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FAIR VALUE
 12 Months Ended
Dec. 31, 2024
Fair Value Disclosures [Abstract]  
FAIR VALUE FAIR VALUE
The Company accounts for certain assets and liabilities at fair value in accordance with the accounting guidance applicable to fair value measurements and disclosures. The carrying values of cash, cash equivalents, accounts receivable, accounts payable, and accrued expenses are deemed to be reasonable estimates of their fair values because of their short-term nature.
The Company applies fair value accounting for all financial assets and liabilities and non-financial assets and liabilities that are recognized or disclosed at fair value in the financial statements on a recurring and non-recurring basis. The Company defines fair value as the price that would be received from selling an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. When determining the fair value measurements for assets and liabilities, which are required to be recorded at fair value, the Company considers the principal or most advantageous market in which the Company would transact and the market-based risk measurements or assumptions that market participants would use in pricing the asset or liability, such as inherent risk, transfer restrictions, and credit risk.
The Company applies the following fair value hierarchy, which prioritizes the inputs used to measure fair value into three levels and bases the categorization within the hierarchy upon the lowest level of input that is available and significant to the fair value measurement:
Level 1—Observable inputs such as quoted prices in active markets for identical investments that the Company has the ability to access.
Level 2—Inputs include:
•Quoted prices for similar assets or liabilities in active markets;
•Quoted prices for identical or similar assets or liabilities in inactive markets;
•Inputs, other than quoted prices in active markets, which are observable either directly or indirectly;
•Inputs that are derived principally from, or corroborated by, observable market data by correlation or other means.
Level 3—Unobservable inputs in which there is little or no market activity for the asset or liability, which require the reporting entity to develop its own estimates and assumptions relating to the pricing of the asset or liability including assumptions regarding risk.
The following table presents amortized cost, gross unrealized gains and losses, and fair value by major security type and balance sheet classification as of December 31, 2024 and December 31, 2023:
As of December 31, 2024
(In thousands)Amortized CostGross Unrealized GainsGross Unrealized LossesFair ValueCash EquivalentsShort-Term InvestmentsLong-Term Investments
Cash$— $— $— $73,351 $73,351 $— $— 
Level 1
Commercial paper$15,659 $2 $(1)$15,661 $— $15,659 $— 
Money market funds712,440 — — 712,440 712,440 — — 
Subtotal$728,099 $2 $(1)$728,101 $712,440 $15,659 $— 
Level 2
Asset-backed securities$16,280 $10 $(1)$16,289 $— $697 $15,583 
Certificates of deposit11,521 — (14)11,507 — 11,521 — 
Corporate debt securities126,031 7 (494)125,543 — 55,013 71,018 
U.S. Treasury securities19,255 2 (61)19,195 — 8,964 10,291 
Subtotal$173,087 $19 $(570)$172,534 $— $76,195 $96,892 
Level 3
Investment in SAFE$— $— $— $1,400 $— $— $1,400 
Subtotal$— $— $— $1,400 $— $— $1,400 
Total$901,186 $21 $(571)$975,386 $785,791 $91,854 $98,292 
As of December 31, 2023
(In thousands)Amortized CostGross Unrealized GainsGross Unrealized LossesFair ValueCash EquivalentsShort-Term InvestmentsLong-Term Investments
Cash$— $— $— $50,373 $50,373 $— $— 
Level 1
Money market funds$697,237 $— $— $697,237 $697,237 $— $— 
Total$697,237 $— $— $747,610 $747,610 $— $— 
As of December 31, 2024 and December 31, 2023, all of the Company’s short-term investments have contractual maturities of one year or less and all of the Company’s long-term investments have contractual maturities between one and seven years. The Company has elected to present accrued interest within Prepaid expenses and other current assets in the Consolidated Balance Sheet, which was $1,487 and $0 as of December 31, 2024 and December 31, 2023, respectively.
Changes in market interest rates, credit risk of borrowers and overall market liquidity, amongst other factors, may cause the short-term and long-term debt investments to fall below their amortized cost basis, resulting in unrealized losses. For those debt securities in an unrealized loss position as of December 31, 2024, the Company does not intend to sell, nor is it more likely than not that it will be required to sell, such securities before recovering the amortized cost basis. No other-than-temporary impairments have been recognized in the financial statements for the periods ended December 31, 2024 and December 31, 2023.
Cash equivalents consist primarily of money market accounts with maturities of three months or less at the date of acquisition and are classified within Level 1.
The Company’s investments in corporate debt securities, U.S. Treasury securities, certificates of deposit, and asset-backed securities, which collectively are investments in held-to-maturity debt securities, are classified within Level 2, as their valuation requires quoted prices for similar instruments in active markets, quoted prices for identical or similar instruments in markets that are not active and/or model-based valuation techniques for which all significant inputs are observable in the market or can be corroborated by observable market data.