Cash, Cash Equivalents and Short-Term Investments

9 Months Ended

Sep. 30, 2023

Cash and Cash Equivalents [Abstract]

Cash, Cash Equivalents and Short-Term Investments

The amortized cost, unrealized gains and losses and estimated fair value of the Company's cash, cash equivalents and short-term investments as of September 30, 2023 and December 31, 2022 consisted of the following:


	As of September 30, 2023
	Amortized Cost		Unrealized Gain		Unrealized Loss		Estimated Fair Value
Cash	$	85.2	$	—	$	—	$	85.2
Cash equivalents
Money market funds	500.6		—		—		500.6
U.S. Treasury securities	14.7		—		—		14.7
Commercial paper	2.7		—		—		2.7
Corporate notes and obligations	0.8		—		—		0.8
Certificates of deposit	0.3		—		—		0.3
Total cash & cash equivalents	$	604.3	$	—	$	—	$	604.3
Short-term investments
Corporate notes and obligations	313.5		—		(15.4)		298.1
U.S. Treasury securities	242.5		—		(9.6)		232.9
Asset backed securities	79.2		—		(3.4)		75.8
Municipal securities	54.2		—		(2.9)		51.3
Commercial paper	19.8		—		—		19.8
U.S. agency obligations	10.0		—		(0.4)		9.6
Certificates of deposit	9.8		—		—		9.8
Foreign government obligations	5.9		—		(0.2)		5.7
Supranational securities	1.8		—		(0.2)		1.6
Total short-term investments	736.7		—		(32.1)		704.6
Total	$	1,341.0	$	—	$	(32.1)	$	1,308.9


	As of December 31, 2022
	Amortized Cost		Unrealized Gain		Unrealized Loss		Estimated Fair Value
Cash	$	90.1	$	—	$	—	$	90.1
Cash equivalents
Money market funds	139.5		—		—		139.5
Commercial paper	3.2		—		—		3.2
Total cash & cash equivalents	$	232.8	$	—	$	—	$	232.8
Short-term investments
Corporate notes and obligations	512.1		0.1		(22.7)		489.5
U.S. Treasury securities	360.2		0.2		(14.0)		346.4
Asset backed securities	117.6		—		(6.0)		111.6
Municipal securities	65.3		—		(4.1)		61.2
Commercial paper	46.4		—		—		46.4
Certificates of deposit	29.1		—		—		29.1
U.S. agency obligations	18.4		—		(0.8)		17.6
Foreign government obligations	6.0		—		(0.4)		5.6
Supranational securities	3.4		—		(0.2)		3.2
Total short-term investments	1,158.5		0.3		(48.2)		1,110.6
Total	$	1,391.3	$	0.3	$	(48.2)	$	1,343.4

Included in cash and cash equivalents is cash in transit from payment processors for credit and debit card transactions of $18.5 million and $12.4 million as of September 30, 2023 and December 31, 2022, respectively.

All short-term investments were designated as available-for-sale securities as of September 30, 2023 and December 31, 2022.

The following table presents the contractual maturities of the Company’s short-term investments as of September 30, 2023:


	As of September 30, 2023
	Amortized cost		Estimated fair value
Due within one year	$	318.0	$	312.5
Due between one to three years	357.5		334.6
Due after three years	61.2		57.5
Total	$	736.7	$	704.6

The Company had 469 short-term investments in unrealized loss positions as of September 30, 2023. There were no material gains or losses from short-term investments that were reclassified out of accumulated other comprehensive loss for the three and nine months ended September 30, 2023 or for the three and nine months ended September 30, 2022.

As of September 30, 2023, the Company’s short-term investments portfolio consisted of nine security types, seven of which were in an unrealized loss position. The Company’s short-term investments had unrealized losses of approximately $32.1 million as of September 30, 2023. The following tables present the breakdown of the short-term investments that have been in a continuous unrealized loss position aggregated by investment category, as of September 30, 2023 and December 31, 2022:


	As of September 30, 2023
	Less than 12 months				More than 12 months				Total
	Fair Value		Gross Unrealized Losses		Fair Value		Gross Unrealized Losses		Fair Value		Gross Unrealized Losses
Corporate notes and obligations	$	36.5	$	(0.3)	$	255.4	$	(15.1)	$	291.9	$	(15.4)
U.S. Treasury securities	35.4		(0.6)		187.2		(9.0)		222.6		(9.6)
Asset backed securities	4.3		—		71.6		(3.4)		75.9		(3.4)
Municipal securities	—		—		51.1		(2.9)		51.1		(2.9)
U.S. agency obligations	2.3		—		3.4		(0.4)		5.7		(0.4)
Foreign government obligations	—		—		5.6		(0.2)		5.6		(0.2)
Supranational securities	—		—		1.6		(0.2)		1.6		(0.2)
Total	$	78.5	$	(0.9)	$	575.9	$	(31.2)	$	654.4	$	(32.1)


	As of December 31, 2022
	Less than 12 months				More than 12 months				Total
	Fair Value		Gross Unrealized Losses		Fair Value		Gross Unrealized Losses		Fair Value		Gross Unrealized Losses
Corporate notes and obligations	$	176.5	$	(3.5)	$	292.3	$	(19.2)	$	468.8	$	(22.7)
U.S. Treasury securities	110.9		(1.8)		176.9		(12.2)		287.8		(14.0)
Asset backed securities	13.7		(0.4)		90.4		(5.6)		104.1		(6.0)
Municipal securities	9.3		(0.3)		51.6		(3.8)		60.9		(4.1)
U.S. agency obligations	3.9		—		13.8		(0.8)		17.7		(0.8)
Foreign government obligations	—		—		5.5		(0.4)		5.5		(0.4)
Supranational securities	—		—		3.2		(0.2)		3.2		(0.2)
Total	$	314.3	$	(6.0)	$	633.7	$	(42.2)	$	948.0	$	(48.2)

Unrealized losses on short-term investments have not been recorded into income because management does not intend to sell nor will be required to sell these securities prior to their anticipated recovery, and for which the decline in fair value is largely due to changes in interest rates. The credit ratings associated with the corporate notes and obligations are mostly unchanged, are highly rated and the issuers continue to make timely principal and interest payments.

The Company recorded interest income from its cash, cash equivalents, and short-term investments of $8.9 million and $23.6 million during the three and nine months ended September 30, 2023, respectively, and $4.7 million and $9.1 million during the three and nine months ended September 30, 2022, respectively.