v3.25.2
Fair Value of Financial Instruments
 6 Months Ended
Jun. 30, 2025
Fair Value Disclosures [Abstract]  
Fair Value of Financial Instruments

4. Fair Value of Financial Instruments

The Company measures certain financial assets at fair value. Fair value is determined based upon the exit price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants, as determined by either the principal market or the most advantageous market. Inputs used in the valuation techniques to derive fair values are classified based on a three-level hierarchy, as follows:

•
Level 1 — Quoted prices in active markets for identical assets or liabilities.
•
Level 2 — Observable inputs other than Level 1 prices such as quoted prices for similar assets or liabilities; quoted prices in markets with insufficient volume or infrequent transactions (less active markets); or model-derived valuations in which all significant inputs are observable or can be derived principally from or corroborated by observable market data for substantially the full term of the assets or liabilities.
•
Level 3 — Unobservable inputs to the valuation methodology that are significant to the measurement of fair value of assets or liabilities.

The following table details the fair value measurements within the fair value hierarchy of the Company’s financial assets and liabilities at June 30, 2025 and December 31, 2024:
 

 

 

June 30, 2025

 

 

 

Level 1

 

 

Level 2

 

 

Level 3

 

 

Total

 

 

 

(in thousands)

 

Cash equivalents and investments:

 

 

 

Money market funds

 

$

130,322

 

 

$

—

 

 

$

—

 

 

$

130,322

 

Commercial paper

 

 

—

 

 

 

3,715

 

 

 

—

 

 

 

3,715

 

Corporate bonds

 

 

—

 

 

 

287,215

 

 

 

—

 

 

 

287,215

 

U.S. Government agency securities

 

 

—

 

 

 

93,080

 

 

 

—

 

 

 

93,080

 

U.S. Treasury securities

 

 

—

 

 

 

875,576

 

 

 

—

 

 

 

875,576

 

Strategic investments

 

 

—

 

 

 

—

 

 

 

15,842

 

 

 

15,842

 

Restricted cash:

 

 

 

 

 

 

 

 

 

 

 

 

Money market funds

 

 

—

 

 

 

2,703

 

 

 

—

 

 

 

2,703

 

Prepaid expenses and other current assets:

 

 

 

 

 

 

 

 

 

 

 

 

Foreign currency derivative assets

 

 

—

 

 

 

886

 

 

 

—

 

 

 

886

 

Total assets

 

$

130,322

 

 

$

1,263,175

 

 

$

15,842

 

 

$

1,409,339

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Accrued expenses and other current liabilities:

 

 

 

 

 

 

 

 

 

 

 

 

Foreign currency derivative liabilities

 

$

—

 

 

$

913

 

 

$

—

 

 

$

913

 

Total liabilities

 

$

—

 

 

$

913

 

 

$

—

 

 

$

913

 

 

 

 

December 31, 2024

 

 

 

Level 1

 

 

Level 2

 

 

Level 3

 

 

Total

 

 

 

(in thousands)

 

Cash equivalents and investments:

 

 

 

 

 

 

 

 

 

 

 

 

Money market funds

 

$

64,109

 

 

$

—

 

 

$

—

 

 

$

64,109

 

Commercial paper

 

 

—

 

 

 

4,941

 

 

 

—

 

 

 

4,941

 

Corporate bonds

 

 

—

 

 

 

284,575

 

 

 

—

 

 

 

284,575

 

U.S. Government agency securities

 

 

—

 

 

 

117,369

 

 

 

—

 

 

 

117,369

 

U.S. Treasury securities

 

 

—

 

 

 

1,307,363

 

 

 

—

 

 

 

1,307,363

 

Strategic investments

 

 

—

 

 

 

—

 

 

 

9,409

 

 

 

9,409

 

Restricted cash:

 

 

 

 

 

 

 

 

 

 

 

 

Money market funds

 

 

—

 

 

 

4,053

 

 

 

—

 

 

 

4,053

 

Total assets

 

$

64,109

 

 

$

1,718,301

 

 

$

9,409

 

 

$

1,791,819

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Accrued expenses and other current liabilities:

 

 

 

 

 

 

 

 

 

 

 

 

Foreign currency derivative liabilities

 

$

—

 

 

$

584

 

 

$

—

 

 

$

584

 

Total liabilities

 

$

—

 

 

$

584

 

 

$

—

 

 

$

584

 

The Company considers all highly liquid investments purchased with an original maturity of three months or less to be cash equivalents. The fair value of the Company’s investments in certain money market funds is their face value and such instruments are classified as Level 1 and are included in cash and cash equivalents on the consolidated balance sheets. At June 30, 2025 and December 31, 2024, Level 2 securities were priced by pricing vendors. These pricing vendors utilize the most recent observable market information in pricing these securities or, if specific prices are not available for these securities, use other observable inputs like market transactions involving identical or comparable securities. Certain non-marketable strategic investments measured at fair value on a non-recurring basis are classified as Level 3 as their fair value measurements may include a combination of observable and unobservable inputs.

Foreign currency derivative assets and liabilities are classified as Level 2 and are valued using observable inputs, such as quotations on forward and spot rates for currencies, interest rates and credit derivative market rates.

For certain other financial instruments, including accounts receivable, accounts payable, and other current liabilities, the carrying amounts approximate their fair value due to the relatively short maturity of these balances.

Restricted cash is comprised of money market funds related to landlord guarantees for leased facilities. These restricted cash balances have been excluded from our cash and cash equivalents balance in our consolidated balance sheets.