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Investments and Fair Value Measurements
9 Months Ended
Sep. 30, 2024
Fair Value Disclosures [Abstract]  
Investments and Fair Value Measurements Investments and Fair Value Measurements
The Company's total cash, cash equivalents and marketable securities consisted of the following:
As of September 30, 2024As of December 31, 2023
(in thousands)
Cash and cash equivalents:
Cash$18,245 $21,269 
U.S. Treasury securities49,789 52,830 
Money market funds149,480 21,166 
Commercial paper— 12,656 
Total cash and cash equivalents(1)
$217,514 $107,921 
Marketable securities:
U.S. Treasury securities$37,557 $73,448 
Corporate notes and bonds26,451 105,566 
Commercial paper26,725 25,934 
Agency bonds— 9,851 
Total marketable securities, current(2)
$90,733 $214,799 
Corporate notes and bonds— 5,999 
Asset-backed securities— 89 
Total marketable securities, non-current(3)
$— $6,088 
Total marketable securities$90,733 $220,887 
Total cash and cash equivalents and marketable securities$308,247 $328,808 
(1) The Company’s cash equivalents include investments with an original maturity date of three months or less.
(2) The Company classifies its marketable securities as current, where it intends to hold the securities for less than 12 months.
(3) The Company classifies its marketable securities are non-current, where it intends to hold the securities for longer than 12 months.
The following table summarizes adjusted cost, gross unrealized gains and losses, and fair value related to cash equivalents and available-for-sale securities on the accompanying condensed consolidated balance sheets as of September 30, 2024 and December 31, 2023:
As of September 30, 2024
Amortized
Cost
Gross
Unrealized
Gain
Gross
Unrealized
Loss
Fair
Value
(in thousands)
Cash equivalents:
Money market funds$149,480 $— $— $149,480 
U.S. Treasury securities49,773 16 — 49,789 
Marketable securities:
U.S. Treasury securities37,530 27 — 37,557 
Corporate notes and bonds26,450 (8)26,451 
Commercial paper26,712 14 (1)26,725 
Total$289,945 $66 $(9)$290,002 
As of December 31, 2023
Amortized
Cost
Gross
Unrealized
Gain
Gross
Unrealized
Loss
Fair
Value
(in thousands)
Cash equivalents:
U.S. Treasury securities$52,824 $$— $52,830 
Commercial paper12,663 — (7)12,656 
Marketable securities:
U.S. Treasury securities73,444 (4)73,448 
Corporate notes and bonds112,487 (931)111,565 
Commercial paper25,946 — (12)25,934 
Asset-backed securities89 — — 89 
Agency bonds9,854 — (3)9,851 
Total $287,307 $23 $(957)$286,373 
There were no material realized gains or losses from sales of marketable securities that were reclassified out of accumulated other comprehensive loss into other income during the three and nine months ended September 30, 2024 and 2023. Investments are reviewed periodically to identify possible other-than-temporary impairments. For the three and nine months ended September 30, 2024 and 2023, the Company did not record any impairment charges for its marketable debt securities in its condensed consolidated statements of operations. No impairment loss has been recorded on the securities as the Company does not intend to sell any impaired securities, nor is it more likely than not that the Company would be required to sell impaired securities before recovery of amortized cost basis. Furthermore, the Company has determined that the decline in fair value of the investment is not due to credit related factors.
Fair Value of Financial Instruments
For certain of the Company's financial instruments, including cash held in banks, accounts receivable, and accounts payable, the carrying amounts approximate fair value due to their short maturities, and are therefore excluded from the fair value tables below.
Fair value is defined as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. There is a three-tier fair value hierarchy, which prioritizes the inputs used in measuring fair value as follows:
Level 1—Observable inputs such as quoted prices in active markets for identical assets or liabilities;
Level 2—Inputs other than Level 1 that are observable, either directly or indirectly, such as quoted prices for similar assets or liabilities, quoted prices in markets that are not active, or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities; and
Level 3—Unobservable inputs that are supported by little or no market activity, which require management judgment or estimation.
The Company measures its cash equivalents, marketable securities, and restricted cash at fair value. The Company classifies its cash equivalents, marketable securities and restricted cash within Level 1 or Level 2 because the Company values these investments using quoted market prices or alternative pricing sources and models utilizing market observable inputs.
The Company classifies its investments, which are comprised of corporate notes and bonds, U.S. treasury securities, foreign government and supranational securities and asset-backed securities within Level 2 of the fair value hierarchy because the fair value of these securities is priced by using inputs based on non-binding market consensus prices that are primarily corroborated by observable market data or quoted market prices for similar instruments.
Financial assets and liabilities measured and recorded at fair value on a recurring basis consisted of the following types of instruments:
As of September 30, 2024
Level 1Level 2Level 3Total
(in thousands)
Cash equivalents:
Money market funds$149,480 $— $— $149,480 
U.S. Treasury securities— 49,789 — 49,789 
Total cash equivalents149,480 49,789 — 199,269 
Marketable securities:
U.S. Treasury securities— 37,557 — 37,557 
Corporate notes and bonds— 26,451 — 26,451 
Commercial paper— 26,725 — 26,725 
Total marketable securities— 90,733 — 90,733 
Total financial assets$149,480 $140,522 $— $290,002 
As of December 31, 2023
Level 1Level 2Level 3Total
(in thousands)
Cash equivalents:
Money market funds$21,166 $— $— $21,166 
U.S. Treasury securities— 52,830 — 52,830 
Commercial paper— 12,656 — 12,656 
Total cash equivalents21,166 65,486 — 86,652 
Marketable securities:
U.S. Treasury securities— 73,448 — 73,448 
Corporate notes and bonds— 111,565 — 111,565 
Commercial paper— 25,934 — 25,934 
Asset-backed securities— 89 — 89 
Agency bonds— 9,851 — 9,851 
Total marketable securities— 220,887 — 220,887 
Restricted cash:
Restricted cash, current150 — — 150 
Total restricted cash150 — — 150 
Total financial assets$21,316 $286,373 $— $307,689 
The Company had no restricted cash as of September 30, 2024. The restricted cash balance as of December 31, 2023 was $0.2 million and consisted of letters of credit related to lease arrangements that were collateralized by the Company’s cash. The amount was classified as current on the Company’s balance sheets.
There were no transfers of assets and liabilities measured at fair value between Level 1 and Level 2, or between Level 2 and Level 3, during the three and nine months ended September 30, 2024 and 2023.