XML 24 R13.htm IDEA: XBRL DOCUMENT v3.24.3
Balance Sheet Information
 9 Months Ended
Sep. 30, 2024
Balance Sheet Related Disclosures [Abstract]  
Balance Sheet Information Balance Sheet Information
Property and Equipment, Net
Property and equipment, net consisted of the following:
As of September 30, 2024As of December 31, 2023
(in thousands)
Computer and networking equipment$233,412 $224,313 
Leasehold improvements8,139 8,605 
Furniture and fixtures2,153 2,142 
Office equipment1,218 1,228 
Internal-use software116,073 97,623 
Property and equipment, gross$360,995 $333,911 
Accumulated depreciation and amortization(180,707)(157,303)
Property and equipment, net$180,288 $176,608 
During the three months ended September 30, 2024, the Company recognized a impairment charge of $0.6 million related to equipment deemed no longer usable in its planned future network. During the nine months ended September 30, 2024, the Company recognized an impairment charge of $2.4 million related to equipment and an internal-use software project that the Company does not plan to continue with and therefore abandoned.
During the three months ended September 30, 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. There were no impairments during the nine months ended September 30, 2023.
Impairment charges are included within the impairment expense line in the Company's condensed consolidated statements of operations.
Depreciation on property and equipment for the three months ended September 30, 2024 and 2023 was approximately $13.7 million and $13.1 million, respectively. Included in these amounts was amortization expense for capitalized internal-use software costs of approximately $4.5 million and $3.8 million for the three months ended September 30, 2024 and 2023, respectively.
Depreciation on property and equipment for the nine months ended September 30, 2024 and 2023 was approximately $40.3 million and $38.0 million, respectively. Included in these amounts was amortization expense for capitalized internal-use software costs of approximately $12.3 million and $9.9 million for the nine months ended September 30, 2024 and 2023, respectively.
As of September 30, 2024 and December 31, 2023, the unamortized balance of capitalized internal-use software costs on the Company’s condensed consolidated balance sheets was approximately $76.3 million and $62.6 million, respectively.
The Company leases certain networking equipment from various third parties through equipment finance leases. The Company’s networking equipment assets as of September 30, 2024 and December 31, 2023, included a total of $73.2 million and $74.7 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 $49.1 million and $40.1 million as of September 30, 2024 and December 31, 2023, respectively.
Other Assets
Other assets consisted of the following:
As of September 30, 2024As of December 31, 2023
(in thousands)
Deferred contract costs, net$53,842 $61,981 
Advance payment for purchase of property and equipment13,456 24,509 
Other assets5,278 4,289 
Total other assets$72,576 $90,779 
Accrued Expenses
Accrued expenses consisted of the following:
As of September 30, 2024As of December 31, 2023
(in thousands)
Accrued compensation and related benefits$14,572 $14,918 
Accrued bonus4,364 24,614 
Accrued colocation and bandwidth costs14,684 14,362 
Other tax liabilities
4,003 4,344 
Other accrued expenses
3,231 3,580 
Total accrued expenses$40,854 $61,818 
Other Current Liabilities
Other current liabilities consisted of the following:
As of September 30, 2024As of December 31, 2023
(in thousands)
Deferred revenue$29,716 $33,824 
Accrued computer and networking equipment1,741 1,673 
Holdback payable— 3,771 
Other current liabilities1,804 1,271 
Total other current liabilities$33,261 $40,539 
Accumulated Other Comprehensive Loss
For the three and nine months ended September 30, 2024 and 2023, components of accumulated other comprehensive loss, net of taxes, were as follows (in thousands):

Foreign Currency Translation Available-for-sale investmentsAccumulated Other Comprehensive Income (Loss)
Balance, June 30, 2024$(12)$(270)$(282)
Other comprehensive income — 260 260 
Balance, September 30, 2024$(12)$(10)$(22)
Foreign Currency Translation Available-for-sale investmentsAccumulated Other Comprehensive Income (Loss)
Balance, June 30, 2023$(19)$(3,133)$(3,152)
Other comprehensive income (loss)(8)1,226 1,218 
Balance, September 30, 2023$(27)$(1,907)$(1,934)
Foreign Currency Translation Available-for-sale investmentsAccumulated Other Comprehensive Income (Loss)
Balance, December 31, 2023$(12)$(996)$(1,008)
Other comprehensive income— 986 986 
Balance, September 30, 2024$(12)$(10)$(22)
Foreign Currency Translation Available-for-sale investmentsAccumulated Other Comprehensive Income (Loss)
Balance, December 31, 2022$(577)$(8,709)$(9,286)
Other comprehensive income550 6,802 7,352 
Balance, September 30, 2023$(27)$(1,907)$(1,934)
There was no material tax impact on the amounts presented.