0001544522-24-000012 | 10-K | XBRL Viewer

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Income Taxes - Narrative (Details) - USD ($) $ in Thousands	12 Months Ended
Income Taxes - Narrative (Details) - USD ($) $ in Thousands	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2021
Income Tax Examination [Line Items]
Increase in valuation allowance	$ 8,700	$ 56,200
Gross unrecognized tax benefits	5,634	3,647	$ 2,227
Accrued interest	1,400	$ 800
Domestic Tax Authority
Income Tax Examination [Line Items]
Net operating loss carryforwards	341,800
State and Local Jurisdiction
Income Tax Examination [Line Items]
Net operating loss carryforwards	147,200
Foreign Tax Authority
Income Tax Examination [Line Items]
Tax credit carryforward, amount	$ 6,000

Leases - Schedule of Lease Cost (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2023	Dec. 31, 2022
Leases [Abstract]
Operating lease cost	$ 10,415	$ 8,312
Short-term lease cost	415	1,162
Variable lease cost	$ 3,190	$ 2,797

Revenue from Contracts with Customers

12 Months Ended

Dec. 31, 2023

Revenue from Contract with Customer [Abstract]

Revenue from Contracts with Customers

3. Revenue From Contracts with Customers

Disaggregation of Revenue

The following table summarizes revenue by the Company’s service offerings (in thousands):


	Year Ended December 31,
	2023		2022		2021
Subscription services	$	582,868	$	485,322	$	360,506
Professional services	13,564		12,677		10,516
Total revenue	$	596,432	$	497,999	$	371,022

See Note 12 for revenue by geographic location.

Deferred Revenue and Remaining Performance Obligations

Deferred revenue consists of customer billings in advance of revenue being recognized from the Company’s subscription and professional services arrangements. The following table summarizes the changes in the balance of deferred revenue during the years (in thousands):


	Year Ended December 31,
	2023		2022		2021
Balance at beginning of the year	$	205,626	$	160,173	$	104,184
Add: Billings during the year	657,205		543,452		427,011
Less: Revenue recognized during the year	(596,432)		(497,999)		(371,022)
Balance at end of the year	$	266,399	$	205,626	$	160,173

Revenue recognized during the years ended December 31, 2023, 2022, and 2021 from amounts included in deferred revenue at the beginning of these periods was $204.8 million, $158.7 million, and $103.8 million, respectively.

The aggregate balance of remaining performance obligations as of December 31, 2023 was $418.9 million. The Company expects to recognize $309.8 million of the balance as revenue in the next 12 months and the remainder thereafter. The aggregate balance of remaining performance obligations represents contracted revenue that has not yet been recognized, which includes unearned revenue and unbilled amounts that will be recognized as revenue in future periods.

Deferred Contract Acquisition Costs

The change in the balance of deferred contract acquisition costs during the periods presented is as follows (in thousands):


	Year Ended December 31,
	2023		2022		2021
Balance at beginning of the year	$	39,675	$	29,647	$	18,273
Add: Contract costs capitalized during the year	26,962		28,560		24,218
Less: Amortization of contract costs during the year	(23,965)		(18,532)		(12,844)
Balance at end of the year	$	42,672	$	39,675	$	29,647

- Definition

The entire disclosure of revenue from contract with customer to transfer good or service and to transfer nonfinancial asset. Includes, but is not limited to, disaggregation of revenue, credit loss recognized from contract with customer, judgment and change in judgment related to contract with customer, and asset recognized from cost incurred to obtain or fulfill contract with customer. Excludes insurance and lease contracts.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Topic 606
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 9
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147479806/606-10-50-9

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Topic 606
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 10
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147479806/606-10-50-10

Reference 3: http://www.xbrl.org/2003/role/disclosureRef
-Topic 606
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 15
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147479806/606-10-50-15

Reference 4: http://www.xbrl.org/2003/role/disclosureRef
-Topic 606
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-Name Accounting Standards Codification
-Section 50
-Paragraph 12
-Subparagraph (a)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147479806/606-10-50-12

Reference 5: http://www.xbrl.org/2003/role/disclosureRef
-Topic 606
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 12
-Subparagraph (b)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147479806/606-10-50-12

Reference 6: http://www.xbrl.org/2003/role/disclosureRef
-Topic 606
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 12
-Subparagraph (c)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147479806/606-10-50-12

Reference 7: http://www.xbrl.org/2003/role/disclosureRef
-Topic 606
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 12
-Subparagraph (d)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147479806/606-10-50-12

Reference 8: http://www.xbrl.org/2003/role/disclosureRef
-Topic 606
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-Name Accounting Standards Codification
-Section 50
-Paragraph 12
-Subparagraph (e)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147479806/606-10-50-12

Reference 9: http://www.xbrl.org/2003/role/disclosureRef
-Topic 606
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 13
-Subparagraph (b)(2)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147479806/606-10-50-13

Reference 10: http://www.xbrl.org/2003/role/disclosureRef
-Name Accounting Standards Codification
-Topic 606
-Publisher FASB
-URI https://asc.fasb.org//606/tableOfContent

+ Details

Balance Sheet Components - Property, Plant, and Equipment (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2021
Property, Plant and Equipment [Line Items]
Total property and equipment	$ 66,017	$ 56,443
Less: accumulated depreciation and amortization	(43,270)	(32,304)
Property and equipment, net	22,747	24,139
Capitalization of costs associated with internal-use software	8,029	6,781	$ 4,137
Amortization expense of capitalized internal-use software	5,106	3,193	2,542
Depreciation expense	6,735	6,720	$ 6,423
Computers
Property, Plant and Equipment [Line Items]
Total property and equipment	17,188	16,552
Capitalized internal-use software
Property, Plant and Equipment [Line Items]
Total property and equipment	28,259	20,230
Office equipment
Property, Plant and Equipment [Line Items]
Total property and equipment	4,357	3,744
Furniture and fixtures
Property, Plant and Equipment [Line Items]
Total property and equipment	8,886	8,881
Motor vehicles
Property, Plant and Equipment [Line Items]
Total property and equipment	808	1,158
Leasehold improvements
Property, Plant and Equipment [Line Items]
Total property and equipment	5,768	5,654
Construction in progress
Property, Plant and Equipment [Line Items]
Total property and equipment	$ 751	$ 224

Balance Sheet Components - Accrued and Other Liabilities (Details) - USD ($) $ in Thousands	Dec. 31, 2023	Dec. 31, 2022
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Accrued compensation	$ 20,976	$ 20,192
Accrued third-party cloud infrastructure expenses	0	2,752
Accrued reseller commissions	9,641	7,731
Accrued advertising and marketing expenses	2,095	4,465
Advanced payments from customers	4,265	3,480
Accrued taxes	10,964	7,730
Operating lease liabilities, current	2,699	6,775
Contributions withheld for employee stock purchase plan	1,298	1,546
Other accrued expenses	4,670	4,337
Total accrued liabilities	$ 56,608	$ 59,008
Operating Lease, Liability, Current, Statement of Financial Position [Extensible Enumeration]	Total accrued liabilities	Total accrued liabilities

Income Taxes - Components of Provision for Income Tax (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2021
Current:
Domestic	$ 2,810	$ 2,137	$ 2,876
Foreign	12,179	11,610	9,547
Deferred:
Domestic	0	0	0
Foreign	(1,322)	(2,405)	(1,907)
Provision for income taxes	$ 13,667	$ 11,342	$ 10,516

- Definition

Amount of current income tax expense (benefit) and deferred income tax expense (benefit) pertaining to continuing operations.

+ References + Details

Summary of Significant Accounting Policies (Policies)

12 Months Ended

Dec. 31, 2023

Accounting Policies [Abstract]

Basis of Presentation and Principles of Consolidation

The accompanying consolidated financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America (GAAP). The consolidated financial statements include the accounts of the Company and its wholly owned subsidiaries, and all intercompany balances and transactions have been eliminated in consolidation.

Foreign Currency Remeasurement and Transactions

The functional currency of the Company’s foreign subsidiaries is the U.S. dollar. Accordingly, each foreign subsidiary remeasures monetary assets and liabilities at period-end exchange rates, while non-monetary items are remeasured at historical rates. Revenues and expenses are remeasured at the exchange rates in effect on the day the transaction occurred, except for those expenses related to non-monetary assets and liabilities, which are remeasured at historical exchange rates.

Use of Estimates

The preparation of consolidated financial statements in accordance with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities at the

date of the consolidated financial statements, and the reported amounts of income and expense during the reporting periods. Significant items subject to such estimates and assumptions include, but are not limited to, the following:

•determination of standalone selling price (SSP) for each distinct performance obligation included in customer contracts with multiple performance obligations;

•allowance for doubtful accounts;

•expected benefit period of deferred contract acquisition costs;

•capitalization of internal-use software development costs;

•fair value of goodwill;

•useful lives of long-lived assets;

•valuation of deferred tax assets;

•valuation of employee defined benefit plan and other compensation liabilities;

•fair value of share-based awards, including performance-based awards; and

•incremental borrowing rate used for operating leases.

Segment Information

The Company operates in a single operating segment. The Chief Executive Officer (CEO) is the chief operating decision maker of the Company and makes operating decisions, assesses financial performance, and allocates resources based upon discrete financial information at a consolidated level.

Revenue Recognition and Deferred Revenue

Revenue Recognition

The Company derives revenue from subscription fees and related professional services. The Company sells subscriptions for its cloud-based solutions directly to customers and indirectly through channel partners through arrangements that are non-cancelable and non-refundable. The Company’s subscription arrangements do not provide customers with the right to take possession of the software supporting the solutions and, as a result, are accounted for as service arrangements. The Company records revenue net of sales or value-added taxes.

The Company sells subscriptions to third-party resellers. The price at which subscriptions are sold to the reseller is typically discounted, as compared to the price at which the Company would sell to an end customer, in order to enable the reseller to realize a margin on the eventual sale to the end customer. As pricing to the reseller is fixed, and the Company lacks visibility into the pricing provided by the reseller to the end customer, reseller revenue is recorded net of any reseller discounts.

Subscription Revenue

Subscription revenue is primarily comprised of fees paid by the Company’s customers for accessing its cloud-based software during the term of the arrangement. Cloud-based services allow customers to use the Company’s multi-tenant software without requiring them to take possession of the software. Given that access to the cloud-based software represents a series of distinct services that comprise a single performance obligation that is satisfied over time, subscription revenue is recognized ratably over the contract term beginning on the commencement date of each contract, which is the date that the cloud-based software is made available to customers.

Professional Services Revenue

Professional services revenue is comprised of fees charged for services ranging from product configuration, data migration, systems integration, and training. The Company recognizes professional services revenues as services are performed.

Customers with Multiple Performance Obligations

Some of the Company’s contracts with customers contain both subscriptions and professional services. For these contracts, the Company accounts for individual performance obligations separately. The transaction price is allocated to the separate performance obligations on the basis of relative standalone selling price (SSP). The Company determines SSP by taking into

consideration historical selling price of these performance obligations in similar transactions, as well as current pricing practices and other observable inputs including, but not limited to, customer size and geography. As the Company’s go-to-market strategies evolve, it may modify its pricing practices in the future, which could result in changes to SSP.

Deferred Revenue

Deferred revenue consists of customer billings in advance of revenue being recognized from the Company’s subscription and professional services arrangements. Customers are invoiced for subscription services arrangements in advance for monthly, quarterly, semi-annual and annual subscription plans. The Company’s payment terms generally provide that customers pay the invoiced portion of the total arrangement fee either in advance or within 30 days from the invoice date.

Cost of Revenue

Cost of revenue consists primarily of personnel-related expenses (primarily including salaries, related benefits, and stock-based compensation) for employees associated with the Company’s cloud-based infrastructure, payment gateway fees, voice, product support, and professional service organizations, as well as costs incurred by the Company for third-party hosting capabilities. Cost of revenue also includes third-party license fees, amortization of acquired intangibles, amortization of capitalized internal-use software, and allocation of general overhead expenses such as facilities and information technology.

Research and Development

Research and development costs are expensed as incurred and consist primarily of personnel-related expenses (primarily including salaries, related benefits, and stock-based compensation) for the Company’s product development employees. Research and development expenses also include non-personnel-related expenses such as third-party services for product development and consulting expenses, depreciation expense related to equipment used in research and development activities, and allocation of the Company’s general overhead expenses.

Advertising Cost

Advertising Costs

Advertising costs are charged to sales and marketing expense in the consolidated statements of operations as incurred.

Stock-Based Compensation

The Company issues stock options and RSUs to employees, consultants and directors, and stock purchase rights granted under the 2021 Employee Stock Purchase Plan (ESPP) to employees based on the estimated fair value on the date of the grant. Stock-based compensation expense is recognized in the consolidated statements of operations on a straight-line basis over the requisite service period, which is the vesting period of the respective awards. Forfeitures are accounted for when they occur.

The fair value of RSUs is based on the closing market price of its Class A common stock on the date of the grant. Prior to the IPO, the Company determined the fair value of the common stock underlying stock options and RSUs by considering numerous objective and subjective factors including, but not limited to: (i) independent third-party valuations, (ii) the prices, rights, preferences, and privileges of the Company’s redeemable convertible preferred stock relative to its common stock, (iii) the lack of marketability of the common stock, (iv) current business conditions and financial projections, and (iv) the likelihood of achieving an IPO or sale event. The fair values of stock options and the stock purchase rights under the ESPP are estimated using the Black-Scholes option-pricing model, which requires the input of highly subjective assumptions. These assumptions represent the Company's best estimates and involve inherent uncertainties and the application of the Company's judgement. The main assumptions used in the Black-Scholes option-pricing model include:

Expected term—The expected term represents the period that stock-based awards are expected to be outstanding. The expected term for option grants is determined using the simplified method which represents the average of the contractual term of the option and the weighted-average vesting period of the option. The Company considers this appropriate as there is not sufficient historical information available to develop reasonable expectations about future exercise patterns and post-vesting employment termination behavior. The expected term for ESPP is the length of time from the grant date to the date on which the stock is purchased by the employees.

Stock price volatility—For the stock price volatility over the expected term where the Company's common stock has sufficient trading history, the Company generally estimates the stock price volatility using the historical volatility of its own

stock. If the Company's common stock lacks sufficient trading history, the stock price volatility over the expected term is estimated based on the historical volatility of comparable companies with similar characteristics to those of the Company.

Risk-free interest rate—The risk-free interest rate is based on the yield of the U.S. treasury debt securities commensurate with the expected term.

Dividend yield—Since the Company has never paid and has no intention to pay cash dividends on its common stock, the dividend yield is zero.

For the performance-based award granted to the CEO with both a service-based vesting condition and a market condition (as discussed further in Note 9—Stockholders' Equity and Stock-Based Compensation), the Company determined the fair value of the award by using the Monte Carlo simulation model. The main assumptions used in the Monte Carlo simulation model include stock price volatility, risk-free interest rate, dividend yield and the measurement period, which is the period over which simulated stock prices of the Company are used to evaluate the possibility of achieving the specified stock price targets. Since both vesting conditions have to be met for each tranche of the award to ultimately vest, the associated stock-based compensation expense is recognized over the longer of the derived service period or the requisite service period, using the accelerated attribution method. Provided that the CEO remains employed by the Company in his current position, stock-based compensation expense is recognized over the requisite service period, regardless of whether the stock price goals are achieved.

Income Taxes

Income taxes are accounted for under the asset and liability method. Deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases and operating loss and tax credit carryforwards. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date. A valuation allowance is recorded for deferred tax assets if it is more likely than not that some portion or all of the deferred tax assets will not be realized. As of December 31, 2023 and 2022, the Company has recorded a full valuation allowance against its U.S. deferred tax assets.

The Company recognizes the effect of income tax positions only if those positions are more likely than not of being sustained. Recognized income tax positions are measured at the largest amount that is more likely than not of being realized. Changes in recognition or measurement are reflected in the period in which the change in judgment occurs.

The Company recognizes interest and penalties related to income tax matters as a component of income tax expense.

Cash and Cash Equivalents

Cash and cash equivalents consist of deposits held at financial institutions, money market funds, as well as highly liquid investments with an original maturity of three months or less when purchased. Cash and cash equivalents are recorded at cost, which approximates fair value.

Marketable Securities

Marketable securities consist primarily of debt securities such as corporate bonds, commercial paper, U.S. treasury securities, and U.S. government agency securities. These securities are classified as available-for-sale securities at the time of purchase as they represent funds readily available for current operations, and the Company also has the ability and intent to liquidate them at any time to meet its operating cash needs, if necessary. All available-for-sale debt securities are recorded at their estimated fair value, with changes in fair value recognized as unrealized gains or losses in accumulated other comprehensive income. For available-for-sale debt securities in an unrealized loss position, the Company evaluates whether a current expected credit loss exists based on available information relevant to the credit rating of the security, current economic conditions and reasonable and supportable forecasts. Expected credit losses are recorded in interest and other income, net, on the consolidated statements of income, and any remaining unrealized losses are recognized in accumulated other comprehensive income or loss in the stockholders' equity section of the consolidated balance sheets. Realized gains and losses are determined based on the specific identification method and are reported in interest and other income, net in the consolidated statements of operations.

Marketable securities also include mutual funds comprised of certain term bonds. These mutual funds meet certain criteria for equity investments in accordance with ASU 2016-01, Recognition and Measurement of Financial Assets and Liabilities.

Under this guidance, the Company measures these mutual funds at their estimated fair value, with changes in fair value recognized in interest and other income, net in the consolidated statements of operations.

Accounts Receivable and Allowance for Credit Losses

Trade accounts receivable are recorded at the invoiced amount, net of allowance for credit losses. The allowance is based on the Company’s assessment of the collectability of accounts and is recorded as an offset to revenue and deferred revenue. The Company regularly reviews the adequacy of the allowance by considering the age of each outstanding invoice and the collection history.

Concentrations of Risk

Financial instruments that potentially expose the Company to significant concentration of credit risk consist primarily of cash, cash equivalents, marketable securities, and accounts receivable. The Company’s cash and cash equivalents and marketable securities are generally held with large financial institutions and are in excess of the federally insured limits provided on such deposits. In addition, the Company has cash and cash equivalents held in international bank accounts, which are denominated primarily in Euros, British Pounds, and Indian Rupees.

There were no customers that individually exceeded 10% of the Company’s revenue for the years ended December 31, 2023, 2022, and 2021 or that represented 10% or more of the Company’s consolidated accounts receivable balance as of December 31, 2023 and 2022.

The Company primarily relies upon its third-party cloud infrastructure partner, Amazon Web Services (AWS), to serve customers and operate certain aspects of its services. Any disruption of this cloud infrastructure partner would impact the Company's operations and its business could be adversely impacted.

Derivative Instruments

The Company enters into foreign currency forward contracts, most of which were designated as cash flow hedges, in order to manage the volatility of cash flows that relate to cost of revenues and operating expenses denominated in Indian Rupee. All derivative instruments are measured at fair value based upon quoted market prices for comparable instruments and as such, classified within Level 2 of the fair value hierarchy. Derivative assets and liabilities are presented on a gross basis on the consolidated balance sheets under prepaid expenses and other current assets and accrued liabilities, respectively.

Gains or losses related to cash flow hedges are recorded as a component of accumulated other comprehensive income (AOCI) on the consolidated statements of stockholders' equity until the forecasted transaction occurs in earnings. When the forecasted transaction occurs, the related gains and losses are reclassified into earnings within the financial statement line item associated with the underlying hedged transaction. If the underlying hedged transaction does not occur, or it becomes probable that the hedged transaction will not occur, the cumulative unrealized gain or loss is reclassified immediately from AOCI into earnings within interest and other income. Changes in the fair value of currency forward exchange contracts due to changes in time value were excluded from the assessment of effectiveness. The initial value of this excluded component is amortized on a straight-line basis over the life of the hedging instrument and recognized in the financial statement line item to which the hedge relates. A majority of the balance related to foreign exchange derivative instruments included in AOCI at December 31, 2023 is expected to be reclassified into earnings within 12 months.

Derivative instruments are classified in the consolidated statements of cash flows as cash from operating activities, which reflect the classification of the underlying hedged transactions.

The Company does not use derivative financial instruments for trading or speculative purposes.

As of December 31, 2023, the total notional amount of outstanding designated foreign currency forward contracts was $55.8 million. The fair value of derivative assets and liabilities as of December 31, 2023, and all related unrealized and realized gains and losses during the year ended December 31, 2023, were not material.

Entering into derivative instruments exposes the Company to credit risk to the extent that the counterparties are unable to meet the terms of the contract. The Company mitigates this credit risk by transacting with major financial institutions with high credit ratings. In addition, the Company has entered into master netting arrangements that mitigate credit risk by permitting net settlement of transactions. As such, the Company's exposure is not considered significant. The Company does not have any collateral requirements with its counterparties.

Deferred Contract Acquisition Costs

Deferred contract acquisition costs are incremental costs that are associated with acquiring customer contracts and consist primarily of sales commissions and the associated payroll taxes and certain referral fees paid to third-party resellers. The costs incurred upon the execution of initial and expansion contracts are primarily deferred and amortized over an expected benefit period of three years. The expected benefit period is determined by taking into consideration the Company’s contracts with customers, technology life cycle and other factors. The Company considers the expected benefit period to exceed the initial contract term for certain costs because of anticipated renewals and because sales commission rates for renewal contracts are not commensurate with sales commissions for initial contracts. The Company includes amortization of deferred commissions in sales and marketing expense in its consolidated statements of operations. There was no impairment loss in relation to the incremental selling costs capitalized for the years ended December 31, 2023, 2022, and 2021.

The Company has elected to apply the practical expedient under Accounting Standards Codification (ASC) No. 340-40—Other Assets and Deferred Costs to account for costs incurred in obtaining a contract with the expected benefit period of one year or less as commission expenses, which are included in sales and marketing expense in its consolidated statements of operations.

Property and Equipment, net

Property and equipment, net, including capitalized internally-developed software, is stated at cost less accumulated depreciation. Depreciation is calculated using the straight-line method over the estimated useful lives of the respective assets as follows:


			Estimated Useful Life
Computers			3 years
Capitalized internal-use software			3 years
Office equipment, furniture and fixtures			5 years
Motor vehicles			5 years
Leasehold improvements			Lesser of lease term or 5 years

Capitalized Internal-Use Software

The Company capitalizes costs incurred in its software development projects as part of property and equipment during the application development stage. Costs related to preliminary project activities and post implementation activities are expensed as incurred. Once the development project is available for general release, capitalization ceases, and the Company estimates the useful life of the asset and begins amortization. Internal-use software is amortized on a straight-line basis over its estimated useful life, which is generally three years.

The Company also capitalizes certain costs related to its enterprise cloud computing services and certain projects for internal use incurred during the application development stage. Costs related to preliminary project activities and post-implementation activities are expensed as incurred. Capitalized cloud computing costs are amortized on a straight-line basis over its estimated useful life.

Long-Lived Assets (Including Goodwill)

Long-lived assets with finite lives include property and equipment, capitalized internal-use software and right-of-use (ROU) assets. The Company evaluates long-lived assets for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. Recoverability of assets held and used is measured by comparison of the carrying amount of an asset or an asset group to estimated undiscounted future net cash flows expected to be generated by the asset or asset group. If the carrying amount of an asset or asset group exceeds these estimated future cash flows, an impairment charge is recognized in the amount by which the carrying amount of the assets exceeds the fair value of the asset or asset group.

Goodwill

Goodwill is not amortized but rather is tested for impairment at least annually in the fourth quarter, or more frequently if events or changes in circumstances indicate that goodwill may be impaired. The Company elected to bypass the qualitative assessment, and performed a quantitative goodwill impairment test. Goodwill impairment is recognized when the quantitative assessment results in the carrying value of the reporting unit exceeding its fair value, in which case an impairment charge in the amount of such excess is recorded to goodwill, limited to the amount of goodwill.

Net Loss per Share Attributable to Common Stockholders

Basic and diluted net loss per share attributable to common stockholders are presented in conformity with the two-class method required for participating securities. Under the two-class method, net income is attributed to common stockholders and participating securities based on their participation rights. Prior to the IPO, the Company considered all series of its redeemable convertible preferred stock to be participating securities. Net loss attributable to common stockholders was not allocated to the redeemable convertible preferred stock as the holders of the redeemable convertible preferred stock were not contractually obligated to share in the losses of the Company.

Basic net loss per share attributable to common stockholders is computed by dividing the net loss attributable to common stockholders by the number of weighted-average shares of common stock outstanding during the reporting period. Prior to the IPO, the net loss attributable to common stockholders was adjusted for accretion of the carrying value of redeemable convertible preferred stock and deemed dividend distribution. Since the Company has reported net losses for all periods presented, all potentially dilutive securities are considered antidilutive, and accordingly, diluted net loss per share is the same as basic net loss per share.

Defined Benefit Plan

Employees in India are entitled to benefits under the Gratuity Act, a defined benefit retirement plan covering eligible employees. The plan requires employers to provide for a lump-sum payment to eligible employees at retirement, death, and incapacitation or on termination of employment, of an amount based on the respective employee’s salary and tenure of employment. Employees in India are also entitled to a defined benefit plan with benefits based on an employee’s accumulated leave balance and salary. Both plans are unfunded arrangements.

Current service costs are accrued in the period to which they relate. The benefit obligations are calculated by a qualified actuary using the projected unit credit method and the unfunded position is recognized as a liability in the consolidated balance sheets. In measuring the defined benefit obligations, the Company uses a discount rate at the reporting date based on yields of local government treasury bills denominated in the same currency in which the benefits are expected to be paid, with maturities approximating the terms of the Company’s obligations.

Leases

The Company leases office space under operating leases with expiration dates through 2032. The Company determines whether an arrangement constitutes a lease and records lease liabilities and ROU assets on its consolidated balance sheets at the lease commencement date. Lease liabilities are measured based on the present value of the total lease payments not yet paid, discounted based on either the rate implicit in the lease or the Company's incremental borrowing rate (the estimated rate the Company would be required to pay for a collateralized borrowing equal to the total lease payments over the term of the lease), whichever is more readily determinable. The incremental borrowing rate is based on an estimate of the Company's expected unsecured borrowing rate for its notes, adjusted for tenor and collateralized security features. Lease liabilities due within 12 months are included within accrued liabilities on the Company's consolidated balance sheets. ROU assets are measured based on the corresponding lease liability adjusted for (i) payments made to the lessor at or before the lease commencement date, (ii) initial direct costs incurred, and (iii) tenant incentives received, incurred or payable under the lease. Recognition of rent expense begins when the lessor makes the underlying asset available to the Company. The Company does not assume renewals or early terminations of its leases unless it is reasonably certain to exercise these options at commencement and does not allocate consideration between lease and non-lease components.

For short-term leases, the Company records rent expense in its consolidated statements of operations on a straight-line basis over the lease term and records variable lease payments as incurred.

Recent Accounting Pronouncements

Accounting Standards Not Yet Adopted

In November 2023, the Financial Accounting Standards Board (FASB) issued ASU 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures. ASU 2023-07 requires a public entity to disclose significant segment expenses and other segment items on an annual and interim basis and to provide in interim periods all disclosures about a reportable segment's profit and loss and assets that are currently required annually. Public entities with a single reportable segment are required to provide the new disclosures and all the disclosures required under ASC 280. This authoritative guidance is required to be applied retrospectively and effective for Freshworks starting in its annual disclosures for 2024 and interim periods starting 2025. This guidance is only related to disclosures and is not expected to have a significant impact on the Company's consolidated financial statements.

In December 2023, the FASB issued ASU 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures. ASU 2023-09 requires entities to provide more information in the rate reconciliation table and about income taxes paid, including certain disclosures that would be disaggregated by jurisdiction and other categories. This authoritative guidance should be applied prospectively and will be effective for Freshworks starting in its annual disclosures for 2025. Retrospective application is permitted. This guidance is only related to disclosures and is not expected to have a significant impact on the Company's consolidated financial statements.

Fair Value Measurements

The Company measures its financial assets at fair value each reporting period using a fair value hierarchy that prioritizes the use of observable inputs and minimizes the use of unobservable inputs when measuring fair value. The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1 measurements) and the lowest priority to measurements involving significant unobservable inputs (Level 3 measurements). The three levels of the fair value hierarchy are as follows:

Level 1—Inputs are observable and reflect quoted prices in active markets for identical assets or liabilities that the Company has the ability to access at the measurement date.

Level 2—Inputs other than quoted prices included within Level 1 that are observable, either directly or indirectly.

Level 3—Inputs that are unobservable.

Money market funds and U.S. treasury securities are classified within Level 1 because they are valued using quoted market prices or alternative pricing sources and models utilizing market observable inputs. Other debt securities and investments are classified within Level 2 if the investments are valued using model driven valuations which use observable inputs such as quoted market prices, benchmark yields, reported trades, broker/dealer quotes or alternative pricing sources with reasonable levels of price transparency. Available-for-sale debt securities are held by custodians who obtain investment prices from a third-party pricing provider that incorporates standard inputs in various asset price models.

Stockholders' Equity and Stock Based Compensation - Summary of Employee Stock Purchase Plan (Details) - USD ($) $ / shares in Units, $ in Thousands	12 Months Ended
	Dec. 31, 2023	Dec. 31, 2022
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Net shares issued under ESPP (in shares)	627,371	822,423
ESPP
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Weighted average purchase price (in USD per share)	$ 11.88	$ 13.33
Aggregate net proceeds (in thousands)	$ 7,271	$ 10,870

- Definition

Line items represent financial concepts included in a table. These concepts are used to disclose reportable information associated with domain members defined in one or many axes to the table.

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+ Details

Income Taxes - Net Loss Before Provision for Income Taxes (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2021
Income Tax Disclosure [Abstract]
Domestic	$ (165,144)	$ (252,261)	$ (211,844)
Foreign	41,375	31,471	30,365
Loss before income taxes	$ (123,769)	$ (220,790)	$ (181,479)

- Definition

Amount of income (loss) from continuing operations, including income (loss) from equity method investments, before deduction of income tax expense (benefit), and income (loss) attributable to noncontrolling interest.

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+ Details

Leases - Summary of Supplemental Cash Flow Information (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2021
Leases [Abstract]
Cash payments included in the measurement of operating lease liabilities	$ 15,526	$ 8,885
Operating lease right-of-use assets obtained in exchange for operating lease obligations	$ 7,461	$ 14,903	$ 0

Audit Information	12 Months Ended
Audit Information	Dec. 31, 2023
Auditor Information [Abstract]
Auditor Name	Deloitte & Touche LLP
Auditor Location	San Jose, CA
Auditor Firm ID	34

Stockholders' Equity and Stock Based Compensation - Summary of Stock Options (Details) - USD ($) $ / shares in Units, $ in Thousands	12 Months Ended
	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2021
Number of Shares
Beginning balance (in shares)	2,758,000
Stock options granted (in shares)	0		0
Stock options exercised (in shares)	(360,000)
Stock options cancelled / forfeited / expired (in shares)	(3,000)
Ending balance (in shares)	2,395,000	2,758,000
Options vested or expected to vest (in shares)	2,395,000
Options exercisable (in shares)	1,146,000
Weighted-Average Exercise Price
Beginning balance (in USD per share)	$ 9.06
Stock options granted (in USD per share)	0
Stock options exercised (in USD per share)	0.25
Stock options cancelled / forfeited / expired (in USD per share)	0.16
Ending balance (in USD per share)	10.39	$ 9.06
Options vested or expected to vest (in USD per share)	10.39
Options exercisable (in USD per share)	$ 6.89
Weighted-Average Remaining Contractual Term (in years)
Weighted-Average Remaining Contractual Term (in years)	7 years	7 years 3 months 18 days
Options vested and expected to vest as of the end of the period	7 years
Options exercisable as of the end of the period	5 years 2 months 12 days
Aggregate Intrinsic Value
Aggregate intrinsic value	$ 31,368	$ 15,595
Options vested or expected to vest as of the end of the period	31,368
Options exercisable as of the end of the period	$ 19,033

Revenue from Contracts with Customers - Changes in the Balance of Deferred Revenue (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2021
Changes in the Balance of Deferred Revenue [Roll Forward]
Balance at beginning of the year	$ 205,626	$ 160,173	$ 104,184
Add: Billings during the year	657,205	543,452	427,011
Less: Revenue recognized during the year	(596,432)	(497,999)	(371,022)
Balance at end of the year	$ 266,399	$ 205,626	$ 160,173

- Definition

Amount, excluding tax collected from customer, of revenue from satisfaction of performance obligation by transferring promised good or service to customer. Tax collected from customer is tax assessed by governmental authority that is both imposed on and concurrent with specific revenue-producing transaction, including, but not limited to, sales, use, value added and excise.

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+ Details

Commitment and Contingencies (Details) $ in Thousands	Dec. 31, 2023 USD ($)
Commitments and Contingencies Disclosure [Abstract]
2024	$ 63,703
2025	67,144
2026	67,662
2027	71,242
2028	67,741
Total	$ 337,492

Description of Business (Details) $ / shares in Units, $ in Thousands	1 Months Ended	3 Months Ended	12 Months Ended
	Sep. 30, 2021 USD ($) $ / shares shares	Dec. 31, 2021 shares	Dec. 31, 2023 USD ($)	Dec. 31, 2022 USD ($)	Dec. 31, 2021 USD ($) shares
Sale of Stock [Line Items]
Proceeds from initial public offering, net of underwriting discounts \| $	$ 1,100,000		$ 0	$ 0	$ 1,069,348
Deferred offering costs reclassified to stockholders' equity (deficit) \| $					$ 7,300
Number of common shares issued in conversion (in shares)	1
Number of preferred shares issued in conversion (in shares)	1
Number of shares issued for each vested RSU (in shares)	1
Stock split ratio, common stock	10
Common Stock
Sale of Stock [Line Items]
Conversion of redeemable convertible preferred stock into common stock upon initial public offering (in shares)		153,937,730			153,938,000
IPO
Sale of Stock [Line Items]
Public offering price (in USD per share) \| $ / shares	$ 36.00
IPO \| Class A Common Stock
Sale of Stock [Line Items]
Number of shares issued and sold (in shares)	31,350,000
Over-Allotment Option
Sale of Stock [Line Items]
Number of shares issued and sold (in shares)	2,850,000

Balance Sheet Components - Narrative (Details) - USD ($) $ in Millions	Dec. 31, 2023	Dec. 31, 2022
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Net carrying value of capitalized internal-use software	$ 14.1	$ 11.2
Compensation liabilities, noncurrent	$ 22.7	$ 23.3

CONSOLIDATED STATEMENTS OF REDEEMABLE CONVERTIBLE PREFERRED STOCK AND STOCKHOLDERS' EQUITY (DEFICIT) - USD ($) $ in Thousands	Total	Common Stock	Additional Paid-in Capital	Accumulated Other Comprehensive Income	Accumulated Deficit
Beginning balance (in shares) at Dec. 31, 2020	153,938,000
Beginning balance at Dec. 31, 2020	$ 2,895,096
Redeemable Convertible Preferred Stock
Accretion of redeemable convertible preferred stock	$ 2,646,662
Conversion of redeemable convertible preferred stock into common stock upon initial public offering (in shares)	(153,938,000)
Conversion of redeemable convertible preferred stock into common stock upon initial public offering	$ (5,541,758)
Ending balance (in shares) at Dec. 31, 2021	0
Ending balance at Dec. 31, 2021	$ 0
Beginning balance (in shares) at Dec. 31, 2020		77,619,000
Beginning balance at Dec. 31, 2020	(2,696,741)	$ 1	$ 0	$ 411	$ (2,697,153)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Accretion of redeemable convertible preferred stock	(2,646,662)		(2,264,869)		(381,793)
Conversion of redeemable convertible preferred stock into common stock upon initial public offering (in shares)		153,938,000
Conversion of redeemable convertible preferred stock into common stock upon initial public offering	5,541,758	$ 2	5,541,756
Issuance of common stock upon initial public offering, net of underwriting discount and offering expenses (in shares)		31,350,000
Issuance of common stock upon initial public offering, net of underwriting discount and offering expenses	1,062,058		1,062,058
Issuance of common stock upon exercise of stock options (in shares)		537,000
Issuance of common stock upon exercise of stock options	94		94
Issuance of common stock upon vesting and settlement of restricted stock units, net of shares withheld for tax purposes (in shares)		9,850,000
Issuance of common stock upon vesting and settlement of restricted stock units, net of shares withheld for tax purposes	(3,343)		(3,343)
Stock-based compensation	174,028		174,028
Unrealized loss on marketable securities	(1,158)			(1,158)
Net loss	(191,995)				(191,995)
Ending balance (in shares) at Dec. 31, 2021		273,294,000
Ending balance at Dec. 31, 2021	$ 1,238,039	$ 3	4,509,724	(747)	(3,270,941)
Ending balance (in shares) at Dec. 31, 2022	0
Ending balance at Dec. 31, 2022	$ 0
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Issuance of common stock upon exercise of stock options (in shares)		407,000
Issuance of common stock upon exercise of stock options	109		109
Issuance of common stock upon vesting and settlement of restricted stock units, net of shares withheld for tax purposes (in shares)		14,570,000
Issuance of common stock upon vesting and settlement of restricted stock units, net of shares withheld for tax purposes	$ (167,745)		(167,745)
Issuance of common stock under employee stock purchase plan, net of shares withheld and retired for taxes (in shares)	822,423	822,000
Issuance of common stock under employee stock purchase plan, net of shares withheld and retired for taxes	$ 10,870		10,870
Stock-based compensation	209,361		209,361
Unrealized loss on marketable securities	(6,684)			(6,684)
Net loss	(232,132)				(232,132)
Ending balance (in shares) at Dec. 31, 2022		289,093,000
Ending balance at Dec. 31, 2022	$ 1,051,818	$ 3	4,562,319	(7,431)	(3,503,073)
Ending balance (in shares) at Dec. 31, 2023	0
Ending balance at Dec. 31, 2023	$ 0
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Issuance of common stock upon exercise of stock options (in shares)	360,000	360,000
Issuance of common stock upon exercise of stock options	$ 88		88
Issuance of common stock upon vesting and settlement of restricted stock units, net of shares withheld for tax purposes (in shares)		6,615,000
Issuance of common stock upon vesting and settlement of restricted stock units, net of shares withheld for tax purposes	$ (68,621)		(68,621)
Issuance of common stock under employee stock purchase plan, net of shares withheld and retired for taxes (in shares)	627,371	627,000
Issuance of common stock under employee stock purchase plan, net of shares withheld and retired for taxes	$ 7,271		7,271
Stock-based compensation	212,465		212,465
Unrealized loss on marketable securities	7,105
Other comprehensive income	6,677			6,677
Net loss	(137,436)				(137,436)
Ending balance (in shares) at Dec. 31, 2023		296,695,000
Ending balance at Dec. 31, 2023	$ 1,072,262	$ 3	$ 4,713,522	$ (754)	$ (3,640,509)

Cash, Cash Equivalents and Marketable Securities - Narrative (Details) - USD ($) $ in Thousands	1 Months Ended	12 Months Ended
	Sep. 30, 2021	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2021
Debt Securities, Available-for-sale [Line Items]
Accrued interest		$ 4,400	$ 2,800
Debt Securities, Available-for-Sale, Accrued Interest, after Allowance for Credit Loss, Current, Statement of Financial Position [Extensible Enumeration]		Prepaid expenses and other current assets	Prepaid expenses and other current assets
Sale of non-marketable equity investment	$ 24,000	$ 0	$ 0	$ 23,979
Gain on sale of investment	$ 23,800	0	0	$ 23,836
Mutual funds
Debt Securities, Available-for-sale [Line Items]
Equity securities		$ 1,600	$ 1,500

- Definition

Line items represent financial concepts included in a table. These concepts are used to disclose reportable information associated with domain members defined in one or many axes to the table.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Topic 320
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 2
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481800/320-10-50-2

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Topic 320
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 2
-Subparagraph (a)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481800/320-10-50-2

Reference 3: http://www.xbrl.org/2003/role/disclosureRef
-Topic 320
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 2
-Subparagraph (aa)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481800/320-10-50-2

Reference 4: http://www.xbrl.org/2003/role/disclosureRef
-Topic 320
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 2
-Subparagraph (aaa)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481800/320-10-50-2

Reference 5: http://www.xbrl.org/2003/role/disclosureRef
-Topic 320
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 2
-Subparagraph (b)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481800/320-10-50-2

Reference 6: http://www.xbrl.org/2003/role/disclosureRef
-Topic 320
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 2
-Subparagraph (c)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481800/320-10-50-2

Reference 7: http://www.xbrl.org/2003/role/disclosureRef
-Topic 320
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 2
-Subparagraph (d)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481800/320-10-50-2

Reference 8: http://www.xbrl.org/2003/role/disclosureRef
-Topic 320
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 3
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481800/320-10-50-3

Reference 9: http://www.xbrl.org/2003/role/disclosureRef
-Topic 320
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 3
-Subparagraph (a)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481800/320-10-50-3

Reference 10: http://www.xbrl.org/2003/role/disclosureRef
-Topic 320
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 3
-Subparagraph (b)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481800/320-10-50-3

Reference 11: http://www.xbrl.org/2003/role/disclosureRef
-Topic 320
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 3
-Subparagraph (c)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481800/320-10-50-3

Reference 12: http://www.xbrl.org/2003/role/disclosureRef
-Topic 320
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 3
-Subparagraph (d)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481800/320-10-50-3

+ Details

Revenue from Contracts with Customers (Tables)

12 Months Ended

Dec. 31, 2023

Revenue from Contract with Customer [Abstract]

Disaggregation of Revenue

The following table summarizes revenue by the Company’s service offerings (in thousands):


	Year Ended December 31,
	2023		2022		2021
Subscription services	$	582,868	$	485,322	$	360,506
Professional services	13,564		12,677		10,516
Total revenue	$	596,432	$	497,999	$	371,022

Deferred Revenue and Remaining Performance Obligations

The following table summarizes the changes in the balance of deferred revenue during the years (in thousands):


	Year Ended December 31,
	2023		2022		2021
Balance at beginning of the year	$	205,626	$	160,173	$	104,184
Add: Billings during the year	657,205		543,452		427,011
Less: Revenue recognized during the year	(596,432)		(497,999)		(371,022)
Balance at end of the year	$	266,399	$	205,626	$	160,173

Deferred Contract Acquisition Costs

The change in the balance of deferred contract acquisition costs during the periods presented is as follows (in thousands):


	Year Ended December 31,
	2023		2022		2021
Balance at beginning of the year	$	39,675	$	29,647	$	18,273
Add: Contract costs capitalized during the year	26,962		28,560		24,218
Less: Amortization of contract costs during the year	(23,965)		(18,532)		(12,844)
Balance at end of the year	$	42,672	$	39,675	$	29,647

CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2021
Cash Flows Operating Activities:
Net loss	$ (137,436)	$ (232,132)	$ (191,995)
Adjustments to reconcile net loss to net cash provided by (used in) operating activities:
Depreciation and amortization	12,144	11,504	13,294
Amortization of deferred contract acquisition costs	23,965	18,532	12,844
Non-cash lease expense	7,736	6,195	0
Stock-based compensation	210,707	207,696	173,443
Premium (discount) amortization on marketable securities	(15,652)	(1,627)	1,757
Gain realized on sale of marketable securities and non-marketable equity investments	0	0	(23,836)
Change in fair value of equity securities	(90)	(71)	(132)
Deferred income taxes	(1,322)	(2,405)	(1,907)
Other	209	887	(28)
Changes in operating assets and liabilities:
Accounts receivable	(26,982)	(18,892)	(17,509)
Deferred contract acquisition costs	(26,962)	(28,560)	(24,218)
Prepaid expenses and other assets	(7,411)	(8,141)	(5,942)
Accounts payable	(2,423)	77	1,986
Accrued and other liabilities	1,839	7,746	17,714
Deferred revenue	60,773	45,453	55,989
Operating lease liabilities	(12,917)	(8,787)	0
Net cash provided by (used in) operating activities	86,178	(2,525)	11,460
Cash Flows from Investing Activities:
Purchases of property and equipment	(2,069)	(7,129)	(5,565)
Proceeds from sale of property and equipment	110	137	620
Capitalized internal-use software	(6,271)	(5,116)	(3,552)
Sale of non-marketable equity investment	0	0	23,979
Purchases of marketable securities	(842,803)	(848,560)	(686,078)
Sales of marketable securities	0	92,786	131,170
Maturities and redemptions of marketable securities	1,009,532	483,055	119,130
Net cash provided by (used in) investing activities	158,499	(284,827)	(420,296)
Cash Flows from Financing Activities:
Proceeds from initial public offering, net of underwriting discounts	0	0	1,069,348
Proceeds from issuance of common stock under employee stock purchase plan, net	7,271	10,870	0
Proceeds from exercise of stock options	88	109	94
Payment of withholding taxes on net share settlement of equity awards	(67,978)	(167,224)	(3,343)
Payment of deferred offering costs	0	(109)	(6,830)
Payment of acquisition-related liabilities	0	0	(900)
Net cash provided by (used in) financing activities	(60,619)	(156,354)	1,058,369
Net increase (decrease) in cash, cash equivalents and restricted cash	184,058	(443,706)	649,533
Cash, cash equivalents and restricted cash, beginning of period	304,158	747,864	98,331
Cash, cash equivalents and restricted cash, end of period	488,216	304,158	747,864
Reconciliation of cash, cash equivalents and restricted cash to consolidated balance sheets:
Cash and cash equivalents	488,121	304,083	747,861
Restricted cash included in prepaid expenses and other current assets	0	3	0
Restricted cash included in other assets	95	72	3
Total cash, cash equivalents and restricted cash	488,216	304,158	747,864
Supplemental cash flow information:
Cash paid for taxes	12,034	13,412	10,458
Non-cash investing and financing activities:
Operating lease right-of-use assets obtained in exchange for operating lease obligations	7,461	14,903	0
Stock-based compensation capitalized as internal-use software	1,758	1,665	585
Accretion of redeemable convertible preferred stock	0	0	2,646,662
Conversion of redeemable convertible preferred stock into common stock upon initial public offering	$ 0	$ 0	$ 5,541,758

CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands	Dec. 31, 2023	Dec. 31, 2022
Accounts receivable, allowance for credit loss, current	$ 8,562	$ 6,628
Preferred stock, par value (in dollars per share)	$ 0.00001	$ 0.00001
Preferred stock, authorized (in shares)	10,000,000	10,000,000
Preferred stock, issued (in shares)	0	0
Preferred stock, outstanding (in shares)	0	0
Class A Common Stock
Common stock, par value (in dollars per share)	$ 0.00001	$ 0.00001
Common stock, authorized (in shares)	1,000,000,000	1,000,000,000
Common stock, issued (in shares)	208,940,016	162,825,075
Common stock, outstanding (in shares)	208,940,016	162,825,075
Class B Common Stock
Common stock, par value (in dollars per share)	$ 0.00001	$ 0.00001
Common stock, authorized (in shares)	350,000,000	350,000,000
Common stock, issued (in shares)	87,754,921	126,268,150
Common stock, outstanding (in shares)	87,754,921	126,268,150

Fair Value Measurements (Tables)

12 Months Ended

Dec. 31, 2023

Fair Value Disclosures [Abstract]

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

The following table represents the fair value hierarchy for the Company’s financial assets measured at fair value on a recurring basis as of December 31, 2023 and 2022 (in thousands):


	December 31, 2023
	Fair Value Measured Using
	Level 1		Level 2		Total
Financial assets:
Cash equivalents:
Money market funds	$	77,832	$	—	$	77,832
U.S. treasury securities	239,749		—		239,749
U.S. government agency securities	—		8,389		8,389
Corporate debt securities	—		36,905		36,905
Marketable securities:
U.S. treasury securities	264,495		—		264,495
U.S. government agency securities	—		366,693		366,693
Corporate debt securities	—		66,740		66,740
Term bond mutual funds	—		1,578		1,578
Total financial assets	$	582,076	$	480,305	$	1,062,381


	December 31, 2022
	Fair Value Measured Using
	Level 1		Level 2		Total
Financial assets:
Cash equivalents:
Money market funds	$	219,512	$	—	$	219,512
U.S. treasury securities	13,915		—		13,915
U.S. government agency securities	—		10,419		10,419
Corporate debt securities	—		1,996		1,996
Marketable securities:
U.S. treasury securities	438,785		—		438,785
U.S. government agency securities	—		297,513		297,513
Corporate debt securities	—		105,619		105,619
Term bond mutual funds	—		1,488		1,488
Total financial assets	$	672,212	$	417,035	$	1,089,247

Description of Business	12 Months Ended
Description of Business	Dec. 31, 2023
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Description of Business	1. Description of Business Freshworks Inc. (Freshworks or the Company) is a software development company that provides software-as-a-service (SaaS) products that deliver modern and innovative AI-guided customer and employee service solutions that enable companies of all sizes to drive delightful engagement and increase productivity. The Company was incorporated in Delaware in 2010 and is headquartered in San Mateo, California, and has foreign subsidiaries located in India, Australia, the United Kingdom, Ireland, Germany, France, the Netherlands, and Singapore. Initial Public Offering In September 2021, the Company completed its initial public offering (IPO), in which it issued and sold 31,350,000 shares of its newly authorized Class A common stock at $36.00 per share, which included 2,850,000 shares issued upon the exercise of the underwriters’ option to purchase additional shares. The Company received proceeds of approximately $1.1 billion from the IPO, net of underwriters’ discounts and offering expenses. As of December 31, 2021, deferred offering costs totaling $7.3 million were reclassified to stockholders' equity (deficit) as a reduction of the net proceeds from the IPO. Upon completion of the IPO, certain shares of Class B common stock then outstanding (excluding shares of Class B common stock issued upon conversion and reclassification of the redeemable convertible preferred stock described below) were automatically converted to Class A common stock on a one-to-one basis, unless an option to remain as Class B common stock was elected by the holder. In addition, all shares of redeemable convertible preferred stock then outstanding were converted into 153,937,730 shares of common stock on a one-to-one basis and then reclassified into Class B common stock. As detailed in Note 9—Stockholders' Equity and Stock-Based Compensation, under the 2011 Stock Plan, the Company granted employees restricted stock units (RSUs) with both a service and a liquidity performance condition. Upon the Company's IPO in September 2021, the liquidity event condition was met for all RSUs and the Company began to recognize stock-based compensation expense. RSUs that had already met the service condition at that date were entitled to one share of Class B common stock for each vested RSU. Stock Split In September 2021, the Company completed a 10-for-one forward stock split of the Company’s authorized, issued and outstanding stock. All share and per share information included in the accompanying consolidated financial statements and notes thereto has been adjusted on a retrospective basis to reflect this stock split.

Stockholders' Equity and Stock Based Compensation - Restricted Stock Units (Details) shares in Thousands	12 Months Ended
	Dec. 31, 2023 $ / shares shares
Weighted-Average Grant Date Fair Value
Stock withheld for tax withholding requirements (in shares)	4,000
Restricted Stock Units
Number of Shares
Unvested, beginning balance (in shares)	32,253
Granted (in shares)	9,583
Vested (in shares)	(10,629)
Forfeited (in shares)	(4,452)
Unvested, ending balance (in shares)	26,755
Weighted-Average Grant Date Fair Value
Unvested, beginning balance (in USD per share) \| $ / shares	$ 18.86
Granted (in USD per share) \| $ / shares	14.34
Vested (in USD per share) \| $ / shares	16.49
Forfeited (in USD per share) \| $ / shares	17.32
Unvested, ending balance (in USD per share) \| $ / shares	$ 18.44

Leases

12 Months Ended

Dec. 31, 2023

Leases [Abstract]

Leases

7. Leases

The Company has operating leases primarily for office space. The leases have remaining lease terms of one to nine years, some of which include options to extend the lease for up to six years. The Company's leases do not contain any residual value guarantee.

The following table presents various components of the lease costs (in thousands):


	Year Ended December 31,
Operating Leases	2023		2022
Operating lease cost	$	10,415	$	8,312
Short-term lease cost	415		1,162
Variable lease cost	3,190		2,797

The Company adopted accounting standard update 2016-2, Leases (Topic 842) effective January 1, 2022. Rent expense for operating leases recognized prior to our adoption of Topic 842 for the year ended December 31, 2021 was $9.7 million.

The weighted-average remaining term of the Company's operating leases and the weighted-average discount rate used to measure the present value of the operating lease liabilities are as follows:


	December 31,
Lease Term and Discount Rate	2023		2022
Weighted-average remaining lease term (in years)	5.21		4.81
Weighted-average discount rate	9.1	%	7.4	%

The following table presents supplemental information arising from lease transactions. Cash payments related to short-term leases are not included in the measurement of the operating lease liabilities, and as such, are excluded from the amounts below (in thousands):


	Year Ended December 31,
Supplemental Cash Flow Information:	2023		2022
Cash payments included in the measurement of operating lease liabilities	$	15,526	$	8,885
Operating ROU assets obtained in exchange for lease obligations	7,461		14,903

Maturities of the operating lease liabilities are as follows (in thousands):


Year Ending December 31:	Operating Leases
2024	$	4,799
2025	10,052
2026	6,882
2027	5,668
2028	4,963
Thereafter	7,213
Total lease payments	39,577
Less: imputed interest	(10,083)
Present value of operating lease liabilities	$	29,494

As of December 31, 2023, there were no future payments related to signed leases that have not yet commended.

Balance Sheet Components (Tables)

12 Months Ended

Dec. 31, 2023

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Property, Plant and Equipment

Depreciation is calculated using the straight-line method over the estimated useful lives of the respective assets as follows:


			Estimated Useful Life
Computers			3 years
Capitalized internal-use software			3 years
Office equipment, furniture and fixtures			5 years
Motor vehicles			5 years
Leasehold improvements			Lesser of lease term or 5 years

The following table summarizes property and equipment, net as of December 31, 2023 and 2022 (in thousands):


	December 31,
	2023		2022
Computers	$	17,188	$	16,552
Capitalized internal-use software	28,259		20,230
Office equipment	4,357		3,744
Furniture and fixtures	8,886		8,881
Motor vehicles	808		1,158
Leasehold improvements	5,768		5,654
Construction in progress	751		224
Total property and equipment	66,017		56,443
Less: accumulated depreciation and amortization	(43,270)		(32,304)
Property and equipment, net	$	22,747	$	24,139

The following table summarizes depreciation expense and internal-use software capitalization and amortization expense for the years ended December 31, 2023, 2022 and 2021 (in thousands):


	Year Ended December 31,
	2023		2022		2021
Capitalization of costs associated with internal-use software	$	8,029	$	6,781	$	4,137
Amortization expense of capitalized internal-use software	5,106		3,193		2,542
Depreciation expense	6,735		6,720		6,423

Schedule of Accrued Liabilities

The following table summarizes accrued liabilities as of December 31, 2023 and 2022 (in thousands):


	December 31,
	2023		2022
Accrued compensation	$	20,976	$	20,192
Accrued third-party cloud infrastructure expenses	—		2,752
Accrued reseller commissions	9,641		7,731
Accrued advertising and marketing expenses	2,095		4,465
Advanced payments from customers	4,265		3,480
Accrued taxes	10,964		7,730
Operating lease liabilities, current	2,699		6,775
Contributions withheld for employee stock purchase plan	1,298		1,546
Other accrued expenses	4,670		4,337
Total accrued liabilities	$	56,608	$	59,008

Geographic Information - Narrative (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2021
Disaggregation of Revenue [Line Items]
Revenue	$ 596,432	$ 497,999	$ 371,022
United States
Disaggregation of Revenue [Line Items]
Revenue	$ 235,300	$ 192,200	$ 142,900
United States \| Revenue from Contract with Customer Benchmark \| Geographic Concentration Risk
Disaggregation of Revenue [Line Items]
Concentration risk, percentage	39.00%	39.00%	39.00%
United Kingdom
Disaggregation of Revenue [Line Items]
Revenue	$ 75,100	$ 63,800	$ 52,900
United Kingdom \| Revenue from Contract with Customer Benchmark \| Geographic Concentration Risk
Disaggregation of Revenue [Line Items]
Concentration risk, percentage	13.00%	13.00%	14.00%

- Definition

Line items represent financial concepts included in a table. These concepts are used to disclose reportable information associated with domain members defined in one or many axes to the table.

+ References + Details

- Definition

+ References

+ Details

Geographic Information (Tables)

12 Months Ended

Dec. 31, 2023

Segment Reporting [Abstract]

Schedule of Revenue and Long-Lived Assets by Geographical Region

The following table summarizes revenue by geographic region (in thousands):


	Year Ended December 31,
	2023		2022		2021
North America	$	266,331	$	216,112	$	160,224
Europe, Middle East and Africa	229,983		193,899		152,542
Asia Pacific	83,109		74,948		49,933
Other	17,009		13,040		8,323
Total revenue	$	596,432	$	497,999	$	371,022

The following table summarizes long-lived assets by geographic information (in thousands):


	December 31,
	2023		2022
North America	$	22,635	$	23,839
Europe, Middle East and Africa	2,244		4,039
Asia Pacific	30,617		29,285
Total long-lived assets	$	55,496	$	57,163

Net Loss Per Share

12 Months Ended

Dec. 31, 2023

Earnings Per Share [Abstract]

Net Loss Per Share

10. Net Loss Per Share

Basic net loss per share attributable to common stockholders is computed by dividing the net loss by the number of weighted-average outstanding common shares. Diluted net loss per share attributable to common stockholders is determined by giving effect to all potential common equivalents during the reporting period, unless including them yields an antidilutive result. The Company considers its redeemable convertible preferred stock, stock options and RSUs as potential common stock equivalents, but excluded them from the computation of diluted net loss per share attributable to common stockholders in the periods presented, as their effect was antidilutive.

The rights, including the liquidation and dividend rights, of the holders of Class A and Class B common stock are identical, except with respect to voting, conversion, and transfer rights. As the liquidation and dividend rights are identical, the undistributed earnings are allocated on a proportionate basis to each class of common stock and the resulting basic and diluted

net loss per share attributable to common stockholders are the same for both Class A and Class B common stock on both an individual and combined basis.

The following table sets forth the computation of basic and diluted net loss per share attributable to common stockholders (in thousands, except per share data):


	Year Ended December 31,
	2023		2022		2021
Numerator:
Net loss	$	(137,436)	$	(232,132)	$	(191,995)
Accretion of redeemable convertible preferred stock	—		—		(2,646,662)
Net loss attributable to Class A and Class B common stockholders - basic and diluted	$	(137,436)	$	(232,132)	$	(2,838,657)

Denominator:
Weighted-average shares used in computing net loss per share attributable to Class A and Class B common stockholders - basic and diluted	293,087		284,587		130,652
Net loss per share attributable to Class A and Class B common stockholders - basic and diluted	$	(0.47)	$	(0.82)	$	(21.73)

The following table summarizes the potential common equivalents that were excluded from the computation of diluted net loss per share attributable to Class A and Class B common stockholders for the periods presented (in thousands):


	Year Ended December 31,
	2023	2022	2021

RSUs and PRSUs	26,755	32,253	47,830
Stock options	2,395	2,758	1,348
ESPP	109	124	160
Total	29,259	35,135	49,338

Cash Equivalents and Marketable Securities (Tables)

12 Months Ended

Dec. 31, 2023

Investments, Debt and Equity Securities [Abstract]

Schedule of Available-for-Sale Securities Reconciliation

Cash equivalents and available-for-sale debt securities consisted of the following as of December 31, 2023 and 2022 (in thousands):


	December 31, 2023
	Amortized Cost		Unrealized Gains		Unrealized Losses		Fair Value
Cash equivalents:
Money market funds	$	77,832	$	—	$	—	$	77,832
U.S. treasury securities	239,727		22		—		239,749
U.S. government agency securities	8,388		1		—		8,389
Corporate debt securities	36,905		—		—		36,905
Total cash equivalents	362,852		23		—		362,875
Debt securities:
U.S. treasury securities	264,554		339		(398)		264,495
U.S. government agency securities	366,946		571		(824)		366,693
Corporate debt securities	66,777		72		(109)		66,740
Total debt securities	698,277		982		(1,331)		697,928
Total cash equivalents and debt securities	$	1,061,129	$	1,005	$	(1,331)	$	1,060,803


	December 31, 2022
	Amortized Cost		Unrealized Gains		Unrealized Losses		Fair Value
Cash equivalents:
Money market funds	$	219,512	$	—	$	—	$	219,512
U.S. treasury securities	13,912		3		—		13,915
U.S. government agency securities	10,417		2		—		10,419
Corporate debt securities	1,995		1		—		1,996
Total cash equivalents	245,836		6		—		245,842
Debt securities:
U.S. treasury securities	441,909		36		(3,160)		438,785
U.S. government agency securities	301,009		35		(3,531)		297,513
Corporate debt securities	106,436		—		(817)		105,619
Total debt securities	849,354		71		(7,508)		841,917
Total cash equivalents and debt securities	$	1,095,190	$	77	$	(7,508)	$	1,087,759

Schedule of Available-for-Sale, Unrealized Loss Position, Fair Value

The following table presents gross unrealized losses and fair values for the securities that were in a continuous unrealized loss position as of December 31, 2023 and 2022 (in thousands):


	December 31, 2023
	Less than 12 months				Greater than 12 months				Total
	Fair Value		Unrealized Loss		Fair Value		Unrealized Loss		Fair Value		Unrealized Loss
U.S. treasury securities	$	60,869	$	(159)	$	42,667	$	(239)	$	103,536	$	(398)
U.S. government agency securities	145,594		(364)		80,455		(460)		226,049		(824)
Corporate debt securities	14,749		(59)		12,934		(50)		27,683		(109)
Total	$	221,212	$	(582)	$	136,056	$	(749)	$	357,268	$	(1,331)


	December 31, 2022
	Less than 12 months				Greater than 12 months				Total
	Fair Value		Unrealized Loss		Fair Value		Unrealized Loss		Fair Value		Unrealized Loss
U.S. treasury securities	$	190,820	$	(1,794)	$	105,115	$	(1,366)	$	295,935	$	(3,160)
U.S. government agency securities	220,766		(2,245)		42,754		(1,286)		263,520		(3,531)
Corporate debt securities	30,485		(455)		22,864		(362)		53,349		(817)
Total	$	442,071	$	(4,494)	$	170,733	$	(3,014)	$	612,804	$	(7,508)

Schedule of Amortized Costs and Fair Value of Debt Securities Based on Contractual Maturities

The amortized cost and fair value of the available-for-sale debt securities based on contractual maturities are as follows (in thousands):


	December 31, 2023
	Amortized Cost		Fair Value
Due within one year	$	503,640	$	502,571
Due after one year but within five years	194,637		195,357
Total	$	698,277	$	697,928

Net Loss Per Share - Computation of Basic and Diluted Net Loss Per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	12 Months Ended
	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2021
Numerator:
Net loss	$ (137,436)	$ (232,132)	$ (191,995)
Accretion of redeemable convertible preferred stock	0	0	(2,646,662)
Net loss attributable to Class A and Class B common stockholders - basic	(137,436)	(232,132)	(2,838,657)
Net loss attributable to Class A and Class B common stockholders - diluted	$ (137,436)	$ (232,132)	$ (2,838,657)
Denominator:
Weighted-average shares used in computing net loss per share attributable to common stockholders - basic (in shares)	293,087	284,587	130,652
Weighted-average shares used in computing net loss per share attributable to common stockholders - diluted (in shares)	293,087	284,587	130,652
Net loss per share attributable to Class A and Class B common stockholders - basic (in dollars per share)	$ (0.47)	$ (0.82)	$ (21.73)
Net loss per share attributable to Class A and Class B common stockholders - diluted (in dollars per share)	$ (0.47)	$ (0.82)	$ (21.73)

Insider Trading Arrangements

3 Months Ended

12 Months Ended

Dec. 31, 2023

Trading Arrangements, by Individual

Material Terms of Trading Arrangement

During the three months ended December 31, 2023, our officers (as defined in Rule 16a-1(f) under the Exchange Act) and directors adopted or terminated the contracts, instructions or written plans for the purchase or sale of the Company's securities, each of which is intended to satisfy the affirmative defense conditions of Rule 10b5-1(c) under the Exchange Act, as set forth in the table below.

Name

Title

Action

Adoption Date

Expiration Date

Total number of securities to be sold

Rathna Girish Mathrubootham

Chief Executive Officer and Chairman

Adoption

November 27, 2023

December 15, 2024

Up to 1,900,000 shares

Srinivasagopalan Ramamurthy

Chief Product Officer

Adoption(1)

November 30, 2023

October 1, 2024

Up to 650,000 shares(2)

(1) Plan adopted in accordance with Rule 10b5-1(c)(ii)(D)(2).

(2) The actual number of shares that will be sold under the Rule 10b5-1 trading plan will be reduced by the number of shares sold in accordance with an existing plan prior to its expiration on March 29, 2024.

Rule 10b5-1 Arrangement Terminated

false

Rathna Girish Mathrubootham [Member]

Trading Arrangements, by Individual

Name

Rathna Girish Mathrubootham

Title

Chief Executive Officer and Chairman

Rule 10b5-1 Arrangement Adopted

true

Adoption Date

November 27, 2023

Arrangement Duration

384 days

Aggregate Available

1,900,000

Srinivasagopalan Ramamurthy [Member]

Trading Arrangements, by Individual

Name

Srinivasagopalan Ramamurthy

Title

Chief Product Officer

Rule 10b5-1 Arrangement Adopted

true

November 30, 2023

306 days

650,000

Name:	ecd_IndividualAxis=frsh_RathnaGirishMathruboothamMember
Namespace Prefix:
Data Type:	na
Balance Type:
Period Type:

Geographic Information - Schedule of Revenue and Long-Lived Assets by Geographical Region (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2021
Revenues from External Customers and Long-Lived Assets [Line Items]
Revenue	$ 596,432	$ 497,999	$ 371,022
Total long-lived assets	55,496	57,163
North America
Revenues from External Customers and Long-Lived Assets [Line Items]
Revenue	266,331	216,112	160,224
Total long-lived assets	22,635	23,839
Europe, Middle East and Africa
Revenues from External Customers and Long-Lived Assets [Line Items]
Revenue	229,983	193,899	152,542
Total long-lived assets	2,244	4,039
Asia Pacific
Revenues from External Customers and Long-Lived Assets [Line Items]
Revenue	83,109	74,948	49,933
Total long-lived assets	30,617	29,285
Other
Revenues from External Customers and Long-Lived Assets [Line Items]
Revenue	$ 17,009	$ 13,040	$ 8,323

- Definition

+ References

+ Details

Commitment and Contingencies

12 Months Ended

Dec. 31, 2023

Commitments and Contingencies Disclosure [Abstract]

Commitments and Contingencies

8. Commitments and Contingencies

Other Contractual Commitments

The Company's other contractual commitments primarily consist of third-party cloud infrastructure agreements and service subscription purchase arrangements used to support operations at the enterprise level. Future minimum payments under the Company’s non-cancelable purchase commitments as of December 31, 2023 are presented in the table below (in thousands):


Year ending December 31,	Contractual Commitments
2024	$	63,703
2025	67,144
2026	67,662
2027	71,242
2028	67,741
Total	$	337,492

Litigation and Loss Contingencies

On November 1, 2022, a purported Company stockholder filed a securities class action complaint in the U.S. District Court for the Northern District of California against the Company, certain of its current officers and directors, and underwriters of the Company's Initial Public Offering (IPO). On April 14, 2023, the court-appointed lead plaintiff filed a consolidated amended class action complaint. The complaint alleges that defendants violated Sections 11, 12(a)(2), and 15 of the Securities Act of 1933 by making material misstatements or omissions in offering documents filed in connection with the IPO. The complaint seeks unspecified damages, interest, fees, costs, and rescission on behalf of purchasers and/or acquirers of common stock issued in the IPO. On September 28, 2023, the court issued an order granting in part and denying in part defendants' motion to dismiss. The Company and the other defendants intend to vigorously defend against the remaining claims in this action.

On March 20, 2023, a purported stockholder derivative complaint was filed in the U.S. District Court for the Northern District of California. The complaint names as defendants the Company's current directors, as well as the Company as nominal defendant, and asserts state and federal claims based on some of the same alleged misstatements as the securities class action complaint. The derivative complaint seeks unspecified damages, attorneys’ fees, and other costs. On June 21, 2023, the court stayed the case in light of the pending securities class action. On October 16, 2023, the court extended the stay of the case in light of the pending securities class action. The Company and the other defendants intend to vigorously defend against the claims in this action.

From time to time, the Company has been and may be in the future subject to other legal proceedings, claims, investigations, and government inquiries (collectively, Legal Proceedings) in the ordinary course of business. It has received and may receive claims from third parties asserting, among other things, infringement of their intellectual property rights, defamation, labor and employment rights, privacy, and contractual rights. There are no currently pending legal proceedings that the Company believes will have a material adverse impact on the business or consolidated financial statements.

Indemnifications

In the ordinary course of business, the Company enters into contractual arrangements under which the Company agrees to provide indemnification of varying scope and terms to customers, business partners, and other parties with respect to certain matters, including losses arising out of intellectual property infringement claims made by third parties, if the Company has violated applicable laws, if the Company is negligent or commits acts of willful misconduct, and other liabilities with respect to its products and services and its business. In these circumstances, payment is typically conditional on the other party making a claim pursuant to the procedures specified in the particular contract. The Company also indemnifies certain of its officers, directors and certain key employees while they are serving in good faith in their respective capacities. To date, the Company has not incurred any material costs as a result of such indemnifications and has not accrued any liabilities related to such obligations in its consolidated financial statements.

Revenue from Contracts with Customers - Narrative (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2021
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Revenue recognized during the period	$ 204.8	$ 158.7	$ 103.8
Remaining performance obligation	418.9
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2024-01-01
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Remaining performance obligation	$ 309.8
Remaining performance obligation, expected timing of satisfaction, period	12 months

CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2021
Statement of Comprehensive Income [Abstract]
Net loss	$ (137,436)	$ (232,132)	$ (191,995)
Other comprehensive income (loss):
Changes in unrealized loss on marketable securities	7,105	(6,684)	(1,158)
Net change on cash flow hedging	(428)	0	0
Total other comprehensive income (loss):	6,677	(6,684)	(1,158)
Comprehensive loss	$ (130,759)	$ (238,816)	$ (193,153)

- Definition

The portion of profit or loss for the period, net of income taxes, which is attributable to the parent.

+ References

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+ Details

CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) shares in Thousands, $ in Thousands	12 Months Ended
	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2021
Income Statement [Abstract]
Revenue	$ 596,432	$ 497,999	$ 371,022
Cost of revenue	103,369	95,772	78,030
Gross profit	493,063	402,227	292,992
Operating expense:
Research and development	137,756	135,543	120,407
Sales and marketing	357,781	343,207	260,345
General and administrative	167,698	156,849	117,022
Total operating expenses	663,235	635,599	497,774
Loss from operations	(170,172)	(233,372)	(204,782)
Interest and other income, net	46,403	12,582	23,303
Loss before income taxes	(123,769)	(220,790)	(181,479)
Provision for income taxes	13,667	11,342	10,516
Net loss	(137,436)	(232,132)	(191,995)
Accretion of redeemable convertible preferred stock	0	0	(2,646,662)
Net loss attributable to common stockholders - basic and diluted
Net loss attributable to common stockholders - basic	(137,436)	(232,132)	(2,838,657)
Net loss attributable to common stockholders - diluted	$ (137,436)	$ (232,132)	$ (2,838,657)
Net loss attributable to common stockholders - basic and diluted
Net loss per share attributable to Class A and Class B common stockholders - basic (in dollars per share)	$ (0.47)	$ (0.82)	$ (21.73)
Net loss per share attributable to Class A and Class B common stockholders - diluted (in dollars per share)	$ (0.47)	$ (0.82)	$ (21.73)
Weighted average shares used in computing net loss per share attributable to common stockholders - basic and diluted
Weighted-average shares used in computing net loss per share attributable to common stockholders - diluted (in shares)	293,087	284,587	130,652
Weighted-average shares used in computing net loss per share attributable to common stockholders - basic (in shares)	293,087	284,587	130,652

Leases - Summary of Lease Term and Discount Rate (Details)	Dec. 31, 2023	Dec. 31, 2022
Leases [Abstract]
Weighted-average remaining lease term (in years)	5 years 2 months 15 days	4 years 9 months 21 days
Weighted average discount rate (as a percent)	9.10%	7.40%

CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	Dec. 31, 2023	Dec. 31, 2022
Current assets:
Cash and cash equivalents	$ 488,121	$ 304,083
Marketable securities	699,506	843,405
Accounts receivable, net of allowance of $8,562 and $6,628	97,179	70,470
Deferred contract acquisition costs	22,908	20,139
Prepaid expenses and other current assets	47,832	38,913
Total current assets	1,355,546	1,277,010
Property and equipment, net	22,747	24,139
Operating lease right-of-use assets	32,749	33,024
Deferred contract acquisition costs, noncurrent	19,764	19,536
Goodwill	6,181	6,181
Deferred tax assets	10,013	8,689
Other assets	9,772	11,637
Total assets	1,456,772	1,380,216
Current liabilities:
Accounts payable	3,485	5,908
Accrued liabilities	56,608	59,008
Deferred revenue	266,399	205,626
Income tax payable	722	1,150
Total current liabilities	327,214	271,692
Operating lease liabilities, non-current	26,795	28,174
Other liabilities	30,501	28,532
Total liabilities	384,510	328,398
Commitments and contingencies (Note 8)
Stockholders' equity:
Preferred stock, value	0	0
Additional paid-in capital	4,713,522	4,562,319
Accumulated other comprehensive loss	(754)	(7,431)
Accumulated deficit	(3,640,509)	(3,503,073)
Total stockholders' equity	1,072,262	1,051,818
Total liabilities and stockholders' equity	1,456,772	1,380,216
Class A Common Stock
Stockholders' equity:
Common stock, value	2	2
Class B Common Stock
Stockholders' equity:
Common stock, value	$ 1	$ 1

Fair Value Measurements

12 Months Ended

Dec. 31, 2023

Fair Value Disclosures [Abstract]

Fair Value Measurements

5. Fair Value Measurements

Level 1—Inputs are observable and reflect quoted prices in active markets for identical assets or liabilities that the Company has the ability to access at the measurement date.

Level 2—Inputs other than quoted prices included within Level 1 that are observable, either directly or indirectly.

Level 3—Inputs that are unobservable.

The Company did not have any assets or liabilities subject to fair value remeasurement on a nonrecurring basis as of December 31, 2023 and 2022.

Assets and Liabilities Measured at Fair Value on a Recurring Basis

The following table represents the fair value hierarchy for the Company’s financial assets measured at fair value on a recurring basis as of December 31, 2023 and 2022 (in thousands):


	December 31, 2023
	Fair Value Measured Using
	Level 1		Level 2		Total
Financial assets:
Cash equivalents:
Money market funds	$	77,832	$	—	$	77,832
U.S. treasury securities	239,749		—		239,749
U.S. government agency securities	—		8,389		8,389
Corporate debt securities	—		36,905		36,905
Marketable securities:
U.S. treasury securities	264,495		—		264,495
U.S. government agency securities	—		366,693		366,693
Corporate debt securities	—		66,740		66,740
Term bond mutual funds	—		1,578		1,578
Total financial assets	$	582,076	$	480,305	$	1,062,381


	December 31, 2022
	Fair Value Measured Using
	Level 1		Level 2		Total
Financial assets:
Cash equivalents:
Money market funds	$	219,512	$	—	$	219,512
U.S. treasury securities	13,915		—		13,915
U.S. government agency securities	—		10,419		10,419
Corporate debt securities	—		1,996		1,996
Marketable securities:
U.S. treasury securities	438,785		—		438,785
U.S. government agency securities	—		297,513		297,513
Corporate debt securities	—		105,619		105,619
Term bond mutual funds	—		1,488		1,488
Total financial assets	$	672,212	$	417,035	$	1,089,247

- Definition

The entire disclosure for the fair value of financial instruments (as defined), including financial assets and financial liabilities (collectively, as defined), and the measurements of those instruments as well as disclosures related to the fair value of non-financial assets and liabilities. Such disclosures about the financial instruments, assets, and liabilities would include: (1) the fair value of the required items together with their carrying amounts (as appropriate); (2) for items for which it is not practicable to estimate fair value, disclosure would include: (a) information pertinent to estimating fair value (including, carrying amount, effective interest rate, and maturity, and (b) the reasons why it is not practicable to estimate fair value; (3) significant concentrations of credit risk including: (a) information about the activity, region, or economic characteristics identifying a concentration, (b) the maximum amount of loss the entity is exposed to based on the gross fair value of the related item, (c) policy for requiring collateral or other security and information as to accessing such collateral or security, and (d) the nature and brief description of such collateral or security; (4) quantitative information about market risks and how such risks are managed; (5) for items measured on both a recurring and nonrecurring basis information regarding the inputs used to develop the fair value measurement; and (6) for items presented in the financial statement for which fair value measurement is elected: (a) information necessary to understand the reasons for the election, (b) discussion of the effect of fair value changes on earnings, (c) a description of [similar groups] items for which the election is made and the relation thereof to the balance sheet, the aggregate carrying value of items included in the balance sheet that are not eligible for the election; (7) all other required (as defined) and desired information.

+ References + Details

Subsequent Events	12 Months Ended
Subsequent Events	Dec. 31, 2023
Subsequent Events [Abstract]
Subsequent Events	13. Subsequent Events In February 2024, the Board of Directors approved the cancellation of the CEO Performance Award and the grant of an annual long term equity incentive award with a fair value of $19 million, both effective March 1, 2024. The annual long term equity incentive award will be comprised of 70% time-based RSUs and 30% performance-based RSUs. The performance-based RSUs will be earned based on the achievement of revenue and free cash flow targets for the 2024 financial year.

Stockholders' Equity and Stock Based Compensation - Unrecognized Stock Based Compensation Expense (Details) $ in Thousands	12 Months Ended
	Dec. 31, 2023 USD ($)
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Total unrecognized stock-based compensation expense	$ 405,014
RSUs and PSUs
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Unrecognized Stock-Based Compensation	$ 390,716
Weighted-Average Period to Recognize Expense (in years)	2 years 7 months 6 days
Stock options
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Unrecognized Stock-Based Compensation	$ 10,010
Weighted-Average Period to Recognize Expense (in years)	2 years 8 months 12 days
ESPP
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Unrecognized Stock-Based Compensation	$ 4,288
Weighted-Average Period to Recognize Expense (in years)	7 months 6 days

- Definition

Line items represent financial concepts included in a table. These concepts are used to disclose reportable information associated with domain members defined in one or many axes to the table.

+ References

+ Details

Cover - USD ($) $ in Millions	12 Months Ended
Cover - USD ($) $ in Millions	Dec. 31, 2023	Feb. 13, 2024	Jun. 30, 2023
Document Information [Line Items]
Document Type	10-K
Document Annual Report	true
Document Period End Date	Dec. 31, 2023
Current Fiscal Year End Date	--12-31
Document Transition Report	false
Entity File Number	001-40806
Entity Registrant Name	Freshworks Inc.
Entity Incorporation, State or Country Code	DE
Entity Tax Identification Number	33-1218825
Entity Address, Address Line One	2950 S. Delaware Street
Entity Address, Address Line Two	Suite 201
Entity Address, City or Town	San Mateo
Entity Address, State or Province	CA
Entity Address, Postal Zip Code	94403
City Area Code	650
Local Phone Number	513-0514
Title of 12(b) Security	Class A common stock, par value $0.00001 per share
Trading Symbol	FRSH
Security Exchange Name	NASDAQ
Entity Well-known Seasoned Issuer	No
Entity Voluntary Filers	No
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Large Accelerated Filer
Entity Small Business	false
Entity Emerging Growth Company	false
ICFR Auditor Attestation Flag	true
Document Financial Statement Error Correction [Flag]	false
Entity Shell Company	false
Entity Public Float			$ 2,910
Documents Incorporated by Reference	Portions of the registrant's definitive proxy statement for the 2024 Annual Meeting of Stockholders (the "2024 Proxy Statement") are incorporated by reference into Part III of this Annual Report on Form 10-K to the extent stated herein. The 2024 Proxy Statement will be filed with Securities and Exchange Commission within 120 days of the registrant's fiscal year ended December 31, 2023.
Entity Central Index Key	0001544522
Amendment Flag	false
Document Fiscal Year Focus	2023
Document Fiscal Period Focus	FY
Class A Common Stock
Document Information [Line Items]
Entity Common Stock, Shares Outstanding		218,138,784
Class B Common Stock
Document Information [Line Items]
Entity Common Stock, Shares Outstanding		79,798,510

Stockholders' Equity and Stock Based Compensation - Fair Value Assumptions (Details)	12 Months Ended
	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2021
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Dividend yield	0.00%
ESPP
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Dividend yield	0.00%	0.00%	0.00%
ESPP \| Minimum
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Expected term (in years)	6 months	6 months	7 months 6 days
Stock price volatility	47.40%	55.80%	47.70%
Risk-free interest rate	4.47%	1.54%	0.06%
ESPP \| Maximum
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Expected term (in years)	1 year 6 months	2 years	2 years 1 month 6 days
Stock price volatility	77.30%	84.50%	58.50%
Risk-free interest rate	5.38%	4.62%	0.29%
Stock options
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Expected term (in years)	6 years 1 month 6 days
Stock price volatility	65.00%
Risk-free interest rate	3.37%
Dividend yield	0.00%
Performance Based Restricted Stock Units (PRSUs) \| Chief Executive Officer
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Expected term (in years)		7 years
Stock price volatility		60.00%
Risk-free interest rate		1.12%
Dividend yield		0.00%

Net Loss Per Share - Potential Common Equivalents Excluded from Computation of Diluted Net Loss per Share (Details) - shares shares in Thousands	12 Months Ended
	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2021
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive securities excluded from computation of earnings per share (in shares)	29,259	35,135	49,338
RSUs and PSUs
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive securities excluded from computation of earnings per share (in shares)	26,755	32,253	47,830
Stock options
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive securities excluded from computation of earnings per share (in shares)	2,395	2,758	1,348
ESPP
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive securities excluded from computation of earnings per share (in shares)	109	124	160

Cash Equivalents and Marketable Securities - Schedule of Carrying Amounts and Fair Values of Debt Securities (Details) - USD ($) $ in Thousands	Dec. 31, 2023	Dec. 31, 2022
Debt Securities, Available-for-sale [Line Items]
Unrealized Gains	$ 1,005	$ 77
Unrealized Losses	(1,331)	(7,508)
Cash Equivalents And Available-For-Sale Debt Securities [Abstract]
Amortized Cost	1,061,129	1,095,190
Fair Value	1,060,803	1,087,759
Cash equivalents
Debt Securities, Available-for-sale [Line Items]
Unrealized Gains	23	6
Unrealized Losses	0	0
Cash Equivalents And Available-For-Sale Debt Securities [Abstract]
Amortized Cost	362,852	245,836
Fair Value	362,875	245,842
Cash equivalents \| Money market funds
Debt Securities, Available-for-sale [Line Items]
Cash Equivalents	77,832	219,512
Cash equivalents \| U.S. treasury securities
Debt Securities, Available-for-sale [Line Items]
Total	239,727	13,912
Unrealized Gains	22	3
Unrealized Losses	0	0
Fair Value	239,749	13,915
Cash equivalents \| U.S. government agency securities
Debt Securities, Available-for-sale [Line Items]
Total	8,388	10,417
Unrealized Gains	1	2
Unrealized Losses	0	0
Fair Value	8,389	10,419
Cash equivalents \| Corporate debt securities
Debt Securities, Available-for-sale [Line Items]
Total	36,905	1,995
Unrealized Gains	0	1
Unrealized Losses	0	0
Fair Value	36,905	1,996
Debt securities
Debt Securities, Available-for-sale [Line Items]
Total	698,277	849,354
Unrealized Gains	982	71
Unrealized Losses	(1,331)	(7,508)
Fair Value	697,928	841,917
Debt securities \| U.S. treasury securities
Debt Securities, Available-for-sale [Line Items]
Total	264,554	441,909
Unrealized Gains	339	36
Unrealized Losses	(398)	(3,160)
Fair Value	264,495	438,785
Debt securities \| U.S. government agency securities
Debt Securities, Available-for-sale [Line Items]
Total	366,946	301,009
Unrealized Gains	571	35
Unrealized Losses	(824)	(3,531)
Fair Value	366,693	297,513
Debt securities \| Corporate debt securities
Debt Securities, Available-for-sale [Line Items]
Total	66,777	106,436
Unrealized Gains	72	0
Unrealized Losses	(109)	(817)
Fair Value	$ 66,740	$ 105,619

Leases (Tables)

12 Months Ended

Dec. 31, 2023

Leases [Abstract]

Lease, Cost

The following table presents various components of the lease costs (in thousands):


	Year Ended December 31,
Operating Leases	2023		2022
Operating lease cost	$	10,415	$	8,312
Short-term lease cost	415		1,162
Variable lease cost	3,190		2,797

The weighted-average remaining term of the Company's operating leases and the weighted-average discount rate used to measure the present value of the operating lease liabilities are as follows:


	December 31,
Lease Term and Discount Rate	2023		2022
Weighted-average remaining lease term (in years)	5.21		4.81
Weighted-average discount rate	9.1	%	7.4	%


	Year Ended December 31,
Supplemental Cash Flow Information:	2023		2022
Cash payments included in the measurement of operating lease liabilities	$	15,526	$	8,885
Operating ROU assets obtained in exchange for lease obligations	7,461		14,903

Lessee, Operating Lease, Liability, Maturity

Maturities of the operating lease liabilities are as follows (in thousands):


Year Ending December 31:	Operating Leases
2024	$	4,799
2025	10,052
2026	6,882
2027	5,668
2028	4,963
Thereafter	7,213
Total lease payments	39,577
Less: imputed interest	(10,083)
Present value of operating lease liabilities	$	29,494

Revenue from Contracts with Customers - Disaggregation of Revenues (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2021
Disaggregation of Revenue [Line Items]
Revenue	$ 596,432	$ 497,999	$ 371,022
Subscription services
Disaggregation of Revenue [Line Items]
Revenue	582,868	485,322	360,506
Professional services
Disaggregation of Revenue [Line Items]
Revenue	$ 13,564	$ 12,677	$ 10,516

- Definition

Line items represent financial concepts included in a table. These concepts are used to disclose reportable information associated with domain members defined in one or many axes to the table.

+ References + Details

- Definition

+ References

+ Details

Cash Equivalents and Marketable Securities - Amortized Cost and Fair Value Based on Contractual Maturities (Details) - Marketable Securities $ in Thousands	Dec. 31, 2023 USD ($)
Amortized Cost
Due within one year	$ 503,640
Due after one year but within five years	194,637
Total	698,277
Fair Value
Due within one year	502,571
Due after one year but within five years	195,357
Total	$ 697,928

Income Taxes (Tables)

12 Months Ended

Dec. 31, 2023

Income Tax Disclosure [Abstract]

Schedule of Income before Income Tax, Domestic and Foreign

The Company’s net loss before provision for income taxes for the years ended December 31, 2023, 2022, and 2021 was as follows (in thousands):


	Year Ended December 31,
	2023		2022		2021
Domestic	$	(165,144)	$	(252,261)	$	(211,844)
Foreign	41,375		31,471		30,365
Total	$	(123,769)	$	(220,790)	$	(181,479)

Schedule of Components of the Provision for Income Taxes

The components of the provision for income taxes for the years ended December 31, 2023, 2022, and 2021 were as follows (in thousands):


	Year Ended December 31,
	2023		2022		2021
Current:
Domestic	$	2,810	$	2,137	$	2,876
Foreign	12,179		11,610		9,547
Deferred:
Domestic	—		—		—
Foreign	(1,322)		(2,405)		(1,907)
Total provision for income taxes	$	13,667	$	11,342	$	10,516

Schedule of Effective Income Tax Rate Reconciliation

The following is a reconciliation of the federal statutory income tax rate to the Company’s effective tax rate for the years ended December 31, 2023, 2022, and 2021:


	Year Ended December 31,
	2023		2022		2021
Federal income tax	21.0	%	21.0	%	21.0	%

Stock-based compensation	(16.9)		(1.6)		2.1
Change in valuation allowance	(6.4)		(22.4)		(25.4)
Earnings from foreign subsidiaries	(1.8)		(1.2)		(0.5)
U.S. taxes on foreign operations	(4.8)		—		—
Other items	(2.1)		(0.9)		(3.0)
Total provision for income taxes	(11.0)	%	(5.1)	%	(5.8)	%

Schedule of Deferred Tax Assets and Liabilities

The components of the Company’s net deferred tax assets as of December 31, 2023 and 2022, were as follows (in thousands):


	December 31,
	2023		2022
Deferred tax assets:
Net operating loss carryforwards	$	81,373	$	100,090
Foreign tax credit carryforwards	5,999		4,955
Capitalized R&E under IRC 174	65,478		36,970
Stock-based compensation	3,672		4,337
Accruals and Reserves	8,948		9,032
Depreciation and amortization	3,328		1,449
Allowance for uncollectible accounts	1,003		212
Operating lease liability	6,877		19,207
Total deferred tax assets	176,678		176,252
Less: valuation allowance	(154,788)		(146,134)
Deferred tax assets, net of valuation allowance	21,890		30,118
Deferred tax liabilities:
Commissions	(5,926)		(6,146)
Operating lease right-of-use assets	(5,951)		(15,283)
Net deferred tax assets	$	10,013	$	8,689

Schedule of Unrecognized Tax Benefits

The following table presents a reconciliation of the beginning and ending amount of the unrecognized tax benefits (in thousands):


	Year Ended December 31,
	2023		2022
Unrecognized gross tax benefits at the beginning of the period	$	3,647	$	2,227
Increases related to prior year tax positions	—		—
Decreases related to prior year tax positions	(22)		(6)

Increases in current year unrecognized benefits	2,009		1,426
Unrecognized gross tax benefits at the end of the period	$	5,634	$	3,647

Fair Value Measurements - Assets and Liabilities Measured on Recurring Basis (Details) - Fair Value, Recurring - USD ($) $ in Thousands	Dec. 31, 2023	Dec. 31, 2022
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total financial assets	$ 1,062,381	$ 1,089,247
U.S. treasury securities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Marketable securities:	264,495	438,785
U.S. government agency securities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Marketable securities:	366,693	297,513
Corporate debt securities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Marketable securities:	66,740	105,619
Term bond mutual funds
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Marketable securities:	1,578	1,488
Money market funds
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Cash equivalents:	77,832	219,512
U.S. treasury securities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Cash equivalents:	239,749	13,915
U.S. government agency securities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Cash equivalents:	8,389	10,419
Corporate debt securities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Cash equivalents:	36,905	1,996
Level 1
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total financial assets	582,076	672,212
Level 1 \| U.S. treasury securities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Marketable securities:	264,495	438,785
Level 1 \| U.S. government agency securities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Marketable securities:	0	0
Level 1 \| Corporate debt securities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Marketable securities:	0	0
Level 1 \| Term bond mutual funds
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Marketable securities:	0	0
Level 1 \| Money market funds
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Cash equivalents:	77,832	219,512
Level 1 \| U.S. treasury securities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Cash equivalents:	239,749	13,915
Level 1 \| U.S. government agency securities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Cash equivalents:	0	0
Level 1 \| Corporate debt securities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Cash equivalents:	0	0
Level 2
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total financial assets	480,305	417,035
Level 2 \| U.S. treasury securities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Marketable securities:	0	0
Level 2 \| U.S. government agency securities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Marketable securities:	366,693	297,513
Level 2 \| Corporate debt securities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Marketable securities:	66,740	105,619
Level 2 \| Term bond mutual funds
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Marketable securities:	1,578	1,488
Level 2 \| Money market funds
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Cash equivalents:	0	0
Level 2 \| U.S. treasury securities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Cash equivalents:	0	0
Level 2 \| U.S. government agency securities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Cash equivalents:	8,389	10,419
Level 2 \| Corporate debt securities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Cash equivalents:	$ 36,905	$ 1,996

Stockholders' Equity and Stock Based Compensation - Accumulated Other Comprehensive Income (Loss) (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2021
Change in Unrealized Gains or Losses Within Accumulated Other Comprehensive Income [Roll Forward]
Beginning balance	$ 1,051,818	$ 1,238,039	$ (2,696,741)
Net change on cash flow hedging	428	0	0
Total other comprehensive income (loss):	6,677	(6,684)	(1,158)
Ending balance	1,072,262	1,051,818	1,238,039
Accumulated Other Comprehensive Income
Change in Unrealized Gains or Losses Within Accumulated Other Comprehensive Income [Roll Forward]
Beginning balance	(7,431)	(747)	411
Ending balance	(754)	(7,431)	(747)
AOCI, Accumulated Gain (Loss), Debt Securities, Available-for-Sale, Parent
Change in Unrealized Gains or Losses Within Accumulated Other Comprehensive Income [Roll Forward]
Unrealized (losses) gains on available-for-sale debt securities	7,105	(6,684)	(1,152)
Reclassification of unrealized gains to interest and other income, net, in the consolidated statements of operations	0	0	(6)
Net change on cash flow hedging	$ (428)	$ 0	$ 0

- Definition

Amount of equity (deficit) attributable to parent. Excludes temporary equity and equity attributable to noncontrolling interest.

+ References

Reference 1: http://www.xbrl.org/2003/role/exampleRef
-Topic 852
-SubTopic 10
-Name Accounting Standards Codification
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+ Details

Stockholders' Equity and Stock Based Compensation

12 Months Ended

Dec. 31, 2023

Equity [Abstract]

Stockholders' Equity and Stock Based Compensation

9. Stockholders' Equity and Stock-Based Compensation

Common Stock

The Company has two classes of common stock: Class A common stock and Class B common stock. The shares of Class A common stock and Class B common stock are identical, except with respect to voting, conversion, and transfer rights. Each share of Class A common stock is entitled to one vote. Each share of Class B common stock is entitled to ten votes. Class A and Class B common stock are referred to as common stock throughout these notes to the consolidated financial statements, unless otherwise noted. Holders of common stock are entitled to receive any dividends as may be declared from time to time by the board of directors.

Shares of Class B common stock may be converted to Class A common stock at any time at the option of the stockholder. Shares of Class B common stock automatically convert to Class A common stock upon the following: (1) sale or transfer of such share of Class B common stock, except for certain permitted transfers as described in our amended and restated certificate of incorporation; (2) the death of such Class B common stockholder (or nine months after the date of death if the stockholder is our founder); and (3) on the final conversion date, defined as the earlier of (a) the last trading day of the fiscal year following the seventh anniversary of the Company's IPO; or (b) the date specified by a vote of the holders of a majority of the outstanding shares of Class B common stock, voting as a single class.

Accumulated Other Comprehensive Income (Loss)

Accumulated other comprehensive income (loss) is comprised of two components — unrealized gains or losses on available-for-sale debt securities and net changes in cash flow hedges.

The following tables shows the changes in the components of accumulated other comprehensive (loss) income:


	Year Ended December 31,
	2023		2022		2021
Beginning balance	$	(7,431)	$	(747)	$	411
Unrealized (losses) gains on available-for-sale debt securities	7,105		(6,684)		(1,152)

Reclassification of unrealized gains to interest and other income, net, in the consolidated statements of operations	—		—		(6)
Net change on cash flow hedging	(428)		—		—
Net impact to other comprehensive (loss) income in current period	6,677		(6,684)		(1,158)
Ending balance	$	(754)	$	(7,431)	$	(747)

Equity Compensation Plans

In August 2021, the board of directors (the Board) adopted and, in September 2021, the stockholders approved the 2021 Equity Incentive Plan (the 2021 Plan) and the 2021 Employee Stock Purchase Plan (ESPP), effective upon the IPO. Pursuant to the 2021 Plan, the Board may grant incentive stock options to purchase shares of the Company’s common stock, non-statutory stock options to purchase shares of the Company’s common stock, stock appreciation rights, restricted stock, restricted stock units (RSUs), performance awards (PRSUs) and other awards. The ESPP enables eligible employees to purchase the Company's Class A common stock. Both the 2021 Plan and ESPP include an automatic increase to their shares reserve on January 1 of each year as set forth in the respective plan documents.

In August 2022, the Compensation Committee of the Board adopted the 2022 Inducement Plan (the Inducement Plan) in accordance with Listing Rule 5635(c)(4) of the Nasdaq Stock Market. Under the Inducement Plan, nonstatutory stock options,

stock appreciation rights, restricted stock, RSUs, PRSUs and other awards may be granted as an inducement material for eligible persons to enter into employment with the Company. Upon adoption, the Company has initially reserved 10,000,000 shares of Class A common stock for issuance under the Inducement Plan.

In September 2022, the Company hired a President and granted him 1,732,501 RSUs under the Inducement Plan and stock options to purchase up to 1,815,980 shares of Class A common stock, of which stock options to purchase up to 1,776,780 shares of Class A common stock were granted under the Inducement Plan and the remaining under the 2021 Plan. Each award will vest over four years with 25% of the shares vesting on the first anniversary of the grant date and the remaining 75% of the shares vesting in equal quarterly installments thereafter, subject to continued employment.

Shares of common stock reserved for future issuance were as follows (in thousands):


			December 31,
			2023
2011 Stock Plan:
Options, RSUs and PRSUs outstanding			12,866

2021 Equity Incentive Plan:
Options and RSUs outstanding			12,939
Shares reserved for future award issuances			65,635
2022 Inducement Plan:
Options and RSUs outstanding			3,345
Shares reserved for future award issuances			6,377
2021 Employee Stock Purchase Plan
Shares reserved for future award issuances			10,517
Total shares of common stock reserved for issuance			111,679

2021 Employee Stock Purchase Plan

Under the ESPP, the price at which common stock is purchased is equal to 85% of the fair market value of a share of the Company’s common stock on the first day of the offering period or the applicable purchase date, whichever is lower. The fair market value of common stock will generally be the closing sales price on the determination date. The ESPP provides an offering period of 24 months, with four purchase periods that are generally six months long and end on May 15 and November 15 of each year, except for the first purchase period, which began upon the completion of the IPO in September 2021 and ended on May 13, 2022. The following table summarizes the information on shares purchased under the ESPP for the years ended December 31, 2023 and 2022:


	Year Ended December 31,
	2023		2022
Net shares issued under ESPP(1)	627,371		822,423
Weighted average purchase price	$	11.88	$	13.33
Aggregate net proceeds (in thousands)	$	7,271	$	10,870

(1) Net of shares withheld and retired to satisfy withholding tax requirements for certain employees in jurisdictions outside the United States

The ESPP also includes a reset provision for the purchase price if the fair market value of a share of the Company's common stock on the first day of any purchase period is less than or equal to the fair market value of a share of the Company's common stock on the first day of an ongoing offering. If the reset provision is triggered, a new 24-month offering period begins. The reset provision under the ESPP was triggered on May 16, 2022, and again on November 16, 2022. Each triggering of the reset provision was considered a modification in accordance with ASC 718, Stock Based Compensation, with the modification charge recognized on a straight-line basis over the new offering period. The previous modifications did not have a material effect on the Company's stock-based compensation expense during the years ended December 31, 2023 and 2022.

As of December 31, 2023 and 2022, the Company has withheld $1.3 million and $1.5 million of contributions from its employees.

During the years ended December 31, 2023, 2022 and 2021, the Company recognized $7.6 million, $12.2 million and $3.5 million of stock-based compensation expense related to the ESPP, respectively.

Determination of Fair Value of the ESPP

The Company estimates the fair value of the ESPP using the Black-Scholes option-pricing model, which requires certain complex valuation assumption inputs such as expected term, expected stock price volatility, risk-free interest rate and dividend yield. The fair value of each of the four purchase periods is estimated separately. The following table summarizes the range of valuation assumptions used in estimating the fair value of the ESPP during the period:


	Year Ended December 31,
Valuation Assumption Inputs	2023	2022	2021
Expected term (in years)	0.5 - 1.5	0.5 - 2.0	0.6 - 2.1
Stock price volatility	47.4% - 77.3%	55.8% - 84.5%	47.7% - 58.5%
Risk-free interest rate	4.47% - 5.38%	1.54% - 4.62%	0.06% - 0.29%
Dividend yield	0.00%	0.00%	0.00%

Stock Options

Stock options are generally granted with an exercise price equal to the fair market value of a share of common stock at the date of grant, have a 10-year contractual term, and vest over a four-year period.

Stock option activity during the year ended December 31, 2023 is as follows (in thousands, except per share data):


Share Information:	Number of Shares	Weighted-Average Exercise Price		Weighted-Average Remaining Contractual Term (in years)	Aggregate Intrinsic Value (1)
Balance as of December 31, 2022	2,758	$	9.06	7.3	$	15,595
Stock options granted	—	$	—
Stock options exercised	(360)	$	0.25
Stock options cancelled / forfeited / expired	(3)	$	0.16
Balance as of December 31, 2023	2,395	$	10.39	7.0	$	31,368
Options vested and expected to vest as of December 31, 2023	2,395	$	10.39	7.0	$	31,368
Options exercisable as of December 31, 2023	1,146	$	6.89	5.2	$	19,033

(1)Aggregate intrinsic value for stock options represents the difference between the exercise price and the per share fair value of the Company’s common stock as of the end of the period, multiplied by the number of stock options outstanding, exercisable, or vested.

Total intrinsic value of options exercised during the years ended December 31, 2023, 2022, and 2021 was $6.8 million, $5.9 million, and $14.0 million, respectively.

The weighted-average grant date fair value of stock options granted was $8.26 per share during the year ended December 31, 2022. There were no options granted during the years ended December 31, 2023 and 2021.

Determination of Fair Value of Stock Options

The Company estimates the fair value of stock options using the Black-Scholes option-pricing model, which requires certain complex valuation assumption inputs such as expected term, expected stock price volatility, risk-free interest rate, and dividend yield. The following table summarizes the valuation assumptions used in estimating the fair value of stock options granted during the year:


						Year Ended December 31,
Valuation Assumption Inputs						2022
Expected term (in years)						6.1
Stock price volatility						65.0%
Risk-free interest rate						3.37%
Dividend yield						—%

Restricted Stock Units

RSUs are granted at fair market value at the date of the grant and typically vest over a four-year period.

RSU activity, which includes PRSUs, during the year ended December 31, 2023 is as follows (in thousands, except per share data):


Share Information:	Number of Shares	Weighted-Average Grant Date Fair Value
Unvested, as of December 31, 2022	32,253	$	18.86
Granted	9,583	$	14.34
Vested (1)	(10,629)	$	16.49
Forfeited	(4,452)	$	17.32
Unvested, as of December 31, 2023	26,755	$	18.44

(1) During the year ended December 31, 2023 total shares that vested were 10.6 million, of which 4.0 million shares were withheld for tax purposes.

The total fair value of vested RSUs during the years ended December 31, 2023, 2022, and 2021 were $175.3 million, $235.0 million, and $51.3 million, respectively.

Performance-Based Awards

In May 2019, the Board approved a grant of 166,390 shares PRSUs to the Company’s CEO. The vesting of these PRSUs is contingent upon the satisfaction of certain milestones. The revenue-related milestone and the liquidity event condition were met prior to December 31, 2021 upon the completion of the IPO as described in Note 1 - Description of Business. Upon completion of the IPO, the time-based vesting was the only condition yet to be satisfied over the remaining requisite service period. All shares related to this grant were vested as of December 31, 2023.

In September 2021, the Board approved a grant of 6,000,000 PRSUs to the Company's CEO with a time-based service condition beginning January 1, 2022, and a market condition involving five separate stock price targets ranging from $70.00 to $200.00 per share for each of the five vesting tranches (CEO Performance Award). These stock price targets will be measured based on the average closing price over a consecutive 60-trading day period, beginning on the first trading day after the expiration of the final lock-up period in February 2022. The vesting of the CEO Performance Award is contingent upon the completion of the requisite service through January 1, 2029 and the achievement of the specified stock price target in each tranche on or before January 1, 2029. The stock price targets are not required to be achieved within the service period of each tranche, and accordingly, multiple tranches can vest at the same date if the specified stock price targets are achieved after December 31, 2025. The CEO Performance Award had a total grant date fair value of $131.0 million.

The fair value of the CEO Performance Award was determined at grant date by using the Monte Carlo simulation model, which requires certain complex valuation assumption inputs such as measurement period, expected stock price volatility, risk-free interest rate and dividend yield.

The valuation assumptions using the Monte Carlo simulation model at the date of grant were:



Valuation Assumption Inputs
Measurement period (in years)						7.0
Stock price volatility						60.0%
Risk-free interest rate						1.12%
Dividend yield						—%

For the years ended December 31, 2023, 2022 and 2021 the Company recognized $28.1 million, $27.6 million and $9.0 million of stock-based compensation expense associated with performance-based awards, respectively, which were primarily related to the CEO Performance Award.

Stock-Based Compensation

Total stock-based compensation expense recorded for the years ended December 31, 2023, 2022, and 2021 was as follows (in thousands):


	Year Ended December 31,
	2023		2022		2021
Equity awards:
Cost of revenue	$	6,774	$	7,039	$	5,604
Research and development (1)	37,524		36,413		45,162
Sales and marketing (2)	66,755		64,328		53,169
General and administrative (3)	99,654		99,916		69,508


Stock-based compensation, net of amounts capitalized	210,707		207,696		173,443
Capitalized stock-based compensation	1,758		1,665		585
Total stock-based compensation expense	$	212,465	$	209,361	$	174,028

(1) Stock-based compensation expense recorded to research and development in the consolidated statements of operations excludes amounts that were capitalized for internal-use software.

(2) Sales and marketing expense for the years ended December 31, 2023 and 2022 includes $9.6 million and $3.2 million, respectively, of stock-based compensation expense associated with RSU and options granted to the President in September 2022.

(3) General and administrative expense includes $55.9 million, $55.9 million and $19.1 million of stock-based compensation expense associated with RSUs and PRSUs primarily granted to the CEO in September 2021 for the years ended December 31, 2023, 2022 and 2021, respectively.

For the year ended December 31, 2021, stock-based compensation expense of $173.4 million included a cumulative charge associated with certain RSUs for which the service-based vesting condition was satisfied upon the completion of the IPO (liquidity event), as further described in Note 1—Description of Business.

As of December 31, 2023, unrecognized stock-based compensation expense related to unvested stock-based awards was as follows (in thousands, except for period data):


	December 31, 2023
	Unrecognized Stock-Based Compensation		Weighted-Average Period to Recognize Expense (in years)
RSUs and PSUs	$	390,716	2.6
Stock options	10,010		2.7
ESPP	4,288		0.6
Total unrecognized stock-based compensation expense	$	405,014

Commitment and Contingencies (Tables)

12 Months Ended

Dec. 31, 2023

Commitments and Contingencies Disclosure [Abstract]

Schedule of Future Minimum Payments Under the Company’s Non-cancelable Purchase Commitments

Future minimum payments under the Company’s non-cancelable purchase commitments as of December 31, 2023 are presented in the table below (in thousands):


Year ending December 31,	Contractual Commitments
2024	$	63,703
2025	67,144
2026	67,662
2027	71,242
2028	67,741
Total	$	337,492

Leases - Schedule of Maturities of Operating Lease Liabilities (Details) $ in Thousands	Dec. 31, 2023 USD ($)
Leases [Abstract]
2024	$ 4,799
2025	10,052
2026	6,882
2027	5,668
2028	4,963
Thereafter	7,213
Total lease payments	39,577
Less: imputed interest	(10,083)
Present value of operating lease liabilities	$ 29,494

Balance Sheet Components

12 Months Ended

Dec. 31, 2023

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Balance Sheet Components

6. Balance Sheet Components

Property and Equipment, net

The following table summarizes property and equipment, net as of December 31, 2023 and 2022 (in thousands):


	December 31,
	2023		2022
Computers	$	17,188	$	16,552
Capitalized internal-use software	28,259		20,230
Office equipment	4,357		3,744
Furniture and fixtures	8,886		8,881
Motor vehicles	808		1,158
Leasehold improvements	5,768		5,654
Construction in progress	751		224
Total property and equipment	66,017		56,443
Less: accumulated depreciation and amortization	(43,270)		(32,304)
Property and equipment, net	$	22,747	$	24,139

The following table summarizes depreciation expense and internal-use software capitalization and amortization expense for the years ended December 31, 2023, 2022 and 2021 (in thousands):


	Year Ended December 31,
	2023		2022		2021
Capitalization of costs associated with internal-use software	$	8,029	$	6,781	$	4,137
Amortization expense of capitalized internal-use software	5,106		3,193		2,542
Depreciation expense	6,735		6,720		6,423

As of December 31, 2023 and 2022, the net carrying value of capitalized internal-use software was $14.1 million and $11.2 million, respectively.

Accrued and Other Liabilities

The following table summarizes accrued liabilities as of December 31, 2023 and 2022 (in thousands):


	December 31,
	2023		2022
Accrued compensation	$	20,976	$	20,192
Accrued third-party cloud infrastructure expenses	—		2,752
Accrued reseller commissions	9,641		7,731
Accrued advertising and marketing expenses	2,095		4,465
Advanced payments from customers	4,265		3,480
Accrued taxes	10,964		7,730
Operating lease liabilities, current	2,699		6,775
Contributions withheld for employee stock purchase plan	1,298		1,546
Other accrued expenses	4,670		4,337
Total accrued liabilities	$	56,608	$	59,008

Noncurrent liabilities include $22.7 million and $23.3 million of long term accrued compensation as of December 31, 2023 and 2022, respectively.

Income Taxes - Deferred Tax Assets and Liabilities (Details) - USD ($) $ in Thousands	Dec. 31, 2023	Dec. 31, 2022
Deferred tax assets:
Net operating loss carryforwards	$ 81,373	$ 100,090
Foreign tax credit carryforwards	5,999	4,955
Capitalized R&E under IRC 174	65,478	36,970
Stock-based compensation	3,672	4,337
Accruals and Reserves	8,948	9,032
Depreciation and amortization	3,328	1,449
Allowance for uncollectible accounts	1,003	212
Operating lease liability	6,877	19,207
Total deferred tax assets	176,678	176,252
Less: valuation allowance	(154,788)	(146,134)
Deferred tax assets, net of valuation allowance	21,890	30,118
Deferred tax liabilities:
Commissions	(5,926)	(6,146)
Operating lease right-of-use assets	(5,951)	(15,283)
Net deferred tax assets	$ 10,013	$ 8,689

Summary of Significant Accounting Policies (Tables)

12 Months Ended

Dec. 31, 2023

Accounting Policies [Abstract]

Useful Lives of Property, Plant and Equipment

Depreciation is calculated using the straight-line method over the estimated useful lives of the respective assets as follows:


			Estimated Useful Life
Computers			3 years
Capitalized internal-use software			3 years
Office equipment, furniture and fixtures			5 years
Motor vehicles			5 years
Leasehold improvements			Lesser of lease term or 5 years

The following table summarizes property and equipment, net as of December 31, 2023 and 2022 (in thousands):


	December 31,
	2023		2022
Computers	$	17,188	$	16,552
Capitalized internal-use software	28,259		20,230
Office equipment	4,357		3,744
Furniture and fixtures	8,886		8,881
Motor vehicles	808		1,158
Leasehold improvements	5,768		5,654
Construction in progress	751		224
Total property and equipment	66,017		56,443
Less: accumulated depreciation and amortization	(43,270)		(32,304)
Property and equipment, net	$	22,747	$	24,139

The following table summarizes depreciation expense and internal-use software capitalization and amortization expense for the years ended December 31, 2023, 2022 and 2021 (in thousands):


	Year Ended December 31,
	2023		2022		2021
Capitalization of costs associated with internal-use software	$	8,029	$	6,781	$	4,137
Amortization expense of capitalized internal-use software	5,106		3,193		2,542
Depreciation expense	6,735		6,720		6,423

Stockholders' Equity and Stock Based Compensation - Narrative (Details) $ / shares in Units, $ in Thousands	1 Months Ended			12 Months Ended
	Sep. 30, 2022 shares	Sep. 30, 2021 USD ($) target tranche $ / shares shares	May 31, 2019 shares	Dec. 31, 2023 USD ($) stockClass vote purchasePeriod shares	Dec. 31, 2022 USD ($) $ / shares	Dec. 31, 2021 USD ($) shares	Aug. 31, 2022 shares
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of type of class stocks \| stockClass				2
Total shares of common stock reserved for issuance (in shares) \| shares				111,679,000
Stock options granted (in shares) \| shares				0		0
Contributions withheld for employee stock purchase plan				$ 1,298	$ 1,546
Share-based payment arrangement, expensed and capitalized, amount				212,465	209,361	$ 174,028
Intrinsic value of option exercised				6,800	$ 5,900	14,000
Weighted average grant date fair value (in USD per share) \| $ / shares					$ 8.26
Stock-based compensation expense				$ 210,707	$ 207,696	173,443
2022 Inducement Plan:
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Total shares of common stock reserved for issuance (in shares) \| shares				6,377,000			10,000,000
President
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock-based compensation expense				$ 9,600	3,200
President \| Share-Based Payment Arrangement, Tranche One
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting percentage	25.00%
President \| Share-Based Payment Arrangement, Tranche Two
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting percentage	75.00%
ESPP
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Total shares of common stock reserved for issuance (in shares) \| shares				10,517,000
Offering period				24 months
Number of purchase periods \| purchasePeriod				4
Purchase period				6 months
ESPP offering period				24 months
Share-based payment arrangement, expensed and capitalized, amount				$ 7,600	12,200	3,500
Stock options
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Award vesting period				4 years
Contractual term				10 years
Stock options \| President
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Award vesting period	4 years
Stock options \| President \| Inducement Plan And 2021 Plan
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock options granted (in shares) \| shares	1,815,980
Stock options \| President \| 2022 Inducement Plan:
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock options granted (in shares) \| shares	1,776,780
Restricted Stock Units
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of shares approved for grant (in shares) \| shares				9,583,000
Award vesting period				4 years
Total grant date fair value				$ 175,300	235,000	51,300
Stock-based compensation expense						173,400
Restricted Stock Units \| President
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Award vesting period	4 years
Restricted Stock Units \| President \| 2022 Inducement Plan:
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of shares approved for grant (in shares) \| shares	1,732,501
Performance Based Restricted Stock Units (PRSUs)
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock-based compensation expense				$ 28,100	$ 27,600	$ 9,000
Performance Based Restricted Stock Units (PRSUs) \| Chief Executive Officer
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of shares approved for grant (in shares) \| shares		6,000,000	166,390
Total grant date fair value		$ 131,000
Number of threshold stock price targets \| target		5
Number of threshold vesting tranches \| tranche		5
Trading day period		60 days
Performance Based Restricted Stock Units (PRSUs) \| Chief Executive Officer \| Minimum
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Threshold stock price target (in USD per share) \| $ / shares		$ 70.00
Performance Based Restricted Stock Units (PRSUs) \| Chief Executive Officer \| Maximum
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Threshold stock price target (in USD per share) \| $ / shares		$ 200.00
Class A Common Stock
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Common stock, number of votes per share \| vote				1
Class A Common Stock \| ESPP
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Purchase price of common stock in percent				85.00%
Class B Common Stock
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Common stock, number of votes per share \| vote				10

Summary of Significant Accounting Policies - Narrative (Details)	12 Months Ended
	Dec. 31, 2023 USD ($) segment	Dec. 31, 2022 USD ($)	Dec. 31, 2021 USD ($)
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of operating segments \| segment	1
Advertising costs	$ 41,200,000	$ 47,200,000	$ 41,200,000
Dividend yield	0.00%
Credit loss on available-for-sale debt securities	$ 0	0	0
Capitalized contract costs, amortization period	3 years
Impairment loss on incremental selling costs capitalized	$ 0	0	0
Impairment of goodwill	0	0	$ 0
Plan benefit obligation	11,900,000	9,600,000
Liability, defined benefit plan, noncurrent	10,500,000	8,600,000
Liability, defined benefit plan, current	1,400,000	$ 1,000,000
Foreign Exchange Forward
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Derivative, notional amount	$ 55,800,000
Capitalized internal-use software
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Estimated useful life	3 years

Cash Equivalents and Marketable Securities - Schedule of Continuous Unrealized Loss Position and Fair Values of Debt Securities (Details) - USD ($) $ in Thousands	Dec. 31, 2023	Dec. 31, 2022
Fair Value
Less than 12 months	$ 221,212	$ 442,071
Greater than 12 months	136,056	170,733
Total	357,268	612,804
Unrealized Loss
Less than 12 months	(582)	(4,494)
Greater than 12 months	(749)	(3,014)
Total	(1,331)	(7,508)
U.S. treasury securities
Fair Value
Less than 12 months	60,869	190,820
Greater than 12 months	42,667	105,115
Total	103,536	295,935
Unrealized Loss
Less than 12 months	(159)	(1,794)
Greater than 12 months	(239)	(1,366)
Total	(398)	(3,160)
U.S. government agency securities
Fair Value
Less than 12 months	145,594	220,766
Greater than 12 months	80,455	42,754
Total	226,049	263,520
Unrealized Loss
Less than 12 months	(364)	(2,245)
Greater than 12 months	(460)	(1,286)
Total	(824)	(3,531)
Corporate debt securities
Fair Value
Less than 12 months	14,749	30,485
Greater than 12 months	12,934	22,864
Total	27,683	53,349
Unrealized Loss
Less than 12 months	(59)	(455)
Greater than 12 months	(50)	(362)
Total	$ (109)	$ (817)

Summary of Significant Accounting Policies - Property and Equipment (Details)	Dec. 31, 2023
Computers
Property, Plant and Equipment [Line Items]
Estimated Useful Life	3 years
Capitalized internal-use software
Property, Plant and Equipment [Line Items]
Estimated Useful Life	3 years
Office equipment, furniture and fixtures
Property, Plant and Equipment [Line Items]
Estimated Useful Life	5 years
Motor vehicles
Property, Plant and Equipment [Line Items]
Estimated Useful Life	5 years
Leasehold improvements
Property, Plant and Equipment [Line Items]
Estimated Useful Life	5 years

Income Taxes - Schedule of Unrecognized Tax Benefits (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2023	Dec. 31, 2022
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward]
Unrecognized gross tax benefits at the beginning of the period	$ 3,647	$ 2,227
Increases related to prior year tax positions	0	0
Decreases related to prior year tax positions	(22)	(6)
Increases in current year unrecognized benefits	2,009	1,426
Unrecognized gross tax benefits at the end of the period	$ 5,634	$ 3,647

Stockholders' Equity and Stock Based Compensation - Stock-based Compensation Expense (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2021
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]
Total employee awards	$ 210,707	$ 207,696	$ 173,443
Stock-based compensation capitalized as internal-use software	1,758	1,665	585
Total stock-based compensation expense	212,465	209,361	174,028
President
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]
Total employee awards	9,600	3,200
RSUs and PSUs \| Chief Executive Officer
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]
Total employee awards	55,900	55,900	19,100
Cost of revenue \| Equity awards:
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]
Total employee awards	6,774	7,039	5,604
Research and development \| Equity awards:
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]
Total employee awards	37,524	36,413	45,162
Sales and marketing \| Equity awards:
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]
Total employee awards	66,755	64,328	53,169
General and administrative \| Equity awards:
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]
Total employee awards	$ 99,654	$ 99,916	$ 69,508

Cash Equivalents and Marketable Securities

12 Months Ended

Dec. 31, 2023

Investments, Debt and Equity Securities [Abstract]

Cash Equivalents and Marketable Securities

4. Cash Equivalents and Marketable Securities

Cash equivalents and available-for-sale debt securities consisted of the following as of December 31, 2023 and 2022 (in thousands):


	December 31, 2023
	Amortized Cost		Unrealized Gains		Unrealized Losses		Fair Value
Cash equivalents:
Money market funds	$	77,832	$	—	$	—	$	77,832
U.S. treasury securities	239,727		22		—		239,749
U.S. government agency securities	8,388		1		—		8,389
Corporate debt securities	36,905		—		—		36,905
Total cash equivalents	362,852		23		—		362,875
Debt securities:
U.S. treasury securities	264,554		339		(398)		264,495
U.S. government agency securities	366,946		571		(824)		366,693
Corporate debt securities	66,777		72		(109)		66,740
Total debt securities	698,277		982		(1,331)		697,928
Total cash equivalents and debt securities	$	1,061,129	$	1,005	$	(1,331)	$	1,060,803


	December 31, 2022
	Amortized Cost		Unrealized Gains		Unrealized Losses		Fair Value
Cash equivalents:
Money market funds	$	219,512	$	—	$	—	$	219,512
U.S. treasury securities	13,912		3		—		13,915
U.S. government agency securities	10,417		2		—		10,419
Corporate debt securities	1,995		1		—		1,996
Total cash equivalents	245,836		6		—		245,842
Debt securities:
U.S. treasury securities	441,909		36		(3,160)		438,785
U.S. government agency securities	301,009		35		(3,531)		297,513
Corporate debt securities	106,436		—		(817)		105,619
Total debt securities	849,354		71		(7,508)		841,917
Total cash equivalents and debt securities	$	1,095,190	$	77	$	(7,508)	$	1,087,759

The following table presents gross unrealized losses and fair values for the securities that were in a continuous unrealized loss position as of December 31, 2023 and 2022 (in thousands):


	December 31, 2023
	Less than 12 months				Greater than 12 months				Total
	Fair Value		Unrealized Loss		Fair Value		Unrealized Loss		Fair Value		Unrealized Loss
U.S. treasury securities	$	60,869	$	(159)	$	42,667	$	(239)	$	103,536	$	(398)
U.S. government agency securities	145,594		(364)		80,455		(460)		226,049		(824)
Corporate debt securities	14,749		(59)		12,934		(50)		27,683		(109)
Total	$	221,212	$	(582)	$	136,056	$	(749)	$	357,268	$	(1,331)


	December 31, 2022
	Less than 12 months				Greater than 12 months				Total
	Fair Value		Unrealized Loss		Fair Value		Unrealized Loss		Fair Value		Unrealized Loss
U.S. treasury securities	$	190,820	$	(1,794)	$	105,115	$	(1,366)	$	295,935	$	(3,160)
U.S. government agency securities	220,766		(2,245)		42,754		(1,286)		263,520		(3,531)
Corporate debt securities	30,485		(455)		22,864		(362)		53,349		(817)
Total	$	442,071	$	(4,494)	$	170,733	$	(3,014)	$	612,804	$	(7,508)

The amortized cost and fair value of the available-for-sale debt securities based on contractual maturities are as follows (in thousands):


	December 31, 2023
	Amortized Cost		Fair Value
Due within one year	$	503,640	$	502,571
Due after one year but within five years	194,637		195,357
Total	$	698,277	$	697,928

Accrued interest receivable of $4.4 million and $2.8 million was classified as prepaid expenses and other current assets in the consolidated balance sheets as of December 31, 2023 and December 31, 2022, respectively.

In addition to available-for-sale debt securities, marketable securities also include term bond mutual funds, which are measured at fair value. As of December 31, 2023 and 2022, the fair value of the term bond mutual funds was $1.6 million and $1.5 million, respectively. The change in fair value of the term bond mutual funds is recorded in interest and other income, net in the consolidated statements of operations. The realized and unrealized gains recognized in the consolidated statements of operations for the term bond mutual funds were not material during the years ended December 31, 2023, 2022, and 2021.

Non-Marketable Equity Securities

Non-marketable equity securities represent the Company's interest in privately-held entities. The Company does not have significant influence over these investments, which do not have readily determinable fair values. Under ASU 2016-01, the Company has elected the measurement alternative to carry them at cost, less any impairment charges, and reports them under other assets in the consolidated balance sheets. As of December 31, 2023 and December 31, 2022, the Company's non-marketable equity securities were not material.

In September 2021, the Company sold its interest in a privately held entity for proceeds totaling $24 million, resulting in a gain of $23.8 million, which was recorded in interest and other income, net, in the consolidated statements of operations.

Geographic Information

12 Months Ended

Dec. 31, 2023

Segment Reporting [Abstract]

Geographic Information

12. Geographic Information

Revenue by geographic location is determined based on the customers' billing address. The following table summarizes revenue by geographic region (in thousands):


	Year Ended December 31,
	2023		2022		2021
North America	$	266,331	$	216,112	$	160,224
Europe, Middle East and Africa	229,983		193,899		152,542
Asia Pacific	83,109		74,948		49,933
Other	17,009		13,040		8,323
Total revenue	$	596,432	$	497,999	$	371,022

Revenue from North America primarily includes revenue from the United States. For the years ended December 31, 2023, 2022 and 2021, revenue generated from the United States was $235.3 million, $192.2 million and $142.9 million, or 39%, 39% and 39% of total consolidated revenue, respectively. The United Kingdom, categorized within Europe, Middle East and Africa in the table above, contributed $75.1 million, $63.8 million and $52.9 million or 13%, 13% and 14% of total consolidated revenue for the years ended December 31, 2023, 2022 and 2021, respectively.

Long-lived assets consist primarily of property, plant and equipment and ROU assets. The following table summarizes long-lived assets by geographic information (in thousands):


	December 31,
	2023		2022
North America	$	22,635	$	23,839
Europe, Middle East and Africa	2,244		4,039
Asia Pacific	30,617		29,285
Total long-lived assets	$	55,496	$	57,163

Long-lived assets in North America are primarily located in the United States, and long-lived assets in Asia Pacific are primarily located in India

- Definition

The entire disclosure for reporting segments including data and tables. Reportable segments include those that meet any of the following quantitative thresholds a) it's reported revenue, including sales to external customers and intersegment sales or transfers is 10 percent or more of the combined revenue, internal and external, of all operating segments b) the absolute amount of its reported profit or loss is 10 percent or more of the greater, in absolute amount of 1) the combined reported profit of all operating segments that did not report a loss or 2) the combined reported loss of all operating segments that did report a loss c) its assets are 10 percent or more of the combined assets of all operating segments.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Topic 280
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 22
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482810/280-10-50-22

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Topic 280
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 15
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482810/280-10-50-15

Reference 3: http://www.xbrl.org/2003/role/disclosureRef
-Topic 280
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 31
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482810/280-10-50-31

Reference 4: http://www.xbrl.org/2003/role/disclosureRef
-Topic 280
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 32
-Subparagraph (d)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482810/280-10-50-32

Reference 5: http://www.xbrl.org/2003/role/disclosureRef
-Topic 280
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 42
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482810/280-10-50-42

Reference 6: http://www.xbrl.org/2003/role/disclosureRef
-Topic 280
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 32
-Subparagraph (f)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482810/280-10-50-32

Reference 7: http://www.xbrl.org/2003/role/disclosureRef
-Topic 280
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 40
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482810/280-10-50-40

Reference 8: http://www.xbrl.org/2003/role/disclosureRef
-Topic 280
-Name Accounting Standards Codification
-Publisher FASB
-URI https://asc.fasb.org//280/tableOfContent

Reference 9: http://www.xbrl.org/2003/role/disclosureRef
-Topic 280
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 26
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482810/280-10-50-26

Reference 10: http://www.xbrl.org/2003/role/disclosureRef
-Topic 280
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 34
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482810/280-10-50-34

Reference 11: http://www.xbrl.org/2003/role/disclosureRef
-Topic 280
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 41
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482810/280-10-50-41

Reference 12: http://www.xbrl.org/2003/role/disclosureRef
-Topic 280
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 21
-Subparagraph (a)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482810/280-10-50-21

Reference 13: http://www.xbrl.org/2003/role/disclosureRef
-Topic 280
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 21
-Subparagraph (b)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482810/280-10-50-21

Reference 14: http://www.xbrl.org/2003/role/disclosureRef
-Topic 280
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 32
-Subparagraph (e)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482810/280-10-50-32

+ Details

Pay vs Performance Disclosure - USD ($) $ in Thousands	12 Months Ended
Pay vs Performance Disclosure - USD ($) $ in Thousands	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2021
Pay vs Performance Disclosure
Net loss	$ (137,436)	$ (232,132)	$ (191,995)

- Definition

The portion of profit or loss for the period, net of income taxes, which is attributable to the parent.

+ References

+ Details

Income Taxes - Reconciliation of the federal statutory income tax rate to the Company’s effective tax rate (Details)	12 Months Ended
	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2021
Income Tax Disclosure [Abstract]
Federal income tax	21.00%	21.00%	21.00%
Stock-based compensation	(16.90%)	(1.60%)	2.10%
Change in valuation allowance	(6.40%)	(22.40%)	(25.40%)
Earnings from foreign subsidiaries	(1.80%)	(1.20%)	(0.50%)
Effective Income Tax Rate Reconciliation, Repatriation of Foreign Earnings, Percent	(4.80%)	0.00%	0.00%
Other items	(2.10%)	(0.90%)	(3.00%)
Total provision for income taxes	(11.00%)	(5.10%)	(5.80%)

Subsequent Events (Details) - Annual Long Term Equity Award - Forecast $ in Millions	Mar. 01, 2024 USD ($)
Subsequent Event [Line Items]
Deferred compensation arrangement with individual, fair value of shares issued	$ 19.0
Restricted Stock Units
Subsequent Event [Line Items]
Deferred compensation arrangement with individual, equity percentage	70.00%
Performance Shares
Subsequent Event [Line Items]
Deferred compensation arrangement with individual, equity percentage	30.00%

Revenue from Contracts with Customers - Deferred Contract Acquisition Costs (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2021
Change in Deferred Contract Acquisition Costs [Roll Forward]
Balance at beginning of the year	$ 39,675	$ 29,647	$ 18,273
Add: Contract costs capitalized during the year	26,962	28,560	24,218
Less: Amortization of contract costs during the year	(23,965)	(18,532)	(12,844)
Balance at end of the year	$ 42,672	$ 39,675	$ 29,647

Summary of Significant Accounting Policies

12 Months Ended

Dec. 31, 2023

Accounting Policies [Abstract]

Summary of Significant Accounting Policies

2. Summary of Significant Accounting Policies

Basis of Presentation and Principles of Consolidation

Foreign Currency Remeasurement and Transactions

Use of Estimates

•determination of standalone selling price (SSP) for each distinct performance obligation included in customer contracts with multiple performance obligations;

•allowance for doubtful accounts;

•expected benefit period of deferred contract acquisition costs;

•capitalization of internal-use software development costs;

•fair value of goodwill;

•useful lives of long-lived assets;

•valuation of deferred tax assets;

•valuation of employee defined benefit plan and other compensation liabilities;

•fair value of share-based awards, including performance-based awards; and

•incremental borrowing rate used for operating leases.

Segment Information

Revenue Recognition

Subscription Revenue

Professional Services Revenue

Customers with Multiple Performance Obligations

Cost of Revenue

Research and Development

Advertising Costs

Advertising costs are charged to sales and marketing expense in the consolidated statements of operations as incurred. The Company recognized $41.2 million, $47.2 million, and $41.2 million for the years ended December 31, 2023, 2022, and 2021, respectively.

Stock-Based Compensation

Risk-free interest rate—The risk-free interest rate is based on the yield of the U.S. treasury debt securities commensurate with the expected term.

Dividend yield—Since the Company has never paid and has no intention to pay cash dividends on its common stock, the dividend yield is zero.

Income Taxes

The Company recognizes interest and penalties related to income tax matters as a component of income tax expense.

Cash and Cash Equivalents

Marketable Securities

Accounts Receivable and Allowance for Credit Losses

Concentrations of Risk

Derivative Instruments

Derivative instruments are classified in the consolidated statements of cash flows as cash from operating activities, which reflect the classification of the underlying hedged transactions.

The Company does not use derivative financial instruments for trading or speculative purposes.

Deferred Contract Acquisition Costs

Property and Equipment, net


			Estimated Useful Life
Computers			3 years
Capitalized internal-use software			3 years
Office equipment, furniture and fixtures			5 years
Motor vehicles			5 years
Leasehold improvements			Lesser of lease term or 5 years

Capitalized Internal-Use Software

Long-Lived Assets (Including Goodwill)

Deferred Revenue

Net Loss per Share Attributable to Common Stockholders

Defined Benefit Plan

Since the plan is unfunded, no annual contributions are required to be made as per applicable regulations. Disclosures required under ASC 715—Compensation—Retirement Benefits, have been omitted because the Company has deemed them immaterial to its consolidated financial statements. The benefit plans had a plan benefit obligation of $11.9 million and $9.6 million as of December 31, 2023 and 2022, respectively. The long-term portion for the amount of $10.5 million and $8.6 million is included in other liabilities in the consolidated balance sheets as of December 31, 2023 and 2022, respectively. The current portion for the amount of $1.4 million and $1.0 million is included in accrued expenses in the consolidated balance sheets as of December 31, 2023 and 2022, respectively.

Leases

For short-term leases, the Company records rent expense in its consolidated statements of operations on a straight-line basis over the lease term and records variable lease payments as incurred.

Recent Accounting Pronouncements

Accounting Standards Not Yet Adopted

Leases - Narrative (Details) - USD ($) $ in Millions	12 Months Ended
Leases - Narrative (Details) - USD ($) $ in Millions	Dec. 31, 2021	Dec. 31, 2023
Lessee, Lease, Description [Line Items]
Operating lease, option to extend, term		6 years
Rent expense	$ 9.7
Minimum
Lessee, Lease, Description [Line Items]
Operating lease, term		1 year
Maximum
Lessee, Lease, Description [Line Items]
Operating lease, term		9 years

Net Loss Per Share (Tables)

12 Months Ended

Dec. 31, 2023

Earnings Per Share [Abstract]

Schedule of Earnings Per Share, Basic and Diluted

The following table sets forth the computation of basic and diluted net loss per share attributable to common stockholders (in thousands, except per share data):


	Year Ended December 31,
	2023		2022		2021
Numerator:
Net loss	$	(137,436)	$	(232,132)	$	(191,995)
Accretion of redeemable convertible preferred stock	—		—		(2,646,662)
Net loss attributable to Class A and Class B common stockholders - basic and diluted	$	(137,436)	$	(232,132)	$	(2,838,657)

Denominator:
Weighted-average shares used in computing net loss per share attributable to Class A and Class B common stockholders - basic and diluted	293,087		284,587		130,652
Net loss per share attributable to Class A and Class B common stockholders - basic and diluted	$	(0.47)	$	(0.82)	$	(21.73)

Schedule of Potential Common Equivalents Excluded from Computation of Diluted Net Loss per Share


	Year Ended December 31,
	2023	2022	2021

RSUs and PRSUs	26,755	32,253	47,830
Stock options	2,395	2,758	1,348
ESPP	109	124	160
Total	29,259	35,135	49,338

Stockholders' Equity and Stock Based Compensation - Shares of Common Stock Reserved for Future Issuance (Details) - shares	Dec. 31, 2023	Aug. 31, 2022
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Total shares of common stock reserved for issuance (in shares)	111,679,000
2021 Equity Incentive Plan:
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Total shares of common stock reserved for issuance (in shares)	65,635,000
2022 Inducement Plan:
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Total shares of common stock reserved for issuance (in shares)	6,377,000	10,000,000
Stock Options, Restricted Stock Units And Performance Restricted Stock Units \| 2011 Stock Plan:
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Total shares of common stock reserved for issuance (in shares)	12,866,000
Stock Options And Restricted Stock Units \| 2021 Equity Incentive Plan:
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Total shares of common stock reserved for issuance (in shares)	12,939,000
Stock Options And Restricted Stock Units \| 2022 Inducement Plan:
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Total shares of common stock reserved for issuance (in shares)	3,345,000
ESPP
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Total shares of common stock reserved for issuance (in shares)	10,517,000

- Definition

Line items represent financial concepts included in a table. These concepts are used to disclose reportable information associated with domain members defined in one or many axes to the table.

+ References

+ Details

Income Taxes

12 Months Ended

Dec. 31, 2023

Income Tax Disclosure [Abstract]

Income Taxes

11. Income Taxes

The Company’s net loss before provision for income taxes for the years ended December 31, 2023, 2022, and 2021 was as follows (in thousands):


	Year Ended December 31,
	2023		2022		2021
Domestic	$	(165,144)	$	(252,261)	$	(211,844)
Foreign	41,375		31,471		30,365
Total	$	(123,769)	$	(220,790)	$	(181,479)

The components of the provision for income taxes for the years ended December 31, 2023, 2022, and 2021 were as follows (in thousands):


	Year Ended December 31,
	2023		2022		2021
Current:
Domestic	$	2,810	$	2,137	$	2,876
Foreign	12,179		11,610		9,547
Deferred:
Domestic	—		—		—
Foreign	(1,322)		(2,405)		(1,907)
Total provision for income taxes	$	13,667	$	11,342	$	10,516

The following is a reconciliation of the federal statutory income tax rate to the Company’s effective tax rate for the years ended December 31, 2023, 2022, and 2021:


	Year Ended December 31,
	2023		2022		2021
Federal income tax	21.0	%	21.0	%	21.0	%

Stock-based compensation	(16.9)		(1.6)		2.1
Change in valuation allowance	(6.4)		(22.4)		(25.4)
Earnings from foreign subsidiaries	(1.8)		(1.2)		(0.5)
U.S. taxes on foreign operations	(4.8)		—		—
Other items	(2.1)		(0.9)		(3.0)
Total provision for income taxes	(11.0)	%	(5.1)	%	(5.8)	%

The components of the Company’s net deferred tax assets as of December 31, 2023 and 2022, were as follows (in thousands):


	December 31,
	2023		2022
Deferred tax assets:
Net operating loss carryforwards	$	81,373	$	100,090
Foreign tax credit carryforwards	5,999		4,955
Capitalized R&E under IRC 174	65,478		36,970
Stock-based compensation	3,672		4,337
Accruals and Reserves	8,948		9,032
Depreciation and amortization	3,328		1,449
Allowance for uncollectible accounts	1,003		212
Operating lease liability	6,877		19,207
Total deferred tax assets	176,678		176,252
Less: valuation allowance	(154,788)		(146,134)
Deferred tax assets, net of valuation allowance	21,890		30,118
Deferred tax liabilities:
Commissions	(5,926)		(6,146)
Operating lease right-of-use assets	(5,951)		(15,283)
Net deferred tax assets	$	10,013	$	8,689

The Company regularly reviews its deferred tax assets for recoverability based on historical taxable income, projected future taxable income, the expected timing of the reversals of existing taxable temporary differences and tax planning strategies. The Company’s judgment regarding future profitability may change due to many factors, including future market conditions and the ability to successfully execute the business plans and/or tax planning strategies. Should there be a change in the ability to recover deferred tax assets, the Company’s income tax provision would increase or decrease in the period in which the assessment is changed. The Company’s valuation allowance increased by $8.7 million and $56.2 million during the years ended December 31, 2023 and 2022, respectively.

The Tax Cuts and Jobs Act of 2017 (TCJA) made a significant change to Internal Revenue Code Section 174, which went into effect for taxable years beginning after December 31, 2021. The change requires Companies to capitalize specific research and experimental (“R&E”) expenditures and amortize over five years for U.S. incurred R&E or fifteen years for foreign incurred R&E beginning on January 1, 2022. This mandatory capitalization requirement does not have a material impact on the 2023 cash tax liabilities due to sufficient tax attributes.

The Company has not provided U.S. income taxes and foreign withholding taxes on undistributed earnings of foreign subsidiaries because the Company intends to permanently reinvest such earnings outside the United States.

Net Operating Loss and Credit Carryforwards

As of December 31, 2023, the Company has U.S. federal net operating loss ("NOL") carryforwards of approximately $341.8 million. If not utilized, the federal NOL carryforwards will begin to expire in 2034. For the federal NOL carryforwards arising in tax years beginning after December 31, 2017, which represents the majority of the Company's federal NOL carryforwards, the Tax Act limits the Company's ability to utilize carryforwards to 80% of taxable income; however, these NOLs may be carried forward indefinitely. As of December 31, 2023, the NOL carryforwards for all the states in the United States is $147.2 million. If not utilized, the state NOL carryforwards will begin to expire in 2024.

As of December 31, 2023, the Company also has federal tax credits carryforwards of $6.0 million. If not utilized, the credits will begin to expire in 2027.

Utilization of the NOL carryforwards may be subject to a substantial annual limitation due to the ownership change provisions of IRC Section 382 and similar state provisions. The annual limitation may result in the expiration of NOL carryforwards before utilization. The Company continually monitors the impact to net operating losses of any ownership changes.

Unrecognized Tax Benefits

The Company has adopted authoritative guidance which prescribes a recognition threshold and measurement attribute for the financial statement recognition and measurement of uncertain tax positions taken or expected to be taken in the Company’s income tax return, and also provides guidance on derecognition, classification, interest and penalties, accounting in interim periods, disclosure, and transition.

The Company recognizes financial statement benefit of a tax position only after determining that the relevant tax authority would more-likely-than-not sustain the position following an audit. For tax positions meeting the more-likely-than-not threshold, the amount recognized in the consolidated financial statements is the largest benefit that has no likelihood of being realized upon ultimate settlement with the relevant tax authority. As of December 31, 2023 and 2022, the Company had gross unrecognized tax benefits of $5.6 million and $3.6 million, respectively, all of which would affect the effective tax rate, if recognized, after consideration of valuation allowance.

The following table presents a reconciliation of the beginning and ending amount of the unrecognized tax benefits (in thousands):


	Year Ended December 31,
	2023		2022
Unrecognized gross tax benefits at the beginning of the period	$	3,647	$	2,227
Increases related to prior year tax positions	—		—
Decreases related to prior year tax positions	(22)		(6)

Increases in current year unrecognized benefits	2,009		1,426
Unrecognized gross tax benefits at the end of the period	$	5,634	$	3,647

The Company recognizes interest and penalties related to income tax matters as a component of income tax expense. Accrued interest of $1.4 million and $0.8 million has been recorded as of December 31, 2023 and 2022, respectively.

The Company's major tax jurisdictions are India and the United States and also files income tax returns in various U.S. states and foreign jurisdictions. Carryover attributes beginning December 31, 2008, remain open to adjustment by the U.S. federal and state authorities. The U.S. federal, state, and foreign jurisdictions have statutes of limitations that generally range from three to five years. Due to the Company’s net losses, substantially all of its federal and state income tax returns are subject to examination since inception. As of December 31, 2023, the Company is currently under examination in India. The Company believes that it has provided adequate reserves for its income tax uncertainties in all open tax years. As the outcome of the Company's tax audits are resolved in a manner inconsistent with management's expectations, the Company could adjust its provision for income taxes in the future.

- Definition

The entire disclosure for income taxes. Disclosures may include net deferred tax liability or asset recognized in an enterprise's statement of financial position, net change during the year in the total valuation allowance, approximate tax effect of each type of temporary difference and carryforward that gives rise to a significant portion of deferred tax liabilities and deferred tax assets, utilization of a tax carryback, and tax uncertainties information.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Topic 946
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-Name Accounting Standards Codification
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-Paragraph 13
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Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Topic 235
-SubTopic 10
-Name Accounting Standards Codification
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-Paragraph 1
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Reference 3: http://www.xbrl.org/2003/role/disclosureRef
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Reference 4: http://www.xbrl.org/2003/role/disclosureRef
-Topic 740
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-Paragraph 14
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Reference 5: http://www.xbrl.org/2003/role/disclosureRef
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Reference 6: http://www.xbrl.org/2003/role/disclosureRef
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Reference 7: http://www.xbrl.org/2003/role/disclosureRef
-Topic 740
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Reference 8: http://www.xbrl.org/2003/role/disclosureRef
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-Subparagraph (SAB TOPIC 6.I.5.Q1)
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-URI https://asc.fasb.org//1943274/2147479360/740-10-S99-1

Reference 9: http://www.xbrl.org/2003/role/disclosureRef
-Topic 740
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-Name Accounting Standards Codification
-Section S99
-Paragraph 2
-Subparagraph (SAB Topic 11.C)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147479360/740-10-S99-2

Reference 10: http://www.xbrl.org/2003/role/disclosureRef
-Topic 740
-SubTopic 30
-Name Accounting Standards Codification
-Section 50
-Paragraph 2
-Subparagraph (a)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482603/740-30-50-2

+ Details

Stockholders' Equity and Stock Based Compensation (Tables)

12 Months Ended

Dec. 31, 2023

Equity [Abstract]

Schedule of Accumulated Other Comprehensive Income (Loss)

The following tables shows the changes in the components of accumulated other comprehensive (loss) income:


	Year Ended December 31,
	2023		2022		2021
Beginning balance	$	(7,431)	$	(747)	$	411
Unrealized (losses) gains on available-for-sale debt securities	7,105		(6,684)		(1,152)

Reclassification of unrealized gains to interest and other income, net, in the consolidated statements of operations	—		—		(6)
Net change on cash flow hedging	(428)		—		—
Net impact to other comprehensive (loss) income in current period	6,677		(6,684)		(1,158)
Ending balance	$	(754)	$	(7,431)	$	(747)

Summary of Common Shares Reserved for Future Issuance

Shares of common stock reserved for future issuance were as follows (in thousands):


			December 31,
			2023
2011 Stock Plan:
Options, RSUs and PRSUs outstanding			12,866

2021 Equity Incentive Plan:
Options and RSUs outstanding			12,939
Shares reserved for future award issuances			65,635
2022 Inducement Plan:
Options and RSUs outstanding			3,345
Shares reserved for future award issuances			6,377
2021 Employee Stock Purchase Plan
Shares reserved for future award issuances			10,517
Total shares of common stock reserved for issuance			111,679

Summary of Employee Stock Purchase Plan

The following table summarizes the information on shares purchased under the ESPP for the years ended December 31, 2023 and 2022:


	Year Ended December 31,
	2023		2022
Net shares issued under ESPP(1)	627,371		822,423
Weighted average purchase price	$	11.88	$	13.33
Aggregate net proceeds (in thousands)	$	7,271	$	10,870

(1) Net of shares withheld and retired to satisfy withholding tax requirements for certain employees in jurisdictions outside the United States

Summary of Valuation Assumptions of Employee Stock Purchase Plan

The following table summarizes the range of valuation assumptions used in estimating the fair value of the ESPP during the period:


	Year Ended December 31,
Valuation Assumption Inputs	2023	2022	2021
Expected term (in years)	0.5 - 1.5	0.5 - 2.0	0.6 - 2.1
Stock price volatility	47.4% - 77.3%	55.8% - 84.5%	47.7% - 58.5%
Risk-free interest rate	4.47% - 5.38%	1.54% - 4.62%	0.06% - 0.29%
Dividend yield	0.00%	0.00%	0.00%

Schedule of Stock Option Activity

Stock option activity during the year ended December 31, 2023 is as follows (in thousands, except per share data):


Share Information:	Number of Shares	Weighted-Average Exercise Price		Weighted-Average Remaining Contractual Term (in years)	Aggregate Intrinsic Value (1)
Balance as of December 31, 2022	2,758	$	9.06	7.3	$	15,595
Stock options granted	—	$	—
Stock options exercised	(360)	$	0.25
Stock options cancelled / forfeited / expired	(3)	$	0.16
Balance as of December 31, 2023	2,395	$	10.39	7.0	$	31,368
Options vested and expected to vest as of December 31, 2023	2,395	$	10.39	7.0	$	31,368
Options exercisable as of December 31, 2023	1,146	$	6.89	5.2	$	19,033

Schedule of Share-based Payment Award, Stock Options, Valuation Assumptions

The following table summarizes the valuation assumptions used in estimating the fair value of stock options granted during the year:


						Year Ended December 31,
Valuation Assumption Inputs						2022
Expected term (in years)						6.1
Stock price volatility						65.0%
Risk-free interest rate						3.37%
Dividend yield						—%

Schedule of Restricted Stock Unit Activity

RSU activity, which includes PRSUs, during the year ended December 31, 2023 is as follows (in thousands, except per share data):


Share Information:	Number of Shares	Weighted-Average Grant Date Fair Value
Unvested, as of December 31, 2022	32,253	$	18.86
Granted	9,583	$	14.34
Vested (1)	(10,629)	$	16.49
Forfeited	(4,452)	$	17.32
Unvested, as of December 31, 2023	26,755	$	18.44

(1) During the year ended December 31, 2023 total shares that vested were 10.6 million, of which 4.0 million shares were withheld for tax purposes.

Summary of Valuation Assumptions, CEO Performance Award

The valuation assumptions using the Monte Carlo simulation model at the date of grant were:



Valuation Assumption Inputs
Measurement period (in years)						7.0
Stock price volatility						60.0%
Risk-free interest rate						1.12%
Dividend yield						—%

Stock-based Compensation Expense

Total stock-based compensation expense recorded for the years ended December 31, 2023, 2022, and 2021 was as follows (in thousands):


	Year Ended December 31,
	2023		2022		2021
Equity awards:
Cost of revenue	$	6,774	$	7,039	$	5,604
Research and development (1)	37,524		36,413		45,162
Sales and marketing (2)	66,755		64,328		53,169
General and administrative (3)	99,654		99,916		69,508


Stock-based compensation, net of amounts capitalized	210,707		207,696		173,443
Capitalized stock-based compensation	1,758		1,665		585
Total stock-based compensation expense	$	212,465	$	209,361	$	174,028

(1) Stock-based compensation expense recorded to research and development in the consolidated statements of operations excludes amounts that were capitalized for internal-use software.

Share-Based Payment Arrangement, Nonvested Award, Cost

As of December 31, 2023, unrecognized stock-based compensation expense related to unvested stock-based awards was as follows (in thousands, except for period data):


	December 31, 2023
	Unrecognized Stock-Based Compensation		Weighted-Average Period to Recognize Expense (in years)
RSUs and PSUs	$	390,716	2.6
Stock options	10,010		2.7
ESPP	4,288		0.6
Total unrecognized stock-based compensation expense	$	405,014