Fair Value Measurements (Tables)

9 Months Ended

Sep. 30, 2020

Fair Value Disclosures [Abstract]

Assets measured at fair value on recurring basis

The following tables summarize assets and liabilities recognized or disclosed at fair value on a recurring basis as of September 30, 2020 and December 31, 2019 (in thousands):

	September 30, 2020
	Level 1		Level 2		Level 3		Total
Assets:
Cash equivalents:
U.S. Treasuries	$	—	$	13,799	$	—	$	13,799
Money market funds	39,536		—		—		39,536
Certificate of deposits	—		3,008		—		3,008
Commercial paper	—		21,648		—		21,648
Marketable securities:
U.S. Treasuries	—		27,896		—		27,896
Commercial paper	—		101,951		—		101,951
U.S. Government-sponsored enterprises debt securities	—		6,219		—		6,219
Corporate debt securities	—		50,357		—		50,357
Certificate of deposits	—		41,284		—		41,284
Total assets(1)	$	39,536	$	266,162	$	—	$	305,698
Liabilities:
Common stock warrant liabilities	$	—	$	—	$	9	$	9
Contingent consideration liabilities	—		—		54,900		54,900
Total liabilities	$	—	$	—	$	54,909	$	54,909

	December 31, 2019
	Level 1		Level 2		Level 3		Total
Assets:
Cash equivalents:
Money market funds	$	11,527	$	—	$	—	$	11,527
Commercial paper	—		7,485		—		$	7,485
Marketable securities:
Commercial paper	—		73,366		—		73,366
Corporate debt securities	—		74,417		—		74,417
Certificate of deposits	—		41,302		—		41,302
Total assets(1)	$	11,527	$	196,570	$	—	$	208,097
Liabilities:
Common stock warrant liabilities	$	—	$	—	$	198	$	198
Contingent consideration liabilities	—		—		63,800		63,800
Total liabilities	$	—	$	—	$	63,998	$	63,998

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(1)Fair value is determined by taking into consideration valuations obtained from third-party pricing services. The third-party pricing services utilize industry standard valuation models, for which all significant inputs are observable, either directly or indirectly, to estimate fair value. These inputs include reported trades of and broker/dealer quotes on the same or similar securities; issuer credit spreads; benchmark securities; and other observable inputs.

Liabilities measured at fair value on recurring basis

The following tables summarize assets and liabilities recognized or disclosed at fair value on a recurring basis as of September 30, 2020 and December 31, 2019 (in thousands):

	September 30, 2020
	Level 1		Level 2		Level 3		Total
Assets:
Cash equivalents:
U.S. Treasuries	$	—	$	13,799	$	—	$	13,799
Money market funds	39,536		—		—		39,536
Certificate of deposits	—		3,008		—		3,008
Commercial paper	—		21,648		—		21,648
Marketable securities:
U.S. Treasuries	—		27,896		—		27,896
Commercial paper	—		101,951		—		101,951
U.S. Government-sponsored enterprises debt securities	—		6,219		—		6,219
Corporate debt securities	—		50,357		—		50,357
Certificate of deposits	—		41,284		—		41,284
Total assets(1)	$	39,536	$	266,162	$	—	$	305,698
Liabilities:
Common stock warrant liabilities	$	—	$	—	$	9	$	9
Contingent consideration liabilities	—		—		54,900		54,900
Total liabilities	$	—	$	—	$	54,909	$	54,909

	December 31, 2019
	Level 1		Level 2		Level 3		Total
Assets:
Cash equivalents:
Money market funds	$	11,527	$	—	$	—	$	11,527
Commercial paper	—		7,485		—		$	7,485
Marketable securities:
Commercial paper	—		73,366		—		73,366
Corporate debt securities	—		74,417		—		74,417
Certificate of deposits	—		41,302		—		41,302
Total assets(1)	$	11,527	$	196,570	$	—	$	208,097
Liabilities:
Common stock warrant liabilities	$	—	$	—	$	198	$	198
Contingent consideration liabilities	—		—		63,800		63,800
Total liabilities	$	—	$	—	$	63,998	$	63,998

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(1)Fair value is determined by taking into consideration valuations obtained from third-party pricing services. The third-party pricing services utilize industry standard valuation models, for which all significant inputs are observable, either directly or indirectly, to estimate fair value. These inputs include reported trades of and broker/dealer quotes on the same or similar securities; issuer credit spreads; benchmark securities; and other observable inputs.

Reconciliation of liabilities measured at fair value using significant unobservable inputs (Level 3)

The following table provides a reconciliation of our contingent consideration liability measured at fair value on a recurring basis using significant unobservable inputs (Level 3) for the three and nine months ended September 30, 2020 and 2019 (in thousands):

	Three Months Ended September 30,				Nine Months Ended September 30,
	2020		2019		2020		2019
Balance at beginning of period	$	53,100	$	70,500	$	63,800	$	78,200
Change in fair value	1,800		400		6,100		2,700
Settlements	—		—		(15,000)		(10,000)
Balance at end of period	$	54,900	$	70,900	$	54,900	$	70,900

Significant inputs used in fair value measurement

The following table summarizes the significant unobservable inputs used in the fair value measurement of our contingent consideration liabilities as of September 30, 2020.

Fair Value as of September 30, 2020 (in thousands)	Valuation Technique	Unobservable Input	Range	Weighted Average(1)
$54,900	Discounted cash flow	Discount rate	3.6% — 10.1%	5.5%
		Probability of payment	0% — 94.3%	94.3%
		Projected year of payment	2021 — 2030	2022

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(1)Unobservable inputs were weighted by the relative fair value of the contingent consideration liability.