0000950170-22-002008 | 10-K | XBRL Viewer

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Consolidated Balance Sheets - USD ($) $ in Thousands	Dec. 31, 2021	Dec. 31, 2020
Current assets:
Cash and cash equivalents	$ 1,375,932	$ 36,789
Marketable securities	640,085	251,756
Accounts receivable, net of allowance	137,491	105,971
Deferred contract acquisition costs	27,646	14,403
Prepaid expenses and other current assets	44,919	18,775
Total current assets	2,226,073	427,694
Property and equipment, net	14,428	6,718
Operating lease right-of-use assets	37,281	48,273
Deferred contract acquisition costs, non-current	51,178	33,196
Other assets, non-current	13,769	10,238
Total assets	2,342,729	526,119
Current liabilities:
Accounts payable	7,591	1,646
Accrued expenses and other liabilities	98,974	33,711
Operating lease liabilities	9,236	10,492
Deferred revenue	220,920	142,901
Liability for early exercise of unvested stock options	11,467	5,049
Total current liabilities	348,188	193,799
Operating lease liabilities, non-current	31,645	40,440
Deferred revenue, non-current	25,557	16,292
Convertible senior notes, net	1,080,701	0
Other liabilities, non-current	6,357	7,203
Total liabilities	1,492,448	257,734
Commitments and contingencies (Note 7)
Redeemable convertible preferred stock, par value $0.00001 per share; 0 and 115,277,850 shares authorized as of December 30, 2021 and December 31, 2020, respectively; 0 and 115,277,850 shares issued and outstanding as of December 30, 2021 and December 31, 2020, respectively; aggregate liquidation preference of $0 and $575,085 as of December 30, 2021 and December 31, 2020, respectively	0	574,634
Stockholders' equity (deficit):
Preferred stock, par value of $0.00001 per share; 10,000,000 and 0 shares authorized as of December 30, 2021 and December 31, 2020, respectively; 0 shares issued and outstanding as of December 30, 2021 and December 31, 2020	0	0
Additional paid-in capital	1,599,962	99,575
Accumulated other comprehensive income (loss)	(830)	228
Accumulated deficit	(748,854)	(406,053)
Total stockholders’ equity (deficit)	850,281	(306,249)
Total liabilities, redeemable convertible preferred stock, and stockholders’ equity (deficit)	2,342,729	526,119
Common Stock [Member]
Stockholders' equity (deficit):
Common Stock, Value	0	1
Class A Common Stock [Member]
Stockholders' equity (deficit):
Common Stock, Value	1	0
Class B Common Stock
Stockholders' equity (deficit):
Common Stock, Value	2	0
Convertible Founder Stock [Member]
Stockholders' equity (deficit):
Convertible Founder Stock, Value	$ 0	$ 0

Consolidated Balance Sheets (Parenthetical) - USD ($)	Dec. 31, 2021	Dec. 31, 2020
Redeemable Convertible Preferred Stock, Par Value	$ 0.00001	$ 0.00001
Redeemable Convertible Preferred Stock, Shares Authorized	0	115,277,850
Redeemable Convertible Preferred Stock, Shares Issued	0	115,277,850
Redeemable Convertible Preferred Stock, Shares Outstanding	0	115,277,850
Redeemable Convertible Preferred Stock, Liquidation Preference	$ 0	$ 575,085,000
Preferred Stock, Par Value	$ 0.00001	$ 0.00001
Preferred Stock, Shares Authorized	10,000,000	0
Preferred Stock, Shares Issued	0	0
Preferred Stock, Shares Outstanding	0	0
Common Stock, Par Value	$ 0.00001	$ 0.00001
Common Stock, Shares Authorized	0	323,000,000
Common Stock, Shares, Issued	0	109,447,843
Common Stock, Shares, Outstanding	0	109,447,843
Convertible Founder Stock [Member]
Convertible Founder Stock, Par Value	$ 0.00001	$ 0.00001
Convertible Founder Stock, Shares Authorized	0	635,818
Convertible Founder Stock, Shares Issued	0	635,818
Convertible Founder Stock, Shares Outstanding	0	635,818
Class A Common Stock [Member]
Common Stock, Par Value	$ 0.00001	$ 0.00001
Common Stock, Shares Authorized	1,000,000,000	0
Common Stock, Shares, Issued	116,728,968	0
Common Stock, Shares, Outstanding	116,728,968	0
Class B Common Stock
Common Stock, Par Value	$ 0.00001	$ 0.00001
Common Stock, Shares Authorized	500,000,000	0
Common Stock, Shares, Issued	155,072,914	0
Common Stock, Shares, Outstanding	155,072,914	0

Consolidated Statements of Operations - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Revenue:
Total revenue	$ 387,864	$ 236,577	$ 149,805
Cost of revenue:
Total cost of revenue	137,292	75,476	49,369
Gross profit	250,572	161,101	100,436
Operating expenses:
Research and development	161,925	105,399	58,090
Sales and marketing	319,331	166,361	115,792
General and administrative	108,936	122,516	24,662
Total operating expenses	590,192	394,276	198,544
Operating loss	(339,620)	(233,175)	(98,108)
Interest income	2,020	4,113	2,494
Other (expense) income, net	(2,027)	(973)	567
Loss before income taxes	(339,627)	(230,035)	(95,047)
Provision for (benefit from) income taxes	3,174	(207)	(5)
Net loss	$ (342,801)	$ (229,828)	$ (95,042)
Net loss per share , basic and diluted	$ (1.82)	$ (2.21)	$ (0.99)
Weighted-average shares used to compute net loss per share , basic and diluted	188,627,720	104,218,082	96,067,380
Subscription [Member]
Revenue:
Total revenue	$ 347,099	$ 208,633	$ 130,206
Cost of revenue:
Total cost of revenue	94,860	49,283	28,395
Services [Member]
Revenue:
Total revenue	40,765	27,944	19,599
Cost of revenue:
Total cost of revenue	$ 42,432	$ 26,193	$ 20,974

Consolidated Statements of Comprehensive Loss - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Statement of Comprehensive Income [Abstract]
Net loss	$ (342,801)	$ (229,828)	$ (95,042)
Other comprehensive (loss) income, net of tax:
Unrealized (loss) gain on marketable securities	(1,058)	31	271
Other comprehensive (loss) income	(1,058)	31	271
Total comprehensive loss	$ (343,859)	$ (229,797)	$ (94,771)

- Definition

The portion of profit or loss for the period, net of income taxes, which is attributable to the parent.

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- Definition

Amount after tax and reclassification adjustments of other comprehensive income (loss).

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Condensed Consolidated Statements of Redeemable Convertible Preferred Stock and Stockholders' Equity (Deficit) (Unaudited) - USD ($) $ in Thousands	Total	Redeemable Convertible Preferred Stock [Member]	Convertible Founder Stock [Member]	Common Class A [Member]	Common Class B [Member]	Common Stock [Member]	Common Stock Class A and Class B [Member]	Additional Paid-In Capital [Member]	Accumulated Other Comprehensive Income (Loss) [Member]	Accumulated Deficit [Member]
Balance at Dec. 31, 2018		$ 205,784
Balance (shares) at Dec. 31, 2018		90,624,091
Balance at Dec. 31, 2018	$ (63,074)					$ 1		$ 18,182	$ (74)	$ (81,183)
Balance (shares) at Dec. 31, 2018			7,920,000			89,575,902
Issuance of common stock upon early exercise of unvested options, net of repurchases						3,759,821
Vesting of early exercised options	3,927							3,927
Issuance of common stock upon exercise of vested options	$ 4,467							4,467
Issuance of common stock upon exercise of vested options (shares)	9,228,205					5,300,756
Stock-based compensation	$ 18,686							18,686
Issuance of Class A common stock pursuant to charitable donation	0
Conversion of convertible founder stock for Series E redeemable convertible preferred stock	0
Other comprehensive income (loss)	271								271
Net loss	(95,042)		$ (7,835)							(95,042)
Balance at Dec. 31, 2019	(130,765)					$ 1		45,262	197	(176,225)
Balance (shares) at Dec. 31, 2019		90,624,091
Balance at Dec. 31, 2019		$ 205,784
Balance (shares) at Dec. 31, 2019			7,920,000			98,636,479
Issuance of common stock upon early exercise of unvested options, net of repurchases						1,400,335
Vesting of early exercised options	7,030							7,030
Issuance of common stock upon exercise of vested options	$ 12,430							12,430
Issuance of common stock upon exercise of vested options (shares)	10,865,786					9,411,029
Stock-based compensation	$ 143,888							143,888
redeemable convertible preferred stock, Par Value		$ 259,815
Issuance of Series E redeemable convertible preferred stock, net of issuance costs (shares)		17,369,577
Issuance of Class A common stock pursuant to charitable donation	0
Conversion of convertible founder stock for Series E redeemable convertible preferred stock (shares)		7,284,182	(7,284,182)
Conversion of convertible founder stock for Series E redeemable convertible preferred stock	(109,035)	$ 109,035						(109,035)
Other comprehensive income (loss)	31								31
Net loss	(229,828)		$ (10,268)							(229,828)
Balance at Dec. 31, 2020	$ (306,249)					$ 1		99,575	228	(406,053)
Balance (shares) at Dec. 31, 2020	115,277,850	115,277,850
Balance at Dec. 31, 2020	$ 574,634	$ 574,634
Balance (shares) at Dec. 31, 2020			635,818			109,447,843
Issuance of common stock upon early exercise of unvested options, net of repurchases						2,447,573	1,104
Vesting of early exercised options	10,235							10,235
Issuance of common stock upon exercise of vested options	$ 51,793						$ 1	51,792
Issuance of common stock upon exercise of vested options (shares)	22,730,337					7,072,147	13,021,053
Vesting of restricted stock (shares)							648,494
Stock-based compensation	$ 158,249							158,249
Reclassification of common stock to Class B common stock upon initial public offering						$ (1)	$ 1
Reclassification of common stock to Class B common stock upon initial public offering, Shares						(118,967,563)	118,967,563
Conversion of redeemable convertible preferred and founder stock to Class B common stock upon initial public offering (shares)		(115,277,850)
Conversion of redeemable convertible preferred and founder stock to Class B common stock upon initial public offering	574,634						$ 1	574,633
Conversion of redeemable convertible preferred and founder stock to Class B common stock upon initial public offering		$ (574,634)			$ 574,600
Conversion of redeemable convertible preferred and founder stock to Class B common stock upon initial public offering (shares)			(635,818)				115,913,668
Issuance of Class A common stock upon initial public offering, net of underwriting discounts and commissions and other issuance costs	783,158							783,158
Issuance of Class A common stock upon initial public offering, net of underwriting discounts and commissions and other issuance costs (shares)							23,000,000
Issuance of Class A common stock pursuant to charitable donation	13,290			$ 13,290				13,290
Issuance of Class A common stock pursuant to charitable donation (shares)							250,000
Purchase of Capped Calls	(90,970)							(90,970)
Conversion of convertible founder stock for Series E redeemable convertible preferred stock	0
Other comprehensive income (loss)	(1,058)								(1,058)
Net loss	(342,801)									(342,801)
Balance at Dec. 31, 2021	$ 850,281						$ 3	$ 1,599,962	$ (830)	$ (748,854)
Balance (shares) at Dec. 31, 2021	0
Balance at Dec. 31, 2021	$ 0
Balance (shares) at Dec. 31, 2021							271,801,882

Consolidated Statements of Cash Flows - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
CASH FLOWS FROM OPERATING ACTIVITIES
Net loss	$ (342,801)	$ (229,828)	$ (95,042)
Adjustments to reconcile net loss to cash used in operating activities:
Depreciation and amortization	3,632	1,567	1,202
Net amortization of premiums or discounts on marketable securities	2,270	1,294	(787)
Amortization of debt issuance costs	187	0	0
Amortization of deferred contract acquisition costs	26,697	16,029	8,864
Non-cash operating lease costs	10,990	11,911	0
Common stock charitable donation expense	13,290	0	0
Stock-based compensation, net of amounts capitalized	155,624	143,341	18,617
Deferred income taxes	1,335	(1,335)	(394)
Other	1,828	710	322
Changes in operating assets and liabilities:
Accounts receivable	(32,516)	(41,612)	(27,117)
Deferred contract acquisition costs	(57,924)	(38,129)	(19,671)
Prepaid expenses and other assets	(31,366)	(14,368)	(5,926)
Accounts payable	6,143	(327)	1,511
Accrued expenses and other liabilities	61,132	15,837	8,604
Operating lease liabilities	(10,866)	(11,224)	0
Deferred revenue	87,285	64,077	40,983
Net cash used in operating activities	(105,060)	(82,057)	(68,834)
CASH FLOWS FROM INVESTING ACTIVITIES
Capitalization of internal-use software costs	(5,342)	(3,610)	(975)
Purchases of marketable securities	(663,595)	(329,616)	(65,978)
Sales of marketable securities	0	4,988	33,104
Maturities of marketable securities	271,942	152,419	71,144
Purchases of property and equipment	(3,600)	(1,040)	(1,954)
Other	12	0	300
Net cash (used in) provided by investing activities	(400,583)	(176,859)	35,641
CASH FLOWS FROM FINANCING ACTIVITIES
Proceeds from initial public offering, net of underwriting discounts and commissions	786,600	0	0
Proceeds from issuance of common stock upon exercise of vested options	51,737	12,376	4,467
Proceeds from issuance of common stock upon early exercise of unvested options, net of repurchases	18,972	4,678	8,965
Proceeds from issuance of redeemable convertible preferred stock, net of issuance costs	0	259,815	0
Payments of deferred offering costs	(3,125)	(111)	0
Debt instrument initial conversion price per share	1,081,300	0	0
Payments for purchase of capped calls	(90,970)	0	0
Net cash provided by financing activities	1,844,514	276,758	13,432
Effect of exchange rate changes on cash, cash equivalents, and restricted cash	5	(7)	(85)
Net increase (decrease) in cash, cash equivalents, and restricted cash	1,338,876	17,835	(19,846)
Cash, cash equivalents, and restricted cash at beginning of period	37,806	19,971	39,817
Cash, cash equivalents, and restricted cash at end of period	1,376,682	37,806	19,971
Reconciliation of cash, cash equivalents, and restricted cash within the consolidated balance sheets to the amounts shown above:
Cash and cash equivalents	1,375,932	36,789	18,954
Restricted cash included in other assets, current and non-current	750	1,017	1,017
Total cash, cash equivalents, and restricted cash	1,376,682	37,806	19,971
Cash paid for:
Income taxes	2,168	960	436
Non-cash investing and financing activities:
Stock-based compensation capitalized in internal-use software costs	2,625	547	69
Right-of-use assets obtained in exchange for new operating lease liabilities	813	0	0
Property and equipment included in accounts payable and accrued expenses and other liabilities	0	203	60
Issuance of common stock upon exercise of vested options included in prepaid expenses and other current assets	55	54	0
Vesting of early exercised stock options	10,235	7,030	3,927
Conversion of convertible founder stock for Series E redeemable convertible preferred stock	0	109,035	0
Unpaid deferred offering costs	0	36	0
Convertible senior notes issuance costs included in accrued expenses and other liabilities	$ 786	$ 0	$ 0

Organization and Description of Business

12 Months Ended

Dec. 31, 2021

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Organization and Description of Business

1. Organization and Description of Business

Description of Business

Confluent, Inc. (“Confluent” or the “Company”) created a data infrastructure platform focused on data in motion. Confluent’s platform allows customers to connect their applications, systems, and data layers and can be deployed either as a self-managed software offering, Confluent Platform, or as a fully-managed cloud-native software-as-a-service (“SaaS”) offering, Confluent Cloud. Confluent also offers professional services and education services. The Company was incorporated in the state of Delaware in September 2014 and is headquartered in California with various other global office locations.

Initial Public Offering

In June 2021, the Company completed its initial public offering (“IPO”), in which the Company issued and sold 23,000,000 of its Class A common stock at a public offering price of $36.00 per share, resulting in net proceeds of $786.6 million after deducting underwriting discounts and commissions. Immediately prior to the closing of the IPO, all shares of common stock then outstanding were reclassified as Class B common stock, all 115,277,850 shares of the Company’s outstanding redeemable convertible preferred stock automatically converted into an equal number of shares of Class B common stock, and all 635,818 shares of the Company’s outstanding convertible founder stock automatically converted into an equal number of shares of Class B common stock.

Prior to the IPO, deferred offering costs, which consist of direct incremental legal, accounting, consulting, and other fees relating to the IPO, were capitalized in other assets, non-current on the consolidated balance sheets. Upon the consummation of the IPO, $3.4 million of deferred offering costs, net of reimbursement received from the underwriters, were reclassified into stockholders’ equity as an offset against the IPO proceeds. The Company had $0.1 million of capitalized deferred offering costs as of December 31, 2020.

Basis of Presentation and Summary of Significant Accounting Policies

12 Months Ended

Dec. 31, 2021

Accounting Policies [Abstract]

Basis of Presentation and Summary of Significant Accounting Policies

2. Basis of Presentation and Summary of Significant Accounting Policies

Basis of Presentation

The consolidated financial statements have been prepared in conformity with accounting principles generally accepted in the United States (“GAAP”) and include the accounts of the Company and its wholly owned subsidiaries. All intercompany balances and transactions have been eliminated in consolidation.

Use of Estimates

The preparation of the consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenue and expenses during the reporting period. Such estimates include, but are not limited to, the standalone selling price (“SSP”) for each distinct performance obligation included in customer contracts, deferred contract acquisition costs and their period of benefit, valuation of stock-based awards, the fair value of the Company’s common stock prior to its IPO in June 2021, capitalization and estimated useful life of internal-use software, the incremental borrowing rate used to measure operating lease liabilities, and accounting for income taxes.

The Company bases its estimates on historical and anticipated results, trends, and various other assumptions that it believes are reasonable under the circumstances. Estimates and assumptions about future events and their effects, including the impact of the COVID-19 pandemic, cannot be determined with certainty and therefore require the exercise of judgment. Actual results could differ from those estimates and any such differences may be material to the Company’s consolidated financial statements.

Functional Currency

The reporting currency of the Company is the U.S. dollar. The U.S. dollar is the functional currency for all subsidiaries, and therefore, foreign currency denominated monetary assets and liabilities are remeasured into U.S. dollars at exchange rates at the balance sheet date, and foreign currency denominated non-monetary assets and liabilities are remeasured into U.S. dollars at historical exchange rates. Gains or losses from foreign currency remeasurement and settlements are included in other income (expense), net in the consolidated statements of operations. Net foreign exchange gains and losses were not material for the years ended December 31, 2021, 2020, and 2019.

Cash and Cash Equivalents

The Company considers all highly liquid investments, including money market funds, U.S. treasury securities, and commercial paper with remaining maturities at the date of purchase of three months or less, to be cash equivalents.

Marketable Securities

The Company’s marketable securities consist of corporate notes and bonds, commercial paper, U.S. agency obligations, U.S. treasury securities, and municipal bonds. The Company determines the appropriate classification of its marketable securities at the time of purchase and reevaluates such determination at each balance sheet date. The Company has classified and accounted for its marketable securities as available-for-sale securities. The Company may sell these securities at any time for use in its current operations or for other purposes, even prior to maturity. As a result, the Company classifies its marketable securities within current assets.

Available-for-sale securities are adjusted for amortization of premiums and accretion of discounts to maturity and such amortization and accretion are included in other income (expense), net in the consolidated statements of operations. Changes in fair value considered to be temporary are recorded as unrealized gains or losses in accumulated other comprehensive income (loss) on the consolidated balance sheets.

Realized gains and losses are determined based on the specific identification method and are reported in other income (expense), net in the consolidated statements of operations. The Company periodically evaluates its marketable securities to assess whether those with unrealized loss positions are other-than-temporarily impaired. If the Company determines that the decline in an investment’s fair value is other-than-temporary, the difference is recognized as an impairment loss in the consolidated statements of operations. During the years ended December 31, 2021, 2020, and 2019, the Company did not record any other-than-temporary impairment charges in its consolidated statements of operations.

Restricted Cash

Restricted cash represents cash deposits with financial institutions in support of letters of credit outstanding in favor of certain landlords related to non-cancelable operating lease agreements to leased office spaces. Restricted cash is presented in prepaid expenses and other current assets for leases that expire within one year and in other assets, non-current for leases that expire more than one year from the balance sheet date.

Fair Value of Financial Instruments

Fair value is defined as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in an orderly transaction between market participants on the measurement date. The accounting guidance establishes a three-tiered hierarchy, which prioritizes the inputs used in the valuation methodologies in measuring fair value as follows:

•

Level 1 Inputs: Observable inputs such as unadjusted quoted prices in active markets for identical assets or liabilities at the measurement date.

•

Level 2 Inputs: Observable inputs other than quoted prices included in Level 1, such as quoted prices in less active markets or model-derived valuations that are observable either directly or indirectly.

•

Level 3 Inputs: Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities.

The Company’s financial instruments consist of cash equivalents, marketable securities, accounts receivable, accounts payable, accrued expenses, and convertible senior notes. Cash equivalents are stated at amortized cost, which approximates fair value at the balance sheet dates, due to the short period of time to maturity. Marketable securities are recorded at fair value. Accounts receivable, accounts payable, and accrued expenses are stated at their carrying value, which approximates fair value due to the short time to the expected receipt or payment date. See Note 4 for further details regarding the fair value of the Company’s convertible senior notes.

Accounts Receivable and Allowance for Doubtful Accounts

Accounts receivable on the consolidated balance sheets consists of trade accounts receivable and unbilled receivables, net of an allowance for doubtful accounts. Trade accounts receivable are stated at the invoiced amount and consist of amounts currently due from customers. Unbilled receivables represent revenue recognized in excess of invoiced amounts for the Company’s unconditional right to consideration in exchange for goods or services that the Company has transferred to the customer, such that only the passage of time is required before payment of consideration is due. The unbilled receivables balance was $32.3 million and $17.6 million as of December 31, 2021 and 2020, respectively.

Accounts receivable are reduced by an allowance for doubtful accounts due to collection risk related to these receivables. The Company determines the need for an allowance for doubtful accounts based upon various factors, including past collection experience, age of the receivable balance, and specific circumstances arising with individual customers. Accounts receivable deemed uncollectible are written off against the allowance for doubtful accounts when identified and the Company no longer actively pursues collection of the receivable. The Company’s allowance for doubtful accounts was not material as of December 31, 2021, 2020, and 2019. Additions to and write-offs against the allowance for doubtful accounts were not material for the years ended December 31, 2021, 2020, and 2019.

Concentration of Risks

Financial instruments that potentially subject the Company to concentrations of credit risk are primarily cash and cash equivalents, restricted cash, marketable securities, and accounts receivable. The primary focus of the Company’s investment strategy is to preserve capital and meet liquidity requirements. The Company invests its excess cash in highly rated money market funds and in marketable securities. The Company extends credit to customers in the normal course of business. The Company maintains an allowance for doubtful accounts on customers’ accounts when deemed necessary.

No customer represented 10% or greater of total revenue for the years ended December 31, 2021, 2020, and 2019. No customer represented 10% or greater of gross accounts receivable as of December 31, 2021 and 2020.

Deferred Contract Acquisition Costs

Sales commissions earned by the Company’s sales force and the associated payroll taxes are considered incremental and recoverable costs of obtaining a contract with a customer. Sales commissions for new revenue contracts, including incremental sales to existing customers, are deferred and then amortized over an estimated period of benefit, which the Company has determined to be five years. To determine the period of benefit, the Company has considered its technology development cycle, the cadence of software releases, the nature of its customer contracts, the duration of customer relationships, and the expected renewal period. Sales commissions for renewal contracts (which are not considered commensurate with sales commissions for new revenue contracts and incremental sales to existing customers) are deferred and then amortized over the renewal contract term. Amortization of deferred contract acquisition costs is included in sales and marketing expenses in the consolidated statements of operations. The Company periodically reviews the carrying amount of deferred contract acquisition costs to determine whether events or changes in circumstances have occurred that could impact the period of benefit of these deferred costs. The Company did not recognize any impairment of deferred contract acquisition costs during the years ended December 31, 2021, 2020, and 2019.

Capitalized Software Costs

Software development costs for software to be sold, leased, or otherwise marketed are expensed as incurred until the establishment of technological feasibility, at which time those costs are capitalized until the product is available for general release to customers and amortized over the estimated life of the product. Technological feasibility is established upon the completion of a working prototype that has been certified as having no critical bugs and is a release candidate. Costs to develop software that is marketed externally have not been capitalized as the current software development process is essentially completed concurrently with the establishment of technological feasibility and were not material for the periods presented. As such, all related software development costs are expensed as incurred and included in research and development expenses in the consolidated statements of operations.

Costs related to software acquired, developed, or modified solely to meet the Company’s internal requirements are capitalized. Costs incurred during the preliminary planning and evaluation stage of the project and during the post-implementation operational stage are expensed as incurred. Costs incurred during the application development stage of the project are capitalized within property and equipment, net on the consolidated balance sheets. Amortization is computed using the straight-line method over the estimated useful life of the capitalized software asset, which is generally 3 years. The amortization of internal-use software costs is included in cost of revenue in the consolidated statements of operations. The Company evaluates the useful life of these assets on a periodic basis and tests for impairment whenever events or changes in circumstances occur that could impact the recoverability of these assets. The Company did not recognize any impairment of capitalized internal-use software costs during the years ended December 31, 2021, 2020, and 2019.

Property and Equipment, Net

Property and equipment are stated at cost, net of accumulated depreciation and amortization. Depreciation and amortization are computed using the straight-line method over the estimated useful lives of the assets. The estimated lives of the Company’s assets are as follows:


		Useful Lives
Computers and equipment		3 years
Furniture and fixtures		5 years
Purchased software		3 years
Leasehold improvements		Shorter of the remaining lease term or useful life
Internal-use software		3 years

Upon retirement or sale, the cost of assets disposed of and the related accumulated depreciation and amortization are removed from the consolidated financial statements and any resulting gain or loss is reflected in the consolidated statements of operations. There were no material gains or losses incurred as a result of retirement or sale during the years ended December 31, 2021, 2020, and 2019.

Leases

Effective January 1, 2020, the consolidated financial statements reflect the adoption of ASC 842, Leases, using the modified retrospective method.

Leases arise from contractual obligations that convey the right to control the use of identified property, plant or equipment for a period of time in exchange for consideration. The Company determines if a contract is, or contains, a lease at contract inception. All of the Company’s leases are operating leases and are included in operating lease right-of-use assets, operating lease liabilities, and operating lease liabilities, non-current on the consolidated balance sheets.

The Company accounts for lease components and non-lease components as a single lease component for all leases. The Company has elected an accounting policy to not recognize short-term leases, which have a lease term of twelve months or less, on the consolidated balance sheets.

Operating lease right-of-use assets and operating lease liabilities are recognized at the lease commencement date based on the present value of lease payments over the lease term discounted using the Company’s incremental borrowing rate. Operating lease right-of-use assets also include any lease payments made and exclude lease incentives. As the Company’s leases do not provide an implicit rate, the incremental borrowing rate used is estimated based on what the Company would have to pay on a collateralized basis in the currency in which the arrangement is denominated over a similar term as the lease. Lease payments include fixed payments and variable payments based on an index or rate, if any, and are recognized as lease expense on a straight-line basis over the term of the lease. The lease term includes options to extend or terminate the lease when it is reasonably certain they will be exercised. Variable lease payments not based on a rate or index are expensed as incurred.

Impairment of Long-Lived Assets

The Company evaluates the recoverability of long-lived assets, including property and equipment and operating lease right-of-use assets, for possible impairment whenever events or circumstances indicate that the carrying amount of such assets may not be fully recoverable. Recoverability of these assets is measured by a comparison of the carrying amounts to the future undiscounted cash flows the assets are expected to generate. If such comparison indicates that the carrying amount of long-lived assets is not recoverable, the carrying amount of such assets is reduced to fair value. There were no impairment charges related to long-lived assets during the years ended December 31, 2021, 2020, and 2019.

In addition to the recoverability assessment, the Company periodically reviews the remaining estimated useful lives of its property and equipment. If the estimated useful life assumption for any asset is changed due to new information, the remaining unamortized balance would be depreciated or amortized over the revised estimated useful life on a prospective basis.

Convertible Senior Notes

The Company accounts for its convertible senior notes wholly as debt. Debt issuance costs incurred in connection with the issuance of the Company’s convertible senior notes are reflected in the consolidated balance sheets as a direct deduction from the carrying amount of the outstanding convertible senior notes. These costs are amortized as interest expense using the effective interest rate method over the contractual term of the convertible senior notes and is included within other income (expense), net on the consolidated statement of operations.

Deferred Revenue

Deferred revenue, which is a contract liability, primarily consists of customer billings or payments received in advance of revenue being recognized from the Company’s subscription and services contracts. The Company generally invoices customers annually in advance for its term-based licenses and either annually in advance or monthly in arrears for its SaaS offering. Typical payment terms range from due upon receipt to net 60 days of the invoice date. Deferred revenue that is anticipated to be recognized during the succeeding twelve-month period is recorded as deferred revenue within current liabilities and the remaining portion is recorded as deferred revenue, non-current. The Company records deferred revenue upon the right to invoice or when payments have been received for subscriptions or services not delivered. Deferred revenue does not necessarily represent the total contract value of the related agreements.

Revenue Recognition

The Company generates revenue from the sale of subscriptions and services. Subscription revenue consists of revenue from term-based licenses that include post-contract customer support, maintenance, and upgrades, referred to together as PCS, which the Company refers to as Confluent Platform, and the Company’s SaaS offering, which the Company refers to as Confluent Cloud. Confluent Cloud customers may purchase subscriptions either without a minimum commitment contract on a month-to-month basis, which the Company refers to as pay-as-you-go, or under a usage-based minimum commitment contract of at least one year in duration, in which customers commit to a fixed minimum monetary amount at specified per-usage rates. Revenue from the Company’s pay-as-you-go arrangements was not material during the years ended December 31, 2021, 2020, and 2019. The Company primarily enters into subscription contracts with one-year terms, and subscription contracts are generally non-cancelable and non-refundable, although customers can terminate for breach if the Company materially fails to perform. Services revenue consists of revenue from professional services and education services. The Company generates sales of its subscriptions and services through its sales teams, self-service channel, and partner ecosystem, including the major cloud provider marketplaces.

The consolidated financial statements reflect the Company’s accounting for revenue in accordance with ASC Topic 606, Revenue from Contracts with Customers (“ASC 606”). Under ASC 606, the Company recognizes revenue when its customers obtain control of promised subscriptions or services in an amount that reflects the consideration that the Company expects to receive in exchange for those subscriptions or services. In determining the appropriate amount of revenue to be recognized as the Company fulfills its obligations under each of its agreements, the following steps are performed:

(i) identification of the contract with a customer

The Company generally contracts with customers through order forms, which are governed by master sales agreements, and through cloud provider marketplaces. The Company determines that it has a contract with a customer when the contract is approved, each party’s rights regarding the subscriptions or services to be transferred and the payment terms for the services can be identified, the Company has determined the customer has the ability and intent to pay, and the contract has commercial substance. The Company applies judgment in determining the customer’s ability and intent to pay, which is based on a variety of factors, including the customer’s historical payment experience or, in the case of a new customer, credit, reputation, and financial or other information pertaining to the customer.

When a contract is entered into, the Company evaluates whether the contract is part of a larger arrangement and should be accounted for with other contracts and whether the combined or single contract includes more than one performance obligation.

(ii) identification of the performance obligations in the contract

Performance obligations are identified based on the subscriptions and services that will be transferred to the customer that are both (1) capable of being distinct, whereby the customer can benefit from the subscriptions or services either on their own or together with other resources that are readily available from third parties or from the Company, and (2) are distinct in the context of the contract, whereby the transfer of the subscriptions and services is separately identifiable from other promises in the contract. To the extent a contract includes multiple promised subscriptions or services, the Company applies judgment to determine whether promised subscriptions or services are capable of being distinct and distinct in the context of the contract. If these criteria are not met, or if performance obligations follow the same pattern of recognition, the promised subscriptions or services are accounted for as a combined performance obligation. The Company has concluded that its contracts with customers do not contain warranties that give rise to a separate performance obligation.

(iii) measurement of the transaction price

The transaction price is the total amount of consideration the Company expects to be entitled to in exchange for the subscriptions and services in a contract. The transaction price in a usage-based SaaS contract is typically equal to the minimum commitment in the contract, less any discounts provided. Variable consideration is included in the transaction price if, in the Company’s judgment, it is probable that a significant future reversal of cumulative revenue under the contract will not occur. The Company’s contracts do not contain a significant financing component.

(iv) allocation of the transaction price to the performance obligations;

If a contract contains a single performance obligation, the entire transaction price is allocated to the single performance obligation. For contracts that contain multiple performance obligations, the Company allocates the transaction price using a relative standalone selling price, or SSP allocation based on the SSPs of each performance obligation. Determining the relative SSP for contracts that contain multiple performance obligations is a critical accounting estimate. The Company establishes each SSP based on multiple factors, including prices at which the Company separately sells standalone subscriptions and services. In cases where directly observable standalone sales are not available, such as when license and PCS are not sold on a standalone basis, the Company establishes SSP by using information such as historical selling price of performance obligations in similar transactions, market conditions, and the Company’s pricing practices, which can require significant judgment and are subject to change based on continuous reevaluation. There is typically more than one SSP for individual subscriptions and services due to the stratification of subscription support tiers and services. The Company also considers if there are any additional material rights inherent in a contract, and if so, it allocates revenue to the material right as a performance obligation.

(v) recognition of revenue when the Company satisfies each performance obligation;

The Company recognizes revenue at the time the related performance obligation is satisfied, in an amount that reflects the consideration it expects to be entitled to in exchange for those subscriptions or services. The Company records its revenue net of any withholding, value added or sales tax, as well as any discounts or marketing development funds.

Subscription Revenue

The Company’s subscription revenue includes revenue from Confluent Platform for licenses sold in conjunction with PCS. The license provides the right to use licensed proprietary software features, which represents significant standalone functionality and is therefore deemed a distinct performance obligation. License revenue is recognized at a point in time, upon delivery and transfer of control of the underlying license to the customer, which is typically the effective start date. Revenue from PCS is based on its continuous pattern of transfer to the customer and therefore is recognized ratably over the contract term.

The Company’s subscription revenue also includes revenue from Confluent Cloud for its usage-based minimum commitment and pay-as-you-go offering, which is recognized on a usage basis, as usage represents a direct measurement of the value to the customer of the subscription transferred as of a particular date relative to the total value to be delivered over the term of the contract. For contracts that are not usage-based, revenue from Confluent Cloud is recognized ratably over the non-cancelable contractual term of the arrangement, generally beginning on the date that the service is made available to the customer.

Services Revenue

The Company’s services revenue includes revenue from professional services and education services, which are generally sold on a time-and-materials basis. The Company recognizes the associated revenue as services are delivered.

Cost of Revenue

Cost of Subscription Revenue

Cost of subscription revenue primarily includes personnel-related costs, including salaries, bonuses, benefits, and stock-based compensation, for employees associated with customer support and maintenance, third-party cloud infrastructure costs, amortization of internal-use software, and allocated overhead.

Cost of Services Revenue

Cost of services revenue primarily includes personnel-related costs, including salaries, bonuses, benefits, and stock-based compensation, for employees associated with professional services and education services, costs for third-party contractors, and allocated overhead.

Research and Development Costs

Research and development costs are expensed as incurred and consist primarily of personnel-related costs, including salaries, bonuses, benefits, and stock-based compensation, net of amounts capitalized, third-party cloud infrastructure expenses incurred in developing the Company’s platform, software and subscription services dedicated for use by the Company’s research and development organization, contractor and professional services fees, and allocated overhead.

Advertising Costs

Advertising costs are expensed as incurred or when the advertising first takes place, based on the nature of the advertising, and are recorded in sales and marketing expenses in the consolidated statements of operations. Advertising expense was $26.7 million, $10.9 million, and $8.4 million for the years ended December 31, 2021, 2020, and 2019, respectively.

Stock-Based Compensation

The Company records compensation expense in connection with all stock-based awards, including stock options and restricted stock units (“RSUs”) granted to employees and non-employees and stock purchase rights granted under the Employee Stock Purchase Plan (“ESPP”) to employees, based on the fair value of the awards granted. The Company uses the Black-Scholes option-pricing model to determine the fair value of stock options and ESPP rights on the dates of grant. Calculating the fair value of stock options and ESPP rights using the Black-Scholes model requires certain highly subjective inputs and assumptions including the fair value of the underlying common stock, the expected term of the stock option or ESPP right, and the expected volatility of the price of the Company’s common stock.

For stock-based awards that vest based only on continuous service, stock-based compensation expense is recognized on a straight-line basis over the requisite service period, which is generally the vesting period of four years.

The Company has also granted certain awards that have both a service-based and a performance-based vesting condition. The service-based vesting condition for these awards is generally satisfied by rendering service from the date of grant through the satisfaction of the performance-based vesting condition, as well as a four-year vesting period commencing with the satisfaction of the performance-based vesting condition.

The performance-based vesting condition was satisfied upon the sale of the Company’s common stock in a firm commitment underwritten public offering. For awards with performance-based vesting conditions, stock-based compensation expense is recognized using the accelerated attribution method over the requisite service period when it is probable the performance-based vesting condition will be achieved. A sale of the Company’s common stock in a firm commitment underwritten public offering is not deemed probable until consummated. Accordingly, no expense is recorded related to these awards until the performance-based vesting condition becomes probable of occurring. In connection with its IPO, the Company recorded stock-based compensation expense for these awards with performance-based vesting conditions for the service period rendered from the date of grant through the IPO date. The Company has also granted certain options containing a provision whereby vesting is accelerated upon a change in control; stock-based compensation expense for such options is recognized on a straight-line basis over a vesting period of generally four years, as a change in control is considered to be outside of the Company’s control and is not considered probable until it occurs. Forfeitures are accounted for as they occur.

Income Taxes

Income taxes are accounted for under the asset and liability method. Deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases and net operating loss and tax credit carryforwards. Deferred tax assets and liabilities are measured using enacted tax law in effect for the years in which the temporary differences are expected to be recovered or settled. The effect of a change in tax rates on deferred tax assets and liabilities is recognized in the period that includes the enactment date.

A valuation allowance is recorded for deferred tax assets if it is more likely than not that some portion or all of the deferred tax assets will not be realized. Accordingly, the need to establish such allowances is assessed periodically by considering matters such as future reversals of existing taxable temporary differences, projected future taxable income, tax planning strategies, and results of recent operations.

The Company evaluates and accounts for the benefits of uncertain tax positions using a two-step approach. Recognition, step one, occurs when the Company concludes that a tax position, based solely on its technical merits, is more likely than not to be sustained upon examination. Measurement, step two, determines the largest amount of benefit that is greater than 50% likely to be realized upon ultimate settlement with a taxing authority that has full knowledge of all relevant information. Changes in recognition or measurement are reflected in the period in which the change in judgment occurs.

Net Loss Per Share

The Company computes basic and diluted net loss per share attributable to Class A and Class B common stockholders for the year ended December 31, 2021 and basic and diluted net loss per share attributable to common and convertible founder stockholders for the years ended December 31, 2020 and 2019 using the two-class method required for companies with participating securities. The Company considers all series of its outstanding redeemable convertible preferred stock and unvested common stock to be participating securities as the holders of such securities have non-forfeitable dividend rights in the event that a dividend is paid on common stock. Under the two-class method, net loss is not allocated to redeemable convertible preferred stock and unvested common stock as these securities do not have a contractual obligation to share in the Company’s net losses.

Basic net loss per share is computed by dividing net loss by the weighted-average number of shares outstanding during the period, less unvested common stock that is subject to repurchase. Basic and diluted net loss per share were the same for the years ended December 31, 2021, 2020, and 2019, as the inclusion of all potentially dilutive shares was anti-dilutive due to the net loss reported for each period.

Segment and Geographic Information

The Company operates its business as one operating and reportable segment as the Company’s chief operating decision maker, the Company’s Chief Executive Officer, reviews financial information on a consolidated basis for purposes of allocating resources and evaluating financial performance. As of December 31, 2021 and 2020, substantially all of the Company’s long-lived assets, including property and equipment, net, and operating right-of-use assets were located in the United States. See Note 8 for revenue disaggregated by geographic markets.

Recent Accounting Pronouncements

Recently Adopted Accounting Pronouncements

Convertible Instruments: In August 2020, the Financial Accounting Standards Board (“FASB”) issued ASU No. 2020-06, Debt—Debt with Conversion and Other Options (Subtopic 470-20) and Derivatives and Hedging—Contracts in Entity’s Own Equity (Subtopic 815-40): Accounting for Convertible Instruments and Contracts in an Entity’s Own Equity, which simplifies the accounting for certain financial instruments with characteristics of liabilities and equity. ASU 2020-06 reduces the number of accounting models for convertible debt instruments and convertible preferred stock, and enhances information transparency by making targeted improvements to the disclosures for convertible instruments and earnings per share guidance. The Company adopted this guidance as of January 1, 2021. The adoption did not have a material impact on its consolidated financial statements as the Company did not have any convertible instruments outstanding as of January 1, 2021.

Recent Accounting Pronouncements Not Yet Adopted

Credit Losses: In June 2016, the FASB issued ASU No. 2016-13, Financial Instruments—Credit Losses (Topic 326): Measurement of Credit Losses on Financial Statements, which requires the measurement and recognition of expected credit losses for financial assets held at amortized cost, which includes the Company’s accounts receivable, certain financial instruments, and contract assets. ASU 2016-13 replaces the existing incurred loss impairment model with an expected loss methodology. Subsequently, the FASB issued multiple codification improvement amendments to ASU 2016-13. ASU 2016-13 and the applicable subsequent amendments are effective for the Company for the year beginning January 1, 2023, though early adoption is permitted. The Company plans to early adopt this guidance effective January 1, 2022 on a modified retrospective basis and does not expect the adoption to have a material impact on its consolidated financial statements.

Marketable Securities

12 Months Ended

Dec. 31, 2021

Investments, Debt and Equity Securities [Abstract]

Marketable Securities

3. Marketable Securities

The following tables summarize the fair values of the Company’s marketable securities (in thousands):


	December 31, 2021
	Amortized Cost		Unrealized Gains		Unrealized Losses			Fair Value
U.S. treasury securities	$	446,878	$	-	$	(443	)	$	446,435
Corporate notes and bonds		125,845		5		(246	)		125,604
U.S. agency obligations		54,122		-		(115	)		54,007
Commercial paper		10,995		-		-			10,995
Municipal bonds		3,045		-		(1	)		3,044
Total marketable securities	$	640,885	$	5	$	(805	)	$	640,085


	December 31, 2020
	Amortized Cost		Unrealized Gains		Unrealized Losses			Fair Value
Corporate notes and bonds	$	155,401	$	360	$	(21	)	$	155,740
Commercial paper		63,503		27		(24	)		63,506
U.S. agency obligations		32,520		-		(10	)		32,510
Total marketable securities	$	251,424	$	387	$	(55	)	$	251,756

Realized gains and losses were not material for the years ended December 31, 2021, 2020, and 2019. Marketable securities in an unrealized loss position had a fair value of $618.3 million and an immaterial amount of unrealized losses as of December 31, 2021, and a fair value of $91.5 million and an immaterial amount of unrealized losses as of December 31, 2020. No marketable securities were in a continuous unrealized loss position for more than twelve months as of December 31, 2021 and 2020.

The following table summarizes the contractual maturities of the Company’s marketable securities (in thousands):


	December 31, 2021				December 31, 2020
	Amortized Cost		Fair Value		Amortized Cost		Fair Value
Due within one year	$	488,565	$	488,256	$	180,320	$	180,520
Due after one year through five years		152,320		151,829		71,104		71,236
Total	$	640,885	$	640,085	$	251,424	$	251,756

Fair Value of Financial Instruments

12 Months Ended

Dec. 31, 2021

Fair Value Disclosures [Abstract]

Fair Value of Financial Instruments

4. Fair Value of Financial Instruments

The following tables summarize the Company’s financial assets that are measured at fair value on a recurring basis (in thousands):


	December 31, 2021
	Level 1		Level 2		Total
Cash equivalents:
U.S. treasury securities	$	-	$	69,999	$	69,999
Money market funds		23,857		-		23,857
Commercial paper		-		4,999		4,999
Marketable securities:
U.S. treasury securities		-		446,435		446,435
Corporate notes and bonds		-		125,604		125,604
U.S. agency obligations		-		54,007		54,007
Commercial paper		-		10,995		10,995
Municipal bonds		-		3,044		3,044
Total	$	23,857	$	715,083	$	738,940


	December 31, 2020
	Level 1		Level 2		Total
Cash equivalents:
Money market funds	$	12,409	$	-	$	12,409
Marketable securities:
Corporate notes and bonds		-		155,740		155,740
Commercial paper		-		63,506		63,506
U.S. agency obligations		-		32,510		32,510
Total	$	12,409	$	251,756	$	264,165

The Company classifies its highly liquid money market funds within Level 1 of the fair value hierarchy because they are valued based on quoted market prices in active markets. The Company classifies its corporate notes and bonds, commercial paper, U.S. agency obligations, U.S. treasury securities, and municipal bonds within Level 2 of the fair value hierarchy because they are valued using inputs other than quoted prices that are directly or indirectly observable in the market, including readily available pricing sources for the identical underlying security that may not be actively traded. There were no transfers of financial assets between valuation levels during the years ended December 31, 2021, 2020, and 2019.

- 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 + Details

Balance Sheet Components

12 Months Ended

Dec. 31, 2021

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Balance Sheet Components

5. Balance Sheet Components

Property and Equipment, Net

The cost and accumulated depreciation and amortization of property and equipment were as follows (in thousands):


	December 31, 2021			December 31, 2020
Computers and equipment	$	4,541		$	2,640
Furniture and fixtures		1,322			1,360
Purchased software		26			26
Leasehold improvements		459			136
Internal-use software		8,024			4,016
Construction in progress		5,140			1,183
Property and equipment, at cost	$	19,512		$	9,361
Less: Accumulated depreciation and amortization		(5,084	)		(2,643	)
Property and equipment, net	$	14,428		$	6,718

Depreciation and amortization expense was $3.6 million, $1.6 million and $1.2 million for the years ended December 31, 2021, 2020, and 2019, respectively.

Accrued Expenses and Other Liabilities

Accrued expenses and other liabilities consisted of the following (in thousands):


	December 31, 2021		December 31, 2020
Accrued compensation and benefits	$	27,703	$	4,240
Employee contributions under ESPP		19,247		-
Accrued expenses		17,452		7,225
Accrued commissions		13,734		10,189
Accrued payroll taxes		8,681		6,756
Other liabilities		12,157		5,301
Total accrued expenses and other liabilities	$	98,974	$	33,711

Convertible Senior Notes

12 Months Ended

Dec. 31, 2021

Convertible Debt [Abstract]

Convertible Senior Notes

6. Convertible Senior Notes

In December 2021, the Company issued $1.1 billion aggregate principal amount of 0% convertible senior notes due 2027 (the “2027 Notes”), including the exercise in full of the initial purchasers’ option to purchase up to an additional $100.0 million principal amount of the 2027 Notes, in a private placement to qualified institutional buyers pursuant to Rule 144A under the Securities Act. The 2027 Notes are general unsecured obligations of the Company and will mature on January 15, 2027, unless earlier converted, redeemed, or repurchased. The 2027 Notes do not bear regular interest, and the principal amount of the 2027 Notes will not accrete. Special interest, if any, will be payable semiannually in arrears on January 15 and July 15 of each year, beginning on July 15, 2022 (if and to the extent that special interest is then payable on the 2027 Notes). The total net proceeds from the offering, after deducting initial purchasers’ discounts and debt issuance costs, were $1,080.5 million.

The initial conversion rate is 9.9936 shares of the Company’s Class A common stock per $1,000 principal amount of 2027 Notes (equivalent to an initial conversion price of approximately $100.06 per share of the Company’s Class A common stock), subject to adjustment as set forth in the indenture governing the 2027 Notes (the “Indenture”). The 2027 Notes are convertible at the option of the holders at any time prior to the close of business on the business day immediately preceding October 15, 2026, only under the following conditions:

(1)

during any calendar quarter commencing after the calendar quarter ending on March 31, 2022 (and only during such calendar quarter), if the last reported sale price of the Company’s Class A common stock for at least 20 trading days (whether or not consecutive) during a period of 30 consecutive trading days ending on, and including, the last trading day of the immediately preceding calendar quarter is greater than or equal to 130% of the conversion price for the 2027 Notes on each applicable trading day;

(2)

during the five business day period after any ten consecutive trading day period (the “measurement period”) in which the trading price per $1,000 principal amount of the 2027 Notes for each trading day of the measurement period was less than 98% of the product of the last reported sale price of the Company’s Class A common stock and the conversion rate for the 2027 Notes on each such trading day;

(3)

if the Company calls such 2027 Notes for redemption, at any time prior to the close of business on the scheduled trading day immediately preceding the redemption date, but only with respect to the 2027 Notes called (or deemed called) for redemption; or

(4)

upon the occurrence of specified corporate events as set forth in the Indenture.

On or after October 15, 2026, until the close of business on the second scheduled trading day immediately preceding the maturity date, holders of the 2027 Notes may convert all or any portion of their 2027 Notes at any time, at the option of the holder regardless of the foregoing conditions. Upon conversion, the Company may satisfy its conversion obligation by paying or delivering, as the case may be, cash, shares of Class A common stock or a combination of cash and shares of Class A common stock, at the Company’s election, in the manner and subject to the terms and conditions provided in the Indenture. In addition, following certain corporate events that occur prior to the maturity date of the 2027 Notes or if the Company delivers a notice of redemption in respect of the 2027 Notes, the Company will, under certain circumstances, increase the conversion rate of the 2027 Notes for a holder who elects to convert its 2027 Notes in connection with such a corporate event or convert its 2027 Notes called (or deemed called) for redemption in connection with such notice of redemption, as the case may be.

During the year ended December 31, 2021, the conditions allowing holders of the 2027 Notes to convert have not been met. The 2027 Notes were therefore not convertible during the year ended December 31, 2021 and were classified as long-term debt on the Company’s consolidated balance sheets.

The Company may not redeem the 2027 Notes prior to January 20, 2025. The Company may redeem for cash all or any portion of the 2027 Notes (subject to the certain limitations described in the Indenture), at its option, on or after January 20, 2025, if the last reported sale price of the Company’s Class A common stock has been at least 130% of the conversion price for the 2027 Notes then in effect for at least 20 trading days (whether or not consecutive) during any 30 consecutive trading day period (including the last trading day of such period) ending on, and including, the trading day immediately preceding the date on which the Company provides notice of redemption at a redemption price equal to 100% of the principal amount of the 2027 Notes to be redeemed, plus accrued and unpaid special interest, if any, to, but excluding, the redemption date. If the Company redeems less than all of the outstanding 2027 Notes, at least $100.0 million aggregate principal amount of 2027 Notes must be outstanding and not subject to redemption as of, and after giving effect to, delivery of the relevant notice of redemption. No sinking fund is provided for the 2027 Notes.

The Company incurred $19.5 million of debt issuance costs related to the 2027 Notes. These costs are amortized to interest expense included within other income (expense), net on the consolidated statement of operations over the contractual term of the 2027 Notes at an effective interest rate of 0.35%. Amortization of debt issuance costs for the year ended December 31, 2021 was $0.2 million.

The net carrying amount of the 2027 Notes was as follows (in thousands):


	December 31, 2021
Principal	$	1,100,000
Unamortized debt issuance costs		(19,299	)
Net carrying amount	$	1,080,701

Capped Calls

In connection with the pricing of the 2027 Notes and the exercise in full by the initial purchasers of their option to purchase additional 2027 Notes, the Company entered into capped call transactions with certain of the initial purchasers of the 2027 Notes or their respective affiliates and other financial institutions (the “Capped Calls”). The Capped Calls each have an initial strike price of approximately $100.06 per share, subject to certain adjustments, which corresponds to the initial conversion price of the 2027 Notes. The Capped Calls have initial cap prices of $138.02 per share, subject to certain adjustments. The Capped Calls associated with the 2027 Notes cover, subject to anti-dilution adjustments, approximately 11.0 million shares of the Company’s Class A common stock. The Capped Calls are expected generally to reduce the potential dilution to the Company’s Class A common stock upon any conversion of the 2027 Notes and/or offset any cash payments the Company is required to make in excess of the principal amount of converted 2027 Notes, as the case may be, with such reduction and/or offset subject to a cap based on the cap price. For accounting purposes, the Capped Calls are separate transactions and not part of the terms of the 2027 Notes. As these transactions meet certain accounting criteria, the Capped Calls are recorded in stockholders’ equity and are not accounted for as derivatives. The cost of $91.0 million incurred to purchase the Capped Calls was recorded as a reduction to additional paid-in capital and will not be remeasured.

- Definition

The entire disclosure for information about short-term and long-term debt arrangements, which includes amounts of borrowings under each line of credit, note payable, commercial paper issue, bonds indenture, debenture issue, own-share lending arrangements and any other contractual agreement to repay funds, and about the underlying arrangements, rationale for a classification as long-term, including repayment terms, interest rates, collateral provided, restrictions on use of assets and activities, whether or not in compliance with debt covenants, and other matters important to users of the financial statements, such as the effects of refinancing and noncompliance with debt covenants.

+ References

Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 470
-URI http://asc.fasb.org/topic&trid=2208564

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 470
-SubTopic 20
-Section 50
-Paragraph 1B
-Subparagraph (h)
-URI http://asc.fasb.org/extlink&oid=123466505&loc=SL123495323-112611

Reference 3: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 470
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-Section 50
-Paragraph 1C
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Reference 4: http://www.xbrl.org/2003/role/disclosureRef
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-Name Accounting Standards Codification
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Reference 5: http://www.xbrl.org/2003/role/disclosureRef
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-Subparagraph (d)
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Reference 6: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
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-Section S99
-Paragraph 1
-Subparagraph (SX 210.4-08(c))
-URI http://asc.fasb.org/extlink&oid=120395691&loc=d3e23780-122690

Reference 7: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
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-Section 50
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Reference 8: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
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Reference 9: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
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-URI http://asc.fasb.org/extlink&oid=123466505&loc=SL123495334-112611

Reference 10: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
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Reference 12: http://www.xbrl.org/2003/role/disclosureRef
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Reference 13: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
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+ Details

Commitments and Contingencies

12 Months Ended

Dec. 31, 2021

Commitments and Contingencies Disclosure [Abstract]

Commitments and Contingencies

7. Commitments and Contingencies

Leases

The Company has entered into non-cancelable operating leases, primarily for the rent of office space expiring at various dates through 2029. Certain lease agreements contain an option for the Company to renew the lease for a term of up to three years or an option to terminate the lease early within three years of lease termination. The Company considers these options in determining the lease term on a lease-by-lease basis. None of the Company’s lease agreements contain any material non-lease components, material residual value guarantees, or material restrictive covenants.

During the year ended December 31, 2019, the Company issued a letter of credit of $8.2 million for its office space in Mountain View, California. No draws have been made under the letter of credit as of December 31, 2021 and 2020.

In addition, the Company subleases a portion of its unoccupied office space expiring at various dates through 2022. Sublease income is recorded as a reduction of lease expense and was $2.7 million, $2.9 million, and $0.2 million for the years ended December 31, 2021, 2020, and 2019, respectively.

For the years ended December 31, 2021, 2020, and 2019, lease expense, net of sublease income of $10.2 million, $10.8 million, and $8.6 million is included in operating expenses in the consolidated statements of operations, respectively. The Company did not have any material variable lease costs or short-term lease costs for the years ended December 31, 2021, 2020, and 2019.

As of December 31, 2021 and 2020, the weighted-average remaining lease term of the Company’s operating leases was 4.5 and 5.2 years, respectively, and the weighted-average discount rate used to measure the present value of the operating lease liabilities was 4.1% and 4.0%, respectively.

The Company’s future minimum lease payments under non-cancelable operating leases as of December 31, 2021 were as follows (in thousands):


Year Ending December 31,	Minimum Lease Payments
2022	$	10,480
2023		8,547
2024		8,216
2025		10,463
2026		7,231
Total minimum lease payments		44,937
Less: Imputed interest		(4,056	)
Present value of future minimum lease payments	$	40,881

Purchase Obligations

As of December 31, 2021, future payments under non-cancelable purchase obligations, primarily related to third-party cloud infrastructure agreements under which the Company is granted access to use certain cloud services, were as follows (in thousands):


Year Ending December 31,	Purchase Obligations
2022	$	71,019
2023		81,775
2024		89,000
2025		114,500
2026		115,000
Total	$	471,294

Legal Matters

From time to time, the Company has become involved in claims and other legal matters arising in the ordinary course of business. The Company investigates these claims as they arise. As of December 31, 2021 and 2020, the Company is not aware of any matters that would individually or taken together have a material adverse effect on its results of operations, financial position, or cash flows.

Indemnification

The Company enters into indemnification provisions under its agreements with other companies in the ordinary course of business, including customers, business partners, landlords, and certain third-party vendors. Under these arrangements, the Company agrees to indemnify, hold harmless, and reimburse the indemnified party for certain losses suffered or incurred by the indemnified party resulting from certain Company activities. The terms of these indemnification agreements are generally perpetual. The maximum potential amount of future payments the Company could be required to make under these agreements is not determinable. The Company has not, as of December 31, 2021 and 2020, incurred material costs to defend lawsuits or settle claims related to these indemnification agreements. The Company maintained commercial general liability insurance and product liability insurance during the years ended December 31, 2021, 2020, and 2019 to offset certain of the Company’s potential liabilities under these indemnification provisions.

The Company also indemnifies certain of its officers, directors, and certain key employees while they are serving in good faith in their respective capacities. As of December 31, 2021 and 2020, the Company has not incurred material costs to defend lawsuits or settle claims related to these indemnification agreements.

Revenue

12 Months Ended

Dec. 31, 2021

Revenue from Contract with Customer [Abstract]

Revenue

8. Revenue

Disaggregation of Revenue

The following table sets forth revenue disaggregated by geographic markets based on the location of the customer and by subscription and service categories (dollars in thousands):


	Year Ended December 31,
	2021				2020				2019
Geographic markets:
United States	$	246,676	64	%	$	156,104	66	%	$	101,709	68	%
International		141,188	36	%		80,473	34	%		48,096	32	%
Total revenue	$	387,864	100	%	$	236,577	100	%	$	149,805	100	%
Subscriptions and services:
Confluent Platform - License	$	69,183	18	%	$	49,043	21	%	$	37,094	25	%
Confluent Platform - PCS		183,737	47	%		128,178	54	%		78,664	52	%
Confluent Cloud		94,179	24	%		31,412	13	%		14,448	10	%
Subscription		347,099	89	%		208,633	88	%		130,206	87	%
Services		40,765	11	%		27,944	12	%		19,599	13	%
Total revenue	$	387,864	100	%	$	236,577	100	%	$	149,805	100	%

Other than the United States, no individual country represented 10% or more of total revenue during the years ended December 31, 2021, 2020, and 2019.

Remaining Performance Obligations (“RPO”)

RPO represent the amount of contracted future revenue that has not yet been recognized as of the end of each period, including both deferred revenue that has been invoiced and non-cancelable committed amounts that will be invoiced and recognized as revenue in future periods. RPO exclude pay-as-you-go arrangements. As of December 31, 2021, the Company’s RPO is $500.6 million, approximately 64% of which is expected to be recognized as revenue over the next 12 months and the substantial majority of the remainder in the next 13 to 36 months.

Deferred Revenue

Deferred revenue, including current and non-current balances as of December 31, 2021 and 2020, was $246.5 million and $159.2 million, respectively. For the years ended December 31, 2021, 2020, and 2019, revenue recognized from deferred revenue at the beginning of each year was $141.7 million, $83.4 million, and $44.2 million, respectively.

Deferred Contract Acquisition Costs

The following table summarizes the activity of deferred contract acquisition costs (in thousands):


	Year Ended December 31,
	2021			2020
Beginning balance	$	47,599		$	25,499
Capitalization of contract acquisition costs		57,922			38,129
Amortization of deferred contract acquisition costs		(26,697	)		(16,029	)
Ending balance	$	78,824		$	47,599

- Definition

The entire disclosure of revenue from contract with customer to transfer good or service and to transfer nonfinancial asset. Includes, but is not limited to, disaggregation of revenue, credit loss recognized from contract with customer, judgment and change in judgment related to contract with customer, and asset recognized from cost incurred to obtain or fulfill contract with customer. Excludes insurance and lease contracts.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-URI http://asc.fasb.org/topic&trid=49130388

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-SubTopic 10
-Section 50
-Paragraph 10
-URI http://asc.fasb.org/extlink&oid=123351226&loc=SL49130551-203045

Reference 3: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-SubTopic 10
-Section 50
-Paragraph 13
-Subparagraph (b)(2)
-URI http://asc.fasb.org/extlink&oid=123351226&loc=SL49130556-203045

Reference 4: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-SubTopic 10
-Section 50
-Paragraph 12
-Subparagraph (b)
-URI http://asc.fasb.org/extlink&oid=123351226&loc=SL49130554-203045

Reference 5: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-SubTopic 10
-Section 50
-Paragraph 9
-URI http://asc.fasb.org/extlink&oid=123351226&loc=SL49130550-203045

Reference 6: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-SubTopic 10
-Section 50
-Paragraph 12
-Subparagraph (e)
-URI http://asc.fasb.org/extlink&oid=123351226&loc=SL49130554-203045

Reference 7: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-SubTopic 10
-Section 50
-Paragraph 12
-Subparagraph (a)
-URI http://asc.fasb.org/extlink&oid=123351226&loc=SL49130554-203045

Reference 8: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-SubTopic 10
-Section 50
-Paragraph 12
-Subparagraph (d)
-URI http://asc.fasb.org/extlink&oid=123351226&loc=SL49130554-203045

Reference 9: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-SubTopic 10
-Section 50
-Paragraph 15
-URI http://asc.fasb.org/extlink&oid=123351226&loc=SL49130558-203045

Reference 10: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-SubTopic 10
-Section 50
-Paragraph 12
-Subparagraph (c)
-URI http://asc.fasb.org/extlink&oid=123351226&loc=SL49130554-203045

+ Details

Redeemable Convertible Preferred Stock

12 Months Ended

Dec. 31, 2021

Temporary Equity Disclosure [Abstract]

Redeemable Convertible Preferred Stock

9. Redeemable Convertible Preferred Stock

During the year ended December 31, 2020, the Company issued 17,369,577 shares of Series E redeemable convertible preferred stock at $14.9687 per share for proceeds totaling $259.8 million, net of issuance costs. Upon the sale of the Company’s convertible founder stock in July 2020 pursuant to a tender offer (see Note 10), 7,284,182 shares of the Company’s convertible founder stock were converted into shares of Series E redeemable convertible preferred stock on a one-for-one basis.

Redeemable convertible preferred stock outstanding as of December 31, 2020 consisted of the following (in thousands, except share and per share data):


Redeemable Convertible Preferred Stock	Shares Authorized		Shares Issued and Outstanding		Issuance Price Per Share		Carrying Amount		Aggregate Liquidation Preference
Series A		34,911,252		34,911,252	$	0.20050825	$	6,945	$	7,000
Series B		24,948,780		24,948,780		0.963975		23,981		24,050
Series C		18,657,756		18,657,756		2.67985		49,927		50,000
Series D		12,106,303		12,106,303		10.3252		124,931		125,000
Series E		24,653,759		24,653,759		14.9687		368,850		369,035
Total		115,277,850		115,277,850			$	574,634	$	575,085

Immediately prior to the closing of the IPO, all shares of the Company’s redeemable convertible preferred stock outstanding, totaling 115,277,850, were automatically converted into an equal number of shares of Class B common stock and their carrying value of $574.6 million was reclassified into stockholders’ equity. As of December 31, 2021, there were no shares of redeemable convertible preferred stock issued and outstanding.

The rights, preferences, and privileges of the redeemable convertible preferred stock prior to its conversion into Class B common stock were as follows:

Liquidation Preference

In the event of any liquidation, dissolution, or winding up of the Company, either voluntary or involuntary, the holders of redeemable convertible preferred stock were entitled to receive, on a pari passu basis and prior and in preference to any distribution to the holders of common stock, an amount per share equal to $0.20050825 per outstanding share of Series A redeemable convertible preferred stock, $0.963975 per outstanding share of Series B redeemable convertible preferred stock, $2.67985 per outstanding share of Series C redeemable convertible preferred stock, $10.3252 per outstanding share of Series D redeemable convertible preferred stock, and $14.9687 per outstanding share of Series E redeemable convertible preferred stock plus any declared but unpaid dividends. If upon such liquidation event, the assets of the Company legally available for distribution to the redeemable convertible preferred stockholders were insufficient, then the assets would be distributed pro rata among such holders in proportion to the full amounts they would otherwise be entitled to receive.

After the payment or setting aside for payment to the holders of redeemable convertible preferred stock of the full amounts, the remaining assets of the Company legally available for distribution would be distributed among the holders of common stock and convertible founder stock pro rata based on the number of shares of common stock held by each such holder on an as-converted basis (assuming conversion of all shares of convertible founder stock into common stock).

Conversion Rights

Each share of redeemable convertible preferred stock was convertible, at the option of the holder at any time after the date of issuance of such share, into the number of shares of common stock determined by dividing the original issue price by the then applicable conversion price. For each series of redeemable convertible preferred stock, the conversion price per share was equal to its respective issue price such that each share of redeemable convertible preferred stock was convertible into common stock on a one-for-one basis. The conversion price for each series of redeemable convertible preferred stock was subject to adjustments for certain events, including stock splits, stock dividends, combinations, subdivisions, or recapitalization events. In addition, if the Company issued any common stock without consideration or for a consideration per share less than the conversion price for the redeemable convertible preferred stock, the conversion price for each series would automatically be adjusted in accordance with anti-dilution provisions contained in the Company’s amended and restated certificate of incorporation.

Each share of redeemable convertible preferred stock would automatically be converted into shares of common stock at the then-effective conversion rate immediately upon the earlier of (i) the closing of an underwritten IPO that results in aggregate cash proceeds to the Company of not less than $80.0 million (before deducting underwriters’ discounts and commissions) or the direct listing of the Company’s securities which has been approved by a majority of the directors designated by holders of the redeemable convertible preferred stock; or (ii) the date, specified by vote or written consent of the holders of at least a majority of the then-outstanding shares of redeemable convertible preferred stock (voting together as a single class on an as-converted basis); provided, however, the shares of Series B, Series C, Series D, and Series E redeemable convertible preferred stock would not automatically be converted into shares of common stock without the written consent of the holders of at least a majority of the then-outstanding shares of Series B, Series C, Series D, and Series E redeemable convertible preferred stock, respectively (voting as a separate class per each series).

Dividends

The holders of redeemable convertible preferred stock would be entitled to receive dividends, on a pari passu basis and prior and in preference to any declaration or payment of any dividend on common stock, at the per annum rate of $0.01605 per outstanding share of Series A redeemable convertible preferred stock, $0.077125 per outstanding share of Series B redeemable convertible preferred stock, $0.2144 per outstanding share of Series C redeemable convertible preferred stock, $0.826016 per outstanding share of Series D redeemable convertible preferred stock, and $1.197496 per outstanding share of Series E redeemable convertible preferred stock. Such dividends would not be cumulative. Payment of dividends would only be made when, as, and if declared by the Company’s board of directors. Any additional dividends would be distributed among all holders of redeemable convertible preferred stock, convertible founder stock, and common stock pro rata on an as-converted basis at the then-effective conversion rate.

No dividends on redeemable convertible preferred stock, convertible founder stock, or common stock were declared by the board of directors or paid during the years ended December 31, 2021, 2020, and 2019.

Voting

The holders of redeemable convertible preferred stock would be entitled to the same voting rights as the holders of common stock, and all holders would vote together as a single class on all matters. Each share of redeemable convertible preferred stock had a number of votes equal to the number of shares of common stock into which it was convertible.

Redemption

The convertible preferred stock was contingently redeemable upon certain deemed liquidation events such as a change in control, merger, or sale of substantially all the assets of the Company. The convertible preferred stock was not mandatorily redeemable, but since a deemed liquidation event would constitute a redemption event outside of the Company’s control, all shares of redeemable convertible preferred stock have been presented in mezzanine equity on the consolidated balance sheets.

In the event of a deemed liquidation event, the Company was required to redeem shares of Series A, Series B, Series C, Series D, and Series E redeemable convertible preferred stock at the issue price of $0.20050825, $0.963975, $2.67985, $10.3252, and $14.9687 per share (as adjusted for any stock splits, stock dividends, combinations, subdivisions, recapitalizations or the like with respect to each Series A, Series B, Series C, Series D, and Series E redeemable convertible preferred stock), respectively, plus any non-cumulative dividends declared by the Company’s board of directors.

Stockholders' Equity (Deficit)

12 Months Ended

Dec. 31, 2021

Stockholders' Equity Note [Abstract]

Stockholders' Equity (Deficit)

10. Stockholders’ Equity (Deficit)

Convertible Founder Stock

In 2014, the Company issued an aggregate of 7,920,000 shares of convertible founder stock and 71,280,000 shares of common stock to the Company’s founders (as adjusted for any stock splits), with each receiving 2,640,000 shares of convertible founder stock and 23,760,000 shares of common stock. Each share of convertible founder stock had a par value of $0.00001. Each share of founder stock was convertible into redeemable convertible preferred stock if purchased by an investor in conjunction with a round of preferred stock financing; if otherwise transferred or sold, each share of founder stock was convertible into common stock. In exchange for the shares of convertible founder stock that were fully vested upon issuance, each founder contributed certain technology and intellectual property and other tangible personal property. The shares of common stock were subject to a requisite service period of four years.

Upon the sale of the Company’s convertible founder stock in July 2020 pursuant to a tender offer (see below within Note 10), all 7,284,182 shares of the Company’s founder stock that were sold were immediately converted into shares of Series E redeemable convertible preferred stock on a one-for-one basis.

Immediately prior to the closing of the IPO, all shares of the Company’s convertible founder stock outstanding, totaling 635,818, were automatically converted into an equal number of shares of Class B common stock. As of December 31, 2021, there were no shares of convertible founder stock issued and outstanding.

Preferred Stock

In connection with the IPO, the Company’s amended and restated certificate of incorporation became effective, which authorized the issuance of 10,000,000 shares of undesignated preferred stock with a par value of $0.00001 per share with rights and preferences, including voting rights, designated from time to time by the board of directors.

Common Stock

The Company has two classes of common stock: Class A common stock and Class B common stock. In connection with the IPO, the Company’s amended and restated certificate of incorporation authorized the issuance of 1,000,000,000 shares of Class A common stock and 500,000,000 shares of Class B common stock. The shares of Class A common stock and Class B common stock are identical, except with respect to voting, converting, and transfer rights. Each share of Class A common stock is entitled to one vote. Each share of Class B common stock is entitled to ten votes. Class A and Class B common stock have a par value of $0.00001 per share and are referred to as common stock throughout the notes to the consolidated financial statements, unless otherwise noted. Holders of common stock are entitled to receive any dividends as may be declared from time to time by the board of directors.

Each share of Class B common stock is convertible at any time at the option of the holder into one share of Class A common stock. Any holder’s shares of Class B common stock will convert automatically to Class A common stock, on a one-to-one basis, upon the following: (i) sale or transfer of such share of Class B common stock, except for permitted transfers as described in the amended and restated certificate of incorporation; (ii) the death or incapacity of the Class B common stockholder (or nine months after the date of the death or incapacity if the stockholder is one of the Company’s founders); and (iii) on the final conversion date, defined as the earliest of (a) the date fixed by our board of directors that is no less than 61 days and no more than 180 days following the date on which the outstanding shares of Class B common stock represent less than 10% of the then outstanding shares of Class A and Class B common stock; (b) the last trading day of the fiscal year following the tenth anniversary of the Company’s IPO; or (c) the date specified by a vote of the holders of a majority of the outstanding shares of Class B common stock, voting as a single class.

In June 2021, the Company donated 250,000 shares of its Class A common stock to its charitable foundation, Confluent.org. The Company recognized charitable donation expense of $13.3 million within general and administrative expense based on the closing price of its Class A common stock on the date of donation.

Common Stock Reserved for Future Issuance

The Company has reserved the following shares of common stock for future issuance:


	December 31, 2021		December 31, 2020
Series A redeemable convertible preferred stock		-		34,911,252
Series B redeemable convertible preferred stock		-		24,948,780
Series C redeemable convertible preferred stock		-		18,657,756
Series D redeemable convertible preferred stock		-		12,106,303
Series E redeemable convertible preferred stock		-		24,653,759
Convertible founder stock		-		635,818
2014 Stock Plan:
Options outstanding		61,903,883		71,213,150
Restricted stock units outstanding		3,495,540		-
Remaining shares available for future issuance under the 2014 Plan		-		4,722,481
2021 Equity Incentive Plan:
Options outstanding		22,500		-
Restricted stock units outstanding		2,938,968		-
Remaining shares available for future issuance under the 2021 Plan		32,797,245		-
2021 Employee Stock Purchase Plan		5,162,575		-
Total		106,320,711		191,849,299

Equity Incentive Plans

In September 2014, the Company’s board of directors adopted and the Company’s stockholders approved the 2014 Stock Plan (the “2014 Plan”). The 2014 Plan was also amended and restated in March 2021 and June 2021. Under the 2014 Plan, the board of directors may grant stock options and other equity-based awards to eligible employees, directors, and consultants. The 2014 Plan was terminated in June 2021 in connection with the IPO, but continues to govern the terms of outstanding awards that were granted prior to the termination of the 2014 Plan. No further equity awards will be granted under the 2014 Plan. With the establishment of the 2021 Equity Incentive Plan (the “2021 Plan”), upon the expiration, forfeiture, cancellation, or reacquisition of any shares of Class B common stock underlying outstanding stock-based awards granted under the 2014 Plan, an equal number of shares of Class A common stock will become available for grant under the 2021 Plan. Equity-based awards granted under the 2014 Plan and the 2021 Plan generally vest over four years. All stock option grants expire ten years from the date of grant.

In April 2021, the Company’s board of directors adopted, and in June 2021, the Company’s stockholders approved, the 2021 Plan, which became effective at the time of the execution of the underwriting agreement related to the Company’s IPO. The 2021 Plan provides for the grant of incentive stock options, nonqualified stock options, stock appreciation rights, restricted stock awards, RSUs, performance awards, and other forms of awards to employees, directors, and consultants, including employees and consultants of the Company’s affiliates. A total of 25,812,876 shares of the Company’s Class A common stock have been reserved for future issuance under the 2021 Plan in addition to (i) the shares that remained available for grant of future awards under the 2014 Plan at the time the 2021 Plan became effective, (ii) shares underlying outstanding stock awards granted under the 2014 Plan that expire, or are forfeited, cancelled, or reacquired, as described above, and (iii) any automatic increases in the number of shares of Class A common stock reserved for future issuance under this plan.

In April 2021, the Company’s board of directors adopted, and in June 2021, the Company’s stockholders approved, the 2021 Employee Stock Purchase Plan (the “2021 ESPP”), which became effective at the time of the execution of the underwriting agreement related to the Company’s IPO. The 2021 ESPP authorizes the issuance of shares of Class A common stock pursuant to purchase rights granted to employees. A total of 5,162,575 shares of the Company’s Class A common stock have been reserved for future issuance under the 2021 ESPP, in addition to any automatic increases in the number of shares of Class A common stock reserved for future issuance under this plan.

Except for the initial offering period, the 2021 ESPP provides for 12-month offering periods beginning February 16 and August 16 of each year, and each offering period will consist of two six-month purchase periods. The initial offering period began on June 24, 2021 and will end on August 15, 2022. The initial offering consists of two purchase periods, with the first purchase period ending on February 15, 2022 and the second purchase period ending on August 15, 2022. The price at which Class A common stock is purchased under the 2021 ESPP is equal to 85% of the lesser of (1) the fair market value of the Company’s stock on the offering date or (2) the fair market value of the Company’s stock on the purchase date.

Equity Awards Outstanding

The following table summarizes stock equity award activity and activity regarding shares available for grant under the 2014 Plan and the 2021 Plan:


				Equity Awards Outstanding
	Shares Available for Grant			Outstanding Stock Options			Weighted-Average Exercise Price		Weighted-Average Remaining Contractual Term (in years)		Aggregate Intrinsic Value (in thousands)
Balance as of January 1, 2019		5,645,652			48,361,074		$	1.12		8.71	$	98,241
Increase in authorized shares		23,873,281			-		$	-
Stock options granted		(32,867,335	)		32,867,335		$	3.24
Stock options exercised		-			(9,228,205	)	$	1.47
Stock options forfeited or expired		4,413,648			(4,413,648	)	$	1.78
Repurchases of unvested common stock		167,628			-		$	-
Balance as of December 31, 2019		1,232,874			67,586,556		$	2.06		8.54	$	202,315
Increase in authorized shares		17,927,565			-		$	-
Stock options granted		(22,829,471	)		22,829,471		$	6.20
Stock options exercised		-			(10,865,786	)	$	1.58
Stock options forfeited or expired		8,337,091			(8,337,091	)	$	2.65
Repurchases of unvested common stock		54,422			-		$	-
Balance as of December 31, 2020		4,722,481			71,213,150		$	3.39		8.26	$	677,503
Increase in authorized shares		48,412,876			-		$	-
Stock options granted		(17,232,871	)		17,232,871		$	16.38
Stock options exercised		-			(22,730,337	)	$	3.13
Stock options forfeited or expired		3,789,301			(3,789,301	)	$	5.31
Repurchases of unvested common stock		188,460			-		$	-
RSUs granted		(7,215,043	)		-		$	-
RSUs forfeited or cancelled		132,041			-		$	-
Balance as of December 31, 2021		32,797,245			61,926,383		$	6.97		7.88	$	4,289,643
Vested as of December 31, 2021					22,294,417		$	3.25		6.88	$	1,627,213
Vested and expected to vest as of December 31, 2021					61,926,383		$	6.97		7.88	$	4,289,643

Aggregate intrinsic value represents the difference between the exercise price of the options to purchase common stock and the estimated fair value of the Company’s common stock. The intrinsic value of options exercised was $976.5 million, $60.8 million, and $16.3 million for the years ended December 31, 2021, 2020, and 2019, respectively. The weighted-average grant-date fair value per share of options granted during the years ended December 31, 2021, 2020, and 2019 was $12.43, $4.43, and $1.80, respectively. The total grant-date fair value of stock options vested was $63.6 million, $29.2 million and $15.4 million during years ended December 31, 2021, 2020, and 2019, respectively.

Early Exercised Options

Holders of stock options governed by the 2014 Plan have the right to exercise unvested options, which are subject to a repurchase right held by the Company at the original exercise price in the event of voluntary or involuntary termination of employment of the stockholder. As of December 31, 2021 and December 31, 2020, there were 2,164,577 and 2,338,945 shares that had been early exercised and were subject to repurchase, respectively. The proceeds related to early exercised options are recorded as liabilities until the options vest, at which point they are reclassified to equity. As of December 31, 2021 and December 31, 2020, the liabilities for early exercised options subject to repurchase were $15.8 million and $6.9 million, respectively, which were recorded as liability for early exercise of unvested stock options and other liabilities, non-current on the consolidated balance sheets.

Shares issued for early exercised options are included in issued and outstanding shares as they are legally issued and outstanding, but are not deemed outstanding for accounting purposes until the shares vest.

Performance-Based Options

As of December 31, 2020, the Company had granted 2,875,255 options with both a service-based vesting condition and a performance-based vesting condition. No performance-based options were granted during the year ended December 31, 2021. The performance-based vesting condition was not deemed probable until consummated, and therefore, stock-based compensation related to these options remained unrecognized prior to the effectiveness of the IPO. Upon the effectiveness of the IPO, the performance-based vesting condition was satisfied, and therefore, the Company recognized cumulative stock-based compensation expense of $3.8 million to general and administrative expense using the accelerated attribution method for the portion of the awards for which the service-based vesting condition had been fully or partially satisfied.

RSUs

During the year ended December 31, 2021, the Company began granting RSUs to its employees. RSUs granted prior to the IPO had both service-based and performance-based vesting conditions.

The service-based vesting condition for these awards is generally satisfied by rendering continuous service for four years, during which time the grants will vest quarterly. In November 2021, the Company’s board of directors modified the terms of the RSUs. Prior to the modification, the RSUs vested either quarterly or with a cliff vesting period of one year and continued vesting quarterly thereafter. The modification removed the requirement of the cliff vesting period of one year and did not have a material impact to the consolidated financial statements for the year ended December 31, 2021. All other significant terms of the service-based RSUs remained unchanged.

The performance-based vesting condition is satisfied upon the sale of the Company’s common stock in a firm commitment underwritten public offering. The performance-based vesting condition was not deemed probable until consummated, and therefore, stock-based compensation related to these RSUs remained unrecognized prior to the effectiveness of the IPO. Upon the effectiveness of the IPO, the performance-based vesting condition was satisfied, and therefore, the Company recognized cumulative stock-based compensation expense of $6.8 million using the accelerated attribution method for the portion of the awards for which the service-based vesting condition had been fully or partially satisfied.

The following table summarizes RSU activity under the 2014 Plan and the 2021 Plan:


	Number of Shares			Weighted-Average Grant Date Fair Value
Unvested balances as of January 1, 2021		-		$	-
RSUs granted		7,215,043		$	44.87
RSUs vested		(648,494	)	$	34.25
RSUs forfeited or cancelled		(132,041	)	$	41.51
Unvested balances as of December 31, 2021		6,434,508		$	46.01

The total grant-date fair value of RSUs vested was $22.2 million during the year ended December 31, 2021.

Determination of Fair Value

The Company estimates the fair value of stock options using the Black-Scholes option-pricing model, which is dependent upon several variables, such as the fair value of the Company’s common stock, the expected option term, expected volatility of the Company’s stock price over the expected term, expected risk-free interest rate over the expected option term, and expected dividend yield.

Fair Value of Common Stock: Prior to the completion of the IPO, the board of directors had determined the fair value of common stock by considering a number of objective and subjective factors, including but not limited to contemporaneous independent third-party valuations of the Company’s common stock, market performance of comparable publicly traded companies, sales of the Company’s redeemable convertible preferred stock and common stock to unrelated third parties, operating and financial performance, the lack of marketability of the Company’s common stock, general and industry-specific economic outlook, and the likelihood of achieving a liquidity event, such as an initial public offering, a merger, or acquisition of the Company given prevailing market conditions. After the completion of the IPO, the fair value of the Company’s common stock is determined by the closing price, on the date of grant, of its Class A common stock, which is traded on the Nasdaq Global Select Market.

Expected Term: For option grants subject to service-based vesting conditions only, the expected term represents the period that the Company’s stock options are expected to be outstanding and is calculated using the simplified method for options that have only service-based vesting conditions. The simplified method deems the term to be the average of the time-to-vesting and the contractual life of the options. For other option grants, the Company estimates the expected term using historical data on employee exercises and post-vesting employment termination behavior, considering the contractual life of the award.

Expected Volatility: Since the Company does not have a sufficient trading history of its common stock, the expected volatility was derived from the average historical stock volatilities of public companies within the Company’s industry that it considers to be comparable to its business, over a period equivalent to the expected term of the stock options.

Risk-Free Interest Rate: The Company bases the risk-free interest rate on the implied yield available on U.S. Treasury zero-coupon notes with maturities equivalent to the option’s expected term.

Expected Dividend Yield: The Company has not issued any dividends in its history and does not expect to issue dividends over the life of the options and therefore has estimated the dividend yield to be zero.

The fair value of stock options granted was estimated on the date of grant using the Black-Scholes option-pricing model with the following weighted-average assumptions:


	Year Ended December 31,
	2021			2020			2019
Expected term (in years)		6.17			6.17			6.04
Expected volatility		66.3	%		68.3	%		59.0	%
Risk-free interest rate		1.1	%		0.5	%		1.8	%
Expected dividend yield		0	%		0	%		0	%

The fair value of employee stock purchase rights for the initial offering period under the 2021 ESPP was estimated on the date of grant using the Black-Scholes option-pricing model with the following weighted-average assumptions:


	Year Ended December 31, 2021
Expected term (in years)	0.63 - 1.12
Expected volatility	54.6% - 56.7%
Risk-free interest rate	0.1%
Expected dividend yield	0%

Stock-Based Compensation Expense

Total stock-based compensation expense was as follows (in thousands):


	Year Ended December 31,
	2021		2020		2019
Cost of revenue - subscription	$	12,571	$	2,572	$	1,161
Cost of revenue - services		5,418		1,745		994
Research and development		49,051		33,755		6,268
Sales and marketing		55,506		14,734		6,545
General and administrative		33,078		90,535		3,649
Stock-based compensation, net of amounts capitalized	$	155,624	$	143,341	$	18,617
Capitalized stock-based compensation		2,625		547		69
Total stock-based compensation	$	158,249	$	143,888	$	18,686

As of December 31, 2021, there was $518.7 million of unrecognized stock-based compensation expense, which is expected to be recognized over a weighted-average period of 3.2 years.

Tender Offer

In July 2020, the Company facilitated a tender offer whereby certain investors purchased shares of the Company’s convertible founder stock and common stock from certain stockholders. As a result, certain directors, employees, and non-employees of the Company sold an aggregate of 7,284,182 shares of the Company’s convertible founder stock and 1,883,233 shares of the Company’s common stock to entities affiliated with new and existing investors at a purchase price of $14.9687 per share for an aggregate purchase price of $137.2 million. Upon the sale of the Company’s stock, 7,284,182 shares of convertible founder stock were converted into shares of Series E redeemable convertible preferred stock. The purchase price in this tender offer transaction was in excess of the fair value of such shares at the time of the transaction. As a result, during the year ended December 31, 2020, the Company recorded the excess of the purchase price over fair value of $76.3 million as stock-based compensation expense.

Secondary Sales

In September 2020, a director of the Company sold an aggregate of 2,632,747 shares of the Company’s common stock to entities affiliated with an existing investor at a purchase price of $14.9687 per share for an aggregate purchase price of $39.4 million. Also in September 2020, a director and an employee of the Company sold an aggregate of 2,142,900 shares of the Company’s common stock to entities affiliated with a new investor at a purchase price of $14.00 per share for an aggregate purchase price of $30.0 million. The purchase prices in both of these secondary transactions were in excess of the fair value of such shares. As a result, during the year ended December 31, 2020, the Company recorded the excess of the purchase price over fair value of $35.6 million as stock-based compensation expense.

Income Taxes

12 Months Ended

Dec. 31, 2021

Income Tax Disclosure [Abstract]

Income Taxes

11. Income Taxes

The components of loss before income taxes were as follows (in thousands):


	Year Ended December 31,
	2021			2020			2019
Domestic	$	(347,552	)	$	(234,905	)	$	(97,714	)
Foreign		7,925			4,870			2,667
Loss before income taxes	$	(339,627	)	$	(230,035	)	$	(95,047	)

The components of provision for (benefit from) income taxes were as follows (in thousands):


	Year Ended December 31,
	2021		2020			2019
Current
State	$	251	$	87		$	53
Foreign		1,588		1,041			336
Total		1,839		1,128			389
Deferred
Federal		-		-			(72	)
State		-		-			(11	)
Foreign		1,335		(1,335	)		(311	)
Total		1,335		(1,335	)		(394	)
Provision for (benefit from) income taxes	$	3,174	$	(207	)	$	(5	)

The reconciliation of the income tax benefit computed at the federal statutory tax rate to the Company’s provision for (benefit from) income taxes was as follows (in thousands):


	Year Ended December 31,
	2021			2020			2019
Income tax benefit computed at federal statutory rate	$	(71,322	)	$	(48,307	)	$	(19,960	)
Foreign rate differential		1,214			(1,317	)		(144	)
Stock-based compensation expense		(104,993	)		24,004			1,612
Change in valuation allowance		192,301			27,446			18,958
Research and development credits		(14,483	)		(2,432	)		(1,112	)
Other		457			399			641
Provision for (benefit from) income taxes	$	3,174		$	(207	)	$	(5	)

The significant components of net deferred tax balances were as follows (in thousands):


	December 31,
	2021			2020(1)
Deferred tax assets:
Net operating loss carryforwards	$	277,453		$	72,332
Tax credit carryforwards		30,777			7,386
Stock-based compensation expense		14,885			3,250
Operating lease liabilities		9,398			12,080
Accruals and reserves		6,781			2,627
Deferred revenue		4,095			2,471
Other		3,258			-
Total deferred tax assets		346,647			100,146
Less: Valuation allowance		(316,056	)		(73,809	)
Deferred tax assets, net of valuation allowance		30,591			26,337
Deferred tax liabilities:
Deferred contract acquisition costs	$	(18,783	)	$	(11,670	)
Operating lease right-of-use assets		(8,559	)		(11,471	)
Property and equipment		(2,558	)		(898	)
Other		(214	)		(487	)
Total deferred tax liabilities		(30,114	)		(24,526	)
Net deferred tax assets	$	477		$	1,811

(1) Revised to correct for immaterial adjustments in the disclosure, which had previously understated the net operating loss carryforwards deferred tax asset, accruals and reserves deferred tax asset, and deferred contract acquisition costs deferred tax liability as of December 31, 2020 by $7.2 million, $0.9 million, and $8.1 million, respectively. These adjustments had no impact to the consolidated balance sheets, consolidated statements of operations, or consolidated statements of cash flows as of and for the years ended December 31, 2021, 2020, or 2019. The Company evaluated the effect of the errors on the Company’s notes to the consolidated financial statements in accordance with SEC Staff Accounting Bulletin No. 99, Materiality, and concluded that the adjustments were not material to the previously issued 2020 consolidated financial statements.

The Company recognizes a valuation allowance on its deferred tax assets if it is more likely than not that some or all the deferred tax assets will not be realized. Due to a history of losses in the United States, U.S. deferred tax assets have been fully offset by a valuation allowance. During the year ended December 31, 2021, the Company also recorded a full valuation allowance on its U.K. deferred tax assets. As of December 31, 2021, the valuation allowance of $316.1 million was primarily related to U.S. federal and state and U.K. net operating loss carryforwards and tax credit carryforwards. As of December 31, 2020, the valuation allowance of $73.8 million was primarily related to U.S. federal and state net operating loss carryforwards and tax credit carryforwards. The valuation allowance on the Company’s net deferred tax assets increased by $242.3 million during the year ended December 31, 2021 primarily due to increased U.S. federal and state net operating loss carryforwards and tax credit carryforwards and the establishment of a valuation allowance in the United Kingdom. The valuation allowance increased by $32.6 million and $22.1 million during the years ended December 31, 2020 and 2019, respectively, primarily due to increased U.S. federal and state net operating loss carryforwards and tax credit carryforwards.

Deferred taxes have not been provided for the cumulative undistributed earnings of the Company’s foreign subsidiaries as of December 31, 2021 due to the Company’s intent and ability to permanently reinvest such earnings. The Company has determined that the amount of the unrecognized deferred tax liability related to these earnings is not material.

As of December 31, 2021, the Company had $1,096.7 million of federal net operating loss carryforwards and $559.6 million of state net operating loss carryforwards. Of the federal net operating loss carryforwards, $1,052.6 million can be carried forward indefinitely, but is limited to 80% of annual taxable income. The remaining federal and state net operating loss carryforwards will begin to expire in 2034 and 2025, respectively.

As of December 31, 2021, the Company had U.S. federal and state research tax credit carryforwards of $28.2 million and $13.6 million, respectively. The U.S. federal research tax credit carryforwards will begin to expire in 2034. The U.S. state research tax credit carryforwards will begin to expire in 2026.

As of December 31, 2021, the Company had $59.1 million of foreign net operating loss carryforwards. These foreign net operating loss carryforwards have an indefinite life and do not expire.

Under Section 382 of the Internal Revenue Code of 1986, as amended, and similar provisions of state law, utilization of net operating loss and tax credit carryforwards may be subject to an annual limitation due to an ownership change. As of December 31, 2021, the Company assessed that its net operating loss and tax credit carryforwards will not expire solely due to Section 382 limitations.

A reconciliation of the beginning and ending balances of total unrecognized tax benefits is as follows (in thousands):


	Year Ended December 31,
	2021		2020		2019
Beginning balance	$	3,399	$	1,623	$	796
Gross increase (decrease) for prior year tax positions		192		200		(2	)
Gross increase for current year tax positions		8,939		1,576		829
Ending balance	$	12,530	$	3,399	$	1,623

As of December 31, 2021, the total amount of unrecognized tax benefits, if recognized, would not affect the Company’s effective tax rate due to the existence of carryforwards and the valuation allowance in the United States and applicable U.S. state jurisdictions.

The Company does not expect its gross unrecognized tax benefits to change significantly within the next 12 months. It is reasonably possible that certain unrecognized tax benefits may increase or decrease within the next 12 months due to tax examination changes, settlement activities, or the impact on recognition and measurement considerations related to the results of published tax cases or other similar activities.

The Company recognizes interest and penalties related to uncertain tax positions in benefit from income taxes in the consolidated statements of operations. There were no interest and penalties associated with unrecognized income tax benefits for the years ended December 31, 2021, 2020, and 2019.

The Company’s tax years from inception in 2014 through December 31, 2021 remain subject to examination by various jurisdictions.

- Definition

The entire disclosure for income taxes. Disclosures may include net deferred tax liability or asset recognized in an enterprise's statement of financial position, net change during the year in the total valuation allowance, approximate tax effect of each type of temporary difference and carryforward that gives rise to a significant portion of deferred tax liabilities and deferred tax assets, utilization of a tax carryback, and tax uncertainties information.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 740
-SubTopic 10
-Section 50
-Paragraph 21
-URI http://asc.fasb.org/extlink&oid=121826272&loc=d3e32857-109319

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 740
-SubTopic 10
-Section S99
-Paragraph 2
-Subparagraph (SAB Topic 11.C)
-URI http://asc.fasb.org/extlink&oid=122134291&loc=d3e330215-122817

Reference 3: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 740
-SubTopic 10
-Section 50
-Paragraph 17
-Subparagraph (b)
-URI http://asc.fasb.org/extlink&oid=121826272&loc=d3e32809-109319

Reference 4: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 740
-SubTopic 10
-Section S99
-Paragraph 1
-Subparagraph (SAB TOPIC 6.I.5.Q1)
-URI http://asc.fasb.org/extlink&oid=122134291&loc=d3e330036-122817

Reference 5: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 740
-SubTopic 10
-Section 50
-Paragraph 14
-URI http://asc.fasb.org/extlink&oid=121826272&loc=d3e32705-109319

Reference 6: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 740
-SubTopic 270
-Section 50
-Paragraph 1
-URI http://asc.fasb.org/extlink&oid=6424409&loc=d3e44925-109338

Reference 7: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 740
-URI http://asc.fasb.org/topic&trid=2144680

Reference 8: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 740
-SubTopic 30
-Section 50
-Paragraph 2
-Subparagraph (a)
-URI http://asc.fasb.org/extlink&oid=6424122&loc=d3e41874-109331

Reference 9: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 235
-SubTopic 10
-Section S99
-Paragraph 1
-Subparagraph (SX 210.4-08(h)(2))
-URI http://asc.fasb.org/extlink&oid=120395691&loc=d3e23780-122690

+ Details

Net Loss Per Share

12 Months Ended

Dec. 31, 2021

Earnings Per Share [Abstract]

Net Loss Per Share

12. Net Loss Per Share

For periods in which there were Class A and Class B shares outstanding, the rights, including the liquidation and dividend rights, of the holders of Class A and Class B common stock were identical, except with respect to voting, converting, and transfer rights. As the liquidation and dividend rights were identical for Class A and Class B common stock, the undistributed earnings were allocated on a proportionate basis and the resulting net loss per share would, therefore, be the same for both Class A and Class B common stock on an individual or combined basis.

The following table presents the calculation of basic and diluted net loss per share (in thousands, except share and per share data):


	Year Ended December 31,
	2021			2020						2019
	Class A and Class B Common			Common			Convertible Founder			Common			Convertible Founder
Numerator:
Net loss	$	(342,801	)	$	(219,560	)	$	(10,268	)	$	(87,207	)	$	(7,835	)
Denominator:
Weighted-average shares used to compute net loss per share, basic and diluted		188,627,720			99,562,032			4,656,050			88,147,380			7,920,000
Net loss per share, basic and diluted	$	(1.82	)	$	(2.21	)	$	(2.21	)	$	(0.99	)	$	(0.99	)

The following outstanding potentially dilutive shares were excluded from the computation of diluted net loss per share for the periods presented because the impact of including them would have been anti-dilutive:


	December 31, 2021		December 31, 2020		December 31, 2019
Redeemable convertible preferred stock		-		115,277,850		90,624,091
Stock options		61,926,383		71,213,150		67,586,556
Unvested early exercised stock options		2,164,577		2,338,945		4,510,347
RSUs		6,434,508		-		-
ESPP		1,322,476		-		-
Shares issuable upon conversion of the 2027 Notes		10,992,960		-		-
Total		82,840,904		188,829,945		162,720,994

The Company calculates the potential dilutive effect of its 2027 Notes under the if-converted method. Under this method, diluted net loss per share is determined by assuming that all of the 2027 Notes were converted into shares of the Company’s Class A common stock at the beginning of the reporting period.

In connection with the issuance of the 2027 Notes, the Company entered into Capped Calls, which are not included for purposes of calculating the number of diluted weighted-average shares outstanding, as their effect would have been anti-dilutive. The Capped Calls are expected to partially offset the potential dilution to the Company’s Class A common stock upon any conversion of the 2027 Notes.

Subsequent Events

12 Months Ended

Dec. 31, 2021

Subsequent Events [Abstract]

Subsequent Events

13. Subsequent Events

In January 2022, the Company entered into an amended third-party infrastructure agreement that includes a non-cancelable commitment of $150.0 million over the next five years through January 2027.

Basis of Presentation and Summary of Significant Accounting Policies (Policies)

12 Months Ended

Dec. 31, 2021

Accounting Policies [Abstract]

Basis of Presentation

Use of Estimates

Functional Currency

Cash and Cash Equivalents

Marketable Securities

Restricted Cash

Fair Value of Financial Instruments

•

Level 1 Inputs: Observable inputs such as unadjusted quoted prices in active markets for identical assets or liabilities at the measurement date.

•

Level 3 Inputs: Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities.

Accounts Receivable and Allowance for Doubtful Accounts

Concentration of Risks

Deferred Contract Acquisition Costs

Capitalized Software Costs

Property and Equipment, Net


		Useful Lives
Computers and equipment		3 years
Furniture and fixtures		5 years
Purchased software		3 years
Leasehold improvements		Shorter of the remaining lease term or useful life
Internal-use software		3 years

Leases

Effective January 1, 2020, the consolidated financial statements reflect the adoption of ASC 842, Leases, using the modified retrospective method.

Impairment of Long-Lived Assets

Convertible Senior Notes

Deferred Revenue

Revenue Recognition

(i) identification of the contract with a customer

(ii) identification of the performance obligations in the contract

(iii) measurement of the transaction price

(iv) allocation of the transaction price to the performance obligations;

(v) recognition of revenue when the Company satisfies each performance obligation;

Subscription Revenue

Services Revenue

Cost of Revenue

Cost of Subscription Revenue

Cost of Services Revenue

Research and Development Costs

Advertising Costs

Stock-Based Compensation

Income Taxes

Net Loss Per Share

Segment and Geographic Information

Recent Accounting Pronouncements

Recently Adopted Accounting Pronouncements

Recent Accounting Pronouncements Not Yet Adopted

Basis of Presentation and Summary of Significant Accounting Policies (Tables)

12 Months Ended

Dec. 31, 2021

Accounting Policies [Abstract]

Summary of Useful Life of Property and Equipment

The estimated lives of the Company’s assets are as follows:


		Useful Lives
Computers and equipment		3 years
Furniture and fixtures		5 years
Purchased software		3 years
Leasehold improvements		Shorter of the remaining lease term or useful life
Internal-use software		3 years

Marketable Securities (Tables)

12 Months Ended

Dec. 31, 2021

Investments, Debt and Equity Securities [Abstract]

Schedule of Fair Value and Amortized Cost of Contractual Maturities

The following table summarizes the contractual maturities of the Company’s marketable securities (in thousands):


	December 31, 2021				December 31, 2020
	Amortized Cost		Fair Value		Amortized Cost		Fair Value
Due within one year	$	488,565	$	488,256	$	180,320	$	180,520
Due after one year through five years		152,320		151,829		71,104		71,236
Total	$	640,885	$	640,085	$	251,424	$	251,756

Schedule of Fair Value and Amortized Cost of Marketable Securities

The following tables summarize the fair values of the Company’s marketable securities (in thousands):


	December 31, 2021
	Amortized Cost		Unrealized Gains		Unrealized Losses			Fair Value
U.S. treasury securities	$	446,878	$	-	$	(443	)	$	446,435
Corporate notes and bonds		125,845		5		(246	)		125,604
U.S. agency obligations		54,122		-		(115	)		54,007
Commercial paper		10,995		-		-			10,995
Municipal bonds		3,045		-		(1	)		3,044
Total marketable securities	$	640,885	$	5	$	(805	)	$	640,085


	December 31, 2020
	Amortized Cost		Unrealized Gains		Unrealized Losses			Fair Value
Corporate notes and bonds	$	155,401	$	360	$	(21	)	$	155,740
Commercial paper		63,503		27		(24	)		63,506
U.S. agency obligations		32,520		-		(10	)		32,510
Total marketable securities	$	251,424	$	387	$	(55	)	$	251,756

Fair Value of Financial Instruments (Tables)

12 Months Ended

Dec. 31, 2021

Fair Value Disclosures [Abstract]

Schedule of Fair Value, Assets Measured on Recurring Basis

The following tables summarize the Company’s financial assets that are measured at fair value on a recurring basis (in thousands):


	December 31, 2021
	Level 1		Level 2		Total
Cash equivalents:
U.S. treasury securities	$	-	$	69,999	$	69,999
Money market funds		23,857		-		23,857
Commercial paper		-		4,999		4,999
Marketable securities:
U.S. treasury securities		-		446,435		446,435
Corporate notes and bonds		-		125,604		125,604
U.S. agency obligations		-		54,007		54,007
Commercial paper		-		10,995		10,995
Municipal bonds		-		3,044		3,044
Total	$	23,857	$	715,083	$	738,940


	December 31, 2020
	Level 1		Level 2		Total
Cash equivalents:
Money market funds	$	12,409	$	-	$	12,409
Marketable securities:
Corporate notes and bonds		-		155,740		155,740
Commercial paper		-		63,506		63,506
U.S. agency obligations		-		32,510		32,510
Total	$	12,409	$	251,756	$	264,165

Balance Sheet Components (Tables)

12 Months Ended

Dec. 31, 2021

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Summary of Property and Equipment, Net

The cost and accumulated depreciation and amortization of property and equipment were as follows (in thousands):


	December 31, 2021			December 31, 2020
Computers and equipment	$	4,541		$	2,640
Furniture and fixtures		1,322			1,360
Purchased software		26			26
Leasehold improvements		459			136
Internal-use software		8,024			4,016
Construction in progress		5,140			1,183
Property and equipment, at cost	$	19,512		$	9,361
Less: Accumulated depreciation and amortization		(5,084	)		(2,643	)
Property and equipment, net	$	14,428		$	6,718

Summary of Accrued Expense and Other Liabilities

Accrued expenses and other liabilities consisted of the following (in thousands):


	December 31, 2021		December 31, 2020
Accrued compensation and benefits	$	27,703	$	4,240
Employee contributions under ESPP		19,247		-
Accrued expenses		17,452		7,225
Accrued commissions		13,734		10,189
Accrued payroll taxes		8,681		6,756
Other liabilities		12,157		5,301
Total accrued expenses and other liabilities	$	98,974	$	33,711

Convertible Senior Notes (Tables)

12 Months Ended

Dec. 31, 2021

Convertible Debt [Abstract]

Schedule of Net Carrying Amount of Notes

The net carrying amount of the 2027 Notes was as follows (in thousands):


	December 31, 2021
Principal	$	1,100,000
Unamortized debt issuance costs		(19,299	)
Net carrying amount	$	1,080,701

Commitments and Contingencies (Tables)

12 Months Ended

Dec. 31, 2021

Commitments and Contingencies Disclosure [Abstract]

Schedule of Future Minimum Lease Payments under Non-Cancelable Operating Leases

The Company’s future minimum lease payments under non-cancelable operating leases as of December 31, 2021 were as follows (in thousands):


Year Ending December 31,	Minimum Lease Payments
2022	$	10,480
2023		8,547
2024		8,216
2025		10,463
2026		7,231
Total minimum lease payments		44,937
Less: Imputed interest		(4,056	)
Present value of future minimum lease payments	$	40,881

Schedule of Future Payments under Non-Cancelable Purchase Obligations


Year Ending December 31,	Purchase Obligations
2022	$	71,019
2023		81,775
2024		89,000
2025		114,500
2026		115,000
Total	$	471,294

Stockholders' Equity (Deficit) (Tables)

12 Months Ended

Dec. 31, 2021

Stockholders' Equity Note [Abstract]

Common Stock Reserved for Future Issuance

The Company has reserved the following shares of common stock for future issuance:


	December 31, 2021		December 31, 2020
Series A redeemable convertible preferred stock		-		34,911,252
Series B redeemable convertible preferred stock		-		24,948,780
Series C redeemable convertible preferred stock		-		18,657,756
Series D redeemable convertible preferred stock		-		12,106,303
Series E redeemable convertible preferred stock		-		24,653,759
Convertible founder stock		-		635,818
2014 Stock Plan:
Options outstanding		61,903,883		71,213,150
Restricted stock units outstanding		3,495,540		-
Remaining shares available for future issuance under the 2014 Plan		-		4,722,481
2021 Equity Incentive Plan:
Options outstanding		22,500		-
Restricted stock units outstanding		2,938,968		-
Remaining shares available for future issuance under the 2021 Plan		32,797,245		-
2021 Employee Stock Purchase Plan		5,162,575		-
Total		106,320,711		191,849,299

Summary of Stock Equity Award Activity

The following table summarizes stock equity award activity and activity regarding shares available for grant under the 2014 Plan and the 2021 Plan:


				Equity Awards Outstanding
	Shares Available for Grant			Outstanding Stock Options			Weighted-Average Exercise Price		Weighted-Average Remaining Contractual Term (in years)		Aggregate Intrinsic Value (in thousands)
Balance as of January 1, 2019		5,645,652			48,361,074		$	1.12		8.71	$	98,241
Increase in authorized shares		23,873,281			-		$	-
Stock options granted		(32,867,335	)		32,867,335		$	3.24
Stock options exercised		-			(9,228,205	)	$	1.47
Stock options forfeited or expired		4,413,648			(4,413,648	)	$	1.78
Repurchases of unvested common stock		167,628			-		$	-
Balance as of December 31, 2019		1,232,874			67,586,556		$	2.06		8.54	$	202,315
Increase in authorized shares		17,927,565			-		$	-
Stock options granted		(22,829,471	)		22,829,471		$	6.20
Stock options exercised		-			(10,865,786	)	$	1.58
Stock options forfeited or expired		8,337,091			(8,337,091	)	$	2.65
Repurchases of unvested common stock		54,422			-		$	-
Balance as of December 31, 2020		4,722,481			71,213,150		$	3.39		8.26	$	677,503
Increase in authorized shares		48,412,876			-		$	-
Stock options granted		(17,232,871	)		17,232,871		$	16.38
Stock options exercised		-			(22,730,337	)	$	3.13
Stock options forfeited or expired		3,789,301			(3,789,301	)	$	5.31
Repurchases of unvested common stock		188,460			-		$	-
RSUs granted		(7,215,043	)		-		$	-
RSUs forfeited or cancelled		132,041			-		$	-
Balance as of December 31, 2021		32,797,245			61,926,383		$	6.97		7.88	$	4,289,643
Vested as of December 31, 2021					22,294,417		$	3.25		6.88	$	1,627,213
Vested and expected to vest as of December 31, 2021					61,926,383		$	6.97		7.88	$	4,289,643

Schedule of Restricted Stock Unit Activity

The following table summarizes RSU activity under the 2014 Plan and the 2021 Plan:


	Number of Shares			Weighted-Average Grant Date Fair Value
Unvested balances as of January 1, 2021		-		$	-
RSUs granted		7,215,043		$	44.87
RSUs vested		(648,494	)	$	34.25
RSUs forfeited or cancelled		(132,041	)	$	41.51
Unvested balances as of December 31, 2021		6,434,508		$	46.01

The total grant-date fair value of RSUs vested was $22.2 million during the year ended December 31, 2021.

Schedule of Weighted-Average Assumptions to Estimate Fair Value of Stock Options

The fair value of stock options granted was estimated on the date of grant using the Black-Scholes option-pricing model with the following weighted-average assumptions:


	Year Ended December 31,
	2021			2020			2019
Expected term (in years)		6.17			6.17			6.04
Expected volatility		66.3	%		68.3	%		59.0	%
Risk-free interest rate		1.1	%		0.5	%		1.8	%
Expected dividend yield		0	%		0	%		0	%

Schedule of Weighted-Average Assumptions to Estimate Fair Value of Employee Stock Purchase Rights


	Year Ended December 31, 2021
Expected term (in years)	0.63 - 1.12
Expected volatility	54.6% - 56.7%
Risk-free interest rate	0.1%
Expected dividend yield	0%

Summary of Stock-Based Compensation Expense

Total stock-based compensation expense was as follows (in thousands):


	Year Ended December 31,
	2021		2020		2019
Cost of revenue - subscription	$	12,571	$	2,572	$	1,161
Cost of revenue - services		5,418		1,745		994
Research and development		49,051		33,755		6,268
Sales and marketing		55,506		14,734		6,545
General and administrative		33,078		90,535		3,649
Stock-based compensation, net of amounts capitalized	$	155,624	$	143,341	$	18,617
Capitalized stock-based compensation		2,625		547		69
Total stock-based compensation	$	158,249	$	143,888	$	18,686

Income Taxes (Tables)

12 Months Ended

Dec. 31, 2021

Income Tax Disclosure [Abstract]

Schedule of Components of Loss Before Income Taxes

The components of loss before income taxes were as follows (in thousands):


	Year Ended December 31,
	2021			2020			2019
Domestic	$	(347,552	)	$	(234,905	)	$	(97,714	)
Foreign		7,925			4,870			2,667
Loss before income taxes	$	(339,627	)	$	(230,035	)	$	(95,047	)

Schedule of Components of Income Tax Expense (Benefit)

The components of provision for (benefit from) income taxes were as follows (in thousands):


	Year Ended December 31,
	2021		2020			2019
Current
State	$	251	$	87		$	53
Foreign		1,588		1,041			336
Total		1,839		1,128			389
Deferred
Federal		-		-			(72	)
State		-		-			(11	)
Foreign		1,335		(1,335	)		(311	)
Total		1,335		(1,335	)		(394	)
Provision for (benefit from) income taxes	$	3,174	$	(207	)	$	(5	)

Schedule of Reconciliation of Income Tax Benefit Activity

The reconciliation of the income tax benefit computed at the federal statutory tax rate to the Company’s provision for (benefit from) income taxes was as follows (in thousands):


	Year Ended December 31,
	2021			2020			2019
Income tax benefit computed at federal statutory rate	$	(71,322	)	$	(48,307	)	$	(19,960	)
Foreign rate differential		1,214			(1,317	)		(144	)
Stock-based compensation expense		(104,993	)		24,004			1,612
Change in valuation allowance		192,301			27,446			18,958
Research and development credits		(14,483	)		(2,432	)		(1,112	)
Other		457			399			641
Provision for (benefit from) income taxes	$	3,174		$	(207	)	$	(5	)

Components of net deferred tax balance

The significant components of net deferred tax balances were as follows (in thousands):


	December 31,
	2021			2020(1)
Deferred tax assets:
Net operating loss carryforwards	$	277,453		$	72,332
Tax credit carryforwards		30,777			7,386
Stock-based compensation expense		14,885			3,250
Operating lease liabilities		9,398			12,080
Accruals and reserves		6,781			2,627
Deferred revenue		4,095			2,471
Other		3,258			-
Total deferred tax assets		346,647			100,146
Less: Valuation allowance		(316,056	)		(73,809	)
Deferred tax assets, net of valuation allowance		30,591			26,337
Deferred tax liabilities:
Deferred contract acquisition costs	$	(18,783	)	$	(11,670	)
Operating lease right-of-use assets		(8,559	)		(11,471	)
Property and equipment		(2,558	)		(898	)
Other		(214	)		(487	)
Total deferred tax liabilities		(30,114	)		(24,526	)
Net deferred tax assets	$	477		$	1,811

Schedule of reconciliation of unrecognized tax benefits

A reconciliation of the beginning and ending balances of total unrecognized tax benefits is as follows (in thousands):


	Year Ended December 31,
	2021		2020		2019
Beginning balance	$	3,399	$	1,623	$	796
Gross increase (decrease) for prior year tax positions		192		200		(2	)
Gross increase for current year tax positions		8,939		1,576		829
Ending balance	$	12,530	$	3,399	$	1,623

Revenue (Tables)

12 Months Ended

Dec. 31, 2021

Revenue from Contract with Customer [Abstract]

Summary of Revenue Disaggregated by Geographic Markets

The following table sets forth revenue disaggregated by geographic markets based on the location of the customer and by subscription and service categories (dollars in thousands):


	Year Ended December 31,
	2021				2020				2019
Geographic markets:
United States	$	246,676	64	%	$	156,104	66	%	$	101,709	68	%
International		141,188	36	%		80,473	34	%		48,096	32	%
Total revenue	$	387,864	100	%	$	236,577	100	%	$	149,805	100	%
Subscriptions and services:
Confluent Platform - License	$	69,183	18	%	$	49,043	21	%	$	37,094	25	%
Confluent Platform - PCS		183,737	47	%		128,178	54	%		78,664	52	%
Confluent Cloud		94,179	24	%		31,412	13	%		14,448	10	%
Subscription		347,099	89	%		208,633	88	%		130,206	87	%
Services		40,765	11	%		27,944	12	%		19,599	13	%
Total revenue	$	387,864	100	%	$	236,577	100	%	$	149,805	100	%

Other than the United States, no individual country represented 10% or more of total revenue during the years ended December 31, 2021, 2020, and 2019.

Schedule of Activity of Deferred Contract Acquisition Costs

The following table summarizes the activity of deferred contract acquisition costs (in thousands):


	Year Ended December 31,
	2021			2020
Beginning balance	$	47,599		$	25,499
Capitalization of contract acquisition costs		57,922			38,129
Amortization of deferred contract acquisition costs		(26,697	)		(16,029	)
Ending balance	$	78,824		$	47,599

Redeemable Convertible Preferred Stock (Tables)

12 Months Ended

Dec. 31, 2021

Temporary Equity Disclosure [Abstract]

Summary of Redeemable Convertible Preferred Stock Outstanding

Redeemable convertible preferred stock outstanding as of December 31, 2020 consisted of the following (in thousands, except share and per share data):


Redeemable Convertible Preferred Stock	Shares Authorized		Shares Issued and Outstanding		Issuance Price Per Share		Carrying Amount		Aggregate Liquidation Preference
Series A		34,911,252		34,911,252	$	0.20050825	$	6,945	$	7,000
Series B		24,948,780		24,948,780		0.963975		23,981		24,050
Series C		18,657,756		18,657,756		2.67985		49,927		50,000
Series D		12,106,303		12,106,303		10.3252		124,931		125,000
Series E		24,653,759		24,653,759		14.9687		368,850		369,035
Total		115,277,850		115,277,850			$	574,634	$	575,085

Net Loss Per Share (Tables)

12 Months Ended

Dec. 31, 2021

Earnings Per Share [Abstract]

Schedule of Calculation of Basic and Diluted Net Loss Per Share Attributable to Class A and Class B Stockholders

The following table presents the calculation of basic and diluted net loss per share (in thousands, except share and per share data):


	Year Ended December 31,
	2021			2020						2019
	Class A and Class B Common			Common			Convertible Founder			Common			Convertible Founder
Numerator:
Net loss	$	(342,801	)	$	(219,560	)	$	(10,268	)	$	(87,207	)	$	(7,835	)
Denominator:
Weighted-average shares used to compute net loss per share, basic and diluted		188,627,720			99,562,032			4,656,050			88,147,380			7,920,000
Net loss per share, basic and diluted	$	(1.82	)	$	(2.21	)	$	(2.21	)	$	(0.99	)	$	(0.99	)

Schedule of Antidilutive Securities Excluded from Diluted Income (Loss) per Share


	December 31, 2021		December 31, 2020		December 31, 2019
Redeemable convertible preferred stock		-		115,277,850		90,624,091
Stock options		61,926,383		71,213,150		67,586,556
Unvested early exercised stock options		2,164,577		2,338,945		4,510,347
RSUs		6,434,508		-		-
ESPP		1,322,476		-		-
Shares issuable upon conversion of the 2027 Notes		10,992,960		-		-
Total		82,840,904		188,829,945		162,720,994

Organization and Description of Business - Additional Information (Details) - USD ($) $ / shares in Units, $ in Thousands	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Class Of Stock [Line Items]
Proceeds from initial public offering, net of underwriting discounts and commissions	$ 786,600	$ 0	$ 0
Deferred Offering Costs		$ 100
IPO
Class Of Stock [Line Items]
Deferred offering costs, net of reimbursement received from the underwriters	$ 3,400
Class A Common Stock [Member] \| IPO
Class Of Stock [Line Items]
Number of new stock issued during the period	23,000,000
Shares issued, price per share	$ 36.00
Redeemable Convertible Preferred Stock \| IPO
Class Of Stock [Line Items]
Conversion Basis	equal
Convertible preferred stock, shares issued upon conversion	115,277,850
Convertible Founder Stock [Member]
Class Of Stock [Line Items]
Convertible preferred stock, shares issued upon conversion	(635,818)
Convertible Founder Stock [Member] \| IPO
Class Of Stock [Line Items]
Conversion Basis	equal
Convertible preferred stock, shares issued upon conversion	635,818

Basis of Presentation and Summary of Significant Accounting Policies (Additional Information) (Details)	12 Months Ended
	Dec. 31, 2021 USD ($) Segment	Dec. 31, 2020 USD ($) Segment	Dec. 31, 2019 USD ($)
Net foreign exchange gain losses	$ 0	$ 0	$ 0
Other-than-temporary impairment	0	0	0
Unbilled accounts receivables	32,300,000	17,600,000
Allowance for doubtful accounts	0	0	0
Additions to doubtful accounts	0	0	0
Write-offs against the allowance for doubtful accounts	0	0	0
Impairment of deferred contract acquisition costs	0	0	0
Gain (loss) on retirement of assets	0	0	0
Impairment of long lived assets	0	0	0
Advertisement cost	$ 26,700,000	$ 10,900,000	8,400,000
Share based arrangement vesting period, years	4 years
Number of operating segment \| Segment	1
Number of reportable segment \| Segment		1
Capitalized Software Costs [Member]
Capitalized software development costs	$ 0
Finite lived intangible assets useful life, years	3 years
Impairment of capitalized internal use software	$ 0	$ 0	$ 0
No Customer [Member] \| Gross Account Receivable [Member] \| Major Customers [Member]
Percentage of Revenue	10.00%	10.00%
No Customer [Member] \| Revenue [Member] \| Major Customers [Member]
Percentage of Revenue	10.00%	10.00%	10.00%
Performance Based Vesting Condition [Member]
Share based arrangement vesting period, years	4 years

Basis of Presentation and Summary of Significant Accounting Policies - Summary of Useful Life of Property and Equipment, Net (Details)	12 Months Ended
	Dec. 31, 2021
Computer Equipment [Member]
Property Plant And Equipment [Line Items]
Useful life of Property and equipment, years	3 years
Furniture and Fixtures [Member]
Property Plant And Equipment [Line Items]
Useful life of Property and equipment, years	5 years
Purchased Software [Member]
Property Plant And Equipment [Line Items]
Useful life of Property and equipment, years	3 years
Internal Use Software [Member]
Property Plant And Equipment [Line Items]
Useful life of Property and equipment, years	3 years

Marketable Securities - Schedule of Fair Value and Amortized Cost of Marketable Securities (Details) - USD ($) $ in Thousands	Dec. 31, 2021	Dec. 31, 2020
Marketable Securities [Line Items]
Amortized Cost	$ 640,885	$ 251,424
Unrealized Gains	5	387
Unrealized Losses	(805)	(55)
Fair Value	640,085	251,756
U.S. agency obligations [Member]
Marketable Securities [Line Items]
Amortized Cost	54,122	32,520
Unrealized Gains	0	0
Unrealized Losses	(115)	(10)
Fair Value	54,007	32,510
U.S. treasury securities [Member]
Marketable Securities [Line Items]
Amortized Cost	446,878
Unrealized Gains	0
Unrealized Losses	(443)
Fair Value	446,435
Municipal bonds [Member]
Marketable Securities [Line Items]
Amortized Cost	3,045
Unrealized Gains	0
Unrealized Losses	(1)
Fair Value	3,044
Corporate notes and bonds [Member]
Marketable Securities [Line Items]
Amortized Cost	125,845	155,401
Unrealized Gains	5	360
Unrealized Losses	(246)	(21)
Fair Value	125,604	155,740
Commercial paper [Member]
Marketable Securities [Line Items]
Amortized Cost	10,995	63,503
Unrealized Gains	0	27
Unrealized Losses	0	(24)
Fair Value	$ 10,995	$ 63,506

Marketable Securities - Additional Information (Details) - USD ($) $ in Thousands	Dec. 31, 2021	Dec. 31, 2020
Investments, Debt and Equity Securities [Abstract]
Available-for-sale securities, continuous unrealized loss position, fair value	$ 618,300	$ 91,500
Available-for-sale securities, continuous unrealized loss position, twelve months or longer, fair value	$ 0	$ 0

Marketable Securities - Schedule of Fair Value of Contractual Maturities (Details) - USD ($) $ in Thousands	Dec. 31, 2021	Dec. 31, 2020
Investments, Debt and Equity Securities [Abstract]
Due within one year	$ 488,565	$ 180,320
Due after one year through five years	152,320	71,104
Amortized Cost	640,885	251,424
Due within one year, fair value	488,256	180,520
Due after one year through five years, fair value	151,829	71,236
Fair Value	$ 640,085	$ 251,756

Fair Value of Financial Instruments - Financial Assets Measured at Fair Value on Recurring Basis (Details) - USD ($) $ in Thousands	Dec. 31, 2021	Dec. 31, 2020
Marketable securities:
Fair value, Marketable securities	$ 640,085	$ 251,756
Municipal bonds [Member]
Marketable securities:
Fair value, Marketable securities	3,044
Fair Value, Measurements, Recurring [Member]
Cash equivalents and Marketable securities:
Assets, Fair Value	738,940	264,165
Fair Value, Measurements, Recurring [Member] \| Municipal bonds [Member]
Marketable securities:
Fair value, Marketable securities	3,044
Fair Value, Measurements, Recurring [Member] \| Corporate Notes and Bonds [Member]
Marketable securities:
Fair value, Marketable securities	125,604	155,740
Fair Value, Measurements, Recurring [Member] \| Commercial Paper [Member]
Cash equivalents:
Fair value, Cash equivalents	4,999
Marketable securities:
Fair value, Marketable securities	10,995	63,506
Fair Value, Measurements, Recurring [Member] \| U.S. Agency Obligations [Member]
Marketable securities:
Fair value, Marketable securities	54,007	32,510
Fair Value, Measurements, Recurring [Member] \| U.S. Treasury Securities [Member]
Cash equivalents:
Fair value, Cash equivalents	69,999
Marketable securities:
Fair value, Marketable securities	446,435
Fair Value, Measurements, Recurring [Member] \| Money Market Funds [Member]
Cash equivalents:
Fair value, Cash equivalents	23,857	12,409
Fair Value, Measurements, Recurring [Member] \| Level 1 [Member]
Cash equivalents and Marketable securities:
Assets, Fair Value	23,857	12,409
Fair Value, Measurements, Recurring [Member] \| Level 1 [Member] \| Municipal bonds [Member]
Marketable securities:
Fair value, Marketable securities	0
Fair Value, Measurements, Recurring [Member] \| Level 1 [Member] \| Corporate Notes and Bonds [Member]
Marketable securities:
Fair value, Marketable securities	0	0
Fair Value, Measurements, Recurring [Member] \| Level 1 [Member] \| Commercial Paper [Member]
Cash equivalents:
Fair value, Cash equivalents	0
Marketable securities:
Fair value, Marketable securities	0	0
Fair Value, Measurements, Recurring [Member] \| Level 1 [Member] \| U.S. Agency Obligations [Member]
Marketable securities:
Fair value, Marketable securities	0	0
Fair Value, Measurements, Recurring [Member] \| Level 1 [Member] \| U.S. Treasury Securities [Member]
Cash equivalents:
Fair value, Cash equivalents	0
Marketable securities:
Fair value, Marketable securities	0
Fair Value, Measurements, Recurring [Member] \| Level 1 [Member] \| Money Market Funds [Member]
Cash equivalents:
Fair value, Cash equivalents	23,857	12,409
Fair Value, Measurements, Recurring [Member] \| Level 2 [Member]
Cash equivalents and Marketable securities:
Assets, Fair Value	715,083	251,756
Fair Value, Measurements, Recurring [Member] \| Level 2 [Member] \| Municipal bonds [Member]
Marketable securities:
Fair value, Marketable securities	3,044
Fair Value, Measurements, Recurring [Member] \| Level 2 [Member] \| Corporate Notes and Bonds [Member]
Marketable securities:
Fair value, Marketable securities	125,604	155,740
Fair Value, Measurements, Recurring [Member] \| Level 2 [Member] \| Commercial Paper [Member]
Cash equivalents:
Fair value, Cash equivalents	4,999
Marketable securities:
Fair value, Marketable securities	10,995	63,506
Fair Value, Measurements, Recurring [Member] \| Level 2 [Member] \| U.S. Agency Obligations [Member]
Marketable securities:
Fair value, Marketable securities	54,007	32,510
Fair Value, Measurements, Recurring [Member] \| Level 2 [Member] \| U.S. Treasury Securities [Member]
Cash equivalents:
Fair value, Cash equivalents	69,999
Marketable securities:
Fair value, Marketable securities	446,435
Fair Value, Measurements, Recurring [Member] \| Level 2 [Member] \| Money Market Funds [Member]
Cash equivalents:
Fair value, Cash equivalents	$ 0	$ 0

Fair Value of Financial Instruments - Additional Information (Details) $ in Millions	Dec. 31, 2021 USD ($)
Zero Percentage Convertible senior notes due 2027
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total estimated fair value of the 2027 Notes	$ 1,206.7

Balance Sheet Components - Summary of Property and Equipment, Net (Details) - USD ($) $ in Thousands	Dec. 31, 2021	Dec. 31, 2020
Property Plant And Equipment [Line Items]
Property and equipment, gross	$ 19,512	$ 9,361
Less: Accumulated depreciation and amortization	(5,084)	(2,643)
Property and equipment, net	14,428	6,718
Computers and Equipment [Member]
Property Plant And Equipment [Line Items]
Property and equipment, gross	4,541	2,640
Furniture And Fixtures [Member]
Property Plant And Equipment [Line Items]
Property and equipment, gross	1,322	1,360
Software [Member]
Property Plant And Equipment [Line Items]
Property and equipment, gross	26	26
Leasehold Improvements [Member]
Property Plant And Equipment [Line Items]
Property and equipment, gross	459	136
Internal-use Software [Member]
Property Plant And Equipment [Line Items]
Property and equipment, gross	8,024	4,016
Construction in Progress [Member]
Property Plant And Equipment [Line Items]
Property and equipment, gross	$ 5,140	$ 1,183

Balance Sheet Components - Additional Information (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Property, Plant and Equipment [Abstract]
Depreciation and amortization	$ 3,632	$ 1,567	$ 1,202

Balance Sheet Components - Summary of Accrued Expense and Other Liabilities (Details) - USD ($) $ in Thousands	Dec. 31, 2021	Dec. 31, 2020
Payables and Accruals [Abstract]
Accrued compensation and benefits	$ 27,703	$ 4,240
Employee contributions under ESPP	19,247	0
Accrued expenses	17,452	7,225
Accrued commissions	13,734	10,189
Accrued payroll taxes	8,681	6,756
Other liabilities	12,157	5,301
Total accrued expenses and other liabilities	$ 98,974	$ 33,711

Convertible Senior Notes - Additional information (Details) $ / shares in Units, shares in Millions	12 Months Ended
	Dec. 31, 2021 USD ($) d $ / shares shares	Dec. 31, 2020 USD ($)	Dec. 31, 2019 USD ($)
Debt Instrument [Line Items]
Debt instrument net proceed after discounts and cost	$ 1,081,300,000	$ 0	$ 0
Amortization of debt issuance costs	187,000	0	0
Payments for purchase of capped calls	90,970,000	$ 0	$ 0
Zero Percentage Convertible senior notes due 2027
Debt Instrument [Line Items]
Debt Instrument Face Amount	1,100,000,000
Debt Instrument Convertible Conversion Ratio Denominator	$ 1,000
Debt Instrument, Interest Rate, Stated Percentage	0.00%
Debt instrument net proceed after discounts and cost	$ 1,080,500,000
Number of trading days \| d	30
Percentage of principal amount of debt redeemed	100.00%
Debt Issuance Costs, Gross	$ 19,500,000
Effective interest rate of debt	0.35%
Debt instrument percentage price	130.00%
Zero Percentage Convertible senior notes due 2027 \| Common Stock Subject to Mandatory Redemption [Member]
Debt Instrument [Line Items]
Debt Instrument Face Amount	$ 100,000,000.0
Zero Percentage Convertible senior notes due 2027 \| Common Class A [Member]
Debt Instrument [Line Items]
Convertible debt, conversion ratio	9.9936
Debt Instrument, Convertible, Conversion Price \| $ / shares	$ 100.06
Zero Percentage Convertible senior notes due 2027 \| Maximum [Member]
Debt Instrument [Line Items]
Debt Instrument Face Amount	$ 100,000,000.0
Debt instrument percentage price	98.00%
Zero Percentage Convertible senior notes due 2027 \| Minimum [Member]
Debt Instrument [Line Items]
Number of trading days \| d	20
Zero Percentage Convertible senior notes due 2027 \| Capped Calls [Member]
Debt Instrument [Line Items]
Initial strike price \| $ / shares	$ 100.06
Initial cap price \| $ / shares	$ 138.02
Payments for purchase of capped calls	$ 91,000,000.0
Zero Percentage Convertible senior notes due 2027 \| Capped Calls [Member] \| Common Class A [Member]
Debt Instrument [Line Items]
Adjustment to anti-dilution common stock \| shares	11.0

Convertible Senior Notes - Schedule of net carrying amount of notes (Details) $ in Thousands	Dec. 31, 2021 USD ($)
Long-term Debt, Unclassified [Abstract]
Principal	$ 1,100,000
Unamortized debt issuance costs	19,299
Net carrying amount	$ 1,080,701

- Definition

Amount, after unamortized (discount) premium and debt issuance costs, of long-term debt. Includes, but not limited to, notes payable, bonds payable, debentures, mortgage loans and commercial paper. Excludes capital lease obligations.

+ References + Details

Convertible Senior Notes - Schedule of interest expense related to notes (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Amortization [Abstract]
Amortization of Debt Issuance Costs	$ 187	$ 0	$ 0

Commitments and Contingencies - Additional Information (Details) - USD ($)	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Lessee Lease Description [Line Items]
Lessee, Operating Lease, Option to Terminate	an option to terminate the lease early within three years of lease termination
Sublease Income	$ 2,700,000	$ 2,900,000	$ 200
Lease expenses	$ 10,200,000	$ 10,800,000	8,600,000
Weighted average remaining life of operating leases	4 years 6 months	5 years 2 months 12 days
Weighted-average discount rate of operating leases	4.10%	4.00%
CALIFORNIA [Member]
Lessee Lease Description [Line Items]
Letters of Credit Outstanding, Amount			$ 8,200,000
Maximum [Member]
Lessee Lease Description [Line Items]
Lessee, Operating Lease, Renewal Term	3 years

Commitments and Contingencies - Schedule of Future Minimum Lease Payments under Non-Cancelable Operating Leases (Details) $ in Thousands	Dec. 31, 2021 USD ($)
Commitments and Contingencies Disclosure [Abstract]
2022	$ 10,480
2023	8,547
2024	8,216
2025	10,463
2026	7,231
Total minimum lease payments	44,937
Less: Imputed interest	(4,056)
Present value of future minimum lease payments	$ 40,881

Commitments and Contingencies - Schedule of Future Payments under Non-Cancelable Purchase Obligations (Details) $ in Thousands	Dec. 31, 2021 USD ($)
Commitments and Contingencies Disclosure [Abstract]
2022	$ 71,019
2023	81,775
2024	89,000
2025	114,500
2026	115,000
Purchase Obligation, Total	$ 471,294

Revenue - Summary of Revenue Disaggregated by Geographic Markets (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Disaggregation Of Revenue [Line Items]
Total revenue	$ 387,864	$ 236,577	$ 149,805
Revenue Benchmark [Member] \| Geographic Concentration Risk [Member] \| Major Customers [Member]
Disaggregation Of Revenue [Line Items]
Percentage of Revenue	100.00%	100.00%	100.00%
Revenue Benchmark [Member] \| Subscription and Service Concentration Risk [Member] \| Major Customers [Member]
Disaggregation Of Revenue [Line Items]
Percentage of Revenue	100.00%		100.00%
United States [Member]
Disaggregation Of Revenue [Line Items]
Total revenue	$ 246,676	$ 156,104	$ 101,709
United States [Member] \| Revenue Benchmark [Member] \| Geographic Concentration Risk [Member]
Disaggregation Of Revenue [Line Items]
Percentage of Revenue	64.00%	66.00%	68.00%
International [Member]
Disaggregation Of Revenue [Line Items]
Total revenue	$ 141,188	$ 80,473	$ 48,096
International [Member] \| Revenue Benchmark [Member] \| Geographic Concentration Risk [Member]
Disaggregation Of Revenue [Line Items]
Percentage of Revenue	36.00%	34.00%	32.00%
License [Member]
Disaggregation Of Revenue [Line Items]
Total revenue	$ 69,183	$ 49,043	$ 37,094
License [Member] \| Revenue Benchmark [Member] \| Subscription and Service Concentration Risk [Member]
Disaggregation Of Revenue [Line Items]
Percentage of Revenue	18.00%	21.00%	25.00%
Post Contract Customer Support [Member]
Disaggregation Of Revenue [Line Items]
Total revenue	$ 183,737	$ 128,178	$ 78,664
Post Contract Customer Support [Member] \| Revenue Benchmark [Member] \| Subscription and Service Concentration Risk [Member]
Disaggregation Of Revenue [Line Items]
Percentage of Revenue	47.00%	54.00%	52.00%
Confluent Cloud [Member]
Disaggregation Of Revenue [Line Items]
Total revenue	$ 94,179	$ 31,412	$ 14,448
Confluent Cloud [Member] \| Revenue Benchmark [Member] \| Subscription and Service Concentration Risk [Member]
Disaggregation Of Revenue [Line Items]
Percentage of Revenue	24.00%	13.00%	10.00%
Subscription [Member]
Disaggregation Of Revenue [Line Items]
Total revenue	$ 347,099	$ 208,633	$ 130,206
Subscription [Member] \| Revenue Benchmark [Member] \| Subscription and Service Concentration Risk [Member]
Disaggregation Of Revenue [Line Items]
Percentage of Revenue	89.00%	88.00%	87.00%
Services [Member]
Disaggregation Of Revenue [Line Items]
Total revenue	$ 40,765	$ 27,944	$ 19,599
Services [Member] \| Revenue Benchmark [Member] \| Subscription and Service Concentration Risk [Member]
Disaggregation Of Revenue [Line Items]
Percentage of Revenue	11.00%	12.00%	13.00%

Revenue - Additional Information (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Disaggregation Of Revenue [Line Items]
Revenue, remaining performance obligation, amount	$ 500.6
Revenue, remaining performance obligation, percentage	64.00%
Deferred revenue	$ 246.5	$ 159.2
Revenue recognized from deferred revenue	$ 141.7	$ 83.4	$ 44.2

Revenue - Schedule of Activity of Deferred Contract Acquisition Costs (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Revenue from Contract with Customer [Abstract]
Beginning balance	$ 47,599	$ 25,499
Capitalization of contract acquisition costs	57,922	38,129
Amortization of deferred contract acquisition costs	(26,697)	(16,029)	$ (8,864)
Ending balance	$ 78,824	$ 47,599	$ 25,499

Redeemable Convertible Preferred Stock - Additional Information (Details) - USD ($) $ / shares in Units, $ in Thousands	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018
Class of Stock [Line Items]
Redeemable Convertible Preferred Stock, Shares Issued	0	115,277,850
Redeemable Convertible Preferred Stock, Shares Outstanding	0	115,277,850
Dividends payable	$ 0	$ 0	$ 0
IPO \| Minimum
Class of Stock [Line Items]
Cash Proceeds to the Company	$ 80,000
Class B Common Stock
Class of Stock [Line Items]
Convertible Preferred Stock, Shares Issued upon Conversion	115,277,850
Conversion of redeemable convertible preferred and founder stock to Class B common stock upon initial public offering	$ 574,600
Series A Preferred Stock
Class of Stock [Line Items]
Redeemable Convertible Preferred Stock, Shares Issued		34,911,252
Redeemable Convertible Preferred Stock, Shares Outstanding		34,911,252
Redeemable Convertible Preferred Stock, Liquidation Preference Per Share	$ 0.20050825
Temporary Equity, Redemption Price Per Share	0.20050825	$ 0.20050825
Dividends Payable, Amount Per Share	0.01605
Redeemable Convertible Preferred Stock, Redemption Price Per Share	0.20050825	$ 0.20050825
Series B Preferred Stock
Class of Stock [Line Items]
Redeemable Convertible Preferred Stock, Shares Issued		24,948,780
Redeemable Convertible Preferred Stock, Shares Outstanding		24,948,780
Temporary Equity, Redemption Price Per Share	0.963975	$ 0.963975
Dividends Payable, Amount Per Share	0.077125
Redeemable Convertible Preferred Stock, Redemption Price Per Share	0.963975	$ 0.963975
Series C Preferred Stock
Class of Stock [Line Items]
Redeemable Convertible Preferred Stock, Shares Issued		18,657,756
Redeemable Convertible Preferred Stock, Shares Outstanding		18,657,756
Temporary Equity, Redemption Price Per Share	2.67985	$ 2.67985
Dividends Payable, Amount Per Share	0.2144
Redeemable Convertible Preferred Stock, Redemption Price Per Share	2.67985	$ 2.67985
Series D Preferred Stock
Class of Stock [Line Items]
Redeemable Convertible Preferred Stock, Shares Issued		12,106,303
Redeemable Convertible Preferred Stock, Shares Outstanding		12,106,303
Temporary Equity, Redemption Price Per Share	10.3252	$ 10.3252
Dividends Payable, Amount Per Share	0.826016
Redeemable Convertible Preferred Stock, Redemption Price Per Share	10.3252	$ 10.3252
Series E Preferred Stock
Class of Stock [Line Items]
Convertible founder stock (in shares)		7,284,182
redeemable convertible preferred stock, Par Value		$ 259,800
Redeemable Convertible Preferred Stock, Shares Issued		24,653,759
Temporary Equity, Stock Issued During Period, Shares, New Issues		17,369,577
Redeemable Convertible Preferred Stock, Shares Outstanding		24,653,759
Redeemable Convertible Preferred Stock, Liquidation Preference Per Share	14.9687
Temporary Equity, Redemption Price Per Share	14.9687	$ 14.9687
Dividends Payable, Amount Per Share	1.197496
Redeemable Convertible Preferred Stock, Redemption Price Per Share	$ 14.9687	$ 14.9687
Redeemable Convertible Preferred Stock
Class of Stock [Line Items]
Convertible founder stock (in shares)		7,284,182
redeemable convertible preferred stock, Par Value		$ 259,815
Conversion of redeemable convertible preferred and founder stock to Class B common stock upon initial public offering	$ (574,634)
Temporary Equity, Stock Issued During Period, Shares, New Issues		17,369,577
Redeemable Convertible Preferred Stock, Shares Outstanding		115,277,850	90,624,091	90,624,091

Redeemable Convertible Preferred Stock - Summary of Redeemable convertible preferred stock outstanding (Details) - USD ($)	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2021
Temporary Equity [Line Items]
Redeemable Convertible Preferred Stock, Shares Authorized	115,277,850	0
Redeemable Convertible Preferred Stock, Shares Issued	115,277,850	0
Redeemable Convertible Preferred Stock, Shares Outstanding	115,277,850	0
Redeemable Convertible Preferred Stock, Carrying Amount	$ 574,634,000
Redeemable Convertible Preferred Stock, Liquidation Preference	$ 575,085,000	$ 0
Series A Redeemable Convertible Preferred Stock
Temporary Equity [Line Items]
Redeemable Convertible Preferred Stock, Shares Authorized	34,911,252
Redeemable Convertible Preferred Stock, Shares Issued	34,911,252
Redeemable Convertible Preferred Stock, Shares Outstanding	34,911,252
Redeemable Convertible Preferred Stock, Redemption Price Per Share	$ 0.20050825	$ 0.20050825
Redeemable Convertible Preferred Stock, Carrying Amount	$ 6,945,000
Redeemable Convertible Preferred Stock, Liquidation Preference	$ 7,000,000
Series B Redeemable Convertible Preferred Stock
Temporary Equity [Line Items]
Redeemable Convertible Preferred Stock, Shares Authorized	24,948,780
Redeemable Convertible Preferred Stock, Shares Issued	24,948,780
Redeemable Convertible Preferred Stock, Shares Outstanding	24,948,780
Redeemable Convertible Preferred Stock, Redemption Price Per Share	$ 0.963975	0.963975
Redeemable Convertible Preferred Stock, Carrying Amount	$ 23,981,000
Redeemable Convertible Preferred Stock, Liquidation Preference	$ 24,050,000
Series C Redeemable Convertible Preferred Stock
Temporary Equity [Line Items]
Redeemable Convertible Preferred Stock, Shares Authorized	18,657,756
Redeemable Convertible Preferred Stock, Shares Issued	18,657,756
Redeemable Convertible Preferred Stock, Shares Outstanding	18,657,756
Redeemable Convertible Preferred Stock, Redemption Price Per Share	$ 2.67985	2.67985
Redeemable Convertible Preferred Stock, Carrying Amount	$ 49,927,000
Redeemable Convertible Preferred Stock, Liquidation Preference	$ 50,000,000
Series D Redeemable Convertible Preferred Stock
Temporary Equity [Line Items]
Redeemable Convertible Preferred Stock, Shares Authorized	12,106,303
Redeemable Convertible Preferred Stock, Shares Issued	12,106,303
Redeemable Convertible Preferred Stock, Shares Outstanding	12,106,303
Redeemable Convertible Preferred Stock, Redemption Price Per Share	$ 10.3252	10.3252
Redeemable Convertible Preferred Stock, Carrying Amount	$ 124,931,000
Redeemable Convertible Preferred Stock, Liquidation Preference	$ 125,000,000
Series E Redeemable Convertible Preferred Stock
Temporary Equity [Line Items]
Redeemable Convertible Preferred Stock, Shares Authorized	24,653,759
Redeemable Convertible Preferred Stock, Shares Issued	24,653,759
Redeemable Convertible Preferred Stock, Shares Outstanding	24,653,759
Redeemable Convertible Preferred Stock, Redemption Price Per Share	$ 14.9687	$ 14.9687
Redeemable Convertible Preferred Stock, Carrying Amount	$ 368,850,000
Redeemable Convertible Preferred Stock, Liquidation Preference	$ 369,035,000

Stockholders' Equity (Deficit) - Additional Information (Details) $ / shares in Units, $ in Thousands	1 Months Ended			12 Months Ended
	Jun. 30, 2021 shares	Sep. 30, 2020 USD ($) $ / shares shares	Jul. 31, 2020 USD ($) $ / shares shares	Dec. 31, 2021 USD ($) Vote $ / shares shares	Dec. 31, 2020 USD ($) $ / shares shares	Dec. 31, 2019 USD ($) $ / shares	Dec. 31, 2014 $ / shares shares	Jun. 24, 2021 shares
Class Of Stock [Line Items]
Preferred Stock, Shares Authorized				10,000,000	0
Preferred Stock, Par or Stated Value Per Share \| $ / shares				$ 0.00001	$ 0.00001
Common Stock, Shares Authorized				0	323,000,000
Conversion, percent threshold				10.00%
Redeemable Convertible Preferred Stock, Shares Outstanding				0	115,277,850
Redeemable Convertible Preferred Stock, Shares Issued				0	115,277,850
Common stock charitable donation expense \| $				$ 13,290	$ 0	$ 0
Common Stock, Par Value \| $ / shares				$ 0.00001	$ 0.00001
Common stock reserved for issuance (in shares)				106,320,711	191,849,299
Intrinsic value of options exercised \| $				$ 976,500	$ 60,800	$ 16,300
Weighted average grant date fair value per share of options granted \| $ / shares				$ 12.43	$ 4.43	$ 1.80
Grant-date fair value of stock options vested \| $				$ 63,600	$ 29,200	$ 15,400
Shares early exercised and repurchase				2,164,577	2,338,945
Liabilities for early exercise of unvested stock options and other liabilities \| $				$ 15,800	$ 6,900
Stock based compensation expense \| $				155,624	$ 143,341	$ 18,617
Cumulative stock-based compensation expense \| $				$ 3,800
Expected dividend yield				0.00%	0.00%	0.00%
Unrecognized stock-based compensation expense \| $				$ 518,700
Unrecognized stock-based compensation expense, weighted-average period				3 years 2 months 12 days
Common Stock [Member]
Class Of Stock [Line Items]
Common stock shares issued to founders							71,280,000
Stock received after stock split							23,760,000
Tender Offer [Member]
Class Of Stock [Line Items]
Stock based compensation expense \| $					$ 76,300
Shares issued, price per share \| $ / shares			$ 14.9687
Aggregate purchase price of stock issued \| $			$ 137,200
Tender Offer [Member] \| Common Stock [Member]
Class Of Stock [Line Items]
Number of shares sold in transaction			1,883,233
Secondary Sales [Member]
Class Of Stock [Line Items]
Stock based compensation expense \| $					$ 35,600
Secondary Sales [Member] \| Director [Member]
Class Of Stock [Line Items]
Number of shares sold in transaction		2,632,747
Shares issued, price per share \| $ / shares		$ 14.9687
Aggregate purchase price of stock issued \| $		$ 39,400
Secondary Sales [Member] \| Director And Employee [Member]
Class Of Stock [Line Items]
Number of shares sold in transaction		2,142,900
Shares issued, price per share \| $ / shares		$ 14.00
Aggregate purchase price of stock issued \| $		$ 30,000
Convertible Founder Stock [Member]
Class Of Stock [Line Items]
Convertible Founder Stock, Shares Outstanding				0	635,818			635,818
Convertible Founder Stock, Shares Issued				0	635,818		7,920,000
Stock received after stock split							2,640,000
Convertible founder stock (in shares)			7,284,182		(7,284,182)
Common Stock, Par Value \| $ / shares							$ 0.00001
Convertible Founder Stock [Member] \| Tender Offer [Member]
Class Of Stock [Line Items]
Convertible founder stock (in shares)			7,284,182
Common Class A [Member]
Class Of Stock [Line Items]
Common Stock, Shares Authorized				1,000,000,000	0
Common stock, voting rights, votes per share \| Vote				1
Number of new stock issued during the period	250,000
Common stock charitable donation expense \| $				$ 13,290
Common Stock, Par Value \| $ / shares				$ 0.00001	$ 0.00001
Common Class B [Member]
Class Of Stock [Line Items]
Common Stock, Shares Authorized				500,000,000	0
Common stock, voting rights, votes per share \| Vote				10
Common Stock, Par Value \| $ / shares				$ 0.00001	$ 0.00001
Convertible preferred stock, shares issued upon conversion				115,277,850
Series E Preferred Stock
Class Of Stock [Line Items]
Redeemable Convertible Preferred Stock, Shares Outstanding					24,653,759
Redeemable Convertible Preferred Stock, Shares Issued					24,653,759
Convertible founder stock (in shares)					7,284,182
Series E Redeemable Convertible Preferred Stock [Member] \| Tender Offer [Member]
Class Of Stock [Line Items]
Convertible founder stock (in shares)			7,284,182
2021 Plan [Member] \| Common Class A [Member]
Class Of Stock [Line Items]
Common stock reserved for issuance (in shares)				25,812,876
2021 Employee Stock Purchase Plan [Member]
Class Of Stock [Line Items]
Common stock reserved for issuance (in shares)				5,162,575	0
Expected dividend yield				0.00%
2021 Employee Stock Purchase Plan [Member] \| Common Class A [Member]
Class Of Stock [Line Items]
Common stock reserved for issuance (in shares)				5,162,575
Purchase price of common stock expressed as a percentage of its fair value				85.00%
Performance Based Vesting Condition [Member]
Class Of Stock [Line Items]
Performance options, shares				2,875,255	2,875,255
Service Based Vesting Condition [Member]
Class Of Stock [Line Items]
Performance options, shares				2,875,255	2,875,255
Restricted Stock Units (RSUs) [Member]
Class Of Stock [Line Items]
Requisite period of common stock				4 years
Total grant-date fair value of RSUs vested \| $				$ 22,200
Service based vesting period				4 years
Stock based compensation expense \| $				$ 6,800

Stockholders' Equity (Deficit) - Common Stock Reserved for Future Issuance (Details) - shares	Dec. 31, 2021	Dec. 31, 2020
Class Of Stock [Line Items]
Common stock reserved for issuance (in shares)	106,320,711	191,849,299
2021 Equity Incentive Plan [Member]
Class Of Stock [Line Items]
Common stock reserved for issuance (in shares)	32,797,245	0
2021 Equity Incentive Plan [Member] \| Stock Options [Member]
Class Of Stock [Line Items]
Common stock reserved for issuance (in shares)	22,500	0
2021 Equity Incentive Plan [Member] \| RSUs [Member]
Class Of Stock [Line Items]
Common stock reserved for issuance (in shares)	2,938,968	0
Equity Incentives Plan 20214 [Member]
Class Of Stock [Line Items]
Common stock reserved for issuance (in shares)	0	4,722,481
Equity Incentives Plan 20214 [Member] \| Stock Options [Member]
Class Of Stock [Line Items]
Common stock reserved for issuance (in shares)	61,903,883	71,213,150
Equity Incentives Plan 20214 [Member] \| RSUs [Member]
Class Of Stock [Line Items]
Common stock reserved for issuance (in shares)	3,495,540	0
2021 Employee Stock Purchase Plan [Member]
Class Of Stock [Line Items]
Common stock reserved for issuance (in shares)	5,162,575	0
Convertible Founder Stock [Member]
Class Of Stock [Line Items]
Convertible founder stock (in shares)	0	635,818
Series A Redeemable Convertible Preferred Stock [Member]
Class Of Stock [Line Items]
Convertible preferred stock reserved for issuance (in shares)	0	34,911,252
Series B Redeemable Convertible Preferred Stock [Member]
Class Of Stock [Line Items]
Convertible preferred stock reserved for issuance (in shares)	0	24,948,780
Series C Redeemable Convertible Preferred Stock [Member]
Class Of Stock [Line Items]
Convertible preferred stock reserved for issuance (in shares)	0	18,657,756
Series D Redeemable Convertible Preferred Stock [Member]
Class Of Stock [Line Items]
Convertible preferred stock reserved for issuance (in shares)	0	12,106,303
Series E Redeemable Convertible Preferred Stock [Member]
Class Of Stock [Line Items]
Convertible preferred stock reserved for issuance (in shares)	0	24,653,759

Stockholders' Equity (Deficit) - Summary of Stock Equity Award Activity (Details) - USD ($) $ / shares in Units, $ in Thousands		12 Months Ended
	Dec. 31, 2018	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Share-based Payment Arrangement [Abstract]
Shares Available for Grant, Beginning Balance		4,722,481	1,232,874	5,645,652
Shares Available for Grant, Increase in authorized shares		48,412,876	17,927,565	23,873,281
Shares Available for Grant, Stock options granted		(17,232,871)	(22,829,471)	(32,867,335)
Shares Available for Grant, Stock options forfeited or expired		3,789,301	8,337,091	4,413,648
Shares Available for Grant, Repurchases of unvested common stock		188,460	54,422	167,628
Shares Available for Grant, RSUs granted		(7,215,043)
Shares Available for Grant, RSUs Forfeited or Cancelled		132,041
Shares Available for Grant, Ending Balance	5,645,652	32,797,245	4,722,481	1,232,874
Outstanding Stock Options, Beginning Balance		71,213,150	67,586,556	48,361,074
Outstanding Stock Options, Stock options granted		17,232,871	22,829,471	32,867,335
Outstanding Stock Options, Stock options exercised		(22,730,337)	(10,865,786)	(9,228,205)
Outstanding Stock Options, Stock options forfeited or expired		(3,789,301)	(8,337,091)	(4,413,648)
Outstanding Stock Options, Ending Balance	48,361,074	61,926,383	71,213,150	67,586,556
Outstanding Stock Options, Vested		22,294,417
Outstanding Stock Options, Vested and expected to vest		61,926,383
Weighted-Average Exercise Price, Beginning Balance		$ 3.39	$ 2.06	$ 1.12
Weighted-Average Exercise Price, Stock options granted		16.38	6.20	3.24
Weighted-Average Exercise Price, Stock options exercised		3.13	1.58	1.47
Weighted-Average Exercise Price, Stock options forfeited		5.31	2.65	1.78
Weighted-Average Exercise Price, Ending Balance	$ 1.12	6.97	$ 3.39	$ 2.06
Weighted-Average Exercise Price, Vested		3.25
Weighted-Average Exercise Price, Vested and Expected to Vest		$ 6.97
Weighted-Average Remaining Contractual Term (in years)	8 years 8 months 15 days	7 years 10 months 17 days	8 years 3 months 3 days	8 years 6 months 14 days
Weighted-Average Remaining Contractual Term Vested (in years)		6 years 10 months 17 days
Weighted-Average Remaining Contractual Term Vested and expected to vest (in years)		7 years 10 months 17 days
Aggregate Intrinsic Value, Beginning Balance		$ 677,503	$ 202,315	$ 98,241
Aggregate Intrinsic Value, Ending Balance	$ 98,241	4,289,643	$ 677,503	$ 202,315
Aggregate Intrinsic Value, Vested as of September 30, 2021		1,627,213
Aggregate Intrinsic Value, Vested and expected to vest as of September 30, 2021		$ 4,289,643

Stockholders' Equity (Deficit) - Schedule of Restricted Stock Unit Activity (Details) - Restricted Stock Units (RSUs) [Member]	12 Months Ended
	Dec. 31, 2021 $ / shares shares
Share-based Compensation Arrangement by Share-based Payment Award, Non-Option Equity Instruments, Outstanding [Roll Forward]
Number of Shares, Beginning Balance \| shares	0
Number of Shares, RSUs granted \| shares	7,215,043
Number of Shares, RSUs vested \| shares	(648,494)
Number of Shares, RSUs forfeited \| shares	(132,041)
Number of Shares, Ending Balance \| shares	6,434,508
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value [Abstract]
Weighted-average grant date fair value, Beginning Balance (in dollars per share) \| $ / shares	$ 0
Weighted-average grant date fair value, RSUs granted (in dollars per share) \| $ / shares	44.87
Weighted-average grant date fair value, RSUs vested (in dollars per share) \| $ / shares	34.25
Weighted-average grant date fair value, RSUs forfeited (in dollars per share) \| $ / shares	41.51
Weighted-average grant date fair value, Ending Balance (in dollars per share) \| $ / shares	$ 46.01

Stockholders' Equity (Deficit) - Schedule of Weighted-Average Assumptions to Estimate Fair Value of Stock Options (Details)	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Share-based Payment Arrangement [Abstract]
Expected term (in years)	6 years 2 months 1 day	6 years 2 months 1 day	6 years 14 days
Expected volatility	66.30%	68.30%	59.00%
Risk-free interest rate	1.10%	0.50%	1.80%
Expected dividend yield	0.00%	0.00%	0.00%

Stockholders' Equity (Deficit) - Schedule of Weighted-Average Assumptions to Estimate Fair Value of Employee Stock Purchase Rights (Details)	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Class of Stock [Line Items]
Expected term (in years)	6 years 2 months 1 day	6 years 2 months 1 day	6 years 14 days
Risk-free interest rate	1.10%	0.50%	1.80%
Expected dividend yield	0.00%	0.00%	0.00%
2021 Employee Stock Purchase Plan [Member]
Class of Stock [Line Items]
Expected volatility, minimum	54.60%
Expected volatility, maximum	56.70%
Risk-free interest rate	0.10%
Expected dividend yield	0.00%
2021 Employee Stock Purchase Plan [Member] \| Maximum [Member]
Class of Stock [Line Items]
Expected term (in years)	1 year 1 month 13 days
2021 Employee Stock Purchase Plan [Member] \| Minimum [Member]
Class of Stock [Line Items]
Expected term (in years)	7 months 17 days

Stockholders' Equity (Deficit) - Summary of stock-based compensation expense (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Stock-based compensation, net of amounts capitalized	$ 155,624	$ 143,341	$ 18,617
Capitalized stock-based compensation	2,625	547	69
Total stock-based compensation	158,249	143,888	18,686
Cost Of Revenue [Member] \| Subscription [Member]
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Stock-based compensation, net of amounts capitalized	12,571	2,572	1,161
Cost Of Revenue [Member] \| Services [Member]
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Stock-based compensation, net of amounts capitalized	5,418	1,745	994
Research and Development [Member]
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Stock-based compensation, net of amounts capitalized	49,051	33,755	6,268
Sales and Marketing [Member]
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Stock-based compensation, net of amounts capitalized	55,506	14,734	6,545
General and Administrative [Member]
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Stock-based compensation, net of amounts capitalized	$ 33,078	$ 90,535	$ 3,649

Income Taxes - Schedule of Components of Loss Before Income Taxes (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Income Tax Disclosure [Abstract]
Domestic	$ 347,552	$ (234,905)	$ (97,714)
Foreign	7,925	4,870	2,667
Loss before income taxes	$ (339,627)	$ (230,035)	$ (95,047)

- Definition

Amount of income (loss) from continuing operations, including income (loss) from equity method investments, before deduction of income tax expense (benefit), and income (loss) attributable to noncontrolling interest.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 32
-Subparagraph (c)
-URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e8933-108599

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 30
-Subparagraph (b)
-URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e8906-108599

Reference 3: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 32
-Subparagraph (f)
-URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e8933-108599

Reference 4: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 940
-SubTopic 20
-Section 25
-Paragraph 1
-URI http://asc.fasb.org/extlink&oid=123384075&loc=d3e41242-110953

Reference 5: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 22
-URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e8736-108599

Reference 6: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 220
-SubTopic 10
-Section S99
-Paragraph 2
-Subparagraph (SX 210.5-03(10))
-URI http://asc.fasb.org/extlink&oid=123367319&loc=SL114868664-224227

Reference 7: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 944
-SubTopic 220
-Section S99
-Paragraph 1
-Subparagraph (SX 210.7-04(8))
-URI http://asc.fasb.org/extlink&oid=120400993&loc=SL114874131-224263

Reference 8: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 942
-SubTopic 235
-Section S99
-Paragraph 1
-Subparagraph (SX 210.9-05(b)(2))
-URI http://asc.fasb.org/extlink&oid=120399901&loc=d3e537907-122884

Reference 9: http://www.xbrl.org/2003/role/exampleRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 31
-URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e8924-108599

Reference 10: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 942
-SubTopic 220
-Section S99
-Paragraph 1
-Subparagraph (SX 210.9-04(15))
-URI http://asc.fasb.org/extlink&oid=120399700&loc=SL114874048-224260

+ Details

Income Taxes - Schedule of Components of Income Tax Expense (Benefit) (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Income Tax Disclosure [Abstract]
Current state provision for (benefit from) income taxes	$ 251	$ 87	$ 53
Current foreign provision for (benefit from) income taxes	1,588	1,041	336
Current provision for (benefit from) income taxes	1,839	1,128	389
Deferred federal provision for (benefit from) income taxes	0	0	(72)
Deferred state provision for (benefit from) income taxes	0	0	(11)
Deferred foreign provision for (benefit from) income taxes	1,335	(1,335)	(311)
Deferred provision for (benefit from) income taxes	1,335	(1,335)	(394)
Provision for (benefit from) income taxes	$ 3,174	$ (207)	$ (5)

- Definition

Amount of current income tax expense (benefit) and deferred income tax expense (benefit) pertaining to continuing operations.

+ References + Details

Income Taxes - Schedule of reconciliation of income tax benefit (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Income Tax Disclosure [Abstract]
Income tax benefit computed at federal statutory rate	$ 71,322	$ (48,307)	$ (19,960)
Foreign rate differential	1,214	(1,317)	(144)
Stock-based compensation expense	104,993	24,004	1,612
Change in valuation allowance	192,301	27,446	18,958
Research and development credits	(14,483)	(2,432)	(1,112)
Other	457	399	641
Provision for (benefit from) income taxes	$ 3,174	$ (207)	$ (5)

- Definition

Amount of current income tax expense (benefit) and deferred income tax expense (benefit) pertaining to continuing operations.

+ References + Details

Income Taxes - Schedule of components of deferred tax assets and liabilities (Details) - USD ($)
$ in Thousands

Dec. 31, 2021

Dec. 31, 2020

^[1]

Deferred tax assets:

Net operating loss carryforwards

$ 277,453

$ 72,332

Deferred Tax Assets, Tax Credit Carryforwards

30,777

7,386

Stock-based compensation expense

14,885

3,250

Operating lease liabilities

9,398

12,080

Deferred revenue

4,095

2,471

Accruals and reserves

6,781

2,627

Other

3,258

Total deferred tax assets

346,647

100,146

Less: Valuation allowance

(316,056)

(73,809)

Deferred tax assets, net of valuation allowance

30,591

26,337

Deferred tax liabilities:

Operating lease right-of-use assets

8,559

11,471

Deferred contract acquisition costs

18,783

11,670

Property and equipment

(2,558)

(898)

Other

214

487

Total deferred tax liabilities

(30,114)

(24,526)

Deferred Tax Assets, Net, Total

$ 477

$ 1,811

[1]

Revised to correct for immaterial adjustments in the disclosure, which had previously understated the net operating loss carryforwards deferred tax asset, accruals and reserves deferred tax asset, and deferred contract acquisition costs deferred tax liability as of December 31, 2020 by $7.2 million, $0.9 million, and $8.1 million, respectively. These adjustments had no impact to the consolidated balance sheets, consolidated statements of operations, or consolidated statements of cash flows as of and for the years ended December 31, 2021, 2020, or 2019. The Company evaluated the effect of the errors on the Company’s notes to the consolidated financial statements in accordance with SEC Staff Accounting Bulletin No. 99, Materiality, and concluded that the adjustments were not material to the previously issued 2020 consolidated financial statements.

Income Taxes - Schedule of components of deferred tax assets and liabilities (Parenthetical) (Details) $ in Millions	Dec. 31, 2020 USD ($)
Income Tax Disclosure [Abstract]
Net operating loss carryforwards deferred tax asset	$ 7.2
Accruals and reserves deferred tax asset	0.9
Deferred contract acquisition costs deferred tax liability	$ 8.1

Income Taxes - Schedule of Reconciliation of Income Tax Benefit Activity (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Income Tax Disclosure [Abstract]
Beginning balance	$ 3,399	$ 1,623	$ 796
Gross increase (decrease) for prior year tax positions	192	200
Gross increase (decrease) for prior year tax positions			(2)
Gross increase for current year tax positions	8,939	1,576	829
Ending balance	$ 12,530	$ 3,399	$ 1,623

Income Taxes - Additional Information (Details) - USD ($)

12 Months Ended

Dec. 31, 2021

Dec. 31, 2020

Dec. 31, 2019

Dec. 31, 2018

Income Taxes [Line Items]

Provision for (benefit from) income taxes

$ 3,174,000

$ (207,000)

$ (5,000)

Unrecognized tax benefits

12,530,000

3,399,000

1,623,000

$ 796,000

Valuation allowance

316,056,000

73,809,000

^[1]

Increase in valuation allowance

242,300,000

32,600,000

22,100,000

Income tax interest and penalties

$ 0

Net operating loss carryforwards

277,453,000

$ 72,332,000

^[1]

Foreign net operating loss carryforwards

59,100,000

Federal [Member]

Income Taxes [Line Items]

Federal NOLs carryover

1,096,700,000

Net operating loss carryforrwards

1,096,700,000

Research tax credit carryforwards

28,200,000

State [Member]

Income Taxes [Line Items]

Federal NOLs carryover

559,600

Net operating loss carryforrwards

559,600

Research tax credit carryforwards

$ 13,600,000

[1]

Net Loss Per Share - Schedule of Calculation of Basic and Diluted Net Loss Per Share (Details) - USD ($) $ / shares in Units, $ in Thousands	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Numerator:
Net loss	$ (342,801)	$ (229,828)	$ (95,042)
Denominator:
Weighted-average shares used to compute net loss per share , basic and diluted	188,627,720	104,218,082	96,067,380
Earnings Per Share, Basic and Diluted	$ (1.82)	$ (2.21)	$ (0.99)
Class A and Class B [Member]
Numerator:
Net loss	$ 342,801
Denominator:
Weighted-average shares used to compute net loss per share , basic and diluted	188,627,720
Earnings Per Share, Basic and Diluted	$ (1.82)
Common Stock [Member]
Numerator:
Net loss		$ (219,560)	$ (87,207)
Denominator:
Weighted-average shares used to compute net loss per share , basic and diluted		99,562,032	88,147,380
Earnings Per Share, Basic and Diluted		$ (2.21)	$ (0.99)
Convertible Founder Stock [Member]
Numerator:
Net loss		$ (10,268)	$ (7,835)
Denominator:
Weighted-average shares used to compute net loss per share , basic and diluted		4,656,050	7,920,000
Earnings Per Share, Basic and Diluted		$ (2.21)	$ (0.99)

- Definition

The portion of profit or loss for the period, net of income taxes, which is attributable to the parent.

+ References

+ Details

Net Loss Per Share - Schedule of Antidilutive Securities Excluded From Computation of Dilutied Net Loss Per Share (Details) - shares	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items]
Antidilutive securities excluded from computation of earnings per share amount	82,840,904	188,829,945	162,720,994
Redeemable Convertible Preferred Stock [Member]
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items]
Antidilutive securities excluded from computation of earnings per share amount		115,277,850	90,624,091
Stock Option [Member]
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items]
Antidilutive securities excluded from computation of earnings per share amount	61,926,383	71,213,150	67,586,556
Unvested Early Exercised Stock Options [Member]
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items]
Antidilutive securities excluded from computation of earnings per share amount	2,164,577	2,338,945	4,510,347
RSUs [Member]
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items]
Antidilutive securities excluded from computation of earnings per share amount	6,434,508
ESPP [Member]
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items]
Antidilutive securities excluded from computation of earnings per share amount	1,322,476
Shares Issuable Upon Conversion Of The 2027 Notes
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items]
Antidilutive securities excluded from computation of earnings per share amount	10,992,960

Subsequent Events - Additional Information (Details) - USD ($) $ in Thousands	1 Months Ended
	Jan. 31, 2022	Dec. 31, 2021
Subsequent Event [Line Items]
Non-cancelable commitment		$ 471,294
Subsequent Event
Subsequent Event [Line Items]
Non-cancelable commitment	$ 150,000
Subsequent event, description	In January 2022, the Company entered into an amended third-party infrastructure agreement that includes a non-cancelable commitment of $150.0 million over the next five years through January 2027.