Fair Value Measurements (Tables)

9 Months Ended

Sep. 30, 2020

Summary Of Assets And Liabilities That Are Measured At Fair Value On A Recurring And Nonrecurring Basis

The following table presents the Company’s assets and liabilities that are measured at fair value on a recurring and nonrecurring basis and indicates the fair value hierarchy of the valuation (in thousands):


	As of September 30, 2020
	Total		Level 1		Level 2		Level 3
Assets:
Cash equivalents:
Money market funds	$	980,254	$	980,254	$	—	$	—
Restricted cash:
Certificates of deposit		80,912		—		80,912		—

Total	$	1,061,166	$	980,254	$	80,912	$	—


	As of December 31, 2019
	Total		Level 1		Level 2		Level 3
Assets:
Cash equivalents:
Money market funds	$	650,498	$	650,498	$	—	$	—
Restricted cash:
Certificates of deposit		102,904		—		102,904		—
Prepaid expenses and other current assets:
Assets held for sale		980		—		—		980

Total	$	754,382	$	650,498	$	102,904	$	980

Liabilities:
Warrants liability	$	42,628	$	—	$	—	$	42,628

Total	$	42,628	$	—	$	—	$	42,628

Summary Of Warrants Liability

The assumptions used to calculate the warrants liability as of September 29, 2020, the date immediately before the Direct Listing, and December 31, 2019 were as follows:


	September 29, 2020	December 31, 2019
Discounts for lack of marketability	—	20.0% - 28.0%
Fair value of underlying securities	$9.50	$6.81 - $8.04
Expected volatility	66.0%	66.0%
Dividend rate	—	—
Risk-free interest rate	0.1%	1.3%

Disclosure Summary Of Changes In Fair Value Of Warrants Liability

The following table sets forth a summary of the changes in the estimated fair value of the Company’s warrants liability (in thousands):


Balance as of December 31, 2019	$	42,628
Net exercises in the period		(10,810	)
Change in fair value of warrants		(811	)
Reclassification to additional paid-in capital as a result of conversion of preferred stock warrants to common stock warrants		(31,007	)

Balance as of September 30, 2020	$	—

- Definition

Tabular disclosure of financial instruments measured at fair value, including those classified in shareholders' equity measured on a recurring or nonrecurring basis. Disclosures include, but are not limited to, fair value measurements recorded and the reasons for the measurements, level within the fair value hierarchy in which the fair value measurements are categorized and transfers between levels 1 and 2. Nonrecurring fair value measurements are those that are required or permitted in the statement of financial position in particular circumstances.

+ References + Details