Convertible Senior Notes (Tables)
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6 Months Ended |
Jun. 30, 2025 |
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| Debt Disclosure [Abstract] |
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| Schedule of Debt Outstanding |
The following table presents certain terms of the 2027 Notes that were outstanding as of June 30, 2025:
| | | | | | | 2027 Notes | | Principal Amount Outstanding as of June 30, 2025 (in thousands) | $ | 1,000,000 | | | Interest Rate Per Year | 1.25 | % | | Fair Value as of June 30, 2025 (in thousands) (1) | $ | 921,000 | | | Fair Value as of December 31, 2024 (in thousands) (1) | $ | 875,000 | | | Maturity Date | June 1, 2027 | | Optional Redemption Date | June 5, 2024 | | Conversion Date | December 1, 2026 | Conversion Rate Per $1,000 Principal Amount as of June 30, 2025 | 4.1258 | | Remaining Contractual Life as of June 30, 2025 | 1.9 years |
(1)The Company estimates the fair value of its 2027 Notes utilizing market quotations for debt that have quoted prices in active markets. Since the Notes do not trade on a daily basis in an active market, the fair value estimates are based on market observable inputs based on borrowing rates currently available for debt with similar terms and average maturities. The 2027 Notes would be classified as Level 2 within the fair value hierarchy, as defined in Note 2. “Basis of Presentation and Principles of Consolidation.”
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| Schedule of Net Carrying Values of Debt |
The net carrying values of the indicated notes consisted of the following (in thousands):
| | | | | | | | | | | | | As of | | June 30, | | December 31, | | 2025 | | 2024 | | 2025 Notes | | | | | Principal | $ | — | | | $ | 725 | | | Less: Debt discount (1) | — | | | (2) | | | Net carrying amount | — | | | 723 | | | | | | | Livongo Notes | | | | | Principal | — | | | 550,000 | | | Less: Debt discount (1) | — | | | — | | | Net carrying amount | — | | | 550,000 | | | | | | | 2027 Notes | | | | | Principal | 1,000,000 | | | 1,000,000 | | | Less: Debt discount (1) | (6,835) | | | (8,582) | | | Net carrying amount | 993,165 | | | 991,418 | | | | | | | Total net carrying amount | $ | 993,165 | | | $ | 1,542,141 | | | | | | | Convertible senior notes, net—current | $ | — | | | $ | 550,723 | | | Convertible senior notes, net—non-current | 993,165 | | | 991,418 | | | Total net carrying amount | $ | 993,165 | | | $ | 1,542,141 | |
(1)Included in the accompanying Condensed Consolidated Balance Sheets within Convertible senior notes, net—current and Convertible senior notes, net—non-current and amortized to interest expense over the expected life of the notes using the effective interest rate method.
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| Schedule of Total Interest Expense Recognized Related to Debt |
The following table sets forth total interest expense recognized related to the indicated notes (in thousands):
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June 30, | | Six Months Ended
June 30, | | 2025 Notes | 2025 | | 2024 | | 2025 | | 2024 | | Contractual interest expense | $ | 1 | | $ | 3 | | $ | 3 | | $ | 5 | | Amortization of debt discount | — | | 1 | | 1 | | 2 | | Total | $ | 1 | | $ | 4 | | $ | 4 | | $ | 7 | | Effective interest rate | 1.8 | % | | 1.8 | % | | 1.8 | % | | 1.8 | % | | | | | | | | | | Three Months Ended
June 30, | | Six Months Ended
June 30, | | Livongo Notes | 2025 | | 2024 | | 2025 | | 2024 | | Contractual interest expense | $ | 802 | | $ | 1,203 | | $ | 2,005 | | $ | 2,406 | | Amortization of debt discount | — | | — | | — | | — | | Total | $ | 802 | | $ | 1,203 | | $ | 2,005 | | $ | 2,406 | | Effective interest rate | 0.9 | % | | 0.9 | % | | 0.9 | % | | 0.9 | % | | | | | | | | | | Three Months Ended
June 30, | | Six Months Ended
June 30, | | 2027 Notes | 2025 | | 2024 | | 2025 | | 2024 | | Contractual interest expense | $ | 3,125 | | $ | 3,125 | | $ | 6,250 | | $ | 6,250 | | Amortization of debt discount | 874 | | 861 | | 1,746 | | 1,719 | | Total | $ | 3,999 | | $ | 3,986 | | $ | 7,996 | | $ | 7,969 | | Effective interest rate | 1.6 | % | | 1.6 | % | | 1.6 | % | | 1.6 | % |
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