Strategic Investments

3 Months Ended

Mar. 31, 2023

Equity Method Investments and Joint Ventures [Abstract]

We hold strategic investments primarily in privately held companies with a carrying value of $223.3 million and $252.3 million as of March 31, 2023 and December 31, 2022, respectively, which consist primarily of equity securities, and to a lesser extent, debt securities. These strategic investments are primarily recorded at fair value on a non-recurring basis. The estimation of fair value for these privately held strategic investments requires the use of significant unobservable inputs, such as the issuance of new equity by the company, and as a result, we deem these assets as Level 3 financial instruments within the fair value measurement framework.

Gains and losses recognized during the periods presented were as follows:


	Three Months Ended March 31,
	2023		2022
	(in thousands)

Unrealized gains (losses) on investments in privately held companies still held at the reporting date, net	$	1,079	$	13,255

Gains and losses on all strategic investments are included within other income (expense), net on our consolidated statements of operations and included as an adjustment to reconcile net loss to net cash provided by (used in) operating activities in our consolidated statements of cash flows. Strategic investments are included within other assets on our consolidated balance sheets.

All strategic investments are reviewed periodically for impairment. Impairment expense recorded for the three months ended March 31, 2023 and 2022, respectively, was not material.