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Leases
 12 Months Ended
Dec. 31, 2024
Leases [Abstract]  
Leases Leases
The Company has leases for offices, data centers and computer and networking equipment that expire at various dates through 2031. The Company’s leases have remaining terms of one to seven years, some of the leases include a Company option to extend the leases for up to one to five years, and some of the leases include the option to terminate the leases upon 30-days’ notice. The Company does not separate lease and non-lease components for real estate operating leases.
As the Company’s leases do not provide an implicit rate, the net present value of future minimum lease payments is determined using the Company’s incremental borrowing rate. Operating leases with a duration of 12 months or less are excluded from right-of-use assets and operating lease liabilities, and related lease payments are generally recognized on a straight-line basis over the lease term and variable lease payments are recognized as incurred.
The Company entered into three-year equipment finance lease agreements and recognized $18.6 million right of use assets during 2024, which were reported within Finance lease right-of-use assets on the consolidated balance sheets and are being depreciated on a straight-line basis over the lease term. As a result, the Company also recognized short-term lease liabilities of $5.9 million within Finance lease liabilities and long-term lease liabilities of $12.7 million within Finance lease liabilities - less current portion on the consolidated balance sheets for the year ended December 31, 2024.
The components of lease expenses were as follows (in thousands):
Year Ended December 31,
202420232022
Operating lease cost$13,270 $13,544 $12,072 
Finance lease cost:
Amortization of right-of-use assets$3,857 $940 $56 
Interest on finance lease liabilities552 155 — 
Total finance lease cost$4,409 $1,095 $56 
Supplemental cash flow information related to leases was as follows (in thousands):
Year Ended December 31,
202420232022
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash used in operating leases$(12,259)$(10,966)$(11,684)
Financing cash used in finance leases(4,012)(989)— 
Right of use assets obtained in exchange for lease obligations:
Operating leases9,448 6,454 5,984 
Finance leases18,559 5,505 — 
Supplemental balance sheet information related to leases was as follows (in thousands):
December 31,
20242023
Operating leases
Operating lease right-of-use assets$38,880 $38,873 
Operating lease liabilities$11,258 $10,731 
Operating lease liabilities — less current portion37,071 36,378 
Total operating lease liabilities$48,329 $47,109 
Finance leases
Finance lease right-of-use assets$19,269 $4,564 
Property and equipment, gross$21,708 $29,503 
Less: accumulated depreciation and amortization(21,708)(29,503)
Property and equipment, net$— $— 
Finance lease liabilities$7,768 $1,767 
Finance lease liabilities — less current portion11,688 2,877 
Total finance lease liabilities$19,456 $4,644 
During 2024, the Company recognized a $1.9 million impairment loss as a result of its commitment to close two operating lease facilities and a $0.3 million impairment loss related to the associated leasehold improvements and property and equipment.
Weighted average remaining terms were as follows (in years):
December 31,
20242023
Weighted average remaining lease term
Operating leases5.0 years5.7 years
Finance leases2.5 years2.6 years
Weighted average discount rates were as follows:
December 31,
20242023
Weighted average discount rate
Operating leases4.2 %3.8 %
Finance leases5.8 %6.1 %
Maturities of lease liabilities were as follows (in thousands):
Year Ending December 31,Operating LeasesFinance Leases
2025$12,898 $8,643 
202610,997 7,692 
20278,142 4,502 
20286,837 — 
20296,824 — 
Thereafter7,596 — 
Total future minimum lease payments53,294 20,837 
Less: imputed interest(4,965)(1,381)
Total$48,329 $19,456 
Leases Leases
The Company has leases for offices, data centers and computer and networking equipment that expire at various dates through 2031. The Company’s leases have remaining terms of one to seven years, some of the leases include a Company option to extend the leases for up to one to five years, and some of the leases include the option to terminate the leases upon 30-days’ notice. The Company does not separate lease and non-lease components for real estate operating leases.
As the Company’s leases do not provide an implicit rate, the net present value of future minimum lease payments is determined using the Company’s incremental borrowing rate. Operating leases with a duration of 12 months or less are excluded from right-of-use assets and operating lease liabilities, and related lease payments are generally recognized on a straight-line basis over the lease term and variable lease payments are recognized as incurred.
The Company entered into three-year equipment finance lease agreements and recognized $18.6 million right of use assets during 2024, which were reported within Finance lease right-of-use assets on the consolidated balance sheets and are being depreciated on a straight-line basis over the lease term. As a result, the Company also recognized short-term lease liabilities of $5.9 million within Finance lease liabilities and long-term lease liabilities of $12.7 million within Finance lease liabilities - less current portion on the consolidated balance sheets for the year ended December 31, 2024.
The components of lease expenses were as follows (in thousands):
Year Ended December 31,
202420232022
Operating lease cost$13,270 $13,544 $12,072 
Finance lease cost:
Amortization of right-of-use assets$3,857 $940 $56 
Interest on finance lease liabilities552 155 — 
Total finance lease cost$4,409 $1,095 $56 
Supplemental cash flow information related to leases was as follows (in thousands):
Year Ended December 31,
202420232022
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash used in operating leases$(12,259)$(10,966)$(11,684)
Financing cash used in finance leases(4,012)(989)— 
Right of use assets obtained in exchange for lease obligations:
Operating leases9,448 6,454 5,984 
Finance leases18,559 5,505 — 
Supplemental balance sheet information related to leases was as follows (in thousands):
December 31,
20242023
Operating leases
Operating lease right-of-use assets$38,880 $38,873 
Operating lease liabilities$11,258 $10,731 
Operating lease liabilities — less current portion37,071 36,378 
Total operating lease liabilities$48,329 $47,109 
Finance leases
Finance lease right-of-use assets$19,269 $4,564 
Property and equipment, gross$21,708 $29,503 
Less: accumulated depreciation and amortization(21,708)(29,503)
Property and equipment, net$— $— 
Finance lease liabilities$7,768 $1,767 
Finance lease liabilities — less current portion11,688 2,877 
Total finance lease liabilities$19,456 $4,644 
During 2024, the Company recognized a $1.9 million impairment loss as a result of its commitment to close two operating lease facilities and a $0.3 million impairment loss related to the associated leasehold improvements and property and equipment.
Weighted average remaining terms were as follows (in years):
December 31,
20242023
Weighted average remaining lease term
Operating leases5.0 years5.7 years
Finance leases2.5 years2.6 years
Weighted average discount rates were as follows:
December 31,
20242023
Weighted average discount rate
Operating leases4.2 %3.8 %
Finance leases5.8 %6.1 %
Maturities of lease liabilities were as follows (in thousands):
Year Ending December 31,Operating LeasesFinance Leases
2025$12,898 $8,643 
202610,997 7,692 
20278,142 4,502 
20286,837 — 
20296,824 — 
Thereafter7,596 — 
Total future minimum lease payments53,294 20,837 
Less: imputed interest(4,965)(1,381)
Total$48,329 $19,456