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Leases
 12 Months Ended
Dec. 31, 2023
Leases [Abstract]  
Leases Leases
The Company has operating leases for corporate offices and data centers (“colocation” leases), and finance leases for networking equipment. The Company’s operating leases have remaining lease terms ranging from less than 1 year to 7 years, some of which include options to extend the leases. The Company’s finance leases have remaining lease terms up to 1 year. The Company also subleases a portion of its corporate office spaces. The Company’s subleases have remaining lease terms ranging from 1 year to 7 years. Sublease income was $1.2 million, $0.9 million, and $1.0 million for the years ended December 31, 2023, 2022 and 2021, respectively.
The components of lease cost were as follows:
As of December 31,
202320222021
(in thousands)
Operating lease cost:
Operating lease cost$26,996 $30,976 $26,716 
Variable lease cost15,112 11,736 6,820 
Total operating lease cost$42,108 $42,712 $33,536 
Finance lease cost:
Amortization of assets under finance lease$14,391 $14,539 $6,834 
Interest1,328 2,381 1,754 
Total finance lease cost$15,719 $16,920 $8,588 
The short-term lease costs were not material for the years ended December 31, 2023, 2022 and 2021. During the years ended December 31, 2023 and 2022, the Company recognized impairment on its operating lease right-of-use assets of $0.7 million and $2.1 million, respectively. The Company did not recognize any material impairment on its operating lease right-of-use assets for the year ended December 31, 2021.
As of December 31,
202320222021
(in thousands)
Weighted Average Remaining Lease term (in years):
Operating leases3.484.094.41
Finance leases1.001.742.23
Weighted Average Discount Rate:
Operating leases6.03 %5.36 %5.20 %
Finance leases4.67 %4.73 %4.86 %
Future minimum lease payments under non-cancellable leases as of December 31, 2023 were as follows:
Operating LeasesFinance Leases
(in thousands)
Year ending December 31,
2024$28,160 $16,064 
202520,868 1,617 
202618,896 — 
202710,502 — 
20282,446 — 
Thereafter1,838 — 
Total future minimum lease payments$82,710 $17,681 
Less: imputed interest(7,905)(395)
Total liability$74,805 $17,286 
As of December 31, 2023, the Company has undiscounted commitments of $2.3 million for operating leases that have not yet commenced, and therefore are not included in the right-of-use asset or operating lease liability. These operating leases will commence in 2024 with lease terms of 3 years.
Leases Leases
The Company has operating leases for corporate offices and data centers (“colocation” leases), and finance leases for networking equipment. The Company’s operating leases have remaining lease terms ranging from less than 1 year to 7 years, some of which include options to extend the leases. The Company’s finance leases have remaining lease terms up to 1 year. The Company also subleases a portion of its corporate office spaces. The Company’s subleases have remaining lease terms ranging from 1 year to 7 years. Sublease income was $1.2 million, $0.9 million, and $1.0 million for the years ended December 31, 2023, 2022 and 2021, respectively.
The components of lease cost were as follows:
As of December 31,
202320222021
(in thousands)
Operating lease cost:
Operating lease cost$26,996 $30,976 $26,716 
Variable lease cost15,112 11,736 6,820 
Total operating lease cost$42,108 $42,712 $33,536 
Finance lease cost:
Amortization of assets under finance lease$14,391 $14,539 $6,834 
Interest1,328 2,381 1,754 
Total finance lease cost$15,719 $16,920 $8,588 
The short-term lease costs were not material for the years ended December 31, 2023, 2022 and 2021. During the years ended December 31, 2023 and 2022, the Company recognized impairment on its operating lease right-of-use assets of $0.7 million and $2.1 million, respectively. The Company did not recognize any material impairment on its operating lease right-of-use assets for the year ended December 31, 2021.
As of December 31,
202320222021
(in thousands)
Weighted Average Remaining Lease term (in years):
Operating leases3.484.094.41
Finance leases1.001.742.23
Weighted Average Discount Rate:
Operating leases6.03 %5.36 %5.20 %
Finance leases4.67 %4.73 %4.86 %
Future minimum lease payments under non-cancellable leases as of December 31, 2023 were as follows:
Operating LeasesFinance Leases
(in thousands)
Year ending December 31,
2024$28,160 $16,064 
202520,868 1,617 
202618,896 — 
202710,502 — 
20282,446 — 
Thereafter1,838 — 
Total future minimum lease payments$82,710 $17,681 
Less: imputed interest(7,905)(395)
Total liability$74,805 $17,286 
As of December 31, 2023, the Company has undiscounted commitments of $2.3 million for operating leases that have not yet commenced, and therefore are not included in the right-of-use asset or operating lease liability. These operating leases will commence in 2024 with lease terms of 3 years.