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Investments and Fair Value Measurements
 9 Months Ended
Sep. 30, 2023
Fair Value Disclosures [Abstract]  
Investments and Fair Value Measurements Investments and Fair Value Measurements
The Company's total cash, cash equivalents and marketable securities consisted of the following:
As of September 30,As of December 31,
20232022
(in thousands)
Cash and cash equivalents:
Cash$29,010 $46,516 
Money market funds216,378 96,875 
U.S. Treasury securities$24,912 $— 
Total cash and cash equivalents(1)
$270,300 $143,391 
Marketable securities:
U.S. Treasury securities$73,755 $287,988 
Corporate notes and bonds84,300 71,744 
Asset-backed securities— 175 
Municipal securities— 2,221 
Foreign government and supranational securities— 12,453 
Total marketable securities, current(2)
$158,055 $374,581 
Corporate notes and bonds31,321 140,949 
Asset-backed securities959 24,156 
Total marketable securities, non-current(3)
$32,280 $165,105 
Total marketable securities$190,335 $539,686 
Total cash, cash equivalents and marketable securities$460,635 $683,077 
(1) The Company’s cash equivalents include investments with an original maturity date of three months or less.
(2) The Company classifies its marketable securities as current, where it intends to hold the securities for less than 12 months.
(3) The Company classifies its marketable securities are non-current, where it intends to hold the securities for longer than 12 months.
Available-for-Sale Investments
The following table summarizes adjusted cost, gross unrealized gains and losses, and fair value related to available-for-sale securities classified as marketable securities on the accompanying condensed consolidated balance sheets as of September 30, 2023 and December 31, 2022:
As of September 30, 2023
Amortized
Cost		Gross
Unrealized
Gain		Gross
Unrealized
Loss		Fair
Value
(in thousands)
U.S. Treasury securities$73,753 $2 $— $73,755 
Corporate notes and bonds117,470 — (1,849)115,621 
Asset-backed securities961 — (2)959 
Municipal securities— — — — 
Total available-for-sale investments$192,184 $2 $(1,851)$190,335 
As of December 31, 2022
Amortized
Cost		Gross
Unrealized
Gain		Gross
Unrealized
Loss		Fair
Value
(in thousands)
U.S. Treasury securities$291,685 $— $(3,697)$287,988 
Corporate notes and bonds217,187 — (4,494)212,693 
Asset-backed securities24,617 — (286)24,331 
Municipal securities2,322 — (101)2,221 
Foreign government and supranational securities12,522 — (69)12,453 
Total available-for-sale investments$548,333 $— $(8,647)$539,686 
There were no material realized gains or losses from sales of marketable securities that were reclassified out of accumulated other comprehensive income (loss) into other income during the three and nine months ended September 30, 2023 and 2022. There were 40 securities in a continuous loss position for 12 months or longer as of September 30, 2023 and 76 securities in a continuous loss position for 12 months or longer as of December 31, 2022. Investments are reviewed periodically to identify possible other-than-temporary impairments. For the three and nine months ended September 30, 2023 and 2022, the Company did not record any impairment charges for its marketable debt securities in its condensed consolidated statements of operations. No impairment loss has been recorded on the securities as the Company does not intend to sell any impaired securities, nor is it more likely than not that the Company would be required to sell impaired securities before recovery of amortized cost basis. Furthermore, the Company has determined that the decline in fair value of the investment is not due to credit related factors.
Fair Value of Financial Instruments
For certain of the Company's financial instruments, including cash held in banks, accounts receivable, and accounts payable, the carrying amounts approximate fair value due to their short maturities, and are therefore excluded from the fair value tables below.
Fair value is defined as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. There is a three-tier fair value hierarchy, which prioritizes the inputs used in measuring fair value as follows:
Level 1—Observable inputs such as quoted prices in active markets for identical assets or liabilities;
Level 2—Inputs other than Level 1 that are observable, either directly or indirectly, such as quoted prices for similar assets or liabilities, quoted prices in markets that are not active, or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities; and
Level 3—Unobservable inputs that are supported by little or no market activity, which require management judgment or estimation.
The Company measures its cash equivalents, marketable securities, and restricted cash at fair value. The Company classifies its cash equivalents, marketable securities and restricted cash within Level 1 or Level 2 because the Company values these investments using quoted market prices or alternative pricing sources and models utilizing market observable inputs.
The Company classifies its investments, which are comprised of corporate notes and bonds, U.S. treasury securities, foreign government and supranational securities and asset-backed securities within Level 2 of the fair value hierarchy because the fair value of these securities is priced by using inputs based on non-binding market consensus prices that are primarily corroborated by observable market data or quoted market prices for similar instruments.
Financial assets and liabilities measured and recorded at fair value on a recurring basis consisted of the following types of instruments:
As of September 30, 2023
Level 1Level 2Level 3Total
(in thousands)
Cash equivalents:
Money market funds$216,378 $— $— $216,378 
U.S. Treasury securities$— $24,912 $— $24,912 
Total cash equivalents216,378 24,912 — 241,290 
Marketable securities:
Corporate notes and bonds— 115,621 — 115,621 
U.S. Treasury securities— 73,755 — 73,755 
Municipal securities— — — — 
Asset-backed securities— 959 — 959 
Foreign government and supranational securities— — — — 
Total marketable securities— 190,335 — 190,335 
Restricted cash:
Restricted cash, current150 — — 150 
Total restricted cash150 — — 150 
Total financial assets$216,528 $215,247 $— $431,775 
As of December 31, 2022
Level 1Level 2Level 3Total
(in thousands)
Cash equivalents:
Money market funds$96,875 $— $— $96,875 
Total cash equivalents96,875 — — 96,875 
Marketable securities:
U.S. Treasury securities— 287,988 — 287,988 
Corporate notes and bonds— 212,693 — 212,693 
Asset-backed securities— 24,331 — 24,331 
Municipal securities— 2,221 — 2,221 
Foreign government and supranational securities— 12,453 — 12,453 
Total marketable securities— 539,686 — 539,686 
Restricted cash:
Restricted cash, current150 — — 150 
Total restricted cash150 — — 150 
Total financial assets$97,025 $539,686 $— $636,711 
Restricted cash was $0.2 million as of both September 30, 2023 and December 31, 2022. The restricted cash balance consisted of letters of credit related to lease arrangements that were collateralized by the Company’s cash. The amounts as of September 30, 2023 and December 31, 2022, were both classified as current on the Company’s balance sheets.
There were no transfers of assets and liabilities measured at fair value between Level 1 and Level 2, or between Level 2 and Level 3, during the three and nine months ended September 30, 2023 and 2022.