Balance Sheet Components

3 Months Ended

Mar. 31, 2022

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Accounts Receivable, Net

As of March 31, 2022 and December 31, 2021, the Company’s allowance for doubtful accounts was $3.2 million and $2.6 million, respectively. Provision for bad debt for the three months ended March 31, 2022 and 2021 was $1.0 million and $1.4 million, respectively. For the three months ended March 31, 2022 and 2021, write-off of uncollectible accounts receivable was $0.5 million and $1.0 million, respectively.

Property and Equipment, Net

Property and equipment, net consisted of the following:


	March 31, 2022		December 31, 2021

	(in thousands)
Property and equipment:
Servers—network infrastructure	$	176,105	$	151,462
Construction in progress	36,564		41,424
Capitalized internal-use software	68,892		63,331
Office and computer equipment	29,329		24,451
Office furniture	7,095		5,927
Software	5,052		4,032
Leasehold improvements	16,790		12,892
Asset retirement obligation	827		430
Gross property and equipment	340,654		303,949
Less accumulated depreciation and amortization	(138,222)		(120,213)
Total property and equipment, net	$	202,432	$	183,736

Depreciation and amortization expense on property and equipment for the three months ended March 31, 2022 and 2021 was $18.9 million and $14.0 million, respectively. This includes amortization expense for capitalized internal-use software which totaled $4.8 million and $4.2 million for the three months ended March 31, 2022 and 2021, respectively.

Goodwill

As of March 31, 2022 and December 31, 2021, the Company's goodwill was $28.5 million and $23.5 million, respectively. During the three months ended March 31, 2022, the Company recorded $5.0 million of goodwill in connection with the acquisition of Vectrix Security, Inc. (Vectrix). For further details on this acquisition, refer to Note 13 to these consolidated financial statements. No goodwill impairments were recorded during the three months ended March 31, 2022 and 2021.

Acquired Intangible Assets, Net

Acquired intangible assets, net consisted of the following:


	March 31, 2022
	Gross Carrying Amount		Accumulated Amortization		Net Book Value

	(in thousands)
Developed technology	$	10,100	$	6,254	$	3,846
Total acquired intangible assets, net	$	10,100	$	6,254	$	3,846


	December 31, 2021
	Gross Carrying Amount		Accumulated Amortization		Net Book Value

	(in thousands)
Developed technology	$	7,000	$	5,746	$	1,254
Total acquired intangible assets, net	$	7,000	$	5,746	$	1,254

Amortization of acquired intangible assets for the three months ended March 31, 2022 and 2021 was $0.5 million and $0.7 million, respectively.

As of March 31, 2022, the estimated future amortization expense of acquired intangible assets was as follows:


	Estimated Amortization
	(in thousands)
Year ending December 31,
2022 (remaining nine months)	$	1,687
2023	2,103
2024	56
Total	$	3,846