LEASES

12 Months Ended

Dec. 31, 2023

The Company primarily leases office space used 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, the date of acquisition for any leases acquired in connection with a business combination, or January 1, 2019, the date ASC Topic 842, Leases (“ASC 842”) was adopted, 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 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.

The following table presents the balances of ROU assets and lease liabilities within the balance sheet:


		December 31,
Leases	Balance Sheet Classification	2023		2022
		(In thousands)
Assets:
ROU assets	Other non-current assets	$	45,971	$	56,313

Liabilities:
Current lease liabilities	Accrued expenses and other current liabilities	$	17,797	$	16,328
Long-term lease liabilities	Other long-term liabilities	51,550		72,688
Total lease liabilities		$	69,347	$	89,016

The following table presents the net lease expense within the statement of operations:


		Years Ended December 31,
Lease Expense	Statement of Operations Classification	2023		2022		2021
		(In thousands)
Fixed lease expense	Cost of revenue	$	392	$	437	$	346
Fixed lease expense	Selling and marketing expense	116		2,669		7,305
Fixed lease expense	General and administrative expense	11,225		11,122		16,461
Fixed lease expense	Product development expense	399		492		1,232
Total fixed lease expense(a)		12,132		14,720		25,344

Variable lease expense	Selling and marketing expense	36		200		1,087
Variable lease expense	General and administrative expense	5,071		4,444		2,438
Variable lease expense	Product development expense	156		23		567
Total variable lease expense		5,263		4,667		4,092
Net lease expense		$	17,395	$	19,387	$	29,436

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(a) Includes (i) lease impairment charges of $0.7 million, $1.7 million, and $7.8 million, and (ii) sublease income of $4.3 million, $4.7 million, and $1.8 million for the years ended December 31, 2023, 2022, and 2021, respectively.

Maturities of lease liabilities as of December 31, 2023(b) are summarized below:


Years Ending December 31:	(In thousands)
2024	$	21,396
2025	17,581
2026	16,865
2027	12,488
2028	6,266
Thereafter	5,329
Total	79,925
Less: Interest	10,578
Present value of lease liabilities	$	69,347

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(b) At December 31, 2023 there were no legally binding minimum lease payments for leases signed but not yet commenced.

The following are the weighted average assumptions used for lease term and discount rate:


	December 31,
	2023		2022
Remaining lease term	4.4 years		5.3 years
Discount rate	6.59	%	6.19	%

The following is the supplemental cash flow information:


	Years Ended December 31,
	2023		2022		2021
	(In thousands)
ROU assets obtained in exchange for lease liabilities	$	6,696	$	2,911	$	2,848
Derecognition of ROU assets due to termination or modification	$	(5,266)	$	(772)	$	(1,555)
Cash paid for amounts included in the measurement of lease liabilities	$	25,806	$	22,484	$	23,285