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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-Q
(Mark One)
 
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended June 30, 2023
OR
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the transition period from ________ to ________
Commission file number 001-40806
Freshworks Inc.
(Exact name of registrant as specified in its charter)
Delaware
2950 S Delaware Street, Suite 201
33-1218825
(State or other jurisdiction of incorporation or organization)
San Mateo, CA 94403
(I.R.S. Employer Identification No.)
(Address of Principal executive offices)
(650) 513-0514
Registrant's telephone number, including area code
Not Applicable
(Former name, former address and former fiscal year, if changed since last report)
Securities registered pursuant to Section 12(b) of the Act:
Title of each classTrading Symbol(s)Name of each exchange on which registered
Class A common stock, par value $0.00001 per share
FRSHThe Nasdaq Stock Market LLC
Indicate by check mark whether the registrant: (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports); and (2) has been subject to such filing requirements for the past 90 days.    Yes  ☒    No  ☐ 
Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files).     Yes  ☒   No  ☐ 
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or a smaller reporting company. See the definitions of “large accelerated filer,” “accelerated filer” and “smaller reporting company” in Rule 12b-2 of the Exchange Act. (Check one):




Large accelerated filer
Accelerated filer
Non-accelerated filer  
Smaller reporting company
Emerging growth company
        
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐ 
Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Act). Yes   ☐      No  
As of July 28, 2023, the number of shares of registrant’s Class A common stock outstanding was 191,632,988 and the number of shares of the registrant’s Class B common stock outstanding was 101,933,825.




FRESHWORKS INC.
TABLE OF CONTENTS
Page
ITEM 1.
ITEM 2.
ITEM 3.
ITEM 4.
ITEM 1.
ITEM 1A.
ITEM 2.
ITEM 3.
ITEM 4.
ITEM 5.
ITEM 6.
1


SPECIAL NOTE ABOUT FORWARD-LOOKING STATEMENTS
This Quarterly Report on Form 10-Q contains forward-looking statements within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended (Exchange Act), about us and our industry that involve substantial risks and uncertainties. All statements other than statements of historical facts contained in this Quarterly Report on Form 10-Q, including statements regarding our future results of operations and financial condition, business strategy, and plans and objectives of management for future operations are forward-looking statements. In some cases, forward-looking statements may be identified by words such as “anticipate,” “believe,” “contemplate,” “continue,” “could,” “estimate,” “expect,” “intend,” “may,” “plan,” “potential,” “predict,” “project,” “should,” “target,” “will” or “would,” or the negative of these words or other similar terms or expressions. These forward-looking statements include, but are not limited to, statements concerning the following:
our expectations regarding our annual recurring revenue (ARR), revenue, expenses, and other operating results;
our ability to acquire new customers and successfully retain existing customers;
our ability to increase the number of users who access our platform;
our ability to increase usage of existing products;
our ability to achieve or sustain profitability;
future investments in our business, our anticipated capital expenditures, and our estimates regarding our capital requirements;
the costs and success of our sales and marketing efforts, and our ability to maintain and enhance our brand;
the estimated addressable market opportunity for existing products and new products;
our reliance on key personnel and our ability to identify, recruit, and retain skilled personnel;
our ability to effectively manage our growth, including any international expansion;
the effects of macroeconomic uncertainties, including rising interest rates, foreign exchange rate volatility, global geopolitical uncertainties, inflationary pressures, the ongoing impacts of the COVID-19 pandemic and other macroeconomic factors beyond our control;
our ability to protect our intellectual property rights and any costs associated therewith;
our ability to compete effectively with existing competitors and new market entrants; and
the size and growth rates of the markets in which we compete.
You should not rely on forward-looking statements as predictions of future events. We have based the forward-looking statements contained in this Quarterly Report on Form 10-Q on our current expectations and projections about future events and trends that we believe may affect our business, financial condition and operating results. The outcome of the events described in these forward-looking statements is subject to risks, uncertainties and other factors described in the section titled “Risk Factors” and elsewhere in this Quarterly Report on Form 10-Q and our Quarterly Report on Form 10-Q for the quarterly period ended March 31, 2023. Moreover, we operate in a very competitive and rapidly changing environment. New risks and uncertainties emerge from time to time, and it is not possible for us to predict all risks and uncertainties that could have an impact on the forward-looking statements contained in this Quarterly Report on Form 10-Q. The results, events, and circumstances reflected in the forward-looking statements may not be achieved or occur, and actual results, events, or circumstances could differ materially from those described in the forward-looking statements.
In addition, statements that “we believe” and similar statements reflect our beliefs and opinions on the relevant subject. These statements are based on information available to us as of the date of this Quarterly Report on Form
2


10-Q. While we believe that such information provides a reasonable basis for these statements, that information may be limited or incomplete. Our statements should not be read to indicate that we have conducted an exhaustive inquiry into, or review of, all relevant information. These statements are inherently uncertain, and investors are cautioned not to unduly rely on these statements.
The forward-looking statements made in this Quarterly Report on Form 10-Q relate only to events as of the date on which the statements are made. We undertake no obligation to update any forward-looking statements made in this Quarterly Report on Form 10-Q to reflect events or circumstances after the date of this Quarterly Report on Form 10-Q or to reflect new information or the occurrence of unanticipated events, except as required by law. We may not actually achieve the plans, intentions or expectations disclosed in our forward-looking statements, and you should not place undue reliance on our forward-looking statements. Our forward-looking statements do not reflect the potential impact of any future acquisitions, mergers, dispositions, joint ventures or investments.
Where You Can Find More Information
We announce material information to the public through a variety of means, including filings with the U.S. Securities and Exchange Commission, press releases, public conference calls, our website (freshworks.com), the investor relations section of our website (ir.freshworks.com), our LinkedIn account (linkedin.com/company/freshworks-inc/), and our Twitter account (@FreshworksInc). We use these channels to communicate with investors and the public about our company, our products and services and other matters. Therefore, we encourage investors, the media and others interested in our company to review the information we make public in these locations, as such information could be deemed to be material information.
3


PART I. FINANCIAL INFORMATION
ITEM 1. FINANCIAL STATEMENTS (UNAUDITED)
FRESHWORKS INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(in thousands, except share and per share amounts)
(unaudited)
June 30, 2023December 31, 2022
Assets
Current assets:
Cash and cash equivalents$356,220 $304,083 
Marketable securities804,646 843,405 
Accounts receivable, net of allowance of $6,955 and $6,628
73,909 70,470 
Deferred contract acquisition costs21,694 20,139 
Prepaid expenses and other current assets46,827 38,913 
Total current assets1,303,296 1,277,010 
Property and equipment, net23,471 24,139 
Operating lease right-of-use assets29,297 33,024 
Deferred contract acquisition costs, noncurrent19,268 19,536 
Goodwill6,181 6,181 
Deferred tax assets8,671 8,689 
Other assets10,123 11,637 
Total assets$1,400,307 $1,380,216 
Liabilities and Stockholders' Equity
Current liabilities:
Accounts payable$1,686 $5,908 
Accrued liabilities53,761 59,008 
Deferred revenue234,358 205,626 
Income tax payable1,751 1,150 
Total current liabilities291,556 271,692 
Operating lease liabilities, non-current24,251 28,174 
Other liabilities26,847 28,532 
Total liabilities342,654 328,398 
Commitments and contingencies (Note 7)
Stockholders' equity:
Preferred stock, $0.00001 par value per share; 10,000,000 shares authorized; zero shares issued and outstanding
  
Class A common stock, $0.00001 par value per share; 1,000,000,000 shares authorized; 179,048,021 and 162,825,075 shares issued and outstanding
2 2 
Class B common stock, $0.00001 par value per share; 350,000,000 shares authorized; 113,790,879 and 126,268,150 shares issued and outstanding
1 1 
Additional paid-in capital4,644,686 4,562,319 
Accumulated other comprehensive loss (5,641)(7,431)
Accumulated deficit(3,581,395)(3,503,073)
Total stockholders' equity1,057,653 1,051,818 
Total liabilities and stockholders' equity$1,400,307 $1,380,216 
The accompanying notes are an integral part of these condensed consolidated financial statements.
4

FRESHWORKS INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands, except per share amounts)
(unaudited)




Three Months Ended June 30,Six Months Ended June 30,
2023202220232022
Revenue$145,079 $121,432 $282,771 $236,069 
Cost of revenue24,861 24,042 50,097 46,437 
Gross profit120,218 97,390 232,674 189,632 
Operating expense:
Research and development34,180 34,297 67,037 65,014 
Sales and marketing87,975 90,038 174,785 161,504 
General and administrative41,352 40,407 82,248 77,590 
Total operating expenses163,507 164,742 324,070 304,108 
Loss from operations(43,289)(67,352)(91,396)(114,476)
Interest and other income (expense), net11,216 (242)20,695 360 
Loss before income taxes(32,073)(67,594)(70,701)(114,116)
Provision for income taxes3,585 2,159 7,621 4,696 
Net loss$(35,658)$(69,753)$(78,322)$(118,812)
Net loss per share - basic and diluted$(0.12)$(0.24)$(0.27)$(0.42)
Weighted average shares used in computing net loss per share - basic and diluted291,995 284,761 291,068 281,492 
The accompanying notes are an integral part of these condensed consolidated financial statements.
5

FRESHWORKS INC.
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS
(in thousands)
(unaudited)

Three Months Ended June 30,Six Months Ended June 30,
2023202220232022
Net loss$(35,658)$(69,753)$(78,322)$(118,812)
Other comprehensive loss:
Change in unrealized loss on marketable securities(1,236)(1,956)1,686 (5,562)
Net change on cash flow hedges107  104  
Total other comprehensive income (loss)(1,129)(1,956)$1,790 $(5,562)
Comprehensive loss$(36,787)$(71,709)$(76,532)$(124,374)
The accompanying notes are an integral part of these condensed consolidated financial statements.
6

FRESHWORKS INC.
CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY
(in thousands)
(unaudited)
Three Months Ended June 30, 2023
Common StockAdditional
Paid-in
Capital
Accumulated Other Comprehensive LossAccumulated DeficitTotal Stockholders'
Equity
SharesAmount
Balances as of March 31, 2023290,535 $3 $4,600,688 $(4,512)$(3,545,737)$1,050,442 
Issuance of common stock upon exercise of stock options126 — 39 — — 39 
Issuance of common stock upon vesting and settlement of restricted stock units, net of shares withheld for taxes1,811 — (15,025)— — (15,025)
Issuance of common stock under employee stock purchase plan, net of shares withheld and retired for taxes367 — 4,312 — — 4,312 
Stock-based compensation— — 54,672 — — 54,672 
Other comprehensive loss— — — (1,129)— (1,129)
Net loss— — — — (35,658)(35,658)
Balances as of June 30, 2023292,839 $3 $4,644,686 $(5,641)$(3,581,395)$1,057,653 
Three Months Ended June 30, 2022
Common StockAdditional
Paid-in
Capital
Accumulated Other Comprehensive LossAccumulated DeficitTotal Stockholders' Equity
SharesAmount
Balances as of March 31, 2022283,070 $3 $4,435,568 $(4,353)$(3,320,000)$1,111,218 
Issuance of common stock upon exercise of stock options242 — 74 — — 74 
Issuance of common stock upon vesting and settlement of restricted stock units, net of shares withheld for taxes1,736 — (18,290)— — (18,290)
Issuance of common stock under employee stock purchase plan, net of shares withheld and retired for taxes510 — 6,959 — — 6,959 
Stock-based compensation— — 51,358 — — 51,358 
Unrealized loss on marketable securities— — — (1,956)— (1,956)
Net loss— — — — (69,753)(69,753)
Balances as of June 30, 2022285,558 $3 $4,475,669 $(6,309)$(3,389,753)$1,079,610 

7

FRESHWORKS INC.
CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY
(in thousands)
(unaudited)
Six Months Ended June 30, 2023
Common StockAdditional
Paid-in
Capital
Accumulated Other Comprehensive LossAccumulated DeficitTotal Stockholders' Equity
SharesAmount
Balances as of December 31, 2022289,093 $3 $4,562,319 $(7,431)$(3,503,073)$1,051,818 
Issuance of common stock upon exercise of stock options144 — 45 — — 45 
Issuance of common stock upon vesting and settlement of restricted stock units, net of shares withheld for taxes3,235 — (27,870)— — (27,870)
Issuance of common stock under employee stock purchase plan, net of shares withheld and retired for taxes367 — 4,312 — — 4,312 
Stock-based compensation— — 105,880 — — 105,880 
Other comprehensive income— — — 1,790 — 1,790 
Net loss— — — — (78,322)(78,322)
Balances as of June 30, 2023292,839 $3 $4,644,686 $(5,641)$(3,581,395)$1,057,653 

Six Months Ended June 30, 2022
Common StockAdditional
Paid-in
Capital
Accumulated Other Comprehensive IncomeAccumulated DeficitTotal Stockholders' Equity
SharesAmount
Balances as of December 31, 2021273,294 $3 $4,509,724 $(747)$(3,270,941)$1,238,039 
Issuance of common stock upon exercise of stock options355 — 103 — — 103 
Issuance of common stock upon vesting and settlement of restricted stock units, net of shares withheld for taxes11,399 — (139,100)— — (139,100)
Issuance of common stock under employee stock purchase plan, net of shares withheld and retired for taxes510 — 6,959 — — 6,959 
Stock-based compensation— — 97,983 — — 97,983 
Unrealized loss on marketable securities— — — (5,562)— (5,562)
Net loss— — — — (118,812)(118,812)
Balances as of June 30, 2022285,558 $3 $4,475,669 $(6,309)$(3,389,753)$1,079,610 
The accompanying notes are an integral part of these condensed consolidated financial statements.
8

FRESHWORKS INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(in thousands)
(unaudited)
Six Months Ended
June 30,
20232022
Cash Flows from Operating Activities:
Net loss$(78,322)$(118,812)
Adjustments to reconcile net loss to net cash provided by (used in) operating activities:
Depreciation and amortization6,114 5,779 
Amortization of deferred contract acquisition costs11,469 8,696 
Non-cash lease expense3,727 2,896 
Stock-based compensation104,942 96,760 
Premium (discount) amortization on marketable securities(7,822)1,097 
Change in fair value of equity securities(61)(85)
Deferred income taxes113 309 
Other52 1,195 
Changes in operating assets and liabilities:
Accounts receivable(3,599)(3,824)
Deferred contract acquisition costs(12,756)(12,641)
Prepaid expenses and other assets(6,571)(8,445)
Accounts payable(4,221)454 
Accrued and other liabilities(5,481)3,206 
Deferred revenue28,732 22,623 
Operating lease liabilities(4,917)(4,677)
Net cash provided by (used in) operating activities31,399 (5,469)
Cash Flows from Investing Activities:
Purchases of property and equipment(712)(3,381)
Proceeds from sale of property and equipment58 83 
Capitalized internal-use software(3,511)(2,722)
Purchases of marketable securities(492,418)(288,200)
Sales of marketable securities 92,786 
Maturities and redemptions of marketable securities540,719 180,570 
Net cash provided by (used in) investing activities44,136 (20,864)
Cash Flows from Financing Activities:
Proceeds from issuance of common stock under employee stock purchase plan, net4,312 7,011 
Proceeds from exercise of stock options45 96 
Payment of withholding taxes on net share settlement of equity awards(27,737)(138,349)
Payment of deferred offering costs (109)
Net cash used in financing activities(23,380)(131,351)
Net increase (decrease) in cash, cash equivalents and restricted cash52,155 (157,684)
Cash, cash equivalents and restricted cash, beginning of period304,158 747,864 
Cash, cash equivalents and restricted cash, end of period$356,313 $590,180 
Reconciliation of cash, cash equivalents and restricted cash to consolidated balance sheets:
Cash and cash equivalents$356,220 $590,107 
Restricted cash included in prepaid expenses and other current assets 46 
Restricted cash included in other assets93 27 
Total cash, cash equivalents and restricted cash$356,313 $590,180 
Supplemental cash flow information:
Cash paid for taxes$6,549 $5,318 
Non-cash investing and financing activities:
Operating lease right-of-use assets obtained in exchange for operating lease obligations$ $7,219 
Stock-based compensation capitalized as internal-use software$938 $1,223 
The accompanying notes are an integral part of these condensed consolidated financial statements.
9


FRESHWORKS INC.
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(UNAUDITED)
1. Business, Basis of Presentation and Summary of Significant Accounting Policies
Description of Business
Freshworks Inc. (Freshworks, or the Company) is a software development company that provides modern software-as-a-service (SaaS) products that are designed with the user in mind. The Company was incorporated in Delaware in 2010 and is headquartered in San Mateo, California.
Basis of Presentation and Principles of Consolidation
The accompanying condensed consolidated financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America (GAAP). The condensed 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.
Unaudited Interim Consolidated Financial Statements
The accompanying condensed consolidated balance sheet as of June 30, 2023, the condensed consolidated statements of operations, of comprehensive loss, of cash flows, and of stockholders’ equity for the three and six months ended June 30, 2023 and 2022, and the related notes to such condensed consolidated financial statements are unaudited. These unaudited condensed consolidated financial statements are presented in accordance with the rules and regulations of the U.S. Securities and Exchange Commission (SEC) and do not include all disclosures normally required in annual consolidated financial statements prepared in accordance with GAAP. In management’s opinion, the unaudited condensed consolidated financial statements have been prepared on a basis consistent with the annual consolidated financial statements and reflect all adjustments, which include only normal recurring adjustments, necessary for the fair statement of the Company’s financial position as of June 30, 2023 and its results of operations and cash flows for the three and six months ended June 30, 2023 and 2022. The results of operations for the three and six months ended June 30, 2023 are not necessarily indicative of the results to be expected for the full year or any other future interim or annual period.
The condensed consolidated financial statements should be read in conjunction with the audited consolidated financial statements and notes included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2022, which was filed with the SEC on February 23, 2023.
Use of Estimates
The preparation of the condensed 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;
10


useful lives of long-lived assets;
valuation of deferred tax assets;
valuation of employee defined benefit plan;
fair value of share-based awards, including performance-based awards; and
incremental borrowing rate used for operating leases.
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, 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 three and six months ended June 30, 2023 and 2022 or that represented 10% or more of the Company’s consolidated accounts receivable balance as of June 30, 2023.
The Company primarily relies upon its third-party cloud infrastructure partner, Amazon Web Services, 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.
Significant Accounting Policies
The Company's significant accounting policies are described in the Annual Report on Form 10-K for the year ended December 31, 2022. There have been no significant changes to these policies that have had a material impact on the condensed consolidated financial statements and the related notes for the three and six months ended June 30, 2023. However, starting in 2023, the Company entered into foreign exchange forward contracts to hedge a portion of its forecasted foreign currency expenses and while the impact of the Company's derivative instruments is not material to its condensed consolidated financial statements, the accounting policy on Derivative Instruments is discussed below.
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 condensed 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 condensed 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 June 30, 2023 is expected to be reclassified into earnings within 12 months.
11


Derivative instruments are classified in the condensed 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 June 30, 2023, the total notional amount of outstanding designated foreign currency forward contracts was $43.6 million. The fair value of derivative assets and liabilities as of June 30, 2023, and all related unrealized and realized gains and losses during the three and six months ended June 30, 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.
Recent Accounting Pronouncements
There have been no recently issued accounting pronouncements that are expected to have a material impact on the Company's condensed consolidated financial statements.

2. Revenue From Contracts with Customers
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.
Disaggregation of Revenue
The following table summarizes revenue by the Company’s service offerings (in thousands):
Three Months Ended June 30,Six Months Ended June 30,
2023202220232022
Subscription services$141,699 $118,393 $275,722 $229,790 
Professional services3,380 3,039 7,049 6,279 
Total revenue$145,079 $121,432 $282,771 $236,069 
See Note 11 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.
Revenue recognized during the three months ended June 30, 2023 and 2022 from amounts included in deferred revenue at the beginning of these periods was $103.5 million and $80.3 million, respectively. Revenue recognized during the six months ended June 30, 2023 and 2022 from amounts included in deferred revenue at the beginning of these periods was $155.1 million and $118.2 million, respectively.
The aggregate balance of remaining performance obligations as of June 30, 2023 was $350.8 million. The Company expects to recognize $267.8 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
12


periods. As of June 30, 2023, remaining performance obligations comprised $234.4 million of deferred revenue and $116.4 million of unbilled revenue.
Deferred Contract Acquisition Costs
The change in the balance of deferred contract acquisition costs during the periods presented is as follows (in thousands):
Three Months Ended June 30,Six Months Ended June 30,
2023202220232022
Balance at beginning of the period$39,626 $30,972 $39,675 $29,647 
Add: Contract costs capitalized during the period7,188 7,041 12,756 12,641 
Less: Amortization of contract costs during the period(5,852)(4,421)(11,469)(8,696)
Balance at end of the period$40,962 $33,592 $40,962 $33,592 

3. Cash Equivalents and Marketable Securities
Cash equivalents and available-for-sale debt securities consisted of the following as of June 30, 2023 and December 31, 2022 (in thousands):
June 30, 2023
Amortized CostUnrealized GainsUnrealized LossesFair Value
Cash equivalents:
Money market funds$73,084 $— $— $73,084 
U.S. treasury securities85,120 21  85,141 
U.S. government agency securities28,835 10  28,845 
Corporate debt securities40,915   40,915 
Total cash equivalents227,954 31  227,985 
Debt securities:
U.S. treasury securities333,352 28 (1,658)331,722 
U.S. government agency securities409,009 7 (3,662)405,354 
Corporate debt securities66,513  (491)66,022 
Total debt securities808,874 35 (5,811)803,098 
Total cash equivalents and debt securities$1,036,828 $66 $(5,811)$1,031,083 
13


December 31, 2022
Amortized CostUnrealized GainsUnrealized LossesFair Value
Cash equivalents:
Money market funds$219,512 $— $— $219,512 
U.S. treasury securities13,912 3  13,915 
U.S. government agency securities10,417 2  10,419 
Corporate debt securities1,995 1  1,996 
Total cash equivalents245,836 6  245,842 
Debt securities:
U.S. treasury securities441,909 36 (3,160)438,785 
U.S. government agency securities301,009 35 (3,531)297,513 
Corporate debt securities106,436  (817)105,619 
Total debt securities849,354 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 June 30, 2023 and December 31, 2022 (in thousands):
June 30, 2023
Less than 12 monthsGreater than 12 monthsTotal
Fair ValueUnrealized LossFair ValueUnrealized LossFair ValueUnrealized Loss
U.S. treasury securities$128,598 $(751)$57,819 $(907)$186,417 $(1,658)
U.S. government agency securities322,722 (2,511)63,844 (1,151)386,566 (3,662)
Corporate debt securities20,838 (255)15,774 (236)36,612 (491)
Total$472,158 $(3,517)$137,437 $(2,294)$609,595 $(5,811)
December 31, 2022
Less Than 12 Months12 Months or GreaterTotal
Fair ValueUnrealized LossFair ValueUnrealized LossFair ValueUnrealized Loss
U.S. treasury securities$190,820 $(1,794)$105,115 $(1,366)$295,935 $(3,160)
U.S. government agency securities220,766 (2,245)42,754 (1,286)263,520 (3,531)
Corporate debt securities30,485 (455)22,864 (362)53,349 (817)
Total$442,071 $(4,494)$170,733 $(3,014)$612,804 $(7,508)
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The amortized cost and fair value of the available-for-sale debt securities based on contractual maturities are as follows (in thousands):
June 30, 2023
Amortized CostFair Value
Due within one year$602,225 $598,506 
Due after one year but within five years206,649 204,592 
Total$808,874 $803,098 
Accrued interest receivable of $3.4 million and $2.8 million was classified in prepaid expenses and other current assets in the condensed consolidated balance sheet as of June 30, 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 June 30, 2023 and December 31, 2022, the fair value of the term bond mutual funds was $1.5 million in each period presented. The change in fair value of the term bond mutual funds is recorded in interest and other income, net in the condensed consolidated statements of operations. The realized and unrealized gains recognized in the condensed consolidated statements of operations for the term bond mutual funds were not material during the three and six months ended June 30, 2023 and 2022.
4. 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.
The Company did not have any assets or liabilities subject to fair value remeasurement on a nonrecurring basis as of June 30, 2023 and December 31, 2022.
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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 June 30, 2023 and December 31, 2022 (in thousands):
June 30, 2023
Fair Value Measured Using
Level 1Level 2Total
Financial assets:
Cash equivalents:
Money market funds$73,084 $ $73,084 
U.S. treasury securities85,141  85,141 
U.S. government agency securities 28,845 28,845 
Corporate debt securities 40,915 40,915 
Marketable securities:
U.S. treasury securities331,722  331,722 
U.S. government agency securities 405,354 405,354 
Corporate debt securities 66,022 66,022 
Term bond mutual funds 1,548 1,548 
Total financial assets$489,947 $542,684 $1,032,631 
December 31, 2022
Fair Value Measured Using
Level 1Level 2Total
Financial assets:
Cash equivalents:
Money market funds$219,512 $ $219,512 
U.S. treasury securities13,915  13,915 
U.S. government agency securities 10,419 10,419 
Corporate debt securities 1,996 1,996 
Marketable securities:
U.S. treasury securities438,785  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 

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5. Balance Sheet Components
Property and Equipment, net
The following table summarizes property and equipment, net as of June 30, 2023 and December 31, 2022 (in thousands):
June 30, 2023December 31, 2022
Computers$16,644 $16,552 
Capitalized internal-use software24,680 20,230 
Office equipment3,996 3,744 
Furniture and fixtures8,878 8,881 
Motor vehicles1,007 1,158 
Leasehold improvements5,654 5,654 
Construction in progress140 224 
Total property and equipment60,999 56,443 
Less: accumulated depreciation and amortization(37,528)(32,304)
Property and equipment, net$23,471 $24,139 
Capitalization of costs associated with internal-use software were $1.9 million and $2.6 million for the three months ended June 30, 2023 and 2022, respectively; and $4.4 million and $3.9 million for the six months ended June 30, 2023 and 2022, respectively. Amortization expense of capitalized internal-use software was $1.3 million and $0.8 million for the three months ended June 30, 2023 and 2022, respectively; and $2.4 million and $1.5 million for the six months ended June 30, 2023 and 2022, respectively. As of June 30, 2023 and December 31, 2022, the net carrying value of capitalized internal-use software was $13.3 million and $11.2 million, respectively.
Depreciation expense was $1.7 million and $1.6 million for the three months ended June 30, 2023 and 2022, respectively; and $3.4 million and $3.2 million for the six months ended June 30, 2023 and 2022, respectively.
Accrued Liabilities
The following table summarizes accrued liabilities as of June 30, 2023 and December 31, 2022 (in thousands):
June 30, 2023December 31, 2022
Accrued compensation$18,745 $20,192 
Accrued third-party cloud infrastructure expenses187 2,752 
Accrued reseller commissions7,974 7,731 
Accrued advertising and marketing expenses4,277 4,465 
Advanced payments from customers3,940 3,480 
Accrued taxes8,158 7,730 
Operating lease liabilities, current5,781 6,775 
Contributions withheld for employee stock purchase plan1,195 1,546 
Other accrued expenses3,504 4,337 
Total accrued liabilities$53,761 $59,008 
Noncurrent liabilities include $21.4 million and $23.3 million of long term accrued compensation as of June 30, 2023 and December 31, 2022, respectively.
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6. Leases
The Company has operating leases primarily for office space. The leases have remaining lease terms of one to eight years, some of which include options to extend the lease for up to an additional 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):
Operating LeasesThree Months Ended June 30,Six Months Ended June 30,
2023202220232022
Operating lease cost$2,498 $2,104 $4,992 $3,879 
Short-term lease cost72 342 246 657 
Variable lease cost786 769 1,571 1,438 
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:
Lease Term and Discount RateJune 30, 2023June 30, 2022
Weighted-average remaining lease term (in years)4.55.2
Weighted-average discount rate7.9 %7.5 %
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):
Three Months Ended June 30,Six Months Ended June 30,
Supplemental Cash Flow Information:2023202220232022
Cash payments included in the measurement of operating lease liabilities$4,081 $1,550 $6,407 $4,274 
Operating right-of-use ("ROU") assets obtained in exchange for lease obligations 1,895  7,219 
As of June 30, 2023, maturities of the operating lease liabilities are as follows (in thousands):
Operating Leases
Remainder of 2023$2,843 
20249,772 
20258,800 
20265,538 
20274,242 
Thereafter5,809 
Total lease payments37,004 
Less: imputed interest(6,972)
Present value of operating lease liabilities$30,032 
As of June 30, 2023, there were no future payments related to signed leases that have not yet commenced.
7. 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. As of June 30,
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2023, other contractual commitments totaling $82.5 million remain outstanding under these agreements through 2025.
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 June 14, 2023, defendants filed a motion to dismiss the complaint, which is pending. The Company and the other defendants intend to vigorously defend against the 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. 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 condensed 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 condensed consolidated financial statements.
8. Stockholders' Equity and Stock-Based Compensation
Equity Compensation Plans
In August 2021, the board of directors (the Board) adopted 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 shares of 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,
19


nonstatutory stock options, stock appreciation rights, restricted stock, RSUs, PRSUs and other awards may be granted as an inducement material to an eligible person's entering into employment with the Company.
Shares of common stock reserved for future issuance were as follows (in thousands):
June 30, 2023
2011 Stock Plan:
Options, RSUs and PRSUs outstanding16,804 
2021 Equity Incentive Plan:
Options and RSUs outstanding16,100 
Shares reserved for future award issuances61,854 
2022 Inducement Plan:
Options and RSUs outstanding3,509 
Shares reserved for future award issuances6,491 
2021 Employee Stock Purchase Plan
Shares reserved for future award issuances10,798 
Total shares of common stock reserved for issuance115,556 
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 Company issued 367,319 shares under the ESPP in both the three and six months ended June 30, 2023 and the Company issued 510,093 shares under the ESPP in both the three and six months ended June 30, 2022, in each case net of shares withheld and retired to satisfy withholding tax requirements for certain employees in jurisdictions outside the United States. The weighted average purchase price was $11.87 with net proceeds of $4.3 million in both the three and six months ended June 30, 2023, and the weighted average purchase price was $13.76 with net proceeds of $7.0 million in both the three and six months ended June 30, 2022.
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 three and six months ended June 30, 2023.
Stock-based compensation expense related to ESPP was $2.5 million and $4.0 million for the three months ended June 30, 2023 and 2022, respectively, and $4.5 million and $7.2 million for the six months ended June 30, 2023 and 2022, 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:
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Valuation Assumption InputsThree and Six Months Ended June 30, 2023Three and Six Months Ended June 30, 2022
Expected term (in years)
0.5 - 1.5
0.5 - 2.0
Stock price volatility
58.1% - 77.3%
55.8% - 84.5%
Risk-free interest rate
4.47% - 5.26%
1.54% - 2.58%
Dividend yield
%
%
Stock Options
Stock options are generally granted with an exercise price equal to the fair market value of a share of common stock on the date of grant, have a 10-year contractual term, and vest over a four-year period.
Share Information:Number of Shares (in thousands)Weighted-Average Exercise PriceWeighted-Average Remaining Contractual Term (in years)
Aggregate Intrinsic Value (in thousands) (1)
Balance as of December 31, 20222,758 $9.06 7.3$15,595 
Stock options exercised(144)$0.31 
Stock options cancelled / forfeited / expired(3)$0.16 
Balance as of June 30, 20232,611 $9.55 7.0$20,966 
Options vested and expected to vest as of June 30, 20232,611 $9.55 7.0$20,966 
Options exercisable as of June 30, 2023795 $0.27 2.1$13,757 
(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.


Restricted Stock Units
RSUs are granted at fair market value at the date of the grant and vest over a four-year period.
RSU activity, which includes PRSUs, during the six months ended June 30, 2023 is as follows:
Share Information:Number of SharesWeighted-Average Grant Date Fair Value Per Share
(in thousands, except per share data)
Unvested, as of December 31, 202232,253 $18.86 
Granted8,483 $13.51 
Vested (1)
(5,118)$16.89 
Forfeited(1,816)$17.92 
Unvested, as of June 30, 202333,802 $17.87 
(1) During the six months ended June 30, 2023, total shares that vested were 5.1 million, of which 1.9 million were withheld for tax purposes.

The total fair value of vested RSUs during the three months ended June 30, 2023 and 2022 was $47.5 million and $42.4 million, respectively. For the six months ended June 30, 2023 and 2022, the total fair value of vested RSUs was $86.4 million and $149.0 million, respectively.
Performance-Based Awards
In May 2019, the Board approved a grant of 166,390 shares of PRSUs to the Company’s Chief Executive Officer (CEO). The vesting of these PRSUs is contingent upon the satisfaction of certain milestones. The revenue-
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related milestone and the liquidity event condition were met prior to December 31, 2021. As of June 30, 2023, the time-based vesting was the only condition yet to be satisfied over the remaining requisite service period, and the number of shares to vest subject to this condition is insignificant.
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 Company recognized stock-based compensation expense associated with PRSUs granted to the CEO of $7.0 million for each of the three months ended June 30, 2023 and 2022; and $13.9 million each for the six months ended June 30, 2023 and 2022. These expenses were recorded in general and administrative expenses in the condensed consolidated statements of operations.
Stock-Based Compensation
Total stock-based compensation expense recorded for the three and six months ended June 30, 2023 and 2022 was as follows (in thousands):
Three Months Ended June 30,Six Months Ended June 30,
2023202220232022
Cost of revenue$1,731 $1,914 $3,427 $3,440 
Research and development10,060 7,819 19,039 16,128 
Sales and marketing (1)
17,273 15,033 33,029 27,569 
General and administrative (2)
25,184 25,369 49,447 49,623 
Stock-based compensation, net of amounts capitalized54,248 50,135 104,942 96,760 
Capitalized stock-based compensation424 1,223 938 1,223 
Total stock-based compensation expense$54,672 $51,358 $105,880 $97,983 
(1)     Sales and marketing expense includes $2.3 million and $4.7 million for the three and six months ended June 30, 2023, respectively, of stock-based compensation expense related to RSUs, options and ESPP purchase rights granted to the President of the Company primarily granted in September 2022.
(2)    General and administrative expense includes stock-based compensation expense associated with RSUs and PRSUs granted to our CEO primarily in September 2021 of $13.9 million for each of the three months ended June 30, 2023 and 2022, and $27.7 million for each of the six months ended June 30, 2023 and 2022.

As of June 30, 2023, unrecognized stock-based compensation expense related to unvested stock-based awards was as follows (in thousands, except for period data):
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June 30, 2023
Unrecognized Stock-Based CompensationWeighted-Average Period to Recognize Expense
(in years)
RSUs and PRSUs$514,142 2.9
Stock options11,899 3.2
ESPP7,778 0.9
Total unrecognized stock-based compensation expense$533,819 
9. Net Loss Per Share
Basic net loss per share attributable to common stockholders is computed by dividing the net loss by the number of weighted-average outstanding common shares. Diluted net loss per share attributable to common stockholders is determined by giving effect to all potential common equivalents during the reporting period, unless including them yields an antidilutive result. The Company considers its stock options and RSUs as potential common stock equivalents, but excluded them from the computation of diluted net loss per share attributable to common stockholders for the three and six months ended June 30, 2023 and 2022, as their effect was antidilutive.
The rights, including the liquidation and dividend rights, of the holders of Class A and Class B common stock are identical, except with respect to voting, conversion, and transfer rights. As the liquidation and dividend rights are identical, the undistributed earnings are allocated on a proportionate basis to each class of common stock and the resulting basic and diluted net loss per share attributable to common stockholders, are the same for both Class A and Class B common stock on both an individual and combined basis.
The following table sets forth the computation of basic and diluted net loss per share attributable to common stockholders (in thousands, except per share data):
Three Months Ended June 30,Six Months Ended June 30,
2023202220232022
Numerator:
Net loss$(35,658)$(69,753)$(78,322)$(118,812)
Denominator:
Weighted-average shares used in computing net loss per share attributable to Class A and Class B common stockholders - basic and diluted291,995 284,761 291,068 281,492 
Net loss per share attributable to Class A and Class B common stockholders - basic and diluted$(0.12)$(0.24)$(0.27)$(0.42)
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):
Three and Six Months Ended June 30,
20232022
RSUs and PRSUs33,802 35,716 
Stock options2,611 977 
ESPP80 151 
Total36,493 36,844 
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10. Income Taxes
The Company's quarterly tax provision and estimates of its annual effective tax rate are estimates due to several factors, including changes in pre-tax income (or loss), the mix of jurisdictions to which such income relates, discrete items (such as windfalls or shortfalls from stock-based compensation) in the period offset with our valuation allowance. The provision for income taxes was $3.6 million and $2.2 million for the three months ended June 30, 2023 and 2022, respectively; and $7.6 million and $4.7 million for the six months ended June 30, 2023 and 2022, respectively. The increase in the provision for income taxes in the three and six months ended June 30, 2023, as compared to the same periods in 2022, was primarily due to an increase in profit before tax from foreign jurisdictions.
11. Geographic Information
The following table summarizes revenue by geographic location (in thousands):
Three Months Ended June 30,Six Months Ended June 30,
2023202220232022
North America$64,244 $52,117 $125,311 $100,890 
Europe, Middle East and Africa56,338 47,878 109,204 93,383 
Asia Pacific20,361 18,240 40,386 35,719 
Other4,136 3,197 7,870 6,077 
Total revenue$145,079 $121,432 $282,771 $236,069 
Revenue from North America consists primarily of revenue from the United States. For the three months ended June 30, 2023 and 2022, revenue generated from the United States was $57.3 million and $46.2 million, or 39% and 38% of total consolidated revenue, respectively. For the six months ended June 30, 2023 and 2022, revenue generated from the United States was $111.2 million and $89.0 million, or 39% and 38% of total consolidated revenue, respectively. The United Kingdom, included within Europe, Middle East and Africa in the table above, contributed $