LEASES

12 Months Ended

Dec. 31, 2021

The Company leases office space, data center facilities, and equipment in connection with its operations under various operating leases, the majority of which contain escalation clauses.

ROU assets represent the Company’s right to use the underlying assets for the lease term and lease liabilities represent the present value of the Company’s obligation to make payments arising from these leases. ROU assets and related lease liabilities are based on the present value of fixed lease payments over the lease term using the Company’s incremental borrowing rate on the lease commencement date or January 1, 2019 for leases that commenced prior to that date. The Company combines the lease and non-lease components of lease payments in determining ROU assets and related lease liabilities. If the lease includes one or more options to extend the term of the lease, the renewal option is considered in the lease term if it is reasonably certain the Company will exercise the option(s). Lease expense is recognized on a straight-line basis over the term of the lease. As permitted by ASC 842, leases with an initial term of twelve months or less (“short-term leases”) are not recorded on the accompanying consolidated balance sheet.

Variable lease payments consist primarily of common area maintenance, utilities, and taxes, which are not included in the recognition of ROU assets and related lease liabilities. The Company’s lease agreements do not contain any material residual value guarantees or material restrictive covenants.


		December 31,
Leases	Balance Sheet Classification	2021		2020
		(In thousands)
Assets:
Right-of-use assets	Other non-current assets	$	69,858	$	87,559

Liabilities:
Current lease liabilities	Accrued expenses and other current liabilities	17,098		15,700
Long-term lease liabilities	Other long-term liabilities	88,423		103,575
Total lease liabilities		$	105,521	$	119,275


		December 31,
Lease Cost	Income Statement Classification	2021		2020
		(In thousands)
Fixed lease cost	Cost of revenue	$	346	$	321
Fixed lease cost	Selling and marketing expense	7,305		9,913
Fixed lease cost	General and administrative expense	16,829		7,545
Fixed lease cost	Product development expense	1,232		1,848
Total fixed lease cost(a)		25,712		19,627
Variable lease cost	Cost of revenue	—		—
Variable lease cost	Selling and marketing expense	1,087		2,314
Variable lease cost	General and administrative expense	2,481		1,567
Variable lease cost	Product development expense	567		867
Total variable lease cost		4,135		4,748
Net lease cost		$	29,847	$	24,375

________________________________

(a) The years ended December 31, 2021 and 2020 includes $0.1 million and $0.04 million of short-term lease cost, respectively, and $1.8 million of sublease income for both years.

Maturities of lease liabilities as of December 31, 2021(b):


For Years Ending December 31:	(In thousands)
2022	$	22,818
2023	21,103
2024	19,825
2025	19,302
2026	18,377
Thereafter	25,050
Total	126,475
Less: Interest	20,954
Present value of lease liabilities	$	105,521

________________________________

(b) Lease payments exclude $1.2 million of legally binding minimum lease payments for leases signed but not yet commenced.

The following are the weighted average assumptions used for lease terms and discount rates as of December 31, 2021 and 2020:


	December 31,
	2021		2020
Remaining lease term	6.0 years		6.9 years
Discount rate	5.97	%	5.91	%


	December 31,
	2021		2020
	(In thousands)
Other information:
Right-of-use assets obtained in exchange for lease liabilities	$	3,143	$	326
Cash paid for amounts included in the measurement of lease liabilities	$	23,506	$	20,939