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Financial Statement Components | 6 Months Ended
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Jun. 30, 2024
Organization, Consolidation and Presentation of Financial Statements [Abstract] |
Financial Statement Components | Note 3. Financial Statement Components Cash and cash equivalents consisted of the following (in thousands):
| June 30, 2024 |  | December 31, 2023
Cash | $ | 87,600 |  |  | $ | 113,733 |
Money market funds | 111,728 |  |  | 108,462 |
Total cash and cash equivalents | $ | 199,328 |  |  | $ | 222,195 |
As of June 30, 2024 and December 31, 2023, $1.2 million and $1.1 million in the cash balance above, respectively, represents restricted cash, which is held in the form of a bank deposit for issuance of a foreign bank guarantee. Accounts receivable, net consisted of the following (in thousands):
| June 30, 2024 |  | December 31, 2023
Accounts receivable | $ | 280,553 |  |  | $ | 280,544 |
Unbilled accounts receivable | 104,597 |  |  | 96,366 |
Allowance for doubtful accounts | (15,155) |  |  | (12,472) |
Accounts receivable, net | $ | 369,995 |  |  | $ | 364,438 |
Prepaid expenses and other current assets consisted of the following (in thousands):
| June 30, 2024 |  | December 31, 2023
Prepaid expenses | $ | 40,408 |  |  | $ | 32,440 |
Inventory | 1,908 |  |  | 1,492 |
Other current assets | 29,842 |  |  | 43,464 |
Total prepaid expenses and other current assets | $ | 72,158 |  |  | $ | 77,396 |
Property and equipment, net consisted of the following (in thousands):
| June 30, 2024 |  | December 31, 2023
Computer hardware and software | $ | 245,287 |  |  | $ | 238,802 |
Internal-use software development costs | 285,447 |  |  | 255,649 |
Furniture and fixtures | 9,732 |  |  | 8,964 |
Leasehold improvements | 14,278 |  |  | 14,369 |
Total property and equipment, gross | 554,744 |  |  | 517,784 |
Less: accumulated depreciation and amortization | (372,429) |  |  | (333,394) |
Property and equipment, net | $ | 182,315 |  |  | $ | 184,390 |
Total depreciation and amortization expense related to property and equipment was $21.6 million and $20.5 million for the three months ended June 30, 2024 and 2023, respectively, and $43.3 million and $40.8 million for the six months ended June 30, 2024 and 2023, respectively. A summary of activity of the Company’s carrying value of goodwill during the six months ended June 30, 2024 is presented in the following table (in thousands):
Balance as of December 31, 2023 | $ | 67,370 |
Acquisitions (Note 8) | 7,662 |
Foreign currency translation adjustments | (618) |
Balance as of June 30, 2024 | $ | 74,414 |
The carrying values of intangible assets are as follows (in thousands):
|  |  | June 30, 2024 |  | December 31, 2023
| Weighted-Average Remaining Useful Life |  | Cost |  | Accumulated Amortization |  | Acquired Intangibles, Net |  | Cost |  | Accumulated Amortization |  | Acquired Intangibles, Net
Customer relationships | 4.5 years |  | $ | 51,550 |  |  | $ | 22,641 |  |  | $ | 28,909 |  |  | $ | 26,506 |  |  | $ | 21,834 |  |  | $ | 4,672 |
Developed technology | 2.3 years |  | 777,396 |  |  | 483,365 |  |  | 294,031 |  |  | 826,077 |  |  | 436,982 |  |  | 389,095 |
Total acquired intangible assets |  |  | $ | 828,946 |  |  | $ | 506,006 |  |  | $ | 322,940 |  |  | $ | 852,583 |  |  | $ | 458,816 |  |  | $ | 393,767 |
During the six months ended June 30, 2024, the Company recognized a gross reduction of $50.6 million related to its developed technology assets. This reduction included $28.5 million due to an amended agreement with a strategic partner and $22.1 million attributed to the retirement of fully amortized developed technology. See Note 5 - Strategic Partnerships, for additional information regarding our amended agreement with a strategic partner. Amortization expense from acquired intangible assets for the three months ended June 30, 2024 and 2023 was $34.7 million and $37.5 million, respectively, and $69.6 million and $74.7 million for the six months ended June 30, 2024 and 2023, respectively. Amortization of developed technology is included in cost of revenues and amortization of customer relationships is included in sales and marketing expenses in the Condensed Consolidated Statements of Operations. Estimated amortization expense for acquired intangible assets for the following fiscal years is as follows (in thousands):
2024 (remaining) | $ | 66,730 |
2025 | 132,793 |
2026 | 110,502 |
2027 | 5,147 |
2028 onwards | 7,768 |
Total estimated amortization expense | $ | 322,940 |
Accrued liabilities consisted of the following (in thousands):
| June 30, 2024 |  | December 31, 2023
Accrued compensation and benefits | $ | 48,697 |  |  | $ | 63,009 |
Accrued sales, use, and telecom related taxes | 46,915 |  |  | 43,796 |
Accrued marketing and sales commissions | 33,555 |  |  | 60,528 |
Operating lease liabilities, short-term | 17,656 |  |  | 16,707 |
Other accrued expenses | 132,534 |  |  | 141,592 |
Total accrued liabilities | $ | 279,357 |  |  | $ | 325,632 |
Deferred and Prepaid Sales Commission Costs Amortization expense for the deferred and prepaid sales commission costs was $40.5 million and $32.9 million for the three months ended June 30, 2024 and 2023, respectively, and $79.1 million and $65.2 million for the six months ended June 30, 2024 and 2023, respectively. There was no asset write-off or impairment loss in relation to the deferred commissions costs capitalized for the periods presented. Supplier Financing Obligations The Company has established financing arrangements with certain third-party financial institutions and participating suppliers to be repaid over different terms ranging up to five years. Some of these financing arrangements are collateralized against property and equipment. As of June 30, 2024 and December 31, 2023, the Company’s outstanding financing obligations related to such arrangements included in accrued liabilities and other long-term liabilities were $2.4 million and $4.2 million respectively.

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