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Balance Sheet Components
 12 Months Ended
Dec. 31, 2023
Balance Sheet Related Disclosures [Abstract]  
Balance Sheet Components Balance Sheet Components
Property and Equipment, Net
Property and equipment, net consisted of the following as of December 31, 2023 and 2022:
(In thousands)20232022
Internal-use software and platform development$47,096 $33,273 
Leasehold improvements11,644 11,644 
Computer equipment and software6,605 6,514 
Office furniture and fixtures2,745 3,475 
Total property and equipment68,090 54,906 
Less: accumulated depreciation(40,950)(32,843)
Property and equipment, net$27,140 $22,063 
Depreciation expense related to property and equipment was $2.9 million, $3.2 million, and $3.7 million for the years ended December 31, 2023, 2022, and 2021, respectively.
The Company capitalized $13.8 million, $7.5 million, and $5.0 million of internal-use software and platform development costs during the years ended December 31, 2023, 2022, and 2021, respectively.
Amortization expense related to the capitalized internal-use software and platform development costs was $6.5 million for the year ended December 31, 2023, of which $4.5 million was included in cost of revenue related to developed technology used on the work marketplace. Amortization expense related to the capitalized internal-use software and platform development costs was $4.9 million for the year ended December 31, 2022, of which $2.7 million was included in cost of revenue related to developed technology used on the work marketplace. Amortization expense related to the capitalized internal-use software and platform development costs was $5.9 million for the year ended December 31, 2021, of which $3.8 million was included in cost of revenue related to developed technology used on the work marketplace.
Intangible Assets, Net
In November 2023, the Company purchased certain assets, namely an assembled workforce. The assembled workforce is presented as an intangible asset on the Company’s consolidated balance sheet and amortized over two years. For the year ended December 31, 2023, amortization expense of intangible assets was immaterial. For the year ended December 31, 2022, there was no amortization expense. For the year ended December 31, 2021, amortization expense of intangible assets acquired in a 2014 business combination was $0.7 million. As of December 31, 2023, the remaining useful life for the assembled workforce intangible asset was 1.92 years.
Accrued Expenses and Other Current Liabilities
Accrued expenses and other current liabilities consisted of the following as of December 31, 2023 and 2022:
(In thousands)20232022
Accrued compensation and related benefits$25,872 $17,239 
Accrued indirect taxes13,171 14,102 
Accrued vendor expenses8,844 8,858 
Operating lease liability, current5,687 6,502 
Accrued payment processing fees2,090 2,425 
Accrued talent costs1,415 2,352 
Other1,113 2,133 
Total accrued expenses and other current liabilities$58,192 $53,611 
Operating Leases
The Company leases office space and certain equipment under various operating leases, with the vast majority of its lease portfolio consisting of operating leases for office space. The Company has also entered into arrangements where it acts as a sublessor in its leases of office space. The Company has not entered into any significant finance, sales-type, or direct financing leases.
The Company’s significant judgments include determining whether an arrangement is or contains a lease, the determination of the discount rate used to calculate the lease liability, and whether or not lease incentives are reasonably certain to occur in the initial measurement of the lease liability. Operating lease assets and lease liabilities are recognized at commencement date and initially measured based on the present value of lease payments over the defined lease term. Lease expense is recognized on a straight-line basis over the lease term.
A contract is or contains an embedded lease if the contract meets all of the below criteria:
•There is an identified asset;
•The Company has the right to obtain substantially all of the economic benefit of the asset; and
•The Company has the right to direct the use of the asset.
For initial measurement of the present value of lease payments and for subsequent measurement of lease modifications, the Company is required to use the rate implicit in the lease. Since the majority of the Company’s leases do not provide an implicit rate, the Company uses its incremental borrowing rate, which is a collateralized rate. The application of the incremental borrowing rate is performed on a lease-by-lease basis and approximates the rate at which the Company could borrow, on a secured basis for a similar term, an amount equal to its lease payments in a similar economic environment.
The Company’s leases have remaining lease terms of approximately one year to five years. The Company includes lease payments associated with renewal options in its operating lease asset and liability only when it becomes reasonably certain the company will exercise the renewal option. The Company has not included renewal options for any of its operating leases in its determination of lease liabilities. The Company does not have lease agreements with residual value guarantees, sale leaseback terms, or material restrictive covenants. Leases with an initial term of 12 months or less are not recognized on the consolidated balance sheet. The Company recognizes lease expense for these leases on a straight-line basis over the lease term.
The following table summarizes the Company’s operating lease assets and lease liabilities as of December 31, 2023 and 2022:
(In thousands)
Balance Sheet and Cash Flow Classification20232022
Assets
Operating—noncurrentOperating lease asset$4,333 $7,603 
Liabilities
Operating—currentAccrued expenses and other current liabilities5,687 6,502 
Operating—noncurrentOperating lease liability, noncurrent6,088 11,177 
Total lease liabilities$11,775 $17,679 
For the years ended December 31, 2023, 2022, and 2021, operating lease cost, inclusive of variable lease charges, was $6.3 million, $6.6 million, and $6.0 million, respectively, and sublease income recognized was approximately $1.7 million, $1.6 million, and $0.5 million, respectively. For the years ended December 31, 2023, 2022, and 2021, charges related to operating leases that are variable, and therefore not included in the measurement of the lease liabilities, were $2.2 million, $2.2 million, and $1.2 million, respectively. For the years ended December 31, 2023, 2022, and 2021, the Company made lease payments of $6.8 million, $6.6 million, and $6.4 million, respectively.
San Francisco Sublease and Santa Clara Sub-Sublease
In November 2023, the Company amended its sub-sublease agreement that was executed in April 2021 to sublease the entirety of its former headquarters in Santa Clara, California. The terms of the amended sub-sublease extends the sub-sublease an additional 51 months through August 31, 2028, unless terminated earlier. The amended sub-sublease term comprises substantially all of the remaining term of the Company’s master lease. Rent payments approximate $0.1 million per month and are recorded within general and administrative expenses within the Company’s consolidated statements of operations and comprehensive income (loss). Neither party has the option to renew or extend the sub-sublease agreement.
In December 2021, the Company executed a sublease agreement to sublease one of the two suites that the Company is currently leasing as its current headquarters in San Francisco, California. The suite that was not subleased continues to be utilized by the Company as its headquarters, as it was prior to entering into the sublease agreement. The term of the sublease expires on August 31, 2024, unless terminated earlier in accordance
therewith. Rent payments began on March 1, 2022 and approximate $0.1 million per month. Rent payments are recorded within general and administrative expenses within the Company’s consolidated statements of operations and comprehensive income (loss). Neither party has the option to renew or extend the sublease agreement.
Under both of these sublease agreements, the Company is not relieved of its original obligation with the master lessor, which expires on August 31, 2024 for the San Francisco lease and October 15, 2028 for the Santa Clara lease. The Company determined the sublease agreements are an operating lease, which is consistent with the classification of the original subleases with the landlords. As a result of the execution of the 2021 sublease agreements, the Company determined that indicators of impairment existed with respect to the asset group that consisted of the operating lease asset and related leasehold improvements associated with the suites being subleased. Accordingly, the Company conducted an impairment test to assess whether the fair value of the asset group was lower than its carrying value. The results of the impairment test indicated that the fair value of the asset group was lower than its carrying value. The Company determined the fair value of the asset group using the discounted cash flow method. The assumptions used in the discounted cash flow analysis included projected sublease income over the remaining term of the original lease with the landlord and a discount rate the Company believes reflects the level of risk associated with these future cash flows. The Company considers these assumptions to be Level III inputs in accordance with the fair value hierarchy described in “Note 4—Fair Value Measurements.” As a result, during the year ended December 31, 2021, the Company recorded impairment charges of $8.7 million, which are included in general and administrative expenses within its consolidated statement of operations and comprehensive income (loss).

The following table shows the Company’s future lease commitments due in each of the next five years for operating leases, which excludes amounts received in the form of sublease income discussed above:
(In thousands)
Year Ended December 31,Leases
2024$5,843 
20252,356 
20261,729 
20271,781 
20281,427 
Total lease payments13,136 
Adjustment for discount to present value(1,361)
Total$11,775 
As of December 31, 2023, the weighted-average remaining lease term is 3.3 years. For the year ended December 31, 2023, the weighted-average discount rate is 5.90%.