AIRBNB, INC., 10-K filed on 2/17/2023
Annual Report
v3.22.4
Cover - USD ($)
$ in Billions
12 Months Ended
Dec. 31, 2022
Feb. 03, 2023
Jun. 30, 2022
Document Information [Line Items]      
Document Type 10-K    
Document Annual Report true    
Current Fiscal Year End Date --12-31    
Document Period End Date Dec. 31, 2022    
Document Transition Report false    
Entity File Number 001-39778    
Entity Registrant Name Airbnb, Inc.    
Entity Incorporation, State or Country Code DE    
Entity Tax Identification Number 26-3051428    
Entity Address, Address Line One 888 Brannan Street    
Entity Address, City or Town San Francisco    
Entity Address, State or Province CA    
Entity Address, Postal Zip Code 94103    
City Area Code 415    
Local Phone Number 510-4027    
Title of 12(b) Security Class A common stock, par value $0.0001 per share    
Trading Symbol ABNB    
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    
Entity Shell Company false    
Entity Public Float     $ 35.1
Documents Incorporated by Reference The information required by Part III of this Report, to the extent not set forth herein, is incorporated herein by reference from the registrant’s definitive proxy statement relating to the Annual Meeting of Shareholders to be held in 2023, which definitive proxy statement shall be filed with the Securities and Exchange Commission within 120 days after the end of the fiscal year to which this Report relates.    
Document Fiscal Year Focus 2022    
Document Fiscal Period Focus FY    
Entity Central Index Key 0001559720    
Amendment Flag false    
Common Class A      
Document Information [Line Items]      
Entity Common Stock, Shares Outstanding   408,928,427  
Common Class B      
Document Information [Line Items]      
Entity Common Stock, Shares Outstanding   222,400,067  
Common Class C      
Document Information [Line Items]      
Entity Common Stock, Shares Outstanding   0  
Common Class H      
Document Information [Line Items]      
Entity Common Stock, Shares Outstanding   9,200,000  
v3.22.4
Audit Information
12 Months Ended
Dec. 31, 2022
Audit Information [Abstract]  
Auditor Firm ID 238
Auditor Name PricewaterhouseCoopers LLP
Auditor Location San Francisco, California
v3.22.4
Consolidated Balance Sheets - USD ($)
$ in Millions
Dec. 31, 2022
Dec. 31, 2021
Current assets:    
Cash and cash equivalents $ 7,378 $ 6,067
Marketable securities 2,244 2,255
Funds receivable and amounts held on behalf of customers 4,783 3,715
Prepaids and other current assets (including customer receivables of $143 and $200 and allowances of $31 and $39, respectively) 456 349
Total current assets 14,861 12,386
Property and equipment, net 121 157
Operating lease right-of-use assets 138 272
Intangible assets, net 34 52
Goodwill 650 653
Other assets, noncurrent 234 188
Total assets 16,038 13,708
Current liabilities:    
Accounts payable 137 118
Operating lease liabilities, current 59 63
Accrued expenses and other current liabilities 1,817 1,559
Funds payable and amounts payable to customers 4,783 3,715
Unearned fees 1,182 904
Total current liabilities 7,978 6,359
Long-term debt 1,987 1,983
Operating lease liabilities, noncurrent 295 372
Other liabilities, noncurrent 218 219
Total liabilities 10,478 8,933
Commitments and contingencies (Note 12)
Stockholders’ equity:    
Common stock 0 0
Additional paid-in capital 11,557 11,140
Accumulated other comprehensive loss (32) (7)
Accumulated deficit (5,965) (6,358)
Total stockholders’ equity 5,560 4,775
Total liabilities and stockholders’ equity $ 16,038 $ 13,708
v3.22.4
Consolidated Balance Sheets (Parenthetical) - USD ($)
$ in Millions
Dec. 31, 2022
Dec. 31, 2021
Customer receivables $ 200 $ 143
Customer receivables, allowance $ 39 $ 31
Common stock, par value (in USD per share) $ 0.0001  
Common Class A    
Common stock, par value (in USD per share) $ 0.0001  
Common stock authorized (in shares) 2,000,000,000  
Common stock issued (in shares) 408,000,000  
Common stock outstanding (in shares) 408,000,000  
Common Class B    
Common stock, par value (in USD per share) $ 0.0001  
Common stock authorized (in shares) 710,000,000  
Common stock issued (in shares) 223,000,000  
Common stock outstanding (in shares) 223,000,000  
Common Class C    
Common stock authorized (in shares) 2,000,000,000  
Common stock issued (in shares) 0  
Common stock outstanding (in shares) 0  
Common Class H    
Common stock authorized (in shares) 26,000,000  
Common stock issued (in shares) 9,000,000  
Common stock outstanding (in shares) 0  
v3.22.4
Consolidated Statements of Operations - USD ($)
shares in Millions, $ in Millions
12 Months Ended
Dec. 31, 2022
Dec. 31, 2021
Dec. 31, 2020
Revenues [Abstract]      
Revenue $ 8,399.0 $ 5,992.0 $ 3,378.0
Costs and expenses:      
Cost of revenue 1,499.0 1,156.0 876.0
Operations and support 1,041.0 847.0 878.0
Product development 1,502.0 1,425.0 2,753.0
Sales and marketing 1,516.0 1,186.0 1,175.0
General and administrative 950.0 836.0 1,135.0
Restructuring charges 89.1 112.8 151.4
Total costs and expenses 6,597.0 5,563.0 6,968.0
Income (loss) from operations 1,802.0 429.0 (3,590.0)
Interest income 186.0 13.0 27.0
Interest expense (24.0) (438.0) (172.0)
Other income (expense), net 25.0 (304.0) (947.0)
Income (loss) before income taxes 1,989.0 (300.0) (4,682.0)
Provision for (benefit from) income taxes 96.0 52.0 (97.0)
Net income (loss) $ 1,893.0 $ (352.0) $ (4,585.0)
Net income (loss) per share attributable to Class A and Class B common stockholders, basic (in USD per share) $ 2.97 $ (0.57) $ (16.12)
Net income (loss) per share attributable to Class A and Class B common stockholders, diluted (in USD per share) $ 2.79 $ (0.57) $ (16.12)
Weighted-average shares used in computing net income (loss) per share attributable to Class A and Class B common stockholders, basic (in shares) 637 616 284
Weighted-average shares used in computing net income (loss) per share attributable to Class A and Class B common stockholders, diluted (in Shares) 680 616 284
v3.22.4
Consolidated Statements of Comprehensive Income (Loss) - USD ($)
$ in Millions
12 Months Ended
Dec. 31, 2022
Dec. 31, 2021
Dec. 31, 2020
Statement of Comprehensive Income [Abstract]      
Net income (loss) $ 1,893 $ (352) $ (4,585)
Other comprehensive income (loss):      
Net unrealized loss on available-for-sale marketable securities, net of tax (15) (4) 0
Foreign currency translation adjustments (10) (6) 7
Other comprehensive income (loss) (25) (10) 7
Comprehensive income (loss) $ 1,868 $ (362) $ (4,578)
v3.22.4
Consolidated Statements of Redeemable Convertible Preferred Stock and Stockholders’ Equity (Deficit) - USD ($)
shares in Millions, $ in Millions
Total
Common Stock
Additional Paid-In Capital
Accumulated Other Comprehensive Income (Loss)
Accumulated Deficit
Beginning balance (in shares) at Dec. 31, 2019 240.0        
Beginning balance at Dec. 31, 2019 $ 3,232        
Redeemable Convertible Preferred Stock          
Conversion of redeemable convertible preferred stock to common stock in connection with initial public offering (in shares) (240.0)        
Conversion of redeemable convertible preferred stock to common stock in connection with initial public offering $ (3,232)        
Ending balance (in shares) at Dec. 31, 2020 0.0        
Ending balance at Dec. 31, 2020 $ 0        
Beginning Balance (in shares) at Dec. 31, 2019   264.0      
Beginning balance at Dec. 31, 2019 (808) $ 0 $ 617 $ (4) $ (1,421)
Increase (Decrease) in Stockholders' Equity [Roll Forward]          
Net income (loss) (4,585)       (4,585)
Other comprehensive income (loss) 7     7  
Capital contribution from founders 15   15    
Exercise of common stock options (in shares)   7.0      
Exercise of common stock options 15   15    
Issuance of common stock in connection with initial public offering, net of underwriting discounts and issuance costs (in shares)   55.0      
Issuance of common stock in connection with initial public offering, net of underwriting discounts and issuance costs 3,651   3,651    
Issuance of common stock upon settlement of RSUs, net of shares withheld for taxes (in shares)   32.0      
Issuance of common stock upon settlement of RSUs, net of shares withheld for taxes (1,650)   (1,650)    
Conversion of redeemable convertible preferred stock to common stock in connection with initial public offering (in shares)   241.0      
Conversion of redeemable convertible preferred stock to common stock in connection with initial public offering 3,231   3,231    
Settlement of contingent consideration liability settled in shares 22   22    
Stock-based compensation 3,003   3,003    
Ending balance (in shares) at Dec. 31, 2020   599.0      
Ending balance at Dec. 31, 2020 $ 2,901 $ 0 8,904 3 (6,006)
Ending balance (in shares) at Dec. 31, 2021 0.0        
Ending balance at Dec. 31, 2021 $ 0        
Increase (Decrease) in Stockholders' Equity [Roll Forward]          
Net income (loss) (352)       (352)
Other comprehensive income (loss) $ (10)     (10)  
Exercise of common stock options (in shares) 18.0 18.0      
Exercise of common stock options $ 138   138    
Issuance of common stock upon settlement of RSUs, net of shares withheld for taxes (in shares)   16.0      
Issuance of common stock upon settlement of RSUs, net of shares withheld for taxes (44)   (44)    
Reclassification of derivative warrant liability to equity 1,277   1,277    
Purchase of capped calls (100)   (100)    
Issuance of common stock under employee stock purchase plan, net of shares withheld (in shares)   1.0      
Issuance of common stock under employee stock purchase plan, net of shares withheld 51   51    
Stock-based compensation 914   914    
Ending balance (in shares) at Dec. 31, 2021   634.0      
Ending balance at Dec. 31, 2021 $ 4,775 $ 0 11,140 (7) (6,358)
Ending balance (in shares) at Dec. 31, 2022 0.0        
Ending balance at Dec. 31, 2022 $ 0        
Increase (Decrease) in Stockholders' Equity [Roll Forward]          
Net income (loss) 1,893       1,893
Other comprehensive income (loss) $ (25)     (25)  
Exercise of common stock options (in shares) 3.0 3.0      
Exercise of common stock options $ 40 $ 0 40    
Issuance of common stock upon settlement of RSUs, net of shares withheld for taxes (in shares)   8.0      
Issuance of common stock upon settlement of RSUs, net of shares withheld for taxes (612)   (612)    
Issuance of common stock under employee stock purchase plan, net of shares withheld 48   48    
Stock-based compensation $ 941   941    
Repurchases of common stock (in shares) (13.8) (14.0)      
Repurchases of common stock $ (1,500)       (1,500)
Ending balance (in shares) at Dec. 31, 2022   631.0      
Ending balance at Dec. 31, 2022 $ 5,560 $ 0 $ 11,557 $ (32) $ (5,965)
v3.22.4
Consolidated Statements of Cash Flows - USD ($)
$ in Millions
12 Months Ended
Dec. 31, 2022
Dec. 31, 2021
Dec. 31, 2020
Cash flows from operating activities:      
Net income (loss) $ 1,893.0 $ (352.0) $ (4,585.0)
Adjustments to reconcile net income (loss) to cash provided by (used in) operating activities:      
Depreciation and amortization 81.0 138.0 126.0
Bad debt expense 49.0 27.3 107.7
Stock-based compensation expense 930.0 899.0 3,003.0
Deferred income taxes (1.0) 11.0 (20.0)
Impairment of investments 0.0 3.0 82.0
(Gain) loss on investments, net (2.0) (8.0) 31.0
Change in fair value of warrant liability 0.0 292.0 869.0
Foreign exchange (gain) loss 62.0 24.0 (53.0)
Impairment of long-lived assets 91.0 113.0 36.0
Loss from extinguishment of debt 0.0 377.0 0.0
Other, net 8.0 28.0 58.0
Changes in operating assets and liabilities:      
Prepaids and other assets (226.0) (54.0) (4.0)
Operating lease right-of-use assets 41.0 25.0 (33.0)
Accounts payable 20.0 40.0 (73.0)
Accrued expenses and other liabilities 273.0 288.0 (79.0)
Operating lease liabilities (69.0) (34.0) 61.0
Unearned fees 280.0 496.0 (267.0)
Net cash provided by (used in) operating activities 3,430.0 2,313.0 (740.0)
Cash flows from investing activities:      
Purchases of property and equipment (25.0) (25.0) (37.0)
Purchases of marketable securities (4,072.0) (4,938.0) (3,033.0)
Sales of marketable securities 909.0 1,584.0 1,348.0
Maturities of marketable securities 3,162.0 2,027.0 1,810.0
Other investing activities, net (2.0) 0.0 (8.0)
Net cash provided by (used in) investing activities (28.0) (1,352.0) 80.0
Cash flows from financing activities:      
Proceeds from issuance of common stock upon initial public offering, net of underwriting discounts and offering costs 0.0 0.0 3,651.0
Taxes paid related to net share settlement of equity awards (607.0) (177.0) (1,527.0)
Proceeds from exercise of stock options 40.0 138.0 15.0
Proceeds from the issuance of common stock under employee stock purchase plan 48.0 51.0 0.0
Repurchases of common stock (1,500.0) 0.0 0.0
Principal repayment of long-term debt 0.0 (1,995.0) (5.0)
Prepayment penalty on long-term debt 0.0 (213.0) 0.0
Proceeds from issuance of long-term debt and warrants, net of issuance costs 0.0 0.0 1,929.0
Proceeds from issuance of convertible senior notes, net of issuance costs 0.0 1,979.0 0.0
Purchases of capped calls related to convertible senior notes 0.0 (100.0) 0.0
Change in funds payable and amounts payable to customers 1,330.0 1,625.0 (1,024.0)
Other financing activities, net 0.0 0.0 12.0
Net cash provided by (used in) financing activities (689.0) 1,308.0 3,051.0
Effect of exchange rate changes on cash, cash equivalents, and restricted cash (337.0) (210.0) 134.0
Net increase in cash, cash equivalents, and restricted cash 2,376.0 2,059.0 2,525.0
Cash, cash equivalents, and restricted cash, beginning of year 9,727.0 7,668.0 5,143.0
Cash, cash equivalents, and restricted cash, end of year 12,103.0 9,727.0 7,668.0
Supplemental disclosures of cash flow information:      
Cash paid for income taxes, net of refunds 68.0 17.0 15.0
Cash paid for interest $ 8.0 $ 50.0 $ 130.0
v3.22.4
Description of Business
12 Months Ended
Dec. 31, 2022
Organization, Consolidation and Presentation of Financial Statements [Abstract]  
Description of Business Description of Business Airbnb, Inc. (the “Company” or “Airbnb”) was incorporated in Delaware in June 2008 and is headquartered in San Francisco, California. The Company operates a global platform for unique stays and experiences. The Company’s marketplace model connects Hosts and guests (collectively referred to as “customers”) online or through mobile devices to book spaces and experiences around the world.
v3.22.4
Summary of Significant Accounting Policies
12 Months Ended
Dec. 31, 2022
Accounting Policies [Abstract]  
Summary of Significant Accounting Policies Summary of Significant Accounting Policies
Basis of Presentation

The accompanying consolidated financial statements have been prepared in conformity with generally accepted accounting principles in the United States of America (“U.S. GAAP”) and include accounts of the Company and its wholly-owned subsidiaries. All intercompany accounts and transactions have been eliminated in consolidation. The Company has changed its presentation from thousands to millions and, as a result, any necessary rounding adjustments have been made to prior period disclosed amounts.

Stock Split

On October 26, 2020, the Company effected a two-for-one stock split of its common stock and redeemable convertible preferred stock. All share and per share information has been retroactively adjusted to reflect the stock split for all periods presented.

Initial Public Offering

The Company’s registration statement on Form S-1 (the “IPO Registration Statement”) related to its initial public offering (“IPO”) was declared effective on December 9, 2020 and the Company’s Class A common stock began trading on the Nasdaq Global Select Market on December 10, 2020. On December 14, 2020, the Company completed its IPO, in which the Company sold 50.0 million shares of Class A common stock at a price to the public of $68.00 per share. On the same day, the Company sold an additional 5.0 million shares of Class A common stock at a price to the public of $68.00 per share pursuant to the exercise of the underwriters’ option to purchase additional shares. The Company received aggregate net proceeds of $3.7 billion after deducting underwriting discounts and commissions of $79.3 million and offering expenses of $9.8 million.

Upon completing the IPO, all outstanding shares of the Company’s redeemable convertible preferred stock, of which 239.6 million shares were outstanding prior to the IPO, converted into an aggregate of 240.9 million shares of the Company’s Class B common stock, including 1.3 million shares of common stock issuable pursuant to the anti-dilution adjustment provisions relating to the Company’s Series C redeemable convertible preferred stock.

Upon the Company’s IPO, the Company recognized $2.8 billion of stock-based compensation expense for awards with a liquidity-event performance-based vesting condition satisfied at IPO. Shares were then issued related to the vesting of the restricted stock units ("RSUs") with such performance-based vesting conditions. The Company withheld 24.2 million shares of common stock based on the IPO price of $68.00 per share to satisfy tax withholding and remittance of approximately $1.6 billion.

Under the Company’s restated certificate of incorporation, which became effective immediately prior to the completion of the IPO, the Company is authorized to issue 4.7 billion shares of common stock, including 2.0 billion shares of Class A common stock, 710.0 million shares of Class B common stock, 2.0 billion shares of Class C common stock and 26.0 million shares of Class H common stock. As a result, following the completion of the IPO, the Company has four classes of authorized common stock: Class A, Class B, Class C, and Class H common stock, of which Class A and Class B had shares outstanding as of December 31, 2020. In November 2020, 9.2 million shares of Class H common stock were issued to the Company’s wholly-owned Host Endowment Fund subsidiary and held as treasury stock.

Principles of Consolidation

The accompanying consolidated financial statements include the accounts of the Company and its wholly-owned subsidiaries and variable interest entities (“VIE”) in which the Company is the primary beneficiary in accordance with consolidation accounting guidance. All intercompany transactions have been eliminated in consolidation.

The Company determines, at the inception of each arrangement, whether an entity in which it has made an investment or in which it has other variable interest in is considered a VIE. The Company consolidates a VIE when it is deemed to be the primary beneficiary. The primary beneficiary of a VIE is the party that meets both of the following criteria: (i) has the power to direct the activities that most significantly affect the economic performance of the VIE; and (ii) has the obligation to absorb losses or the right to receive benefits that in either case could potentially be significant to the VIE. Periodically, the Company determines whether any changes in its interest or relationship with the entity impact the determination of whether the entity is still a VIE and, if so, whether the Company is the primary beneficiary. If the Company is not deemed to be the primary beneficiary in a VIE, the Company accounts for the investment or other variable interest in a VIE in accordance with applicable U.S. GAAP. As of December 31, 2021 and 2022, the Company’s consolidated VIEs were not material to the consolidated financial statements.

Use of Estimates

The preparation of the Company’s consolidated financial statements in conformity with U.S. GAAP requires management to make certain estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. The Company regularly evaluates its estimates, including those related to bad debt reserves, fair value of investments, useful lives of long-lived assets and
intangible assets, valuation of goodwill and intangible assets from acquisitions, contingent liabilities, insurance reserves, revenue recognition, valuation of common stock, stock-based compensation, and income and non-income taxes, among others. Actual results could differ materially from these estimates.

As the impact of the coronavirus disease (“COVID-19”) pandemic and the challenging macroeconomic conditions, including inflation and rising interest rates, and potential decreased consumer spending, continues to evolve, estimates and assumptions about future events and their effects cannot be determined with certainty and therefore require increased judgment. These estimates and assumptions may change in future periods and will be recognized in the consolidated financial statements as new events occur and additional information becomes known. To the extent the Company’s actual results differ materially from those estimates and assumptions, the Company’s future consolidated financial statements could be affected.

Segment Information

Operating segments are defined as components of an entity for which discrete financial information is available and is regularly reviewed by the Chief Operating Decision Maker (“CODM”) in making decisions regarding resource allocation and performance assessment. The Company’s CODM is its Chief Executive Officer. The Company has determined it has one operating and reportable segment as the CODM reviews financial information presented on a consolidated basis for purposes of allocating resources and evaluating financial performance.

Cash and Cash Equivalents

Cash and cash equivalents are held in checking and interest-bearing accounts and consist of cash and highly-liquid securities with an original maturity of 90 days or less.

Marketable Securities

The Company considers all highly-liquid investments with original maturities of greater than 90 days to be marketable securities. The Company determines the appropriate classification of its investments in marketable securities at the time of purchase. As the Company views these investments as available to support current operations, it accounts for these debt securities as available-for-sale and classifies them as short-term assets on its consolidated balance sheets. The Company determines realized gains or losses on the sale of equity and debt securities on a specific identification method.

Unrealized gains and non-credit related losses on available-for-sale debt securities are reported as a component of accumulated other comprehensive income (loss) in stockholders’ equity (deficit). Realized gains and losses and impairments are reported within other income (expense), net in the consolidated statements of operations. The assessment for impairment takes into account the severity and duration of the decline in value, adverse changes in the market or industry of the investee, the Company’s intent to sell the security, and whether it is more likely than not that it will be required to sell the security before recovery of the amortized cost basis.

The Company’s marketable equity securities with readily determinable fair values are measured at fair value on a recurring basis with changes in fair value recognized within other income (expense), net in the consolidated statements of operations.

The Company records an impairment of its available-for-sale debt securities if the amortized cost basis exceeds its fair value and if the Company has the intention to sell the security or if it is more likely than not that the Company will be required to sell the security before recovery of the amortized cost basis. If the Company does not have the intention to sell the security and it is not more likely than not that the Company will be required to sell the security before recovery of the amortized cost basis and the Company determines that the unrealized loss is entirely or partially due to credit-related factors, the credit loss is measured and recognized as an allowance on the consolidated balance sheets with a corresponding charge in the consolidated statements of operations. The allowance is measured as the amount by which the debt security’s amortized cost basis exceeds the Company’s best estimate of the present value of cash flows expected to be collected. Any remaining decline in fair value that is non-credit related is recognized in other comprehensive income (loss). Improvements in expected cash flows due to improvements in credit are recognized through reversal of the credit loss and corresponding reduction in the allowance for credit loss.

Non-Marketable Investments

Non-marketable investments consist of debt and equity investments in privately-held companies, which are classified as other assets, noncurrent on the consolidated balance sheets. The Company classifies its non-marketable investments that meet the definition of a debt security as available-for-sale. The accounting policy for debt securities classified as available-for-sale is described above. The Company’s non-marketable equity investments are accounted for using either the equity method of accounting or as equity investments without readily determinable fair values under the measurement alternative.

The Company uses the equity method if it has the ability to exercise significant influence, but not control, over the operating and financial policies of the investee. For investments accounted for using the equity method, the Company’s proportionate share of its equity interest in the net income (loss) and other comprehensive income (loss) of these companies is recorded in the consolidated statements of operations within other income (expense), net. The carrying amount of the investment in equity interests is adjusted to reflect the Company’s interest in the investee’s net income or loss and any impairments and is classified in other assets, noncurrent on the consolidated balance sheets.

Equity investments for which the Company is not able to exercise significant influence over the investee and for which fair value is not readily determinable are accounted for using the measurement alternative. Such investments are carried at cost, less any impairments, and are adjusted for subsequent observable price changes obtained from orderly transactions for identical or similar investments issued by the same investee. This election is reassessed each reporting period to determine whether non-marketable equity securities have a readily
determinable fair value, in which case they would no longer be eligible for this election. Changes in the basis of the equity investment are recognized in other income (expense), net in the consolidated statements of operations.

The Company reviews its non-marketable debt and equity investments for impairment at the end of each reporting period or whenever events or circumstances indicate that the carrying value may not be fully recoverable. Impairment indicators might include negative changes in industry and market conditions, financial performance, business prospects, and other relevant events and factors. Upon determining that an impairment exists, the Company recognizes as an impairment in other income (expense), net in the consolidated statements of operations the amount by which the carrying value exceeds the fair value of the investment.

Fair Value of Financial Instruments

The Company applies fair value accounting for all financial assets and liabilities that are recognized or disclosed at fair value in the financial statements. The authoritative guidance on fair value measurements establishes a hierarchical disclosure framework which prioritizes and ranks the level of market price observability used in measuring financial instruments at fair value. This hierarchy requires the Company to use observable market data when available and to minimize the use of unobservable inputs when determining fair value. Financial instruments with readily available quoted prices in active markets generally will have a higher degree of market price observability and a lesser degree of judgment used in measuring fair value.

Financial instruments measured and disclosed at fair value are classified and disclosed based on the observability of inputs used in the determination of fair value as follows:

Level 1: Observable inputs such as quoted prices in active markets.

Level 2: Observable inputs other than Level 1 prices, such as quoted prices in less active markets or model-derived valuations that are observable either directly or indirectly.

Level 3: Unobservable inputs in which there is little or no market data that are significant to the fair value of the assets or liabilities.

The carrying amount of the Company’s financial instruments, including cash equivalents, funds receivable and amounts held on behalf of customers, accounts payable, accrued liabilities, funds payable and amounts payable to customers, and unearned fees approximate their respective fair values because of their short maturities.

Level 2 Valuation Techniques

Financial instruments classified as Level 2 within the Company’s fair value hierarchy are valued on the basis of prices from an orderly transaction between market participants provided by reputable dealers or pricing services. Prices of these securities are obtained through independent, third-party pricing services and include market quotations that may include both observable and unobservable inputs. In determining the value of a particular investment, pricing services may use certain information with respect to transactions in such investments, quotations from dealers, pricing matrices and market transactions in comparable investments, and various relationships between investments. The Company’s foreign exchange derivative instruments are valued using pricing models that take into account the contract terms, as well as multiple inputs where applicable, such as interest rate yield curves and currency rates.

Level 3 Valuation Techniques

Financial instruments classified as Level 3 within the Company’s fair value hierarchy consist primarily of a derivative warrant liability relating to the warrants issued in conjunction with the second lien loan discussed in Note 9, Debt. Valuation techniques for the derivative warrant liability include the Black-Scholes option-pricing model with key assumptions such as stock price volatility, expected term, and risk-free interest rates.

Internal-Use Software

The Company capitalizes certain costs in connection with obtaining or developing software for internal use. Amortization of such costs begins when the project is substantially complete and ready for its intended use. Capitalized software development costs are classified as
property and equipment, net on the consolidated balance sheets and are amortized using the straight-line method over the estimated useful life of the applicable software.

Property and Equipment

Property and equipment are stated at cost, less accumulated depreciation and amortization.

Depreciation and amortization on property and equipment is calculated using the straight-line method over the estimated useful lives indicated below:

Asset CategoryPeriod
Computer equipment5 years
Computer software and capitalized internal-use software
1.5 to 3 years
Office furniture and equipment5 years
Buildings
25 to 40 years
Leasehold improvements
Lesser of estimated useful life or remaining lease term

Costs of maintenance and repairs that do not improve or extend the useful lives of assets are expensed as incurred. Upon retirement or sale, the cost and related accumulated depreciation are removed from the consolidated balance sheet and the resulting gain or loss is reflected in the consolidated statements of operations.

Leases

The Company determines whether an arrangement is or contains a lease at inception. Operating lease right-of-use (“ROU”) assets and liabilities are recognized at commencement date based on the present value of lease payments over the lease term. Operating lease liabilities represent the present value of lease payments not yet paid. Operating lease ROU assets represent the Company’s right to use an underlying asset and are based upon the operating lease liabilities adjusted for prepayments or accrued lease payments, initial direct costs, lease incentives, and impairment of operating lease assets. As most of the Company’s leases do not provide an implicit rate, the Company uses its incremental borrowing rate based on the information available at commencement date in determining the present value of lease payments. The Company has real estate and equipment lease agreements that contain lease and non-lease components, which are accounted for as a single lease component.

The Company’s leases often contain rent escalations over the lease term. The Company recognizes expense for these leases on a straight-line basis over the lease term. Additionally, tenant incentives, primarily used to fund leasehold improvements, are recognized when earned and reduce the Company’s right-of-use asset related to the lease. These are amortized through the right-of-use asset as reductions of expense over the lease term.

The Company’s lease agreements may contain variable costs such as common area maintenance, operating expenses, or other costs. Variable lease costs are expensed as incurred on the consolidated statements of operations. The Company’s lease agreements generally do not contain any residual value guarantees or restrictive covenants.

For substantially all leases with an initial non-cancelable lease term of less than one year and no option to purchase, the Company elected not to recognize the lease on its Consolidated Balance Sheets and instead recognize rent payments on a straight-line basis over the lease term within operating expense on its Consolidated Statements of Operations.

Goodwill

Goodwill represents the excess of the purchase price over the fair value of net assets acquired in a business combination. The Company has one reporting unit. The Company tests goodwill for impairment at least annually in the fourth quarter, or whenever events or changes in circumstances indicate that goodwill might be impaired. The Company uses a two-step process to assess the realizability of goodwill. The first step, Step 0, is a qualitative assessment that analyzes current economic indicators associated with a particular reporting unit. For example, the Company analyzes changes in economic, market and industry conditions, business strategy, cost factors, and financial performance, among others, to determine if there would be a significant decline to the fair value of a reporting unit. A qualitative assessment also includes analyzing the excess fair value of a reporting unit over its carrying value from impairment assessments performed in previous years. If the qualitative assessment indicates a stable or improved fair value, no further testing is required.

If a qualitative assessment indicates that a significant decline to fair value of a reporting unit is more likely than not, or if a reporting unit’s fair value has historically been closer to its carrying value, the Company will proceed to Step 1 testing where the Company calculates the fair value of a reporting unit. If Step 1 indicates that the carrying value of a reporting unit is in excess of its fair value, the Company will record an impairment equal to the amount by which a reporting unit’s carrying value exceeds its fair value.
There were no impairment charges in any of the periods presented in the consolidated financial statements.

Intangible Assets

Intangible assets are amortized on a straight-line basis over the estimated useful lives ranging from one to ten years. The Company reviews intangible assets for impairment under the long-lived asset model described below. There were no impairment charges in any of the periods presented in the consolidated financial statements.

Impairment of Long-Lived Assets

Long-lived assets that are held and used by the Company are reviewed for impairment when events or changes in circumstances indicate that the carrying amount of the asset may not be recoverable. Determination of recoverability of long-lived assets is based on an estimate of the undiscounted cash flows resulting from the use of the asset and its eventual disposition. If the carrying value of the long-lived asset is not recoverable on an undiscounted cash flow basis, impairment is recognized to the extent that the carrying value exceeds its fair value. Fair value is determined through various valuation techniques including discounted cash flow models, quoted market values, and third-party independent appraisals, as necessary.

Any impairments to ROU assets, leasehold improvements, or other assets as a result of a sublease, abandonment, or other similar factor are recorded as an operating expense. Similar to other long-lived assets, management tests ROU assets for impairment whenever events or changes in circumstances occur that could impact the recoverability of these assets. For ROU assets, such circumstances may include subleases that do not fully recover the costs of the associated leases or a decision to abandon the use of all or part of an asset. For the years ended December 31, 2020 and 2021, the Company recorded $35.8 million and $112.5 million, respectively, of long-lived asset impairment charges within restructuring charges in the consolidated statement of operations. For the year ended December 31, 2022, the Company recorded $91.4 million of long-lived asset impairment, of which $88.9 million was recorded within restructuring charges and the remainder within general and administrative, in the consolidated statements of operations.

Revenue Recognition

The Company generates substantially all of its revenue from facilitating guest stays at accommodations offered by Hosts on the Company’s platform.

The Company considers both Hosts and guests to be its customers. The customers agree to the Company’s Terms of Service (“ToS”) to use the Company’s platform. Upon confirmation of a booking made by a guest, the Host agrees to provide the use of the property. At such time, the Host and guest also agree upon the applicable booking value as well as Host fees and guest fees (collectively “service fees”). The Company charges service fees in exchange for certain activities, including the use of the Company’s platform, customer support, and payment processing activities. These activities are not distinct from each other and are not separate performance obligations. As a result, the Company’s single performance obligation is to facilitate a stay, which occurs upon the completion of a check-in event (a “check-in”). The Company recognizes revenue upon check-in as its performance obligation is satisfied upon check-in and the Company has the right to receive payment for the fulfillment of the performance obligation.

The Company charges service fees to its customers as a percentage of the value of the booking, excluding taxes. The Company collects both the booking value from the guest on behalf of the Host and the applicable guest fees owed to the Company using the guest’s pre-authorized payment method. After check-in, the Company disburses the booking value to the Host, less the fees due from the Host to the Company. The Company’s ToS stipulates that a Host may cancel a confirmed booking at any time up to check-in. Therefore, the Company determined that for accounting purposes, each booking is a separate contract with the Host and guest, and the contracts are not enforceable until check-in. Since an enforceable contract for accounting purposes is not established until check-in, there were no partially satisfied or unsatisfied performance obligations as of December 31, 2021 and 2022. The service fees collected from customers prior to check-in are recorded as unearned fees. Unearned fees are not considered contract balances because they are subject to refund in the event of a cancellation.

Guest stays of at least 28 nights are considered long-term stays. The Company charges service fees to facilitate long-term stays on a monthly basis. Such stays are generally cancelable with a 30 days advance notice for no significant penalty. Accordingly, long-term stays are treated as month-to-month contracts; each month is a separate contract with the Host and guest, and the contracts are not enforceable until check-in for the initial month as well as subsequent monthly extensions. The Company’s performance obligation for long-term stays is the same as that for short-term stays. The Company recognizes revenue for the first month upon check-in, similar to short-term stays, and recognizes revenue for any subsequent months upon each month’s anniversary from initial check-in date.

The Company evaluates the presentation of revenue on a gross versus net basis based on whether or not it is the principal (gross) or the agent (net) in the transaction. As part of the evaluation, the Company considers whether it controls the right to use the property before control is transferred. Indicators of control that the Company considers include whether the Company is primarily responsible for fulfilling the promise associated with the rental of the property, whether it has inventory risk associated with the property, and whether it has discretion in establishing the prices for the property. The Company determined that it does not control the right to use the properties either before or after completion of its service. Accordingly, the Company has concluded that it is acting in an agent capacity and revenue is presented net reflecting the service fees received from Hosts and guests to facilitate a stay.

The Company has elected to recognize the incremental costs of obtaining a contract, including the costs of certain referrer fees, as an expense when incurred as the amortization period of the asset that the Company otherwise would have recognized is one year or less. The Company has no significant financing components in its contracts with customers.
The Company has elected to exclude from revenue, taxes assessed by a governmental authority that are both imposed on and are concurrent with specific revenue producing transactions. Accordingly, such amounts are not included as a component of revenue or cost of revenue.

Payments to Customers

The Company makes payments to customers as part of its referral programs and marketing promotions, collectively referred to as the Company’s incentive programs, and refund activities. The payments are generally in the form of coupon credits to be applied toward future bookings or as cash refunds.

Incentive Programs

The Company encourages the use of its platform and attracts new customers through its incentive programs. Under the Company’s referral program, the referring party (the “referrer”) earns a coupon when the new guest or Host (the “referee”) completes their first stay on the Company’s platform. Incentives earned by customers for referring new customers are paid in exchange for a distinct service and are accounted for as customer acquisition costs. The Company records the incentive as a liability at the time the incentive is earned by the referrer with the corresponding charge recorded to sales and marketing expense in the same way the Company accounts for other marketing services from third-party vendors. Any amounts paid in excess of the fair value of the referral service received are recorded as a reduction of revenue. Fair value of the service is established using amounts paid to vendors for similar services. Customer referral coupon credits generally expire within one year from issuance and the Company estimates the redemption rates using its historical experience. As of December 31, 2021 and 2022, the referral coupon liability was not material.

Through marketing promotions, the Company issues customer coupon credits to encourage the use of its platform. After a customer redeems such incentives, the Company records a reduction to revenue at the date it records the corresponding revenue transaction, as the Company does not receive a distinct good or service in exchange for the customer incentive payment.

Refunds

In certain instances, the Company issues refunds to customers as part of its customer support activities in the form of cash or credits to be applied toward a future booking. There is no legal obligation to issue such refunds to Hosts or guests on behalf of its customers. The Company accounts for refunds, net of any recoveries, as variable consideration, which results in a reduction to revenue. The Company reduces the transaction price by the estimated amount of the payments by applying the most likely outcome method based on known facts and circumstances and historical experience. The estimate for variable consideration was not material as of December 31, 2021 and 2022.
The Company evaluates whether the cumulative amount of payments made to customers that are not in exchange for a distinct good or service received from customers exceeds the cumulative revenue earned since inception of the customer relationships. Any cumulative payments in excess of cumulative revenue are presented within operations and support or sales and marketing on the consolidated statements of operations based on the nature of the payments made to customers.

Funds Receivable and Funds Payable

Funds receivable and amounts held on behalf of customers represent cash received or in-transit from guests via third-party credit card processors and other payment methods, which the Company remits for payment to the Hosts following check-in. This cash and related receivable represent the total amount due to Hosts, and as such, a liability for the same amount is recorded to funds payable and amounts payable to customers.

The Company records guest payments, net of service fees, as funds receivable and amounts held on behalf of customers with a corresponding amount in funds payable and amounts payable to customers when cash is received in advance of check-in. Host and guest fees are recorded as cash with a corresponding amount in unearned fees. For certain bookings, a guest may opt to pay a percentage of the total amount due when the booking is confirmed, with the remaining balance due prior to the stay occurring (the “Pay Less Upfront Program”). Under the Pay Less Upfront Program, when the Company receives the first installment payment from the guest upon confirmation of the booking, the Company records the first installment payment as funds receivable and amounts held on behalf of customers with a corresponding amount in funds payable and amounts payable to customers, net of the Host and guest fees. The full value of the service fees is recorded as cash and cash equivalents and unearned fees upon receipt of the first installment payment to represent what the Company expects to be recognized as revenue if the underlying booking is not canceled. Upon receipt of the second installment, such payment amounts are also recorded as funds receivable and amounts held on behalf of customers with a corresponding amount in funds payable and amounts payable to customers.

Following check-in, the Company remits funds due to Hosts and recognizes unearned fees as revenue as its performance obligation is satisfied.

Bad Debt

The Company generally collects funds related to bookings from guests on behalf of Hosts prior to check-in. However, in limited circumstances the Company disburses funds to a Host or a guest on behalf of a counterparty guest or Host prior to collecting such amounts from the counterparty. Such uncollected balances generally arise from the timing of payments and collections related to a dispute resolution between the guest and Host or certain alterations to stays and are included in prepaids and other current assets on the consolidated balance sheets. The Company records a customer receivable allowance for credit losses for funds that may never be collected. The Company estimated its exposure to balances deemed to be uncollectible based on factors including known facts and circumstances, historical experience, reasonable and supportable forecasts of economic conditions, and the age of the uncollected
balances. The Company writes off the asset when it is determined to be uncollectible. Bad debt expense was $107.7 million, $27.3 million, and $49.0 million for the years ended December 31, 2020, 2021, and 2022, respectively.

Cost of Revenue

Cost of revenue primarily consists of payment processing charges, including merchant fees and chargebacks, costs associated with third-party data centers used to host the Company’s platform, and amortization of internally developed software and acquired technology.

Operations and Support

Operations and support costs primarily consist of personnel-related expenses and third-party service provider fees associated with customer support provided via phone, email, and chat to Hosts and guests, customer relations costs, which include refunds and credits related to customer satisfaction and expenses associated with the Company’s Host protection programs, and allocated costs for facilities and information technology. These costs are expensed as incurred.

Product Development

Product development costs primarily consist of personnel-related expenses and third-party service provider fees incurred in connection with the development of the Company’s platform and new products as well as the improvement of existing products, and allocated costs for facilities and information technology. These costs are expensed as incurred.

Sales and Marketing

Sales and marketing costs primarily consist of performance and brand marketing, personnel-related expenses, including those related to field operations, portions of referral incentives and coupons, policy and communications, and allocated costs for facilities and information technology. These costs are expensed as incurred. Advertising expenses were $176.0 million, $542.1 million, and $786.1 million for the years ended December 31, 2020, 2021, and 2022, respectively.

General and Administrative

General and administrative costs primarily consist of personnel-related expenses for executive management and administrative functions, including finance and accounting, legal, and human resources, as well as general corporate and director and officer insurance. General and administrative costs also include certain professional services fees, allocated costs for facilities and information technology expenses, indirect taxes including lodging taxes where the Company may be held jointly liable with Hosts for collecting and remitting such taxes, and bad debt expense. These costs are expensed as incurred.

Restructuring Charges

Costs and liabilities associated with management-approved restructuring activities are recognized when they are incurred. One-time employee termination costs are recognized at the time of communication to employees, unless future service is required, in which case the costs are recognized ratably over the future service period. Ongoing employee termination benefits are recognized as a liability when it is probable that a liability exists and the amount is reasonably estimable. Restructuring charges are recognized as an operating expense within the consolidated statements of operations and related liabilities are recorded within accrued expenses and other liabilities on the consolidated balance sheets. The Company periodically evaluates and, if necessary, adjusts its estimates based on currently available information.

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 law in effect for the years in which the temporary differences are expected to be recovered or settled. The effect of a change in tax rates on deferred tax assets and liabilities is recognized 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. In determining the need for a valuation allowance, the Company weighs both positive and negative evidence in the various jurisdictions in which it operates to determine whether it is more likely than not that its deferred tax assets are recoverable. The Company regularly assesses all available evidence, including cumulative historic losses, forecasted earnings, if carryback is permitted under the law, carryforward periods, and prudent and feasible tax planning strategies.

The Company evaluates and accounts for uncertain tax positions using a two-step approach. Recognition, step one, occurs when the Company concludes that a tax position, based solely on its technical merits, is more-likely-than-not to be sustained upon examination. Measurement, step two, determines the largest amount of benefit that is greater than 50% likely to be realized upon ultimate settlement with a taxing authority that has full knowledge of all relevant information. Derecognition of a tax position that was previously recognized would occur when the Company subsequently determines that a tax position no longer meets the more-likely-than-not threshold of being sustained.

Foreign Currency
The Company’s reporting currency is the U.S. dollar. The Company determines the functional currency for each of its foreign subsidiaries by reviewing their operations and currencies used in their primary economic environments. Assets and liabilities for foreign subsidiaries with functional currency other than U.S. dollar are translated into U.S. dollars at the rate of exchange existing at the balance sheet date. Statements of operations amounts are translated at average exchange rates for the period. Translation gains and losses are recorded in accumulated other comprehensive income (loss) as a component of stockholders’ equity (deficit). No material amounts were reclassified from accumulated other comprehensive income (loss) for the years ended December 31, 2020, 2021, and 2022.

Remeasurement gains and losses are included in other income (expense), net in the consolidated statements of operations. Monetary assets and liabilities are remeasured at the exchange rate on the balance sheet date and nonmonetary assets and liabilities are measured at historical exchange rates. As of December 31, 2021, and 2022, the Company had a cumulative translation gain of $2.8 million and $12.9 million, respectively. Total net realized and unrealized gains (losses) on foreign currency transactions and balances totaled $31.5 million, $(5.1) million, and $29.5 million for the years ended December 31, 2020, 2021, and 2022, respectively.

Derivative Instruments

The Company enters into financial derivative instruments, consisting of foreign currency contracts to mitigate its exposure to the impact of movements in currency exchange rates on its transactional balances denominated in currencies other than the functional currency. The Company does not use derivatives for trading or speculative purposes. Derivative instruments are recognized in the consolidated balance sheets at fair value. Gains and losses resulting from changes in the fair value of derivative instruments that are not designated as hedging instruments for accounting purposes are recognized in other income (expense), net in the consolidated statements of operations in the period that the changes occur.

Share Repurchase

Share repurchases may be made through a variety of methods, which may include open market purchases, privately negotiated transactions, block trades, or accelerated share repurchase transactions, or by any combination of such methods. Share repurchases are recorded at settlement date. When shares are retired, the value of repurchased shares is deducted from stockholders’ equity through capital with the excess over par value recorded to accumulated deficit.

Stock-Based Compensation

Stock-based compensation expense primarily relates to restricted stock units (“RSUs”), restricted stock awards (“RSAs”), stock options, and the Employee Stock Purchase Plan (“ESPP”). RSUs and RSAs are measured at the fair market value of the underlying stock at the grant date and the expense is recognized over the requisite service period. The fair value of stock options and ESPP shares are estimated on the date of grant using the Black-Scholes option pricing model to determine the fair value of stock options on the date of grant. The Company estimates the expected term of stock options granted based on the simplified method and estimates the volatility of its common stock on the date of grant based on the average historical stock price volatility of comparable publicly-traded companies. The simplified method calculates the expected term as the mid-point between the weighted-average time to vesting and the contractual maturity. The simplified method is used as the Company does not have sufficient historical data regarding stock option exercises. The contractual term of the Company’s stock options is ten years. The Company accounts for forfeitures as they occur. The benefits of tax deductions in excess of recognized compensation costs are recognized in the income statement as a discrete item when an option exercise or a vesting and release of shares occurs.
Prior to the Company’s IPO, the absence of an active market for the Company’s common stock required the Company’s board of directors, which includes members who possess extensive business, finance, and venture capital experience, to determine the fair value of its common stock for purposes of granting stock options and RSUs. The Company obtained contemporaneous third-party valuations to assist the board of directors in determining the fair value of the Company’s common stock. All stock options granted were exercisable at a price per share not less than the fair value of the shares of the Company’s common stock as determined by the board of directors (the “Fair Value”) underlying those stock options on their respective grant dates. Historically, substantially all of the Company’s RSUs vested upon the satisfaction of both a service-based vesting condition and liquidity-event performance-based vesting condition. The liquidity-event performance-based vesting condition for RSUs was satisfied upon the effectiveness of the Company’s IPO Registration Statement on December 9, 2020. Upon the Company’s IPO in December 2020, the Company recorded a cumulative one-time stock-based compensation expense of $2.8 billion, determined using the grant-date fair values. The remaining unrecognized stock-based compensation expense related to these RSUs is recorded over their remaining requisite service periods.

Net Income (Loss) Per Share Attributable to Common Stockholders

The Company applies the two-class method when computing net income (loss) per share attributable to common stockholders when shares are issued that meet the definition of a participating security. The two-class method determines net income (loss) per share for each class of common stock and participating securities according to dividends declared or accumulated and participation rights in undistributed earnings. The two-class method requires earnings available to common stockholders for the period to be allocated between common stock and participating securities based upon their respective rights to receive dividends as if all earnings for the period had been distributed. The Company’s previously outstanding redeemable convertible preferred stock was a participating security as the holders of such shares participated in dividends but did not contractually participate in the Company’s losses.

Basic net income (loss) per share is computed by dividing the net income (loss) by the weighted-average number of shares of common stock outstanding during the period, less weighted-average shares subject to repurchase. The diluted net income (loss) per share is computed by giving effect to all potentially dilutive securities outstanding for the period. For periods in which the Company reports net losses, diluted net loss per share attributable to common stockholders is the same as basic net loss per share attributable to common stockholders, because potentially dilutive common shares are anti-dilutive.
Comprehensive Income (Loss)

Comprehensive income (loss) consists of net income (loss) and other comprehensive income (loss). Other comprehensive income (loss) reflects gains and losses that are recorded as a component of stockholders’ equity and are excluded from net loss. Other comprehensive income (loss) consists of foreign currency translation adjustments related to consolidation of foreign entities and unrealized gains (losses) on securities classified as available-for-sale.

Contingencies

The Company is subject to legal proceedings and claims that arise in the ordinary course of business. The Company accrues for losses associated with legal claims when such losses are probable and can be reasonably estimated. These accruals are adjusted as additional information becomes available or circumstances change.

Recently Adopted Accounting Standards

In May 2021, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2021-04, Earnings Per Share (Topic 260), Debt - Modifications and Extinguishments (Topic 470-50), Compensation - Stock Compensation (Topic 718), and Derivatives and Hedging - Contracts in Entity's Own Equity (Subtopic 815-40), which clarifies existing guidance for freestanding written call options which are equity classified and remain so after they are modified or exchanged in order to reduce diversity in practice. The standard is effective for public entities in fiscal years beginning after December 15, 2021, including interim periods within those fiscal years. The Company adopted the standard during the first quarter of 2022, which did not have an impact on the Company's consolidated financial statements.

Recently Issued Accounting Standards Not Yet Adopted

In March 2022, the FASB issued ASU 2022-01, Derivatives and Hedging (Topic 815), which clarifies the guidance on fair value hedge accounting of interest rate risk for portfolios of financial assets. The standard is effective for public entities in fiscal years beginning after December 15, 2022, including interim periods within those fiscal years. Early adoption is permitted on any date on or after the issuance of ASU 2017-12. The Company does not expect the adoption of the new guidance will have a material impact on the Company’s consolidated financial statements.

In June 2022, the FASB issued ASU 2022-03, Fair Value Measurement (Topic 820): Fair Value Measurement of Equity Securities Subject to Contractual Sale Restrictions, which clarifies the guidance of equity securities that are subject to a contractual sale restriction as well as includes specific disclosure requirements for such equity securities. The standard is effective for public entities in fiscal years beginning
after December 15, 2023, including interim periods within those fiscal years and will be applied prospectively. The Company does not expect the adoption of the new guidance will have a material impact on the Company’s consolidated financial statements.

There are other new accounting pronouncements issued by the FASB that the Company has adopted or will adopt, as applicable, and the Company does not believe any of these accounting pronouncements have had, or will have, a material impact on its consolidated financial statements or disclosures.

Prior Period Reclassifications

Certain immaterial amounts in prior periods have been reclassified to conform with current period presentation.

Revision of Previously Issued Financial Statements
The consolidated statements of cash flows for years ended December 31, 2020, and 2021 has been revised to correct for errors identified by management during the preparation of the financial statements for the three months ended March 31, 2022. The errors overstated cash flows from operating activities by $111.0 million and understated the cash flows from financing activities by $111.0 million for the year ended December 31, 2020, and understated cash flows from operating activities by $123.0 million and overstated the cash flows from financing activities by $123.0 million for the year ended December 31, 2021. Management has determined that these errors did not result in the previously issued financial statements being materially misstated. These errors primarily related to the timing of tax payments from the net settlement of equity awards at the initial public offering in December 2020. In particular, in 2020, the Company reported $1.7 billion of cash used in financing activities to cover taxes paid related to the net share settlement of its equity awards that vested upon the initial public offering. However, approximately $123.0 million of this amount was actually remitted to taxing authorities in foreign jurisdictions during 2021. This had no impact on the Company’s consolidated financial statements outside of the presentation in the consolidated statements of cash flow and did not affect the consolidated balance sheets, consolidated statements of operations, or consolidated statements of stockholders’ equity.
v3.22.4
Supplemental Financial Statement Information
12 Months Ended
Dec. 31, 2022
Organization, Consolidation and Presentation of Financial Statements [Abstract]  
Supplemental Financial Statement Information Supplemental Financial Statement Information
Cash, Cash Equivalents, and Restricted Cash

The following table reconciles cash, cash equivalents, and restricted cash reported on the Company’s consolidated balance sheets to the total amount presented in the consolidated statements of cash flows (in millions):
December 31,
20212022
Cash and cash equivalents$6,067 $7,378 
Cash and cash equivalents included in funds receivable and amounts held on behalf of customers3,645 4,708 
Restricted cash included in prepaids and other current assets
15 17 
Total cash, cash equivalents, and restricted cash presented in the consolidated statements of cash flows$9,727 $12,103 

Accrued Expenses and Other Current Liabilities

Accrued expenses and other current liabilities consisted of the following (in millions):

December 31,
20212022
Indirect taxes payable$310 $418 
Compensation and employee benefits416 380 
Indirect tax reserves183 206 
Gift card liability98 141 
Other552 672 
Total accrued expenses and other current liabilities$1,559 $1,817 

Payments to Customers

The Company makes payments to customers as part of its incentive programs (composed of referral programs and marketing promotions) and refund activities. The payments are generally in the form of coupon credits to be applied toward future bookings or as cash refunds.

The following table summarizes total payments made to customers (in millions):

Year Ended December 31,
202020212022
Reductions to revenue
$384 $156 $284 
Charges to operations and support
83 69 88 
Charges to sales and marketing expense
57 47 60 
Total payments made to customers
$524 $272 $432 
v3.22.4
Investments
12 Months Ended
Dec. 31, 2022
Investments, Debt and Equity Securities [Abstract]  
Investments Investments
Debt Securities

The following tables summarize the amortized cost, gross unrealized gains and losses, and fair value of the Company’s available-for-sale debt securities aggregated by investment category (in millions):

December 31, 2021Classification as of December 31, 2021
Amortized
Cost
Gross
Unrealized
Gains
Gross
Unrealized
Losses
Total
Estimated
Fair Value
Cash and
Cash
Equivalents
Marketable
Securities
Other
Assets,
Noncurrent
Certificates of deposit$395 $— $— $395 $31 $364 $— 
Government bonds(1)
— — — — 
Commercial paper1,157 — — 1,157 164 993 — 
Corporate debt securities918 — (3)915 42 863 10 
Mortgage-backed and asset-backed securities34 — — 34 — 34 — 
Total
$2,505 $— $(3)$2,502 $237 $2,255 $10 
(1)Includes U.S. government and government agency debt securities

December 31, 2022Classification as of December 31, 2022

Amortized
Cost
Gross
Unrealized
Gains
Gross
Unrealized
Losses
Total
Estimated
Fair Value
Cash and
Cash
Equivalents
Marketable
Securities
Other
Assets,
Noncurrent
Certificates of deposit$599 $— $— $599 $26 $573 $— 
Government bonds(1)
115 — — 115 32 83 — 
Commercial paper901 — — 901 327 574 — 
Corporate debt securities1,046 (16)1,031 68 959 
Mortgage-backed and asset-backed securities37 — (3)34 — 34 — 
Total
$2,698 $$(19)$2,680 $453 $2,223 $
(1)Includes U.S. government and government agency debt securities

As of December 31, 2021 and 2022, the Company did not have any available-for-sale debt securities for which the Company has recorded credit related losses.

Unrealized gains and losses, net of tax, before reclassifications from accumulated other comprehensive income (loss) to other income (expense), net were not material for the years ended December 31, 2020, 2021, and 2022. Realized gains and losses reclassified from accumulated other comprehensive income (loss) to other income (expense), net were not material for the years ended December 31, 2020, 2021, and 2022.

Debt securities in an unrealized loss position had an estimated fair value of $801.5 million and $748.3 million, and unrealized losses of $3.5 million and $19.4 million as of December 31, 2021 and 2022, respectively. An immaterial amount of these securities were in a continuous unrealized loss position for more than twelve months as of December 31, 2021 and $92.3 million of these securities, with unrealized losses of $12.9 million, were in a continuous loss position for more than twelve months as of December 31, 2022.

The following table summarizes the contractual maturities of the Company’s available-for-sale debt securities (in millions):
December 31, 2022
Amortized
Cost
Estimated
Fair Value
Due within one year$2,238 $2,236 
Due in one year to five years435 422 
Due within five to ten years22 19 
Due beyond ten years
Total$2,698 $2,680 
Equity Investments

Gains and Losses on Marketable Equity Investments

Net unrealized gain (loss) on marketable equity investments was $21.7 million for the year ended December 31, 2020 and immaterial for the years ended December 31, 2021 and 2022. During the year ended December 31, 2021, the marketable equity investments were sold and the Company realized a net loss of $13.4 million. The realized and unrealized gains and losses on marketable equity investments were recorded in other income (expense), net on the consolidated statements of operations.

Equity Investments Without Readily Determinable Fair Values

The Company holds investments in privately-held companies in the form of equity securities without readily determinable fair values and in which the Company does not have a controlling interest or significant influence. These investments had net carrying value of $75.0 million as of both December 31, 2021 and 2022, and are classified within other assets on the consolidated balance sheets. As of December 31, 2021 and 2022 there were no upward or downward adjustments for observable price changes. The Company recorded impairment charges of $53.1 million and $3.1 million, for the years ended December 31, 2020 and 2021, respectively, and did not record any impairment charges during the year ended December 31, 2022. As of December 31, 2021 and 2022, the cumulative downward adjustments for observable price changes and impairment were $56.2 million.

Investments Accounted for Under the Equity Method
As of December 31, 2021 and 2022, the carrying values of the Company’s equity method investments were $17.4 million and $13.8 million, respectively. For the years ended December 31, 2020, 2021, and 2022, the Company recorded losses of $8.2 million, $3.5 million, and $5.4 million, respectively, within other income (expense), net in the consolidated statements of operations, representing its proportionate share of net income or loss based on the investee’s financial results. Also, during the year ended December 31, 2020, the Company recorded impairment charges of $29.0 million related to the carrying value of equity method investments within other income (expense), net. There were no impairment charges for the years ended December 31, 2021 and 2022.
v3.22.4
Fair Value Measurements and Financial Instruments
12 Months Ended
Dec. 31, 2022
Fair Value Disclosures [Abstract]  
Fair Value Measurements and Financial Instruments Fair Value Measurements and Financial Instruments
The following table summarizes the Company’s financial assets and liabilities measured at fair value on a recurring basis (in millions):

December 31, 2021
Level 1Level 2Level 3Total
Assets
Cash equivalents:
Money market funds$1,923 $— $— $1,923 
Certificates of deposit31 — — 31 
Commercial paper— 164 — 164 
Corporate debt securities— 42 — 42 
1,954 206 — 2,160 
Marketable securities:
Certificates of deposit364 — — 364 
Government bonds(1)
— — 
Commercial paper— 993 — 993 
Corporate debt securities— 863 — 863 
Mortgage-backed and asset-backed securities— 34 — 34 
364 1,891 — 2,255 
Funds receivable and amounts held on behalf of customers:
Money market funds466 — — 466 
Prepaids and other current assets:
Foreign exchange derivative assets— 26 — 26 
Other assets, noncurrent:
Corporate debt securities— — 10 10 
Total assets at fair value$2,784 $2,123 $10 $4,917 
Liabilities
Accrued expenses and other current liabilities:
Foreign exchange derivative liabilities$— $10 $— $10 
Total liabilities at fair value$— $10 $— $10 

(1)Includes U.S. government and government agency debt securities
December 31, 2022
Level 1Level 2Level 3Total
Assets
Cash equivalents:
Money market funds$2,326 $— $— $2,326 
Certificates of deposit26 — — 26 
Government bonds(1)
— 32 — 32 
Commercial paper— 327 — 327 
Corporate debt securities— 68 — 68 
2,352 427 — 2,779 
Marketable securities:
Certificates of deposit573 — — 573 
Government bonds(1)
— 83 — 83 
Commercial paper— 574 — 574 
Corporate debt securities— 959 — 959 
Mortgage-backed and asset-backed securities— 34 — 34 
Marketable equity securities— — 
574 1,650 — 2,224 
Funds receivable and amounts held on behalf of customers:
Money market funds501 — — 501 
Prepaids and other current assets:
Foreign exchange derivative assets— 14 — 14 
Other assets, noncurrent:
Corporate debt securities— — 
Total assets at fair value$3,427 $2,091 $$5,522 
Liabilities
Accrued expenses and other current liabilities:
Foreign exchange derivative liabilities$— $31 $— $31 
Total liabilities at fair value$— $31 $— $31 

(1)Includes U.S. government and government agency debt securities

The following table presents additional information about investments that are measured at fair value for which the Company has utilized Level 3 inputs to determine fair value (in millions):

December 31,
20212022
Derivative
Warrant
Liability
Other
Assets,
Noncurrent
Other
Assets,
Noncurrent
Balance, beginning of year$985 $11 $10 
Reclassifications to equity(1,277)— — 
Total realized and unrealized gains (losses):
Included in earnings292 — — 
Included in other comprehensive income (loss)— (1)(6)
Balance, end of year$— $10 $
Changes in unrealized gains or losses included in other comprehensive income (loss) related to investments held at the reporting date$— $(1)$(6)

There were no transfers of financial instruments between valuation levels during the years ended December 31, 2021 and 2022.

The Company amended the anti-dilution feature in the warrant agreements associated with the Second Lien Credit Agreement, as defined
in Note 9, Debt, which resulted in a change in classification from liability to equity, on March 30, 2021 (the “Modification Date”). The Company recorded a marked-to-market loss of $292.0 million through the first quarter of 2021, which was recorded in other income (expense), net on the consolidated statements of operations. Subsequent to the Modification Date, the warrants were no longer subject to marked-to-market charges. The balance of $1.3 billion was then reclassified from liability to equity as the amended warrants met the requirements for equity classification. Refer to Note 9, Debt, for additional information.
Derivatives Not Designated as Hedging Instruments

As of December 31, 2021, the fair value of foreign exchange derivative assets and liabilities totaled $25.9 million and $10.3 million, respectively, with the aggregate notional amount totaling $2.4 billion. As of December 31, 2022, the fair value of foreign exchange derivative assets and liabilities totaled $14.0 million and $31.2 million, respectively, with the aggregate notional amount totaling $2.4 billion. Derivative assets are included in prepaids and other current assets and derivative liabilities are included in accrued expenses and other current liabilities in the consolidated balance sheets.

The Company recorded total net realized gains (losses) of $(21.7) million, $19.3 million, and $92.0 million, and net unrealized gains (losses) of $(24.6) million, $35.4 million and $(32.9) million for the years ended December 31, 2020, 2021, and 2022, respectively, related to foreign exchange derivative assets and liabilities. The realized and unrealized gains and losses on non-designated derivatives are reported in other income (expense), net in the consolidated statements of operations. The cash flows related to derivative instruments not designated as hedging instruments are classified within operating activities in the consolidated statements of cash flows.

The Company has master netting arrangements with the respective counterparties to its derivative contracts, which are designed to reduce credit risk by permitting net settlement of transactions with the same counterparty. The Company presents its derivative assets and derivative liabilities at their gross fair values in its consolidated balance sheets. As of December 31, 2021, the potential effect of these rights of set-off associated with the Company’s derivative contracts would be a reduction to both assets and liabilities of $10.3 million, resulting in net derivative assets of $15.6 million. As of December 31, 2022, the potential effect of these rights of set-off associated with the Company’s derivative contracts would be a reduction to both assets and liabilities of $10.7 million, resulting in net derivative assets of $3.2 million and net derivative liabilities of $20.5 million.
v3.22.4
Intangible Assets and Goodwill
12 Months Ended
Dec. 31, 2022
Goodwill and Intangible Assets Disclosure [Abstract]  
Intangible Assets and Goodwill Intangible Assets and Goodwill
Intangible Assets

Identifiable intangible assets consisted of the following (in millions):

December 31, 2021December 31, 2022
Gross
Carrying
Amount (1)
Accumulated
Amortization (1)
Net
Carrying
Value
Gross
Carrying
Amount (1)
Accumulated
Amortization (1)
Net
Carrying
Value
Listing relationships$43 $(16)$27 $35 $(13)$22 
Trade names33 (18)15 33 (25)
Developed technology23 (21)— — — 
Customer contacts(4)— — — — 
Other10 (2)(5)
Total intangible assets$113 $(61)$52 $77 $(43)$34 
(1)Excludes write off of intangible assets that have been fully amortized.

Amortization expense related to intangible assets for the years ended December 31, 2020, 2021, and 2022 was $36.2 million, $23.7 million, and $19.1 million, respectively.

Estimated future amortization expense for intangible assets as of December 31, 2022 was as follows (in millions):

Year Ending December 31,Amount
2023$11 
2024
2025
2026
2027
Thereafter
Total future amortization expense$34 
Goodwill

The changes in the carrying amount of goodwill for the years ended December 31, 2021 and 2022 were as follows (in millions):

Amount
Balance as of December 31, 2020$656 
Foreign currency translation adjustments(3)
Balance as of December 31, 2021653 
Foreign currency translation adjustments(3)
Balance as of December 31, 2022$650 
v3.22.4
Property and Equipment, Net
12 Months Ended
Dec. 31, 2022
Property, Plant and Equipment [Abstract]  
Property and Equipment, Net Property and Equipment, Net
Property and equipment, net, consisted of the following (in millions):

December 31,
20212022
Computer software and capitalized internal-use software$175 $164 
Leasehold improvements214 152 
Computer equipment57 32 
Office furniture and equipment43 23 
Buildings and land17 17 
Construction in progress30 45 
Total536 433 
Less: Accumulated depreciation and amortization(379)(312)
Total property and equipment, net$157 $121 

Depreciation expense related to property and equipment for the years ended December 31, 2020, 2021, and 2022 was $67.2 million, $85.6 million, and $42.6 million, respectively. During the years ended December 31, 2020, 2021, and 2022, amortization of capitalized internal-use software costs was $22.5 million, $66.3 million, and $27.6 million, respectively.
The net carrying value of capitalized internal-use software as of December 31, 2021 and 2022 was $21.0 million and $8.6 million, respectively.
v3.22.4
Leases
12 Months Ended
Dec. 31, 2022
Leases [Abstract]  
Leases Leases
The Company’s material operating leases consist of office space and data center space. The Company’s leases generally have remaining terms of one to 16 years, some of which include one or more options to extend the leases up to 10 years. Additionally, some lease contracts include termination options. Generally, the lease term is the minimum of the non-cancelable period of the lease or the lease term inclusive of reasonably certain renewal periods. Sublease income was immaterial for the years ended December 31, 2020, 2021, and 2022.

The components of lease cost were as follows (in millions):

Year Ended December 31,
202020212022
Operating lease cost(1)
$91 $83 $77 
Short-term lease cost(1)
Variable lease cost(1)
12 14 17 
Lease cost, net(2)
$104 $100 $96 
(1)Classified within operations and support, product development, sales and marketing, and general and administrative expenses in the consolidated statements of operations.
(2)Lease costs do not include lease impairments due to restructuring. Refer to Note 17, Restructuring, for additional information.

Supplemental disclosures of cash flow information related to operating lease liabilities were as follows (in millions):

Year Ended December 31,
202020212022
Cash paid for operating leases$63 $92 $102 
Net impact of non-cash changes to right-of-use assets related to modifications and reassessments of operating leases103 18 (5)
Lease term and discount rate were as follows:
December 31,
20212022
Weighted-average remaining lease term (years)7.26.0
Weighted-average discount rate6.8 %7.0 %

Maturities of lease liabilities (excluding short-term leases) were as follows as of December 31, 2022 (in millions):

Year Ending December 31,Amount
2023$81 
202453 
202587 
202679 
202731 
Thereafter128 
Total lease payments459 
Less: Imputed interest(105)
Present value of lease liabilities354 
Less: Current portion of lease liabilities(59)
Total long-term lease liabilities$295 
v3.22.4
Debt
12 Months Ended
Dec. 31, 2022
Debt Disclosure [Abstract]  
Debt Debt
The following table summarizes the Company’s outstanding debt (in millions, except percentages)):

As of
December 31, 2021
Effective
Interest Rate
As of
December 31, 2022
Effective
Interest Rate
Convertible senior notes due March 2026$2,000 0.2 %$2,000 0.2 %
Less: Unamortized debt discount and debt issuance costs(17)(13)
Total long-term debt$1,983 $1,987 

Convertible Senior Notes

On March 8, 2021, the Company issued $2.0 billion aggregate principal amount of 0% convertible senior notes due 2026 (the "2026 Notes") pursuant to an indenture, dated March 8, 2021 (the "Indenture"), between the Company and U.S. Bank National Association, as trustee. The 2026 Notes were offered and sold in a private offering to qualified institutional buyers pursuant to Rule 144A under the Securities Act of 1933, as amended.

The 2026 Notes are senior unsecured obligations of the Company and will not bear regular interest. The 2026 Notes mature on March 15, 2026, unless earlier converted, redeemed, or repurchased. The proceeds, net of debt issuance costs, were $1,979.2 million.

The initial conversion rate for the 2026 Notes is 3.4645 shares of the Company's Class A common stock per $1,000 principal amount of 2026 Notes, which is equivalent to an initial conversion price of approximately $288.64 per share of the Class A common stock. The conversion rate and conversion price are subject to customary adjustments under certain circumstances in accordance with the terms of the Indenture.

The 2026 Notes will be convertible at the option of the holders before December 15, 2025 only upon the occurrence of certain events, and from and after December 15, 2025, at any time at their election until the close of business on the second scheduled trading day immediately preceding March 15, 2026, only under certain circumstances. Upon conversion, the Company may satisfy its conversion obligation by paying or delivering, as applicable, cash, shares of the Company’s Class A common stock, or a combination of cash and shares of the Company’s Class A common stock, at the Company’s election, based on the applicable conversion rate. In addition, if certain corporate events that constitute a make-whole fundamental change (as defined in the Indenture) occur, then the conversion rate will, in certain circumstances, be increased for a specified period of time. Additionally, in the event of a corporate event constituting a fundamental change (as defined in the Indenture), holders of the 2026 Notes may require the Company to repurchase all or a portion of their 2026 Notes at a repurchase price equal to 100% of the principal amount of the Notes being repurchased, plus accrued and unpaid special interest or additional interest, if any, to, but excluding, the date of the fundamental change repurchase.

Debt issuance costs related to the 2026 Notes totaled $20.8 million and were comprised of commissions payable to the initial purchasers and third-party offering costs and are amortized to interest expense using the effective interest method over the contractual term. For the years ended December 31, 2021 and 2022, interest expense was $3.4 million and $4.2 million, respectively.

As of December 31, 2022, the if-converted value of the 2026 Notes did not exceed the outstanding principal amount.

As of December 31, 2022 the total estimated fair value of the 2026 Notes was $1.7 billion and was determined based on a market approach using actual bids and offers of the 2026 Notes in an over-the-counter market on the last trading day of the period, or Level 2 inputs.
Capped Calls

On March 3, 2021, in connection with the pricing of the 2026 Notes, the Company entered into privately negotiated capped call transactions (the “Capped Calls”) with certain of the initial purchasers and other financial institutions (the "option counterparties") at a cost of $100.2 million. The Capped Calls cover, subject to customary adjustments, the number of shares of Class A common stock initially underlying the 2026 Notes. By entering into the Capped Calls, the Company expects to reduce the potential dilution to its Class A common stock (or, in the event a conversion of the 2026 Notes is settled in cash, to reduce its cash payment obligation) in the event that at the time of conversion of the 2026 Notes its common stock price exceeds the conversion price of the 2026 Notes. The cap price of the Capped Calls was $360.80 per share of Class A common stock, which represented a premium of 100% over the last reported sale price of the Class A common stock of $180.40 per share on March 3, 2021, subject to certain customary adjustments under the terms of the Capped Calls.

The Capped Calls meet the criteria for classification in equity, are not remeasured each reporting period, and are included as a reduction to additional paid-in-capital within stockholders’ equity.

Term Loans

In April 2020, the Company entered into a $1.0 billion First Lien Credit and Guaranty Agreement (the “First Lien Credit Agreement,” and the loans thereunder, the “First Lien Loan”), resulting in proceeds of $961.4 million, net of debt discount and debt issuance costs of $38.6 million. The loan was due and payable in April 2025 and could be repaid in whole or in part at the Company’s option, subject to applicable prepayment premiums and make-whole premiums. Beginning in September 2020, the Company was required to repay the First Lien Loan in quarterly installments equal to 0.25% of the $1.0 billion aggregate principal amount of the First Lien Loan, with the remaining principal amount payable on the maturity date.

Also in April 2020, the Company entered into a $1.0 billion Second Lien Credit and Guaranty Agreement (the “Second Lien Credit Agreement,” and the loans thereunder, the “Second Lien Loan”), resulting in net proceeds of $967.5 million, net of debt discount and debt issuance costs of $32.5 million. The loan was due and payable in July 2025 and could be repaid in whole or in part, subject to applicable prepayment premiums, make-whole premiums, and the priority of lenders under the First Lien Credit Agreement over any proceeds the Company receives from the sale of collateral.

In March 2021, the Company repaid the principal amount outstanding of $1,995.0 million under the First Lien Loan and Second Lien Loan, which resulted in a loss of extinguishment of debt of $377.2 million, including early redemption premiums of $212.9 million and a write-off of $164.3 million of unamortized debt discount and debt issuance costs. The loss on extinguishment of debt was included in interest expense in the consolidated statements of operations. Additionally, the Company incurred third-party costs, principally legal and administrative fees, of $0.1 million relating to the extinguishment of the loans.

The debt discount and debt issuance costs were amortized to interest expense using the effective interest rate method. For the year ended December 31, 2021, interest expense of $41.3 million was recorded for the First Lien and Second Lien Loans relating to the contractual interest and amortization of the debt discount and debt issuance costs.

The First Lien Loan and the Second Lien Loan were unconditionally guaranteed by certain of the Company’s domestic subsidiaries and were both secured by substantially all the assets of the Company and subsidiary guarantors.

In connection with the Second Lien Loan, the Company issued warrants to purchase 7,934,794 shares of Class A common stock with an initial exercise price of $28.355 per share, subject to adjustment upon the occurrence of certain specified events, to the Second Lien Loan lenders. The warrants expire on April 17, 2030 and the exercise price can be paid in cash or in net shares at the holder’s option. The fair value of the warrants at issuance was $116.6 million and was recorded as a liability in accrued expenses and other current liabilities on the consolidated balance sheet with a corresponding debt discount recorded against the Second Lien Loan. The warrant liability was remeasured to fair value at each reporting date for as long as the warrants remained outstanding and unexercised with changes in fair value recorded in other income (expense), net in the consolidated statements of operations. As of December 31, 2020, the fair value of the warrant totaled $985.2 million. On March 30, 2021, the Company amended the anti-dilution feature in the warrant agreements, which resulted in a change in classification from liability to equity. Accordingly, the Company recorded $292.0 million in other expense during the first quarter of 2021. The liability balance of $1.3 billion was then reclassified to equity as the amended warrants met the requirements for equity classification.

2020 Credit Facility

In November 2020, the Company entered into a five-year secured revolving Credit and Guarantee Agreement, which provided for initial commitments from a group of lenders led by Morgan Stanley Senior Funding, Inc. of $500.0 million (“2020 Credit Facility”). The 2020 Credit Facility provided a $200.0 million sub-limit for the issuance of letters of credit and had a commitment fee of 0.15% per annum on any undrawn amounts, payable quarterly in arrears. Outstanding letters of credit totaled $15.9 million as of December 31, 2021. Remaining letters of credit under the 2020 Credit Facility were transferred to new issuers upon the termination of the 2020 Credit Facility.

2022 Credit Facility

On October 31, 2022, the Company terminated the 2020 Credit Facility and entered into a five-year unsecured Revolving Credit Agreement, which provides for initial commitments by a group of lenders led by Morgan Stanley Senior Funding, Inc. of $1.0 billion (“2022 Credit Facility”). The 2022 Credit Facility provides a $200.0 million sub-limit for the issuance of letters of credit. The 2022 Credit Facility has a commitment fee based on ratings and leverage ratios with amounts that range from 0.10% to 0.20% per annum on any undrawn amounts, payable quarterly in arrears. Interest on borrowings is based on ratings and leverage ratios with amounts that range from (i) in the case of the Secured Overnight Financing Rate (“SOFR”) borrowings, 1.0% to 1.5%, plus SOFR, subject to a floor of 0.0%, or (ii) in the case of base rate
borrowings, 0.0% to 0.5%; plus the greatest of (a) the rate of interest in effect for such day by Morgan Stanley Senior Funding, Inc. as its “prime rate”; (b) the federal funds effective rate plus 0.5%; and (c) SOFR for a one-month period plus 1.0%. Outstanding balances may be repaid prior to maturity without penalty. The 2022 Credit Facility contains customary events of default, affirmative and negative covenants, including restrictions on the Company’s and certain of its subsidiaries’ ability to incur debt and liens, undergo fundamental changes, as well as certain financial covenants. The Company was in compliance with all financial covenants as of December 31, 2022. As of December 31, 2022, no amounts were drawn under the 2022 Credit Facility and outstanding letters of credit totaled $28.5 million.
v3.22.4
Stockholders’ Equity
12 Months Ended
Dec. 31, 2022
Share-Based Payment Arrangement [Abstract]  
Stockholders’ Equity Stockholders’ Equity
Common Stock

The Company’s restated certificate of incorporation authorizes the Company to issue 2.0 billion shares of Class A common stock and 710.0 million shares of Class B common stock. Both classes of common stock have a par value of $0.0001 per share. Class A common stock is entitled to one vote per share and Class B common stock is entitled to 20 votes per share. A share of Class B common stock is convertible into a share of Class A common stock voluntarily at any time by the holder, and will convert automatically into a share of Class A common stock upon the earlier of (a) the date and time, or the occurrence of an event, specified by vote or written consent of the holders of at least 80% of the outstanding shares of Class B common stock at the time of such vote or consent, voting as a separate series, and (b) the 20-year anniversary of the closing of the IPO. In addition, with certain exceptions as further described in the Company's restated certificate of incorporation, transfers of Class B common stock will result in the conversion of such share of Class B common stock into a share of Class A common stock.

Under the Company’s restated certificate of incorporation, the Company is also authorized to issue 2.0 billion shares of Class C common stock and 26.0 million shares of Class H common stock. Each share of Class C common stock is entitled to no votes and will not be convertible into any other shares of the Company’s capital stock. Each share of Class H common stock is entitled to no votes and will convert into a share of Class A common stock on a share-for-share basis upon the sale of such share of Class H common stock to any person or entity that is not the Company’s subsidiary.

Class A Common Stock Warrants

As described above in Note 9, Debt, in connection with the Second Lien Loan entered into in April 2020, the Company issued warrants to purchase 7,934,794 shares of Class A common stock with an initial exercise price of $28.355 per share, subject to adjustment upon the occurrence of certain specified events, to the Second Lien Loan lenders.

Share Repurchase

On August 2, 2022, the Company announced its board of directors approved a share repurchase program with authorization to purchase up to $2.0 billion of the Company's Class A common stock at management’s discretion (the “Share Repurchase Program”). The Share Repurchase Program does not have an expiration date, does not obligate the Company to repurchase any specific number of shares, and may be modified, suspended, or terminated at any time at the Company’s discretion. During the year ended December 31, 2022, the Company repurchased and subsequently retired 13.8 million shares of common stock for $1.5 billion. As of December 31, 2022, the Company had $500.0 million available to repurchase shares pursuant to the Share Repurchase Program.
v3.22.4
Stock-Based Compensation
12 Months Ended
Dec. 31, 2022
Share-Based Payment Arrangement [Abstract]  
Stock-Based Compensation Stock-Based Compensation
Stock-Based Compensation Expense

The following table summarizes total stock-based compensation expense (in millions):

Year Ended December 31,
202020212022
Operations and support$144 $49 $63 
Product development1,880 545 548 
Sales and marketing435 100 114 
General and administrative544 205 205 
Stock-based compensation expense$3,003 $899 $930 

Prior to December 9, 2020, no stock-based compensation expense had been recognized for certain awards with a liquidity-event performance-based vesting condition based on the occurrence of a qualifying event, as such qualifying event was not probable. Upon the Company's initial public offering, the liquidity event performance-based condition was met and $2.8 billion of stock-based compensation expense was recognized related to these awards.

The Company recognized an income tax benefit of $39.9 million, $35.6 million, and $19.0 million in the consolidated statements of operations for stock-based compensation arrangements in the years ended December 31, 2020, 2021, and 2022, respectively.

Equity Incentive Plans

2018 Equity Incentive Plan
In 2018, the Company adopted the 2018 Equity Incentive Plan (the “2018 Plan”) to replace the 2008 Equity Incentive Plan (the “2008 Plan”). A total of 50.0 million shares of Class B common stock were reserved for issuance under the 2018 Plan and the 13.2 million shares remaining for issuance under the 2008 Plan were added to the number of shares available under the 2018 Plan. The expiration of the 2008 Plan had no impact on the terms of outstanding awards under that plan. All unvested equity canceled under the 2008 Plan were added to the 2018 Plan and made available for future issuance.

Assumed Equity Incentive Plan

In connection with the acquisition of HotelTonight in 2021, the Company assumed stock options and RSUs under HotelTonight’s equity incentive plan (the “Assumed Equity Incentive Plan”). As of December 31, 2021, a total of 98,093 shares of the Company’s Class A common stock were issuable upon exercise of outstanding options under the Assumed Equity Incentive Plan, with weighted-average exercise price of $22.67 per share. In addition, as of December 31, 2021, a total of 3,512 RSUs were issued and outstanding under the Assumed Equity Incentive Plan. No additional stock options or RSUs may be granted under the Assumed Equity Incentive Plan.

2020 Incentive Award Plan

In 2020, the Company adopted the 2020 Incentive Award Plan (the “2020 Plan,” and together with the 2008 Plan, 2018 Plan, and the Assumed Equity Incentive Plan, the “Plans”). Under the 2020 Plan, 62,069,613 shares of Class A common stock were initially reserved for issuance. The number of shares initially reserved for issuance pursuant to awards under the 2020 Plan will be increased by (i) the number of shares subject to awards outstanding under the 2008 Plan, Assumed Equity Incentive Plan, and 2018 Plan as of the effective date of the 2020 Plan that subsequently terminate, are exchanged for cash, surrendered or repurchased, or are tendered or withheld to satisfy any exercise price or tax withholding obligations and (ii) an annual increase on the first day of each year beginning in 2022 and ending in 2030, equal to the lesser of (A) 5% of the shares of all series of the Company’s common stock outstanding on the last day of the immediately preceding year and (B) such smaller number of shares of stock as determined by the Company’s board of directors; provided, however, that no more than 371,212,920 shares of stock may be issued upon the exercise of incentive stock options.

Stock Option and Restricted Stock Unit Activity

The fair value of each stock option award is estimated on the date of grant using the Black-Scholes option-pricing model using the range of assumptions in the following table:

Year Ended December 31,
202020212022
Expected term (years)
5.1 - 8.0
 8.0
6.1
Risk-free interest rate
0.5% - 1.5%
1.1% - 1.5%
0.3% - 2.2%
Expected volatility
39.1% - 43.6%
44.2% - 44.9%
48.6% - 58.4%
Expected dividend yield— — — 

A summary of stock option and RSU activity under the Plans was as follows (in millions, except per share amounts):

Outstanding
Stock Options
Outstanding
Restricted Stock Units
 Shares
Available for
Grant
Number of
Shares
Weighted-
Average
Exercise
Price
Number of
Shares
Weighted-
Average
Grant
Date Fair
Value
Balances as of December 31, 202086 41 $12.48 48 $40.01 
Granted(1)
(10)191.08 181.15 
Shares withheld for taxes— — (1)66.99 
Exercised/Vested — (18)7.77 (15)57.05 
Canceled— 56.69 (4)64.32 
Balances as of December 31, 202181 24 19.69 37 61.22 
Granted(13)161.70 12 135.09 
Increase in shares available for grant32 — — — — 
Shares withheld for taxes— — (5)80.98 
Exercised/Vested— (3)14.32 (7)83.12 
Canceled— 95.93 (3)101.58 
Balances as of December 31, 2022108 22 $23.41 34 $77.07 

(1)There were no options or RSUs that were granted from the Assumed Equity Incentive Plan for the year ended December 31, 2021.
 Number of
Shares
Weighted-
Average
Exercise
Price
Weighted-
Average
Remaining
Contractual
Life (years)
Aggregate
Intrinsic
Value
Options outstanding as of December 31, 202124$19.69 3.66$3,555 
Options exercisable as of December 31, 202121 13.28 2.903,207 
Options outstanding as of December 31, 20222223.41 2.781,432 
Options exercisable as of December 31, 202220 17.01 2.271,380 
During the years ended December 31, 2020, 2021, and 2022, the weighted-average fair value of stock options granted under the Plans was $15.42, $96.50, and $79.75 per share, respectively. During the years ended December 31, 2020, 2021, and 2022, the aggregate intrinsic value of stock options exercised was $476.0 million, $2,824.9 million, and $326.0 million, respectively, and the total grant-date fair value of stock options that vested was $44.4 million, $45.9 million, and $45.0 million, respectively.

As of December 31, 2022, there was $78.0 million, of total unrecognized compensation cost related to stock option awards granted under the Plans. The unrecognized cost as of December 31, 2022 is expected to be recognized over a weighted-average period of 2.58 years.

Restricted Stock Awards

The Company has granted RSAs to certain continuing employees, primarily in connection with acquisitions. Vesting of this stock is primarily dependent on a service-based vesting condition that generally becomes satisfied over a period of four years. The Company has the right to repurchase or cancel shares for which the vesting condition is not satisfied.

Unvested RSAs as of December 31, 2020, 2021, and 2022 was 0.7 million, 0.6 million, and 0.4 million shares, respectively, with weighted-average grant-date fair value of $62.33, $62.32, and $62.33 per share, respectively. Activities related to the Company’s RSAs were not material for the years ended December 31, 2020, 2021, and 2022.

Restricted Stock Units

RSUs are measured at the fair market value of the underlying stock at the grant date and the expense is recognized over the requisite service period. The service-based vesting condition for these awards is generally satisfied over four years.

2020 Employee Stock Purchase Plan

In December 2020, the Company’s board of directors adopted the ESPP. The maximum number of shares of Class A common stock authorized for sale under the ESPP is equal to the sum of (i) 4.0 million shares of Class A common stock and (ii) an annual increase on the first day of each year beginning in 2022 and ending in 2030, equal to the lesser of (a) 1% of shares of Class A common stock (on an as converted basis) on the last day immediately preceding year and (b) such number of shares of common stock as determined by the board of directors; provided, however, that no more than 89.8 million shares may be issued under the ESPP. As of December 31, 2021 and 2022, the Company had reserved 3.0 million and 8.9 million shares for future issuance under the ESPP. The Company estimates the fair value of shares to be issued under the ESPP based on a combination of options valued using the Black-Scholes option-pricing model. The Company recorded stock-based compensation expense related to the ESPP of $105.9 million and $32.6 million for the years ended December 31, 2021, and 2022, respectively.
During the year ended December 31, 2021, 0.9 million shares of common stock were purchased under the ESPP at a weighted-average price of $59.11 per share, resulting in net cash proceeds of $50.6 million. During the year ended December 31, 2022, 0.5 million shares of common stock were purchased under the ESPP at a weighted-average price of $95.90 per share, resulting in net cash proceeds of $47.5 million.
v3.22.4
Commitments and Contingencies
12 Months Ended
Dec. 31, 2022
Commitments and Contingencies Disclosure [Abstract]  
Commitments and Contingencies Commitments and Contingencies
Commitments

The Company has commitments including purchase obligations for web-hosting services and other commitments for brand marketing. The following table presents these non-cancelable commitments and obligations as of December 31, 2022 (in millions):

 TotalLess than
1 year
1 to 3 years3 to 5 yearsMore than
5 years
Purchase obligations$1,068 $137 $517 $414 $— 
Other commitments232 37 76 79 40 
Total$1,300 $174 $593 $493 $40 

Purchase commitments include amounts related to the Company’s commercial agreement with a data hosting services provider, pursuant to which the Company committed to spend an aggregate of at least $941.7 million for vendor services through 2027.

Extenuating Circumstances Policy

In March 2020, the Company applied its extenuating circumstances policy to cancellations resulting from COVID-19. That policy provides
customers with greater flexibility to cancel reservations that are disrupted by epidemics, natural disasters, and other emergencies. Specifically, accommodation bookings made by guests on or before March 14, 2020 have so far been covered by the policy and may be canceled before check-in. To support Hosts impacted by elevated guest cancellations under that policy, the Company committed up to $250 million for Hosts, and had a remaining reserve balance of $33.9 million as of December 31, 2022. The reservations eligible for this $250 million Host program were defined as reservations made on or before March 14, 2020 with a check-in date between March 14, 2020 and May 31, 2020. For these reservations, eligible Hosts are entitled to receive 25% of the amount they would have received from guests under the Host’s cancellation policies. These payments are accounted for as consideration paid to a customer and as such, primarily result in a reduction to revenue. Under this policy, the Company recorded payments, primarily to Hosts, excluding Superhosts, of $205.1 million, $5.6 million and $2.9 million for the years ended December 31, 2020, 2021, and 2022, respectively, in its consolidated statement of operations.

Lodging Tax Obligations and Other Non-Income Tax Matters

Some states and localities in the United States and elsewhere in the world impose transient occupancy or lodging accommodations taxes (“Lodging Taxes”) on the use or occupancy of lodging accommodations or other traveler services. As of December 31, 2022, the Company collects and remits Lodging Taxes in approximately 32,000 jurisdictions on behalf of its Hosts. Such Lodging Taxes are generally remitted to tax jurisdictions within a 30 to 90-day period following the end of each month.

As of December 31, 2021 and 2022, the Company had an obligation to remit Lodging Taxes collected from guests on bookings in these jurisdictions totaling $180.8 million and $250.6 million, respectively. These payables were recorded in accrued expenses and other current liabilities on the consolidated balance sheets.

In jurisdictions where the Company does not collect and remit Lodging Taxes, the responsibility for collecting and remitting these taxes primarily rests with Hosts. The Company has estimated liabilities in a certain number of jurisdictions with respect to state, city, and local taxes related to lodging where management believes it is probable that the Company can be held jointly liable with Hosts for taxes and the related amounts can be reasonably estimated. As of December 31, 2021 and 2022, accrued obligations related to these estimated taxes, including estimated penalties and interest, totaled $57.3 million and $70.6 million, respectively. With respect to lodging and related taxes for which a loss is probable or reasonably possible, the Company is unable to determine an estimate of the possible loss or range of loss beyond the amounts already accrued.

The Company’s potential obligations with respect to Lodging Taxes could be affected by various factors, which include, but are not limited to, whether the Company determines, or any tax authority asserts, that the Company has a responsibility to collect lodging and related taxes on either historical or future transactions or by the introduction of new ordinances and taxes which subject the Company’s operations to such taxes. Accordingly, the ultimate resolution of Lodging Taxes may be greater or less than reserve amounts that the Company has recorded.

The Company is currently involved in disputes brought by certain states and localities involving the payment of Lodging Taxes. These jurisdictions are asserting that the Company is liable or jointly liable with Hosts to collect and remit Lodging Taxes. These disputes are in various stages and the Company continues to vigorously defend these claims. The Company believes that the statutes at issue impose a Lodging Tax obligation on the person exercising the taxable privilege of providing accommodations, or the Company’s Hosts.

The imposition of such taxes on the Company could increase the cost of a guest booking and potentially cause a reduction in the volume of bookings on the Company’s platform, which would adversely impact the Company’s results of operations. The Company will continue to monitor the application and interpretation of lodging and related taxes and ordinances and will adjust accruals based on any new information or further developments.

The Company is under audit and inquiry by various domestic and foreign tax authorities with regard to non-income tax matters. The subject matter of these contingent liabilities primarily arises from the Company’s transactions with its customers, as well as the tax treatment of certain employee benefits and related employment taxes. In jurisdictions with disputes connected to transactions with customers, disputes involve the applicability of transactional taxes (such as sales, value-added, and similar taxes) to services provided, as well as the applicability of withholding tax on payments made to such Hosts. Due to the inherent complexity and uncertainty of these matters and judicial processes in certain jurisdictions, the final outcomes may exceed the estimated liabilities recorded.

During the years ended December 31, 2020, 2021, and 2022, the Company recorded, including interest, $16.3 million of tax expense, $10.1 million of tax benefit, and $10.3 million of tax expense, related to estimated Hosts’ withholding tax obligations, respectively. As of December 31, 2021 and 2022, the Company accrued a total of $124.2 million and $134.6 million of estimated tax liabilities, including interest, related to Hosts’ withholding tax obligations, respectively.

The Company has identified reasonably possible exposures related to withholding income taxes, transactional taxes, and business taxes, and has not accrued for these amounts since the likelihood of the contingent liability is less than probable. The Company estimates that the reasonably possible loss related to these matters in excess of the amounts accrued is between $250.0 million and $280.0 million; however, no assurance can be given as to the outcomes and the Company could be subject to significant additional tax liabilities.

With respect to all other withholding tax on payments made to Hosts and transactional taxes for which a loss is probable or reasonably possible, the Company is unable to determine an estimate of the possible loss or range of loss beyond the amounts already accrued.

In addition, as of December 31, 2021 and 2022, the Company accrued a total of $33.6 million and $32.6 million of estimated tax liabilities related to employment taxes on certain employee benefits, respectively. Refer to Note 13, 
Income Taxes, for further discussion on other tax matters.

The Company is subject to regular payroll tax examinations by various international, state, and local jurisdictions. Although management believes its tax withholding remittance practices are appropriate, the Company may be subject to additional tax liabilities, including interest and penalties, if any tax authority disagrees with the Company’s withholding and remittance practices, or if there are changes in laws, regulations, administrative practices, principles, or interpretations related to payroll tax withholding in the various state and local jurisdictions.

Legal and Regulatory Matters

The Company has been and is currently a party to various legal and regulatory matters arising in the normal course of business. Such proceedings and claims, even if not meritorious, can require significant financial and operational resources, including the diversion of management’s attention from the Company’s business objectives.

Regulatory Matters

The Company operates in a complex legal and regulatory environment and its operations are subject to various U.S. and foreign laws, rules, and regulations, including those related to: Internet activities; short-term rentals, long-term rentals and home sharing; real estate, property rights, housing and land use; travel and hospitality; privacy and data protection; intellectual property; competition; health and safety; protection of minors; consumer protection; employment; payments, money transmission, economic and trade sanctions, anti-corruption and anti-bribery; taxation; and others. In addition, the nature of the Company’s business exposes it to inquiries and potential claims related to the compliance of the business with applicable law and regulations. In some instances, applicable laws and regulations do not yet exist or are being applied, interpreted or implemented to address aspects of the Company’s business, and such adoption or interpretation could further alter or impact the Company’s business.

In certain instances, the Company has been party to litigation with municipalities relating to or arising out of certain regulations. In addition, the implementation and enforcement of regulation can have an impact on the Company’s business.

Intellectual Property

The Company has been and is currently subject to claims relating to intellectual property, including alleged patent infringement. Adverse results in such lawsuits may include awards of substantial monetary damages, costly royalty or licensing agreements, or orders preventing the Company from offering certain features, functionalities, products, or services, and may also cause the Company to change its business practices or require development of non-infringing products or technologies, which could result in a loss of revenue or otherwise harm its business. To date, the Company has not incurred any material costs as a result of such cases and has not recorded any material liabilities in its consolidated financial statements related to such matters.

Litigation and Other Legal Proceedings

The Company is currently involved in, and may in the future be involved in, legal proceedings, claims, and government investigations in the ordinary course of business. These include proceedings, claims, and investigations relating to, among other things, regulatory matters, commercial matters, intellectual property, competition, tax, employment, pricing, discrimination, consumer rights, personal injury, and property rights.

The Australian Competition and Consumer Commission (“ACCC”) commenced proceedings against Airbnb, Inc. and Airbnb Ireland UC alleging that Airbnb has breached the Australian Consumer Law by making false and misleading representations, because certain users were shown prices and charged in U.S. dollars versus Australian dollars. The Company disputes the allegations of the ACCC.

Depending on the nature of the proceeding, claim, or investigation, the Company may be subject to monetary damage awards, fines, penalties, and/or injunctive orders. Furthermore, the outcome of these matters could materially adversely affect the Company’s business, results of operations, and financial condition. The outcomes of legal proceedings, claims, and government investigations are inherently unpredictable and subject to significant judgment to determine the likelihood and amount of loss related to such matters. While it is not possible to determine the outcomes, the Company believes based on its current knowledge that the resolution of all such pending matters will not, either individually or in the aggregate, have a material adverse effect on the Company’s business, results of operations, financial condition, or cash flows.

The Company establishes an accrued liability for loss contingencies related to legal matters when a loss is both probable and reasonably estimable. These accruals represent management’s best estimate of probable losses. Such currently accrued amounts are not material to the Company’s consolidated financial statements. However, management’s views and estimates related to these matters may change in the future, as new events and circumstances arise and the matters continue to develop. Until the final resolution of legal matters, there may be an exposure to losses in excess of the amounts accrued. With respect to outstanding legal matters, based on current knowledge, the amount or range of reasonably possible loss will not, either individually or in the aggregate, have a material adverse effect on the Company’s business, results of operations, financial condition, or cash flows. Legal fees are expensed as incurred.

Host Protections

The Company offers AirCover coverage, which includes but is not limited to, the Company’s Host Damage Protection program that provides protection of up to $3.0 million for direct physical loss or damage to a Host’s covered property caused by guests during a confirmed booking and when the Host and guest are unable to resolve the dispute. The Company retains risk and also maintains insurance from third parties on a per claim basis to protect the Company’s financial exposure under this program. In addition, through third-party insurers and self-insurance mechanisms, including a wholly-owned captive insurance subsidiary created during the year ended December 31, 2019, the Company provides insurance coverage for third-party bodily injury or property damage liability claims that occur during a stay.
The Company’s Host Liability Insurance and Experiences Liability Insurance consists of a commercial general liability policy, with Hosts and the Company as named insureds and landlords of Hosts as additional insureds. The Host Liability Insurance and Experiences Liability Insurance provides primary coverage for up to $1.0 million per occurrence, subject to a $1.0 million cap per listing location, and includes various market standard conditions, limitations, and exclusions.

Indemnifications

The Company has entered into indemnification agreements with certain of its employees, officers and directors. The indemnification agreements and the Company’s Amended and Restated Bylaws (the “Bylaws”) require the Company to indemnify its directors and officers and those employees who have entered into indemnification agreements to the fullest extent not prohibited by Delaware law. Subject to certain limitations, the indemnification agreements and Bylaws also require the Company to advance expenses incurred by its directors and officers and those employees who have entered into indemnification agreements. No demands have been made upon the Company to provide indemnification or advancement under the indemnification agreements or the Bylaws, and thus, there are no indemnification or advancement claims that the Company is aware of that could have a material adverse effect on the Company’s business, results of operations, financial condition, or cash flows.

In the ordinary course of business, the Company has included limited indemnification provisions in certain agreements with parties with whom the Company has commercial relations, which provisions are of varying scope and terms with respect to indemnification of certain matters, which may include losses arising out of the Company’s breach of such agreements or out of intellectual property infringement claims made by third parties. It is not possible to determine the maximum potential loss under these indemnification provisions due to the limited history of prior indemnification claims and the unique facts and circumstances involved in each particular provision. To date, no significant costs have been incurred, either individually or collectively, in connection with the Company’s indemnification provisions.
v3.22.4
Income Taxes
12 Months Ended
Dec. 31, 2022
Income Tax Disclosure [Abstract]  
Income Taxes Income Taxes
The domestic and foreign components of income (loss) before income taxes were as follows (in millions):

 Year Ended December 31,
 202020212022
Domestic$(4,510)$(390)$1,820 
Foreign(172)90 169 
Income (loss) before income taxes$(4,682)$(300)$1,989 

The components of the provision for (benefit from) income taxes were as follows (in millions):

 Year Ended December 31,
 202020212022
Current
Federal$(91)$$19 
State(1)10 
Foreign15 34 68 
Total current provision for (benefit from) income taxes(77)41 97 
Deferred
Federal— — — 
State— — — 
Foreign(20)11 (1)
Total deferred provision for (benefit from) income taxes(20)11 (1)
Total provision for (benefit from) income taxes$(97)$52 $96 
The following is a reconciliation of the statutory federal income tax rate to the Company’s effective tax rate:

 Year Ended December 31,
 202020212022
Expected income tax expense at federal statutory rate21.0 %21.0 %21.0 %
State taxes, net of federal benefits— (0.7)0.4 
Foreign tax rate differential(0.5)(5.1)1.0 
Stock-based compensation7.1 282.4 (6.9)
Deferred tax impacts of restructuring6.5 (9.7)— 
Other statutorily non-deductible expenses(0.3)(1.1)0.3 
Non-deductible warrant revaluations(3.9)(20.4)(0.1)
Research and development credits4.3 51.0 (4.7)
Uncertain tax positions—prior year positions(0.1)(3.1)0.1 
Uncertain tax positions—current year positions(0.2)(1.0)0.8 
US tax on foreign income, net of allowable credits and deductions— — 0.7 
Foreign-derived intangible income deduction— — (1.9)
Other0.3 1.3 0.1 
Change in valuation allowance(32.1)(331.9)(6.0)
Effective tax rate2.1 %(17.3)%4.8 %

For the year ended December 31, 2020, the difference in the Company’s effective tax rate and the U.S. federal statutory tax rate was primarily due to the Company’s tax impact of restructuring and the IPO, and the Company’s full valuation allowance on its U.S. deferred tax assets. The Coronavirus Aid, Relief, and Economic Security Act (“CARES Act”) was enacted by the United States on March 27, 2020. The CARES Act contains certain tax provisions, including provisions that retroactively and/or temporarily suspend or relax in certain respects the application of certain provisions in the Act, such as the limitations on the deduction of net operating losses and interest. For the year ended December 31, 2020, the Company recorded a benefit of $95.6 million related to the carryback of its 2020 net operating loss.

For the year ended December 31, 2021, the difference in the Company’s effective tax rate and the U.S. federal statutory tax rate was primarily due to the jurisdictional mix of earnings, excess tax benefits related to stock-based compensation, and the Company’s full valuation allowance on its U.S. deferred tax assets.

For the year ended December 31, 2022, the difference in the Company’s effective tax rate and the U.S. federal statutory tax rate was primarily due to excess tax benefits related to stock-based compensation, research and development credits, and the Company’s full valuation allowance on its U.S. deferred tax assets.

The components of deferred tax assets and liabilities consisted of the following (in millions):

 December 31,
 20212022
Deferred tax assets:
Net operating loss carryforwards$1,988 $1,539 
Tax credit carryforwards568 664 
Accruals and reserves106 123 
Non-income tax accruals65 68 
Stock-based compensation157 111 
Operating lease liabilities87 73 
Intangible assets210 188 
Capitalized research and development costs— 413 
Other155 37 
Gross deferred tax assets3,336 3,216 
Valuation allowance(3,264)(3,166)
Total deferred tax assets72 50 
Deferred tax liabilities:
Property and equipment basis differences(8)(9)
Operating lease assets(49)(23)
Other— (2)
Total deferred tax liabilities(57)(34)
Total net deferred tax assets$15 $16 
For the year ended December 31, 2021, the increase in the Company’s valuation allowance compared to the prior year was primarily due to the 2021 net operating loss, an increase in tax credits generated, and business interest expenses subject to limitation. For the year ended December 31, 2022, the decrease in the Company’s valuation allowance compared to the prior year was primarily due to the utilization of net operating losses, business interest deductions subject to limitation in prior years, and stock-based compensation deductions, partially offset by capitalized research and development costs under Section 174.

In determining the need for a valuation allowance, the Company weighs both positive and negative evidence in the various jurisdictions in which it operates to determine whether it is more likely than not that its deferred tax assets are recoverable. The Company regularly assesses all available evidence, including cumulative historic losses and forecasted earnings. Due to cumulative losses in the U.S. during the prior three years, including tax deductible stock compensation, and based on all available positive and negative evidence, the Company does not believe it is more likely than not that its U.S. deferred tax assets will be realized as of December 31, 2022. Accordingly, a full valuation allowance has been established in the United States, and no deferred tax assets and related tax benefit have been recognized in the financial statements. However, given the Company’s current earnings and anticipated future earnings, the Company believes that there is a reasonable possibility that sufficient positive evidence may become available in a future period to allow the Company to reach a conclusion that the U.S. valuation allowance will no longer be needed. Release of the valuation allowance would result in the recognition of material U.S. federal and state deferred tax assets and a corresponding decrease to income tax expense in the period the release is recorded. The exact timing and amount of the valuation allowance release are subject to change on the basis of the level of sustained U.S. profitability that the Company is able to actually achieve, as well as the amount of tax deductible stock compensation dependent upon the Company’s publicly traded share price, foreign currency movements, and macroeconomic conditions, among other factors.

There is no valuation allowance in certain foreign jurisdictions in which it is more likely than not that deferred tax assets will be realized.

The Company’s policy with respect to its undistributed foreign subsidiaries’ earnings is to consider those earnings to be indefinitely reinvested. The Company has not provided for the tax effect, if any, of limited outside basis differences of its foreign subsidiaries. The determination of the future tax consequences of the remittance of these earnings is not practicable.

As of December 31, 2021 and 2022, the Company had net operating loss carryforwards for federal income tax purposes of $8.8 billion and $6.8 billion, respectively. Certain of the Company’s federal net operating loss carryforwards will expire, if not utilized, beginning in 2031. As of December 31, 2021 and 2022, the Company had federal research and development tax credit carryforwards of $491.2 million and $578.5 million, respectively. The research and development tax credits will expire beginning in 2038 if not utilized.

As of December 31, 2021 and 2022, the Company had net operating loss carryforwards for state income tax purposes of $5.5 billion and $4.8 billion, respectively. Certain of the Company’s state net operating loss carryforwards will expire, if not utilized, beginning in 2025. As of December 31, 2021 and 2022, the Company had state research and development carryforwards and enterprise zone tax credit carryforwards of $338.1 million and $402.1 million, respectively. The research and development tax credits do not expire, and the enterprise zone tax credits will expire, if not utilized, beginning in 2023.

The Tax Reform Act of 1986 and similar California legislation impose substantial restrictions on the utilization of net operating losses and tax credit carryforwards in the event that there is a change in ownership as provided by Section 382 of the Internal Revenue Code and similar state provisions. Such a limitation could result in the expiration of the net operating loss carryforwards and tax credits before utilization, which could result in increased future tax liabilities.

A reconciliation of the beginning and ending amount of the Company’s total gross unrecognized tax benefits was as follows (in millions):

 Year Ended December 31,
 202020212022
Balance at beginning of year$337 $508 $597 
Gross increases related to prior year tax positions14 
Gross decreases related to prior year tax positions(6)(2)(2)
Gross increases related to current year tax positions196 85 60 
Reductions due to settlements with taxing authorities(21)(1)(7)
Reduction due to lapse in statute of limitations— (7)(5)
Balance at end of year$508 $597 $650 

The Company is in various stages of examination in connection with its ongoing tax audits globally, and it is difficult to determine when these examinations will be settled. The Company believes that an adequate provision has been recorded for any adjustments that may result from tax audits. However, the outcome of tax audits cannot be predicted with certainty. If any issues addressed in the Company’s tax audits are resolved in a manner not consistent with management’s expectations, the Company may be required to record an adjustment to the provision for (benefit from) income taxes in the period such resolution occurs. Changes in tax laws, regulations, administrative practices, principles, and interpretations may impact the Company’s tax contingencies. The timing of the resolution of income tax examinations is highly uncertain, and the amounts ultimately paid, if any, upon resolution of the issues raised by the taxing authorities may differ from the amounts accrued. It is reasonably possible that within the next twelve months the Company may experience an increase or decrease in its unrecognized tax benefits as a result of additional assessments by various tax authorities, possibly reach resolution of income tax examinations in one or more jurisdictions, or lapses of the statute of limitations. However, an estimate of the range of the reasonably possible change in the next twelve months cannot be made.
As of December 31, 2022, $209.6 million of unrecognized tax benefits represents the amount that would, if recognized, impact the Company’s effective income tax rate.

In accordance with the Company’s accounting policy, it recognizes accrued interest and penalties related to unrecognized tax benefits in the provision for (benefit from) income taxes. The Company’s accrual for interest and penalties was $58.7 million and $65.8 million as of December 31, 2021 and 2022, respectively.

The Company’s significant tax jurisdictions include the United States, California, and Ireland. The Company is currently under examination for income taxes by the Internal Revenue Service (“IRS”) for the 2013, 2016, 2017, and 2018 tax years. The primary issue under examination in the 2013 audit is the valuation of the Company’s international intellectual property which was sold to a subsidiary in 2013. In the year ended December 31, 2019, new information became available which required the Company to remeasure its reserve for unrecognized tax benefits. The Company recorded additional tax expense of $196.4 million during the year ended December 31, 2019. In December 2020, the Company received a Notice of Proposed Adjustment (“NOPA”) from the IRS which proposes an increase to the Company’s U.S. taxable income that could result in additional income tax expense and cash liability of $1.3 billion, plus penalties and interest, which exceeds its current reserve recorded in its consolidated financial statements by more than $1.0 billion. The Company disagrees with the proposed adjustment and intends to vigorously contest it. In February 2021, the Company submitted a protest to the IRS describing its disagreement with the proposed agreement and requesting the case be transferred to the IRS Independent Office of Appeals (“IRS Appeals”). In December 2021, the Company received a rebuttal from the IRS with the same proposed adjustments that were in the NOPA. In January 2022, the Company entered into an administrative dispute process with IRS Appeals. The Company will continue to pursue all available remedies to resolve this dispute, including petitioning the U.S. Tax Court (“Tax Court”) for redetermination if an acceptable outcome cannot be reached with IRS Appeals, and if necessary, appealing the Tax Court’s decision to the appropriate appellate court. The Company believes that adequate amounts have been reserved for any adjustments that may ultimately result from these examinations. If the IRS prevails in the assessment of additional tax due based on its position and such tax and related interest and penalties, if any, exceeds the Company’s current reserves, such outcome could have a material adverse impact on the Company’s financial position and results of operations, and any assessment of additional tax could require a significant cash payment and have a material adverse impact on the Company’s cash flow.

On July 27, 2015, the United States Tax Court (the “Tax Court”) issued an opinion in Altera Corp. v. Commissioner (the “Tax Court Opinion”), which concluded that related parties in a cost sharing arrangement are not required to share expenses related to stock-based compensation. The Tax Court Opinion was appealed by the Commissioner to the Ninth Circuit Court of Appeals (the “Ninth Circuit”). On June 7, 2019, the Ninth Circuit issued an opinion (the “Ninth Circuit Opinion”) that reversed the Tax Court Opinion. On July 22, 2019, Altera Corp. filed a petition for a rehearing before the full Ninth Circuit. On November 12, 2019, the Ninth Circuit denied Altera Corp.’s petition for rehearing its case. The Company accordingly recognized tax expense of $26.6 million related to changes in uncertain tax positions during the year ended December 31, 2019. The Company reversed this expense entirely during the year ended December 31, 2020 due to the carryback of its 2020 net operating loss as allowable under the CARES Act.

The Company’s 2008 to 2022 tax years remain subject to examination in the United States and California due to tax attributes and statutes of limitations, and its 2018 to 2022 tax years remain subject to examination in Ireland. There are other ongoing audits in various other jurisdictions that are not material to the Company’s financial statements. The Company remains subject to possible examination in various other jurisdictions that are not expected to result in material tax adjustments.

On August 16, 2022, the Inflation Reduction Act (the “IRA”) was signed into law in the United States. Among other changes, the IRA introduced a corporate minimum tax on certain corporations with average adjusted financial statement income over a three-tax year period in excess of $1 billion and an excise tax on certain stock repurchases by certain covered corporations for taxable years beginning after December 31, 2022. While the corporate minimum tax law change has no immediate effect and is not expected to have a material adverse effect on the Company’s results of operations going forward, the Company will continue to evaluate its impact as further information becomes available.
v3.22.4
Net Income (Loss) per Share
12 Months Ended
Dec. 31, 2022
Earnings Per Share [Abstract]  
Net Income (Loss) per Share Net Income (Loss) per Share
The following table sets forth the computation of basic and diluted net loss per share attributable to common stockholders for the years indicated (in millions, except per share amounts):

Year Ended December 31,
202020212022
Net income (loss)$(4,585)$(352)$1,893 
Add: convertible notes interest expense, net of tax— — 
Net income (loss) - diluted$(4,585)$(352)$1,897 
Weighted-average shares in computing net income (loss) per share attributable to Class A and Class B common stockholders:
Basic284 616 637 
Effect of dilutive securities— — 43 
Diluted284 616 680 
Net income (loss) per share attributable to Class A and Class B common stockholders:
Basic$(16.12)$(0.57)$2.97 
Diluted$(16.12)$(0.57)$2.79 

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 and conversion. Each share of Class A common stock is entitled to one vote per share and each share of Class B common stock is entitled to 20 votes per share. Each share of Class B common stock is convertible into a share of Class A common stock voluntarily at any time by the holder, and automatically upon certain events. The Class A common stock has no conversion rights. As the liquidation and dividend rights are identical for Class A and Class B common stock, the undistributed earnings are allocated on a proportional basis and the resulting net loss per share attributable to common stockholders will, therefore, be the same for both Class A and Class B common stock on an individual or combined basis.

There were no preferred dividends declared or accumulated for the years ended December 31, 2020, 2021, and 2022. As of December 31, 2020, 2021, and 2022, RSUs to be settled in 12.0 million, 9.6 million, and 9.6 million, respectively, shares of Class A common stock were excluded from the table below because they are subject to market conditions that were not achieved as of such date. As of December 31, 2020 and 2021, 0.5 million shares of RSAs were excluded from the table below because they are subject to performance conditions that were not achieved as of such date. As of December 31, 2022, 0.3 million shares of RSAs were excluded from the table below because they are subject to performance conditions that were not achieved as of such date. The 2026 Notes issued in March 2021 are deemed to be anti-dilutive under the if-converted method for the year ended December 31, 2021. Refer to Note 9, Debt, for further information on the 2026 Notes.

Additionally, the following securities were not included in the computation of diluted shares outstanding because the effect would be anti-dilutive (in millions):

Year Ended December 31,
202020212022
2026 Notes(1)
— 11 — 
Warrants— 
Escrow shares— — 
Stock options41 24 
RSUs36 26 
ESPP— 
Total87 70 10 
(1)Holders of the 2026 Notes who convert their 2026 Notes in connection with certain corporate events that constitute a make-whole fundamental change are entitled to an increase in the conversion rate. The 11.1 million shares represents the maximum number of shares that could have been issued upon conversion after considering the make-whole fundamental change adjustment on an unweighted basis.
v3.22.4
Employee Benefit Plan
12 Months Ended
Dec. 31, 2022
Retirement Benefits [Abstract]  
Employee Benefit Plan Employee Benefit Plan The Company maintains a 401(k) defined contribution benefit plan that covers substantially all of its domestic employees. The plan allows U.S. employees to make voluntary pre-tax contributions in certain investments at the discretion of the employee, up to maximum annual contribution subject to Internal Revenue Code limitations. The Company matched a portion of employee contributions totaling $22.4 million, $19.1 million, and $23.4 million for the years ended December 31, 2020, 2021, and 2022, respectively. Both employee contributions and the Company’s matching contributions are fully vested upon contribution.
v3.22.4
Geographic Information
12 Months Ended
Dec. 31, 2022
Revenue from Contract with Customer [Abstract]  
Geographic Information Geographic Information
The following table sets forth the breakdown of revenue by geography, determined based on the location of the Host’s listing (in millions):

Year Ended December 31,
202020212022
United States$1,649 $2,996 $3,890 
International(1)
1,729 2,996 4,509 
Total revenue$3,378 $5,992 $8,399 
(1)No individual international country represented 10% or more of the Company’s total revenue for years ended December 31, 2020, 2021, and 2022.

The following table sets forth the breakdown of long-lived assets based on geography (in millions):

 December 31,
 20212022
United States$330 $203 
Ireland57 36 
Other international42 20 
Total long-lived assets$429 $259 

Tangible long-lived assets as of December 31, 2021 and 2022 consisted of property and equipment and operating lease ROU assets. Long-lived assets attributed to the United States, Ireland, and other international geographies are based upon the country in which the asset is located.
v3.22.4
Restructuring
12 Months Ended
Dec. 31, 2022
Restructuring and Related Activities [Abstract]  
Restructuring Restructuring
During the year ended December 31, 2020, the Company experienced significant economic challenges associated with a severe decline in bookings, resulting primarily from COVID-19 and overall global travel restrictions. To address these impacts, in May 2020, the Company’s management approved a restructuring plan to realign the Company’s business and strategic priorities based on the current market and economic conditions as a result of COVID-19. This worldwide restructuring plan included a 25% reduction in the number of full-time employees, or approximately 1,800 employees, as well as a reduction in the contingent workforce and amendments to certain commercial agreements. These restructuring expenses are included in the Company’s consolidated statements of operations, and unpaid amounts are included in accrued expenses and other current liabilities on its consolidated balance sheets. The cumulative restructuring charges as of December 31, 2022 was $353.3 million, for which the majority of these restructuring actions were completed in 2020. As of December 31, 2022, the restructuring liabilities were not material.

For the year ended December 31, 2020, the Company incurred $151.4 million in restructuring charges, of which $103.8 million was related to severance and other employee costs, $35.8 million was related to lease impairments, and $11.8 million was primarily related to contract amendments and terminations. For the year ended December 31, 2021, the Company incurred $112.8 million in restructuring charges, including $75.3 million related to impairments of operating lease ROU assets and $37.2 million related to impairments of leasehold improvements.

In 2022, the Company shifted to a remote work model, allowing its employees to work from anywhere in the country they currently work. The shift to a remote work model was in direct response to the change in how employees work due to the impact of COVID-19. As a result, for the year ended December 31, 2022, the Company recorded restructuring charges of $89.1 million, which include $80.5 million relating to an impairment of both domestic and international operating lease ROU assets, and $8.4 million of related leasehold improvements.
v3.22.4
Related Party Transactions
12 Months Ended
Dec. 31, 2022
Related Party Transactions [Abstract]  
Related Party Transactions Related Party TransactionsAn individual who served as an executive officer of the Company through March 1, 2020, also served as a director of a payment processing vendor. The Company is party to a merchant agreement with the vendor whereby the Company earns transaction fees and incentives for offering its services to its customers in certain markets and satisfying certain base requirements pursuant to the agreement. The Company applies the transaction fees and incentives received to partially offset the merchant fees charged by the vendor. On March 1, 2020, this individual ceased as an employee of the Company and was appointed to the Company’s board of directors. Net expense with this vendor was $210.9 million for the year ended December 31, 2020, and was included in cost of revenue in the consolidated statements of operations.
v3.22.4
Schedule II—Valuation and Qualifying Accounts
12 Months Ended
Dec. 31, 2022
SEC Schedule, 12-09, Valuation and Qualifying Accounts [Abstract]  
Schedule II—Valuation and Qualifying Accounts
Schedule II—Valuation and Qualifying Accounts
The tables below detail the activity of the customer receivable reserve, insurance liability, and the valuation allowance on deferred tax assets for the years ended December 31, 2020, 2021, and 2022 (in millions):
 Balance at
Beginning of
Year
Charged to
Expenses
Charges
Utilized/
Write-Offs
Balance at
End of Year
Customer Receivable Reserve
Year Ended December 31, 2020$51 $108 $(68)$91 
Year Ended December 31, 2021$91 $27 $(87)$31 
Year Ended December 31, 2022$31 $49 $(41)$39 
Balance at
Beginning of
Year
Additions for
Current Period
Changes in
Estimates for
Prior Periods
Net PaymentsBalance at
End of Year
Insurance Liability
Year Ended December 31, 2020$73 $98 $(21)$(99)$51 
Year Ended December 31, 2021$51 $85 $$(90)$47 
Year Ended December 31, 2022$47 $140 $(5)$(121)$61 
Balance at
Beginning of
Year
Charged
(Credited) to
Expenses
Charged to
Other
Accounts
Balance at
End of Year
Valuation Allowance on Deferred Tax Assets
Year Ended December 31, 2020$1,024 $1,029 $— $2,053 
Year Ended December 31, 2021$2,053 $1,211 $— $3,264 
Year Ended December 31, 2022$3,264 $(98)$— $3,166 
v3.22.4
Summary of Significant Accounting Policies (Policies)
12 Months Ended
Dec. 31, 2022
Accounting Policies [Abstract]  
Basis of Presentation
Basis of Presentation

The accompanying consolidated financial statements have been prepared in conformity with generally accepted accounting principles in the United States of America (“U.S. GAAP”) and include accounts of the Company and its wholly-owned subsidiaries. All intercompany accounts and transactions have been eliminated in consolidation. The Company has changed its presentation from thousands to millions and, as a result, any necessary rounding adjustments have been made to prior period disclosed amounts.
Principles of Consolidation
Principles of Consolidation

The accompanying consolidated financial statements include the accounts of the Company and its wholly-owned subsidiaries and variable interest entities (“VIE”) in which the Company is the primary beneficiary in accordance with consolidation accounting guidance. All intercompany transactions have been eliminated in consolidation.
The Company determines, at the inception of each arrangement, whether an entity in which it has made an investment or in which it has other variable interest in is considered a VIE. The Company consolidates a VIE when it is deemed to be the primary beneficiary. The primary beneficiary of a VIE is the party that meets both of the following criteria: (i) has the power to direct the activities that most significantly affect the economic performance of the VIE; and (ii) has the obligation to absorb losses or the right to receive benefits that in either case could potentially be significant to the VIE. Periodically, the Company determines whether any changes in its interest or relationship with the entity impact the determination of whether the entity is still a VIE and, if so, whether the Company is the primary beneficiary. If the Company is not deemed to be the primary beneficiary in a VIE, the Company accounts for the investment or other variable interest in a VIE in accordance with applicable U.S. GAAP. As of December 31, 2021 and 2022, the Company’s consolidated VIEs were not material to the consolidated financial statements.
Use of Estimates
Use of Estimates

The preparation of the Company’s consolidated financial statements in conformity with U.S. GAAP requires management to make certain estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. The Company regularly evaluates its estimates, including those related to bad debt reserves, fair value of investments, useful lives of long-lived assets and
intangible assets, valuation of goodwill and intangible assets from acquisitions, contingent liabilities, insurance reserves, revenue recognition, valuation of common stock, stock-based compensation, and income and non-income taxes, among others. Actual results could differ materially from these estimates.

As the impact of the coronavirus disease (“COVID-19”) pandemic and the challenging macroeconomic conditions, including inflation and rising interest rates, and potential decreased consumer spending, continues to evolve, estimates and assumptions about future events and their effects cannot be determined with certainty and therefore require increased judgment. These estimates and assumptions may change in future periods and will be recognized in the consolidated financial statements as new events occur and additional information becomes known. To the extent the Company’s actual results differ materially from those estimates and assumptions, the Company’s future consolidated financial statements could be affected.
Segment Information Segment Information Operating segments are defined as components of an entity for which discrete financial information is available and is regularly reviewed by the Chief Operating Decision Maker (“CODM”) in making decisions regarding resource allocation and performance assessment. The Company’s CODM is its Chief Executive Officer. The Company has determined it has one operating and reportable segment as the CODM reviews financial information presented on a consolidated basis for purposes of allocating resources and evaluating financial performance.
Cash and Cash Equivalents Cash and Cash EquivalentsCash and cash equivalents are held in checking and interest-bearing accounts and consist of cash and highly-liquid securities with an original maturity of 90 days or less.
Marketable Securities
Marketable Securities

The Company considers all highly-liquid investments with original maturities of greater than 90 days to be marketable securities. The Company determines the appropriate classification of its investments in marketable securities at the time of purchase. As the Company views these investments as available to support current operations, it accounts for these debt securities as available-for-sale and classifies them as short-term assets on its consolidated balance sheets. The Company determines realized gains or losses on the sale of equity and debt securities on a specific identification method.

Unrealized gains and non-credit related losses on available-for-sale debt securities are reported as a component of accumulated other comprehensive income (loss) in stockholders’ equity (deficit). Realized gains and losses and impairments are reported within other income (expense), net in the consolidated statements of operations. The assessment for impairment takes into account the severity and duration of the decline in value, adverse changes in the market or industry of the investee, the Company’s intent to sell the security, and whether it is more likely than not that it will be required to sell the security before recovery of the amortized cost basis.

The Company’s marketable equity securities with readily determinable fair values are measured at fair value on a recurring basis with changes in fair value recognized within other income (expense), net in the consolidated statements of operations.
The Company records an impairment of its available-for-sale debt securities if the amortized cost basis exceeds its fair value and if the Company has the intention to sell the security or if it is more likely than not that the Company will be required to sell the security before recovery of the amortized cost basis. If the Company does not have the intention to sell the security and it is not more likely than not that the Company will be required to sell the security before recovery of the amortized cost basis and the Company determines that the unrealized loss is entirely or partially due to credit-related factors, the credit loss is measured and recognized as an allowance on the consolidated balance sheets with a corresponding charge in the consolidated statements of operations. The allowance is measured as the amount by which the debt security’s amortized cost basis exceeds the Company’s best estimate of the present value of cash flows expected to be collected. Any remaining decline in fair value that is non-credit related is recognized in other comprehensive income (loss). Improvements in expected cash flows due to improvements in credit are recognized through reversal of the credit loss and corresponding reduction in the allowance for credit loss.
Non-Marketable Investments
Non-Marketable Investments

Non-marketable investments consist of debt and equity investments in privately-held companies, which are classified as other assets, noncurrent on the consolidated balance sheets. The Company classifies its non-marketable investments that meet the definition of a debt security as available-for-sale. The accounting policy for debt securities classified as available-for-sale is described above. The Company’s non-marketable equity investments are accounted for using either the equity method of accounting or as equity investments without readily determinable fair values under the measurement alternative.

The Company uses the equity method if it has the ability to exercise significant influence, but not control, over the operating and financial policies of the investee. For investments accounted for using the equity method, the Company’s proportionate share of its equity interest in the net income (loss) and other comprehensive income (loss) of these companies is recorded in the consolidated statements of operations within other income (expense), net. The carrying amount of the investment in equity interests is adjusted to reflect the Company’s interest in the investee’s net income or loss and any impairments and is classified in other assets, noncurrent on the consolidated balance sheets.

Equity investments for which the Company is not able to exercise significant influence over the investee and for which fair value is not readily determinable are accounted for using the measurement alternative. Such investments are carried at cost, less any impairments, and are adjusted for subsequent observable price changes obtained from orderly transactions for identical or similar investments issued by the same investee. This election is reassessed each reporting period to determine whether non-marketable equity securities have a readily
determinable fair value, in which case they would no longer be eligible for this election. Changes in the basis of the equity investment are recognized in other income (expense), net in the consolidated statements of operations. The Company reviews its non-marketable debt and equity investments for impairment at the end of each reporting period or whenever events or circumstances indicate that the carrying value may not be fully recoverable. Impairment indicators might include negative changes in industry and market conditions, financial performance, business prospects, and other relevant events and factors. Upon determining that an impairment exists, the Company recognizes as an impairment in other income (expense), net in the consolidated statements of operations the amount by which the carrying value exceeds the fair value of the investment.
Fair Value of Financial Instruments
Fair Value of Financial Instruments

The Company applies fair value accounting for all financial assets and liabilities that are recognized or disclosed at fair value in the financial statements. The authoritative guidance on fair value measurements establishes a hierarchical disclosure framework which prioritizes and ranks the level of market price observability used in measuring financial instruments at fair value. This hierarchy requires the Company to use observable market data when available and to minimize the use of unobservable inputs when determining fair value. Financial instruments with readily available quoted prices in active markets generally will have a higher degree of market price observability and a lesser degree of judgment used in measuring fair value.

Financial instruments measured and disclosed at fair value are classified and disclosed based on the observability of inputs used in the determination of fair value as follows:

Level 1: Observable inputs such as quoted prices in active markets.

Level 2: Observable inputs other than Level 1 prices, such as quoted prices in less active markets or model-derived valuations that are observable either directly or indirectly.

Level 3: Unobservable inputs in which there is little or no market data that are significant to the fair value of the assets or liabilities.

The carrying amount of the Company’s financial instruments, including cash equivalents, funds receivable and amounts held on behalf of customers, accounts payable, accrued liabilities, funds payable and amounts payable to customers, and unearned fees approximate their respective fair values because of their short maturities.
Level 2 Valuation Techniques

Financial instruments classified as Level 2 within the Company’s fair value hierarchy are valued on the basis of prices from an orderly transaction between market participants provided by reputable dealers or pricing services. Prices of these securities are obtained through independent, third-party pricing services and include market quotations that may include both observable and unobservable inputs. In determining the value of a particular investment, pricing services may use certain information with respect to transactions in such investments, quotations from dealers, pricing matrices and market transactions in comparable investments, and various relationships between investments. The Company’s foreign exchange derivative instruments are valued using pricing models that take into account the contract terms, as well as multiple inputs where applicable, such as interest rate yield curves and currency rates.

Level 3 Valuation Techniques

Financial instruments classified as Level 3 within the Company’s fair value hierarchy consist primarily of a derivative warrant liability relating to the warrants issued in conjunction with the second lien loan discussed in Note 9, Debt. Valuation techniques for the derivative warrant liability include the Black-Scholes option-pricing model with key assumptions such as stock price volatility, expected term, and risk-free interest rates.
Internal-Use Software
Internal-Use Software

The Company capitalizes certain costs in connection with obtaining or developing software for internal use. Amortization of such costs begins when the project is substantially complete and ready for its intended use. Capitalized software development costs are classified as
property and equipment, net on the consolidated balance sheets and are amortized using the straight-line method over the estimated useful life of the applicable software.
Property and Equipment
Property and Equipment

Property and equipment are stated at cost, less accumulated depreciation and amortization.

Depreciation and amortization on property and equipment is calculated using the straight-line method over the estimated useful lives indicated below:

Asset CategoryPeriod
Computer equipment5 years
Computer software and capitalized internal-use software
1.5 to 3 years
Office furniture and equipment5 years
Buildings
25 to 40 years
Leasehold improvements
Lesser of estimated useful life or remaining lease term
Costs of maintenance and repairs that do not improve or extend the useful lives of assets are expensed as incurred. Upon retirement or sale, the cost and related accumulated depreciation are removed from the consolidated balance sheet and the resulting gain or loss is reflected in the consolidated statements of operations.
Leases
Leases

The Company determines whether an arrangement is or contains a lease at inception. Operating lease right-of-use (“ROU”) assets and liabilities are recognized at commencement date based on the present value of lease payments over the lease term. Operating lease liabilities represent the present value of lease payments not yet paid. Operating lease ROU assets represent the Company’s right to use an underlying asset and are based upon the operating lease liabilities adjusted for prepayments or accrued lease payments, initial direct costs, lease incentives, and impairment of operating lease assets. As most of the Company’s leases do not provide an implicit rate, the Company uses its incremental borrowing rate based on the information available at commencement date in determining the present value of lease payments. The Company has real estate and equipment lease agreements that contain lease and non-lease components, which are accounted for as a single lease component.

The Company’s leases often contain rent escalations over the lease term. The Company recognizes expense for these leases on a straight-line basis over the lease term. Additionally, tenant incentives, primarily used to fund leasehold improvements, are recognized when earned and reduce the Company’s right-of-use asset related to the lease. These are amortized through the right-of-use asset as reductions of expense over the lease term.

The Company’s lease agreements may contain variable costs such as common area maintenance, operating expenses, or other costs. Variable lease costs are expensed as incurred on the consolidated statements of operations. The Company’s lease agreements generally do not contain any residual value guarantees or restrictive covenants.

For substantially all leases with an initial non-cancelable lease term of less than one year and no option to purchase, the Company elected not to recognize the lease on its Consolidated Balance Sheets and instead recognize rent payments on a straight-line basis over the lease term within operating expense on its Consolidated Statements of Operations.
Goodwill
Goodwill

Goodwill represents the excess of the purchase price over the fair value of net assets acquired in a business combination. The Company has one reporting unit. The Company tests goodwill for impairment at least annually in the fourth quarter, or whenever events or changes in circumstances indicate that goodwill might be impaired. The Company uses a two-step process to assess the realizability of goodwill. The first step, Step 0, is a qualitative assessment that analyzes current economic indicators associated with a particular reporting unit. For example, the Company analyzes changes in economic, market and industry conditions, business strategy, cost factors, and financial performance, among others, to determine if there would be a significant decline to the fair value of a reporting unit. A qualitative assessment also includes analyzing the excess fair value of a reporting unit over its carrying value from impairment assessments performed in previous years. If the qualitative assessment indicates a stable or improved fair value, no further testing is required.

If a qualitative assessment indicates that a significant decline to fair value of a reporting unit is more likely than not, or if a reporting unit’s fair value has historically been closer to its carrying value, the Company will proceed to Step 1 testing where the Company calculates the fair value of a reporting unit. If Step 1 indicates that the carrying value of a reporting unit is in excess of its fair value, the Company will record an impairment equal to the amount by which a reporting unit’s carrying value exceeds its fair value.
There were no impairment charges in any of the periods presented in the consolidated financial statements.
Intangible Assets Intangible Assets Intangible assets are amortized on a straight-line basis over the estimated useful lives ranging from one to ten years. The Company reviews intangible assets for impairment under the long-lived asset model described below. There were no impairment charges in any of the periods presented in the consolidated financial statements.
Impairment of Long-Lived Assets
Impairment of Long-Lived Assets

Long-lived assets that are held and used by the Company are reviewed for impairment when events or changes in circumstances indicate that the carrying amount of the asset may not be recoverable. Determination of recoverability of long-lived assets is based on an estimate of the undiscounted cash flows resulting from the use of the asset and its eventual disposition. If the carrying value of the long-lived asset is not recoverable on an undiscounted cash flow basis, impairment is recognized to the extent that the carrying value exceeds its fair value. Fair value is determined through various valuation techniques including discounted cash flow models, quoted market values, and third-party independent appraisals, as necessary.

Any impairments to ROU assets, leasehold improvements, or other assets as a result of a sublease, abandonment, or other similar factor are recorded as an operating expense. Similar to other long-lived assets, management tests ROU assets for impairment whenever events or changes in circumstances occur that could impact the recoverability of these assets. For ROU assets, such circumstances may include subleases that do not fully recover the costs of the associated leases or a decision to abandon the use of all or part of an asset. For the years ended December 31, 2020 and 2021, the Company recorded $35.8 million and $112.5 million, respectively, of long-lived asset impairment charges within restructuring charges in the consolidated statement of operations. For the year ended December 31, 2022, the Company recorded $91.4 million of long-lived asset impairment, of which $88.9 million was recorded within restructuring charges and the remainder within general and administrative, in the consolidated statements of operations.
Revenue Recognition
Revenue Recognition

The Company generates substantially all of its revenue from facilitating guest stays at accommodations offered by Hosts on the Company’s platform.

The Company considers both Hosts and guests to be its customers. The customers agree to the Company’s Terms of Service (“ToS”) to use the Company’s platform. Upon confirmation of a booking made by a guest, the Host agrees to provide the use of the property. At such time, the Host and guest also agree upon the applicable booking value as well as Host fees and guest fees (collectively “service fees”). The Company charges service fees in exchange for certain activities, including the use of the Company’s platform, customer support, and payment processing activities. These activities are not distinct from each other and are not separate performance obligations. As a result, the Company’s single performance obligation is to facilitate a stay, which occurs upon the completion of a check-in event (a “check-in”). The Company recognizes revenue upon check-in as its performance obligation is satisfied upon check-in and the Company has the right to receive payment for the fulfillment of the performance obligation.

The Company charges service fees to its customers as a percentage of the value of the booking, excluding taxes. The Company collects both the booking value from the guest on behalf of the Host and the applicable guest fees owed to the Company using the guest’s pre-authorized payment method. After check-in, the Company disburses the booking value to the Host, less the fees due from the Host to the Company. The Company’s ToS stipulates that a Host may cancel a confirmed booking at any time up to check-in. Therefore, the Company determined that for accounting purposes, each booking is a separate contract with the Host and guest, and the contracts are not enforceable until check-in. Since an enforceable contract for accounting purposes is not established until check-in, there were no partially satisfied or unsatisfied performance obligations as of December 31, 2021 and 2022. The service fees collected from customers prior to check-in are recorded as unearned fees. Unearned fees are not considered contract balances because they are subject to refund in the event of a cancellation.

Guest stays of at least 28 nights are considered long-term stays. The Company charges service fees to facilitate long-term stays on a monthly basis. Such stays are generally cancelable with a 30 days advance notice for no significant penalty. Accordingly, long-term stays are treated as month-to-month contracts; each month is a separate contract with the Host and guest, and the contracts are not enforceable until check-in for the initial month as well as subsequent monthly extensions. The Company’s performance obligation for long-term stays is the same as that for short-term stays. The Company recognizes revenue for the first month upon check-in, similar to short-term stays, and recognizes revenue for any subsequent months upon each month’s anniversary from initial check-in date.

The Company evaluates the presentation of revenue on a gross versus net basis based on whether or not it is the principal (gross) or the agent (net) in the transaction. As part of the evaluation, the Company considers whether it controls the right to use the property before control is transferred. Indicators of control that the Company considers include whether the Company is primarily responsible for fulfilling the promise associated with the rental of the property, whether it has inventory risk associated with the property, and whether it has discretion in establishing the prices for the property. The Company determined that it does not control the right to use the properties either before or after completion of its service. Accordingly, the Company has concluded that it is acting in an agent capacity and revenue is presented net reflecting the service fees received from Hosts and guests to facilitate a stay.

The Company has elected to recognize the incremental costs of obtaining a contract, including the costs of certain referrer fees, as an expense when incurred as the amortization period of the asset that the Company otherwise would have recognized is one year or less. The Company has no significant financing components in its contracts with customers.
The Company has elected to exclude from revenue, taxes assessed by a governmental authority that are both imposed on and are concurrent with specific revenue producing transactions. Accordingly, such amounts are not included as a component of revenue or cost of revenue.
Incentive Programs

The Company encourages the use of its platform and attracts new customers through its incentive programs. Under the Company’s referral program, the referring party (the “referrer”) earns a coupon when the new guest or Host (the “referee”) completes their first stay on the Company’s platform. Incentives earned by customers for referring new customers are paid in exchange for a distinct service and are accounted for as customer acquisition costs. The Company records the incentive as a liability at the time the incentive is earned by the referrer with the corresponding charge recorded to sales and marketing expense in the same way the Company accounts for other marketing services from third-party vendors. Any amounts paid in excess of the fair value of the referral service received are recorded as a reduction of revenue. Fair value of the service is established using amounts paid to vendors for similar services. Customer referral coupon credits generally expire within one year from issuance and the Company estimates the redemption rates using its historical experience. As of December 31, 2021 and 2022, the referral coupon liability was not material.

Through marketing promotions, the Company issues customer coupon credits to encourage the use of its platform. After a customer redeems such incentives, the Company records a reduction to revenue at the date it records the corresponding revenue transaction, as the Company does not receive a distinct good or service in exchange for the customer incentive payment.

Refunds

In certain instances, the Company issues refunds to customers as part of its customer support activities in the form of cash or credits to be applied toward a future booking. There is no legal obligation to issue such refunds to Hosts or guests on behalf of its customers. The Company accounts for refunds, net of any recoveries, as variable consideration, which results in a reduction to revenue. The Company reduces the transaction price by the estimated amount of the payments by applying the most likely outcome method based on known facts and circumstances and historical experience. The estimate for variable consideration was not material as of December 31, 2021 and 2022.
The Company evaluates whether the cumulative amount of payments made to customers that are not in exchange for a distinct good or service received from customers exceeds the cumulative revenue earned since inception of the customer relationships. Any cumulative payments in excess of cumulative revenue are presented within operations and support or sales and marketing on the consolidated statements of operations based on the nature of the payments made to customers.
Payments to Customers Payments to Customers The Company makes payments to customers as part of its referral programs and marketing promotions, collectively referred to as the Company’s incentive programs, and refund activities. The payments are generally in the form of coupon credits to be applied toward future bookings or as cash refunds.
Funds Receivable and Funds Payable
Funds Receivable and Funds Payable

Funds receivable and amounts held on behalf of customers represent cash received or in-transit from guests via third-party credit card processors and other payment methods, which the Company remits for payment to the Hosts following check-in. This cash and related receivable represent the total amount due to Hosts, and as such, a liability for the same amount is recorded to funds payable and amounts payable to customers.

The Company records guest payments, net of service fees, as funds receivable and amounts held on behalf of customers with a corresponding amount in funds payable and amounts payable to customers when cash is received in advance of check-in. Host and guest fees are recorded as cash with a corresponding amount in unearned fees. For certain bookings, a guest may opt to pay a percentage of the total amount due when the booking is confirmed, with the remaining balance due prior to the stay occurring (the “Pay Less Upfront Program”). Under the Pay Less Upfront Program, when the Company receives the first installment payment from the guest upon confirmation of the booking, the Company records the first installment payment as funds receivable and amounts held on behalf of customers with a corresponding amount in funds payable and amounts payable to customers, net of the Host and guest fees. The full value of the service fees is recorded as cash and cash equivalents and unearned fees upon receipt of the first installment payment to represent what the Company expects to be recognized as revenue if the underlying booking is not canceled. Upon receipt of the second installment, such payment amounts are also recorded as funds receivable and amounts held on behalf of customers with a corresponding amount in funds payable and amounts payable to customers.
Following check-in, the Company remits funds due to Hosts and recognizes unearned fees as revenue as its performance obligation is satisfied.
Bad Debt
Bad Debt

The Company generally collects funds related to bookings from guests on behalf of Hosts prior to check-in. However, in limited circumstances the Company disburses funds to a Host or a guest on behalf of a counterparty guest or Host prior to collecting such amounts from the counterparty. Such uncollected balances generally arise from the timing of payments and collections related to a dispute resolution between the guest and Host or certain alterations to stays and are included in prepaids and other current assets on the consolidated balance sheets. The Company records a customer receivable allowance for credit losses for funds that may never be collected. The Company estimated its exposure to balances deemed to be uncollectible based on factors including known facts and circumstances, historical experience, reasonable and supportable forecasts of economic conditions, and the age of the uncollected
balances. The Company writes off the asset when it is determined to be uncollectible. Bad debt expense was $107.7 million, $27.3 million, and $49.0 million for the years ended December 31, 2020, 2021, and 2022, respectively.
Cost of Revenue Cost of RevenueCost of revenue primarily consists of payment processing charges, including merchant fees and chargebacks, costs associated with third-party data centers used to host the Company’s platform, and amortization of internally developed software and acquired technology.
Operations and Support Operations and Support Operations and support costs primarily consist of personnel-related expenses and third-party service provider fees associated with customer support provided via phone, email, and chat to Hosts and guests, customer relations costs, which include refunds and credits related to customer satisfaction and expenses associated with the Company’s Host protection programs, and allocated costs for facilities and information technology. These costs are expensed as incurred.
Product Development Product Development Product development costs primarily consist of personnel-related expenses and third-party service provider fees incurred in connection with the development of the Company’s platform and new products as well as the improvement of existing products, and allocated costs for facilities and information technology. These costs are expensed as incurred.
Sales and Marketing Sales and Marketing Sales and marketing costs primarily consist of performance and brand marketing, personnel-related expenses, including those related to field operations, portions of referral incentives and coupons, policy and communications, and allocated costs for facilities and information technology. These costs are expensed as incurred. Advertising expenses were $176.0 million, $542.1 million, and $786.1 million for the years ended December 31, 2020, 2021, and 2022, respectively.
General and Administrative General and Administrative General and administrative costs primarily consist of personnel-related expenses for executive management and administrative functions, including finance and accounting, legal, and human resources, as well as general corporate and director and officer insurance. General and administrative costs also include certain professional services fees, allocated costs for facilities and information technology expenses, indirect taxes including lodging taxes where the Company may be held jointly liable with Hosts for collecting and remitting such taxes, and bad debt expense. These costs are expensed as incurred.
Restructuring Charges Restructuring Charges Costs and liabilities associated with management-approved restructuring activities are recognized when they are incurred. One-time employee termination costs are recognized at the time of communication to employees, unless future service is required, in which case the costs are recognized ratably over the future service period. Ongoing employee termination benefits are recognized as a liability when it is probable that a liability exists and the amount is reasonably estimable. Restructuring charges are recognized as an operating expense within the consolidated statements of operations and related liabilities are recorded within accrued expenses and other liabilities on the consolidated balance sheets. The Company periodically evaluates and, if necessary, adjusts its estimates based on currently available information.
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 law in effect for the years in which the temporary differences are expected to be recovered or settled. The effect of a change in tax rates on deferred tax assets and liabilities is recognized 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. In determining the need for a valuation allowance, the Company weighs both positive and negative evidence in the various jurisdictions in which it operates to determine whether it is more likely than not that its deferred tax assets are recoverable. The Company regularly assesses all available evidence, including cumulative historic losses, forecasted earnings, if carryback is permitted under the law, carryforward periods, and prudent and feasible tax planning strategies.
The Company evaluates and accounts for uncertain tax positions using a two-step approach. Recognition, step one, occurs when the Company concludes that a tax position, based solely on its technical merits, is more-likely-than-not to be sustained upon examination. Measurement, step two, determines the largest amount of benefit that is greater than 50% likely to be realized upon ultimate settlement with a taxing authority that has full knowledge of all relevant information. Derecognition of a tax position that was previously recognized would occur when the Company subsequently determines that a tax position no longer meets the more-likely-than-not threshold of being sustained.
Foreign Currency Foreign Currency The Company’s reporting currency is the U.S. dollar. The Company determines the functional currency for each of its foreign subsidiaries by reviewing their operations and currencies used in their primary economic environments. Assets and liabilities for foreign subsidiaries with functional currency other than U.S. dollar are translated into U.S. dollars at the rate of exchange existing at the balance sheet date. Statements of operations amounts are translated at average exchange rates for the period. Translation gains and losses are recorded in accumulated other comprehensive income (loss) as a component of stockholders’ equity (deficit). No material amounts were reclassified from accumulated other comprehensive income (loss) for the years ended December 31, 2020, 2021, and 2022. Remeasurement gains and losses are included in other income (expense), net in the consolidated statements of operations. Monetary assets and liabilities are remeasured at the exchange rate on the balance sheet date and nonmonetary assets and liabilities are measured at historical exchange rates. As of December 31, 2021, and 2022, the Company had a cumulative translation gain of $2.8 million and $12.9 million, respectively. Total net realized and unrealized gains (losses) on foreign currency transactions and balances totaled $31.5 million, $(5.1) million, and $29.5 million for the years ended December 31, 2020, 2021, and 2022, respectively.
Derivatives Instruments Derivative Instruments The Company enters into financial derivative instruments, consisting of foreign currency contracts to mitigate its exposure to the impact of movements in currency exchange rates on its transactional balances denominated in currencies other than the functional currency. The Company does not use derivatives for trading or speculative purposes. Derivative instruments are recognized in the consolidated balance sheets at fair value. Gains and losses resulting from changes in the fair value of derivative instruments that are not designated as hedging instruments for accounting purposes are recognized in other income (expense), net in the consolidated statements of operations in the period that the changes occur.
Share Repurchase Share RepurchaseShare repurchases may be made through a variety of methods, which may include open market purchases, privately negotiated transactions, block trades, or accelerated share repurchase transactions, or by any combination of such methods. Share repurchases are recorded at settlement date. When shares are retired, the value of repurchased shares is deducted from stockholders’ equity through capital with the excess over par value recorded to accumulated deficit.
Stock-Based Compensation
Stock-Based Compensation

Stock-based compensation expense primarily relates to restricted stock units (“RSUs”), restricted stock awards (“RSAs”), stock options, and the Employee Stock Purchase Plan (“ESPP”). RSUs and RSAs are measured at the fair market value of the underlying stock at the grant date and the expense is recognized over the requisite service period. The fair value of stock options and ESPP shares are estimated on the date of grant using the Black-Scholes option pricing model to determine the fair value of stock options on the date of grant. The Company estimates the expected term of stock options granted based on the simplified method and estimates the volatility of its common stock on the date of grant based on the average historical stock price volatility of comparable publicly-traded companies. The simplified method calculates the expected term as the mid-point between the weighted-average time to vesting and the contractual maturity. The simplified method is used as the Company does not have sufficient historical data regarding stock option exercises. The contractual term of the Company’s stock options is ten years. The Company accounts for forfeitures as they occur. The benefits of tax deductions in excess of recognized compensation costs are recognized in the income statement as a discrete item when an option exercise or a vesting and release of shares occurs.
Prior to the Company’s IPO, the absence of an active market for the Company’s common stock required the Company’s board of directors, which includes members who possess extensive business, finance, and venture capital experience, to determine the fair value of its common stock for purposes of granting stock options and RSUs. The Company obtained contemporaneous third-party valuations to assist the board of directors in determining the fair value of the Company’s common stock. All stock options granted were exercisable at a price per share not less than the fair value of the shares of the Company’s common stock as determined by the board of directors (the “Fair Value”) underlying those stock options on their respective grant dates. Historically, substantially all of the Company’s RSUs vested upon the satisfaction of both a service-based vesting condition and liquidity-event performance-based vesting condition. The liquidity-event performance-based vesting condition for RSUs was satisfied upon the effectiveness of the Company’s IPO Registration Statement on December 9, 2020. Upon the Company’s IPO in December 2020, the Company recorded a cumulative one-time stock-based compensation expense of $2.8 billion, determined using the grant-date fair values. The remaining unrecognized stock-based compensation expense related to these RSUs is recorded over their remaining requisite service periods.
Net Income (Loss) Per Share Attributable to Common Stockholders
Net Income (Loss) Per Share Attributable to Common Stockholders

The Company applies the two-class method when computing net income (loss) per share attributable to common stockholders when shares are issued that meet the definition of a participating security. The two-class method determines net income (loss) per share for each class of common stock and participating securities according to dividends declared or accumulated and participation rights in undistributed earnings. The two-class method requires earnings available to common stockholders for the period to be allocated between common stock and participating securities based upon their respective rights to receive dividends as if all earnings for the period had been distributed. The Company’s previously outstanding redeemable convertible preferred stock was a participating security as the holders of such shares participated in dividends but did not contractually participate in the Company’s losses.
Basic net income (loss) per share is computed by dividing the net income (loss) by the weighted-average number of shares of common stock outstanding during the period, less weighted-average shares subject to repurchase. The diluted net income (loss) per share is computed by giving effect to all potentially dilutive securities outstanding for the period. For periods in which the Company reports net losses, diluted net loss per share attributable to common stockholders is the same as basic net loss per share attributable to common stockholders, because potentially dilutive common shares are anti-dilutive.
Comprehensive Income (Loss) Comprehensive Income (Loss) Comprehensive income (loss) consists of net income (loss) and other comprehensive income (loss). Other comprehensive income (loss) reflects gains and losses that are recorded as a component of stockholders’ equity and are excluded from net loss. Other comprehensive income (loss) consists of foreign currency translation adjustments related to consolidation of foreign entities and unrealized gains (losses) on securities classified as available-for-sale.
Contingencies
Contingencies

The Company is subject to legal proceedings and claims that arise in the ordinary course of business. The Company accrues for losses associated with legal claims when such losses are probable and can be reasonably estimated. These accruals are adjusted as additional information becomes available or circumstances change.
Recently Adopted Accounting Standards and Recently Issued Accounting Standards Not Yet Adopted
Recently Adopted Accounting Standards

In May 2021, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2021-04, Earnings Per Share (Topic 260), Debt - Modifications and Extinguishments (Topic 470-50), Compensation - Stock Compensation (Topic 718), and Derivatives and Hedging - Contracts in Entity's Own Equity (Subtopic 815-40), which clarifies existing guidance for freestanding written call options which are equity classified and remain so after they are modified or exchanged in order to reduce diversity in practice. The standard is effective for public entities in fiscal years beginning after December 15, 2021, including interim periods within those fiscal years. The Company adopted the standard during the first quarter of 2022, which did not have an impact on the Company's consolidated financial statements.

Recently Issued Accounting Standards Not Yet Adopted

In March 2022, the FASB issued ASU 2022-01, Derivatives and Hedging (Topic 815), which clarifies the guidance on fair value hedge accounting of interest rate risk for portfolios of financial assets. The standard is effective for public entities in fiscal years beginning after December 15, 2022, including interim periods within those fiscal years. Early adoption is permitted on any date on or after the issuance of ASU 2017-12. The Company does not expect the adoption of the new guidance will have a material impact on the Company’s consolidated financial statements.

In June 2022, the FASB issued ASU 2022-03, Fair Value Measurement (Topic 820): Fair Value Measurement of Equity Securities Subject to Contractual Sale Restrictions, which clarifies the guidance of equity securities that are subject to a contractual sale restriction as well as includes specific disclosure requirements for such equity securities. The standard is effective for public entities in fiscal years beginning
after December 15, 2023, including interim periods within those fiscal years and will be applied prospectively. The Company does not expect the adoption of the new guidance will have a material impact on the Company’s consolidated financial statements.

There are other new accounting pronouncements issued by the FASB that the Company has adopted or will adopt, as applicable, and the Company does not believe any of these accounting pronouncements have had, or will have, a material impact on its consolidated financial statements or disclosures.
Prior Period Reclassifications
Prior Period Reclassifications

Certain immaterial amounts in prior periods have been reclassified to conform with current period presentation.
Revision of Previously Issued Financial Statements Revision of Previously Issued Financial StatementsThe consolidated statements of cash flows for years ended December 31, 2020, and 2021 has been revised to correct for errors identified by management during the preparation of the financial statements for the three months ended March 31, 2022. The errors overstated cash flows from operating activities by $111.0 million and understated the cash flows from financing activities by $111.0 million for the year ended December 31, 2020, and understated cash flows from operating activities by $123.0 million and overstated the cash flows from financing activities by $123.0 million for the year ended December 31, 2021. Management has determined that these errors did not result in the previously issued financial statements being materially misstated. These errors primarily related to the timing of tax payments from the net settlement of equity awards at the initial public offering in December 2020. In particular, in 2020, the Company reported $1.7 billion of cash used in financing activities to cover taxes paid related to the net share settlement of its equity awards that vested upon the initial public offering. However, approximately $123.0 million of this amount was actually remitted to taxing authorities in foreign jurisdictions during 2021. This had no impact on the Company’s consolidated financial statements outside of the presentation in the consolidated statements of cash flow and did not affect the consolidated balance sheets, consolidated statements of operations, or consolidated statements of stockholders’ equity.
v3.22.4
Summary of Significant Accounting Policies (Tables)
12 Months Ended
Dec. 31, 2022
Accounting Policies [Abstract]  
Schedule of Depreciation and Amortization on Property and Equipment
Depreciation and amortization on property and equipment is calculated using the straight-line method over the estimated useful lives indicated below:

Asset CategoryPeriod
Computer equipment5 years
Computer software and capitalized internal-use software
1.5 to 3 years
Office furniture and equipment5 years
Buildings
25 to 40 years
Leasehold improvements
Lesser of estimated useful life or remaining lease term
Property and equipment, net, consisted of the following (in millions):

December 31,
20212022
Computer software and capitalized internal-use software$175 $164 
Leasehold improvements214 152 
Computer equipment57 32 
Office furniture and equipment43 23 
Buildings and land17 17 
Construction in progress30 45 
Total536 433 
Less: Accumulated depreciation and amortization(379)(312)
Total property and equipment, net$157 $121 
v3.22.4
Supplemental Financial Statement Information (Tables)
12 Months Ended
Dec. 31, 2022
Organization, Consolidation and Presentation of Financial Statements [Abstract]  
Schedule of Cash and Cash Equivalents
The following table reconciles cash, cash equivalents, and restricted cash reported on the Company’s consolidated balance sheets to the total amount presented in the consolidated statements of cash flows (in millions):
December 31,
20212022
Cash and cash equivalents$6,067 $7,378 
Cash and cash equivalents included in funds receivable and amounts held on behalf of customers3,645 4,708 
Restricted cash included in prepaids and other current assets
15 17 
Total cash, cash equivalents, and restricted cash presented in the consolidated statements of cash flows$9,727 $12,103 
The following tables summarize the amortized cost, gross unrealized gains and losses, and fair value of the Company’s available-for-sale debt securities aggregated by investment category (in millions):

December 31, 2021Classification as of December 31, 2021
Amortized
Cost
Gross
Unrealized
Gains
Gross
Unrealized
Losses
Total
Estimated
Fair Value
Cash and
Cash
Equivalents
Marketable
Securities
Other
Assets,
Noncurrent
Certificates of deposit$395 $— $— $395 $31 $364 $— 
Government bonds(1)
— — — — 
Commercial paper1,157 — — 1,157 164 993 — 
Corporate debt securities918 — (3)915 42 863 10 
Mortgage-backed and asset-backed securities34 — — 34 — 34 — 
Total
$2,505 $— $(3)$2,502 $237 $2,255 $10 
(1)Includes U.S. government and government agency debt securities

December 31, 2022Classification as of December 31, 2022

Amortized
Cost
Gross
Unrealized
Gains
Gross
Unrealized
Losses
Total
Estimated
Fair Value
Cash and
Cash
Equivalents
Marketable
Securities
Other
Assets,
Noncurrent
Certificates of deposit$599 $— $— $599 $26 $573 $— 
Government bonds(1)
115 — — 115 32 83 — 
Commercial paper901 — — 901 327 574 — 
Corporate debt securities1,046 (16)1,031 68 959 
Mortgage-backed and asset-backed securities37 — (3)34 — 34 — 
Total
$2,698 $$(19)$2,680 $453 $2,223 $
(1)Includes U.S. government and government agency debt securities
Schedule of Restricted Cash
The following table reconciles cash, cash equivalents, and restricted cash reported on the Company’s consolidated balance sheets to the total amount presented in the consolidated statements of cash flows (in millions):
December 31,
20212022
Cash and cash equivalents$6,067 $7,378 
Cash and cash equivalents included in funds receivable and amounts held on behalf of customers3,645 4,708 
Restricted cash included in prepaids and other current assets
15 17 
Total cash, cash equivalents, and restricted cash presented in the consolidated statements of cash flows$9,727 $12,103 
Accrued Expenses And Other Current Liabilities
Accrued expenses and other current liabilities consisted of the following (in millions):

December 31,
20212022
Indirect taxes payable$310 $418 
Compensation and employee benefits416 380 
Indirect tax reserves183 206 
Gift card liability98 141 
Other552 672 
Total accrued expenses and other current liabilities$1,559 $1,817 
Payments Made To Customers
The following table summarizes total payments made to customers (in millions):

Year Ended December 31,
202020212022
Reductions to revenue
$384 $156 $284 
Charges to operations and support
83 69 88 
Charges to sales and marketing expense
57 47 60 
Total payments made to customers
$524 $272 $432 
v3.22.4
Investments (Tables)
12 Months Ended
Dec. 31, 2022
Investments, Debt and Equity Securities [Abstract]  
Schedule of Cash and Cash Equivalents
The following table reconciles cash, cash equivalents, and restricted cash reported on the Company’s consolidated balance sheets to the total amount presented in the consolidated statements of cash flows (in millions):
December 31,
20212022
Cash and cash equivalents$6,067 $7,378 
Cash and cash equivalents included in funds receivable and amounts held on behalf of customers3,645 4,708 
Restricted cash included in prepaids and other current assets
15 17 
Total cash, cash equivalents, and restricted cash presented in the consolidated statements of cash flows$9,727 $12,103 
The following tables summarize the amortized cost, gross unrealized gains and losses, and fair value of the Company’s available-for-sale debt securities aggregated by investment category (in millions):

December 31, 2021Classification as of December 31, 2021
Amortized
Cost
Gross
Unrealized
Gains
Gross
Unrealized
Losses
Total
Estimated
Fair Value
Cash and
Cash
Equivalents
Marketable
Securities
Other
Assets,
Noncurrent
Certificates of deposit$395 $— $— $395 $31 $364 $— 
Government bonds(1)
— — — — 
Commercial paper1,157 — — 1,157 164 993 — 
Corporate debt securities918 — (3)915 42 863 10 
Mortgage-backed and asset-backed securities34 — — 34 — 34 — 
Total
$2,505 $— $(3)$2,502 $237 $2,255 $10 
(1)Includes U.S. government and government agency debt securities

December 31, 2022Classification as of December 31, 2022

Amortized
Cost
Gross
Unrealized
Gains
Gross
Unrealized
Losses
Total
Estimated
Fair Value
Cash and
Cash
Equivalents
Marketable
Securities
Other
Assets,
Noncurrent
Certificates of deposit$599 $— $— $599 $26 $573 $— 
Government bonds(1)
115 — — 115 32 83 — 
Commercial paper901 — — 901 327 574 — 
Corporate debt securities1,046 (16)1,031 68 959 
Mortgage-backed and asset-backed securities37 — (3)34 — 34 — 
Total
$2,698 $$(19)$2,680 $453 $2,223 $
(1)Includes U.S. government and government agency debt securities
Debt Securities, Available-for-sale
The following tables summarize the amortized cost, gross unrealized gains and losses, and fair value of the Company’s available-for-sale debt securities aggregated by investment category (in millions):

December 31, 2021Classification as of December 31, 2021
Amortized
Cost
Gross
Unrealized
Gains
Gross
Unrealized
Losses
Total
Estimated
Fair Value
Cash and
Cash
Equivalents
Marketable
Securities
Other
Assets,
Noncurrent
Certificates of deposit$395 $— $— $395 $31 $364 $— 
Government bonds(1)
— — — — 
Commercial paper1,157 — — 1,157 164 993 — 
Corporate debt securities918 — (3)915 42 863 10 
Mortgage-backed and asset-backed securities34 — — 34 — 34 — 
Total
$2,505 $— $(3)$2,502 $237 $2,255 $10 
(1)Includes U.S. government and government agency debt securities

December 31, 2022Classification as of December 31, 2022

Amortized
Cost
Gross
Unrealized
Gains
Gross
Unrealized
Losses
Total
Estimated
Fair Value
Cash and
Cash
Equivalents
Marketable
Securities
Other
Assets,
Noncurrent
Certificates of deposit$599 $— $— $599 $26 $573 $— 
Government bonds(1)
115 — — 115 32 83 — 
Commercial paper901 — — 901 327 574 — 
Corporate debt securities1,046 (16)1,031 68 959 
Mortgage-backed and asset-backed securities37 — (3)34 — 34 — 
Total
$2,698 $$(19)$2,680 $453 $2,223 $
(1)Includes U.S. government and government agency debt securities
Contractual Maturities of the Available-for-Sale Debt Securities
The following table summarizes the contractual maturities of the Company’s available-for-sale debt securities (in millions):
December 31, 2022
Amortized
Cost
Estimated
Fair Value
Due within one year$2,238 $2,236 
Due in one year to five years435 422 
Due within five to ten years22 19 
Due beyond ten years
Total$2,698 $2,680 
v3.22.4
Fair Value Measurements and Financial Instruments (Tables)
12 Months Ended
Dec. 31, 2022
Fair Value Disclosures [Abstract]  
Schedule of Fair Value Hierarchy for Financial Assets and Liabilities Measured at Fair Value
The following table summarizes the Company’s financial assets and liabilities measured at fair value on a recurring basis (in millions):

December 31, 2021
Level 1Level 2Level 3Total
Assets
Cash equivalents:
Money market funds$1,923 $— $— $1,923 
Certificates of deposit31 — — 31 
Commercial paper— 164 — 164 
Corporate debt securities— 42 — 42 
1,954 206 — 2,160 
Marketable securities:
Certificates of deposit364 — — 364 
Government bonds(1)
— — 
Commercial paper— 993 — 993 
Corporate debt securities— 863 — 863 
Mortgage-backed and asset-backed securities— 34 — 34 
364 1,891 — 2,255 
Funds receivable and amounts held on behalf of customers:
Money market funds466 — — 466 
Prepaids and other current assets:
Foreign exchange derivative assets— 26 — 26 
Other assets, noncurrent:
Corporate debt securities— — 10 10 
Total assets at fair value$2,784 $2,123 $10 $4,917 
Liabilities
Accrued expenses and other current liabilities:
Foreign exchange derivative liabilities$— $10 $— $10 
Total liabilities at fair value$— $10 $— $10 

(1)Includes U.S. government and government agency debt securities
December 31, 2022
Level 1Level 2Level 3Total
Assets
Cash equivalents:
Money market funds$2,326 $— $— $2,326 
Certificates of deposit26 — — 26 
Government bonds(1)
— 32 — 32 
Commercial paper— 327 — 327 
Corporate debt securities— 68 — 68 
2,352 427 — 2,779 
Marketable securities:
Certificates of deposit573 — — 573 
Government bonds(1)
— 83 — 83 
Commercial paper— 574 — 574 
Corporate debt securities— 959 — 959 
Mortgage-backed and asset-backed securities— 34 — 34 
Marketable equity securities— — 
574 1,650 — 2,224 
Funds receivable and amounts held on behalf of customers:
Money market funds501 — — 501 
Prepaids and other current assets:
Foreign exchange derivative assets— 14 — 14 
Other assets, noncurrent:
Corporate debt securities— — 
Total assets at fair value$3,427 $2,091 $$5,522 
Liabilities
Accrued expenses and other current liabilities:
Foreign exchange derivative liabilities$— $31 $— $31 
Total liabilities at fair value$— $31 $— $31 

(1)Includes U.S. government and government agency debt securities
Schedule of Fair Value Assets Measured on Recurring Basis, Rollforward
The following table presents additional information about investments that are measured at fair value for which the Company has utilized Level 3 inputs to determine fair value (in millions):

December 31,
20212022
Derivative
Warrant
Liability
Other
Assets,
Noncurrent
Other
Assets,
Noncurrent
Balance, beginning of year$985 $11 $10 
Reclassifications to equity(1,277)— — 
Total realized and unrealized gains (losses):
Included in earnings292 — — 
Included in other comprehensive income (loss)— (1)(6)
Balance, end of year$— $10 $
Changes in unrealized gains or losses included in other comprehensive income (loss) related to investments held at the reporting date$— $(1)$(6)
Schedule of Fair Value Liabilities Measured on Recurring Basis, Rollforward
The following table presents additional information about investments that are measured at fair value for which the Company has utilized Level 3 inputs to determine fair value (in millions):

December 31,
20212022
Derivative
Warrant
Liability
Other
Assets,
Noncurrent
Other
Assets,
Noncurrent
Balance, beginning of year$985 $11 $10 
Reclassifications to equity(1,277)— — 
Total realized and unrealized gains (losses):
Included in earnings292 — — 
Included in other comprehensive income (loss)— (1)(6)
Balance, end of year$— $10 $
Changes in unrealized gains or losses included in other comprehensive income (loss) related to investments held at the reporting date$— $(1)$(6)
v3.22.4
Intangible Assets and Goodwill (Tables)
12 Months Ended
Dec. 31, 2022
Goodwill and Intangible Assets Disclosure [Abstract]  
Schedule of Finite-Lived Intangible Assets
Identifiable intangible assets consisted of the following (in millions):

December 31, 2021December 31, 2022
Gross
Carrying
Amount (1)
Accumulated
Amortization (1)
Net
Carrying
Value
Gross
Carrying
Amount (1)
Accumulated
Amortization (1)
Net
Carrying
Value
Listing relationships$43 $(16)$27 $35 $(13)$22 
Trade names33 (18)15 33 (25)
Developed technology23 (21)— — — 
Customer contacts(4)— — — — 
Other10 (2)(5)
Total intangible assets$113 $(61)$52 $77 $(43)$34 
(1)Excludes write off of intangible assets that have been fully amortized.
Schedule of Estimated Amortization Expense for Intangible Assets
Estimated future amortization expense for intangible assets as of December 31, 2022 was as follows (in millions):

Year Ending December 31,Amount
2023$11 
2024
2025
2026
2027
Thereafter
Total future amortization expense$34 
Schedule of Goodwill
The changes in the carrying amount of goodwill for the years ended December 31, 2021 and 2022 were as follows (in millions):

Amount
Balance as of December 31, 2020$656 
Foreign currency translation adjustments(3)
Balance as of December 31, 2021653 
Foreign currency translation adjustments(3)
Balance as of December 31, 2022$650 
v3.22.4
Property and Equipment, Net (Tables)
12 Months Ended
Dec. 31, 2022
Property, Plant and Equipment [Abstract]  
Schedule of Depreciation and Amortization on Property and Equipment
Depreciation and amortization on property and equipment is calculated using the straight-line method over the estimated useful lives indicated below:

Asset CategoryPeriod
Computer equipment5 years
Computer software and capitalized internal-use software
1.5 to 3 years
Office furniture and equipment5 years
Buildings
25 to 40 years
Leasehold improvements
Lesser of estimated useful life or remaining lease term
Property and equipment, net, consisted of the following (in millions):

December 31,
20212022
Computer software and capitalized internal-use software$175 $164 
Leasehold improvements214 152 
Computer equipment57 32 
Office furniture and equipment43 23 
Buildings and land17 17 
Construction in progress30 45 
Total536 433 
Less: Accumulated depreciation and amortization(379)(312)
Total property and equipment, net$157 $121 
v3.22.4
Leases (Tables)
12 Months Ended
Dec. 31, 2022
Leases [Abstract]  
Lease, Cost
The components of lease cost were as follows (in millions):

Year Ended December 31,
202020212022
Operating lease cost(1)
$91 $83 $77 
Short-term lease cost(1)
Variable lease cost(1)
12 14 17 
Lease cost, net(2)
$104 $100 $96 
(1)Classified within operations and support, product development, sales and marketing, and general and administrative expenses in the consolidated statements of operations.
(2)Lease costs do not include lease impairments due to restructuring. Refer to Note 17, Restructuring, for additional information.

Supplemental disclosures of cash flow information related to operating lease liabilities were as follows (in millions):

Year Ended December 31,
202020212022
Cash paid for operating leases$63 $92 $102 
Net impact of non-cash changes to right-of-use assets related to modifications and reassessments of operating leases103 18 (5)
Lease term and discount rate were as follows:
December 31,
20212022
Weighted-average remaining lease term (years)7.26.0
Weighted-average discount rate6.8 %7.0 %
Maturities of Lease Liabilities
Maturities of lease liabilities (excluding short-term leases) were as follows as of December 31, 2022 (in millions):

Year Ending December 31,Amount
2023$81 
202453 
202587 
202679 
202731 
Thereafter128 
Total lease payments459 
Less: Imputed interest(105)
Present value of lease liabilities354 
Less: Current portion of lease liabilities(59)
Total long-term lease liabilities$295 
v3.22.4
Debt (Tables)
12 Months Ended
Dec. 31, 2022
Debt Disclosure [Abstract]  
Summary of Outstanding Debt
The following table summarizes the Company’s outstanding debt (in millions, except percentages)):

As of
December 31, 2021
Effective
Interest Rate
As of
December 31, 2022
Effective
Interest Rate
Convertible senior notes due March 2026$2,000 0.2 %$2,000 0.2 %
Less: Unamortized debt discount and debt issuance costs(17)(13)
Total long-term debt$1,983 $1,987 
v3.22.4
Stock-Based Compensation (Tables)
12 Months Ended
Dec. 31, 2022
Share-Based Payment Arrangement [Abstract]  
Summary of Stock-based Compensation Expense
The following table summarizes total stock-based compensation expense (in millions):

Year Ended December 31,
202020212022
Operations and support$144 $49 $63 
Product development1,880 545 548 
Sales and marketing435 100 114 
General and administrative544 205 205 
Stock-based compensation expense$3,003 $899 $930 
Schedule of Fair Value Assumptions of Options Granted
The fair value of each stock option award is estimated on the date of grant using the Black-Scholes option-pricing model using the range of assumptions in the following table:

Year Ended December 31,
202020212022
Expected term (years)
5.1 - 8.0
 8.0
6.1
Risk-free interest rate
0.5% - 1.5%
1.1% - 1.5%
0.3% - 2.2%
Expected volatility
39.1% - 43.6%
44.2% - 44.9%
48.6% - 58.4%
Expected dividend yield— — — 
Summary of Option Activity
A summary of stock option and RSU activity under the Plans was as follows (in millions, except per share amounts):

Outstanding
Stock Options
Outstanding
Restricted Stock Units
 Shares
Available for
Grant
Number of
Shares
Weighted-
Average
Exercise
Price
Number of
Shares
Weighted-
Average
Grant
Date Fair
Value
Balances as of December 31, 202086 41 $12.48 48 $40.01 
Granted(1)
(10)191.08 181.15 
Shares withheld for taxes— — (1)66.99 
Exercised/Vested — (18)7.77 (15)57.05 
Canceled— 56.69 (4)64.32 
Balances as of December 31, 202181 24 19.69 37 61.22 
Granted(13)161.70 12 135.09 
Increase in shares available for grant32 — — — — 
Shares withheld for taxes— — (5)80.98 
Exercised/Vested— (3)14.32 (7)83.12 
Canceled— 95.93 (3)101.58 
Balances as of December 31, 2022108 22 $23.41 34 $77.07 

(1)There were no options or RSUs that were granted from the Assumed Equity Incentive Plan for the year ended December 31, 2021.
 Number of
Shares
Weighted-
Average
Exercise
Price
Weighted-
Average
Remaining
Contractual
Life (years)
Aggregate
Intrinsic
Value
Options outstanding as of December 31, 202124$19.69 3.66$3,555 
Options exercisable as of December 31, 202121 13.28 2.903,207 
Options outstanding as of December 31, 20222223.41 2.781,432 
Options exercisable as of December 31, 202220 17.01 2.271,380 
Summary of RSU Activity
A summary of stock option and RSU activity under the Plans was as follows (in millions, except per share amounts):

Outstanding
Stock Options
Outstanding
Restricted Stock Units
 Shares
Available for
Grant
Number of
Shares
Weighted-
Average
Exercise
Price
Number of
Shares
Weighted-
Average
Grant
Date Fair
Value
Balances as of December 31, 202086 41 $12.48 48 $40.01 
Granted(1)
(10)191.08 181.15 
Shares withheld for taxes— — (1)66.99 
Exercised/Vested — (18)7.77 (15)57.05 
Canceled— 56.69 (4)64.32 
Balances as of December 31, 202181 24 19.69 37 61.22 
Granted(13)161.70 12 135.09 
Increase in shares available for grant32 — — — — 
Shares withheld for taxes— — (5)80.98 
Exercised/Vested— (3)14.32 (7)83.12 
Canceled— 95.93 (3)101.58 
Balances as of December 31, 2022108 22 $23.41 34 $77.07 

(1)There were no options or RSUs that were granted from the Assumed Equity Incentive Plan for the year ended December 31, 2021.
 Number of
Shares
Weighted-
Average
Exercise
Price
Weighted-
Average
Remaining
Contractual
Life (years)
Aggregate
Intrinsic
Value
Options outstanding as of December 31, 202124$19.69 3.66$3,555 
Options exercisable as of December 31, 202121 13.28 2.903,207 
Options outstanding as of December 31, 20222223.41 2.781,432 
Options exercisable as of December 31, 202220 17.01 2.271,380 
v3.22.4
Commitments and Contingencies (Tables)
12 Months Ended
Dec. 31, 2022
Commitments and Contingencies Disclosure [Abstract]  
Schedule of Commitments, Purchase Obligations and Other Commitments
The Company has commitments including purchase obligations for web-hosting services and other commitments for brand marketing. The following table presents these non-cancelable commitments and obligations as of December 31, 2022 (in millions):

 TotalLess than
1 year
1 to 3 years3 to 5 yearsMore than
5 years
Purchase obligations$1,068 $137 $517 $414 $— 
Other commitments232 37 76 79 40 
Total$1,300 $174 $593 $493 $40 
v3.22.4
Income Taxes (Tables)
12 Months Ended
Dec. 31, 2022
Income Tax Disclosure [Abstract]  
Schedule of Income (Loss) before Income Tax, Domestic and Foreign
The domestic and foreign components of income (loss) before income taxes were as follows (in millions):

 Year Ended December 31,
 202020212022
Domestic$(4,510)$(390)$1,820 
Foreign(172)90 169 
Income (loss) before income taxes$(4,682)$(300)$1,989 
Schedule of Components of Income Tax Expense (Benefit)
The components of the provision for (benefit from) income taxes were as follows (in millions):

 Year Ended December 31,
 202020212022
Current
Federal$(91)$$19 
State(1)10 
Foreign15 34 68 
Total current provision for (benefit from) income taxes(77)41 97 
Deferred
Federal— — — 
State— — — 
Foreign(20)11 (1)
Total deferred provision for (benefit from) income taxes(20)11 (1)
Total provision for (benefit from) income taxes$(97)$52 $96 
Schedule of Effective Income Tax Rate Reconciliation
The following is a reconciliation of the statutory federal income tax rate to the Company’s effective tax rate:

 Year Ended December 31,
 202020212022
Expected income tax expense at federal statutory rate21.0 %21.0 %21.0 %
State taxes, net of federal benefits— (0.7)0.4 
Foreign tax rate differential(0.5)(5.1)1.0 
Stock-based compensation7.1 282.4 (6.9)
Deferred tax impacts of restructuring6.5 (9.7)— 
Other statutorily non-deductible expenses(0.3)(1.1)0.3 
Non-deductible warrant revaluations(3.9)(20.4)(0.1)
Research and development credits4.3 51.0 (4.7)
Uncertain tax positions—prior year positions(0.1)(3.1)0.1 
Uncertain tax positions—current year positions(0.2)(1.0)0.8 
US tax on foreign income, net of allowable credits and deductions— — 0.7 
Foreign-derived intangible income deduction— — (1.9)
Other0.3 1.3 0.1 
Change in valuation allowance(32.1)(331.9)(6.0)
Effective tax rate2.1 %(17.3)%4.8 %
Schedule of Deferred Tax Assets and Liabilities
The components of deferred tax assets and liabilities consisted of the following (in millions):

 December 31,
 20212022
Deferred tax assets:
Net operating loss carryforwards$1,988 $1,539 
Tax credit carryforwards568 664 
Accruals and reserves106 123 
Non-income tax accruals65 68 
Stock-based compensation157 111 
Operating lease liabilities87 73 
Intangible assets210 188 
Capitalized research and development costs— 413 
Other155 37 
Gross deferred tax assets3,336 3,216 
Valuation allowance(3,264)(3,166)
Total deferred tax assets72 50 
Deferred tax liabilities:
Property and equipment basis differences(8)(9)
Operating lease assets(49)(23)
Other— (2)
Total deferred tax liabilities(57)(34)
Total net deferred tax assets$15 $16 
Schedule of Unrecognized Tax Benefits Roll Forward
A reconciliation of the beginning and ending amount of the Company’s total gross unrecognized tax benefits was as follows (in millions):

 Year Ended December 31,
 202020212022
Balance at beginning of year$337 $508 $597 
Gross increases related to prior year tax positions14 
Gross decreases related to prior year tax positions(6)(2)(2)
Gross increases related to current year tax positions196 85 60 
Reductions due to settlements with taxing authorities(21)(1)(7)
Reduction due to lapse in statute of limitations— (7)(5)
Balance at end of year$508 $597 $650 
v3.22.4
Net Income (Loss) per Share (Tables)
12 Months Ended
Dec. 31, 2022
Earnings Per Share [Abstract]  
Schedule of Computation of Basic and Diluted Net Income (Loss) per Share of Common Stock
The following table sets forth the computation of basic and diluted net loss per share attributable to common stockholders for the years indicated (in millions, except per share amounts):

Year Ended December 31,
202020212022
Net income (loss)$(4,585)$(352)$1,893 
Add: convertible notes interest expense, net of tax— — 
Net income (loss) - diluted$(4,585)$(352)$1,897 
Weighted-average shares in computing net income (loss) per share attributable to Class A and Class B common stockholders:
Basic284 616 637 
Effect of dilutive securities— — 43 
Diluted284 616 680 
Net income (loss) per share attributable to Class A and Class B common stockholders:
Basic$(16.12)$(0.57)$2.97 
Diluted$(16.12)$(0.57)$2.79 
Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share
Additionally, the following securities were not included in the computation of diluted shares outstanding because the effect would be anti-dilutive (in millions):

Year Ended December 31,
202020212022
2026 Notes(1)
— 11 — 
Warrants— 
Escrow shares— — 
Stock options41 24 
RSUs36 26 
ESPP— 
Total87 70 10 
(1)Holders of the 2026 Notes who convert their 2026 Notes in connection with certain corporate events that constitute a make-whole fundamental change are entitled to an increase in the conversion rate. The 11.1 million shares represents the maximum number of shares that could have been issued upon conversion after considering the make-whole fundamental change adjustment on an unweighted basis.
v3.22.4
Geographic Information (Tables)
12 Months Ended
Dec. 31, 2022
Revenue from Contract with Customer [Abstract]  
Schedule of Revenue by Geography
The following table sets forth the breakdown of revenue by geography, determined based on the location of the Host’s listing (in millions):

Year Ended December 31,
202020212022
United States$1,649 $2,996 $3,890 
International(1)
1,729 2,996 4,509 
Total revenue$3,378 $5,992 $8,399 
(1)No individual international country represented 10% or more of the Company’s total revenue for years ended December 31, 2020, 2021, and 2022.
Long-lived Assets by Geographic Areas
The following table sets forth the breakdown of long-lived assets based on geography (in millions):

 December 31,
 20212022
United States$330 $203 
Ireland57 36 
Other international42 20 
Total long-lived assets$429 $259 
v3.22.4
Summary of Significant Accounting Policies - Narrative (Details)
$ / shares in Units, shares in Millions
12 Months Ended 32 Months Ended
Dec. 14, 2020
USD ($)
$ / shares
shares
Oct. 26, 2020
Dec. 31, 2022
USD ($)
segment
reportingUnit
shares
Dec. 31, 2021
USD ($)
shares
Dec. 31, 2020
USD ($)
shares
Dec. 31, 2022
USD ($)
shares
Nov. 30, 2020
shares
Dec. 31, 2019
shares
Subsidiary, Sale of Stock [Line Items]                
Stock split, conversion ratio   0.5            
Temporary equity outstanding (in shares) | shares     0.0 0.0 0.0 0.0   240.0
Stock-based compensation expense     $ 930,000,000 $ 899,000,000 $ 3,003,000,000      
Shares withheld for tax withholding obligation (in shares) | shares 24.2              
Taxes paid related to net share settlement of equity awards $ 1,600,000,000   $ 607,000,000 177,000,000 1,527,000,000      
Common stock authorized (in shares) | shares 4,700.0              
Number of operating segments | segment     1          
Number of reportable segments | segment     1          
Number of reporting units | reportingUnit     1          
Intangible asset impairment     $ 91,400,000 112,500,000 35,800,000      
Impairment of long-lived assets     91,000,000 113,000,000 36,000,000      
Restructuring charges     $ 89,100,000 112,800,000 151,400,000 $ 353,300,000    
Number of days, long-term stay, minimum     28 days          
Advance notice period required for cancellation     30 days          
Bad debt expense     $ 49,000,000 27,300,000 107,700,000      
Advertising expense     786,100,000 542,100,000 176,000,000      
Reclassified from accumulated other comprehensive income (loss)     0 0 0      
Cumulative translation gain     12,900,000 2,800,000   $ 12,900,000    
Net realized and unrealized gains (losses) on foreign currency transactions and balances     $ 29,500,000 (5,100,000) 31,500,000      
Award contractual term     10 years          
Overstatement (understatement) in cash flows from operating activities     $ 3,430,000,000 2,313,000,000 (740,000,000)      
Overstatement (understatement) in cash flows from financing activities     (689,000,000) 1,308,000,000 3,051,000,000      
Domestic And Foreign Tax Authority                
Subsidiary, Sale of Stock [Line Items]                
Taxes paid related to net share settlement of equity awards         1,700,000,000      
Intangible Assets                
Subsidiary, Sale of Stock [Line Items]                
Restructuring charges     $ 88,900,000          
Revision of Prior Period, Adjustment                
Subsidiary, Sale of Stock [Line Items]                
Overstatement (understatement) in cash flows from operating activities       (123,000,000) 111,000,000      
Overstatement (understatement) in cash flows from financing activities       123,000,000 $ (111,000,000)      
Revision of Prior Period, Adjustment | Foreign Tax Authority                
Subsidiary, Sale of Stock [Line Items]                
Taxes paid related to net share settlement of equity awards       $ 123,000,000        
Minimum                
Subsidiary, Sale of Stock [Line Items]                
Intangible assets, estimated useful life     1 year          
Maximum                
Subsidiary, Sale of Stock [Line Items]                
Intangible assets, estimated useful life     10 years          
Performance Shares                
Subsidiary, Sale of Stock [Line Items]                
Stock-based compensation expense $ 2,800,000,000              
Common Class A                
Subsidiary, Sale of Stock [Line Items]                
Sale of stock, aggregate net proceeds $ 3,700,000,000              
Common stock authorized (in shares) | shares 2,000.0   2,000.0     2,000.0    
Common stock issued (in shares) | shares     408.0     408.0    
Common Class A | Discounts And Commissions                
Subsidiary, Sale of Stock [Line Items]                
Stock issuance costs $ 79,300,000              
Common Class A | Offering Expense                
Subsidiary, Sale of Stock [Line Items]                
Stock issuance costs $ 9,800,000              
Common Class A | IPO                
Subsidiary, Sale of Stock [Line Items]                
Sale of stock (in shares) | shares 50.0              
Sale of stock (in USD per share) | $ / shares $ 68.00              
Common Class A | Over-Allotment Option                
Subsidiary, Sale of Stock [Line Items]                
Sale of stock (in shares) | shares 5.0              
Sale of stock (in USD per share) | $ / shares $ 68.00              
Redeemable convertible preferred stock                
Subsidiary, Sale of Stock [Line Items]                
Temporary equity outstanding (in shares) | shares 239.6              
Common Class B                
Subsidiary, Sale of Stock [Line Items]                
Conversion of convertible securities (in shares) | shares 240.9              
Common stock authorized (in shares) | shares 710.0   710.0     710.0    
Common stock issued (in shares) | shares     223.0     223.0    
Series C redeemable convertible preferred stock                
Subsidiary, Sale of Stock [Line Items]                
Conversion of convertible securities (in shares) | shares 1.3              
Common Class C                
Subsidiary, Sale of Stock [Line Items]                
Common stock authorized (in shares) | shares 2,000.0   2,000.0     2,000.0    
Common stock issued (in shares) | shares     0.0     0.0    
Common Class H                
Subsidiary, Sale of Stock [Line Items]                
Common stock authorized (in shares) | shares 26.0   26.0     26.0    
Common stock issued (in shares) | shares     9.0     9.0 9.2  
v3.22.4
Summary of Significant Accounting Policies - Estimated Useful Lives of Property and Equipment (Details)
12 Months Ended
Dec. 31, 2022
Computer equipment  
Property, Plant and Equipment [Line Items]  
Property and equipment, useful life 5 years
Computer software and capitalized internal-use software | Minimum  
Property, Plant and Equipment [Line Items]  
Property and equipment, useful life 1 year 6 months
Computer software and capitalized internal-use software | Maximum  
Property, Plant and Equipment [Line Items]  
Property and equipment, useful life 3 years
Office furniture and equipment  
Property, Plant and Equipment [Line Items]  
Property and equipment, useful life 5 years
Buildings | Minimum  
Property, Plant and Equipment [Line Items]  
Property and equipment, useful life 25 years
Buildings | Maximum  
Property, Plant and Equipment [Line Items]  
Property and equipment, useful life 40 years
v3.22.4
Supplemental Financial Statement Information - Cash, Cash Equivalents and Restricted Cash (Details) - USD ($)
$ in Millions
Dec. 31, 2022
Dec. 31, 2021
Dec. 31, 2020
Dec. 31, 2019
Organization, Consolidation and Presentation of Financial Statements [Abstract]        
Cash and cash equivalents $ 7,378 $ 6,067    
Cash and cash equivalents included in funds receivable and amounts held on behalf of customers 4,708 3,645    
Restricted cash included in prepaids and other current assets 17 15    
Total cash, cash equivalents, and restricted cash presented in the consolidated statements of cash flows $ 12,103 $ 9,727 $ 7,668 $ 5,143
v3.22.4
Supplemental Financial Statement Information - Accrued Expenses and Other Current Liabilities (Details) - USD ($)
$ in Millions
Dec. 31, 2022
Dec. 31, 2021
Organization, Consolidation and Presentation of Financial Statements [Abstract]    
Indirect taxes payable $ 418 $ 310
Compensation and employee benefits 380 416
Indirect tax reserves 206 183
Gift card liability 141 98
Other 672 552
Total accrued expenses and other current liabilities $ 1,817 $ 1,559
v3.22.4
Supplemental Financial Statement Information - Payments to Customers (Details) - USD ($)
$ in Millions
12 Months Ended
Dec. 31, 2022
Dec. 31, 2021
Dec. 31, 2020
Disaggregation of Revenue [Line Items]      
Total payments made to customers $ 432 $ 272 $ 524
Reductions to revenue      
Disaggregation of Revenue [Line Items]      
Total payments made to customers 284 156 384
Charges to operations and support      
Disaggregation of Revenue [Line Items]      
Total payments made to customers 88 69 83
Charges to sales and marketing expense      
Disaggregation of Revenue [Line Items]      
Total payments made to customers $ 60 $ 47 $ 57
v3.22.4
Investments - Schedule of Debt Securities Available-for-Sale (Details) - USD ($)
$ in Millions
Dec. 31, 2022
Dec. 31, 2021
Debt Securities, Available-for-sale [Line Items]    
Certificates of deposit, Amortized Cost $ 7,378 $ 6,067
Total, Amortized Cost 2,698 2,505
Gross Unrealized Gains 1 0
Gross Unrealized Losses (19) (3)
Total, Estimated Fair Value 2,680 2,502
Cash and Cash Equivalents    
Debt Securities, Available-for-sale [Line Items]    
Total, Estimated Fair Value 453 237
Marketable Securities    
Debt Securities, Available-for-sale [Line Items]    
Total, Estimated Fair Value 2,223 2,255
Other Assets, Noncurrent    
Debt Securities, Available-for-sale [Line Items]    
Total, Estimated Fair Value 4 10
Government bonds    
Debt Securities, Available-for-sale [Line Items]    
Available-for-sale debt securities, Amortized Cost 115 1
Gross Unrealized Gains 0 0
Gross Unrealized Losses 0 0
Available-for-sale debt securities, Total Estimated Fair Value 115 1
Government bonds | Cash and Cash Equivalents    
Debt Securities, Available-for-sale [Line Items]    
Available-for-sale debt securities, Total Estimated Fair Value 32 0
Government bonds | Marketable Securities    
Debt Securities, Available-for-sale [Line Items]    
Available-for-sale debt securities, Total Estimated Fair Value 83 1
Government bonds | Other Assets, Noncurrent    
Debt Securities, Available-for-sale [Line Items]    
Available-for-sale debt securities, Total Estimated Fair Value 0 0
Commercial paper    
Debt Securities, Available-for-sale [Line Items]    
Available-for-sale debt securities, Amortized Cost 901 1,157
Gross Unrealized Gains 0 0
Gross Unrealized Losses 0 0
Available-for-sale debt securities, Total Estimated Fair Value 901 1,157
Commercial paper | Cash and Cash Equivalents    
Debt Securities, Available-for-sale [Line Items]    
Available-for-sale debt securities, Total Estimated Fair Value 327 164
Commercial paper | Marketable Securities    
Debt Securities, Available-for-sale [Line Items]    
Available-for-sale debt securities, Total Estimated Fair Value 574 993
Commercial paper | Other Assets, Noncurrent    
Debt Securities, Available-for-sale [Line Items]    
Available-for-sale debt securities, Total Estimated Fair Value 0 0
Corporate debt securities    
Debt Securities, Available-for-sale [Line Items]    
Available-for-sale debt securities, Amortized Cost 1,046 918
Gross Unrealized Gains 1 0
Gross Unrealized Losses (16) (3)
Available-for-sale debt securities, Total Estimated Fair Value 1,031 915
Corporate debt securities | Cash and Cash Equivalents    
Debt Securities, Available-for-sale [Line Items]    
Available-for-sale debt securities, Total Estimated Fair Value 68 42
Corporate debt securities | Marketable Securities    
Debt Securities, Available-for-sale [Line Items]    
Available-for-sale debt securities, Total Estimated Fair Value 959 863
Corporate debt securities | Other Assets, Noncurrent    
Debt Securities, Available-for-sale [Line Items]    
Available-for-sale debt securities, Total Estimated Fair Value 4 10
Mortgage-backed and asset-backed securities    
Debt Securities, Available-for-sale [Line Items]    
Available-for-sale debt securities, Amortized Cost 37 34
Gross Unrealized Gains 0 0
Gross Unrealized Losses (3) 0
Available-for-sale debt securities, Total Estimated Fair Value 34 34
Mortgage-backed and asset-backed securities | Cash and Cash Equivalents    
Debt Securities, Available-for-sale [Line Items]    
Available-for-sale debt securities, Total Estimated Fair Value 0 0
Mortgage-backed and asset-backed securities | Marketable Securities    
Debt Securities, Available-for-sale [Line Items]    
Available-for-sale debt securities, Total Estimated Fair Value 34 34
Mortgage-backed and asset-backed securities | Other Assets, Noncurrent    
Debt Securities, Available-for-sale [Line Items]    
Available-for-sale debt securities, Total Estimated Fair Value 0 0
Certificates of deposit    
Debt Securities, Available-for-sale [Line Items]    
Certificates of deposit, Amortized Cost 599 395
Certificate of deposit, Total Estimated Fair Value 599 395
Certificates of deposit | Cash and Cash Equivalents    
Debt Securities, Available-for-sale [Line Items]    
Certificate of deposit, Total Estimated Fair Value 26 31
Certificates of deposit | Marketable Securities    
Debt Securities, Available-for-sale [Line Items]    
Certificate of deposit, Total Estimated Fair Value 573 364
Certificates of deposit | Other Assets, Noncurrent    
Debt Securities, Available-for-sale [Line Items]    
Certificate of deposit, Total Estimated Fair Value $ 0 $ 0
v3.22.4
Investments - Narrative (Details) - USD ($)
12 Months Ended
Dec. 31, 2022
Dec. 31, 2021
Dec. 31, 2020
Investments, Debt and Equity Securities [Abstract]      
Allowance for credit loss, available-for-sale debt securities $ 0 $ 0  
Debt securities in an unrealized loss position 748,300,000 801,500,000  
Debt securities, unrealized loss 19,400,000 3,500,000  
Debt securities, available-for-sale, continuous unrealized loss position, 12 months or longer, accumulated loss 92,300,000 0  
Debt securities, available-for-sale, continuous unrealized loss position, 12 months or longer 12,900,000    
Unrealized gain (loss) on marketable equity securities 0 0 $ (21,700,000)
Realized loss on marketable equity securities   13,400,000  
Equity securities without readily determinable fair value, carrying value 75,000,000 75,000,000  
Impairment of investments 0 3,100,000 53,100,000
Cumulative impairment of investments 56,200,000 56,200,000  
Carrying value of equity method investments 13,800,000 17,400,000  
Loss from equity method investments 5,400,000 3,500,000 8,200,000
Impairment in equity method investments $ 0 $ 0 $ 29,000,000.0
v3.22.4
Investments - Schedule of Contractual Maturities of Available-for-Sale Debt Securities (Details) - USD ($)
$ in Millions
Dec. 31, 2022
Dec. 31, 2021
Amortized Cost     
Due within one year $ 2,238  
Due in one year to five years 435  
Due within five to ten years 22  
Due beyond ten years 3  
Total, Amortized Cost 2,698 $ 2,505
Estimated Fair Value    
Due within one year 2,236  
Due in one year to five years 422  
Due within five to ten years 19  
Due beyond ten years 3  
Total, Estimated Fair Value $ 2,680 $ 2,502
v3.22.4
Fair Value Measurements and Financial Instruments - Schedule of Fair Value Hierarchy for Financial Assets and Liabilities Measured at Fair Value (Details) - USD ($)
$ in Millions
Dec. 31, 2022
Dec. 31, 2021
Government bonds    
Assets, Fair Value Disclosure [Abstract]    
Marketable securities $ 115 $ 1
Government bonds | Other assets, noncurrent    
Assets, Fair Value Disclosure [Abstract]    
Marketable securities 0 0
Corporate debt securities    
Assets, Fair Value Disclosure [Abstract]    
Marketable securities 1,031 915
Corporate debt securities | Other assets, noncurrent    
Assets, Fair Value Disclosure [Abstract]    
Marketable securities 4 10
Mortgage-backed and asset-backed securities    
Assets, Fair Value Disclosure [Abstract]    
Marketable securities 34 34
Mortgage-backed and asset-backed securities | Other assets, noncurrent    
Assets, Fair Value Disclosure [Abstract]    
Marketable securities 0 0
Certificates of deposit    
Assets, Fair Value Disclosure [Abstract]    
Cash equivalents 599 395
Certificates of deposit | Other assets, noncurrent    
Assets, Fair Value Disclosure [Abstract]    
Cash equivalents 0 0
Fair value, recurring    
Assets, Fair Value Disclosure [Abstract]    
Cash equivalents 2,779 2,160
Marketable securities   2,255
Marketable securities 2,224  
Total assets at fair value 5,522 4,917
Liabilities, Fair Value Disclosure [Abstract]    
Total liabilities at fair value 31 10
Fair value, recurring | Foreign exchange derivative assets    
Liabilities, Fair Value Disclosure [Abstract]    
Derivative liabilities 31 10
Fair value, recurring | Prepaids and other current assets | Foreign exchange derivative assets    
Assets, Fair Value Disclosure [Abstract]    
Other assets 14 26
Fair value, recurring | Certificates of deposit    
Assets, Fair Value Disclosure [Abstract]    
Marketable securities 573 364
Fair value, recurring | Government bonds    
Assets, Fair Value Disclosure [Abstract]    
Marketable securities 83 1
Fair value, recurring | Commercial paper    
Assets, Fair Value Disclosure [Abstract]    
Marketable securities 574 993
Fair value, recurring | Corporate debt securities    
Assets, Fair Value Disclosure [Abstract]    
Marketable securities 959 863
Fair value, recurring | Corporate debt securities | Other assets, noncurrent    
Assets, Fair Value Disclosure [Abstract]    
Other assets 4 10
Fair value, recurring | Mortgage-backed and asset-backed securities    
Assets, Fair Value Disclosure [Abstract]    
Marketable securities 34 34
Fair value, recurring | Marketable equity securities    
Assets, Fair Value Disclosure [Abstract]    
Marketable equity securities 1  
Fair value, recurring | Money market funds    
Assets, Fair Value Disclosure [Abstract]    
Cash equivalents 2,326 1,923
Funds receivable and amounts held on behalf of customers 501 466
Fair value, recurring | Certificates of deposit    
Assets, Fair Value Disclosure [Abstract]    
Cash equivalents 26 31
Fair value, recurring | Government bonds    
Assets, Fair Value Disclosure [Abstract]    
Cash equivalents 32  
Fair value, recurring | Commercial paper    
Assets, Fair Value Disclosure [Abstract]    
Cash equivalents 327 164
Fair value, recurring | Corporate debt securities    
Assets, Fair Value Disclosure [Abstract]    
Cash equivalents 68 42
Fair value, recurring | Level 1    
Assets, Fair Value Disclosure [Abstract]    
Cash equivalents 2,352 1,954
Marketable securities   364
Marketable securities 574  
Total assets at fair value 3,427 2,784
Liabilities, Fair Value Disclosure [Abstract]    
Total liabilities at fair value 0 0
Fair value, recurring | Level 1 | Foreign exchange derivative assets    
Liabilities, Fair Value Disclosure [Abstract]    
Derivative liabilities 0 0
Fair value, recurring | Level 1 | Prepaids and other current assets | Foreign exchange derivative assets    
Assets, Fair Value Disclosure [Abstract]    
Other assets 0 0
Fair value, recurring | Level 1 | Certificates of deposit    
Assets, Fair Value Disclosure [Abstract]    
Marketable securities 573 364
Fair value, recurring | Level 1 | Government bonds    
Assets, Fair Value Disclosure [Abstract]    
Marketable securities 0 0
Fair value, recurring | Level 1 | Commercial paper    
Assets, Fair Value Disclosure [Abstract]    
Marketable securities 0 0
Fair value, recurring | Level 1 | Corporate debt securities    
Assets, Fair Value Disclosure [Abstract]    
Marketable securities 0 0
Fair value, recurring | Level 1 | Corporate debt securities | Other assets, noncurrent    
Assets, Fair Value Disclosure [Abstract]    
Other assets 0 0
Fair value, recurring | Level 1 | Mortgage-backed and asset-backed securities    
Assets, Fair Value Disclosure [Abstract]    
Marketable securities 0 0
Fair value, recurring | Level 1 | Marketable equity securities    
Assets, Fair Value Disclosure [Abstract]    
Marketable equity securities 1  
Fair value, recurring | Level 1 | Money market funds    
Assets, Fair Value Disclosure [Abstract]    
Cash equivalents 2,326 1,923
Funds receivable and amounts held on behalf of customers 501 466
Fair value, recurring | Level 1 | Certificates of deposit    
Assets, Fair Value Disclosure [Abstract]    
Cash equivalents 26 31
Fair value, recurring | Level 1 | Government bonds    
Assets, Fair Value Disclosure [Abstract]    
Cash equivalents 0  
Fair value, recurring | Level 1 | Commercial paper    
Assets, Fair Value Disclosure [Abstract]    
Cash equivalents 0 0
Fair value, recurring | Level 1 | Corporate debt securities    
Assets, Fair Value Disclosure [Abstract]    
Cash equivalents 0 0
Fair value, recurring | Level 2    
Assets, Fair Value Disclosure [Abstract]    
Cash equivalents 427 206
Marketable securities   1,891
Marketable securities 1,650  
Total assets at fair value 2,091 2,123
Liabilities, Fair Value Disclosure [Abstract]    
Total liabilities at fair value 31 10
Fair value, recurring | Level 2 | Foreign exchange derivative assets    
Liabilities, Fair Value Disclosure [Abstract]    
Derivative liabilities 31 10
Fair value, recurring | Level 2 | Prepaids and other current assets | Foreign exchange derivative assets    
Assets, Fair Value Disclosure [Abstract]    
Other assets 14 26
Fair value, recurring | Level 2 | Certificates of deposit    
Assets, Fair Value Disclosure [Abstract]    
Marketable securities 0 0
Fair value, recurring | Level 2 | Government bonds    
Assets, Fair Value Disclosure [Abstract]    
Marketable securities 83 1
Fair value, recurring | Level 2 | Commercial paper    
Assets, Fair Value Disclosure [Abstract]    
Marketable securities 574 993
Fair value, recurring | Level 2 | Corporate debt securities    
Assets, Fair Value Disclosure [Abstract]    
Marketable securities 959 863
Fair value, recurring | Level 2 | Corporate debt securities | Other assets, noncurrent    
Assets, Fair Value Disclosure [Abstract]    
Other assets 0 0
Fair value, recurring | Level 2 | Mortgage-backed and asset-backed securities    
Assets, Fair Value Disclosure [Abstract]    
Marketable securities 34 34
Fair value, recurring | Level 2 | Marketable equity securities    
Assets, Fair Value Disclosure [Abstract]    
Marketable equity securities 0  
Fair value, recurring | Level 2 | Money market funds    
Assets, Fair Value Disclosure [Abstract]    
Cash equivalents 0 0
Funds receivable and amounts held on behalf of customers 0 0
Fair value, recurring | Level 2 | Certificates of deposit    
Assets, Fair Value Disclosure [Abstract]    
Cash equivalents 0 0
Fair value, recurring | Level 2 | Government bonds    
Assets, Fair Value Disclosure [Abstract]    
Cash equivalents 32  
Fair value, recurring | Level 2 | Commercial paper    
Assets, Fair Value Disclosure [Abstract]    
Cash equivalents 327 164
Fair value, recurring | Level 2 | Corporate debt securities    
Assets, Fair Value Disclosure [Abstract]    
Cash equivalents 68 42
Fair value, recurring | Level 3    
Assets, Fair Value Disclosure [Abstract]    
Cash equivalents 0 0
Marketable securities   0
Marketable securities 0  
Total assets at fair value 4 10
Liabilities, Fair Value Disclosure [Abstract]    
Total liabilities at fair value 0 0
Fair value, recurring | Level 3 | Foreign exchange derivative assets    
Liabilities, Fair Value Disclosure [Abstract]    
Derivative liabilities 0 0
Fair value, recurring | Level 3 | Prepaids and other current assets | Foreign exchange derivative assets    
Assets, Fair Value Disclosure [Abstract]    
Other assets 0 0
Fair value, recurring | Level 3 | Certificates of deposit    
Assets, Fair Value Disclosure [Abstract]    
Marketable securities 0 0
Fair value, recurring | Level 3 | Government bonds    
Assets, Fair Value Disclosure [Abstract]    
Marketable securities 0 0
Fair value, recurring | Level 3 | Commercial paper    
Assets, Fair Value Disclosure [Abstract]    
Marketable securities 0 0
Fair value, recurring | Level 3 | Corporate debt securities    
Assets, Fair Value Disclosure [Abstract]    
Marketable securities 0 0
Fair value, recurring | Level 3 | Corporate debt securities | Other assets, noncurrent    
Assets, Fair Value Disclosure [Abstract]    
Other assets 4 10
Fair value, recurring | Level 3 | Mortgage-backed and asset-backed securities    
Assets, Fair Value Disclosure [Abstract]    
Marketable securities 0 0
Fair value, recurring | Level 3 | Marketable equity securities    
Assets, Fair Value Disclosure [Abstract]    
Marketable equity securities 0  
Fair value, recurring | Level 3 | Money market funds    
Assets, Fair Value Disclosure [Abstract]    
Cash equivalents 0 0
Funds receivable and amounts held on behalf of customers 0 0
Fair value, recurring | Level 3 | Certificates of deposit    
Assets, Fair Value Disclosure [Abstract]    
Cash equivalents 0 0
Fair value, recurring | Level 3 | Government bonds    
Assets, Fair Value Disclosure [Abstract]    
Cash equivalents 0  
Fair value, recurring | Level 3 | Commercial paper    
Assets, Fair Value Disclosure [Abstract]    
Cash equivalents 0 0
Fair value, recurring | Level 3 | Corporate debt securities    
Assets, Fair Value Disclosure [Abstract]    
Cash equivalents $ 0 $ 0
v3.22.4
Fair Value Measurements and Financial Instruments - Schedule of Fair Value Assets and Liabilities Measured on Recurring Basis, Rollforward (Details) - USD ($)
$ in Millions
12 Months Ended
Dec. 31, 2022
Dec. 31, 2021
Derivative Warrant Liability    
Reclassifications to equity   $ (1,277)
Other Assets, Noncurrent    
Other Assets, Noncurrent    
Balance, beginning of year $ 10 11
Included in earnings 0 0
Included in other comprehensive income (loss) (6) (1)
Balance, end of year 4 10
Changes in unrealized gains or losses included in other comprehensive income (loss) related to investments held at the reporting date (6) (1)
Warrant    
Derivative Warrant Liability    
Balance, beginning of year $ 0 985
Reclassifications to equity   (1,277)
Included in earnings   292
Included in other comprehensive income (loss)   0
Balance, end of year   0
Changes in unrealized gains or losses included in other comprehensive income (loss) related to investments held at the reporting date   $ 0
v3.22.4
Fair Value Measurements and Financial Instruments - Narrative (Details) - USD ($)
$ in Millions
3 Months Ended 12 Months Ended
Mar. 31, 2021
Dec. 31, 2022
Dec. 31, 2021
Dec. 31, 2020
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]        
Change in fair value of warrant liability   $ 0.0 $ 292.0 $ 869.0
Reclassification of derivative warrant liability to equity     1,277.0  
Potential effects of rights of set-off associated with derivative asset contracts   10.7 10.3  
Potential effects of rights of set-off associated with derivative liabilities contracts   10.7 10.3  
Derivative asset, fair value after offset   3.2 15.6  
Derivative liability, fair value after offset   20.5    
Foreign exchange derivative assets        
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]        
Net realized gain on foreign exchange derivative assets and liabilities   92.0 19.3 (21.7)
Net unrealized gain (loss) on foreign exchange derivative assets and liabilities   (32.9) 35.4 $ (24.6)
Foreign exchange derivative assets | Not Designated as Hedging Instrument        
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]        
Foreign exchange derivative assets   14.0 25.9  
Derivative liabilities   31.2 10.3  
Aggregate notional amount of foreign exchange derivative assets and liabilities   $ 2,400.0 $ 2,400.0  
Class A Common Stock Warrants | Second lien loan due July 2025 | Secured Debt        
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]        
Change in fair value of warrant liability $ 292.0      
Reclassification of derivative warrant liability to equity $ 1,300.0      
v3.22.4
Intangible Assets and Goodwill - Schedule of Acquired Finite-Lived Intangible Assets (Details) - USD ($)
$ in Millions
Dec. 31, 2022
Dec. 31, 2021
Finite-Lived Intangible Assets [Line Items]    
Gross Carrying Amount $ 77 $ 113
Accumulated Amortization (43) (61)
Net Carrying Value 34 52
Listing relationships    
Finite-Lived Intangible Assets [Line Items]    
Gross Carrying Amount 35 43
Accumulated Amortization (13) (16)
Net Carrying Value 22 27
Trade names    
Finite-Lived Intangible Assets [Line Items]    
Gross Carrying Amount 33 33
Accumulated Amortization (25) (18)
Net Carrying Value 8 15
Developed technology    
Finite-Lived Intangible Assets [Line Items]    
Gross Carrying Amount 0 23
Accumulated Amortization 0 (21)
Net Carrying Value 0 2
Customer contacts    
Finite-Lived Intangible Assets [Line Items]    
Gross Carrying Amount 0 4
Accumulated Amortization 0 (4)
Net Carrying Value 0 0
Other    
Finite-Lived Intangible Assets [Line Items]    
Gross Carrying Amount 9 10
Accumulated Amortization (5) (2)
Net Carrying Value $ 4 $ 8
v3.22.4
Intangible Assets and Goodwill - Narrative (Details) - USD ($)
$ in Millions
12 Months Ended
Dec. 31, 2022
Dec. 31, 2021
Dec. 31, 2020
Goodwill and Intangible Assets Disclosure [Abstract]      
Amortization expense of intangible assets $ 19.1 $ 23.7 $ 36.2
v3.22.4
Intangible Assets and Goodwill - Estimated Amortization Expense for Intangible Assets (Details) - USD ($)
$ in Millions
Dec. 31, 2022
Dec. 31, 2021
Finite-Lived Intangible Assets, Net, Amortization Expense, Fiscal Year Maturity [Abstract]    
2023 $ 11  
2024 6  
2025 5  
2026 4  
2027 4  
Thereafter 4  
Net Carrying Value $ 34 $ 52
v3.22.4
Intangible Assets and Goodwill - Changes in the carrying amount of goodwill (Details) - USD ($)
$ in Millions
12 Months Ended
Dec. 31, 2022
Dec. 31, 2021
Goodwill [Roll Forward]    
Goodwill, beginning balance $ 653 $ 656
Foreign currency translation adjustments (3) (3)
Goodwill, ending balance $ 650 $ 653
v3.22.4
Property and Equipment, Net - Schedule of Property and Equipment (Details) - USD ($)
$ in Millions
Dec. 31, 2022
Dec. 31, 2021
Property, Plant and Equipment [Line Items]    
Less: Accumulated depreciation and amortization $ (312.0) $ (379.0)
Total property and equipment, net 121.0 157.0
Depreciable Property, Plant and Equipment    
Property, Plant and Equipment [Line Items]    
Property and equipment, gross 433.0 536.0
Computer software and capitalized internal-use software    
Property, Plant and Equipment [Line Items]    
Property and equipment, gross 164.0 175.0
Total property and equipment, net 8.6 21.0
Leasehold improvements    
Property, Plant and Equipment [Line Items]    
Property and equipment, gross 152.0 214.0
Computer equipment    
Property, Plant and Equipment [Line Items]    
Property and equipment, gross 32.0 57.0
Office furniture and equipment    
Property, Plant and Equipment [Line Items]    
Property and equipment, gross 23.0 43.0
Buildings and land    
Property, Plant and Equipment [Line Items]    
Property and equipment, gross 17.0 17.0
Construction in progress    
Property, Plant and Equipment [Line Items]    
Property and equipment, gross $ 45.0 $ 30.0
v3.22.4
Property and Equipment, Net - Narrative (Details) - USD ($)
$ in Millions
12 Months Ended
Dec. 31, 2022
Dec. 31, 2021
Dec. 31, 2020
Property, Plant and Equipment [Line Items]      
Depreciation and amortization $ 42.6 $ 85.6 $ 67.2
Property and equipment, net 121.0 157.0  
Computer software and capitalized internal-use software      
Property, Plant and Equipment [Line Items]      
Amortization 27.6 66.3 $ 22.5
Property and equipment, net $ 8.6 $ 21.0  
v3.22.4
Leases - Narrative (Details)
Dec. 31, 2022
Lessee, Lease, Description [Line Items]  
Operating lease, renewal term 10 years
Minimum  
Lessee, Lease, Description [Line Items]  
Operating lease, term of contract 1 year
Maximum  
Lessee, Lease, Description [Line Items]  
Operating lease, term of contract 16 years
v3.22.4
Leases - Components of Lease Costs (Details) - USD ($)
$ in Millions
12 Months Ended
Dec. 31, 2022
Dec. 31, 2021
Dec. 31, 2020
Leases [Abstract]      
Operating lease cost $ 77 $ 83 $ 91
Short-term lease cost 2 3 1
Variable lease cost 17 14 12
Lease cost, net $ 96 $ 100 $ 104
v3.22.4
Leases - Supplemental Cash Flow Information (Details) - USD ($)
$ in Millions
12 Months Ended
Dec. 31, 2022
Dec. 31, 2021
Dec. 31, 2020
Leases [Abstract]      
Cash paid for operating leases $ 102 $ 92 $ 63
Net impact of non-cash changes to right-of-use assets related to modifications and reassessments of operating leases $ (5) $ 18 $ 103
v3.22.4
Leases - Summary of Lease Term and Discount Rate (Details)
Dec. 31, 2022
Dec. 31, 2021
Leases [Abstract]    
Weighted-average remaining lease term (years) 6 years 7 years 2 months 12 days
Weighted-average discount rate 7.00% 6.80%
v3.22.4
Leases - Maturities of lease liabilities (Details) - USD ($)
$ in Millions
Dec. 31, 2022
Dec. 31, 2021
Lessee, Operating Lease, Liability, Payment, Due [Abstract]    
2023 $ 81  
2024 53  
2025 87  
2026 79  
2027 31  
Thereafter 128  
Total lease payments 459  
Less: Imputed interest (105)  
Present value of lease liabilities 354  
Less: Current portion of lease liabilities (59) $ (63)
Total long-term lease liabilities $ 295 $ 372
v3.22.4
Debt - Summary of Outstanding Debt (Details) - USD ($)
$ in Millions
Dec. 31, 2022
Dec. 31, 2021
Debt Instrument [Line Items]    
Less: Unamortized debt discount and debt issuance costs $ (13) $ (17)
Total long-term debt 1,987 1,983
Convertible senior notes due March 2026 | Senior Notes    
Debt Instrument [Line Items]    
Total debt $ 2,000 $ 2,000
Effective Interest Rate 0.20% 0.20%
v3.22.4
Debt - Narrative (Details)
1 Months Ended 3 Months Ended 12 Months Ended
Oct. 31, 2022
USD ($)
Mar. 08, 2021
USD ($)
$ / shares
Mar. 03, 2021
USD ($)
$ / shares
Mar. 31, 2021
USD ($)
Nov. 30, 2020
USD ($)
Apr. 30, 2020
USD ($)
$ / shares
shares
Mar. 31, 2021
USD ($)
Dec. 31, 2022
USD ($)
Dec. 31, 2021
USD ($)
Dec. 31, 2020
USD ($)
Debt Instrument [Line Items]                    
Capped calls, transaction costs     $ 100,200,000              
Principal repayment of long-term debt               $ 0 $ 1,995,000,000 $ 5,000,000
Loss from extinguishment of debt               0 377,000,000 0
Early redemption premiums               0 213,000,000 0
Change in fair value of warrant liability               0 292,000,000 869,000,000
Reclassification of derivative warrant liability to equity                 1,277,000,000  
Common Class A                    
Debt Instrument [Line Items]                    
Capped call, initial cap price (in USD per share) | $ / shares     $ 360.80              
Premium of reported share price     100.00%              
Share price (in USD per share) | $ / shares     $ 180.40              
Senior Notes Due 2026 | Common Class A                    
Debt Instrument [Line Items]                    
Convertible debt, conversion ratio   0.0034645                
Convertible debt, conversion price (in USD per share) | $ / shares   $ 288.64                
2020 Credit Facility | Revolving Credit Facility                    
Debt Instrument [Line Items]                    
Debt instrument, term         5 years          
Initial borrowing capacity         $ 500,000,000          
Commitment fee percentage         0.15%          
2022 Credit Facility | Revolving Credit Facility                    
Debt Instrument [Line Items]                    
Debt instrument, term 5 years                  
Initial borrowing capacity $ 1,000,000,000                  
Borrowings outstanding, amount drawn               0    
2022 Credit Facility | Revolving Credit Facility | Secured Overnight Financing Rate (SOFR) Overnight Index Swap Rate | Interest Rate Scenario One                    
Debt Instrument [Line Items]                    
Variable rate floor 0.00%                  
2022 Credit Facility | Revolving Credit Facility | Secured Overnight Financing Rate (SOFR) Overnight Index Swap Rate | Interest Rate Scenario Two                    
Debt Instrument [Line Items]                    
Basis spread on variable rate 1.00%                  
2022 Credit Facility | Revolving Credit Facility | Fed Funds Effective Rate Overnight Index Swap Rate | Interest Rate Scenario Two                    
Debt Instrument [Line Items]                    
Basis spread on variable rate 0.50%                  
2022 Credit Facility | Revolving Credit Facility | Minimum                    
Debt Instrument [Line Items]                    
Commitment fee percentage 0.10%                  
2022 Credit Facility | Revolving Credit Facility | Minimum | Secured Overnight Financing Rate (SOFR) Overnight Index Swap Rate | Interest Rate Scenario One                    
Debt Instrument [Line Items]                    
Basis spread on variable rate 1.00%                  
2022 Credit Facility | Revolving Credit Facility | Minimum | Base Rate | Interest Rate Scenario Two                    
Debt Instrument [Line Items]                    
Basis spread on variable rate 0.00%                  
2022 Credit Facility | Revolving Credit Facility | Maximum                    
Debt Instrument [Line Items]                    
Commitment fee percentage 0.20%                  
2022 Credit Facility | Revolving Credit Facility | Maximum | Secured Overnight Financing Rate (SOFR) Overnight Index Swap Rate | Interest Rate Scenario One                    
Debt Instrument [Line Items]                    
Basis spread on variable rate 1.50%                  
2022 Credit Facility | Revolving Credit Facility | Maximum | Base Rate | Interest Rate Scenario Two                    
Debt Instrument [Line Items]                    
Basis spread on variable rate 0.50%                  
Convertible Debt | Senior Notes Due 2026                    
Debt Instrument [Line Items]                    
Aggregate principle amount   $ 2,000,000,000                
Interest rate   0.00%                
Proceeds from debt issuance, net   $ 1,979,200,000                
Redemption price (percent)   100.00%                
Debt issuance costs   $ 20,800,000                
Interest expense               4,200,000 3,400,000  
Debt, fair value               1,700,000,000    
Secured Debt                    
Debt Instrument [Line Items]                    
Principal repayment of long-term debt       $ 1,995,000,000            
Loss from extinguishment of debt       377,200,000            
Write-off of unamortized debt discount and deferred debt issuance costs       164,300,000            
Secured Debt | Redemption Premiums                    
Debt Instrument [Line Items]                    
Early redemption premiums       212,900,000            
Secured Debt | Third Party Costs                    
Debt Instrument [Line Items]                    
Early redemption premiums       $ 100,000            
Secured Debt | First lien loan due April 2025                    
Debt Instrument [Line Items]                    
Aggregate principle amount           $ 1,000,000,000        
Proceeds from debt issuance, net           961,400,000        
Debt issuance costs           $ 38,600,000        
Interest expense                 41,300,000  
Periodic payment, percentage of principal amount           0.25%        
Secured Debt | Second lien loan due July 2025                    
Debt Instrument [Line Items]                    
Aggregate principle amount           $ 1,000,000,000        
Proceeds from debt issuance, net           967,500,000        
Debt issuance costs           $ 32,500,000        
Interest expense                 41,300,000  
Secured Debt | Second lien loan due July 2025 | Class A Common Stock Warrants                    
Debt Instrument [Line Items]                    
Shares called by warrants (in shares) | shares           7,934,794        
Exercise price of warrants (in USD per share) | $ / shares           $ 28.355        
Warrants, fair value           $ 116,600,000       $ 985,200,000
Change in fair value of warrant liability             $ 292,000,000      
Reclassification of derivative warrant liability to equity             $ 1,300,000,000      
Line of Credit | 2020 Credit Facility | Letter of Credit                    
Debt Instrument [Line Items]                    
Maximum borrowing capacity         $ 200,000,000          
Borrowings outstanding                 $ 15,900,000  
Line of Credit | 2022 Credit Facility | Letter of Credit                    
Debt Instrument [Line Items]                    
Maximum borrowing capacity $ 200,000,000                  
Borrowings outstanding               $ 28,500,000    
v3.22.4
Stockholders’ Equity (Details)
$ / shares in Units, $ in Millions
12 Months Ended
Dec. 31, 2022
USD ($)
vote
$ / shares
shares
Aug. 02, 2022
USD ($)
Dec. 14, 2020
shares
Apr. 30, 2020
$ / shares
shares
Class of Stock [Line Items]        
Common stock authorized (in shares)     4,700,000,000  
Common stock, par value (in USD per share) | $ / shares $ 0.0001      
Stock repurchase program, authorized amount | $   $ 2,000.0    
Stock repurchased and retired (in shares) 13,800,000      
Stock repurchased and retired | $ $ 1,500.0      
Remaining authorized repurchase amount | $ $ 500.0      
Class A Common Stock Warrants | Second lien loan due July 2025 | Secured Debt        
Class of Stock [Line Items]        
Shares called by warrants (in shares)       7,934,794
Exercise price of warrants (in USD per share) | $ / shares       $ 28.355
Common Class A        
Class of Stock [Line Items]        
Common stock authorized (in shares) 2,000,000,000   2,000,000,000  
Common stock, par value (in USD per share) | $ / shares $ 0.0001      
Votes per common share | vote 1      
Common Class B        
Class of Stock [Line Items]        
Common stock authorized (in shares) 710,000,000   710,000,000  
Common stock, par value (in USD per share) | $ / shares $ 0.0001      
Votes per common share | vote 20      
Terms of conversion, percentage of common stockholders consenting to conversion, minimum 80.00%      
Terms of conversion, period after IPO 20 years      
Common Class C        
Class of Stock [Line Items]        
Common stock authorized (in shares) 2,000,000,000   2,000,000,000  
Votes per common share | vote 0      
Common Class H        
Class of Stock [Line Items]        
Common stock authorized (in shares) 26,000,000   26,000,000  
Votes per common share | vote 0      
v3.22.4
Stock-Based Compensation - Summary of Stock-Based Compensation Expense (Details) - USD ($)
$ in Millions
12 Months Ended
Dec. 31, 2022
Dec. 31, 2021
Dec. 31, 2020
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]      
Stock-based compensation expense $ 930 $ 899 $ 3,003
Operations and support      
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]      
Stock-based compensation expense 63 49 144
Product development      
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]      
Stock-based compensation expense 548 545 1,880
Sales and marketing      
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]      
Stock-based compensation expense 114 100 435
General and administrative      
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]      
Stock-based compensation expense $ 205 $ 205 $ 544
v3.22.4
Stock-Based Compensation - Narrative (Details) - USD ($)
$ / shares in Units, $ in Millions
1 Months Ended 12 Months Ended
Dec. 14, 2020
Dec. 31, 2020
Dec. 31, 2022
Dec. 31, 2021
Dec. 31, 2020
Dec. 31, 2018
Class of Stock [Line Items]            
Stock-based compensation expense     $ 930.0 $ 899.0 $ 3,003.0  
Stock-based compensation arrangement, tax benefit     $ 19.0 $ 35.6 $ 39.9  
Options exercisable (in shares)     20,000,000 21,000,000    
Options excisable (in USD per share)     $ 17.01 $ 13.28    
Weighted-average fair value of options granted (in USD per share)     $ 79.75 $ 96.50 $ 15.42  
Aggregate intrinsic value of options exercised     $ 326.0 $ 2,824.9 $ 476.0  
Grant date fair value of options vested     45.0 45.9 44.4  
Unrecognized compensation cost related to stock option awards granted     $ 78.0      
Weighted-average period expected to recognize compensation expense     2 years 6 months 29 days      
Proceeds from the issuance of common stock under employee stock purchase plan     $ 48.0 $ 51.0 $ 0.0  
2018 Plan            
Class of Stock [Line Items]            
Additional shares authorized (in shares)           13,200,000
2018 Plan | Common Class B            
Class of Stock [Line Items]            
Shares authorized (in shares)           50,000,000
Assumed Equity Incentive Plan | Common Class A            
Class of Stock [Line Items]            
Options exercisable (in shares)       98,093    
Options excisable (in USD per share)       $ 22.67    
2020 Plan | Common Class A            
Class of Stock [Line Items]            
Shares authorized (in shares)   62,069,613     62,069,613  
Annual increase in number of shares authorized (percent)         5.00%  
Maximum shares issuable (in shares)         371,212,920  
Performance Shares            
Class of Stock [Line Items]            
Stock-based compensation expense $ 2,800.0          
RSAs            
Class of Stock [Line Items]            
Vesting term     4 years      
Issued and outstanding (in shares)   700,000 400,000 600,000 700,000  
Unvested RSAs, weighted-average grant-date fair value (in usd per share)   $ 62.33 $ 62.33 $ 62.32 $ 62.33  
RSAs | Assumed Equity Incentive Plan            
Class of Stock [Line Items]            
Issued (in shares)       3,512    
RSUs            
Class of Stock [Line Items]            
Issued (in shares)     12,000,000 9,000,000    
Vesting term     4 years      
Issued and outstanding (in shares)   48,000,000 34,000,000 37,000,000 48,000,000  
Unvested RSAs, weighted-average grant-date fair value (in usd per share)   $ 40.01 $ 77.07 $ 61.22 $ 40.01  
Employee Stock Purchase Plan | 2020 Employee Stock Purchase Plan            
Class of Stock [Line Items]            
Stock-based compensation expense     $ 32.6 $ 105.9    
Maximum shares issuable (in shares)   89,800,000        
Shares available for future issuance (in shares)     8,900,000 3,000,000    
Proceeds from the issuance of common stock under employee stock purchase plan     $ 47.5 $ 50.6    
Employee Stock Purchase Plan | 2020 Employee Stock Purchase Plan | Common Class A            
Class of Stock [Line Items]            
Shares authorized (in shares)   4,000,000     4,000,000  
Annual increase in number of shares authorized (percent)   1.00%        
ESPP shares purchased during period (in shares)     500,000 900,000    
Average price of ESPP shares purchased (in USD per share)     $ 95.90 $ 59.11    
v3.22.4
Stock-Based Compensation - Schedule of Valuation Assumptions (Details)
12 Months Ended
Dec. 31, 2022
Dec. 31, 2021
Dec. 31, 2020
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]      
Expected term (years) 6 years 1 month 6 days 8 years  
Risk-free interest rate, minimum 0.30% 1.10% 0.50%
Risk-free interest rate, maximum 2.20% 1.50% 1.50%
Expected volatility, minimum 48.60% 44.20% 39.10%
Expected volatility, maximum 58.40% 44.90% 43.60%
Expected dividend yield 0.00% 0.00% 0.00%
Minimum      
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]      
Expected term (years)     5 years 1 month 6 days
Maximum      
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]      
Expected term (years)     8 years
v3.22.4
Stock-Based Compensation - Summary of Option and RSU Activity (Details) - USD ($)
$ / shares in Units, shares in Millions, $ in Millions
12 Months Ended
Dec. 31, 2022
Dec. 31, 2021
Shares Available for Grant    
Balances at beginning of period (in shares) 81 86
Granted (in shares) (13) (10)
Increase in shares available for grant (in shares) 32  
Shares withheld for taxes (in shares) 5 1
Exercised/Vested (in shares) 0 0
Canceled (in shares) 3 4
Balances at end of period (in shares) 108 81
Number of Shares    
Balances at beginning of period (in shares) 24 41
Granted (in shares) 1 1
Increase in shares available for grant (in shares) 0  
Shares withheld for taxes (in shares) 0 0
Exercised/Vested (in shares) (3) (18)
Canceled (in shares) 0 0
Balances at end of period (in shares) 22 24
Weighted- Average Exercise Price    
Balances at beginning of period (in USD per share) $ 19.69 $ 12.48
Granted (in USD per share) 161.70 191.08
Increase in shares available for grant (in USD per share) 0  
Shares withheld for taxes (in USD per share) 0 0
Exercised/Vested (in USD per share) 14.32 7.77
Canceled (in USD per share) 95.93 56.69
Balances at end of period (in USD per share) $ 23.41 $ 19.69
Share-based Compensation Arrangement by Share-based Payment Award, Options, Additional Disclosures [Abstract]    
Options outstanding (in shares) 22 24
Options exercisable (in shares) 20 21
Options outstanding (in USD per share) $ 23.41 $ 19.69
Options excisable (in USD per share) $ 17.01 $ 13.28
Options outstanding, weighted-average remaining contractual life (in years) 2 years 9 months 10 days 3 years 7 months 28 days
Options exercisable, weighted-average remaining contractual life (in years) 2 years 3 months 7 days 2 years 10 months 24 days
Options outstanding, aggregate intrinsic value $ 1,432 $ 3,555
Options exercisable, aggregate intrinsic value $ 1,380 $ 3,207
RSUs    
Number of Shares    
Balances at beginning of period (in shares) 37 48
Granted (in shares) 12 9
Increase in shares available for grant (in shares) 0  
Shares withheld for taxes (in shares) (5) (1)
Exercised/Vested (in shares) (7) (15)
Canceled (in shares) (3) (4)
Balances at end of period (in shares) 34 37
Weighted- Average Grant Date Fair Value    
Balances at beginning of period (in usd per share) $ 61.22 $ 40.01
Granted (in USD per share) 135.09 181.15
Increase in shares available for grant (in USD per share) 0  
Shares withheld for taxes (in USD per share) 80.98 66.99
Exercised/Vested (in USD per share) 83.12 57.05
Canceled (in USD per share) 101.58 64.32
Balances at end of period (in usd per share) $ 77.07 $ 61.22
v3.22.4
Commitments and Contingencies - Schedule of commitments including purchase obligations and other commitments (Details)
$ in Millions
Dec. 31, 2022
USD ($)
Commitments and Contingencies Disclosure [Abstract]  
Purchase obligations, Total $ 1,068
Purchase obligations, Less than 1 year 137
Purchase obligations, 1 to 3 years 517
Purchase obligations, 3 to 5 years 414
Purchase obligations, More than 5 years 0
Other Commitments, Total 232
Other commitments, Less than 1 year 37
Other commitments, 1 to 3 years 76
Other commitments, 3 to 5 years 79
Other commitments, More than 5 years 40
Purchase obligations and other commitments 1,300
Purchase obligations and other commitments, Less than 1 year 174
Purchase obligations and other commitments, 1 to 3 years 593
Purchase obligations and other commitments, 3 to 5 years 493
Purchase obligations and other commitments, More than 5 years $ 40
v3.22.4
Commitments and Contingencies - Narrative (Details)
$ in Millions
12 Months Ended
Dec. 31, 2022
USD ($)
jurisdiction
Dec. 31, 2021
USD ($)
Dec. 31, 2020
USD ($)
Mar. 31, 2020
USD ($)
Other Commitments [Line Items]        
Commitment to spend amount $ 941.7      
Commitments to hosts, extenuating circumstances policy       $ 250.0
Commitments, extenuating circumstances reserve remaining balance 33.9      
Amount receivable, eligible hosts, extenuating circumstances policy (in percentage)       0.25
Extenuating circumstances policy, consideration paid to customers $ 2.9 $ 5.6 $ 205.1  
Number of jurisdictions where Company has lodging tax obligations | jurisdiction 32,000      
Obligation to remit lodging taxes $ 250.6 180.8    
Accrued obligations on lodging taxes 70.6 57.3    
Income tax expense (benefit) 96.0 52.0 (97.0)  
Host guarantee program, maximum 3.0      
Primary coverage, host protection insurance program 1.0      
Host protection insurance program, maximum per listing location 1.0      
Hosts' withholding tax obligations        
Other Commitments [Line Items]        
Income tax expense (benefit) 10.3 (10.1) $ 16.3  
Tax liabilities 134.6 124.2    
Employee benefits and employment taxes        
Other Commitments [Line Items]        
Tax liabilities $ 32.6 $ 33.6    
Minimum        
Other Commitments [Line Items]        
Remitting period for lodging taxes 30 days      
Loss contingency, estimate of possible loss $ 250.0      
Maximum        
Other Commitments [Line Items]        
Remitting period for lodging taxes 90 days      
Loss contingency, estimate of possible loss $ 280.0      
v3.22.4
Income Taxes - Domestic and Foreign Components of Income (Loss) before Taxes (Details) - USD ($)
$ in Millions
12 Months Ended
Dec. 31, 2022
Dec. 31, 2021
Dec. 31, 2020
Income Tax Disclosure [Abstract]      
Domestic $ 1,820 $ (390) $ (4,510)
Foreign 169 90 (172)
Income (loss) before income taxes $ 1,989 $ (300) $ (4,682)
v3.22.4
Income Taxes - Components of the Provision for (Benefit from) Income Taxes (Details) - USD ($)
$ in Millions
12 Months Ended
Dec. 31, 2022
Dec. 31, 2021
Dec. 31, 2020
Current      
Federal $ 19 $ 5 $ (91)
State 10 2 (1)
Foreign 68 34 15
Total current provision for (benefit from) income taxes 97 41 (77)
Deferred      
Federal 0 0 0
State 0 0 0
Foreign (1) 11 (20)
Total deferred provision for (benefit from) income taxes (1) 11 (20)
Total provision for (benefit from) income taxes $ 96 $ 52 $ (97)
v3.22.4
Income Taxes - Effective Tax Rate Reconciliation (Details)
12 Months Ended
Dec. 31, 2022
Dec. 31, 2021
Dec. 31, 2020
Income Tax Disclosure [Abstract]      
Expected income tax expense at federal statutory rate 21.00% 21.00% 21.00%
State taxes, net of federal benefits 0.40% (0.70%) 0.00%
Foreign tax rate differential 1.00% (5.10%) (0.50%)
Stock-based compensation (6.90%) 282.40% 7.10%
Deferred tax impacts of restructuring 0.00% (9.70%) 6.50%
Other statutorily non-deductible expenses 0.30% (1.10%) (0.30%)
Non-deductible warrant revaluations (0.10%) (20.40%) (3.90%)
Research and development credits (4.70%) 51.00% 4.30%
Uncertain tax positions—prior year positions 0.10% (3.10%) (0.10%)
Uncertain tax positions—current year positions 0.80% (1.00%) (0.20%)
US tax on foreign income, net of allowable credits and deductions 0.70% 0.00% 0.00%
Foreign-derived intangible income deduction (1.90%) 0.00% 0.00%
Other 0.10% 1.30% 0.30%
Change in valuation allowance (6.00%) (331.90%) (32.10%)
Effective tax rate 4.80% (17.30%) 2.10%
v3.22.4
Income Taxes - Narrative (Details) - USD ($)
$ in Millions
1 Months Ended 12 Months Ended
Dec. 31, 2020
Dec. 31, 2020
Dec. 31, 2019
Dec. 31, 2022
Dec. 31, 2021
Operating Loss Carryforwards [Line Items]          
benefit related to carryback of net operating loss   $ 95.6      
Federal net operating loss carryforwards       $ 6,800.0 $ 8,800.0
Federal research and development tax credit carryforwards       578.5 491.2
State net operating loss carryforwards       4,800.0 5,500.0
State research and development and enterprise zone tax credit carryfowards       402.1 338.1
Unrecognized tax benefits that would impact effective tax rate       209.6  
Unrecognized tax benefits, income tax penalties and interest accrued       $ 65.8 $ 58.7
Tax adjustments, settlements, and unusual provisions     $ 196.4    
Income tax expense, uncertain tax positions     $ 26.6    
Internal Revenue Service (IRS)          
Operating Loss Carryforwards [Line Items]          
Income tax examination, additional income tax expense and cash liability $ 1,300.0        
Income tax examination, amount of estimate of possible loss which exceeds reserves $ 1,000.0        
v3.22.4
Income Taxes - Deferred Tax Assets and Liabilities (Details) - USD ($)
$ in Millions
Dec. 31, 2022
Dec. 31, 2021
Deferred tax assets:    
Net operating loss carryforwards $ 1,539 $ 1,988
Tax credit carryforwards 664 568
Accruals and reserves 123 106
Non-income tax accruals 68 65
Stock-based compensation 111 157
Operating lease liabilities 73 87
Intangible assets 188 210
Capitalized research and development costs 413 0
Other 37 155
Gross deferred tax assets 3,216 3,336
Valuation allowance (3,166) (3,264)
Total deferred tax assets 50 72
Deferred tax liabilities:    
Property and equipment basis differences (9) (8)
Operating lease assets (23) (49)
Other (2) 0
Total deferred tax liabilities (34) (57)
Total net deferred tax assets $ 16 $ 15
v3.22.4
Income Taxes - Unrecognized Tax Benefits (Details) - USD ($)
$ in Millions
12 Months Ended
Dec. 31, 2022
Dec. 31, 2021
Dec. 31, 2020
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward]      
Balance at beginning of year $ 597 $ 508 $ 337
Gross increases related to prior year tax positions 7 14 2
Gross decreases related to prior year tax positions (2) (2) (6)
Gross increases related to current year tax positions 60 85 196
Reductions due to settlements with taxing authorities (7) (1) (21)
Reduction due to lapse in statute of limitations (5) (7) 0
Balance at end of year $ 650 $ 597 $ 508
v3.22.4
Net Income (Loss) per Share - Computation of Basic and Diluted Net Income (Loss) per Share and Common Stock (Details) - USD ($)
$ / shares in Units, shares in Millions, $ in Millions
12 Months Ended
Dec. 31, 2022
Dec. 31, 2021
Dec. 31, 2020
Earnings Per Share [Abstract]      
Net income (loss) $ 1,893 $ (352) $ (4,585)
Add: convertible notes interest expense, net of tax 4 0 0
Net income (loss) - diluted $ 1,897 $ (352) $ (4,585)
Weighted-average shares in computing net income (loss) per share attributable to Class A and Class B common stockholders, basic (in shares) 637 616 284
Weighted-average shares in computing net income (loss) per share attributable to Class A and Class B common stockholders, effect of dilutive securities (in shares) 43 0 0
Weighted-average shares in computing net income (loss) per share attributable to Class A and Class B common stockholders, diluted (in shares) 680 616 284
Net income (loss) per share attributable to Class A and Class B common stockholders, basic (in USD per share) $ 2.97 $ (0.57) $ (16.12)
Net income (loss) per share attributable to Class A and Class B common stockholders, diluted (in USD per share) $ 2.79 $ (0.57) $ (16.12)
v3.22.4
Net Income (Loss) per Share - Narrative (Details)
shares in Millions
12 Months Ended
Dec. 31, 2022
USD ($)
vote
shares
Dec. 31, 2021
USD ($)
shares
Dec. 31, 2020
USD ($)
shares
Class of Stock [Line Items]      
Preferred stock dividends declared | $ $ 0 $ 0 $ 0
Preferred stock dividends accumulated | $ $ 0 $ 0 $ 0
RSAs      
Class of Stock [Line Items]      
Shares subject to performance conditions (in shares) | shares 0.3 0.5 0.5
Common Class A      
Class of Stock [Line Items]      
Votes per common share | vote 1    
Common Class A | RSUs      
Class of Stock [Line Items]      
Shares subject to performance conditions (in shares) | shares 9.6 9.6 12.0
Common Class B      
Class of Stock [Line Items]      
Votes per common share | vote 20    
v3.22.4
Net Income (Loss) per Share - Schedule of securities with antidilutive effect (Details) - shares
shares in Millions
12 Months Ended
Dec. 31, 2022
Dec. 31, 2021
Dec. 31, 2020
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]      
Antidilutive securities (in shares) 10.0 70.0 87.0
2026 Notes      
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]      
Antidilutive securities (in shares) 0.0 11.1 0.0
Warrants      
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]      
Antidilutive securities (in shares) 0.0 8.0 8.0
Escrow shares      
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]      
Antidilutive securities (in shares) 0.0 0.0 1.0
Stock options      
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]      
Antidilutive securities (in shares) 1.0 24.0 41.0
RSUs      
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]      
Antidilutive securities (in shares) 9.0 26.0 36.0
ESPP      
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]      
Antidilutive securities (in shares) 0.0 1.0 1.0
v3.22.4
Employee Benefit Plan (Details) - USD ($)
$ in Millions
12 Months Ended
Dec. 31, 2022
Dec. 31, 2021
Dec. 31, 2020
Retirement Benefits [Abstract]      
Defined contribution plan, employer matching contribution $ 23.4 $ 19.1 $ 22.4
v3.22.4
Geographic Information - Schedule of revenue by geography (Details) - USD ($)
$ in Millions
12 Months Ended
Dec. 31, 2022
Dec. 31, 2021
Dec. 31, 2020
Disaggregation of Revenue [Line Items]      
Revenue $ 8,399 $ 5,992 $ 3,378
United States      
Disaggregation of Revenue [Line Items]      
Revenue 3,890 2,996 1,649
International      
Disaggregation of Revenue [Line Items]      
Revenue $ 4,509 $ 2,996 $ 1,729
v3.22.4
Geographic Information - Schedule of long-lived assets by geography (Details) - USD ($)
$ in Millions
Dec. 31, 2022
Dec. 31, 2021
Revenues from External Customers and Long-Lived Assets [Line Items]    
Total long-lived assets $ 259 $ 429
United States    
Revenues from External Customers and Long-Lived Assets [Line Items]    
Total long-lived assets 203 330
Ireland    
Revenues from External Customers and Long-Lived Assets [Line Items]    
Total long-lived assets 36 57
Other international    
Revenues from External Customers and Long-Lived Assets [Line Items]    
Total long-lived assets $ 20 $ 42
v3.22.4
Restructuring (Details)
$ in Millions
1 Months Ended 12 Months Ended 32 Months Ended
May 31, 2020
employee
Dec. 31, 2022
USD ($)
Dec. 31, 2021
USD ($)
Dec. 31, 2020
USD ($)
Dec. 31, 2022
USD ($)
Restructuring Cost and Reserve [Line Items]          
Restructuring, reduction in full-time employees | employee 1,800        
Restructuring charges   $ 89.1 $ 112.8 $ 151.4 $ 353.3
Restructuring liabilities   0.0     $ 0.0
Impairment of long-lived assets   80.5 75.3 35.8  
Impairment of leasehold   $ 8.4 $ 37.2    
Contract termination          
Restructuring Cost and Reserve [Line Items]          
Reduction in full-time employees (in percentage) 25.00%        
Restructuring charges       11.8  
Employee Severance          
Restructuring Cost and Reserve [Line Items]          
Restructuring charges       $ 103.8  
v3.22.4
Related Party Transactions (Details)
$ in Millions
12 Months Ended
Dec. 31, 2020
USD ($)
Payment processing fees | Payment processing vendor  
Related Party Transaction [Line Items]  
Expense transactions with related party $ 210.9
v3.22.4
Schedule II—Valuation and Qualifying Accounts (Details) - USD ($)
$ in Millions
12 Months Ended
Dec. 31, 2022
Dec. 31, 2021
Dec. 31, 2020
Customer Receivable Reserve      
SEC Schedule, 12-09, Movement in Valuation Allowances and Reserves [Roll Forward]      
Balance at Beginning of Year $ 31 $ 91 $ 51
Charged to Expenses 49 27 108
Charges Utilized/ Write-Offs (41) (87) (68)
Balance at End of Year 39 31 91
Insurance Liability      
SEC Schedule, 12-09, Movement in Valuation Allowances and Reserves [Roll Forward]      
Balance at Beginning of Year 47 51 73
Charged to Expenses 140 85 98
Changes in Estimates for Prior Periods (5) 1 (21)
Charges Utilized/ Write-Offs (121) (90) (99)
Balance at End of Year 61 47 51
Valuation Allowance on Deferred Tax Assets      
SEC Schedule, 12-09, Movement in Valuation Allowances and Reserves [Roll Forward]      
Balance at Beginning of Year 3,264 2,053 1,024
Charged to Expenses (98) 1,211 1,029
Charged to Other Accounts 0 0 0
Balance at End of Year $ 3,166 $ 3,264 $ 2,053