Balance Sheet Information

9 Months Ended

Sep. 30, 2021

Balance Sheet Related Disclosures [Abstract]

Property and equipment, net

Property and equipment, net consisted of the following:


	As of September 30,		As of December 31,
	2021		2020
	(in thousands)
Computer and networking equipment	$	187,050	$	129,998
Leasehold improvements	3,793		3,817
Furniture and fixtures	1,223		1,092
Office equipment	654		659
Internal-use software	35,316		22,066
Property and equipment, gross	$	228,036	$	157,632
Accumulated depreciation and amortization	(80,307)		(61,653)
Property and equipment, net	$	147,729	$	95,979

Depreciation on property and equipment for the three months ended September 30, 2021 and 2020 was approximately $7.4 million and $4.9 million, respectively. Included in these amounts was amortization expense for capitalized internal-use software costs of approximately $1.3 million and $0.5 million, respectively, for the three months ended September 30, 2021 and 2020.

Depreciation expense on property and equipment for the nine months ended September 30, 2021 and 2020 was approximately $20.7 million and $14.3 million, respectively. Included in these amounts was amortization expense for capitalized internal-use software costs of approximately $3.2 million and $1.7 million, respectively, for the nine months ended September 30, 2021 and 2020.

We recorded out-of-period adjustments in the quarter ended September 30, 2021 to correct and capitalize certain internal-use software costs that were previously expensed of $5.1 million, of which $2.4 million and $2.7 million related to the quarterly periods ended March 31, 2021 and June 30, 2021, respectively. In the quarter ended March 31, 2021, $2.0 million and $0.4 million were previously recorded to research and development and cost of revenue, respectively. In the quarter ended June 30, 2021, $2.3 million and $0.4 million were previously recorded to research and development and cost of revenue, respectively. The out-of-period adjustments are considered quantitatively and qualitatively immaterial.

As of September 30, 2021 and December 31, 2020, the unamortized balance of capitalized internal-use software costs on our Condensed Consolidated Balance Sheets was approximately $24.4 million and $14.2 million, respectively.

We lease certain networking equipment from various third parties, through equipment finance leases. Our networking equipment assets as of September 30, 2021 and December 31, 2020, included a total of $56.8 million and $36.2 million acquired under finance lease agreements, respectively. These leases are capitalized in property and equipment, and the related amortization of assets under finance leases is included in depreciation and amortization expense. The accumulated depreciation of the associated networking equipment assets under finance leases totaled $13.0 million and $6.7 million as of September 30, 2021 and December 31, 2020, respectively.

Other assets

Other assets consisted of the following:


	As of September 30,		As of December 31,
	2021		2020
	(in thousands)
Deferred contract costs, net	$	23,067	$	19,332
Restricted cash	893		893
Other assets	4,182		4,692
Total other assets	$	28,142	$	24,917

Accrued expenses

Accrued expenses consisted of the following:


	As of September 30,		As of December 31,
	2021		2020
	(in thousands)
Accrued compensation and related benefits	$	14,812	$	17,840
Sales and use tax payable	7,486		6,274
Accrued acquisition-related costs	—		3,644
Accrued colocation and bandwidth costs	7,231		2,208
Other accrued liabilities	6,534		4,368
Total accrued expenses	$	36,063	$	34,334

Other Current Liabilities

Other current liabilities consisted of the following:


	As of September 30,		As of December 31,
	2021		2020
	(in thousands)
Deferred revenue, current	$	21,631	$	15,916
Accrued computer and networking equipment	2,274		3,126
Liability for early-exercised stock options	213		255
Other current liabilities	640		380
Total other current liabilities	$	24,758	$	19,677

Other Long-Term Liabilities

Other long-term liabilities consisted of the following:


	As of September 30,		As of December 31,
	2021		2020
	(in thousands)
Deferred revenue, non-current	$	3,186	$	2,104
CARES Act payroll tax deferral	1,676		1,676
Other long-term liabilities	194		620
Total other long-term liabilities	$	5,056	$	4,400