RAPID7, INC., 10-K filed on 2/28/2025
Annual Report
v3.25.0.1
Cover Page - USD ($)
 12 Months Ended
Dec. 31, 2024
Feb. 25, 2025
Jun. 30, 2024
Cover [Abstract]      
Document Type 10-K    
Document Annual Report true    
Document Period End Date Dec. 31, 2024    
Current Fiscal Year End Date --12-31    
Document Transition Report false    
Entity File Number 001-37496    
Entity Registrant Name RAPID7, INC.    
Entity Incorporation, State or Country Code DE    
Entity Tax Identification Number 35-2423994    
Entity Address, Address Line One 120 Causeway Street    
Entity Address, City or Town Boston    
Entity Address, State or Province MA    
Entity Address, Postal Zip Code 02114    
City Area Code 617    
Local Phone Number 247-1717    
Title of 12(b) Security Common Stock, par value $0.01 per share    
Trading Symbol RPD    
Security Exchange Name NASDAQ    
Entity Well-known Seasoned Issuer Yes    
Entity Voluntary Filers No    
Entity Current Reporting Status Yes    
Entity Interactive Data Current Yes    
Entity Filer Category Large Accelerated Filer    
Entity Small Business false    
Entity Emerging Growth Company false    
ICFR Auditor Attestation Flag true    
Document Financial Statement Error Correction true    
Document Financial Statement Restatement Recovery Analysis true    
Entity Shell Company false    
Entity Public Float     $ 2,669,159,228
Entity Common Stock, Shares Outstanding   63,968,853  
Documents Incorporated by Reference
Portions of the registrant’s definitive Proxy Statement for its 2025 Annual Meeting of Stockholders to be filed with the Securities and Exchange Commission pursuant to Regulation 14A not later than 120 days after the end of the fiscal year covered by this Annual Report on Form 10-K are incorporated by reference in Part III, Items 10-14 of this Annual Report on Form 10-K.
    
Document Fiscal Year Focus 2024    
Document Fiscal Period Focus FY    
Entity Central Index Key 0001560327    
Amendment Flag false    
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Audit Information
 12 Months Ended
Dec. 31, 2024
Audit Information [Abstract]  
Auditor Name KPMG LLP
Auditor Location Boston, MA
Auditor Firm ID 185
v3.25.0.1
CONSOLIDATED BALANCE SHEETS - USD ($)
$ in Thousands
Dec. 31, 2024
Dec. 31, 2023
Current assets:    
Cash and cash equivalents $ 334,686 $ 213,629
Short-term investments 187,025 169,544
Accounts receivable, net of allowance for credit losses of $1,833 and $951 at December 31, 2024 and December 31, 2023, respectively 168,242 164,862
Deferred contract acquisition and fulfillment costs, current portion 52,134 45,008
Prepaid expenses and other current assets 44,024 41,407
Total current assets 786,111 634,450
Long-term investments 37,274 56,171
Property and equipment, net 32,245 39,642
Operating lease right-of-use assets 48,877 54,693
Deferred contract acquisition and fulfillment costs, non-current portion 73,672 76,601
Goodwill 575,268 536,351
Intangible assets, net 85,719 94,546
Other assets 12,868 12,894
Total assets 1,652,034 1,505,348
Current liabilities:    
Accounts payable 18,908 15,812
Accrued expenses and other current liabilities 88,802 85,025
Convertible senior notes, current portion, net 45,895 0
Operating lease liabilities, current portion 15,493 13,452
Deferred revenue, current portion 461,118 455,503
Total current liabilities 630,216 569,792
Convertible senior notes non-current portion, net 888,356 929,996
Operating lease liabilities, non-current portion 68,430 81,130
Deferred revenue, non-current portion 27,078 32,577
Other long-term liabilities 20,243 10,032
Total liabilities 1,634,323 1,623,527
Stockholders’ equity (deficit):    
Preferred stock, $0.01 par value per share; 10,000,000 shares authorized at December 31, 2024 and 2023; 0 shares issued and outstanding at December 31, 2024 and 2023 0 0
Common stock, $0.01 par value per share; 100,000,000 shares authorized at December 31, 2024 and 2023; 64,067,220 and 62,283,630 shares issued at December 31, 2024 and 2023, respectively; 63,496,965 and 61,714,051 shares outstanding at December 31, 2024 and 2023, respectively 635 617
Treasury stock, at cost, 570,255 and 569,579 shares at December 31, 2024 and 2023, respectively (4,765) (4,765)
Additional paid-in-capital 1,011,080 898,185
Accumulated other comprehensive (loss) income (1,205) 1,344
Accumulated deficit (988,034) (1,013,560)
Total stockholders’ equity (deficit) 17,711 (118,179)
Total liabilities and stockholders’ equity (deficit) $ 1,652,034 $ 1,505,348
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CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($)
$ in Thousands
Dec. 31, 2024
Dec. 31, 2023
Statement of Financial Position [Abstract]    
Allowance for doubtful accounts receivable $ 1,833 $ 951
Preferred stock, par value (in dollars per share) $ 0.01 $ 0.01
Preferred stock, shares authorized (in shares) 10,000,000 10,000,000
Preferred stock, shares issued (in shares) 0 0
Preferred stock, shares outstanding (in shares) 0 0
Common stock, par value (in dollars per share) $ 0.01 $ 0.01
Common stock, shares authorized (in shares) 100,000,000 100,000,000
Common stock, shares issued (in shares) 64,067,220 62,283,630
Common stock, shares outstanding (in shares) 63,496,965 61,714,051
Treasury stock, at cost (in shares) 570,255 569,579
v3.25.0.1
CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2024
Dec. 31, 2023
Dec. 31, 2022
Revenue:      
Total revenue $ 844,007 $ 777,707 $ 685,083
Cost of revenue:      
Total cost of revenue 251,035 232,046 214,349
Total gross profit 592,972 545,661 470,734
Operating expenses:      
Research and development 173,126 177,937 189,970
Sales and marketing 298,809 313,661 307,409
General and administrative 86,002 85,340 84,969
Impairment of long-lived assets 0 30,784 0
Restructuring 0 22,227 0
Total operating expenses 557,937 629,949 582,348
Income (loss) from operations 35,035 (84,288) (111,614)
Other income (expense), net:      
Interest income 21,063 10,177 1,813
Interest expense (10,963) (64,700) (10,982)
Other expense, net (3,680) (14,522) (1,522)
Income (loss) before income taxes 41,455 (153,333) (122,305)
Provision for (benefit from) income taxes 15,929 (518) 2,412
Net income (loss) $ 25,526 $ (152,815) $ (124,717)
Net income (loss) per share, basic (in dollars per share) $ 0.41 $ (2.52) $ (2.13)
Net income (loss) per share, diluted (in dollars per share) $ 0.40 $ (2.52) $ (2.13)
Numerator used to calculate earnings per share (Note 15)      
Basic $ 25,526 $ (152,815) $ (124,717)
Diluted $ 25,526 $ (152,815) $ (124,717)
Weighted-average common shares outstanding, basic (in Shares) 62,607,583 60,756,087 58,552,065
Weighted-average common shares outstanding, diluted (in Shares) 63,183,651 60,756,087 58,552,065
Product subscriptions      
Revenue:      
Total revenue $ 808,906 $ 740,168 $ 647,535
Cost of revenue:      
Total cost of revenue 225,547 203,140 182,212
Professional services      
Revenue:      
Total revenue 35,101 37,539 37,548
Cost of revenue:      
Total cost of revenue $ 25,488 $ 28,906 $ 32,137
v3.25.0.1
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2024
Dec. 31, 2023
Dec. 31, 2022
Statement of Comprehensive Income [Abstract]      
Net income (loss) $ 25,526 $ (152,815) $ (124,717)
Other comprehensive income (loss):      
Change in fair value of cash flow hedges (1,723) 797 (3,874)
Adjustment for net (gains)/ losses realized on cash flow hedges and included in net income (loss), net of taxes (546) 724 4,053
Total change in unrealized (losses) gains on cash flow hedges (2,269) 1,521 179
Change in unrealized gains (losses) on investments (280) 1,234 (778)
Total other comprehensive (loss) income (2,549) 2,755 (599)
Comprehensive income (loss) $ 22,977 $ (150,060) $ (125,316)
v3.25.0.1
CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS’ EQUITY (DEFICIT) - USD ($)
$ in Thousands
Total
Common stock
Treasury stock
Additional paid-in-capital
Accumulated other comprehensive income (loss)
Accumulated deficit
Common stock, beginning balance (in shares) at Dec. 31, 2021   57,695,000        
Beginning balance at Dec. 31, 2021 $ (125,995) $ 577 $ (4,764) $ 615,032 $ (812) $ (736,028)
Treasury stock, beginning balance (in shares) at Dec. 31, 2021     487,000      
Increase (Decrease) in Stockholders' Equity [Roll Forward]            
Stock-based compensation expense 123,441     123,441    
Issuance of common stock under employee stock purchase plan (in shares)   218,000        
Issuance of common stock under employee stock purchase plan 11,943 $ 2   11,941    
Vesting of restricted stock units (in shares)   1,482,000        
Vesting of restricted stock units 0 $ 15   (15)    
Shares withheld for employee taxes (in shares)   (105,000)        
Shares withheld for employee taxes (7,462) $ (1)   (7,461)    
Issuance of common stock upon exercise of stock options (in shares)   480,000        
Issuance of common stock upon exercise of stock options 3,318 $ 5   3,313    
Issuance of common stock in connection with conversion of convertible senior notes (3)     (3)    
Issuance of common stock related to acquisition (in shares)   33,000        
Repurchase of common stock issued in relation to acquisition (in shares)   (83,000)        
Repurchase of common stock issued in relation to acquisition 0 $ (1)   1    
Other comprehensive income (loss) (599)       (599)  
Net income (loss) (124,717)         (124,717)
Common stock, ending balance (in shares) at Dec. 31, 2022   59,720,000        
Ending balance at Dec. 31, 2022 (120,074) $ 597 $ (4,764) 746,249 (1,411) (860,745)
Treasury stock, ending balance (in shares) at Dec. 31, 2022     487,000      
Increase (Decrease) in Stockholders' Equity [Roll Forward]            
Stock-based compensation expense 110,809     110,809    
Issuance of common stock under employee stock purchase plan (in shares)   330,000        
Issuance of common stock under employee stock purchase plan 11,323 $ 3   11,320    
Vesting of restricted stock units (in shares)   1,454,000        
Vesting of restricted stock units 0 $ 15   (15)    
Shares withheld for employee taxes (in shares)   (113,000)        
Shares withheld for employee taxes (5,570) $ (1)   (5,569)    
Issuance of common stock upon exercise of stock options (in shares)   216,000        
Issuance of common stock upon exercise of stock options 3,053 $ 2   3,051    
Issuance of common stock related to acquisition (in shares)   107,000        
Issuance of common stock related to acquisition 0 $ 1   (1)    
Repurchase of common stock issued in relation to acquisition (in shares)     83,000      
Repurchase of common stock issued in relation to acquisition 0   $ (1) 1    
Purchase of capped called related to convertible senior notes (36,570)     (36,570)    
Reclassification of equity to derivative assets related to capped calls 33,029     33,029    
Repurchase and inducement of convertible senior notes 35,881     35,881    
Other comprehensive income (loss) 2,755       2,755  
Net income (loss) $ (152,815)         (152,815)
Common stock, ending balance (in shares) at Dec. 31, 2023 61,714,051 61,714,000        
Ending balance at Dec. 31, 2023 $ (118,179) $ 617 $ (4,765) 898,185 1,344 (1,013,560)
Treasury stock, ending balance (in shares) at Dec. 31, 2023 569,579   570,000      
Increase (Decrease) in Stockholders' Equity [Roll Forward]            
Stock-based compensation expense $ 105,179     105,179    
Issuance of common stock under employee stock purchase plan (in shares)   292,000        
Issuance of common stock under employee stock purchase plan 9,246 $ 3   9,243    
Vesting of restricted stock units (in shares)   1,435,000        
Vesting of restricted stock units 0 $ 15   (15)    
Shares withheld for employee taxes (in shares)   (104,000)        
Shares withheld for employee taxes (4,730) $ (1)   (4,729)    
Vesting of equity awards previously classified as liabilities (in shares)   27,000        
Vesting of equity awards previously classified as liabilities 1,652     1,652    
Issuance of common stock upon exercise of stock options (in shares)   133,000        
Issuance of common stock upon exercise of stock options 1,566 $ 1   1,565    
Repurchase of common stock issued in relation to acquisition (in shares)     1,000      
Other comprehensive income (loss) (2,549)       (2,549)  
Net income (loss) $ 25,526         25,526
Common stock, ending balance (in shares) at Dec. 31, 2024 63,496,965 63,497,000        
Ending balance at Dec. 31, 2024 $ 17,711 $ 635 $ (4,765) $ 1,011,080 $ (1,205) $ (988,034)
Treasury stock, ending balance (in shares) at Dec. 31, 2024 570,255   571,000      
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CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2024
Dec. 31, 2023
Dec. 31, 2022
Cash flows from operating activities:      
Net income (loss) $ 25,526 $ (152,815) $ (124,717)
Adjustments to reconcile net income to net cash provided by operating activities:      
Depreciation and amortization 44,893 45,939 41,038
Amortization of debt issuance costs 4,447 4,138 4,085
Stock-based compensation expense 107,961 111,636 119,902
Impairment of long-lived assets 0 30,784 0
Change in fair value of derivative assets 0 15,511 0
Deferred income taxes 791 (5,624) (1,440)
Induced conversion expense 0 53,889 0
Other (1,503) 469 (200)
Changes in assets and liabilities:      
Accounts receivable (5,480) (14,021) (9,050)
Deferred contract acquisition and fulfillment costs (4,196) (18,534) (15,910)
Prepaid expenses and other assets 2,805 (4,125) (2,231)
Accounts payable 2,777 5,449 7,977
Accrued expenses (9,829) 2,422 3,741
Deferred revenue (795) 30,472 52,516
Other liabilities 4,273 (1,312) 2,493
Net cash provided by operating activities 171,670 104,278 78,204
Cash flows from investing activities:      
Business acquisitions, net of cash acquired (37,301) (34,841) 0
Purchases of property and equipment (3,425) (4,366) (20,382)
Capitalization of internal-use software (14,162) (15,878) (17,145)
Purchases of investments (242,494) (276,829) (122,765)
Sales and maturities of investments 250,500 150,450 121,304
Other investing activities 360 2,710 (1,000)
Net cash used in investing activities (46,522) (178,754) (39,988)
Cash flows from financing activities:      
Proceeds from issuance of convertible senior notes, net of issuance costs paid of $7,909 0 292,091 0
Purchase of capped calls related to convertible senior notes 0 (36,570) 0
Payment of debt issuance costs 0 0 (71)
Payments for repurchase of convertible senior notes 0 (199,998) (12)
Payments related to business acquisitions (500) (2,250) (300)
Proceeds from capped call settlement 0 17,518 0
Taxes paid related to net share settlement of equity awards (4,730) (5,570) (7,462)
Proceeds from employee stock purchase plan 9,246 11,323 11,943
Proceeds from stock option exercises 1,566 3,053 3,318
Net cash provided by financing activities 5,582 79,597 7,416
Effect of exchange rate changes on cash, cash equivalents and restricted cash (2,756) 1,202 (2,845)
Net increase in cash, cash equivalents and restricted cash 127,974 6,323 42,787
Cash, cash equivalents and restricted cash, beginning of period 214,127 207,804 165,017
Cash, cash equivalents and restricted cash, end of period 342,101 214,127 207,804
Supplemental cash flow information:      
Cash paid for interest on convertible senior notes 6,358 4,605 6,675
Cash paid for income taxes, net of refunds 8,949 1,624 1,571
Reconciliation of cash, cash equivalents and restricted cash:      
Cash and cash equivalents 334,686 213,629 207,287
Restricted cash included in prepaid expenses and other current assets and other assets 7,415 498 517
Total cash, cash equivalents and restricted cash $ 342,101 $ 214,127 $ 207,804
v3.25.0.1
CONSOLIDATED STATEMENTS OF CASH FLOWS (Parenthetical)
$ in Thousands
 12 Months Ended
Dec. 31, 2023
USD ($)
Convertible Debt  
Payments of debt issuance costs $ 7,909
v3.25.0.1
Nature of the Business
 12 Months Ended
Dec. 31, 2024
Organization, Consolidation and Presentation of Financial Statements [Abstract]  
Nature of the Business
(1)    Nature of Business
Rapid7, Inc. and subsidiaries (“we,” “us” or “our”) are advancing security with visibility, analytics, and automation delivered through our Command Platform. Our solutions simplify the complex, allowing security teams to work more effectively with IT and development to reduce vulnerabilities, monitor for malicious behavior, investigate and shut down attacks, and automate routine tasks.
Immaterial Correction of an Error
During the fourth quarter of 2024, we identified an immaterial error related to stock-based compensation expense associated with certain restricted stock units (“RSUs”) and performance stock units (“PSUs”) granted during fiscal years 2023 and 2024 attributable to an improper valuation of the underlying awards, resulting in an understatement of stock-based compensation expense in 2023 and 2024. Based on an analysis of quantitative and qualitative factors in accordance with Staff Accounting Bulletin (“SAB”) No. 99, Materiality, and SAB No. 108, Considering the Effects of Prior Year Misstatements when Quantifying Misstatements in Current Year Financial Statements, and as described further in Note 20, Immaterial Correction of an Error, we evaluated the errors and determined the related impacts were not material to our consolidated financial statements for the prior periods when they occurred, but that correcting the cumulative errors in the period detected would have been material to our results of operations for that period. Accordingly, we revised previously reported financial information presented herein for such immaterial errors.
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Summary of Significant Accounting Policies
 12 Months Ended
Dec. 31, 2024
Accounting Policies [Abstract]  
Summary of Significant Accounting Policies
(2)    Summary of Significant Accounting Policies
(a)Basis of Presentation and Consolidation
The accompanying consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”). The consolidated financial statements include our results of operations and those of our wholly-owned subsidiaries. All intercompany transactions and balances have been eliminated in consolidation.
(b)Use of Estimates
The preparation of consolidated financial statements in conformity with GAAP requires management to make estimates, judgments and assumptions that affect the amounts reported in the consolidated financial statements and accompanying notes. The management estimates include, but are not limited to the determination of standalone selling prices in revenue transactions with multiple performance obligations, the estimated period of benefit for deferred contract acquisition costs, the useful lives and recoverability of long-lived assets, the valuation for credit losses, the valuation of stock-based compensation, the fair value of assets acquired and liabilities assumed in business combinations, the valuation of contingent consideration in business combinations, the incremental borrowing rate for operating leases and the valuation for deferred tax assets. We base our estimates on historical experience and on various other assumptions that we believe are reasonable. Actual results could differ from those estimates.
(c)Revenue Recognition
We generate revenue primarily from: (1) product subscriptions from the sale of cloud-based subscriptions, managed services, term software licenses, content subscriptions and maintenance and support associated with
our software licenses and (2) professional services from the sale of our deployment and training services related to our solutions, incident response services, penetration testing and security advisory services.
We recognize revenue when a customer obtains control of promised products or services. The amount of revenue recognized reflects the consideration that we expect to be entitled to receive in exchange for these products or services. To achieve the core principle of this standard, we apply the following four steps:
        1) Identify the contract with a customer
We consider the terms and conditions of the contracts and our customary business practices in identifying our contracts. We determine we have a contract with a customer when the contract is approved, we can identify each party’s rights regarding the services to be transferred, we can identify the payment terms for the services, and we have determined the customer has the ability and intent to pay and the contract has commercial substance. We apply judgment in determining the customer’s ability and intent to pay, which is based on a variety of factors, including the customer’s historical payment experience or, in the case of a new customer, credit and financial information pertaining to the customer.
        2) Identify the performance obligations in the contract
Performance obligations promised in a contract are identified based on the products and services that will be transferred to the customer that are both capable of being distinct, whereby the customer can benefit from the product or service either on its own or together with other resources that are readily available from third parties or from us, and are distinct in the context of the contract, whereby the transfer of the products or services is separately identifiable from other promises in the contract.
        3) Determine the transaction price
The transaction price is determined based on the consideration to which we expect to be entitled in exchange for transferring products or services to the customer. Variable consideration is included in the transaction price if, in our judgment, it is probable that no significant future reversal of cumulative revenue under the contract will occur.
In instances where the timing of revenue recognition differs from the timing of invoicing, we have determined our contracts generally do not include a significant financing component. The primary purpose of our invoicing terms is to provide customers with simplified and predictable ways of purchasing our products and services, not to receive financing from our customers or to provide customers with financing. Examples include invoicing at the beginning of a subscription term with revenue recognized ratably over the contract period.
Sales through our channel network of distributors and resellers are generally discounted as compared to the price that we would sell to an end user. Revenue for sales through our channel network is recorded net of any distributor or reseller margin.
If the contract contains a single performance obligation, the entire transaction price is allocated to the single performance obligation. The majority of our contracts with customers contain multiple performance obligations. For these contracts, we account for individual performance obligations separately if they are distinct. The transaction price is allocated to the separate performance obligations on a relative standalone selling price (“SSP”) basis. We determine SSP of our products and services based on our overall pricing objectives using all information reasonably available to us, taking into consideration market conditions and other factors, including the geographic locations of our customers, negotiated discounts from price lists and selling method (i.e., partner or direct). When available, we use directly observable stand-alone transactions to determine SSP. When not regularly sold on a stand-alone basis, we estimate SSP for our products and services utilizing historical sales data, including discounts from list price. The historical data is aggregated and analyzed by geographic location and selling method to establish a median or average price. Once SSP is established it is applied consistently to all transactions including that product or service utilizing a portfolio approach.
        4) Recognize revenue when or as we satisfy a performance obligation
Revenue is recognized at the time the related performance obligation is satisfied by transferring the promised product or service to a customer. Revenue is recognized when control of the products or services is transferred to our customers, in an amount that reflects the consideration that we expect to receive in exchange for those products or services.
Product Subscriptions
Product subscriptions consists of revenue from our cloud-based subscription, term software licenses, managed services offerings, content subscriptions and maintenance and support associated with our software licenses.
•We generate cloud-based subscription revenue primarily from sales of subscriptions to access our cloud platform, together with related support services to our customers. These arrangements do not provide the customer with the right to take possession of our software operating on our cloud platform at any time. Instead, customers are granted continuous access to our cloud platform over the contractual period. Revenue is recognized over time on a ratable basis over the contract term beginning on the date that our service is made available to the customer. Our cloud-based subscription contracts generally have annual or multi-year contractual terms which are billed in advance of the annual subscription period and are non-cancellable.
•Managed services offerings consist of fees generated when we operate our software and provide our capabilities on behalf of our customers. Revenue is recognized on a ratable basis over the contract term beginning on the date that our service is made available to the customer. Our managed services offerings generally have annual or multi-year contractual terms which are billed in advance of the annual subscription period and are non-cancellable.
•For our term software licenses where the utility to the customer is dependent on the continued delivery of content subscriptions, we recognize the license revenue over the contractual term of the content subscription.
•Content subscriptions and our maintenance and support services are sold with our term software licenses. Revenue related to our content subscriptions associated with our software licenses is recognized ratably over the contractual period.
Professional Services
All of our professional services are considered distinct performance obligations when sold stand alone or with other products. These contracts generally have terms of one year or less. For the majority of these arrangements, revenue is recognized over time based upon the proportion of work performed to date.
Contract Balances
Contract liabilities consist of deferred revenue and include payments received in advance of performance under the contract. Such amounts are recognized as revenue over the contractual period consistent with the above methodology. For the year ended December 31, 2024, we recognized revenue of $457.5 million that was included in the corresponding contract liability balance at the beginning of the period presented. Deferred revenue that will be realized during the succeeding 12-month period is recorded as current, and the remaining deferred revenue is recorded as non-current.
We receive payments from customers based upon contractual billing schedules. Accounts receivable are recorded when the right to consideration becomes unconditional. Unbilled receivables include amounts related to our contractual right to consideration for both completed and partially completed performance obligations that have not been invoiced. If the right to consideration is based on satisfaction of another performance obligation in the contract other than the passage of time, we would record a contract asset. As of December 31, 2024 and 2023, unbilled receivables of $2.5 million and $2.0 million are included in prepaid expenses and other current assets in our consolidated balance sheet. As of December 31, 2024 and 2023, we have no contract assets recorded on our consolidated balance sheet.
(d)Cash, Cash Equivalents and Restricted Cash
We consider all highly liquid instruments with original maturities of three months or less at the date of purchase to be cash equivalents. Cash and cash equivalents are recorded at cost, which approximates fair value. As of December 31, 2024, we had $7.4 million of restricted cash recorded on our consolidated balance sheet as a component of prepaid expenses and other current assets associated with cash collateralized letters of credit with expirations within twelve months of the balance sheet date which relate to certain long-term office space leases.
(e)Investments
Our investments consist of U.S. Government agencies. We classify our investments as available-for-sale and record these investments at fair value. When the fair value of an investment declines below its amortized cost
basis, any portion of that decline attributable to credit losses, to the extent expected to be nonrecoverable before the sale of the security, is recognized in our consolidated statements of operations. When the fair value of the investment declines below its amortized cost basis due to changes in interest rates, such amounts are recorded in accumulated other comprehensive income (loss), and are recognized in our consolidated statement of operations only if we sell or intend to sell the security before recovery of its cost basis. Realized gains and losses are determined based on the specific identification method, and are reflected in our consolidated statements of operations.
Investments with an original maturity of greater than three months at the date of purchase and less than one year from the date of the balance sheet are classified as short-term and those with maturities of more than one year from the date of the balance sheet are classified as long-term in the consolidated balance sheet. We do not invest in any securities with contractual maturities greater than 24 months.
(f)Accounts Receivable and Allowance for Credit Losses
Accounts receivable are recorded at the invoiced amount, net of allowances for credit losses for any potential uncollectible amounts. We maintain an allowance for estimated credit losses resulting from the inability of our customers to make required payments. Management regularly reviews the adequacy of the allowance for credit loss based upon historical collection experience, the age of the receivable, an evaluation of each customer's expected ability to pay and current and future economic and market conditions. Additions to the allowance for credit losses are recorded in general and administrative expense in the consolidated statement of operations. Accounts receivable deemed uncollectible are charged against the allowance for credit losses. We do not have any off-balance sheet credit exposure related to our customers.
(g)Concentration of Credit Risk
Financial instruments that potentially expose us to concentrations of credit risk consist primarily of cash and cash equivalents, accounts receivable, investments and derivative financial instruments.
We invest only in high-quality credit instruments and our cash and cash equivalents and available for sale investments consist primarily of fixed income securities. Management believes that the financial institutions that hold our investments are financially sound and, accordingly, are subject to minimal credit risk. Deposits held with banks may exceed the amount of insurance provided on such deposits.
We provide credit to customers in the normal course of business. Collateral is not required for accounts receivable, but ongoing credit evaluations of customers’ financial condition are performed. We maintain reserves for potential credit losses. No single customer, including channel partners, accounted for 10% or more of our total revenues in 2024, 2023 or 2022 or accounts receivable as of December 31, 2024 or 2023.
Our derivative financial instruments expose us to credit risk to the extent that the counterparties may be unable to meet the terms of the arrangement. We mitigate this credit risk by transacting with major financial institutions with high credit ratings.
(h)Deferred Contract Acquisition Costs    
We defer contract costs that are recoverable and incremental to obtaining customer contracts. Contract costs, which primarily consist of sales commissions, are amortized on a systematic basis that is consistent with the transfer to the customer of the goods or services to which the asset relates. Contract costs for a new customer, upsell or cross-sell are amortized on a straight-line basis over an estimated period of benefit of five years as sales commissions on initial sales are not commensurate with sales commissions on contract renewals. We determined the estimated period of benefit by taking into consideration the contractual term and expected renewals of customer contracts, our technology and other factors, including the fact that sales commissions paid on renewals are not commensurate with commissions paid on initial sales transactions. Contract costs relating to contract renewals are deferred and amortized on a straight-line basis over the weighted average contract length of renewal contracts. Contract costs for professional services arrangements are expensed as incurred in accordance with the practical expedient as the contractual period of our professional services arrangements is one year or less.
We classify deferred contract costs as short-term or long-term based on when we expect to recognize the expense. Amortization expense associated with deferred contract acquisition costs is recorded to sales and marketing expense in our consolidated statements of operations. We periodically review the carrying amount of deferred contract acquisition costs to determine whether events or changes in circumstances have occurred that could impact the period of benefit.
(i)Property and Equipment
Property and equipment are recorded at cost and depreciated over their estimated useful lives using the straight-line method. The following table presents the useful lives of our property and equipment:
 Useful Lives
Computer equipment and software3 years
Furniture and fixtures
3 - 5 years
Leasehold improvementsShorter of the useful life of the asset or the lease term
Repairs and maintenance costs are expensed as incurred.
(j)Software Development Costs
Software development costs associated with the development of products for sale are recorded to research and development expense until technological feasibility has been established for the product. Once technological feasibility is established, all software costs are capitalized until the product is available for release to customers. To date, the software development costs have not been capitalized as the cost incurred and time between technological feasibility and product release was insignificant. As such, these costs are expensed as incurred and recognized in research and development expenses in our consolidated statements of operations.
Costs related to software developed, acquired or modified for internal use are capitalized. Costs incurred during the preliminary planning and evaluation stage of the project and during the post implementation stages of the project are expensed as incurred. Costs incurred during the application development stage of the project are capitalized. These capitalized costs consist of internal compensation related costs and external direct costs. Costs related to software developed for internal use are amortized over an estimated useful life of 3 years. We capitalized $14.2 million, $15.9 million and $17.1 million of costs related to software developed for internal use in the years ended December 31, 2024, 2023 and 2022, respectively. In the years ended December 31, 2024 and 2023, we had impairment losses of capitalized internal-use software projects of $0.7 million and $3.5 million, respectively, which was expensed within research and development expense in our consolidated statements of operations. Management evaluates the useful lives of these assets on an annual basis and tests for impairment whenever events or changes in circumstances occur that could impact the recoverability of these assets.
(k) Leases
We determine whether an arrangement is or contains a lease at inception. We evaluate the classification of a lease at inception and, as necessary, at modification. Operating leases are recognized on the consolidated balance sheet as right-of-use (“ROU”) assets, lease liabilities and, if applicable, long-term lease liabilities.
Operating lease ROU assets represent our right to use an underlying asset for the lease term. Operating lease liabilities represent our obligation to make payments arising from the lease. Operating lease ROU assets and liabilities are recognized at the present value of future lease payments at the lease commencement date. The implicit rate within our operating leases is generally not determinable and therefore we use the incremental borrowing rate at the lease commencement date to determine the present value of lease payments. We determine our incremental borrowing rate for each lease using our estimated borrowing rate, adjusted for various factors including level of collateralization, term and currency to align with the terms of the lease. The operating lease ROU asset also includes any lease prepayments and initial direct costs, offset by lease incentives. Operating lease cost is recognized on a straight-line basis over the lease term.
Certain of our leases include options to extend or terminate the lease. An option to extend the lease is considered in connection with determining the ROU asset and lease liability when it is reasonably certain we will exercise that option. An option to terminate is considered unless it is reasonably certain we will not exercise the option.
We account for lease and non-lease components as a single lease component and do not recognize operating lease ROU assets and lease liabilities for leases with a term of one year or less.
(l)Impairment of Long-Lived Assets
We evaluate our long-lived assets for impairment whenever events or changes in circumstances indicate that the carrying value of these assets may not be recoverable. When such events or changes in circumstances occur, recoverability of these assets or asset groups is measured by a comparison of the carrying value of the assets to the future net undiscounted cash flows directly associated with the assets. If such assets or asset groups are considered to be impaired, the impairment recognized is the amount by which the carrying value exceeds the fair value of the assets or asset groups. For the year ended December 31, 2023, we determined that triggering events occurred which indicated that the carrying value of our ROU and other lease-related assets related to a change in usage of certain idle office space at our corporate headquarters in Boston, Massachusetts as well as idle office spaces located in Plano, Texas; Los Angeles, California; and Toronto, Canada may not be fully recoverable. As a result, we utilized discounted cash flow models to estimate the fair value of the asset groups taking into consideration the time period it will take to obtain sublessees, the applicable discount rate and the anticipated sublease income and calculated the corresponding impairment loss. We used prices and other relevant information generated by recent market transactions involving similar or comparable assets, as well as our historical experience in real estate transactions. In the year ended December 31, 2023, we recorded impairment losses of $30.8 million related to these idle office spaces, consisting of $22.2 million related to ROU assets and $8.6 million related to leasehold improvements associated with these leased office spaces.
(m)Restructuring Expense
We record restructuring expense when management commits to and approves a restructuring plan, the restructuring plan identifies all significant actions, the period of time to complete the restructuring plan indicates that significant changes to the restructuring plan are not likely to occur, and employees who are impacted have been notified of the pending involuntary termination. A restructuring plan generally includes significant actions involving employee-related severance charges, employee-related benefits, and other charges associated with the restructuring (collectively, “restructuring expense”). Restructuring expense is recorded within restructuring in the consolidated statement of operations. The restructuring liability accrued but not paid at the end of the reporting period is included within accrued expenses in the consolidated balance sheet.
(n)Business Combinations
We allocate the fair value of purchase consideration to the tangible asset acquired, liabilities assumed, and intangible assets acquired based on their estimated fair values. The excess of the fair value of purchase consideration over the fair value of these identifiable assets and liabilities is recorded as goodwill. During the measurement period, which may be up to one year from the acquisition date, we may record adjustments to the fair value of these assets acquired and liabilities assumed with the corresponding offset to goodwill. Upon the conclusion of the final determination of the fair value of assets acquired or liabilities assumed, any subsequent adjustments are recorded to the consolidated statements of operations. Determining the fair value of the tangible assets acquired, liabilities assumed and intangible assets requires management to make significant estimates and assumptions, especially with respect to intangible assets. Significant estimates in valuing certain intangible assets include, but are not limited to, cash flows that an asset is expected to generate in the future, technology migration curves, discount rates, and useful lives. While we use our best estimates and judgements, our estimates are inherently uncertain and subject to refinement.
Contingent consideration arising from business combinations is recorded at fair value as a liability on the acquisition date and remeasured at each reporting date. Changes in fair value are recorded in general and administrative expense in the consolidated statements of operations. Determining the fair value of the contingent consideration each period requires management to make assumptions and judgments. These estimates involve inherent uncertainties, and if different assumptions had been used, the fair value of contingent consideration could have been materially different from the amounts recorded.
Acquisition-related transaction costs are expensed as incurred.
(o)Goodwill
We perform an annual goodwill impairment test on the last day of each fiscal year and whenever events or changes in circumstances indicate that the carrying amount of this asset may exceed its fair value. For our goodwill impairment analysis, we operate with a single reporting unit. To test goodwill impairment, we
perform a single-step goodwill impairment test to identify potential goodwill impairment. The single-step impairment test begins with an estimation of the fair value of a reporting unit. Goodwill impairment exists when the net assets of a reporting unit exceed its fair value. In performing the single step of the goodwill impairment testing and measurement process, we estimated the fair value of our single reporting unit using our market capitalization. Based upon our assessment performed as of December 31, 2024, we concluded the fair value of our single reporting unit exceeded its carrying value and there was no impairment of goodwill.
(p)Foreign Currency
The functional currency of our foreign subsidiaries is the U.S. dollar. We translate all monetary assets and liabilities denominated in foreign currencies into U.S. dollars using the exchange rates in effect at the balance sheet dates and non-monetary assets and liabilities using historical exchange rates. Foreign currency denominated expenses are re-measured using the average exchange rates for the period. Foreign currency transaction and re-measurement gains and losses are included in other income (expense), net in the consolidated statement of operations. In 2024, foreign currency transaction gains and foreign currency re-measurement gains were $0.6 million and $3.8 million, respectively. In 2023, foreign currency transaction losses and foreign currency re-measurement losses were $1.4 million and $0.4 million, respectively.
(q)Derivative and Hedging Activities
We are exposed to currency exchange rate risk. Although the majority of our revenue is denominated in U.S. dollars, a portion of our operating expenses are denominated in foreign currencies, making them subject to fluctuations in foreign currency exchange rates. We enter into foreign currency derivative contracts, which we designate as cash flow hedges, to manage the foreign currency exchange risk associated with these expenses.
Our derivative financial instruments are recorded at fair value and reported as either an asset or liability on our consolidated balance sheets. Gains or losses related to our cash flow hedges are recorded as a component of accumulated other comprehensive income (loss) in our consolidated balance sheets and are reclassified into the financial statement line item associated with the underlying hedged transaction in our consolidated statement of operations when the underlying hedged transaction is recognized in our earnings. If it becomes probable that the hedged transaction will not occur, the cumulative unrealized gain or loss is reclassified immediately from accumulated other comprehensive income (loss) into the financial statement line item associated with the underlying hedged transaction in our consolidated statement of operations. Derivatives designated as cash flow hedges are classified in our consolidated statements of cash flow in the same manner as the underlying hedged transaction, primarily within cash flow from operating activities.
As of December 31, 2024 and 2023, our cash flow hedges have contractual maturities of eighteen months or less, and as of December 31, 2024 and 2023, outstanding forward contracts had a total notional value of $50.4 million and $49.5 million, respectively. The notional value represents the gross amount of foreign currency that will be bought or sold upon maturity of the forward contract. During the years ended December 31, 2024 and 2023, all cash flow hedges were considered effective. Refer to Note 6, Fair Value Measurements, for the fair values of our outstanding derivative instruments.
(r)Stock-Based Compensation
Stock-based compensation expense related to our stock options, restricted stock units (“RSUs”), performance-based restricted stock units (“PSUs”) and purchase rights issued under our 2015 Employee Stock Purchase Plan (“ESPP”) is calculated based on the estimated fair value of the award on the grant date.
The fair values of RSUs and PSUs are based on the value of our common stock on the date of grant. The fair values of stock options and ESPP purchase rights are estimated on the grant date using the Black-Scholes option pricing model which requires management to make a number of assumptions, including the expected life of the option, the volatility of the underlying stock, the risk-free interest rate and expected dividends. The assumptions used in our Black-Scholes option-pricing model represent management’s best estimates at the time of grant. These estimates involve a number of variables, uncertainties and assumptions and the application of management’s judgment, as they are inherently subjective. If any assumptions change, our stock-based compensation expense could be materially different in the future.
The fair value is recognized as expense on a straight-line basis over the requisite service period, which is generally the vesting period of the respective award. The actual number of PSUs earned and eligible to vest are determined based on the performance conditions defined when the awards are granted. We recognize share-based compensation expense for the PSUs on a straight-line basis over the requisite service period for
each separately vesting portion of the award when it is probable that the performance conditions will be achieved. We reassess the probability of vesting at each reporting period for awards with performance conditions and adjust stock-based compensation cost based on its probability assessment. We recognize forfeitures as they occur and do not estimate a forfeiture rate when calculating the stock-based compensation expense.
(s)Advertising
Advertising costs are expensed as incurred and are recorded in sales and marketing expense in our consolidated statement of operations. We incurred $21.7 million, $22.4 million, and $22.7 million in advertising expense in 2024, 2023, and 2022, respectively.
(t)Income Taxes
Income taxes are accounted for using the asset and liability method. Under this method, deferred tax assets and liabilities are recognized for differences between the consolidated financial statements carrying amounts of assets and liabilities and their respective income tax bases, and operating loss and tax credit carryforwards using enacted tax rates expected to apply to taxable income in the years in which the differences are expected to reverse. Deferred tax assets are reduced by a valuation allowance if it is more likely than not that some or all of the deferred tax assets will not be realized. Significant judgment is required in determining any valuation allowance recorded against deferred tax assets. In assessing the need for a valuation allowance, we consider all available evidence, including past operating results, estimates of future taxable income, and the feasibility of tax planning strategies. In the event that we change our determination as to the amount of deferred tax assets that can be realized, we will adjust our valuation allowance with a corresponding impact to the provision for income taxes in the period in which such determination is made.
We recognize tax provision from uncertain tax positions if it is more likely than not that the tax position will be sustained on examination by the taxing authorities based on the technical merits of the position. Interest and penalties associated with such uncertain tax positions are classified as a component of income tax expense.
(u)Net Income (Loss) per Share
We calculate basic net income (loss) per share by dividing our net loss by the weighted-average number of common shares outstanding during the period. Diluted net income (loss) per share is computed by giving effect to all potentially dilutive securities, including stock options, RSUs, PSUs, the impact of our ESPP, common shares issued in connection with acquisitions and the impact of our convertible senior notes (“Notes”). We intend to settle any conversion of our Notes in cash, shares, or a combination thereof. The dilutive impact of the Notes for our calculation of diluted net income (loss) per share is considered using the if-converted method. For the years ended December 31, 2024, 2023 and 2022, the shares underlying the Notes were not considered in the calculation of diluted net loss per share as the effect would have been anti-dilutive.
(v)Recent Accounting Pronouncements
Accounting Pronouncements Recently Adopted
In November 2023, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2023-07, Segment Reporting (Topic 280), Improvements to Reportable Segment Disclosures (“ASU 2023-07”), to improve reportable segment disclosure requirements through enhanced disclosures about significant segment expenses on an interim and annual basis. All disclosure requirements of ASU 2023-07 are required for entities with a single reportable segment. ASU 2023-07 is effective for fiscal years beginning after December 15, 2023, and interim periods for the fiscal years beginning after December 15, 2024, and should be applied on a retrospective basis to all periods presented. We adopted this standard for our fiscal year beginning on January 1, 2024 and have provided the required disclosures in Note 18, Segment Information and Information About Geographic Areas.
Accounting Pronouncements Not Yet Effective
In November 2024, the FASB issued ASU 2024-04, Induced Conversions of Convertible Debt Instruments (“ASU 2024-04”). This new guidance is intended to improve the relevance and consistency in application of the induced conversion guidance in Subtopic 470-20 for (a) convertible debt instruments with cash conversion features and (b) debt instruments that are not currently convertible. ASU 2024-04 is effective for
fiscal years beginning after December 15, 2026. Early adoption is permitted. We do not plan to early adopt this standard. We are currently evaluating the effect of adoption of this standard to our consolidated financial statements and disclosures.
In November 2024, the FASB issued ASU 2024-03, Disaggregation of Income Statement Expenses (“ASU 2024-03”). Entities are required to disaggregate any relevant expense caption presented on the face of the income statement within continuing operations into the following required natural expense categories, as applicable: (1) purchases of inventory, (2) employee compensation, (3) depreciation, (4) intangible asset amortization, and (5) depreciation, depletion, and amortization recognized as part of oil- and gas-producing activities or other depletion expenses. Such disclosures must be made on an annual and interim basis in a tabular format in the footnotes to the financial statements. ASU 2024-03 is effective for fiscal years beginning after December 15, 2027. Early adoption is permitted. We do not plan to early adopt this standard. We are currently evaluating the effect of adoption of this standard to our consolidated financial statements and disclosures.
In December 2023, the FASB issued ASU 2023-09, Improvements to Income Tax Disclosures (“ASU 2023-09”). This new guidance is designed to enhance the transparency and decision usefulness of income tax disclosures. The amendments of this update are related to the rate reconciliation and income taxes paid, requiring (1) consistent categories and greater disaggregation of information in the rate reconciliation and (2) income taxes paid disaggregated by jurisdiction. ASU 2023-09 is effective for fiscal years beginning after December 15, 2024. We are currently evaluating the effect of adopting this standard on our disclosures.
v3.25.0.1
Revenue from Contracts with Customers
 12 Months Ended
Dec. 31, 2024
Revenue from Contract with Customer [Abstract]  
Revenue from Contracts with Customers
(3)    Revenue from Contracts with Customers
The following table summarizes the revenue by region based on the shipping address of customers who have contracted to use our product or service for the years ended December 31, 2024, 2023 and 2022:
Year Ended December 31,
202420232022
(in thousands)
North America$643,405 $607,448 $541,812 
Rest of world200,602 170,259 143,271 
Total revenue$844,007 $777,707 $685,083 
Transaction Price Allocated to the Remaining Performance Obligations
The following table includes estimated revenue expected to be recognized in the future related to performance obligations that are unsatisfied or partially unsatisfied as of December 31, 2024. The estimated revenues do not include unexercised contract renewals.
Next Twelve MonthsThereafter
 (in thousands)
Product subscriptions$587,450 $291,435 
Professional services14,167 5,334 
Total$601,617 $296,769 
(9)    Deferred Contract Acquisitions and Fulfillment Costs
The following table summarizes the activity of the deferred contract acquisition and fulfillment costs, which primarily consist of capitalized sales commissions, for the years ended December 31, 2024 and 2023:
Year Ended December 31,
20242023
(in thousands)
Beginning balance$121,609 $103,075 
Capitalization of contract acquisition and fulfillment costs57,796 60,528 
Amortization of deferred contract acquisition and fulfillment costs(53,599)(41,994)
Ending balance$125,806 $121,609 
v3.25.0.1
Business Combinations
 12 Months Ended
Dec. 31, 2024
Business Combination, Asset Acquisition, and Joint Venture Formation [Abstract]  
Business Combinations
(4)    Business Combinations
Noetic Cyber, Inc.
On July 3, 2024, we acquired Noetic Cyber, Inc. (“Noetic”) a provider of cyber asset attack surface management, to extend Rapid7’s security operations platform by unlocking more accessible and accurate asset inventory in order to provide customers more comprehensive visibility to their attack surface, for a purchase price with an aggregate fair value of $51.2 million. The purchase consideration consisted of $38.6 million in cash paid at closing, $12.1 million of contingent consideration and $0.5 million of deferred cash payments. The deferred cash payments were held by Rapid7 to satisfy certain post-closing purchase price adjustments and payment was made during the fourth quarter of 2024.
Subject to the terms of the merger agreement, we are required to pay consideration of up to $20.0 million to Noetic shareholders based on the achievement of certain performance targets (the “Earnout Consideration”), measured
annually upon the first, second and third anniversaries of the closing date of the transaction (the “Earnout Period”). If all performance targets are achieved, approximately $13.1 million of Earnout Consideration will be paid in cash, and the remaining $6.9 million of Earnout Consideration will be issued to certain employees in the form of shares of our common stock subject to continued employment requirements over the Earnout Period. The approximate $6.9 million of the Earnout Consideration that is subject to continued employment will be recognized as stock-based compensation expense over the required employment period. The fair value of the portion of the Earnout Consideration that is not subject to continued employment is included as part of purchase consideration at the date of the acquisition. As of July 3, 2024, we determined the fair value of the contingent purchase consideration to be $12.1 million. The fair value of the contingent purchase consideration will be reassessed each reporting period and any required adjustment will be recorded to general and administrative expense. As of December 31, 2024, the fair value of the contingent purchase consideration was $12.4 million, of which $6.9 million was recorded within accrued expenses and other current liabilities and $5.5 million was recorded within other liabilities in our consolidated balance sheet. In the year ended December 31, 2024, we recorded approximately $0.4 million of accretion expense related to the contingent purchase consideration to general and administrative expense.
In connection with the acquisition, we expect to issue an aggregate value of $2.3 million of our common stock to two key employees of Noetic in three installments over a 36-month period following the closing date of the transaction, subject to continued employment requirements (the “Key Employee Consideration”) and therefore will be recognized as stock-based compensation expense over the required employment period.
The number of shares to be issued at each issuance date for both the Earnout Consideration and the Key Employee Consideration shares will be determined by dividing the aggregate value by the fair market value of our common stock on the issuance date, and therefore will be liability-classified until the final issuance dates. In the year ended December 31, 2024, we recognized stock-based compensation expense related to such shares in the amount of $2.1 million.
The following table summarizes the preliminary allocation of purchase price to the estimated fair value of the assets acquired and liabilities assumed at the acquisition date (in thousands):
Consideration:
Cash$38,597 
Deferred cash consideration500 
Contingent consideration12,055 
Fair value of total consideration transferred$51,152 
Recognized amount of identifiable assets acquired and liabilities assumed:
Cash and cash equivalents$1,296 
Accounts receivable510 
Prepaid and other current assets102 
Property and equipment, net19 
Accrued expenses and other current liabilities(220)
Deferred revenue(910)
Other long-term liabilities(62)
Intangible asset11,500 
Total identifiable net assets assumed$12,235 
Goodwill38,917 
Total purchase price allocation$51,152 
We identified developed technology as the sole acquired intangible asset. The estimated fair value of the developed technology intangible asset was $11.5 million which was based on a valuation using a probability weighted expected return model (“PWERM”). The estimated useful life of the developed technology is 7 years.
The excess of the purchase price over the tangible assets acquired, identifiable intangible asset acquired and assumed liabilities was recorded as goodwill. We believe that the amount of goodwill reflects the expected synergistic benefits of being able to leverage the integration of the technology acquired with our existing product offerings and being able
to successfully market and sell these new features to our customer base. The goodwill was allocated to our one reporting unit. The acquired goodwill and intangible asset were not deductible for tax purposes.
In the year ended December 31, 2024, we recorded $0.8 million of acquisition-related transaction costs related to the acquisition of Noetic to general and administrative expense.
Our revenue and net loss attributable to the Noetic business for the year ended December 31, 2024 was not material.
Minerva Labs Ltd.
On March 14, 2023, we acquired Minerva Labs Ltd. (“Minerva”), a leading provider of anti-evasion and ransomware prevention technology, for a purchase price with an aggregate fair value of $34.6 million. The purchase consideration consisted of $35.0 million paid in cash at closing and a $(0.4) million receivable for purchase price adjustments.
The assets acquired and liabilities assumed were recorded at their estimated fair values as of the acquisition date. The excess of the purchase price over the assets acquired and liabilities assumed was recorded as goodwill. The fair value of net assets acquired (including intangible assets), goodwill and intangible assets were $13.9 million, $20.7 million and $12.8 million, respectively. The goodwill was allocated to our one reporting unit. The acquired goodwill and intangible assets were not deductible for tax purposes.
v3.25.0.1
Investments
 12 Months Ended
Dec. 31, 2024
Investments, Debt and Equity Securities [Abstract]  
Investments
(5)    Investments
Our investments, which are all classified as available-for-sale, consisted of the following:
 As of December 31, 2024
 Amortized
Cost		Gross
Unrealized
Gains		Gross
Unrealized
Losses		Fair Value
 (in thousands)
Description:
U.S government agencies$224,187 $328 $(216)$224,299 
Total$224,187 $328 $(216)$224,299 
 As of December 31, 2023
 Amortized
Cost		Gross
Unrealized
Gains		Gross
Unrealized
Losses		Fair Value
 (in thousands)
Description:
U.S government agencies$222,820 $467 $(65)$223,222 
Agency bonds2,500 — (7)2,493 
Total$225,320 $467 $(72)$225,715 
As of December 31, 2024, our available-for-sale investments had maturities ranging from 1 to 17 months. As of December 31, 2023, our available-for-sale investments had maturities ranging from 1 to 18 months.
For all of our investments for which the amortized cost basis was greater than the fair value at December 31, 2024 and December 31, 2023, we have concluded that there is no plan to sell the security nor is it more likely than not that we would be required to sell the security before its anticipated maturity. In making the determination as to whether the unrealized loss is other-than-temporary, we considered the length of time and extent the investment has been in an unrealized loss position, the financial condition and near-term prospects of the issuers, the issuers’ credit rating and the time to maturity.
v3.25.0.1
Fair Value Measurements
 12 Months Ended
Dec. 31, 2024
Fair Value Disclosures [Abstract]  
Fair Value Measurements
(6)    Fair Value Measurements
We measure certain financial assets and liabilities at fair value. Fair value is determined based upon the exit price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants, as determined by either the principal market or the most advantageous market. Inputs used in the valuation techniques to derive fair values are classified based on a three-level hierarchy, as follows:
•Level 1: Observable inputs that reflect quoted prices (unadjusted) for identical assets or liabilities in active markets.
•Level 2: Observable inputs other than Level 1 prices such as quoted prices for similar assets or liabilities; quoted prices in markets with insufficient volume or infrequent transactions (less active markets); or model-derived valuations in which all significant inputs are observable or can be derived principally from or corroborated by observable market data for substantially the full term of the assets or liabilities.
•Level 3: Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the asset or liability.
We consider an active market to be one in which transactions for the asset or liability occur with sufficient frequency and volume to provide pricing information on an ongoing basis, and consider an inactive market to be one in which there are infrequent or few transactions for the asset or liability, the prices are not current, or price quotations vary substantially either over time or among market makers.
The following table presents our financial assets and liabilities measured and recorded at fair value on a recurring basis using the above input categories:
 As of December 31, 2024
 Level 1Level 2Level 3Total
 (in thousands)
Description:
Assets:
U.S. government agencies$224,299 $— $— $224,299 
Foreign currency forward contracts designated as cash flow hedges (prepaid expenses and other current assets)— 96 — 96 
Total assets$224,299 $96 $— $224,395 
Liabilities:
Contingent consideration (other current liabilities and other long-term liabilities)$— $— $12,422 $12,422 
Foreign currency forward contracts designated as cash flow hedges (other current and long-term liabilities)— 1,415 — 1,415 
Total liabilities$— $1,415 $12,422 $13,837 
 As of December 31, 2023
 Level 1Level 2Level 3Total
 (in thousands)
Description:
Assets:
U.S. government agencies$223,222 $— $— $223,222 
Agency bonds— 2,493 — 2,493 
Foreign currency forward contracts designated as cash flow hedges (prepaid expenses and other current assets and other assets)— 1,322 — 1,322 
Total assets$223,222 $3,815 $— $227,037 
Liabilities:
Foreign currency forward contracts designated as cash flow hedges (other current liabilities)$— $55 $— $55 
Total liabilities$— $55 $— $55 
Cash and cash equivalents are excluded from the table above as carrying amounts reported in our consolidated balance sheet equal or approximate fair value. As of December 31, 2024, the fair value of our 2.25%, 0.25% and 1.25% convertible senior notes due 2025, 2027 and 2029, as further described in Note 11, Debt, was $45.2 million, $553.5 million and $284.1 million, respectively, based upon quoted market prices. We consider the fair value of the Notes (as defined in Note 11, Debt) to be a Level 2 measurement due to limited trading activity of the Notes.
v3.25.0.1
Property and Equipment
 12 Months Ended
Dec. 31, 2024
Property, Plant and Equipment [Abstract]  
Property and Equipment
(7)    Property and Equipment
Property and equipment are recorded at cost and consist of the following:
 December 31,December 31,
 20242023
 (in thousands)
Computer equipment and software$28,789 $26,442 
Furniture and fixtures 10,960 10,850 
Leasehold improvements57,051 56,151 
Total96,800 93,443 
Less accumulated depreciation(64,555)(53,801)
Property and equipment, net$32,245 $39,642 
We recorded depreciation expense of $11.1 million, $14.0 million and $13.6 million for the years ended December 31, 2024, 2023 and 2022, respectively.
v3.25.0.1
Goodwill and Intangibles
 12 Months Ended
Dec. 31, 2024
Goodwill and Intangible Assets Disclosure [Abstract]  
Goodwill and Intangibles
(8)    Goodwill and Intangibles
Goodwill was $575.3 million and $536.4 million as of December 31, 2024 and December 31, 2023, respectively.
The following table displays the changes in the gross carrying amount of goodwill:
 Amount
 (in thousands)
Balance at December 31, 2022$515,631 
Minerva acquisition20,720 
Balance at December 31, 2023$536,351 
Noetic acquisition38,917 
Balance at December 31, 2024$575,268 
The following table presents details of our intangible assets which include acquired identifiable intangible assets and capitalized internal-use software costs:
 Weighted-
Average Estimated Useful Life (years)		As of December 31, 2024As of December 31, 2023
 Gross Carrying
Amount		Accumulated
Amortization		Net Book ValueGross Carrying
Amount		Accumulated
Amortization		Net Book Value
  (in thousands)
Intangible assets subject to amortization:
Developed technology6.1$146,855 $(94,193)$52,662 $135,355 $(77,031)$58,324 
Customer relationships4.512,000 (10,363)1,637 12,000 (7,755)4,245 
Trade names3.12,619 (2,559)60 2,619 (2,379)240 
Total acquired intangible assets$161,474 $(107,115)$54,359 $149,974 $(87,164)$62,810 
Internal-use software3.068,878 (37,518)31,360 55,371 (23,635)31,736 
Total intangible assets$230,352 $(144,633)$85,719 $205,345 $(110,799)$94,546 
Intangible assets are expensed on a straight-line basis over the useful life of the asset. Amortization expense was $33.8 million, $31.9 million and $27.5 million for the years ended December 31, 2024, 2023 and 2022, respectively.
Estimated future amortization expense of the acquired identifiable intangible assets and completed capitalized internal-use software costs as of December 31, 2024 was as follows (in thousands):
2025$32,532 
202622,432 
202710,016 
20283,243 
20293,243 
2030 and thereafter4,409 
Total$75,875 
The table above excludes the impact of $9.8 million of capitalized internal-use software costs for projects that have not been completed as of December 31, 2024, and therefore, all the costs associated with these projects have not been incurred.
v3.25.0.1
Deferred Contract Acquisition and Fulfillment Costs
 12 Months Ended
Dec. 31, 2024
Revenue from Contract with Customer [Abstract]  
Deferred Contract Acquisition and Fulfillment Costs
(3)    Revenue from Contracts with Customers
The following table summarizes the revenue by region based on the shipping address of customers who have contracted to use our product or service for the years ended December 31, 2024, 2023 and 2022:
Year Ended December 31,
202420232022
(in thousands)
North America$643,405 $607,448 $541,812 
Rest of world200,602 170,259 143,271 
Total revenue$844,007 $777,707 $685,083 
Transaction Price Allocated to the Remaining Performance Obligations
The following table includes estimated revenue expected to be recognized in the future related to performance obligations that are unsatisfied or partially unsatisfied as of December 31, 2024. The estimated revenues do not include unexercised contract renewals.
Next Twelve MonthsThereafter
 (in thousands)
Product subscriptions$587,450 $291,435 
Professional services14,167 5,334 
Total$601,617 $296,769 
(9)    Deferred Contract Acquisitions and Fulfillment Costs
The following table summarizes the activity of the deferred contract acquisition and fulfillment costs, which primarily consist of capitalized sales commissions, for the years ended December 31, 2024 and 2023:
Year Ended December 31,
20242023
(in thousands)
Beginning balance$121,609 $103,075 
Capitalization of contract acquisition and fulfillment costs57,796 60,528 
Amortization of deferred contract acquisition and fulfillment costs(53,599)(41,994)
Ending balance$125,806 $121,609 
v3.25.0.1
Derivative and Hedging Activities
 12 Months Ended
Dec. 31, 2024
Derivative Instruments and Hedging Activities Disclosure [Abstract]  
Derivatives and Hedging Activities
(10)    Derivative and Hedging Activities
To mitigate our exposure to foreign currency fluctuations resulting from certain expenses denominated in certain foreign currencies, we enter into forward contracts that are designated as cash flow hedging instruments. These forward contracts have contractual maturities of eighteen months or less, and as of December 31, 2024 and December 31, 2023, outstanding forward contracts had a total notional value of $50.4 million and $49.5 million, respectively. The notional value represents the gross amount of foreign currency that will be bought or sold upon maturity of the forward contract. During the years ended December 31, 2024 and 2023, all cash flow hedges were considered effective. Refer to Note 6, Fair Value Measurements, for the fair values of our outstanding derivative instruments.
v3.25.0.1
Debt
 12 Months Ended
Dec. 31, 2024
Debt Disclosure [Abstract]  
Debt
(11)    Debt
Convertible Senior Notes
In May 2020, we issued $230.0 million aggregate principal amount of convertible senior notes due May 1, 2025 (the “2025 Notes”), in March 2021, we issued $600.0 million aggregate principal amount of convertible senior notes due March 15, 2027 (the “2027 Notes”) and in September 2023, we issued $300.0 million aggregate principal amount of convertible senior notes due March 15, 2029 (the “2029 Notes”) (collectively, the “Notes”). In September 2023, we used $201.0 million of the proceeds from the issuance of the 2029 Notes to repurchase and retire $184.0 million aggregate principal amount of the 2025 Notes and paid accrued and unpaid interest thereon. Further details of the Notes are as follows:
IssuanceMaturity DateInterest RateFirst Interest Payment DateEffective Interest RateSemi-Annual Interest Payment DatesInitial Conversion Rate per $1,000 PrincipalInitial Conversion PriceNumber of Shares (in millions)
2025 NotesMay 1, 20252.25%November 1, 20202.88%May 1 and November 116.3875$61.02 0.8
2027 NotesMarch 15, 20270.25%September 15, 20210.67%March 15 and September 159.6734$103.38 5.8
2029 NotesMarch 15, 20291.25%March 15, 20241.69%March 15 and September 1515.4213$64.85 4.6
The 2025 Notes, the 2027 Notes and the 2029 Notes are senior unsecured obligations, do not contain any financial covenants and are governed by indentures between the Company, as issuer, and U.S. Trust Company, Bank National Association, as trustee (the “Indentures”). The total net proceeds from the 2025 Notes, the 2027 Notes and the 2029 Notes offerings, after deducting initial purchase discounts and debt issuance costs, were $222.8 million, $585.0 million and $292.0 million, respectively.
As of December 31, 2024, the 2027 Notes and the 2029 Notes were not convertible at the option of the holders. The 2025 Notes became convertible at the option of the holders effective November 1, 2024.
The holders may convert the 2025 Notes, the 2027 Notes and the 2029 Notes at any time on or after November 1, 2024, December 15, 2026 and December 15, 2028, respectively, until the close of business on the second scheduled trading day immediately preceding the maturity date, regardless of the circumstances set forth above. Upon conversion, we will pay or deliver, as the case may be, cash, shares of our common stock or a combination of cash and shares of our common stock, at our election, in the manner and subject to the terms and conditions provided in the Indentures.
If we undergo a fundamental change (as set forth in the Indentures) at any time prior to the maturity date, holders of the Notes will have the right, at their option, to require us to repurchase for cash all or any portion of their Notes at a repurchase price equal to 100% of the principal amount of the Notes to be repurchased, plus accrued and unpaid interest to, but excluding, the fundamental change repurchase date. In addition, following certain corporate events that occur prior to the maturity date or following our issuance of a notice of redemption, in each case as described in the Indentures, we will increase the conversion rate for a holder of the Notes who elects to convert its Notes in connection with such a corporate event or during the related redemption period in certain circumstances.
Accounting for the Notes
In accounting for the issuance of the Notes, the principal less debt issuance costs are recorded as debt on our consolidated balance sheet. The debt issuance costs are amortized to interest expense using the effective interest method over the contractual term of the Notes.
The net carrying amount of the Notes as of December 31, 2024 and December 31, 2023 was as follows (in thousands):
2025 Notes2027 Notes2029 Notes
PrincipalUnamortized debt issuance costsTotalPrincipalUnamortized debt issuance costsTotalPrincipalUnamortized debt issuance costsTotal
Balance at December 31, 2023$45,992 $(404)$45,588 $600,000 $(8,077)$591,923 $300,000 $(7,515)$292,485 
Amortization of debt issuance costs— 307 307 — 2,513 2,513 — 1,435 1,435 
Balance at December 31, 2024$45,992 $(97)$45,895 $600,000 $(5,564)$594,436 $300,000 $(6,080)$293,920 
Interest expense related to the Notes was as follows (in thousands):
Year Ended December 31,
202420232022
2025 Notes2027 Notes2029 NotesTotal2025 Notes2027 Notes2029 NotesTotal2025 Notes2027 NotesTotal
Contractual interest expense$1,035 $1,500 $3,749 $6,284 $3,795 $1,500 $1,167 $6,462 $5,174 $1,502 $6,676 
Amortization of debt issuance costs307 2,513 1,435 4,255 1,066 2,487 394 3,947 1,4252,4683,893
Induced conversion expense— — — — 53,889 — — 53,889 — — — 
Total interest expense$1,342 $4,013 $5,184 $10,539 $58,750 $3,987 $1,561 $64,298 $6,599 $3,970 $10,569 
Capped Calls
In connection with the offering of the 2025 Notes, the 2027 Notes and the 2029 Notes, we entered into privately negotiated capped call transactions with certain counterparties (the “2025 Capped Calls”, “2027 Capped Calls” and “2029 Capped Calls”) (collectively, the “Capped Calls”).
The Capped Calls are expected to reduce potential dilution to our common stock upon conversion of a given series of notes and/or offset any cash payments that we are required to make in excess of the principal amount of converted notes of such series, as the case may be, with such reduction and/or offset subject to a cap. The Capped Calls are subject to adjustment upon the occurrence of certain specified extraordinary events affecting us, including merger events, tender offers and announcement events. In addition, the Capped Calls are subject to certain specified additional disruption events that may give rise to a termination of the Capped Calls, including nationalization, insolvency or delisting, changes in law, failures to deliver, insolvency filings and hedging disruptions.
The following table sets forth other key terms and premiums paid for the Capped Calls related to each series of Notes:
Capped Calls Entered into in Connection with the Issuance of the 2025 NotesCapped Calls Entered into in Connection with the Issuance of the 2027 NotesCapped Calls Entered into in Connection with the Issuance of the 2029 Notes
Initial strike price, subject to certain adjustments$61.02 $103.38 $64.85 
Cap price, subject to certain adjustments$93.88 $159.04 $97.88 
Total premium paid (in thousands)$27,255 $76,020 $36,570 
Expiration datesMarch 4, 2025 - April 29, 2025January 1, 2027 - March 11, 2027February 13, 2029 - March 13, 2029
For accounting purposes, the 2025 Capped Calls, the 2027 Capped Calls and the 2029 Capped Calls are separate transactions, and not part of the terms of the 2025 Notes, the 2027 Notes and the 2029 Notes. The 2025 Capped Calls, 2027 Capped Calls and 2029 Capped Calls are recorded in stockholders' equity and are not accounted for as derivatives.
Credit Agreement
In April 2020, we entered into a Credit and Security Agreement, with KeyBank National Association that provided for a $30.0 million revolving credit facility, with a letter of credit sublimit of $15.0 million and an accordion feature under which we could increase the credit facility to up to $70.0 million. In May 2020, we utilized the accordion feature to increase the credit facility to $50.0 million.
In December 2021, we entered into an Amendment Agreement in respect of our Credit and Security Agreement (as amended, the "Credit Agreement"), with KeyBank National Association, to, among other things, increase the credit facility from $50.0 million to $100.0 million and extend the maturity date to December 22, 2024. The Credit Agreement provided for a $100.0 million revolving credit facility, with a letter of credit sublimit of $15.0 million, and an accordion feature under which we could increase the credit facility to up to $150.0 million. We incurred fees of
$0.4 million in connection with entering into the Credit Agreement, which were recorded in other current assets on the consolidated balance sheet and amortized on a straight-line basis over the contractual term of the arrangement. The commitment fee of 0.2% per annum on the unused portion of the credit facility is expensed as incurred and included within interest expense on the consolidated statement of operations. The Credit Agreement contained certain financial covenants including a requirement that we maintain specified minimum recurring revenue and liquidity amounts.
The borrowings under the Credit Agreement bear interest, at our option, at a rate equal to either (i) term SOFR plus a credit spread adjustment of 0.10% per annum plus a margin of 2.50% per annum or (ii) the alternate base rate (subject to a floor), plus an applicable margin equal to 0% per annum.
As noted above, the Credit Agreement matured on December 22, 2024.
v3.25.0.1
Leases
 12 Months Ended
Dec. 31, 2024
Leases [Abstract]  
Leases
(12)    Leases
Our leases primarily relate to office facilities that have remaining terms of up to 7.3 years, some of which include one or more options to renew with renewal terms of up to 5 years and some of which include options to terminate the leases within 1 year. All of our leases are classified as operating leases.
The components of lease expense were as follows:
Year Ended December 31,
20242023
(in thousands)
Operating lease costs$16,129 $16,776 
Short-term lease costs951 1,259 
Variable lease costs8,825 8,219 
Total lease costs$25,905 $26,254 
Supplemental balance sheet information related to the operating leases was as follows:
As of December 31, 2024As of December 31, 2023
Weighted average remaining lease term (in years) - operating leases4.95.7
Weighted average discount rate - operating leases6.4 %6.4 %
Supplemental cash flow information related to leases was as follows:
Year Ended December 31,
20242023
 (in thousands)
Cash paid for amounts included in the measurement of lease liabilities$22,870 $19,999 
ROU assets obtained in exchange for new lease obligations$4,488 $8,119 
Maturities of operating lease liabilities as of December 31, 2024 were as follows (in thousands):
2025$20,926 
202618,941 
202718,761 
202819,333 
202916,601 
2030 and thereafter3,275 
Total lease payments$97,837 
Less: imputed interest(13,914)
Total$83,923 
During the year ended December 31, 2023, we determined that triggering events occurred which indicated that the carrying value of our right-of-use (“ROU”) and other lease-related assets related to a change in usage of certain idle
office space at our corporate headquarters in Boston, Massachusetts as well as idle office spaces located in Plano, Texas; Los Angeles, California; and Toronto, Canada may not be fully recoverable. As a result, we utilized discounted cash flow models to estimate the fair value of the asset groups taking into consideration the time period it will take to obtain sublessees, the applicable discount rate and the anticipated sublease income and calculated the corresponding impairment loss. We used prices and other relevant information generated by recent market transactions involving similar or comparable assets, as well as our historical experience in real estate transactions. In the year ended December 31, 2023, we recorded impairment losses of $30.8 million, respectively, related to these idle office spaces, consisting of $22.2 million, related to ROU assets and $8.6 million related to leasehold improvements associated with these leased office spaces.
v3.25.0.1
Stock-Based Compensation
 12 Months Ended
Dec. 31, 2024
Share-Based Payment Arrangement [Abstract]  
Stock-Based Compensation
(13)    Stock-Based Compensation
(a)    General
In connection with our IPO, our board of directors resolved not to make future grants under our 2011 Stock Option and Grant Plan (the “2011 Plan”). The 2011 Plan will continue to govern outstanding awards granted thereunder. The 2011 Plan provided for the grant of qualified incentive stock options and nonqualified stock options or other awards such as restricted stock awards (“RSAs”) to our employees, officers, directors and outside consultants.
In July 2015, our board of directors adopted and our stockholders approved our 2015 Equity Incentive Plan (the “2015 Plan”). We initially reserved 800,000 shares of our common stock for the issuance of awards under the 2015 Plan plus the number of shares of common stock reserved for issuance under the 2011 Plan at the time the 2015 Plan became effective. The 2015 Plan also provides that (i) any shares subject to awards granted under the 2011 Plan that would have otherwise returned to the 2011 Plan (such as upon the expiration or termination of a stock award prior to vesting) will be added to, and available for issuance under, the 2015 Plan and (ii) the number of shares reserved and available for issuance under the 2015 Plan automatically increases each January 1, beginning on January 1, 2016, by 4% of the outstanding number of shares of our common stock on the immediately preceding December 31 (known as the “evergreen” provision) or such lesser number of shares as determined by our board of directors. Additionally, on October 8, 2015, our board of directors amended the 2015 Plan to reserve an additional 1,500,000 shares of our common stock for issuance of inducement awards.
As of December 31, 2024, the shares of common stock authorized to be issued under the 2015 Plan totaled 25,042,693 and there were 6,118,316 shares of common stock available for grant.
We recognize stock-based compensation expense for all awards on a straight-line basis over the applicable vesting period, which is generally three to four years.
Stock-based compensation expense for restricted stock units (“RSUs”), performance-based restricted stock units (“PSUs”), stock options, purchase rights issued under our employee stock purchase plan (“ESPP”) and earnout consideration and key employee consideration shares related to acquisitions was classified in the accompanying consolidated statements of operations as follows:
 Year Ended December 31,
 202420232022
 (in thousands)
Stock-based compensation expense:
Cost of revenue$12,208 $11,005 $10,367 
Research and development37,566 39,183 49,940 
Sales and marketing28,718 30,350 31,217 
General and administrative29,469 31,098 28,378 
Total stock-based compensation expense$107,961 $111,636 $119,902 
The unrecognized stock-based compensation expense and estimated weighted average amortization periods remaining at December 31, 2024 was as follows:
 Unrecognized Compensation ExpenseWeighted-Average Amortization Period Remaining
 (in thousands)(in years)
RSUs and PSUs$137,525 1.9
Purchase rights under our ESPP$1,734 0.6
Earnout and key employee consideration shares$7,391 1.8
Our Compensation Committee adopted and approved the performance goals, targets and payout formulas for our 2024, 2023 and 2022 bonus plans, including permitting our executive officers and certain other employees the opportunity to receive payment of their earned bonuses in the form of common stock (in lieu of cash). For the years ended December 31, 2024, 2023, and 2022, we recognized stock-based compensation expense related to such bonuses in the amount of $0.9 million, $1.6 million and $1.0 million, respectively, based on the probable expected performance against the pre-established corporate financial objectives as of December 31, 2024, 2023 and 2022. For employees, including executive officers, who elect to receive their bonuses in the form of common stock (in lieu of cash), the payouts are expected to be made in the form of fully vested stock awards in the first quarter of the following year pursuant to our 2015 Equity Incentive Plan, as amended. The number of shares underlying such awards is determined by dividing the dollar value of the actual bonus award payment by the closing price per share of our common stock on the date of grant.
(b)Restricted Stock, Restricted Stock Units and Performance-Based Restricted Stock Units
RSUs and PSUs activity during 2024, 2023, and 2022 was as follows:
 Shares        Weighted-
Average Grant
Date Fair
Value
Unvested balance as of December 31, 20212,778,877 $74.40 
Granted2,327,216 86.78 
Vested(1,481,333)69.80 
Forfeited(623,317)85.93 
Unvested balance as of December 31, 20223,001,443 83.88 
Granted2,304,140 48.83 (1)
Vested(1,453,713)73.29 (1)
Forfeited(1,137,444)67.93 (1)
Unvested balance as of December 31, 20232,714,426 66.40 (1)
Granted2,563,810 53.99 
Vested(1,462,352)64.78 
Forfeited(962,649)62.16 
Unvested balance as of December 31, 20242,853,235 $57.25 
(1) The weighted average grant date fair values for RSUs and PSUs granted, vested and forfeited during fiscal year 2023, as well as the weighted average grant date fair value of awards unvested as of December 31, 2023 have been revised from prior period disclosures. Refer to Note 20, Immaterial Correction of an Error, for further information.
In January 2024, our Compensation Committee awarded 279,570 PSUs that required the achievement of net annualized recurring revenue (“Net ARR”) and Adjusted EBITDA targets for the 2024 full-year to earn any payout. Net ARR is defined as the change in the annual value of all recurring revenue related to contracts in place at year end. In addition, the portion of the PSUs that are earned would be capped at a maximum of 200% of the target level payout and if certain net ARR or Adjusted EBITDA goals were not met, no PSUs will be earned. The PSUs have a performance period of one year and the earned PSUs will vest in three equal installments following each of the first, second and third anniversary of the vesting commencement date, subject to the participant’s continuous service as of each such date. The 2024 target level attainment was 50% and in the year ended December 31, 2024, we recorded $3.4 million of stock-based compensation expense related to these PSUs based on that level of attainment of the performance criteria.
In July 2024, our Compensation Committee awarded 19,605 PSUs that required the achievement of certain milestones related to the integration of Noetic. The PSUs have three measurement and vesting dates through September 15, 2025, subject to the participant's continuous service as of each such date. If the milestones are not achieved, no PSUs will be earned. In the year ended December 31, 2024, we recorded $0.6 million of stock-based compensation expense related to these PSUs based on estimated achievement of the performance criteria.
(c)Stock Options
The following tables summarizes information about stock option activity during the reporting periods:
Shares        Weighted
Average
Exercise
Price		Weighted
Average
Remaining
Contractual Life
(in years)		Aggregate
Intrinsic
Value
(in thousands)
Outstanding as of December 31, 20211,411,387 $10.74 $150,951 
Granted— — 
Exercised(479,223)6.92 $20,764 
Forfeited/cancelled(38)21.15 
Outstanding as of December 31, 2022932,126 12.70 $19,837 
Granted— — 
Exercised(215,856)14.14 $6,519 
Forfeited/cancelled— — 
Outstanding as of December 31, 2023716,270 12.26 $32,115 
Granted— — 
Exercised(133,182)11.75 $5,013 
Forfeited/cancelled(450)7.73 
Outstanding as of December 31, 2024582,638 12.38 1.2$16,225 
Vested and exercisable as of December 31, 2024582,638 $12.38 1.2$16,225 
(d)Employee Stock Purchase Plan
The number of shares reserved and available for issuance under our 2015 Employee Stock Purchase Plan (“ESPP”) automatically increases each January 1, beginning on January 1, 2016, by 1% of the outstanding number of shares of our common stock on the immediately preceding December 31 (known as the “evergreen” provision) or such lesser number of shares as determined by our board of directors. As of December 31, 2024, the shares of common stock authorized to be issued under the ESPP totaled 5,370,139 and there were 3,076,461 shares of common stock available for grant.
Under the ESPP, employees may set aside up to 15% of their gross earnings, on an after-tax basis, to purchase our common shares at a discounted price, which is calculated at 85% of the lesser of: (i) the market value of our common stock at the beginning of each offering period and (ii) the market value of our common stock on the applicable purchase date.
The fair value of shares issued under our ESPP is estimated on the grant date using the Black-Scholes option pricing model. The expected term represents the term from the first day of the offering period to the purchase dates within each offering period. The expected volatility is based on the historical volatilities of our own common stock. The risk-free interest rate is based on U.S. Treasury zero-coupon securities with maturities consistent with the estimated expected term. We have not paid dividends on our common stock nor do we expect to pay dividends in the foreseeable future.
The following table reflects the assumptions used in the Black-Scholes option pricing model to calculate the expense related to the ESPP:
 Year Ended December 31,
 202420232022
Expected term (in years)
0.5 - 1.0
0.5 - 1.0
0.5 - 1.0
Expected volatility
37 - 47%
47 - 68%
37 - 57%
Risk-free interest rate
4.0 – 5.4%
4.5 – 5.5%
0.1 – 4.0%
Expected dividend yield
—
—
—
Grant date fair value per share
$9.96 – $17.25
$11.70 – $20.07
$15.50 –$29.58

The following table provides the number of common shares issued to employees, the purchase prices and aggregate proceeds for the purchase dates in the years ended December 31, 2024, 2023 and 2022:
 September 13, 2024March 15, 2024September 15, 2023March 15, 2023September 15, 2022March 15, 2022
 
Common shares issued144,445147,445152,419177,886218,314 80,747 
Purchase prices$29.08
$33.78 and $39.78
$33.78$34.71$45.31
$67.59 and $81.37
Aggregate proceeds$4.2 million$5.0 million$5.1 million$6.1 million$6.2 million$5.7 million
v3.25.0.1
Income Taxes
 12 Months Ended
Dec. 31, 2024
Income Tax Disclosure [Abstract]  
Income Taxes
(14)    Income Taxes
We have provided for current and deferred U.S. federal, state, and foreign income taxes for all tax jurisdictions in which we operate.
Income (loss) before income taxes included in the consolidated statements of operations was as follows:
 Year Ended December 31,
 202420232022
 (in thousands)
United States$35,699 $(139,295)$(109,381)
Foreign5,756 (14,038)(12,924)
Income (loss) before income taxes$41,455 $(153,333)$(122,305)
Income tax expense included in the consolidated statements of operations was as follows:
 Year Ended December 31,
 202420232022
 (in thousands)
Current:
Federal$2,426 $428 $1 
State and local2,848 1,361 243 
Foreign9,864 3,317 3,608 
Total current tax expense15,138 5,106 3,852 
Deferred:
Federal12 9 10 
State and local— 2 2 
Foreign779 (5,635)(1,452)
Total deferred tax expense (benefit)791 (5,624)(1,440)
Total income tax expense (benefit)$15,929 $(518)$2,412 
The reconciliation of the federal statutory rate of 21% to the effective income tax rate for the years ended December 31, 2024, 2023 and 2022 was as follows:
 Year Ended December 31,
 202420232022
Federal statutory rate21.0 %21.0 %21.0 %
State taxes, net of federal benefit6.0 (0.5)(0.1)
Permanent differences7.0 (0.9)(0.2)
Stock-based compensation15.7 (7.0)(2.4)
Research and development credits(18.5)0.9 1.4 
Foreign rate differential3.0 0.3 0.1 
Change in valuation allowance(11.2)(3.2)(24.8)
Excess officers' compensation5.5 (1.7)(3.1)
Tax rate change(13.4)(3.4)7.8 
Induced conversion expense— (9.5)— 
Tax reserves12.6 (0.1)(0.2)
Provision to return(0.5)5.2 (0.3)
U.S. taxation of international operations3.5 — — 
Other7.7 (0.8)(1.1)
Effective income tax rate38.4 %0.3 %(1.9)%
Net deferred tax assets and liabilities, as set forth in the table below, reflect the impact of temporary differences between the amounts of assets and liabilities recorded for financial statement purposes and such amounts measured in accordance with tax laws:
 As of December 31,
 20242023
 (in thousands)
Deferred tax assets:
Accruals and reserves$824 $335 
Net operating loss carryforwards121,343 137,706 
Deferred revenue3,192 15,726 
Depreciation4,304 836 
Research and development credits13,697 14,116 
Capitalized research and development90,965 63,234 
Operating lease liabilities18,164 24,012 
Stock-based compensation12,290 9,113 
Tax credits— 1,148 
Other3,369 1,170 
Gross deferred tax assets$268,148 $267,396 
Valuation allowance(229,283)(231,661)
Total deferred tax assets$38,865 $35,735 
Deferred tax liabilities:
Operating lease ROU assets$(10,329)$(11,307)
Deferred contract acquisition and fulfillment costs(26,277)(24,251)
Other(2,944)(65)
Total deferred tax liabilities$(39,550)$(35,623)
Net deferred tax liabilities$(685)$112 
As of December 31, 2024, we had federal and state net operating loss (“NOL”) carryforwards in the United States of $265.6 million and $306.0 million, respectively. Of these amounts, $251.5 million of federal and $47.8 million of state NOLs can be carried forward indefinitely. We had foreign NOL carryforwards of $215.5 million that can be carried
forward indefinitely. We also had federal, state and foreign research and development credit carryforwards of $9.3 million, $4.1 million and $0.3 million as of December 31, 2024, respectively. The remaining NOLs and credits expire at various dates beginning in 2025.
As of December 31, 2024, our ability to utilize NOLs remains limited under IRC Sections 382 and 383 due to an ownership change we experienced in January 2018. We will not be precluded from realizing the NOL carryforwards and tax credits, but may be limited in the amount we could utilize in any given tax year in the event that the federal and state taxable income exceeds the limitation imposed by Section 382. The amount of the annual limitation is determined based on our value immediately prior to the ownership change. Subsequent ownership changes may further affect the limitation in future years.
Beginning January 1, 2022, the Tax Cuts and Jobs Act eliminated the option to deduct research and development expenditures in the current year and requires taxpayers to capitalize such expenses pursuant to Internal Revenue Code Section 174. The capitalized expenses are amortized over a 5-year period for domestic expenses and a 15-year period for foreign expenses. We have included the impact of this provision, which results in additional deferred tax assets of approximately $91.0 million and $63.2 million as of December 31, 2024 and 2023, respectively.
During the fourth quarter of 2024, we completed an analysis of our U.S. federal research and development tax credits. As a result, we recorded additional credits of $4.2 million, which have a full valuation allowance and are subject to the potential limitations discussed above.
Valuation Allowances
As of December 31, 2024, we have evaluated the need for a valuation allowance on our deferred tax assets. In making this determination, management considered whether it is more likely than not that some portion or all of the deferred tax assets will not be realized.
The Company's valuation allowance decreased by $2.4 million for the year ended December 31, 2024, due primarily to a decrease in operating losses, as well as a decrease of $1.7 million related to release of our valuation allowance related to our net deferred tax assets in Israel, offset by an increase related in capitalized research and development. The release of the valuation allowance in Israel was primarily the result of an internal restructuring, which changed the overall deferred tax position of the Israeli subsidiary.
Due to our history of generating losses, we continue to record a valuation allowance against our net deferred tax assets in the United States and U.K and against the net operating loss carryforwards of our Ireland subsidiary. We may release additional valuation allowances in future periods if objective negative evidence of cumulative losses is no longer present and positive evidence, such as projection of future growth, supports the realization of such deferred tax assets. Release of all or a portion of these valuation allowances would result in a decrease in the provision for income taxes in the period of the release.
Unrecognized Tax Benefits
We file income tax returns in all jurisdictions in which we operate. In the normal course of business, we are subject to examination by federal, state, and foreign tax authorities, where applicable. The statute of limitations for these jurisdictions is generally three to seven years. However, to the extent we utilize net operating losses or other similar carryforward attributes such as credits, the statute remains open to the extent of the net operating losses or credits that are utilized. We are currently under tax examination in the state of Massachusetts for tax years 2023 through 2024 and in Israel for tax years 2018 through 2022.

The following is a reconciliation of the beginning and ending balances of unrecognized tax benefits (excluding interest and penalties), in thousands:
Balance, January 1, 2024$5,041 
Additions based on tax positions related to the current year4,520 
Additions for tax positions of prior years315 
Reductions for tax positions of prior years— 
Settlements— 
Balance, December 31, 2024$9,876 
We have established reserves to provide for additional income taxes that management believes will more likely than not be due in future years. The reserves have been established based upon our assessment of the potential exposure. The change in our reserves during the year ended December 31, 2024 primarily relates to an intercompany sale of
intellectual property as part of a post-acquisition integration strategy related to our acquisition of Minerva Labs Ltd. We recorded $0.4 million of interest in 2024 related to unrecognized tax benefits. During the next twelve months, the Company does not expect any change to its unrecognized tax benefits other than the accrual of interest in the normal course of business. We recognize interest and penalties related to unrecognized tax benefits in the income tax line of the statement of operations.
From time to time, we may receive income tax assessments from taxing authorities asserting additional tax liabilities owed by the Company. During the quarter ended June 30, 2024, we received an initial assessment from the Israel Tax Authority (“ITA”) of approximately 324 million Israeli New Shekels (approximately $88 million, based upon exchange rates as of December 31, 2024 between the Israeli New Shekel and the US Dollar) related to fiscal year 2021. Based on our interpretation of the regulations and available case law, we believe that the tax positions we have taken on our filed tax return in Israel are sustainable and we intend to defend our position through all available means. As such, we have not recorded any impact of the ITA assessment in our consolidated financial statements for the year ended December 31, 2024. We are continuing to monitor developments related to this matter and its impact on our existing income tax reserves for all open years. If we are unsuccessful in sustaining our tax position in this matter, our financial condition and results of operations would be adversely affected.
Other Tax Matters
As of December 31, 2024, we have accumulated earnings generated by foreign subsidiaries. We have not recognized a deferred tax liability for the majority of these unremitted earnings as our intention is to indefinitely reinvest these accumulated earnings in our foreign subsidiaries. During the fourth quarter of 2024, we made the determination that the unremitted foreign earnings associated with our Israel legal entity are no longer indefinitely reinvested. We recorded a liability of $0.1 million related to the taxes expected to be imposed upon the repatriation of these unremitted foreign earnings that are not considered indefinitely reinvested.
The Organization for Economic Co-operation and Development  (“OECD”) Pillar Two Model Rules (“Pillar Two”) for the global 15% minimum tax have been adopted in a number of jurisdictions in which we operate. We are continuing to evaluate the potential impact on future periods of the Pillar Two framework, pending legislative adoption by additional individual countries.
v3.25.0.1
Net Income (Loss) Per Share
 12 Months Ended
Dec. 31, 2024
Earnings Per Share [Abstract]  
Net Income (Loss) Per Share
(15)    Net Income (Loss) per Share
The following table summarizes the computation of basic and diluted net income (loss) per share of our common stock for the years ended December 31, 2024, 2023 and 2022:
 Year Ended December 31,
 202420232022
 (in thousands, except share and per share data)
Numerator:
Net income (loss) used to calculate net income (loss), basic$25,526 $(152,815)$(124,717)
Denominator:
Weighted-average common shares outstanding, basic62,607,583 60,756,087 58,552,065 
Weighted average effect of dilutive shares:
Dilutive effect of equity incentive plans576,068 — — 
Weighted-average common shares outstanding, diluted63,183,651 60,756,087 58,552,065 
Net income (loss) per share, basic$0.41 $(2.52)$(2.13)
Net income (loss) per share, diluted$0.40 $(2.52)$(2.13)
We intend to settle any conversion of our 2025 Notes, 2027 Notes and 2029 Notes in cash, shares, or a combination thereof. The dilutive impact of the Notes for our calculation of diluted net income (loss) per share is considered using the if-converted method. For the years ended December 31, 2024, 2023 and 2022, the shares underlying the Notes were not considered in the calculation of diluted net income (loss) per share as the effect would have been anti-dilutive.
In connection with the issuance of the 2025 Notes, the 2027 Notes and the 2029 Notes, we entered into the 2025 Capped Calls, 2027 Capped Calls and 2029 Capped Calls, which were not included for the purpose of calculating the number of diluted shares outstanding, as their effect would have been anti-dilutive.
As of December 31, 2024, the 2025 Notes were convertible at the option of the holder, however the 2027 Notes and the 2029 Notes were not convertible at the option of the holder. As of December 31, 2023, and 2022 the 2025 Notes, the 2027 Notes and the 2029 Notes were not convertible at the option of the holder. We had not received any conversion notices through the issuance date of our consolidated financial statements. For disclosure purposes, we have calculated the potentially dilutive effect of the conversion spread, which is included in the table below. The following potentially dilutive securities outstanding have been excluded from the computation of diluted weighted-average shares outstanding for the respective periods below because they would have been anti-dilutive:
 Year Ended December 31,
 202420232022
Options to purchase common stock— 716,270 932,126 
Unvested restricted stock units— 2,983,020 3,001,443 
Common stock issued in conjunction to acquisitions227,316 115,051 74,627 
Shares to be issued under ESPP91,634 103,778 106,965 
Convertible senior notes11,183,611 11,183,611 9,572,955 
Total11,502,561 15,101,730 13,688,116 
v3.25.0.1
Commitments and Contingencies
 12 Months Ended
Dec. 31, 2024
Commitments and Contingencies Disclosure [Abstract]  
Commitments and Contingencies
(16)    Commitments and Contingencies
(a)Purchase Obligations
As of December 31, 2024, we have non-cancellable firm purchase commitments primarily relating to cloud infrastructure services and software subscriptions.
The following table presents details of the future non-cancellable purchase commitments under these agreements as of December 31, 2024 (in thousands):
2025$60,125 
202622,641 
202717,296 
Total$100,062 

In January 2025, we amended our contract with a cloud services provider which increased our total purchase obligation by $93.8 million in 2025, and $125.0 million in each of 2026, 2027, 2028 and 2029, respectively, for a total additional $593.8 million incremental to the amounts that are included in the table above. In addition, the amended contract includes an additional $35.0 million obligation over the five-year period.

(b) Warranty
We provide limited product warranties. Historically, any payments made under these provisions have been immaterial.
(c)Litigation and Claims
From time to time, we may be a party to litigation or subject to claims incident to the ordinary course of business. Although the results of litigation and claims cannot be predicted with certainty, we currently believe that the final outcome of these ordinary course matters will not have a material adverse effect on our business. Regardless of the outcome, litigation can have an adverse impact on us because of defense and settlement costs, diversion of management resources and other factors.
(d)Indemnification Obligations
We agree to standard indemnification provisions in the ordinary course of business. Pursuant to these provisions, we agree to indemnify, hold harmless and reimburse the indemnified party for losses suffered or incurred by the indemnified party, generally our customers, in connection with any United States patent, copyright or other intellectual property infringement claim by any third party arising from the use of our products or services in accordance with the agreement or arising from our gross negligence, willful misconduct or violation of the law (provided that there is not gross or willful misconduct on the part of the
other party) with respect to our products or services. The term of these indemnification provisions is generally perpetual from the time of execution of the agreement. We carry insurance that covers certain third-party claims relating to our services and limits our exposure. We have never incurred costs to defend lawsuits or settle claims related to these indemnification provisions.
As permitted under Delaware law, we have entered into indemnification agreements with our officers and directors, indemnifying them for certain events or occurrences while they serve as officers or directors of the company.
(e) Income Taxes
From time to time, we may receive income tax assessments from taxing authorities asserting additional tax liabilities owed by the Company. During the quarter ended June 30, 2024, we received an initial assessment from the Israel Tax Authority (“ITA”) of approximately 324 million Israeli New Shekels (approximately $88 million, based upon exchange rates as of December 31, 2024 between the Israeli New Shekel and the US Dollar) related to fiscal year 2021. Based on our interpretation of the regulations and available case law, we believe that the tax positions we have taken on our filed tax return in Israel are sustainable and we intend to defend our position through all available means. As such, we have not recorded any impact of the ITA assessment in our consolidated financial statements for the year ended December 31, 2024. We are continuing to monitor developments related to this matter and its impact on our existing income tax reserves for all open years. If we are unsuccessful in sustaining our tax position in this matter, our financial condition and results of operations would be adversely affected.
v3.25.0.1
Employee Benefit Plan
 12 Months Ended
Dec. 31, 2024
Retirement Benefits [Abstract]  
Employee Benefit Plan
(17)    Employee Benefit Plan
In December 2008, we established a discretionary 401(k) plan in which all full-time U.S. employees above the age 18 are eligible to participate after they have been employed for us for 90 days following the applicable date of hire. Matching contributions to the 401(k) plan can be made at our discretion. In 2024, 2023 and 2022, we made discretionary contributions of $3.5 million, $4.3 million and $4.3 million, respectively, to the plan.
v3.25.0.1
Segment Information and Information about Geographic Areas
 12 Months Ended
Dec. 31, 2024
Segment Reporting [Abstract]  
Segment Information and Information about Geographic Areas
(18)    Segment Information and Information about Geographic Areas
We operate in a single reportable segment, providing product subscriptions and professional services to our customers. The segment’s accounting policies are consistent with those described in Note 2, Summary of Significant Accounting Policies. Our chief operating decision maker (“CODM”) is our Chief Executive Officer. One of the measures of profit or loss that is used by our CODM to assess performance and allocate resources is consolidated net income, as reported in the consolidated statements of operations. Consolidated net income is used by our CODM in monitoring actual versus budgeted results as well as in benchmarking against our competitors, which are used in assessing performance of the segment.
The following table includes segment revenue, segment profit or loss, significant segment expenses regularly provided to the CODM and other segment expenses for the years ended December 31, 2024, 2023 and 2022:
 Year Ended December 31,
 202420232022
 (in thousands)
Total revenue$844,007 $777,707 $685,083 
Adjusted total cost of revenue1
221,664 202,655 185,489 
Adjusted research and development1
135,560 138,754 140,030 
Adjusted sales and marketing1
267,483 280,703 273,482 
Adjusted general and administrative1
55,792 53,374 55,696 
Other segment expenses2
137,982 255,036 155,103 
Net income (loss)$25,526 $(152,815)$(124,717)
1 Adjusted total cost of revenue excludes the impact of stock-based compensation expense and amortization of acquired intangible assets. Adjusted research and development excludes the impact of stock-based compensation expense. Adjusted sales and marketing excludes the impact of stock-based compensation and amortization of acquired intangible assets. Adjusted general and administrative excludes the impact of stock-based compensation, amortization of acquired intangible assets, acquisition-related expenses and litigation-related expenses.
2 Other segment expenses include stock-based compensation expense, amortization of acquired intangible assets, acquisition-related expenses, litigation-related expenses, impairment of long-lived assets, restructuring expense, interest income, interest expense, other income (expense) and provision for (benefit from) income taxes. See the consolidated financial statements for other financial information regarding our operating segment. 
Net revenues by geographic area presented based upon the location of the customer are as follows:
 Year Ended December 31,
 202420232022
 (in thousands)
North America$643,405 $607,448 $541,812 
Rest of world200,602 170,259 143,271 
Total$844,007 $777,707 $685,083 
Property and equipment, net by geographic area was as follows:
 As of December 31, 2024As of December 31, 2023
 (in thousands)
North America$22,613 $27,609 
Rest of world9,632 12,033 
Total$32,245 $39,642 
v3.25.0.1
Restructuring
 12 Months Ended
Dec. 31, 2024
Restructuring and Related Activities [Abstract]  
Restructuring
(19)    Restructuring
On August 7, 2023, our board of directors approved a restructuring plan that was designed to improve operational efficiencies, reduce operating costs and better align the Company’s workforce with current business needs, top strategic priorities and key growth opportunities (collectively, the “Restructuring Plan”). The Restructuring Plan included a reduction of the Company’s workforce by approximately 16%.
In 2023, we incurred $22.2 million of restructuring charges which were recorded within restructuring in the condensed consolidated statements of operations. In addition, we incurred $1.3 million of stock-based compensation expense related to acceleration of share-based awards. In 2023, we permanently closed certain idle office spaces in Plano, Texas; Los Angeles, California; and Toronto, Canada, which resulted in an impairment loss of $3.6 million. Refer to Note 12, Leases, for further details on the impairment of long-lived assets. As of December 31, 2023, the restructuring liability accrued but not paid totaled $3.8 million, which was included within accrued expenses in the condensed consolidated balance sheets.
During the first quarter of 2024, the execution of the Restructuring Plan was completed and we recorded $(0.2) million of restructuring charges within general and administrative expense in the consolidated statements of operations. Additionally, during the second quarter of 2024, the remaining payments were made, resulting in no remaining restructuring liability as of December 31, 2024.
v3.25.0.1
Immaterial Correction of an Error
 12 Months Ended
Dec. 31, 2024
Accounting Changes and Error Corrections [Abstract]  
Immaterial Correction of an Error
(20)    Immaterial Correction of an Error
During the fourth quarter of 2024, we identified an immaterial error related to stock-based compensation expense associated with certain RSUs and PSUs granted during fiscal years 2023 and 2024 attributable to an improper valuation of the underlying awards, resulting in an understatement of stock-based compensation expense in 2023 and 2024.
In accordance with Staff Accounting Bulletin (“SAB”) No. 99, Materiality, and SAB No. 108, Considering the Effects of Prior Year Misstatements when Quantifying Misstatements in Current Year Financial Statements, the Company evaluated the errors and determined that the related impact was not material to results of operations or financial position for any historical annual or interim period. As a result, we are correcting the errors by adjusting prior period financial statements as of and for each of the quarterly and year-to-date periods shown below. Additionally, Note 13, Stock-Based Compensation, Note 14, Income Taxes and Note 15, Net Income (Loss) per Share, have been adjusted to reflect the correction of the immaterial errors.
The following table sets forth the effect of the immaterial error correction to certain line items of our consolidated statement of operations, consolidated balance sheet and consolidated statement of cash flows as of and for the year ended December 31, 2023:
Year Ended December 31, 2023
As ReportedAdjustmentRevised
(in thousands, except per share amounts)
Consolidated Statement of Operations:
Cost of revenue - product subscriptions$202,904 $236 $203,140 
Cost of revenue - professional services$28,837 $69 $28,906 
Research and development expense$176,776 $1,161 $177,937 
Sales and marketing expense$312,636 $1,025 $313,661 
General and administrative expense$84,276 $1,064 $85,340 
Net income (loss)$(149,260)$(3,555)$(152,815)
Net income (loss) per share, basic$(2.46)$(0.06)$(2.52)
Net income (loss) per share, diluted$(2.46)$(0.06)$(2.52)
Consolidated Statement of Cash Flows:
Net income (loss)$(149,260)$(3,555)$(152,815)
Stock-based compensation expense$108,081 $3,555 $111,636 
Net cash provided by operating activities$104,278 $— $104,278 
As of December 31, 2023
As ReportedAdjustmentRevised
(in thousands)
Consolidated Balance Sheet:
Additional paid-in capital$894,630 $3,555 $898,185 
Accumulated deficit$(1,010,005)$(3,555)$(1,013,560)
Total stockholders' deficit$(118,179)$— $(118,179)
The following tables set forth the effect of the immaterial error corrections to (i) certain line items of our unaudited condensed consolidated statements of operations for the interim periods ended March 31, 2023, June 30, 2023, September 30, 2023 and December 31, 2023, as well as (ii) certain line items of our unaudited condensed consolidated statements of operations and unaudited condensed consolidated statements of cash flows for the interim periods ended March 31, 2024, June 30, 2024 and September 30, 2024. Prospectively, we will effect an immaterial error correction of these unaudited condensed consolidated financial statements for the 2024 interim periods as those statements are reproduced on a comparative basis in our Quarterly Reports on Form 10-Q throughout fiscal year 2025:
Three Months Ended March 31, 2023Three Months Ended June 30, 2023
As ReportedAdjustmentRevisedAs ReportedAdjustmentRevised
(unaudited, in thousands, except per share amounts)(unaudited, in thousands, except per share amounts)
Consolidated Statement of Operations:
Cost of revenue - product subscriptions$48,188 $36 $48,224 $51,148 $78 $51,226 
Cost of revenue - professional services$7,811 $10 $7,821 $7,016 $22 $7,038 
Research and development expense$46,346 $148 $46,494 $50,762 $402 $51,164 
Sales and marketing expense$80,587 $166 $80,753 $83,036 $332 $83,368 
General and administrative expense$24,207 $269 $24,476 $22,888 $562 $23,450 
Net income (loss)$(25,915)$(629)$(26,544)$(66,782)$(1,396)$(68,178)
Net income (loss) per share, basic$(0.43)$(0.01)$(0.44)$(1.10)$(0.03)$(1.13)
Net income (loss) per share, diluted$(0.43)$(0.01)$(0.44)$(1.10)$(0.03)$(1.13)
Three Months Ended September 30, 2023Three Months Ended December 31, 2023
As ReportedAdjustmentRevisedAs ReportedAdjustmentRevised
(unaudited, in thousands, except per share amounts)(unaudited, in thousands, except per share amounts)
Consolidated Statement of Operations:
Cost of revenue - product subscriptions$51,261 $60 $51,321 $52,307 $62 $52,369 
Cost of revenue - professional services$6,569 $21 $6,590 $7,441 $16 $7,457 
Research and development expense$39,940 $309 $40,249 $39,729 $302 $40,031 
Sales and marketing expense$75,699 $284 $75,983 $73,314 $243 $73,557 
General and administrative expense$17,866 $(76)$17,790 $19,314 $309 $19,623 
Net income (loss)$(76,611)$(598)$(77,209)$20,048 $(932)$19,116 
Net income (loss) per share, basic$(1.25)$(0.01)$(1.26)$0.33 $(0.02)$0.31 
Net income (loss) per share, diluted$(1.25)$(0.01)$(1.26)$0.27 $(0.01)$0.26 
Three Months Ended March 31, 2024
As ReportedAdjustmentRevised
(unaudited, in thousands, except per share amounts)
Consolidated Statement of Operations:
Cost of revenue - product subscriptions$54,655 $79 $54,734 
Cost of revenue - professional services$6,248 $12 $6,260 
Research and development expense$40,990 $378 $41,368 
Sales and marketing expense$72,805 $290 $73,095 
General and administrative expense$19,835 $93 $19,928 
Net income (loss)$2,258 $(852)$1,406 
Net income (loss) per share, basic$0.04 $(0.02)$0.02 
Net income (loss) per share, diluted$0.03 $(0.01)$0.02 
Consolidated Statement of Cash Flows:
Net income$2,258 $(852)$1,406 
Stock-based compensation expense$24,893 $852 $25,745 
Net cash provided by operating activities$31,070 $— $31,070 
Three Months Ended June 30, 2024Six Months Ended June 30, 2024
As ReportedAdjustmentRevisedAs ReportedAdjustmentRevised
(unaudited, in thousands, except per share amounts)(unaudited, in thousands, except per share amounts)
Consolidated Statement of Operations:
Cost of revenue - product subscriptions$54,982 $125 $55,107 $109,637 $204 $109,841 
Cost of revenue - professional services$5,866 $19 $5,885 $12,114 $31 $12,145 
Research and development expense$40,056 $392 $40,448 $81,046 $770 $81,816 
Sales and marketing expense$77,795 $331 $78,126 $150,600 $621 $151,221 
General and administrative expense$22,412 $790 $23,202 $42,247 $883 $43,130 
Net income (loss)$8,195 $(1,657)$6,538 $10,453 $(2,509)$7,944 
Net income (loss) per share, basic$0.13 $(0.03)$0.10 $0.13 $(0.05)$0.08 
Net income (loss) per share, diluted$0.11 $(0.02)$0.09 $0.11 $(0.03)$0.08 
Consolidated Statement of Cash Flows:
Net income (loss)$10,453 $(2,509)$7,944 
Stock-based compensation expense$52,302 $2,509 $54,811 
Net cash provided by operating activities$63,928 $— $63,928 
Three Months Ended September 30, 2024Nine Months Ended September 30, 2024
As ReportedAdjustmentRevisedAs ReportedAdjustmentRevised
(unaudited, in thousands, except per share amounts)(unaudited, in thousands, except per share amounts)
Consolidated Statement of Operations:
Cost of revenue - product subscriptions$56,653 $121 $56,774 $166,290 $325 $166,615 
Cost of revenue - professional services$6,364 $19 $6,383 $18,478 $50 $18,528 
Research and development expense$44,565 $411 $44,976 $125,611 $1,181 $126,792 
Sales and marketing expense$74,521 $300 $74,821 $225,121 $921 $226,042 
General and administrative expense$18,590 $293 $18,883 $60,837 $1,176 $62,013 
Net income (loss)$16,554 $(1,144)$15,410 $27,007 $(3,653)$23,354 
Net income (loss) per share, basic$0.26 $(0.02)$0.24 $0.43 $(0.07)$0.36 
Net income (loss) per share, diluted$0.22 $(0.01)$0.21 $0.36 $(0.04)$0.32 
Consolidated Statement of Cash Flows:
Net income (loss)$27,007 $(3,653)$23,354 
Stock-based compensation expense$76,896 $3,653 $80,549 
Net cash provided by operating activities$107,897 $— $107,897 
v3.25.0.1
Pay vs Performance Disclosure - USD ($)
$ in Thousands
 3 Months Ended 6 Months Ended 9 Months Ended 12 Months Ended
Sep. 30, 2024
Jun. 30, 2024
Mar. 31, 2024
Dec. 31, 2023
Sep. 30, 2023
Jun. 30, 2023
Mar. 31, 2023
Jun. 30, 2024
Sep. 30, 2024
Dec. 31, 2024
Dec. 31, 2023
Dec. 31, 2022
Pay vs Performance Disclosure                        
Net income (loss) $ 15,410 $ 6,538 $ 1,406 $ 19,116 $ (77,209) $ (68,178) $ (26,544) $ 7,944 $ 23,354 $ 25,526 $ (152,815) $ (124,717)
v3.25.0.1
Insider Trading Arrangements
 3 Months Ended
Dec. 31, 2024
Trading Arrangements, by Individual  
Rule 10b5-1 Arrangement Adopted false
Non-Rule 10b5-1 Arrangement Adopted false
Rule 10b5-1 Arrangement Terminated false
Non-Rule 10b5-1 Arrangement Terminated false
v3.25.0.1
Insider Trading Policies and Procedures
 12 Months Ended
Dec. 31, 2024
Insider Trading Policies and Procedures [Line Items]  
Insider Trading Policies and Procedures Adopted true
v3.25.0.1
Cybersecurity Risk Management and Strategy Disclosure
 12 Months Ended
Dec. 31, 2024
Cybersecurity Risk Management, Strategy, and Governance [Line Items]  
Cybersecurity Risk Management Processes for Assessing, Identifying, and Managing Threats [Text Block]
At Rapid7, cybersecurity risk management is integrated into our overall enterprise risk management program and one pillar of our broader cybersecurity program. Our cybersecurity risk management program is designed based on prevailing security standards and controls, such as NIST-800 and ISO 27001, and to continuously evaluate cybersecurity risks in alignment with our business objectives and operational needs. Our information security team manages a framework for handling both information security risk management and operational cybersecurity threats and incidents, including those associated with the use of products and services provided by third-party service providers, suppliers, and vendors. This framework includes steps for assessing the severity of a cybersecurity threat or incident, identifying the source of such cybersecurity threat or incident (including whether such cybersecurity threat or incident is associated with a third-party service provider, supplier, or vendor), implementing cybersecurity countermeasures and mitigations and an escalation path for informing management, the audit committee of the board of directors (the "Audit Committee"), and our full board of directors (the "Board") of cybersecurity threats, incidents and risks.
Recognizing the complexity and evolving nature of cybersecurity threats, incidents and risks, we engage with a range of third-party experts, including cybersecurity penetration testers, consultants, and auditors in evaluating and supporting our risk management systems. Our collaboration with these third parties includes regular independent audits, threat assessments, and consultation on security enhancements.
Our cybersecurity program, which is managed by our information security team, includes:
•efforts to comply with prevailing cybersecurity standards;
•regular risk assessments, security assessments and penetration tests designed to help identify potential cybersecurity risks to our critical systems, networks, products, services, and our broader enterprise information technology environment;
•a cybersecurity incident response plan and procedures for responding to cybersecurity threats and incidents;
•a security operations team responsible for detection of, and response to, cybersecurity threats and incidents;
•a third-party risk management process for third-party service providers, suppliers, and vendors; and
•annual cybersecurity awareness training of our employees, including senior management.
Cybersecurity Risk Management Processes Integrated [Flag] true
Cybersecurity Risk Management Processes Integrated [Text Block] At Rapid7, cybersecurity risk management is integrated into our overall enterprise risk management program and one pillar of our broader cybersecurity program. Our cybersecurity risk management program is designed based on prevailing security standards and controls, such as NIST-800 and ISO 27001, and to continuously evaluate cybersecurity risks in alignment with our business objectives and operational needs. Our information security team manages a framework for handling both information security risk management and operational cybersecurity threats and incidents, including those associated with the use of products and services provided by third-party service providers, suppliers, and vendors. This framework includes steps for assessing the severity of a cybersecurity threat or incident, identifying the source of such cybersecurity threat or incident (including whether such cybersecurity threat or incident is associated with a third-party service provider, supplier, or vendor), implementing cybersecurity countermeasures and mitigations and an escalation path for informing management, the audit committee of the board of directors (the "Audit Committee"), and our full board of directors (the "Board") of cybersecurity threats, incidents and risks.
Cybersecurity Risk Management Third Party Engaged [Flag] true
Cybersecurity Risk Third Party Oversight and Identification Processes [Flag] true
Cybersecurity Risk Materially Affected or Reasonably Likely to Materially Affect Registrant [Flag] false
Cybersecurity Risk Board of Directors Oversight [Text Block]
Our Board considers cybersecurity risk as part of its risk oversight function and has delegated to the Audit Committee oversight of cybersecurity risk management. Our Audit Committee consists of Board members with a diversity of expertise in risk management, technology, finance, and cybersecurity, including oversight of security teams. The Audit Committee is responsible for overseeing that management has processes in place designed to identify, assess and manage cybersecurity risks, including mitigation and remediation of cybersecurity threats and incidents. The Audit Committee also reports on the cybersecurity program to our Board.
Management is responsible for identifying, assessing and managing material cybersecurity risks on an ongoing basis, establishing processes designed to ensure that potential cybersecurity risk exposures are monitored, putting in place appropriate mitigation and remediation measures, and maintaining cybersecurity programs. Our cybersecurity programs are under the
direction of our Chief Security Officer (“CSO”), who receives reports from our information security team and monitors the prevention, detection, mitigation and remediation of cybersecurity incidents. Our CSO and dedicated personnel are certified and experienced information systems security professionals and information security managers with decades of experience and industry certifications. Management, including the CSO and our information security team, regularly update the Audit Committee on the Company’s cybersecurity program, including cybersecurity vulnerabilities, risk, threats and incidents, and developments in the cybersecurity risk landscape.
Despite our efforts, we cannot eliminate all risks from cybersecurity threats or incidents, or provide assurances that we have not experienced an undetected cybersecurity incident. While we have implemented a risk management process designed to mitigate cybersecurity risks that arise from utilizing third-party service providers, suppliers, and vendors, our control over and ability to monitor the security posture of third parties with whom we do business remains limited and there can be no assurance that we can prevent, mitigate, or remediate the risk of any compromise or failure in the security infrastructure owned or controlled by such third parties. Additionally, any contractual protections with such third parties, including our right to indemnification, if any at all, may be limited or insufficient to prevent a negative impact on our business from such compromise or failure. For additional information about these risks, see Part I, Item 1A, "Risk Factors" in this Annual Report on Form 10-K.
Cybersecurity Risk Board Committee or Subcommittee Responsible for Oversight [Text Block] Our Board considers cybersecurity risk as part of its risk oversight function and has delegated to the Audit Committee oversight of cybersecurity risk management.
Cybersecurity Risk Process for Informing Board Committee or Subcommittee Responsible for Oversight [Text Block] Management, including the CSO and our information security team, regularly update the Audit Committee on the Company’s cybersecurity program, including cybersecurity vulnerabilities, risk, threats and incidents, and developments in the cybersecurity risk landscape.
Cybersecurity Risk Role of Management [Text Block]
Management is responsible for identifying, assessing and managing material cybersecurity risks on an ongoing basis, establishing processes designed to ensure that potential cybersecurity risk exposures are monitored, putting in place appropriate mitigation and remediation measures, and maintaining cybersecurity programs. Our cybersecurity programs are under the
direction of our Chief Security Officer (“CSO”), who receives reports from our information security team and monitors the prevention, detection, mitigation and remediation of cybersecurity incidents. Our CSO and dedicated personnel are certified and experienced information systems security professionals and information security managers with decades of experience and industry certifications. Management, including the CSO and our information security team, regularly update the Audit Committee on the Company’s cybersecurity program, including cybersecurity vulnerabilities, risk, threats and incidents, and developments in the cybersecurity risk landscape.
Cybersecurity Risk Management Positions or Committees Responsible [Flag] true
Cybersecurity Risk Management Positions or Committees Responsible [Text Block]
Our Board considers cybersecurity risk as part of its risk oversight function and has delegated to the Audit Committee oversight of cybersecurity risk management. Our Audit Committee consists of Board members with a diversity of expertise in risk management, technology, finance, and cybersecurity, including oversight of security teams. The Audit Committee is responsible for overseeing that management has processes in place designed to identify, assess and manage cybersecurity risks, including mitigation and remediation of cybersecurity threats and incidents. The Audit Committee also reports on the cybersecurity program to our Board.
Management is responsible for identifying, assessing and managing material cybersecurity risks on an ongoing basis, establishing processes designed to ensure that potential cybersecurity risk exposures are monitored, putting in place appropriate mitigation and remediation measures, and maintaining cybersecurity programs. Our cybersecurity programs are under the
direction of our Chief Security Officer (“CSO”), who receives reports from our information security team and monitors the prevention, detection, mitigation and remediation of cybersecurity incidents. Our CSO and dedicated personnel are certified and experienced information systems security professionals and information security managers with decades of experience and industry certifications. Management, including the CSO and our information security team, regularly update the Audit Committee on the Company’s cybersecurity program, including cybersecurity vulnerabilities, risk, threats and incidents, and developments in the cybersecurity risk landscape.
Cybersecurity Risk Management Expertise of Management Responsible [Text Block] Our CSO and dedicated personnel are certified and experienced information systems security professionals and information security managers with decades of experience and industry certifications.
Cybersecurity Risk Process for Informing Management or Committees Responsible [Text Block] Management, including the CSO and our information security team, regularly update the Audit Committee on the Company’s cybersecurity program, including cybersecurity vulnerabilities, risk, threats and incidents, and developments in the cybersecurity risk landscape.
Cybersecurity Risk Management Positions or Committees Responsible Report to Board [Flag] true
v3.25.0.1
Summary of Significant Accounting Policies (Policies)
 12 Months Ended
Dec. 31, 2024
Accounting Policies [Abstract]  
Basis of Presentation and Consolidation Basis of Presentation and ConsolidationThe accompanying consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”). The consolidated financial statements include our results of operations and those of our wholly-owned subsidiaries. All intercompany transactions and balances have been eliminated in consolidation.
Use of Estimates Use of EstimatesThe preparation of consolidated financial statements in conformity with GAAP requires management to make estimates, judgments and assumptions that affect the amounts reported in the consolidated financial statements and accompanying notes. The management estimates include, but are not limited to the determination of standalone selling prices in revenue transactions with multiple performance obligations, the estimated period of benefit for deferred contract acquisition costs, the useful lives and recoverability of long-lived assets, the valuation for credit losses, the valuation of stock-based compensation, the fair value of assets acquired and liabilities assumed in business combinations, the valuation of contingent consideration in business combinations, the incremental borrowing rate for operating leases and the valuation for deferred tax assets. We base our estimates on historical experience and on various other assumptions that we believe are reasonable. Actual results could differ from those estimates.
Revenue Recognition and Deferred Contract Acquisition Revenue Recognition
We generate revenue primarily from: (1) product subscriptions from the sale of cloud-based subscriptions, managed services, term software licenses, content subscriptions and maintenance and support associated with
our software licenses and (2) professional services from the sale of our deployment and training services related to our solutions, incident response services, penetration testing and security advisory services.
We recognize revenue when a customer obtains control of promised products or services. The amount of revenue recognized reflects the consideration that we expect to be entitled to receive in exchange for these products or services. To achieve the core principle of this standard, we apply the following four steps:
        1) Identify the contract with a customer
We consider the terms and conditions of the contracts and our customary business practices in identifying our contracts. We determine we have a contract with a customer when the contract is approved, we can identify each party’s rights regarding the services to be transferred, we can identify the payment terms for the services, and we have determined the customer has the ability and intent to pay and the contract has commercial substance. We apply judgment in determining the customer’s ability and intent to pay, which is based on a variety of factors, including the customer’s historical payment experience or, in the case of a new customer, credit and financial information pertaining to the customer.
        2) Identify the performance obligations in the contract
Performance obligations promised in a contract are identified based on the products and services that will be transferred to the customer that are both capable of being distinct, whereby the customer can benefit from the product or service either on its own or together with other resources that are readily available from third parties or from us, and are distinct in the context of the contract, whereby the transfer of the products or services is separately identifiable from other promises in the contract.
        3) Determine the transaction price
The transaction price is determined based on the consideration to which we expect to be entitled in exchange for transferring products or services to the customer. Variable consideration is included in the transaction price if, in our judgment, it is probable that no significant future reversal of cumulative revenue under the contract will occur.
In instances where the timing of revenue recognition differs from the timing of invoicing, we have determined our contracts generally do not include a significant financing component. The primary purpose of our invoicing terms is to provide customers with simplified and predictable ways of purchasing our products and services, not to receive financing from our customers or to provide customers with financing. Examples include invoicing at the beginning of a subscription term with revenue recognized ratably over the contract period.
Sales through our channel network of distributors and resellers are generally discounted as compared to the price that we would sell to an end user. Revenue for sales through our channel network is recorded net of any distributor or reseller margin.
If the contract contains a single performance obligation, the entire transaction price is allocated to the single performance obligation. The majority of our contracts with customers contain multiple performance obligations. For these contracts, we account for individual performance obligations separately if they are distinct. The transaction price is allocated to the separate performance obligations on a relative standalone selling price (“SSP”) basis. We determine SSP of our products and services based on our overall pricing objectives using all information reasonably available to us, taking into consideration market conditions and other factors, including the geographic locations of our customers, negotiated discounts from price lists and selling method (i.e., partner or direct). When available, we use directly observable stand-alone transactions to determine SSP. When not regularly sold on a stand-alone basis, we estimate SSP for our products and services utilizing historical sales data, including discounts from list price. The historical data is aggregated and analyzed by geographic location and selling method to establish a median or average price. Once SSP is established it is applied consistently to all transactions including that product or service utilizing a portfolio approach.
        4) Recognize revenue when or as we satisfy a performance obligation
Revenue is recognized at the time the related performance obligation is satisfied by transferring the promised product or service to a customer. Revenue is recognized when control of the products or services is transferred to our customers, in an amount that reflects the consideration that we expect to receive in exchange for those products or services.
Product Subscriptions
Product subscriptions consists of revenue from our cloud-based subscription, term software licenses, managed services offerings, content subscriptions and maintenance and support associated with our software licenses.
•We generate cloud-based subscription revenue primarily from sales of subscriptions to access our cloud platform, together with related support services to our customers. These arrangements do not provide the customer with the right to take possession of our software operating on our cloud platform at any time. Instead, customers are granted continuous access to our cloud platform over the contractual period. Revenue is recognized over time on a ratable basis over the contract term beginning on the date that our service is made available to the customer. Our cloud-based subscription contracts generally have annual or multi-year contractual terms which are billed in advance of the annual subscription period and are non-cancellable.
•Managed services offerings consist of fees generated when we operate our software and provide our capabilities on behalf of our customers. Revenue is recognized on a ratable basis over the contract term beginning on the date that our service is made available to the customer. Our managed services offerings generally have annual or multi-year contractual terms which are billed in advance of the annual subscription period and are non-cancellable.
•For our term software licenses where the utility to the customer is dependent on the continued delivery of content subscriptions, we recognize the license revenue over the contractual term of the content subscription.
•Content subscriptions and our maintenance and support services are sold with our term software licenses. Revenue related to our content subscriptions associated with our software licenses is recognized ratably over the contractual period.
Professional Services
All of our professional services are considered distinct performance obligations when sold stand alone or with other products. These contracts generally have terms of one year or less. For the majority of these arrangements, revenue is recognized over time based upon the proportion of work performed to date.
Contract Balances
Contract liabilities consist of deferred revenue and include payments received in advance of performance under the contract. Such amounts are recognized as revenue over the contractual period consistent with the above methodology. For the year ended December 31, 2024, we recognized revenue of $457.5 million that was included in the corresponding contract liability balance at the beginning of the period presented. Deferred revenue that will be realized during the succeeding 12-month period is recorded as current, and the remaining deferred revenue is recorded as non-current.
We receive payments from customers based upon contractual billing schedules. Accounts receivable are recorded when the right to consideration becomes unconditional. Unbilled receivables include amounts related to our contractual right to consideration for both completed and partially completed performance obligations that have not been invoiced. If the right to consideration is based on satisfaction of another performance obligation in the contract other than the passage of time, we would record a contract asset. As of December 31, 2024 and 2023, unbilled receivables of $2.5 million and $2.0 million are included in prepaid expenses and other current assets in our consolidated balance sheet. As of December 31, 2024 and 2023, we have no contract assets recorded on our consolidated balance sheet.
Deferred Contract Acquisition Costs    
We defer contract costs that are recoverable and incremental to obtaining customer contracts. Contract costs, which primarily consist of sales commissions, are amortized on a systematic basis that is consistent with the transfer to the customer of the goods or services to which the asset relates. Contract costs for a new customer, upsell or cross-sell are amortized on a straight-line basis over an estimated period of benefit of five years as sales commissions on initial sales are not commensurate with sales commissions on contract renewals. We determined the estimated period of benefit by taking into consideration the contractual term and expected renewals of customer contracts, our technology and other factors, including the fact that sales commissions paid on renewals are not commensurate with commissions paid on initial sales transactions. Contract costs relating to contract renewals are deferred and amortized on a straight-line basis over the weighted average contract length of renewal contracts. Contract costs for professional services arrangements are expensed as incurred in accordance with the practical expedient as the contractual period of our professional services arrangements is one year or less.
We classify deferred contract costs as short-term or long-term based on when we expect to recognize the expense. Amortization expense associated with deferred contract acquisition costs is recorded to sales and marketing expense in our consolidated statements of operations. We periodically review the carrying amount of deferred contract acquisition costs to determine whether events or changes in circumstances have occurred that could impact the period of benefit.
Cash and Cash Equivalents Cash, Cash Equivalents and Restricted CashWe consider all highly liquid instruments with original maturities of three months or less at the date of purchase to be cash equivalents. Cash and cash equivalents are recorded at cost, which approximates fair value.
Investments Investments
Our investments consist of U.S. Government agencies. We classify our investments as available-for-sale and record these investments at fair value. When the fair value of an investment declines below its amortized cost
basis, any portion of that decline attributable to credit losses, to the extent expected to be nonrecoverable before the sale of the security, is recognized in our consolidated statements of operations. When the fair value of the investment declines below its amortized cost basis due to changes in interest rates, such amounts are recorded in accumulated other comprehensive income (loss), and are recognized in our consolidated statement of operations only if we sell or intend to sell the security before recovery of its cost basis. Realized gains and losses are determined based on the specific identification method, and are reflected in our consolidated statements of operations.
Investments with an original maturity of greater than three months at the date of purchase and less than one year from the date of the balance sheet are classified as short-term and those with maturities of more than one year from the date of the balance sheet are classified as long-term in the consolidated balance sheet. We do not invest in any securities with contractual maturities greater than 24 months.
Accounts Receivable and Allowance for Credit Losses Accounts Receivable and Allowance for Credit LossesAccounts receivable are recorded at the invoiced amount, net of allowances for credit losses for any potential uncollectible amounts. We maintain an allowance for estimated credit losses resulting from the inability of our customers to make required payments. Management regularly reviews the adequacy of the allowance for credit loss based upon historical collection experience, the age of the receivable, an evaluation of each customer's expected ability to pay and current and future economic and market conditions. Additions to the allowance for credit losses are recorded in general and administrative expense in the consolidated statement of operations. Accounts receivable deemed uncollectible are charged against the allowance for credit losses. We do not have any off-balance sheet credit exposure related to our customers.
Concentration of Credit Risk Concentration of Credit Risk
Financial instruments that potentially expose us to concentrations of credit risk consist primarily of cash and cash equivalents, accounts receivable, investments and derivative financial instruments.
We invest only in high-quality credit instruments and our cash and cash equivalents and available for sale investments consist primarily of fixed income securities. Management believes that the financial institutions that hold our investments are financially sound and, accordingly, are subject to minimal credit risk. Deposits held with banks may exceed the amount of insurance provided on such deposits.
We provide credit to customers in the normal course of business. Collateral is not required for accounts receivable, but ongoing credit evaluations of customers’ financial condition are performed. We maintain reserves for potential credit losses. No single customer, including channel partners, accounted for 10% or more of our total revenues in 2024, 2023 or 2022 or accounts receivable as of December 31, 2024 or 2023.
Our derivative financial instruments expose us to credit risk to the extent that the counterparties may be unable to meet the terms of the arrangement. We mitigate this credit risk by transacting with major financial institutions with high credit ratings.
Property and Equipment Property and EquipmentProperty and equipment are recorded at cost and depreciated over their estimated useful lives using the straight-line method.
Software Development Costs Software Development Costs
Software development costs associated with the development of products for sale are recorded to research and development expense until technological feasibility has been established for the product. Once technological feasibility is established, all software costs are capitalized until the product is available for release to customers. To date, the software development costs have not been capitalized as the cost incurred and time between technological feasibility and product release was insignificant. As such, these costs are expensed as incurred and recognized in research and development expenses in our consolidated statements of operations.
Costs related to software developed, acquired or modified for internal use are capitalized. Costs incurred during the preliminary planning and evaluation stage of the project and during the post implementation stages of the project are expensed as incurred. Costs incurred during the application development stage of the project are capitalized. These capitalized costs consist of internal compensation related costs and external direct costs. Costs related to software developed for internal use are amortized over an estimated useful life of 3 years.
Leases Leases
We determine whether an arrangement is or contains a lease at inception. We evaluate the classification of a lease at inception and, as necessary, at modification. Operating leases are recognized on the consolidated balance sheet as right-of-use (“ROU”) assets, lease liabilities and, if applicable, long-term lease liabilities.
Operating lease ROU assets represent our right to use an underlying asset for the lease term. Operating lease liabilities represent our obligation to make payments arising from the lease. Operating lease ROU assets and liabilities are recognized at the present value of future lease payments at the lease commencement date. The implicit rate within our operating leases is generally not determinable and therefore we use the incremental borrowing rate at the lease commencement date to determine the present value of lease payments. We determine our incremental borrowing rate for each lease using our estimated borrowing rate, adjusted for various factors including level of collateralization, term and currency to align with the terms of the lease. The operating lease ROU asset also includes any lease prepayments and initial direct costs, offset by lease incentives. Operating lease cost is recognized on a straight-line basis over the lease term.
Certain of our leases include options to extend or terminate the lease. An option to extend the lease is considered in connection with determining the ROU asset and lease liability when it is reasonably certain we will exercise that option. An option to terminate is considered unless it is reasonably certain we will not exercise the option.
We account for lease and non-lease components as a single lease component and do not recognize operating lease ROU assets and lease liabilities for leases with a term of one year or less.
Impairment of Long-Lived Assets Impairment of Long-Lived AssetsWe evaluate our long-lived assets for impairment whenever events or changes in circumstances indicate that the carrying value of these assets may not be recoverable. When such events or changes in circumstances occur, recoverability of these assets or asset groups is measured by a comparison of the carrying value of the assets to the future net undiscounted cash flows directly associated with the assets. If such assets or asset groups are considered to be impaired, the impairment recognized is the amount by which the carrying value exceeds the fair value of the assets or asset groups. For the year ended December 31, 2023, we determined that triggering events occurred which indicated that the carrying value of our ROU and other lease-related assets related to a change in usage of certain idle office space at our corporate headquarters in Boston, Massachusetts as well as idle office spaces located in Plano, Texas; Los Angeles, California; and Toronto, Canada may not be fully recoverable. As a result, we utilized discounted cash flow models to estimate the fair value of the asset groups taking into consideration the time period it will take to obtain sublessees, the applicable discount rate and the anticipated sublease income and calculated the corresponding impairment loss. We used prices and other relevant information generated by recent market transactions involving similar or comparable assets, as well as our historical experience in real estate transactions.
Restructuring Expense Restructuring Expense
We record restructuring expense when management commits to and approves a restructuring plan, the restructuring plan identifies all significant actions, the period of time to complete the restructuring plan indicates that significant changes to the restructuring plan are not likely to occur, and employees who are impacted have been notified of the pending involuntary termination. A restructuring plan generally includes significant actions involving employee-related severance charges, employee-related benefits, and other charges associated with the restructuring (collectively, “restructuring expense”). Restructuring expense is recorded within restructuring in the consolidated statement of operations. The restructuring liability accrued but not paid at the end of the reporting period is included within accrued expenses in the consolidated balance sheet.
Business Combinations Business Combinations
We allocate the fair value of purchase consideration to the tangible asset acquired, liabilities assumed, and intangible assets acquired based on their estimated fair values. The excess of the fair value of purchase consideration over the fair value of these identifiable assets and liabilities is recorded as goodwill. During the measurement period, which may be up to one year from the acquisition date, we may record adjustments to the fair value of these assets acquired and liabilities assumed with the corresponding offset to goodwill. Upon the conclusion of the final determination of the fair value of assets acquired or liabilities assumed, any subsequent adjustments are recorded to the consolidated statements of operations. Determining the fair value of the tangible assets acquired, liabilities assumed and intangible assets requires management to make significant estimates and assumptions, especially with respect to intangible assets. Significant estimates in valuing certain intangible assets include, but are not limited to, cash flows that an asset is expected to generate in the future, technology migration curves, discount rates, and useful lives. While we use our best estimates and judgements, our estimates are inherently uncertain and subject to refinement.
Contingent consideration arising from business combinations is recorded at fair value as a liability on the acquisition date and remeasured at each reporting date. Changes in fair value are recorded in general and administrative expense in the consolidated statements of operations. Determining the fair value of the contingent consideration each period requires management to make assumptions and judgments. These estimates involve inherent uncertainties, and if different assumptions had been used, the fair value of contingent consideration could have been materially different from the amounts recorded.
Acquisition-related transaction costs are expensed as incurred.
Goodwill Goodwill
We perform an annual goodwill impairment test on the last day of each fiscal year and whenever events or changes in circumstances indicate that the carrying amount of this asset may exceed its fair value. For our goodwill impairment analysis, we operate with a single reporting unit. To test goodwill impairment, we
perform a single-step goodwill impairment test to identify potential goodwill impairment. The single-step impairment test begins with an estimation of the fair value of a reporting unit. Goodwill impairment exists when the net assets of a reporting unit exceed its fair value. In performing the single step of the goodwill impairment testing and measurement process, we estimated the fair value of our single reporting unit using our market capitalization. Based upon our assessment performed as of December 31, 2024, we concluded the fair value of our single reporting unit exceeded its carrying value and there was no impairment of goodwill.
Foreign Currency Foreign CurrencyThe functional currency of our foreign subsidiaries is the U.S. dollar. We translate all monetary assets and liabilities denominated in foreign currencies into U.S. dollars using the exchange rates in effect at the balance sheet dates and non-monetary assets and liabilities using historical exchange rates. Foreign currency denominated expenses are re-measured using the average exchange rates for the period. Foreign currency transaction and re-measurement gains and losses are included in other income (expense), net in the consolidated statement of operations. In 2024, foreign currency transaction gains and foreign currency re-measurement gains were $0.6 million and $3.8 million, respectively.
Derivative and Hedging Activities Derivative and Hedging Activities
We are exposed to currency exchange rate risk. Although the majority of our revenue is denominated in U.S. dollars, a portion of our operating expenses are denominated in foreign currencies, making them subject to fluctuations in foreign currency exchange rates. We enter into foreign currency derivative contracts, which we designate as cash flow hedges, to manage the foreign currency exchange risk associated with these expenses.
Our derivative financial instruments are recorded at fair value and reported as either an asset or liability on our consolidated balance sheets. Gains or losses related to our cash flow hedges are recorded as a component of accumulated other comprehensive income (loss) in our consolidated balance sheets and are reclassified into the financial statement line item associated with the underlying hedged transaction in our consolidated statement of operations when the underlying hedged transaction is recognized in our earnings. If it becomes probable that the hedged transaction will not occur, the cumulative unrealized gain or loss is reclassified immediately from accumulated other comprehensive income (loss) into the financial statement line item associated with the underlying hedged transaction in our consolidated statement of operations. Derivatives designated as cash flow hedges are classified in our consolidated statements of cash flow in the same manner as the underlying hedged transaction, primarily within cash flow from operating activities.
Stock-Based Compensation Stock-Based Compensation
Stock-based compensation expense related to our stock options, restricted stock units (“RSUs”), performance-based restricted stock units (“PSUs”) and purchase rights issued under our 2015 Employee Stock Purchase Plan (“ESPP”) is calculated based on the estimated fair value of the award on the grant date.
The fair values of RSUs and PSUs are based on the value of our common stock on the date of grant. The fair values of stock options and ESPP purchase rights are estimated on the grant date using the Black-Scholes option pricing model which requires management to make a number of assumptions, including the expected life of the option, the volatility of the underlying stock, the risk-free interest rate and expected dividends. The assumptions used in our Black-Scholes option-pricing model represent management’s best estimates at the time of grant. These estimates involve a number of variables, uncertainties and assumptions and the application of management’s judgment, as they are inherently subjective. If any assumptions change, our stock-based compensation expense could be materially different in the future.
The fair value is recognized as expense on a straight-line basis over the requisite service period, which is generally the vesting period of the respective award. The actual number of PSUs earned and eligible to vest are determined based on the performance conditions defined when the awards are granted. We recognize share-based compensation expense for the PSUs on a straight-line basis over the requisite service period for
each separately vesting portion of the award when it is probable that the performance conditions will be achieved. We reassess the probability of vesting at each reporting period for awards with performance conditions and adjust stock-based compensation cost based on its probability assessment. We recognize forfeitures as they occur and do not estimate a forfeiture rate when calculating the stock-based compensation expense.
Advertising AdvertisingAdvertising costs are expensed as incurred and are recorded in sales and marketing expense in our consolidated statement of operations.
Income Taxes Income Taxes
Income taxes are accounted for using the asset and liability method. Under this method, deferred tax assets and liabilities are recognized for differences between the consolidated financial statements carrying amounts of assets and liabilities and their respective income tax bases, and operating loss and tax credit carryforwards using enacted tax rates expected to apply to taxable income in the years in which the differences are expected to reverse. Deferred tax assets are reduced by a valuation allowance if it is more likely than not that some or all of the deferred tax assets will not be realized. Significant judgment is required in determining any valuation allowance recorded against deferred tax assets. In assessing the need for a valuation allowance, we consider all available evidence, including past operating results, estimates of future taxable income, and the feasibility of tax planning strategies. In the event that we change our determination as to the amount of deferred tax assets that can be realized, we will adjust our valuation allowance with a corresponding impact to the provision for income taxes in the period in which such determination is made.
We recognize tax provision from uncertain tax positions if it is more likely than not that the tax position will be sustained on examination by the taxing authorities based on the technical merits of the position. Interest and penalties associated with such uncertain tax positions are classified as a component of income tax expense.
Net Income (Loss) per Share Net Income (Loss) per Share
We calculate basic net income (loss) per share by dividing our net loss by the weighted-average number of common shares outstanding during the period. Diluted net income (loss) per share is computed by giving effect to all potentially dilutive securities, including stock options, RSUs, PSUs, the impact of our ESPP, common shares issued in connection with acquisitions and the impact of our convertible senior notes (“Notes”). We intend to settle any conversion of our Notes in cash, shares, or a combination thereof. The dilutive impact of the Notes for our calculation of diluted net income (loss) per share is considered using the if-converted method. For the years ended December 31, 2024, 2023 and 2022, the shares underlying the Notes were not considered in the calculation of diluted net loss per share as the effect would have been anti-dilutive.
Recent Accounting Pronouncements Recent Accounting Pronouncements
Accounting Pronouncements Recently Adopted
In November 2023, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2023-07, Segment Reporting (Topic 280), Improvements to Reportable Segment Disclosures (“ASU 2023-07”), to improve reportable segment disclosure requirements through enhanced disclosures about significant segment expenses on an interim and annual basis. All disclosure requirements of ASU 2023-07 are required for entities with a single reportable segment. ASU 2023-07 is effective for fiscal years beginning after December 15, 2023, and interim periods for the fiscal years beginning after December 15, 2024, and should be applied on a retrospective basis to all periods presented. We adopted this standard for our fiscal year beginning on January 1, 2024 and have provided the required disclosures in Note 18, Segment Information and Information About Geographic Areas.
Accounting Pronouncements Not Yet Effective
In November 2024, the FASB issued ASU 2024-04, Induced Conversions of Convertible Debt Instruments (“ASU 2024-04”). This new guidance is intended to improve the relevance and consistency in application of the induced conversion guidance in Subtopic 470-20 for (a) convertible debt instruments with cash conversion features and (b) debt instruments that are not currently convertible. ASU 2024-04 is effective for
fiscal years beginning after December 15, 2026. Early adoption is permitted. We do not plan to early adopt this standard. We are currently evaluating the effect of adoption of this standard to our consolidated financial statements and disclosures.
In November 2024, the FASB issued ASU 2024-03, Disaggregation of Income Statement Expenses (“ASU 2024-03”). Entities are required to disaggregate any relevant expense caption presented on the face of the income statement within continuing operations into the following required natural expense categories, as applicable: (1) purchases of inventory, (2) employee compensation, (3) depreciation, (4) intangible asset amortization, and (5) depreciation, depletion, and amortization recognized as part of oil- and gas-producing activities or other depletion expenses. Such disclosures must be made on an annual and interim basis in a tabular format in the footnotes to the financial statements. ASU 2024-03 is effective for fiscal years beginning after December 15, 2027. Early adoption is permitted. We do not plan to early adopt this standard. We are currently evaluating the effect of adoption of this standard to our consolidated financial statements and disclosures.
In December 2023, the FASB issued ASU 2023-09, Improvements to Income Tax Disclosures (“ASU 2023-09”). This new guidance is designed to enhance the transparency and decision usefulness of income tax disclosures. The amendments of this update are related to the rate reconciliation and income taxes paid, requiring (1) consistent categories and greater disaggregation of information in the rate reconciliation and (2) income taxes paid disaggregated by jurisdiction. ASU 2023-09 is effective for fiscal years beginning after December 15, 2024. We are currently evaluating the effect of adopting this standard on our disclosures.
Fair Value Measurements
We measure certain financial assets and liabilities at fair value. Fair value is determined based upon the exit price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants, as determined by either the principal market or the most advantageous market. Inputs used in the valuation techniques to derive fair values are classified based on a three-level hierarchy, as follows:
•Level 1: Observable inputs that reflect quoted prices (unadjusted) for identical assets or liabilities in active markets.
•Level 2: Observable inputs other than Level 1 prices such as quoted prices for similar assets or liabilities; quoted prices in markets with insufficient volume or infrequent transactions (less active markets); or model-derived valuations in which all significant inputs are observable or can be derived principally from or corroborated by observable market data for substantially the full term of the assets or liabilities.
•Level 3: Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the asset or liability.
We consider an active market to be one in which transactions for the asset or liability occur with sufficient frequency and volume to provide pricing information on an ongoing basis, and consider an inactive market to be one in which there are infrequent or few transactions for the asset or liability, the prices are not current, or price quotations vary substantially either over time or among market makers.
v3.25.0.1
Summary of Significant Accounting Policies (Tables)
 12 Months Ended
Dec. 31, 2024
Accounting Policies [Abstract]  
Summary of Useful Lives of Property and Equipment The following table presents the useful lives of our property and equipment:
 Useful Lives
Computer equipment and software3 years
Furniture and fixtures
3 - 5 years
Leasehold improvementsShorter of the useful life of the asset or the lease term
Property and equipment are recorded at cost and consist of the following:
 December 31,December 31,
 20242023
 (in thousands)
Computer equipment and software$28,789 $26,442 
Furniture and fixtures 10,960 10,850 
Leasehold improvements57,051 56,151 
Total96,800 93,443 
Less accumulated depreciation(64,555)(53,801)
Property and equipment, net$32,245 $39,642 
v3.25.0.1
Revenue from Contracts with Customers (Tables)
 12 Months Ended
Dec. 31, 2024
Revenue from Contract with Customer [Abstract]  
Summary of Net Revenues of Customer by Geographic Area
The following table summarizes the revenue by region based on the shipping address of customers who have contracted to use our product or service for the years ended December 31, 2024, 2023 and 2022:
Year Ended December 31,
202420232022
(in thousands)
North America$643,405 $607,448 $541,812 
Rest of world200,602 170,259 143,271 
Total revenue$844,007 $777,707 $685,083 
Net revenues by geographic area presented based upon the location of the customer are as follows:
 Year Ended December 31,
 202420232022
 (in thousands)
North America$643,405 $607,448 $541,812 
Rest of world200,602 170,259 143,271 
Total$844,007 $777,707 $685,083 
Summary of Estimated Revenue Expected to be Recognized in Future Related to Performance Obligations
The following table includes estimated revenue expected to be recognized in the future related to performance obligations that are unsatisfied or partially unsatisfied as of December 31, 2024. The estimated revenues do not include unexercised contract renewals.
Next Twelve MonthsThereafter
 (in thousands)
Product subscriptions$587,450 $291,435 
Professional services14,167 5,334 
Total$601,617 $296,769 
v3.25.0.1
Business Combinations (Tables)
 12 Months Ended
Dec. 31, 2024
Business Combination, Asset Acquisition, and Joint Venture Formation [Abstract]  
Summary of Preliminary Allocation of Purchase Price to the Estimated Fair Value of the Assets Acquired and Liabilities
The following table summarizes the preliminary allocation of purchase price to the estimated fair value of the assets acquired and liabilities assumed at the acquisition date (in thousands):
Consideration:
Cash$38,597 
Deferred cash consideration500 
Contingent consideration12,055 
Fair value of total consideration transferred$51,152 
Recognized amount of identifiable assets acquired and liabilities assumed:
Cash and cash equivalents$1,296 
Accounts receivable510 
Prepaid and other current assets102 
Property and equipment, net19 
Accrued expenses and other current liabilities(220)
Deferred revenue(910)
Other long-term liabilities(62)
Intangible asset11,500 
Total identifiable net assets assumed$12,235 
Goodwill38,917 
Total purchase price allocation$51,152 
v3.25.0.1
Investments (Tables)
 12 Months Ended
Dec. 31, 2024
Investments, Debt and Equity Securities [Abstract]  
Summary of Investments Classified as Available-for-Sale
Our investments, which are all classified as available-for-sale, consisted of the following:
 As of December 31, 2024
 Amortized
Cost		Gross
Unrealized
Gains		Gross
Unrealized
Losses		Fair Value
 (in thousands)
Description:
U.S government agencies$224,187 $328 $(216)$224,299 
Total$224,187 $328 $(216)$224,299 
 As of December 31, 2023
 Amortized
Cost		Gross
Unrealized
Gains		Gross
Unrealized
Losses		Fair Value
 (in thousands)
Description:
U.S government agencies$222,820 $467 $(65)$223,222 
Agency bonds2,500 — (7)2,493 
Total$225,320 $467 $(72)$225,715 
v3.25.0.1
Fair Value Measurements (Tables)
 12 Months Ended
Dec. 31, 2024
Fair Value Disclosures [Abstract]  
Summary of Financial Assets and Liabilities Measured and Recorded at Fair Value on Recurring Basis
The following table presents our financial assets and liabilities measured and recorded at fair value on a recurring basis using the above input categories:
 As of December 31, 2024
 Level 1Level 2Level 3Total
 (in thousands)
Description:
Assets:
U.S. government agencies$224,299 $— $— $224,299 
Foreign currency forward contracts designated as cash flow hedges (prepaid expenses and other current assets)— 96 — 96 
Total assets$224,299 $96 $— $224,395 
Liabilities:
Contingent consideration (other current liabilities and other long-term liabilities)$— $— $12,422 $12,422 
Foreign currency forward contracts designated as cash flow hedges (other current and long-term liabilities)— 1,415 — 1,415 
Total liabilities$— $1,415 $12,422 $13,837 
 As of December 31, 2023
 Level 1Level 2Level 3Total
 (in thousands)
Description:
Assets:
U.S. government agencies$223,222 $— $— $223,222 
Agency bonds— 2,493 — 2,493 
Foreign currency forward contracts designated as cash flow hedges (prepaid expenses and other current assets and other assets)— 1,322 — 1,322 
Total assets$223,222 $3,815 $— $227,037 
Liabilities:
Foreign currency forward contracts designated as cash flow hedges (other current liabilities)$— $55 $— $55 
Total liabilities$— $55 $— $55 
v3.25.0.1
Property and Equipment (Tables)
 12 Months Ended
Dec. 31, 2024
Property, Plant and Equipment [Abstract]  
Summary of Property and Equipment The following table presents the useful lives of our property and equipment:
 Useful Lives
Computer equipment and software3 years
Furniture and fixtures
3 - 5 years
Leasehold improvementsShorter of the useful life of the asset or the lease term
Property and equipment are recorded at cost and consist of the following:
 December 31,December 31,
 20242023
 (in thousands)
Computer equipment and software$28,789 $26,442 
Furniture and fixtures 10,960 10,850 
Leasehold improvements57,051 56,151 
Total96,800 93,443 
Less accumulated depreciation(64,555)(53,801)
Property and equipment, net$32,245 $39,642 
v3.25.0.1
Goodwill and Intangibles (Tables)
 12 Months Ended
Dec. 31, 2024
Goodwill and Intangible Assets Disclosure [Abstract]  
Summary of Change in Gross Carrying Amount of Goodwill
The following table displays the changes in the gross carrying amount of goodwill:
 Amount
 (in thousands)
Balance at December 31, 2022$515,631 
Minerva acquisition20,720 
Balance at December 31, 2023$536,351 
Noetic acquisition38,917 
Balance at December 31, 2024$575,268 
Summary of Identifiable Intangible Assets
The following table presents details of our intangible assets which include acquired identifiable intangible assets and capitalized internal-use software costs:
 Weighted-
Average Estimated Useful Life (years)		As of December 31, 2024As of December 31, 2023
 Gross Carrying
Amount		Accumulated
Amortization		Net Book ValueGross Carrying
Amount		Accumulated
Amortization		Net Book Value
  (in thousands)
Intangible assets subject to amortization:
Developed technology6.1$146,855 $(94,193)$52,662 $135,355 $(77,031)$58,324 
Customer relationships4.512,000 (10,363)1,637 12,000 (7,755)4,245 
Trade names3.12,619 (2,559)60 2,619 (2,379)240 
Total acquired intangible assets$161,474 $(107,115)$54,359 $149,974 $(87,164)$62,810 
Internal-use software3.068,878 (37,518)31,360 55,371 (23,635)31,736 
Total intangible assets$230,352 $(144,633)$85,719 $205,345 $(110,799)$94,546 
Summary of Estimated Amortization Expense
Estimated future amortization expense of the acquired identifiable intangible assets and completed capitalized internal-use software costs as of December 31, 2024 was as follows (in thousands):
2025$32,532 
202622,432 
202710,016 
20283,243 
20293,243 
2030 and thereafter4,409 
Total$75,875 
v3.25.0.1
Deferred Contract Acquisition and Fulfillment Costs (Tables)
 12 Months Ended
Dec. 31, 2024
Revenue from Contract with Customer [Abstract]  
Summary of Deferred Contract Acquisition and Fulfillment Costs
The following table summarizes the activity of the deferred contract acquisition and fulfillment costs, which primarily consist of capitalized sales commissions, for the years ended December 31, 2024 and 2023:
Year Ended December 31,
20242023
(in thousands)
Beginning balance$121,609 $103,075 
Capitalization of contract acquisition and fulfillment costs57,796 60,528 
Amortization of deferred contract acquisition and fulfillment costs(53,599)(41,994)
Ending balance$125,806 $121,609 
v3.25.0.1
Debt (Tables)
 12 Months Ended
Dec. 31, 2024
Debt Disclosure [Abstract]  
Summary of Long-term Debt Instruments Further details of the Notes are as follows:
IssuanceMaturity DateInterest RateFirst Interest Payment DateEffective Interest RateSemi-Annual Interest Payment DatesInitial Conversion Rate per $1,000 PrincipalInitial Conversion PriceNumber of Shares (in millions)
2025 NotesMay 1, 20252.25%November 1, 20202.88%May 1 and November 116.3875$61.02 0.8
2027 NotesMarch 15, 20270.25%September 15, 20210.67%March 15 and September 159.6734$103.38 5.8
2029 NotesMarch 15, 20291.25%March 15, 20241.69%March 15 and September 1515.4213$64.85 4.6
Summary of Liability and Equity Components of Convertible Debt
The net carrying amount of the Notes as of December 31, 2024 and December 31, 2023 was as follows (in thousands):
2025 Notes2027 Notes2029 Notes
PrincipalUnamortized debt issuance costsTotalPrincipalUnamortized debt issuance costsTotalPrincipalUnamortized debt issuance costsTotal
Balance at December 31, 2023$45,992 $(404)$45,588 $600,000 $(8,077)$591,923 $300,000 $(7,515)$292,485 
Amortization of debt issuance costs— 307 307 — 2,513 2,513 — 1,435 1,435 
Balance at December 31, 2024$45,992 $(97)$45,895 $600,000 $(5,564)$594,436 $300,000 $(6,080)$293,920 
Interest expense related to the Notes was as follows (in thousands):
Year Ended December 31,
202420232022
2025 Notes2027 Notes2029 NotesTotal2025 Notes2027 Notes2029 NotesTotal2025 Notes2027 NotesTotal
Contractual interest expense$1,035 $1,500 $3,749 $6,284 $3,795 $1,500 $1,167 $6,462 $5,174 $1,502 $6,676 
Amortization of debt issuance costs307 2,513 1,435 4,255 1,066 2,487 394 3,947 1,4252,4683,893
Induced conversion expense— — — — 53,889 — — 53,889 — — — 
Total interest expense$1,342 $4,013 $5,184 $10,539 $58,750 $3,987 $1,561 $64,298 $6,599 $3,970 $10,569 
Summary of Other Key Terms and Premiums Paid for the Capped Calls Related to Each Series of Notes
The following table sets forth other key terms and premiums paid for the Capped Calls related to each series of Notes:
Capped Calls Entered into in Connection with the Issuance of the 2025 NotesCapped Calls Entered into in Connection with the Issuance of the 2027 NotesCapped Calls Entered into in Connection with the Issuance of the 2029 Notes
Initial strike price, subject to certain adjustments$61.02 $103.38 $64.85 
Cap price, subject to certain adjustments$93.88 $159.04 $97.88 
Total premium paid (in thousands)$27,255 $76,020 $36,570 
Expiration datesMarch 4, 2025 - April 29, 2025January 1, 2027 - March 11, 2027February 13, 2029 - March 13, 2029
v3.25.0.1
Leases (Tables)
 12 Months Ended
Dec. 31, 2024
Leases [Abstract]  
Summary of Components of Lease Expense and Supplemental Cash Flow Information Related to Leases
The components of lease expense were as follows:
Year Ended December 31,
20242023
(in thousands)
Operating lease costs$16,129 $16,776 
Short-term lease costs951 1,259 
Variable lease costs8,825 8,219 
Total lease costs$25,905 $26,254 
Supplemental cash flow information related to leases was as follows:
Year Ended December 31,
20242023
 (in thousands)
Cash paid for amounts included in the measurement of lease liabilities$22,870 $19,999 
ROU assets obtained in exchange for new lease obligations$4,488 $8,119 
Summary of Supplemental Balance Sheet Information Related to Operating Leases
Supplemental balance sheet information related to the operating leases was as follows:
As of December 31, 2024As of December 31, 2023
Weighted average remaining lease term (in years) - operating leases4.95.7
Weighted average discount rate - operating leases6.4 %6.4 %
Summary of Maturities of Operating Lease Liabilities and Future Minimum Payments under Non-cancellable Leases
Maturities of operating lease liabilities as of December 31, 2024 were as follows (in thousands):
2025$20,926 
202618,941 
202718,761 
202819,333 
202916,601 
2030 and thereafter3,275 
Total lease payments$97,837 
Less: imputed interest(13,914)
Total$83,923 
v3.25.0.1
Stock-Based Compensation (Tables)
 12 Months Ended
Dec. 31, 2024
Share-Based Payment Arrangement [Abstract]  
Summary of Stock-Based Compensation Expense
Stock-based compensation expense for restricted stock units (“RSUs”), performance-based restricted stock units (“PSUs”), stock options, purchase rights issued under our employee stock purchase plan (“ESPP”) and earnout consideration and key employee consideration shares related to acquisitions was classified in the accompanying consolidated statements of operations as follows:
 Year Ended December 31,
 202420232022
 (in thousands)
Stock-based compensation expense:
Cost of revenue$12,208 $11,005 $10,367 
Research and development37,566 39,183 49,940 
Sales and marketing28,718 30,350 31,217 
General and administrative29,469 31,098 28,378 
Total stock-based compensation expense$107,961 $111,636 $119,902 
The unrecognized stock-based compensation expense and estimated weighted average amortization periods remaining at December 31, 2024 was as follows:
 Unrecognized Compensation ExpenseWeighted-Average Amortization Period Remaining
 (in thousands)(in years)
RSUs and PSUs$137,525 1.9
Purchase rights under our ESPP$1,734 0.6
Earnout and key employee consideration shares$7,391 1.8
Summary of Restricted Stock and Restricted Stock Unit Activity RSUs and PSUs activity during 2024, 2023, and 2022 was as follows:
 Shares        Weighted-
Average Grant
Date Fair
Value
Unvested balance as of December 31, 20212,778,877 $74.40 
Granted2,327,216 86.78 
Vested(1,481,333)69.80 
Forfeited(623,317)85.93 
Unvested balance as of December 31, 20223,001,443 83.88 
Granted2,304,140 48.83 (1)
Vested(1,453,713)73.29 (1)
Forfeited(1,137,444)67.93 (1)
Unvested balance as of December 31, 20232,714,426 66.40 (1)
Granted2,563,810 53.99 
Vested(1,462,352)64.78 
Forfeited(962,649)62.16 
Unvested balance as of December 31, 20242,853,235 $57.25 
(1) The weighted average grant date fair values for RSUs and PSUs granted, vested and forfeited during fiscal year 2023, as well as the weighted average grant date fair value of awards unvested as of December 31, 2023 have been revised from prior period disclosures. Refer to Note 20, Immaterial Correction of an Error, for further information.
Summary of Stock Option Activity The following tables summarizes information about stock option activity during the reporting periods:
Shares        Weighted
Average
Exercise
Price		Weighted
Average
Remaining
Contractual Life
(in years)		Aggregate
Intrinsic
Value
(in thousands)
Outstanding as of December 31, 20211,411,387 $10.74 $150,951 
Granted— — 
Exercised(479,223)6.92 $20,764 
Forfeited/cancelled(38)21.15 
Outstanding as of December 31, 2022932,126 12.70 $19,837 
Granted— — 
Exercised(215,856)14.14 $6,519 
Forfeited/cancelled— — 
Outstanding as of December 31, 2023716,270 12.26 $32,115 
Granted— — 
Exercised(133,182)11.75 $5,013 
Forfeited/cancelled(450)7.73 
Outstanding as of December 31, 2024582,638 12.38 1.2$16,225 
Vested and exercisable as of December 31, 2024582,638 $12.38 1.2$16,225 
Summary of Share Based Compensation Valuation of Options Granted Assumptions
The following table reflects the assumptions used in the Black-Scholes option pricing model to calculate the expense related to the ESPP:
 Year Ended December 31,
 202420232022
Expected term (in years)
0.5 - 1.0
0.5 - 1.0
0.5 - 1.0
Expected volatility
37 - 47%
47 - 68%
37 - 57%
Risk-free interest rate
4.0 – 5.4%
4.5 – 5.5%
0.1 – 4.0%
Expected dividend yield
—
—
—
Grant date fair value per share
$9.96 – $17.25
$11.70 – $20.07
$15.50 –$29.58
Summary of Common Shares Issued to Employees
The following table provides the number of common shares issued to employees, the purchase prices and aggregate proceeds for the purchase dates in the years ended December 31, 2024, 2023 and 2022:
 September 13, 2024March 15, 2024September 15, 2023March 15, 2023September 15, 2022March 15, 2022
 
Common shares issued144,445147,445152,419177,886218,314 80,747 
Purchase prices$29.08
$33.78 and $39.78
$33.78$34.71$45.31
$67.59 and $81.37
Aggregate proceeds$4.2 million$5.0 million$5.1 million$6.1 million$6.2 million$5.7 million
v3.25.0.1
Income Taxes (Tables)
 12 Months Ended
Dec. 31, 2024
Income Tax Disclosure [Abstract]  
Summary of Components of Loss Before Income Taxes
Income (loss) before income taxes included in the consolidated statements of operations was as follows:
 Year Ended December 31,
 202420232022
 (in thousands)
United States$35,699 $(139,295)$(109,381)
Foreign5,756 (14,038)(12,924)
Income (loss) before income taxes$41,455 $(153,333)$(122,305)
Summary of Income Tax (Benefit) Expense
Income tax expense included in the consolidated statements of operations was as follows:
 Year Ended December 31,
 202420232022
 (in thousands)
Current:
Federal$2,426 $428 $1 
State and local2,848 1,361 243 
Foreign9,864 3,317 3,608 
Total current tax expense15,138 5,106 3,852 
Deferred:
Federal12 9 10 
State and local— 2 2 
Foreign779 (5,635)(1,452)
Total deferred tax expense (benefit)791 (5,624)(1,440)
Total income tax expense (benefit)$15,929 $(518)$2,412 
Summary of Reconciliation of Income Taxes Computed at Federal Statutory Rate and Provision for Income Taxes
The reconciliation of the federal statutory rate of 21% to the effective income tax rate for the years ended December 31, 2024, 2023 and 2022 was as follows:
 Year Ended December 31,
 202420232022
Federal statutory rate21.0 %21.0 %21.0 %
State taxes, net of federal benefit6.0 (0.5)(0.1)
Permanent differences7.0 (0.9)(0.2)
Stock-based compensation15.7 (7.0)(2.4)
Research and development credits(18.5)0.9 1.4 
Foreign rate differential3.0 0.3 0.1 
Change in valuation allowance(11.2)(3.2)(24.8)
Excess officers' compensation5.5 (1.7)(3.1)
Tax rate change(13.4)(3.4)7.8 
Induced conversion expense— (9.5)— 
Tax reserves12.6 (0.1)(0.2)
Provision to return(0.5)5.2 (0.3)
U.S. taxation of international operations3.5 — — 
Other7.7 (0.8)(1.1)
Effective income tax rate38.4 %0.3 %(1.9)%
Summary of Components of Net Deferred Tax Assets and Liabilities
Net deferred tax assets and liabilities, as set forth in the table below, reflect the impact of temporary differences between the amounts of assets and liabilities recorded for financial statement purposes and such amounts measured in accordance with tax laws:
 As of December 31,
 20242023
 (in thousands)
Deferred tax assets:
Accruals and reserves$824 $335 
Net operating loss carryforwards121,343 137,706 
Deferred revenue3,192 15,726 
Depreciation4,304 836 
Research and development credits13,697 14,116 
Capitalized research and development90,965 63,234 
Operating lease liabilities18,164 24,012 
Stock-based compensation12,290 9,113 
Tax credits— 1,148 
Other3,369 1,170 
Gross deferred tax assets$268,148 $267,396 
Valuation allowance(229,283)(231,661)
Total deferred tax assets$38,865 $35,735 
Deferred tax liabilities:
Operating lease ROU assets$(10,329)$(11,307)
Deferred contract acquisition and fulfillment costs(26,277)(24,251)
Other(2,944)(65)
Total deferred tax liabilities$(39,550)$(35,623)
Net deferred tax liabilities$(685)$112 
Summary of Unrecognized Income Tax Benefits
The following is a reconciliation of the beginning and ending balances of unrecognized tax benefits (excluding interest and penalties), in thousands:
Balance, January 1, 2024$5,041 
Additions based on tax positions related to the current year4,520 
Additions for tax positions of prior years315 
Reductions for tax positions of prior years— 
Settlements— 
Balance, December 31, 2024$9,876 
v3.25.0.1
Net Income (Loss) Per Share (Tables)
 12 Months Ended
Dec. 31, 2024
Earnings Per Share [Abstract]  
Summary of Basic and Diluted Net Loss Per Share of Common Stock
The following table summarizes the computation of basic and diluted net income (loss) per share of our common stock for the years ended December 31, 2024, 2023 and 2022:
 Year Ended December 31,
 202420232022
 (in thousands, except share and per share data)
Numerator:
Net income (loss) used to calculate net income (loss), basic$25,526 $(152,815)$(124,717)
Denominator:
Weighted-average common shares outstanding, basic62,607,583 60,756,087 58,552,065 
Weighted average effect of dilutive shares:
Dilutive effect of equity incentive plans576,068 — — 
Weighted-average common shares outstanding, diluted63,183,651 60,756,087 58,552,065 
Net income (loss) per share, basic$0.41 $(2.52)$(2.13)
Net income (loss) per share, diluted$0.40 $(2.52)$(2.13)
Summary of Anti-Dilutive Securities Excluded from Computation Diluted Weighted Average Shares Outstanding The following potentially dilutive securities outstanding have been excluded from the computation of diluted weighted-average shares outstanding for the respective periods below because they would have been anti-dilutive:
 Year Ended December 31,
 202420232022
Options to purchase common stock— 716,270 932,126 
Unvested restricted stock units— 2,983,020 3,001,443 
Common stock issued in conjunction to acquisitions227,316 115,051 74,627 
Shares to be issued under ESPP91,634 103,778 106,965 
Convertible senior notes11,183,611 11,183,611 9,572,955 
Total11,502,561 15,101,730 13,688,116 
v3.25.0.1
Commitment and Contingencies (Tables)
 12 Months Ended
Dec. 31, 2024
Commitments and Contingencies Disclosure [Abstract]  
Summary of Contractual Obligation, Fiscal Year Maturity
The following table presents details of the future non-cancellable purchase commitments under these agreements as of December 31, 2024 (in thousands):
2025$60,125 
202622,641 
202717,296 
Total$100,062 
v3.25.0.1
Segment Information and Information about Geographic Areas (Tables)
 12 Months Ended
Dec. 31, 2024
Segment Reporting [Abstract]  
Summary of Reconciliation of Consolidating Non-GAAP Income from Operations to GAAP Income (Loss) from Operations
The following table includes segment revenue, segment profit or loss, significant segment expenses regularly provided to the CODM and other segment expenses for the years ended December 31, 2024, 2023 and 2022:
 Year Ended December 31,
 202420232022
 (in thousands)
Total revenue$844,007 $777,707 $685,083 
Adjusted total cost of revenue1
221,664 202,655 185,489 
Adjusted research and development1
135,560 138,754 140,030 
Adjusted sales and marketing1
267,483 280,703 273,482 
Adjusted general and administrative1
55,792 53,374 55,696 
Other segment expenses2
137,982 255,036 155,103 
Net income (loss)$25,526 $(152,815)$(124,717)
1 Adjusted total cost of revenue excludes the impact of stock-based compensation expense and amortization of acquired intangible assets. Adjusted research and development excludes the impact of stock-based compensation expense. Adjusted sales and marketing excludes the impact of stock-based compensation and amortization of acquired intangible assets. Adjusted general and administrative excludes the impact of stock-based compensation, amortization of acquired intangible assets, acquisition-related expenses and litigation-related expenses.
2 Other segment expenses include stock-based compensation expense, amortization of acquired intangible assets, acquisition-related expenses, litigation-related expenses, impairment of long-lived assets, restructuring expense, interest income, interest expense, other income (expense) and provision for (benefit from) income taxes. See the consolidated financial statements for other financial information regarding our operating segment.
Summary of Net Revenues of Customer by Geographic Area
The following table summarizes the revenue by region based on the shipping address of customers who have contracted to use our product or service for the years ended December 31, 2024, 2023 and 2022:
Year Ended December 31,
202420232022
(in thousands)
North America$643,405 $607,448 $541,812 
Rest of world200,602 170,259 143,271 
Total revenue$844,007 $777,707 $685,083 
Net revenues by geographic area presented based upon the location of the customer are as follows:
 Year Ended December 31,
 202420232022
 (in thousands)
North America$643,405 $607,448 $541,812 
Rest of world200,602 170,259 143,271 
Total$844,007 $777,707 $685,083 
Summary of Property and Equipment, Net by Geographic Area
Property and equipment, net by geographic area was as follows:
 As of December 31, 2024As of December 31, 2023
 (in thousands)
North America$22,613 $27,609 
Rest of world9,632 12,033 
Total$32,245 $39,642 
v3.25.0.1
Immaterial Correction of an Error (Tables)
 12 Months Ended
Dec. 31, 2024
Accounting Changes and Error Corrections [Abstract]  
Schedule of Error Corrections and Prior Period Adjustments
The following table sets forth the effect of the immaterial error correction to certain line items of our consolidated statement of operations, consolidated balance sheet and consolidated statement of cash flows as of and for the year ended December 31, 2023:
Year Ended December 31, 2023
As ReportedAdjustmentRevised
(in thousands, except per share amounts)
Consolidated Statement of Operations:
Cost of revenue - product subscriptions$202,904 $236 $203,140 
Cost of revenue - professional services$28,837 $69 $28,906 
Research and development expense$176,776 $1,161 $177,937 
Sales and marketing expense$312,636 $1,025 $313,661 
General and administrative expense$84,276 $1,064 $85,340 
Net income (loss)$(149,260)$(3,555)$(152,815)
Net income (loss) per share, basic$(2.46)$(0.06)$(2.52)
Net income (loss) per share, diluted$(2.46)$(0.06)$(2.52)
Consolidated Statement of Cash Flows:
Net income (loss)$(149,260)$(3,555)$(152,815)
Stock-based compensation expense$108,081 $3,555 $111,636 
Net cash provided by operating activities$104,278 $— $104,278 
As of December 31, 2023
As ReportedAdjustmentRevised
(in thousands)
Consolidated Balance Sheet:
Additional paid-in capital$894,630 $3,555 $898,185 
Accumulated deficit$(1,010,005)$(3,555)$(1,013,560)
Total stockholders' deficit$(118,179)$— $(118,179)
The following tables set forth the effect of the immaterial error corrections to (i) certain line items of our unaudited condensed consolidated statements of operations for the interim periods ended March 31, 2023, June 30, 2023, September 30, 2023 and December 31, 2023, as well as (ii) certain line items of our unaudited condensed consolidated statements of operations and unaudited condensed consolidated statements of cash flows for the interim periods ended March 31, 2024, June 30, 2024 and September 30, 2024. Prospectively, we will effect an immaterial error correction of these unaudited condensed consolidated financial statements for the 2024 interim periods as those statements are reproduced on a comparative basis in our Quarterly Reports on Form 10-Q throughout fiscal year 2025:
Three Months Ended March 31, 2023Three Months Ended June 30, 2023
As ReportedAdjustmentRevisedAs ReportedAdjustmentRevised
(unaudited, in thousands, except per share amounts)(unaudited, in thousands, except per share amounts)
Consolidated Statement of Operations:
Cost of revenue - product subscriptions$48,188 $36 $48,224 $51,148 $78 $51,226 
Cost of revenue - professional services$7,811 $10 $7,821 $7,016 $22 $7,038 
Research and development expense$46,346 $148 $46,494 $50,762 $402 $51,164 
Sales and marketing expense$80,587 $166 $80,753 $83,036 $332 $83,368 
General and administrative expense$24,207 $269 $24,476 $22,888 $562 $23,450 
Net income (loss)$(25,915)$(629)$(26,544)$(66,782)$(1,396)$(68,178)
Net income (loss) per share, basic$(0.43)$(0.01)$(0.44)$(1.10)$(0.03)$(1.13)
Net income (loss) per share, diluted$(0.43)$(0.01)$(0.44)$(1.10)$(0.03)$(1.13)
Three Months Ended September 30, 2023Three Months Ended December 31, 2023
As ReportedAdjustmentRevisedAs ReportedAdjustmentRevised
(unaudited, in thousands, except per share amounts)(unaudited, in thousands, except per share amounts)
Consolidated Statement of Operations:
Cost of revenue - product subscriptions$51,261 $60 $51,321 $52,307 $62 $52,369 
Cost of revenue - professional services$6,569 $21 $6,590 $7,441 $16 $7,457 
Research and development expense$39,940 $309 $40,249 $39,729 $302 $40,031 
Sales and marketing expense$75,699 $284 $75,983 $73,314 $243 $73,557 
General and administrative expense$17,866 $(76)$17,790 $19,314 $309 $19,623 
Net income (loss)$(76,611)$(598)$(77,209)$20,048 $(932)$19,116 
Net income (loss) per share, basic$(1.25)$(0.01)$(1.26)$0.33 $(0.02)$0.31 
Net income (loss) per share, diluted$(1.25)$(0.01)$(1.26)$0.27 $(0.01)$0.26 
Three Months Ended March 31, 2024
As ReportedAdjustmentRevised
(unaudited, in thousands, except per share amounts)
Consolidated Statement of Operations:
Cost of revenue - product subscriptions$54,655 $79 $54,734 
Cost of revenue - professional services$6,248 $12 $6,260 
Research and development expense$40,990 $378 $41,368 
Sales and marketing expense$72,805 $290 $73,095 
General and administrative expense$19,835 $93 $19,928 
Net income (loss)$2,258 $(852)$1,406 
Net income (loss) per share, basic$0.04 $(0.02)$0.02 
Net income (loss) per share, diluted$0.03 $(0.01)$0.02 
Consolidated Statement of Cash Flows:
Net income$2,258 $(852)$1,406 
Stock-based compensation expense$24,893 $852 $25,745 
Net cash provided by operating activities$31,070 $— $31,070 
Three Months Ended June 30, 2024Six Months Ended June 30, 2024
As ReportedAdjustmentRevisedAs ReportedAdjustmentRevised
(unaudited, in thousands, except per share amounts)(unaudited, in thousands, except per share amounts)
Consolidated Statement of Operations:
Cost of revenue - product subscriptions$54,982 $125 $55,107 $109,637 $204 $109,841 
Cost of revenue - professional services$5,866 $19 $5,885 $12,114 $31 $12,145 
Research and development expense$40,056 $392 $40,448 $81,046 $770 $81,816 
Sales and marketing expense$77,795 $331 $78,126 $150,600 $621 $151,221 
General and administrative expense$22,412 $790 $23,202 $42,247 $883 $43,130 
Net income (loss)$8,195 $(1,657)$6,538 $10,453 $(2,509)$7,944 
Net income (loss) per share, basic$0.13 $(0.03)$0.10 $0.13 $(0.05)$0.08 
Net income (loss) per share, diluted$0.11 $(0.02)$0.09 $0.11 $(0.03)$0.08 
Consolidated Statement of Cash Flows:
Net income (loss)$10,453 $(2,509)$7,944 
Stock-based compensation expense$52,302 $2,509 $54,811 
Net cash provided by operating activities$63,928 $— $63,928 
Three Months Ended September 30, 2024Nine Months Ended September 30, 2024
As ReportedAdjustmentRevisedAs ReportedAdjustmentRevised
(unaudited, in thousands, except per share amounts)(unaudited, in thousands, except per share amounts)
Consolidated Statement of Operations:
Cost of revenue - product subscriptions$56,653 $121 $56,774 $166,290 $325 $166,615 
Cost of revenue - professional services$6,364 $19 $6,383 $18,478 $50 $18,528 
Research and development expense$44,565 $411 $44,976 $125,611 $1,181 $126,792 
Sales and marketing expense$74,521 $300 $74,821 $225,121 $921 $226,042 
General and administrative expense$18,590 $293 $18,883 $60,837 $1,176 $62,013 
Net income (loss)$16,554 $(1,144)$15,410 $27,007 $(3,653)$23,354 
Net income (loss) per share, basic$0.26 $(0.02)$0.24 $0.43 $(0.07)$0.36 
Net income (loss) per share, diluted$0.22 $(0.01)$0.21 $0.36 $(0.04)$0.32 
Consolidated Statement of Cash Flows:
Net income (loss)$27,007 $(3,653)$23,354 
Stock-based compensation expense$76,896 $3,653 $80,549 
Net cash provided by operating activities$107,897 $— $107,897 
v3.25.0.1
Summary of Significant Accounting Policies - Additional Information (Details) - USD ($)
 12 Months Ended
Dec. 31, 2024
Dec. 31, 2023
Dec. 31, 2022
Organization Consolidation And Presentation Of Financial Statements Disclosure And Significant Accounting Policies [Line Items]      
Liability, revenue recognized $ 457,500,000    
Unbilled receivables 2,500,000 $ 2,000,000  
Contracts assets 0 0  
Restricted cash $ 7,400,000    
Amortization period 3 years    
Capitalized computer software, additions $ 14,200,000 15,900,000 $ 17,100,000
Write-offs of capitalized internal-use software projects 700,000 3,500,000  
Impairment of long-lived assets 0 30,784,000 0
Impairment losses   22,200,000  
Foreign currency transactional gains (losses) 600,000 (1,400,000)  
Foreign currency re-measurement gains (losses) 3,800,000 (400,000)  
Sales and marketing      
Organization Consolidation And Presentation Of Financial Statements Disclosure And Significant Accounting Policies [Line Items]      
Advertising costs $ 21,700,000 $ 22,400,000 $ 22,700,000
Foreign currency forward contracts designated as cash flow hedges | Designated as Hedging Instrument      
Organization Consolidation And Presentation Of Financial Statements Disclosure And Significant Accounting Policies [Line Items]      
Term of contract 18 months 18 months  
Notional amount $ 50,400,000 $ 49,500,000  
Leasehold Improvements      
Organization Consolidation And Presentation Of Financial Statements Disclosure And Significant Accounting Policies [Line Items]      
Impairment of long-lived assets   $ 8,600,000  
New Customer, Up-sell or Cross-sell      
Organization Consolidation And Presentation Of Financial Statements Disclosure And Significant Accounting Policies [Line Items]      
Amortization period 5 years    
Professional Services Arrangements      
Organization Consolidation And Presentation Of Financial Statements Disclosure And Significant Accounting Policies [Line Items]      
Amortization period 1 year    
v3.25.0.1
Summary of Significant Accounting Policies - Summary of Useful Lives of Property and Equipment (Details)
Dec. 31, 2024
Computer equipment and software  
Property, Plant and Equipment [Line Items]  
Useful life 3 years
Minimum | Furniture and fixtures  
Property, Plant and Equipment [Line Items]  
Useful life 3 years
Maximum | Furniture and fixtures  
Property, Plant and Equipment [Line Items]  
Useful life 5 years
v3.25.0.1
Revenue from Contracts with Customers - Summary of Revenue from Contracts with Customers and Revenue by Region (Details) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2024
Dec. 31, 2023
Dec. 31, 2022
Disaggregation of Revenue [Line Items]      
Total revenue $ 844,007 $ 777,707 $ 685,083
North America      
Disaggregation of Revenue [Line Items]      
Total revenue 643,405 607,448 541,812
Rest of world      
Disaggregation of Revenue [Line Items]      
Total revenue $ 200,602 $ 170,259 $ 143,271
v3.25.0.1
Revenue from Contracts with Customers - Summary of Estimated Revenue Expected to be Recognized in Future Related to Performance Obligations (Details)
$ in Thousands
Dec. 31, 2024
USD ($)
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2025-01-01  
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]  
Remaining performance obligation, amount $ 601,617
Revenue recognition period 12 months
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2026-01-01  
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]  
Remaining performance obligation, amount $ 296,769
Revenue recognition period
Product subscriptions | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2025-01-01  
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]  
Remaining performance obligation, amount $ 587,450
Revenue recognition period 12 months
Product subscriptions | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2026-01-01  
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]  
Remaining performance obligation, amount $ 291,435
Revenue recognition period
Professional services | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2025-01-01  
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]  
Remaining performance obligation, amount $ 14,167
Revenue recognition period 12 months
Professional services | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2026-01-01  
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]  
Remaining performance obligation, amount $ 5,334
Revenue recognition period
v3.25.0.1
Business Combinations - Additional Information (Details)
$ in Thousands
 12 Months Ended
Jul. 03, 2024
USD ($)
employee
installment
Mar. 14, 2023
USD ($)
Dec. 31, 2024
USD ($)
reportingUnit
Dec. 31, 2023
USD ($)
Dec. 31, 2022
USD ($)
Business Acquisition [Line Items]          
Share-based payment arrangement, expense     $ 107,961 $ 111,636 $ 119,902
Number of reporting units | reportingUnit     1    
Goodwill     $ 575,268 536,351 515,631
General and administrative          
Business Acquisition [Line Items]          
Share-based payment arrangement, expense     29,469 $ 31,098 $ 28,378
Noetic Cyber, Inc.          
Business Acquisition [Line Items]          
Total consideration transferred $ 51,152        
Purchase consideration 38,597        
Contingent consideration (other current liabilities and other long-term liabilities) 12,100        
Deferred cash consideration 500        
Business combination contingent consideration payments 20,000        
Business combination, contingent consideration, liability remaining 13,100        
Business combination, earnout consideration 6,900        
Value of equity to be issued $ 2,300        
Number of key employees | employee 2        
Number of installments | installment 3        
Equity issuance period 36 months        
Intangible asset $ 11,500        
Acquisition related transaction costs     800    
Net assets acquired 12,235        
Goodwill 38,917        
Noetic Cyber, Inc. | General and administrative          
Business Acquisition [Line Items]          
Accretion expense     400    
Noetic Cyber, Inc. | Accrued liabilities          
Business Acquisition [Line Items]          
Contingent consideration (other current liabilities and other long-term liabilities)     12,400    
Noetic Cyber, Inc. | Other current liabilities          
Business Acquisition [Line Items]          
Contingent consideration (other current liabilities and other long-term liabilities)     6,900    
Noetic Cyber, Inc. | Other liabilities          
Business Acquisition [Line Items]          
Contingent consideration (other current liabilities and other long-term liabilities)     $ 5,500    
Noetic Cyber, Inc. | Developed technology          
Business Acquisition [Line Items]          
Share-based payment arrangement, expense $ 2,100        
Useful life (in years) 7 years        
Minerva Labs          
Business Acquisition [Line Items]          
Total consideration transferred   $ 34,600      
Purchase consideration   35,000      
Intangible asset   12,800      
Receivable for purchase price adjustments   (400)      
Net assets acquired   13,900      
Goodwill   $ 20,700      
v3.25.0.1
Business Combinations - Summary of Preliminary Allocation of Purchase Price to the Estimated Fair Value of the Assets Acquired and Liabilities (Details) - USD ($)
$ in Thousands
Jul. 03, 2024
Dec. 31, 2024
Dec. 31, 2023
Dec. 31, 2022
Recognized amount of identifiable assets acquired and liabilities assumed:        
Goodwill   $ 575,268 $ 536,351 $ 515,631
Noetic Cyber, Inc.        
Consideration:        
Cash $ 38,597      
Deferred cash consideration 500      
Contingent consideration 12,055      
Fair value of total consideration transferred 51,152      
Recognized amount of identifiable assets acquired and liabilities assumed:        
Cash and cash equivalents 1,296      
Accounts receivable 510      
Prepaid and other current assets 102      
Property and equipment, net 19      
Accrued expenses and other current liabilities (220)      
Deferred revenue (910)      
Other long-term liabilities (62)      
Intangible asset 11,500      
Total identifiable net assets assumed 12,235      
Goodwill 38,917      
Total purchase price allocation $ 51,152      
v3.25.0.1
Investments - Summary of Investments Classified as Available-for-Sale (Details) - USD ($)
$ in Thousands
Dec. 31, 2024
Dec. 31, 2023
Debt and Equity Securities, FV-NI [Line Items]    
Amortized Cost $ 224,187 $ 225,320
Gross Unrealized Gains 328 467
Gross Unrealized Losses (216) (72)
Fair Value 224,299 225,715
U.S government agencies    
Debt and Equity Securities, FV-NI [Line Items]    
Amortized Cost 224,187 222,820
Gross Unrealized Gains 328 467
Gross Unrealized Losses (216) (65)
Fair Value $ 224,299 223,222
Agency bonds    
Debt and Equity Securities, FV-NI [Line Items]    
Amortized Cost   2,500
Gross Unrealized Gains   0
Gross Unrealized Losses   (7)
Fair Value   $ 2,493
v3.25.0.1
Investments - Additional Information (Details)
 12 Months Ended
Dec. 31, 2024
Dec. 31, 2023
Minimum    
Schedule of Held-to-Maturity Securities [Line Items]    
Remaining maturity 1 month 1 month
Maximum    
Schedule of Held-to-Maturity Securities [Line Items]    
Remaining maturity 17 months 18 months
v3.25.0.1
Fair Value Measurements - Summary of Financial Assets and Liabilities Measured and Recorded at Fair Value on Recurring Basis (Details) - USD ($)
$ in Thousands
Dec. 31, 2024
Dec. 31, 2023
Assets:    
Debt securities $ 224,299 $ 225,715
Derivative Asset, Statement of Financial Position [Extensible Enumeration] Other assets, Prepaid expenses and other current assets Other assets, Prepaid expenses and other current assets
Liabilities:    
Derivative Liability, Statement of Financial Position [Extensible Enumeration] Accrued expenses and other current liabilities Accrued expenses and other current liabilities
U.S government agencies    
Assets:    
Debt securities $ 224,299 $ 223,222
Agency bonds    
Assets:    
Debt securities   2,493
Fair Value, Measurements, Recurring    
Assets:    
Foreign currency forward contracts designated as cash flow hedges (prepaid expenses and other current assets and other assets) 96 1,322
Total assets 224,395 227,037
Liabilities:    
Contingent consideration (other current liabilities and other long-term liabilities) 12,422  
Foreign currency forward contracts designated as cash flow hedges (other current and long-term liabilities) 1,415 55
Total liabilities 13,837 55
Fair Value, Measurements, Recurring | U.S government agencies    
Assets:    
Debt securities 224,299 223,222
Fair Value, Measurements, Recurring | Agency bonds    
Assets:    
Debt securities   2,493
Fair Value, Measurements, Recurring | Level 1    
Assets:    
Foreign currency forward contracts designated as cash flow hedges (prepaid expenses and other current assets and other assets) 0 0
Total assets 224,299 223,222
Liabilities:    
Contingent consideration (other current liabilities and other long-term liabilities) 0  
Foreign currency forward contracts designated as cash flow hedges (other current and long-term liabilities) 0 0
Total liabilities 0 0
Fair Value, Measurements, Recurring | Level 1 | U.S government agencies    
Assets:    
Debt securities 224,299 223,222
Fair Value, Measurements, Recurring | Level 1 | Agency bonds    
Assets:    
Debt securities   0
Fair Value, Measurements, Recurring | Level 2    
Assets:    
Foreign currency forward contracts designated as cash flow hedges (prepaid expenses and other current assets and other assets) 96 1,322
Total assets 96 3,815
Liabilities:    
Contingent consideration (other current liabilities and other long-term liabilities) 0  
Foreign currency forward contracts designated as cash flow hedges (other current and long-term liabilities) 1,415 55
Total liabilities 1,415 55
Fair Value, Measurements, Recurring | Level 2 | U.S government agencies    
Assets:    
Debt securities 0 0
Fair Value, Measurements, Recurring | Level 2 | Agency bonds    
Assets:    
Debt securities   2,493
Fair Value, Measurements, Recurring | Level 3    
Assets:    
Foreign currency forward contracts designated as cash flow hedges (prepaid expenses and other current assets and other assets) 0 0
Total assets 0 0
Liabilities:    
Contingent consideration (other current liabilities and other long-term liabilities) 12,422  
Foreign currency forward contracts designated as cash flow hedges (other current and long-term liabilities) 0 0
Total liabilities 12,422 0
Fair Value, Measurements, Recurring | Level 3 | U.S government agencies    
Assets:    
Debt securities $ 0 0
Fair Value, Measurements, Recurring | Level 3 | Agency bonds    
Assets:    
Debt securities   $ 0
v3.25.0.1
Fair Value Measurements - Additional Information (Details) - Convertible Debt
$ in Millions
Dec. 31, 2024
USD ($)
The Notes, Due 2025  
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]  
Interest Rate 2.25%
Convertible debt, fair value disclosures $ 45.2
The Notes, Due 2027  
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]  
Interest Rate 0.25%
Convertible debt, fair value disclosures $ 553.5
The Notes, Due 2029  
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]  
Interest Rate 1.25%
Convertible debt, fair value disclosures $ 284.1
v3.25.0.1
Property and Equipment - Summary of Property and Equipment (Details) - USD ($)
$ in Thousands
Dec. 31, 2024
Dec. 31, 2023
Property, Plant and Equipment [Line Items]    
Property and equipment, gross $ 96,800 $ 93,443
Less accumulated depreciation (64,555) (53,801)
Property and equipment, net 32,245 39,642
Computer equipment and software    
Property, Plant and Equipment [Line Items]    
Property and equipment, gross 28,789 26,442
Furniture and fixtures    
Property, Plant and Equipment [Line Items]    
Property and equipment, gross 10,960 10,850
Leasehold improvements    
Property, Plant and Equipment [Line Items]    
Property and equipment, gross $ 57,051 $ 56,151
v3.25.0.1
Property and Equipment - Additional Information (Details) - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2024
Dec. 31, 2023
Dec. 31, 2022
Property, Plant and Equipment [Abstract]      
Depreciation expense $ 11.1 $ 14.0 $ 13.6
v3.25.0.1
Goodwill and Intangibles - Additional Information (Details) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2024
Dec. 31, 2023
Dec. 31, 2022
Goodwill and Intangible Assets Disclosure [Abstract]      
Goodwill $ 575,268 $ 536,351 $ 515,631
Amortization expense 33,800 $ 31,900 $ 27,500
Capitalized computer software exclude of gross $ 9,800    
v3.25.0.1
Goodwill and Intangibles - Summary of Change in Gross Carrying Amount of Goodwill (Details) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2024
Dec. 31, 2023
Goodwill [Roll Forward]    
Goodwill, beginning balance $ 536,351 $ 515,631
Goodwill, ending balance 575,268 536,351
Minerva acquisition    
Goodwill [Roll Forward]    
Noetic acquisition   $ 20,720
Noetic acquisition    
Goodwill [Roll Forward]    
Noetic acquisition $ 38,917  
v3.25.0.1
Goodwill and Intangibles - Summary of Identifiable Intangible Assets (Details) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2024
Dec. 31, 2023
Finite-Lived Intangible Assets [Line Items]    
Total acquired intangible assets, gross carrying amount $ 161,474 $ 149,974
Total acquired intangible assets, accumulated amortization (107,115) (87,164)
Total acquired intangible assets, net book value 54,359 62,810
Accumulated Amortization (144,633) (110,799)
Total intangible assets, gross carrying amount 230,352 205,345
Intangible assets, net book value $ 85,719 94,546
Developed technology    
Finite-Lived Intangible Assets [Line Items]    
Weighted- Average Estimated Useful Life (years) 6 years 1 month 6 days  
Total acquired intangible assets, gross carrying amount $ 146,855 135,355
Total acquired intangible assets, accumulated amortization (94,193) (77,031)
Total acquired intangible assets, net book value $ 52,662 58,324
Customer relationships    
Finite-Lived Intangible Assets [Line Items]    
Weighted- Average Estimated Useful Life (years) 4 years 6 months  
Total acquired intangible assets, gross carrying amount $ 12,000 12,000
Total acquired intangible assets, accumulated amortization (10,363) (7,755)
Total acquired intangible assets, net book value $ 1,637 4,245
Trade names    
Finite-Lived Intangible Assets [Line Items]    
Weighted- Average Estimated Useful Life (years) 3 years 1 month 6 days  
Total acquired intangible assets, gross carrying amount $ 2,619 2,619
Total acquired intangible assets, accumulated amortization (2,559) (2,379)
Total acquired intangible assets, net book value $ 60 240
Internal-use software    
Finite-Lived Intangible Assets [Line Items]    
Weighted- Average Estimated Useful Life (years) 3 years  
Gross Carrying Amount $ 68,878 55,371
Accumulated Amortization (37,518) (23,635)
Net Book Value $ 31,360 $ 31,736
v3.25.0.1
Goodwill and Intangibles - Summary of Estimated Amortization Expense (Details
$ in Thousands
Dec. 31, 2024
USD ($)
Goodwill and Intangible Assets Disclosure [Abstract]  
2025 $ 32,532
2026 22,432
2027 10,016
2028 3,243
2029 3,243
2030 4,409
Net Book Value $ 75,875
v3.25.0.1
Deferred Contract Acquisition and Fulfillment Costs (Details) - Contract Acquisition And Fulfillment Costs - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2024
Dec. 31, 2023
Capitalized Contract Costs [Roll Forward]    
Beginning balance $ 121,609 $ 103,075
Capitalization of contract acquisition and fulfillment costs 57,796 60,528
Amortization of deferred contract acquisition and fulfillment costs (53,599) (41,994)
Ending balance $ 125,806 $ 121,609
v3.25.0.1
Derivative and Hedging Activities (Details) - Foreign currency forward contracts designated as cash flow hedges - Designated as Hedging Instrument - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2024
Dec. 31, 2023
Derivative [Line Items]    
Term of contract 18 months 18 months
Notional amount $ 50.4 $ 49.5
v3.25.0.1
Debt - Additional Information (Details) - USD ($)
 1 Months Ended 12 Months Ended
Sep. 30, 2023
Dec. 31, 2021
Mar. 31, 2021
May 31, 2020
Dec. 31, 2024
Dec. 31, 2023
Dec. 31, 2022
Sep. 30, 2021
Apr. 30, 2020
Debt Instrument [Line Items]                  
Proceeds from convertible debt         $ 0 $ 292,091,000 $ 0    
Convertible Debt | Debt Covenant Three                  
Debt Instrument [Line Items]                  
Redemption price, percentage       100.00%          
2025 Notes | Convertible Debt                  
Debt Instrument [Line Items]                  
Face amount       $ 230,000,000          
Converted amount $ 201,000,000                
Repurchased face amount 184,000,000                
Proceeds from convertible debt       222,800,000          
2027 Notes | Convertible Debt                  
Debt Instrument [Line Items]                  
Face amount     $ 600,000,000            
Proceeds from convertible debt     $ 585,000,000            
2029 Notes | Convertible Debt                  
Debt Instrument [Line Items]                  
Face amount 300,000,000                
Proceeds from convertible debt $ 292,000,000                
Credit Agreement                  
Debt Instrument [Line Items]                  
Maximum borrowing capacity   $ 150,000,000              
Credit Agreement | Revolving Credit Facility                  
Debt Instrument [Line Items]                  
Current borrowing capacity   100,000,000   $ 50,000,000         $ 30,000,000
Credit sublimit                 15,000,000
Maximum borrowing capacity   100,000,000           $ 50,000,000  
Fee amount   $ 400,000              
Commitment fee percentage   0.20%              
Credit Agreement | Letter of Credit                  
Debt Instrument [Line Items]                  
Credit sublimit   $ 15,000,000              
Maximum borrowing capacity                 $ 70,000,000
Credit Agreement | Secured Overnight Financing Rate (SOFR)                  
Debt Instrument [Line Items]                  
Sofr Spread Rate   0.10%              
Basis spread on variable rate   2.50%              
Credit Agreement | Base Rate                  
Debt Instrument [Line Items]                  
Basis spread on variable rate   0.00%              
v3.25.0.1
Debt - Summary of Long-term Debt Instruments (Details) - Convertible Debt
shares in Millions
 12 Months Ended
Dec. 31, 2024
shares
$ / shares
2025 Notes  
Debt Instrument [Line Items]  
Interest Rate 2.25%
Effective Interest Rate 2.88%
Initial Conversion Rate per $1,000 Principal 0.0163875
Initial conversion price (in dollars per share) | $ / shares $ 61.02
Number of shares (in shares) | shares 0.8
2027 Notes  
Debt Instrument [Line Items]  
Interest Rate 0.25%
Effective Interest Rate 0.67%
Initial Conversion Rate per $1,000 Principal 0.009673
Initial conversion price (in dollars per share) | $ / shares $ 103.38
Number of shares (in shares) | shares 5.8
2029 Notes  
Debt Instrument [Line Items]  
Interest Rate 1.25%
Effective Interest Rate 1.69%
Initial Conversion Rate per $1,000 Principal 0.0154213
Initial conversion price (in dollars per share) | $ / shares $ 64.85
Number of shares (in shares) | shares 4.6
v3.25.0.1
Debt - Summary of Liability and Equity Components of Convertible Debt (Details) - Convertible Debt - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2024
Dec. 31, 2023
Dec. 31, 2022
Debt Instrument [Line Items]      
Amortization of debt issuance costs $ 4,255 $ 3,947 $ 3,893
2025 Notes      
Debt Instrument [Line Items]      
Principal 45,992 45,992  
Unamortized debt issuance costs (97) (404)  
Total 45,895 45,588  
Amortization of debt issuance costs 307 1,066 1,425
2027 Notes      
Debt Instrument [Line Items]      
Principal 600,000 600,000  
Unamortized debt issuance costs (5,564) (8,077)  
Total 594,436 591,923  
Amortization of debt issuance costs 2,513 2,487 $ 2,468
2029 Notes      
Debt Instrument [Line Items]      
Principal 300,000 300,000  
Unamortized debt issuance costs (6,080) (7,515)  
Total 293,920 292,485  
Amortization of debt issuance costs $ 1,435 $ 394  
v3.25.0.1
Debt - Summary of Interest Expense (Details) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2024
Dec. 31, 2023
Dec. 31, 2022
Debt Instrument [Line Items]      
Induced conversion expense $ 0 $ 53,889 $ 0
Convertible Debt      
Debt Instrument [Line Items]      
Contractual interest expense 6,284 6,462 6,676
Amortization of debt issuance costs 4,255 3,947 3,893
Induced conversion expense 0 53,889 0
Total interest expense 10,539 64,298 10,569
Convertible Debt | 2025 Notes      
Debt Instrument [Line Items]      
Contractual interest expense 1,035 3,795 5,174
Amortization of debt issuance costs 307 1,066 1,425
Induced conversion expense 0 53,889 0
Total interest expense 1,342 58,750 6,599
Convertible Debt | 2027 Notes      
Debt Instrument [Line Items]      
Contractual interest expense 1,500 1,500 1,502
Amortization of debt issuance costs 2,513 2,487 2,468
Induced conversion expense 0 0 0
Total interest expense 4,013 3,987 $ 3,970
Convertible Debt | 2029 Notes      
Debt Instrument [Line Items]      
Contractual interest expense 3,749 1,167  
Amortization of debt issuance costs 1,435 394  
Induced conversion expense 0 0  
Total interest expense $ 5,184 $ 1,561  
v3.25.0.1
Debt - Summary of Other Key Terms and Premiums Paid for the Capped Calls (Details) - Call Option
$ / shares in Units, $ in Thousands
 12 Months Ended
Dec. 31, 2024
USD ($)
$ / shares
Capped Calls Entered into in Connection with the Issuance of the 2025 Notes  
Debt Instrument [Line Items]  
Initial strike price, subject to certain adjustments (in dollars per share) $ 61.02
Cap price, subject to certain adjustments (in dollars per share) $ 93.88
Total premium paid | $ $ 27,255
Capped Calls Entered into in Connection with the Issuance of the 2027 Notes  
Debt Instrument [Line Items]  
Initial strike price, subject to certain adjustments (in dollars per share) $ 103.38
Cap price, subject to certain adjustments (in dollars per share) $ 159.04
Total premium paid | $ $ 76,020
Capped Calls Entered into in Connection with the Issuance of the 2029 Notes  
Debt Instrument [Line Items]  
Initial strike price, subject to certain adjustments (in dollars per share) $ 64.85
Cap price, subject to certain adjustments (in dollars per share) $ 97.88
Total premium paid | $ $ 36,570
v3.25.0.1
Leases - Additional Information (Details)
$ in Thousands
 12 Months Ended
Dec. 31, 2024
USD ($)
leaseRenewalOption
Dec. 31, 2023
USD ($)
Dec. 31, 2022
USD ($)
Lessee, Lease, Description [Line Items]      
Lease term 4 years 10 months 24 days 5 years 8 months 12 days  
Number of lease renewal options | leaseRenewalOption 1    
Renewal term 5 years    
Termination period 1 year    
Impairment of long-lived assets $ 0 $ 30,784 $ 0
Impairment losses   22,200  
Office Building      
Lessee, Lease, Description [Line Items]      
Lease term 7 years 3 months 18 days    
Leasehold Improvements      
Lessee, Lease, Description [Line Items]      
Impairment of long-lived assets   $ 8,600  
v3.25.0.1
Leases - Summary of Components of Lease Expense (Details) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2024
Dec. 31, 2023
Leases [Abstract]    
Operating lease costs $ 16,129 $ 16,776
Short-term lease costs 951 1,259
Variable lease costs 8,825 8,219
Total lease costs $ 25,905 $ 26,254
v3.25.0.1
Leases - Summary of Supplemental Balance Sheet Information Related to Operating Leases (Details)
Dec. 31, 2024
Dec. 31, 2023
Leases [Abstract]    
Weighted average remaining lease term (in years) - operating leases 4 years 10 months 24 days 5 years 8 months 12 days
Weighted average discount rate - operating leases 6.40% 6.40%
v3.25.0.1
Leases - Summary of Supplemental Cash Flow Information Related to Leases (Details) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2024
Dec. 31, 2023
Leases [Abstract]    
Cash paid for amounts included in the measurement of lease liabilities $ 22,870 $ 19,999
ROU assets obtained in exchange for new lease obligations $ 4,488 $ 8,119
v3.25.0.1
Leases - Summary of Maturities of Operating Lease Liabilities (Details)
$ in Thousands
Dec. 31, 2024
USD ($)
Leases [Abstract]  
2025 $ 20,926
2026 18,941
2027 18,761
2028 19,333
2029 16,601
2030 and thereafter 3,275
Total lease payments 97,837
Less: imputed interest (13,914)
Total $ 83,923
v3.25.0.1
Stock-Based Compensation - Additional Information (Details)
$ in Thousands
 1 Months Ended 12 Months Ended
Oct. 08, 2015
shares
Jul. 31, 2024
shares
Jan. 31, 2024
USD ($)
installment
shares
Jul. 31, 2015
shares
Dec. 31, 2024
USD ($)
shares
Dec. 31, 2023
USD ($)
Dec. 31, 2022
USD ($)
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]              
Share-based payment arrangement, expense | $         $ 107,961 $ 111,636 $ 119,902
Number of vesting installments | installment     3        
Purchase price of common stock by employees percentage         85.00%    
Performance Stock Units              
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]              
Vesting period     1 year        
Granted (in shares)     279,570        
Maximum target payout in shares (percent)     200.00%        
Performance Stock Units | January 2024 Grant              
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]              
Share-based payment arrangement, expense | $     $ 3,400        
Targets level attainment (percent)     50.00%        
Performance Stock Units | July 2024 Grant              
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]              
Share-based payment arrangement, expense | $         $ 600    
Granted (in shares)   19,605          
2015 Plan              
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]              
Number of shares of common stock reserved for future issuance (in shares)       800,000      
Share-based compensation, increase in number of shares reserved and available for issuance as percentage under the plan       4.00%      
Increase in number of shares authorized (in shares) 1,500,000            
Number of shares authorized (in shares)         25,042,693    
Shares available for grant (in shares)         6,118,316    
2015 Plan | Minimum              
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]              
Vesting period         3 years    
2015 Plan | Maximum              
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]              
Vesting period         4 years    
2024 Bonus Plan              
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]              
Share-based payment arrangement, expense | $         $ 900    
2023 Bonus Plan              
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]              
Share-based payment arrangement, expense | $           $ 1,600  
2022 Bonus Plan              
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]              
Share-based payment arrangement, expense | $             $ 1,000
Shares to be issued under ESPP              
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]              
Share-based compensation, increase in number of shares reserved and available for issuance as percentage under the plan         1.00%    
Number of shares authorized (in shares)         5,370,139    
Shares available for grant (in shares)         3,076,461    
Shares to be issued under ESPP | Maximum              
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]              
Employee withholding percentage         15.00%    
v3.25.0.1
Stock-Based Compensation - Summary of Stock-Based Compensation Expense (Details) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2024
Dec. 31, 2023
Dec. 31, 2022
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]      
Share-based payment arrangement, expense $ 107,961 $ 111,636 $ 119,902
Cost of revenue      
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]      
Share-based payment arrangement, expense 12,208 11,005 10,367
Research and development      
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]      
Share-based payment arrangement, expense 37,566 39,183 49,940
Sales and marketing      
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]      
Share-based payment arrangement, expense 28,718 30,350 31,217
General and administrative      
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]      
Share-based payment arrangement, expense $ 29,469 $ 31,098 $ 28,378
v3.25.0.1
Stock-Based Compensation - Summary of Unrecognized Compensation Expense and Estimated Weighted Average Amortization Periods Remaining (Details)
$ in Thousands
 12 Months Ended
Dec. 31, 2024
USD ($)
RSUs and PSUs  
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]  
Unrecognized compensation cost, restricted stock $ 137,525
Unrecognized compensation, recognition period 1 year 10 months 24 days
Purchase rights under our ESPP  
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]  
Unrecognized compensation cost, restricted stock $ 1,734
Unrecognized compensation, recognition period 7 months 6 days
Earnout and key employee consideration shares  
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]  
Unrecognized compensation cost, restricted stock $ 7,391
Unrecognized compensation, recognition period 1 year 9 months 18 days
v3.25.0.1
Stock-Based Compensation - Summary of Restricted Stock, Restricted Stock Units and Performance-Based Restricted Stock Units (Details) - RSUs and PSUs - $ / shares
 12 Months Ended
Dec. 31, 2024
Dec. 31, 2023
Dec. 31, 2022
Shares              
Unvested balance, Beginning balance (in shares) 2,714,426 3,001,443 2,778,877
Granted (in shares) 2,563,810 2,304,140 2,327,216
Vested (in shares) (1,462,352) (1,453,713) (1,481,333)
Forfeited (in shares) (962,649) (1,137,444) (623,317)
Unvested balance, Ending balance (in shares) 2,853,235 2,714,426 3,001,443
Weighted- Average Grant Date Fair Value      
Beginning balance (in dollars per share) $ 66.40 $ 83.88 $ 74.40
Granted (in dollars per share) 53.99 48.83 86.78
Vested (in dollars per share) 64.78 73.29 69.80
Forfeited (in dollars per share) 62.16 67.93 85.93
Ending Balance (in dollars per share) $ 57.25 $ 66.40 $ 83.88
v3.25.0.1
Stock-Based Compensation - Summary of Stock Option Activity (Details) - USD ($)
$ / shares in Units, $ in Thousands
 12 Months Ended
Dec. 31, 2024
Dec. 31, 2023
Dec. 31, 2022
Dec. 31, 2021
Shares                
Beginning balance (in shares) 716,270 932,126 1,411,387  
Granted (in shares) 0 0 0  
Exercised (in shares) (133,182) (215,856) (479,223)  
Forfeited/cancelled (in shares) (450) 0 (38)  
Ending balance (in shares) 582,638 716,270 932,126  
Vested and exercisable (in shares) 582,638      
Weighted Average Exercise Price        
Beginning balance (in dollars per share) $ 12.26 $ 12.70 $ 10.74  
Granted (in dollars per share) 0 0 0  
Exercised (in dollars per share) 11.75 14.14 6.92  
Forfeited/cancelled (in dollars per share) 7.73 0 21.15  
Ending balance (in dollars per share) 12.38 $ 12.26 $ 12.70  
Vested and exercisable (in dollars per share) $ 12.38      
Weighted Average Remaining Contractual Life (in years)        
Outstanding 1 year 2 months 12 days      
Vested and exercisable 1 year 2 months 12 days      
Aggregate Intrinsic Value (in thousands)        
Exercised $ 5,013 $ 6,519 $ 20,764  
Outstanding 16,225 $ 32,115 $ 19,837 $ 150,951
Vested and exercisable $ 16,225      
v3.25.0.1
Stock-Based Compensation - Summary of Share Based Compensation Valuation of Options Granted Assumptions (Details) - Shares to be issued under ESPP - $ / shares
 12 Months Ended
Dec. 31, 2024
Dec. 31, 2023
Dec. 31, 2022
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]      
Expected volatility, minimum 37.00% 47.00% 37.00%
Expected volatility, maximum 47.00% 68.00% 57.00%
Risk-free interest rate, minimum 4.00% 4.50% 0.10%
Risk-free interest rate, maximum 5.40% 5.50% 4.00%
Expected dividend yield 0.00% 0.00% 0.00%
Minimum      
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]      
Expected term 6 months 6 months 6 months
Grant date fair value per share, maximum (in dollars per share) $ 9.96 $ 11.70 $ 15.50
Maximum      
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]      
Expected term 1 year 1 year 1 year
Grant date fair value per share, maximum (in dollars per share) $ 17.25 $ 20.07 $ 29.58
v3.25.0.1
Stock-Based Compensation - Summary of Common Shares Issued to Employees (Details) - USD ($)
$ / shares in Units, $ in Millions
Sep. 13, 2024
Mar. 15, 2024
Sep. 15, 2023
Mar. 15, 2023
Sep. 15, 2022
Mar. 15, 2022
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]            
Common shares issued (in shares) 144,445 147,445 152,419 177,886 218,314 80,747
Purchase prices (in dollars per share) $ 29.08   $ 33.78 $ 34.71 $ 45.31  
Aggregate proceeds $ 4.2 $ 5.0 $ 5.1 $ 6.1 $ 6.2 $ 5.7
Minimum            
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]            
Purchase prices (in dollars per share)   $ 33.78       $ 67.59
Maximum            
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]            
Purchase prices (in dollars per share)   $ 39.78       $ 81.37
v3.25.0.1
Income Taxes - Components of Loss Before Income Taxes (Details) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2024
Dec. 31, 2023
Dec. 31, 2022
Income Tax Disclosure [Abstract]      
United States $ 35,699 $ (139,295) $ (109,381)
Foreign 5,756 (14,038) (12,924)
Income (loss) before income taxes $ 41,455 $ (153,333) $ (122,305)
v3.25.0.1
Income Taxes - Summary of Income Tax (Benefit) Expense (Details) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2024
Dec. 31, 2023
Dec. 31, 2022
Current:      
Federal $ 2,426 $ 428 $ 1
State and local 2,848 1,361 243
Foreign 9,864 3,317 3,608
Total current tax expense 15,138 5,106 3,852
Deferred:      
Federal 12 9 10
State and local 0 2 2
Foreign 779 (5,635) (1,452)
Total deferred tax expense (benefit) 791 (5,624) (1,440)
Total income tax expense (benefit) $ 15,929 $ (518) $ 2,412
v3.25.0.1
Income Taxes - Reconciliation of Income Taxes Computed at Federal Statutory Rate and Provision for Income Taxes (Details)
 12 Months Ended
Dec. 31, 2024
Dec. 31, 2023
Dec. 31, 2022
Income Tax Disclosure [Abstract]      
Federal statutory rate 21.00% 21.00% 21.00%
State taxes, net of federal benefit 6.00% (0.50%) (0.10%)
Permanent differences 7.00% (0.90%) (0.20%)
Stock-based compensation 15.70% (7.00%) (2.40%)
Research and development credits (18.50%) 0.90% 1.40%
Foreign rate differential 3.00% 0.30% 0.10%
Change in valuation allowance (11.20%) (3.20%) (24.80%)
Excess officers' compensation 5.50% (1.70%) (3.10%)
Tax rate change (13.40%) (3.40%) 7.80%
Induced conversion expense 0.00% (9.50%) 0.00%
Tax reserves 12.60% (0.10%) (0.20%)
Provision to return (0.50%) 5.20% (0.30%)
U.S. taxation of international operations 3.50% 0.00% 0.00%
Other 7.70% (0.80%) (1.10%)
Effective income tax rate 38.40% 0.30% (1.90%)
v3.25.0.1
Income Taxes - Components of Net Deferred Tax Assets and Liabilities (Details) - USD ($)
$ in Thousands
Dec. 31, 2024
Dec. 31, 2023
Deferred tax assets:    
Accruals and reserves $ 824 $ 335
Net operating loss carryforwards 121,343 137,706
Deferred revenue 3,192 15,726
Depreciation 4,304 836
Research and development credits 13,697 14,116
Capitalized research and development 90,965 63,234
Operating lease liabilities 18,164 24,012
Stock-based compensation 12,290 9,113
Tax credits 0 1,148
Other 3,369 1,170
Gross deferred tax assets 268,148 267,396
Valuation allowance (229,283) (231,661)
Total deferred tax assets 38,865 35,735
Deferred tax liabilities:    
Operating lease ROU assets (10,329) (11,307)
Deferred contract acquisition and fulfillment costs (26,277) (24,251)
Other (2,944) (65)
Total deferred tax liabilities (39,550) (35,623)
Net deferred tax liabilities   $ 112
Net deferred tax liabilities $ (685)  
v3.25.0.1
Income Taxes - Additional Information (Details)
$ in Thousands, ₪ in Millions
 3 Months Ended 12 Months Ended
Jun. 30, 2024
USD ($)
Jun. 30, 2024
ILS (₪)
Dec. 31, 2024
USD ($)
Dec. 31, 2023
USD ($)
Dec. 31, 2022
USD ($)
Operating Loss Carryforwards [Line Items]          
Increase in deferred tax assets       $ 91,000 $ 63,200
Additional tax credit valuation allowance     $ 4,200    
Deferred tax benefit     (791) 5,624 1,440
Current foreign tax expense (benefit)     9,864 3,317 3,608
Deferred foreign income tax expense (benefit)     779 (5,635) $ (1,452)
Unrecognized tax benefits     9,876 $ 5,041  
Unrecognized tax benefits, interest on income taxes expense     400    
Income tax examination amount assessed by taxing authorities $ 88,000 ₪ 324      
Taxes expected to be imposed upon the repatriation of unremitted foreign earnings     $ 100    
Minimum          
Operating Loss Carryforwards [Line Items]          
Statute of limitation jurisdictions period     3 years    
Maximum          
Operating Loss Carryforwards [Line Items]          
Statute of limitation jurisdictions period     7 years    
Decrease in Operating Losses          
Operating Loss Carryforwards [Line Items]          
Decrease in valuation allowance     $ 2,400    
Release of Valuation Allowance Related to Net Deferred Tax Assets in Israel          
Operating Loss Carryforwards [Line Items]          
Decrease in valuation allowance     1,700    
Domestic Tax Jurisdiction          
Operating Loss Carryforwards [Line Items]          
Net operating loss carryforwards, federal     265,600    
Operating loss carryforward not subject to expiration     251,500    
Domestic Tax Jurisdiction | Research and Development          
Operating Loss Carryforwards [Line Items]          
Research and development credit carryforwards     9,300    
State and Local Jurisdiction          
Operating Loss Carryforwards [Line Items]          
Net operating loss carryforwards, federal     306,000    
Operating loss carryforward not subject to expiration     47,800    
State and Local Jurisdiction | Research and Development          
Operating Loss Carryforwards [Line Items]          
Research and development credit carryforwards     4,100    
Foreign Tax Jurisdiction          
Operating Loss Carryforwards [Line Items]          
Operating loss carryforward not subject to expiration     215,500    
Foreign Tax Jurisdiction | Research and Development          
Operating Loss Carryforwards [Line Items]          
Research and development credit carryforwards     $ 300    
v3.25.0.1
Income Taxes - Unrecognized Tax Benefits (Details)
$ in Thousands
 12 Months Ended
Dec. 31, 2024
USD ($)
Unrecognized Tax Benefits [Roll Forward]  
Beginning balance $ 5,041
Additions based on tax positions related to the current year 4,520
Additions for tax positions of prior years 315
Reductions for tax positions of prior years 0
Settlements 0
Ending balance $ 9,876
v3.25.0.1
Net Income (Loss) Per Share - Summary of Basic and Diluted Net Loss Per Share of Common Stock (Details) - USD ($)
$ / shares in Units, $ in Thousands
 3 Months Ended 6 Months Ended 9 Months Ended 12 Months Ended
Sep. 30, 2024
Jun. 30, 2024
Mar. 31, 2024
Dec. 31, 2023
Sep. 30, 2023
Jun. 30, 2023
Mar. 31, 2023
Jun. 30, 2024
Sep. 30, 2024
Dec. 31, 2024
Dec. 31, 2023
Dec. 31, 2022
Numerator:                        
Net income (loss) used to calculate net income (loss), basic $ 15,410 $ 6,538 $ 1,406 $ 19,116 $ (77,209) $ (68,178) $ (26,544) $ 7,944 $ 23,354 $ 25,526 $ (152,815) $ (124,717)
Denominator:                        
Weighted-average common shares outstanding, basic (in Shares)                   62,607,583 60,756,087 58,552,065
Dilutive effect of equity incentive plans (in shares)                   576,068 0 0
Weighted-average common shares outstanding, diluted (in Shares)                   63,183,651 60,756,087 58,552,065
Net loss per share, basic (in dollars per share) $ 0.24 $ 0.10 $ 0.02 $ 0.31 $ (1.26) $ (1.13) $ (0.44) $ 0.08 $ 0.36 $ 0.41 $ (2.52) $ (2.13)
Net loss per share, diluted (in dollars per share) $ 0.21 $ 0.09 $ 0.02 $ 0.26 $ (1.26) $ (1.13) $ (0.44) $ 0.08 $ 0.32 $ 0.40 $ (2.52) $ (2.13)
v3.25.0.1
Net Income (Loss) Per Share - Summary of Antidilutive Securities Excluded From Computation Diluted Weighted Average Shares Outstanding (Details) - shares
 12 Months Ended
Dec. 31, 2024
Dec. 31, 2023
Dec. 31, 2022
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]      
Antidilutive securities excluded from computation of earnings per share amount (in shares) 11,502,561 15,101,730 13,688,116
Options to purchase common stock      
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]      
Antidilutive securities excluded from computation of earnings per share amount (in shares) 0 716,270 932,126
Unvested restricted stock units      
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]      
Antidilutive securities excluded from computation of earnings per share amount (in shares) 0 2,983,020 3,001,443
Common stock issued in conjunction to acquisitions      
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]      
Antidilutive securities excluded from computation of earnings per share amount (in shares) 227,316 115,051 74,627
Shares to be issued under ESPP      
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]      
Antidilutive securities excluded from computation of earnings per share amount (in shares) 91,634 103,778 106,965
Convertible senior notes      
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]      
Antidilutive securities excluded from computation of earnings per share amount (in shares) 11,183,611 11,183,611 9,572,955
v3.25.0.1
Commitment and Contingencies - Purchase Obligations (Details)
$ in Thousands
Dec. 31, 2024
USD ($)
Commitments and Contingencies Disclosure [Abstract]  
2025 $ 60,125
2026 22,641
2027 17,296
Total $ 100,062
v3.25.0.1
Commitment and Contingencies - Additional Information (Details)
$ in Thousands, ₪ in Millions
 3 Months Ended
Jun. 30, 2024
ILS (₪)
Jun. 30, 2024
USD ($)
Jan. 31, 2025
USD ($)
Dec. 31, 2024
USD ($)
Purchase Commitment, Excluding Long-Term Commitment [Line Items]        
2025       $ 60,125
2026       22,641
2027       17,296
Total       $ 100,062
Income tax examination amount assessed by taxing authorities ₪ 324 $ 88,000    
Amazon Web Services (AWS) | Subsequent Event        
Purchase Commitment, Excluding Long-Term Commitment [Line Items]        
2025     $ 93,800  
2026     125,000  
2027     125,000  
2028     125,000  
2029     125,000  
Total     593,800  
Additional obligation over the five-year period     $ 35,000  
v3.25.0.1
Employee Benefit Plan - Additional Information (Details) - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2024
Dec. 31, 2023
Dec. 31, 2022
Retirement Benefits [Abstract]      
Requisite service period for eligibility in 401(k) plan 90 days    
Employer discretionary contributions $ 3.5 $ 4.3 $ 4.3
v3.25.0.1
Segment Information and Information about Geographic Areas - Summary of Reconciliation of Consolidated Non-GAAP Income from Operations to GAAP Income (Loss) from Operations (Details) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2024
Dec. 31, 2023
Dec. 31, 2022
Segment Reporting Information [Line Items]      
Total revenue $ 844,007 $ 777,707 $ 685,083
Income (loss) from operations 35,035 (84,288) (111,614)
Reportable Segment      
Segment Reporting Information [Line Items]      
Total revenue 844,007 777,707 685,083
Adjusted total cost of revenue 221,664 202,655 185,489
Adjusted research and development 135,560 138,754 140,030
Adjusted sales and marketing 267,483 280,703 273,482
Adjusted general and administrative 55,792 53,374 55,696
Other segment items 137,982 255,036 155,103
Income (loss) from operations $ 25,526 $ (152,815) $ (124,717)
v3.25.0.1
Segment Information and Information about Geographic Areas - Summary of Net Revenues of Customer by Geographic Area (Details) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2024
Dec. 31, 2023
Dec. 31, 2022
Revenues from External Customers and Long-Lived Assets [Line Items]      
Total revenue $ 844,007 $ 777,707 $ 685,083
North America      
Revenues from External Customers and Long-Lived Assets [Line Items]      
Total revenue 643,405 607,448 541,812
Rest of world      
Revenues from External Customers and Long-Lived Assets [Line Items]      
Total revenue $ 200,602 $ 170,259 $ 143,271
v3.25.0.1
Segment Information and Information about Geographic Areas - Summary of Property and Equipment, Net by Geographic Area (Details) - USD ($)
$ in Thousands
Dec. 31, 2024
Dec. 31, 2023
Revenues from External Customers and Long-Lived Assets [Line Items]    
Property and equipment, net $ 32,245 $ 39,642
North America    
Revenues from External Customers and Long-Lived Assets [Line Items]    
Property and equipment, net 22,613 27,609
Rest of world    
Revenues from External Customers and Long-Lived Assets [Line Items]    
Property and equipment, net $ 9,632 $ 12,033
v3.25.0.1
Restructuring (Details) - USD ($)
$ in Thousands
 3 Months Ended 12 Months Ended
Aug. 07, 2023
Mar. 31, 2024
Dec. 31, 2024
Dec. 31, 2023
Dec. 31, 2022
Restructuring Cost and Reserve [Line Items]          
Workforce reduction percentage 16.00%        
Restructuring charges   $ 200 $ 0 $ 22,227 $ 0
Accelerated cost       1,300  
Restructuring reserve, accrual       3,800  
Facility Closing          
Restructuring Cost and Reserve [Line Items]          
Restructuring charges       $ 3,600  
v3.25.0.1
Immaterial Correction of an Error - Schedule of Error Corrections and Prior Period Adjustments (Details) - USD ($)
$ / shares in Units, $ in Thousands
 3 Months Ended 6 Months Ended 9 Months Ended 12 Months Ended
Sep. 30, 2024
Jun. 30, 2024
Mar. 31, 2024
Dec. 31, 2023
Sep. 30, 2023
Jun. 30, 2023
Mar. 31, 2023
Jun. 30, 2024
Sep. 30, 2024
Dec. 31, 2024
Dec. 31, 2023
Dec. 31, 2022
Error Corrections and Prior Period Adjustments Restatement [Line Items]                        
Cost of revenue                   $ 251,035 $ 232,046 $ 214,349
Research and development expense $ 44,976 $ 40,448 $ 41,368 $ 40,031 $ 40,249 $ 51,164 $ 46,494 $ 81,816 $ 126,792 173,126 177,937 189,970
Sales and marketing expense 74,821 78,126 73,095 73,557 75,983 83,368 80,753 151,221 226,042 298,809 313,661 307,409
General and administrative expense 18,883 23,202 19,928 19,623 17,790 23,450 24,476 43,130 62,013 86,002 85,340 84,969
Net income (loss) $ 15,410 $ 6,538 $ 1,406 $ 19,116 $ (77,209) $ (68,178) $ (26,544) $ 7,944 $ 23,354 $ 25,526 $ (152,815) $ (124,717)
Net income (loss) per share, basic (in dollars per share) $ 0.24 $ 0.10 $ 0.02 $ 0.31 $ (1.26) $ (1.13) $ (0.44) $ 0.08 $ 0.36 $ 0.41 $ (2.52) $ (2.13)
Net income (loss) per share, diluted (in dollars per share) $ 0.21 $ 0.09 $ 0.02 $ 0.26 $ (1.26) $ (1.13) $ (0.44) $ 0.08 $ 0.32 $ 0.40 $ (2.52) $ (2.13)
Stock-based compensation expense     $ 25,745         $ 54,811 $ 80,549 $ 107,961 $ 111,636 $ 119,902
Net cash provided by operating activities     31,070         63,928 107,897 171,670 104,278 78,204
As Reported                        
Error Corrections and Prior Period Adjustments Restatement [Line Items]                        
Research and development expense $ 44,565 $ 40,056 40,990 $ 39,729 $ 39,940 $ 50,762 $ 46,346 81,046 125,611   176,776  
Sales and marketing expense 74,521 77,795 72,805 73,314 75,699 83,036 80,587 150,600 225,121   312,636  
General and administrative expense 18,590 22,412 19,835 19,314 17,866 22,888 24,207 42,247 60,837   84,276  
Net income (loss) $ 16,554 $ 8,195 $ 2,258 $ 20,048 $ (76,611) $ (66,782) $ (25,915) $ 10,453 $ 27,007   $ (149,260)  
Net income (loss) per share, basic (in dollars per share) $ 0.26 $ 0.13 $ 0.04 $ 0.33 $ (1.25) $ (1.10) $ (0.43) $ 0.13 $ 0.43   $ (2.46)  
Net income (loss) per share, diluted (in dollars per share) $ 0.22 $ 0.11 $ 0.03 $ 0.27 $ (1.25) $ (1.10) $ (0.43) $ 0.11 $ 0.36   $ (2.46)  
Stock-based compensation expense     $ 24,893         $ 52,302 $ 76,896   $ 108,081  
Net cash provided by operating activities     31,070         63,928 107,897   104,278  
Adjustment                        
Error Corrections and Prior Period Adjustments Restatement [Line Items]                        
Research and development expense $ 411 $ 392 378 $ 302 $ 309 $ 402 $ 148 770 1,181   1,161  
Sales and marketing expense 300 331 290 243 284 332 166 621 921   1,025  
General and administrative expense 293 790 93 309 (76) 562 269 883 1,176   1,064  
Net income (loss) $ (1,144) $ (1,657) $ (852) $ (932) $ (598) $ (1,396) $ (629) $ (2,509) $ (3,653)   $ (3,555)  
Net income (loss) per share, basic (in dollars per share) $ (0.02) $ (0.03) $ (0.02) $ (0.02) $ (0.01) $ (0.03) $ (0.01) $ (0.05) $ (0.07)   $ (0.06)  
Net income (loss) per share, diluted (in dollars per share) $ (0.01) $ (0.02) $ (0.01) $ (0.01) $ (0.01) $ (0.03) $ (0.01) $ (0.03) $ (0.04)   $ (0.06)  
Stock-based compensation expense     $ 852         $ 2,509 $ 3,653   $ 3,555  
Net cash provided by operating activities     0         0 0   0  
Product subscriptions                        
Error Corrections and Prior Period Adjustments Restatement [Line Items]                        
Cost of revenue $ 56,774 $ 55,107 54,734 $ 52,369 $ 51,321 $ 51,226 $ 48,224 109,841 166,615 225,547 203,140 182,212
Product subscriptions | As Reported                        
Error Corrections and Prior Period Adjustments Restatement [Line Items]                        
Cost of revenue 56,653 54,982 54,655 52,307 51,261 51,148 48,188 109,637 166,290   202,904  
Product subscriptions | Adjustment                        
Error Corrections and Prior Period Adjustments Restatement [Line Items]                        
Cost of revenue 121 125 79 62 60 78 36 204 325   236  
Professional services                        
Error Corrections and Prior Period Adjustments Restatement [Line Items]                        
Cost of revenue 6,383 5,885 6,260 7,457 6,590 7,038 7,821 12,145 18,528 $ 25,488 28,906 $ 32,137
Professional services | As Reported                        
Error Corrections and Prior Period Adjustments Restatement [Line Items]                        
Cost of revenue 6,364 5,866 6,248 7,441 6,569 7,016 7,811 12,114 18,478   28,837  
Professional services | Adjustment                        
Error Corrections and Prior Period Adjustments Restatement [Line Items]                        
Cost of revenue $ 19 $ 19 $ 12 $ 16 $ 21 $ 22 $ 10 $ 31 $ 50   $ 69  
v3.25.0.1
Immaterial Correction of an Error - Schedule of Error Corrections and Prior Period Adjustments - Balance Sheet Amounts (Details) - USD ($)
$ in Thousands
Dec. 31, 2024
Dec. 31, 2023
Dec. 31, 2022
Dec. 31, 2021
Error Corrections and Prior Period Adjustments Restatement [Line Items]        
Additional paid-in-capital $ 1,011,080 $ 898,185    
Accumulated deficit (988,034) (1,013,560)    
Total stockholders' deficit $ 17,711 (118,179) $ (120,074) $ (125,995)
As Reported        
Error Corrections and Prior Period Adjustments Restatement [Line Items]        
Additional paid-in-capital   894,630    
Accumulated deficit   (1,010,005)    
Total stockholders' deficit   (118,179)    
Adjustment        
Error Corrections and Prior Period Adjustments Restatement [Line Items]        
Additional paid-in-capital   3,555    
Accumulated deficit   (3,555)    
Total stockholders' deficit   $ 0