Fair value measurement

12 Months Ended

Sep. 30, 2020

Fair Value Disclosures [Abstract]

Fair value measurement

3. Fair value measurement

The Company assesses the fair value of financial instruments based on the provisions of ASC 820, Fair Value Measurements. ASC 820 defines fair value 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. ASC 820 also establishes a fair value hierarchy which requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. The standard describes three levels of inputs that may be used to measure fair value:

Level 1—Quoted prices in active markets for identical assets or liabilities.

Level 2—Observable inputs other than Level 1 prices 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.

Level 3—Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities.

In determining fair value, the Company utilizes valuation techniques that maximize the use of observable inputs and minimize the use of unobservable inputs to the extent possible as well as considers counterparty credit risk in its assessment of fair value.

The following table sets forth the cash and cash equivalents, and short-term investments as of September 30, 2020:

(in thousands)	Amortized cost		Gross unrealized gains		Gross unrealized losses		Fair value
Cash and cash equivalents	$	93,667	$	—	$	—	$	93,667
Short-term investments		196,320		15		—		196,335
Total	$	289,987	$	15	$	—	$	290,002

The following table sets forth the cash and cash equivalents, and short-term investments as of September 30, 2019:

(in thousands)	Amortized cost		Gross unrealized gains		Gross unrealized losses		Fair value
Cash and cash equivalents	$	46,735	$	—	$	—	$	46,735
Short-term investments		91,323		49		—		91,372
Total	$	138,058	$	49	$	—	$	138,107

As of September 30, 2020, financial assets and liabilities measured and recognized at fair value are as follows:

(in thousands)	Level 1		Level 2		Level 3		Fair value
Assets
Cash and cash equivalents	$	20,254	$	—	$	—	$	20,254
Money market funds		73,413		—		—		73,413
Commercial paper		—		94,840		—		94,840
U.S. government treasury bills		101,495		—		—		101,495
Total	$	195,162	$	94,840	$	—	$	290,002

As of September 30, 2019, financial assets and liabilities measured and recognized at fair value are as follows:

(in thousands)	Level 1		Level 2		Level 3		Fair value
Assets
Cash and cash equivalents	$	19,344	$	—	$	—	$	19,344
Money market funds		27,390		—		—		27,390
Corporate bonds		—		8,530		—		8,530
Commercial paper		—		28,361		—		28,361
U.S. government treasury bills		54,482		—		—		54,482
Total	$	101,216	$	36,891	$	—	$	138,107

Contractual maturities of short-term investments, as of September 30, 2020, were less than 12 months. 

Redeemable convertible preferred stock warrants

The following table provides a reconciliation of beginning and ending balances of the Level 3 instruments during the years ended September 30, 2020, 2019 and 2018:

(in thousands)	Series A			Series B			Series C			Series D			Total
Redeemable convertible preferred stock warrant liability:
Fair value as of September 30, 2017	$	331		$	110		$	152		$	51		$	644
Change in fair value recorded in other income (expense), net		34			(16	)		(22	)		(9	)		(13	)
Fair value as of September 30, 2018	$	365		$	94		$	130		$	42		$	631
Change in fair value recorded in other income (expense), net		(365	)		(94	)		(130	)		(42	)		(631	)
Fair value as of September 30, 2019	$	—		$	—		$	—		$	—		$	—
Change in fair value recorded in other income (expense), net		—			—			—			—			—
Fair value as of September 30, 2020	$	—		$	—		$	—		$	—		$	—