Cover Page
Cover Page - shares | 3 Months Ended | |
Mar. 31, 2023 | Apr. 24, 2023 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Mar. 31, 2023 | |
Document Transition Report | false | |
Entity File Number | 001-36180 | |
Entity Registrant Name | CHEGG, INC | |
Entity Incorporation, State or Country Code | DE | |
Entity Tax Identification Number | 20-3237489 | |
Entity Address, Address Line One | 3990 Freedom Circle | |
Entity Address, City or Town | Santa Clara | |
Entity Address, State or Province | CA | |
Entity Address, Postal Zip Code | 95054 | |
City Area Code | 408 | |
Local Phone Number | 855-5700 | |
Title of 12(b) Security | Common stock, $0.001 par value per share | |
Trading Symbol | CHGG | |
Security Exchange Name | NYSE | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 119,716,256 | |
Entity Central Index Key | 0001364954 | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Year Focus | 2023 | |
Document Fiscal Period Focus | Q1 | |
Amendment Flag | false |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Mar. 31, 2023 | Dec. 31, 2022 |
Current assets | ||
Cash and cash equivalents | $ 281,302 | $ 473,677 |
Short-term investments | 277,864 | 583,973 |
Accounts receivable, net of allowance of $344 and $394 at March 31, 2023 and December 31, 2022, respectively | 22,000 | 23,515 |
Prepaid expenses | 25,486 | 28,481 |
Other current assets | 30,832 | 34,754 |
Total current assets | 637,484 | 1,144,400 |
Long-term investments | 613,863 | 216,233 |
Property and equipment, net | 201,305 | 204,383 |
Goodwill | 622,679 | 615,093 |
Intangible assets, net | 73,086 | 78,333 |
Right of use assets | 29,770 | 18,838 |
Deferred tax assets | 163,776 | 167,524 |
Other assets | 19,824 | 20,612 |
Total assets | 2,361,787 | 2,465,416 |
Current liabilities | ||
Accounts payable | 13,058 | 12,367 |
Deferred revenue | 58,568 | 56,273 |
Accrued liabilities | 68,026 | 70,234 |
Total current liabilities | 139,652 | 138,874 |
Long-term liabilities | ||
Convertible senior notes, net | 1,189,650 | 1,188,593 |
Long-term operating lease liabilities | 23,064 | 13,375 |
Other long-term liabilities | 2,662 | 7,985 |
Total long-term liabilities | 1,215,376 | 1,209,953 |
Total liabilities | 1,355,028 | 1,348,827 |
Commitments and contingencies (Note 6) | ||
Stockholders' equity: | ||
Preferred stock, $0.001 par value per share, 10,000,000 shares authorized, no shares issued and outstanding | 0 | 0 |
Common stock, $0.001 par value per share: 400,000,000 shares authorized; 119,628,297 and 126,473,827 shares issued and outstanding at March 31, 2023 and December 31, 2022, respectively | 120 | 126 |
Additional paid-in capital | 1,120,344 | 1,244,504 |
Accumulated other comprehensive loss | (45,338) | (57,488) |
Accumulated deficit | (68,367) | (70,553) |
Total stockholders' equity | 1,006,759 | 1,116,589 |
Total liabilities and stockholders' equity | $ 2,361,787 | $ 2,465,416 |
CONDENSED CONSOLIDATED BALANC_2
CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands | Mar. 31, 2023 | Dec. 31, 2022 |
Statement of Financial Position [Abstract] | ||
Allowance for doubtful accounts receivable, current | $ 344 | $ 394 |
Preferred stock, par value (in dollars per share) | $ 0.001 | $ 0.001 |
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) | $ 0.001 | $ 0.001 |
Common stock, shares authorized (in shares) | 400,000,000 | 400,000,000 |
Common stock, shares issued (in shares) | 119,628,297 | 126,473,827 |
Common stock, shares outstanding (in shares) | 119,628,297 | 126,473,827 |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Income Statement [Abstract] | ||
Net revenues | $ 187,601 | $ 202,244 |
Cost of revenues | 49,150 | 55,085 |
Gross profit | 138,451 | 147,159 |
Operating expenses: | ||
Research and development | 46,907 | 52,415 |
Sales and marketing | 37,017 | 42,498 |
General and administrative | 58,973 | 46,870 |
Total operating expenses | 142,897 | 141,783 |
(Loss) income from operations | (4,446) | 5,376 |
Interest expense, net and other income, net: | ||
Interest expense, net | (1,268) | (1,597) |
Other income, net | 12,076 | 6,180 |
Total interest expense, net and other income, net | 10,808 | 4,583 |
Income before provision for income taxes | 6,362 | 9,959 |
Provision for income taxes | (4,176) | (4,217) |
Net income | $ 2,186 | $ 5,742 |
Net income per share | ||
Basic (in dollars per share) | $ 0.02 | $ 0.04 |
Diluted (in dollars per share) | $ 0.02 | $ 0.04 |
Weighted average shares used to compute net income per share | ||
Basic (in shares) | 123,710 | 132,162 |
Diluted (in shares) | 124,304 | 133,270 |
CONDENSED CONSOLIDATED STATEM_2
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Statement of Comprehensive Income [Abstract] | ||
Net income | $ 2,186 | $ 5,742 |
Other comprehensive income (loss) | ||
Change in net unrealized gain (loss) on investments, net of tax | 3,812 | (12,917) |
Change in foreign currency translation adjustments, net of tax | 8,338 | (18,671) |
Other comprehensive income (loss) | 12,150 | (31,588) |
Total comprehensive income (loss) | $ 14,336 | $ (25,846) |
CONDENSED CONSOLIDATED STATEM_3
CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY - USD ($) $ in Thousands | Total | Common Stock | Additional Paid-In Capital | Accumulated Other Comprehensive Loss | Accumulated Deficit |
Beginning balance (in shares) at Dec. 31, 2021 | 136,952,000 | ||||
Beginning balance at Dec. 31, 2021 | $ 1,106,917 | $ 137 | $ 1,449,305 | $ (5,334) | $ (337,191) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Repurchases of common stock (in shares) | (10,725,000) | ||||
Repurchases of common stock | (300,450) | $ (11) | (300,439) | ||
Issuance of common stock upon exercise of stock options (in shares) | 54,000 | ||||
Issuance of common stock upon exercise of stock options | 455 | 455 | |||
Net share settlement of equity awards (in shares) | 401,000 | ||||
Net share settlement of equity awards | (7,466) | $ 1 | (7,467) | ||
Share-based compensation expense | 34,911 | 34,911 | |||
Other comprehensive income (loss) | (31,588) | (31,588) | |||
Net income | 5,742 | 5,742 | |||
Ending balance (in shares) at Mar. 31, 2022 | 126,682,000 | ||||
Ending balance at Mar. 31, 2022 | 808,521 | $ 127 | 1,176,765 | (36,922) | (331,449) |
Beginning balance (in shares) at Dec. 31, 2021 | 136,952,000 | ||||
Beginning balance at Dec. 31, 2021 | $ 1,106,917 | $ 137 | 1,449,305 | (5,334) | (337,191) |
Ending balance (in shares) at Dec. 31, 2022 | 126,473,827 | 126,474,000 | |||
Ending balance at Dec. 31, 2022 | $ 1,116,589 | $ 126 | 1,244,504 | (57,488) | (70,553) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Repurchases of common stock (in shares) | (7,600,000) | ||||
Repurchases of common stock | (151,311) | $ (7) | (151,304) | ||
Issuance of common stock upon exercise of stock options (in shares) | 18,000 | ||||
Issuance of common stock upon exercise of stock options | 144 | 144 | |||
Net share settlement of equity awards (in shares) | 736,000 | ||||
Net share settlement of equity awards | (7,735) | $ 1 | (7,736) | ||
Share-based compensation expense | 34,736 | 34,736 | |||
Other comprehensive income (loss) | 12,150 | 12,150 | |||
Net income | $ 2,186 | 2,186 | |||
Ending balance (in shares) at Mar. 31, 2023 | 119,628,297 | 119,628,000 | |||
Ending balance at Mar. 31, 2023 | $ 1,006,759 | $ 120 | $ 1,120,344 | $ (45,338) | $ (68,367) |
CONDENSED CONSOLIDATED STATEM_4
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Cash flows from operating activities | ||
Net income | $ 2,186 | $ 5,742 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Share-based compensation expense | 33,746 | 33,084 |
Other depreciation and amortization expense | 25,543 | 20,285 |
Deferred income taxes | 3,441 | (746) |
Operating lease expense, net of accretion | 1,496 | 1,640 |
Amortization of debt issuance costs | 1,057 | 1,382 |
Gain on foreign currency remeasurement of purchase consideration | 0 | (4,628) |
Print textbook depreciation expense | 0 | 1,521 |
Loss from write-off of property and equipment | 120 | 626 |
Gain on textbook library, net | 0 | (610) |
Other non-cash items | (5) | 9 |
Change in assets and liabilities, net of effect of acquisition of business: | ||
Accounts receivable | 1,578 | 292 |
Prepaid expenses and other current assets | 8,485 | 21,722 |
Other assets | 2,803 | 8,342 |
Accounts payable | (336) | (7,534) |
Deferred revenue | 2,012 | 8,554 |
Accrued liabilities | (2,569) | (7,555) |
Other liabilities | (6,397) | (2,091) |
Net cash provided by operating activities | 73,160 | 80,035 |
Cash flows from investing activities | ||
Purchases of property and equipment | (17,166) | (29,533) |
Purchases of textbooks | 0 | (3,692) |
Proceeds from disposition of textbooks | 0 | 2,499 |
Purchases of investments | (497,372) | (273,280) |
Maturities of investments | 407,759 | 342,059 |
Acquisition of business, net of cash acquired | 0 | (401,125) |
Net cash used in investing activities | (106,779) | (363,072) |
Cash flows from financing activities | ||
Proceeds from common stock issued under stock plans, net | 145 | 456 |
Payment of taxes related to the net share settlement of equity awards | (7,736) | (7,467) |
Repurchases of common stock | (151,311) | (300,450) |
Net cash used in financing activities | (158,902) | (307,461) |
Effect of exchange rate changes | 187 | 4,628 |
Net decrease in cash, cash equivalents and restricted cash | (192,334) | (585,870) |
Cash, cash equivalents and restricted cash, beginning of period | 475,854 | 855,893 |
Cash, cash equivalents and restricted cash, end of period | 283,520 | 270,023 |
Supplemental cash flow data: | ||
Interest | 437 | 437 |
Income taxes, net of refunds | 2,017 | 1,101 |
Cash paid for amounts included in the measurement of lease liabilities: | ||
Operating cash flows from operating leases | 2,866 | 1,852 |
Right of use assets obtained in exchange for lease obligations: | ||
Operating leases | 12,407 | 2,715 |
Non-cash investing and financing activities: | ||
Accrued purchases of long-lived assets | 3,941 | 5,778 |
Reconciliation of cash, cash equivalents and restricted cash: | ||
Cash and cash equivalents | 281,302 | 267,731 |
Restricted cash included in other current assets | 63 | 70 |
Restricted cash included in other assets | 2,155 | 2,222 |
Total cash, cash equivalents and restricted cash | $ 283,520 | $ 270,023 |
Background and Basis of Present
Background and Basis of Presentation | 3 Months Ended |
Mar. 31, 2023 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Background and Basis of Presentation | Background and Basis of Presentation Company and Background Chegg, Inc. (“we,” “us,” “our,” “Company” or “Chegg”), headquartered in Santa Clara, California, was incorporated as a Delaware corporation in July 2005. Millions of people all around the world Learn with Chegg. Our mission is to improve learning and learning outcomes by putting students first. We support life-long learners starting with their academic journey and extending into their careers. The Chegg platform provides products and services to support learners to help them better understand their academic course materials, and also provides personal and professional development skills training, to help them achieve their learning goals. Basis of Presentation The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with generally accepted accounting principles in the United States (“GAAP”) and applicable rules and regulations of the U.S. Securities and Exchange Commission (“SEC”) regarding interim financial reporting. The condensed consolidated financial statements include the results of Chegg, Inc. and its wholly-owned subsidiaries. Significant intercompany balances and transactions have been eliminated. In the opinion of management, the accompanying unaudited condensed consolidated financial statements contain all adjustments, including normal recurring adjustments, necessary to present fairly our financial position as of March 31, 2023, our results of operations, results of comprehensive income (loss), stockholders' equity and cash flows for the three months ended March 31, 2023 and 2022. Our results of operations, results of comprehensive income (loss), stockholders' equity, and cash flows for the three months ended March 31, 2023 are not necessarily indicative of the results to be expected for the full year. We have a single operating and reportable segment and operating unit structure. The condensed consolidated financial statements and related financial information should be read in conjunction with the audited consolidated financial statements and the related notes thereto that are included in our Annual Report on Form 10-K for the year ended December 31, 2022 (the Annual Report on Form 10-K) filed with the SEC. There have been no material changes to our significant accounting policies as compared to the significant accounting policies described in our Annual Report on Form 10-K. Use of Estimates The preparation of financial statements in conformity with GAAP requires management to make estimates, judgments, and assumptions that affect the reported amounts of assets and liabilities; the disclosure of contingent liabilities at the date of the financial statements; and the reported amounts of revenues and expenses during the reporting periods. We base our estimates on historical experience, knowledge of current business conditions, and various other factors we believe to be reasonable under the circumstances. These estimates are based on management’s knowledge about current events and expectations about actions we may undertake in the future. Actual results could differ from these estimates, and such differences could be material to our financial position and results of operations. There have been no material changes in our use of estimates during the three months ended March 31, 2023 as compared to the use of estimates disclosed in Part II, Item 8 “Consolidated Financial Statements and Supplementary Data” contained in our Annual Report on Form 10-K for the year ended December 31, 2022. Reclassification of Prior Period Presentation In order to conform with current period presentation, $0.7 million of deferred tax assets during the three months ended March 31, 2022 has been reclassified from other non-cash items on our condensed consolidated statements of cash flows. This change in presentation does not affect previously reported results. Leases During the three months ended March 31, 2023, we extended our existing lease agreement related to our corporate headquarters in Santa Clara and reassessed lease terms related to office spaces internationally in India, resulting in the recording of $12.4 million of right of use assets in exchange for lease liabilities. The aggregate future minimum lease payments and reconciliation to operating lease liabilities as of March 31, 2023, are as follows (in thousands): March 31, 2023 Remaining nine months of 2023 $ 6,388 2024 7,875 2025 6,625 2026 5,940 2027 5,515 Thereafter 1,902 Total future minimum lease payments 34,245 Less imputed interest (4,322) Total lease liabilities $ 29,923 Condensed Consolidated Statements of Operations Details Other income, net consists of the following (in thousands): Three Months Ended 2023 2022 Interest income $ 11,263 $ 1,477 Gain on foreign currency remeasurement of purchase consideration — 4,628 Other 813 75 Total other income, net $ 12,076 $ 6,180 Recent Accounting Pronouncements Recently Issued Accounting Pronouncements Not Yet Adopted There were no accounting pronouncements issued during the three months ended March 31, 2023 that would have a material impact on our financial statements. Recently Adopted Accounting Pronouncements We did not adopt any new standards or updates issued during the three months ended March 31, 2023 that had a material impact on our financial statements. |
Revenues
Revenues | 3 Months Ended |
Mar. 31, 2023 | |
Revenue from Contract with Customer [Abstract] | |
Revenues | Revenues Revenue Recognition Revenues are recognized when control of the promised goods or services is transferred to our customers, in an amount that reflects the consideration we expect to be entitled to in exchange for those goods or services. The majority of our revenues are recognized over time as services are performed, with certain revenues being recognized at a point in time. We have changed our revenue disaggregation to Subscription Services and Skills and Other to better reflect the nature and timing of revenue and cash flows. Subscription Services includes revenues from our Chegg Study Pack, Chegg Study, Chegg Writing, Chegg Math, and Busuu offerings. Skills and Other includes revenues from our Skills, advertising services, print textbooks and eTextbooks offerings. We no longer present our Required Materials product line separately as we no longer have significant revenue from our print textbook and eTextbooks offerings. The following table sets forth our total net revenues for the periods shown disaggregated for our Subscription Services and Skills and Other product lines (in thousands, except percentages): Three Months Ended Change 2023 2022 $ % Subscription Services $ 168,440 $ 173,037 $ (4,597) (3) % Skills and Other 19,161 29,207 (10,046) (34) Total net revenues $ 187,601 $ 202,244 $ (14,643) (7) During the three months ended March 31, 2023 and 2022, we recognized revenues of $39.1 million and $30.9 million, respectively, that were included in our deferred revenue balance at the beginning of each respective reporting period. Contract Balances The following table presents our accounts receivable, net, contract assets and deferred revenue balances (in thousands, except percentages): Change March 31, December 31, 2022 $ % Accounts receivable, net $ 22,000 $ 23,515 $ (1,515) (6) % Contract assets 11,505 11,946 (441) (4) Deferred revenue 58,568 56,273 2,295 4 During the three months ended March 31, 2023 our accounts receivable, net balance decreased by $1.5 million, or 6%, primarily due to timing of billings and seasonality of our business. During the three months ended March 31, 2023, our contract assets balance decreased by $0.4 million, or 4%, primarily due to our Thinkful service. During the three months ended March 31, 2023, our deferred revenue balance increased by $2.3 million, or 4%, primarily due to timing of bookings and seasonality of our business. |
Net Income Per Share
Net Income Per Share | 3 Months Ended |
Mar. 31, 2023 | |
Earnings Per Share [Abstract] | |
Net Income Per Share | Net Income Per Share The following table sets forth the computation of basic and diluted net income per share (in thousands, except per share amounts): Three Months Ended 2023 2022 Basic Numerator: Net income $ 2,186 $ 5,742 Denominator: Weighted average shares used to compute net income per share, basic 123,710 132,162 Net income per share, basic $ 0.02 $ 0.04 Diluted Numerator: Net income $ 2,186 $ 5,742 Denominator: Weighted average shares used to compute net income per share, basic 123,710 132,162 Shares related to stock plan activity 594 1,108 Weighted average shares used to compute net income per share, diluted 124,304 133,270 Net income per share, diluted $ 0.02 $ 0.04 The following potential weighted-average shares of common stock outstanding were excluded from the computation of diluted net income per share because including them would have been anti-dilutive (in thousands): Three Months Ended 2023 2022 Shares related to stock plan activity 6,283 2,300 Shares related to convertible senior notes 18,226 22,875 Total common stock equivalents 24,509 25,175 |
Cash and Cash Equivalents, Inve
Cash and Cash Equivalents, Investments and Fair Value Measurements | 3 Months Ended |
Mar. 31, 2023 | |
Cash and Cash Equivalents [Abstract] | |
Cash and Cash Equivalents, Investments and Fair Value Measurements | Cash and Cash Equivalents, Investments and Fair Value Measurements The following tables show our cash and cash equivalents, and investments’ fair value level classification, adjusted cost, unrealized gain, unrealized loss and fair value as of March 31, 2023 and December 31, 2022 (in thousands except for fair value levels): March 31, 2023 Fair Value Level Adjusted Cost Unrealized Gain Unrealized Loss Fair Value Cash and cash equivalents: Cash $ 31,393 $ — $ — $ 31,393 Money market funds Level 1 149,731 — — 149,731 Commercial paper Level 2 100,216 — (38) 100,178 Total cash and cash equivalents $ 281,340 $ — $ (38) $ 281,302 Short-term investments: Corporate debt securities Level 2 $ 214,883 $ — $ (2,435) $ 212,448 U.S. treasury securities Level 1 30,190 — (21) 30,169 Agency bonds Level 2 35,253 — (6) 35,247 Total short-term investments $ 280,326 $ — $ (2,462) $ 277,864 Long-term investments: Corporate debt securities Level 2 $ 364,729 $ 1,003 $ (366) $ 365,366 U.S. treasury securities Level 1 99,424 470 (54) 99,840 Agency bonds Level 2 148,669 74 (86) 148,657 Total long-term investments $ 612,822 $ 1,547 $ (506) $ 613,863 December 31, 2022 Fair Value Level Adjusted Cost Unrealized Gain Unrealized Loss Fair Value Cash and cash equivalents: Cash $ 33,532 $ — $ — $ 33,532 Money market funds Level 1 440,145 — — 440,145 Total cash and cash equivalents $ 473,677 $ — $ — $ 473,677 Short-term investments: Commercial paper Level 2 $ 11,744 $ — $ (29) $ 11,715 Corporate debt securities Level 2 491,459 — (4,130) 487,329 U.S. treasury securities Level 1 85,271 — (342) 84,929 Total short-term investments $ 588,474 $ — $ (4,501) $ 583,973 Long-term investments: Corporate debt securities Level 2 $ 125,735 $ 158 $ (909) $ 124,984 U.S. treasury securities Level 1 30,633 122 — 30,755 Agency bonds Level 2 60,635 — (141) 60,494 Total long-term investments $ 217,003 $ 280 $ (1,050) $ 216,233 As of March 31, 2023, we determined that the unrealized losses on our investments were not driven by credit related factors. During the three months ended March 31, 2023 and 2022, we did not recognize any losses on our investments due to credit related factors. During the three months ended March 31, 2023 and 2022, our realized gains and losses on investments were not significant. The following table shows our cash equivalents and investments' adjusted cost and fair value by contractual maturity as of March 31, 2023 (in thousands): Adjusted Cost Fair Value Due within one year $ 380,542 $ 378,042 Due after one year through three years 612,822 613,863 Investments not due at a single maturity date 149,731 149,731 Total $ 1,143,095 $ 1,141,636 Investments not due at a single maturity date in the preceding table consisted of money market funds. Strategic Investment In July 2022, we completed an investment of $6.0 million in Knack Technologies, Inc. (Knack), a privately held U.S. based peer-to-peer tutoring platform for higher education institutions. We do not have the ability to exercise significant influence over Knack's operating and financial policies and have elected to account for our investment at cost as it does not have a readily determinable fair value. We did not record any impairment charges during the three months ended March 31, 2023, as there were no significant identified events or changes in circumstances that would be considered an indicator for impairment. There were no observable price changes in orderly transactions for the identical or similar investments of the same issuer during the three months ended March 31, 2023. Financial Instruments Not Recorded at Fair Value on a Recurring Basis We report our financial instruments at fair value with the exception of the notes. The estimated fair value of the notes was determined based on the trading price of the notes as of the last day of trading for the period. We consider the fair value of the notes to be a Level 2 measurement due to the limited trading activity. The estimated fair value of the 2026 notes as of March 31, 2023 and December 31, 2022 was $393.1 million and $385.0 million, respectively. The estimated fair value of the 2025 notes as of March 31, 2023 and December 31, 2022 was $617.7 million and $640.5 million, respectively. For further information on the notes, refer to Note 5, “Convertible Senior Notes.” |
Convertible Senior Notes
Convertible Senior Notes | 3 Months Ended |
Mar. 31, 2023 | |
Debt Disclosure [Abstract] | |
Convertible Senior Notes | Convertible Senior Notes In August 2020, we issued $1.0 billion in aggregate principal amount of 0% convertible senior notes due in 2026 (2026 notes). The aggregate principal amount of the 2026 notes includes $100 million from the initial purchasers fully exercising their option to purchase additional notes. In March 2019, we issued $700 million in aggregate principal amount of 0.125% convertible senior notes due in 2025 (2025 notes, together with the 2026 notes, the notes) and in April 2019, the initial purchasers fully exercised their option to purchase $100 million of additional 2025 notes for aggregate total principal amount of $800 million. The notes were issued in private placements to qualified institutional buyers pursuant to Rule 144A of the Securities Act of 1933, as amended. The total net proceeds from the notes are as follows (in thousands): 2026 Notes 2025 Notes Principal amount $ 1,000,000 $ 800,000 Less initial purchasers’ discount (15,000) (18,998) Less other issuance costs (904) (822) Net proceeds $ 984,096 $ 780,180 The notes are our senior, unsecured obligations and are governed by indenture agreements by and between us and Computershare Trust Company, National Association (as successor to Wells Fargo Bank, National Association), as Trustee (the indentures). The 2026 notes bear no interest and will mature on September 1, 2026, unless repurchased, redeemed or converted in accordance with their terms prior to such date. The 2025 notes bear interest of 0.125% per year which is payable semi-annually in arrears on March 15 and September 15 of each year, beginning on September 15, 2019. The 2025 notes will mature on March 15, 2025, unless repurchased, redeemed or converted in accordance with their terms prior to such date. Each $1,000 principal amount of the 2026 notes will initially be convertible into 9.2978 shares of our common stock. This is equivalent to an initial conversion price of approximately $107.55 per share, which is subject to adjustment in certain circumstances. Each $1,000 principal amount of the 2025 notes will initially be convertible into 19.3956 shares of our common stock. This is equivalent to an initial conversion price of approximately $51.56 per share, which is subject to adjustment in certain circumstances. Prior to the close of business on the business day immediately preceding June 1, 2026 for the 2026 notes and December 15, 2024 for the 2025 notes, the notes are convertible at the option of holders only upon satisfaction of the following circumstances: • during any calendar quarter commencing after the calendar quarter ending on December 31, 2020 for the 2026 notes and June 30, 2019 for the 2025 notes, if the last reported sale price of our common stock for at least 20 trading days (whether or not consecutive) during a period of 30 consecutive trading days ending on, and including, the last trading day of the immediately preceding calendar quarter is greater than or equal to 130% of the respective conversion price for the notes on each applicable trading day; • during the five-business day period after any 10 consecutive trading day period (the measurement period) in which the trading price per $1,000 principal amount of notes for each trading day of the measurement period was less than 98% of the product of the last reported sale price of our common stock and the conversion rate on each such trading day; • if we call any or all of the notes for redemption, at any time prior to the close of business on the second scheduled trading day immediately preceding the redemption date; or • upon the occurrence of certain specified corporate events described in the indentures. On or after June 1, 2026 for the 2026 notes and December 15, 2024 for the 2025 notes until the close of business on the second scheduled trading day immediately preceding the respective maturity dates, holders may convert their notes at any time, regardless of the foregoing circumstances. Upon conversion, the notes may be settled in shares of our common stock, cash or a combination of cash and shares of our common stock, at our election. If we undergo a fundamental change, as defined in the indentures, prior to the respective maturity dates, subject to certain conditions, holders of the notes may 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, if specific corporate events, described in the indentures, occur prior to the respective maturity dates, we will also increase the conversion rate for a holder who elects to convert their notes in connection with such specified corporate events. During the three months ended March 31, 2023, the conditions allowing holders of the 2026 notes and 2025 notes to convert were not met and therefore the 2026 notes and 2025 notes are not convertible the following quarter. The net carrying amount of the notes is as follows (in thousands): March 31, 2023 December 31, 2022 2026 Notes 2025 Notes 2026 Notes 2025 Notes Principal $ 500,000 $ 699,979 $ 500,000 $ 699,979 Unamortized issuance costs (4,512) (5,817) (4,837) (6,549) Net carrying amount $ 495,488 $ 694,162 $ 495,163 $ 693,430 The following table sets forth the total interest expense recognized related to the notes (in thousands): Three Months Ended March 31, 2023 2022 2026 notes: Contractual interest expense $ — $ — Amortization of issuance costs 325 650 Total 2026 notes interest expense $ 325 $ 650 2025 notes: Contractual interest expense $ 216 $ 215 Amortization of issuance costs 732 732 Total 2025 notes interest expense $ 948 $ 947 Capped Call Transactions Concurrently with the offering of the 2026 notes and 2025 notes, we used $103.4 million and $97.2 million, respectively, of the net proceeds to enter into privately negotiated capped call transactions which are expected to reduce or offset potential dilution to holders of our common stock upon conversion of the notes or offset the potential cash payments we would be required to make in excess of the principal amount of any converted notes. The capped call transactions automatically exercise upon conversion of the notes and as of March 31, 2023, cover 9,297,800 and 13,576,513 shares of our common stock for the 2026 notes and 2025 notes, respectively. These are intended to effectively increase the overall conversion price from $107.55 to $156.44 per share for the 2026 notes and $51.56 to $79.32 per share for the 2025 notes. The effective increase in conversion price as a result of the capped call transactions serves to reduce potential dilution to holders of our common stock and/or offset the cash payments we are required to make in excess of the principal amount of any converted notes. As these transactions meet certain accounting criteria, they are recorded in stockholders’ equity as a reduction of additional paid-in capital on our condensed consolidated balance sheets and are not accounted for as derivatives. The fair value of the capped call instrument is not remeasured each reporting period. The cost of the capped call is not expected to be deductible for tax purposes. |
Commitments and Contingencies
Commitments and Contingencies | 3 Months Ended |
Mar. 31, 2023 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies We may from time to time be subject to certain legal proceedings and claims in the ordinary course of business, including claims of alleged infringement of trademarks, patents, copyrights, and other intellectual property rights; employment claims; and general contract or other claims. We may also, from time to time, be subject to various legal or government claims, demands, disputes, investigations, or requests for information. Such matters may include, but not be limited to, claims, disputes, or investigations related to warranty, refund, breach of contract, employment, intellectual property, government regulation, or compliance or other matters. On March 1, 2023, Plaintiff Shiva Stein, derivatively on behalf of Chegg, filed a stockholder derivative complaint in the Court of Chancery of the State of Delaware (Case No. 2023-0244-NAC) asserting breach of fiduciary duty, unjust enrichment, and waste of corporate asset claims against members of Chegg’s Board and certain Chegg officers. The matter is stayed. The Company disputes these claims and intends to vigorously defend itself in this matter. On February 14, 2023, Plaintiff Brian Stansell, individually and on behalf of other similarly situated stockholders of Chegg, filed a putative class action complaint in the Court of Chancery of the State of Delaware (Case No. 2023-0180) on behalf of all Chegg stockholders who were eligible to vote at Chegg's 2022 Annual Stockholders' Meeting, asserting breach of fiduciary duty claims against the members of Chegg's Board. The Company disputes these claims and intends to vigorously defend itself in this matter. On December 27, 2022, Plaintiff Sheri Moyer, individually and on behalf of all others similarly situated, filed a putative consumer class action in the United States District Court for the Northern District of California (Case No. 22-cv-09123) on behalf of all purchasers of a Chegg product or service as part of an automatic renewal plan or continuous service offer within the past four years. The Company disputes these claims and intends to vigorously defend itself in this matter. On November 9, 2022, Plaintiff Joshua Keller, individually and on behalf of all others similarly situated, filed a putative class action in the United States District Court for the Northern District of California (Case No. 22-cv-06986) on behalf of individuals whose data was allegedly impacted by past data breaches. The Company disputes these claims and intends to vigorously defend itself in this matter. On March 30, 2022, Joseph Robinson, derivatively on behalf of Chegg, filed a shareholder derivative complaint against Chegg and certain of its current and former directors and officers in the United States District Court for the Northern District of California, alleging violations of securities laws and breaches of fiduciary duties. On February 22, 2023, Plaintiff filed an Amended Shareholder Derivative Complaint. This matter has been consolidated with Choi, below, and both matters are stayed. The Company disputes these claims and intends to vigorously defend itself in this matter. On January 12, 2022, Rak Joon Choi, derivatively on behalf of Chegg, filed a shareholder derivative complaint against Chegg and certain of its current and former directors and officers in the United States District Court for the Northern District of California, alleging violations of securities laws, breaches of fiduciary duties, unjust enrichment, abuse of control, gross mismanagement, and waste of corporate assets. On February 22, 2023, Plaintiff filed an Amended Shareholder Derivative Complaint. This matter has been consolidated with Robinson, above, and both matters are stayed. The Company disputes these claims and intends to vigorously defend itself in this matter. On December 22, 2021, Steven Leventhal, individually and on behalf of all others similarly situated, filed a purported securities fraud class action on behalf of all purchasers of Chegg common stock between May 5, 2020 and November 1, 2021, inclusive, against Chegg and certain of its current and former officers in the United States District Court for the Northern District of California (Case No. 5:21-cv-09953), alleging that Chegg and several of its officers made materially false and misleading statements in violation of Sections 10(b) and 20(a) of the Securities Exchange Act of 1934. On September 7, 2022, KBC Asset Management and The Pompano Beach Police & Firefighters Retirement System were appointed as lead plaintiff in the case. On December 8, 2022, Plaintiff filed his Amended Complaint and seeks unspecified compensatory damages, costs, and expenses, including counsel and expert fees. The Company disputes these claims and intends to vigorously defend itself in this matter. On September 13, 2021, Pearson Education, Inc. (Pearson) filed a complaint captioned Pearson Education, Inc. v. Chegg, Inc. (Pearson Complaint) in the United States District Court for the District of New Jersey against the Company (Case 2:21-cv-16866), alleging infringement of Pearson’s registered copyrights and exclusive rights under copyright in violation of the United States Copyright Act. Pearson is seeking injunctive relief, monetary damages, costs, and attorneys’ fees. The Company filed its answer to the Pearson Complaint on November 19, 2021. Pearson’s June 29, 2022 Motion for Leave to File Amended Complaint seeking to add Bedford, Freeman & Worth Publishing Group, LLC d/b/a Macmillan Learning as a plaintiff was denied. The Company disputes these claims and intends to vigorously defend itself in this matter. On June 18, 2020, we received a Civil Investigative Demand (CID) from the Federal Trade Commission (FTC) regarding certain alleged deceptive or unfair acts or practices related to consumer privacy and/or data security. On October 31, 2022, the FTC published the parties’ agreed-upon consent order regarding Chegg’s privacy and data security practices. On January 27, 2023, the FTC finalized its order ("Final Order") requiring Chegg to implement a comprehensive information security program, limit the data the Company can collect and retain, offer users multifactor authentication to secure their accounts, and allow users to request access to and delete their data. No monetary penalties or fines were included in the Final Order. We have not recorded any loss contingency accruals related to the above matters as we do not believe that a loss is probable in these matters. We are not aware of any other pending legal matters or claims, individually or in the aggregate, that are expected to have a material adverse impact on our consolidated financial position, results of operations, or cash flows. However, our analysis of whether a claim will proceed to litigation cannot be predicted with certainty, nor can the results of litigation be predicted with certainty. Nevertheless, defending any of these actions, regardless of the outcome, may be costly, time consuming, distract management personnel and have a negative effect on our business. An adverse outcome in any of these actions, including a judgment or settlement, may cause a material adverse effect on our future business, operating results and/or financial condition. |
Guarantees and Indemnifications
Guarantees and Indemnifications | 3 Months Ended |
Mar. 31, 2023 | |
Guarantees And Indemnifications [Abstract] | |
Guarantees and Indemnifications | Guarantees and IndemnificationsWe have agreed to indemnify our directors and officers for certain events or occurrences, subject to certain limits, while such persons are or were serving at our request in such capacity. We may terminate the indemnification agreements with these persons upon termination of employment, but termination will not affect claims for indemnification related to events occurring prior to the effective date of termination. We have a directors’ and officers’ insurance policy that limits our potential exposure up to the limits of our insurance coverage. In addition, we also have other indemnification agreements with various vendors against certain claims, liabilities, losses, and damages. The maximum amount of potential future indemnification is unlimited.We believe the fair value of these indemnification agreements is immaterial. We have not recorded any liabilities for these agreements as of March 31, 2023. |
Stockholders' Equity
Stockholders' Equity | 3 Months Ended |
Mar. 31, 2023 | |
Share-Based Payment Arrangement [Abstract] | |
Stockholders' Equity | Stockholders' Equity Share Repurchases On February 23, 2023, we entered into an accelerated share repurchase (ASR) agreement with a financial institution (2023 ASR). We accounted for the 2023 ASR as two separate transactions, a repurchase of our common stock and an equity-linked contract indexed to our common stock that met certain accounting criteria for classification in stockholders' equity. Upon execution, we paid a fixed amount of $150.0 million and received an initial delivery of 7,599,747 shares of our common stock, which were retired immediately. The initial delivery of shares of our common stock represented approximately 80 percent of the fixed amount paid of $150.0 million, which was based on the share price of our common stock on the date of execution. The 2023 ASR, along with $1.3 million in associated costs, primarily consisting of an estimated 1% excise tax, were recorded as a reduction to additional paid in capital on our condensed consolidated statements of stockholders’ equity. On February 22, 2022 and December 3, 2021, we entered into ASR agreements with financial institutions. During the year ended December 31, 2022, we received a total of 11,562,475 shares of our common stock from these ASR agreements, which were retired immediately. Additionally, during the year ended December 31, 2022, we repurchased 1,146,803 shares of our common stock in open market transactions. Securities Repurchase Program In June 2022, our board of directors approved a $1.0 billion increase to our existing securities repurchase program authorizing the repurchase of up to $2.0 billion of our common stock and/or convertible notes, through open market purchases, block trades, and/or privately negotiated transactions or pursuant to Rule 10b5-1 plans, in compliance with applicable securities laws and other legal requirements. The timing, volume, and nature of the repurchases will be determined by management based on the capital needs of the business, market conditions, applicable legal requirements, and other factors. As of March 31, 2023, we had $492.6 million remaining under the repurchase program, which has no expiration date and will continue until otherwise suspended, terminated or modified at any time for any reason by our board of directors. Share-based Compensation Expense Total share-based compensation expense recorded for employees and non-employees is as follows (in thousands): Three Months Ended 2023 2022 Cost of revenues $ 527 $ 623 Research and development 10,914 11,776 Sales and marketing 2,499 4,386 General and administrative 19,806 16,299 Total share-based compensation expense $ 33,746 $ 33,084 During the three months ended March 31, 2023 and 2022, we capitalized share-based compensation expense of $1.0 million and $1.8 million, respectively. As of March 31, 2023, our total unrecognized share-based compensation expense related to RSUs and PSUs was approximately $207.0 million, which will be recognized over the remaining weighted-average vesting period of approximately 2.2 years. Activity for RSUs and PSUs is as follows: RSUs and PSUs Outstanding Shares Outstanding Weighted Average Grant Date Fair Value Balance at December 31, 2022 9,155,680 $ 36.03 Granted 1,631,910 16.63 Released (1,192,925) 37.50 Forfeited (447,107) 34.03 Balance at March 31, 2023 9,147,558 32.48 |
Subsequent Event
Subsequent Event | 3 Months Ended |
Mar. 31, 2023 | |
Subsequent Events [Abstract] | |
Subsequent Event | Subsequent EventIn May 2023, we entered into a $15.0 million commitment to invest in Sound Ventures AI Fund, L.P., a limited partnership that invests in artificial intelligence companies. The initial accounting for the investment is in process as of the issuance date of our financial statements and therefore we are unable to make any additional disclosures. |
Background and Basis of Prese_2
Background and Basis of Presentation (Policies) | 3 Months Ended |
Mar. 31, 2023 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation | Basis of Presentation The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with generally accepted accounting principles in the United States (“GAAP”) and applicable rules and regulations of the U.S. Securities and Exchange Commission (“SEC”) regarding interim financial reporting. The condensed consolidated financial statements include the results of Chegg, Inc. and its wholly-owned subsidiaries. Significant intercompany balances and transactions have been eliminated. In the opinion of management, the accompanying unaudited condensed consolidated financial statements contain all adjustments, including normal recurring adjustments, necessary to present fairly our financial position as of March 31, 2023, our results of operations, results of comprehensive income (loss), stockholders' equity and cash flows for the three months ended March 31, 2023 and 2022. Our results of operations, results of comprehensive income (loss), stockholders' equity, and cash flows for the three months ended March 31, 2023 are not necessarily indicative of the results to be expected for the full year. We have a single operating and reportable segment and operating unit structure. The condensed consolidated financial statements and related financial information should be read in conjunction with the audited consolidated financial statements and the related notes thereto that are included in our Annual Report on Form 10-K for the year ended December 31, 2022 (the Annual Report on Form 10-K) filed with the SEC. |
Use of Estimates | Use of EstimatesThe preparation of financial statements in conformity with GAAP requires management to make estimates, judgments, and assumptions that affect the reported amounts of assets and liabilities; the disclosure of contingent liabilities at the date of the financial statements; and the reported amounts of revenues and expenses during the reporting periods. We base our estimates on historical experience, knowledge of current business conditions, and various other factors we believe to be reasonable under the circumstances. These estimates are based on management’s knowledge about current events and expectations about actions we may undertake in the future. Actual results could differ from these estimates, and such differences could be material to our financial position and results of operations. |
Reclassification of Prior Period Presentation | Reclassification of Prior Period Presentation In order to conform with current period presentation, $0.7 million of deferred tax assets during the three months ended March 31, 2022 has been reclassified from other non-cash items on our condensed consolidated statements of cash flows. This change in presentation does not affect previously reported results. |
Recent Accounting Pronouncements | Recent Accounting Pronouncements Recently Issued Accounting Pronouncements Not Yet Adopted There were no accounting pronouncements issued during the three months ended March 31, 2023 that would have a material impact on our financial statements. Recently Adopted Accounting Pronouncements We did not adopt any new standards or updates issued during the three months ended March 31, 2023 that had a material impact on our financial statements. |
Background and Basis of Prese_3
Background and Basis of Presentation (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Schedule of Maturities of Operating Lease Liabilities | The aggregate future minimum lease payments and reconciliation to operating lease liabilities as of March 31, 2023, are as follows (in thousands): March 31, 2023 Remaining nine months of 2023 $ 6,388 2024 7,875 2025 6,625 2026 5,940 2027 5,515 Thereafter 1,902 Total future minimum lease payments 34,245 Less imputed interest (4,322) Total lease liabilities $ 29,923 |
Schedule of Other Income Net | Other income, net consists of the following (in thousands): Three Months Ended 2023 2022 Interest income $ 11,263 $ 1,477 Gain on foreign currency remeasurement of purchase consideration — 4,628 Other 813 75 Total other income, net $ 12,076 $ 6,180 |
Revenues (Tables)
Revenues (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Revenue from Contract with Customer [Abstract] | |
Schedule of Disaggregation of Revenue | The following table sets forth our total net revenues for the periods shown disaggregated for our Subscription Services and Skills and Other product lines (in thousands, except percentages): Three Months Ended Change 2023 2022 $ % Subscription Services $ 168,440 $ 173,037 $ (4,597) (3) % Skills and Other 19,161 29,207 (10,046) (34) Total net revenues $ 187,601 $ 202,244 $ (14,643) (7) |
Schedule of Accounts Receivable | The following table presents our accounts receivable, net, contract assets and deferred revenue balances (in thousands, except percentages): Change March 31, December 31, 2022 $ % Accounts receivable, net $ 22,000 $ 23,515 $ (1,515) (6) % Contract assets 11,505 11,946 (441) (4) Deferred revenue 58,568 56,273 2,295 4 |
Net Income Per Share (Tables)
Net Income Per Share (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Earnings Per Share [Abstract] | |
Schedule of Earnings Per Share, Basic and Diluted | The following table sets forth the computation of basic and diluted net income per share (in thousands, except per share amounts): Three Months Ended 2023 2022 Basic Numerator: Net income $ 2,186 $ 5,742 Denominator: Weighted average shares used to compute net income per share, basic 123,710 132,162 Net income per share, basic $ 0.02 $ 0.04 Diluted Numerator: Net income $ 2,186 $ 5,742 Denominator: Weighted average shares used to compute net income per share, basic 123,710 132,162 Shares related to stock plan activity 594 1,108 Weighted average shares used to compute net income per share, diluted 124,304 133,270 Net income per share, diluted $ 0.02 $ 0.04 |
Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share | The following potential weighted-average shares of common stock outstanding were excluded from the computation of diluted net income per share because including them would have been anti-dilutive (in thousands): Three Months Ended 2023 2022 Shares related to stock plan activity 6,283 2,300 Shares related to convertible senior notes 18,226 22,875 Total common stock equivalents 24,509 25,175 |
Cash and Cash Equivalents, In_2
Cash and Cash Equivalents, Investments and Fair Value Measurements (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Cash and Cash Equivalents [Abstract] | |
Schedule of Cash, Cash Equivalents and Investments | The following tables show our cash and cash equivalents, and investments’ fair value level classification, adjusted cost, unrealized gain, unrealized loss and fair value as of March 31, 2023 and December 31, 2022 (in thousands except for fair value levels): March 31, 2023 Fair Value Level Adjusted Cost Unrealized Gain Unrealized Loss Fair Value Cash and cash equivalents: Cash $ 31,393 $ — $ — $ 31,393 Money market funds Level 1 149,731 — — 149,731 Commercial paper Level 2 100,216 — (38) 100,178 Total cash and cash equivalents $ 281,340 $ — $ (38) $ 281,302 Short-term investments: Corporate debt securities Level 2 $ 214,883 $ — $ (2,435) $ 212,448 U.S. treasury securities Level 1 30,190 — (21) 30,169 Agency bonds Level 2 35,253 — (6) 35,247 Total short-term investments $ 280,326 $ — $ (2,462) $ 277,864 Long-term investments: Corporate debt securities Level 2 $ 364,729 $ 1,003 $ (366) $ 365,366 U.S. treasury securities Level 1 99,424 470 (54) 99,840 Agency bonds Level 2 148,669 74 (86) 148,657 Total long-term investments $ 612,822 $ 1,547 $ (506) $ 613,863 December 31, 2022 Fair Value Level Adjusted Cost Unrealized Gain Unrealized Loss Fair Value Cash and cash equivalents: Cash $ 33,532 $ — $ — $ 33,532 Money market funds Level 1 440,145 — — 440,145 Total cash and cash equivalents $ 473,677 $ — $ — $ 473,677 Short-term investments: Commercial paper Level 2 $ 11,744 $ — $ (29) $ 11,715 Corporate debt securities Level 2 491,459 — (4,130) 487,329 U.S. treasury securities Level 1 85,271 — (342) 84,929 Total short-term investments $ 588,474 $ — $ (4,501) $ 583,973 Long-term investments: Corporate debt securities Level 2 $ 125,735 $ 158 $ (909) $ 124,984 U.S. treasury securities Level 1 30,633 122 — 30,755 Agency bonds Level 2 60,635 — (141) 60,494 Total long-term investments $ 217,003 $ 280 $ (1,050) $ 216,233 |
Schedule of Available-for-sale Securities Reconciliation | The following table shows our cash equivalents and investments' adjusted cost and fair value by contractual maturity as of March 31, 2023 (in thousands): Adjusted Cost Fair Value Due within one year $ 380,542 $ 378,042 Due after one year through three years 612,822 613,863 Investments not due at a single maturity date 149,731 149,731 Total $ 1,143,095 $ 1,141,636 |
Convertible Senior Notes (Table
Convertible Senior Notes (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Debt Disclosure [Abstract] | |
Schedule of Long-term Debt Instruments | The total net proceeds from the notes are as follows (in thousands): 2026 Notes 2025 Notes Principal amount $ 1,000,000 $ 800,000 Less initial purchasers’ discount (15,000) (18,998) Less other issuance costs (904) (822) Net proceeds $ 984,096 $ 780,180 |
Schedule of Debt | The net carrying amount of the notes is as follows (in thousands): March 31, 2023 December 31, 2022 2026 Notes 2025 Notes 2026 Notes 2025 Notes Principal $ 500,000 $ 699,979 $ 500,000 $ 699,979 Unamortized issuance costs (4,512) (5,817) (4,837) (6,549) Net carrying amount $ 495,488 $ 694,162 $ 495,163 $ 693,430 |
Schedule Of Interest Expense Recognized | The following table sets forth the total interest expense recognized related to the notes (in thousands): Three Months Ended March 31, 2023 2022 2026 notes: Contractual interest expense $ — $ — Amortization of issuance costs 325 650 Total 2026 notes interest expense $ 325 $ 650 2025 notes: Contractual interest expense $ 216 $ 215 Amortization of issuance costs 732 732 Total 2025 notes interest expense $ 948 $ 947 |
Stockholders' Equity (Tables)
Stockholders' Equity (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Share-Based Payment Arrangement [Abstract] | |
Schedule of Stock-Based Compensation Expense for Employees and Non-Employees | Total share-based compensation expense recorded for employees and non-employees is as follows (in thousands): Three Months Ended 2023 2022 Cost of revenues $ 527 $ 623 Research and development 10,914 11,776 Sales and marketing 2,499 4,386 General and administrative 19,806 16,299 Total share-based compensation expense $ 33,746 $ 33,084 |
Schedule of Restricted Stock Unit Activity | Activity for RSUs and PSUs is as follows: RSUs and PSUs Outstanding Shares Outstanding Weighted Average Grant Date Fair Value Balance at December 31, 2022 9,155,680 $ 36.03 Granted 1,631,910 16.63 Released (1,192,925) 37.50 Forfeited (447,107) 34.03 Balance at March 31, 2023 9,147,558 32.48 |
Background and Basis of Prese_4
Background and Basis of Presentation - Narrative (Details) $ in Thousands | 3 Months Ended | |
Mar. 31, 2023 USD ($) segment | Mar. 31, 2022 USD ($) | |
Error Corrections and Prior Period Adjustments Restatement [Line Items] | ||
Number of operating segments | segment | 1 | |
Number of reportable segments | segment | 1 | |
Deferred income taxes | $ 3,441 | $ (746) |
Operating leases | $ 12,407 | 2,715 |
Revision of Prior Period, Adjustment | ||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | ||
Deferred income taxes | $ (700) |
Background and Basis of Prese_5
Background and Basis of Presentation - Maturities of Operating Lease Liabilities (Details) $ in Thousands | Mar. 31, 2023 USD ($) |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Remaining nine months of 2023 | $ 6,388 |
2024 | 7,875 |
2025 | 6,625 |
2026 | 5,940 |
2027 | 5,515 |
Thereafter | 1,902 |
Total future minimum lease payments | 34,245 |
Less imputed interest | (4,322) |
Total lease liabilities | $ 29,923 |
Background and Basis of Prese_6
Background and Basis of Presentation - Other Income Net (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||
Interest income | $ 11,263 | $ 1,477 |
Gain on foreign currency remeasurement of purchase consideration | 0 | 4,628 |
Other | 813 | 75 |
Total other income, net | $ 12,076 | $ 6,180 |
Revenues - Disaggregation of Re
Revenues - Disaggregation of Revenue (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Disaggregation of Revenue [Line Items] | ||
Total net revenues | $ 187,601 | $ 202,244 |
Change, Total net revenues | $ (14,643) | |
Change, Total net revenues, percent | (7.00%) | |
Subscription Services | ||
Disaggregation of Revenue [Line Items] | ||
Total net revenues | $ 168,440 | 173,037 |
Change, Total net revenues | $ (4,597) | |
Change, Total net revenues, percent | (3.00%) | |
Skills and Other | ||
Disaggregation of Revenue [Line Items] | ||
Total net revenues | $ 19,161 | $ 29,207 |
Change, Total net revenues | $ (10,046) | |
Change, Total net revenues, percent | (34.00%) |
Revenues - Narrative (Details)
Revenues - Narrative (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Revenue from Contract with Customer [Abstract] | ||
Contract with customer, liability, revenue recognized | $ 39,100 | $ 30,900 |
Decrease in accounts receivable, net | $ (1,515) | |
Decrease in accounts receivable, net, percent | (6.00%) | |
Decrease in contract assets | $ 441 | |
Decrease in contract assets, percent | 4% | |
Increase in deferred revenue | $ 2,295 | |
Increase in deferred revenue, percent | 4% |
Revenues - Contract Balances (D
Revenues - Contract Balances (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2023 | Dec. 31, 2022 | |
Revenue from Contract with Customer [Abstract] | ||
Accounts receivable, net | $ 22,000 | $ 23,515 |
Change, accounts receivable, net | $ (1,515) | |
Change, accounts receivable, net, percent | (6.00%) | |
Contract assets | $ 11,505 | 11,946 |
Change, Contract assets | $ (441) | |
Change, Contract assets, percent | (4.00%) | |
Deferred revenue | $ 58,568 | $ 56,273 |
Change, deferred revenue | $ 2,295 | |
Change, deferred revenue, percent | 4% |
Net Income Per Share - Computat
Net Income Per Share - Computation of Basic and Diluted Net Income Per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Numerator: | ||
Net income | $ 2,186 | $ 5,742 |
Denominator: | ||
Weighted average shares used to compute net income per share, basic (in shares) | 123,710 | 132,162 |
Weighted average shares used to compute net income per share, diluted (in shares) | 124,304 | 133,270 |
Net income per share, basic (in dollars per share) | $ 0.02 | $ 0.04 |
Net income per share, diluted (in dollars per share) | $ 0.02 | $ 0.04 |
Shares related to stock plan activity | ||
Denominator: | ||
Incremental common shares attributable to dilutive effect (in shares) | 594 | 1,108 |
Net Income Per Share - Shares E
Net Income Per Share - Shares Excluded From Computation Of Diluted Net Income Per Share (Details) - shares shares in Thousands | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Total common stock equivalents (in shares) | 24,509 | 25,175 |
Shares related to stock plan activity | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Total common stock equivalents (in shares) | 6,283 | 2,300 |
Shares related to convertible senior notes | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Total common stock equivalents (in shares) | 18,226 | 22,875 |
Cash and Cash Equivalents, In_3
Cash and Cash Equivalents, Investments and Fair Value Measurements - Schedule of Available For Sale Securities (Details) - USD ($) $ in Thousands | Mar. 31, 2023 | Dec. 31, 2022 |
Debt Securities, Available-for-sale [Line Items] | ||
Adjusted Cost | $ 1,143,095 | |
Fair Value | 1,141,636 | |
Cash and cash equivalents: | ||
Debt Securities, Available-for-sale [Line Items] | ||
Adjusted Cost | $ 473,677 | |
Unrealized Gain | 0 | |
Unrealized Loss | 0 | |
Fair Value | 473,677 | |
Cash and cash equivalents: | Level 2 | ||
Debt Securities, Available-for-sale [Line Items] | ||
Adjusted Cost | 281,340 | |
Unrealized Gain | 0 | |
Unrealized Loss | (38) | |
Fair Value | 281,302 | |
Cash and cash equivalents: | Cash | ||
Debt Securities, Available-for-sale [Line Items] | ||
Adjusted Cost | 31,393 | 33,532 |
Unrealized Gain | 0 | 0 |
Unrealized Loss | 0 | 0 |
Fair Value | 31,393 | 33,532 |
Cash and cash equivalents: | Money market funds | Level 1 | ||
Debt Securities, Available-for-sale [Line Items] | ||
Adjusted Cost | 149,731 | 440,145 |
Unrealized Gain | 0 | 0 |
Unrealized Loss | 0 | 0 |
Fair Value | 149,731 | 440,145 |
Cash and cash equivalents: | Commercial paper | Level 2 | ||
Debt Securities, Available-for-sale [Line Items] | ||
Adjusted Cost | 100,216 | |
Unrealized Gain | 0 | |
Unrealized Loss | (38) | |
Fair Value | 100,178 | |
Short-term investments: | ||
Debt Securities, Available-for-sale [Line Items] | ||
Adjusted Cost | 588,474 | |
Unrealized Gain | 0 | |
Unrealized Loss | (4,501) | |
Fair Value | 583,973 | |
Short-term investments: | Level 2 | ||
Debt Securities, Available-for-sale [Line Items] | ||
Adjusted Cost | 280,326 | |
Unrealized Gain | 0 | |
Unrealized Loss | (2,462) | |
Fair Value | 277,864 | |
Short-term investments: | Commercial paper | Level 2 | ||
Debt Securities, Available-for-sale [Line Items] | ||
Adjusted Cost | 11,744 | |
Unrealized Gain | 0 | |
Unrealized Loss | (29) | |
Fair Value | 11,715 | |
Short-term investments: | Corporate debt securities | Level 2 | ||
Debt Securities, Available-for-sale [Line Items] | ||
Adjusted Cost | 214,883 | 491,459 |
Unrealized Gain | 0 | 0 |
Unrealized Loss | (2,435) | (4,130) |
Fair Value | 212,448 | 487,329 |
Short-term investments: | U.S. treasury securities | Level 1 | ||
Debt Securities, Available-for-sale [Line Items] | ||
Adjusted Cost | 30,190 | 85,271 |
Unrealized Gain | 0 | 0 |
Unrealized Loss | (21) | (342) |
Fair Value | 30,169 | 84,929 |
Short-term investments: | Agency bonds | Level 2 | ||
Debt Securities, Available-for-sale [Line Items] | ||
Adjusted Cost | 35,253 | |
Unrealized Gain | 0 | |
Unrealized Loss | (6) | |
Fair Value | 35,247 | |
Long-term investments: | ||
Debt Securities, Available-for-sale [Line Items] | ||
Adjusted Cost | 217,003 | |
Unrealized Gain | 280 | |
Unrealized Loss | (1,050) | |
Fair Value | 216,233 | |
Long-term investments: | Level 2 | ||
Debt Securities, Available-for-sale [Line Items] | ||
Adjusted Cost | 612,822 | |
Unrealized Gain | 1,547 | |
Unrealized Loss | (506) | |
Fair Value | 613,863 | |
Long-term investments: | Corporate debt securities | Level 2 | ||
Debt Securities, Available-for-sale [Line Items] | ||
Adjusted Cost | 364,729 | 125,735 |
Unrealized Gain | 1,003 | 158 |
Unrealized Loss | (366) | (909) |
Fair Value | 365,366 | 124,984 |
Long-term investments: | U.S. treasury securities | Level 1 | ||
Debt Securities, Available-for-sale [Line Items] | ||
Adjusted Cost | 99,424 | 30,633 |
Unrealized Gain | 470 | 122 |
Unrealized Loss | (54) | 0 |
Fair Value | 99,840 | 30,755 |
Long-term investments: | Agency bonds | Level 2 | ||
Debt Securities, Available-for-sale [Line Items] | ||
Adjusted Cost | 148,669 | 60,635 |
Unrealized Gain | 74 | 0 |
Unrealized Loss | (86) | (141) |
Fair Value | $ 148,657 | $ 60,494 |
Cash and Cash Equivalents, In_4
Cash and Cash Equivalents, Investments and Fair Value Measurements - Contractual Maturity (Details) $ in Thousands | Mar. 31, 2023 USD ($) |
Adjusted Cost | |
Due within one year | $ 380,542 |
Due after one year through three years | 612,822 |
Investments not due at a single maturity date | 149,731 |
Adjusted Cost | 1,143,095 |
Fair Value | |
Due within one year | 378,042 |
Due after one year through three years | 613,863 |
Investments not due at a single maturity date | 149,731 |
Fair Value | $ 1,141,636 |
Cash and Cash Equivalents, In_5
Cash and Cash Equivalents, Investments and Fair Value Measurements - Strategic Investment (Details) $ in Millions | Jul. 31, 2022 USD ($) |
Knack Technologies, Inc | |
Schedule of Investments [Line Items] | |
Investment without readily determinable fair value | $ 6 |
Cash and Cash Equivalents, In_6
Cash and Cash Equivalents, Investments and Fair Value Measurements - Debt (Details) - Estimate of Fair Value Measurement - Senior Notes - Fair Value, Measurements, Nonrecurring - USD ($) $ in Millions | Mar. 31, 2023 | Dec. 31, 2022 |
2026 Notes | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Convertible senior notes | $ 393.1 | $ 385 |
2025 Notes | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Convertible senior notes | $ 617.7 | $ 640.5 |
Convertible Senior Notes - Narr
Convertible Senior Notes - Narrative (Details) - Senior Notes $ / shares in Units, $ in Thousands | 1 Months Ended | 3 Months Ended | ||||
Aug. 31, 2020 USD ($) $ / shares | Apr. 30, 2019 USD ($) $ / shares | Apr. 30, 2018 | Mar. 31, 2023 USD ($) day $ / shares shares | Dec. 31, 2022 USD ($) | Mar. 31, 2019 USD ($) | |
Sale Price Is Greater Or Equal 130% | ||||||
Debt Instrument [Line Items] | ||||||
Threshold trading days | day | 20 | |||||
Threshold consecutive trading days | day | 30 | |||||
Threshold percentage of stock price trigger | 130% | |||||
Trading Price Per $1,000 Principal Amount Less Than 98% | ||||||
Debt Instrument [Line Items] | ||||||
Threshold trading days | day | 5 | |||||
Threshold consecutive trading days | day | 10 | |||||
Trading Price Per $1,000 Principal Amount Less Than 98% | Maximum | ||||||
Debt Instrument [Line Items] | ||||||
Threshold percentage of stock price trigger | 98% | |||||
Fundamental Change Scenario | ||||||
Debt Instrument [Line Items] | ||||||
Threshold percentage of stock price trigger | 100% | |||||
2026 Notes | ||||||
Debt Instrument [Line Items] | ||||||
Face value | $ 1,000,000 | $ 500,000 | $ 500,000 | |||
Interest rate, stated percentage | 0% | |||||
Proceeds from issuance of debt | $ 1,000,000 | |||||
Conversion ratio | 0.0092978 | |||||
Conversion price (in dollars per share) | $ / shares | $ 107.55 | |||||
Net proceeds | $ 984,096 | |||||
2026 Notes | Capped Call | ||||||
Debt Instrument [Line Items] | ||||||
Conversion price (in dollars per share) | $ / shares | $ 156.44 | |||||
Net proceeds | 103,400 | |||||
Debt instrument, convertible (in shares) | shares | 9,297,800 | |||||
0% Convertible Senior Notes Due 2026, Additional Notes | ||||||
Debt Instrument [Line Items] | ||||||
Face value | $ 100,000 | |||||
2025 Notes | ||||||
Debt Instrument [Line Items] | ||||||
Face value | $ 100,000 | $ 699,979 | $ 699,979 | $ 700,000 | ||
Interest rate, stated percentage | 0.125% | |||||
Proceeds from issuance of debt | $ 800,000 | |||||
Conversion ratio | 0.0193956 | |||||
Conversion price (in dollars per share) | $ / shares | $ 51.56 | |||||
Net proceeds | $ 780,180 | |||||
2025 Notes | Capped Call | ||||||
Debt Instrument [Line Items] | ||||||
Conversion price (in dollars per share) | $ / shares | $ 79.32 | |||||
Net proceeds | $ 97,200 | |||||
Debt instrument, convertible (in shares) | shares | 13,576,513 |
Convertible Senior Notes - Long
Convertible Senior Notes - Long-term Debt Instruments (Details) - Senior Notes - USD ($) $ in Thousands | 1 Months Ended | |
Aug. 31, 2020 | Apr. 30, 2019 | |
2026 Notes | ||
Debt Instrument [Line Items] | ||
Principal amount | $ 1,000,000 | |
Less initial purchasers’ discount | (15,000) | |
Less other issuance costs | (904) | |
Net proceeds | $ 984,096 | |
2025 Notes | ||
Debt Instrument [Line Items] | ||
Principal amount | $ 800,000 | |
Less initial purchasers’ discount | (18,998) | |
Less other issuance costs | (822) | |
Net proceeds | $ 780,180 |
Convertible Senior Notes - Net
Convertible Senior Notes - Net Carrying Amount (Details) - Senior Notes - USD ($) $ in Thousands | Mar. 31, 2023 | Dec. 31, 2022 | Aug. 31, 2020 | Apr. 30, 2019 | Mar. 31, 2019 |
2026 Notes | |||||
Debt Instrument [Line Items] | |||||
Principal | $ 500,000 | $ 500,000 | $ 1,000,000 | ||
Unamortized issuance costs | (4,512) | (4,837) | |||
2026 Notes | Carrying Amount | Fair Value, Measurements, Nonrecurring | |||||
Debt Instrument [Line Items] | |||||
Net carrying amount | 495,488 | 495,163 | |||
2025 Notes | |||||
Debt Instrument [Line Items] | |||||
Principal | 699,979 | 699,979 | $ 100,000 | $ 700,000 | |
Unamortized issuance costs | (5,817) | (6,549) | |||
2025 Notes | Carrying Amount | Fair Value, Measurements, Nonrecurring | |||||
Debt Instrument [Line Items] | |||||
Net carrying amount | $ 694,162 | $ 693,430 |
Convertible Senior Notes - Inte
Convertible Senior Notes - Interest Expense Recognized (Details) - Senior Notes - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
2026 Notes | ||
Debt Instrument [Line Items] | ||
Contractual interest expense | $ 0 | $ 0 |
Amortization of issuance costs | 325 | 650 |
Total interest expense | 325 | 650 |
2025 Notes | ||
Debt Instrument [Line Items] | ||
Contractual interest expense | 216 | 215 |
Amortization of issuance costs | 732 | 732 |
Total interest expense | $ 948 | $ 947 |
Convertible Senior Notes - Capp
Convertible Senior Notes - Capped Call Transactions (Details) - Senior Notes - USD ($) $ / shares in Units, $ in Thousands | 1 Months Ended | ||
Aug. 31, 2020 | Apr. 30, 2019 | Mar. 31, 2023 | |
2026 Notes | |||
Debt Instrument [Line Items] | |||
Net proceeds | $ 984,096 | ||
Conversion price (in dollars per share) | $ 107.55 | ||
2025 Notes | |||
Debt Instrument [Line Items] | |||
Net proceeds | $ 780,180 | ||
Conversion price (in dollars per share) | $ 51.56 | ||
Capped Call | 2026 Notes | |||
Debt Instrument [Line Items] | |||
Net proceeds | $ 103,400 | ||
Debt instrument, convertible (in shares) | 9,297,800 | ||
Conversion price (in dollars per share) | $ 156.44 | ||
Capped Call | 2025 Notes | |||
Debt Instrument [Line Items] | |||
Net proceeds | $ 97,200 | ||
Debt instrument, convertible (in shares) | 13,576,513 | ||
Conversion price (in dollars per share) | $ 79.32 |
Stockholders' Equity - Share Re
Stockholders' Equity - Share Repurchase (Details) $ in Thousands | 3 Months Ended | 12 Months Ended | ||
Feb. 23, 2023 USD ($) transaction shares | Mar. 31, 2023 USD ($) | Mar. 31, 2022 USD ($) | Dec. 31, 2022 shares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Purchase price | $ | $ 151,311 | $ 300,450 | ||
2023 ASR | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Number of transactions | transaction | 2 | |||
Purchase price | $ | $ 150,000 | |||
Stock repurchased and retired during period, shares (in shares) | shares | 7,599,747 | |||
Stock repurchased and retired during period, percentage | 80% | |||
Associated costs | $ | $ 1,300 | |||
Stock repurchased of excise tax percentage | 1% | |||
Accelerated Share Repurchase Program | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Stock repurchased and retired during period, shares (in shares) | shares | 11,562,475 | |||
Open Market Transactions | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Repurchases of common stock (in shares) | shares | 1,146,803 |
Stockholders' Equity - Securiti
Stockholders' Equity - Securities Repurchase Program (Details) - USD ($) $ in Millions | 1 Months Ended | |
Jun. 30, 2022 | Mar. 31, 2023 | |
Share-Based Payment Arrangement [Abstract] | ||
Stock repurchase program, increase of authorized amount | $ 1,000 | |
Stock repurchase program, authorized amount | $ 2,000 | |
Remaining under repurchase program | $ 492.6 |
Stockholders' Equity - Schedule
Stockholders' Equity - Schedule of Share-based Compensation Expense (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items] | ||
Share-based compensation expense | $ 33,746 | $ 33,084 |
Cost of revenues | ||
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items] | ||
Share-based compensation expense | 527 | 623 |
Research and development | ||
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items] | ||
Share-based compensation expense | 10,914 | 11,776 |
Sales and marketing | ||
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items] | ||
Share-based compensation expense | 2,499 | 4,386 |
General and administrative | ||
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items] | ||
Share-based compensation expense | $ 19,806 | $ 16,299 |
Stockholders' Equity - Narrativ
Stockholders' Equity - Narrative of Share-based Compensation Expense (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Share-based compensation expense capitalized | $ 1 | $ 1.8 |
RSUs and PSUs | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Unrecognized compensation costs related to restricted stock units | $ 207 | |
Weighted-average vesting period | 2 years 2 months 12 days |
Stockholders' Equity - Schedu_2
Stockholders' Equity - Schedule of RSU and PSU Activity (Details) - RSUs and PSUs | 3 Months Ended |
Mar. 31, 2023 $ / shares shares | |
Shares Outstanding | |
Beginning balance (in shares) | shares | 9,155,680 |
Granted (in shares) | shares | 1,631,910 |
Released (in shares) | shares | (1,192,925) |
Forfeited (in shares) | shares | (447,107) |
Ending balance (in shares) | shares | 9,147,558 |
Weighted Average Grant Date Fair Value | |
Beginning balance (in dollars per share) | $ / shares | $ 36.03 |
Granted (in dollars per share) | $ / shares | 16.63 |
Released (in dollars per share) | $ / shares | 37.50 |
Forfeited (in dollars per share) | $ / shares | 34.03 |
Ending balance (in dollars per share) | $ / shares | $ 32.48 |
Subsequent Event (Details)
Subsequent Event (Details) $ in Millions | May 01, 2023 USD ($) |
Subsequent Event | Sound Ventures AI Fund, LP | |
Subsequent Event [Line Items] | |
Commitment to invest | $ 15 |