Fair Value Measurements

3 Months Ended

Mar. 31, 2023

Fair Value Disclosures [Abstract]

Fair Value Measurements

Fair Value Measurements

The following table represents the Company’s fair value hierarchy for its financial assets and liabilities (in thousands):

	Fair Value at March 31, 2023						Fair Value at December 31, 2022
Assets	Level 1		Level 2		Level 3		Level 1		Level 2		Level 3
Money market funds(1)	$	152,786	$	—	$	—	$	398,834	$	—	$	—
Government-backed securities(1)	—		296,000		—		—		296,000		—
Corporate debt securities(1)	—		4,991		—		—		—		—
Agency securities(1)	—		—		—		—		104,536		—
Total cash equivalents	$	152,786	$	300,991	$	—	$	398,834	$	400,536	$	—
Liabilities
5.00% Convertible notes due 2027	$	—	$	103,811	$	—	$	—	$	172,789	$	—
3.75% Convertible notes due 2023	—		—		—		—		322,111		—
Total convertible notes payable	$	—	$	103,811	$	—	$	—	$	494,900	$	—

(1)All investments are classified as Cash and cash equivalents as of March 31, 2023 and December 31, 2022, on the consolidated balance sheets.

Fixed-income investments categorized as Level 2 are valued at the custodian bank by a third-party pricing vendor’s valuation models that use verifiable observable market data, such as interest rates and yield curves observable at commonly quoted intervals and credit spreads, bids provided by brokers or dealers, or quoted prices of securities with similar characteristics. Pricing of the Company’s convertible notes has been estimated using observable inputs, including the price of the Company’s common stock, implied volatility, interest rates, and credit spreads.

During the three months ended March 31, 2023 and 2022, the Company did not have any transfers between levels.

The amount in the Company’s consolidated balance sheets for accounts payable and accrued expenses approximates its fair value due to its short-term nature.