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Leases
 9 Months Ended
Sep. 30, 2024
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 6 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 less than 1 year to 6 years. The Company’s sublease income was $0.4 million for each of the three months ended September 30, 2024 and 2023. The Company’s sublease income was $1.1 million and $1.0 million for the nine months ended September 30, 2024 and 2023, respectively.
The components of lease cost were as follows:
Three months ended September 30,Nine months ended September 30,
2024202320242023
(in thousands)
Operating lease costs:
Operating lease cost$6,466 $6,466 $19,904 $20,499 
Variable lease cost4,183 4,024 12,411 11,391 
Total operating lease costs$10,649 $10,490 $32,315 $31,890 
Finance lease costs:
Amortization of assets under finance lease$3,294 $3,544 $10,329 $10,786 
Interest70 297 342 1,103 
Total finance lease costs$3,364 $3,841 $10,671 $11,889 
The short-term lease costs were not material for either of the three and nine months ended September 30, 2024 and 2023.
During the three months ended September 30, 2024 the Company recognized an impairment charge of $0.4 million related to right-of-use assets upon the termination of a sublease. During the nine months ended September 30, 2024, the Company recognized an impairment charge of $1.7 million related to right-of-use assets, of which $1.3 million was related to the Company exiting a certain office facility and is included within the impairment expense line in the Company's condensed consolidated statements of operations. The Company did not recognize any material impairment on its operating lease right-of-use assets for either of the three and nine months ended September 30, 2023.
As of September 30, 2024As of December 31, 2023
Weighted Average Remaining Lease Term (in years):
Operating leases3.013.48
Finance leases0.491.00
Weighted Average Discount Rate:
Operating leases6.32 %6.03 %
Finance leases4.66 %4.67 %
Future minimum lease payments under non-cancellable leases as of September 30, 2024 were as follows:
Operating LeasesFinance Leases
(in thousands)
Remaining 2024$8,516 $3,319 
202524,990 1,618 
202621,806 — 
202712,502 — 
20283,128 — 
Thereafter1,971 — 
Total future minimum lease payments$72,913 $4,937 
Less: imputed interest(6,297)(51)
Total liability$66,616 $4,886 
As of September 30, 2024, the Company has undiscounted commitments of $2.2 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 the fourth quarter of 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 6 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 less than 1 year to 6 years. The Company’s sublease income was $0.4 million for each of the three months ended September 30, 2024 and 2023. The Company’s sublease income was $1.1 million and $1.0 million for the nine months ended September 30, 2024 and 2023, respectively.
The components of lease cost were as follows:
Three months ended September 30,Nine months ended September 30,
2024202320242023
(in thousands)
Operating lease costs:
Operating lease cost$6,466 $6,466 $19,904 $20,499 
Variable lease cost4,183 4,024 12,411 11,391 
Total operating lease costs$10,649 $10,490 $32,315 $31,890 
Finance lease costs:
Amortization of assets under finance lease$3,294 $3,544 $10,329 $10,786 
Interest70 297 342 1,103 
Total finance lease costs$3,364 $3,841 $10,671 $11,889 
The short-term lease costs were not material for either of the three and nine months ended September 30, 2024 and 2023.
During the three months ended September 30, 2024 the Company recognized an impairment charge of $0.4 million related to right-of-use assets upon the termination of a sublease. During the nine months ended September 30, 2024, the Company recognized an impairment charge of $1.7 million related to right-of-use assets, of which $1.3 million was related to the Company exiting a certain office facility and is included within the impairment expense line in the Company's condensed consolidated statements of operations. The Company did not recognize any material impairment on its operating lease right-of-use assets for either of the three and nine months ended September 30, 2023.
As of September 30, 2024As of December 31, 2023
Weighted Average Remaining Lease Term (in years):
Operating leases3.013.48
Finance leases0.491.00
Weighted Average Discount Rate:
Operating leases6.32 %6.03 %
Finance leases4.66 %4.67 %
Future minimum lease payments under non-cancellable leases as of September 30, 2024 were as follows:
Operating LeasesFinance Leases
(in thousands)
Remaining 2024$8,516 $3,319 
202524,990 1,618 
202621,806 — 
202712,502 — 
20283,128 — 
Thereafter1,971 — 
Total future minimum lease payments$72,913 $4,937 
Less: imputed interest(6,297)(51)
Total liability$66,616 $4,886 
As of September 30, 2024, the Company has undiscounted commitments of $2.2 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 the fourth quarter of 2024 with lease terms of 3 years.