Cash, Cash Equivalents and Short-Term Investments

9 Months Ended

Sep. 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 September 30, 2024 and December 31, 2023 consisted of the following:


	As of September 30, 2024
	Amortized Cost		Unrealized Gain		Unrealized Loss		Estimated Fair Value
Cash	$	98.8	$	—	$	—	$	98.8
Cash equivalents
Money market funds	418.8		—		—		418.8
Total cash & cash equivalents	$	517.6	$	—	$	—	$	517.6
Short-term investments
Corporate notes and obligations	186.0		0.6		(4.1)		182.5
U.S. Treasury securities	120.3		0.3		(2.8)		117.8
Asset backed securities	36.6		—		(0.6)		36.0
Municipal securities	32.3		—		(0.7)		31.6
U.S. agency obligations	3.8		—		(0.2)		3.6
Supranational securities	1.8		—		(0.1)		1.7
Total short-term investments	380.8		0.9		(8.5)		373.2
Total	$	898.4	$	0.9	$	(8.5)	$	890.8


	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 $17.8 million and $17.0 million as of September 30, 2024 and December 31, 2023, respectively.

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

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


	As of September 30, 2024
	Amortized cost		Estimated fair value
Due within one year	$	100.1	$	98.9
Due between one to three years	256.9		250.7
Due after three years	23.8		23.6
Total	$	380.8	$	373.2

The Company had 219 short-term investments in unrealized loss positions as of September 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 nine months ended September 30, 2024 or the three and nine months ended September 30, 2023.

As of September 30, 2024, the Company’s short-term investments portfolio consisted of six security types, all of which were in an unrealized loss position. The Company’s short-term investments had unrealized losses of approximately $8.5 million

as of September 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 September 30, 2024 and December 31, 2023:


	As of September 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	$	6.2	$	—	$	123.9	$	(4.1)	$	130.1	$	(4.1)
U.S. Treasury securities	4.8		—		76.0		(2.8)		80.8		(2.8)
Asset backed securities	—		—		32.6		(0.6)		32.6		(0.6)
Municipal securities	6.2		—		25.3		(0.7)		31.5		(0.7)
U.S. agency obligations	—		—		3.6		(0.2)		3.6		(0.2)
Supranational securities	—		—		1.7		(0.1)		1.7		(0.1)
Total	$	17.2	$	—	$	263.1	$	(8.5)	$	280.3	$	(8.5)


	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 $8.7 million and $30.2 million during the three and nine months ended September 30, 2024, respectively and $8.9 million and $23.6 million during the three and nine months ended September 30, 2023, respectively.