XML 28 R15.htm IDEA: XBRL DOCUMENT v3.25.1
Leases
 3 Months Ended
Mar. 31, 2025
Leases [Abstract]  
Leases Leases
The Company has operating leases for corporate offices, datacenters and finance leases for infrastructure and computer equipment. The Company’s leases have remaining lease terms of under 1 year to 11 years, some of which include options to extend the leases for up to 5 years.

The Company also has subleases for several floors of its corporate offices. The Company classifies its subleases as operating leases. The subleases have remaining lease terms of under 1 year to 9 years, some of which include tenant options to extend the sublease for up to approximately 4 years. Sublease income, which is recorded as a reduction of rental expense, was $3.0 million and $3.5 million during the three months ended March 31, 2025 and 2024, respectively.
Future minimum lease payments under non-cancellable leases as of March 31, 2025 were as follows:

Operating leases(1)
Finance leases
Remainder of 2025$46.8 $109.8 
202648.3 123.7
202747.986.0
202846.943.7
202946.22.5
203042.9 — 
Thereafter106.2 — 
Total future minimum lease payments$385.2 $365.7 
Less imputed interest(66.4)(29.0)
Total liability$318.8 $336.7 
(1) Consists of future non-cancelable minimum rental payments under operating leases for the Company’s corporate offices and datacenters where the Company has possession, excluding rent payments for short-term lease obligations, payments from the Company’s subtenants and variable operating expenses.

Future non-cancelable rent payments from the Company's subtenants as of March 31, 2025 were as follows:

Operating leases
Remainder of 2025$9.4 
20269.4 
20279.0 
20288.6 
20296.0 
20305.4 
Thereafter8.6 
Total future sublease rent payments, net$56.4 

In 2017, the Company signed a 15 year lease agreement for office space in San Francisco, California, to serve as its corporate headquarters which commenced in 2018. The Company's obligations under the lease are supported by a $17.5 million letter of credit, which is secured by cash collateral. As of March 31, 2025, the Company's remaining minimum obligation under the lease for its headquarters was $150.2 million.

In the fourth quarter of 2020, the Company moved to a Virtual First work model pursuant to which remote work has become the primary experience for all of its employees. As part of the Virtual First strategy, the Company retained a portion of its office space to be used for the Company’s team collaboration use and a portion was marketed for sublease. Subsequently, every quarter, the Company has evaluated its real estate portfolio for impairment under ASC 360. As part of this analysis, the Company reassesses its real estate asset groups and estimates the fair value of the office space to be subleased using current market conditions. Where the carrying value of the individual asset groups exceeds their fair value, an impairment charge will be recognized for the difference.

During the three months ended March 31, 2025 and 2024, the Company did not recognize any impairment charges related to right-of-use assets and other lease related property and equipment assets.

In the fourth quarter of 2023, the Company executed an amendment to the lease ("the lease amendment") for its San Francisco, California corporate headquarters, whereby the Company surrendered to the landlord approximately 165,000 square feet of office space and agreed to pay an aggregate of $79.0 million in termination payments. The termination fees occurred in three tranches: approximately 52,000 square feet and $28.1 million paid in October 2023 upon the execution of the lease
amendment, 54,000 square feet and $14.9 million paid in June 2024, and the remaining 59,000 square feet and $36.0 million paid in January 2025.

As of March 31, 2025, the Company had $84.3 million in commitments for leases that have not yet commenced, and therefore is not included in the right-of-use asset or lease liability. These leases will commence in 2025, with lease terms of 6 to 7 years.
Leases Leases
The Company has operating leases for corporate offices, datacenters and finance leases for infrastructure and computer equipment. The Company’s leases have remaining lease terms of under 1 year to 11 years, some of which include options to extend the leases for up to 5 years.

The Company also has subleases for several floors of its corporate offices. The Company classifies its subleases as operating leases. The subleases have remaining lease terms of under 1 year to 9 years, some of which include tenant options to extend the sublease for up to approximately 4 years. Sublease income, which is recorded as a reduction of rental expense, was $3.0 million and $3.5 million during the three months ended March 31, 2025 and 2024, respectively.
Future minimum lease payments under non-cancellable leases as of March 31, 2025 were as follows:

Operating leases(1)
Finance leases
Remainder of 2025$46.8 $109.8 
202648.3 123.7
202747.986.0
202846.943.7
202946.22.5
203042.9 — 
Thereafter106.2 — 
Total future minimum lease payments$385.2 $365.7 
Less imputed interest(66.4)(29.0)
Total liability$318.8 $336.7 
(1) Consists of future non-cancelable minimum rental payments under operating leases for the Company’s corporate offices and datacenters where the Company has possession, excluding rent payments for short-term lease obligations, payments from the Company’s subtenants and variable operating expenses.

Future non-cancelable rent payments from the Company's subtenants as of March 31, 2025 were as follows:

Operating leases
Remainder of 2025$9.4 
20269.4 
20279.0 
20288.6 
20296.0 
20305.4 
Thereafter8.6 
Total future sublease rent payments, net$56.4 

In 2017, the Company signed a 15 year lease agreement for office space in San Francisco, California, to serve as its corporate headquarters which commenced in 2018. The Company's obligations under the lease are supported by a $17.5 million letter of credit, which is secured by cash collateral. As of March 31, 2025, the Company's remaining minimum obligation under the lease for its headquarters was $150.2 million.

In the fourth quarter of 2020, the Company moved to a Virtual First work model pursuant to which remote work has become the primary experience for all of its employees. As part of the Virtual First strategy, the Company retained a portion of its office space to be used for the Company’s team collaboration use and a portion was marketed for sublease. Subsequently, every quarter, the Company has evaluated its real estate portfolio for impairment under ASC 360. As part of this analysis, the Company reassesses its real estate asset groups and estimates the fair value of the office space to be subleased using current market conditions. Where the carrying value of the individual asset groups exceeds their fair value, an impairment charge will be recognized for the difference.

During the three months ended March 31, 2025 and 2024, the Company did not recognize any impairment charges related to right-of-use assets and other lease related property and equipment assets.

In the fourth quarter of 2023, the Company executed an amendment to the lease ("the lease amendment") for its San Francisco, California corporate headquarters, whereby the Company surrendered to the landlord approximately 165,000 square feet of office space and agreed to pay an aggregate of $79.0 million in termination payments. The termination fees occurred in three tranches: approximately 52,000 square feet and $28.1 million paid in October 2023 upon the execution of the lease
amendment, 54,000 square feet and $14.9 million paid in June 2024, and the remaining 59,000 square feet and $36.0 million paid in January 2025.

As of March 31, 2025, the Company had $84.3 million in commitments for leases that have not yet commenced, and therefore is not included in the right-of-use asset or lease liability. These leases will commence in 2025, with lease terms of 6 to 7 years.