Investments

3 Months Ended

Mar. 31, 2022

Investments, Debt and Equity Securities [Abstract]

Debt Securities

The following tables summarize the amortized cost, gross unrealized gains and losses, and fair value of the Company’s available-for-sale debt securities aggregated by investment category (in thousands):


	As of December 31, 2021								Classification as of December 31, 2021
	Cost or Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Total Estimated Fair Value		Cash and Cash Equivalents		Marketable Securities		Other Assets, Noncurrent		Funds Receivable (2)
Certificates of deposit	$	395,351	$	—	$	—	$	395,351	$	31,117	$	364,234	$	—	$	—
Government bonds(1)	850		13		—		863		—		863		—		—
Commercial paper	1,156,963		—		—		1,156,963		163,959		993,004		—		—
Corporate debt securities	917,718		220		(3,147)		914,791		41,439		862,901		10,451		—
Mortgage-backed and asset-backed securities	34,019		338		(321)		34,036		—		34,036		—		—
Total	$	2,504,901	$	571	$	(3,468)	$	2,502,004	$	236,515	$	2,255,038	$	10,451	$	—

(1)Includes U.S. government and government agency debt securities

(2)Funds receivable and amounts held on behalf of customers


	As of March 31, 2022								Classification as of March 31, 2022
	Cost or Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Total Estimated Fair Value		Cash and Cash Equivalents		Marketable Securities		Other Assets, Noncurrent		Funds Receivable (2)
Certificates of deposit	$	533,669	$	—	$	—	$	533,669	$	60,919	$	472,750	$	—	$	—
Government bonds(1)	464,399		44		(12)		464,431		—		350,450		—		113,981
Commercial paper	1,104,688		—		(16)		1,104,672		265,857		838,815		—		—
Corporate debt securities	794,433		36		(6,073)		788,396		35,914		741,971		10,511		—
Mortgage-backed and asset-backed securities	33,046		10		(1,381)		31,675		—		31,675		—		—
Total	$	2,930,235	$	90	$	(7,482)	$	2,922,843	$	362,690	$	2,435,661	$	10,511	$	113,981

(1)Includes U.S. government and government agency debt securities

(2)Funds receivable and amounts held on behalf of customers

As of December 31, 2021 and March 31, 2022, the Company does not have any available-for-sale debt securities for which the Company has recorded credit related losses.

Before reclassifications of gains and losses from accumulated other comprehensive loss on the condensed consolidated balance sheets to other expense, net in the condensed consolidated statements of operations, unrealized gains and losses, net of tax, for the three months ended March 31, 2021 and 2022, were not material. Realized gains and losses reclassified from accumulated other comprehensive loss to other expense, net were not material for the three months ended March 31, 2021 and 2022.

Debt securities in an unrealized loss position had an estimated fair value of $801.5 million and unrealized losses of $3.5 million as of December 31, 2021, and an estimated fair value of $772.7 million and unrealized losses of $7.5 million as of March 31, 2022. An immaterial

amount of securities were in a continuous unrealized loss position for more than twelve months as of December 31, 2021, and $32.1 million of securities were in a continuous unrealized loss position for more than twelve months as of March 31, 2022.

The following table summarizes the contractual maturities of the Company’s available-for-sale debt securities (in thousands):


	As of March 31, 2022
		Amortized Cost		Estimated Fair Value
Due within one year		$	2,845,872	$	2,843,140
Due in one year to five years		62,033		58,720
Due within five to ten years		19,828		18,550
Due beyond ten years		2,502		2,433
Total		$	2,930,235	$	2,922,843

Equity Investments

Gains and Losses on Marketable Equity Investments

During the three months ended March 31, 2021, the marketable equity investments were sold, and the Company realized a net loss of $14.3 million. The realized net loss was recorded in other expense, net on the condensed consolidated statements of operations.

Equity Investments Without Readily Determinable Fair Values

The Company holds investments in privately-held companies in the form of equity securities without readily determinable fair values and in which the Company does not have a controlling interest or significant influence. These investments had a net carrying value of $75.0 million as of both December 31, 2021 and March 31, 2022, and are classified within other assets, noncurrent on the condensed consolidated balance sheets. These investments were initially recorded using the measurement alternative at cost and are subsequently adjusted to fair value for impairments and price changes from observable transactions in the same or similar security from the same issuer.

The following table summarizes the total carrying value of equity investments without readily determinable fair values (in thousands):


	Three Months Ended March 31,
		2021		2022
Carrying value, beginning of period		$	78,074	$	74,993


Downward adjustments for observable price changes and impairments		—		—

Carrying value, end of period		$	78,074	$	74,993

As of December 31, 2021 and March 31, 2022, there were no upward adjustments for price changes to the Company’s equity investments without readily determinable fair values. The Company did not record any realized gains or losses for the Company’s equity investments without readily determinable fair value during the three months ended March 31, 2021 and 2022. The Company recorded no impairment charges for both the three months ended March 31, 2021 and 2022.

The following table summarizes the cumulative impairment charges of equity investments without readily determinable fair values (in thousands):


	As of
	December 31, 2021		March 31, 2022
Cumulative downward adjustments for observable price changes and impairment	$	56,217	$	56,217

Investments Accounted for Under the Equity Method

As of December 31, 2021 and March 31, 2022, the carrying values of the Company’s equity method investments were $17.4 million and $16.2 million, respectively. For the three months ended March 31, 2021 and 2022, the Company recorded unrealized gains (losses) of $0.4 million and $(1.3) million, respectively, within other expense, net in the condensed consolidated statements of operations, representing its proportionate share of net income or loss based on the investee’s financial results. The Company recorded no impairment charges related to the carrying value of equity method investments for the three months ended March 31, 2021 and 2022.