Fair Value Measurements (Tables)

3 Months Ended

Mar. 31, 2023

Fair Value Disclosures [Abstract]

Summary of Cash, Cash Equivalents and Marketable Securities Held to Maturity

The following table summarizes the Company's cash, cash equivalents and marketable securities held to maturity as of March 31, 2023 and December 31, 2022 (amounts in thousands):

	As of March 31, 2023
	Amortized  Costs		Gross Unrealized Gains		Gross Unrealized Losses		Estimated Fair Value
Cash and cash equivalents:
Cash and money market funds	$	516,609	$	—	$	—	$	516,609
Total cash and cash equivalents		516,609		—		—		516,609
Marketable securities held to maturity:
U.S. treasury bills - short-term		101,409		58		—		101,467
Total cash, cash equivalents and marketable securities	$	618,018	$	58	$	—	$	618,076
	As of December 31, 2022
	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Estimated Fair Value
Cash and cash equivalents:
Cash and money market funds	$	523,458	$	—	$	—	$	523,458
Total cash and cash equivalents		523,458		—		—		523,458
Marketable securities held to maturity:
U.S. treasury bills - short-term		100,299		24		—		100,323
Total cash, cash equivalents and marketable securities	$	623,757	$	24	$	—	$	623,781

Schedule of Amortized Cost and Fair Value Held to Maturity Securities by Contractual Maturity

The amortized cost and the fair value of the Company's held to maturity securities by contractual maturity at March 31, 2023 and December 31, 2022 are summarized below:

	March 31, 2023				December 31, 2022
	Amortized  Costs		Estimated Fair Value		Amortized  Costs		Estimated Fair Value
Maturity of one year or less	$	101,409	$	101,467	$	100,299	$	100,323
Total	$	101,409	$	101,467	$	100,299	$	100,323

Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis

Financial assets and financial liabilities measured at fair value on a recurring basis consist of the following as of March 31, 2023 and December 31, 2022 (amounts in thousands):

	As of March 31, 2023
	Level 1		Level 2		Level 3		Total
Assets:
Money market accounts	$	339,044	$	—	$	—	$	339,044
Liabilities:
Short-term contingent consideration(1)	$	—	$	—	$	27,834	$	27,834
Long-term contingent consideration	$	—	$	—	$	38,910	$	38,910
	As of December 31, 2022
	Level 1		Level 2		Level 3		Total
Assets:
Money market accounts	$	343,929	$	—	$	—	$	343,929
Liabilities:
Short-term contingent consideration	$	—	$	—	$	13,950	$	13,950
Long-term contingent consideration	$	—	$	—	$	51,559	$	51,559

(1)The $27.8 million of short-term contingent consideration includes $14.5 million due and payable to the remaining securityholders of Avitide related to the First Earnout Year as defined in the Agreement and Plan of Merger and Reorganization with Avalon Merger Sub, Inc., which the Company entered into as part of the acquisition of Avitide in 2021. This amount is anticipated to be paid in the second quarter of 2023.

Schedule of Reconciliation of the Change in the Fair Value of Contingent Consideration - Earnout

A reconciliation of the change in the fair value of contingent consideration - earnout is included in the following table (amounts in thousands):

Balance at December 31, 2022	$	65,509
Increase in fair value of contingent consideration earnouts		1,235
Balance at March 31, 2023	$	66,744

Schedule of Contingent Consideration Earnout Expect to be Required to Settle Include Significant Unobservable Inputs

The recurring Level 3 fair value measurement of our contingent consideration earnout that we expect to be required to settle our 2023 and 2024 contingent consideration obligation include the following significant unobservable inputs (amounts in thousands, except percent data):

Contingent Consideration Earnout	Fair Value as of  March 31, 2023		Valuation Technique	Unobservable Input	Range	Weighted Average(1)
				Probability of
Commercialization-based			Monte Carlo	Success	100%	100%
payments	$	18,974	Simulation	Earnout Discount Rate	5.9%-6.1%	6.0%
				Volatility	23.6%	23.6%
Revenue and Volume-			Monte Carlo	Revenue & Volume
based payments	$	33,301	Simulation	Discount Rate	6.4%	6.4%
				Earnout Discount Rate	5.9%-6.1%	6.0%

Unobservable inputs were weighted by the relative fair value of the contingent consideration liability.