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Cash and Cash Equivalents, Investments and Fair Value Measurements
 6 Months Ended
Jun. 30, 2023
Cash and Cash Equivalents [Abstract]  
Cash and Cash Equivalents, Investments and Fair Value Measurements Cash and Cash Equivalents, Investments and Fair Value Measurements
The following tables show our cash and cash equivalents, and investments’ fair value level classification, adjusted cost, unrealized gain, unrealized loss and fair value as of June 30, 2023 and December 31, 2022 (in thousands except for fair value levels):
 June 30, 2023
 Fair Value LevelAdjusted CostUnrealized GainUnrealized LossFair Value
Cash and cash equivalents:   
Cash$38,597 $— $— $38,597 
Money market fundsLevel 1136,771 — — 136,771 
Total cash and cash equivalents$175,368 $— $— $175,368 
Short-term investments:   
Corporate debt securitiesLevel 2$106,429 $— $(805)$105,624 
U.S. treasury securitiesLevel 130,063 — (32)30,031 
Agency bondsLevel 274,496 — (465)74,031 
Total short-term investments$210,988 $— $(1,302)$209,686 
Long-term investments:   
Corporate debt securitiesLevel 2$195,372 $10 $(1,736)$193,646 
U.S. treasury securitiesLevel 198,946 — (1,168)97,778 
Agency bondsLevel 2133,017 — (1,683)131,334 
Total long-term investments$427,335 $10 $(4,587)$422,758 

 December 31, 2022
 Fair Value LevelAdjusted CostUnrealized GainUnrealized LossFair Value
Cash and cash equivalents:   
Cash$33,532 $— $— $33,532 
Money market fundsLevel 1440,145 — — 440,145 
Total cash and cash equivalents$473,677 $— $— $473,677 
Short-term investments:   
Commercial paperLevel 2$11,744 $— $(29)$11,715 
Corporate debt securitiesLevel 2491,459 — (4,130)487,329 
U.S. treasury securitiesLevel 185,271 — (342)84,929 
Total short-term investments$588,474 $— $(4,501)$583,973 
Long-term investments:   
Corporate debt securitiesLevel 2$125,735 $158 $(909)$124,984 
U.S. treasury securitiesLevel 130,633 122 — 30,755 
Agency bondsLevel 260,635 — (141)60,494 
Total long-term investments$217,003 $280 $(1,050)$216,233 

As of June 30, 2023, we determined that the unrealized losses on our investments were not driven by credit related factors. During the three and six months ended June 30, 2023 and 2022, we did not recognize any losses on our investments due to credit related factors. During the three and six months ended June 30, 2023 and 2022, our realized gains and losses on investments were not significant.
The following table shows our cash equivalents and investments' adjusted cost and fair value by contractual maturity as of June 30, 2023 (in thousands):
 Adjusted CostFair Value
Due within one year$210,988 $209,686 
Due after one year through three years427,335 422,758 
Investments not due at a single maturity date136,771 136,771 
Total$775,094 $769,215 

Investments not due at a single maturity date in the preceding table consisted of money market funds.

Strategic Investments

In May 2023, we entered into a $15.0 million commitment to invest in Sound Ventures AI Fund, L.P. (Sound Ventures), a limited partnership that invests in artificial intelligence companies, for an approximate 6% ownership. We accounted for our investment under the equity method of accounting. During the three months ended June 30, 2023, we funded $9.6 million of our investment commitment. As part of the conditions for entering into the investment, we are contractually required to provide additional investment commitments. As of June 30, 2023, we have unfunded investment commitments of $5.4 million, which can be issued at any time within five years of the commencement of the partnership, which occurred in February 2023.

In July 2022, we completed an investment of $6.0 million in Knack Technologies, Inc. (Knack), a privately held U.S. based peer-to-peer tutoring platform for higher education institutions. We do not have the ability to exercise significant influence over Knack's operating and financial policies and have elected to account for our investment at cost as it does not have a readily determinable fair value. We did not record any impairment charges during the three and six months ended June 30, 2023, as there were no significant identified events or changes in circumstances that would be considered an indicator for impairment. There were no observable price changes in orderly transactions for the identical or similar investments of the same issuer during the three and six months ended June 30, 2023.

Financial Instruments Not Recorded at Fair Value on a Recurring Basis

We report our financial instruments at fair value with the exception of the notes. The estimated fair value of the notes was determined based on the trading price of the notes as of the last day of trading for the period. We consider the fair value of the notes to be a Level 2 measurement due to the limited trading activity. The estimated fair value of the 2026 notes as of June 30, 2023 and December 31, 2022 was $312.7 million and $385.0 million, respectively. The estimated fair value of the 2025 notes as of June 30, 2023 and December 31, 2022 was $318.5 million and $640.5 million, respectively. For further information on the notes, refer to Note 5, “Convertible Senior Notes.”