Cash, Cash Equivalents and Short-Term Investments

6 Months Ended

Jun. 30, 2024

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 June 30, 2024 and December 31, 2023 consisted of the following:


	As of June 30, 2024
	Amortized Cost		Unrealized Gain		Unrealized Loss		Estimated Fair Value
Cash	$	101.0	$	—	$	—	$	101.0
Cash equivalents
Money market funds	411.3		—		—		411.3
Corporate notes and obligations	2.7		—		—		2.7
U.S. Treasury securities	0.1		—		—		0.1
Total cash & cash equivalents	$	515.1	$	—	$	—	$	515.1
Short-term investments
Corporate notes and obligations	300.9		0.2		(7.7)		293.4
U.S. Treasury securities	145.7		—		(5.0)		140.7
Asset backed securities	50.9		—		(1.2)		49.7
Municipal securities	37.9		—		(1.4)		36.5
Commercial paper	14.6		—		—		14.6
Certificates of deposit	5.4		—		—		5.4
U.S. agency obligations	3.8		—		(0.3)		3.5
Foreign government obligations	2.0		—		(0.1)		1.9
Supranational securities	1.8		—		(0.1)		1.7
Total short-term investments	563.0		0.2		(15.8)		547.4
Total	$	1,078.1	$	0.2	$	(15.8)	$	1,062.5


	As of December 31, 2023
	Amortized Cost		Unrealized Gain		Unrealized Loss		Estimated Fair Value
Cash	81.3		$	—	$	—	81.3
Cash equivalents
Money market funds	514.8		—		—		514.8
U.S. Treasury securities	10.0		—		—		10.0
Commercial paper	4.4		—		—		4.4
Corporate notes and obligations	2.9		—		—		2.9
Certificates of deposit	1.3		—		—		1.3
Municipal securities	0.2		—		—		0.2
Total cash & cash equivalents	$	614.9	$	—	$	—	$	614.9
Short-term investments
Corporate notes and obligations	359.6		0.4		(10.3)		349.7
U.S. Treasury securities	231.2		0.2		(6.1)		225.3
Asset backed securities	72.3		—		(2.3)		70.0
Municipal securities	48.3		—		(2.0)		46.3
Commercial paper	30.7		—		—		30.7
Certificates of deposit	8.4		—		—		8.4
U.S. agency obligations	6.0		—		(0.3)		5.7
Foreign government obligations	3.5		—		(0.2)		3.3
Supranational securities	1.8		—		(0.1)		1.7
Total short-term investments	761.8		0.6		(21.3)		741.1
Total	$	1,376.7	$	0.6	$	(21.3)	$	1,356.0

Included in cash and cash equivalents is cash in transit from payment processors for credit and debit card transactions of $21.2 million and $17.0 million as of June 30, 2024 and December 31, 2023, respectively.

All short-term investments were designated as available-for-sale securities as of June 30, 2024 and December 31, 2023.

The following table presents the contractual maturities of the Company’s short-term investments as of June 30, 2024:


	As of June 30, 2024
	Amortized cost		Estimated fair value
Due within one year	$	172.8	$	171.0
Due between one to three years	361.6		348.6
Due after three years	28.6		27.8
Total	$	563.0	$	547.4

The Company had 368 short-term investments in unrealized loss positions as of June 30, 2024. There were no material gains or losses from short-term investments that were reclassified out of accumulated other comprehensive loss for the three and six months ended June 30, 2024 or the three and six months ended June 30, 2023.

As of June 30, 2024, 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 $15.8 million as of June 30, 2024. 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 June 30, 2024 and December 31, 2023:


	As of June 30, 2024
	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	$	77.6	$	(0.3)	$	168.4	$	(7.4)	$	246.0	$	(7.7)
U.S. Treasury securities	33.9		(0.2)		92.2		(4.8)		126.1		(5.0)
Asset backed securities	3.1		—		46.0		(1.2)		49.1		(1.2)
Municipal securities	—		—		36.3		(1.4)		36.3		(1.4)
U.S. agency obligations	—		—		3.5		(0.3)		3.5		(0.3)
Foreign government obligations	—		—		1.9		(0.1)		1.9		(0.1)
Supranational securities	—		—		1.7		(0.1)		1.7		(0.1)
Total	$	114.6	$	(0.5)	$	350.0	$	(15.3)	$	464.6	$	(15.8)


	As of December 31, 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	$	25.1	$	(0.1)	$	240.3	$	(10.2)	$	265.4	$	(10.3)
U.S. Treasury securities	17.8		(0.1)		174.0		(6.0)		191.8		(6.1)
Asset backed securities	0.6		—		66.0		(2.3)		66.6		(2.3)
Municipal securities	—		—		46.1		(2.0)		46.1		(2.0)
U.S. agency obligations	—		—		3.5		(0.3)		3.5		(0.3)
Foreign government obligations	—		—		3.3		(0.2)		3.3		(0.2)
Supranational securities	—		—		1.6		(0.1)		1.6		(0.1)
Total	$	43.5	$	(0.2)	$	534.8	$	(21.1)	$	578.3	$	(21.3)

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 $9.5 million and $21.5 million during the three and six months ended June 30, 2024, respectively and $7.4 million and $14.6 million during the three and six months ended June 30, 2023, respectively.