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Investments and fair value measurements | 6 Months Ended
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Jun. 30, 2024
Fair Value Disclosures [Abstract] |
Investments and fair value measurements | 4. Investments and fair value measurements The Company’s assets and liabilities that are measured at fair value on a recurring or nonrecurring basis within the fair value hierarchy are as follows (in thousands):
As of June 30, 2024 |  | Level 1 |  | Level 2 |  | Level 3
Current assets: |  |  |  |  |  |
Cash equivalents: |  |  |  |  |  |
Money market funds |  | $ | 234,681 |  |  | $ | — |  |  | $ | — |
Marketable securities: |  |  |  |  |  |
U.S. government securities |  | $ | — |  |  | $ | 148,559 |  |  | $ | — |
Non-current assets: |  |  |  |  |  |
Strategic investments |  | $ | — |  |  | $ | — |  |  | $ | — |
Non-current liabilities: |  |  |  |  |  |
Cash settled stock appreciation rights |  | $ | — |  |  | $ | — |  |  | $ | 16 |
As of December 31, 2023 |  | Level 1 |  | Level 2 |  | Level 3
Current assets: |  |  |  |  |  |
Cash equivalents: |  |  |  |  |  |
Money market funds |  | $ | 266,692 |  |  | $ | — |  |  | $ | — |
Marketable securities: |  |  |  |  |  |
U.S. government securities |  | $ | — |  |  | $ | 171,372 |  |  | $ | — |
Non-current assets: |  |  |  |  |  |
Strategic investments |  | $ | — |  |  | $ | — |  |  | $ | 10,311 |
Non-current liabilities: |  |  |  |  |  |
Cash settled stock appreciation rights |  | $ | — |  |  | $ | — |  |  | $ | 48 |
The Company’s money market funds are classified within Level 1 of the fair value hierarchy because they are valued using quoted prices in active markets. The Company’s investments in U.S. government securities are classified within Level 2 of the fair value hierarchy because they have been valued using inputs other than quoted prices in active markets that are directly or indirectly observable. The Company’s strategic investment is classified within Level 3 of the fair value hierarchy because it has been valued using significant unobservable inputs for which the Company has been required to develop its own assumptions. A summary of the changes in the fair value of Level 3 financial instruments, of which vesting and remeasurement of stock appreciation rights (SARs) and impairment of strategic investments are recognized in the consolidated statements of operations, is as follows (in thousands):
| Stock Appreciation Rights |  | Strategic Investments
Balance— March 31, 2024 | $ | 22 |  |  | $ | 10,311 |
Vesting and remeasurement of SARs | (6) |  |  | — |
Unrealized loss on strategic investments | — |  |  | (10,311) |
Balance— June 30, 2024 | $ | 16 |  |  | $ | — |
Balance— March 31, 2023 | $ | 264 |  |  | $ | 12,104 |
Vesting and remeasurement of SARs | 19 |  |  | — |
Exercises of SARs | (253) |  |  | — |
Unrealized loss on strategic investments | — |  |  | (1,793) |
Balance— June 30, 2023 | $ | 30 |  |  | $ | 10,311 |
Balance— December 31, 2023 | $ | 48 |  |  | $ | 10,311 |
Vesting and remeasurement of SARs | (25) |  |  | — |
Exercises of SARs | (7) |  |  | — |
Unrealized loss on strategic investments | — |  |  | (10,311) |
Balance— June 30, 2024 | $ | 16 |  |  | $ | — |
Balance— December 31, 2022 | $ | 462 |  |  | $ | 12,104 |
Vesting and remeasurement of SARs | (179) |  |  | — |
Exercises of SARs | (253) |  |  | — |
Unrealized loss on strategic investments | — |  |  | (1,793) |
Balance— June 30, 2023 | $ | 30 |  |  | $ | 10,311 |
The Company evaluates its strategic investments for impairment at each reporting period. This evaluation considers several potential qualitative and quantitative impairment indicators including, but not limited to, the investee's financial metrics, whether there were any significant adverse changes in the economic environment or general market conditions of the geographies and industries in which the investee operates, and any other publicly available information that may affect the value of the investment. The Company determined that qualitative indicators of impairment existed as of June 30, 2024, and therefore performed an assessment of the fair value of its investment. The fair value analysis involved the use of significant observable and unobservable assumptions, including the investee’s forecasted financial condition in relation to its outstanding obligations, ability to secure additional funds through various alternative scenarios, and a dual market and income approach involving revenue multiples of publicly traded peer companies and financial forecasts provided by the investee. Based on the assessment performed as of June 30, 2024, the Company recognized an impairment loss of $10.3 million during the three and six months ended June 30, 2024, such that the carrying value of its strategic investments was reduced to zero. The cost basis of the strategic investments is $15.0 million. In addition to the impairment charge recognized during the three and six months ended June 30, 2024, the Company previously recognized impairment charges of $1.8 million during the second quarter of 2023 and $2.9 million during the third quarter of 2022.

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- Definition The entire disclosure for the fair value of financial instruments (as defined), including financial assets and financial liabilities (collectively, as defined), and the measurements of those instruments as well as disclosures related to the fair value of non-financial assets and liabilities. Such disclosures about the financial instruments, assets, and liabilities would include: (1) the fair value of the required items together with their carrying amounts (as appropriate); (2) for items for which it is not practicable to estimate fair value, disclosure would include: (a) information pertinent to estimating fair value (including, carrying amount, effective interest rate, and maturity, and (b) the reasons why it is not practicable to estimate fair value; (3) significant concentrations of credit risk including: (a) information about the activity, region, or economic characteristics identifying a concentration, (b) the maximum amount of loss the entity is exposed to based on the gross fair value of the related item, (c) policy for requiring collateral or other security and information as to accessing such collateral or security, and (d) the nature and brief description of such collateral or security; (4) quantitative information about market risks and how such risks are managed; (5) for items measured on both a recurring and nonrecurring basis information regarding the inputs used to develop the fair value measurement; and (6) for items presented in the financial statement for which fair value measurement is elected: (a) information necessary to understand the reasons for the election, (b) discussion of the effect of fair value changes on earnings, (c) a description of [similar groups] items for which the election is made and the relation thereof to the balance sheet, the aggregate carrying value of items included in the balance sheet that are not eligible for the election; (7) all other required (as defined) and desired information. + References Reference 1: http://www.xbrl.org/2003/role/exampleRef -Topic 820 -SubTopic 10 -Name Accounting Standards Codification -Section 55 -Paragraph 107 -Publisher FASB -URI https://asc.fasb.org/1943274/2147482078/820-10-55-107 Reference 2: http://www.xbrl.org/2003/role/exampleRef -Topic 820 -SubTopic 10 -Name Accounting Standards Codification -Section 55 -Paragraph 100 -Publisher FASB -URI https://asc.fasb.org/1943274/2147482078/820-10-55-100 Reference 3: http://www.xbrl.org/2003/role/disclosureRef -Topic 820 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 2 -Subparagraph (c)(3) -Publisher FASB -URI https://asc.fasb.org/1943274/2147482106/820-10-50-2 Reference 4: http://www.xbrl.org/2003/role/disclosureRef -Topic 820 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 6A -Subparagraph (a) -Publisher FASB -URI https://asc.fasb.org/1943274/2147482106/820-10-50-6A Reference 5: http://www.xbrl.org/2003/role/disclosureRef -Topic 820 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 2E -Publisher FASB -URI https://asc.fasb.org/1943274/2147482106/820-10-50-2E Reference 6: http://www.xbrl.org/2003/role/disclosureRef -Topic 820 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 6A -Subparagraph (h) -Publisher FASB -URI https://asc.fasb.org/1943274/2147482106/820-10-50-6A Reference 7: http://www.xbrl.org/2003/role/disclosureRef -Topic 820 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 6A -Subparagraph (f) -Publisher FASB -URI https://asc.fasb.org/1943274/2147482106/820-10-50-6A Reference 8: http://www.xbrl.org/2003/role/disclosureRef -Topic 820 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 6A -Subparagraph (e) -Publisher FASB -URI https://asc.fasb.org/1943274/2147482106/820-10-50-6A Reference 9: http://www.xbrl.org/2003/role/disclosureRef -Topic 820 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 6A -Subparagraph (d) -Publisher FASB -URI https://asc.fasb.org/1943274/2147482106/820-10-50-6A Reference 10: http://www.xbrl.org/2003/role/disclosureRef -Topic 820 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 2 -Subparagraph (h) -Publisher FASB -URI https://asc.fasb.org/1943274/2147482106/820-10-50-2 Reference 11: http://www.xbrl.org/2003/role/disclosureRef -Topic 820 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 2 -Subparagraph (g) -Publisher FASB -URI https://asc.fasb.org/1943274/2147482106/820-10-50-2 Reference 12: http://www.xbrl.org/2003/role/disclosureRef -Topic 940 -SubTopic 820 -Name Accounting Standards Codification -Section 50 -Paragraph 1 -Subparagraph (a) -Publisher FASB -URI https://asc.fasb.org/1943274/2147478119/940-820-50-1 + Details
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