Balance Sheet Components

6 Months Ended

Jun. 30, 2024

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Accounts Receivable, Net

As of June 30, 2024 and December 31, 2023, the Company’s allowance for doubtful accounts was $7.7 million and $6.0 million, respectively. Provision for bad debt for the three months ended June 30, 2024 and 2023 was $1.5 million and $4.4 million, respectively, and for the six months ended June 30, 2024 and 2023 was $4.1 million and $6.0 million, respectively. Write-off of uncollectible accounts receivable for the three months ended June 30, 2024 and 2023 was $1.0 million and $2.7 million, respectively, and for the six months ended June 30, 2024 and 2023 was $2.4 million and $3.7 million, respectively.

Property and Equipment, Net

Property and equipment, net consisted of the following:


	June 30, 2024		December 31, 2023

	(in thousands)
Property and equipment:
Servers—network infrastructure	$	383,716	$	330,295
Construction in progress	33,728		45,557
Capitalized internal-use software	92,944		75,163
Office and computer equipment	35,784		32,043
Office furniture	8,998		9,003
Software	5,513		5,422
Leasehold improvements	44,469		42,984
Asset retirement obligation	826		826
Gross property and equipment	605,978		541,293
Less accumulated depreciation and amortization	(266,854)		(218,480)
Total property and equipment, net	$	339,124	$	322,813

Depreciation and amortization expense on property and equipment for the three months ended June 30, 2024 and 2023 was $26.3 million and $28.4 million, respectively, and for the six months ended June 30, 2024 and 2023 was $50.4 million and $54.2 million, respectively. This includes amortization expense for capitalized internal-use software which totaled $5.9 million and $5.3 million for the three months ended June 30, 2024 and 2023, respectively, and $11.4 million and $10.7 million for the six months ended June 30, 2024 and 2023, respectively.

Goodwill

As of June 30, 2024 and December 31, 2023, the Company's goodwill was $156.2 million and $148.0 million, respectively. During the three months ended June 30, 2024, the Company recorded $8.1 million of goodwill in connection with the acquisition of BastionZero. For further details on this acquisition, refer to Note 13 to these condensed consolidated financial statements. No goodwill impairments were recorded during the six months ended June 30, 2024 and 2023.

Acquired Intangible Assets, Net

Acquired intangible assets, net consisted of the following:


	June 30, 2024
	Gross Carrying Amount		Accumulated Amortization		Net Book Value

	(in thousands)
Developed technology	$	16,431	$	3,105	$	13,326

Customer relationships	11,600		3,263		8,337
Total acquired intangible assets, net	$	28,031	$	6,368	$	21,663


	December 31, 2023
	Gross Carrying Amount		Accumulated Amortization		Net Book Value

	(in thousands)
Developed technology	$	47,183	$	36,893	$	10,290
Trade name	1,700		1,488		212
Customer relationships	11,600		2,538		9,062
Total acquired intangible assets, net	$	60,483	$	40,919	$	19,564

During the three months ended June 30, 2024, the Company acquired $9.3 million of developed technology, primarily through the acquisition of BastionZero, which accounted for $5.1 million of the total acquired intangible assets. Refer to Note 13 to these condensed consolidated financial statements for further details on this acquisition.

Amortization of acquired intangible assets was $2.0 million and $4.9 million for the three months ended June 30, 2024 and 2023, respectively, and $7.2 million and $9.8 million for the six months ended June 30, 2024 and 2023, respectively.

As of June 30, 2024, the estimated future amortization expense of acquired intangible assets was as follows:


	Estimated Amortization
	(in thousands)
Year ending December 31,
2024 (remaining six months)	$	4,833
2025	9,065
2026	3,053
2027	1,450
2028	1,450
Thereafter	1,812
Total	$	21,663