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Fair Value of Financial Instruments
 3 Months Ended
Mar. 31, 2023
Fair Value Disclosures [Abstract]  
Fair Value of Financial Instruments Fair Value of Financial Instruments
The following table presents the financial instruments and liabilities that are carried at fair value and summarizes their valuation by the respective pricing levels as of March 31, 2023 and December 31, 2022:
 As of March 31, 2023
(In thousands)Total
Quoted Market Prices in Active Markets
 (Level 1)
Significant Other Observable Inputs
 (Level 2)
Significant Unobservable Inputs
 (Level 3)
Assets carried at fair value
Money market funds$13,089 $13,089 $— $— 
Time deposits9,646 — 9,646 — 
U.S. Government bonds and notes96,250 — 96,250 — 
Corporate notes, bonds and commercial paper90,360 — 90,360 — 
Total assets carried at fair value$209,345 $13,089 $196,256 $— 
Liabilities carried at fair value
Earn-out consideration related to PLDA acquisition$21,700 $— $— $21,700 
Total liabilities carried at fair value$21,700 $— $— $21,700 
 As of December 31, 2022
(In thousands)Total
Quoted Market Prices in Active Markets
 (Level 1)
Significant Other Observable Inputs
 (Level 2)
Significant Unobservable Inputs
 (Level 3)
Assets carried at fair value
Money market funds$15,763 $15,763 $— $— 
U.S. Government bonds and notes96,371 — 96,371 — 
Corporate notes, bonds and commercial paper106,355 — 106,355 — 
Total available-for-sale securities$218,489 $15,763 $202,726 $— 
Liabilities carried at fair value
Earn-out consideration related to PLDA acquisition$14,800 $— $— $14,800 
Total liabilities carried at fair value$14,800 $— $— $14,800 
The Company’s liabilities related to earn-out consideration are classified within Level 3 of the fair value hierarchy because the fair value is determined using significant unobservable inputs. The following table presents additional information about liabilities measured at fair value for which the Company utilizes Level 3 inputs to determine fair value, as of March 31, 2023 and 2022.
Three Months Ended
March 31,
(In thousands)20232022
Balance as of beginning of period$14,800 $16,900 
Change in fair value of earn-out liability due to remeasurement6,900 1,200 
Balance as of end of period$21,700 $18,100 
For the three months ended March 31, 2023 and 2022, the changes in the fair value of the earn-out liability related to the 2021 acquisition of PLDA Group (“PLDA”), which is subject to certain revenue targets of the acquired business for a period of three years from the date of acquisition. The fair value of the earn-out liability is remeasured each quarter, depending on the acquired business’s revenue performance relative to target over the applicable period. The Company has classified its liability for the contingent earn-out consideration related to the PLDA acquisition within Level 3 of the fair value hierarchy because the fair value is determined using significant unobservable inputs. During the three months ended March 31, 2023 and 2022, the Company remeasured the fair value of the earn-out liability, which resulted in additional expenses of $6.9 million and $1.2 million, respectively, in the Company’s unaudited condensed consolidated statements of operations.
The Company monitors its investments for other-than-temporary impairment and records appropriate reductions in carrying value when necessary. The Company monitors its investments for other-than-temporary losses by considering current factors, including the economic environment, market conditions, operational performance and other specific factors relating to the business underlying the investment, reductions in carrying values when necessary and the Company’s ability and intent to hold the investment for a period of time which may be sufficient for anticipated recovery in the market. Any other-than-temporary loss is reported under “Interest and other income (expense), net” in the unaudited condensed consolidated statement of operations.
During the second half of 2018, the Company made an investment in a non-marketable equity security of a private company. This equity investment is accounted for under the equity method of accounting, and the Company accounts for its equity method share of the income (loss) on a quarterly basis. As of March 31, 2023 and December 31, 2022, the carrying value of the Company’s 25.0% ownership percentage was $0.1 million and $0.5 million, respectively, which were included in other assets in the accompanying unaudited condensed consolidated balance sheets. The Company recorded immaterial amounts in its condensed consolidated statements of operations representing its share of the investee’s loss for the three months ended March 31, 2023 and 2022.
During the three months ended March 31, 2023 and 2022, there were no transfers of financial instruments between different categories of fair value.
The following table presents the financial instruments that are not carried at fair value but require fair value disclosure as of March 31, 2023 and December 31, 2022:
 As of March 31, 2023As of December 31, 2022
(In thousands)
Face
 Value
Carrying
 Value
Fair Value
Face
 Value
Carrying
 Value
Fair Value
1.375% Convertible Senior Notes due 2023 (the “2023 Notes”)$— $— $— $10,381 $10,378 $19,625 
The fair value of the convertible notes at each balance sheet date was determined based on recent quoted market prices for these notes which is a Level 2 measurement. As discussed in Note 9, “Convertible Notes,” during the three months ended March 31, 2023, the Company settled the remaining $10.4 million aggregate principal amount of the 2023 Notes. As of December 31, 2022, the 2023 Notes were carried at their face value of $10.4 million, less any unamortized debt issuance costs. The carrying value of other financial instruments, including accounts receivable, accounts payable and other liabilities, approximated fair value due to their short maturities.