Balance Sheet Information

12 Months Ended

Dec. 31, 2023

Balance Sheet Related Disclosures [Abstract]

Allowance for Credit Losses

The activity in the accounts receivable reserves is as follows:


	As of December 31,
	2023		2022		2021
	(in thousands)
Beginning balance	$	5,029	$	3,311	$	3,248
Additions to the reserves	2,025		2,406		196
Write-offs and adjustments	—		(688)		(133)
Ending balance	$	7,054	$	5,029	$	3,311

Property and Equipment, Net

Property and equipment, net consisted of the following:


	As of December 31,
	2023		2022
	(in thousands)
Computer and networking equipment	$	224,313	$	225,009
Leasehold improvements	8,605		8,374
Furniture and fixtures	2,142		1,792
Office equipment	1,228		1,176
Internal-use software	97,623		66,488
Property and equipment, gross	333,911		302,839
Accumulated depreciation and amortization	(157,303)		(122,461)
Property and equipment, net	$	176,608	$	180,378

During the year ended December 31, 2023, the Company recognized an impairment charge of $4.3 million, of which $3.0 million related to property and equipment, net and $1.3 million related to advance payments for the purchase of property and equipment. The write-off was primarily related to excess computer and networking equipment including software the Company does not expect to use and therefore abandoned. Impairment charges are included within impairment expense in the consolidated statements of operations. There were no impairments during the years ended December 31, 2022 and 2021.

Depreciation on property and equipment for the years ended December 31, 2023, 2022 and 2021 was approximately $51.6 million, $42.6 million, and $28.8 million, respectively. Included in these amounts was amortization expense for capitalized internal-use software costs of approximately $14.0 million, $8.6 million and $4.6 million for the years ended December 31, 2023, 2022 and 2021, respectively. As of December 31, 2023 and 2022, the unamortized balance of capitalized internal-use software costs on the Company’s consolidated balance sheets was approximately $62.6 million and $45.5 million, respectively.

The Company leases certain networking equipment from various third parties through equipment finance leases. The Company’s networking equipment assets as of December 31, 2023 and 2022, included a total of $74.7 million and $77.3 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 $40.1 million and $28.1 million as of December 31, 2023 and 2022, respectively.

Other Assets

Other assets consisted of the following:


	As of December 31,
	2023		2022
	(in thousands)
Deferred contract costs, net	$	61,981	$	50,523
Advance payment for purchase of property and equipment	24,509		37,013
Other assets	4,289		5,086
Total other assets	$	90,779	$	92,622

Accrued Expenses

Accrued expenses consisted of the following:


	As of December 31,
	2023		2022
	(in thousands)
Accrued compensation and related benefits	$	14,918	$	20,204
Accrued bonus	24,614		15,818
Accrued colocation and bandwidth costs	14,362		10,448
Other tax liabilities	4,344		8,698
Other accrued expenses	3,580		5,993
Total accrued expenses	$	61,818	$	61,161

Other Current Liabilities

Other current liabilities consisted of the following:


	As of December 31,
	2023		2022
	(in thousands)
Deferred revenue	$	33,824	$	28,047
Accrued computer and networking equipment	1,673		1,467
Holdback payable	3,771		4,013
Other current liabilities	1,271		867
Total other current liabilities	$	40,539	$	34,394

Accumulated Other Comprehensive Loss

The following table summarizes the changes in accumulated other comprehensive loss, which is reported as a component of stockholders’ equity:


	Foreign Currency Translation		Unrealized gain/(loss) for available-for-sale investments		Accumulated Other Comprehensive Income (Loss)
	(in thousands)
Balance at December 31, 2020	$	(36)	$	42	$	6
Other comprehensive loss	(286)		(2,347)		(2,633)
Balance at December 31, 2021	(322)		(2,305)		(2,627)
Other comprehensive loss	(255)		(6,404)		(6,659)
Balance at December 31, 2022	$	(577)	$	(8,709)	$	(9,286)
Other comprehensive income	565		7,713		8,278
Balance at December 31, 2023	$	(12)	$	(996)	$	(1,008)

There were no material reclassifications out of accumulated other comprehensive loss for the years ended December 31, 2023 and 2022. Additionally, there was no material tax impact on the amounts presented.