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Convertible Senior Notes | 6 Months Ended
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Jun. 30, 2025
Debt Disclosure [Abstract] |
Convertible Senior Notes | Convertible Senior Notes The following table presents details of our convertible senior notes, which are further discussed below (original principal in thousands):
|  | Month Issued |  | Maturity Date |  | Free Convertibility Date |  | Redemption Date |  | Original Principal (including overallotment) |  | Initial Conversion Rate per $1,000 Principal |  | Initial Conversion Price
2026 Notes |  | August 2019 |  | August 15, 2026 |  | May 15, 2026 |  | August 21, 2023 |  | $ | 345,000 |  |  | 12.4756 |  | $ | 80.16 |
2028 Notes |  | August 2023 |  | August 15, 2028 |  | May 15, 2028 |  | August 21, 2026 |  | $ | 702,000 |  |  | 7.4690 |  | $ | 133.89 |
In August 2019, we issued $345.0 million aggregate principal amount of 1.125% convertible senior notes due 2026 in a private placement to qualified institutional buyers pursuant to Rule 144A under the Securities Act of 1933, as amended, including the exercise in full by the initial purchasers of their option to purchase an additional $45.0 million principal amount (the "2026 Notes”). The 2026 Notes bear interest at a fixed rate of 1.125% per annum, payable semi-annually in arrears on February 15 and August 15 of each year, commencing on February 15, 2020. Proceeds from the issuance of the 2026 Notes totaled $335.9 million, net of initial purchaser discounts and issuance costs. In August 2023, we issued $702.0 million aggregate principal amount of 1.250% convertible senior notes due 2028 in a private placement to qualified institutional buyers pursuant to Rule 144A under the Securities Act of 1933, as amended, including the partial exercise of 77.0 million principal amount by the initial purchasers of their option to purchase up to an additional $100 million principal amount (the "2028 Notes”). The 2028 Notes bear interest at a fixed rate of 1.250% per annum, payable semi-annually in arrears on February 15 and August 15 of each year, commencing on February 15, 2024. Proceeds from the issuance of the 2028 Notes totaled $691.1 million, net of initial purchaser discounts and issuance costs. The 2026 Notes and the 2028 Notes are together referred to as the "Notes". The Notes were issued pursuant to an indenture and are senior, unsecured obligations of the Company. The 2028 Notes will rank equally with all of the Company’s existing and future senior unsecured indebtedness, including the Company’s outstanding 2026 Notes. Holders of the Notes may convert all or a portion of their Notes prior to the close of business on their respective Free Convertibility dates, in multiples of $1,000 principal amount, only under the following circumstances: •during any calendar quarter commencing after the calendar quarter in which the respective Notes were issued (and only during such calendar quarter), if the last reported sale price of our Class A common stock, par value $0.001 per share, for at least 20 trading days (whether or not consecutive) during a period of 30 consecutive trading days ending on, and including, the last trading day of the immediately preceding calendar quarter is greater than or equal to 130% of the conversion price on each applicable trading day; •during the five consecutive business day period immediately following any ten consecutive trading day period (the “measurement period”) in which the trading price (as defined below) per $1,000 principal amount of Notes for each trading day of the measurement period was less than 98% of the product of the last reported sale price of our Class A common stock and the conversion rate on each such trading day; •if we call any or all of the Notes for redemption, at any time prior to the close of business on the scheduled trading day immediately preceding the redemption date; or •upon the occurrence of certain specified corporate events as set forth in the relevant indenture. On or after the relevant Free Convertibility Date, holders of the Notes may convert their Notes at any time until the close of business on the second scheduled trading day immediately preceding the maturity date of the Notes. Upon conversion, we will pay or deliver, as the case may be, cash, shares of our Class A common stock or a combination of cash and shares of our Class A common stock, at our election, in the manner and subject to the terms and conditions provided in the indenture. The Company may redeem for cash all or any portion of the Notes, at its option, on or after the respective Redemption Date, if the last reported sale price of the Company’s common stock has been at least 130% of the conversion price then in effect for at least 20 trading days (whether or not consecutive) during any 30 consecutive trading day period (including the last trading day of such period) ending on, and including, the trading day immediately preceding the date on which the Company provides notice of redemption at a redemption price equal to 100% of the principal amount of the Notes to be redeemed, plus any accrued and unpaid interest to, but excluding, the respective Redemption Date. As of June 30, 2025, the Free Convertibility Date for the 2026 Notes is less than one year from the balance sheet date and therefore the 2026 Notes are classified as current liabilities on the consolidated balance sheet. During the second quarter of 2025 none of the conversion conditions related to our 2028 Notes were met and therefore the 2028 Notes are not convertible at the option of the holders. As a result, the 2028 Notes were classified as non-current liabilities on the consolidated balance sheet as of June 30, 2025. Interest expense representing the amortization of issuance costs as well as contractual interest expense is amortized to interest expense at an effective interest rate of 1.5% and 1.6% over the term of the 2026 Notes and 2028 Notes, respectively. As of June 30, 2025, the remaining life of the 2026 Notes and 2028 Notes were approximately 1.2 years and 3.2 years, respectively. The net carrying amount of the Notes was as follows (in thousands):
| As of June 30, 2025 |  | As of December 31, 2024
| 2026 Notes |  | 2028 Notes |  | 2026 Notes |  | 2028 Notes
Principal | $ | 71,242 |  |  | $ | 702,000 |  |  | $ | 71,242 |  |  | $ | 702,000 |
Unamortized issuance costs | (305) |  |  | (6,825) |  |  | (441) |  |  | (7,910) |
Net carrying amount | $ | 70,937 |  |  | $ | 695,175 |  |  | $ | 70,801 |  |  | $ | 694,090 |
Interest expense related to the Notes was as follows (in thousands):
| Three months ended June 30, |  | Six months ended June 30,
| 2025 |  | 2024 |  | 2025 |  | 2024
Contractual interest expense | $ | 2,394 |  |  | $ | 2,394 |  |  | $ | 4,788 |  |  | $ | 4,788 |
Amortization of issuance costs | 610 |  |  | 609 |  |  | 1,220 |  |  | 1,217 |
Total | $ | 3,004 |  |  | $ | 3,003 |  |  | $ | 6,008 |  |  | $ | 6,005 |

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