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Fair Value Measurements
 9 Months Ended
Sep. 30, 2021
Fair Value Disclosures [Abstract]  
Fair Value Measurements Fair Value Measurements
The Company’s financial instruments consist of cash equivalents, marketable securities, accounts receivable, unbilled Customers' receivable, settlements receivable, accounts payable, accrued liabilities, and prior to the IPO, redeemable convertible preferred stock warrant liabilities. Cash equivalents are stated at amortized cost, which approximates fair value at the balance sheet dates, due to the short period of time to maturity. Marketable securities are carried at fair value. Accounts receivable, unbilled Customers' receivable, settlements receivable, accounts payable, and accrued liabilities are stated at their carrying value, which approximates fair value due to the short time to the expected receipt or payment date. The redeemable convertible preferred stock warrant liabilities were carried at fair value.
The following tables present the fair value hierarchy for assets and liabilities measured at fair value:
September 30, 2021
Level 1Level 2Level 3Total Fair Value
Cash equivalents
Money market funds$1,227,637 $— $— $1,227,637 
Marketable securities
U.S. government securities374,593 — — 374,593 
Commercial paper— 16,880 — 16,880 
Asset-backed securities— 2,017 — 2,017 
Corporate debt securities— 15,464 — 15,464 
Total assets$1,602,230 $34,361 $— $1,636,591 
December 31, 2020
Level 1Level 2Level 3Total Fair Value
Cash equivalents
Money market funds$203,592 $— $— $203,592 
Marketable securities
U.S. government securities125,864 — — 125,864 
Commercial paper— 4,991 — 4,991 
Asset-backed securities— 4,315 — 4,315 
Corporate debt securities— 14,733 — 14,733 
Total assets$329,456 $24,039 $— $353,495 
Other liabilities
Redeemable convertible preferred stock warrants$— $— $2,517 $2,517 
Total liabilities$— $— $2,517 $2,517 
The Company classifies money market funds, commercial paper, U.S. government securities, asset-backed securities and corporate securities within Level 1 or Level 2 of the fair value hierarchy because the Company values these investments using quoted market prices or alternative pricing sources and models utilizing market observable inputs.
The Company classifies the redeemable convertible preferred stock warrants within Level 3 because the Company determines their fair value using unobservable inputs, including the fair value of the Company’s redeemable Series B convertible stock, which the Company determines in the same manner as the fair value of its common stock prior to the IPO. The Company records the change in the fair value of redeemable convertible preferred stock warrants in other income (expense), net in the condensed consolidated statements of operations.
Immediately prior to the completion of the IPO in June 2021, the outstanding redeemable convertible preferred stock warrants were converted to Class B common stock warrants and the fair value of the liability as of that date was reclassified into the Company’s Class B common stock and additional paid-in capital.
The fair value of the redeemable convertible preferred stock warrant liabilities was estimated using the following assumptions:
June 9,
2021		December 31,
2020
Dividend yield0.00%0.00%
Expected volatility49.93%49.93%
Expected term (in years)2.342.78
Risk-free interest rate0.31%0.17%
Fair value of Series B redeemable convertible preferred stock$27.00$12.66
The following table sets forth a summary of the changes in the fair value of the redeemable convertible preferred stock warrant liabilities:
September 30,
2021		December 31,
2020
Balance, beginning of the period$2,517 $569 
Remeasurement of redeemable convertible preferred stock warrant liabilities2,921 1,948 
Reclassification of redeemable convertible preferred stock warrant liabilities to common stock and additional paid-in capital upon initial public offering(5,438)— 
Balance, end of the period$— $2,517 
There were no transfers of financial instruments between the fair value hierarchy levels during the three and nine months ended September 30, 2021 and the year ended December 31, 2020.