Cover Page
Cover Page - shares | 6 Months Ended | |
Jun. 30, 2023 | Jul. 31, 2023 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Jun. 30, 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, $0.001 par value per share | |
Trading Symbol | CHGG | |
Security Exchange Name | NYSE | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 115,321,288 | |
Entity Central Index Key | 0001364954 | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Year Focus | 2023 | |
Document Fiscal Period Focus | Q2 | |
Amendment Flag | false |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Jun. 30, 2023 | Dec. 31, 2022 |
Current assets | ||
Cash and cash equivalents | $ 175,368 | $ 473,677 |
Short-term investments | 209,686 | 583,973 |
Accounts receivable, net of allowance of $224 and $394 at June 30, 2023 and December 31, 2022, respectively | 20,670 | 23,515 |
Prepaid expenses | 18,620 | 28,481 |
Other current assets | 22,372 | 34,754 |
Total current assets | 446,716 | 1,144,400 |
Long-term investments | 422,758 | 216,233 |
Property and equipment, net | 198,318 | 204,383 |
Goodwill | 629,564 | 615,093 |
Intangible assets, net | 67,630 | 78,333 |
Right of use assets | 28,267 | 18,838 |
Deferred tax assets | 146,790 | 167,524 |
Other assets | 28,492 | 20,612 |
Total assets | 1,968,535 | 2,465,416 |
Current liabilities | ||
Accounts payable | 12,954 | 12,367 |
Deferred revenue | 53,200 | 56,273 |
Accrued liabilities | 76,657 | 70,234 |
Total current liabilities | 142,811 | 138,874 |
Long-term liabilities | ||
Convertible senior notes, net | 767,043 | 1,188,593 |
Long-term operating lease liabilities | 21,253 | 13,375 |
Other long-term liabilities | 2,427 | 7,985 |
Total long-term liabilities | 790,723 | 1,209,953 |
Total liabilities | 933,534 | 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; 115,177,618 and 126,473,827 shares issued and outstanding at June 30, 2023 and December 31, 2022, respectively | 115 | 126 |
Additional paid-in capital | 1,121,820 | 1,244,504 |
Accumulated other comprehensive loss | (43,179) | (57,488) |
Accumulated deficit | (43,755) | (70,553) |
Total stockholders' equity | 1,035,001 | 1,116,589 |
Total liabilities and stockholders' equity | $ 1,968,535 | $ 2,465,416 |
CONDENSED CONSOLIDATED BALANC_2
CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands | Jun. 30, 2023 | Dec. 31, 2022 |
Statement of Financial Position [Abstract] | ||
Allowance for doubtful accounts receivable, current | $ 224 | $ 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) | 115,177,618 | 126,473,827 |
Common stock, shares outstanding (in shares) | 115,177,618 | 126,473,827 |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Income Statement [Abstract] | ||||
Net revenues | $ 182,853 | $ 194,721 | $ 370,454 | $ 396,965 |
Cost of revenues | 47,412 | 45,684 | 96,562 | 100,769 |
Gross profit | 135,441 | 149,037 | 273,892 | 296,196 |
Operating expenses: | ||||
Research and development | 52,872 | 52,480 | 99,779 | 104,895 |
Sales and marketing | 30,956 | 35,279 | 67,973 | 77,777 |
General and administrative | 70,309 | 53,935 | 129,282 | 100,805 |
Total operating expenses | 154,137 | 141,694 | 297,034 | 283,477 |
(Loss) income from operations | (18,696) | 7,343 | (23,142) | 12,719 |
Interest expense, net and other income, net: | ||||
Interest expense, net | (1,114) | (1,616) | (2,382) | (3,213) |
Other income, net | 64,103 | 1,809 | 76,179 | 7,989 |
Total interest expense, net and other income, net | 62,989 | 193 | 73,797 | 4,776 |
Income before provision for income taxes | 44,293 | 7,536 | 50,655 | 17,495 |
Provision for income taxes | (19,681) | (60) | (23,857) | (4,277) |
Net income | $ 24,612 | $ 7,476 | $ 26,798 | $ 13,218 |
Net income (loss) per share | ||||
Basic (in dollars per share) | $ 0.21 | $ 0.06 | $ 0.22 | $ 0.10 |
Diluted (in dollars per share) | $ (0.11) | $ 0.06 | $ (0.08) | $ 0.10 |
Weighted average shares used to compute net income (loss) per share | ||||
Basic (in shares) | 117,977 | 126,272 | 120,828 | 129,201 |
Diluted (in shares) | 132,944 | 149,574 | 137,416 | 129,934 |
CONDENSED CONSOLIDATED STATEM_2
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Statement of Comprehensive Income [Abstract] | ||||
Net income | $ 24,612 | $ 7,476 | $ 26,798 | $ 13,218 |
Other comprehensive income (loss) | ||||
Change in net unrealized loss on investments, net of tax | (4,420) | (2,333) | (608) | (15,250) |
Change in foreign currency translation adjustments, net of tax | 6,579 | (29,613) | 14,917 | (48,284) |
Other comprehensive income (loss) | 2,159 | (31,946) | 14,309 | (63,534) |
Total comprehensive income (loss) | $ 26,771 | $ (24,470) | $ 41,107 | $ (50,316) |
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) | (11,562,000) | ||||
Repurchases of common stock | (300,450) | $ (12) | (300,438) | ||
Issuance of common stock upon exercise of stock options and ESPP (in shares) | 319,000 | ||||
Issuance of common stock upon exercise of stock options and ESPP | 4,557 | 4,557 | |||
Net share settlement of equity awards (in shares) | 635,000 | ||||
Net share settlement of equity awards | 10,220 | $ (1) | 10,221 | ||
Share-based compensation expense | 68,303 | 68,303 | |||
Other comprehensive income (loss) | (63,534) | (63,534) | |||
Net income | 13,218 | 13,218 | |||
Ending balance (in shares) at Jun. 30, 2022 | 126,344,000 | ||||
Ending balance at Jun. 30, 2022 | 818,791 | $ 126 | 1,211,506 | (68,868) | (323,973) |
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) |
Beginning balance (in shares) at Mar. 31, 2022 | 126,682,000 | ||||
Beginning balance at Mar. 31, 2022 | 808,521 | $ 127 | 1,176,765 | (36,922) | (331,449) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Repurchases of common stock (in shares) | (837,000) | ||||
Repurchases of common stock | 0 | $ (1) | 1 | ||
Issuance of common stock upon exercise of stock options and ESPP (in shares) | 265,000 | ||||
Issuance of common stock upon exercise of stock options and ESPP | 4,102 | 4,102 | |||
Net share settlement of equity awards (in shares) | 234,000 | ||||
Net share settlement of equity awards | 2,754 | 2,754 | |||
Share-based compensation expense | 33,392 | 33,392 | |||
Other comprehensive income (loss) | (31,946) | (31,946) | |||
Net income | 7,476 | 7,476 | |||
Ending balance (in shares) at Jun. 30, 2022 | 126,344,000 | ||||
Ending balance at Jun. 30, 2022 | $ 818,791 | $ 126 | 1,211,506 | (68,868) | (323,973) |
Beginning balance (in shares) at Dec. 31, 2022 | 126,473,827 | 126,474,000 | |||
Beginning 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) | (13,008,000) | ||||
Repurchases of common stock | (186,368) | $ (13) | (186,355) | ||
Issuance of common stock upon exercise of stock options and ESPP (in shares) | 376,000 | ||||
Issuance of common stock upon exercise of stock options and ESPP | 3,079 | 3,079 | |||
Net share settlement of equity awards (in shares) | 1,336,000 | ||||
Net share settlement of equity awards | 11,066 | $ (2) | 11,068 | ||
Share-based compensation expense | 71,363 | 71,363 | |||
Net proceeds from capped call related to conversions of 2023 notes and 2025 notes | 297 | 297 | |||
Other comprehensive income (loss) | 14,309 | 14,309 | |||
Net income | $ 26,798 | 26,798 | |||
Ending balance (in shares) at Jun. 30, 2023 | 115,177,618 | 115,178,000 | |||
Ending balance at Jun. 30, 2023 | $ 1,035,001 | $ 115 | 1,121,820 | (43,179) | (43,755) |
Beginning balance (in shares) at Mar. 31, 2023 | 119,628,000 | ||||
Beginning balance at Mar. 31, 2023 | 1,006,759 | $ 120 | 1,120,344 | (45,338) | (68,367) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Repurchases of common stock (in shares) | (5,408,000) | ||||
Repurchases of common stock | (35,057) | $ (6) | (35,051) | ||
Issuance of common stock upon exercise of stock options and ESPP (in shares) | 358,000 | ||||
Issuance of common stock upon exercise of stock options and ESPP | 2,935 | 2,935 | |||
Net share settlement of equity awards (in shares) | 600,000 | ||||
Net share settlement of equity awards | 3,331 | $ 1 | 3,332 | ||
Share-based compensation expense | 36,627 | 36,627 | |||
Net proceeds from capped call related to conversions of 2023 notes and 2025 notes | 297 | 297 | |||
Other comprehensive income (loss) | 2,159 | 2,159 | |||
Net income | $ 24,612 | 24,612 | |||
Ending balance (in shares) at Jun. 30, 2023 | 115,177,618 | 115,178,000 | |||
Ending balance at Jun. 30, 2023 | $ 1,035,001 | $ 115 | $ 1,121,820 | $ (43,179) | $ (43,755) |
CONDENSED CONSOLIDATED STATEM_4
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2023 | Jun. 30, 2022 | |
Cash flows from operating activities | ||
Net income | $ 26,798 | $ 13,218 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Share-based compensation expense | 69,666 | 64,171 |
Other depreciation and amortization expense | 52,027 | 41,921 |
Deferred income taxes | 20,142 | (303) |
Gain on early extinguishment of debt | (53,777) | 0 |
Restructuring charges | 5,704 | 0 |
Loss contingency | 7,000 | 0 |
Operating lease expense, net | 3,009 | 3,242 |
Amortization of debt issuance costs | 1,988 | 2,779 |
Loss from write-off of property and equipment | 450 | 2,767 |
Gain on foreign currency remeasurement of purchase consideration | 0 | (4,628) |
Print textbook depreciation expense | 0 | 1,610 |
Impairment on lease related assets | 0 | 3,411 |
Gain on textbook library, net | 0 | (4,967) |
Other non-cash items | (1,083) | 470 |
Change in assets and liabilities, net of effect of acquisition of business: | ||
Accounts receivable | 3,081 | 3,227 |
Prepaid expenses and other current assets | 15,082 | 28,768 |
Other assets | 5,470 | 13,058 |
Accounts payable | (671) | (5,246) |
Deferred revenue | (3,634) | 4,256 |
Accrued liabilities | (7,140) | (21,034) |
Other liabilities | (8,205) | (2,965) |
Net cash provided by operating activities | 135,907 | 143,755 |
Cash flows from investing activities | ||
Purchases of property and equipment | (33,864) | (57,286) |
Purchases of textbooks | 0 | (3,815) |
Proceeds from disposition of textbooks | 9,787 | 2,494 |
Purchases of investments | (552,409) | (356,553) |
Maturities of investments | 476,862 | 522,466 |
Proceeds from sale of investments | 238,681 | 0 |
Purchase of strategic equity investment | (9,604) | 0 |
Acquisition of business, net of cash acquired | 0 | (401,125) |
Net cash provided by (used in) investing activities | 129,453 | (293,819) |
Cash flows from financing activities | ||
Proceeds from common stock issued under stock plans, net | 3,081 | 4,558 |
Payment of taxes related to the net share settlement of equity awards | (11,068) | (10,221) |
Repurchases of common stock | (186,368) | (300,450) |
Repayment of convertible senior notes | (369,761) | 0 |
Proceeds from exercise of convertible senior notes capped call | 300 | 0 |
Net cash used in financing activities | (563,819) | (306,113) |
Effect of exchange rate changes | 197 | 4,628 |
Net decrease in cash, cash equivalents and restricted cash | (298,262) | (451,549) |
Cash, cash equivalents and restricted cash, beginning of period | 475,854 | 855,893 |
Cash, cash equivalents and restricted cash, end of period | 177,592 | 404,344 |
Supplemental cash flow data: | ||
Interest | 517 | 437 |
Income taxes, net of refunds | 6,171 | 3,915 |
Cash paid for amounts included in the measurement of lease liabilities: | ||
Operating cash flows from operating leases | 4,909 | 3,869 |
Right of use assets obtained in exchange for lease obligations: | ||
Operating leases | 12,407 | 3,244 |
Non-cash investing and financing activities: | ||
Accrued purchases of long-lived assets | 4,518 | 4,057 |
Reconciliation of cash, cash equivalents and restricted cash: | ||
Cash and cash equivalents | 175,368 | 402,089 |
Restricted cash included in other current assets | 60 | 64 |
Restricted cash included in other assets | 2,164 | 2,191 |
Total cash, cash equivalents and restricted cash | $ 177,592 | $ 404,344 |
Background and Basis of Present
Background and Basis of Presentation | 6 Months Ended |
Jun. 30, 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 June 30, 2023, our results of operations, results of comprehensive income (loss), and stockholders' equity for the three and six months ended June 30, 2023 and 2022 and cash flows for the six months ended June 30, 2023 and 2022. Our results of operations, results of comprehensive income (loss), stockholders' equity, and cash flows for the six months ended June 30, 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. Except for our policies on strategic investments, 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. Strategic Investments Investments in partnerships where we have the ability to exercise significant influence, but not control, over the investee are accounted for under the equity method of accounting. Equity method investments are initially recorded at cost and adjusted for our share of the investees' earnings or losses, based on our percentage ownership, recognized on a one-quarter lag basis within other income, net on our condensed consolidated statements of operations. Investments in entities where we do not have the ability to exercise significant influence and which do not have readily determinable fair values are accounted for at cost, plus or minus changes resulting from observable price changes in orderly transactions for the identical or a similar investment of the same issuer, if any. Strategic investments are included in other assets on our condensed consolidated balance sheets. We assess our strategic investments for impairment whenever events or changes in circumstances indicate that they may be impaired. The factors we consider in our evaluation include, but are not limited to, a significant deterioration in the earnings performance or business prospects of the investee or factors that raise significant concerns about the investee’s ability to continue as a going concern, such as negative cash flows from operations or working capital deficiencies. 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 six months ended June 30, 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, $0.3 million of deferred tax assets during the six months ended June 30, 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 six months ended June 30, 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 June 30, 2023, are as follows (in thousands): June 30, 2023 Remaining six months of 2023 $ 4,356 2024 7,886 2025 6,622 2026 5,932 2027 5,515 Thereafter 1,902 Total future minimum lease payments 32,213 Less imputed interest (3,896) Total lease liabilities $ 28,317 Condensed Consolidated Statements of Operations Details Other income, net consists of the following (in thousands): Three Months Ended Six Months Ended 2023 2022 2023 2022 Gain on early extinguishment of debt $ 53,777 $ — 53,777 $ — Interest income $ 10,658 $ 2,032 21,921 $ 3,509 Gain on foreign currency remeasurement of purchase consideration — — — $ 4,628 Other (332) (223) 481 (148) Total other income, net $ 64,103 $ 1,809 $ 76,179 $ 7,989 Recent Accounting Pronouncements Recently Issued Accounting Pronouncements Not Yet Adopted There were no accounting pronouncements issued during the six months ended June 30, 2023 that would have a material impact on our financial statements. Recently Adopted Accounting Pronouncements We did not adopt any accounting pronouncements during the six months ended June 30, 2023 that had a material impact on our financial statements. |
Revenues
Revenues | 6 Months Ended |
Jun. 30, 2023 | |
Revenue from Contract with Customer [Abstract] | |
Revenues | Revenues Revenue Recognition Revenues are recognized when control of the 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, 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 recognize significant revenue from our print textbook and eTextbooks offerings. The following tables set 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 $ 165,855 $ 175,424 $ (9,569) (5) % Skills and Other 16,998 19,297 (2,299) (12) Total net revenues $ 182,853 $ 194,721 $ (11,868) (6) Six Months Ended Change 2023 2022 $ % Subscription Services $ 334,295 $ 348,461 $ (14,166) (4) % Skills and Other 36,159 48,504 (12,345) (25) Total net revenues $ 370,454 $ 396,965 $ (26,511) (7) During the three and six months ended June 30, 2023, we recognized revenues of $41.1 million and $47.9 million, respectively, that were included in our deferred revenue balance at the beginning of each respective reporting period. During the three and six months ended June 30, 2022, we recognized revenues of $42.2 million and $32.9 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 June 30, December 31, 2022 $ % Accounts receivable, net $ 20,670 $ 23,515 $ (2,845) (12) % Contract assets 10,693 11,946 (1,253) (10) Deferred revenue 53,200 56,273 (3,073) (5) During the six months ended June 30, 2023 our accounts receivable, net balance decreased by $2.8 million, or 12%, primarily due to timing of billings and seasonality of our business. During the six months ended June 30, 2023, our contract assets balance decreased by $1.3 million, or 10%, primarily due to our Thinkful service. During the six months ended June 30, 2023, our deferred revenue balance decreased by $3.1 million, or 5%, primarily due to timing of bookings and seasonality of our business. |
Net Income (Loss) Per Share
Net Income (Loss) Per Share | 6 Months Ended |
Jun. 30, 2023 | |
Earnings Per Share [Abstract] | |
Net Income (Loss) Per Share | Net Income (Loss) Per Share The following tables set forth the computation of basic and diluted net income (loss) per share (in thousands, except per share amounts): Three Months Ended Six Months Ended 2023 2022 2023 2022 Basic Numerator: Net income $ 24,612 $ 7,476 $ 26,798 $ 13,218 Denominator: Weighted average shares used to compute net income per share, basic 117,977 126,272 120,828 129,201 Net income per share, basic $ 0.21 $ 0.06 $ 0.22 $ 0.10 Diluted Numerator: Net income $ 24,612 $ 7,476 $ 26,798 $ 13,218 Convertible senior notes activity, net of tax (1) (39,398) 1,212 (38,446) — Net (loss) income, diluted $ (14,786) $ 8,688 $ (11,648) $ 13,218 Denominator: Weighted average shares used to compute net income per share, basic 117,977 126,272 120,828 129,201 Shares related to stock plan activity — 427 — 733 Shares related to convertible senior notes 14,967 22,875 16,588 — Weighted average shares used to compute net (loss) income per share, diluted 132,944 149,574 137,416 129,934 Net (loss) income per share, diluted $ (0.11) $ 0.06 $ (0.08) $ 0.10 (1) Includes the gain on early extinguishment and interest expense on our notes, net of tax. For further information, see Note 5, “Convertible Senior Notes.” The following potential weighted-average shares of common stock outstanding were excluded from the computation of diluted net income (loss) per share because including them would have been anti-dilutive (in thousands): Three Months Ended Six Months Ended 2023 2022 2023 2022 Shares related to stock plan activity 9,982 8,041 7,661 3,645 Shares related to convertible senior notes — — — 22,875 Total common stock equivalents 9,982 8,041 7,661 26,520 |
Cash and Cash Equivalents, Inve
Cash and Cash Equivalents, Investments and Fair Value Measurements | 6 Months Ended |
Jun. 30, 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 June 30, 2023 and December 31, 2022 (in thousands except for fair value levels): June 30, 2023 Fair Value Level Adjusted Cost Unrealized Gain Unrealized Loss Fair Value Cash and cash equivalents: Cash $ 38,597 $ — $ — $ 38,597 Money market funds Level 1 136,771 — — 136,771 Total cash and cash equivalents $ 175,368 $ — $ — $ 175,368 Short-term investments: Corporate debt securities Level 2 $ 106,429 $ — $ (805) $ 105,624 U.S. treasury securities Level 1 30,063 — (32) 30,031 Agency bonds Level 2 74,496 — (465) 74,031 Total short-term investments $ 210,988 $ — $ (1,302) $ 209,686 Long-term investments: Corporate debt securities Level 2 $ 195,372 $ 10 $ (1,736) $ 193,646 U.S. treasury securities Level 1 98,946 — (1,168) 97,778 Agency bonds Level 2 133,017 — (1,683) 131,334 Total long-term investments $ 427,335 $ 10 $ (4,587) $ 422,758 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 June 30, 2023, we determined that the unrealized losses on our investments were not driven by credit related factors. During the three and six months ended June 30, 2023 and 2022, we did not recognize any losses on our investments due to credit related factors. During the three and six months ended June 30, 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 June 30, 2023 (in thousands): Adjusted Cost Fair Value Due within one year $ 210,988 $ 209,686 Due after one year through three years 427,335 422,758 Investments not due at a single maturity date 136,771 136,771 Total $ 775,094 $ 769,215 Investments not due at a single maturity date in the preceding table consisted of money market funds. Strategic Investments In May 2023, we entered into a $15.0 million commitment to invest in Sound Ventures AI Fund, L.P. (Sound Ventures), a limited partnership that invests in artificial intelligence companies, for an approximate 6% ownership. We accounted for our investment under the equity method of accounting. During the three months ended June 30, 2023, we funded $9.6 million of our investment commitment. As part of the conditions for entering into the investment, we are contractually required to provide additional investment commitments. As of June 30, 2023, we have unfunded investment commitments of $5.4 million, which can be issued at any time within five years of the commencement of the partnership, which occurred in February 2023. 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 and six months ended June 30, 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 and six months ended June 30, 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 June 30, 2023 and December 31, 2022 was $312.7 million and $385.0 million, respectively. The estimated fair value of the 2025 notes as of June 30, 2023 and December 31, 2022 was $318.5 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 | 6 Months Ended |
Jun. 30, 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. In May 2023, in connection with our securities repurchase program, we extinguished $85.8 million and $341.1 million aggregate principal amount of the 2026 notes and 2025 notes, respectively, in privately-negotiated transactions for a total consideration of $368.6 million, which was paid to the holders in cash. We also incurred approximately $1.2 million in fees resulting in a total reacquisition price of $369.8 million. The carrying amount of the extinguished notes was $423.5 million resulting in a $53.8 million gain on early extinguishment of debt. We elected to reacquire and not cancel the extinguished 2026 notes and the 2025 notes were canceled with the trustee. Additionally, we terminated 2025 notes capped call transactions underlying 6,615,161 shares of our common stock and received aggregate cash proceeds of $0.3 million. As of June 30, 2023, we had 9,297,800 and 6,961,352 shares remaining underlying the 2026 notes and 2025 notes, respectively. During the three months ended June 30, 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): June 30, 2023 December 31, 2022 2026 Notes 2025 Notes 2026 Notes 2025 Notes Principal $ 414,198 $ 358,914 $ 500,000 $ 699,979 Unamortized issuance costs (3,466) (2,603) (4,837) (6,549) Net carrying amount $ 410,732 $ 356,311 $ 495,163 $ 693,430 The following table sets forth the total interest expense recognized related to the notes (in thousands): Three Months Ended June 30, Six Months Ended June 30, 2023 2022 2023 2022 2026 notes: Contractual interest expense $ — $ — $ — $ — Amortization of issuance costs 310 657 635 1,307 Total 2026 notes interest expense $ 310 $ 657 $ 635 $ 1,307 2025 notes: Contractual interest expense $ 182 $ 219 $ 398 $ 434 Amortization of issuance costs 621 740 1,353 1,472 Total 2025 notes interest expense $ 803 $ 959 $ 1,751 $ 1,906 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 June 30, 2023, cover 9,297,800 and 6,961,352 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 | 6 Months Ended |
Jun. 30, 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. On July 25, 2023, the Company received an order granting its motion to compel arbitration, and the case will be stayed pending arbitration. The Company disputes these claims and intends to vigorously defend itself in this matter. On December 22, 2022, JPMorgan Chase Bank, N.A. (JPMC) asserted a demand for repayment by the Company of certain investment proceeds received by the Company in its capacity as an investor in TAPD, Inc. (more commonly known as “Frank”). JPMC seeks such repayment pursuant to certain provisions in the existing Support Agreement between JPMC and the Company that was entered into in connection with JPMC's acquisition of Frank. JPMC has alleged fraud on the part of certain former Frank executives regarding the quantity and quality of its customer accounts. The Company is not at fault however is pursuing a settlement agreement with JPMC. As of June 30, 2023, a loss is probable and reasonably estimable, therefore we have recognized an estimated loss contingency accrual of $7.0 million within general and administrative expense on our condensed consolidated statements of operations. 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. Pearson filed an Amended Complaint on May 10, 2023, and the Company filed an amended answer on June 7, 2023. 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 multi factor 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. |
Guarantees and Indemnifications
Guarantees and Indemnifications | 6 Months Ended |
Jun. 30, 2023 | |
Guarantees And Indemnifications [Abstract] | |
Guarantees and Indemnifications | Guarantees and Indemnifications We 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 June 30, 2023. |
Common Stock
Common Stock | 6 Months Ended |
Jun. 30, 2023 | |
Equity [Abstract] | |
Common Stock | Common Stock We are authorized to issue 400 million shares of our common stock, with a par value per share of $0.001. As of June 30, 2023, we have reserved the following shares of our common stock for future issuance: June 30, 2023 Outstanding stock options 257,542 Outstanding RSUs and PSUs 11,162,669 Shares available for grant under the 2023 Equity Incentive Plan 12,070,617 Shares available for issuance under the Amended and Restated 2013 Employee Stock Purchase Plan 4,000,000 Total common shares reserved for future issuance 27,490,828 Stock Plans 2023 Equity Incentive Plan On April 7, 2023, our Board of Directors adopted our 2023 Equity Incentive Plan (the “2023 EIP”), which was subsequently approved by our stockholders and became effective on June 7, 2023, replacing our 2013 Equity Incentive Plan (the “2013 Plan”). On the effective date of the 2023 EIP, 12,000,000 shares of our common stock were reserved for issuance under the 2023 EIP. On June 6, 2023, the date on which the 2013 Plan expired, all remaining shares available for grant under the 2013 Plan were cancelled, and we will not make any additional grants under the 2013 Plan. In addition, any shares subject to awards, including shares subject to awards granted under the 2013 Plan that were outstanding on June 7, 2023, that are cancelled, forfeited, repurchased, expire by their terms without shares being issued, are used to pay the exercise price of an option or stock appreciation right or withheld to satisfy the tax withholding obligations related to any award, will be returned to the pool of shares available for grant and issuance under the 2023 Plan. As of June 30, 2023, there were 12,070,617 shares available for grant under the 2023 EIP. The 2023 EIP permits the granting of incentive stock options, non-qualified stock options, RSUs, restricted stock awards, stock bonus awards, stock appreciation rights and performance awards. The 2023 EIP terminates on April 7, 2033. Amended and Restated 2013 Employee Stock Purchase Plan On April 7, 2023, our Board of Directors adopted our Amended and Restated 2013 Employee Stock Purchase Plan (the “A&R ESPP”), which was subsequently approved by our stockholders and became effective on June 7, 2023. The A&R ESPP permits eligible employees to purchase shares of our common stock by accumulating funds through periodic payroll deductions. |
Stockholders' Equity
Stockholders' Equity | 6 Months Ended |
Jun. 30, 2023 | |
Share-Based Payment Arrangement [Abstract] | |
Stockholders' Equity | Stockholders' Equity Share Repurchases In June 2023, we repurchased 3,433,157 shares of our common stock in open market transactions for $34.5 million. In February 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 $1.9 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. The 2023 ASR settled during the three months ended June 30, 2023 and we received an additional delivery of 1,974,762 shares of our common stock, which were retired immediately. The 2023 ASR resulted in a total repurchase of 9,574,509 shares of our common stock at a volume-weighted-average price, less an agreed upon discount, of $15.67 per share. We were not required to make any additional cash payments or delivery of common stock to the financial institution upon settlement. In February 2022 and December 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 December 31, 2022, we had $642.6 million remaining under the securities repurchase program. During the six months ended June 30, 2023, we repurchased shares of our common stock for $184.5 million and a portion of our notes for $368.6 million. As of June 30, 2023, we had $89.4 million remaining under the securities 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 Six Months Ended 2023 2022 2023 2022 Cost of revenues $ 560 $ 669 $ 1,087 $ 1,292 Research and development 11,968 10,006 22,882 21,782 Sales and marketing 2,182 4,019 4,681 8,405 General and administrative 21,210 16,393 41,016 32,692 Total share-based compensation expense $ 35,920 $ 31,087 $ 69,666 $ 64,171 During the three and six months ended June 30, 2023, we capitalized share-based compensation expense of $0.7 million and $1.7 million, respectively. During the three and six months ended June 30, 2022, we capitalized share-based compensation expense of $2.3 million and $4.1 million, respectively. As of June 30, 2023, total unrecognized share-based compensation expense was approximately $204.8 million, which is expected to be recognized over the remaining weighted-average vesting period of approximately 2.1 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 5,269,726 15.68 Released (2,080,263) 36.20 Forfeited (1,182,474) 30.53 Balance at June 30, 2023 11,162,669 26.98 |
Restructuring
Restructuring | 6 Months Ended |
Jun. 30, 2023 | |
Restructuring and Related Activities [Abstract] | |
Restructuring | RestructuringIn June 2023, we announced a reduction in workforce to better position the Company to execute against its AI strategy and to create long-term, sustainable value for its students and investors. This resulted in a management approved restructuring plan that impacted approximately 90 employees primarily in the United States. During the three months ended June 30, 2023, we recorded restructuring charges of $5.7 million related to one-time employee termination benefits classified on our condensed consolidated statements of operations based on the employees' job function. As of June 30, 2023, $2.0 million in payments have been made and the $3.7 million liability is included within accrued liabilities on our condensed consolidated balance sheets. The total cost of the restructuring plan has been recorded and we expect it to be completed by the end of fiscal 2023. We expect cost savings from the restructuring plan to be reinvested in future growth opportunities. |
Pay vs Performance Disclosure
Pay vs Performance Disclosure - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Pay vs Performance Disclosure | ||||
Net income | $ 24,612 | $ 7,476 | $ 26,798 | $ 13,218 |
Insider Trading Arrangements
Insider Trading Arrangements | 3 Months Ended | 6 Months Ended |
Jun. 30, 2023 shares | Jun. 30, 2023 shares | |
Trading Arrangements, by Individual | ||
Material Terms of Trading Arrangement | The adoption or termination of contracts, instructions or written plans for the purchase or sale of our securities by our Section 16 officers and directors for the three months ended June 30, 2023, each of which is intended to satisfy the affirmative defense conditions of Rule 10b5-1(c) under the Exchange Act ("Rule 10b5-1 Plan"), were as follows: Name Title Action Date Adopted Expiration Date Aggregate # of Securities to be Purchased/Sold Andrew Brown (1) Chief Financial Officer Adoption May 19, 2023 June 28, 2024 28,241 | |
Name | Andrew Brown | |
Title | Chief Financial Officer | |
Rule 10b5-1 Arrangement Adopted | true | |
Non-Rule 10b5-1 Arrangement Adopted | false | |
Adoption Date | May 19, 2023 | |
Rule 10b5-1 Arrangement Terminated | false | |
Non-Rule 10b5-1 Arrangement Terminated | false | |
Aggregate Available | 28,241,000 | 28,241,000 |
Background and Basis of Prese_2
Background and Basis of Presentation (Policies) | 6 Months Ended |
Jun. 30, 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 June 30, 2023, our results of operations, results of comprehensive income (loss), and stockholders' equity for the three and six months ended June 30, 2023 and 2022 and cash flows for the six months ended June 30, 2023 and 2022. Our results of operations, results of comprehensive income (loss), stockholders' equity, and cash flows for the six months ended June 30, 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. |
Strategic Investments | Strategic Investments Investments in partnerships where we have the ability to exercise significant influence, but not control, over the investee are accounted for under the equity method of accounting. Equity method investments are initially recorded at cost and adjusted for our share of the investees' earnings or losses, based on our percentage ownership, recognized on a one-quarter lag basis within other income, net on our condensed consolidated statements of operations. Investments in entities where we do not have the ability to exercise significant influence and which do not have readily determinable fair values are accounted for at cost, plus or minus changes resulting from observable price changes in orderly transactions for the identical or a similar investment of the same issuer, if any. |
Use of Estimates | 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 |
Reclassification of Prior Period Presentation | Reclassification of Prior Period Presentation In order to conform with current period presentation, $0.3 million of deferred tax assets during the six months ended June 30, 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 six months ended June 30, 2023 that would have a material impact on our financial statements. Recently Adopted Accounting Pronouncements We did not adopt any accounting pronouncements during the six months ended June 30, 2023 that had a material impact on our financial statements. |
Background and Basis of Prese_3
Background and Basis of Presentation (Tables) | 6 Months Ended |
Jun. 30, 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 June 30, 2023, are as follows (in thousands): June 30, 2023 Remaining six months of 2023 $ 4,356 2024 7,886 2025 6,622 2026 5,932 2027 5,515 Thereafter 1,902 Total future minimum lease payments 32,213 Less imputed interest (3,896) Total lease liabilities $ 28,317 |
Schedule of Other Income Net | Other income, net consists of the following (in thousands): Three Months Ended Six Months Ended 2023 2022 2023 2022 Gain on early extinguishment of debt $ 53,777 $ — 53,777 $ — Interest income $ 10,658 $ 2,032 21,921 $ 3,509 Gain on foreign currency remeasurement of purchase consideration — — — $ 4,628 Other (332) (223) 481 (148) Total other income, net $ 64,103 $ 1,809 $ 76,179 $ 7,989 |
Revenues (Tables)
Revenues (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Revenue from Contract with Customer [Abstract] | |
Schedule of Disaggregation of Revenue | The following tables set 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 $ 165,855 $ 175,424 $ (9,569) (5) % Skills and Other 16,998 19,297 (2,299) (12) Total net revenues $ 182,853 $ 194,721 $ (11,868) (6) Six Months Ended Change 2023 2022 $ % Subscription Services $ 334,295 $ 348,461 $ (14,166) (4) % Skills and Other 36,159 48,504 (12,345) (25) Total net revenues $ 370,454 $ 396,965 $ (26,511) (7) |
Schedule of Accounts Receivable | The following table presents our accounts receivable, net, contract assets and deferred revenue balances (in thousands, except percentages): Change June 30, December 31, 2022 $ % Accounts receivable, net $ 20,670 $ 23,515 $ (2,845) (12) % Contract assets 10,693 11,946 (1,253) (10) Deferred revenue 53,200 56,273 (3,073) (5) |
Net Income (Loss) Per Share (Ta
Net Income (Loss) Per Share (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Earnings Per Share [Abstract] | |
Schedule of Earnings Per Share, Basic and Diluted | The following tables set forth the computation of basic and diluted net income (loss) per share (in thousands, except per share amounts): Three Months Ended Six Months Ended 2023 2022 2023 2022 Basic Numerator: Net income $ 24,612 $ 7,476 $ 26,798 $ 13,218 Denominator: Weighted average shares used to compute net income per share, basic 117,977 126,272 120,828 129,201 Net income per share, basic $ 0.21 $ 0.06 $ 0.22 $ 0.10 Diluted Numerator: Net income $ 24,612 $ 7,476 $ 26,798 $ 13,218 Convertible senior notes activity, net of tax (1) (39,398) 1,212 (38,446) — Net (loss) income, diluted $ (14,786) $ 8,688 $ (11,648) $ 13,218 Denominator: Weighted average shares used to compute net income per share, basic 117,977 126,272 120,828 129,201 Shares related to stock plan activity — 427 — 733 Shares related to convertible senior notes 14,967 22,875 16,588 — Weighted average shares used to compute net (loss) income per share, diluted 132,944 149,574 137,416 129,934 Net (loss) income per share, diluted $ (0.11) $ 0.06 $ (0.08) $ 0.10 |
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 (loss) per share because including them would have been anti-dilutive (in thousands): Three Months Ended Six Months Ended 2023 2022 2023 2022 Shares related to stock plan activity 9,982 8,041 7,661 3,645 Shares related to convertible senior notes — — — 22,875 Total common stock equivalents 9,982 8,041 7,661 26,520 |
Cash and Cash Equivalents, In_2
Cash and Cash Equivalents, Investments and Fair Value Measurements (Tables) | 6 Months Ended |
Jun. 30, 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 June 30, 2023 and December 31, 2022 (in thousands except for fair value levels): June 30, 2023 Fair Value Level Adjusted Cost Unrealized Gain Unrealized Loss Fair Value Cash and cash equivalents: Cash $ 38,597 $ — $ — $ 38,597 Money market funds Level 1 136,771 — — 136,771 Total cash and cash equivalents $ 175,368 $ — $ — $ 175,368 Short-term investments: Corporate debt securities Level 2 $ 106,429 $ — $ (805) $ 105,624 U.S. treasury securities Level 1 30,063 — (32) 30,031 Agency bonds Level 2 74,496 — (465) 74,031 Total short-term investments $ 210,988 $ — $ (1,302) $ 209,686 Long-term investments: Corporate debt securities Level 2 $ 195,372 $ 10 $ (1,736) $ 193,646 U.S. treasury securities Level 1 98,946 — (1,168) 97,778 Agency bonds Level 2 133,017 — (1,683) 131,334 Total long-term investments $ 427,335 $ 10 $ (4,587) $ 422,758 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 June 30, 2023 (in thousands): Adjusted Cost Fair Value Due within one year $ 210,988 $ 209,686 Due after one year through three years 427,335 422,758 Investments not due at a single maturity date 136,771 136,771 Total $ 775,094 $ 769,215 |
Convertible Senior Notes (Table
Convertible Senior Notes (Tables) | 6 Months Ended |
Jun. 30, 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): June 30, 2023 December 31, 2022 2026 Notes 2025 Notes 2026 Notes 2025 Notes Principal $ 414,198 $ 358,914 $ 500,000 $ 699,979 Unamortized issuance costs (3,466) (2,603) (4,837) (6,549) Net carrying amount $ 410,732 $ 356,311 $ 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 June 30, Six Months Ended June 30, 2023 2022 2023 2022 2026 notes: Contractual interest expense $ — $ — $ — $ — Amortization of issuance costs 310 657 635 1,307 Total 2026 notes interest expense $ 310 $ 657 $ 635 $ 1,307 2025 notes: Contractual interest expense $ 182 $ 219 $ 398 $ 434 Amortization of issuance costs 621 740 1,353 1,472 Total 2025 notes interest expense $ 803 $ 959 $ 1,751 $ 1,906 |
Common Stock (Tables)
Common Stock (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Equity [Abstract] | |
Schedule Of Common Stock Reserved For Future Issuance | As of June 30, 2023, we have reserved the following shares of our common stock for future issuance: June 30, 2023 Outstanding stock options 257,542 Outstanding RSUs and PSUs 11,162,669 Shares available for grant under the 2023 Equity Incentive Plan 12,070,617 Shares available for issuance under the Amended and Restated 2013 Employee Stock Purchase Plan 4,000,000 Total common shares reserved for future issuance 27,490,828 |
Stockholders' Equity (Tables)
Stockholders' Equity (Tables) | 6 Months Ended |
Jun. 30, 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 Six Months Ended 2023 2022 2023 2022 Cost of revenues $ 560 $ 669 $ 1,087 $ 1,292 Research and development 11,968 10,006 22,882 21,782 Sales and marketing 2,182 4,019 4,681 8,405 General and administrative 21,210 16,393 41,016 32,692 Total share-based compensation expense $ 35,920 $ 31,087 $ 69,666 $ 64,171 |
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 5,269,726 15.68 Released (2,080,263) 36.20 Forfeited (1,182,474) 30.53 Balance at June 30, 2023 11,162,669 26.98 |
Background and Basis of Prese_4
Background and Basis of Presentation - Narrative (Details) $ in Thousands | 6 Months Ended | |
Jun. 30, 2023 USD ($) segment | Jun. 30, 2022 USD ($) | |
Error Corrections and Prior Period Adjustments Restatement [Line Items] | ||
Number of operating segments | segment | 1 | |
Number of reportable segments | segment | 1 | |
Deferred income taxes | $ 20,142 | $ (303) |
Operating leases | $ 12,407 | 3,244 |
Revision of Prior Period, Adjustment | ||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | ||
Deferred income taxes | $ (300) |
Background and Basis of Prese_5
Background and Basis of Presentation - Maturities of Operating Lease Liabilities (Details) $ in Thousands | Jun. 30, 2023 USD ($) |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Remaining six months of 2023 | $ 4,356 |
2024 | 7,886 |
2025 | 6,622 |
2026 | 5,932 |
2027 | 5,515 |
Thereafter | 1,902 |
Total future minimum lease payments | 32,213 |
Less imputed interest | (3,896) |
Total lease liabilities | $ 28,317 |
Background and Basis of Prese_6
Background and Basis of Presentation - Other Income Net (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||||
Gain on early extinguishment of debt | $ 53,777 | $ 0 | $ 53,777 | $ 0 |
Interest income | 10,658 | 2,032 | 21,921 | 3,509 |
Gain on foreign currency remeasurement of purchase consideration | 0 | 0 | 0 | 4,628 |
Other | (332) | (223) | 481 | (148) |
Total other income, net | $ 64,103 | $ 1,809 | $ 76,179 | $ 7,989 |
Revenues - Disaggregation of Re
Revenues - Disaggregation of Revenue (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Disaggregation of Revenue [Line Items] | ||||
Total net revenues | $ 182,853 | $ 194,721 | $ 370,454 | $ 396,965 |
Change, Total net revenues | $ (11,868) | $ (26,511) | ||
Change, Total net revenues, percent | (6.00%) | (7.00%) | ||
Subscription Services | ||||
Disaggregation of Revenue [Line Items] | ||||
Total net revenues | $ 165,855 | 175,424 | $ 334,295 | 348,461 |
Change, Total net revenues | $ (9,569) | $ (14,166) | ||
Change, Total net revenues, percent | (5.00%) | (4.00%) | ||
Skills and Other | ||||
Disaggregation of Revenue [Line Items] | ||||
Total net revenues | $ 16,998 | $ 19,297 | $ 36,159 | $ 48,504 |
Change, Total net revenues | $ (2,299) | $ (12,345) | ||
Change, Total net revenues, percent | (12.00%) | (25.00%) |
Revenues - Narrative (Details)
Revenues - Narrative (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Revenue from Contract with Customer [Abstract] | ||||
Contract with customer, liability, revenue recognized | $ 41,100 | $ 42,200 | $ 47,900 | $ 32,900 |
Decrease in accounts receivable, net | $ (2,845) | |||
Decrease in accounts receivable, net, percent | (12.00%) | |||
Decrease in contract assets | $ 1,253 | |||
Decrease in contract assets, percent | 10% | |||
Increase in deferred revenue | $ (3,073) | |||
Increase in deferred revenue, percent | (5.00%) |
Revenues - Contract Balances (D
Revenues - Contract Balances (Details) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2023 | Dec. 31, 2022 | |
Revenue from Contract with Customer [Abstract] | ||
Accounts receivable, net | $ 20,670 | $ 23,515 |
Change, accounts receivable, net | $ (2,845) | |
Change, accounts receivable, net, percent | (12.00%) | |
Contract assets | $ 10,693 | 11,946 |
Change, Contract assets | $ (1,253) | |
Change, Contract assets, percent | (10.00%) | |
Deferred revenue | $ 53,200 | $ 56,273 |
Change, deferred revenue | $ (3,073) | |
Change, deferred revenue, percent | (5.00%) |
Net Income (Loss) Per Share - C
Net Income (Loss) Per Share - Computation of Basic and Diluted Net Income Per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Numerator: | ||||
Net income | $ 24,612 | $ 7,476 | $ 26,798 | $ 13,218 |
Convertible senior notes activity, net of tax | (39,398) | 1,212 | (38,446) | 0 |
Net (loss) income, diluted | $ (14,786) | $ 8,688 | $ (11,648) | $ 13,218 |
Denominator: | ||||
Weighted average shares used to compute net income per share, basic (in shares) | 117,977 | 126,272 | 120,828 | 129,201 |
Net income per share, basic (in dollars per share) | $ 0.21 | $ 0.06 | $ 0.22 | $ 0.10 |
Weighted average shares used to compute net (loss) income per share, diluted (in shares) | 132,944 | 149,574 | 137,416 | 129,934 |
Net (loss) income per share, diluted (in dollars per share) | $ (0.11) | $ 0.06 | $ (0.08) | $ 0.10 |
Shares related to stock plan activity | ||||
Denominator: | ||||
Incremental common shares attributable to dilutive effect (in shares) | 0 | 427 | 0 | 733 |
Shares related to convertible senior notes | ||||
Denominator: | ||||
Incremental common shares attributable to dilutive effect (in shares) | 14,967 | 22,875 | 16,588 | 0 |
Net Income (Loss) Per Share - S
Net Income (Loss) Per Share - Shares Excluded From Computation Of Diluted Net Income Per Share (Details) - shares shares in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Total common stock equivalents (in shares) | 9,982 | 8,041 | 7,661 | 26,520 |
Shares related to stock plan activity | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Total common stock equivalents (in shares) | 9,982 | 8,041 | 7,661 | 3,645 |
Shares related to convertible senior notes | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Total common stock equivalents (in shares) | 0 | 0 | 0 | 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 | Jun. 30, 2023 | Dec. 31, 2022 |
Debt Securities, Available-for-sale [Line Items] | ||
Adjusted Cost | $ 775,094 | |
Fair Value | 769,215 | |
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 | 175,368 | |
Unrealized Gain | 0 | |
Unrealized Loss | 0 | |
Fair Value | 175,368 | |
Cash and cash equivalents: | Cash | ||
Debt Securities, Available-for-sale [Line Items] | ||
Adjusted Cost | 38,597 | 33,532 |
Unrealized Gain | 0 | 0 |
Unrealized Loss | 0 | 0 |
Fair Value | 38,597 | 33,532 |
Cash and cash equivalents: | Money market funds | Level 1 | ||
Debt Securities, Available-for-sale [Line Items] | ||
Adjusted Cost | 136,771 | 440,145 |
Unrealized Gain | 0 | 0 |
Unrealized Loss | 0 | 0 |
Fair Value | 136,771 | 440,145 |
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 | 210,988 | |
Unrealized Gain | 0 | |
Unrealized Loss | (1,302) | |
Fair Value | 209,686 | |
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 | 106,429 | 491,459 |
Unrealized Gain | 0 | 0 |
Unrealized Loss | (805) | (4,130) |
Fair Value | 105,624 | 487,329 |
Short-term investments: | U.S. treasury securities | Level 1 | ||
Debt Securities, Available-for-sale [Line Items] | ||
Adjusted Cost | 30,063 | 85,271 |
Unrealized Gain | 0 | 0 |
Unrealized Loss | (32) | (342) |
Fair Value | 30,031 | 84,929 |
Short-term investments: | Agency bonds | Level 2 | ||
Debt Securities, Available-for-sale [Line Items] | ||
Adjusted Cost | 74,496 | |
Unrealized Gain | 0 | |
Unrealized Loss | (465) | |
Fair Value | 74,031 | |
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 | 427,335 | |
Unrealized Gain | 10 | |
Unrealized Loss | (4,587) | |
Fair Value | 422,758 | |
Long-term investments: | Corporate debt securities | Level 2 | ||
Debt Securities, Available-for-sale [Line Items] | ||
Adjusted Cost | 195,372 | 125,735 |
Unrealized Gain | 10 | 158 |
Unrealized Loss | (1,736) | (909) |
Fair Value | 193,646 | 124,984 |
Long-term investments: | U.S. treasury securities | Level 1 | ||
Debt Securities, Available-for-sale [Line Items] | ||
Adjusted Cost | 98,946 | 30,633 |
Unrealized Gain | 0 | 122 |
Unrealized Loss | (1,168) | 0 |
Fair Value | 97,778 | 30,755 |
Long-term investments: | Agency bonds | Level 2 | ||
Debt Securities, Available-for-sale [Line Items] | ||
Adjusted Cost | 133,017 | 60,635 |
Unrealized Gain | 0 | 0 |
Unrealized Loss | (1,683) | (141) |
Fair Value | $ 131,334 | $ 60,494 |
Cash and Cash Equivalents, In_4
Cash and Cash Equivalents, Investments and Fair Value Measurements - Contractual Maturity (Details) $ in Thousands | Jun. 30, 2023 USD ($) |
Adjusted Cost | |
Due within one year | $ 210,988 |
Due after one year through three years | 427,335 |
Investments not due at a single maturity date | 136,771 |
Adjusted Cost | 775,094 |
Fair Value | |
Due within one year | 209,686 |
Due after one year through three years | 422,758 |
Investments not due at a single maturity date | 136,771 |
Fair Value | $ 769,215 |
Cash and Cash Equivalents, In_5
Cash and Cash Equivalents, Investments and Fair Value Measurements - Strategic Investments (Details) - USD ($) $ in Thousands | 1 Months Ended | 3 Months Ended | 6 Months Ended | ||
May 31, 2023 | Jun. 30, 2023 | Jun. 30, 2023 | Jun. 30, 2022 | Jul. 31, 2022 | |
Schedule of Investments [Line Items] | |||||
Funded capital calls | $ 9,604 | $ 0 | |||
Sound Ventures AI Fund, LP | |||||
Schedule of Investments [Line Items] | |||||
Commitment to invest | $ 15,000 | ||||
Invests in artificial intelligence companies, ownership percentage | 6% | ||||
Funded capital calls | $ 9,600 | ||||
Unfunded investment | $ 5,400 | $ 5,400 | |||
Unfunded commitment, length of period to issue | 5 years | ||||
Knack Technologies, Inc | |||||
Schedule of Investments [Line Items] | |||||
Investment without readily determinable fair value | $ 6,000 |
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 | Jun. 30, 2023 | Dec. 31, 2022 |
Senior Notes due 2026 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Convertible senior notes | $ 312.7 | $ 385 |
Senior Notes due 2025 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Convertible senior notes | $ 318.5 | $ 640.5 |
Convertible Senior Notes - Narr
Convertible Senior Notes - Narrative (Details) $ / shares in Units, $ in Thousands | 1 Months Ended | 3 Months Ended | 6 Months Ended | |||||||
May 31, 2023 USD ($) | Aug. 31, 2020 USD ($) $ / shares | Apr. 30, 2019 USD ($) $ / shares | Apr. 30, 2018 | Jun. 30, 2023 USD ($) $ / shares shares | Jun. 30, 2022 USD ($) | Jun. 30, 2023 USD ($) day $ / shares shares | Jun. 30, 2022 USD ($) | Dec. 31, 2022 USD ($) | Mar. 31, 2019 USD ($) | |
Debt Instrument [Line Items] | ||||||||||
Repayments of convertible senior notes | $ 369,761 | $ 0 | ||||||||
Gain on early extinguishment of debt | $ 53,777 | $ 0 | 53,777 | 0 | ||||||
Proceeds from exercise and termination of convertible senior notes capped call | 297 | $ 300 | $ 0 | |||||||
Senior Notes | 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% | |||||||||
Senior Notes | 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 | |||||||||
Senior Notes | Trading Price Per $1,000 Principal Amount Less Than 98% | Maximum | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Threshold percentage of stock price trigger | 98% | |||||||||
Senior Notes | Fundamental Change Scenario | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Threshold percentage of stock price trigger | 100% | |||||||||
Senior Notes due 2026 | Senior Notes | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Face value | $ 1,000,000 | $ 414,198 | $ 414,198 | $ 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 | |||||||||
Repurchased face amount | $ 85,800 | |||||||||
Net proceeds | $ 984,096 | |||||||||
Senior Notes due 2026 | Senior Notes | Capped Call | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Conversion price (in dollars per share) | $ / shares | $ 156.44 | $ 156.44 | ||||||||
Debt instrument, convertible (in shares) | shares | 9,297,800 | 9,297,800 | ||||||||
Net proceeds | 103,400 | |||||||||
0% Convertible Senior Notes Due 2026, Additional Notes | Senior Notes | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Face value | $ 100,000 | |||||||||
Senior Notes due 2025 | Senior Notes | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Face value | $ 100,000 | $ 358,914 | $ 358,914 | $ 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 | |||||||||
Repurchased face amount | 341,100 | |||||||||
Net proceeds | $ 780,180 | |||||||||
Senior Notes due 2025 | Senior Notes | Capped Call | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Conversion price (in dollars per share) | $ / shares | $ 79.32 | $ 79.32 | ||||||||
Debt instrument, convertible (in shares) | shares | 6,961,352 | 6,961,352 | ||||||||
Net proceeds | $ 97,200 | |||||||||
Senior Notes due 2025 | Senior Notes | Terminated Capped Call | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Debt instrument, convertible (in shares) | shares | 6,615,161 | 6,615,161 | ||||||||
0% Convertible Senior Notes Due 2026 And 0.125% Convertible Senior Notes Due 2025 | Senior Notes | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Repayments of convertible senior notes | 368,600 | |||||||||
Extinguishment incurred | 1,200 | |||||||||
Debt instrument, reacquisition price of debt | 369,800 | |||||||||
Debt extinguished | 423,500 | |||||||||
Gain on early extinguishment of debt | $ 53,800 |
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 | |
Senior Notes due 2026 | ||
Debt Instrument [Line Items] | ||
Principal amount | $ 1,000,000 | |
Less initial purchasers’ discount | (15,000) | |
Less other issuance costs | (904) | |
Net proceeds | $ 984,096 | |
Senior Notes due 2025 | ||
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 | Jun. 30, 2023 | Dec. 31, 2022 | Aug. 31, 2020 | Apr. 30, 2019 | Mar. 31, 2019 |
Senior Notes due 2026 | |||||
Debt Instrument [Line Items] | |||||
Principal | $ 414,198 | $ 500,000 | $ 1,000,000 | ||
Unamortized issuance costs | (3,466) | (4,837) | |||
Senior Notes due 2026 | Carrying Amount | Fair Value, Measurements, Nonrecurring | |||||
Debt Instrument [Line Items] | |||||
Net carrying amount | 410,732 | 495,163 | |||
Senior Notes due 2025 | |||||
Debt Instrument [Line Items] | |||||
Principal | 358,914 | 699,979 | $ 100,000 | $ 700,000 | |
Unamortized issuance costs | (2,603) | (6,549) | |||
Senior Notes due 2025 | Carrying Amount | Fair Value, Measurements, Nonrecurring | |||||
Debt Instrument [Line Items] | |||||
Net carrying amount | $ 356,311 | $ 693,430 |
Convertible Senior Notes - Inte
Convertible Senior Notes - Interest Expense Recognized (Details) - Senior Notes - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Senior Notes due 2026 | ||||
Debt Instrument [Line Items] | ||||
Contractual interest expense | $ 0 | $ 0 | $ 0 | $ 0 |
Amortization of issuance costs | 310 | 657 | 635 | 1,307 |
Total interest expense | 310 | 657 | 635 | 1,307 |
Senior Notes due 2025 | ||||
Debt Instrument [Line Items] | ||||
Contractual interest expense | 182 | 219 | 398 | 434 |
Amortization of issuance costs | 621 | 740 | 1,353 | 1,472 |
Total interest expense | $ 803 | $ 959 | $ 1,751 | $ 1,906 |
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 | Jun. 30, 2023 | |
Senior Notes due 2026 | |||
Debt Instrument [Line Items] | |||
Net proceeds | $ 984,096 | ||
Conversion price (in dollars per share) | $ 107.55 | ||
Senior Notes due 2025 | |||
Debt Instrument [Line Items] | |||
Net proceeds | $ 780,180 | ||
Conversion price (in dollars per share) | $ 51.56 | ||
Capped Call | Senior Notes due 2026 | |||
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 | Senior Notes due 2025 | |||
Debt Instrument [Line Items] | |||
Net proceeds | $ 97,200 | ||
Debt instrument, convertible (in shares) | 6,961,352 | ||
Conversion price (in dollars per share) | $ 79.32 |
Commitments and Contingencies (
Commitments and Contingencies (Details) $ in Millions | Jun. 30, 2023 USD ($) |
Commitments and Contingencies Disclosure [Abstract] | |
Loss contingency accrual | $ 7 |
Common Stock - Narrative (Detai
Common Stock - Narrative (Details) - $ / shares | Jun. 07, 2023 | Jun. 30, 2023 | Dec. 31, 2022 |
Class of Stock [Line Items] | |||
Common stock, shares authorized (in shares) | 400,000,000 | 400,000,000 | |
Common stock, par value (in dollars per share) | $ 0.001 | $ 0.001 | |
Total common shares reserved for future issuance (in shares) | 27,490,828 | ||
2023 Equity Incentive Plan | |||
Class of Stock [Line Items] | |||
Total common shares reserved for future issuance (in shares) | 12,000,000 | ||
Shares available for grant under the 2023 EIP (in shares) | 12,070,617 | ||
2013 Employee Stock Purchase Plan | |||
Class of Stock [Line Items] | |||
Total common shares reserved for future issuance (in shares) | 4,000,000 | ||
Employee discount on applicable offering period | 15% | ||
Shares reserved | 4,000,000 |
Common Stock - Schedule of Comm
Common Stock - Schedule of Common Stock Reserved for Future Issuance (Details) - shares | Jun. 30, 2023 | Jun. 07, 2023 | Dec. 31, 2022 |
Class of Stock [Line Items] | |||
Outstanding stock options (in shares) | 257,542 | ||
Total common shares reserved for future issuance (in shares) | 27,490,828 | ||
2023 Equity Incentive Plan | |||
Class of Stock [Line Items] | |||
Shares available for grant under the 2023 EIP (in shares) | 12,070,617 | ||
Total common shares reserved for future issuance (in shares) | 12,000,000 | ||
2013 Employee Stock Purchase Plan | |||
Class of Stock [Line Items] | |||
Total common shares reserved for future issuance (in shares) | 4,000,000 | ||
RSUs and PSUs | |||
Class of Stock [Line Items] | |||
Outstanding RSUs and PSUs (in shares) | 11,162,669 | 9,155,680 |
Stockholders' Equity - Share Re
Stockholders' Equity - Share Repurchase (Details) $ / shares in Units, $ in Thousands | 1 Months Ended | 3 Months Ended | 6 Months Ended | 12 Months Ended | |||
Jun. 30, 2023 USD ($) shares | Feb. 28, 2023 USD ($) transaction shares | Jun. 30, 2023 USD ($) shares | Jun. 30, 2022 USD ($) | Jun. 30, 2023 USD ($) $ / shares shares | Jun. 30, 2022 USD ($) | Dec. 31, 2022 shares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Repurchases of common stock | $ 35,057 | $ 0 | $ 186,368 | $ 300,450 | |||
Purchase price | $ 186,368 | $ 300,450 | |||||
Open Market Transactions | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Repurchases of common stock (in shares) | shares | 3,433,157 | 1,146,803 | |||||
Repurchases of common stock | $ 34,500 | ||||||
2023 ASR | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Repurchases of common stock (in shares) | shares | 9,574,509 | ||||||
Number of transactions | transaction | 2 | ||||||
Purchase price | $ 150,000 | ||||||
Stock repurchased and retired during period, shares (in shares) | shares | 7,599,747 | 1,974,762 | |||||
Stock repurchased and retired during period, percentage | 80% | ||||||
Associated costs | $ 1,900 | ||||||
Stock repurchased of excise tax percentage | 1% | ||||||
Stock repurchased and retired during the period, weighted-average price (in dollars per share) | $ / shares | $ 15.67 | ||||||
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 |
Stockholders' Equity - Securiti
Stockholders' Equity - Securities Repurchase Program (Details) - USD ($) $ in Thousands | 1 Months Ended | 3 Months Ended | 6 Months Ended | ||||
May 31, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | Dec. 31, 2022 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Repurchases of common stock | $ 35,057 | $ 0 | $ 186,368 | $ 300,450 | |||
Repayments of convertible senior notes | 369,761 | 0 | |||||
Securities Repurchase Program | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Stock repurchase program, increase of authorized amount | $ 1,000,000 | ||||||
Stock repurchase program, authorized amount | $ 2,000,000 | $ 2,000,000 | $ 2,000,000 | ||||
Remaining under repurchase program | $ 89,400 | 89,400 | $ 642,600 | ||||
Repurchases of common stock | $ 184,500 | ||||||
0% Convertible Senior Notes Due 2026 And 0.125% Convertible Senior Notes Due 2025 | Senior Notes | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Repayments of convertible senior notes | $ 368,600 | ||||||
0% Convertible Senior Notes Due 2026 And 0.125% Convertible Senior Notes Due 2025 | Senior Notes | Securities Repurchase Program | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Repayments of convertible senior notes | $ 368,600 |
Stockholders' Equity - Schedule
Stockholders' Equity - Schedule of Share-based Compensation Expense (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items] | ||||
Share-based compensation expense | $ 35,920 | $ 31,087 | $ 69,666 | $ 64,171 |
Cost of revenues | ||||
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items] | ||||
Share-based compensation expense | 560 | 669 | 1,087 | 1,292 |
Research and development | ||||
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items] | ||||
Share-based compensation expense | 11,968 | 10,006 | 22,882 | 21,782 |
Sales and marketing | ||||
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items] | ||||
Share-based compensation expense | 2,182 | 4,019 | 4,681 | 8,405 |
General and administrative | ||||
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items] | ||||
Share-based compensation expense | $ 21,210 | $ 16,393 | $ 41,016 | $ 32,692 |
Stockholders' Equity - Narrativ
Stockholders' Equity - Narrative of Share-based Compensation Expense (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Share-based compensation expense capitalized | $ 0.7 | $ 2.3 | $ 1.7 | $ 4.1 |
RSUs and PSUs | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Unrecognized compensation costs related to restricted stock units | $ 204.8 | $ 204.8 | ||
Weighted-average vesting period | 2 years 1 month 6 days |
Stockholders' Equity - Schedu_2
Stockholders' Equity - Schedule of RSU and PSU Activity (Details) - RSUs and PSUs | 6 Months Ended |
Jun. 30, 2023 $ / shares shares | |
Shares Outstanding | |
Beginning balance (in shares) | shares | 9,155,680 |
Granted (in shares) | shares | 5,269,726 |
Released (in shares) | shares | (2,080,263) |
Forfeited (in shares) | shares | (1,182,474) |
Ending balance (in shares) | shares | 11,162,669 |
Weighted Average Grant Date Fair Value | |
Beginning balance (in dollars per share) | $ / shares | $ 36.03 |
Granted (in dollars per share) | $ / shares | 15.68 |
Released (in dollars per share) | $ / shares | 36.20 |
Forfeited (in dollars per share) | $ / shares | 30.53 |
Ending balance (in dollars per share) | $ / shares | $ 26.98 |
Restructuring (Details)
Restructuring (Details) $ in Millions | 1 Months Ended | 3 Months Ended |
Jun. 30, 2023 USD ($) full_time_employee | Jun. 30, 2023 USD ($) | |
Restructuring and Related Activities [Abstract] | ||
Number of positions impacted | full_time_employee | 90 | |
Restructuring charges | $ 5.7 | |
Payments for restructuring | $ 2 | |
Restructuring liability | $ 3.7 | $ 3.7 |