Leases (Tables)

9 Months Ended

Sep. 30, 2024

Leases

Schedule of operating and finance lease right-of-use assets and related lease obligations

		September 30,		December 31,
Leases	Classification	2024		2023
Assets		(in thousands)
Operating leases	Operating lease assets	$	30,391	$	30,716
Finance lease	Finance lease assets*		15,668		16,632
Total leased assets		$	46,059	$	47,348
Liabilities
Current
Operating	Other current liabilities	$	5,217	$	4,978
Finance	Current portion of finance lease obligation		1,399		1,511
Non-current
Operating	Other long-term liabilities		25,290		25,724
Finance	Finance lease obligation		42,671		43,674
Total lease liabilities		$	74,577	$	75,887
*Finance lease assets are recorded net of accumulated depreciation of $47.2 million and include $0.5 million of prepaid financing costs as of September 30, 2024. Finance lease assets are recorded net of accumulated depreciation of $46.4 million and include $0.6 million of prepaid financing costs as of December 31, 2023.

Schedule of lease costs

		Three months ended				Nine months ended
		September 30,				September 30,
Lease cost	Classification	2024		2023		2024		2023
Operating lease cost		(in thousands)
Product / services*	Cost of revenue	$	1,664	$	2,041	$	5,186	$	5,328
Research and development	Operating expenses		127		183		453		426
Sales and marketing*	Operating expenses		463		419		1,365		1,231
General and administrative*	Operating expenses		232		298		763		813
Total operating lease cost		$	2,486	$	2,941	$	7,767	$	7,798
Finance lease cost
Depreciation of leased assets	Cost of revenue, Research and development, Sales and marketing and General and administrative	$	321	$	324	$	964	$	961
Interest on lease liabilities	Interest expense		1,177		1,214		3,561		3,668
Total finance lease cost		$	1,498	$	1,538	$	4,525	$	4,629
Total lease cost		$	3,984	$	4,479	$	12,292	$	12,427
* Product / services, sales and marketing and general and administrative expense also includes short-term lease and variable lease costs of approximately $0.3 million and $1.6 million for the three and nine months ended September 30, 2024, respectively, and includes short-term lease and variable lease costs of approximately $0.6 million and $1.6 million for the three and nine months ended September 30, 2023, respectively.

Schedule of future minimum operating and finance leases

	Finance		Operating		Total
Maturity of Lease Liabilities	Leases		Leases		Leases
	(in thousands)
2024	$	1,566	$	1,937	$	3,503
2025		5,930		6,671		12,601
2026		6,008		5,106		11,114
2027		6,128		3,300		9,428
2028		6,251		2,013		8,264
Thereafter		55,336		23,220		78,556
Total lease payments	$	81,219	$	42,247	$	123,466
Less interest portion*		(37,149)		(11,740)		(48,889)
Finance lease and operating lease obligations	$	44,070	$	30,507	$	74,577
* Finance lease interest calculated using the implied interest rate; operating lease interest calculated using estimated corporate borrowing rate.

Schedule of weighted-average remaining lease term and discount rates

	September 30,
Lease term and discount rate	2024
Weighted-average remaining lease term (years):
Operating leases		10.8
Finance leases		12.3
Weighted-average discount rate:
Operating leases		5.5%
Finance leases		10.5%

Schedule of cash outflows by lease type

	Nine months ended September 30,
Cash paid for amounts included in the measurement of lease liabilities	2024		2023
	(in thousands)
Operating cash outflows from operating leases	$	7,767	$	7,798
Operating cash outflows from finance leases		3,561		3,668
Financing cash outflows from finance leases		1,125		915
Operating lease assets obtained in exchange for operating lease liabilities		4,063		25,697
Finance lease assets obtained in exchange for new finance lease liabilities		—		—