FRESHWORKS INC., 10-K filed on 2/20/2025
Annual Report
v3.25.0.1
Cover - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2024
Feb. 14, 2025
Jun. 28, 2024
Document Information [Line Items]      
Document Type 10-K    
Document Annual Report true    
Document Period End Date Dec. 31, 2024    
Current Fiscal Year End Date --12-31    
Document Transition Report false    
Entity File Number 001-40806    
Entity Registrant Name Freshworks Inc.    
Entity Incorporation, State or Country Code DE    
Entity Tax Identification Number 33-1218825    
Entity Address, Address Line One 2950 S. Delaware Street    
Entity Address, Address Line Two Suite 201    
Entity Address, City or Town San Mateo    
Entity Address, State or Province CA    
Entity Address, Postal Zip Code 94403    
City Area Code 650    
Local Phone Number 513-0514    
Title of 12(b) Security Class A common stock, par value $0.00001 per share    
Trading Symbol FRSH    
Security Exchange Name NASDAQ    
Entity Well-known Seasoned Issuer Yes    
Entity Voluntary Filers No    
Entity Current Reporting Status Yes    
Entity Interactive Data Current Yes    
Entity Filer Category Large Accelerated Filer    
Entity Small Business false    
Entity Emerging Growth Company false    
ICFR Auditor Attestation Flag true    
Document Financial Statement Error Correction [Flag] false    
Entity Shell Company false    
Entity Public Float     $ 2,560
Documents Incorporated by Reference
Portions of the registrant's definitive proxy statement for the 2025 Annual Meeting of Stockholders (the "2025 Proxy Statement") are incorporated by reference into Part III of this Annual Report on Form 10-K to the extent stated herein. The 2025 Proxy Statement will be filed with Securities and Exchange Commission within 120 days of the registrant's fiscal year ended December 31, 2024.
    
Entity Central Index Key 0001544522    
Amendment Flag false    
Document Fiscal Year Focus 2024    
Document Fiscal Period Focus FY    
Class A Common Stock      
Document Information [Line Items]      
Entity Common Stock, Shares Outstanding   243,010,237  
Class B Common Stock      
Document Information [Line Items]      
Entity Common Stock, Shares Outstanding   58,521,703  
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Audit Information
 12 Months Ended
Dec. 31, 2024
Auditor Information [Abstract]  
Auditor Name Deloitte & Touche LLP
Auditor Location San Jose, California
Auditor Firm ID 34
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CONSOLIDATED BALANCE SHEETS - USD ($)
$ in Thousands
Dec. 31, 2024
Dec. 31, 2023
Current assets:    
Cash and cash equivalents $ 620,315 $ 488,121
Marketable securities 449,750 699,506
Accounts receivable, net of allowance of $8,885 and $8,562 122,910 97,179
Deferred contract acquisition costs 26,106 22,908
Prepaid expenses and other current assets 46,346 47,832
Total current assets 1,265,427 1,355,546
Property and equipment, net 25,893 22,747
Operating lease right-of-use assets 36,891 32,749
Deferred contract acquisition costs, noncurrent 22,534 19,764
Goodwill 147,014 6,181
Intangible assets, net 90,840 0
Deferred tax assets 8,499 10,013
Other assets 14,786 9,772
Total assets 1,611,884 1,456,772
Current liabilities:    
Accounts payable 1,619 3,485
Accrued liabilities 81,933 56,608
Deferred revenue 323,435 266,399
Income tax payable 728 722
Total current liabilities 407,715 327,214
Operating lease liabilities, non-current 30,221 26,795
Other liabilities 36,027 30,501
Total liabilities 473,963 384,510
Commitments and contingencies (Note 9)
Stockholders' equity:    
Preferred stock, value 0 0
Additional paid-in capital 4,874,133 4,713,522
Accumulated other comprehensive loss (338) (754)
Accumulated deficit (3,735,877) (3,640,509)
Total stockholders' equity 1,137,921 1,072,262
Total liabilities and stockholders' equity 1,611,884 1,456,772
Class A Common Stock    
Stockholders' equity:    
Common stock, value 2 2
Class B Common Stock    
Stockholders' equity:    
Common stock, value $ 1 $ 1
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CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($)
$ in Thousands
Dec. 31, 2024
Dec. 31, 2023
Accounts receivable, allowance for credit loss, current $ 8,885 $ 8,562
Preferred stock, par value (in dollars per share) $ 0.00001 $ 0.00001
Preferred stock, authorized (in shares) 10,000,000 10,000,000
Preferred stock, issued (in shares) 0 0
Preferred stock, outstanding (in shares) 0 0
Class A Common Stock    
Common stock, par value (in dollars per share) $ 0.00001 $ 0.00001
Common stock, authorized (in shares) 1,000,000,000 1,000,000,000
Common stock, issued (in shares) 244,965,000 208,940,016
Common stock, outstanding (in shares) 244,965,000 208,940,016
Class B Common Stock    
Common stock, par value (in dollars per share) $ 0.00001 $ 0.00001
Common stock, authorized (in shares) 350,000,000 350,000,000
Common stock, issued (in shares) 58,417,396 87,754,921
Common stock, outstanding (in shares) 58,417,396 87,754,921
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CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($)
shares in Thousands, $ in Thousands
 12 Months Ended
Dec. 31, 2024
Dec. 31, 2023
Dec. 31, 2022
Income Statement [Abstract]      
Revenue $ 720,420 $ 596,432 $ 497,999
Cost of revenue 113,330 103,369 95,772
Gross profit 607,090 493,063 402,227
Operating expense:      
Research and development 164,590 137,756 135,543
Sales and marketing 390,817 357,781 343,207
General and administrative 180,629 167,698 156,849
Restructuring charges 9,664 0 0
Total operating expenses 745,700 663,235 635,599
Loss from operations (138,610) (170,172) (233,372)
Interest and other income, net 47,773 46,403 12,582
Loss before income taxes (90,837) (123,769) (220,790)
Provision for income taxes 4,531 13,667 11,342
Net loss (95,368) (137,436) (232,132)
Net loss attributable to common stockholders - basic and diluted      
Net loss attributable to common stockholders - basic (95,368) (137,436) (232,132)
Net loss attributable to common stockholders - diluted $ (95,368) $ (137,436) $ (232,132)
Net loss per share attributable to common stockholders - basic and diluted      
Net loss per share to attributable common stockholders - basic (in dollars per share) $ (0.32) $ (0.47) $ (0.82)
Net loss per share attributable to common stockholders - diluted (in dollars per share) $ (0.32) $ (0.47) $ (0.82)
Weighted-average shares used in computing net loss per share attributable to common stockholders - basic and diluted      
Weighted-average shares used in computing net loss per share attributable to common stockholders - diluted (in shares) 300,843 293,087 284,587
Weighted-average shares used in computing net loss per share attributable to common stockholders - basic (in shares) 300,843 293,087 284,587
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CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2024
Dec. 31, 2023
Dec. 31, 2022
Statement of Comprehensive Income [Abstract]      
Net loss $ (95,368) $ (137,436) $ (232,132)
Other comprehensive income (loss), net of taxes:      
Changes in unrealized loss on marketable securities 1,310 7,105 (6,684)
Net change on cash flow hedging (894) (428) 0
Total other comprehensive income (loss), net of taxes: 416 6,677 (6,684)
Comprehensive loss $ (94,952) $ (130,759) $ (238,816)
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CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY - USD ($)
$ in Thousands
Total
Common Stock
Additional Paid-in Capital
Accumulated Other Comprehensive Income
Accumulated Deficit
Beginning balance (in shares) at Dec. 31, 2021   273,294,000      
Beginning balance at Dec. 31, 2021 $ 1,238,039 $ 3 $ 4,509,724 $ (747) $ (3,270,941)
Increase (Decrease) in Stockholders' Equity [Roll Forward]          
Issuance of common stock upon exercise of stock options (in shares)   407,000      
Issuance of common stock upon exercise of stock options 109   109    
Issuance of common stock upon vesting and settlement of restricted stock units, net of shares withheld for tax purposes (in shares)   14,570,000      
Issuance of common stock upon vesting and settlement of restricted stock units, net of shares withheld for tax purposes $ (167,745)   (167,745)    
Issuance of common stock under employee stock purchase plan, net of shares withheld and retired for taxes (in shares) 822,423 822,000      
Issuance of common stock under employee stock purchase plan, net of shares withheld and retired for taxes $ 10,870   10,870    
Stock-based compensation 209,361   209,361    
Other comprehensive income (6,684)     (6,684)  
Net loss (232,132)       (232,132)
Ending balance (in shares) at Dec. 31, 2022   289,093,000      
Ending balance at Dec. 31, 2022 1,051,818 $ 3 4,562,319 (7,431) (3,503,073)
Increase (Decrease) in Stockholders' Equity [Roll Forward]          
Issuance of common stock upon exercise of stock options (in shares)   360,000      
Issuance of common stock upon exercise of stock options 88   88    
Issuance of common stock upon vesting and settlement of restricted stock units, net of shares withheld for tax purposes (in shares)   6,615,000      
Issuance of common stock upon vesting and settlement of restricted stock units, net of shares withheld for tax purposes $ (68,621)   (68,621)    
Issuance of common stock under employee stock purchase plan, net of shares withheld and retired for taxes (in shares) 627,371 627,000      
Issuance of common stock under employee stock purchase plan, net of shares withheld and retired for taxes $ 7,271   7,271    
Stock-based compensation 212,465   212,465    
Other comprehensive income 6,677     6,677  
Net loss (137,436)       (137,436)
Ending balance (in shares) at Dec. 31, 2023   296,695,000      
Ending balance at Dec. 31, 2023 $ 1,072,262 $ 3 4,713,522 (754) (3,640,509)
Increase (Decrease) in Stockholders' Equity [Roll Forward]          
Issuance of common stock upon exercise of stock options (in shares) 338,000 338,000      
Issuance of common stock upon exercise of stock options $ 89   89    
Issuance of common stock and options in connection with acquisition (in shares)   687,000      
Issuance of common stock and options in connection with acquisition 12,874   12,874    
Issuance of common stock upon vesting and settlement of restricted stock units, net of shares withheld for tax purposes (in shares)   6,078,000      
Issuance of common stock upon vesting and settlement of restricted stock units, net of shares withheld for tax purposes $ (59,629)   (59,629)    
Issuance of common stock under employee stock purchase plan, net of shares withheld and retired for taxes (in shares) 569,003 569,000      
Issuance of common stock under employee stock purchase plan, net of shares withheld and retired for taxes $ 6,643   6,643    
Repurchase and retirement of common stock (in shares)   (985,000)      
Repurchase and retirement of common stock (15,535)   (15,535)    
Stock-based compensation 216,169   216,169    
Other comprehensive income 416     416  
Net loss (95,368)       (95,368)
Ending balance (in shares) at Dec. 31, 2024   303,382,000      
Ending balance at Dec. 31, 2024 $ 1,137,921 $ 3 $ 4,874,133 $ (338) $ (3,735,877)
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CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($)
 12 Months Ended
Dec. 31, 2024
Dec. 31, 2023
Dec. 31, 2022
Cash Flows Operating Activities:      
Net loss $ (95,368,000) $ (137,436,000) $ (232,132,000)
Adjustments to reconcile net loss to net cash provided by (used in) operating activities:      
Depreciation and amortization 19,415,000 12,144,000 11,504,000
Amortization of deferred contract acquisition costs 28,556,000 23,965,000 18,532,000
Non-cash lease expense 8,842,000 7,736,000 6,195,000
Stock-based compensation 216,706,000 210,707,000 207,696,000
Discount on amortization on marketable securities (15,992,000) (15,652,000) (1,627,000)
Deferred income taxes (12,642,000) (1,322,000) (2,405,000)
Other 1,397,000 119,000 816,000
Changes in operating assets and liabilities:      
Accounts receivable (17,145,000) (26,982,000) (18,892,000)
Deferred contract acquisition costs (34,524,000) (26,962,000) (28,560,000)
Prepaid expenses and other assets (1,393,000) (7,411,000) (8,141,000)
Accounts payable (2,204,000) (2,423,000) 77,000
Accrued and other liabilities 14,454,000 1,839,000 7,746,000
Deferred revenue 54,808,000 60,773,000 45,453,000
Operating lease liabilities (4,264,000) (12,917,000) (8,787,000)
Net cash provided by (used in) operating activities 160,646,000 86,178,000 (2,525,000)
Cash Flows from Investing Activities:      
Purchases of property and equipment (9,177,000) (2,069,000) (7,129,000)
Proceeds from sale of property and equipment 279,000 110,000 137,000
Capitalized internal-use software (5,485,000) (6,271,000) (5,116,000)
Purchases of marketable securities (620,573,000) (842,803,000) (848,560,000)
Sales of marketable securities 0 0 92,786,000
Maturities and redemptions of marketable securities 887,664,000 1,009,532,000 483,055,000
Business combination, net of cash acquired (213,905,000) 0 0
Net cash provided by (used in) investing activities 38,803,000 158,499,000 (284,827,000)
Cash Flows from Financing Activities:      
Proceeds from issuance of common stock under employee stock purchase plan, net 6,643,000 7,271,000 10,870,000
Proceeds from exercise of stock options 89,000 88,000 109,000
Payment of withholding taxes on net share settlement of equity awards (60,299,000) (67,978,000) (167,224,000)
Payment of deferred offering costs 0 0 (109,000)
Repurchase of common stock (13,693,000) 0 0
Net cash used in financing activities (67,260,000) (60,619,000) (156,354,000)
Net increase (decrease) in cash, cash equivalents and restricted cash 132,189,000 184,058,000 (443,706,000)
Cash, cash equivalents and restricted cash, beginning of period 488,216,000 304,158,000 747,864,000
Cash, cash equivalents and restricted cash, end of period 620,405,000 488,216,000 304,158,000
Reconciliation of cash, cash equivalents and restricted cash to consolidated balance sheets:      
Cash and cash equivalents 620,315,000 488,121,000 304,083,000
Restricted cash included in prepaid expenses and other current assets 3,000 0 3,000
Restricted cash included in other assets 87,000 95,000 72,000
Total cash, cash equivalents and restricted cash 620,405,000 488,216,000 304,158,000
Supplemental cash flow information:      
Cash paid for taxes 11,949,000 12,034,000 13,412,000
Non-cash investing and financing activities:      
Operating lease right-of-use assets obtained in exchange for operating lease obligations 13,275,000 7,461,000 14,903,000
Stock-based compensation capitalized as internal-use software 1,358,000 1,758,000 1,665,000
Stock And Common Stock Options Issued 12,874,000 0 0
Payables related to unsettled common stock repurchases $ 1,840,000 $ 0 $ 0
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Description of Business
 12 Months Ended
Dec. 31, 2024
Organization, Consolidation and Presentation of Financial Statements [Abstract]  
Description of Business
1. Description of Business
Freshworks Inc. is a software development company that provides software-as-a-service (SaaS) products that provide people-first, AI service software that organizations use to deliver exceptional customer and employee experiences. We are headquartered in San Mateo, California, and have subsidiaries located in the United States, India, Australia, the United Kingdom, Ireland, Germany, France, the Netherlands, and Singapore.
In June 2024, we acquired all outstanding shares of D42 Parent, Inc., an IT asset management company, for approximately $238.1 million. See Note 6—Business Combination.
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Summary of Significant Accounting Policies
 12 Months Ended
Dec. 31, 2024
Accounting Policies [Abstract]  
Summary of Significant Accounting Policies
2. Summary of Significant Accounting Policies
Basis of Presentation and Principles of Consolidation
The accompanying consolidated financial statements have been prepared in conformity with U.S. generally accepted accounting principles (GAAP). The consolidated financial statements include the accounts of Freshworks and its wholly owned subsidiaries, and all intercompany balances and transactions have been eliminated in consolidation.
Foreign Currency Remeasurement and Transactions
The functional currency of our foreign subsidiaries is the U.S. dollar. Accordingly, each foreign subsidiary remeasures monetary assets and liabilities at period-end exchange rates, while non-monetary items are remeasured at historical rates. Revenues and expenses are remeasured at the exchange rates in effect on the day the transaction occurred, except for those expenses related to non-monetary assets and liabilities which are remeasured at historical exchange rates. Remeasurement adjustments are recognized in interest and other income, net in the consolidated statements of operations, and have not been material for the years ended December 31, 2024, 2023, and 2022.
Use of Estimates
The preparation of consolidated financial statements in accordance with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities at the date of the consolidated financial statements, and the reported amounts of income and expense during the reporting periods. Significant items subject to such estimates and assumptions include, but are not limited to, the following:
•determination of standalone selling price (SSP) for each distinct performance obligation included in customer contracts with multiple performance obligations;
•allowance for doubtful accounts;
•benefit period of deferred contract acquisition costs;
•capitalization of internal-use software development costs;
•fair value of goodwill;
•useful lives of long-lived assets, including intangible assets;
•valuation of deferred tax assets;
•valuation of employee defined benefit plan and other compensation liabilities;
•fair value of share-based awards; and
•incremental borrowing rate used for operating leases.

Revenue Recognition
We derive revenue from subscription fees, related professional services, and following the acquisition of D42 Parent, Inc. in June 2024, software licenses.
Subscription Revenue
We sell subscriptions for our cloud-based solutions directly to customers and indirectly through channel partners through arrangements that are non-cancelable and non-refundable. Our subscription arrangements do not provide customers with the right to take possession of the software supporting the solutions and, as a result, are accounted for as service arrangements. We record revenue net of sales or value-added taxes.
We sell subscriptions to third-party resellers. The price at which subscriptions are sold to the reseller is typically discounted, as compared to the price at which we would sell to an end customer, in order to enable the reseller to realize a margin on the eventual sale to the end customer. As pricing to the reseller is fixed, and we lack visibility into the pricing provided by the reseller to the end customer, reseller revenue is recorded net of any reseller discounts.
Subscription revenue is primarily comprised of fees paid by our customers for accessing our cloud-based software during the term of the arrangement. Cloud-based services allow customers to use our multi-tenant software without requiring them to take possession of the software. Given that access to the cloud-based software represents a series of distinct services that comprise a single performance obligation that is satisfied over time, subscription revenue is recognized ratably over the contract term beginning on the commencement date of each contract, which is the date that the cloud-based software is made available to customers.
Professional Service Revenue
Professional services revenue is comprised of fees charged for services ranging from product configuration, data migration, systems integration, and training. We recognize professional services revenues as services are performed.
Software License Revenue
Software license revenue is generally sold as bundled arrangements that include the rights to a software license and maintenance and cloud-based software in some cases. Software license revenue consists of term licenses and is recognized upfront, upon making the software available to the customer. The associated software maintenance revenue is generally recognized ratably over the contract term as support and updates are provided to the customers over the term of the arrangement.
Customers with Multiple Performance Obligations
Some of our contracts with customers contain both subscriptions and professional services, and software licenses. For these contracts, we account for individual performance obligations separately. The transaction price is allocated to the separate performance obligations on the basis of relative standalone selling price (SSP). We determine SSP by taking into consideration historical selling price of these performance obligations in similar transactions, as well as current pricing practices and other observable inputs including, but not limited to, customer size and geography. As our go-to-market strategies evolve, we may modify our pricing practices in the future, which could result in changes to SSP.
Cost of Revenue
Cost of revenue consists mainly of personnel-related expenses (primarily including salaries, related benefits, and stock-based compensation) for employees associated with our cloud-based infrastructure, payment gateway fees, voice, product support, and professional service organizations, as well as costs incurred by us for third-party hosting capabilities. Cost of revenue also includes third-party license fees, amortization of acquired intangibles, amortization of capitalized internal-use software, and allocation of general overhead expenses such as facilities and information technology.
Research and Development
Research and development costs are expensed as incurred and consist primarily of personnel-related expenses (primarily including salaries, related benefits, and stock-based compensation) for our product development employees. Research and development expenses also include non-personnel-related expenses such as third-party services for product development and consulting expenses, depreciation expense related to equipment used in research and development activities, and allocation of our general overhead expenses.
Advertising Costs
Advertising costs are charged to sales and marketing expense in the consolidated statements of operations as incurred. We recognized $41.4 million, $41.2 million, and $47.2 million of advertising costs for the years ended December 31, 2024, 2023, and 2022, respectively.
Stock-Based Compensation
We issue stock options and restricted stock units (RSUs) to employees, consultants and directors under our 2021 Equity Incentive Plan (2021 Plan) and stock purchase rights granted under the 2021 Employee Stock Purchase Plan (ESPP) to employees based on the estimated fair value on the date of the grant. Stock-based compensation expense related to stock options and RSUs under the 2021 Plan and stock purchase rights under the ESPP is recognized in the consolidated statements of operations on a straight-line basis over the requisite service period, which is the vesting period of the respective awards. Forfeitures are accounted for when they occur.
The fair value of RSUs is based on the closing market price of our Class A common stock on the date of the grant. Prior to the Initial Public Offering (IPO) in 2021, we determined the fair value of the common stock underlying stock options and RSUs by considering numerous objective and subjective factors including, but not limited to: (i) independent third-party valuations, (ii) the prices, rights, preferences, and privileges of our redeemable convertible preferred stock relative to its common stock, (iii) the lack of marketability of the common stock, (iv) current business conditions and financial projections, and (iv) the likelihood of achieving an IPO or sale event. Subsequent to the IPO, the fair values of stock options and the stock purchase rights under the ESPP are estimated using the Black-Scholes option-pricing model, which requires the input of highly subjective assumptions. These assumptions represent our best estimates and involve inherent uncertainties and the application of our judgment. The main assumptions used in the Black-Scholes option-pricing model include:
Expected term—The expected term represents the period that stock-based awards are expected to be outstanding. The expected term for option grants is determined using the simplified method which represents the average of the contractual term of the option and the weighted-average vesting period of the option. We consider this appropriate as there is not sufficient historical information available to develop reasonable expectations about future exercise patterns and post-vesting employment termination behavior. The expected term for ESPP is the length of time from the grant date to the date on which the stock is purchased by the employees.
Stock price volatility—For the stock price volatility over the expected term where our common stock has sufficient trading history, we generally estimate the stock price volatility using the historical volatility of our own stock. If our common stock lacks sufficient trading history, the stock price volatility over the expected term is estimated based on the historical volatility of comparable companies with similar characteristics to those of ours.
Risk-free interest rate—The risk-free interest rate is based on the yield of the U.S. treasury debt securities commensurate with the expected term.
Dividend yield—Because we have never paid and have no intention to pay cash dividends on our common stock, the dividend yield is zero.
For the performance-based award granted to the then CEO, now Executive Chairman, with both a service-based vesting condition and a market condition (as discussed further in Note 12 —Stockholders' Equity and Stock-Based Compensation), we determined the fair value of the award by using the Monte Carlo simulation model. The main assumptions used in the Monte Carlo simulation model include stock price volatility, risk-free interest rate, dividend yield and the measurement period, which is the period over which our simulated stock prices are used to evaluate the possibility of achieving the specified stock price targets. Since both vesting conditions have to be met for each tranche of the award to ultimately vest, the associated stock-based compensation expense is recognized over the longer of the derived service period or the requisite service period, using the accelerated attribution method.
In February 2024, the Board approved performance awards (PRSUs) to be granted to certain members of the executive team subject to service and performance-based vesting conditions (referred to as Executive PRSUs in Note 12—Stockholders' Equity and Stock-Based Compensation). The performance-based vesting conditions include revenue and free cash flow targets. The fair value of each Executive PRSU is based on the fair value of our common stock on the date of grant. Stock-based compensation associated with these Executive PRSUs is recognized using the accelerated attribution method over the requisite service period, based on Freshworks' periodic assessment of the probability that the performance will be achieved. If the performance goals are not met as of the end of the performance period, no compensation expense is recognized and any previously recognized compensation expense is reversed.
Income Taxes
Income taxes are accounted for under the asset and liability method. Deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases and operating loss and tax credit carryforwards. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are
expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date. A valuation allowance is recorded for deferred tax assets if it is more likely than not that some portion or all of the deferred tax assets will not be realized. As of December 31, 2024 and 2023, we have recorded a full valuation allowance against our U.S. deferred tax assets.
We recognized the effect of income tax positions only if those positions are more likely than not of being sustained. Recognized income tax positions are measured at the largest amount that is more likely than not of being realized. Changes in recognition or measurement are reflected in the period in which the change in judgment occurs.
We recognize interest and penalties related to income tax matters as a component of income tax expense.
Cash and Cash Equivalents
Cash and cash equivalents consist of deposits held at financial institutions, money market funds, as well as highly liquid investments with an original maturity of three months or less when purchased. Cash and cash equivalents are recorded at cost, which approximates fair value.
Marketable Securities
Marketable securities consist primarily of debt securities such as corporate bonds, commercial paper, U.S. treasury securities, U.S. government agency securities and certificates of deposit. These securities are classified as available-for-sale securities at the time of purchase as they represent funds readily available for current operations, and we have the ability and intent to liquidate them at any time to meet our operating cash needs, if necessary. All available-for-sale debt securities are recorded at their estimated fair value, with changes in fair value recognized as unrealized gains or losses in accumulated other comprehensive income. For available-for-sale debt securities in an unrealized loss position, we evaluate whether a current expected credit loss exists based on available information relevant to the credit rating of the security, current economic conditions and reasonable and supportable forecasts. Expected credit losses are recorded in interest and other income, net, on the consolidated statements of income, and any remaining unrealized losses are recognized in accumulated other comprehensive income or loss in the stockholders' equity section of the consolidated balance sheets. Realized gains and losses are determined based on the specific identification method and are reported in interest and other income, net in the consolidated statements of operations. There were no credit losses or impairment on available-for-sale debt securities recognized for the years ended December 31, 2024, 2023, and 2022.
Marketable securities also included mutual funds comprised of certain term bonds. These mutual funds meet certain criteria for equity investments in accordance with ASU 2016-01, Recognition and Measurement of Financial Assets and Liabilities. Under this guidance, we measure mutual funds at their estimated fair value, with changes in fair value recognized in interest and other income, net in the consolidated statements of operations.
Accounts Receivable and Allowance for Credit Losses
Trade accounts receivable are recorded at the invoiced amount, net of allowance for credit losses. The allowance is based on our assessment of the collectability of accounts and is recorded as an offset to revenue and deferred revenue. We regularly review the adequacy of the allowance by considering the age of each outstanding invoice and the collection history.
Concentrations of Risk
Financial instruments that potentially expose us to significant concentration of credit risk consist primarily of cash, cash equivalents, marketable securities, and accounts receivable. Our cash and cash equivalents and marketable securities are generally held with large financial institutions and are in excess of the federally insured limits provided on such deposits. In addition, we have cash and cash equivalents held in international bank accounts, which are denominated primarily in euros, British pounds, and Indian rupees.
There were no customers that individually exceeded 10% of our revenue for the years ended December 31, 2024, 2023, and 2022, or that represented 10% or more of our consolidated accounts receivable balance as of December 31, 2024 and 2023.
We primarily rely upon third-party cloud infrastructure partner, Amazon Web Services (AWS), to serve customers and operate certain aspects of its services. Any disruption of this cloud infrastructure partner would impact our operations and our business could be adversely impacted.
Derivative Instruments
We enter into foreign currency forward contracts, all of which were designated as cash flow hedges, in order to manage the volatility of cash flows that relate to cost of revenues and operating expenses denominated in Indian rupee. All derivative instruments are measured at fair value based upon quoted market prices for comparable instruments and as such, classified within Level 2 of the fair value hierarchy. Derivative assets and liabilities are presented on a gross basis on the consolidated balance sheets under prepaid expenses and other current assets and accrued liabilities, respectively.
Gains or losses related to cash flow hedges are recorded as a component of accumulated other comprehensive income (AOCI) on the consolidated statements of stockholders' equity until the forecasted transaction occurs in earnings. When the forecasted transaction occurs, the related gains and losses are reclassified into earnings within the financial statement line item associated with the underlying hedged transaction. If the underlying hedged transaction does not occur, or it becomes probable that the hedged transaction will not occur, the cumulative unrealized gain or loss is reclassified immediately from AOCI into earnings within interest and other income. Changes in the fair value of currency forward exchange contracts due to changes in time value were excluded from the assessment of effectiveness. The initial value of this excluded component is amortized on a straight-line basis over the life of the hedging instrument and recognized in the financial statement line item to which the hedge relates. A majority of the balance related to foreign exchange derivative instruments included in AOCI at December 31, 2024 is expected to be reclassified into earnings within 12 months.
Derivative instruments are classified in the consolidated statements of cash flows as cash from operating activities, which reflect the classification of the underlying hedged transactions.
We do not use derivative financial instruments for trading or speculative purposes.
Entering into derivative instruments exposes us to credit risk to the extent that the counterparties are unable to meet the terms of the contract. We mitigate this credit risk by transacting with major financial institutions with high credit ratings. In addition, we have entered into master netting arrangements that mitigate credit risk by permitting net settlement of transactions. As such, our exposure is not considered significant. We do not have any collateral requirements with counterparties.
Deferred Contract Acquisition Costs
Deferred contract acquisition costs are incremental costs that are associated with acquiring customer contracts and consist primarily of sales commissions and the associated payroll taxes and certain referral fees paid to third-party resellers. The costs incurred upon the execution of initial and expansion contracts are primarily deferred and amortized over an estimated benefit period of three years. The estimated benefit period is determined by taking into consideration our contracts with customers, technology life cycle and other factors. We consider the estimated benefit period to exceed the initial contract term for certain costs because of anticipated renewals and because sales commission rates for renewal contracts are not commensurate with sales commissions for initial contracts. We include amortization of deferred commissions in sales and marketing expense in our consolidated statements of operations. There was no impairment loss in relation to the incremental selling costs capitalized for the years ended December 31, 2024, 2023, and 2022.
We have elected to apply the practical expedient under Accounting Standards Codification (ASC) No. 340-40—Other Assets and Deferred Costs to account for costs incurred in obtaining a contract with a benefit period of one year or less as commission expenses. Deferred contract acquisition costs are included in sales and marketing expense in our consolidated statements of operations.
Property and Equipment, net
Property and equipment, net, including capitalized internally-developed software, is stated at cost less accumulated depreciation. Depreciation is calculated using the straight-line method over the estimated useful lives of the respective assets as follows:
Estimated Useful Life
Computers3 years
Capitalized internal-use software3 years
Office equipment, furniture and fixtures5 years
Motor vehicles5 years
Leasehold improvements
Lesser of lease term or 5 years
Capitalized Internal-Use Software
We capitalize costs incurred in our software development projects and implementation of certain enterprise cloud computing services during the application development stage . Costs related to preliminary project activities and post implementation activities are expensed as incurred. Once the development project is available for general release, capitalization ceases, and we estimate the useful life of the asset and begin amortization. Internal-use software and cloud computing services are amortized on a straight-line basis over its estimated useful life.
Long-Lived Assets (Including Goodwill)
Long-lived assets with finite lives include property and equipment, capitalized internal-use software and right-of-use (ROU) assets. We evaluate long-lived assets for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. Recoverability of assets held and used is measured by comparison of the carrying amount of an asset or an asset group to estimated undiscounted future net cash flows expected to be generated by the asset or asset group. If the carrying amount of an asset or asset group exceeds these estimated future cash flows, an impairment charge is recognized in the amount by which the carrying amount of the assets exceeds the fair value of the asset or asset group.
Goodwill is not amortized but rather is tested for impairment annually in the fourth quarter, or more frequently if events or changes in circumstances indicate that goodwill may be impaired. We elected to bypass the qualitative assessment, and performed a quantitative goodwill impairment test. Goodwill impairment is recognized when the quantitative assessment results in the carrying value of the reporting unit exceeding its fair value, in which case an impairment charge in the amount of such excess is recorded to goodwill, limited to the amount of goodwill. We did not recognize any impairment of goodwill during the years ended December 31, 2024, 2023, and 2022.
Deferred Revenue
Deferred revenue consists of customer billings in advance of revenue being recognized from our subscription and professional services arrangements. Customers are invoiced for subscription service arrangements in advance for monthly, quarterly, semi-annual and annual subscription plans. Our payment terms generally provide that customers pay the invoiced portion of the total arrangement fee either in advance or within 30 days from the invoice date.
Net Loss per Share Attributable to Common Stockholders
Basic and diluted net loss per share attributable to common stockholders are presented in conformity with the two-class method required for participating securities. 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 number of weighted-average shares of common stock outstanding during the reporting period. Diluted net loss per share attributable to common stockholders adjusts basic net loss per share for the potentially dilutive impact of outstanding stock options, RSUs, PRSUs, and stock purchases rights granted under the ESPP. The dilutive potential shares are computed using the treasury stock method. Because we have reported net losses for all periods presented, all potentially dilutive securities are considered antidilutive, and accordingly, diluted net loss per share is the same as basic net loss per share.
Defined Benefit Plan
Employees in India are entitled to benefits under the Gratuity Act, a defined benefit retirement plan covering eligible employees. The plan requires employers to provide for a lump-sum payment to eligible employees at retirement, death, and incapacitation or on termination of employment, of an amount based on the respective employee’s salary and tenure of employment. Employees in India are also entitled to a defined benefit plan with benefits based on an employee’s accumulated leave balance and salary. Both plans are unfunded arrangements.
Current service costs are accrued in the period to which they relate. The benefit obligations are calculated by a qualified actuary using the projected unit credit method and the unfunded position is recognized as a liability in the consolidated balance sheets. In measuring the defined benefit obligations, we use a discount rate at the reporting date based on yields of local government treasury bills denominated in the same currency in which the benefits are expected to be paid, with maturities approximating the terms of our obligations.
Because the plan is unfunded, no annual contributions are required to be made as per applicable regulations. Disclosures required under ASC 715—Compensation—Retirement Benefits, have been omitted because we have deemed them immaterial to our consolidated financial statements. The benefit plans had a plan benefit obligation of $11.4 million and $11.9 million as of December 31, 2024 and 2023, respectively. The long-term portion for the amount of $9.6 million and $10.5 million is included in other liabilities in the consolidated balance sheets as of December 31, 2024 and 2023, respectively. The current portion for the amount of $1.8 million and $1.4 million is included in accrued expenses in the consolidated balance sheets as of December 31, 2024 and 2023, respectively.
Leases
We lease office space under operating leases with expiration dates through 2032. We determine whether an arrangement constitutes a lease and records lease liabilities and ROU assets on our consolidated balance sheets at the lease commencement date. Lease liabilities are measured based on the present value of the total lease payments not yet paid, discounted based on either the rate implicit in the lease or our incremental borrowing rate (the estimated rate we would be required to pay for a collateralized borrowing equal to the total lease payments over the term of the lease), whichever is more readily determinable. The incremental borrowing rate is based on an estimate of our expected unsecured borrowing rate for its notes, adjusted for tenor and collateralized security features. Lease liabilities due within 12 months are included within accrued liabilities on our consolidated balance sheets. ROU assets are measured based on the corresponding lease liability adjusted for (i) payments made to the lessor at or before the lease commencement date, (ii) initial direct costs incurred, and (iii) tenant incentives received, incurred or payable under the lease. Recognition of rent expense begins when the lessor makes the underlying asset available to us. We do not assume renewals or early terminations of its leases unless it is reasonably certain to exercise these options at commencement and does not allocate consideration between lease and non-lease components.
For short-term leases, we record rent expense in our consolidated statements of operations on a straight-line basis over the lease term and records variable lease payments as incurred.
Restructuring Charges
Costs associated with our restructuring plan primarily consist of severance payments, benefits continuation, and other employee separation costs. In general, we record involuntary employee-related exit costs when we communicate to employees that they are entitled to receive such benefits and the amount can be reasonably estimated. Related costs are included in restructuring charges in the consolidated statements of operations. The remaining restructuring liability is included in accrued liabilities in the consolidated balance sheet.
Recent Accounting Pronouncements
Accounting Standards Recently Adopted
In November 2023, the Financial Accounting Standards Board (FASB) issued ASU 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures. ASU 2023-07 requires a public entity to disclose significant segment expenses and other segment items on an annual and interim basis and to provide in interim periods all disclosures about a reportable segment's profit and loss and assets that are currently required annually. Public entities with a single reportable segment are required to provide the new disclosures and all the disclosures required under ASC 280. This authoritative guidance is required to be applied retrospectively and effective for Freshworks starting in its annual disclosures for 2024 and interim periods starting 2025. We adopted this ASU on January 1, 2024. See Note 11—Segment and Geographic Information for additional details.
Accounting Standards Not Yet Adopted
In December 2023, the FASB issued ASU 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures. ASU 2023-09 requires entities to provide more information in the rate reconciliation table and about income taxes paid, including certain disclosures that would be disaggregated by jurisdiction and other categories. This authoritative guidance should be applied prospectively and will be effective for us starting in our annual disclosures for 2025. Retrospective application is permitted. This guidance is only related to disclosures and is not expected to have a significant impact on our consolidated financial statements.
In November 2024, the FASB issued ASU No. 2024-03, Income Statement-Reporting Comprehensive Income-Expense Disaggregation Disclosures. Additionally, in January 2025, the FASB issued ASU 2025-01 to clarify the effective date of ASU 2024-03. The standard provides guidance to expand disclosures related to the disaggregation of income statement expenses, which requires more detailed information about specified categories of expenses included in certain expense captions presented on the face of the income statement. This authoritative guidance is effective for us starting in our annual disclosures for 2027 and interim periods starting 2028. Early adoption is permitted. The amendments may be applied either (1) prospectively to financial statements issued for reporting periods after the effective date of this ASU or (2) retrospectively to all prior periods presented in the financial statements. This guidance is only related to disclosure and is not expected to have a significant impact on our consolidated financial statements.
v3.25.0.1
Cash Equivalents and Marketable Securities
 12 Months Ended
Dec. 31, 2024
Investments, Debt and Equity Securities [Abstract]  
Cash Equivalents and Marketable Securities
3. Cash Equivalents and Marketable Securities
Cash equivalents and available-for-sale debt securities consisted of the following as of December 31, 2024 and 2023 (in thousands):
December 31, 2024
Amortized CostUnrealized GainsUnrealized LossesFair Value
Cash equivalents:
Money market funds$507,655 $— $— $507,655 
Total cash equivalents507,655 — — 507,655 
Debt securities:
U.S. treasury securities215,773 612 (17)216,368 
U.S. government agency securities144,474 321 (12)144,783 
Corporate debt securities62,070 101 (21)62,150 
Certificates of deposit
26,449 — — 26,449 
Total debt securities448,766 1,034 (50)449,750 
Total cash equivalents and debt securities$956,421 $1,034 $(50)$957,405 
December 31, 2023
Amortized CostUnrealized GainsUnrealized LossesFair Value
Cash equivalents:
Money market funds$77,832 $— $— $77,832 
U.S. treasury securities239,727 22 — 239,749 
U.S. government agency securities8,388 1 — 8,389 
Corporate debt securities36,905 — — 36,905 
Total cash equivalents362,852 23 — 362,875 
Debt securities:
U.S. treasury securities264,554 339 (398)264,495 
U.S. government agency securities366,946 571 (824)366,693 
Corporate debt securities66,777 72 (109)66,740 
Total debt securities698,277 982 (1,331)697,928 
Total cash equivalents and debt securities$1,061,129 $1,005 $(1,331)$1,060,803 
The following table presents gross unrealized losses and fair values for the securities that were in a continuous unrealized loss position as of December 31, 2024 and 2023 (in thousands):
December 31, 2024
Less than 12 monthsGreater than 12 monthsTotal
Fair ValueUnrealized LossFair ValueUnrealized LossFair ValueUnrealized Loss
U.S. treasury securities$13,819 $(16)$4,993 $(1)$18,812 $(17)
U.S. government agency securities8,197 (7)9,995 (5)18,192 (12)
Corporate debt securities7,998 (19)5,982 (2)13,980 (21)
Total$30,014 $(42)$20,970 $(8)$50,984 $(50)
December 31, 2023
Less than 12 monthsGreater than 12 monthsTotal
Fair ValueUnrealized LossFair ValueUnrealized LossFair ValueUnrealized Loss
U.S. treasury securities$60,869 $(159)$42,667 $(239)$103,536 $(398)
U.S. government agency securities145,594 (364)80,455 (460)226,049 (824)
Corporate debt securities14,749 (59)12,934 (50)27,683 (109)
Total$221,212 $(582)$136,056 $(749)$357,268 $(1,331)
The amortized cost and fair value of the available-for-sale debt securities based on contractual maturities are as follows (in thousands):
December 31, 2024
Amortized CostFair Value
Due within one year$396,130 $396,898 
Due after one year but within five years52,636 52,852 
Total$448,766 $449,750 
Accrued interest receivable of $3.3 million and $4.4 million was classified as prepaid expenses and other current assets in the consolidated balance sheets as of December 31, 2024 and December 31, 2023, respectively.
In addition to available-for-sale debt securities, marketable securities also include term bond mutual funds, which are measured at fair value. As of December 31, 2024 we did not have any term bond mutual funds. As of December 31, 2023, the fair value of the term bond mutual funds was $1.6 million. The change in fair value of the term bond mutual funds is recorded in interest and other income, net in the consolidated statements of operations. The realized and unrealized gains recognized in the consolidated statements of operations for the term bond mutual funds were not material during the years ended December 31, 2024, 2023, and 2022.
v3.25.0.1
Fair Value Measurements
 12 Months Ended
Dec. 31, 2024
Fair Value Disclosures [Abstract]  
Fair Value Measurements
4. Fair Value Measurements
We measure our financial assets at fair value each reporting period using a fair value hierarchy that prioritizes the use of observable inputs and minimizes the use of unobservable inputs when measuring fair value. The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1 measurements) and the lowest priority to measurements involving significant unobservable inputs (Level 3 measurements). The three levels of the fair value hierarchy are as follows:
Level 1—Inputs are observable and reflect quoted prices in active markets for identical assets or liabilities that we have the ability to access at the measurement date.
Level 2—Inputs other than quoted prices included within Level 1 that are observable, either directly or indirectly.
Level 3—Inputs that are unobservable.
Money market funds and U.S. treasury securities are classified within Level 1 because they are valued using quoted market prices or alternative pricing sources and models utilizing market observable inputs. Other debt securities and investments are classified within Level 2 if the investments are valued using model driven valuations which use observable inputs such as quoted market prices, benchmark yields, reported trades, broker/dealer quotes or alternative pricing sources with reasonable levels of price transparency. Available-for-sale debt securities are held by custodians who obtain investment prices from a third-party pricing provider that incorporates standard inputs in various asset price models.
We did not have any assets or liabilities subject to fair value remeasurement on a nonrecurring basis as of December 31, 2024 and 2023.
Assets and Liabilities Measured at Fair Value on a Recurring Basis
The following table represents the fair value hierarchy for our financial assets measured at fair value on a recurring basis as of December 31, 2024 and 2023 (in thousands):
December 31, 2024
Fair Value Measured Using
Level 1Level 2Total
Financial assets:
Cash equivalents:
Money market funds$507,655 $— $507,655 
Marketable securities:
U.S. treasury securities216,368 — 216,368 
U.S. government agency securities— 144,783 144,783 
Corporate debt securities— 62,150 62,150 
Certificates of deposit
— 26,449 26,449 
Total financial assets$724,023 $233,382 $957,405 
December 31, 2023
Fair Value Measured Using
Level 1Level 2Total
Financial assets:
Cash equivalents:
Money market funds$77,832 $— $77,832 
U.S. treasury securities239,749 — 239,749 
U.S. government agency securities— 8,389 8,389 
Corporate debt securities— 36,905 36,905 
Marketable securities:
U.S. treasury securities264,495 — 264,495 
U.S. government agency securities— 366,693 366,693 
Corporate debt securities— 66,740 66,740 
Term bond mutual funds— 1,578 1,578 
Total financial assets$582,076 $480,305 $1,062,381 
The fair value of derivative assets and liabilities as of December 31, 2024 and 2023, and all related unrealized and realized gains and losses during the year ended December 31, 2024 and 2023, were not material. As of December 31, 2024 and 2023, the total notional amount of outstanding designated foreign currency forward contacts were $50.5 million and $55.8 million, respectively.
v3.25.0.1
Balance Sheet Components
 12 Months Ended
Dec. 31, 2024
Organization, Consolidation and Presentation of Financial Statements [Abstract]  
Balance Sheet Components
5. Balance Sheet Components
Property and Equipment, net
The following table summarizes property and equipment, net as of December 31, 2024 and 2023 (in thousands):
December 31,
20242023
Computers$19,694 $17,188 
Capitalized internal-use software34,255 28,259 
Office equipment6,700 4,357 
Furniture and fixtures10,066 8,886 
Motor vehicles400 808 
Leasehold improvements7,847 5,768 
Construction in progress13 751 
Total property and equipment78,975 66,017 
Less: accumulated depreciation and amortization(53,082)(43,270)
Property and equipment, net$25,893 $22,747 
The following table summarizes depreciation expense and internal-use software capitalization and amortization expense for the years ended December 31, 2024, 2023 and 2022 (in thousands):
Year Ended December 31,
202420232022
Capitalization of costs associated with internal-use software$6,843 $8,029 $6,781 
Amortization expense of capitalized internal-use software5,631 5,106 3,193 
Depreciation expense5,623 6,735 6,720 
As of December 31, 2024 and 2023, the net carrying value of capitalized internal-use software was $14.5 million and $14.1 million, respectively.
Accrued and Other Liabilities
The following table summarizes accrued liabilities as of December 31, 2024 and 2023 (in thousands):
December 31,
20242023
Accrued compensation$28,269 $20,976 
Accrued reseller commissions11,569 9,641 
Accrued advertising and marketing expenses4,414 2,095 
Advanced payments from customers4,487 4,265 
Accrued taxes14,747 10,964 
Operating lease liabilities, current8,073 2,699 
Contributions withheld for employee stock purchase plan1,127 1,298 
Unsettled share repurchases
1,840 — 
Other accrued expenses7,407 4,670 
Total accrued liabilities$81,933 $56,608 
Noncurrent liabilities include $21.1 million and $22.7 million of long term accrued compensation as of December 31, 2024 and 2023, respectively.
v3.25.0.1
Business Combination
 12 Months Ended
Dec. 31, 2024
Goodwill and Intangible Assets Disclosure [Abstract]  
Business Combination
6. Business Combination
In June 2024, we acquired all outstanding shares of D42 Parent, Inc., an IT asset management company. Through the combination, we are able to offer a more comprehensive IT solution for customers. The total purchase price consideration is $238.1 million, which consists of $225.3 million in cash paid, including $11.4 million of cash acquired, $8.9 million in common stock issued, and $3.9 million in assumed and converted stock option awards.
As part of the business combination, we assumed certain unvested, in-the-money options held by D42 Parent, Inc.'s founder, which were converted into 511,770 replacement stock option awards issued pursuant to our 2021 Equity Incentive Plan. These awards have a fair value of $5.7 million and will vest two years from the closing date subject to continued employment. The portion of the fair value of the assumed and converted awards related to pre-combination vesting was $3.9 million and is included as consideration discussed above, and the remaining $1.8 million is post-combination expense that will be recognized as compensation expense over the remaining service period. Refer to Note 12—Stockholders' Equity and Stock-Based Compensation.
Transaction costs associated with the acquisition were approximately $2.1 million for the year ended December 31, 2024 and were recorded in general and administrative expense.
We expect to finalize the valuation as soon as is practicable, but not later than one year from the acquisition date. The following table summarizes the preliminary fair value of assets acquired and liabilities assumed as of the date of acquisition:
Amount
(in thousands)
Assets acquired:
Cash
$11,432 
Trade accounts and other receivables
8,916 
Prepaid expenses and other current assets
1,792 
Customer relationships
67,600 
Developed technology
30,700 
Trademarks
700 
Goodwill
140,833 
Total
$261,973 
Liabilities assumed:
Accounts payable and other current liabilities
3,510 
Deferred revenue
6,080 
Deferred tax liability
14,278 
Total
23,868 
Total purchase price consideration
$238,105 
The excess of purchase consideration over the fair value of net tangible and identifiable intangible assets and liabilities acquired was recorded as goodwill. The goodwill recognized is not deductible for U.S. income tax purposes. We expect to derive value from the combination of D42 Parent, Inc.’s existing customer base, IT asset management technology, and trademarks, as well as through other synergies. The deferred tax liability was primarily driven by the fair value of intangible assets. The fair values assigned to assets acquired and liabilities assumed are based on management’s best estimates and assumptions as of the acquisition date and are considered preliminary pending finalization of the valuation pertaining to deferred tax liabilities.
The customer relationships, developed technology, and trademarks are amortized on a straight-line basis over their estimated useful lives of 8 years, 6 years, and 1 year, respectively. We used the income approach to estimate the fair value of intangible assets acquired.
We have included the operating results of D42 Parent, Inc. in our consolidated financial statements since the date of the acquisition. The revenue and net loss of D42 Parent, Inc. included in the consolidated statement of operations from the date of acquisition to December 31, 2024 were not material.
The following unaudited supplemental pro forma financial information is provided for informational purposes only and summarizes our combined results of operations as if the acquisition had occurred on January 1, 2023 (in thousands):
Year Ended December 31,
20242023
Revenue
$735,591 $631,608 
Net loss
(99,999)(151,546)
The unaudited supplemental pro forma results reflect certain adjustments for the amortization of acquired intangible assets, recognition of stock-based compensation, and acquisition-related transaction expenses. Such pro forma amounts are not necessarily indicative of the results that actually would have occurred had the acquisition been completed on the date indicated, nor are they indicative of our future operating results.
v3.25.0.1
Goodwill and Intangible Assets, Net
 12 Months Ended
Dec. 31, 2024
Goodwill and Intangible Assets Disclosure [Abstract]  
Goodwill and Intangible Assets, Net
7. Goodwill and Intangible Assets, Net
Goodwill
The change in the carrying amounts of goodwill is presented below (in thousands):
Balance as of December 31, 2023$6,181 
Goodwill acquired
140,833 
Balance as of December 31, 2024$147,014 
The addition to goodwill during the year ended December 31, 2024 was associated with the acquisition of D42 Parent, Inc.. There was no changes to goodwill during the year ended December 31, 2023.
Intangible Assets, Net
Acquired intangible assets consist of developed technology, customer relationships, and trademarks and are amortized on a straight-line basis over their estimated useful lives. The following table summarizes acquired intangible assets as of December 31, 2024 (amounts in thousands):
December 31, 2024
Gross AmountAccumulated AmortizationNet Carrying ValueWeighted Average Remaining Useful Life
(in years)
Developed technology$41,196 $(13,423)$27,773 5.4
Customer relationships69,200 (6,433)62,767 7.4
Trademarks
$700 $(400)$300 0.4
Total$111,096 $(20,256)$90,840 
Total amortization of acquired intangible assets for the years ended December 31, 2024, 2023, and 2022 is as follows (in thousands):
Year Ended December 31,
202420232022
Cost of revenue$2,927 $158 $1,191 
Sales and marketing$5,233 145400
Total amortization expense$8,160 $303 $1,591 
As of December 31, 2024, expected future amortization expense related to acquired intangible assets is as follows (in thousands):
Year Ending December 31,
2025$13,854 
202613,553 
202713,553 
202813,591 
202913,553 
Thereafter
22,736 
Total future amortization
$90,840 
v3.25.0.1
Leases
 12 Months Ended
Dec. 31, 2024
Leases [Abstract]  
Leases
8. Leases
We have operating leases primarily for office space. The leases have remaining lease terms of one to eight years, some of which include options to extend the lease for up to six years. Our leases do not contain any residual value guarantee.
The following table presents various components of the lease costs (in thousands):
Year Ended December 31,
Operating Leases20242023
Operating lease cost$12,093 $10,415 
Short-term lease cost489 415 
Variable lease cost3,842 3,190 
Total lease cost
$16,424 $14,020 
The weighted-average remaining term of our operating leases and the weighted-average discount rate used to measure the present value of the operating lease liabilities are as follows:
December 31,
Lease Term and Discount Rate20242023
Weighted-average remaining lease term (in years)4.345.21
Weighted-average discount rate9.0 %9.1 %
The following table presents supplemental information arising from lease transactions. Cash payments related to short-term leases are not included in the measurement of the operating lease liabilities, and as such, are excluded from the amounts below (in thousands):
Year Ended December 31,
Supplemental Cash Flow Information:20242023
Cash payments included in the measurement of operating lease liabilities$6,808 $15,526 
Operating ROU assets obtained in exchange for lease obligations13,275 7,461 
Maturities of the operating lease liabilities are as follows (in thousands):
Year Ending December 31:Operating Leases
2025$12,032 
202611,278 
20279,522 
20288,628 
20294,335 
Thereafter3,590 
Total lease payments49,385 
Less: imputed interest(11,091)
Present value of operating lease liabilities$38,294 
As of December 31, 2024, there were no future payments related to signed leases that have not yet commenced.
v3.25.0.1
Commitment and Contingencies
 12 Months Ended
Dec. 31, 2024
Commitments and Contingencies Disclosure [Abstract]  
Commitments and Contingencies
9. Commitments and Contingencies
Contractual Commitments
Our contractual commitments primarily consist of third-party cloud infrastructure agreements and service subscription purchase arrangements used to support operations at the enterprise level. Future minimum payments under our non-cancelable purchase commitments as of December 31, 2024 are presented in the table below (in thousands):
Year ending December 31,Contractual Commitments
2025$64,753 
202672,045 
202773,569 
202868,319 
2029133 
Total$278,819 
Litigation and Loss Contingencies
On November 1, 2022, a purported Company stockholder filed a securities class action complaint in the U.S. District Court for the Northern District of California against us, certain of our current officers and directors, and underwriters of our initial public offering (IPO). On April 14, 2023, the court-appointed lead plaintiff filed a consolidated amended class action complaint. The complaint alleges that defendants violated Sections 11, 12(a)(2), and 15 of the Securities Act of 1933 by making material misstatements or omissions in offering documents filed in connection with the IPO. The complaint seeks unspecified damages, interest, fees, costs, and rescission on behalf of purchasers and/or acquirers of common stock issued in the IPO. On September 28, 2023, the court issued an order granting in part and denying in part defendants' motion to dismiss. We and the other defendants continue to vigorously defend against the remaining claims in this action.
On March 20, 2023, a purported stockholder derivative complaint was filed in the U.S. District Court for the Northern District of California. The complaint names as defendants our current directors, as well as Freshworks as nominal defendant, and asserts state and federal claims based on some of the same alleged misstatements as the securities class action complaint. The derivative complaint seeks unspecified damages, attorneys’ fees, and other costs. On June 21, 2023, the court stayed the case in light of the pending securities class action. On October 16, 2023, the court extended the stay of the case in light of the pending securities class action. We and the other defendants continue to vigorously defend against the claims in this action.
From time to time, we have been and may be in the future subject to other legal proceedings, claims, investigations, and government inquiries (collectively, legal proceedings) in the ordinary course of business. We have received and may receive claims from third parties asserting, among other things, infringement of their intellectual property rights, defamation, labor and employment rights, privacy, and contractual rights. There are no currently pending legal proceedings that we believe will have a material adverse impact on our business or consolidated financial statements.
Indemnifications
In the ordinary course of business, we enter into contractual arrangements under which we agree to provide indemnification of varying scope and terms to customers, business partners, and other parties with respect to certain matters, including losses arising out of intellectual property infringement claims made by third parties, if we have violated applicable laws, if we are negligent or commit acts of willful misconduct, and other liabilities with respect to our products and services and our business. In these circumstances, payment is typically conditional on the other party making a claim pursuant to the procedures specified in the particular contract. We also indemnify certain of our officers, directors and certain key employees while they are serving in good faith in their respective capacities. To date, we have not incurred any material costs as a result of such indemnifications and have not accrued any liabilities related to such obligations in our consolidated financial statements.
v3.25.0.1
Revenue from Contracts with Customers
 12 Months Ended
Dec. 31, 2024
Revenue from Contract with Customer [Abstract]  
Revenue from Contracts with Customers
10. Revenue From Contracts with Customers
Disaggregation of Revenue
The following table summarizes revenue by our service offerings (in thousands):
Year Ended December 31,
202420232022
Subscription services, software licenses and maintenance
$710,744 $582,868 $485,322 
Professional services9,676 13,564 12,677 
Total revenue$720,420 $596,432 $497,999 
See Note 11—Segment and Geographic Information for revenue by geographic location.
Unbilled Receivables, Deferred Revenue and Remaining Performance Obligations
Unbilled receivables primarily represent revenue recognized in excess of billings from non-cancellable multi-year contract arrangements. As of December 31, 2024 and 2023, we had $6.3 million and $0.2 million of unbilled receivables, respectively. The increase in unbilled receivable is primarily related to the acquisition of D42 Parent, Inc. and its business. Unbilled receivables are included within accounts receivable, net on the consolidated balance sheets.
The aggregate balance of remaining performance obligations as of December 31, 2024 was $525.3 million. We expect to recognize $380.8 million of the balance as revenue in the next 12 months and the remainder thereafter. The aggregate balance of remaining performance obligations represents contracted revenue that has not yet been recognized, which includes unearned revenue and unbilled amounts that will be recognized as revenue in future periods.
Deferred revenue consists of customer billings in advance of revenue being recognized from our subscription and professional services arrangements. The following table summarizes the changes in the balance of deferred revenue during the years (in thousands):
Year Ended December 31,
202420232022
Balance at beginning of the year (2)
$266,399 $205,626 $160,173 
Add: Billings during the year (1)
781,309 657,205 543,452 
Less: Revenue recognized during the year(720,420)(596,432)(497,999)
Balance at end of the year (2)
$327,288 $266,399 $205,626 
(1) Includes deferred revenue and unbilled receivables acquired as part of D42 Parent, Inc. acquisition and changes in unbilled receivable.
(2) As of December 31, 2024 and 2023, non-current deferred revenue of $3.9 million and $0 was included in Other Liabilities in the consolidated balance sheets, respectively.

Revenue recognized during the years ended December 31, 2024, 2023, and 2022 from amounts included in deferred revenue at the beginning of these periods was $265.4 million, $204.8 million, and $158.7 million, respectively.
Deferred Contract Acquisition Costs
The change in the balance of deferred contract acquisition costs during the periods presented is as follows (in thousands):
Year Ended December 31,
202420232022
Balance at beginning of the year$42,672 $39,675 $29,647 
Add: Contract costs capitalized during the year34,524 26,962 28,560 
Less: Amortization of contract costs during the year(28,556)(23,965)(18,532)
Balance at end of the year$48,640 $42,672 $39,675 
v3.25.0.1
Segment and Geographic Information
 12 Months Ended
Dec. 31, 2024
Segment Reporting [Abstract]  
Segment and Geographic Information
11. Segment and Geographic Information
We operate in a single operating segment composed of the consolidated financial results of Freshworks. Our Chief Executive Officer (CEO) is the chief operating decision maker (CODM) of Freshworks and the key measures of segment profit
or loss that our CODM uses to allocate resources and assess performance is our revenue and consolidated net loss. Significant segment expenses reviewed by our CODM for our single operating segment comprise of stock-based compensation, amortization of acquired intangible assets, and other segment expenses. Other segment expenses utilizes operating expenses recognized as research and development, selling and marketing and general and administrative expenses within our consolidated statement of operations less stock-based compensation and amortization of acquired intangible assets, and primarily related to personnel-related costs. Refer to Note 12—Stockholders' Equity and Stock-Based Compensation and Note 7—Goodwill and Intangible Assets, Net for information regarding amounts pertaining to stock-based compensation and amortization of acquired intangibles.
Revenue by geographic location is determined based on the customers' billing address. The following table summarizes revenue by geographic region (in thousands):
Year Ended December 31,
202420232022
North America$329,934 $266,331 $216,112 
Europe, Middle East and Africa277,851 229,983 193,899 
Asia Pacific91,442 83,109 74,948 
Other21,193 17,009 13,040 
Total revenue$720,420 $596,432 $497,999 
Revenue from North America primarily includes revenue from the United States. For the years ended December 31, 2024, 2023 and 2022, revenue generated from the United States was $294.5 million, $235.3 million and $192.2 million, or 41%, 39% and 39% of total consolidated revenue, respectively. The United Kingdom, categorized within Europe, Middle East and Africa in the table above, contributed $94.1 million, $75.1 million and $63.8 million or 13%, 13% and 13% of total consolidated revenue for the years ended December 31, 2024, 2023 and 2022, respectively.
Long-lived assets consist primarily of property, plant and equipment and ROU assets. The following table summarizes long-lived assets by geographic information (in thousands):
December 31,
20242023
North America$20,052 $22,635 
Europe, Middle East and Africa8,391 2,244 
Asia Pacific34,341 30,617 
Total long-lived assets$62,784 $55,496 
Long-lived assets in North America are primarily located in the United States, and long-lived assets in Asia Pacific are primarily located in India.
v3.25.0.1
Stockholders' Equity and Stock Based Compensation
 12 Months Ended
Dec. 31, 2024
Share-Based Payment Arrangement [Abstract]  
Stockholders' Equity and Stock Based Compensation
12. Stockholders' Equity and Stock-Based Compensation
Common Stock
We have two classes of common stock: Class A common stock and Class B common stock. The shares of Class A common stock and Class B common stock are identical, except with respect to voting, conversion, and transfer rights. Each share of Class A common stock is entitled to one vote. Each share of Class B common stock is entitled to ten votes. Class A and Class B common stock are referred to as common stock throughout these notes to the consolidated financial statements, unless otherwise noted. Holders of common stock are entitled to receive any dividends as may be declared from time to time by the board of directors.
Shares of Class B common stock may be converted to Class A common stock at any time at the option of the stockholder. Shares of Class B common stock automatically convert to Class A common stock upon the following: (1) sale or transfer of such share of Class B common stock, except for certain permitted transfers as described in our amended and restated certificate of incorporation; (2) the death of such Class B common stockholder (or nine months after the date of death if the stockholder is our founder); and (3) on the final conversion date, defined as the earlier of (a) the last trading day of the fiscal year following the seventh anniversary of our IPO; or (b) the date specified by a vote of the holders of a majority of the outstanding shares of Class B common stock, voting as a single class.
Share Repurchase
In November 2024, our board of directors (the Board) approved the share repurchase program, which authorized the repurchase of up to $400 million of our outstanding Class A common stock. Under the repurchase program, we may repurchase shares of our outstanding Class A common stock from time to time in the open market, through privately negotiated transactions and/or other means in compliance with the Exchange Act and the rules and regulations thereunder. Open market repurchases may be structured to occur in accordance with the requirements of Rule 10b-18 under the Exchange Act. We may also, from time to time, enter into Rule 10b5-1 plans to facilitate repurchases of shares of Class A common stock under this authorization. The timing, manner, price, and amount of any repurchases will be determined by us at our discretion, and will depend on a variety of factors, including business, economic and market conditions, prevailing stock prices, corporate and regulatory requirements, and other considerations. The repurchase program may be suspended or discontinued at any time.
During the year ended December 31, 2024 we repurchased a total of 985,234 shares of Class A common stock under this program in open market transactions for an aggregate purchase price of $15.5 million, resulting in an average price of $15.77 per share. As of December 31, 2024, $384.5 million remained available for future share repurchases under the program. All shares of Class A common stock subsequently repurchased were retired. Upon retirement, the par value of the common stock repurchased was deducted from common stock and any excess of repurchase price over par value was recorded entirely to additional-paid-in capital, or in the absence of additional-paid-in capital, to accumulated deficit, in the consolidated balance sheets.
Accumulated Other Comprehensive Income (Loss)
Accumulated other comprehensive income (loss) is comprised of two components — unrealized gains or losses on available-for-sale debt securities and net changes in cash flow hedges.
The following tables shows the changes in the components of accumulated other comprehensive (loss) income:
Year Ended December 31,
202420232022
Beginning balance$(754)$(7,431)$(747)
Unrealized gains (losses) on available-for-sale debt securities
1,310 7,105 (6,684)
Net change on cash flow hedging
(894)(428)— 
Net impact to other comprehensive (loss) income in current period
416 6,677 (6,684)
Ending balance$(338)$(754)$(7,431)
Equity Compensation Plans
In August 2021, the Board adopted the 2021 Plan and the ESPP, effective upon the IPO. Pursuant to the 2021 Plan, the Board may grant incentive stock options to purchase shares of our common stock, non-statutory stock options to purchase shares of our common stock, stock appreciation rights, restricted stock, restricted stock units (RSUs), performance awards (PRSUs) and other awards. The ESPP enables eligible employees to purchase our Class A common stock. Both the 2021 Plan and ESPP include an automatic increase to their shares reserve on January 1 of each year as set forth in the respective plan documents.
In August 2022, the Compensation Committee of the Board adopted the 2022 Inducement Plan (the Inducement Plan) in accordance with Listing Rule 5635(c)(4) of the Nasdaq Stock Market. Under the Inducement Plan, nonstatutory stock options, stock appreciation rights, restricted stock, RSUs, PRSUs and other awards may be granted as an inducement material for eligible persons to enter into employment with us. Upon adoption, we have initially reserved 10,000,000 shares of Class A common stock for issuance under the Inducement Plan.
In September 2022, we hired a President and granted him 1,732,501 RSUs under the Inducement Plan and stock options to purchase up to 1,815,980 shares of Class A common stock, of which stock options to purchase up to 1,776,780 shares of Class A common stock were granted under the Inducement Plan and the remaining under the 2021 Plan. Each award will vest over
four years with 25% of the shares vesting on the first anniversary of the grant date and the remaining 75% of the shares vesting in equal quarterly installments thereafter, subject to continued employment.
Shares of common stock reserved for future issuance were as follows (in thousands):
December 31,
2024
2011 Stock Plan:
Options, RSUs and PRSUs outstanding
1,867 
2021 Equity Incentive Plan:
Options and RSUs outstanding
19,776 
Shares reserved for future award issuances81,101 
2022 Inducement Plan:
Options and RSUs outstanding2,723 
Shares reserved for future award issuances6,664 
2021 Employee Stock Purchase Plan
Shares reserved for future award issuances12,972 
Total awards outstanding and shares of common stock reserved for issuance
125,103 
2021 Employee Stock Purchase Plan
Under the ESPP, the price at which common stock is purchased is equal to 85% of the fair market value of a share of our common stock on the first day of the offering period or the applicable purchase date, whichever is lower. The fair market value of common stock will generally be the closing sales price on the determination date. The ESPP provides an offering period of 24 months, with four purchase periods that are generally six months long and end on May 15 and November 15 of each year. The following table summarizes the information on shares purchased under the ESPP for the years ended December 31, 2024 and 2023:
Year Ended December 31,
202420232022
Net shares issued under ESPP(1)
569,003 627,371 822,423 
Weighted average purchase price
$11.81 $11.88 $13.33 
Aggregate net proceeds (in thousands)
$6,643 $7,271 $10,870 
(1)     Net of shares withheld and retired to satisfy withholding tax requirements for certain employees in jurisdictions outside the United States

The ESPP also includes a reset provision for the purchase price if the fair market value of a share of our common stock on the first day of any purchase period is less than or equal to the fair market value of a share of our common stock on the first day of an ongoing offering. If the reset provision is triggered, a new 24-month offering period begins. Each triggering of the reset provision was considered a modification in accordance with ASC 718, Stock Based Compensation, with the modification charge recognized on a straight-line basis over the new offering period. The modifications did not have a material effect on our stock-based compensation expense during the years ended December 31, 2024, 2023, and 2022.
As of December 31, 2024 and 2023, we have withheld $1.1 million and $1.3 million of contributions from its employees.
During the years ended December 31, 2024, 2023 and 2022, we recognized $5.3 million, $7.6 million and $12.2 million of stock-based compensation expense related to the ESPP, respectively.
Determination of Fair Value of the ESPP
We estimate the fair value of the ESPP using the Black-Scholes option-pricing model, which requires certain complex valuation assumption inputs such as expected term, expected stock price volatility, risk-free interest rate and dividend yield.
The fair value of each of the four purchase periods is estimated separately. The following table summarizes the range of valuation assumptions used in estimating the fair value of the ESPP during the period:
Year Ended December 31,
Valuation Assumption Inputs202420232022
Expected term (in years)
0.5 - 2.0
0.5 - 1.5
0.5 - 2.0
Stock price volatility
48.3% - 57.2%
47.4% - 77.3%
55.8% - 84.5%
Risk-free interest rate
4.29% - 5.41%
4.47% - 5.38%
1.54% - 4.62%
Dividend yield0.00%0.00%0.00%
Stock Options
Stock options are generally granted with an exercise price equal to the fair market value of a share of common stock at the date of grant, have a 10-year contractual term, and vest over a four-year period.
Stock option activity during the year ended December 31, 2024 is as follows (in thousands, except per share data):
Share Information:Number of SharesWeighted-Average Exercise PriceWeighted-Average Remaining Contractual Term (in years)
Aggregate Intrinsic Value (1)
Balance as of December 31, 20232,395 $10.39 7.0$31,368 
Assumed and converted options from acquisition (Note 6)
512 $3.26 
Stock options exercised(338)$0.26 
Balance as of December 31, 20242,569 $10.3 7.4$15,066 
Options vested and expected to vest as of December 31, 20242,569 $10.3 7.4$15,066 
Options exercisable as of December 31, 20241,262 $11.08 6.3$6,425 
(1)Aggregate intrinsic value for stock options represents the difference between the exercise price and the per share fair value of our common stock as of the end of the period, multiplied by the number of stock options outstanding, exercisable, or vested.

Total intrinsic value of options exercised during the years ended December 31, 2024, 2023, and 2022 was $5.4 million, $6.8 million, and $5.9 million, respectively.
The weighted-average grant date fair value per share of the assumed and converted stock options related to the D42 Parent, Inc. acquisition was $11.09 for the year ended December 31, 2024, of which approximately $1.8 million was related to post-combination services and will be recognized as stock-based compensation over requisite service period of two years (Note 6).
The weighted-average grant date fair value of stock options granted was $8.26 per share during the year ended December 31, 2022. There were no options granted during the years ended December 31, 2024 and 2023.
Determination of Fair Value of Stock Options
We estimate the fair value of stock options using the Black-Scholes option-pricing model, which requires certain complex valuation assumption inputs such as expected term, expected stock price volatility, risk-free interest rate, and dividend yield. The following table summarizes the valuation assumptions used in estimating the fair value of stock options assumed and granted for the years presented:
Year Ended December 31,
Valuation Assumption Inputs20242022
Expected term (in years)6.06.1
Stock price volatility65.0%65.0%
Risk-free interest rate4.29%3.37%
Dividend yield—%—%
Restricted Stock Units
RSUs are granted at fair market value at the date of the grant and typically vest over a four-year period.
RSU activity, which includes PRSUs, during the year ended December 31, 2024 is as follows (in thousands, except per share data):
Share Information:Number of SharesWeighted-Average Grant Date Fair Value
Unvested, as of December 31, 202326,755 $18.44 
Granted (1)
17,482 $19.01 
Vested (2)
(9,747)$18.47 
Forfeited/Cancelled (3)
(12,693)$19.02 
Unvested, as of December 31, 202421,797 $18.54 
(1)    During the year ended December 31, 2024, shares granted includes 0.9 million shares granted to the Executive Chairman as long-term equity incentive award accounted for as a modification. The weighted average grant date fair value was $69.78 per share. Refer to the Executive Chairman Awards discussion below.
(2)    During the year ended December 31, 2024 total shares that vested were 9.7 million, of which 3.7 million shares were withheld for tax purposes.
(3)     Shares forfeited includes the cancellation of the 2021 Executive Chairman Performance Award consisting of 6,000,000 PRSUs discussed in the Executive Chairman Awards section below.

The total fair value of vested RSUs during the years ended December 31, 2024, 2023, and 2022 were $180.0 million, $175.3 million, and $235.0 million, respectively.
Performance-Based Awards
Executive Chairman Awards
In May 2019, the Board approved a grant of 166,390 shares PRSUs to our then CEO, now current Executive Chairman. The vesting of these PRSUs is contingent upon the satisfaction of certain milestones. The revenue-related milestone and the liquidity event condition were met prior to December 31, 2021. Upon completion of the milestones, the time-based vesting was the only condition yet to be satisfied over the remaining requisite service period. All shares related to this grant were vested as of December 31, 2023.
In September 2021, the Board approved a grant of 6,000,000 PRSUs to our Executive Chairman, with a time-based service condition beginning January 1, 2022, and a market condition involving five separate stock price targets ranging from $70.00 to $200.00 per share for each of the five vesting tranches (2021 Executive Chairman Performance Award). The 2021 Executive Chairman Performance Award had a total grant date fair value of $131.0 million.
The fair value of the 2021 Executive Chairman Performance Award was determined at grant date by using the Monte Carlo simulation model, which requires certain complex valuation assumption inputs such as measurement period, expected stock price volatility, risk-free interest rate and dividend yield.
The valuation assumptions using the Monte Carlo simulation model at the date of grant were:
Valuation Assumption Inputs
Measurement period (in years)7.0
Stock price volatility60.0%
Risk-free interest rate1.12%
Dividend yield—%
As a result of macroeconomic conditions outside the control of our leadership team, the five separate stock price hurdles were considered by the Board to be too high for the 2021 Executive Chairman Performance Award to have the retention value expected at the time the award was granted. In February 2024, the Board approved the cancellation of the 2021 Executive Chairman Performance Award and the grant of a 2024 Executive Chairman Award with a fair value of $19.0 million, both effective March 1, 2024.
We accounted for the 2024 Executive Chairman Award as a modification. There were no incremental costs recognized as a result of the modification and the remaining unrecognized stock-based compensation expense from the 2021 Executive Chairman Performance Award of $61.9 million will be recognized over the vesting period of the new 2024 Executive Chairman Award. The 2024 Executive Chairman Award is comprised of 70% time-based RSUs that vest quarterly over four years and 30% PRSUs with the same terms as the Executive PRSUs discussed below.
For the year ended December 31, 2024, we recognized $19.4 million, of stock-based compensation expense related to the 2024 Executive Chairman Award. For the years ended December 31, 2024, 2023 and 2022 we recognized $4.6 million (prior to modification), $28.1 million and $27.6 million of stock-based compensation expense associated with the 2021 Executive Chairman Performance Award, respectively.
Executive PRSUs
In February 2024, the Board approved PRSUs to be granted to certain members of the executive team (Executive PRSUs), subject to service and performance-based vesting conditions. The performance-based vesting conditions include revenue and free cash flow targets over the performance period from January 1 to December 31, 2024, and vest over three years from the grant date. 70% and 30% of each Executive PRSU award will be earned based on Freshworks’ achievement of revenue and free cash flow targets, respectively. The performance targets allow our executives to earn up to a maximum of 177.5% of target performance in the aggregate for significant outperformance.
The fair value of each PRSU is based on the fair value of our common stock on the date of grant. Stock-based compensation associated with these Executive PRSUs is recognized using the accelerated attribution method over the requisite service period, based on Freshworks' periodic assessment of the probability that the performance will be achieved. For the year ended December 31, 2024, we recognized $5.0 million of stock-based compensation expense related to the Executive PRSUs.
Stock-Based Compensation
Total stock-based compensation expense recorded for the years ended December 31, 2024, 2023, and 2022 was as follows (in thousands):
Year Ended December 31,
202420232022
Equity awards:
Cost of revenue$6,565 $6,774 $7,039 
Research and development (1)
41,512 37,524 36,413 
Sales and marketing (2)
63,219 66,755 64,328 
General and administrative (3)
105,410 99,654 99,916 
Stock-based compensation, net of amounts capitalized216,706 210,707 207,696 
Capitalized stock-based compensation1,358 1,758 1,665 
Total stock-based compensation expense$218,064 $212,465 $209,361 
(1) Stock-based compensation expense recorded to research and development in the consolidated statements of operations excludes amounts that were capitalized for internal-use software.
(2) Sales and marketing expense for the years ended December 31, 2024, 2023, and 2022 includes $6.5 million, $9.6 million, and $3.2 million, respectively, of stock-based compensation expense associated with RSUs, PRSUs and options granted to the President. After the appointment of the President as our Chief Executive Officer, stock-based compensation expenses were included in General and Administrative.
(3) General and administrative expense includes stock-based compensation associated with RSUs and PRSUs granted to our Executive Chairman of $50.4 million, $55.9 million and $55.9 million for the years ended December 31, 2024, 2023 and 2022, respectively.

As of December 31, 2024, unrecognized stock-based compensation expense related to unvested stock-based awards was as follows (in thousands, except for period data):
December 31, 2024
Unrecognized Stock-Based CompensationWeighted-Average Period to Recognize Expense (in years)
RSUs and PSUs$349,675 2.6
Stock options7,503 1.6
ESPP5,392 1.1
Total unrecognized stock-based compensation expense$362,570 
v3.25.0.1
Restructuring Charges
 12 Months Ended
Dec. 31, 2024
Restructuring and Related Activities [Abstract]  
Restructuring Charges
13. Restructuring Charges
In November 2024, the Board approved a restructuring plan as a part of our efforts to align our talent with our strategic priorities and to improve operating efficiency. As a result, during the year ended December 31, 2024, we have recorded
restructuring charges of $9.7 million in our consolidated statements of operations, which consist of severance costs of $8.1 million and other related-personnel and exit costs of $1.6 million. We expect to complete the restructuring plan by the end of the second quarter of fiscal year 2025.
The following table shows the total amount incurred and accrued related to restructuring charges (in thousands):
Amount
Accrued restructuring costs as of December 31, 2023
$— 
Restructuring charges incurred during the period
9,664 
Amounts paid during the period
7,314 
Accrued restructuring costs as of December 31, 2024
$2,350 
The remaining balance of $2.4 million as December 31, 2024, primarily related to severance and is included in accrued liabilities in our consolidated balance sheets.
v3.25.0.1
Income Taxes
 12 Months Ended
Dec. 31, 2024
Income Tax Disclosure [Abstract]  
Income Taxes
14. Income Taxes
Our net loss before provision for income taxes for the years ended December 31, 2024, 2023, and 2022 was as follows (in thousands):
Year Ended December 31,
202420232022
Domestic$(130,763)$(165,144)$(252,261)
Foreign39,926 41,375 31,471 
Total$(90,837)$(123,769)$(220,790)
The components of the provision for income taxes for the years ended December 31, 2024, 2023, and 2022 were as follows (in thousands):
Year Ended December 31,
202420232022
Current:
Domestic$3,381 $2,810 $2,137 
Foreign13,792 12,179 11,610 
Deferred:
Domestic(14,165)— — 
Foreign1,523 (1,322)(2,405)
Total provision for income taxes$4,531 $13,667 $11,342 
The following is a reconciliation of the federal statutory income tax rate to our effective tax rate for the years ended December 31, 2024, 2023, and 2022:
Year Ended December 31,
202420232022
Federal income tax21.0 %21.0 %21.0 %
Stock-based compensation(23.9)(16.9)(1.6)
Change in valuation allowance4.3 (6.4)(22.4)
Foreign tax rate differential
(4.9)— — 
Earnings from foreign subsidiaries(2.1)(1.8)(1.2)
Uncertain tax positions
(3.2)(2.1)— 
U.S. taxes on foreign operations
3.5 (4.8)— 
Other items0.3 — (0.9)
Total provision for income taxes(5.0)%(11.0)%(5.1)%
The components of our net deferred tax assets as of December 31, 2024 and 2023, were as follows (in thousands):
December 31,
20242023
Deferred tax assets:
Net operating loss carryforwards$58,907 $81,373 
Foreign tax credit carryforwards8,489 5,999 
Capitalized R&E under IRC 17498,274 65,478 
Stock-based compensation6,705 3,672 
Accruals and reserves
9,965 8,948 
Depreciation and amortization— 3,328 
Allowance for uncollectible accounts412 1,003 
Operating lease liability9,518 6,877 
Total deferred tax assets192,270 176,678 
Less: valuation allowance(151,738)(154,788)
Deferred tax assets, net of valuation allowance40,532 21,890 
Deferred tax liabilities:
Commissions(6,102)(5,926)
Depreciation and amortization
(17,159)— 
Operating lease right-of-use assets(8,772)(5,951)
Net deferred tax assets$8,499 $10,013 
We regularly review our deferred tax assets for recoverability based on historical taxable income, projected future taxable income, the expected timing of the reversals of existing taxable temporary differences and tax planning strategies. Our judgment regarding future profitability may change due to many factors, including future market conditions and the ability to successfully execute the business plans and/or tax planning strategies. Should there be a change in the ability to recover deferred tax assets, our income tax provision would increase or decrease in the period in which the assessment is changed.
Our valuation allowance increased by $(3.1) million and $8.7 million during the years ended December 31, 2024 and 2023, respectively.
The Tax Cuts and Jobs Act of 2017 (TCJA) made a significant change to Internal Revenue Code Section 174, which went into effect for taxable years beginning after December 31, 2021. The change requires Companies to capitalize specific research and experimental (R&E) expenditures and amortize over five years for U.S. incurred R&E or fifteen years for foreign incurred R&E beginning on January 1, 2022. This mandatory capitalization requirement does not have a material impact on the 2023 cash tax liabilities due to sufficient tax attributes.
We have not provided U.S. income taxes and foreign withholding taxes on undistributed earnings of foreign subsidiaries because we intend to permanently reinvest such earnings outside the United States.
Net Operating Loss and Credit Carryforwards
As of December 31, 2024, we have U.S. federal net operating loss (NOL) carryforwards of approximately $237.9 million. If not utilized, the federal NOL carryforwards will begin to expire in 2034. For the federal NOL carryforwards arising in tax years beginning after December 31, 2017, which represents the majority of our federal NOL carryforwards, the Tax Act limits our ability to utilize carryforwards to 80% of taxable income; however, these NOLs may be carried forward indefinitely. As of December 31, 2024, the NOL carryforwards for all the states in the United States is $146.8 million. If not utilized, the state NOL carryforwards will begin to expire in 2025.
As of December 31, 2024, we also have federal tax credits carryforwards of $8.1 million. If not utilized, the credits will begin to expire in 2027.
Utilization of the NOL carryforwards may be subject to a substantial annual limitation due to the ownership change provisions of IRC Section 382 and similar state provisions. The annual limitation may result in the expiration of NOL carryforwards before utilization. We continually monitors the impact to net operating losses of any ownership changes.
Unrecognized Tax Benefits
We have adopted authoritative guidance which prescribes a recognition threshold and measurement attribute for the financial statement recognition and measurement of uncertain tax positions taken or expected to be taken in our income tax return, and also provides guidance on derecognition, classification, interest and penalties, accounting in interim periods, disclosure, and transition.
We recognize financial statement benefit of a tax position only after determining that the relevant tax authority would more-likely-than-not sustain the position following an audit. For tax positions meeting the more-likely-than-not threshold, the amount recognized in the consolidated financial statements is the largest benefit that has no likelihood of being realized upon ultimate settlement with the relevant tax authority. As of December 31, 2024 and 2023, we had gross unrecognized tax benefits of $8.1 million and $5.6 million, respectively, all of which would affect the effective tax rate, if recognized, after consideration of valuation allowance.
The following table presents a reconciliation of the beginning and ending amount of the unrecognized tax benefits (in thousands):
Year Ended December 31,
20242023
Unrecognized gross tax benefits at the beginning of the period$5,634 $3,647 
Increases related to prior year tax positions449 — 
Decreases related to prior year tax positions— (22)
Increases in current year unrecognized benefits2,061 2,009 
Unrecognized gross tax benefits at the end of the period$8,144 $5,634 
We recognize interest and penalties related to income tax matters as a component of income tax expense. Accrued interest of $2.2 million and $1.4 million has been recorded as of December 31, 2024 and 2023, respectively.
Our major tax jurisdictions are India and the United States and we also files income tax returns in various U.S. states and foreign jurisdictions. Carryover attributes beginning December 31, 2008, remain open to adjustment by the U.S. federal and state authorities. The U.S. federal, state, and foreign jurisdictions have statutes of limitations that generally range from three to five years. Due to our net losses, substantially all of its federal and state income tax returns are subject to examination since inception. We are under examination in India and have appealed our case to the tribunal court. As of December 31, 2024, we are waiting the results of the appeal. We believe that we have provided adequate reserves for our income tax uncertainties in all open tax years. As the outcome of our tax audits are resolved in a manner inconsistent with management's expectations, we could adjust our provision for income taxes in the future.
v3.25.0.1
Net Loss Per Share
 12 Months Ended
Dec. 31, 2024
Earnings Per Share [Abstract]  
Net Loss Per Share
15. Net Loss Per Share
Basic net loss per share attributable to common stockholders is computed by dividing the net loss by the number of weighted-average outstanding shares of common stock. Diluted net loss per share attributable to common stockholders is determined by giving effect to all potential common equivalents during the reporting period, unless including them yields an antidilutive result. We consider our stock options and RSUs as potential common stock equivalents, but excluded them from the computation of diluted net loss per share attributable to common stockholders for the periods presented, as their effect was antidilutive.
The rights, including the liquidation and dividend rights, of the holders of Class A and Class B common stock are identical, except with respect to voting, conversion, and transfer rights. As the liquidation and dividend rights are identical, the undistributed earnings are allocated on a proportionate basis to each class of common stock and the resulting basic and diluted
net loss per share attributable to common stockholders are the same for both Class A and Class B common stock on both an individual and combined basis.
The following table sets forth the computation of basic and diluted net loss per share attributable to common stockholders (in thousands, except per share data):
Year Ended December 31,
202420232022
Numerator:
Net loss$(95,368)$(137,436)$(232,132)
Net loss attributable to Class A and Class B common stockholders - basic and diluted$(95,368)$(137,436)$(232,132)
Denominator:
Weighted-average shares used in computing net loss per share attributable to Class A and Class B common stockholders - basic and diluted300,843 293,087 284,587 
Net loss per share attributable to Class A and Class B common stockholders - basic and diluted$(0.32)$(0.47)$(0.82)
The following table summarizes the potential common equivalents that were excluded from the computation of diluted net loss per share attributable to Class A and Class B common stockholders for the periods presented (in thousands):
Year Ended December 31,
202420232022
RSUs and PRSUs21,797 26,755 32,253 
Stock options2,569 2,395 2,758 
ESPP96 109 124 
Total24,462 29,259 35,135 
v3.25.0.1
Pay vs Performance Disclosure - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2024
Dec. 31, 2023
Dec. 31, 2022
Pay vs Performance Disclosure      
Net loss $ (95,368) $ (137,436) $ (232,132)
v3.25.0.1
Insider Trading Arrangements
 3 Months Ended 12 Months Ended
Dec. 31, 2024
shares
Dec. 31, 2024
shares
Trading Arrangements, by Individual    
Rule 10b5-1 Arrangement Adopted   false
Non-Rule 10b5-1 Arrangement Adopted   false
Non-Rule 10b5-1 Arrangement Terminated   false
Tyler Sloat [Member]    
Trading Arrangements, by Individual    
Material Terms of Trading Arrangement  
NameTitleAction
Date
Expiration DateTotal number of securities to be sold
Tyler SloatChief Financial Officer and Chief Operating Officer
Termination(1)
November 4, 2024September 30, 2025
Up to 500,000 shares
(1) Represents the termination of a written plan intended to satisfy the affirmative defense conditions of Rule 10b5-1(c) adopted on June 6, 2024.
Name Tyler Sloat  
Title Chief Financial Officer and Chief Operating Officer  
Rule 10b5-1 Arrangement Terminated true  
Termination Date November 4, 2024  
Expiration Date September 30, 2025  
Aggregate Available 500,000 500,000
v3.25.0.1
Insider Trading Policies and Procedures
 12 Months Ended
Dec. 31, 2024
Insider Trading Policies and Procedures [Line Items]  
Insider Trading Policies and Procedures Adopted true
v3.25.0.1
Cybersecurity Risk Management and Strategy Disclosure
 12 Months Ended
Dec. 31, 2024
Cybersecurity Risk Management, Strategy, and Governance [Line Items]  
Cybersecurity Risk Management Processes for Assessing, Identifying, and Managing Threats [Text Block]
We have implemented and maintain various information security processes designed to identify, assess and manage material risks from cybersecurity threats to our critical computer networks, third party hosted services, communications systems, hardware and software, and our critical data, including intellectual property, confidential information that is proprietary, strategic or competitive in nature, and data related to our customers and employees (Information Systems and Data).
Our Chief Information Security Officer (CISO), our information security team, and third-party service providers help identify, assess, and manage our cybersecurity threats and risks, including through the use of our cybersecurity risk assessment program. Our CISO along with this team, as applicable, identifies and assesses risks from cybersecurity threats by monitoring and evaluating our threat environment and our risk profile using various methods, including automated and manual tools, third-party threat feeds, internal audits, access control assessments, and evaluating threats reported to us by various third party enterprise threat reporting services.
Depending on the environment, we implement and maintain various technical, physical, and organizational measures, processes, standards, and policies designed to manage and mitigate material risks from cybersecurity threats to our Information Systems and Data, including, for example: dedicated cybersecurity staff, including a 24/7 security operations center monitoring for and responding to threat activity, incident response plans and processes, vulnerability management, secure software development, static and dynamic code scanning for vulnerabilities, open-source software scanning, internal and third-party penetration testing, a bug bounty program, internal audit and assurance of security controls, disaster recovery/business continuity plans, attainment and maintenance of industry-standard security certifications, identity and access management, asset management, tracking and disposal, encryption, access controls, third-party risk management, phish testing and reporting, employee security awareness training, and maintaining cybersecurity insurance.
Our assessment and management of material risks from cybersecurity threats are integrated into our overall risk management processes. For example, cybersecurity risks are considered a part of our overall business strategy, financial planning, and capital allocation.
We use third-party service providers to assist us from time to time to identify, assess, and manage material risks from cybersecurity threats. Our information security leadership inventories and prioritizes information security risks and evaluates material risks from cybersecurity threats, and reports those quarterly to the audit committee of our board of directors (Audit Committee), which evaluates our overall enterprise risk.
We use third-party service providers to perform a variety of security functions throughout our business, such as SaaS security providers, cloud-native application protection platforms, dark web monitoring, and software code scanning. We have a vendor management program to manage cybersecurity risks associated with our use of these providers. The program includes risk assessments and imposition of contractual obligations. Depending on the nature of the services provided, the sensitivity of the Information Systems and Data at issue, and the identity of the provider, our vendor management process may involve different levels of assessment designed to help identify cybersecurity risks associated with a provider, which may impose contractual obligations related to cybersecurity on the provider. For a description of the risks from cybersecurity threats that may materially affect us and how they may do so, see our risk factors under Part 1. Item 1A. Risk Factors in this Annual Report on Form 10-K, including "If our information technology, systems, or those of third parties upon which we rely or our data are or were to be compromised, we could experience adverse consequences resulting from such compromise, including, but not limited to, regulatory investigations or actions, litigation, fines and penalties, disruptions of our business operations, reputational harm, loss of revenue or profits, and other adverse consequences."
Cybersecurity Risk Management Processes Integrated [Flag] true
Cybersecurity Risk Management Processes Integrated [Text Block] Our assessment and management of material risks from cybersecurity threats are integrated into our overall risk management processes. For example, cybersecurity risks are considered a part of our overall business strategy, financial planning, and capital allocation.
Cybersecurity Risk Management Third Party Engaged [Flag] true
Cybersecurity Risk Third Party Oversight and Identification Processes [Flag] true
Cybersecurity Risk Materially Affected or Reasonably Likely to Materially Affect Registrant [Flag] false
Cybersecurity Risk Board of Directors Oversight [Text Block] Our board of directors addresses our cybersecurity risk management as part of its general oversight function. The Audit Committee is responsible for overseeing our cybersecurity risk management processes, including oversight and mitigation of risks from cybersecurity threats.
Cybersecurity Risk Board Committee or Subcommittee Responsible for Oversight [Text Block] Our cybersecurity risk assessment and management processes are implemented and maintained by our CISO and our information security team.
Cybersecurity Risk Process for Informing Board Committee or Subcommittee Responsible for Oversight [Text Block]
Our cybersecurity risk assessment and management processes are implemented and maintained by our CISO and our information security team. Our CISO has served in various roles in information technology and information security for more than 20 years, including serving as the Chief Information Security Officer at a publicly traded SaaS company and large e-commerce company. Our CISO works with our broader Information Technology team on IT security issues and also works with our product organization, finance, legal and internal controls teams.
Our CISO is responsible for hiring appropriate personnel, helping to integrate cybersecurity risk considerations into our overall risk management strategy, and communicating key priorities to relevant personnel. Our CISO is responsible for overseeing our Information Security budget, helping prepare for cybersecurity incidents, approving cybersecurity processes, and reviewing security assessments and other security-related reports.
Cybersecurity Risk Role of Management [Text Block]
Our cybersecurity risk assessment and management processes are implemented and maintained by our CISO and our information security team. Our CISO has served in various roles in information technology and information security for more than 20 years, including serving as the Chief Information Security Officer at a publicly traded SaaS company and large e-commerce company. Our CISO works with our broader Information Technology team on IT security issues and also works with our product organization, finance, legal and internal controls teams.
Our CISO is responsible for hiring appropriate personnel, helping to integrate cybersecurity risk considerations into our overall risk management strategy, and communicating key priorities to relevant personnel. Our CISO is responsible for overseeing our Information Security budget, helping prepare for cybersecurity incidents, approving cybersecurity processes, and reviewing security assessments and other security-related reports.
Our cybersecurity incident response process is designed to escalate certain cybersecurity incidents to members of management depending on the circumstances including our CISO, our Chief Financial Officer and our Chief Legal Officer. Upon consultation with our Chief Financial Officer and our Chief Legal Officer, our CISO works with our incident response team to help us mitigate and remediate cybersecurity incidents of which they are notified. In addition, our incident response process includes reporting to the Audit Committee for certain cybersecurity incidents.
The Audit Committee receives reports as part of its quarterly meetings from our CISO concerning our significant cybersecurity threats and risk and the processes we have implemented to address them. Our board also receives periodic reports (at least annually) from our CISO regarding the overall cybersecurity landscape, including material related to cybersecurity threats, risk, and mitigation.
Cybersecurity Risk Management Positions or Committees Responsible [Flag] true
Cybersecurity Risk Management Positions or Committees Responsible [Text Block] Our cybersecurity risk assessment and management processes are implemented and maintained by our CISO and our information security team.
Cybersecurity Risk Management Expertise of Management Responsible [Text Block] Our CISO has served in various roles in information technology and information security for more than 20 years, including serving as the Chief Information Security Officer at a publicly traded SaaS company and large e-commerce company. Our CISO works with our broader Information Technology team on IT security issues and also works with our product organization, finance, legal and internal controls teams.
Cybersecurity Risk Process for Informing Management or Committees Responsible [Text Block]
Our cybersecurity risk assessment and management processes are implemented and maintained by our CISO and our information security team. Our CISO has served in various roles in information technology and information security for more than 20 years, including serving as the Chief Information Security Officer at a publicly traded SaaS company and large e-commerce company. Our CISO works with our broader Information Technology team on IT security issues and also works with our product organization, finance, legal and internal controls teams.
Our CISO is responsible for hiring appropriate personnel, helping to integrate cybersecurity risk considerations into our overall risk management strategy, and communicating key priorities to relevant personnel. Our CISO is responsible for overseeing our Information Security budget, helping prepare for cybersecurity incidents, approving cybersecurity processes, and reviewing security assessments and other security-related reports.
Our cybersecurity incident response process is designed to escalate certain cybersecurity incidents to members of management depending on the circumstances including our CISO, our Chief Financial Officer and our Chief Legal Officer. Upon consultation with our Chief Financial Officer and our Chief Legal Officer, our CISO works with our incident response team to help us mitigate and remediate cybersecurity incidents of which they are notified. In addition, our incident response process includes reporting to the Audit Committee for certain cybersecurity incidents.
Cybersecurity Risk Management Positions or Committees Responsible Report to Board [Flag] true
v3.25.0.1
Summary of Significant Accounting Policies (Policies)
 12 Months Ended
Dec. 31, 2024
Accounting Policies [Abstract]  
Basis of Presentation and Principles of Consolidation
Basis of Presentation and Principles of Consolidation
The accompanying consolidated financial statements have been prepared in conformity with U.S. generally accepted accounting principles (GAAP). The consolidated financial statements include the accounts of Freshworks and its wholly owned subsidiaries, and all intercompany balances and transactions have been eliminated in consolidation.
Foreign Currency Remeasurement and Transactions
Foreign Currency Remeasurement and Transactions
The functional currency of our foreign subsidiaries is the U.S. dollar. Accordingly, each foreign subsidiary remeasures monetary assets and liabilities at period-end exchange rates, while non-monetary items are remeasured at historical rates. Revenues and expenses are remeasured at the exchange rates in effect on the day the transaction occurred, except for those expenses related to non-monetary assets and liabilities which are remeasured at historical exchange rates.
Use of Estimates
Use of Estimates
The preparation of consolidated financial statements in accordance with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities at the date of the consolidated financial statements, and the reported amounts of income and expense during the reporting periods. Significant items subject to such estimates and assumptions include, but are not limited to, the following:
•determination of standalone selling price (SSP) for each distinct performance obligation included in customer contracts with multiple performance obligations;
•allowance for doubtful accounts;
•benefit period of deferred contract acquisition costs;
•capitalization of internal-use software development costs;
•fair value of goodwill;
•useful lives of long-lived assets, including intangible assets;
•valuation of deferred tax assets;
•valuation of employee defined benefit plan and other compensation liabilities;
•fair value of share-based awards; and
•incremental borrowing rate used for operating leases.
Revenue Recognition and Deferred Revenue
Revenue Recognition
We derive revenue from subscription fees, related professional services, and following the acquisition of D42 Parent, Inc. in June 2024, software licenses.
Subscription Revenue
We sell subscriptions for our cloud-based solutions directly to customers and indirectly through channel partners through arrangements that are non-cancelable and non-refundable. Our subscription arrangements do not provide customers with the right to take possession of the software supporting the solutions and, as a result, are accounted for as service arrangements. We record revenue net of sales or value-added taxes.
We sell subscriptions to third-party resellers. The price at which subscriptions are sold to the reseller is typically discounted, as compared to the price at which we would sell to an end customer, in order to enable the reseller to realize a margin on the eventual sale to the end customer. As pricing to the reseller is fixed, and we lack visibility into the pricing provided by the reseller to the end customer, reseller revenue is recorded net of any reseller discounts.
Subscription revenue is primarily comprised of fees paid by our customers for accessing our cloud-based software during the term of the arrangement. Cloud-based services allow customers to use our multi-tenant software without requiring them to take possession of the software. Given that access to the cloud-based software represents a series of distinct services that comprise a single performance obligation that is satisfied over time, subscription revenue is recognized ratably over the contract term beginning on the commencement date of each contract, which is the date that the cloud-based software is made available to customers.
Professional Service Revenue
Professional services revenue is comprised of fees charged for services ranging from product configuration, data migration, systems integration, and training. We recognize professional services revenues as services are performed.
Software License Revenue
Software license revenue is generally sold as bundled arrangements that include the rights to a software license and maintenance and cloud-based software in some cases. Software license revenue consists of term licenses and is recognized upfront, upon making the software available to the customer. The associated software maintenance revenue is generally recognized ratably over the contract term as support and updates are provided to the customers over the term of the arrangement.
Customers with Multiple Performance Obligations
Some of our contracts with customers contain both subscriptions and professional services, and software licenses. For these contracts, we account for individual performance obligations separately. The transaction price is allocated to the separate performance obligations on the basis of relative standalone selling price (SSP). We determine SSP by taking into consideration historical selling price of these performance obligations in similar transactions, as well as current pricing practices and other observable inputs including, but not limited to, customer size and geography. As our go-to-market strategies evolve, we may modify our pricing practices in the future, which could result in changes to SSP.
Deferred Revenue
Deferred revenue consists of customer billings in advance of revenue being recognized from our subscription and professional services arrangements. Customers are invoiced for subscription service arrangements in advance for monthly, quarterly, semi-annual and annual subscription plans. Our payment terms generally provide that customers pay the invoiced portion of the total arrangement fee either in advance or within 30 days from the invoice date.
Cost of Revenue
Cost of Revenue
Cost of revenue consists mainly of personnel-related expenses (primarily including salaries, related benefits, and stock-based compensation) for employees associated with our cloud-based infrastructure, payment gateway fees, voice, product support, and professional service organizations, as well as costs incurred by us for third-party hosting capabilities. Cost of revenue also includes third-party license fees, amortization of acquired intangibles, amortization of capitalized internal-use software, and allocation of general overhead expenses such as facilities and information technology.
Research and Development
Research and Development
Research and development costs are expensed as incurred and consist primarily of personnel-related expenses (primarily including salaries, related benefits, and stock-based compensation) for our product development employees. Research and development expenses also include non-personnel-related expenses such as third-party services for product development and consulting expenses, depreciation expense related to equipment used in research and development activities, and allocation of our general overhead expenses.
Advertising Costs
Advertising Costs
Advertising costs are charged to sales and marketing expense in the consolidated statements of operations as incurred.
Stock-Based Compensation
Stock-Based Compensation
We issue stock options and restricted stock units (RSUs) to employees, consultants and directors under our 2021 Equity Incentive Plan (2021 Plan) and stock purchase rights granted under the 2021 Employee Stock Purchase Plan (ESPP) to employees based on the estimated fair value on the date of the grant. Stock-based compensation expense related to stock options and RSUs under the 2021 Plan and stock purchase rights under the ESPP is recognized in the consolidated statements of operations on a straight-line basis over the requisite service period, which is the vesting period of the respective awards. Forfeitures are accounted for when they occur.
The fair value of RSUs is based on the closing market price of our Class A common stock on the date of the grant. Prior to the Initial Public Offering (IPO) in 2021, we determined the fair value of the common stock underlying stock options and RSUs by considering numerous objective and subjective factors including, but not limited to: (i) independent third-party valuations, (ii) the prices, rights, preferences, and privileges of our redeemable convertible preferred stock relative to its common stock, (iii) the lack of marketability of the common stock, (iv) current business conditions and financial projections, and (iv) the likelihood of achieving an IPO or sale event. Subsequent to the IPO, the fair values of stock options and the stock purchase rights under the ESPP are estimated using the Black-Scholes option-pricing model, which requires the input of highly subjective assumptions. These assumptions represent our best estimates and involve inherent uncertainties and the application of our judgment. The main assumptions used in the Black-Scholes option-pricing model include:
Expected term—The expected term represents the period that stock-based awards are expected to be outstanding. The expected term for option grants is determined using the simplified method which represents the average of the contractual term of the option and the weighted-average vesting period of the option. We consider this appropriate as there is not sufficient historical information available to develop reasonable expectations about future exercise patterns and post-vesting employment termination behavior. The expected term for ESPP is the length of time from the grant date to the date on which the stock is purchased by the employees.
Stock price volatility—For the stock price volatility over the expected term where our common stock has sufficient trading history, we generally estimate the stock price volatility using the historical volatility of our own stock. If our common stock lacks sufficient trading history, the stock price volatility over the expected term is estimated based on the historical volatility of comparable companies with similar characteristics to those of ours.
Risk-free interest rate—The risk-free interest rate is based on the yield of the U.S. treasury debt securities commensurate with the expected term.
Dividend yield—Because we have never paid and have no intention to pay cash dividends on our common stock, the dividend yield is zero.
For the performance-based award granted to the then CEO, now Executive Chairman, with both a service-based vesting condition and a market condition (as discussed further in Note 12 —Stockholders' Equity and Stock-Based Compensation), we determined the fair value of the award by using the Monte Carlo simulation model. The main assumptions used in the Monte Carlo simulation model include stock price volatility, risk-free interest rate, dividend yield and the measurement period, which is the period over which our simulated stock prices are used to evaluate the possibility of achieving the specified stock price targets. Since both vesting conditions have to be met for each tranche of the award to ultimately vest, the associated stock-based compensation expense is recognized over the longer of the derived service period or the requisite service period, using the accelerated attribution method.
In February 2024, the Board approved performance awards (PRSUs) to be granted to certain members of the executive team subject to service and performance-based vesting conditions (referred to as Executive PRSUs in Note 12—Stockholders' Equity and Stock-Based Compensation). The performance-based vesting conditions include revenue and free cash flow targets. The fair value of each Executive PRSU is based on the fair value of our common stock on the date of grant. Stock-based compensation associated with these Executive PRSUs is recognized using the accelerated attribution method over the requisite service period, based on Freshworks' periodic assessment of the probability that the performance will be achieved. If the performance goals are not met as of the end of the performance period, no compensation expense is recognized and any previously recognized compensation expense is reversed.
Income Taxes
Income Taxes
Income taxes are accounted for under the asset and liability method. Deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases and operating loss and tax credit carryforwards. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are
expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date. A valuation allowance is recorded for deferred tax assets if it is more likely than not that some portion or all of the deferred tax assets will not be realized. As of December 31, 2024 and 2023, we have recorded a full valuation allowance against our U.S. deferred tax assets.
We recognized the effect of income tax positions only if those positions are more likely than not of being sustained. Recognized income tax positions are measured at the largest amount that is more likely than not of being realized. Changes in recognition or measurement are reflected in the period in which the change in judgment occurs.
We recognize interest and penalties related to income tax matters as a component of income tax expense.
Cash and Cash Equivalents
Cash and Cash Equivalents
Cash and cash equivalents consist of deposits held at financial institutions, money market funds, as well as highly liquid investments with an original maturity of three months or less when purchased. Cash and cash equivalents are recorded at cost, which approximates fair value.
Marketable Securities
Marketable Securities
Marketable securities consist primarily of debt securities such as corporate bonds, commercial paper, U.S. treasury securities, U.S. government agency securities and certificates of deposit. These securities are classified as available-for-sale securities at the time of purchase as they represent funds readily available for current operations, and we have the ability and intent to liquidate them at any time to meet our operating cash needs, if necessary. All available-for-sale debt securities are recorded at their estimated fair value, with changes in fair value recognized as unrealized gains or losses in accumulated other comprehensive income. For available-for-sale debt securities in an unrealized loss position, we evaluate whether a current expected credit loss exists based on available information relevant to the credit rating of the security, current economic conditions and reasonable and supportable forecasts. Expected credit losses are recorded in interest and other income, net, on the consolidated statements of income, and any remaining unrealized losses are recognized in accumulated other comprehensive income or loss in the stockholders' equity section of the consolidated balance sheets. Realized gains and losses are determined based on the specific identification method and are reported in interest and other income, net in the consolidated statements of operations.Marketable securities also included mutual funds comprised of certain term bonds. These mutual funds meet certain criteria for equity investments in accordance with ASU 2016-01, Recognition and Measurement of Financial Assets and Liabilities. Under this guidance, we measure mutual funds at their estimated fair value, with changes in fair value recognized in interest and other income, net in the consolidated statements of operations.
Accounts Receivable and Allowance for Credit Losses
Accounts Receivable and Allowance for Credit Losses
Trade accounts receivable are recorded at the invoiced amount, net of allowance for credit losses. The allowance is based on our assessment of the collectability of accounts and is recorded as an offset to revenue and deferred revenue. We regularly review the adequacy of the allowance by considering the age of each outstanding invoice and the collection history.
Concentrations of Risk
Concentrations of Risk
Financial instruments that potentially expose us to significant concentration of credit risk consist primarily of cash, cash equivalents, marketable securities, and accounts receivable. Our cash and cash equivalents and marketable securities are generally held with large financial institutions and are in excess of the federally insured limits provided on such deposits. In addition, we have cash and cash equivalents held in international bank accounts, which are denominated primarily in euros, British pounds, and Indian rupees.
There were no customers that individually exceeded 10% of our revenue for the years ended December 31, 2024, 2023, and 2022, or that represented 10% or more of our consolidated accounts receivable balance as of December 31, 2024 and 2023.
We primarily rely upon third-party cloud infrastructure partner, Amazon Web Services (AWS), to serve customers and operate certain aspects of its services. Any disruption of this cloud infrastructure partner would impact our operations and our business could be adversely impacted.
Derivative Instruments
Derivative Instruments
We enter into foreign currency forward contracts, all of which were designated as cash flow hedges, in order to manage the volatility of cash flows that relate to cost of revenues and operating expenses denominated in Indian rupee. All derivative instruments are measured at fair value based upon quoted market prices for comparable instruments and as such, classified within Level 2 of the fair value hierarchy. Derivative assets and liabilities are presented on a gross basis on the consolidated balance sheets under prepaid expenses and other current assets and accrued liabilities, respectively.
Gains or losses related to cash flow hedges are recorded as a component of accumulated other comprehensive income (AOCI) on the consolidated statements of stockholders' equity until the forecasted transaction occurs in earnings. When the forecasted transaction occurs, the related gains and losses are reclassified into earnings within the financial statement line item associated with the underlying hedged transaction. If the underlying hedged transaction does not occur, or it becomes probable that the hedged transaction will not occur, the cumulative unrealized gain or loss is reclassified immediately from AOCI into earnings within interest and other income. Changes in the fair value of currency forward exchange contracts due to changes in time value were excluded from the assessment of effectiveness. The initial value of this excluded component is amortized on a straight-line basis over the life of the hedging instrument and recognized in the financial statement line item to which the hedge relates. A majority of the balance related to foreign exchange derivative instruments included in AOCI at December 31, 2024 is expected to be reclassified into earnings within 12 months.
Derivative instruments are classified in the consolidated statements of cash flows as cash from operating activities, which reflect the classification of the underlying hedged transactions.
We do not use derivative financial instruments for trading or speculative purposes.
Entering into derivative instruments exposes us to credit risk to the extent that the counterparties are unable to meet the terms of the contract. We mitigate this credit risk by transacting with major financial institutions with high credit ratings. In addition, we have entered into master netting arrangements that mitigate credit risk by permitting net settlement of transactions. As such, our exposure is not considered significant. We do not have any collateral requirements with counterparties.
Deferred Contract Acquisition Costs
Deferred Contract Acquisition Costs
Deferred contract acquisition costs are incremental costs that are associated with acquiring customer contracts and consist primarily of sales commissions and the associated payroll taxes and certain referral fees paid to third-party resellers. The costs incurred upon the execution of initial and expansion contracts are primarily deferred and amortized over an estimated benefit period of three years. The estimated benefit period is determined by taking into consideration our contracts with customers, technology life cycle and other factors. We consider the estimated benefit period to exceed the initial contract term for certain costs because of anticipated renewals and because sales commission rates for renewal contracts are not commensurate with sales commissions for initial contracts. We include amortization of deferred commissions in sales and marketing expense in our consolidated statements of operations. There was no impairment loss in relation to the incremental selling costs capitalized for the years ended December 31, 2024, 2023, and 2022.
We have elected to apply the practical expedient under Accounting Standards Codification (ASC) No. 340-40—Other Assets and Deferred Costs to account for costs incurred in obtaining a contract with a benefit period of one year or less as commission expenses. Deferred contract acquisition costs are included in sales and marketing expense in our consolidated statements of operations.
Property and Equipment, net
Property and Equipment, net
Property and equipment, net, including capitalized internally-developed software, is stated at cost less accumulated depreciation. Depreciation is calculated using the straight-line method over the estimated useful lives of the respective assets as follows:
Estimated Useful Life
Computers3 years
Capitalized internal-use software3 years
Office equipment, furniture and fixtures5 years
Motor vehicles5 years
Leasehold improvements
Lesser of lease term or 5 years
Capitalized Internal-Use Software
Capitalized Internal-Use Software
We capitalize costs incurred in our software development projects and implementation of certain enterprise cloud computing services during the application development stage . Costs related to preliminary project activities and post implementation activities are expensed as incurred. Once the development project is available for general release, capitalization ceases, and we estimate the useful life of the asset and begin amortization. Internal-use software and cloud computing services are amortized on a straight-line basis over its estimated useful life.
Long-Lived Assets (Including Goodwill)
Long-Lived Assets (Including Goodwill)
Long-lived assets with finite lives include property and equipment, capitalized internal-use software and right-of-use (ROU) assets. We evaluate long-lived assets for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. Recoverability of assets held and used is measured by comparison of the carrying amount of an asset or an asset group to estimated undiscounted future net cash flows expected to be generated by the asset or asset group. If the carrying amount of an asset or asset group exceeds these estimated future cash flows, an impairment charge is recognized in the amount by which the carrying amount of the assets exceeds the fair value of the asset or asset group.
Goodwill Goodwill is not amortized but rather is tested for impairment annually in the fourth quarter, or more frequently if events or changes in circumstances indicate that goodwill may be impaired. We elected to bypass the qualitative assessment, and performed a quantitative goodwill impairment test. Goodwill impairment is recognized when the quantitative assessment results in the carrying value of the reporting unit exceeding its fair value, in which case an impairment charge in the amount of such excess is recorded to goodwill, limited to the amount of goodwill.
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 are presented in conformity with the two-class method required for participating securities. 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 number of weighted-average shares of common stock outstanding during the reporting period. Diluted net loss per share attributable to common stockholders adjusts basic net loss per share for the potentially dilutive impact of outstanding stock options, RSUs, PRSUs, and stock purchases rights granted under the ESPP. The dilutive potential shares are computed using the treasury stock method. Because we have reported net losses for all periods presented, all potentially dilutive securities are considered antidilutive, and accordingly, diluted net loss per share is the same as basic net loss per share.
Defined Benefit Plan
Defined Benefit Plan
Employees in India are entitled to benefits under the Gratuity Act, a defined benefit retirement plan covering eligible employees. The plan requires employers to provide for a lump-sum payment to eligible employees at retirement, death, and incapacitation or on termination of employment, of an amount based on the respective employee’s salary and tenure of employment. Employees in India are also entitled to a defined benefit plan with benefits based on an employee’s accumulated leave balance and salary. Both plans are unfunded arrangements.
Current service costs are accrued in the period to which they relate. The benefit obligations are calculated by a qualified actuary using the projected unit credit method and the unfunded position is recognized as a liability in the consolidated balance sheets. In measuring the defined benefit obligations, we use a discount rate at the reporting date based on yields of local government treasury bills denominated in the same currency in which the benefits are expected to be paid, with maturities approximating the terms of our obligations.
Because the plan is unfunded, no annual contributions are required to be made as per applicable regulations. Disclosures required under ASC 715—Compensation—Retirement Benefits, have been omitted because we have deemed them immaterial to our consolidated financial statements.
Leases
Leases
We lease office space under operating leases with expiration dates through 2032. We determine whether an arrangement constitutes a lease and records lease liabilities and ROU assets on our consolidated balance sheets at the lease commencement date. Lease liabilities are measured based on the present value of the total lease payments not yet paid, discounted based on either the rate implicit in the lease or our incremental borrowing rate (the estimated rate we would be required to pay for a collateralized borrowing equal to the total lease payments over the term of the lease), whichever is more readily determinable. The incremental borrowing rate is based on an estimate of our expected unsecured borrowing rate for its notes, adjusted for tenor and collateralized security features. Lease liabilities due within 12 months are included within accrued liabilities on our consolidated balance sheets. ROU assets are measured based on the corresponding lease liability adjusted for (i) payments made to the lessor at or before the lease commencement date, (ii) initial direct costs incurred, and (iii) tenant incentives received, incurred or payable under the lease. Recognition of rent expense begins when the lessor makes the underlying asset available to us. We do not assume renewals or early terminations of its leases unless it is reasonably certain to exercise these options at commencement and does not allocate consideration between lease and non-lease components.
For short-term leases, we record rent expense in our consolidated statements of operations on a straight-line basis over the lease term and records variable lease payments as incurred.
Restructuring Charges
Restructuring Charges
Costs associated with our restructuring plan primarily consist of severance payments, benefits continuation, and other employee separation costs. In general, we record involuntary employee-related exit costs when we communicate to employees that they are entitled to receive such benefits and the amount can be reasonably estimated. Related costs are included in restructuring charges in the consolidated statements of operations. The remaining restructuring liability is included in accrued liabilities in the consolidated balance sheet.
Recent Accounting Pronouncements
Recent Accounting Pronouncements
Accounting Standards Recently Adopted
In November 2023, the Financial Accounting Standards Board (FASB) issued ASU 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures. ASU 2023-07 requires a public entity to disclose significant segment expenses and other segment items on an annual and interim basis and to provide in interim periods all disclosures about a reportable segment's profit and loss and assets that are currently required annually. Public entities with a single reportable segment are required to provide the new disclosures and all the disclosures required under ASC 280. This authoritative guidance is required to be applied retrospectively and effective for Freshworks starting in its annual disclosures for 2024 and interim periods starting 2025. We adopted this ASU on January 1, 2024. See Note 11—Segment and Geographic Information for additional details.
Accounting Standards Not Yet Adopted
In December 2023, the FASB issued ASU 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures. ASU 2023-09 requires entities to provide more information in the rate reconciliation table and about income taxes paid, including certain disclosures that would be disaggregated by jurisdiction and other categories. This authoritative guidance should be applied prospectively and will be effective for us starting in our annual disclosures for 2025. Retrospective application is permitted. This guidance is only related to disclosures and is not expected to have a significant impact on our consolidated financial statements.
In November 2024, the FASB issued ASU No. 2024-03, Income Statement-Reporting Comprehensive Income-Expense Disaggregation Disclosures. Additionally, in January 2025, the FASB issued ASU 2025-01 to clarify the effective date of ASU 2024-03. The standard provides guidance to expand disclosures related to the disaggregation of income statement expenses, which requires more detailed information about specified categories of expenses included in certain expense captions presented on the face of the income statement. This authoritative guidance is effective for us starting in our annual disclosures for 2027 and interim periods starting 2028. Early adoption is permitted. The amendments may be applied either (1) prospectively to financial statements issued for reporting periods after the effective date of this ASU or (2) retrospectively to all prior periods presented in the financial statements. This guidance is only related to disclosure and is not expected to have a significant impact on our consolidated financial statements.
Fair Value Measurements
4. Fair Value Measurements
We measure our financial assets at fair value each reporting period using a fair value hierarchy that prioritizes the use of observable inputs and minimizes the use of unobservable inputs when measuring fair value. The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1 measurements) and the lowest priority to measurements involving significant unobservable inputs (Level 3 measurements). The three levels of the fair value hierarchy are as follows:
Level 1—Inputs are observable and reflect quoted prices in active markets for identical assets or liabilities that we have the ability to access at the measurement date.
Level 2—Inputs other than quoted prices included within Level 1 that are observable, either directly or indirectly.
Level 3—Inputs that are unobservable.
Money market funds and U.S. treasury securities are classified within Level 1 because they are valued using quoted market prices or alternative pricing sources and models utilizing market observable inputs. Other debt securities and investments are classified within Level 2 if the investments are valued using model driven valuations which use observable inputs such as quoted market prices, benchmark yields, reported trades, broker/dealer quotes or alternative pricing sources with reasonable levels of price transparency. Available-for-sale debt securities are held by custodians who obtain investment prices from a third-party pricing provider that incorporates standard inputs in various asset price models.
v3.25.0.1
Summary of Significant Accounting Policies (Tables)
 12 Months Ended
Dec. 31, 2024
Accounting Policies [Abstract]  
Useful Lives of Property, Plant and Equipment Depreciation is calculated using the straight-line method over the estimated useful lives of the respective assets as follows:
Estimated Useful Life
Computers3 years
Capitalized internal-use software3 years
Office equipment, furniture and fixtures5 years
Motor vehicles5 years
Leasehold improvements
Lesser of lease term or 5 years
The following table summarizes property and equipment, net as of December 31, 2024 and 2023 (in thousands):
December 31,
20242023
Computers$19,694 $17,188 
Capitalized internal-use software34,255 28,259 
Office equipment6,700 4,357 
Furniture and fixtures10,066 8,886 
Motor vehicles400 808 
Leasehold improvements7,847 5,768 
Construction in progress13 751 
Total property and equipment78,975 66,017 
Less: accumulated depreciation and amortization(53,082)(43,270)
Property and equipment, net$25,893 $22,747 
The following table summarizes depreciation expense and internal-use software capitalization and amortization expense for the years ended December 31, 2024, 2023 and 2022 (in thousands):
Year Ended December 31,
202420232022
Capitalization of costs associated with internal-use software$6,843 $8,029 $6,781 
Amortization expense of capitalized internal-use software5,631 5,106 3,193 
Depreciation expense5,623 6,735 6,720 
v3.25.0.1
Cash Equivalents and Marketable Securities (Tables)
 12 Months Ended
Dec. 31, 2024
Investments, Debt and Equity Securities [Abstract]  
Schedule of Available-for-Sale Securities Reconciliation
Cash equivalents and available-for-sale debt securities consisted of the following as of December 31, 2024 and 2023 (in thousands):
December 31, 2024
Amortized CostUnrealized GainsUnrealized LossesFair Value
Cash equivalents:
Money market funds$507,655 $— $— $507,655 
Total cash equivalents507,655 — — 507,655 
Debt securities:
U.S. treasury securities215,773 612 (17)216,368 
U.S. government agency securities144,474 321 (12)144,783 
Corporate debt securities62,070 101 (21)62,150 
Certificates of deposit
26,449 — — 26,449 
Total debt securities448,766 1,034 (50)449,750 
Total cash equivalents and debt securities$956,421 $1,034 $(50)$957,405 
December 31, 2023
Amortized CostUnrealized GainsUnrealized LossesFair Value
Cash equivalents:
Money market funds$77,832 $— $— $77,832 
U.S. treasury securities239,727 22 — 239,749 
U.S. government agency securities8,388 1 — 8,389 
Corporate debt securities36,905 — — 36,905 
Total cash equivalents362,852 23 — 362,875 
Debt securities:
U.S. treasury securities264,554 339 (398)264,495 
U.S. government agency securities366,946 571 (824)366,693 
Corporate debt securities66,777 72 (109)66,740 
Total debt securities698,277 982 (1,331)697,928 
Total cash equivalents and debt securities$1,061,129 $1,005 $(1,331)$1,060,803 
Schedule of Available-for-Sale, Unrealized Loss Position, Fair Value
The following table presents gross unrealized losses and fair values for the securities that were in a continuous unrealized loss position as of December 31, 2024 and 2023 (in thousands):
December 31, 2024
Less than 12 monthsGreater than 12 monthsTotal
Fair ValueUnrealized LossFair ValueUnrealized LossFair ValueUnrealized Loss
U.S. treasury securities$13,819 $(16)$4,993 $(1)$18,812 $(17)
U.S. government agency securities8,197 (7)9,995 (5)18,192 (12)
Corporate debt securities7,998 (19)5,982 (2)13,980 (21)
Total$30,014 $(42)$20,970 $(8)$50,984 $(50)
December 31, 2023
Less than 12 monthsGreater than 12 monthsTotal
Fair ValueUnrealized LossFair ValueUnrealized LossFair ValueUnrealized Loss
U.S. treasury securities$60,869 $(159)$42,667 $(239)$103,536 $(398)
U.S. government agency securities145,594 (364)80,455 (460)226,049 (824)
Corporate debt securities14,749 (59)12,934 (50)27,683 (109)
Total$221,212 $(582)$136,056 $(749)$357,268 $(1,331)
Schedule of Amortized Costs and Fair Value of Debt Securities Based on Contractual Maturities
The amortized cost and fair value of the available-for-sale debt securities based on contractual maturities are as follows (in thousands):
December 31, 2024
Amortized CostFair Value
Due within one year$396,130 $396,898 
Due after one year but within five years52,636 52,852 
Total$448,766 $449,750 
v3.25.0.1
Fair Value Measurements (Tables)
 12 Months Ended
Dec. 31, 2024
Fair Value Disclosures [Abstract]  
Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis
The following table represents the fair value hierarchy for our financial assets measured at fair value on a recurring basis as of December 31, 2024 and 2023 (in thousands):
December 31, 2024
Fair Value Measured Using
Level 1Level 2Total
Financial assets:
Cash equivalents:
Money market funds$507,655 $— $507,655 
Marketable securities:
U.S. treasury securities216,368 — 216,368 
U.S. government agency securities— 144,783 144,783 
Corporate debt securities— 62,150 62,150 
Certificates of deposit
— 26,449 26,449 
Total financial assets$724,023 $233,382 $957,405 
December 31, 2023
Fair Value Measured Using
Level 1Level 2Total
Financial assets:
Cash equivalents:
Money market funds$77,832 $— $77,832 
U.S. treasury securities239,749 — 239,749 
U.S. government agency securities— 8,389 8,389 
Corporate debt securities— 36,905 36,905 
Marketable securities:
U.S. treasury securities264,495 — 264,495 
U.S. government agency securities— 366,693 366,693 
Corporate debt securities— 66,740 66,740 
Term bond mutual funds— 1,578 1,578 
Total financial assets$582,076 $480,305 $1,062,381 
v3.25.0.1
Balance Sheet Components (Tables)
 12 Months Ended
Dec. 31, 2024
Organization, Consolidation and Presentation of Financial Statements [Abstract]  
Property, Plant and Equipment Depreciation is calculated using the straight-line method over the estimated useful lives of the respective assets as follows:
Estimated Useful Life
Computers3 years
Capitalized internal-use software3 years
Office equipment, furniture and fixtures5 years
Motor vehicles5 years
Leasehold improvements
Lesser of lease term or 5 years
The following table summarizes property and equipment, net as of December 31, 2024 and 2023 (in thousands):
December 31,
20242023
Computers$19,694 $17,188 
Capitalized internal-use software34,255 28,259 
Office equipment6,700 4,357 
Furniture and fixtures10,066 8,886 
Motor vehicles400 808 
Leasehold improvements7,847 5,768 
Construction in progress13 751 
Total property and equipment78,975 66,017 
Less: accumulated depreciation and amortization(53,082)(43,270)
Property and equipment, net$25,893 $22,747 
The following table summarizes depreciation expense and internal-use software capitalization and amortization expense for the years ended December 31, 2024, 2023 and 2022 (in thousands):
Year Ended December 31,
202420232022
Capitalization of costs associated with internal-use software$6,843 $8,029 $6,781 
Amortization expense of capitalized internal-use software5,631 5,106 3,193 
Depreciation expense5,623 6,735 6,720 
Schedule of Accrued Liabilities
The following table summarizes accrued liabilities as of December 31, 2024 and 2023 (in thousands):
December 31,
20242023
Accrued compensation$28,269 $20,976 
Accrued reseller commissions11,569 9,641 
Accrued advertising and marketing expenses4,414 2,095 
Advanced payments from customers4,487 4,265 
Accrued taxes14,747 10,964 
Operating lease liabilities, current8,073 2,699 
Contributions withheld for employee stock purchase plan1,127 1,298 
Unsettled share repurchases
1,840 — 
Other accrued expenses7,407 4,670 
Total accrued liabilities$81,933 $56,608 
v3.25.0.1
Business Combination (Tables)
 12 Months Ended
Dec. 31, 2024
Goodwill and Intangible Assets Disclosure [Abstract]  
Schedule of Business Acquisitions, by Acquisition The following table summarizes the preliminary fair value of assets acquired and liabilities assumed as of the date of acquisition:
Amount
(in thousands)
Assets acquired:
Cash
$11,432 
Trade accounts and other receivables
8,916 
Prepaid expenses and other current assets
1,792 
Customer relationships
67,600 
Developed technology
30,700 
Trademarks
700 
Goodwill
140,833 
Total
$261,973 
Liabilities assumed:
Accounts payable and other current liabilities
3,510 
Deferred revenue
6,080 
Deferred tax liability
14,278 
Total
23,868 
Total purchase price consideration
$238,105 
Business Acquisition, Pro Forma Information
The following unaudited supplemental pro forma financial information is provided for informational purposes only and summarizes our combined results of operations as if the acquisition had occurred on January 1, 2023 (in thousands):
Year Ended December 31,
20242023
Revenue
$735,591 $631,608 
Net loss
(99,999)(151,546)
v3.25.0.1
Goodwill and Intangible Assets, Net (Tables)
 12 Months Ended
Dec. 31, 2024
Goodwill and Intangible Assets Disclosure [Abstract]  
Changes in Carrying Value of Goodwill
The change in the carrying amounts of goodwill is presented below (in thousands):
Balance as of December 31, 2023$6,181 
Goodwill acquired
140,833 
Balance as of December 31, 2024$147,014 
Schedule of Finite-Lived Intangible Assets The following table summarizes acquired intangible assets as of December 31, 2024 (amounts in thousands):
December 31, 2024
Gross AmountAccumulated AmortizationNet Carrying ValueWeighted Average Remaining Useful Life
(in years)
Developed technology$41,196 $(13,423)$27,773 5.4
Customer relationships69,200 (6,433)62,767 7.4
Trademarks
$700 $(400)$300 0.4
Total$111,096 $(20,256)$90,840 
Finite-lived Intangible Assets Amortization Expense
Total amortization of acquired intangible assets for the years ended December 31, 2024, 2023, and 2022 is as follows (in thousands):
Year Ended December 31,
202420232022
Cost of revenue$2,927 $158 $1,191 
Sales and marketing$5,233 145400
Total amortization expense$8,160 $303 $1,591 
Summary of Estimated Future Amortization Expense
As of December 31, 2024, expected future amortization expense related to acquired intangible assets is as follows (in thousands):
Year Ending December 31,
2025$13,854 
202613,553 
202713,553 
202813,591 
202913,553 
Thereafter
22,736 
Total future amortization
$90,840 
v3.25.0.1
Leases (Tables)
 12 Months Ended
Dec. 31, 2024
Leases [Abstract]  
Lease, Cost
The following table presents various components of the lease costs (in thousands):
Year Ended December 31,
Operating Leases20242023
Operating lease cost$12,093 $10,415 
Short-term lease cost489 415 
Variable lease cost3,842 3,190 
Total lease cost
$16,424 $14,020 
The weighted-average remaining term of our operating leases and the weighted-average discount rate used to measure the present value of the operating lease liabilities are as follows:
December 31,
Lease Term and Discount Rate20242023
Weighted-average remaining lease term (in years)4.345.21
Weighted-average discount rate9.0 %9.1 %
The following table presents supplemental information arising from lease transactions. Cash payments related to short-term leases are not included in the measurement of the operating lease liabilities, and as such, are excluded from the amounts below (in thousands):
Year Ended December 31,
Supplemental Cash Flow Information:20242023
Cash payments included in the measurement of operating lease liabilities$6,808 $15,526 
Operating ROU assets obtained in exchange for lease obligations13,275 7,461 
Lessee, Operating Lease, Liability, Maturity
Maturities of the operating lease liabilities are as follows (in thousands):
Year Ending December 31:Operating Leases
2025$12,032 
202611,278 
20279,522 
20288,628 
20294,335 
Thereafter3,590 
Total lease payments49,385 
Less: imputed interest(11,091)
Present value of operating lease liabilities$38,294 
v3.25.0.1
Commitment and Contingencies (Tables)
 12 Months Ended
Dec. 31, 2024
Commitments and Contingencies Disclosure [Abstract]  
Schedule of Future Minimum Payments Under the Company’s Non-cancelable Purchase Commitments Future minimum payments under our non-cancelable purchase commitments as of December 31, 2024 are presented in the table below (in thousands):
Year ending December 31,Contractual Commitments
2025$64,753 
202672,045 
202773,569 
202868,319 
2029133 
Total$278,819 
v3.25.0.1
Revenue from Contracts with Customers (Tables)
 12 Months Ended
Dec. 31, 2024
Revenue from Contract with Customer [Abstract]  
Disaggregation of Revenue
The following table summarizes revenue by our service offerings (in thousands):
Year Ended December 31,
202420232022
Subscription services, software licenses and maintenance
$710,744 $582,868 $485,322 
Professional services9,676 13,564 12,677 
Total revenue$720,420 $596,432 $497,999 
Deferred Revenue and Remaining Performance Obligations The following table summarizes the changes in the balance of deferred revenue during the years (in thousands):
Year Ended December 31,
202420232022
Balance at beginning of the year (2)
$266,399 $205,626 $160,173 
Add: Billings during the year (1)
781,309 657,205 543,452 
Less: Revenue recognized during the year(720,420)(596,432)(497,999)
Balance at end of the year (2)
$327,288 $266,399 $205,626 
(1) Includes deferred revenue and unbilled receivables acquired as part of D42 Parent, Inc. acquisition and changes in unbilled receivable.
(2) As of December 31, 2024 and 2023, non-current deferred revenue of $3.9 million and $0 was included in Other Liabilities in the consolidated balance sheets, respectively.
Deferred Contract Acquisition Costs
The change in the balance of deferred contract acquisition costs during the periods presented is as follows (in thousands):
Year Ended December 31,
202420232022
Balance at beginning of the year$42,672 $39,675 $29,647 
Add: Contract costs capitalized during the year34,524 26,962 28,560 
Less: Amortization of contract costs during the year(28,556)(23,965)(18,532)
Balance at end of the year$48,640 $42,672 $39,675 
v3.25.0.1
Segment and Geographic Information (Tables)
 12 Months Ended
Dec. 31, 2024
Segment Reporting [Abstract]  
Revenue from External Customers by Geographic Areas
Revenue by geographic location is determined based on the customers' billing address. The following table summarizes revenue by geographic region (in thousands):
Year Ended December 31,
202420232022
North America$329,934 $266,331 $216,112 
Europe, Middle East and Africa277,851 229,983 193,899 
Asia Pacific91,442 83,109 74,948 
Other21,193 17,009 13,040 
Total revenue$720,420 $596,432 $497,999 
Long-Lived Assets by Geographic Areas
Long-lived assets consist primarily of property, plant and equipment and ROU assets. The following table summarizes long-lived assets by geographic information (in thousands):
December 31,
20242023
North America$20,052 $22,635 
Europe, Middle East and Africa8,391 2,244 
Asia Pacific34,341 30,617 
Total long-lived assets$62,784 $55,496 
v3.25.0.1
Stockholders' Equity and Stock Based Compensation (Tables)
 12 Months Ended
Dec. 31, 2024
Share-Based Payment Arrangement [Abstract]  
Schedule of Accumulated Other Comprehensive Income (Loss)
The following tables shows the changes in the components of accumulated other comprehensive (loss) income:
Year Ended December 31,
202420232022
Beginning balance$(754)$(7,431)$(747)
Unrealized gains (losses) on available-for-sale debt securities
1,310 7,105 (6,684)
Net change on cash flow hedging
(894)(428)— 
Net impact to other comprehensive (loss) income in current period
416 6,677 (6,684)
Ending balance$(338)$(754)$(7,431)
Summary of Common Shares Reserved for Future Issuance
Shares of common stock reserved for future issuance were as follows (in thousands):
December 31,
2024
2011 Stock Plan:
Options, RSUs and PRSUs outstanding
1,867 
2021 Equity Incentive Plan:
Options and RSUs outstanding
19,776 
Shares reserved for future award issuances81,101 
2022 Inducement Plan:
Options and RSUs outstanding2,723 
Shares reserved for future award issuances6,664 
2021 Employee Stock Purchase Plan
Shares reserved for future award issuances12,972 
Total awards outstanding and shares of common stock reserved for issuance
125,103 
Summary of Employee Stock Purchase Plan The following table summarizes the information on shares purchased under the ESPP for the years ended December 31, 2024 and 2023:
Year Ended December 31,
202420232022
Net shares issued under ESPP(1)
569,003 627,371 822,423 
Weighted average purchase price
$11.81 $11.88 $13.33 
Aggregate net proceeds (in thousands)
$6,643 $7,271 $10,870 
(1)     Net of shares withheld and retired to satisfy withholding tax requirements for certain employees in jurisdictions outside the United States
Summary of Valuation Assumptions of Employee Stock Purchase Plan The following table summarizes the range of valuation assumptions used in estimating the fair value of the ESPP during the period:
Year Ended December 31,
Valuation Assumption Inputs202420232022
Expected term (in years)
0.5 - 2.0
0.5 - 1.5
0.5 - 2.0
Stock price volatility
48.3% - 57.2%
47.4% - 77.3%
55.8% - 84.5%
Risk-free interest rate
4.29% - 5.41%
4.47% - 5.38%
1.54% - 4.62%
Dividend yield0.00%0.00%0.00%
Schedule of Stock Option Activity
Stock option activity during the year ended December 31, 2024 is as follows (in thousands, except per share data):
Share Information:Number of SharesWeighted-Average Exercise PriceWeighted-Average Remaining Contractual Term (in years)
Aggregate Intrinsic Value (1)
Balance as of December 31, 20232,395 $10.39 7.0$31,368 
Assumed and converted options from acquisition (Note 6)
512 $3.26 
Stock options exercised(338)$0.26 
Balance as of December 31, 20242,569 $10.3 7.4$15,066 
Options vested and expected to vest as of December 31, 20242,569 $10.3 7.4$15,066 
Options exercisable as of December 31, 20241,262 $11.08 6.3$6,425 
(1)Aggregate intrinsic value for stock options represents the difference between the exercise price and the per share fair value of our common stock as of the end of the period, multiplied by the number of stock options outstanding, exercisable, or vested.
Schedule of Share-based Payment Award, Stock Options, Valuation Assumptions The following table summarizes the valuation assumptions used in estimating the fair value of stock options assumed and granted for the years presented:
Year Ended December 31,
Valuation Assumption Inputs20242022
Expected term (in years)6.06.1
Stock price volatility65.0%65.0%
Risk-free interest rate4.29%3.37%
Dividend yield—%—%
Schedule of Restricted Stock Unit Activity
RSU activity, which includes PRSUs, during the year ended December 31, 2024 is as follows (in thousands, except per share data):
Share Information:Number of SharesWeighted-Average Grant Date Fair Value
Unvested, as of December 31, 202326,755 $18.44 
Granted (1)
17,482 $19.01 
Vested (2)
(9,747)$18.47 
Forfeited/Cancelled (3)
(12,693)$19.02 
Unvested, as of December 31, 202421,797 $18.54 
(1)    During the year ended December 31, 2024, shares granted includes 0.9 million shares granted to the Executive Chairman as long-term equity incentive award accounted for as a modification. The weighted average grant date fair value was $69.78 per share. Refer to the Executive Chairman Awards discussion below.
(2)    During the year ended December 31, 2024 total shares that vested were 9.7 million, of which 3.7 million shares were withheld for tax purposes.
(3)     Shares forfeited includes the cancellation of the 2021 Executive Chairman Performance Award consisting of 6,000,000 PRSUs discussed in the Executive Chairman Awards section below.
Summary of Valuation Assumptions, CEO Performance Award
The valuation assumptions using the Monte Carlo simulation model at the date of grant were:
Valuation Assumption Inputs
Measurement period (in years)7.0
Stock price volatility60.0%
Risk-free interest rate1.12%
Dividend yield—%
Stock-based Compensation Expense
Total stock-based compensation expense recorded for the years ended December 31, 2024, 2023, and 2022 was as follows (in thousands):
Year Ended December 31,
202420232022
Equity awards:
Cost of revenue$6,565 $6,774 $7,039 
Research and development (1)
41,512 37,524 36,413 
Sales and marketing (2)
63,219 66,755 64,328 
General and administrative (3)
105,410 99,654 99,916 
Stock-based compensation, net of amounts capitalized216,706 210,707 207,696 
Capitalized stock-based compensation1,358 1,758 1,665 
Total stock-based compensation expense$218,064 $212,465 $209,361 
(1) Stock-based compensation expense recorded to research and development in the consolidated statements of operations excludes amounts that were capitalized for internal-use software.
(2) Sales and marketing expense for the years ended December 31, 2024, 2023, and 2022 includes $6.5 million, $9.6 million, and $3.2 million, respectively, of stock-based compensation expense associated with RSUs, PRSUs and options granted to the President. After the appointment of the President as our Chief Executive Officer, stock-based compensation expenses were included in General and Administrative.
(3) General and administrative expense includes stock-based compensation associated with RSUs and PRSUs granted to our Executive Chairman of $50.4 million, $55.9 million and $55.9 million for the years ended December 31, 2024, 2023 and 2022, respectively.
Share-Based Payment Arrangement, Nonvested Award, Cost
As of December 31, 2024, unrecognized stock-based compensation expense related to unvested stock-based awards was as follows (in thousands, except for period data):
December 31, 2024
Unrecognized Stock-Based CompensationWeighted-Average Period to Recognize Expense (in years)
RSUs and PSUs$349,675 2.6
Stock options7,503 1.6
ESPP5,392 1.1
Total unrecognized stock-based compensation expense$362,570 
v3.25.0.1
Restructuring Charges (Tables)
 12 Months Ended
Dec. 31, 2024
Restructuring and Related Activities [Abstract]  
Restructuring and Related Costs
The following table shows the total amount incurred and accrued related to restructuring charges (in thousands):
Amount
Accrued restructuring costs as of December 31, 2023
$— 
Restructuring charges incurred during the period
9,664 
Amounts paid during the period
7,314 
Accrued restructuring costs as of December 31, 2024
$2,350 
v3.25.0.1
Income Taxes (Tables)
 12 Months Ended
Dec. 31, 2024
Income Tax Disclosure [Abstract]  
Schedule of Income before Income Tax, Domestic and Foreign
Our net loss before provision for income taxes for the years ended December 31, 2024, 2023, and 2022 was as follows (in thousands):
Year Ended December 31,
202420232022
Domestic$(130,763)$(165,144)$(252,261)
Foreign39,926 41,375 31,471 
Total$(90,837)$(123,769)$(220,790)
Schedule of Components of the Provision for Income Taxes
The components of the provision for income taxes for the years ended December 31, 2024, 2023, and 2022 were as follows (in thousands):
Year Ended December 31,
202420232022
Current:
Domestic$3,381 $2,810 $2,137 
Foreign13,792 12,179 11,610 
Deferred:
Domestic(14,165)— — 
Foreign1,523 (1,322)(2,405)
Total provision for income taxes$4,531 $13,667 $11,342 
Schedule of Effective Income Tax Rate Reconciliation
The following is a reconciliation of the federal statutory income tax rate to our effective tax rate for the years ended December 31, 2024, 2023, and 2022:
Year Ended December 31,
202420232022
Federal income tax21.0 %21.0 %21.0 %
Stock-based compensation(23.9)(16.9)(1.6)
Change in valuation allowance4.3 (6.4)(22.4)
Foreign tax rate differential
(4.9)— — 
Earnings from foreign subsidiaries(2.1)(1.8)(1.2)
Uncertain tax positions
(3.2)(2.1)— 
U.S. taxes on foreign operations
3.5 (4.8)— 
Other items0.3 — (0.9)
Total provision for income taxes(5.0)%(11.0)%(5.1)%
Schedule of Deferred Tax Assets and Liabilities
The components of our net deferred tax assets as of December 31, 2024 and 2023, were as follows (in thousands):
December 31,
20242023
Deferred tax assets:
Net operating loss carryforwards$58,907 $81,373 
Foreign tax credit carryforwards8,489 5,999 
Capitalized R&E under IRC 17498,274 65,478 
Stock-based compensation6,705 3,672 
Accruals and reserves
9,965 8,948 
Depreciation and amortization— 3,328 
Allowance for uncollectible accounts412 1,003 
Operating lease liability9,518 6,877 
Total deferred tax assets192,270 176,678 
Less: valuation allowance(151,738)(154,788)
Deferred tax assets, net of valuation allowance40,532 21,890 
Deferred tax liabilities:
Commissions(6,102)(5,926)
Depreciation and amortization
(17,159)— 
Operating lease right-of-use assets(8,772)(5,951)
Net deferred tax assets$8,499 $10,013 
Schedule of Unrecognized Tax Benefits
The following table presents a reconciliation of the beginning and ending amount of the unrecognized tax benefits (in thousands):
Year Ended December 31,
20242023
Unrecognized gross tax benefits at the beginning of the period$5,634 $3,647 
Increases related to prior year tax positions449 — 
Decreases related to prior year tax positions— (22)
Increases in current year unrecognized benefits2,061 2,009 
Unrecognized gross tax benefits at the end of the period$8,144 $5,634 
v3.25.0.1
Net Loss Per Share (Tables)
 12 Months Ended
Dec. 31, 2024
Earnings Per Share [Abstract]  
Schedule of Earnings Per Share, Basic and Diluted
The following table sets forth the computation of basic and diluted net loss per share attributable to common stockholders (in thousands, except per share data):
Year Ended December 31,
202420232022
Numerator:
Net loss$(95,368)$(137,436)$(232,132)
Net loss attributable to Class A and Class B common stockholders - basic and diluted$(95,368)$(137,436)$(232,132)
Denominator:
Weighted-average shares used in computing net loss per share attributable to Class A and Class B common stockholders - basic and diluted300,843 293,087 284,587 
Net loss per share attributable to Class A and Class B common stockholders - basic and diluted$(0.32)$(0.47)$(0.82)
Schedule of Potential Common Equivalents Excluded from Computation of Diluted Net Loss per Share
The following table summarizes the potential common equivalents that were excluded from the computation of diluted net loss per share attributable to Class A and Class B common stockholders for the periods presented (in thousands):
Year Ended December 31,
202420232022
RSUs and PRSUs21,797 26,755 32,253 
Stock options2,569 2,395 2,758 
ESPP96 109 124 
Total24,462 29,259 35,135 
v3.25.0.1
Description of Business (Details)
$ in Millions
 1 Months Ended
Jun. 30, 2024
USD ($)
D42 Parent Inc (Device42)  
Business Acquisition [Line Items]  
Acquisition date cash consideration paid $ 238.1
v3.25.0.1
Summary of Significant Accounting Policies - Narrative (Details) - USD ($)
 12 Months Ended
Dec. 31, 2024
Dec. 31, 2023
Dec. 31, 2022
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]      
Advertising costs $ 41,400,000 $ 41,200,000 $ 47,200,000
Dividend yield 0.00%    
Credit loss on available-for-sale debt securities $ 0 0 0
Capitalized contract costs, amortization period 3 years    
Impairment loss on incremental selling costs capitalized $ 0 0 0
Impairment of goodwill 0 0 $ 0
Plan benefit obligation 11,400,000 11,900,000  
Liability, defined benefit plan, noncurrent 9,600,000 10,500,000  
Liability, defined benefit plan, current $ 1,800,000 $ 1,400,000  
Capitalized internal-use software      
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]      
Estimated useful life 3 years    
v3.25.0.1
Summary of Significant Accounting Policies - Property and Equipment (Details)
Dec. 31, 2024
Computers  
Property, Plant and Equipment [Line Items]  
Estimated Useful Life 3 years
Capitalized internal-use software  
Property, Plant and Equipment [Line Items]  
Estimated Useful Life 3 years
Office equipment, furniture and fixtures  
Property, Plant and Equipment [Line Items]  
Estimated Useful Life 5 years
Motor vehicles  
Property, Plant and Equipment [Line Items]  
Estimated Useful Life 5 years
Leasehold improvements  
Property, Plant and Equipment [Line Items]  
Estimated Useful Life 5 years
v3.25.0.1
Cash Equivalents and Marketable Securities - Schedule of Carrying Amounts and Fair Values of Debt Securities (Details) - USD ($)
$ in Thousands
Dec. 31, 2024
Dec. 31, 2023
Debt Securities, Available-for-sale [Line Items]    
Unrealized Gains $ 1,034 $ 1,005
Unrealized Losses (50) (1,331)
Cash Equivalents And Available-For-Sale Debt Securities [Abstract]    
Amortized Cost 956,421 1,061,129
Fair Value 957,405 1,060,803
Cash equivalents    
Debt Securities, Available-for-sale [Line Items]    
Unrealized Gains 0 23
Unrealized Losses 0 0
Cash Equivalents And Available-For-Sale Debt Securities [Abstract]    
Amortized Cost 507,655 362,852
Fair Value 507,655 362,875
Cash equivalents | Money market funds    
Debt Securities, Available-for-sale [Line Items]    
Cash equivalents: 507,655 77,832
Cash equivalents | U.S. treasury securities    
Debt Securities, Available-for-sale [Line Items]    
Total   239,727
Unrealized Gains   22
Unrealized Losses   0
Fair Value   239,749
Cash equivalents | U.S. government agency securities    
Debt Securities, Available-for-sale [Line Items]    
Total   8,388
Unrealized Gains   1
Unrealized Losses   0
Fair Value   8,389
Cash equivalents | Corporate debt securities    
Debt Securities, Available-for-sale [Line Items]    
Total   36,905
Unrealized Gains   0
Unrealized Losses   0
Fair Value   36,905
Debt securities    
Debt Securities, Available-for-sale [Line Items]    
Total 448,766 698,277
Unrealized Gains 1,034 982
Unrealized Losses (50) (1,331)
Fair Value 449,750 697,928
Debt securities | U.S. treasury securities    
Debt Securities, Available-for-sale [Line Items]    
Total 215,773 264,554
Unrealized Gains 612 339
Unrealized Losses (17) (398)
Fair Value 216,368 264,495
Debt securities | U.S. government agency securities    
Debt Securities, Available-for-sale [Line Items]    
Total 144,474 366,946
Unrealized Gains 321 571
Unrealized Losses (12) (824)
Fair Value 144,783 366,693
Debt securities | Corporate debt securities    
Debt Securities, Available-for-sale [Line Items]    
Total 62,070 66,777
Unrealized Gains 101 72
Unrealized Losses (21) (109)
Fair Value 62,150 $ 66,740
Marketable securities    
Debt Securities, Available-for-sale [Line Items]    
Total 448,766  
Fair Value 449,750  
Marketable securities | Certificates of deposit    
Debt Securities, Available-for-sale [Line Items]    
Total 26,449  
Unrealized Gains 0  
Unrealized Losses 0  
Fair Value $ 26,449  
v3.25.0.1
Cash Equivalents and Marketable Securities - Schedule of Continuous Unrealized Loss Position and Fair Values of Debt Securities (Details) - USD ($)
$ in Thousands
Dec. 31, 2024
Dec. 31, 2023
Fair Value    
Less than 12 months $ 30,014 $ 221,212
Greater than 12 months 20,970 136,056
Total 50,984 357,268
Unrealized Loss    
Less than 12 months (42) (582)
Greater than 12 months (8) (749)
Total (50) (1,331)
U.S. treasury securities    
Fair Value    
Less than 12 months 13,819 60,869
Greater than 12 months 4,993 42,667
Total 18,812 103,536
Unrealized Loss    
Less than 12 months (16) (159)
Greater than 12 months (1) (239)
Total (17) (398)
U.S. government agency securities    
Fair Value    
Less than 12 months 8,197 145,594
Greater than 12 months 9,995 80,455
Total 18,192 226,049
Unrealized Loss    
Less than 12 months (7) (364)
Greater than 12 months (5) (460)
Total (12) (824)
Corporate debt securities    
Fair Value    
Less than 12 months 7,998 14,749
Greater than 12 months 5,982 12,934
Total 13,980 27,683
Unrealized Loss    
Less than 12 months (19) (59)
Greater than 12 months (2) (50)
Total $ (21) $ (109)
v3.25.0.1
Cash Equivalents and Marketable Securities - Amortized Cost and Fair Value Based on Contractual Maturities (Details) - Marketable Securities
$ in Thousands
Dec. 31, 2024
USD ($)
Amortized Cost  
Due within one year $ 396,130
Due after one year but within five years 52,636
Total 448,766
Fair Value  
Due within one year 396,898
Due after one year but within five years 52,852
Total $ 449,750
v3.25.0.1
Cash Equivalents and Marketable Securities - Narrative (Details) - USD ($)
$ in Millions
Dec. 31, 2024
Dec. 31, 2023
Debt Securities, Available-for-sale [Line Items]    
Accrued interest $ 3.3 $ 4.4
Debt Securities, Available-for-Sale, Accrued Interest, after Allowance for Credit Loss, Current, Statement of Financial Position [Extensible Enumeration] Prepaid expenses and other current assets Prepaid expenses and other current assets
Mutual funds    
Debt Securities, Available-for-sale [Line Items]    
Equity securities $ 0.0 $ 1.6
v3.25.0.1
Fair Value Measurements - Assets and Liabilities Measured on Recurring Basis (Details) - Fair Value, Recurring - USD ($)
$ in Thousands
Dec. 31, 2024
Dec. 31, 2023
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Total financial assets $ 957,405 $ 1,062,381
U.S. treasury securities    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Marketable securities: 216,368 264,495
U.S. government agency securities    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Marketable securities: 144,783 366,693
Corporate debt securities    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Marketable securities: 62,150 66,740
Certificates of deposit    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Marketable securities: 26,449  
Term bond mutual funds    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Marketable securities:   1,578
Money market funds    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Cash equivalents: 507,655 77,832
U.S. treasury securities    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Cash equivalents:   239,749
U.S. government agency securities    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Cash equivalents:   8,389
Corporate debt securities    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Cash equivalents:   36,905
Level 1    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Total financial assets 724,023 582,076
Level 1 | U.S. treasury securities    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Marketable securities: 216,368 264,495
Level 1 | U.S. government agency securities    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Marketable securities: 0 0
Level 1 | Corporate debt securities    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Marketable securities: 0 0
Level 1 | Certificates of deposit    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Marketable securities: 0  
Level 1 | Term bond mutual funds    
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 equivalents: 507,655 77,832
Level 1 | U.S. treasury securities    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Cash equivalents:   239,749
Level 1 | U.S. government agency securities    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Cash equivalents:   0
Level 1 | Corporate debt securities    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Cash equivalents:   0
Level 2    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Total financial assets 233,382 480,305
Level 2 | U.S. treasury securities    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Marketable securities: 0 0
Level 2 | U.S. government agency securities    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Marketable securities: 144,783 366,693
Level 2 | Corporate debt securities    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Marketable securities: 62,150 66,740
Level 2 | Certificates of deposit    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Marketable securities: 26,449  
Level 2 | Term bond mutual funds    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Marketable securities:   1,578
Level 2 | Money market funds    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Cash equivalents: $ 0 0
Level 2 | U.S. treasury securities    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Cash equivalents:   0
Level 2 | U.S. government agency securities    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Cash equivalents:   8,389
Level 2 | Corporate debt securities    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Cash equivalents:   $ 36,905
v3.25.0.1
Fair Value Measurements - Narrative (Details) - USD ($)
$ in Millions
Dec. 31, 2024
Dec. 31, 2023
Foreign Exchange Forward    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Derivative, notional amount $ 50.5 $ 55.8
v3.25.0.1
Balance Sheet Components - Property, Plant, and Equipment (Details) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2024
Dec. 31, 2023
Dec. 31, 2022
Property, Plant and Equipment [Line Items]      
Total property and equipment $ 78,975 $ 66,017  
Less: accumulated depreciation and amortization (53,082) (43,270)  
Property and equipment, net 25,893 22,747  
Capitalization of costs associated with internal-use software 6,843 8,029 $ 6,781
Amortization expense of capitalized internal-use software 5,631 5,106 3,193
Depreciation expense 5,623 6,735 $ 6,720
Computers      
Property, Plant and Equipment [Line Items]      
Total property and equipment 19,694 17,188  
Capitalized internal-use software      
Property, Plant and Equipment [Line Items]      
Total property and equipment 34,255 28,259  
Office equipment      
Property, Plant and Equipment [Line Items]      
Total property and equipment 6,700 4,357  
Furniture and fixtures      
Property, Plant and Equipment [Line Items]      
Total property and equipment 10,066 8,886  
Motor vehicles      
Property, Plant and Equipment [Line Items]      
Total property and equipment 400 808  
Leasehold improvements      
Property, Plant and Equipment [Line Items]      
Total property and equipment 7,847 5,768  
Construction in progress      
Property, Plant and Equipment [Line Items]      
Total property and equipment $ 13 $ 751  
v3.25.0.1
Balance Sheet Components - Narrative (Details) - USD ($)
$ in Millions
Dec. 31, 2024
Dec. 31, 2023
Organization, Consolidation and Presentation of Financial Statements [Abstract]    
Net carrying value of capitalized internal-use software $ 14.5 $ 14.1
Compensation liabilities, noncurrent $ 21.1 $ 22.7
v3.25.0.1
Balance Sheet Components - Accrued and Other Liabilities (Details) - USD ($)
$ in Thousands
Dec. 31, 2024
Dec. 31, 2023
Organization, Consolidation and Presentation of Financial Statements [Abstract]    
Accrued compensation $ 28,269 $ 20,976
Accrued reseller commissions 11,569 9,641
Accrued advertising and marketing expenses 4,414 2,095
Advanced payments from customers 4,487 4,265
Accrued taxes 14,747 10,964
Operating lease liabilities, current $ 8,073 $ 2,699
Operating Lease, Liability, Current, Statement of Financial Position [Extensible Enumeration] Total accrued liabilities Total accrued liabilities
Contributions withheld for employee stock purchase plan $ 1,127 $ 1,298
Unsettled share repurchases 1,840 0
Other accrued expenses 7,407 4,670
Total accrued liabilities $ 81,933 $ 56,608
v3.25.0.1
Business Combinations - Narrative (Details) - USD ($)
$ in Thousands
 1 Months Ended 12 Months Ended
Jun. 30, 2024
Dec. 31, 2024
Business Acquisition [Line Items]    
Stock options granted (in shares)   512,000
Stock options    
Business Acquisition [Line Items]    
Award vesting period   4 years
D42 Parent Inc (Device42)    
Business Acquisition [Line Items]    
Acquisition date cash consideration paid $ 238,100  
Payments to acquire businesses, gross 225,300  
Cash 11,432  
Issuance of common stock and options in connection with acquisition 8,900  
Option awards $ 3,900  
Stock options granted (in shares) 511,770  
Equity interest issued or issuable $ 5,700  
Share based compensation, value   $ 1,800
Acquisition related costs   $ 2,100
Goodwill, expected tax deductible amount $ 0  
D42 Parent Inc (Device42) | Stock options    
Business Acquisition [Line Items]    
Award vesting period   2 years
D42 Parent Inc (Device42) | Customer relationships    
Business Acquisition [Line Items]    
Finite-lived intangible asset, useful life 8 years  
D42 Parent Inc (Device42) | Developed technology    
Business Acquisition [Line Items]    
Finite-lived intangible asset, useful life 6 years  
D42 Parent Inc (Device42) | Trademarks    
Business Acquisition [Line Items]    
Finite-lived intangible asset, useful life 1 year  
v3.25.0.1
Business Combinations - Recognized Assets and Liabilities Acquired (Details) - USD ($)
$ in Thousands
Dec. 31, 2024
Jun. 30, 2024
Dec. 31, 2023
Assets acquired:      
Prepaid expenses and other current assets   $ 1,792  
Goodwill $ 147,014   $ 6,181
D42 Parent Inc (Device42)      
Assets acquired:      
Cash   11,432  
Trade accounts and other receivables   8,916  
Goodwill   140,833  
Total   261,973  
Liabilities assumed:      
Accounts payable and other current liabilities   3,510  
Deferred revenue   6,080  
Deferred tax liability   14,278  
Total   23,868  
Total purchase price consideration   238,105  
D42 Parent Inc (Device42) | Customer relationships      
Assets acquired:      
Finite-lived intangibles   67,600  
D42 Parent Inc (Device42) | Developed technology      
Assets acquired:      
Finite-lived intangibles   30,700  
D42 Parent Inc (Device42) | Trademarks      
Assets acquired:      
Finite-lived intangibles   $ 700  
v3.25.0.1
Business Combinations - Pro Forma (Details) - D42 Parent Inc (Device42) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2024
Dec. 31, 2023
Business Acquisition, Pro Forma Information, Nonrecurring Adjustment [Line Items]    
Revenue $ 735,591 $ 631,608
Net loss $ (99,999) $ (151,546)
v3.25.0.1
Goodwill and Intangible Assets, Net - Goodwill Rollforward (Details) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2024
Dec. 31, 2023
Goodwill [Roll Forward]    
Goodwill, beginning balance $ 6,181  
Goodwill acquired 140,833 $ 0
Goodwill, ending balance $ 147,014 $ 6,181
v3.25.0.1
Goodwill and Intangible Assets, Net - Summary of Acquired Intangible Assets (Details)
$ in Thousands
 12 Months Ended
Dec. 31, 2024
USD ($)
Finite-Lived Intangible Assets [Line Items]  
Gross Amount $ 111,096
Accumulated Amortization (20,256)
Total future amortization 90,840
Developed technology  
Finite-Lived Intangible Assets [Line Items]  
Gross Amount 41,196
Accumulated Amortization (13,423)
Total future amortization $ 27,773
Weighted Average Remaining Useful Life 5 years 4 months 24 days
Customer relationships  
Finite-Lived Intangible Assets [Line Items]  
Gross Amount $ 69,200
Accumulated Amortization (6,433)
Total future amortization $ 62,767
Weighted Average Remaining Useful Life 7 years 4 months 24 days
Trademarks  
Finite-Lived Intangible Assets [Line Items]  
Gross Amount $ 700
Accumulated Amortization (400)
Total future amortization $ 300
Weighted Average Remaining Useful Life 4 months 24 days
v3.25.0.1
Goodwill and Intangible Assets, Net - Summary of Acquired Intangible Assets Amortization Expense (Details) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2024
Dec. 31, 2023
Dec. 31, 2022
Finite-Lived Intangible Assets [Line Items]      
Total amortization expense $ 8,160 $ 303 $ 1,591
Cost of revenue      
Finite-Lived Intangible Assets [Line Items]      
Total amortization expense 2,927 158 1,191
Sales and marketing      
Finite-Lived Intangible Assets [Line Items]      
Total amortization expense $ 5,233 $ 145 $ 400
v3.25.0.1
Goodwill and Intangible Assets, Net - Summary of Estimated Future Amortization Expense (Details)
$ in Thousands
Dec. 31, 2024
USD ($)
Goodwill and Intangible Assets Disclosure [Abstract]  
2025 $ 13,854
2026 13,553
2027 13,553
2028 13,591
2029 13,553
Thereafter 22,736
Total future amortization $ 90,840
v3.25.0.1
Leases - Narrative (Details)
Dec. 31, 2024
USD ($)
Lessee, Lease, Description [Line Items]  
Operating lease, option to extend, term 6 years
Lease not yet commenced $ 0
Minimum  
Lessee, Lease, Description [Line Items]  
Operating lease, term 1 year
Maximum  
Lessee, Lease, Description [Line Items]  
Operating lease, term 8 years
v3.25.0.1
Leases - Schedule of Lease Cost (Details) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2024
Dec. 31, 2023
Leases [Abstract]    
Operating lease cost $ 12,093 $ 10,415
Short-term lease cost 489 415
Variable lease cost 3,842 3,190
Total lease cost $ 16,424 $ 14,020
v3.25.0.1
Leases - Summary of Lease Term and Discount Rate (Details)
Dec. 31, 2024
Dec. 31, 2023
Leases [Abstract]    
Weighted-average remaining lease term (in years) 4 years 4 months 2 days 5 years 2 months 15 days
Weighted average discount rate (as a percent) 9.00% 9.10%
v3.25.0.1
Leases - Summary of Supplemental Cash Flow Information (Details) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2024
Dec. 31, 2023
Dec. 31, 2022
Leases [Abstract]      
Cash payments included in the measurement of operating lease liabilities $ 6,808 $ 15,526  
Operating lease right-of-use assets obtained in exchange for operating lease obligations $ 13,275 $ 7,461 $ 14,903
v3.25.0.1
Leases - Schedule of Maturities of Operating Lease Liabilities (Details)
$ in Thousands
Dec. 31, 2024
USD ($)
Leases [Abstract]  
2025 $ 12,032
2026 11,278
2027 9,522
2028 8,628
2029 4,335
Thereafter 3,590
Total lease payments 49,385
Less: imputed interest (11,091)
Present value of operating lease liabilities $ 38,294
v3.25.0.1
Commitment and Contingencies (Details)
$ in Thousands
Dec. 31, 2024
USD ($)
Commitments and Contingencies Disclosure [Abstract]  
2025 $ 64,753
2026 72,045
2027 73,569
2028 68,319
2029 133
Total $ 278,819
v3.25.0.1
Revenue from Contracts with Customers - Disaggregation of Revenues (Details) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2024
Dec. 31, 2023
Dec. 31, 2022
Disaggregation of Revenue [Line Items]      
Revenue $ 720,420 $ 596,432 $ 497,999
Subscription services, software licenses and maintenance      
Disaggregation of Revenue [Line Items]      
Revenue 710,744 582,868 485,322
Professional services      
Disaggregation of Revenue [Line Items]      
Revenue $ 9,676 $ 13,564 $ 12,677
v3.25.0.1
Revenue from Contracts with Customers - Narrative (Details) - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2024
Dec. 31, 2023
Dec. 31, 2022
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]      
Contract with customer, asset, after allowance for credit loss, current $ 6.3 $ 0.2  
Remaining performance obligation 525.3    
Revenue recognized during the period 265.4 $ 204.8 $ 158.7
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2025-01-01      
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]      
Remaining performance obligation $ 380.8    
Remaining performance obligation, expected timing of satisfaction, period 12 months    
v3.25.0.1
Revenue from Contracts with Customers - Changes in the Balance of Deferred Revenue (Details) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2024
Dec. 31, 2023
Dec. 31, 2022
Changes in the Balance of Deferred Revenue [Roll Forward]      
Balance at beginning of the year (2) $ 266,399 $ 205,626 $ 160,173
Add: Billings during the year (1) 781,309 657,205 543,452
Less: Revenue recognized during the year (720,420) (596,432) (497,999)
Balance at end of the year (2) 327,288 266,399 $ 205,626
Contract with customer, liability, noncurrent $ 3,900 $ 0  
v3.25.0.1
Revenue from Contracts with Customers - Deferred Contract Acquisition Costs (Details) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2024
Dec. 31, 2023
Dec. 31, 2022
Change in Deferred Contract Acquisition Costs [Roll Forward]      
Balance at beginning of the year $ 42,672 $ 39,675 $ 29,647
Add: Contract costs capitalized during the year 34,524 26,962 28,560
Less: Amortization of contract costs during the year (28,556) (23,965) (18,532)
Balance at end of the year $ 48,640 $ 42,672 $ 39,675
v3.25.0.1
Segment and Geographic Information - Revenue by Geographic Region (Details) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2024
Dec. 31, 2023
Dec. 31, 2022
Revenues from External Customers and Long-Lived Assets [Line Items]      
Revenue $ 720,420 $ 596,432 $ 497,999
North America      
Revenues from External Customers and Long-Lived Assets [Line Items]      
Revenue 329,934 266,331 216,112
Europe, Middle East and Africa      
Revenues from External Customers and Long-Lived Assets [Line Items]      
Revenue 277,851 229,983 193,899
Asia Pacific      
Revenues from External Customers and Long-Lived Assets [Line Items]      
Revenue 91,442 83,109 74,948
Other      
Revenues from External Customers and Long-Lived Assets [Line Items]      
Revenue $ 21,193 $ 17,009 $ 13,040
v3.25.0.1
Segment and Geographic Information - Narrative (Details)
$ in Thousands
 12 Months Ended
Dec. 31, 2024
USD ($)
segment
Dec. 31, 2023
USD ($)
Dec. 31, 2022
USD ($)
Revenues from External Customers and Long-Lived Assets [Line Items]      
Number of operating segments | segment 1    
Revenue $ 720,420 $ 596,432 $ 497,999
United States      
Revenues from External Customers and Long-Lived Assets [Line Items]      
Revenue $ 294,500 $ 235,300 $ 192,200
United States | Revenue from Contract with Customer Benchmark | Geographic Concentration Risk      
Revenues from External Customers and Long-Lived Assets [Line Items]      
Concentration risk, percentage 41.00% 39.00% 39.00%
United Kingdom      
Revenues from External Customers and Long-Lived Assets [Line Items]      
Revenue $ 94,100 $ 75,100 $ 63,800
United Kingdom | Revenue from Contract with Customer Benchmark | Geographic Concentration Risk      
Revenues from External Customers and Long-Lived Assets [Line Items]      
Concentration risk, percentage 13.00% 13.00% 13.00%
v3.25.0.1
Segment and Geographic Information - Long Lived Assets by Geographic Region (Details) - USD ($)
$ in Thousands
Dec. 31, 2024
Dec. 31, 2023
Revenues from External Customers and Long-Lived Assets [Line Items]    
Total long-lived assets $ 62,784 $ 55,496
North America    
Revenues from External Customers and Long-Lived Assets [Line Items]    
Total long-lived assets 20,052 22,635
Europe, Middle East and Africa    
Revenues from External Customers and Long-Lived Assets [Line Items]    
Total long-lived assets 8,391 2,244
Asia Pacific    
Revenues from External Customers and Long-Lived Assets [Line Items]    
Total long-lived assets $ 34,341 $ 30,617
v3.25.0.1
Stockholders' Equity and Stock Based Compensation - Narrative (Details)
$ / shares in Units, $ in Thousands
 1 Months Ended 12 Months Ended
Mar. 01, 2024
USD ($)
Jun. 30, 2024
shares
Feb. 29, 2024
Sep. 30, 2022
shares
Sep. 30, 2021
USD ($)
target
tranche
$ / shares
shares
May 31, 2019
shares
Dec. 31, 2024
USD ($)
vote
stockClass
purchasePeriod
$ / shares
shares
Dec. 31, 2023
USD ($)
$ / shares
Dec. 31, 2022
USD ($)
$ / shares
Nov. 30, 2024
USD ($)
Aug. 31, 2022
shares
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]                      
Number of type of class stocks | stockClass             2        
Share repurchase program, remaining authorized, amount             $ 384,500     $ 400,000  
Treasury stock, acquired (in shares) | shares             985,234        
Treasury stock, value, acquired, cost method             $ 15,500        
Shares acquired, average cost per share (in dollars per share) | $ / shares             $ 15.77        
Total shares of common stock reserved for issuance (in shares) | shares             125,103,000        
Stock options granted (in shares) | shares             512,000        
Contributions withheld for employee stock purchase plan             $ 1,127 $ 1,298      
Share-based payment arrangement, expensed and capitalized, amount             218,064 212,465 $ 209,361    
Intrinsic value of option exercised             $ 5,400 $ 6,800 $ 5,900    
Weighted average grant date fair value (in USD per share) | $ / shares             $ 0 $ 0 $ 8.26    
Stock-based compensation expense             $ 216,706 $ 210,707 $ 207,696    
D42 Parent Inc (Device42)                      
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]                      
Stock options granted (in shares) | shares   511,770                  
Share based compensation, value             $ 1,800        
2022 Inducement Plan:                      
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]                      
Total shares of common stock reserved for issuance (in shares) | shares             6,664,000       10,000,000
President                      
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]                      
Stock-based compensation expense             $ 6,500 9,600 3,200    
President | Share-Based Payment Arrangement, Tranche One                      
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]                      
Vesting percentage       25.00%              
President | Share-Based Payment Arrangement, Tranche Two                      
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]                      
Vesting percentage       75.00%              
Executive Chairman                      
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]                      
Annual grant, fair value $ 19,000                    
Incremental cost             $ 0        
Unrecognized Stock-Based Compensation $ 61,900                    
ESPP                      
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]                      
Total shares of common stock reserved for issuance (in shares) | shares             12,972,000        
Offering period             24 months        
Number of purchase periods | purchasePeriod             4        
Purchase period             6 months        
ESPP offering period             24 months        
Share-based payment arrangement, expensed and capitalized, amount             $ 5,300 7,600 12,200    
Unrecognized Stock-Based Compensation             $ 5,392        
Stock options                      
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]                      
Award vesting period             4 years        
Contractual term             10 years        
Stock options | D42 Parent Inc (Device42)                      
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]                      
Award vesting period             2 years        
Weighted average grant date fair value (in USD per share) | $ / shares             $ 11.09        
Stock options | President                      
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]                      
Award vesting period       4 years              
Stock options | President | Inducement Plan And 2021 Plan                      
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]                      
Stock options granted (in shares) | shares       1,815,980              
Stock options | President | 2022 Inducement Plan:                      
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]                      
Stock options granted (in shares) | shares       1,776,780              
Restricted Stock Units                      
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]                      
Number of shares approved for grant (in shares) | shares             17,482,000        
Award vesting period             4 years        
Total grant date fair value             $ 180,000 175,300 235,000    
Restricted Stock Units | President                      
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]                      
Award vesting period       4 years              
Restricted Stock Units | President | 2022 Inducement Plan:                      
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]                      
Number of shares approved for grant (in shares) | shares       1,732,501              
Restricted Stock Units | Executive Chairman                      
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]                      
Number of shares approved for grant (in shares) | shares             900,000        
Annual grant, percentage of awards 0.70                    
Annual grant, vesting period 4 years                    
Restricted Stock Units | Executive Officer | Maximum                      
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]                      
Percentage of target     177.50%                
Performance Shares                      
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]                      
Stock-based compensation expense             $ 4,600 $ 28,100 $ 27,600    
Performance Shares | Executive Chairman                      
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]                      
Number of shares approved for grant (in shares) | shares         6,000,000 166,390          
Total grant date fair value         $ 131,000            
Annual grant, percentage of awards 30                    
Stock-based compensation expense             19,400        
Number of threshold stock price targets | target         5            
Number of threshold vesting tranches | tranche         5            
Performance Shares | Executive Chairman | Minimum                      
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]                      
Threshold stock price target (in USD per share) | $ / shares         $ 70.00            
Performance Shares | Executive Chairman | Maximum                      
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]                      
Threshold stock price target (in USD per share) | $ / shares         $ 200.00            
Performance Shares | Executive Officer                      
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]                      
Award vesting period     3 years                
Stock-based compensation expense             $ 5,000        
Revenue target, percentage of awards     0.70                
Free cash flow target, percentage of awards     30.00%                
Class A Common Stock                      
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]                      
Common stock, number of votes per share | vote             1        
Class A Common Stock | ESPP                      
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]                      
Purchase price of common stock in percent             85.00%        
Class B Common Stock                      
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]                      
Common stock, number of votes per share | vote             10        
v3.25.0.1
Stockholders' Equity and Stock Based Compensation - Accumulated Other Comprehensive Income (Loss) (Details) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2024
Dec. 31, 2023
Dec. 31, 2022
Change in Unrealized Gains or Losses Within Accumulated Other Comprehensive Income [Roll Forward]      
Beginning balance $ 1,072,262 $ 1,051,818 $ 1,238,039
Net change on cash flow hedging 894 428 0
Total other comprehensive income (loss), net of taxes: 416 6,677 (6,684)
Ending balance 1,137,921 1,072,262 1,051,818
Accumulated Other Comprehensive Income      
Change in Unrealized Gains or Losses Within Accumulated Other Comprehensive Income [Roll Forward]      
Beginning balance (754) (7,431) (747)
Total other comprehensive income (loss), net of taxes: 416 6,677 (6,684)
Ending balance (338) (754) (7,431)
AOCI, Accumulated Gain (Loss), Debt Securities, Available-for-Sale, Parent      
Change in Unrealized Gains or Losses Within Accumulated Other Comprehensive Income [Roll Forward]      
Unrealized gains (losses) on available-for-sale debt securities 1,310 7,105 (6,684)
Net change on cash flow hedging $ (894) $ (428) $ 0
v3.25.0.1
Stockholders' Equity and Stock Based Compensation - Shares of Common Stock Reserved for Future Issuance (Details) - shares
shares in Thousands
Dec. 31, 2024
Aug. 31, 2022
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]    
Total shares of common stock reserved for issuance (in shares) 125,103  
2021 Equity Incentive Plan:    
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]    
Total shares of common stock reserved for issuance (in shares) 81,101  
2022 Inducement Plan:    
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]    
Total shares of common stock reserved for issuance (in shares) 6,664 10,000
Stock Options, Restricted Stock Units And Performance Restricted Stock Units | 2011 Stock Plan:    
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]    
Total shares of common stock reserved for issuance (in shares) 1,867  
Stock Options And Restricted Stock Units | 2021 Equity Incentive Plan:    
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]    
Total shares of common stock reserved for issuance (in shares) 19,776  
Stock Options And Restricted Stock Units | 2022 Inducement Plan:    
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]    
Total shares of common stock reserved for issuance (in shares) 2,723  
ESPP    
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]    
Total shares of common stock reserved for issuance (in shares) 12,972  
v3.25.0.1
Stockholders' Equity and Stock Based Compensation - Summary of Employee Stock Purchase Plan (Details) - USD ($)
$ / shares in Units, $ in Thousands
 12 Months Ended
Dec. 31, 2024
Dec. 31, 2023
Dec. 31, 2022
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]      
Net shares issued under ESPP (in shares) 569,003 627,371 822,423
ESPP      
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]      
Weighted average purchase price (in USD per share) $ 11.81 $ 11.88 $ 13.33
Aggregate net proceeds (in thousands) $ 6,643 $ 7,271 $ 10,870
v3.25.0.1
Stockholders' Equity and Stock Based Compensation - Fair Value Assumptions (Details)
 12 Months Ended
Dec. 31, 2024
Dec. 31, 2023
Dec. 31, 2022
Dec. 31, 2021
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]        
Dividend yield 0.00%      
ESPP        
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]        
Dividend yield 0.00% 0.00% 0.00%  
ESPP | Minimum        
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]        
Expected term (in years) 6 months 6 months 6 months  
Stock price volatility 48.30% 47.40% 55.80%  
Risk-free interest rate 4.29% 4.47% 1.54%  
ESPP | Maximum        
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]        
Expected term (in years) 2 years 1 year 6 months 2 years  
Stock price volatility 57.20% 77.30% 84.50%  
Risk-free interest rate 5.41% 5.38% 4.62%  
Stock options        
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]        
Expected term (in years) 6 years   6 years 1 month 6 days  
Stock price volatility 65.00%   65.00%  
Risk-free interest rate 4.29%   3.37%  
Dividend yield 0.00%   0.00%  
Performance Shares | Chief Executive Officer        
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]        
Expected term (in years)       7 years
Stock price volatility       60.00%
Risk-free interest rate       1.12%
Dividend yield       0.00%
v3.25.0.1
Stockholders' Equity and Stock Based Compensation - Summary of Stock Options (Details) - USD ($)
$ / shares in Units, shares in Thousands, $ in Thousands
 12 Months Ended
Dec. 31, 2024
Dec. 31, 2023
Number of Shares    
Beginning balance (in shares) 2,395  
Stock options granted (in shares) 512  
Stock options exercised (in shares) (338)  
Ending balance (in shares) 2,569 2,395
Options vested or expected to vest (in shares) 2,569  
Options exercisable (in shares) 1,262  
Weighted-Average Exercise Price    
Beginning balance (in USD per share) $ 10.39  
Stock options granted (in USD per share) 3.26  
Stock options exercised (in USD per share) 0.26  
Ending balance (in USD per share) 10.3 $ 10.39
Options vested or expected to vest (in USD per share) 10.3  
Options exercisable (in USD per share) $ 11.08  
Weighted-Average Remaining Contractual Term (in years)    
Weighted-Average Remaining Contractual Term (in years) 7 years 4 months 24 days 7 years
Options vested and expected to vest as of the end of the period 7 years 4 months 24 days  
Options exercisable as of the end of the period 6 years 3 months 18 days  
Aggregate Intrinsic Value    
Aggregate intrinsic value $ 15,066 $ 31,368
Options vested or expected to vest as of the end of the period 15,066  
Options exercisable as of the end of the period $ 6,425  
v3.25.0.1
Stockholders' Equity and Stock Based Compensation - Restricted Stock Units (Details) - $ / shares
 1 Months Ended 12 Months Ended
Mar. 01, 2024
Sep. 30, 2021
May 31, 2019
Dec. 31, 2024
Weighted-Average Grant Date Fair Value        
Stock withheld for tax withholding requirements (in shares)       3,700,000
Restricted Stock Units        
Number of Shares        
Unvested, beginning balance (in shares)       26,755,000
Granted (in shares)       17,482,000
Vested (in shares)       (9,747,000)
Forfeited (in shares)       (12,693,000)
Unvested, ending balance (in shares)       21,797,000
Weighted-Average Grant Date Fair Value        
Unvested, beginning balance (in USD per share)       $ 18.44
Granted (in USD per share)       19.01
Vested (in USD per share)       18.47
Forfeited (in USD per share)       19.02
Unvested, ending balance (in USD per share)       $ 18.54
Restricted Stock Units | Executive Chairman        
Number of Shares        
Granted (in shares)       900,000
Weighted-Average Grant Date Fair Value        
Granted (in USD per share)       $ 69.78
Performance Shares | Executive Chairman        
Number of Shares        
Granted (in shares)   6,000,000 166,390  
Forfeited (in shares) (6,000,000)      
v3.25.0.1
Stockholders' Equity and Stock Based Compensation - Stock-based Compensation Expense (Details) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2024
Dec. 31, 2023
Dec. 31, 2022
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]      
Total employee awards $ 216,706 $ 210,707 $ 207,696
Stock-based compensation capitalized as internal-use software 1,358 1,758 1,665
Total stock-based compensation expense 218,064 212,465 209,361
President      
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]      
Total employee awards 6,500 9,600 3,200
RSUs and PSUs | Chief Executive Officer      
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]      
Total employee awards 50,400 55,900 55,900
Cost of revenue | Equity awards:      
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]      
Total employee awards 6,565 6,774 7,039
Research and development | Equity awards:      
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]      
Total employee awards 41,512 37,524 36,413
Sales and marketing | Equity awards:      
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]      
Total employee awards 63,219 66,755 64,328
General and administrative | Equity awards:      
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]      
Total employee awards $ 105,410 $ 99,654 $ 99,916
v3.25.0.1
Stockholders' Equity and Stock Based Compensation - Unrecognized Stock Based Compensation Expense (Details)
$ in Thousands
 12 Months Ended
Dec. 31, 2024
USD ($)
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]  
Total unrecognized stock-based compensation expense $ 362,570
RSUs and PSUs  
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]  
Unrecognized Stock-Based Compensation $ 349,675
Weighted-Average Period to Recognize Expense (in years) 2 years 7 months 6 days
Stock options  
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]  
Unrecognized Stock-Based Compensation $ 7,503
Weighted-Average Period to Recognize Expense (in years) 1 year 7 months 6 days
ESPP  
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]  
Unrecognized Stock-Based Compensation $ 5,392
Weighted-Average Period to Recognize Expense (in years) 1 year 1 month 6 days
v3.25.0.1
Restructuring Charges - Narrative (Details) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2024
Dec. 31, 2023
Dec. 31, 2022
Restructuring and Related Activities [Abstract]      
Restructuring charges $ 9,664 $ 0 $ 0
Severance costs 8,100    
Other restructuring costs 1,600    
Restructuring reserve $ 2,400    
v3.25.0.1
Restructuring Charges - Restructuring Cost Roll Forward (Details) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2024
Dec. 31, 2023
Dec. 31, 2022
Restructuring Reserve [Roll Forward]      
Accrued restructuring costs as of December 31, 2023 $ 0    
Restructuring charges incurred during the period 9,664 $ 0 $ 0
Amounts paid during the period 7,314    
Accrued restructuring costs as of December 31, 2024 $ 2,350 $ 0  
v3.25.0.1
Income Taxes - Net Loss Before Provision for Income Taxes (Details) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2024
Dec. 31, 2023
Dec. 31, 2022
Income Tax Disclosure [Abstract]      
Domestic $ (130,763) $ (165,144) $ (252,261)
Foreign 39,926 41,375 31,471
Loss before income taxes $ (90,837) $ (123,769) $ (220,790)
v3.25.0.1
Income Taxes - Components of Provision for Income Tax (Details) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2024
Dec. 31, 2023
Dec. 31, 2022
Current:      
Domestic $ 3,381 $ 2,810 $ 2,137
Foreign 13,792 12,179 11,610
Deferred:      
Domestic (14,165) 0 0
Foreign 1,523 (1,322) (2,405)
Provision for income taxes $ 4,531 $ 13,667 $ 11,342
v3.25.0.1
Income Taxes - Reconciliation of the federal statutory income tax rate to the Company’s effective tax rate (Details)
 12 Months Ended
Dec. 31, 2024
Dec. 31, 2023
Dec. 31, 2022
Income Tax Disclosure [Abstract]      
Federal income tax 21.00% 21.00% 21.00%
Stock-based compensation (23.90%) (16.90%) (1.60%)
Change in valuation allowance 4.30% (6.40%) (22.40%)
Earnings from foreign subsidiaries (4.90%) 0.00% 0.00%
Earnings from foreign subsidiaries (2.10%) (1.80%) (1.20%)
Uncertain tax positions (3.20%) (2.10%) 0.00%
U.S. taxes on foreign operations 3.50% (4.80%) 0.00%
Other items 0.30% 0.00% (0.90%)
Total provision for income taxes (5.00%) (11.00%) (5.10%)
v3.25.0.1
Income Taxes - Deferred Tax Assets and Liabilities (Details) - USD ($)
$ in Thousands
Dec. 31, 2024
Dec. 31, 2023
Deferred tax assets:    
Net operating loss carryforwards $ 58,907 $ 81,373
Foreign tax credit carryforwards 8,489 5,999
Capitalized R&E under IRC 174 98,274 65,478
Stock-based compensation 6,705 3,672
Accruals and reserves 9,965 8,948
Depreciation and amortization 0 3,328
Allowance for uncollectible accounts 412 1,003
Operating lease liability 9,518 6,877
Total deferred tax assets 192,270 176,678
Less: valuation allowance (151,738) (154,788)
Deferred tax assets, net of valuation allowance 40,532 21,890
Deferred tax liabilities:    
Commissions (6,102) (5,926)
Depreciation and amortization (17,159) 0
Operating lease right-of-use assets (8,772) (5,951)
Net deferred tax assets $ 8,499 $ 10,013
v3.25.0.1
Income Taxes - Narrative (Details) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2024
Dec. 31, 2023
Dec. 31, 2022
Income Tax Examination [Line Items]      
Increase in valuation allowance $ (3,100) $ 8,700  
Gross unrecognized tax benefits 8,144 5,634 $ 3,647
Accrued interest 2,200 $ 1,400  
Domestic Tax Jurisdiction      
Income Tax Examination [Line Items]      
Net operating loss carryforwards 237,900    
State and Local Jurisdiction      
Income Tax Examination [Line Items]      
Net operating loss carryforwards 146,800    
Foreign Tax Jurisdiction      
Income Tax Examination [Line Items]      
Tax credit carryforward, amount $ 8,100    
v3.25.0.1
Income Taxes - Schedule of Unrecognized Tax Benefits (Details) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2024
Dec. 31, 2023
Unrecognized Tax Benefits [Roll Forward]    
Unrecognized gross tax benefits at the beginning of the period $ 5,634 $ 3,647
Increases related to prior year tax positions 449 0
Decreases related to prior year tax positions 0 (22)
Increases in current year unrecognized benefits 2,061 2,009
Unrecognized gross tax benefits at the end of the period $ 8,144 $ 5,634
v3.25.0.1
Net Loss Per Share - Computation of Basic and Diluted Net Loss Per Share (Details) - USD ($)
$ / shares in Units, shares in Thousands, $ in Thousands
 12 Months Ended
Dec. 31, 2024
Dec. 31, 2023
Dec. 31, 2022
Numerator:      
Net loss $ (95,368) $ (137,436) $ (232,132)
Net loss attributable to Class A and Class B common stockholders - basic (95,368) (137,436) (232,132)
Net loss attributable to Class A and Class B common stockholders - diluted $ (95,368) $ (137,436) $ (232,132)
Denominator:      
Weighted-average shares used in computing net loss per share attributable to Class A and Class B common stockholders - basic (in shares) 300,843 293,087 284,587
Weighted-average shares used in computing net loss per share attributable to Class A and Class B common stockholders - diluted (in shares) 300,843 293,087 284,587
Net loss per share to attributable common stockholders - basic (in dollars per share) $ (0.32) $ (0.47) $ (0.82)
Net loss per share attributable to common stockholders - diluted (in dollars per share) $ (0.32) $ (0.47) $ (0.82)
v3.25.0.1
Net Loss Per Share - Potential Common Equivalents Excluded from Computation of Diluted Net Loss per Share (Details) - shares
shares in Thousands
 12 Months Ended
Dec. 31, 2024
Dec. 31, 2023
Dec. 31, 2022
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]      
Antidilutive securities excluded from computation of earnings per share (in shares) 24,462 29,259 35,135
RSUs and PSUs      
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]      
Antidilutive securities excluded from computation of earnings per share (in shares) 21,797 26,755 32,253
Stock options      
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]      
Antidilutive securities excluded from computation of earnings per share (in shares) 2,569 2,395 2,758
ESPP      
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]      
Antidilutive securities excluded from computation of earnings per share (in shares) 96 109 124