Cover Page
Cover Page - USD ($) $ in Billions | 12 Months Ended | ||
Dec. 31, 2023 | Feb. 02, 2024 | Jun. 30, 2023 | |
Document Information [Line Items] | |||
Document Type | 10-K | ||
Document Annual Report | true | ||
Document Period End Date | Dec. 31, 2023 | ||
Current Fiscal Year End Date | --12-31 | ||
Document Transition Report | false | ||
Entity File Number | 001-38872 | ||
Entity Registrant Name | Pinterest, Inc. | ||
Entity Incorporation, State or Country Code | DE | ||
Entity Tax Identification Number | 26-3607129 | ||
Entity Address, Address Line One | 651 Brannan Street | ||
Entity Address, City or Town | San Francisco | ||
Entity Address, State or Province | CA | ||
Entity Address, Postal Zip Code | 94107 | ||
City Area Code | 415 | ||
Local Phone Number | 762-7100 | ||
Title of 12(b) Security | Class A Common Stock, $0.00001 par value | ||
Trading Symbol | PINS | ||
Security Exchange Name | NYSE | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Interactive Data Current | Yes | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Small Business | false | ||
Entity Emerging Growth Company | false | ||
ICFR Auditor Attestation Flag | true | ||
Document Financial Statement Error Correction | false | ||
Entity Shell Company | false | ||
Entity Public Float | $ 13.8 | ||
Documents Incorporated by Reference | Portions of the registrant’s Definitive Proxy Statement for the 2024 Annual Meeting of Stockholders are incorporated by reference into Part III of this Annual Report on Form 10-K where indicated. Such Definitive Proxy Statement will be filed with the Securities and Exchange Commission within 120 days after the end of the registrant’s fiscal year ended December 31, 2023. | ||
Document Fiscal Period Focus | FY | ||
Amendment Flag | false | ||
Document Fiscal Year Focus | 2023 | ||
Entity Central Index Key | 0001506293 | ||
Class A Common Stock | |||
Document Information [Line Items] | |||
Entity Common Stock, Shares Outstanding | 595,211,750 | ||
Class B Common Stock | |||
Document Information [Line Items] | |||
Entity Common Stock, Shares Outstanding | 83,771,609 |
Audit Information
Audit Information | 12 Months Ended |
Dec. 31, 2023 | |
Audit Information [Abstract] | |
Auditor Name | Ernst & Young LLP |
Auditor Firm ID | 42 |
Auditor Location | San Francisco, California |
Consolidated balance sheets
Consolidated balance sheets - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Current assets: | ||
Cash and cash equivalents | $ 1,361,936 | $ 1,611,063 |
Marketable securities | 1,149,148 | 1,087,164 |
Accounts receivable, net of allowances of $10,635 and $12,672 as of December 31, 2023 and 2022, respectively | 763,159 | 681,532 |
Prepaid expenses and other current assets | 64,316 | 74,918 |
Total current assets | 3,338,559 | 3,454,677 |
Property and equipment, net | 32,225 | 59,575 |
Operating lease right-of-use assets | 92,119 | 206,253 |
Goodwill and intangible assets, net | 117,462 | 124,822 |
Other assets | 14,040 | 17,403 |
Total assets | 3,594,405 | 3,862,730 |
Current liabilities: | ||
Accounts payable | 79,058 | 87,920 |
Accrued expenses and other current liabilities | 238,032 | 292,611 |
Total current liabilities | 317,090 | 380,531 |
Operating lease liabilities | 160,616 | 178,694 |
Other liabilities | 26,019 | 21,851 |
Total liabilities | 503,725 | 581,076 |
Commitments and contingencies | ||
Stockholders’ equity: | ||
Class A common stock, $0.00001 par value, 6,666,667 shares authorized, 591,663 and 593,918 shares issued and outstanding as of December 31, 2023 and 2022, respectively; Class B common stock, $0.00001 par value, 1,333,333 shares authorized, 86,355 and 89,284 shares issued and outstanding as of December 31, 2023 and 2022, respectively | 7 | 7 |
Additional paid-in capital | 5,241,954 | 5,407,724 |
Accumulated other comprehensive loss | (1,013) | (11,419) |
Accumulated deficit | (2,150,268) | (2,114,658) |
Total stockholders’ equity | 3,090,680 | 3,281,654 |
Total liabilities and stockholders’ equity | $ 3,594,405 | $ 3,862,730 |
Consolidated balance sheets (Pa
Consolidated balance sheets (Parenthetical) - USD ($) shares in Thousands, $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Allowances | $ 10,635 | $ 12,672 |
Class A Common Stock | ||
Common stock, par value (in dollars per share) | $ 0.00001 | $ 0.00001 |
Common stock, shares authorized (in shares) | 6,666,667 | 6,666,667 |
Common stock, shares issued (in shares) | 591,663 | 593,918 |
Common stock, shares outstanding (in shares) | 591,663 | 593,918 |
Class B Common Stock | ||
Common stock, par value (in dollars per share) | $ 0.00001 | $ 0.00001 |
Common stock, shares authorized (in shares) | 1,333,333 | 1,333,333 |
Common stock, shares issued (in shares) | 86,355 | 89,284 |
Common stock, shares outstanding (in shares) | 86,355 | 89,284 |
Consolidated statements of oper
Consolidated statements of operations - USD ($) shares in Thousands, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Income Statement [Abstract] | |||
Revenue | $ 3,055,071 | $ 2,802,574 | $ 2,578,027 |
Costs and expenses: | |||
Cost of revenue | 688,760 | 678,597 | 529,320 |
Research and development | 1,068,416 | 948,980 | 780,264 |
Sales and marketing | 911,166 | 933,133 | 641,279 |
General and administrative | 512,407 | 343,541 | 300,977 |
Total costs and expenses | 3,180,749 | 2,904,251 | 2,251,840 |
Income (loss) from operations | (125,678) | (101,677) | 326,187 |
Interest income (expense), net | 105,439 | 30,235 | 3,075 |
Other income (expense), net | 3,799 | (14,502) | (8,291) |
Income (loss) before provision for income taxes | (16,440) | (85,944) | 320,971 |
Provision for income taxes | 19,170 | 10,103 | 4,533 |
Net income (loss) | $ (35,610) | $ (96,047) | $ 316,438 |
Net income (loss) per share: | |||
Basic (in dollars per share) | $ (0.05) | $ (0.14) | $ 0.49 |
Diluted (in dollars per share) | $ (0.05) | $ (0.14) | $ 0.46 |
Weighted-average shares used in computing net income (loss) per share: | |||
Basic (in shares) | 674,641 | 665,732 | 640,030 |
Diluted (in shares) | 674,641 | 665,732 | 691,651 |
Consolidated statements of comp
Consolidated statements of comprehensive income (loss) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Statement of Comprehensive Income [Abstract] | |||
Net income (loss) | $ (35,610) | $ (96,047) | $ 316,438 |
Other comprehensive income (loss), net of taxes: | |||
Change in unrealized gain (loss) on available-for-sale marketable securities | 10,001 | (8,334) | (4,252) |
Change in foreign currency translation adjustment | 405 | (904) | (409) |
Comprehensive income (loss) | $ (25,204) | $ (105,285) | $ 311,777 |
Consolidated statements of stoc
Consolidated statements of stockholders' equity - USD ($) shares in Thousands, $ in Thousands | Total | Common Stock | Additional Paid-In Capital | Accumulated Other Comprehensive Income (Loss) | Accumulated Deficit |
Beginning balance (in shares) at Dec. 31, 2020 | 626,372 | ||||
Beginning balance at Dec. 31, 2020 | $ 2,242,371 | $ 6 | $ 4,574,934 | $ 2,480 | $ (2,335,049) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Release of restricted stock units and issuance of restricted stock awards, net (in shares) | 21,944 | ||||
Release of restricted stock units and issuance of restricted stock awards, net | 1 | $ 1 | |||
Issuance of common stock for cash upon exercise of stock options, net (in shares) | 7,806 | ||||
Issuance of common stock for cash upon exercise of stock options, net | 23,912 | 23,912 | |||
Issuance of common stock related to charitable contributions (in shares) | 750 | ||||
Issuance of common stock related to charitable contributions | 45,300 | 45,300 | |||
Share-based compensation | 415,382 | 415,382 | |||
Other comprehensive (loss) income | (4,661) | (4,661) | |||
Net income (loss) | 316,438 | 316,438 | |||
Ending balance (in shares) at Dec. 31, 2021 | 656,872 | ||||
Ending balance at Dec. 31, 2021 | 3,038,743 | $ 7 | 5,059,528 | (2,181) | (2,018,611) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Release of restricted stock units and issuance of restricted stock awards, net (in shares) | 17,435 | ||||
Shares repurchased for tax withholdings on release of restricted stock units and restricted stock awards | (161,809) | (161,809) | |||
Issuance of common stock for cash upon exercise of stock options, net (in shares) | 8,895 | ||||
Issuance of common stock for cash upon exercise of stock options, net | 12,882 | 12,882 | |||
Share-based compensation | 497,123 | 497,123 | |||
Other comprehensive (loss) income | (9,238) | (9,238) | |||
Net income (loss) | (96,047) | (96,047) | |||
Ending balance (in shares) at Dec. 31, 2022 | 683,202 | ||||
Ending balance at Dec. 31, 2022 | 3,281,654 | $ 7 | 5,407,724 | (11,419) | (2,114,658) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Release of restricted stock units and issuance of restricted stock awards, net (in shares) | 12,776 | ||||
Shares repurchased for tax withholdings on release of restricted stock units and restricted stock awards | $ (335,019) | (335,019) | |||
Issuance of common stock for cash upon exercise of stock options, net (in shares) | 2,756 | 2,756 | |||
Issuance of common stock for cash upon exercise of stock options, net | $ 8,499 | 8,499 | |||
Issuance of common stock related to charitable contributions (in shares) | 500 | ||||
Issuance of common stock related to charitable contributions | 12,890 | 12,890 | |||
Repurchases of Class A common stock (in shares) | (21,216) | ||||
Repurchases of Class A common stock | (500,000) | (500,000) | |||
Share-based compensation | 647,860 | 647,860 | |||
Other comprehensive (loss) income | 10,406 | 10,406 | |||
Net income (loss) | (35,610) | (35,610) | |||
Ending balance (in shares) at Dec. 31, 2023 | 678,018 | ||||
Ending balance at Dec. 31, 2023 | $ 3,090,680 | $ 7 | $ 5,241,954 | $ (1,013) | $ (2,150,268) |
Consolidated statements of cash
Consolidated statements of cash flows - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Operating activities | |||
Net income (loss) | $ (35,610) | $ (96,047) | $ 316,438 |
Adjustments to reconcile net income (loss) to net cash provided by operating activities: | |||
Depreciation and amortization | 21,509 | 46,489 | 27,500 |
Share-based compensation | 647,860 | 497,123 | 415,382 |
Non-cash charitable contributions | 12,890 | 0 | 45,300 |
Impairment and abandonment charges for leases and leasehold improvements | 117,315 | 0 | 0 |
Amortization (accretion) of investment premiums discount | (21,897) | (638) | 5,908 |
Other | (2,438) | (13,251) | 3,699 |
Changes in assets and liabilities: | |||
Accounts receivable | (80,782) | (28,856) | (88,862) |
Prepaid expenses and other assets | 18,102 | (30,214) | (14,727) |
Operating lease right-of-use assets | 55,324 | 56,024 | 43,995 |
Accounts payable | (9,261) | 70,777 | (33,451) |
Accrued expenses and other liabilities | (43,544) | 20,627 | 82,435 |
Operating lease liabilities | (66,507) | (52,832) | (50,710) |
Net cash provided by operating activities | 612,961 | 469,202 | 752,907 |
Investing activities | |||
Purchases of property and equipment and intangible assets | (8,063) | (28,984) | (9,031) |
Purchases of marketable securities | (1,308,020) | (1,028,480) | (1,104,087) |
Sales of marketable securities | 35,850 | 7,417 | 274,654 |
Maturities of marketable securities | 1,243,240 | 1,007,861 | 849,520 |
Acquisition of business, net of cash acquired | 0 | (86,059) | (36,914) |
Net cash used in investing activities | (36,993) | (128,245) | (25,858) |
Financing activities | |||
Proceeds from exercise of stock options, net | 8,256 | 12,882 | 23,912 |
Repurchases of Class A common stock | (500,000) | 0 | 0 |
Shares repurchased for tax withholdings on release of restricted stock units and restricted stock awards | (335,019) | (161,809) | 0 |
Payment of deferred offering costs and other financing activities | 0 | 0 | (1,750) |
Net cash (used in) provided by financing activities | (826,763) | (148,927) | 22,162 |
Effect of exchange rate changes on cash, cash equivalents and restricted cash | 1,667 | (1,434) | (1,058) |
Net increase in cash, cash equivalents and restricted cash | (249,128) | 190,596 | 748,153 |
Cash, cash equivalents and restricted cash, beginning of period | 1,617,660 | 1,427,064 | 678,911 |
Cash, cash equivalents and restricted cash, end of period | 1,368,532 | 1,617,660 | 1,427,064 |
Supplemental cash flow information | |||
Cash paid for income taxes, net | 19,173 | 10,008 | 1,494 |
Non-cash investing and financing activities: | |||
Operating lease right-of-use assets obtained in exchange for operating lease liabilities | $ 32,784 | $ 31,515 | $ 118,977 |
Consolidated statements of ca_2
Consolidated statements of cash flows (Parenthetical) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 |
Reconciliation of cash, cash equivalents and restricted cash to consolidated balance sheets | |||
Cash and cash equivalents | $ 1,361,936 | $ 1,611,063 | $ 1,419,630 |
Restricted cash included in prepaid expenses and other current assets | 2,542 | 1,067 | 1,137 |
Restricted cash included in other assets | 4,054 | 5,530 | 6,297 |
Total cash, cash equivalents and restricted cash | $ 1,368,532 | $ 1,617,660 | $ 1,427,064 |
Description of business and sum
Description of business and summary of significant accounting policies | 12 Months Ended |
Dec. 31, 2023 | |
Accounting Policies [Abstract] | |
Description of business and summary of significant accounting policies | Description of business and summary of significant accounting policies Description of business Pinterest was incorporated in Delaware in 2008 and is headquartered in San Francisco, California. Pinterest is a visual search and discovery platform, positioned at the intersection of search, social, and commerce. We generate revenue by delivering ads on our website and mobile application. Basis of presentation and consolidation We prepared the accompanying consolidated financial statements in accordance with generally accepted accounting principles in the United States ("GAAP"). The consolidated financial statements include the accounts of Pinterest, Inc. and its wholly owned subsidiaries. We have eliminated all intercompany balances and transactions. Reclassifications We have reclassified certain amounts in prior periods to conform with current presentation. Use of estimates Preparing our consolidated financial statements in conformity with GAAP requires us to make estimates and judgments that affect amounts reported in the consolidated financial statements and accompanying notes. We base these estimates and judgments on historical experience and various other assumptions that we consider reasonable. GAAP requires us to make estimates and assumptions in several areas, including the fair values of financial instruments, assets acquired and liabilities assumed through business combinations, share-based awards, and contingencies as well as the collectability of our accounts receivable, the useful lives of our intangible assets and property and equipment, the incremental borrowing rate we use to determine our operating lease liabilities, and revenue recognition, among others. Actual results could differ materially from these estimates and judgments. Segments We operate as a single operating segment. Our chief operating decision maker is our Chief Executive Officer ("CEO"), who reviews financial information presented on a consolidated basis, accompanied by disaggregated information about our revenue, for purposes of making operating decisions, assessing financial performance and allocating resources. Revenue recognition We generate revenue by delivering ads on our website and mobile application. We recognize revenue only after transferring control of promised goods or services to customers, which occurs when a user clicks on an ad contracted on a cost per click ("CPC") basis, views an ad contracted on a cost per thousand impressions ("CPM") or cost per day ("CPD") basis or views a video ad contracted on a cost per view ("CPV") basis. We recognize revenue over the service period for ads contracted on a CPD basis, which do not contain minimum impression guarantees. We typically bill customers on a CPC, CPM, CPV, or CPD basis, and our payment terms vary by customer type and location. The term between billing and payment due dates is not significant. We recognize revenue only after satisfying our contractual performance obligations. We occasionally offer customers free ad inventory. When contracts with our customers contain multiple performance obligations, we allocate the overall transaction price, which is the amount of consideration to which we expect to be entitled in exchange for promised goods or services, to each of the distinct performance obligations based on their relative standalone selling prices. We generally determine standalone selling prices based on the effective price charged per contracted click, impression or view, and we do not disclose the value of unsatisfied performance obligations because the original expected duration of our contracts is generally less than one year. We record sales commissions in sales and marketing as incurred because we would amortize these over a period of less than one year. Deferred revenue was $15.3 million and $13.2 million as of December 31, 2023 and 2022, respectively. Cost of revenue Cost of revenue consists primarily of expenses associated with the delivery of our service, including the cost of hosting our website and mobile application. Cost of revenue also includes personnel-related expense, including salaries, benefits and share-based compensation for employees on our operations teams, payments associated with partner arrangements, credit card and other transaction processing fees, amortization of acquired intangible assets and allocated facilities and other supporting overhead costs. Share-based compensation Restricted stock units ("RSUs") granted under our 2009 Stock Plan (the "2009 Plan") are subject to both a service condition, which is typically satisfied over four years, and a performance condition, which was deemed satisfied upon the pricing of our initial public offering ("IPO"). We did not record any share-based compensation expense for our RSUs prior to our IPO because the performance condition had not yet been satisfied. Upon pricing our IPO, we recorded cumulative share-based compensation expense using the accelerated attribution method for those RSUs granted under our 2009 Plan for which the service condition had been satisfied at that date. We record the remaining unrecognized share-based compensation expense over the remainder of the requisite service period. RSUs, restricted stock awards ("RSAs"), and stock options granted under our 2019 Omnibus Incentive Plan (the "2019 Plan") are generally subject only to a service condition, which is typically satisfied over two We measure RSUs and RSAs based on the fair market value of our common stock on the grant date and stock options based on their estimated grant date fair values, which we determine using the Black-Scholes option-pricing model. We record the resulting expense in our consolidated statements of operations over the requisite service period, which is generally four years, and we account for forfeitures as they occur. Income taxes We account for income taxes using the asset and liability method. We recognize deferred tax assets and liabilities for temporary differences between the financial reporting and tax bases of assets and liabilities using the enacted statutory tax rates in effect for the years in which we expect the differences to reverse. We establish valuation allowances to reduce deferred tax assets to the amounts we believe it is more likely than not we will be able to realize. We recognize tax benefits from uncertain tax positions when we believe it is more likely than not that the tax position is sustainable on examination by tax authorities based on its technical merits. We recognize taxes on Global Intangible Low-Taxed Income as incurred. Advertising expenses We record advertising expenses as incurred and include these in sales and marketing in the consolidated statements of operations. Advertising expenses were $145.6 million, $139.7 million and $94.7 million for the years ended December 31, 2023, 2022 and 2021, respectively. Marketable securities We invest in highly liquid corporate debt securities, U.S. treasury securities, asset-backed securities, U.S. government agency securities, municipal securities, non-U.S. government and supranational bonds and certificates of deposit. We classify marketable investments with stated maturities of ninety days or less from the date of purchase as cash equivalents and those with stated maturities greater than ninety days from the date of purchase as marketable securities. We classify our marketable securities as available-for-sale investments in our current assets because they are available for use to support current operations. We carry our marketable investments at fair value and record unrealized gains or losses, net of taxes, in accumulated other comprehensive income (loss) in stockholders’ equity. We determine realized gains and losses on the sale of marketable investments using a specific identification method and record these and any expected credit losses in other income (expense), net. Fair value measurements We account for certain assets and liabilities at fair value, which is the amount we believe market participants would be willing to receive to sell an asset or pay to transfer a liability in an orderly transaction. We categorize these assets and liabilities into the three levels below based on the degree to which the inputs we use to measure their fair values are observable in active markets. We use the most observable inputs available to us when measuring fair value. • Level 1: Observable inputs such as quoted prices for identical assets or liabilities in active markets • Level 2: Observable inputs such as quoted prices for similar assets or liabilities in active markets, quoted prices for identical assets or liabilities in inactive markets, or inputs that are derived principally from or corroborated by observable market data or other means • Level 3: Unobservable inputs that are supported by little or no market activity and are significant to the fair value of the assets or liabilities Accounts receivable, net of allowances We record accounts receivable at the original invoiced amount. We maintain an allowance for credit losses for any receivables we may be unable to collect. We estimate uncollectible receivables based on our receivables’ age, our customers’ credit quality and current economic conditions, among other factors that may affect our customers’ ability to pay. We also maintain an allowance for sales credits, which we determine based on historical credits issued to customers. We include the allowances for credit losses and sales credits in accounts receivable, net in the consolidated balance sheets. Property and equipment We carry property and equipment at cost less accumulated depreciation and calculate depreciation using the straight-line method over our assets’ estimated useful lives, which are generally: Property and Equipment Useful Life Computer and network equipment 3 years Furniture and fixtures 4 years Leasehold improvements Lesser of estimated useful life or remaining lease term Leases and operating lease incremental borrowing rate We lease office space under operating leases with expiration dates through 2035. We determine whether an arrangement constitutes a lease at inception and record lease liabilities and right-of-use assets on our consolidated balance sheets at lease commencement. We measure lease liabilities based on the present value of the total lease payments not yet paid discounted based on the more readily determinable of the rate implicit in the lease or our incremental borrowing rate, which is the estimated rate we would be required to pay for a collateralized borrowing equal to the total lease payments over the term of the lease. We estimate our incremental borrowing rate based on an analysis of publicly traded debt securities of companies with credit and financial profiles similar to our own. We measure right-of-use assets based on the corresponding lease liability adjusted for (i) payments made to the lessor at or before the commencement date, (ii) initial direct costs we incur and (iii) tenant incentives under the lease. We begin recognizing rent expense when the lessor makes the underlying asset available to us, we do not assume renewals or early terminations unless we are reasonably certain to exercise these options at commencement and we do not allocate consideration between lease and non-lease components. For short-term leases, we record rent expense in our consolidated statements of operations on a straight-line basis over the lease term and record variable lease payments as incurred. B usiness combinations We include the results of operations of businesses that we acquire in our consolidated financial statements beginning on their respective acquisition dates. We allocate the fair value of the purchase consideration to the assets acquired and liabilities assumed based on their estimated fair values. When the fair value of the purchase consideration exceeds the fair values of the identifiable assets and liabilities acquired, we record the excess as goodwill. Our estimates of fair value are based on assumptions we believe to be reasonable but which are inherently uncertain and unpredictable, and as a result, actual results may differ from estimates. During the measurement period, which is one year from the acquisition date, we may record adjustments to the assets and liabilities acquired with the corresponding offset to goodwill. Any adjustments after the measurement period are reflected in our consolidated statements of operations. Long-lived assets, including goodwill and intangible assets We record definite-lived intangible assets at fair value less accumulated amortization. We calculate amortization using the straight-line method over the assets’ estimated useful lives of up to ten years. We review our property and equipment, operating lease right-of-use assets and intangible assets for impairment whenever events or circumstances indicate that an asset’s carrying value may not be recoverable. We measure recoverability by comparing an asset’s carrying value to the future undiscounted cash flows that we expect it to generate. If this test indicates that the asset’s carrying value is not recoverable, we record an impairment charge to reduce the asset’s carrying value to its fair value. We recorded $117.3 million of impairment and abandonment charges for operating lease right-of-use assets and leasehold improvements for the year ended December 31, 2023. Refer to Note 13, "Restructuring" for further information. In the fourth quarter of 2022, we recorded $9.4 million of impairment charges for acquired intangible assets. We did not record any other material property and equipment or intangible asset impairments during the periods presented. We review goodwill for impairment at least annually or more frequently if current circumstances or events indicate that the fair value of our single reporting unit may be less than its carrying value. We did not record any goodwill impairment during the periods presented. Website development costs We capitalize costs to develop our website and mobile application when preliminary development efforts are successfully completed, management has authorized and committed project funding, and it is probable that the project will be completed and the software will be used as intended. Due to the iterative process by which we perform upgrades and the relatively short duration of our development projects, development costs meeting our capitalization criteria were not material during the periods presented. Loss contingencies We are involved in various lawsuits, claims and proceedings that arise in the ordinary course of business. We record a liability for these when we believe it is probable that we have incurred a loss and can reasonably estimate the loss. We regularly evaluate current information to determine whether we should adjust a recorded liability or record a new one. Foreign currency The functional currency of our international subsidiaries is generally their local currency. We translate these subsidiaries’ financial statements into U.S. dollars using month-end exchange rates for assets and liabilities and rates that approximate those in effect during the period for revenue and costs and expenses. We record translation gains and losses in accumulated other comprehensive loss in stockholders’ equity. We record foreign exchange gains and losses in other income (expense), net. Our net foreign exchange gains and losses were not material for the periods presented. Concentration of business risk We have an agreement with Amazon Web Services (“AWS”) to provide the cloud computing infrastructure we use to host our website, mobile application and many of the internal tools we use to operate our business. We are currently required to maintain a substantial majority of our monthly usage of certain compute, storage, data transfer and other services on AWS. Any transition of the cloud services currently provided by AWS to another cloud services provider would be difficult to implement and would cause us to incur significant time and expense. Concentration of credit risk Financial instruments that may potentially expose us to concentrations of credit risk primarily consist of cash, cash equivalents, marketable securities and restricted cash. Our investment policy is meant to preserve capital and maintain liquidity. The policy limits our marketable investments to investment-grade securities and limits our credit exposure by limiting our concentration in any one corporate issuer or sector and by establishing a minimum credit rating for marketable investments we purchase. Although we deposit cash and marketable investments with multiple financial institutions, our deposits may exceed insurable limits. No customer accounted for more than 10% of our revenue for the years ended December 31, 2023, 2022 and 2021. Our accounts receivable are generally unsecured. We monitor our customers’ credit quality on an ongoing basis and maintain reserves for estimated credit losses. Bad debt expense was not material for the years ended December 31, 2023, 2022 and 2021 . Recent Accounting Pronouncements Not Yet Adopted In November 2023, the Financial Accounting Standards Board ("FASB") issued ASU 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures , which requires disclosure of incremental segment information on an annual and interim basis. ASU 2023-07 will be effective for our annual periods beginning January 1, 2024, and interim periods beginning January 1, 2025. The amendments must be applied retrospectively, and early adoption is permitted. We are currently evaluating the effects of adoption on our consolidated financial statements. In December 2023, the FASB issued ASU 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures, which requires disaggregation of rate reconciliation categories and income taxes paid by jurisdiction. ASU 2023-09 will be effective for us beginning January 1, 2025. The amendments may be applied prospectively or retrospectively, and early adoption is permitted. We are currently evaluating the effects of adoption on our consolidated financial statements. |
Cash, cash equivalents and mark
Cash, cash equivalents and marketable securities | 12 Months Ended |
Dec. 31, 2023 | |
Cash and Cash Equivalents [Abstract] | |
Cash, cash equivalents and marketable securities | Cash, cash equivalents and marketable securities Cash, cash equivalents and marketable securities consist of the following (in thousands): December 31, 2023 Amortized Cost Unrealized Gains Unrealized Losses Fair Value Cash and cash equivalents: Cash $ 220,583 $ — $ — $ 220,583 Money market funds 1,032,675 — — 1,032,675 Commercial paper 106,312 — (44) 106,268 Corporate bonds 859 — — 859 Certificates of deposit 1,551 — — 1,551 Total cash and cash equivalents 1,361,980 — (44) 1,361,936 Marketable securities: Corporate bonds 428,002 1,277 (1,322) 427,957 Commercial paper 200,963 212 (30) 201,145 U.S. treasury securities 336,721 251 (616) 336,356 Certificates of deposit 132,314 152 (9) 132,457 Non-U.S. government and supranational bonds 9,101 1 (119) 8,983 U.S. agency bonds 42,324 3 (77) 42,250 Total marketable securities 1,149,425 1,896 (2,173) 1,149,148 Total $ 2,511,405 $ 1,896 $ (2,217) $ 2,511,084 December 31, 2022 Amortized Cost Unrealized Gains Unrealized Losses Fair Value Cash and cash equivalents: Cash $ 474,365 $ — $ — $ 474,365 Money market funds 1,017,191 — — 1,017,191 Commercial paper 111,996 — (21) 111,975 Corporate bonds 1,542 — — 1,542 U.S. treasury securities 5,988 2 — 5,990 Total cash and cash equivalents 1,611,082 2 (21) 1,611,063 Marketable securities: Corporate bonds 370,445 172 (7,542) 363,075 Commercial paper 241,407 71 (286) 241,192 U.S. treasury securities 244,056 33 (1,173) 242,916 Certificates of deposit 158,607 60 (421) 158,246 Municipal securities 28,029 4 (584) 27,449 Non-U.S. government and supranational bonds 23,228 — (629) 22,599 U.S. agency bonds 31,695 40 (48) 31,687 Total marketable securities 1,097,467 380 (10,683) 1,087,164 Total $ 2,708,549 $ 382 $ (10,704) $ 2,698,227 Our allowance for credit losses for our marketable securities was not material as of December 31, 2023 and 2022. The fair value of our marketable securities by contractual maturity is as follows (in thousands): December 31, 2023 Due in one year or less $ 835,925 Due after one to five years 313,223 Total $ 1,149,148 Net realized gains and losses from sales of available-for-sale securities were not material for any period presented. |
Fair value of financial instrum
Fair value of financial instruments | 12 Months Ended |
Dec. 31, 2023 | |
Fair Value Disclosures [Abstract] | |
Fair value of financial instruments | Fair value of financial instruments The fair values of the financial instruments we measure at fair value on a recurring basis are as follows (in thousands): December 31, 2023 Level 1 Level 2 Level 3 Total Cash equivalents: Money market funds $ 1,032,675 $ — $ — $ 1,032,675 Commercial paper — 106,268 — 106,268 Certificates of deposit — 1,551 — 1,551 Corporate bonds — 859 — 859 Marketable securities: Corporate bonds — 427,957 — 427,957 Commercial paper — 201,145 — 201,145 U.S. treasury securities 336,356 — — 336,356 Certificates of deposit — 132,457 — 132,457 Non-U.S. government and supranational bonds — 8,983 — 8,983 U.S. agency bonds — 42,250 — 42,250 Prepaid expenses and other current assets: Certificates of deposit — 2,542 — 2,542 Restricted cash: Certificates of deposit $ — $ 4,054 $ — $ 4,054 December 31, 2022 Level 1 Level 2 Level 3 Total Cash equivalents: Money market funds $ 1,017,191 $ — $ — $ 1,017,191 Commercial paper — 111,975 — 111,975 U.S. treasury securities 5,990 — — 5,990 Corporate bonds — 1,542 — 1,542 Marketable securities: Corporate bonds — 363,075 — 363,075 Commercial paper — 241,192 — 241,192 U.S. treasury securities 242,916 — — 242,916 Certificates of deposit — 158,246 — 158,246 Municipal securities — 27,449 — 27,449 Non-U.S. government and supranational bonds — 22,599 — 22,599 U.S. agency bonds — 31,687 — 31,687 Prepaid expenses and other current assets: Certificates of deposit — 1,067 — 1,067 Restricted cash: Certificates of deposit $ — $ 5,530 $ — $ 5,530 |
Other balance sheet components
Other balance sheet components | 12 Months Ended |
Dec. 31, 2023 | |
Other Balance Sheet Components [Abstract] | |
Other balance sheet components | Other balance sheet components Property and equipment, net Property and equipment, net consists of the following (in thousands): December 31, 2023 2022 Leasehold improvements $ 64,326 $ 104,557 Furniture and fixtures 21,077 30,882 Computer and network equipment 26,603 32,845 Total property and equipment 112,006 168,284 Less: accumulated depreciation (90,116) (116,291) Construction in progress 10,335 7,582 Property and equipment, net $ 32,225 $ 59,575 Depreciation expense was $14.1 million, $21.6 million and $26.2 million for the years ended December 31, 2023, 2022 and 2021, respectively. Accrued expenses and other current liabilities Accrued expenses and other current liabilities consists of the following (in thousands): December 31, 2023 2022 Accrued hosting expenses $ 53,262 $ 53,380 Accrued compensation 48,924 48,146 Operating lease liabilities 35,666 50,274 Other accrued expenses 100,180 140,811 Accrued expenses and other current liabilities $ 238,032 $ 292,611 |
Acquisition
Acquisition | 12 Months Ended |
Dec. 31, 2023 | |
Business Combination and Asset Acquisition [Abstract] | |
Acquisition | Acquisition On June 10, 2022, we acquired all outstanding shares of The Yes Platform, Inc. (“The Yes”), an AI powered shopping platform for fashion. We believed the acquisition of The Yes would help accelerate our vision for Pinterest to be the home of taste-driven shopping. The total purchase consideration was $87.6 million in cash. Of this, we attributed $15.0 million to customer relationships, $13.6 million to developed technology, and $60.0 million to goodwill. Goodwill represents the synergies we expect to realize from the acquisition and the assembled workforce and is not deductible for tax purposes. We included the results of The Yes’s operations in our consolidated financial statements beginning on the acquisition date. The acquisition did not have a material impact on our consolidated financial statements so we have not presented historical and pro forma disclosures. In the fourth quarter of 2022, we recorded impairment charges of $9.4 million related to the customer relationships and developed technology. Refer to Note 6 for detail. |
Goodwill and intangible assets,
Goodwill and intangible assets, net | 12 Months Ended |
Dec. 31, 2023 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and intangible assets, net | Goodwill and intangible assets, net Goodwill was unchanged for the year ended December 31, 2023 and increased by $60.0 million for the year ended December 31, 2022, due to our acquisition of The Yes. Intangible assets, net consists of the following (in thousands): December 31, 2023 Gross Carrying Amount Accumulated Amortization Net Carrying Amount Weighted-Average Useful Life (1) Acquired technology, patents and other intangibles $ 39,907 $ (24,246) $ 15,661 4.9 years Customer relationships 17,700 (16,126) 1,574 1.6 years Total intangible assets, net $ 57,607 $ (40,372) $ 17,235 December 31, 2022 Gross Carrying Amount Accumulated Amortization Net Carrying Amount Weighted-Average Useful Life (1) Acquired technology, patents and other intangibles $ 39,907 $ (17,427) $ 22,480 4.9 years Customer relationships 17,700 (15,585) 2,115 1.6 years Total intangible assets, net $ 57,607 $ (33,012) $ 24,595 (1) Based on the weighted-average useful life established as of acquisition date. Amortization expense was $7.4 million , $24.9 million, and $1.3 million for the years ended December 31, 2023, 2022 and 2021, respectively. During the fourth quarter of 2022, we evaluated the acquired intangible assets from The Yes for impairment due to the departure of certain key employees. We concluded that the fair values of the customer relationships and developed technology were impaired and recorded impairment charges of $6.3 million and $3.1 million to sales and marketing and cost of revenue, respectively. Estimated future amortization expense as of December 31, 2023, is as follows (in thousands): Intangible Asset Amortization 2024 $ 7,359 2025 5,464 2026 3,424 2027 476 2028 434 Thereafter 78 Total $ 17,235 |
Commitments and contingencies
Commitments and contingencies | 12 Months Ended |
Dec. 31, 2023 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and contingencies | Commitments and contingencies As of December 31, 2023, our non-cancelable contractual commitments are as follows (in thousands): Purchase Commitments Operating Leases Total Commitments 2024 $ — $ 42,906 $ 42,906 2025 — 33,197 33,197 2026 — 31,542 31,542 2027 — 27,919 27,919 2028 — 22,172 22,172 Thereafter 1,754,553 83,233 1,837,786 Total $ 1,754,553 $ 240,969 $ 1,995,522 Purchase commitments In April 2021, we entered into a new private pricing addendum with AWS, which governs our use of cloud computing infrastructure provided by AWS. Under the new pricing addendum, we are required to purchase at least $3,250.0 million of cloud services from AWS through April 2029. If we fail to do so, we are required to pay the difference between the amount we spend and the required commitment amount. As of December 31, 2023, our remaining contractual commitment i s $1,754.6 million. W e expect to meet our remaining commitment. Legal matters We are involved in various lawsuits, claims and proceedings that arise in the ordinary course of business, including those described below. While the results of legal matters are inherently uncertain, we do not believe there is a reasonable possibility that the ultimate resolution of these matters, either individually or in aggregate, will have a material adverse effect on our business, financial position, results of operations or cash flows. Revolving credit facility In October 2022, we replaced the $500.0 million revolving credit facility entered into in November 2018 with an amended and restated five-year $400.0 million revolving credit facility (the “2022 revolving credit facility”) that contained an accordion option which, if exercised, would allow us to increase the aggregate commitments by up to $405.0 million provided we are able to secure additional lender commitments and satisfy certain other conditions. In October 2023, we amended the 2022 revolving credit facility to increase our aggregate commitment to $500.0 million and reduce our accordion option from $405.0 million to $305.0 million. Interest on any borrowings under the 2022 revolving credit facility accrues at either an adjusted term SOFR plus 0.10% and a margin of 1.50% or at an alternative base rate plus a margin of 0.50%, at our election, and we are required to pay an annual commitment fee that accrues at 0.15% per annum on the unused portion of the aggregate commitments under the 2022 revolving credit facility. The 2022 revolving credit facility also allows us to issue letters of credit, which reduce the amount we can borrow. We are required to pay a fee that accrues at 0.125% per annum on the average aggregate daily maximum amount available to be drawn under any outstanding letters of credit. The 2022 revolving credit facility contains customary conditions to borrowing, events of default and covenants, including covenants that restrict our ability to incur indebtedness, grant liens, make distributions to holders of our stock or the stock of our subsidiaries, make investments or engage in transactions with our affiliates. The 2022 revolving credit facility also contains a financial maintenance covenant: a maximum net leverage ratio of consolidated debt to consolidated EBITDA no greater than 3.50 to 1.00, subject to an increase up to 4.00 to 1.00 for a certain period following an acquisition. The obligations under the 2022 revolving credit facility are secured by liens on substantially all of our domestic assets, including certain domestic intellectual property assets. Our total borrowing capacity under the revolving credit facility is $500.0 million as of December 31, 2023. We have not issued any letters of credit and are in compliance with all covenants under the 2022 revolving credit facility as of December 31, 2023. |
Leases
Leases | 12 Months Ended |
Dec. 31, 2023 | |
Leases [Abstract] | |
Leases | Leases We have entered into various non-cancelable office space operating leases with original lease periods expiring between 2024 and 2035. These do not contain material variable rent payments, residual value guarantees, covenants or other restrictions. Operating lease costs for the years ended December 31, 2023, 2022 and 2021, are as follows (in thousands): Year Ended December 31, 2023 2022 2021 Lease cost: Operating lease cost (1) $ 51,044 $ 66,022 $ 53,691 Short-term lease cost 759 2,809 1,434 Total $ 51,803 $ 68,831 $ 55,125 (1) The decrease in operating lease cost for the year ended December 31, 2023 compared to the year ended December 31, 2022 is primarily due to office space reductions. Refer to Note 13, "Restructuring" for further information. The weighted-average remaining term of our operating leases was 7.2 years and 6.8 years, and the weighted-average discount rate used to measure the present value of our operating lease liabilities was 5.1% and 4.1% as of December 31, 2023 and 2022, respectively. Maturities of our operating lease liabilities, which do not include short-term leases, as of December 31, 2023, are as follows (in thousands): Operating Leases 2024 $ 42,906 2025 33,197 2026 31,542 2027 27,919 2028 22,172 Thereafter 83,233 Total lease payments 240,969 Less imputed interest (44,687) Total operating lease liabilities $ 196,282 Cash payments included in the measurement of our operating lease liabilities were $61.8 million, $64.0 million and $59.0 million for the years ended December 31, 2023, 2022 and 2021, respectively. As of December 31, 2023, operating leases that have not yet commenced were not material and are excluded from the table above. |
Stockholder's Equity
Stockholder's Equity | 12 Months Ended |
Dec. 31, 2023 | |
Share-Based Payment Arrangement [Abstract] | |
Stockholder's Equity | Stockholder's Equity Equity incentive plan In June 2009, our board of directors adopted and approved our 2009 Plan, which provides for the issuance of stock options, RSAs and RSUs to qualified employees, directors and consultants. Stock options granted under our 2009 Plan have a maximum life of 10 years and an exercise price not less than 100% of the fair market value of our common stock on the date of grant. RSUs granted under our 2009 Plan have a maximum life of seven years. No shares of our common stock were reserved for future issuance under our 2009 Plan as of December 31, 2023. Our 2019 Plan became effective upon closing of our IPO and succeeds our 2009 Plan. Our 2019 Plan provides for the issuance of stock options, RSAs, RSUs and other equity- or cash-based awards to qualified employees, directors and consultants. Stock options granted under our 2019 Plan have a maximum life of 10 years and an exercise price not less than 100% of the fair market value of our common stock on the date of grant. 145,335,295 shares of our Class A common stock were reserved for future issuance under our 2019 Plan as of December 31, 2023. The number of shares of our Class A common stock available for issuance under the 2019 Plan will be increased by the number of shares of our Class B common stock subject to awards outstanding under our 2009 Plan that would, but for the terms of the 2019 Plan, have returned to the share reserves of the 2009 Plan pursuant to the terms of such awards, including as the result of forfeiture, repurchase, expiration or retention by us in order to satisfy an award’s exercise price or tax withholding obligations. In addition, the number of shares of our Class A common stock reserved for issuance under our 2019 Plan will automatically increase on the first day of each fiscal year through and including January 1, 2029, in an amount equal to 5% of the total number of shares of our Class A common stock and our Class B common stock outstanding on the last day of the calendar month before the date of each automatic increase, or a lesser number of shares determined by our board of directors. Stock option activity Stock option activity during the year ended December 31, 2023, was as follows (in thousands, except per share amounts): Stock Options Outstanding Shares Weighted-Average Exercise Price Weighted-Average Remaining Contractual Term Aggregate Intrinsic Value (1) (in years) Outstanding as of December 31, 2022 15,799 $ 13.25 6.1 $ 174,165 Exercised (2,756) 3.08 Outstanding as of December 31, 2023 13,043 $ 15.41 6.1 $ 282,197 Exercisable as of December 31, 2023 7,164 $ 11.67 4.2 $ 181,762 (1) We calculate intrinsic value based on the difference between the exercise price of in-the-money-stock options and the fair value of our common stock as of the respective balance sheet date. The total grant-date fair value of stock options vested during the years ended December 31, 2023, 2022 and 2021 was $28.4 million, $9.5 million and $3.2 million, respectively. The aggregate intrinsic value of stock options exercised during the years ended December 31, 2023, 2022 and 2021 was $70.2 million, $180.2 million and $511.4 million, respectively. Restricted stock unit and restricted stock award activity RSU and RSA activity during the year ended December 31, 2023, was as follows (in thousands, except per share amounts): Restricted Stock Units and Restricted Stock Awards Outstanding Shares Weighted Average Grant Date Fair Value Outstanding as of December 31, 2022 54,518 $ 25.46 Granted (1) 26,878 25.35 Released (27,552) 25.11 Forfeited (1) (8,745) 24.35 Outstanding as of December 31, 2023 45,099 $ 25.83 (1) Includes the effects of awards modified during the year ended December 31, 2023. Share-based compensation Share-based compensation expense during the years ended December 31, 2023, 2022 and 2021, was as follows (in thousands): Year Ended December 31, 2023 2022 2021 Cost of revenue $ 11,117 $ 7,629 $ 7,438 Research and development 422,964 324,161 309,715 Sales and marketing 96,798 99,467 52,691 General and administrative 116,981 65,866 45,538 Total share-based compensation $ 647,860 $ 497,123 $ 415,382 As of December 31, 2023, we had $1,128.1 million of unrecognized share-based compensation expense, which we expect to recognize over a weighted-average period of 2.2 years. Fair value of stock options We measure stock options based on their estimated grant date fair values, which we determine using the Black-Scholes option-pricing model, and we record the resulting expense in our consolidated statements of operations over the requisite service period, which is generally four years. Stock options granted during the years ended December 31, 2023 and 2021 were not material. The weighted-average grant-date fair value of stock options granted during the year ended December 31, 2022 was $11.79, which we estimated using the Black ‑ Scholes option-pricing model with the following assumptions: Year Ended December 31, 2022 Expected term (in years) 6.1 Risk-free interest rate 3.2 % Expected volatility 61.1 % Dividend yield — % The key inputs we used in the Black-Scholes model are: • Expected term – The expected term represents the period we expect our share-based awards to be outstanding, which is also the period we used to measure risk-free interest rates and expected volatility. We estimated the expected term using the simplified method as we do not have sufficient historical stock option exercise data. • Risk-free interest rate – We estimated the risk-free interest rate based on zero-coupon U.S. Treasury notes. • Expected volatility – We estimated expected volatility based on a combination of our historical volatility and that of comparable publicly-traded companies. • Dividend yield – We applied a dividend yield of zero because we have never paid or declared dividends, and we have no plan to do so in the foreseeable future. Stock Repurchase On February 2, 2023, our board of directors authorized a stock repurchase program of up to $500.0 million of our Class A common stock, which we completed in the second quarter of 2023. Under the program, we repurchased and retired 21,215,663 shares of our Class A common stock for an aggregate purchase price of $500.0 million at an average price per share of $23.57. On September 16, 2023, our board of directors authorized a new stock repurchase program of up to $1.0 billion of our Class A common stock. Under the stock repurchase program, we are authorized to repurchase, from time-to-time, shares of our Class A common stock through open market purchases, in privately negotiated transactions or in such other manner as permitted by securities law and as determined by management at such time and in such amounts as management may decide. The program does not obligate us to repurchase any specific number of shares and may be modified, suspended or discontinued at any time. The timing, manner, price and amount of any repurchases are determined by management in its discretion and depend on a variety of factors, including legal requirements, price and economic and market conditions. As of December 31, 2023, $1.0 billion remains available for repurchases under the stock repurchase program. |
Net income (loss) per share
Net income (loss) per share | 12 Months Ended |
Dec. 31, 2023 | |
Earnings Per Share [Abstract] | |
Net income (loss) per share | Net income (loss) per share We present net income (loss) per share using the two-class method required for multiple classes of common stock. Holders of our Class A and Class B common stock have identical rights except with respect to voting, conversion and transfer rights and therefore share equally in our net income or losses. We calculate basic net income (loss) per share by dividing net income (loss) by the weighted-average number of shares of common stock outstanding during the period. Diluted net income (loss) per share gives effect to all potential shares of common stock, including stock options, RSAs and RSUs to the extent these are dilutive. The calculation of diluted net income (loss) of Class A common stock assumes the conversion of our Class B common stock to Class A common stock, while the diluted net income (loss) of Class B common stock does not assume the conversion of those shares to Class A common stock. We calculated basic and diluted net income (loss) per share as follows (in thousands, except per share amounts): Year Ended December 31, 2023 2022 2021 Class A Class B Class A Class B Class A Class B Basic net income (loss) per share: Numerator: Net income (loss) $ (30,937) $ (4,673) $ (83,110) $ (12,937) $ 274,699 $ 41,739 Denominator: Basic weighted-average shares used in computing net income (loss) per share 586,109 88,532 576,061 89,671 555,608 84,422 Basic net income (loss) per share $ (0.05) $ (0.05) $ (0.14) $ (0.14) $ 0.49 $ 0.49 Diluted net income (loss) per share: Numerator: Net income (loss) $ (30,937) $ (4,673) $ (83,110) $ (12,937) $ 274,699 $ 41,739 Reallocation of net income as a result of conversion of Class B to Class A common stock — — — — 41,739 — Reallocation of net income to Class B common stock — — — — — (3,115) Diluted net income (loss) $ (30,937) $ (4,673) $ (83,110) $ (12,937) $ 316,438 $ 38,624 Denominator: Basic weighted-average shares used in computing net income (loss) per share 586,109 88,532 576,061 89,671 555,608 84,422 Conversion of Class B to Class A common stock — — — — 84,422 — Weighted average effect of dilutive potential common stock — — — — 51,621 — Diluted weighted-average shares used in computing net income (loss) per share 586,109 88,532 576,061 89,671 691,651 84,422 Diluted net income (loss) per share $ (0.05) $ (0.05) $ (0.14) $ (0.14) $ 0.46 $ 0.46 Basic net loss per share is the same as diluted net loss per share for the periods we reported net losses. We excluded the following weighted-average potential shares of common stock from our calculation of diluted net income (loss) per share because these would be anti-dilutive (in thousands): Year Ended December 31, 2023 2022 2021 Outstanding stock options 14,463 17,405 — Unvested restricted stock units and restricted stock awards 53,228 52,256 3,271 Total 67,691 69,661 3,271 |
Income taxes
Income taxes | 12 Months Ended |
Dec. 31, 2023 | |
Income Tax Disclosure [Abstract] | |
Income taxes | Income taxes The components of income (loss) before provision for income taxes are as follows (in thousands): Year Ended December 31, 2023 2022 2021 United States $ 20,713 $ 29,108 $ 331,447 Foreign (37,153) (115,052) (10,476) Income (loss) before provision for income taxes $ (16,440) $ (85,944) $ 320,971 Provision for income taxes consists of the following (in thousands): Year Ended December 31, 2023 2022 2021 Current: Federal $ 7,833 $ 1,681 $ — State 6,698 7,385 2,303 Foreign 6,477 4,381 2,957 Total current tax expense 21,008 13,447 5,260 Deferred: Federal 6 (1,861) 6 State 3 (356) 6 Foreign (1,847) (1,127) (739) Total deferred tax expense (benefit) (1,838) (3,344) (727) Provision for income taxes $ 19,170 $ 10,103 $ 4,533 The difference between income taxes computed at the statutory federal income tax rate and the provision for income taxes is attributable to the following (in thousands): Year Ended December 31, 2023 2022 2021 Tax at U.S. statutory rate $ (3,453) $ (18,048) $ 67,404 State income taxes, net of benefit 5,111 5,502 2,307 Foreign operations 12,018 26,985 4,448 Permanent book/tax differences 6,809 6,598 409 Share-based compensation (18,925) (20,663) (269,009) Change in valuation allowance 111,497 62,048 278,761 Tax credits (93,887) (52,319) (79,787) Provision for income taxes $ 19,170 $ 10,103 $ 4,533 The primary difference between our effective tax rate and the federal statutory rate is the full valuation allowance we have established on our federal, state and foreign net operating losses and credits and for the years ended December 31, 2023 and December 31, 2022 includes the effects of the capitalization and amortization of research and development expenses as required by the 2017 Tax Cuts and Jobs Act. Significant components of our deferred tax assets and liabilities are as follows (in thousands): December 31, 2023 2022 Deferred tax assets: Net operating loss carryforwards $ 751,273 $ 900,200 Research tax credits 570,061 473,248 Reserves, accruals, and other 26,855 31,502 Lease obligation 44,676 56,185 Share-based compensation 30,146 40,976 Research capitalization and amortization 411,113 208,373 Total deferred tax assets 1,834,124 1,710,484 Less: valuation allowance (1,821,027) (1,660,609) Deferred tax assets, net of valuation allowance 13,097 49,875 Deferred tax liabilities: Depreciation and amortization (7,467) (44,790) Prepaid expenses (2,682) (4,190) Total deferred tax liabilities (10,149) (48,980) Deferred tax assets (liabilities) $ 2,948 $ 895 Due to our history of losses, we believe it is more likely than not that our U.S. and Irish deferred tax assets will not be realized as of December 31, 2023. Accordingly, we have established a full valuation allowance on our U.S. and Irish deferred tax assets. Our valuation allowance increased by $160.4 million and $120.7 million during the years ended December 31, 2023 and 2022, respectively , primarily due to U.S. federal and state tax credits and the effects of the capitalization and amortization of research and development expenses as required by the 2017 Tax Cuts and Job Act, offset by the utilization of net operating loss. As of December 31, 2023, we had federal, California and other state net operating loss carryforwards of $2,914.6 million, $555.0 million and $1,387.5 million, respectively. Our federal carryforwards do not expire. If not utilized, our California and other state carryforwards will begin to expire in 2028 and 2026, respectively. Utilization of our net operating loss carryforwards may be subject to annual limitations due to the ownership change limitations provided by Section 382 of the Internal Revenue Code and similar state provisions. Our net operating loss carryforwards could expire before utilization if subject to annual limitations. As of December 31, 2023, we had $208.5 million and $10.2 million of Irish and Other Foreign net operating loss carryforwards, respectively that can be carried forward indefinitely. As of December 31, 2023, we had federal and California research and development credit carryforwards of $491.4 million and $365.7 million, respectively. If not utilized, our federal carryforwards will begin to expire in 2037. Our California carryforwards do not expire. Changes in gross unrecognized tax benefits were as follows (in thousands): Gross Unrecognized Tax Benefits Balance as of December 31, 2021 $ 205,059 Increases for tax positions of prior years — Decreases for tax positions of prior years (3,347) Increases for tax positions of current year 38,226 Balance as of December 31, 2022 $ 239,938 Increases for tax positions of prior years 3,736 Decreases for tax positions of prior years (119) Increases for tax positions of current year 44,377 Audit Settlement (37,027) Balance as of December 31, 2023 $ 250,905 Recognizing the $250.9 million of gross unrecognized tax benefits we had as of December 31, 2023 would affect our effective tax rate by $5.3 million. The remaining $245.6 million of gross unrecognized tax benefits would be offset by the reversal of related deferred tax assets, which primarily are subject to a full valuation allowance. We do not expect our gross unrecognized tax benefits to change significantly within the next 12 months. We recognize interest and penalties related to uncertain tax positions in provision for income taxes. Accrued interest and penalties are not material as of December 31, 2023 and 2022. We are subject to taxation in the U.S. and various other state and foreign jurisdictions. As we have net operating loss carryforwards for U.S. federal and state jurisdictions, the statute of limitations is ope |
Geographical information
Geographical information | 12 Months Ended |
Dec. 31, 2023 | |
Segment Reporting [Abstract] | |
Geographical information | Geographical information Revenue disaggregated by geography based on our customers’ billing addresses is as follows (in thousands): Year Ended December 31, 2023 2022 2021 U.S. and Canada (1) $ 2,350,188 $ 2,264,640 $ 2,109,089 Europe (2) 501,290 410,516 384,657 Rest of World 203,593 127,418 84,281 Total revenue $ 3,055,071 $ 2,802,574 $ 2,578,027 (1) United States revenue w as $2,226.3 million, $2,144.3 million and $2,003.6 million for the years ended December 31, 2023, 2022 and 2021, respectively. No individual country other than the United States exceeded 10% of our total revenue for any period presented. (2) Europe includes Russia and Turkey. Property and equipment, net and operating lease right-of-use assets by geography is as follows (in thousands): December 31, 2023 2022 United States $ 66,335 $ 205,374 Ireland 18,658 4,950 Mexico 12,835 11,627 International (1) 26,516 43,877 Total property and equipment, net and operating lease right-of-use assets $ 124,344 $ 265,828 (1) Other than the United States, Ireland and Mexico, no other country exceeded 10% of our total property and equipment, net and operating lease right-of-use assets for any period presented. |
Restructuring
Restructuring | 12 Months Ended |
Dec. 31, 2023 | |
Restructuring and Related Activities [Abstract] | |
Restructuring | Restructuring In March 2023, we initiated a restructuring plan intended to support our corporate strategy, improve efficiency and position our business in light of the ongoing macroeconomic environment (the “Plan”). As part of the Plan, we announced a workforce reduction of approximately 4%. We also ceased occupying our former headquarters at 505 Brannan Street in San Francisco, which we are actively marketing for sublease, and abandoned certain other leased office spaces in order to adjust our office space footprint to better align with the needs of our flexible work model. As a result, we recorded impairment and abandonment charges for the related operating lease right-of-use assets and leasehold improvements. The Plan was completed in the third quarter of 2023. Restructuring charges for the year ended December 31, 2023 were as follows (in thousands): Office Space Reductions (1) Severance and Other Personnel Costs Total Cost of revenue $ — $ — $ — Research and development — 4,696 4,696 Sales and marketing — 2,749 2,749 General and administrative 117,315 2,122 119,437 Total $ 117,315 $ 9,567 $ 126,882 (1) Office space reductions are non-cash and include impairment charges and accelerated expense related to operating lease right-of-use assets and leasehold improvements. We estimated the fair value of the impaired assets using a discounted cash flow model based on market participant assumptions. |
Pay vs Performance Disclosure
Pay vs Performance Disclosure - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Pay vs Performance Disclosure | |||
Net income (loss) | $ (35,610) | $ (96,047) | $ 316,438 |
Insider Trading Arrangements
Insider Trading Arrangements | 3 Months Ended | 12 Months Ended |
Dec. 31, 2023 shares | Dec. 31, 2023 shares | |
Trading Arrangements, by Individual | ||
Non-Rule 10b5-1 Arrangement Adopted | false | |
Rule 10b5-1 Arrangement Terminated | false | |
Non-Rule 10b5-1 Arrangement Terminated | false | |
Julia Brau Donnelly [Member] | ||
Trading Arrangements, by Individual | ||
Material Terms of Trading Arrangement | On December 11, 2023, Julia Brau Donnelly , Chief Financial Officer , adopted a trading plan intended to satisfy Rule 10b5-1(c) under the Exchange Act (“Rule 10b5-1(c)”) to sell, between March 11, 2024 and November 15, 2024 (a) up to 65,972 shares of our Class A common stock, and (b) the net shares of our Class A common stock to be issued to Ms. Donnelly after the satisfaction of applicable taxes following the vesting and settlement of 196,414 RSUs. | |
Name | Julia Brau Donnelly | |
Title | Chief Financial Officer | |
Rule 10b5-1 Arrangement Adopted | true | |
Adoption Date | On December 11, 2023 | |
Arrangement Duration | 249 days | |
Julia Brau Donnelly Trading Arrangement, Class A Common Stock [Member] | Julia Brau Donnelly [Member] | ||
Trading Arrangements, by Individual | ||
Aggregate Available | 65,972 | 65,972 |
Julia Brau Donnelly Trading Arrangement, RSUs [Member] | Julia Brau Donnelly [Member] | ||
Trading Arrangements, by Individual | ||
Aggregate Available | 196,414 | 196,414 |
Description of business and s_2
Description of business and summary of significant accounting policies (Policies) | 12 Months Ended |
Dec. 31, 2023 | |
Accounting Policies [Abstract] | |
Basis of presentation | Basis of presentation and consolidation |
Consolidation | Basis of presentation and consolidation |
Reclassifications | Reclassifications We have reclassified certain amounts in prior periods to conform with current presentation. |
Use of estimates | Use of estimates Preparing our consolidated financial statements in conformity with GAAP requires us to make estimates and judgments that affect amounts reported in the consolidated financial statements and accompanying notes. We base these estimates and judgments on historical experience and various other assumptions that we consider reasonable. GAAP requires us to make estimates and assumptions in several areas, including the fair values of financial instruments, assets acquired and liabilities assumed through business combinations, share-based awards, and contingencies as well as the collectability of our accounts receivable, the useful lives of our intangible assets and property and equipment, the incremental borrowing rate we use to determine our operating lease liabilities, and revenue recognition, among others. Actual results could differ materially from these estimates and judgments. |
Segments | Segments |
Revenue recognition and Cost of revenue | Revenue recognition We generate revenue by delivering ads on our website and mobile application. We recognize revenue only after transferring control of promised goods or services to customers, which occurs when a user clicks on an ad contracted on a cost per click ("CPC") basis, views an ad contracted on a cost per thousand impressions ("CPM") or cost per day ("CPD") basis or views a video ad contracted on a cost per view ("CPV") basis. We recognize revenue over the service period for ads contracted on a CPD basis, which do not contain minimum impression guarantees. We typically bill customers on a CPC, CPM, CPV, or CPD basis, and our payment terms vary by customer type and location. The term between billing and payment due dates is not significant. We recognize revenue only after satisfying our contractual performance obligations. We occasionally offer customers free ad inventory. When contracts with our customers contain multiple performance obligations, we allocate the overall transaction price, which is the amount of consideration to which we expect to be entitled in exchange for promised goods or services, to each of the distinct performance obligations based on their relative standalone selling prices. We generally determine standalone selling prices based on the effective price charged per contracted click, impression or view, and we do not disclose the value of unsatisfied performance obligations because the original expected duration of our contracts is generally less than one year. We record sales commissions in sales and marketing as incurred because we would amortize these over a period of less than one year. Cost of revenue Cost of revenue consists primarily of expenses associated with the delivery of our service, including the cost of hosting our website and mobile application. Cost of revenue also includes personnel-related expense, including salaries, benefits and share-based compensation for employees on our operations teams, payments associated with partner arrangements, credit card and other transaction processing fees, amortization of acquired intangible assets and allocated facilities and other supporting overhead costs. |
Share-based compensation | Share-based compensation Restricted stock units ("RSUs") granted under our 2009 Stock Plan (the "2009 Plan") are subject to both a service condition, which is typically satisfied over four years, and a performance condition, which was deemed satisfied upon the pricing of our initial public offering ("IPO"). We did not record any share-based compensation expense for our RSUs prior to our IPO because the performance condition had not yet been satisfied. Upon pricing our IPO, we recorded cumulative share-based compensation expense using the accelerated attribution method for those RSUs granted under our 2009 Plan for which the service condition had been satisfied at that date. We record the remaining unrecognized share-based compensation expense over the remainder of the requisite service period. RSUs, restricted stock awards ("RSAs"), and stock options granted under our 2019 Omnibus Incentive Plan (the "2019 Plan") are generally subject only to a service condition, which is typically satisfied over two We measure RSUs and RSAs based on the fair market value of our common stock on the grant date and stock options based on their estimated grant date fair values, which we determine using the Black-Scholes option-pricing model. We record the resulting expense in our consolidated statements of operations over the requisite service period, which is generally four years, and we account for forfeitures as they occur. |
Income taxes | Income taxes We account for income taxes using the asset and liability method. We recognize deferred tax assets and liabilities for temporary differences between the financial reporting and tax bases of assets and liabilities using the enacted statutory tax rates in effect for the years in which we expect the differences to reverse. We establish valuation allowances to reduce deferred tax assets to the amounts we believe it is more likely than not we will be able to realize. We recognize tax benefits from uncertain tax positions when we believe it is more likely than not that the tax position is sustainable on examination by tax authorities based on its technical merits. We recognize taxes on Global Intangible Low-Taxed Income as incurred. |
Advertising expenses | Advertising expenses |
Marketable securities | Marketable securities We invest in highly liquid corporate debt securities, U.S. treasury securities, asset-backed securities, U.S. government agency securities, municipal securities, non-U.S. government and supranational bonds and certificates of deposit. We classify marketable investments with stated maturities of ninety days or less from the date of purchase as cash equivalents and those with stated maturities greater than ninety days from the date of purchase as marketable securities. We classify our marketable securities as available-for-sale investments in our current assets because they are available for use to support current operations. We carry our marketable investments at fair value and record unrealized gains or losses, net of taxes, in accumulated other comprehensive income (loss) in stockholders’ equity. We determine realized gains and losses on the sale of marketable investments using a specific identification method and record these and any expected credit losses in other income (expense), net. |
Fair value measurements | Fair value measurements We account for certain assets and liabilities at fair value, which is the amount we believe market participants would be willing to receive to sell an asset or pay to transfer a liability in an orderly transaction. We categorize these assets and liabilities into the three levels below based on the degree to which the inputs we use to measure their fair values are observable in active markets. We use the most observable inputs available to us when measuring fair value. • Level 1: Observable inputs such as quoted prices for identical assets or liabilities in active markets • Level 2: Observable inputs such as quoted prices for similar assets or liabilities in active markets, quoted prices for identical assets or liabilities in inactive markets, or inputs that are derived principally from or corroborated by observable market data or other means • Level 3: Unobservable inputs that are supported by little or no market activity and are significant to the fair value of the assets or liabilities |
Accounts receivable, net of allowances | Accounts receivable, net of allowances We record accounts receivable at the original invoiced amount. We maintain an allowance for credit losses for any receivables we may be unable to collect. We estimate uncollectible receivables based on our receivables’ age, our customers’ credit quality and current economic conditions, among other factors that may affect our customers’ ability to pay. We also maintain an allowance for sales credits, which we determine based on historical credits issued to customers. We include the allowances for credit losses and sales credits in accounts receivable, net in the consolidated balance sheets. |
Property and equipment | We carry property and equipment at cost less accumulated depreciation and calculate depreciation using the straight-line method over our assets’ estimated useful lives, which are generally: Property and Equipment Useful Life Computer and network equipment 3 years Furniture and fixtures 4 years Leasehold improvements Lesser of estimated useful life or remaining lease term |
Leases and operating lease incremental borrowing rate | Leases and operating lease incremental borrowing rate We lease office space under operating leases with expiration dates through 2035. We determine whether an arrangement constitutes a lease at inception and record lease liabilities and right-of-use assets on our consolidated balance sheets at lease commencement. We measure lease liabilities based on the present value of the total lease payments not yet paid discounted based on the more readily determinable of the rate implicit in the lease or our incremental borrowing rate, which is the estimated rate we would be required to pay for a collateralized borrowing equal to the total lease payments over the term of the lease. We estimate our incremental borrowing rate based on an analysis of publicly traded debt securities of companies with credit and financial profiles similar to our own. We measure right-of-use assets based on the corresponding lease liability adjusted for (i) payments made to the lessor at or before the commencement date, (ii) initial direct costs we incur and (iii) tenant incentives under the lease. We begin recognizing rent expense when the lessor makes the underlying asset available to us, we do not assume renewals or early terminations unless we are reasonably certain to exercise these options at commencement and we do not allocate consideration between lease and non-lease components. For short-term leases, we record rent expense in our consolidated statements of operations on a straight-line basis over the lease term and record variable lease payments as incurred. |
Business combinations | B usiness combinations We include the results of operations of businesses that we acquire in our consolidated financial statements beginning on their respective acquisition dates. We allocate the fair value of the purchase consideration to the assets acquired and liabilities assumed based on their estimated fair values. When the fair value of the purchase consideration exceeds the fair values of the identifiable assets and liabilities acquired, we record the excess as goodwill. Our estimates of fair value are based on assumptions we believe to be reasonable but which are inherently uncertain and unpredictable, and as a result, actual results may differ from estimates. During the measurement period, which is one year from the acquisition date, we may record adjustments to the assets and liabilities acquired with the corresponding offset to goodwill. Any adjustments after the measurement period are reflected in our consolidated statements of operations. |
Long-lived assets, including goodwill and intangible assets | Long-lived assets, including goodwill and intangible assets We record definite-lived intangible assets at fair value less accumulated amortization. We calculate amortization using the straight-line method over the assets’ estimated useful lives of up to ten years. We review our property and equipment, operating lease right-of-use assets and intangible assets for impairment whenever events or circumstances indicate that an asset’s carrying value may not be recoverable. We measure recoverability by comparing an asset’s carrying value to the future undiscounted cash flows that we expect it to generate. If this test indicates that the asset’s carrying value is not recoverable, we record an impairment charge to reduce the asset’s carrying value to its fair value. We recorded $117.3 million of impairment and abandonment charges for operating lease right-of-use assets and leasehold improvements for the year ended December 31, 2023. Refer to Note 13, "Restructuring" for further information. In the fourth quarter of 2022, we recorded $9.4 million of impairment charges for acquired intangible assets. We did not record any other material property and equipment or intangible asset impairments during the periods presented. We review goodwill for impairment at least annually or more frequently if current circumstances or events indicate that the fair value of our single reporting unit may be less than its carrying value. We did not record any goodwill impairment during the periods presented. |
Website development costs | Website development costs We capitalize costs to develop our website and mobile application when preliminary development efforts are successfully completed, management has authorized and committed project funding, and it is probable that the project will be completed and the software will be used as intended. Due to the iterative process by which we perform upgrades and the relatively short duration of our development projects, development costs meeting our capitalization criteria were not material during the periods presented. |
Loss contingencies | Loss contingencies We are involved in various lawsuits, claims and proceedings that arise in the ordinary course of business. We record a liability for these when we believe it is probable that we have incurred a loss and can reasonably estimate the loss. We regularly evaluate current information to determine whether we should adjust a recorded liability or record a new one. |
Foreign currency | Foreign currency The functional currency of our international subsidiaries is generally their local currency. We translate these subsidiaries’ financial statements into U.S. dollars using month-end exchange rates for assets and liabilities and rates that approximate those in effect during the period for revenue and costs and expenses. We record translation gains and losses in accumulated other comprehensive loss in stockholders’ equity. We record foreign exchange gains and losses in other income (expense), net. Our net foreign exchange gains and losses were not material for the periods presented. |
Concentration of business risk | Concentration of business risk We have an agreement with Amazon Web Services (“AWS”) to provide the cloud computing infrastructure we use to host our website, mobile application and many of the internal tools we use to operate our business. We are currently required to maintain a substantial majority of our monthly usage of certain compute, storage, data transfer and other services on AWS. Any transition of the cloud services currently provided by AWS to another cloud services provider would be difficult to implement and would cause us to incur significant time and expense. |
Concentration of credit risk | Concentration of credit risk Financial instruments that may potentially expose us to concentrations of credit risk primarily consist of cash, cash equivalents, marketable securities and restricted cash. Our investment policy is meant to preserve capital and maintain liquidity. The policy limits our marketable investments to investment-grade securities and limits our credit exposure by limiting our concentration in any one corporate issuer or sector and by establishing a minimum credit rating for marketable investments we purchase. Although we deposit cash and marketable investments with multiple financial institutions, our deposits may exceed insurable limits. |
Credit losses on accounts receivable | Our accounts receivable are generally unsecured. We monitor our customers’ credit quality on an ongoing basis and maintain reserves for estimated credit losses. |
Recent Accounting Pronouncements Not Yet Adopted | Recent Accounting Pronouncements Not Yet Adopted In November 2023, the Financial Accounting Standards Board ("FASB") issued ASU 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures , which requires disclosure of incremental segment information on an annual and interim basis. ASU 2023-07 will be effective for our annual periods beginning January 1, 2024, and interim periods beginning January 1, 2025. The amendments must be applied retrospectively, and early adoption is permitted. We are currently evaluating the effects of adoption on our consolidated financial statements. In December 2023, the FASB issued ASU 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures, which requires disaggregation of rate reconciliation categories and income taxes paid by jurisdiction. ASU 2023-09 will be effective for us beginning January 1, 2025. The amendments may be applied prospectively or retrospectively, and early adoption is permitted. We are currently evaluating the effects of adoption on our consolidated financial statements. |
Description of business and s_3
Description of business and summary of significant accounting policies (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Accounting Policies [Abstract] | |
Summary of Estimated Useful Lives of Property and Equipment | We carry property and equipment at cost less accumulated depreciation and calculate depreciation using the straight-line method over our assets’ estimated useful lives, which are generally: Property and Equipment Useful Life Computer and network equipment 3 years Furniture and fixtures 4 years Leasehold improvements Lesser of estimated useful life or remaining lease term Property and equipment, net consists of the following (in thousands): December 31, 2023 2022 Leasehold improvements $ 64,326 $ 104,557 Furniture and fixtures 21,077 30,882 Computer and network equipment 26,603 32,845 Total property and equipment 112,006 168,284 Less: accumulated depreciation (90,116) (116,291) Construction in progress 10,335 7,582 Property and equipment, net $ 32,225 $ 59,575 |
Cash, cash equivalents and ma_2
Cash, cash equivalents and marketable securities (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Cash and Cash Equivalents [Abstract] | |
Summary of Composition of Cash, Cash Equivalents and Marketable Securities | Cash, cash equivalents and marketable securities consist of the following (in thousands): December 31, 2023 Amortized Cost Unrealized Gains Unrealized Losses Fair Value Cash and cash equivalents: Cash $ 220,583 $ — $ — $ 220,583 Money market funds 1,032,675 — — 1,032,675 Commercial paper 106,312 — (44) 106,268 Corporate bonds 859 — — 859 Certificates of deposit 1,551 — — 1,551 Total cash and cash equivalents 1,361,980 — (44) 1,361,936 Marketable securities: Corporate bonds 428,002 1,277 (1,322) 427,957 Commercial paper 200,963 212 (30) 201,145 U.S. treasury securities 336,721 251 (616) 336,356 Certificates of deposit 132,314 152 (9) 132,457 Non-U.S. government and supranational bonds 9,101 1 (119) 8,983 U.S. agency bonds 42,324 3 (77) 42,250 Total marketable securities 1,149,425 1,896 (2,173) 1,149,148 Total $ 2,511,405 $ 1,896 $ (2,217) $ 2,511,084 December 31, 2022 Amortized Cost Unrealized Gains Unrealized Losses Fair Value Cash and cash equivalents: Cash $ 474,365 $ — $ — $ 474,365 Money market funds 1,017,191 — — 1,017,191 Commercial paper 111,996 — (21) 111,975 Corporate bonds 1,542 — — 1,542 U.S. treasury securities 5,988 2 — 5,990 Total cash and cash equivalents 1,611,082 2 (21) 1,611,063 Marketable securities: Corporate bonds 370,445 172 (7,542) 363,075 Commercial paper 241,407 71 (286) 241,192 U.S. treasury securities 244,056 33 (1,173) 242,916 Certificates of deposit 158,607 60 (421) 158,246 Municipal securities 28,029 4 (584) 27,449 Non-U.S. government and supranational bonds 23,228 — (629) 22,599 U.S. agency bonds 31,695 40 (48) 31,687 Total marketable securities 1,097,467 380 (10,683) 1,087,164 Total $ 2,708,549 $ 382 $ (10,704) $ 2,698,227 |
Summary of Fair Value of Marketable Securities by Contractual Maturity | The fair value of our marketable securities by contractual maturity is as follows (in thousands): December 31, 2023 Due in one year or less $ 835,925 Due after one to five years 313,223 Total $ 1,149,148 |
Fair value of financial instr_2
Fair value of financial instruments (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Fair Value Disclosures [Abstract] | |
Summary of Fair Values of Financial Instruments Measured on a Recurring Basis | The fair values of the financial instruments we measure at fair value on a recurring basis are as follows (in thousands): December 31, 2023 Level 1 Level 2 Level 3 Total Cash equivalents: Money market funds $ 1,032,675 $ — $ — $ 1,032,675 Commercial paper — 106,268 — 106,268 Certificates of deposit — 1,551 — 1,551 Corporate bonds — 859 — 859 Marketable securities: Corporate bonds — 427,957 — 427,957 Commercial paper — 201,145 — 201,145 U.S. treasury securities 336,356 — — 336,356 Certificates of deposit — 132,457 — 132,457 Non-U.S. government and supranational bonds — 8,983 — 8,983 U.S. agency bonds — 42,250 — 42,250 Prepaid expenses and other current assets: Certificates of deposit — 2,542 — 2,542 Restricted cash: Certificates of deposit $ — $ 4,054 $ — $ 4,054 December 31, 2022 Level 1 Level 2 Level 3 Total Cash equivalents: Money market funds $ 1,017,191 $ — $ — $ 1,017,191 Commercial paper — 111,975 — 111,975 U.S. treasury securities 5,990 — — 5,990 Corporate bonds — 1,542 — 1,542 Marketable securities: Corporate bonds — 363,075 — 363,075 Commercial paper — 241,192 — 241,192 U.S. treasury securities 242,916 — — 242,916 Certificates of deposit — 158,246 — 158,246 Municipal securities — 27,449 — 27,449 Non-U.S. government and supranational bonds — 22,599 — 22,599 U.S. agency bonds — 31,687 — 31,687 Prepaid expenses and other current assets: Certificates of deposit — 1,067 — 1,067 Restricted cash: Certificates of deposit $ — $ 5,530 $ — $ 5,530 |
Other balance sheet components
Other balance sheet components (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Other Balance Sheet Components [Abstract] | |
Summary of Property and Equipment, Net | We carry property and equipment at cost less accumulated depreciation and calculate depreciation using the straight-line method over our assets’ estimated useful lives, which are generally: Property and Equipment Useful Life Computer and network equipment 3 years Furniture and fixtures 4 years Leasehold improvements Lesser of estimated useful life or remaining lease term Property and equipment, net consists of the following (in thousands): December 31, 2023 2022 Leasehold improvements $ 64,326 $ 104,557 Furniture and fixtures 21,077 30,882 Computer and network equipment 26,603 32,845 Total property and equipment 112,006 168,284 Less: accumulated depreciation (90,116) (116,291) Construction in progress 10,335 7,582 Property and equipment, net $ 32,225 $ 59,575 |
Summary of Accrued Expenses and Other Current Liabilities | Accrued expenses and other current liabilities consists of the following (in thousands): December 31, 2023 2022 Accrued hosting expenses $ 53,262 $ 53,380 Accrued compensation 48,924 48,146 Operating lease liabilities 35,666 50,274 Other accrued expenses 100,180 140,811 Accrued expenses and other current liabilities $ 238,032 $ 292,611 |
Goodwill and intangible asset_2
Goodwill and intangible assets, net (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Summary of Composition of Intangible Assets, Net | Intangible assets, net consists of the following (in thousands): December 31, 2023 Gross Carrying Amount Accumulated Amortization Net Carrying Amount Weighted-Average Useful Life (1) Acquired technology, patents and other intangibles $ 39,907 $ (24,246) $ 15,661 4.9 years Customer relationships 17,700 (16,126) 1,574 1.6 years Total intangible assets, net $ 57,607 $ (40,372) $ 17,235 December 31, 2022 Gross Carrying Amount Accumulated Amortization Net Carrying Amount Weighted-Average Useful Life (1) Acquired technology, patents and other intangibles $ 39,907 $ (17,427) $ 22,480 4.9 years Customer relationships 17,700 (15,585) 2,115 1.6 years Total intangible assets, net $ 57,607 $ (33,012) $ 24,595 (1) Based on the weighted-average useful life established as of acquisition date. |
Summary of Estimated Future Amortization Expense | Estimated future amortization expense as of December 31, 2023, is as follows (in thousands): Intangible Asset Amortization 2024 $ 7,359 2025 5,464 2026 3,424 2027 476 2028 434 Thereafter 78 Total $ 17,235 |
Commitments and contingencies (
Commitments and contingencies (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Commitments and Contingencies Disclosure [Abstract] | |
Summary of Non-cancelable Contractual Commitments | As of December 31, 2023, our non-cancelable contractual commitments are as follows (in thousands): Purchase Commitments Operating Leases Total Commitments 2024 $ — $ 42,906 $ 42,906 2025 — 33,197 33,197 2026 — 31,542 31,542 2027 — 27,919 27,919 2028 — 22,172 22,172 Thereafter 1,754,553 83,233 1,837,786 Total $ 1,754,553 $ 240,969 $ 1,995,522 |
Leases (Tables)
Leases (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Leases [Abstract] | |
Summary of Operating Lease Costs | Operating lease costs for the years ended December 31, 2023, 2022 and 2021, are as follows (in thousands): Year Ended December 31, 2023 2022 2021 Lease cost: Operating lease cost (1) $ 51,044 $ 66,022 $ 53,691 Short-term lease cost 759 2,809 1,434 Total $ 51,803 $ 68,831 $ 55,125 (1) The decrease in operating lease cost for the year ended December 31, 2023 compared to the year ended December 31, 2022 is primarily due to office space reductions. Refer to Note 13, "Restructuring" for further information. |
Summary of Maturities of Operating Lease Liabilities | Maturities of our operating lease liabilities, which do not include short-term leases, as of December 31, 2023, are as follows (in thousands): Operating Leases 2024 $ 42,906 2025 33,197 2026 31,542 2027 27,919 2028 22,172 Thereafter 83,233 Total lease payments 240,969 Less imputed interest (44,687) Total operating lease liabilities $ 196,282 |
Stockholder's Equity (Tables)
Stockholder's Equity (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Share-Based Payment Arrangement [Abstract] | |
Summary of Stock Option Activity | Stock option activity during the year ended December 31, 2023, was as follows (in thousands, except per share amounts): Stock Options Outstanding Shares Weighted-Average Exercise Price Weighted-Average Remaining Contractual Term Aggregate Intrinsic Value (1) (in years) Outstanding as of December 31, 2022 15,799 $ 13.25 6.1 $ 174,165 Exercised (2,756) 3.08 Outstanding as of December 31, 2023 13,043 $ 15.41 6.1 $ 282,197 Exercisable as of December 31, 2023 7,164 $ 11.67 4.2 $ 181,762 (1) We calculate intrinsic value based on the difference between the exercise price of in-the-money-stock options and the fair value of our common stock as of the respective balance sheet date. |
Summary of Restricted Stock Unit and Restricted Stock Award Activity | RSU and RSA activity during the year ended December 31, 2023, was as follows (in thousands, except per share amounts): Restricted Stock Units and Restricted Stock Awards Outstanding Shares Weighted Average Grant Date Fair Value Outstanding as of December 31, 2022 54,518 $ 25.46 Granted (1) 26,878 25.35 Released (27,552) 25.11 Forfeited (1) (8,745) 24.35 Outstanding as of December 31, 2023 45,099 $ 25.83 (1) Includes the effects of awards modified during the year ended December 31, 2023. |
Summary of Share-Based Compensation Expense | Share-based compensation expense during the years ended December 31, 2023, 2022 and 2021, was as follows (in thousands): Year Ended December 31, 2023 2022 2021 Cost of revenue $ 11,117 $ 7,629 $ 7,438 Research and development 422,964 324,161 309,715 Sales and marketing 96,798 99,467 52,691 General and administrative 116,981 65,866 45,538 Total share-based compensation $ 647,860 $ 497,123 $ 415,382 |
Summary of Share-Based Payment Award, Stock Options, Valuation Assumptions | which we estimated using the Black ‑ Scholes option-pricing model with the following assumptions: Year Ended December 31, 2022 Expected term (in years) 6.1 Risk-free interest rate 3.2 % Expected volatility 61.1 % Dividend yield — % |
Net income (loss) per share (Ta
Net income (loss) per share (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Earnings Per Share [Abstract] | |
Summary of Calculation of Basic and Diluted Net Income (Loss) Per Share | We calculated basic and diluted net income (loss) per share as follows (in thousands, except per share amounts): Year Ended December 31, 2023 2022 2021 Class A Class B Class A Class B Class A Class B Basic net income (loss) per share: Numerator: Net income (loss) $ (30,937) $ (4,673) $ (83,110) $ (12,937) $ 274,699 $ 41,739 Denominator: Basic weighted-average shares used in computing net income (loss) per share 586,109 88,532 576,061 89,671 555,608 84,422 Basic net income (loss) per share $ (0.05) $ (0.05) $ (0.14) $ (0.14) $ 0.49 $ 0.49 Diluted net income (loss) per share: Numerator: Net income (loss) $ (30,937) $ (4,673) $ (83,110) $ (12,937) $ 274,699 $ 41,739 Reallocation of net income as a result of conversion of Class B to Class A common stock — — — — 41,739 — Reallocation of net income to Class B common stock — — — — — (3,115) Diluted net income (loss) $ (30,937) $ (4,673) $ (83,110) $ (12,937) $ 316,438 $ 38,624 Denominator: Basic weighted-average shares used in computing net income (loss) per share 586,109 88,532 576,061 89,671 555,608 84,422 Conversion of Class B to Class A common stock — — — — 84,422 — Weighted average effect of dilutive potential common stock — — — — 51,621 — Diluted weighted-average shares used in computing net income (loss) per share 586,109 88,532 576,061 89,671 691,651 84,422 Diluted net income (loss) per share $ (0.05) $ (0.05) $ (0.14) $ (0.14) $ 0.46 $ 0.46 |
Summary of Weighted-Average Anti-Dilutive Shares of Common Stock Excluded from the Calculation of Diluted Net Income (Loss) Per Share | Basic net loss per share is the same as diluted net loss per share for the periods we reported net losses. We excluded the following weighted-average potential shares of common stock from our calculation of diluted net income (loss) per share because these would be anti-dilutive (in thousands): Year Ended December 31, 2023 2022 2021 Outstanding stock options 14,463 17,405 — Unvested restricted stock units and restricted stock awards 53,228 52,256 3,271 Total 67,691 69,661 3,271 |
Income taxes (Tables)
Income taxes (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Income Tax Disclosure [Abstract] | |
Summary of Components of Income (Loss) Before Provision for Income Taxes | The components of income (loss) before provision for income taxes are as follows (in thousands): Year Ended December 31, 2023 2022 2021 United States $ 20,713 $ 29,108 $ 331,447 Foreign (37,153) (115,052) (10,476) Income (loss) before provision for income taxes $ (16,440) $ (85,944) $ 320,971 |
Summary of Composition of the Provision for Income Taxes | Provision for income taxes consists of the following (in thousands): Year Ended December 31, 2023 2022 2021 Current: Federal $ 7,833 $ 1,681 $ — State 6,698 7,385 2,303 Foreign 6,477 4,381 2,957 Total current tax expense 21,008 13,447 5,260 Deferred: Federal 6 (1,861) 6 State 3 (356) 6 Foreign (1,847) (1,127) (739) Total deferred tax expense (benefit) (1,838) (3,344) (727) Provision for income taxes $ 19,170 $ 10,103 $ 4,533 |
Summary of Reconciliation of the Difference Between Income Taxes Computed at the Statutory Federal Income Tax Rate and the Provision for Income Taxes | The difference between income taxes computed at the statutory federal income tax rate and the provision for income taxes is attributable to the following (in thousands): Year Ended December 31, 2023 2022 2021 Tax at U.S. statutory rate $ (3,453) $ (18,048) $ 67,404 State income taxes, net of benefit 5,111 5,502 2,307 Foreign operations 12,018 26,985 4,448 Permanent book/tax differences 6,809 6,598 409 Share-based compensation (18,925) (20,663) (269,009) Change in valuation allowance 111,497 62,048 278,761 Tax credits (93,887) (52,319) (79,787) Provision for income taxes $ 19,170 $ 10,103 $ 4,533 |
Summary of Significant Components of Deferred Tax Assets and Liabilities | Significant components of our deferred tax assets and liabilities are as follows (in thousands): December 31, 2023 2022 Deferred tax assets: Net operating loss carryforwards $ 751,273 $ 900,200 Research tax credits 570,061 473,248 Reserves, accruals, and other 26,855 31,502 Lease obligation 44,676 56,185 Share-based compensation 30,146 40,976 Research capitalization and amortization 411,113 208,373 Total deferred tax assets 1,834,124 1,710,484 Less: valuation allowance (1,821,027) (1,660,609) Deferred tax assets, net of valuation allowance 13,097 49,875 Deferred tax liabilities: Depreciation and amortization (7,467) (44,790) Prepaid expenses (2,682) (4,190) Total deferred tax liabilities (10,149) (48,980) Deferred tax assets (liabilities) $ 2,948 $ 895 |
Summary of Changes in Gross Unrecognized Tax Benefits | Changes in gross unrecognized tax benefits were as follows (in thousands): Gross Unrecognized Tax Benefits Balance as of December 31, 2021 $ 205,059 Increases for tax positions of prior years — Decreases for tax positions of prior years (3,347) Increases for tax positions of current year 38,226 Balance as of December 31, 2022 $ 239,938 Increases for tax positions of prior years 3,736 Decreases for tax positions of prior years (119) Increases for tax positions of current year 44,377 Audit Settlement (37,027) Balance as of December 31, 2023 $ 250,905 |
Geographical information (Table
Geographical information (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Segment Reporting [Abstract] | |
Summary of Revenue Disaggregated by Geography | Revenue disaggregated by geography based on our customers’ billing addresses is as follows (in thousands): Year Ended December 31, 2023 2022 2021 U.S. and Canada (1) $ 2,350,188 $ 2,264,640 $ 2,109,089 Europe (2) 501,290 410,516 384,657 Rest of World 203,593 127,418 84,281 Total revenue $ 3,055,071 $ 2,802,574 $ 2,578,027 (1) United States revenue w as $2,226.3 million, $2,144.3 million and $2,003.6 million for the years ended December 31, 2023, 2022 and 2021, respectively. No individual country other than the United States exceeded 10% of our total revenue for any period presented. (2) Europe includes Russia and Turkey. |
Summary of Property and Equipment, Net and Operating Lease Right-of-Use Assets by Geography | Property and equipment, net and operating lease right-of-use assets by geography is as follows (in thousands): December 31, 2023 2022 United States $ 66,335 $ 205,374 Ireland 18,658 4,950 Mexico 12,835 11,627 International (1) 26,516 43,877 Total property and equipment, net and operating lease right-of-use assets $ 124,344 $ 265,828 (1) Other than the United States, Ireland and Mexico, no other country exceeded 10% of our total property and equipment, net and operating lease right-of-use assets for any period presented. |
Restructuring (Tables)
Restructuring (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Restructuring and Related Activities [Abstract] | |
Summary of Restructuring Charges | Restructuring charges for the year ended December 31, 2023 were as follows (in thousands): Office Space Reductions (1) Severance and Other Personnel Costs Total Cost of revenue $ — $ — $ — Research and development — 4,696 4,696 Sales and marketing — 2,749 2,749 General and administrative 117,315 2,122 119,437 Total $ 117,315 $ 9,567 $ 126,882 (1) Office space reductions are non-cash and include impairment charges and accelerated expense related to operating lease right-of-use assets and leasehold improvements. We estimated the fair value of the impaired assets using a discounted cash flow model based on market participant assumptions. |
Description of business and s_4
Description of business and summary of significant accounting policies - Narrative (Details) $ in Thousands | 3 Months Ended | 12 Months Ended | ||
Dec. 31, 2022 USD ($) | Dec. 31, 2023 USD ($) segment | Dec. 31, 2022 USD ($) | Dec. 31, 2021 USD ($) | |
Summary of Significant Accounting Policies [Line Items] | ||||
Number of operating segments | segment | 1 | |||
Deferred revenue | $ 13,200 | $ 15,300 | $ 13,200 | |
Service period | 4 years | |||
Advertising expenses | $ 145,600 | 139,700 | $ 94,700 | |
Estimated useful lives of intangible assets (up to) | 10 years | |||
Impairment and abandonment charges for leases and leasehold improvements | $ 117,315 | $ 0 | $ 0 | |
Impairment charges for intangible assets | $ 9,400 | |||
2019 Plan | Minimum | ||||
Summary of Significant Accounting Policies [Line Items] | ||||
Service period | 2 years | |||
2019 Plan | Maximum | ||||
Summary of Significant Accounting Policies [Line Items] | ||||
Service period | 4 years | |||
RSUs | 2009 Plan | ||||
Summary of Significant Accounting Policies [Line Items] | ||||
Service period | 4 years |
Description of business and s_5
Description of business and summary of significant accounting policies - Estimated Useful Lives of Property and Equipment (Details) | Dec. 31, 2023 |
Computer and network equipment | |
Property, Plant and Equipment [Line Items] | |
Useful Life | 3 years |
Furniture and fixtures | |
Property, Plant and Equipment [Line Items] | |
Useful Life | 4 years |
Cash, cash equivalents and ma_3
Cash, cash equivalents and marketable securities - Composition of Cash, Cash Equivalents and Marketable Securities (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Cash and cash equivalents: | ||
Amortized Cost | $ 1,361,980 | $ 1,611,082 |
Unrealized Gains | 0 | 2 |
Unrealized Losses | (44) | (21) |
Fair Value | 1,361,936 | 1,611,063 |
Marketable securities: | ||
Amortized Cost | 1,149,425 | 1,097,467 |
Unrealized Gains | 1,896 | 380 |
Unrealized Losses | (2,173) | (10,683) |
Fair Value | 1,149,148 | 1,087,164 |
Total | ||
Amortized Cost | 2,511,405 | 2,708,549 |
Unrealized Gains | 1,896 | 382 |
Unrealized Losses | (2,217) | (10,704) |
Fair Value | 2,511,084 | 2,698,227 |
Corporate bonds | ||
Marketable securities: | ||
Amortized Cost | 428,002 | 370,445 |
Unrealized Gains | 1,277 | 172 |
Unrealized Losses | (1,322) | (7,542) |
Fair Value | 427,957 | 363,075 |
Commercial paper | ||
Marketable securities: | ||
Amortized Cost | 200,963 | 241,407 |
Unrealized Gains | 212 | 71 |
Unrealized Losses | (30) | (286) |
Fair Value | 201,145 | 241,192 |
U.S. treasury securities | ||
Marketable securities: | ||
Amortized Cost | 336,721 | 244,056 |
Unrealized Gains | 251 | 33 |
Unrealized Losses | (616) | (1,173) |
Fair Value | 336,356 | 242,916 |
Certificates of deposit | ||
Marketable securities: | ||
Amortized Cost | 132,314 | 158,607 |
Unrealized Gains | 152 | 60 |
Unrealized Losses | (9) | (421) |
Fair Value | 132,457 | 158,246 |
Municipal securities | ||
Marketable securities: | ||
Amortized Cost | 28,029 | |
Unrealized Gains | 4 | |
Unrealized Losses | (584) | |
Fair Value | 27,449 | |
Non-U.S. government and supranational bonds | ||
Marketable securities: | ||
Amortized Cost | 9,101 | 23,228 |
Unrealized Gains | 1 | 0 |
Unrealized Losses | (119) | (629) |
Fair Value | 8,983 | 22,599 |
U.S. agency bonds | ||
Marketable securities: | ||
Amortized Cost | 42,324 | 31,695 |
Unrealized Gains | 3 | 40 |
Unrealized Losses | (77) | (48) |
Fair Value | 42,250 | 31,687 |
Cash | ||
Cash and cash equivalents: | ||
Amortized Cost | 220,583 | 474,365 |
Unrealized Gains | 0 | 0 |
Unrealized Losses | 0 | 0 |
Fair Value | 220,583 | 474,365 |
Money market funds | ||
Cash and cash equivalents: | ||
Amortized Cost | 1,032,675 | 1,017,191 |
Unrealized Gains | 0 | 0 |
Unrealized Losses | 0 | 0 |
Fair Value | 1,032,675 | 1,017,191 |
Commercial paper | ||
Cash and cash equivalents: | ||
Amortized Cost | 106,312 | 111,996 |
Unrealized Gains | 0 | 0 |
Unrealized Losses | (44) | (21) |
Fair Value | 106,268 | 111,975 |
Corporate bonds | ||
Cash and cash equivalents: | ||
Amortized Cost | 859 | 1,542 |
Unrealized Gains | 0 | 0 |
Unrealized Losses | 0 | 0 |
Fair Value | 859 | 1,542 |
U.S. treasury securities | ||
Cash and cash equivalents: | ||
Amortized Cost | 5,988 | |
Unrealized Gains | 2 | |
Unrealized Losses | 0 | |
Fair Value | $ 5,990 | |
Certificates of deposit | ||
Cash and cash equivalents: | ||
Amortized Cost | 1,551 | |
Unrealized Gains | 0 | |
Unrealized Losses | 0 | |
Fair Value | $ 1,551 |
Cash, cash equivalents and ma_4
Cash, cash equivalents and marketable securities - Fair Value of Marketable Securities by Contractual Maturity (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Cash and Cash Equivalents [Abstract] | ||
Due in one year or less | $ 835,925 | |
Due after one to five years | 313,223 | |
Total | $ 1,149,148 | $ 1,087,164 |
Fair value of financial instr_3
Fair value of financial instruments (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash equivalents | $ 1,361,936 | $ 1,611,063 |
Marketable securities | 1,149,148 | 1,087,164 |
Corporate bonds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Marketable securities | 427,957 | 363,075 |
Corporate bonds | Recurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Marketable securities | 427,957 | 363,075 |
Corporate bonds | Recurring | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Marketable securities | 0 | 0 |
Corporate bonds | Recurring | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Marketable securities | 427,957 | 363,075 |
Corporate bonds | Recurring | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Marketable securities | 0 | 0 |
Commercial paper | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Marketable securities | 201,145 | 241,192 |
Commercial paper | Recurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Marketable securities | 201,145 | 241,192 |
Commercial paper | Recurring | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Marketable securities | 0 | 0 |
Commercial paper | Recurring | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Marketable securities | 201,145 | 241,192 |
Commercial paper | Recurring | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Marketable securities | 0 | 0 |
U.S. treasury securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Marketable securities | 336,356 | 242,916 |
U.S. treasury securities | Recurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Marketable securities | 336,356 | 242,916 |
U.S. treasury securities | Recurring | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Marketable securities | 336,356 | 242,916 |
U.S. treasury securities | Recurring | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Marketable securities | 0 | 0 |
U.S. treasury securities | Recurring | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Marketable securities | 0 | 0 |
Certificates of deposit | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Marketable securities | 132,457 | 158,246 |
Certificates of deposit | Recurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Marketable securities | 132,457 | 158,246 |
Prepaid expenses and other current assets | 2,542 | 1,067 |
Restricted cash | 4,054 | 5,530 |
Certificates of deposit | Recurring | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Marketable securities | 0 | 0 |
Prepaid expenses and other current assets | 0 | 0 |
Restricted cash | 0 | 0 |
Certificates of deposit | Recurring | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Marketable securities | 132,457 | 158,246 |
Prepaid expenses and other current assets | 2,542 | 1,067 |
Restricted cash | 4,054 | 5,530 |
Certificates of deposit | Recurring | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Marketable securities | 0 | 0 |
Prepaid expenses and other current assets | 0 | 0 |
Restricted cash | 0 | 0 |
Municipal securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Marketable securities | 27,449 | |
Municipal securities | Recurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Marketable securities | 27,449 | |
Municipal securities | Recurring | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Marketable securities | 0 | |
Municipal securities | Recurring | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Marketable securities | 27,449 | |
Municipal securities | Recurring | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Marketable securities | 0 | |
Non-U.S. government and supranational bonds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Marketable securities | 8,983 | 22,599 |
Non-U.S. government and supranational bonds | Recurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Marketable securities | 8,983 | 22,599 |
Non-U.S. government and supranational bonds | Recurring | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Marketable securities | 0 | 0 |
Non-U.S. government and supranational bonds | Recurring | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Marketable securities | 8,983 | 22,599 |
Non-U.S. government and supranational bonds | Recurring | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Marketable securities | 0 | 0 |
U.S. agency bonds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Marketable securities | 42,250 | 31,687 |
U.S. agency bonds | Recurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Marketable securities | 42,250 | 31,687 |
U.S. agency bonds | Recurring | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Marketable securities | 0 | 0 |
U.S. agency bonds | Recurring | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Marketable securities | 42,250 | 31,687 |
U.S. agency bonds | Recurring | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Marketable securities | 0 | 0 |
Money market funds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash equivalents | 1,032,675 | 1,017,191 |
Money market funds | Recurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash equivalents | 1,032,675 | 1,017,191 |
Money market funds | Recurring | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash equivalents | 1,032,675 | 1,017,191 |
Money market funds | Recurring | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash equivalents | 0 | 0 |
Money market funds | Recurring | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash equivalents | 0 | 0 |
Commercial paper | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash equivalents | 106,268 | 111,975 |
Commercial paper | Recurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash equivalents | 106,268 | 111,975 |
Commercial paper | Recurring | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash equivalents | 0 | 0 |
Commercial paper | Recurring | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash equivalents | 106,268 | 111,975 |
Commercial paper | Recurring | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash equivalents | 0 | 0 |
Certificates of deposit | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash equivalents | 1,551 | |
Certificates of deposit | Recurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash equivalents | 1,551 | |
Certificates of deposit | Recurring | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash equivalents | 0 | |
Certificates of deposit | Recurring | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash equivalents | 1,551 | |
Certificates of deposit | Recurring | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash equivalents | 0 | |
Corporate bonds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash equivalents | 859 | 1,542 |
Corporate bonds | Recurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash equivalents | 859 | 1,542 |
Corporate bonds | Recurring | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash equivalents | 0 | 0 |
Corporate bonds | Recurring | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash equivalents | 859 | 1,542 |
Corporate bonds | Recurring | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash equivalents | $ 0 | 0 |
U.S. treasury securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash equivalents | 5,990 | |
U.S. treasury securities | Recurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash equivalents | 5,990 | |
U.S. treasury securities | Recurring | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash equivalents | 5,990 | |
U.S. treasury securities | Recurring | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash equivalents | 0 | |
U.S. treasury securities | Recurring | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash equivalents | $ 0 |
Other balance sheet component_2
Other balance sheet components - Property and Equipment, Net (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Property, Plant and Equipment [Line Items] | ||
Less: accumulated depreciation | $ (90,116) | $ (116,291) |
Property and equipment, net | 32,225 | 59,575 |
Depreciable Property and Equipment | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment | 112,006 | 168,284 |
Leasehold improvements | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment | 64,326 | 104,557 |
Furniture and fixtures | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment | 21,077 | 30,882 |
Computer and network equipment | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment | 26,603 | 32,845 |
Construction in progress | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment | $ 10,335 | $ 7,582 |
Other balance sheet component_3
Other balance sheet components - Narrative (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Other Balance Sheet Components [Abstract] | |||
Depreciation expense | $ 14.1 | $ 21.6 | $ 26.2 |
Other balance sheet component_4
Other balance sheet components - Accrued Expenses and Other Current Liabilities (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Other Balance Sheet Components [Abstract] | ||
Accrued hosting expenses | $ 53,262 | $ 53,380 |
Accrued compensation | 48,924 | 48,146 |
Operating lease liabilities | $ 35,666 | $ 50,274 |
Operating Lease, Liability, Current, Statement of Financial Position [Extensible Enumeration] | Accrued expenses and other current liabilities | Accrued expenses and other current liabilities |
Other accrued expenses | $ 100,180 | $ 140,811 |
Accrued expenses and other current liabilities | $ 238,032 | $ 292,611 |
Acquisition (Details)
Acquisition (Details) - The Yes Platform, Inc. - USD ($) | 3 Months Ended | |
Jun. 10, 2022 | Dec. 31, 2022 | |
Asset Acquisition [Line Items] | ||
Purchase consideration in cash | $ 87,600,000 | |
Goodwill | 60,000,000 | |
Deductible goodwill | 0 | |
Customer Relationships | ||
Asset Acquisition [Line Items] | ||
Finite intangibles acquired | 15,000,000 | |
Acquired intangible assets impairment charges | $ 9,400,000 | |
Developed Technology Rights | ||
Asset Acquisition [Line Items] | ||
Finite intangibles acquired | $ 13,600,000 | |
Acquired intangible assets impairment charges | $ 9,400,000 |
Goodwill and intangible asset_3
Goodwill and intangible assets, net - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Finite-Lived Intangible Assets [Line Items] | ||||
Goodwill acquired | $ 60 | |||
Amortization expense | $ 7.4 | $ 24.9 | $ 1.3 | |
Impairment charges for intangible assets | $ 9.4 | |||
Sales and marketing | ||||
Finite-Lived Intangible Assets [Line Items] | ||||
Impairment charges for intangible assets | 6.3 | |||
Cost of revenue | ||||
Finite-Lived Intangible Assets [Line Items] | ||||
Impairment charges for intangible assets | $ 3.1 |
Goodwill and intangible asset_4
Goodwill and intangible assets, net - Composition of Intangible Assets, Net (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | $ 57,607 | $ 57,607 |
Accumulated Amortization | (40,372) | (33,012) |
Net Carrying Amount | $ 17,235 | 24,595 |
Weighted-Average Useful Life | 10 years | |
Acquired technology, patents and other intangibles | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | $ 39,907 | 39,907 |
Accumulated Amortization | (24,246) | (17,427) |
Net Carrying Amount | $ 15,661 | $ 22,480 |
Weighted-Average Useful Life | 4 years 10 months 24 days | 4 years 10 months 24 days |
Customer relationships | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | $ 17,700 | $ 17,700 |
Accumulated Amortization | (16,126) | (15,585) |
Net Carrying Amount | $ 1,574 | $ 2,115 |
Weighted-Average Useful Life | 1 year 7 months 6 days | 1 year 7 months 6 days |
Goodwill and intangible asset_5
Goodwill and intangible assets, net - Estimated Future Amortization Expense (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Goodwill and Intangible Assets Disclosure [Abstract] | ||
2024 | $ 7,359 | |
2025 | 5,464 | |
2026 | 3,424 | |
2027 | 476 | |
2028 | 434 | |
Thereafter | 78 | |
Net Carrying Amount | $ 17,235 | $ 24,595 |
Commitments and contingencies -
Commitments and contingencies - Non-cancelable Contractual Commitments (Details) $ in Thousands | Dec. 31, 2023 USD ($) |
Purchase Commitments | |
2024 | $ 0 |
2025 | 0 |
2026 | 0 |
2027 | 0 |
2028 | 0 |
Thereafter | 1,754,553 |
Total | 1,754,553 |
Operating Leases | |
2024 | 42,906 |
2025 | 33,197 |
2026 | 31,542 |
2027 | 27,919 |
2028 | 22,172 |
Thereafter | 83,233 |
Total lease payments | 240,969 |
Total Commitments | |
2024 | 42,906 |
2025 | 33,197 |
2026 | 31,542 |
2027 | 27,919 |
2028 | 22,172 |
Thereafter | 1,837,786 |
Total | $ 1,995,522 |
Commitments and contingencies_2
Commitments and contingencies - Purchase Commitments (Details) - USD ($) $ in Millions | Dec. 31, 2023 | Apr. 30, 2021 |
Commitments and Contingencies Disclosure [Abstract] | ||
Minimum required purchases | $ 1,754.6 | $ 3,250 |
Commitments and contingencies_3
Commitments and contingencies - Revolving Credit Facility (Details) - Line of Credit $ in Millions | 1 Months Ended | |||
Oct. 31, 2022 USD ($) | Dec. 31, 2023 USD ($) | Oct. 31, 2023 USD ($) | Nov. 30, 2018 USD ($) | |
Revolving Credit Facility | ||||
Commitments And Contingencies [Line Items] | ||||
Maximum borrowing capacity | $ 400 | $ 500 | $ 500 | |
Term of borrowing agreement | 5 years | |||
Commitment fee rate | 0.15% | |||
Ration of consolidated net debt to EBITDA (no greater than) | 3.50 | |||
Future ratio of consolidated net debt to EBITDA (no greater than) | 4 | |||
Remaining borrowing capacity | $ 500 | |||
Revolving Credit Facility | Secured Overnight Financing Rate (SOFR) | ||||
Commitments And Contingencies [Line Items] | ||||
Base rate component, spread on variable rate | 0.0010 | |||
Basis spread on variable rate | 1.50% | |||
Revolving Credit Facility | Alternative Base Rate | ||||
Commitments And Contingencies [Line Items] | ||||
Basis spread on variable rate | 0.50% | |||
Revolving Credit Facility | Credit Agreement Amended And Restated | ||||
Commitments And Contingencies [Line Items] | ||||
Accordion feature maximum borrowings capacity | $ 405 | $ 305 | ||
Letter of Credit | ||||
Commitments And Contingencies [Line Items] | ||||
Commitment fee | 0.125% |
Leases - Operating Lease Costs
Leases - Operating Lease Costs (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Lease cost: | |||
Operating lease cost | $ 51,044 | $ 66,022 | $ 53,691 |
Short-term lease cost | 759 | 2,809 | 1,434 |
Total | $ 51,803 | $ 68,831 | $ 55,125 |
Leases - Narrative (Details)
Leases - Narrative (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Leases [Abstract] | |||
Weighted-average remaining term of operating leases | 7 years 2 months 12 days | 6 years 9 months 18 days | |
Weighted-average discount rate used to measure the present value of operating lease liabilities | 5.10% | 4.10% | |
Cash payments included in the measurement of operating lease liabilities | $ 61.8 | $ 64 | $ 59 |
Leases - Maturities of Operatin
Leases - Maturities of Operating Lease Liabilities (Details) $ in Thousands | Dec. 31, 2023 USD ($) |
Leases [Abstract] | |
2024 | $ 42,906 |
2025 | 33,197 |
2026 | 31,542 |
2027 | 27,919 |
2028 | 22,172 |
Thereafter | 83,233 |
Total lease payments | 240,969 |
Less imputed interest | (44,687) |
Total operating lease liabilities | $ 196,282 |
Stockholder's Equity - Narrativ
Stockholder's Equity - Narrative (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||||
Feb. 02, 2023 | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | Sep. 16, 2023 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Grant-date fair value of stock options vested | $ 28,400 | $ 9,500 | $ 3,200 | ||
Aggregate intrinsic value of stock options exercised | 70,200 | $ 180,200 | $ 511,400 | ||
Unrecognized share-based compensation expense | $ 1,128,100 | ||||
Weighted-average recognition period for unrecognized share-based compensation expense | 2 years 2 months 12 days | ||||
Service period | 4 years | ||||
Weighted-average grant-date fair value of stock options granted (in dollars per share) | $ 11.79 | ||||
Repurchases of Class A common stock | $ 500,000 | ||||
Stock Repurchase Program , February 2023 | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Authorized stock repurchase amount | $ 500,000 | ||||
Repurchases of Class A common stock (in shares) | 21,215,663 | ||||
Repurchases of Class A common stock | $ 500,000 | ||||
Stock repurchased, average price per share (in dollars per share) | $ 23.57 | ||||
Stock Repurchase Program , September 2023 | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Authorized stock repurchase amount | $ 1,000,000 | ||||
Remaining authorized stock repurchase amount | $ 1,000,000 | ||||
Stock options | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Dividend yield | 0% | ||||
2009 Plan | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Shares reserved for issuance (in shares) | 0 | ||||
2009 Plan | Stock options | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Expiration period | 10 years | ||||
2009 Plan | RSUs | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Expiration period | 7 years | ||||
Service period | 4 years | ||||
2019 Plan | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Percentage of outstanding shares, additional reserve | 5% | ||||
2019 Plan | Class A | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Shares reserved for issuance (in shares) | 145,335,295 | ||||
2019 Plan | Stock options | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Expiration period | 10 years |
Stockholder's Equity - Stock Op
Stockholder's Equity - Stock Option Activity (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Shares | ||
Beginning balance (in shares) | 15,799 | |
Exercised (in shares) | (2,756) | |
Ending balance (in shares) | 13,043 | 15,799 |
Exercisable (in shares) | 7,164 | |
Weighted-Average Exercise Price | ||
Beginning balance (in dollars per share) | $ 13.25 | |
Exercised (in dollars per share) | 3.08 | |
Ending balance (in dollars per share) | 15.41 | $ 13.25 |
Exercisable (in dollars per share) | $ 11.67 | |
Weighted-Average Remaining Contractual Term, Outstanding | 6 years 1 month 6 days | 6 years 1 month 6 days |
Weighted-Average Remaining Contractual Term, Exercisable | 4 years 2 months 12 days | |
Aggregate Intrinsic Value, Outstanding | $ 282,197 | $ 174,165 |
Aggregate Intrinsic Value, Exercisable | $ 181,762 |
Stockholder's Equity - Restrict
Stockholder's Equity - Restricted Stock Unit and Restricted Stock Award Activity (Details) - Unvested restricted stock units and restricted stock awards shares in Thousands | 12 Months Ended |
Dec. 31, 2023 $ / shares shares | |
Shares | |
Beginning balance (in shares) | shares | 54,518 |
Granted (in shares) | shares | 26,878 |
Released (in shares) | shares | (27,552) |
Forfeited (in shares) | shares | (8,745) |
Ending balance (in shares) | shares | 45,099 |
Weighted Average Grant Date Fair Value | |
Beginning balance (in dollars per share) | $ / shares | $ 25.46 |
Granted (in dollars per share) | $ / shares | 25.35 |
Released (in dollars per share) | $ / shares | 25.11 |
Forfeited (in dollars per share) | $ / shares | 24.35 |
Ending balance (in dollars per share) | $ / shares | $ 25.83 |
Stockholder's Equity - Share-ba
Stockholder's Equity - Share-based Compensation Expense (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | |||
Share-based compensation | $ 647,860 | $ 497,123 | $ 415,382 |
Cost of revenue | |||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | |||
Share-based compensation | 11,117 | 7,629 | 7,438 |
Research and development | |||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | |||
Share-based compensation | 422,964 | 324,161 | 309,715 |
Sales and marketing | |||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | |||
Share-based compensation | 96,798 | 99,467 | 52,691 |
General and administrative | |||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | |||
Share-based compensation | $ 116,981 | $ 65,866 | $ 45,538 |
Stockholder's Equity - Fair Val
Stockholder's Equity - Fair Value of Stock Options (Details) - Stock options | 12 Months Ended |
Dec. 31, 2022 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Expected term (in years) | 6 years 1 month 6 days |
Risk-free interest rate | 3.20% |
Expected volatility | 61.10% |
Dividend yield | 0% |
Net income (loss) per share - C
Net income (loss) per share - Calculation of Basic and Diluted Net Income (Loss) Per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Denominator: | |||
Basic weighted-average shares used in computing net income (loss) per share (in shares) | 674,641 | 665,732 | 640,030 |
Diluted weighted-average shares used in computing net income (loss) per share) (in shares) | 674,641 | 665,732 | 691,651 |
Basic net income (loss) per share (in dollars per share) | $ (0.05) | $ (0.14) | $ 0.49 |
Diluted net income (loss) per share (in dollars per share) | $ (0.05) | $ (0.14) | $ 0.46 |
Class A | |||
Numerator: | |||
Net income (loss) | $ (30,937) | $ (83,110) | $ 274,699 |
Reallocation of net income as a result of conversion of Class B to Class A common stock | 0 | 0 | 41,739 |
Reallocation of net income to Class B common stock | 0 | 0 | 0 |
Diluted net income (loss) | $ (30,937) | $ (83,110) | $ 316,438 |
Denominator: | |||
Basic weighted-average shares used in computing net income (loss) per share (in shares) | 586,109 | 576,061 | 555,608 |
Conversion of Class B to Class A common stock (in shares) | 0 | 0 | 84,422 |
Weighted average effect of dilutive potential common stock (in shares) | 0 | 0 | 51,621 |
Diluted weighted-average shares used in computing net income (loss) per share) (in shares) | 586,109 | 576,061 | 691,651 |
Basic net income (loss) per share (in dollars per share) | $ (0.05) | $ (0.14) | $ 0.49 |
Diluted net income (loss) per share (in dollars per share) | $ (0.05) | $ (0.14) | $ 0.46 |
Class B | |||
Numerator: | |||
Net income (loss) | $ (4,673) | $ (12,937) | $ 41,739 |
Reallocation of net income as a result of conversion of Class B to Class A common stock | 0 | 0 | 0 |
Reallocation of net income to Class B common stock | 0 | 0 | (3,115) |
Diluted net income (loss) | $ (4,673) | $ (12,937) | $ 38,624 |
Denominator: | |||
Basic weighted-average shares used in computing net income (loss) per share (in shares) | 88,532 | 89,671 | 84,422 |
Conversion of Class B to Class A common stock (in shares) | 0 | 0 | 0 |
Weighted average effect of dilutive potential common stock (in shares) | 0 | 0 | 0 |
Diluted weighted-average shares used in computing net income (loss) per share) (in shares) | 88,532 | 89,671 | 84,422 |
Basic net income (loss) per share (in dollars per share) | $ (0.05) | $ (0.14) | $ 0.49 |
Diluted net income (loss) per share (in dollars per share) | $ (0.05) | $ (0.14) | $ 0.46 |
Net income (loss) per share - W
Net income (loss) per share - Weighted-Average Anti-Dilutive Shares of Common Stock Excluded from the Calculation of Diluted Net Loss Per Share (Details) - shares shares in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Weighted-average anti-dilutive shares of common stock (in shares) | 67,691 | 69,661 | 3,271 |
Outstanding stock options | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Weighted-average anti-dilutive shares of common stock (in shares) | 14,463 | 17,405 | 0 |
Unvested restricted stock units and restricted stock awards | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Weighted-average anti-dilutive shares of common stock (in shares) | 53,228 | 52,256 | 3,271 |
Income taxes - Components of Lo
Income taxes - Components of Loss Before Provision for Income Taxes (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Income Tax Disclosure [Abstract] | |||
United States | $ 20,713 | $ 29,108 | $ 331,447 |
Foreign | (37,153) | (115,052) | (10,476) |
Income (loss) before provision for income taxes | $ (16,440) | $ (85,944) | $ 320,971 |
Income taxes - Composition of t
Income taxes - Composition of the Provision for Income Taxes (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Current: | |||
Federal | $ 7,833 | $ 1,681 | $ 0 |
State | 6,698 | 7,385 | 2,303 |
Foreign | 6,477 | 4,381 | 2,957 |
Total current tax expense | 21,008 | 13,447 | 5,260 |
Deferred: | |||
Federal | 6 | (1,861) | 6 |
State | 3 | (356) | 6 |
Foreign | (1,847) | (1,127) | (739) |
Total deferred tax expense (benefit) | (1,838) | (3,344) | (727) |
Provision for income taxes | $ 19,170 | $ 10,103 | $ 4,533 |
Income taxes - Reconciliation o
Income taxes - Reconciliation of the Difference Between Income Taxes Computed at the Statutory Federal Income Tax Rate and the Provision for Income Taxes (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Income Tax Disclosure [Abstract] | |||
Tax at U.S. statutory rate | $ (3,453) | $ (18,048) | $ 67,404 |
State income taxes, net of benefit | 5,111 | 5,502 | 2,307 |
Foreign operations | 12,018 | 26,985 | 4,448 |
Permanent book/tax differences | 6,809 | 6,598 | 409 |
Share-based compensation | (18,925) | (20,663) | (269,009) |
Change in valuation allowance | 111,497 | 62,048 | 278,761 |
Tax credits | (93,887) | (52,319) | (79,787) |
Provision for income taxes | $ 19,170 | $ 10,103 | $ 4,533 |
Income taxes - Significant Comp
Income taxes - Significant Components of Deferred Tax Assets and Liabilities (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Deferred tax assets: | ||
Net operating loss carryforwards | $ 751,273 | $ 900,200 |
Research tax credits | 570,061 | 473,248 |
Reserves, accruals, and other | 26,855 | 31,502 |
Lease obligation | 44,676 | 56,185 |
Share-based compensation | 30,146 | 40,976 |
Research capitalization and amortization | 411,113 | 208,373 |
Total deferred tax assets | 1,834,124 | 1,710,484 |
Less: valuation allowance | (1,821,027) | (1,660,609) |
Deferred tax assets, net of valuation allowance | 13,097 | 49,875 |
Deferred tax liabilities: | ||
Depreciation and amortization | (7,467) | (44,790) |
Prepaid expenses | (2,682) | (4,190) |
Total deferred tax liabilities | (10,149) | (48,980) |
Deferred tax assets | $ 2,948 | $ 895 |
Income taxes - Narrative (Detai
Income taxes - Narrative (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Income Taxes [Line Items] | ||
Increase (decrease) in deferred tax asset valuation allowance | $ 160.4 | $ 120.7 |
Unrecognized tax benefits that would affect effective tax rate | 250.9 | |
Effective tax rate impact | 5.3 | |
Remaining unrecognized tax benefits | 245.6 | |
Federal | ||
Income Taxes [Line Items] | ||
Net operating loss carryforwards | 2,914.6 | |
Federal | Research Tax Credits | ||
Income Taxes [Line Items] | ||
Tax credit carryforwards | 491.4 | |
State | California | ||
Income Taxes [Line Items] | ||
Net operating loss carryforwards | 555 | |
State | California | Research Tax Credits | ||
Income Taxes [Line Items] | ||
Tax credit carryforwards | 365.7 | |
State | Other States | ||
Income Taxes [Line Items] | ||
Net operating loss carryforwards | 1,387.5 | |
Foreign | Ireland | ||
Income Taxes [Line Items] | ||
Net operating loss carryforwards | 208.5 | |
Foreign | Other Foreign | ||
Income Taxes [Line Items] | ||
Net operating loss carryforwards | $ 10.2 |
Income taxes - Changes in Gross
Income taxes - Changes in Gross Unrecognized Tax Benefits (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward] | ||
Beginning balance | $ 239,938 | $ 205,059 |
Increases for tax positions of prior years | 3,736 | 0 |
Decreases for tax positions of prior years | (119) | (3,347) |
Increases for tax positions of current year | 44,377 | 38,226 |
Audit Settlement | (37,027) | |
Ending balance | $ 250,905 | $ 239,938 |
Geographical information (Detai
Geographical information (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Total revenue | $ 3,055,071 | $ 2,802,574 | $ 2,578,027 |
Total property and equipment, net and operating lease right-of-use assets | 124,344 | 265,828 | |
United States and Canada | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Total revenue | 2,350,188 | 2,264,640 | 2,109,089 |
Europe | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Total revenue | 501,290 | 410,516 | 384,657 |
Rest of World | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Total revenue | 203,593 | 127,418 | 84,281 |
United States | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Total revenue | 2,226,300 | 2,144,300 | $ 2,003,600 |
Total property and equipment, net and operating lease right-of-use assets | 66,335 | 205,374 | |
Ireland | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Total property and equipment, net and operating lease right-of-use assets | 18,658 | 4,950 | |
Mexico | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Total property and equipment, net and operating lease right-of-use assets | 12,835 | 11,627 | |
International | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Total property and equipment, net and operating lease right-of-use assets | $ 26,516 | $ 43,877 |
Restructuring - Narrative (Deta
Restructuring - Narrative (Details) | 1 Months Ended |
Mar. 31, 2023 | |
Plan | Employee Severance | |
Restructuring Cost and Reserve [Line Items] | |
Workforce reduction | 4% |
Restructuring - Summary of Rest
Restructuring - Summary of Restructuring Charges (Details) $ in Thousands | 12 Months Ended |
Dec. 31, 2023 USD ($) | |
Restructuring Cost and Reserve [Line Items] | |
Office Space Reductions | $ 117,315 |
Severance and Other Personnel Costs | 9,567 |
Total | 126,882 |
Cost of revenue | |
Restructuring Cost and Reserve [Line Items] | |
Office Space Reductions | 0 |
Severance and Other Personnel Costs | 0 |
Total | 0 |
Research and development | |
Restructuring Cost and Reserve [Line Items] | |
Office Space Reductions | 0 |
Severance and Other Personnel Costs | 4,696 |
Total | 4,696 |
Sales and marketing | |
Restructuring Cost and Reserve [Line Items] | |
Office Space Reductions | 0 |
Severance and Other Personnel Costs | 2,749 |
Total | 2,749 |
General and administrative | |
Restructuring Cost and Reserve [Line Items] | |
Office Space Reductions | 117,315 |
Severance and Other Personnel Costs | 2,122 |
Total | $ 119,437 |