balance (in shares) 6,963 11,269 12,210  
Granted (in shares) 0 252 2,516  
Exercised (in shares) (2,188) (4,360) (2,650)  
Cancelled/forfeited (in shares) (406) (198) (807)  
Options outstanding, ending balance (in shares) 4,369 6,963 11,269 12,210
Options vested and exercisable (in shares) 3,579      
Unvested and exercisable (in shares) 134      
Stock Options Weighted Average Exercise Price        
Options outstanding, weighted average exercise price, beginning of period (in dollars per share) $ 5.07 $ 5.63 $ 4.68 $ 2.96
Granted, weighted average exercise price (in dollars per share) 0 12.96 10.87  
Exercised, weighted average exercise price (in dollars per share) 5.77 3.46 2.45  
Cancelled/forfeited, weighted average exercise price (in dollars per share) 11.10 8.79 5.10  
Options outstanding, weighted average exercise price, end of period (in dollars per share) 5.07 $ 5.63 $ 4.68 $ 2.96
Vested and exercisable, weighted-average exercise price (in dollars per share) 4.10      
Unvested and exercisable, weighted-average exercise price (in dollars per share) $ 6.70      
Stock Option Activity, Additional Disclosures        
Weighted-average remaining contractual period 5 years 1 month 6 days 6 years 8 months 12 days 7 years 3 months 18 days 7 years 9 months 18 days
Aggregate intrinsic value $ 132,721 $ 569,094 $ 173,471 $ 64,590
Vested and exercisable, weighted average contractual term 4 years 8 months 12 days      
Share-based Compensation Arrangement by Share-based Payment Award, Options, Unvested, Exercisable, Weighted Average Remaining Contractual Term 6 years 10 months 24 days      
Vested and exercisable, aggregate intrinsic value $ 112,280      
Unvested and exercisable, aggregate intrinsic value $ 3,834      
v3.22.0.1
Stockholders' Equity - Fair Value Assumptions - Stock Options (Details) - $ / shares
12 Months Ended
Dec. 31, 2021
Dec. 31, 2020
Dec. 31, 2019
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]      
Dividend yield 0.00% 0.00% 0.00%
Stock options      
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]      
Fair value of common stock (in shares) $ 0    
Expected term (in years) 0 years   6 years 7 days
Risk-free interest rate 0.00%    
Risk-free interest rate, minimum   0.31% 1.55%
Risk-free interest rate, maximum   0.67% 2.50%
Expected volatility 0.00%    
Expected volatility, minimum   43.92% 39.10%
Expected volatility, maximum   46.49% 42.70%
Dividend yield 0.00% 0.00% 0.00%
Stock options | Minimum      
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]      
Fair value of common stock (in shares)   $ 85.26 $ 8.24
Expected term (in years)   5 years 4 months 17 days  
Stock options | Maximum      
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]      
Fair value of common stock (in shares)   $ 96.43 $ 22.70
Expected term (in years)   9 years 9 months  
v3.22.0.1
Stockholders' Equity - Early Exercise of Stock Options (Details) - USD ($)
$ in Millions
12 Months Ended
Dec. 31, 2021
Dec. 31, 2020
Dec. 31, 2019
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]      
Shares subject to repurchase (in shares) 0 91,000 200,000
Number of Shares      
Beginning balance (in shares) 91,000 200,000 245,000
Early exercise of options (in shares) 0 0 117,000
Vested (in shares) (91,000) (109,000) (162,000)
Repurchased (in shares) 0 0 0
Ending balance (in shares) 0 91,000 200,000
Common Class B      
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]      
Shares subject to repurchase (in shares) 0 90,977  
Number of Shares      
Beginning balance (in shares) 90,977    
Ending balance (in shares) 0 90,977  
Stock options      
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]      
Plan modification, number of awards affected (in shares) 47,882    
Plan modification, exercise value of awards affected $ 0.2    
Other long-term liabilities $ 0.0 $ 0.4  
v3.22.0.1
Stockholders' Equity - RSUs, Revest Shares, Narrative (Details) - USD ($)
$ / shares in Units, $ in Thousands
2 Months Ended 3 Months Ended 6 Months Ended 12 Months Ended
Jan. 31, 2022
Oct. 01, 2020
Feb. 25, 2022
Dec. 31, 2021
Sep. 30, 2021
Dec. 31, 2021
Dec. 31, 2021
Dec. 31, 2020
Dec. 31, 2019
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]                  
Stock-based compensation expense             $ 140,488 $ 64,433 $ 12,145
Weighted-average period of recognition             4 months 24 days    
Signal Sciences Corp                  
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]                  
Shares held back for restricted stock awards, revesting period   2 years              
Signal Sciences Corp | Common Class A                  
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]                  
Number of shares restricted for stock awards (in shares)   896,499              
Vesting of restricted stock units                  
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]                  
Award vesting period             4 years    
Award vesting percentage per year             25.00%    
Stock-based compensation expense             $ 75,500 40,500 $ 2,200
Expense related to modification             2,800 4,800  
Unrecognized stock-based compensation cost       $ 210,500   $ 210,500 $ 210,500    
Weighted-average period of recognition             2 years 10 months 24 days    
Vesting of restricted stock units | Remaining Period                  
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]                  
Award vesting period             36 months    
Vesting of restricted stock units | Other Vesting Terms | Maximum                  
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]                  
Award vesting period             48 months    
Vesting of restricted stock units | Other Vesting Terms | Minimum                  
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]                  
Award vesting period             36 months    
Revest Shares                  
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]                  
Stock-based compensation expense             $ 43,800 $ 11,100  
Unrecognized stock-based compensation cost       $ 32,900   $ 32,900 $ 32,900    
Weighted-average period of recognition             8 months 12 days    
Nonvested shares sold (in shares)       149,417 186,771   336,188    
Nonvested shares sold, average price per share (in dollars per share)           $ 47.54      
Nonvested shares sold that remain unvested (in shares)       224,124   224,124 224,124    
Revest Shares | Subsequent Event                  
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]                  
Proceeds from nonvested shares sold $ 10,700   $ 10,700            
v3.22.0.1
Stockholders' Equity - Schedule of RSU and RSA Activity (Details) - $ / shares
1 Months Ended 3 Months Ended 12 Months Ended
Mar. 31, 2020
Mar. 31, 2021
Dec. 31, 2021
Dec. 31, 2020
Dec. 31, 2019
Weighted-Average Grant Date Fair Value Per Share          
Cancelled/forfeited (in dollars per share)       $ 22.58
Vesting of restricted stock units          
Number of Shares          
Beginning balance (in shares)   4,520,000 4,520,000 1,641,000 0
Granted (in shares)     3,584,000 4,398,000 1,644,000
Vested (in shares)     (1,924,000) (1,377,000) 0
Cancelled/forfeited (in shares)     (895,000) (142,000) (3,000)
Ending balance (in shares)     5,285,000 4,520,000 1,641,000
Weighted-Average Grant Date Fair Value Per Share          
Beginning balance (in dollars per share)   $ 30.01 $ 30.01 $ 20.07 $ 0
Granted (in dollars per share)     54.92 31.22 20.07
Vested (in dollars per share)     35.18 0 22.92
Cancelled/forfeited (in dollars per share)     42.91    
Ending balance (in dollars per share)     $ 42.80 $ 30.01 $ 20.07
Revest Shares          
Number of Shares          
Beginning balance (in shares)   784,000 784,000 0  
Granted (in shares)     0 896,000  
Vested (in shares)     (448,000) (112,000)  
Cancelled/forfeited (in shares)     0 0  
Ending balance (in shares)     336,000 784,000 0
Weighted-Average Grant Date Fair Value Per Share          
Beginning balance (in dollars per share)   $ 97.84 $ 97.84 $ 0  
Granted (in dollars per share)     0 97.84  
Vested (in dollars per share)     97.84 97.84  
Cancelled/forfeited (in dollars per share)        
Ending balance (in dollars per share)     $ 97.84 $ 97.84 $ 0
PSUs          
Number of Shares          
Beginning balance (in shares)   88,000 88,000 0  
Granted (in shares) 87,918 75,828 71,000 88,000  
Vested (in shares)     (76,000) 0  
Cancelled/forfeited (in shares)   (12,090) (12,000) 0  
Ending balance (in shares)     71,000 88,000 0
Weighted-Average Grant Date Fair Value Per Share          
Beginning balance (in dollars per share)   $ 65.11 $ 65.11 $ 0  
Granted (in dollars per share)     102.06 65.11  
Vested (in dollars per share)     65.11 0  
Cancelled/forfeited (in dollars per share)     65.11 0  
Ending balance (in dollars per share)     $ 102.06 $ 65.11 $ 0
v3.22.0.1
Stockholders' Equity - Performance Based Restricted Stock Units (PSUs) (Details)
1 Months Ended 3 Months Ended 12 Months Ended
Nov. 02, 2020
Feb. 28, 2021
installment
shares
Mar. 31, 2020
shares
Mar. 31, 2021
shares
Dec. 31, 2021
USD ($)
shares
Dec. 31, 2020
shares
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]            
Shares issued for each PSU, ratio       1    
PSUs            
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]            
Granted (in shares)     87,918 75,828 71,000 88,000
Shares issued for each PSU, ratio   1        
Award vesting percentage per year 25.00%          
Actual performance percentage       172.00%    
Cancelled/forfeited (in shares)       12,090 12,000 0
Awards expected to be forfeited (in shares)         70,680  
Unrecognized stock-based compensation cost | $         $ 0  
PSUs | First Year            
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]            
Target performance percentage 90.00% 90.00%        
Award vesting percentage per year 50.00% 50.00%        
PSUs | Remaining Period            
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]            
Target performance percentage 100.00% 100.00%        
Award vesting percentage per year 100.00% 100.00%        
PSUs | Performance Target Three            
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]            
Target performance percentage 110.00% 110.00%        
Award vesting percentage per year 200.00% 150.00%        
PSUs | Share-based Payment Arrangement, Tranche Four            
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]            
Award vesting percentage per year   25.00%        
PSUs | Share-based Payment Arrangement, Tranche Five            
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]            
Award vesting percentage per year   6.25%        
Number of vesting installments | installment   12        
PSUs | Maximum            
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]            
Granted (in shares)   70,680        
Target performance percentage   150.00% 200.00%      
PSUs issued in 2020            
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]            
Stock-based compensation expense | $         3,400,000  
PSUs issued in 2021            
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]            
Stock-based compensation expense | $         $ 0  
v3.22.0.1
Stockholders' Equity - ESPP (Details) - USD ($)
$ in Thousands
12 Months Ended
Dec. 31, 2021
Dec. 31, 2020
Dec. 31, 2019
May 31, 2019
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]        
Contributions withheld for taxes $ 8,100 $ 9,600 $ 5,500  
Stock-based compensation expense $ 140,488 $ 64,433 $ 12,145  
Weighted-average period of recognition 4 months 24 days      
Common Class A | Common Stock        
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]        
Issuance of common stock under (ESPP in shares) 236,146 331,212 305,194  
Shares issuable pursuant to the ESPP        
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]        
Maximum deduction percentage of eligible compensation 15.00%     15.00%
Stock plan offering period 6 months      
Purchase price of common stock, percentage of fair value 85.00%      
Stock-based compensation expense $ 3,500 $ 3,200 $ 2,500  
Unrecognized stock-based compensation cost $ 1,900      
v3.22.0.1
Stockholders' Equity - Fair Value Assumptions - ESPP (Details) - $ / shares
12 Months Ended
Dec. 31, 2021
Dec. 31, 2020
Dec. 31, 2019
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]      
Dividend yield 0.00% 0.00% 0.00%
Shares issuable pursuant to the ESPP      
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]      
Risk-free interest rate, minimum 0.02% 0.10% 1.59%
Risk-free interest rate, maximum 0.07% 0.14% 2.35%
Expected volatility, minimum 47.00% 50.00% 36.00%
Expected volatility, maximum 58.00% 60.00% 43.00%
Minimum | Shares issuable pursuant to the ESPP      
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]      
Fair value of common stock (in shares) $ 41.24 $ 14.09 $ 6.02
Expected term (in years) 5 months 26 days 5 months 26 days 5 months 19 days
Maximum | Shares issuable pursuant to the ESPP      
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]      
Fair value of common stock (in shares) $ 44.87 $ 24.07 $ 6.92
Expected term (in years) 6 months 6 months 6 months
v3.22.0.1
Stockholders' Equity - Stock-based Compensation Expense (Details) - USD ($)
$ in Thousands
12 Months Ended
Dec. 31, 2021
Dec. 31, 2020
Dec. 31, 2019
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]      
Stock-based compensation expense $ 140,488 $ 64,433 $ 12,145
Stock-based compensation capitalized to internal-use software 4,446 2,034 441
Cost of revenue      
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]      
Stock-based compensation expense 7,227 3,889 1,410
Research and development      
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]      
Stock-based compensation expense 47,019 17,112 2,920
Sales and marketing      
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]      
Stock-based compensation expense 31,159 17,028 3,497
General and administrative      
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]      
Stock-based compensation expense $ 55,083 $ 26,404 $ 4,318
v3.22.0.1
Stockholders' Equity - Common Stock Warrant Liabilities (Details) - shares
12 Months Ended
May 21, 2019
Dec. 31, 2020
Common Class B    
Class of Stock [Line Items]    
Number of shares converted (in shares) 53,600,000 144,635
v3.22.0.1
Net Loss Per Share Attributable to Common Stockholders - Computation of EPS (Details) - USD ($)
$ / shares in Units, $ in Thousands
12 Months Ended
May 26, 2020
May 21, 2019
Dec. 31, 2021
Dec. 31, 2020
Dec. 31, 2019
Common Class A          
Class of Stock [Line Items]          
Net loss attributable to common stockholders     $ (212,120) $ (78,114) $ (12,084)
Weighted-average shares used in computing net loss per share attributable to common stockholders, basic and diluted (in shares)     110,541,000 84,319,000 16,022,000
Net loss per share attributable to common shareholders, basic and diluted (USD per share)     $ (1.92) $ (0.93) $ (0.75)
Shares issued (in shares) 6,900,000        
Common Class A | IPO          
Class of Stock [Line Items]          
Shares issued (in shares)   12,937,500      
Common Class B          
Class of Stock [Line Items]          
Net loss attributable to common stockholders     $ (10,577) $ (17,818) $ (39,466)
Weighted-average shares used in computing net loss per share attributable to common stockholders, basic and diluted (in shares)     5,512,000 19,233,000 52,328,000
Net loss per share attributable to common shareholders, basic and diluted (USD per share)     $ (1.92) $ (0.93) $ (0.75)
Conversion of stock (in shares)   53,600,000   144,635  
v3.22.0.1
Net Loss Per Share Attributable to Common Stockholders - Antidilutive Securities (Details) - shares
shares in Thousands
12 Months Ended
Dec. 31, 2021
Dec. 31, 2020
Dec. 31, 2019
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]      
Antidilutive securities (in shares) 19,341 12,471 13,540
Stock options      
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]      
Antidilutive securities (in shares) 4,369 6,963 11,269
Vesting of restricted stock units      
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]      
Antidilutive securities (in shares) 5,285 4,520 1,641
Early exercised stock options      
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]      
Antidilutive securities (in shares) 0 91 200
Convertible common stock warrants      
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]      
Antidilutive securities (in shares) 0 0 183
Restricted unreleased      
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]      
Antidilutive securities (in shares) 336 784 0
Shares issuable pursuant to the ESPP      
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]      
Antidilutive securities (in shares) 51 25 247
PSUs      
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]      
Antidilutive securities (in shares) 71 88
Convertible Debt Securities      
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]      
Antidilutive securities (in shares) 9,229 0 0
v3.22.0.1
Income Taxes - Loss Before Income Taxes (Details) - USD ($)
$ in Thousands
12 Months Ended
Dec. 31, 2021
Dec. 31, 2020
Dec. 31, 2019
Income Tax Disclosure [Abstract]      
United States $ (224,159) $ (86,842) $ (30,970)
Foreign 1,531 (20,570) (20,088)
Loss before income tax expense (benefit) $ (222,628) $ (107,412) $ (51,058)
v3.22.0.1
Income Taxes - Income Tax Expense (Details) - USD ($)
$ in Thousands
12 Months Ended
Dec. 31, 2021
Dec. 31, 2020
Dec. 31, 2019
Current tax provision (benefit):      
Federal $ 0 $ 0 $ 0
State 0 420 106
Foreign 322 1,050 386
Deferred tax provision (benefit):      
Federal (253) (10,631) 0
State 0 (2,319) 0
Foreign 0 0 0
Income tax expense (benefit) $ 69 $ (11,480) $ 492
v3.22.0.1
Income Taxes - Effective Tax Rate Reconciliation (Details)
12 Months Ended
Dec. 31, 2021
Dec. 31, 2020
Dec. 31, 2019
Income Tax Disclosure [Abstract]      
Provision at federal statutory tax rate 21.00% 21.00% 21.00%
State taxes, net of federal tax impact 0.00% 2.00% 0.00%
Change in valuation allowance (30.00%) (35.00%) (12.00%)
Foreign tax rate differential 0.00% (5.00%) (8.00%)
Acquisition related expenses 0.00% (2.00%) 0.00%
Stock-based compensation 2.00% 30.00% 0.00%
Research and development credits 5.00% 0.00% 0.00%
Restructuring 2.00% 0.00% 0.00%
Other 0.00% 0.00% (2.00%)
Effective tax rate 0.00% 11.00% (1.00%)
v3.22.0.1
Income Taxes - Deferred Tax Assets and Liabilities (Details) - USD ($)
$ in Thousands
Dec. 31, 2021
Dec. 31, 2020
Income Tax Disclosure [Abstract]    
Reserves and accruals $ 3,149 $ 941
Lease liability 20,415 17,481
Stock-based compensation 6,000 3,969
Net operating losses 162,260 109,281
Payroll taxes 454 0
Depreciation of property, plant and equipment 1,958 576
Research and development credits 16,636 0
Deferred revenue 7,821 0
Deferred tax assets 218,693 132,248
Deferred Revenue 0 (673)
Right-of-use Asset (19,073) (16,160)
Amortization of intangible assets (21,935) (31,188)
State Taxes (8,969) (4,319)
Other (4,724) (133)
Deferred tax liabilities (54,701) (52,473)
Valuation allowance (163,992) (80,028)
Net deferred tax (liabilities) assets $ 0 $ (253)
v3.22.0.1
Income Taxes - Narrative (Details) - USD ($)
$ in Thousands
12 Months Ended
Dec. 31, 2021
Dec. 31, 2020
Dec. 31, 2019
Operating Loss Carryforwards [Line Items]      
Income tax benefit $ (69) $ 11,480 $ (492)
Valuation allowance, increase (released) amount 79,500    
Unrecognized tax benefit that would impact income tax provision 7,800 3,000  
Payroll tax deferrals, CARES Act 1,700    
Federal      
Operating Loss Carryforwards [Line Items]      
Operating loss carryforwards 586,300 395,900  
Tax credit carryforward 17,800    
State      
Operating Loss Carryforwards [Line Items]      
Operating loss carryforwards 482,500 $ 316,500  
Tax credit carryforward $ 6,600    
v3.22.0.1
Income Taxes - Unrecognized Tax Benefits (Details) - USD ($)
$ in Thousands
12 Months Ended
Dec. 31, 2021
Dec. 31, 2020
Unrecognized Tax Benefits:    
Balance at beginning of year $ 3,186 $ 0
Increases related to prior year tax positions 3,113 2,328
Decreases related to prior year tax positions (31) 0
Increases related to current year tax positions 1,540 858
Balance at end of year $ 7,808 $ 3,186
v3.22.0.1
Information About Revenue and Geographic Areas (Details)
$ in Thousands
12 Months Ended
Dec. 31, 2021
USD ($)
segment
Dec. 31, 2020
USD ($)
Segment Reporting [Abstract]    
Number of reportable segments | segment 1  
Revenues from External Customers and Long-Lived Assets [Line Items]    
Total long-lived assets $ 166,961 $ 95,979
United States    
Revenues from External Customers and Long-Lived Assets [Line Items]    
Total long-lived assets 122,375 65,054
All other countries    
Revenues from External Customers and Long-Lived Assets [Line Items]    
Total long-lived assets $ 44,586 $ 30,925
v3.22.0.1
Subsequent Events (Details) - Revest Shares
$ in Millions
1 Months Ended 2 Months Ended
Jan. 31, 2022
USD ($)
Feb. 25, 2022
awardee
Feb. 25, 2022
USD ($)
Dec. 31, 2021
USD ($)
shares
Subsequent Event [Line Items]        
Nonvested shares sold that remain unvested (in shares) | shares       224,124
Receivable related to nonvested shares sold       $ 10.7
Subsequent Event        
Subsequent Event [Line Items]        
Proceeds from nonvested shares sold $ 10.7   $ 10.7  
Number of stockholders with change in service | awardee   1