0000950170-24-018036 | 10-K | XBRL Viewer

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Stockholders' Equity - Summary of stock-based compensation expense (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2021
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Stock-based compensation, net of amounts capitalized	$ 349,833	$ 277,656	$ 155,624
Capitalized stock-based compensation	17,943	7,544	2,625
Total stock-based compensation	367,776	285,200	158,249
Cost Of Revenue [Member] \| Subscription [Member]
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Stock-based compensation, net of amounts capitalized	25,620	23,136	12,571
Cost Of Revenue [Member] \| Services [Member]
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Stock-based compensation, net of amounts capitalized	11,096	9,253	5,418
Research and Development [Member]
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Stock-based compensation, net of amounts capitalized	139,809	101,499	49,051
Sales and Marketing [Member]
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Stock-based compensation, net of amounts capitalized	124,568	99,366	55,506
General and Administrative [Member]
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Stock-based compensation, net of amounts capitalized	$ 48,740	$ 44,402	$ 33,078

Balance Sheet Components - Summary of Property and Equipment, Net (Details) - USD ($) $ in Thousands	Dec. 31, 2023	Dec. 31, 2022
Property Plant And Equipment [Line Items]
Property and equipment, gross	$ 79,426	$ 41,272
Less: Accumulated depreciation and amortization	(25,414)	(12,183)
Property and equipment, net	54,012	29,089
Computers, Equipment, and Software [Member]
Property Plant And Equipment [Line Items]
Property and equipment, gross	11,300	8,794
Furniture and Fixtures [Member]
Property Plant And Equipment [Line Items]
Property and equipment, gross	916	977
Leasehold Improvements [Member]
Property Plant And Equipment [Line Items]
Property and equipment, gross	380	458
Capitalized Internal-Use Software Costs [Member]
Property Plant And Equipment [Line Items]
Property and equipment, gross	38,999	25,639
Construction in Progress Capitalized Internal Use Software Costs [Member]
Property Plant And Equipment [Line Items]
Property and equipment, gross	$ 27,831	$ 5,404

Basis of Presentation and Summary of Significant Accounting Policies

12 Months Ended

Dec. 31, 2023

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 accordance 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.

Reclassifications

Certain amounts in the prior year consolidated financial statements have been reclassified to conform to the presentation of the current year consolidated financial statements. These reclassifications had no effect on consolidated net loss, stockholders’ equity, or cash flows as previously reported.

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 initial public offering (“IPO”) in June 2021, the fair value of acquired intangible assets, 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 global macroeconomic conditions, 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 losses were not material for the years ended December 31, 2023 and 2021 and $2.5 million for the year ended December 31, 2022.

Cash and Cash Equivalents

The Company considers all highly liquid investments, including money market funds, U.S. treasury securities, U.S. agency obligations, 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, and U.S. treasury securities. 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 recorded at fair value each reporting period, and 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.

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. Unrealized gains are reported as a separate component of accumulated other comprehensive income (loss) on the consolidated balance sheets until realized.

For available-for-sale debt securities in an unrealized loss position, the Company first assesses whether it intends to sell the security or it is more likely than not that the Company will be required to sell the security before the recovery of its entire amortized cost basis. If either of these criteria is met, the security’s amortized cost basis is written down to fair value through other income (expense), net in the consolidated statements of operations. If neither of these criteria is met, the Company evaluates whether the decline in fair value below amortized cost is due to credit or non-credit related factors. In making this assessment, the Company considers the extent to which fair value is less than amortized cost, any changes to the rating of the security by a rating agency, and any adverse conditions specifically related to the security, among other factors. Credit related unrealized losses are recognized as an allowance for expected credit losses of available-for-sale debt securities on the consolidated balance sheets with a corresponding charge in other income (expense), net in the consolidated statements of operations. Non-credit related unrealized losses are included in accumulated other comprehensive income (loss).

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, derivative instruments, and convertible senior notes. Cash equivalents and 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 derivative instruments and convertible senior notes.

Accounts Receivable and Allowance for Credit Losses

Accounts receivable on the consolidated balance sheets consists of trade accounts receivable and unbilled receivables, net of an allowance for expected credit losses. 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 $64.2 million and $51.3 million as of December 31, 2023 and 2022, respectively.

Accounts receivable are reduced by an allowance for expected credit losses. The allowance for expected credits losses represents the best estimate of lifetime expected credit losses against the existing accounts receivable, inclusive of unbilled receivables, based on certain factors including the age of the receivable balance, past collection experience with the customer, historical write-off experience, credit quality of the customer, current economic conditions, and reasonable and supportable forecasts of future economic conditions. Accounts receivable deemed uncollectible are written off against the allowance for expected credit losses when identified and the Company no longer actively pursues collection of the receivable. The Company’s allowance for expected credit losses was not material as of December 31, 2023 and 2022. Additions to and write-offs against the allowance for expected credit losses were not material for the years ended December 31, 2023, 2022, and 2021.

Derivative Instruments and Hedging

The Company enters into foreign currency forward contracts with certain financial institutions to mitigate the impact of foreign currency fluctuations on future cash flows and earnings. Derivative instruments that hedge the exposure to variability in expected future cash flows are designated as cash flow hedges. The Company records changes in the fair value of these derivatives as a component of accumulated other comprehensive income (loss) (“AOCI”) and subsequently reclassifies the related gains or losses into cost of revenue or operating expense in the same period, or periods, during which the hedged transaction affects earnings. The Company evaluates the effectiveness of its cash flow hedges on a quarterly basis and does not exclude any component of the changes in fair value of the derivative instruments for effectiveness testing purposes. The Company classifies cash flows related to its cash flow hedges as operating activities in its consolidated statements of cash flows.

Derivative instruments that hedge the exposure to variability in the fair value of assets or liabilities or hedge monetary assets and liabilities denominated in certain foreign currencies are not designated as hedges for financial reporting purposes. The Company records changes in the fair value of these derivatives in other income (expense), net in the consolidated statements of operations. The Company classifies cash flows related to these derivatives as operating activities in its consolidated statements of cash flows.

The Company has master netting agreements with each of its counterparties, which permit net settlement of multiple, separate derivative contracts with a single payment. The Company does not have collateral requirements with any of its counterparties. Although the Company is allowed to present the fair value of derivative instruments on a net basis according to master netting arrangements, the Company has elected to present its derivative instruments on a gross basis in the consolidated financial statements. The Company’s derivative instruments generally have maturities of 13 months or less. The Company does not use derivative instruments for trading or speculative purposes.

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, accounts receivable, and derivative instruments. 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 expected credit losses on customers’ accounts when deemed necessary. The Company mitigates its counterparty credit risk related to derivative instruments by transacting with major financial institutions with high credit ratings.

No customer represented 10% or greater of total revenue for the years ended December 31, 2023, 2022, and 2021. No customer represented 10% or greater of gross accounts receivable as of December 31, 2023 and 2022.

Deferred Contract Acquisition Costs

The Company capitalizes incremental costs of obtaining a contract with a customer if such costs are recoverable. Such costs primarily consist of sales commissions earned by the Company’s sales force and the associated payroll taxes. 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, 2023, 2022, and 2021.

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 three to five 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, 2023, 2022, and 2021.

Property and Equipment, Net

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


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

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.

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, 2023, 2022, and 2021.

Leases

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.

Business Combinations

When the Company acquires a business, the purchase consideration is allocated to the tangible and intangible assets acquired and liabilities assumed at their estimated acquisition date fair values. The excess of the purchase consideration over the fair value of assets acquired and liabilities assumed, if any, is recorded as goodwill. Determining the fair value of intangible assets requires the use of estimates including, but not limited to, the selection of valuation methodologies, time and resources required to recreate the assets acquired, and selection of comparable companies. The Company’s estimates of fair value are based upon assumptions believed to be reasonable, but which are inherently uncertain and unpredictable and, as a result, actual results may differ from estimates. During the measurement period, which may be up to one year from the acquisition date, the Company may record adjustments to the fair values of assets acquired and liabilities assumed, with the corresponding offset to goodwill. Upon the conclusion of the measurement period, any subsequent adjustments are recorded in the condensed consolidated statement of operations.

Impairment of Goodwill, Intangible Assets, and Other Long-Lived Assets

The Company evaluates the recoverability of long-lived assets, including property and equipment, operating lease right-of-use assets, and acquired intangible 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 undiscounted future cash flows the assets are expected to generate. If the carrying amount exceeds the undiscounted future cash flows, 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, 2023, 2022, and 2021.

Goodwill is not amortized but rather tested for impairment at least annually in the fourth quarter or whenever events or changes in circumstances indicate that the carrying value may not be recoverable. Goodwill impairment is recognized when the quantitative assessment results in the carrying value of the reporting unit exceeding its fair value, in which case an impairment charge is recorded to the extent the carrying value exceeds the fair value, limited to the amount of goodwill. There were no goodwill impairment charges during year ended December 31, 2023.

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 statements 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 typically annually in advance or monthly in arrears for its SaaS offering. Typical payment terms range from net 30 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 commitment contract on a month-to-month basis, which the Company refers to as pay-as-you-go, or under a usage-based commitment contract of at least one year in duration, in which customers commit to a fixed monetary amount at specified per-usage rates. Revenue from the Company’s pay-as-you-go arrangements was an immaterial portion of subscription revenue during the years ended December 31, 2023, 2022, and 2021. 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, 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. Where applicable, the Company also identifies material rights as performance obligations. 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 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 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 may be 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 commitment contracts and pay-as-you-go arrangements, 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.

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 acquired intangible assets, 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 consultants and partners who supplement our services delivery team, 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 offering, 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 $27.7 million, $28.7 million, and $26.7 million, for the years ended December 31, 2023, 2022, and 2021, 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. The fair value of each RSU is based on the fair value of the Company’s common stock on the date of grant.

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 two to four years. For awards with both a service-based and a performance-based vesting condition, stock-based compensation expense is recognized using the accelerated attribution method over the requisite service period, from the time it is probable that the vesting condition will be met through the time the service-based vesting condition has been achieved. 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 using the two-class method required for companies with participating securities. The Company considers unvested common stock, and prior to the automatic conversion of all of its outstanding redeemable convertible preferred stock into Class B common stock in connection with its IPO, all series of its redeemable convertible preferred 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, excluding unvested common stock that is subject to repurchase. Basic and diluted net loss per share were the same for the years ended December 31, 2023, 2022, and 2021, as the inclusion of all potentially dilutive shares was anti-dilutive due to the net loss reported for each period.

The rights, including the liquidation and dividend rights, of the holders of Class A and Class B common stock are identical, except with respect to voting, converting, and transfer rights. As the liquidation and dividend rights are identical, the undistributed earnings are allocated on a proportionate basis to each class of common stock and the resulting basic and diluted net loss per share are, therefore, the same for both Class A and Class B common stock on an individual or combined basis.

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, 2023 and 2022, 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 10 for revenue disaggregated by geographic markets.

Recent Accounting Pronouncements

Recently Adopted Accounting Pronouncements

Acquired Contract Assets and Contract Liabilities: In October 2021, the FASB issued ASU No. 2021-08, Business Combinations (Topic 805): Accounting for Contract Assets and Contract Liabilities from Contracts with Customers, which requires contract assets and contract liabilities acquired in a business combination to be recognized and measured by the acquirer on the acquisition date in accordance with ASC 606, Revenue from Contracts with Customers, as if it had originated the contracts. This guidance is effective for the Company for the year beginning January 1, 2023. The Company adopted this guidance as of January 1, 2023 on a prospective basis and the adoption did not have a material impact on its consolidated financial statements.

Recent Accounting Pronouncements Not Yet Adopted

Segment Reporting: In November 2023, the FASB issued ASU No. 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures, which requires disclosure of incremental segment information on an annual and interim basis. This ASU is effective for fiscal years beginning after December 15, 2023, and interim periods within fiscal years beginning after December 15, 2024, and requires retrospective application to all prior periods presented in the financial statements. The Company is currently evaluating the impact of adopting this ASU on its future consolidated financial statements and disclosures.

Income Taxes: In December 2023, the FASB issued ASU No. 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures, which requires disclosure of disaggregated income taxes paid, prescribes standard categories for the components of the effective tax rate reconciliation, and modifies other income tax-related disclosures. This ASU is effective for fiscal years beginning after December 15, 2024, and may be applied on a retrospective or prospective basis. The Company is currently evaluating the impact of adopting this ASU on its future consolidated financial statements and disclosures.

Derivative Instruments and Hedging - Fair Value of Derivative Instruments on the Balance Sheet (Details) - USD ($) $ in Thousands	Dec. 31, 2023	Dec. 31, 2022
Derivative Instruments, Gain (Loss) [Line Items]
Derivative assets	$ 3,219	$ 672
Derivative liabilities	$ 1,272	$ 19
Foreign Exchange Forward [Member] \| Not Designated as Hedging Instrument [Member]
Derivative Instruments, Gain (Loss) [Line Items]
Derivative Asset, Statement of Financial Position [Extensible Enumeration]	Prepaid Expense and Other Assets, Current	Prepaid Expense and Other Assets, Current
Derivative assets	$ 906	$ 0
Derivative Liability, Statement of Financial Position [Extensible Enumeration]	Accrued Liabilities and Other Liabilities	Accrued Liabilities and Other Liabilities
Derivative liabilities	$ 1,239	$ 0
Other Noncurrent Assets \| Foreign Exchange Forward [Member] \| Designated as Hedging Instrument [Member]
Derivative Instruments, Gain (Loss) [Line Items]
Derivative Asset, Statement of Financial Position [Extensible Enumeration]	Other Assets, Noncurrent	Other Assets, Noncurrent
Derivative assets	$ 524	$ 0
Other Noncurrent Liabilities \| Foreign Exchange Forward [Member] \| Designated as Hedging Instrument [Member]
Derivative Instruments, Gain (Loss) [Line Items]
Derivative Liability, Statement of Financial Position [Extensible Enumeration]	Other Liabilities, Noncurrent	Other Liabilities, Noncurrent
Derivative liabilities	$ 15	$ 0
Prepaid expenses and other current assets \| Foreign Exchange Forward [Member] \| Designated as Hedging Instrument [Member]
Derivative Instruments, Gain (Loss) [Line Items]
Derivative Asset, Statement of Financial Position [Extensible Enumeration]	Prepaid Expense and Other Assets, Current	Prepaid Expense and Other Assets, Current
Derivative assets	$ 1,789	$ 672
Accrued expenses and other liabilities \| Foreign Exchange Forward [Member] \| Designated as Hedging Instrument [Member]
Derivative Instruments, Gain (Loss) [Line Items]
Derivative Liability, Statement of Financial Position [Extensible Enumeration]	Accrued Liabilities and Other Liabilities	Accrued Liabilities and Other Liabilities
Derivative liabilities	$ 18	$ 19

Derivative Instruments and Hedging - Summary of Recognized Net Gains (Losses) From Foreign Currency Forward Contracts (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2023	Dec. 31, 2022
Total gains (losses) recognized in earnings from foreign currency forward contracts	$ (1,408)	$ 0
Designated as Hedging Instrument [Member]
Total gains (losses) recognized in earnings from foreign currency forward contracts	1,408
Not Designated as Hedging Instrument [Member]
Total gains (losses) recognized in earnings from foreign currency forward contracts	(83)
Cost of revenue - Subscription [Member] \| Designated as Hedging Instrument [Member]
Total gains (losses) recognized in earnings from foreign currency forward contracts	150
Cost of revenue - Subscription [Member] \| Not Designated as Hedging Instrument [Member]
Total gains (losses) recognized in earnings from foreign currency forward contracts	0
Cost of revenue - Services [Member] \| Designated as Hedging Instrument [Member]
Total gains (losses) recognized in earnings from foreign currency forward contracts	103
Cost of revenue - Services [Member] \| Not Designated as Hedging Instrument [Member]
Total gains (losses) recognized in earnings from foreign currency forward contracts	0
Research and Development [Member] \| Designated as Hedging Instrument [Member]
Total gains (losses) recognized in earnings from foreign currency forward contracts	325
Research and Development [Member] \| Not Designated as Hedging Instrument [Member]
Total gains (losses) recognized in earnings from foreign currency forward contracts	0
Sales and Marketing [Member] \| Designated as Hedging Instrument [Member]
Total gains (losses) recognized in earnings from foreign currency forward contracts	614
Sales and Marketing [Member] \| Not Designated as Hedging Instrument [Member]
Total gains (losses) recognized in earnings from foreign currency forward contracts	0
General and Administrative [Member] \| Designated as Hedging Instrument [Member]
Total gains (losses) recognized in earnings from foreign currency forward contracts	216
General and Administrative [Member] \| Not Designated as Hedging Instrument [Member]
Total gains (losses) recognized in earnings from foreign currency forward contracts	0
Other Income (Expense) Net [Member] \| Designated as Hedging Instrument [Member]
Total gains (losses) recognized in earnings from foreign currency forward contracts	0
Other Income (Expense) Net [Member] \| Not Designated as Hedging Instrument [Member]
Total gains (losses) recognized in earnings from foreign currency forward contracts	$ (83)

Stockholders' Equity - Schedule of Restricted Stock Unit Activity (Details) - Restricted Stock Units (RSUs) [Member]	12 Months Ended
	Dec. 31, 2023 $ / shares shares
Share-Based Compensation Arrangement by Share-Based Payment Award, Non-Option Equity Instruments, Outstanding [Roll Forward]
Number of Shares, Beginning Balance \| shares	19,953,456
Number of Shares, RSUs granted \| shares	17,402,093
Number of Shares, RSUs vested \| shares	(9,486,112)
Number of Shares, RSUs forfeited or cancelled \| shares	(4,177,071)
Number of Shares, Ending Balance \| shares	23,692,366
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	$ 33.18
Weighted-average grant date fair value, RSUs granted (in dollars per share) \| $ / shares	24.49
Weighted-average grant date fair value, RSUs vested (in dollars per share) \| $ / shares	29.68
Weighted-average grant date fair value, RSUs forfeited or cancelled (in dollars per share) \| $ / shares	31.84
Weighted-average grant date fair value, Ending Balance (in dollars per share) \| $ / shares	$ 28.44

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

12 Months Ended

Dec. 31, 2023

Accounting Policies [Abstract]

Basis of Presentation

Reclassifications

Use of Estimates

Functional Currency

Cash and Cash Equivalents

Marketable Securities

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

Accounts Receivable and Allowance for Credit Losses

Derivative Instruments and Hedging

Concentration of Risks

Deferred Contract Acquisition Costs

Capitalized Software Costs

Property and Equipment, Net


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

Leases

Business Combinations

Impairment of Goodwill, Intangible Assets, and Other 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

Commitments and Contingencies - Additional Information (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2021	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
Lease expenses	$ 20,900	$ 10,100	10,200
Weighted average remaining life of operating leases	2 years 9 months 18 days	3 years 9 months 18 days
Weighted-average discount rate of operating leases	4.30%	4.30%
Lease abandonment charges	$ 15,667	$ 0	0
Cash paid for operating lease liabilities	$ 8,700	$ 10,700	$ 12,400
CALIFORNIA [Member]
Lessee Lease Description [Line Items]
Letters of Credit Outstanding, Amount				$ 8,200
Maximum [Member]
Lessee Lease Description [Line Items]
Lessee, Operating Lease, Renewal Term	5 years

Stockholders' Equity - Summary of Stock Equity Award Activity (Details) - USD ($) $ / shares in Units, $ in Thousands	12 Months Ended
	Dec. 31, 2023	Dec. 31, 2022
Share-Based Payment Arrangement [Abstract]
Shares Available for Grant, Beginning Balance	33,300,077
Shares Available for Grant, Increase in authorized shares	14,469,209
Shares Available for Grant, Stock options forfeited or expired	2,709,677
Shares Available for Grant, Repurchases of unvested common stock	35,203
Shares Available for Grant, RSUs granted	(17,402,093)
Shares Available for Grant, RSUs Forfeited or Cancelled	4,177,071
Shares Available for Grant, Ending Balance	37,289,144	33,300,077
Outstanding Stock Options, Beginning Balance	45,299,079
Outstanding Stock Options, Stock options exercised	(11,454,829)
Outstanding Stock Options, Stock options forfeited or expired	(2,709,677)
Outstanding Stock Options, Ending Balance	31,134,573	45,299,079
Outstanding Stock Options, Vested	24,876,756
Outstanding Stock Options, Vested and expected to vest	31,134,573
Weighted-Average Exercise Price, Beginning Balance	$ 7.76
Weighted-Average Exercise Price, Stock options exercised	6.43
Weighted-Average Exercise Price, Stock options forfeited or expired	10.78
Weighted-Average Exercise Price, Ending Balance	7.98	$ 7.76
Weighted-Average Exercise Price, Vested	6.98
Weighted-Average Exercise Price, Vested and Expected to Vest	$ 7.98
Weighted-Average Remaining Contractual Term (in years)	6 years 3 days	6 years 11 months 26 days
Weighted-Average Remaining Contractual Term Vested (in years)	5 years 10 months 2 days
Weighted-Average Remaining Contractual Term Vested and expected to vest (in years)	6 years 3 days
Aggregate Intrinsic Value, Beginning Balance	$ 657,307
Aggregate Intrinsic Value, Ending Balance	480,766	$ 657,307
Aggregate Intrinsic Value, Vested as of December 31, 2022	408,899
Aggregate Intrinsic Value, Vested and expected to vest as of December 31, 2022	$ 480,766

Balance Sheet Components - Summary of Accrued Expense and Other Liabilities (Details) - USD ($) $ in Thousands	Dec. 31, 2023	Dec. 31, 2022
Payables and Accruals [Abstract]
Accrued compensation and benefits	$ 74,497	$ 27,799
Accrued commissions	17,418	18,058
Employee contributions under employee stock purchase plan	13,946	15,283
Accrued expenses	13,471	16,798
Accrued payroll taxes	9,162	10,349
Other liabilities	13,353	17,044
Total accrued expenses and other liabilities	$ 141,847	$ 105,331

Consolidated Balance Sheets - USD ($) $ in Thousands	Dec. 31, 2023	Dec. 31, 2022
Current assets:
Cash and cash equivalents	$ 349,761	$ 435,781
Marketable securities	1,551,009	1,491,044
Accounts receivable, net	229,962	178,188
Deferred contract acquisition costs	43,937	35,883
Prepaid expenses and other current assets	76,986	57,229
Total current assets	2,251,655	2,198,125
Property and equipment, net	54,012	29,089
Operating lease right-of-use assets	10,061	29,478
Goodwill and intangible assets, net	55,490	0
Deferred contract acquisition costs, non-current	75,815	68,401
Other assets, non-current	13,776	19,756
Total assets	2,460,809	2,344,849
Current liabilities:
Accounts payable	6,714	21,439
Accrued expenses and other liabilities	141,847	105,331
Operating lease liabilities	7,890	7,375
Deferred revenue	330,570	290,185
Total current liabilities	487,021	424,330
Operating lease liabilities, non-current	17,391	25,136
Deferred revenue, non-current	22,436	32,644
Convertible senior notes, net	1,088,313	1,084,500
Other liabilities, non-current	35,233	8,762
Total liabilities	1,650,394	1,575,372
Commitments and contingencies (Note 9)
Stockholders' equity:
Preferred stock, par value of $0.00001 per share; 10,000,000 shares authorized as of December 31, 2023 and December 31, 2022; 0 shares issued and outstanding as of December 31, 2023 and December 31, 2022	0	0
Additional paid-in capital	2,453,293	1,980,335
Accumulated other comprehensive income (loss)	1,270	(9,456)
Accumulated deficit	(1,644,151)	(1,201,405)
Total stockholders' equity	810,415	769,477
Total liabilities and stockholders' equity	2,460,809	2,344,849
Class A Common Stock [Member]
Stockholders' equity:
Common Stock, Value	2	2
Class B Common Stock [Member]
Stockholders' equity:
Common Stock, Value	$ 1	$ 1

Commitments and Contingencies - Schedule of Future Payments under Non-Cancelable Purchase Obligations (Details) $ in Thousands	Dec. 31, 2023 USD ($)
Commitments and Contingencies Disclosure [Abstract]
2024	$ 162,815
2025	184,585
2026	203,995
2027	169,410
2028	22,790
Purchase Obligation, Total	$ 743,595

Basis of Presentation and Summary of Significant Accounting Policies - Summary of Useful Life of Property and Equipment, Net (Details)	Dec. 31, 2023
Computers, Equipment, and Software [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

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, 2023	Dec. 31, 2022	Dec. 31, 2021
Numerator:
Net loss	$ (442,746)	$ (452,551)	$ (342,801)
Denominator:
Weighted-average shares used to compute net loss per share, basic	300,727,487	280,080,357	188,627,720
Weighted-average shares used to compute net loss per share, diluted	300,727,487	280,080,357	188,627,720
Net loss per share, basic	$ (1.47)	$ (1.62)	$ (1.82)
Net loss per share, diluted	$ (1.47)	$ (1.62)	$ (1.82)

- Definition

The amount of net income (loss) for the period per each share of common stock or unit outstanding during the reporting period.

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- Definition

The amount of net income (loss) for the period available to each share of common stock or common unit outstanding during the reporting period and to each share or unit that would have been outstanding assuming the issuance of common shares or units for all dilutive potential common shares or units outstanding during the reporting period.

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

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+ Details

Business Combinations, Goodwill, and Intangible Assets - Schedule of Intangible Assets, Net (Details) $ in Thousands	Dec. 31, 2023 USD ($)
Business Acquisition [Line Items]
Gross	$ 4,056
Accumulated Amortization	(564)
Net	3,492
Developed Technology [Member]
Business Acquisition [Line Items]
Gross	4,056
Accumulated Amortization	(564)
Net	$ 3,492

Revenue (Tables)

12 Months Ended

Dec. 31, 2023

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,
	2023				2022				2021
Geographic markets:
United States	$	464,857	60	%	$	362,132	62	%	$	246,676	64	%
International		312,095	40	%		223,812	38	%		141,188	36	%
Total revenue	$	776,952	100	%	$	585,944	100	%	$	387,864	100	%
Subscriptions and services:
Confluent Platform - License	$	84,025	11	%	$	76,019	13	%	$	69,183	18	%
Confluent Platform - PCS		296,245	38	%		247,803	42	%		183,737	47	%
Confluent Cloud		348,842	45	%		211,187	36	%		94,179	24	%
Subscription		729,112	94	%		535,009	91	%		347,099	89	%
Services		47,840	6	%		50,935	9	%		40,765	11	%
Total revenue	$	776,952	100	%	$	585,944	100	%	$	387,864	100	%

Other than the United States, no individual country represented 10% or more of total revenue during the years ended December 31, 2023, 2022, and 2021.

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,
	2023			2022
Beginning balance	$	104,284		$	78,824
Capitalization of contract acquisition costs		61,356			62,799
Amortization of deferred contract acquisition costs		(45,888	)		(37,339	)
Ending balance	$	119,752		$	104,284

Derivative Instruments and Hedging - Impact of derivative contracts on accumulated other comprehensive income (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2023	Dec. 31, 2022
Derivative Instruments and Hedging Activities Disclosure [Abstract]
Beginning Balance	$ 653	$ 0
Net gain recognized in other comprehensive income (loss)	3,035	653
Net gain reclassified from AOCI to earnings	(1,408)	0
Ending Balance	$ 2,280	$ 653

Consolidated Statements of Cash Flows - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2021
CASH FLOWS FROM OPERATING ACTIVITIES
Net Income (Loss)	$ (442,746)	$ (452,551)	$ (342,801)
Adjustments to reconcile net loss to cash used in operating activities:
Depreciation and amortization	13,910	7,620	3,632
Net (accretion) amortization of (discounts) premiums on marketable securities	(42,505)	(8,891)	2,270
Amortization of debt issuance costs	3,813	3,799	187
Amortization of deferred contract acquisition costs	45,888	37,339	26,697
Non-cash operating lease costs	3,992	8,608	10,990
Lease abandonment charges	15,667	0	0
Common stock charitable donation expense	0	0	13,290
Stock-based compensation, net of amounts capitalized	349,833	277,656	155,624
Deferred income taxes	1,889	(237)	1,335
Other	2,358	1,384	1,828
Changes in operating assets and liabilities, net of effects of business combinations:
Accounts receivable	(53,593)	(42,080)	(32,516)
Deferred contract acquisition costs	(61,354)	(62,801)	(57,924)
Prepaid expenses and other assets	(10,387)	(17,850)	(31,366)
Accounts payable	(14,452)	13,580	6,143
Accrued expenses and other liabilities	61,333	9,948	61,132
Operating lease liabilities	(7,479)	(9,209)	(10,866)
Deferred revenue	30,176	76,352	87,285
Net cash used in operating activities	(103,657)	(157,333)	(105,060)
CASH FLOWS FROM INVESTING ACTIVITIES
Capitalization of internal-use software costs	(17,845)	(10,334)	(5,342)
Purchases of marketable securities	(1,586,693)	(2,051,908)	(663,595)
Maturities of marketable securities	1,578,323	1,200,558	271,942
Purchases of property and equipment	(2,834)	(4,121)	(3,600)
Cash paid for business combinations, net of cash acquired	(55,802)	0	0
Other	0	0	12
Net cash used in investing activities	(84,851)	(865,805)	(400,583)
CASH FLOWS FROM FINANCING ACTIVITIES
Proceeds from initial public offering, net of underwriting discounts and commissions	0	0	786,600
Proceeds from issuance of common stock upon exercise of vested options	73,919	42,461	51,737
Proceeds from issuance of common stock upon early exercise of unvested options	0	416	19,454
Repurchases of unvested common stock	(255)	(789)	(482)
Payments of deferred offering costs	0	0	(3,125)
Proceeds from convertible senior notes, net of issuance costs	0	(786)	1,081,300
Payments for purchase of capped calls	0	0	(90,970)
Proceeds from issuance of common stock under employee stock purchase plan	28,708	40,939	0
Net cash provided by financing activities	102,372	82,241	1,844,514
Effect of exchange rate changes on cash, cash equivalents, and restricted cash	116	(4)	5
Net (decrease) increase in cash, cash equivalents, and restricted cash	(86,020)	(940,901)	1,338,876
Cash, cash equivalents, and restricted cash at beginning of period	435,781	1,376,682	37,806
Cash, cash equivalents, and restricted cash at end of period	349,761	435,781	1,376,682
Reconciliation of cash, cash equivalents, and restricted cash within the consolidated balance sheets to the amounts shown above:
Cash and cash equivalents	349,761	435,781	1,375,932
Restricted cash included in other assets, current	0	0	750
Total cash, cash equivalents, and restricted cash	349,761	435,781	1,376,682
Cash paid for:
Income taxes	8,053	5,529	2,168
Non-cash investing and financing activities:
Stock-based compensation capitalized as internal-use software costs	17,943	7,544	2,625
Right-of-use assets obtained in exchange for new operating lease liabilities	0	998	813
Issuance of common stock upon exercise of vested options included in prepaid expenses and other current assets	0	0	55
Vesting of early exercised stock options	2,834	11,467	10,235
Convertible senior notes issuance costs included in accrued expenses and other liabilities	$ 0	$ 0	$ 786

Fair Value of Financial Instruments - Additional Information (Details) - USD ($) $ in Millions	Dec. 31, 2023	Dec. 31, 2022
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	$ 917.9	$ 837.3

Marketable Securities (Tables)

12 Months Ended

Dec. 31, 2023

Investments, Debt and Equity Securities [Abstract]

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, 2023
	Amortized Cost		Unrealized Gains		Unrealized Losses			Fair Value
U.S. treasury securities	$	834,235	$	257	$	(1,355	)	$	833,137
U.S. agency obligations		403,035		599		(875	)		402,759
Corporate notes and bonds		279,328		838		(457	)		279,709
Commercial paper		35,407		-		(3	)		35,404
Total marketable securities	$	1,552,005	$	1,694	$	(2,690	)	$	1,551,009


	December 31, 2022
	Amortized Cost		Unrealized Gains		Unrealized Losses			Fair Value
U.S. treasury securities	$	1,033,587	$	68	$	(4,072	)	$	1,029,583
U.S. agency obligations		273,804		17		(3,570	)		270,251
Corporate notes and bonds		160,208		9		(2,375	)		157,842
Commercial paper		33,526		-		(158	)		33,368
Total marketable securities	$	1,501,125	$	94	$	(10,175	)	$	1,491,044

Schedule of Fair Values and Unrealized Losses on Marketable Securities

The following tables summarize the fair values and unrealized losses of the Company’s marketable securities, classified by the length of time that the securities have been in a continuous unrealized loss position (in thousands):


	December 31, 2023
	Less than 12 Months					12 Months or Greater					Total
	Fair Value		Unrealized Losses			Fair Value		Unrealized Losses			Fair Value		Unrealized Losses
U.S. treasury securities	$	487,260	$	(1,074	)	$	46,130	$	(281	)	$	533,390	$	(1,355	)
U.S. agency obligations		206,105		(390	)		80,657		(485	)		286,762		(875	)
Corporate notes and bonds		100,295		(293	)		31,277		(164	)		131,572		(457	)
Commercial paper		6,810		(3	)		-		-			6,810		(3	)
Total	$	800,470	$	(1,760	)	$	158,064	$	(930	)	$	958,534	$	(2,690	)


	December 31, 2022
	Less than 12 Months					12 Months or Greater					Total
	Fair Value		Unrealized Losses			Fair Value		Unrealized Losses			Fair Value		Unrealized Losses
U.S. treasury securities	$	566,093	$	(2,892	)	$	167,817	$	(1,180	)	$	733,910	$	(4,072	)
U.S. agency obligations		201,846		(2,014	)		51,595		(1,556	)		253,441		(3,570	)
Corporate notes and bonds		90,287		(1,259	)		65,579		(1,116	)		155,866		(2,375	)
Commercial paper		33,368		(158	)		-		-			33,368		(158	)
Total	$	891,594	$	(6,323	)	$	284,991	$	(3,852	)	$	1,176,585	$	(10,175	)

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, 2023
	Amortized Cost		Fair Value
Due within one year	$	1,264,302	$	1,262,136
Due after one year through five years		287,703		288,873
Total	$	1,552,005	$	1,551,009

- Definition

Tabular disclosure of investment in debt security measured at fair value with change in fair value recognized in other comprehensive income (available-for-sale).

+ References

Reference 1: http://www.xbrl.org/2009/role/commonPracticeRef
-Topic 320
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 9
-Subparagraph (a)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481800/320-10-50-9

Reference 2: http://www.xbrl.org/2009/role/commonPracticeRef
-Topic 320
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 3
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481800/320-10-50-3

Reference 3: http://www.xbrl.org/2009/role/commonPracticeRef
-Topic 320
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 2
-Subparagraph (b)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481800/320-10-50-2

Reference 4: http://www.xbrl.org/2009/role/commonPracticeRef
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-URI https://asc.fasb.org//1943274/2147481800/320-10-50-2

Reference 5: http://www.xbrl.org/2009/role/commonPracticeRef
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-Section 50
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-URI https://asc.fasb.org//1943274/2147481800/320-10-50-2

Reference 6: http://www.xbrl.org/2009/role/commonPracticeRef
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Reference 9: http://www.xbrl.org/2009/role/commonPracticeRef
-Topic 320
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-Subparagraph (a)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481800/320-10-50-3

Reference 10: http://www.xbrl.org/2009/role/commonPracticeRef
-Topic 320
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 3
-Subparagraph (b)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481800/320-10-50-3

Reference 11: http://www.xbrl.org/2009/role/commonPracticeRef
-Topic 320
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 3
-Subparagraph (c)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481800/320-10-50-3

Reference 12: http://www.xbrl.org/2009/role/commonPracticeRef
-Topic 320
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 3
-Subparagraph (d)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481800/320-10-50-3

+ Details

Pay vs Performance Disclosure - USD ($) $ in Thousands	12 Months Ended
Pay vs Performance Disclosure - USD ($) $ in Thousands	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2021
Pay vs Performance Disclosure
Net Income (Loss)	$ (442,746)	$ (452,551)	$ (342,801)

- Definition

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

+ References

+ Details

Consolidated Statements of Operations - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2021
Revenue:
Total revenue	$ 776,952	$ 585,944	$ 387,864
Cost of revenue:
Total cost of revenue	229,670	202,415	137,292
Gross profit	547,282	383,529	250,572
Operating expenses:
Research and development	348,752	264,041	161,925
Sales and marketing	504,929	456,452	319,331
General and administrative	137,520	125,710	108,936
Restructuring and other related charges	34,854	0	0
Total operating expenses	1,026,055	846,203	590,192
Operating loss	(478,773)	(462,674)	(339,620)
Other income (expense), net	72,099	16,416	(7)
Loss before income taxes	(406,674)	(446,258)	(339,627)
Provision for income taxes	36,072	6,293	3,174
Net loss	$ (442,746)	$ (452,551)	$ (342,801)
Net loss per share, basic	$ (1.47)	$ (1.62)	$ (1.82)
Net loss per share, diluted	$ (1.47)	$ (1.62)	$ (1.82)
Weighted-average shares used to compute net loss per share, basic	300,727,487	280,080,357	188,627,720
Weighted-average shares used to compute net loss per share, diluted	300,727,487	280,080,357	188,627,720
Subscription [Member]
Revenue:
Total revenue	$ 729,112	$ 535,009	$ 347,099
Cost of revenue:
Total cost of revenue	176,004	146,324	94,860
Services [Member]
Revenue:
Total revenue	47,840	50,935	40,765
Cost of revenue:
Total cost of revenue	$ 53,666	$ 56,091	$ 42,432

Income Taxes - Additional Information (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2021
Income Taxes [Line Items]
Foreign current tax expense	$ 33,812	$ 6,193	$ 1,588
Accrued deferred U.S. state income and foreign withholding taxes	2,700
Valuation allowance	587,738	461,234
Increase in valuation allowance	126,500	145,100
Income tax interest and penalties	0	$ 0	$ 0
Foreign net operating loss carryforwards	60,300
Immerok GmbH [Member] \| Intellectual Property [Member]
Income Taxes [Line Items]
Foreign current tax expense	26,400
U.S. deferred tax asset	17,800
Federal [Member]
Income Taxes [Line Items]
Federal NOLs carryover	1,461,700
Federal net operating loss carryforwards	1,417,500
Research tax credit carryforwards	62,600
State [Member]
Income Taxes [Line Items]
Federal NOLs carryover	798,100
Research tax credit carryforwards	$ 28,100

Derivative Instruments and Hedging (Tables)

12 Months Ended

Dec. 31, 2023

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Schedule of Notional Amounts of the Company's Derivative Instruments

The following table summarizes the notional amounts of the Company’s derivative instruments (in thousands):


	December 31, 2023		December 31, 2022
Foreign currency forward contracts designated as hedging instruments	$	125,617	$	96,097
Foreign currency forward contracts not designated as hedging instruments		99,918		-
Total derivative instruments	$	225,535	$	96,097

Schedule of Derivative Instruments in Statement of Financial Position, Fair Value

The following table summarizes the fair value of the Company’s derivative instruments on the consolidated balance sheets (in thousands):


	Balance Sheet Location	December 31, 2023		December 31, 2022
Derivative Assets:
Foreign currency forward contracts designated as hedging instruments	Prepaid expenses and other current assets	$	1,789	$	672
Foreign currency forward contracts not designated as hedging instruments	Prepaid expenses and other current assets		906		-
Foreign currency forward contracts designated as hedging instruments	Other assets, non-current		524		-
Total derivative assets		$	3,219	$	672
Derivative Liabilities:
Foreign currency forward contracts designated as hedging instruments	Accrued expenses and other liabilities	$	18	$	19
Foreign currency forward contracts not designated as hedging instruments	Accrued expenses and other liabilities		1,239		-
Foreign currency forward contracts designated as hedging instruments	Other liabilities, non-current		15		-
Total derivative liabilities		$	1,272	$	19

Schedule of Cash Flow Hedges Included in Accumulated Other Comprehensive Income (Loss)

The following table presents the activity of foreign currency forward contracts designated as hedging instruments and the impact of these derivatives on AOCI (in thousands):


	Year Ended December 31,
	2023			2022
Beginning balance	$	653		$	-
Net gain recognized in other comprehensive income (loss)		3,035			653
Net gain reclassified from AOCI to earnings		(1,408	)		-
Ending balance	$	2,280		$	653

Schedule of foreign currency forward contracts on the condensed consolidated statements of operations

The following table summarizes the effect of foreign currency forward contracts on the consolidated statements of operations (in thousands):


	Year Ended December 31, 2023
	Derivatives Designated as Hedging Instruments		Derivatives Not Designated as Hedging Instruments
Cost of revenue - subscription	$	150	$	-
Cost of revenue - services		103		-
Research and development		325		-
Sales and marketing		614		-
General and administrative		216		-
Other income (expense), net		-		(83	)
Total gains (losses) recognized in earnings	$	1,408	$	(83	)

Insider Trading Arrangements

3 Months Ended

Dec. 31, 2023

Trading Arrangements, by Individual

Material Terms of Trading Arrangement

Insider Trading Arrangements

During the three months ended December 31, 2023, our directors and officers (as defined in Rule 16a-1(f) under the Exchange Act) adopted or terminated the contracts, instructions or written plans for the purchase or sale of the Company’s securities set forth in the table below.


Type of Trading Arrangement
Name and Position	Action	Adoption/ Termination Date	Rule 10b5-1*	Non-Rule 10b5-1**	Total Shares of Class A Common Stock to be Sold		Expiration Date
Ying Christina Liu - Chief Accounting Officer	Adoption	11/29/2023	X		293,332(1)		3/28/2025
Lara Caimi - Director	Adoption	12/11/2023	X			80,399	2/21/2025
Eric Vishria - Director(2)	Termination	11/9/2023	X			530,000	1/21/2025

* Contract, instruction or written plan intended to satisfy the affirmative defense conditions of Rule 10b5-1(c) under the Exchange Act.
** “Non-Rule 10b5-1 trading arrangement” as defined in Item 408(c) of Regulation S-K under the Exchange Act.

(1) The actual number of shares that will be sold under the Rule 10b5-1 trading plan will be reduced by the number of shares sold in accordance with an existing plan prior to its expiration on March 22, 2024.

(2) Represents the termination of a Rule 10b5-1 trading plan by The Vishria Revocable Trust, a trust affiliated with Eric Vishria.

Rule 10b5-1 Arrangement Adopted

true

Non-Rule 10b5-1 Arrangement Adopted

true

Rule 10b5-1 Arrangement Terminated

true

Non-Rule 10b5-1 Arrangement Terminated

true

Ying Christina Liu [Member]

Trading Arrangements, by Individual

Name

Ying Christina

Title

Chief Accounting Officer

Rule 10b5-1 Arrangement Adopted

true

Adoption Date

11/29/2023

Arrangement Duration

485 days

Aggregate Available

293,332

^[1]

Expiration Date

3/28/2025

Lara Caimi [Member]

Trading Arrangements, by Individual

Name

Lara Caimi

Title

Director

Rule 10b5-1 Arrangement Adopted

true

12/11/2023

438 days

80,399

2/21/2025

Eric Vishria [Member]

Trading Arrangements, by Individual

Name

Eric Vishria

^[2]

Title

Director

^[2]

Rule 10b5-1 Arrangement Adopted

true

^[2]

Termination Date

11/9/2023

^[2]

Arrangement Duration

439 days

Aggregate Available

530,000

^[2]

Expiration Date

1/21/2025

^[2]

[1]	The actual number of shares that will be sold under the Rule 10b5-1 trading plan will be reduced by the number of shares sold in accordance with an existing plan prior to its expiration on March 22, 2024.
[2]	Represents the termination of a Rule 10b5-1 trading plan by The Vishria Revocable Trust, a trust affiliated with Eric Vishria

Revenue - Summary of Revenue Disaggregated by Geographic Markets (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2021
Disaggregation Of Revenue [Line Items]
Total revenue	$ 776,952	$ 585,944	$ 387,864
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%	100.00%
United States [Member]
Disaggregation Of Revenue [Line Items]
Total revenue	$ 464,857	$ 362,132	$ 246,676
United States [Member] \| Revenue Benchmark [Member] \| Geographic Concentration Risk [Member]
Disaggregation Of Revenue [Line Items]
Percentage of Revenue	60.00%	62.00%	64.00%
International [Member]
Disaggregation Of Revenue [Line Items]
Total revenue	$ 312,095	$ 223,812	$ 141,188
International [Member] \| Revenue Benchmark [Member] \| Geographic Concentration Risk [Member]
Disaggregation Of Revenue [Line Items]
Percentage of Revenue	40.00%	38.00%	36.00%
License [Member]
Disaggregation Of Revenue [Line Items]
Total revenue	$ 84,025	$ 76,019	$ 69,183
License [Member] \| Revenue Benchmark [Member] \| Subscription and Service Concentration Risk [Member]
Disaggregation Of Revenue [Line Items]
Percentage of Revenue	11.00%	13.00%	18.00%
Post Contract Customer Support [Member]
Disaggregation Of Revenue [Line Items]
Total revenue	$ 296,245	$ 247,803	$ 183,737
Post Contract Customer Support [Member] \| Revenue Benchmark [Member] \| Subscription and Service Concentration Risk [Member]
Disaggregation Of Revenue [Line Items]
Percentage of Revenue	38.00%	42.00%	47.00%
Confluent Cloud [Member]
Disaggregation Of Revenue [Line Items]
Total revenue	$ 348,842	$ 211,187	$ 94,179
Confluent Cloud [Member] \| Revenue Benchmark [Member] \| Subscription and Service Concentration Risk [Member]
Disaggregation Of Revenue [Line Items]
Percentage of Revenue	45.00%	36.00%	24.00%
Subscription [Member]
Disaggregation Of Revenue [Line Items]
Total revenue	$ 729,112	$ 535,009	$ 347,099
Subscription [Member] \| Revenue Benchmark [Member] \| Subscription and Service Concentration Risk [Member]
Disaggregation Of Revenue [Line Items]
Percentage of Revenue	94.00%	91.00%	89.00%
Services [Member]
Disaggregation Of Revenue [Line Items]
Total revenue	$ 47,840	$ 50,935	$ 40,765
Services [Member] \| Revenue Benchmark [Member] \| Subscription and Service Concentration Risk [Member]
Disaggregation Of Revenue [Line Items]
Percentage of Revenue	6.00%	9.00%	11.00%

Balance Sheet Components

12 Months Ended

Dec. 31, 2023

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Balance Sheet Components

6. 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, 2023			December 31, 2022
Computers, equipment, and software	$	11,300		$	8,794
Furniture and fixtures		916			977
Leasehold improvements		380			458
Capitalized internal-use software costs		38,999			25,639
Construction in progress - capitalized internal-use software costs		27,831			5,404
Property and equipment, at cost	$	79,426		$	41,272
Less: Accumulated depreciation and amortization		(25,414	)		(12,183	)
Property and equipment, net	$	54,012		$	29,089

Depreciation and amortization expense was $13.4 million, $7.6 million, and $3.6 million for the years ended December 31, 2023, 2022, and 2021, respectively.

Accrued Expenses and Other Liabilities

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


	December 31, 2023		December 31, 2022
Accrued compensation and benefits	$	74,497	$	27,799
Accrued commissions		17,418		18,058
Employee contributions under employee stock purchase plan		13,946		15,283
Accrued expenses		13,471		16,798
Accrued payroll taxes		9,162		10,349
Other liabilities		13,353		17,044
Total accrued expenses and other liabilities	$	141,847	$	105,331

Balance Sheet Components (Tables)

12 Months Ended

Dec. 31, 2023

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, 2023			December 31, 2022
Computers, equipment, and software	$	11,300		$	8,794
Furniture and fixtures		916			977
Leasehold improvements		380			458
Capitalized internal-use software costs		38,999			25,639
Construction in progress - capitalized internal-use software costs		27,831			5,404
Property and equipment, at cost	$	79,426		$	41,272
Less: Accumulated depreciation and amortization		(25,414	)		(12,183	)
Property and equipment, net	$	54,012		$	29,089

Summary of Accrued Expense and Other Liabilities

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


	December 31, 2023		December 31, 2022
Accrued compensation and benefits	$	74,497	$	27,799
Accrued commissions		17,418		18,058
Employee contributions under employee stock purchase plan		13,946		15,283
Accrued expenses		13,471		16,798
Accrued payroll taxes		9,162		10,349
Other liabilities		13,353		17,044
Total accrued expenses and other liabilities	$	141,847	$	105,331

Income Taxes - Schedule of Components of Loss Before Income Taxes (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2021
Income Tax Disclosure [Abstract]
Domestic	$ (428,346)	$ (461,919)	$ (347,552)
Foreign	21,672	15,661	7,925
Loss before income taxes	$ (406,674)	$ (446,258)	$ (339,627)

- 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
-Topic 944
-SubTopic 220
-Name Accounting Standards Codification
-Section S99
-Paragraph 1
-Subparagraph (SX 210.7-04(11))
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147483586/944-220-S99-1

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Topic 280
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 22
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482810/280-10-50-22

Reference 3: http://www.xbrl.org/2003/role/disclosureRef
-Topic 280
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 30
-Subparagraph (b)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482810/280-10-50-30

Reference 4: http://www.xbrl.org/2003/role/disclosureRef
-Topic 280
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 32
-Subparagraph (f)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482810/280-10-50-32

Reference 5: http://www.xbrl.org/2003/role/exampleRef
-Topic 280
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 31
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482810/280-10-50-31

Reference 6: http://www.xbrl.org/2003/role/disclosureRef
-Topic 280
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 32
-Subparagraph (c)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482810/280-10-50-32

Reference 7: http://www.xbrl.org/2003/role/disclosureRef
-Topic 942
-SubTopic 235
-Name Accounting Standards Codification
-Section S99
-Paragraph 1
-Subparagraph (SX 210.9-05(b)(2))
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147479557/942-235-S99-1

Reference 8: http://fasb.org/us-gaap/role/ref/legacyRef
-Name Accounting Standards Codification
-Section 25
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-Topic 940
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-URI https://asc.fasb.org//1943274/2147481913/940-20-25-1

Reference 9: http://fasb.org/us-gaap/role/ref/legacyRef
-Topic 220
-SubTopic 10
-Name Accounting Standards Codification
-Section S99
-Paragraph 2
-Subparagraph (SX 210.5-03(10))
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147483621/220-10-S99-2

Reference 10: http://fasb.org/us-gaap/role/ref/legacyRef
-Topic 942
-SubTopic 220
-Name Accounting Standards Codification
-Section S99
-Paragraph 1
-Subparagraph (SX 210.9-04(15))
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147483589/942-220-S99-1

+ Details

Income Taxes (Tables)

12 Months Ended

Dec. 31, 2023

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,
	2023			2022			2021
Domestic	$	(428,346	)	$	(461,919	)	$	(347,552	)
Foreign		21,672			15,661			7,925
Loss before income taxes	$	(406,674	)	$	(446,258	)	$	(339,627	)

Schedule of Components of provision for income taxes

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


	Year Ended December 31,
	2023		2022			2021
Current
State	$	371	$	337		$	251
Foreign		33,812		6,193			1,588
Total		34,183		6,530			1,839
Deferred
Federal		2		-			-
State		1		-			-
Foreign		1,886		(237	)		1,335
Total		1,889		(237	)		1,335
Provision for income taxes	$	36,072	$	6,293		$	3,174

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 income taxes was as follows (in thousands):


	Year Ended December 31,
	2023			2022			2021
Income tax benefit computed at federal statutory rate	$	(85,401	)	$	(93,714	)	$	(71,322	)
Foreign rate differential		2,107			2,668			1,214
Stock-based compensation expense		88			(14,145	)		(104,993	)
Change in valuation allowance		97,923			122,724			192,301
Research and development credits		(13,049	)		(11,581	)		(14,483	)
Intra-group transfer of acquired intellectual property		26,358			-			-
Non-deductible expenses		4,495			-			-
Other		3,551			341			457
Provision for income taxes	$	36,072		$	6,293		$	3,174

Components of net deferred tax balance

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


	December 31,
	2023			2022
Deferred tax assets:
Net operating loss carryforwards	$	369,107		$	324,950
Capitalized research and development costs		119,960			74,824
Tax credit carryforwards		63,096			46,190
Stock-based compensation expense		27,840			26,211
Acquired intangible assets		17,791			-
Accruals and reserves		16,948			8,005
Other		17,450			19,610
Total deferred tax assets		632,192			499,790
Less: Valuation allowance		(587,738	)		(461,234	)
Deferred tax assets, net of valuation allowance		44,454			38,556
Deferred tax liabilities:
Deferred contract acquisition costs		(28,379	)		(25,054	)
Property and equipment		(11,765	)		(5,898	)
Other		(5,486	)		(6,891	)
Total deferred tax liabilities		(45,630	)		(37,843	)
Net deferred tax (liabilities) assets	$	(1,176	)	$	713

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,
	2023			2022			2021
Beginning balance	$	18,914		$	12,530		$	3,399
Gross increase for prior year tax positions		439			1			192
Gross decrease for prior year tax positions		(5	)		(860	)		-
Gross increase for current year tax positions		7,961			7,243			8,939
Ending balance	$	27,309		$	18,914		$	12,530

Income Taxes - Schedule of components of deferred tax assets and liabilities (Details) - USD ($) $ in Thousands	Dec. 31, 2023	Dec. 31, 2022
Deferred tax assets:
Net operating loss carryforwards	$ 369,107	$ 324,950
Capitalized research and development costs	119,960	74,824
Tax credit carryforwards	63,096	46,190
Stock-based compensation expense	27,840	26,211
Acquired intangible assets	17,791	0
Accruals and reserves	16,948	8,005
Other	17,450	19,610
Total deferred tax assets	632,192	499,790
Less: Valuation allowance	(587,738)	(461,234)
Deferred tax assets, net of valuation allowance	44,454	38,556
Deferred tax liabilities:
Deferred contract acquisition costs	(28,379)	(25,054)
Property and equipment	(11,765)	(5,898)
Other	(5,486)	(6,891)
Total deferred tax liabilities	(45,630)	(37,843)
Net deferred tax assets		$ 713
Net deferred tax (liabilities)	$ (1,176)

Commitments and Contingencies

12 Months Ended

Dec. 31, 2023

Commitments and Contingencies Disclosure [Abstract]

Commitments and Contingencies

9. 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 five 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 and minimum lease payments 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.

In 2019, the Company was 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, 2023 and 2022.

In addition, the Company subleased certain floors of its unoccupied office space that expired at various dates in 2022. Sublease income was recorded as a reduction of lease expense and was not material for the year ended December 31, 2022. Sublease income was $2.7 million for the year ended December 31, 2021.

For the years ended December 31, 2023, 2022, and 2021, lease expense, net of sublease income of $20.9 million, $10.1 million, and $10.2 million is included in operating expenses in the consolidated statements of operations, respectively. Lease expense for the year ended December 31, 2023 includes $15.7 million of lease abandonment charges related to the cease use of certain leased office space recorded within restructuring and other related charges in the consolidated statements of operations. See Note 12 for further information on the Company’s restructuring actions. The Company did not have any material variable lease costs or short-term lease costs for the years ended December 31, 2023, 2022, and 2021. Cash paid for amounts included in the measurement of operating lease liabilities was $8.7 million, $10.7 million, and $12.4 million for the years ended December 31, 2023, 2022, and 2021, respectively.

As of December 31, 2023 and 2022, the weighted-average remaining lease term of the Company’s operating leases was 2.8 and 3.8 years, respectively. As of December 31, 2023 and 2022, the weighted-average discount rate used to measure the present value of the operating lease liabilities was 4.3%.

The Company’s future minimum lease payments under non-cancelable operating leases as of December 31, 2023 were as follows (in thousands):


Year Ending December 31,	Minimum Lease Payments
2024	$	8,784
2025		10,741
2026		7,231
Total minimum lease payments		26,756
Less: Imputed interest		(1,475	)
Present value of future minimum lease payments	$	25,281

Purchase Obligations

As of December 31, 2023, 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
2024	$	162,815
2025		184,585
2026		203,995
2027		169,410
2028		22,790
Total	$	743,595

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, 2023 and 2022, the Company is not aware of any matters that would individually or taken together have a material adverse effect on the Company’s 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 and the maximum potential amount of future payments the Company could be required to make under these agreements is not determinable. As of December 31, 2023 and 2022, the Company has not 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, 2023, 2022, and 2021 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, 2023 and 2022, the Company has not incurred material costs to defend lawsuits or settle claims related to these indemnification agreements.

Fair Value of Financial Instruments (Tables)

12 Months Ended

Dec. 31, 2023

Fair Value Disclosures [Abstract]

Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis

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


	December 31, 2023
	Level 1		Level 2		Total
Assets:
Cash equivalents:
Money market funds	$	264,923	$	-	$	264,923
U.S. treasury securities		-		52,130		52,130
Marketable securities:
U.S. treasury securities		-		833,137		833,137
U.S. agency obligations		-		402,759		402,759
Corporate notes and bonds		-		279,709		279,709
Commercial paper		-		35,404		35,404
Derivative instruments:
Foreign currency forward contracts		-		3,219		3,219
Total assets	$	264,923	$	1,606,358	$	1,871,281
Liabilities:
Derivative instruments:
Foreign currency forward contracts	$	-	$	1,272	$	1,272
Total liabilities	$	-	$	1,272	$	1,272


	December 31, 2022
	Level 1		Level 2		Total
Assets:
Cash equivalents:
Money market funds	$	367,699	$	-	$	367,699
U.S. treasury securities		-		12,971		12,971
U.S. agency obligations		-		2,000		2,000
Marketable securities:
U.S. treasury securities		-		1,029,583		1,029,583
U.S. agency obligations		-		270,251		270,251
Corporate notes and bonds		-		157,842		157,842
Commercial paper		-		33,368		33,368
Derivative instruments:
Foreign currency forward contracts		-		672		672
Total assets	$	367,699	$	1,506,687	$	1,874,386
Liabilities:
Derivative instruments:
Foreign currency forward contracts	$	-	$	19	$	19
Total liabilities	$	-	$	19	$	19

Stockholders' Equity - Additional Information (Details) $ / shares in Units, $ in Thousands	1 Months Ended	12 Months Ended
	Jun. 30, 2021 USD ($) shares	Dec. 31, 2023 USD ($) Vote $ / shares shares	Dec. 31, 2022 USD ($) $ / shares shares	Dec. 31, 2021 USD ($) $ / shares
Class Of Stock [Line Items]
Preferred Stock, Shares Authorized \| shares		10,000,000	10,000,000
Preferred Stock, Par or Stated Value Per Share \| $ / shares		$ 0.00001	$ 0.00001
Conversion, percent threshold		10.00%
Common stock charitable donation expense \| $		$ 0	$ 0	$ 13,290
Common stock reserved for issuance (in shares) \| shares		100,282,213	105,046,525
Intrinsic value of options exercised \| $		$ 241,000	$ 382,400	$ 976,500
Weighted average grant date fair value per share of options granted \| $ / shares		$ 0	$ 0	$ 12.43
Grant-date fair value of stock options vested \| $		$ 62,800	$ 108,100	$ 63,600
Shares early exercised and repurchase \| shares		135,013	578,119
Liabilities for early exercise of unvested stock options and other liabilities \| $		$ 1,300	$ 4,000
Stock based compensation expense \| $		$ 349,833	$ 277,656	$ 155,624
Cumulative stock-based compensation expense \| $	$ 3,800
Expected dividend yield		0.00%		0.00%
Unrecognized stock-based compensation expense \| $		$ 668,700
Unrecognized stock-based compensation expense, weighted-average period		2 years
Common Class A [Member]
Class Of Stock [Line Items]
Common Stock, Shares Authorized \| shares		1,000,000,000	1,000,000,000
Common stock, voting rights, votes per share \| Vote		1
Number of new stock issued during the period \| shares	250,000
Common stock charitable donation expense \| $				$ 13,300
Common Stock, Par Value \| $ / shares		$ 0.00001	$ 0.00001
Common Class B [Member]
Class Of Stock [Line Items]
Common Stock, Shares Authorized \| shares		500,000,000	500,000,000
Common stock, voting rights, votes per share \| Vote		10
Common Stock, Par Value \| $ / shares		$ 0.00001	$ 0.00001
2021 Plan [Member] \| Common Class A [Member]
Class Of Stock [Line Items]
Common stock reserved for issuance (in shares) \| shares		25,812,876
2021 Employee Stock Purchase Plan [Member]
Class Of Stock [Line Items]
Common stock reserved for issuance (in shares) \| shares		8,166,130	6,493,913
Expected dividend yield		0.00%	0.00%	0.00%
2021 Employee Stock Purchase Plan [Member] \| Common Class A [Member]
Class Of Stock [Line Items]
Common stock reserved for issuance (in shares) \| 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 \| shares		2,875,255
Restricted Stock Units (RSUs) [Member]
Class Of Stock [Line Items]
Total grant-date fair value of RSUs vested \| $		$ 281,500	$ 160,300	$ 22,200
Stock based compensation expense \| $	$ 6,800
Restricted Stock Units (RSUs) [Member] \| Maximum [Member]
Class Of Stock [Line Items]
Service based vesting period		4 years
Restricted Stock Units (RSUs) [Member] \| Minimum [Member]
Class Of Stock [Line Items]
Service based vesting period		2 years

Net Loss Per Share

12 Months Ended

Dec. 31, 2023

Earnings Per Share [Abstract]

Net Loss Per Share

14. Net Loss Per Share

The following table presents the calculation of basic and diluted net loss per share attributable to the Company’s Class A and Class B common stockholders (in thousands, except share and per share data):


	Year Ended December 31,
	2023			2022			2021
Numerator:
Net loss	$	(442,746	)	$	(452,551	)	$	(342,801	)
Denominator:
Weighted-average shares used to compute net loss per share, basic and diluted		300,727,487			280,080,357			188,627,720
Net loss per share, basic and diluted	$	(1.47	)	$	(1.62	)	$	(1.82	)

The following outstanding potentially dilutive shares were excluded from the computation of diluted net loss per share attributable to the Company’s Class A and Class B common stockholders for the periods presented because the impact of including them would have been anti-dilutive:


	December 31, 2023		December 31, 2022		December 31, 2021
Stock options		31,134,573		45,299,079		61,926,383
Unvested early exercised stock options		135,013		578,119		2,164,577
RSUs		23,692,366		19,953,456		6,434,508
ESPP		870,502		1,428,206		1,322,476
Shares issuable upon conversion of the 2027 Notes		10,992,960		10,992,960		10,992,960
Total		66,825,414		78,251,820		82,840,904

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.

Restructuring and Other Related Charges - Schedule of Restructuring Related Employee Termination Benefits Included in Accrued Expenses and Other Current Liabilities (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2021
Restructuring Cost and Reserve [Line Items]
Restructuring charges	$ 34,854	$ 0	$ 0
Employee Termination Benefits [Member]
Restructuring Cost and Reserve [Line Items]
Balance as of January 1, 2023	0
Restructuring charges	19,187
Cash payments	(19,187)
Balance as of December 31, 2023	$ 0	$ 0

- Definition

Line items represent financial concepts included in a table. These concepts are used to disclose reportable information associated with domain members defined in one or many axes to the table.

+ References + Details

Business Combinations, Goodwill, and Intangible Assets

12 Months Ended

Dec. 31, 2023

Business Combination, Intangible Assets, and Goodwill [ Abstract]

Business Combinations, Goodwill, and Intangible Assets

7. Business Combinations, Goodwill, and Intangible Assets

Business Combinations

In January 2023, the Company acquired all outstanding shares of immerok GmbH (“Immerok”), an Apache Flink stream processing managed services company, for purchase consideration of $54.9 million in cash. The Company acquired Immerok primarily for its talent and developed technology. In allocating the purchase consideration, the Company recorded $9.1 million of cash acquired, $2.6 million as a developed technology intangible asset, to be amortized on a straight-line basis over an estimated useful life of five years, and $43.5 million of goodwill. The goodwill is primarily attributed to the assembled workforce and expected synergies arising from the acquisition, and is not deductible for income tax purposes.

The Company also entered into holdback agreements with certain employees of Immerok, pursuant to which the Company will pay up to an aggregate of $52.3 million in cash. The vesting and payout of the holdback is subject to continued employment and achievement of certain milestones over three years, and is recorded as post-combination compensation expense within operating expenses over the requisite service period for accounting purposes. During the year ended December 31, 2023, the Company recognized compensation expense of $17.4 million related to the holdback agreements.

In December 2023, the Company acquired certain assets of Noteable, Inc. for purchase consideration of $10.0 million in cash. The Company has accounted for this transaction as a business combination. In allocating the purchase consideration, the Company recorded $1.5 million as a developed technology intangible asset, to be amortized on a straight-line basis over an estimated useful life of one year, and $8.5 million of goodwill, which is deductible for income tax purposes.

Transaction costs associated with each of the business combinations above were not material during the year ended December 31, 2023 and were recorded as general and administrative expenses in the consolidated statements of operations. From the respective dates of acquisition, the results of operations of the business combinations included in the Company’s consolidated financial statements were not material. Pro forma results of operations have not been presented because they were not material to the consolidated results of operations.

Goodwill

Goodwill as of December 31, 2023 was $52.0 million. No goodwill was recorded as of December 31, 2022.

Intangible Assets, Net

Intangible assets, net consisted of the following (in thousands):


	December 31, 2023
	Gross		Accumulated Amortization			Net
Developed technology	$	4,056	$	(564	)	$	3,492
Total	$	4,056	$	(564	)	$	3,492

Amortization expense was not material for the year ended December 31, 2023.

As of December 31, 2023, future amortization expense is expected to be as follows (in thousands):


Year Ending December 31,	Amount
2024	$	1,947
2025		511
2026		511
2027		511
2028		12
Total	$	3,492

Marketable Securities - Schedule of Fair Value and Amortized Cost of Marketable Securities (Details) - USD ($) $ in Thousands	Dec. 31, 2023	Dec. 31, 2022
Marketable Securities [Line Items]
Amortized Cost	$ 1,552,005	$ 1,501,125
Unrealized Gains	1,694	94
Unrealized Losses	(2,690)	(10,175)
Fair Value	1,551,009	1,491,044
U.S. Treasury Securities [Member]
Marketable Securities [Line Items]
Amortized Cost	834,235	1,033,587
Unrealized Gains	257	68
Unrealized Losses	(1,355)	(4,072)
Fair Value	833,137	1,029,583
U.S. Agency Obligations [Member]
Marketable Securities [Line Items]
Amortized Cost	403,035	273,804
Unrealized Gains	599	17
Unrealized Losses	(875)	(3,570)
Fair Value	402,759	270,251
Corporate Notes and Bonds [Member]
Marketable Securities [Line Items]
Amortized Cost	279,328	160,208
Unrealized Gains	838	9
Unrealized Losses	(457)	(2,375)
Fair Value	279,709	157,842
Commercial Paper [Member]
Marketable Securities [Line Items]
Amortized Cost	35,407	33,526
Unrealized Gains	0	0
Unrealized Losses	(3)	(158)
Fair Value	$ 35,404	$ 33,368

Consolidated Statements of Redeemable Convertible Preferred Stock and Stockholders' Equity (Deficit) - USD ($) $ in Thousands	Total	Redeemable Convertible Preferred Stock [Member]	Convertible Founder Stock [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, 2020		$ 574,634
Balance (shares) at Dec. 31, 2020		115,277,850
Balance at Dec. 31, 2020	$ (306,249)			$ 1		$ 99,575	$ 228	$ (406,053)
Balance (shares) at Dec. 31, 2020			635,818	109,447,843
Issuance of common stock upon early exercise of unvested options, net of repurchases (shares)				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)				7,072,147	13,021,053
Vesting of restricted stock units (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)
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
Issuance of Class A common stock pursuant to charitable donation (shares)					250,000
Purchase of Capped Calls	(90,970)					(90,970)
Other comprehensive income (loss), net of tax	(1,058)						(1,058)
Net Income (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					271,801,882
Issuance of common stock upon early exercise of unvested options (shares)					59,185
Repurchases of unvested common stock (shares)					(157,672)
Vesting of early exercised options	11,467					11,467
Issuance of common stock upon exercise of vested options	42,767					42,767
Issuance of common stock upon exercise of vested options (shares)					12,139,056
Vesting of restricted stock units (shares)					4,155,049
Stock-based compensation	285,200					285,200
Issuance of Class A common stock pursuant to charitable donation	0
Issuance of common stock under employee stock purchase plan	40,939					40,939
Issuance of common stock under employee stock purchase plan (shares)					1,386,680
Other comprehensive income (loss), net of tax	(8,626)						(8,626)
Net Income (Loss)	(452,551)							(452,551)
Balance at Dec. 31, 2022	769,477				$ 3	1,980,335	(9,456)	(1,201,405)
Balance (shares) at Dec. 31, 2022					289,384,180
Repurchases of unvested common stock (shares)					(35,203)
Vesting of early exercised options	2,834					2,834
Issuance of common stock upon exercise of vested options	$ 73,640					73,640
Issuance of common stock upon exercise of vested options (shares)	11,454,829				11,454,829
Vesting of restricted stock units (shares)					9,486,112
Stock-based compensation	$ 367,776					367,776
Issuance of Class A common stock pursuant to charitable donation	0
Issuance of common stock under employee stock purchase plan	28,708					28,708
Issuance of common stock under employee stock purchase plan (shares)					1,221,624
Other comprehensive income (loss), net of tax	10,726						10,726
Net Income (Loss)	(442,746)							(442,746)
Balance at Dec. 31, 2023	$ 810,415				$ 3	$ 2,453,293	$ 1,270	$ (1,644,151)
Balance (shares) at Dec. 31, 2023					311,511,542

Consolidated Statements of Comprehensive Loss - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2021
Statement of Comprehensive Income [Abstract]
Net Income (Loss)	$ (442,746)	$ (452,551)	$ (342,801)
Other comprehensive income (loss), net of tax:
Net unrealized gain (loss) on marketable securities	9,099	(9,279)	(1,058)
Net unrealized gain on derivative instruments	1,627	653	0
Other comprehensive income (loss), net of tax	10,726	(8,626)	(1,058)
Total comprehensive loss	$ (432,020)	$ (461,177)	$ (343,859)

- Definition

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

+ References

+ Details

- Definition

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

+ References

Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef
-Name Accounting Standards Codification
-Section 50
-Paragraph 2
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Reference 2: http://www.xbrl.org/2003/role/disclosureRef
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-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481674/830-30-50-1

Reference 3: http://www.xbrl.org/2003/role/disclosureRef
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-Section 45
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-URI https://asc.fasb.org//1943274/2147481694/830-30-45-17

Reference 4: http://www.xbrl.org/2003/role/disclosureRef
-Topic 944
-SubTopic 220
-Name Accounting Standards Codification
-Section S99
-Paragraph 1
-Subparagraph (SX 210.7-04(19))
-Publisher FASB
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Reference 5: http://www.xbrl.org/2009/role/commonPracticeRef
-Topic 220
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-Name Accounting Standards Codification
-Section 50
-Paragraph 4
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-URI https://asc.fasb.org//1943274/2147482765/220-10-50-4

Reference 6: http://www.xbrl.org/2009/role/commonPracticeRef
-Topic 220
-SubTopic 10
-Name Accounting Standards Codification
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-URI https://asc.fasb.org//1943274/2147482765/220-10-50-5

Reference 7: http://www.xbrl.org/2003/role/disclosureRef
-Topic 830
-SubTopic 30
-Name Accounting Standards Codification
-Section 45
-Paragraph 20
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-URI https://asc.fasb.org//1943274/2147481694/830-30-45-20

Reference 8: http://www.xbrl.org/2003/role/disclosureRef
-Topic 220
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Reference 9: http://www.xbrl.org/2003/role/disclosureRef
-Topic 942
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-URI https://asc.fasb.org//1943274/2147483589/942-220-S99-1

Reference 10: http://www.xbrl.org/2003/role/disclosureRef
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-Paragraph 1B
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-URI https://asc.fasb.org//1943274/2147482790/220-10-45-1B

Reference 11: http://fasb.org/us-gaap/role/ref/legacyRef
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-Paragraph 15
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Reference 12: http://www.xbrl.org/2003/role/disclosureRef
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-Section 45
-Paragraph 1A
-Subparagraph (b)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482790/220-10-45-1A

+ Details

Balance Sheet Components - Additional Information (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2021
Property, Plant and Equipment [Abstract]
Depreciation	$ 13.4	$ 7.6	$ 3.6

Consolidated Balance Sheets (Parenthetical) - $ / shares	Dec. 31, 2023	Dec. 31, 2022
Preferred Stock, Par Value	$ 0.00001	$ 0.00001
Preferred Stock, Shares Authorized	10,000,000	10,000,000
Preferred Stock, Shares Issued	0	0
Preferred Stock, Shares Outstanding	0	0
Class A Common Stock [Member]
Common Stock, Par Value	$ 0.00001	$ 0.00001
Common Stock, Shares Authorized	1,000,000,000	1,000,000,000
Common Stock, Shares, Issued	224,737,415	172,483,134
Common Stock, Shares, Outstanding	224,737,415	172,483,134
Class B Common Stock [Member]
Common Stock, Par Value	$ 0.00001	$ 0.00001
Common Stock, Shares Authorized	500,000,000	500,000,000
Common Stock, Shares, Issued	86,774,127	116,901,046
Common Stock, Shares, Outstanding	86,774,127	116,901,046

Fair Value of Financial Instruments

12 Months Ended

Dec. 31, 2023

Fair Value Disclosures [Abstract]

Fair Value of Financial Instruments

4. Fair Value of Financial Instruments

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


	December 31, 2023
	Level 1		Level 2		Total
Assets:
Cash equivalents:
Money market funds	$	264,923	$	-	$	264,923
U.S. treasury securities		-		52,130		52,130
Marketable securities:
U.S. treasury securities		-		833,137		833,137
U.S. agency obligations		-		402,759		402,759
Corporate notes and bonds		-		279,709		279,709
Commercial paper		-		35,404		35,404
Derivative instruments:
Foreign currency forward contracts		-		3,219		3,219
Total assets	$	264,923	$	1,606,358	$	1,871,281
Liabilities:
Derivative instruments:
Foreign currency forward contracts	$	-	$	1,272	$	1,272
Total liabilities	$	-	$	1,272	$	1,272


	December 31, 2022
	Level 1		Level 2		Total
Assets:
Cash equivalents:
Money market funds	$	367,699	$	-	$	367,699
U.S. treasury securities		-		12,971		12,971
U.S. agency obligations		-		2,000		2,000
Marketable securities:
U.S. treasury securities		-		1,029,583		1,029,583
U.S. agency obligations		-		270,251		270,251
Corporate notes and bonds		-		157,842		157,842
Commercial paper		-		33,368		33,368
Derivative instruments:
Foreign currency forward contracts		-		672		672
Total assets	$	367,699	$	1,506,687	$	1,874,386
Liabilities:
Derivative instruments:
Foreign currency forward contracts	$	-	$	19	$	19
Total liabilities	$	-	$	19	$	19

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 U.S. treasury securities, U.S. agency obligations, corporate notes and bonds, commercial paper, and foreign currency forward contracts 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 instruments between valuation levels during the years ended December 31, 2023, 2022, and 2021.

As of December 31, 2023 and 2022, the total estimated fair value of the Company’s 0% convertible senior notes due 2027 was $917.9 million and $837.3 million, respectively. The fair value was determined based on the quoted price of the convertible senior notes in an inactive market on the last trading day of the reporting period and is classified within Level 2 of the fair value hierarchy. See Note 8 for further information on the Company’s convertible senior notes.

- 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

Restructuring and Other Related Charges

12 Months Ended

Dec. 31, 2023

Restructuring and Related Activities [Abstract]

Restructuring and Other Related Charges

12. Restructuring and Other Related Charges

In January 2023, the Company approved restructuring actions (the “Restructuring Plan”) to adjust its cost structure and real estate footprint. The Restructuring Plan includes a reduction of approximately 8% of the Company’s global workforce as of December 31, 2022. During the year ended December 31, 2023, the Company recorded restructuring and other related charges of $34.9 million, consisting of $19.2 million related to employee transition and severance payments, employee benefits, and related facilitation costs, and $15.7 million of lease abandonment charges. The Restructuring Plan was substantially completed as of June 30, 2023.

The following table summarizes the Company’s liability for restructuring-related employee termination benefits included in accrued expenses and other current liabilities on the consolidated balance sheets (in thousands):


	Employee Termination Benefits
Balance as of January 1, 2023	$	-
Restructuring charges		19,187
Cash payments		(19,187	)
Balance as of December 31, 2023	$	-

Revenue - Schedule of Activity of Deferred Contract Acquisition Costs (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2021
Revenue from Contract with Customer [Abstract]
Beginning balance	$ 104,284	$ 78,824
Capitalization of contract acquisition costs	61,356	62,799
Amortization of deferred contract acquisition costs	(45,888)	(37,339)	$ (26,697)
Ending balance	$ 119,752	$ 104,284	$ 78,824

Document and Entity Information - USD ($) $ in Millions	12 Months Ended
Document and Entity Information - USD ($) $ in Millions	Dec. 31, 2023	Feb. 07, 2024
Document Type	10-K
Amendment Flag	false
Icfr Auditor Attestation Flag	true
Document Period End Date	Dec. 31, 2023
Document Fiscal Year Focus	2023
Document Fiscal Period Focus	FY
Trading Symbol	CFLT
Entity Registrant Name	CONFLUENT, INC.
Entity Central Index Key	0001699838
Current Fiscal Year End Date	--12-31
Entity Well-known Seasoned Issuer	Yes
Document Annual Report	true
Entity voluntary filers	No
Entity Filer Category	Large Accelerated Filer
Entity Emerging Growth Company	false
Entity Small Business	false
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Shell Company	false
Title of 12(b) Security	Class A Common Stock, par value $0.00001 per share
Entity File Number	001-40526
Security Exchange Name	NASDAQ
Entity Incorporation, State or Country Code	DE
Entity Tax Identification Number	47-1824387
Entity Address, Address Line One	899 W. Evelyn Avenue
Entity Address, City or Town	Mountain View
Entity Address, State or Province	CA
Entity Address, Postal Zip Code	94041
City Area Code	800
Local Phone Number	439-3207
Document Transition Report	false
Documents Incorporated by Reference	DOCUMENTS INCORPORATED BY REFERENCE Portions of the Registrant’s definitive Proxy Statement relating to the 2024 Annual Meeting of Stockholders are incorporated herein by reference in Part III of this Annual Report on Form 10-K to the extent stated herein. Such Proxy Statement will be filed with the Securities and Exchange Commission within 120 days of the Registrant’s fiscal year ended December 31, 2023.
Entity Public Float	$ 7,356.7
Auditor Name	PricewaterhouseCoopers LLP
Auditor Location	San Francisco, California
Auditor Firm ID	238
Document Financial Statement Error Correction Flag	false
Class A Common Stock [Member]
Entity Common Stock, Shares Outstanding		225,856,765
Class B Common Stock [Member]
Entity Common Stock, Shares Outstanding		86,765,099

Commitments and Contingencies - Schedule of Future Minimum Lease Payments under Non-Cancelable Operating Leases (Details) $ in Thousands	Dec. 31, 2023 USD ($)
Commitments and Contingencies Disclosure [Abstract]
2024	$ 8,784
2025	10,741
2026	7,231
Total minimum lease payments	26,756
Less: Imputed interest	(1,475)
Present value of future minimum lease payments	$ 25,281

Stockholders' Equity - Common Stock Reserved for Future Issuance (Details) - shares	Dec. 31, 2023	Dec. 31, 2022
Class Of Stock [Line Items]
Common stock reserved for issuance (in shares)	100,282,213	105,046,525
2014 Stock Plan [Member] \| Employee Stock Option
Class Of Stock [Line Items]
Common stock reserved for issuance (in shares)	31,112,073	45,276,579
2014 Stock Plan [Member] \| RSUs [Member]
Class Of Stock [Line Items]
Common stock reserved for issuance (in shares)	1,042,303	2,224,138
2021 Equity Incentive Plan [Member]
Class Of Stock [Line Items]
Common stock reserved for issuance (in shares)	37,289,144	33,300,077
2021 Equity Incentive Plan [Member] \| Employee Stock Option
Class Of Stock [Line Items]
Common stock reserved for issuance (in shares)	22,500	22,500
2021 Equity Incentive Plan [Member] \| RSUs [Member]
Class Of Stock [Line Items]
Common stock reserved for issuance (in shares)	22,650,063	17,729,318
2021 Employee Stock Purchase Plan [Member]
Class Of Stock [Line Items]
Common stock reserved for issuance (in shares)	8,166,130	6,493,913

- Definition

Line items represent financial concepts included in a table. These concepts are used to disclose reportable information associated with domain members defined in one or many axes to the table.

+ References

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+ Details

Marketable Securities - Additional Information (Details) - USD ($)	Dec. 31, 2023	Dec. 31, 2022
Investments, Debt and Equity Securities [Abstract]
Allowance for credit losses	$ 0	$ 0

Income Taxes - Schedule of reconciliation of income tax benefit (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2021
Income Tax Disclosure [Abstract]
Income tax benefit computed at federal statutory rate	$ (85,401)	$ (93,714)	$ (71,322)
Foreign rate differential	2,107	2,668	1,214
Stock-based compensation expense	88	(14,145)	(104,993)
Change in valuation allowance	97,923	122,724	192,301
Research and development credits	(13,049)	(11,581)	(14,483)
Intra-group transfer of acquired intellectual property	26,358	0	0
Non-deductible expenses	4,495	0	0
Other	3,551	341	457
Provision for income taxes	$ 36,072	$ 6,293	$ 3,174

Business Combinations, Goodwill, and Intangible Assets (Tables)

12 Months Ended

Dec. 31, 2023

Business Combination, Intangible Assets, and Goodwill [ Abstract]

Schedule of Intangible Assets, Net

Intangible assets, net consisted of the following (in thousands):


	December 31, 2023
	Gross		Accumulated Amortization			Net
Developed technology	$	4,056	$	(564	)	$	3,492
Total	$	4,056	$	(564	)	$	3,492

Schedule of Expected Future Amortization Expense

As of December 31, 2023, future amortization expense is expected to be as follows (in thousands):


Year Ending December 31,	Amount
2024	$	1,947
2025		511
2026		511
2027		511
2028		12
Total	$	3,492

Basis of Presentation and Summary of Significant Accounting Policies (Additional Information) (Details)	12 Months Ended
	Dec. 31, 2023 USD ($) Segment	Dec. 31, 2022 USD ($)	Dec. 31, 2021 USD ($)
Net foreign exchange gain losses		$ 2,500,000
Unbilled receivables balance	$ 64,200,000	51,300,000
Description of Derivative Instruments	13 months
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
Goodwill impairment charges	0
Advertisement cost	$ 27,700,000	28,700,000	26,700,000
Number of operating segment \| Segment	1
Number of reportable segment \| Segment	1
Minimum [Member]
Share based arrangement vesting period, years	2 years
Maximum [Member]
Share based arrangement vesting period, years	4 years
Capitalized Software Costs [Member]
Capitalized software development costs	$ 0
Impairment of capitalized internal use software	$ 0	$ 0	$ 0
Capitalized Software Costs [Member] \| Minimum [Member]
Finite lived intangible assets useful life, years	3 years
Capitalized Software Costs [Member] \| Maximum [Member]
Finite lived intangible assets useful life, years	5 years
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%

Fair Value of Financial Instruments - Financial Assets Measured at Fair Value on Recurring Basis (Details) - USD ($) $ in Thousands	Dec. 31, 2023	Dec. 31, 2022
Marketable securities:
Fair value, Marketable securities	$ 1,551,009	$ 1,491,044
Derivative instruments:
Fair value, Derivative asset	3,219	672
Derivative instruments:
Fair value, Derivative liability	1,272	19
U.S. Treasury Securities [Member]
Marketable securities:
Fair value, Marketable securities	833,137	1,029,583
Corporate Notes and Bonds [Member]
Marketable securities:
Fair value, Marketable securities	279,709	157,842
Commercial Paper [Member]
Marketable securities:
Fair value, Marketable securities	35,404	33,368
Fair Value, Measurements, Recurring [Member]
Cash equivalents, Marketable securities and Derivative instruments:
Assets, Fair Value	1,871,281	1,874,386
Liability, Fair value	1,272	19
Fair Value, Measurements, Recurring [Member] \| U.S. Treasury Securities [Member]
Cash equivalents:
Fair value, Cash equivalents	52,130	12,971
Marketable securities:
Fair value, Marketable securities	833,137	1,029,583
Fair Value, Measurements, Recurring [Member] \| U.S. Agency Obligations [Member]
Cash equivalents:
Fair value, Cash equivalents		2,000
Marketable securities:
Fair value, Marketable securities	402,759	270,251
Fair Value, Measurements, Recurring [Member] \| Corporate Notes and Bonds [Member]
Marketable securities:
Fair value, Marketable securities	279,709	157,842
Fair Value, Measurements, Recurring [Member] \| Commercial Paper [Member]
Marketable securities:
Fair value, Marketable securities	35,404	33,368
Fair Value, Measurements, Recurring [Member] \| Foreign Currency Forward Contracts [Member]
Derivative instruments:
Fair value, Derivative asset	3,219	672
Derivative instruments:
Fair value, Derivative liability	1,272	19
Fair Value, Measurements, Recurring [Member] \| Money Market Funds [Member]
Cash equivalents:
Fair value, Cash equivalents	264,923	367,699
Fair Value, Measurements, Recurring [Member] \| Level 1 [Member]
Cash equivalents, Marketable securities and Derivative instruments:
Assets, Fair Value	264,923	367,699
Liability, Fair value	0	0
Fair Value, Measurements, Recurring [Member] \| Level 1 [Member] \| U.S. Treasury Securities [Member]
Cash equivalents:
Fair value, Cash equivalents	0	0
Marketable securities:
Fair value, Marketable securities	0	0
Fair Value, Measurements, Recurring [Member] \| Level 1 [Member] \| U.S. Agency Obligations [Member]
Cash equivalents:
Fair value, Cash equivalents		0
Marketable securities:
Fair value, Marketable securities	0	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]
Marketable securities:
Fair value, Marketable securities	0	0
Fair Value, Measurements, Recurring [Member] \| Level 1 [Member] \| Foreign Currency Forward Contracts [Member]
Derivative instruments:
Fair value, Derivative asset	0	0
Derivative instruments:
Fair value, Derivative liability	0	0
Fair Value, Measurements, Recurring [Member] \| Level 1 [Member] \| Money Market Funds [Member]
Cash equivalents:
Fair value, Cash equivalents	264,923	367,699
Fair Value, Measurements, Recurring [Member] \| Level 2 [Member]
Cash equivalents, Marketable securities and Derivative instruments:
Assets, Fair Value	1,606,358	1,506,687
Liability, Fair value	1,272	19
Fair Value, Measurements, Recurring [Member] \| Level 2 [Member] \| U.S. Treasury Securities [Member]
Cash equivalents:
Fair value, Cash equivalents	52,130	12,971
Marketable securities:
Fair value, Marketable securities	833,137	1,029,583
Fair Value, Measurements, Recurring [Member] \| Level 2 [Member] \| U.S. Agency Obligations [Member]
Cash equivalents:
Fair value, Cash equivalents		2,000
Marketable securities:
Fair value, Marketable securities	402,759	270,251
Fair Value, Measurements, Recurring [Member] \| Level 2 [Member] \| Corporate Notes and Bonds [Member]
Marketable securities:
Fair value, Marketable securities	279,709	157,842
Fair Value, Measurements, Recurring [Member] \| Level 2 [Member] \| Commercial Paper [Member]
Marketable securities:
Fair value, Marketable securities	35,404	33,368
Fair Value, Measurements, Recurring [Member] \| Level 2 [Member] \| Foreign Currency Forward Contracts [Member]
Derivative instruments:
Fair value, Derivative asset	3,219	672
Derivative instruments:
Fair value, Derivative liability	1,272	19
Fair Value, Measurements, Recurring [Member] \| Level 2 [Member] \| Money Market Funds [Member]
Cash equivalents:
Fair value, Cash equivalents	$ 0	$ 0

Restructuring and Other Related Charges (Tables)

12 Months Ended

Dec. 31, 2023

Restructuring and Related Activities [Abstract]

Schedule of Restructuring Related Employee Termination Benefits Included in Accrued Expenses and Other Current Liabilities


	Employee Termination Benefits
Balance as of January 1, 2023	$	-
Restructuring charges		19,187
Cash payments		(19,187	)
Balance as of December 31, 2023	$	-

Derivative Instruments and Hedging - Schedule of Notional Amounts of the Company's Derivative Instruments (Details) - USD ($) $ in Thousands	Dec. 31, 2023	Dec. 31, 2022
Derivatives, Fair Value [Line Items]
Total derivative instruments	$ 225,535	$ 96,097
Designated as Hedging Instrument [Member]
Derivatives, Fair Value [Line Items]
Total derivative instruments	125,617	96,097
Not Designated as Hedging Instrument [Member]
Derivatives, Fair Value [Line Items]
Total derivative instruments	$ 99,918	$ 0

Convertible Senior Notes - Additional information (Details) $ / shares in Units, $ in Thousands, shares in Millions	12 Months Ended
	Dec. 31, 2023 USD ($) Days $ / shares shares	Dec. 31, 2022 USD ($)	Dec. 31, 2021 USD ($)
Debt Instrument [Line Items]
Debt instrument net proceed after discounts and cost	$ 0	$ (786)	$ 1,081,300
Amortization of debt issuance costs	3,813	$ 3,799	$ 187
Zero Percentage Convertible senior notes due 2027
Debt Instrument [Line Items]
Debt Instrument Face Amount	1,100,000
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
Number of trading days \| Days	30
Percentage of principal amount of debt redeemed	100.00%
Debt Issuance Costs, Gross	$ 19,500
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
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
Debt instrument percentage price	130.00%
Zero Percentage Convertible senior notes due 2027 \| Maximum [Member]
Debt Instrument [Line Items]
Debt Instrument Face Amount	$ 100,000
Debt instrument percentage price	98.00%
Zero Percentage Convertible senior notes due 2027 \| Minimum [Member]
Debt Instrument [Line Items]
Number of trading days \| Days	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
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

12 Months Ended

Dec. 31, 2023

Convertible Debt [Abstract]

Convertible Senior Notes

8. 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, is 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). No special interest has been paid in connection with the 2027 Notes to date. 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, 2023, the conditions allowing holders of the 2027 Notes to convert have not been met. The 2027 Notes were therefore not convertible and were classified as long-term debt on the Company’s consolidated balance sheets as of December 31, 2023.

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 statements 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 years ended December 31, 2023, 2022, and 2021 was $3.8 million, $3.8 million, and $0.2 million, respectively.

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


	December 31, 2023			December 31, 2022
Principal	$	1,100,000		$	1,100,000
Unamortized debt issuance costs		(11,687	)		(15,500	)
Net carrying amount	$	1,088,313		$	1,084,500

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://www.xbrl.org/2003/role/disclosureRef
-Topic 470
-SubTopic 20
-Name Accounting Standards Codification
-Section 50
-Paragraph 1B
-Subparagraph (h)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481139/470-20-50-1B

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Topic 235
-SubTopic 10
-Name Accounting Standards Codification
-Section S99
-Paragraph 1
-Subparagraph (SX 210.4-08(c))
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147480678/235-10-S99-1

Reference 3: http://fasb.org/us-gaap/role/ref/legacyRef
-Topic 470
-Name Accounting Standards Codification
-Publisher FASB
-URI https://asc.fasb.org//470/tableOfContent

Reference 4: http://www.xbrl.org/2003/role/disclosureRef
-Topic 470
-SubTopic 20
-Name Accounting Standards Codification
-Section 50
-Paragraph 1B
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481139/470-20-50-1B

Reference 5: http://www.xbrl.org/2003/role/disclosureRef
-Topic 470
-SubTopic 20
-Name Accounting Standards Codification
-Section 50
-Paragraph 1B
-Subparagraph (g)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481139/470-20-50-1B

Reference 6: http://www.xbrl.org/2003/role/disclosureRef
-Topic 470
-SubTopic 20
-Name Accounting Standards Codification
-Section 50
-Paragraph 1B
-Subparagraph (i)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481139/470-20-50-1B

Reference 7: http://www.xbrl.org/2003/role/disclosureRef
-Topic 470
-SubTopic 20
-Name Accounting Standards Codification
-Section 50
-Paragraph 1C
-Subparagraph (a)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481139/470-20-50-1C

Reference 8: http://www.xbrl.org/2003/role/disclosureRef
-Topic 470
-SubTopic 20
-Name Accounting Standards Codification
-Section 50
-Paragraph 1C
-Subparagraph (b)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481139/470-20-50-1C

Reference 9: http://www.xbrl.org/2003/role/disclosureRef
-Topic 470
-SubTopic 20
-Name Accounting Standards Codification
-Section 50
-Paragraph 1C
-Subparagraph (c)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481139/470-20-50-1C

Reference 10: http://www.xbrl.org/2003/role/disclosureRef
-Topic 470
-SubTopic 20
-Name Accounting Standards Codification
-Section 50
-Paragraph 1E
-Subparagraph (b)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481139/470-20-50-1E

Reference 11: http://www.xbrl.org/2003/role/disclosureRef
-Topic 470
-SubTopic 20
-Name Accounting Standards Codification
-Section 50
-Paragraph 1I
-Subparagraph (a)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481139/470-20-50-1I

Reference 12: http://www.xbrl.org/2003/role/disclosureRef
-Topic 470
-SubTopic 20
-Name Accounting Standards Codification
-Section 50
-Paragraph 1I
-Subparagraph (b)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481139/470-20-50-1I

Reference 13: http://www.xbrl.org/2003/role/disclosureRef
-Topic 470
-SubTopic 20
-Name Accounting Standards Codification
-Section 50
-Paragraph 1I
-Subparagraph (d)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481139/470-20-50-1I

+ Details

Convertible Senior Notes (Tables)

12 Months Ended

Dec. 31, 2023

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, 2023			December 31, 2022
Principal	$	1,100,000		$	1,100,000
Unamortized debt issuance costs		(11,687	)		(15,500	)
Net carrying amount	$	1,088,313		$	1,084,500

Business Combinations, Goodwill, and Intangible Assets - Additional Information (Details) - USD ($)		12 Months Ended
	Jan. 09, 2023	Dec. 31, 2023	Dec. 31, 2022
Business Acquisition [Line Items]
Business acquisition, expense attributable to post combination services		$ 17,400,000
Goodwill		52,000,000	$ 0
Immerok GmbH [Member]
Business Acquisition [Line Items]
Purchase Consideration Amount	$ 54,900,000
Cash Acquired	9,100,000
Developed technology intangible asset	$ 2,600,000
Estimated useful life (in years)	5 years
Goodwill	$ 43,500,000
Holdback Agreement [Member]
Business Acquisition [Line Items]
Amout paid in cash	$ 52,300,000
Noteable, Inc [Member]
Business Acquisition [Line Items]
Cash Acquired		10,000,000
Developed technology intangible asset		$ 1,500,000
Estimated useful life (in years)		1 year
Goodwill		$ 8,500,000

Income Taxes - Schedule of Reconciliation of Income Tax Benefit Activity (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2021
Income Tax Disclosure [Abstract]
Beginning balance	$ 18,914	$ 12,530	$ 3,399
Gross increase for prior year tax positions	439	1	192
Gross decrease for prior year tax positions	(5)	(860)	0
Gross increase for current year tax positions	7,961	7,243	8,939
Ending balance	$ 27,309	$ 18,914	$ 12,530

Derivative Instruments and Hedging

12 Months Ended

Dec. 31, 2023

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Derivative Instruments and Hedging

5. Derivative Instruments and Hedging

In December 2022, the Company began entering into foreign currency forward contracts to manage its exposure to certain foreign currency exchange risks.

The following table summarizes the notional amounts of the Company’s derivative instruments (in thousands):


	December 31, 2023		December 31, 2022
Foreign currency forward contracts designated as hedging instruments	$	125,617	$	96,097
Foreign currency forward contracts not designated as hedging instruments		99,918		-
Total derivative instruments	$	225,535	$	96,097

The following table summarizes the fair value of the Company’s derivative instruments on the consolidated balance sheets (in thousands):


	Balance Sheet Location	December 31, 2023		December 31, 2022
Derivative Assets:
Foreign currency forward contracts designated as hedging instruments	Prepaid expenses and other current assets	$	1,789	$	672
Foreign currency forward contracts not designated as hedging instruments	Prepaid expenses and other current assets		906		-
Foreign currency forward contracts designated as hedging instruments	Other assets, non-current		524		-
Total derivative assets		$	3,219	$	672
Derivative Liabilities:
Foreign currency forward contracts designated as hedging instruments	Accrued expenses and other liabilities	$	18	$	19
Foreign currency forward contracts not designated as hedging instruments	Accrued expenses and other liabilities		1,239		-
Foreign currency forward contracts designated as hedging instruments	Other liabilities, non-current		15		-
Total derivative liabilities		$	1,272	$	19

The following table presents the activity of foreign currency forward contracts designated as hedging instruments and the impact of these derivatives on AOCI (in thousands):


	Year Ended December 31,
	2023			2022
Beginning balance	$	653		$	-
Net gain recognized in other comprehensive income (loss)		3,035			653
Net gain reclassified from AOCI to earnings		(1,408	)		-
Ending balance	$	2,280		$	653

As of December 31, 2023, net unrealized gains included in the balance of accumulated other comprehensive loss related to foreign currency forward contracts designated as hedging instruments was $2.3 million, the vast majority of which the Company expects to reclassify from accumulated other comprehensive loss into earnings over the next 12 months.

The following table summarizes the effect of foreign currency forward contracts on the consolidated statements of operations (in thousands):


	Year Ended December 31, 2023
	Derivatives Designated as Hedging Instruments		Derivatives Not Designated as Hedging Instruments
Cost of revenue - subscription	$	150	$	-
Cost of revenue - services		103		-
Research and development		325		-
Sales and marketing		614		-
General and administrative		216		-
Other income (expense), net		-		(83	)
Total gains (losses) recognized in earnings	$	1,408	$	(83	)

Stockholders' Equity - Schedule of Weighted-Average Assumptions to Estimate Fair Value of Employee Stock Purchase Rights (Details)	12 Months Ended
	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2021
Class of Stock [Line Items]
Expected term (in years)			6 years 2 months 1 day
Risk-free interest rate			1.10%
Expected dividend yield	0.00%		0.00%
2021 Employee Stock Purchase Plan [Member]
Class of Stock [Line Items]
Expected volatility, minimum	58.50%	55.00%	54.60%
Expected volatility, maximum	79.70%	82.10%	56.70%
Risk-free interest rate minimum	5.00%	0.70%
Risk-free interest rate maximum	5.50%	3.30%
Risk-free interest rate			0.10%
Expected dividend yield	0.00%	0.00%	0.00%
2021 Employee Stock Purchase Plan [Member] \| Minimum [Member]
Class of Stock [Line Items]
Expected term (in years)	5 months 26 days	5 months 26 days	7 months 17 days
2021 Employee Stock Purchase Plan [Member] \| Maximum [Member]
Class of Stock [Line Items]
Expected term (in years)	1 year	1 year	1 year 1 month 13 days

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

12 Months Ended

Dec. 31, 2023

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, equipment, and software		3 years
Furniture and fixtures		5 years
Leasehold improvements		Shorter of the remaining lease term or useful life

Business Combinations, Goodwill, and Intangible Assets - Schedule of Expected Future Amortization Expense (Details) $ in Thousands	Dec. 31, 2023 USD ($)
Business Combination, Intangible Assets, and Goodwill [ Abstract]
2024	$ 1,947
2025	511
2026	511
2027	511
2028	12
Total	$ 3,492

Net Loss Per Share (Tables)

12 Months Ended

Dec. 31, 2023

Earnings Per Share [Abstract]

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


	Year Ended December 31,
	2023			2022			2021
Numerator:
Net loss	$	(442,746	)	$	(452,551	)	$	(342,801	)
Denominator:
Weighted-average shares used to compute net loss per share, basic and diluted		300,727,487			280,080,357			188,627,720
Net loss per share, basic and diluted	$	(1.47	)	$	(1.62	)	$	(1.82	)

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


	December 31, 2023		December 31, 2022		December 31, 2021
Stock options		31,134,573		45,299,079		61,926,383
Unvested early exercised stock options		135,013		578,119		2,164,577
RSUs		23,692,366		19,953,456		6,434,508
ESPP		870,502		1,428,206		1,322,476
Shares issuable upon conversion of the 2027 Notes		10,992,960		10,992,960		10,992,960
Total		66,825,414		78,251,820		82,840,904

Marketable Securities - Schedule of Fair Value of Contractual Maturities (Details) - USD ($) $ in Thousands	Dec. 31, 2023	Dec. 31, 2022
Investments, Debt and Equity Securities [Abstract]
Due within one year, amortized cost	$ 1,264,302
Due after one year through five years, amortized cost	287,703
Amortized Cost	1,552,005	$ 1,501,125
Due within one year, fair value	1,262,136
Due after one year through five years, fair value	288,873
Fair Value	$ 1,551,009	$ 1,491,044

Organization and Description of Business - Additional Information (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2021
Class Of Stock [Line Items]
Proceeds from initial public offering, net of underwriting discounts and commissions	$ 0	$ 0	$ 786,600
Convertible Founder Stock [Member]
Class Of Stock [Line Items]
Convertible preferred stock, shares issued upon conversion			(635,818)

- Definition

Line items represent financial concepts included in a table. These concepts are used to disclose reportable information associated with domain members defined in one or many axes to the table.

+ References

+ Details

Restructuring and Other Related Charges - Additional Information (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2021
Restructuring Cost and Reserve [Line Items]
Restructuring charges	$ 34,854	$ 0	$ 0
Lease abandonment charges	15,667	$ 0	$ 0
Employee Termination Benefits [Member]
Restructuring Cost and Reserve [Line Items]
Restructuring charges	19,187
2023 Restructuring Plan
Restructuring Cost and Reserve [Line Items]
Reduction of global workforce, percentage		8.00%
Lease abandonment charges	$ 15,700

- Definition

Line items represent financial concepts included in a table. These concepts are used to disclose reportable information associated with domain members defined in one or many axes to the table.

+ 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, 2023	Dec. 31, 2022	Dec. 31, 2021
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items]
Antidilutive securities excluded from computation of earnings per share amount	66,825,414	78,251,820	82,840,904
Stock Option [Member]
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items]
Antidilutive securities excluded from computation of earnings per share amount	31,134,573	45,299,079	61,926,383
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	135,013	578,119	2,164,577
RSUs [Member]
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items]
Antidilutive securities excluded from computation of earnings per share amount	23,692,366	19,953,456	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	870,502	1,428,206	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	10,992,960	10,992,960

Revenue - Additional Information (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2021
Disaggregation Of Revenue [Line Items]
Revenue, remaining performance obligation, amount	$ 919.9
Revenue, remaining performance obligation, percentage	64.00%
Deferred revenue	$ 353.0	$ 322.8
Revenue recognized from deferred revenue	$ 285.6	$ 221.1	$ 141.7

- Definition

Line items represent financial concepts included in a table. These concepts are used to disclose reportable information associated with domain members defined in one or many axes to the table.

+ References + Details

Marketable Securities

12 Months Ended

Dec. 31, 2023

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, 2023
	Amortized Cost		Unrealized Gains		Unrealized Losses			Fair Value
U.S. treasury securities	$	834,235	$	257	$	(1,355	)	$	833,137
U.S. agency obligations		403,035		599		(875	)		402,759
Corporate notes and bonds		279,328		838		(457	)		279,709
Commercial paper		35,407		-		(3	)		35,404
Total marketable securities	$	1,552,005	$	1,694	$	(2,690	)	$	1,551,009


	December 31, 2022
	Amortized Cost		Unrealized Gains		Unrealized Losses			Fair Value
U.S. treasury securities	$	1,033,587	$	68	$	(4,072	)	$	1,029,583
U.S. agency obligations		273,804		17		(3,570	)		270,251
Corporate notes and bonds		160,208		9		(2,375	)		157,842
Commercial paper		33,526		-		(158	)		33,368
Total marketable securities	$	1,501,125	$	94	$	(10,175	)	$	1,491,044


	December 31, 2023
	Less than 12 Months					12 Months or Greater					Total
	Fair Value		Unrealized Losses			Fair Value		Unrealized Losses			Fair Value		Unrealized Losses
U.S. treasury securities	$	487,260	$	(1,074	)	$	46,130	$	(281	)	$	533,390	$	(1,355	)
U.S. agency obligations		206,105		(390	)		80,657		(485	)		286,762		(875	)
Corporate notes and bonds		100,295		(293	)		31,277		(164	)		131,572		(457	)
Commercial paper		6,810		(3	)		-		-			6,810		(3	)
Total	$	800,470	$	(1,760	)	$	158,064	$	(930	)	$	958,534	$	(2,690	)


	December 31, 2022
	Less than 12 Months					12 Months or Greater					Total
	Fair Value		Unrealized Losses			Fair Value		Unrealized Losses			Fair Value		Unrealized Losses
U.S. treasury securities	$	566,093	$	(2,892	)	$	167,817	$	(1,180	)	$	733,910	$	(4,072	)
U.S. agency obligations		201,846		(2,014	)		51,595		(1,556	)		253,441		(3,570	)
Corporate notes and bonds		90,287		(1,259	)		65,579		(1,116	)		155,866		(2,375	)
Commercial paper		33,368		(158	)		-		-			33,368		(158	)
Total	$	891,594	$	(6,323	)	$	284,991	$	(3,852	)	$	1,176,585	$	(10,175	)

For available-for-sale debt securities in an unrealized loss position, the Company does not intend to sell these securities and it is more likely than not that the Company will hold these securities until maturity or a recovery of the cost basis. The Company determined that the decline in fair value of these securities was not due to credit-related factors, and no allowance for expected credit losses was recorded as of December 31, 2023 and 2022. Realized gains and losses were not material for the years ended December 31, 2023, 2022, and 2021.

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


	December 31, 2023
	Amortized Cost		Fair Value
Due within one year	$	1,264,302	$	1,262,136
Due after one year through five years		287,703		288,873
Total	$	1,552,005	$	1,551,009

Stockholders' Equity

12 Months Ended

Dec. 31, 2023

Stockholders' Equity Note [Abstract]

Stockholders' Equity

11. Stockholders’ Equity

Preferred Stock

In connection with its 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 its 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 during the year ended December 31, 2021 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, 2023		December 31, 2022
2014 Stock Plan:
Options outstanding		31,112,073		45,276,579
Restricted stock units outstanding		1,042,303		2,224,138
2021 Equity Incentive Plan:
Options outstanding		22,500		22,500
Restricted stock units outstanding		22,650,063		17,729,318
Remaining shares available for future issuance		37,289,144		33,300,077
2021 Employee Stock Purchase Plan		8,166,130		6,493,913
Total		100,282,213		105,046,525

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 two to 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, restricted stock units awards, 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 consists of two six-month purchase periods. The initial offering period began on June 24, 2021 and ended on August 15, 2022. The initial offering consisted 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 Class A common stock on the offering date or (2) the fair market value of the Company’s Class A common stock on the purchase date.

The 2021 ESPP offers a rollover feature pursuant to which, if the fair market value of a share of Class A common stock on the first trading day of a new purchase period is lower than the fair market value on the offering date, that offering period will terminate and participants will be automatically enrolled in a new 12-month offering period. ESPP rollovers occurred in August 2022 and February 2023, which triggered new 12-month offering periods and resulted in immaterial incremental stock-based compensation expense to be recognized over the remaining requisite service periods.

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 December 31, 2022		33,300,077			45,299,079		$	7.76		6.99	$	657,307
Increase in authorized shares		14,469,209			-		$	-
Stock options exercised		-			(11,454,829	)	$	6.43
Stock options forfeited or expired		2,709,677			(2,709,677	)	$	10.78
Repurchases of unvested common stock		35,203			-		$	-
RSUs granted		(17,402,093	)		-		$	-
RSUs forfeited or cancelled		4,177,071			-		$	-
Balance as of December 31, 2023		37,289,144			31,134,573		$	7.98		6.01	$	480,766
Vested as of December 31, 2023					24,876,756		$	6.98		5.84	$	408,899
Vested and expected to vest as of December 31, 2023					31,134,573		$	7.98		6.01	$	480,766

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 $241.0 million, $382.4 million, and $976.5 million for the years ended December 31, 2023, 2022, and 2021, respectively. No options were granted during the years ended December 31, 2023 and 2022. The weighted-average grant-date fair value per share of options granted during the year ended December 31, 2021 was $12.43. The total grant-date fair value of stock options vested was $62.8 million, $108.1 million, and $63.6 million during the years ended December 31, 2023, 2022, and 2021, respectively.

Early Exercised Options

All stock option holders 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, 2023 and December 31, 2022, there were 135,013 and 578,119 shares that had been early exercised and were subject to repurchase, respectively. The proceeds related to early exercised options are recorded as liabilities within accrued expenses and other liabilities and other liabilities, non-current on the consolidated balance sheets until the options vest, at which point they are reclassified to equity. As of December 31, 2023 and December 31, 2022, the liabilities for early exercised options subject to repurchase were $1.3 million and $4.0 million, respectively.

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

The Company had granted 2,875,255 options with both a service-based vesting condition and a performance-based vesting condition prior to the IPO. No performance-based options were granted subsequent to the IPO. 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 in June 2021, 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

The Company began granting RSUs in 2021. RSUs granted prior to the IPO had both service-based and performance-based vesting conditions. The performance-based vesting condition was satisfied upon the sale of the Company’s common stock in a firm commitment underwritten public offering. Upon the effectiveness of the IPO in June 2021, 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.

RSUs granted after the IPO do not contain the performance-based vesting condition described above. The service-based vesting condition for RSUs is generally satisfied by rendering continuous service for two to 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 following table summarizes RSU activity under the 2014 Plan and the 2021 Plan:


	RSUs Outstanding
	Number of Shares			Weighted-Average Grant Date Fair Value
Unvested balance as of December 31, 2022		19,953,456		$	33.18
RSUs granted		17,402,093		$	24.49
RSUs vested		(9,486,112	)	$	29.68
RSUs forfeited or cancelled		(4,177,071	)	$	31.84
Unvested balance as of December 31, 2023		23,692,366		$	28.44

The total grant-date fair value of RSUs vested was $281.5 million, $160.3 million, and $22.2 million during the years ended December 31, 2023, 2022, and 2021, respectively.

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: Prior to July 2023, 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, since the Company did not have a sufficient trading history of its common stock. Beginning in July 2023, the Company uses a weighted average volatility of its Class A common stock and the stocks of public companies within the Company’s industry to develop its expected volatility assumption.

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 for the year ended December 31, 2021. No stock options were granted during the years ended December 31, 2023 and 2022:


	Year Ended December 31,
	2021
Expected term (in years)		6.17
Expected volatility		66.3	%
Risk-free interest rate		1.1	%
Expected dividend yield		0	%

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


	Year Ended December 31,
	2023	2022	2021
Expected term (in years)	0.49 - 1.00	0.49 - 1.00	0.63 - 1.12
Expected volatility	58.5% - 79.7%	55.0% - 82.1%	54.6% - 56.7%
Risk-free interest rate	5.0% - 5.5%	0.7% - 3.3%	0.1%
Expected dividend yield	0%	0%	0%

Stock-Based Compensation Expense

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


	Year Ended December 31,
	2023		2022		2021
Cost of revenue - subscription	$	25,620	$	23,136	$	12,571
Cost of revenue - services		11,096		9,253		5,418
Research and development		139,809		101,499		49,051
Sales and marketing		124,568		99,366		55,506
General and administrative		48,740		44,402		33,078
Stock-based compensation, net of amounts capitalized	$	349,833	$	277,656	$	155,624
Capitalized stock-based compensation		17,943		7,544		2,625
Total stock-based compensation	$	367,776	$	285,200	$	158,249

As of December 31, 2023, there was $668.7 million of unrecognized stock-based compensation expense, which is expected to be recognized over a weighted-average period of 2.0 years.

Income Taxes

12 Months Ended

Dec. 31, 2023

Income Tax Disclosure [Abstract]

Income Taxes

13. Income Taxes

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


	Year Ended December 31,
	2023			2022			2021
Domestic	$	(428,346	)	$	(461,919	)	$	(347,552	)
Foreign		21,672			15,661			7,925
Loss before income taxes	$	(406,674	)	$	(446,258	)	$	(339,627	)

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


	Year Ended December 31,
	2023		2022			2021
Current
State	$	371	$	337		$	251
Foreign		33,812		6,193			1,588
Total		34,183		6,530			1,839
Deferred
Federal		2		-			-
State		1		-			-
Foreign		1,886		(237	)		1,335
Total		1,889		(237	)		1,335
Provision for income taxes	$	36,072	$	6,293		$	3,174

In December 2023, the Company completed an intra-group transfer of acquired intellectual property related to the acquisition of immerok GmbH. As a result, the Company recognized foreign current tax expense of $26.4 million resulting from the intra-group transfer, which is not due within the next 12 months and therefore recorded within other liabilities, non-current on the consolidated balance sheets. The Company recorded a U.S. deferred tax asset of $17.8 million from a step-up in the tax basis of the intellectual property. Based on available objective evidence, the Company believes it is more likely than not that the additional U.S. deferred tax asset will not be realizable and is therefore offset by a full valuation allowance as of December 31, 2023.

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


	Year Ended December 31,
	2023			2022			2021
Income tax benefit computed at federal statutory rate	$	(85,401	)	$	(93,714	)	$	(71,322	)
Foreign rate differential		2,107			2,668			1,214
Stock-based compensation expense		88			(14,145	)		(104,993	)
Change in valuation allowance		97,923			122,724			192,301
Research and development credits		(13,049	)		(11,581	)		(14,483	)
Intra-group transfer of acquired intellectual property		26,358			-			-
Non-deductible expenses		4,495			-			-
Other		3,551			341			457
Provision for income taxes	$	36,072		$	6,293		$	3,174

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


	December 31,
	2023			2022
Deferred tax assets:
Net operating loss carryforwards	$	369,107		$	324,950
Capitalized research and development costs		119,960			74,824
Tax credit carryforwards		63,096			46,190
Stock-based compensation expense		27,840			26,211
Acquired intangible assets		17,791			-
Accruals and reserves		16,948			8,005
Other		17,450			19,610
Total deferred tax assets		632,192			499,790
Less: Valuation allowance		(587,738	)		(461,234	)
Deferred tax assets, net of valuation allowance		44,454			38,556
Deferred tax liabilities:
Deferred contract acquisition costs		(28,379	)		(25,054	)
Property and equipment		(11,765	)		(5,898	)
Other		(5,486	)		(6,891	)
Total deferred tax liabilities		(45,630	)		(37,843	)
Net deferred tax (liabilities) assets	$	(1,176	)	$	713

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 and United Kingdom, U.S. and U.K. deferred tax assets have been fully offset by a valuation allowance. The valuation allowance was $587.7 million as of December 31, 2023 and increased by $126.5 million during the year ended December 31, 2023 primarily due to increased U.S. federal and state loss carryforwards, acquired intangible assets, capitalized research and development costs, and tax credit carryforwards. The valuation allowance was $461.2 million as of December 31, 2022 and increased by $145.1 million during the year ended December 31, 2022 primarily due to increased U.S. federal and state and U.K. net operating loss carryforwards, capitalized research and development costs, and tax credit carryforwards.

As of December 31, 2023, the Company accrued $2.7 million of deferred U.S. state income and foreign withholding taxes on amounts of non-U.S. earnings that the Company plans to repatriate. For the non-U.S. earnings the Company intends to indefinitely reinvest, the estimated amount of any incremental tax associated with such earnings is immaterial.

As of December 31, 2023, the Company had $1,461.7 million of federal net operating loss carryforwards and $798.1 million of state net operating loss carryforwards. Of the federal net operating loss carryforwards, $1,417.5 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, 2023, the Company had U.S. federal and state research tax credit carryforwards of $62.6 million and $28.1 million, respectively. The U.S. federal research tax credit carryforwards will begin to expire in 2034. The California research tax credit carryforwards can be carried forward indefinitely, while the research tax credit carryforwards for other states will begin to expire in 2026.

As of December 31, 2023, the Company had $60.3 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, 2023, 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,
	2023			2022			2021
Beginning balance	$	18,914		$	12,530		$	3,399
Gross increase for prior year tax positions		439			1			192
Gross decrease for prior year tax positions		(5	)		(860	)		-
Gross increase for current year tax positions		7,961			7,243			8,939
Ending balance	$	27,309		$	18,914		$	12,530

As of December 31, 2023, 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, 2023, 2022, and 2021.

The Company’s tax years from inception in 2014 through December 31, 2023 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
-Topic 946
-SubTopic 20
-Name Accounting Standards Codification
-Section 50
-Paragraph 13
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147480990/946-20-50-13

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Topic 235
-SubTopic 10
-Name Accounting Standards Codification
-Section S99
-Paragraph 1
-Subparagraph (SX 210.4-08(h)(2))
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147480678/235-10-S99-1

Reference 3: http://www.xbrl.org/2003/role/disclosureRef
-Topic 740
-Name Accounting Standards Codification
-Publisher FASB
-URI https://asc.fasb.org//740/tableOfContent

Reference 4: http://www.xbrl.org/2003/role/disclosureRef
-Topic 740
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 14
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482685/740-10-50-14

Reference 5: http://www.xbrl.org/2003/role/disclosureRef
-Topic 740
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 21
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482685/740-10-50-21

Reference 6: http://www.xbrl.org/2003/role/disclosureRef
-Topic 740
-SubTopic 270
-Name Accounting Standards Codification
-Section 50
-Paragraph 1
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482526/740-270-50-1

Reference 7: http://www.xbrl.org/2003/role/disclosureRef
-Topic 740
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 17
-Subparagraph (b)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482685/740-10-50-17

Reference 8: http://www.xbrl.org/2003/role/disclosureRef
-Topic 740
-SubTopic 10
-Name Accounting Standards Codification
-Section S99
-Paragraph 1
-Subparagraph (SAB TOPIC 6.I.5.Q1)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147479360/740-10-S99-1

Reference 9: http://www.xbrl.org/2003/role/disclosureRef
-Topic 740
-SubTopic 10
-Name Accounting Standards Codification
-Section S99
-Paragraph 2
-Subparagraph (SAB Topic 11.C)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147479360/740-10-S99-2

Reference 10: http://www.xbrl.org/2003/role/disclosureRef
-Topic 740
-SubTopic 30
-Name Accounting Standards Codification
-Section 50
-Paragraph 2
-Subparagraph (a)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482603/740-30-50-2

+ Details

Stockholders' Equity - Schedule of Weighted-Average Assumptions to Estimate Fair Value of Stock Options (Details)	12 Months Ended
	Dec. 31, 2023	Dec. 31, 2021
Share-Based Payment Arrangement [Abstract]
Expected term (in years)		6 years 2 months 1 day
Expected volatility		66.30%
Risk-free interest rate		1.10%
Expected dividend yield	0.00%	0.00%

Income Taxes - Schedule of Components of provision for income taxes (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2021
Income Tax Disclosure [Abstract]
Current state provision for income taxes	$ 371	$ 337	$ 251
Current foreign provision for income taxes	33,812	6,193	1,588
Current provision for income taxes	34,183	6,530	1,839
Deferred federal provision for income taxes	2	0	0
Deferred state provision for income taxes	1	0	0
Deferred foreign provision for income taxes	1,886	(237)	1,335
Deferred provision for income taxes	1,889	(237)	1,335
Provision for income taxes	$ 36,072	$ 6,293	$ 3,174

- Definition

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

+ References + Details

Marketable Securities - Schedule of Fair Values and Unrealized Losses on Marketable Securities (Details) - USD ($) $ in Thousands	Dec. 31, 2023	Dec. 31, 2022
Marketable Securities [Line Items]
Fair Value, Less than 12 Months	$ 800,470	$ 891,594
Fair Value, 12 Months or Greater	158,064	284,991
Fair Value, Total	958,534	1,176,585
Unrealized Losses, Less than 12 Months	(1,760)	(6,323)
Unrealized Losses, 12 Months or Greater	(930)	(3,852)
Unrealized Losses, Total	(2,690)	(10,175)
U.S. Treasury Securities [Member]
Marketable Securities [Line Items]
Fair Value, Less than 12 Months	487,260	566,093
Fair Value, 12 Months or Greater	46,130	167,817
Fair Value, Total	533,390	733,910
Unrealized Losses, Less than 12 Months	(1,074)	(2,892)
Unrealized Losses, 12 Months or Greater	(281)	(1,180)
Unrealized Losses, Total	(1,355)	(4,072)
U.S. Agency Obligations [Member]
Marketable Securities [Line Items]
Fair Value, Less than 12 Months	206,105	201,846
Fair Value, 12 Months or Greater	80,657	51,595
Fair Value, Total	286,762	253,441
Unrealized Losses, Less than 12 Months	(390)	(2,014)
Unrealized Losses, 12 Months or Greater	(485)	(1,556)
Unrealized Losses, Total	(875)	(3,570)
Corporate Notes and Bonds [Member]
Marketable Securities [Line Items]
Fair Value, Less than 12 Months	100,295	90,287
Fair Value, 12 Months or Greater	31,277	65,579
Fair Value, Total	131,572	155,866
Unrealized Losses, Less than 12 Months	(293)	(1,259)
Unrealized Losses, 12 Months or Greater	(164)	(1,116)
Unrealized Losses, Total	(457)	(2,375)
Commercial Paper [Member]
Marketable Securities [Line Items]
Fair Value, Less than 12 Months	6,810	33,368
Fair Value, 12 Months or Greater	0	0
Fair Value, Total	6,810	33,368
Unrealized Losses, Less than 12 Months	(3)	(158)
Unrealized Losses, 12 Months or Greater	0	0
Unrealized Losses, Total	$ (3)	$ (158)

Organization and Description of Business

12 Months Ended

Dec. 31, 2023

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.

Derivative Instruments and Hedging - Additional Information (Details) - USD ($) $ in Thousands	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2021
Derivatives, Fair Value [Line Items]
Foreign currency forward contracts designated as hedging instruments	$ 2,280	$ 653	$ 0
Foreign Currency Forward Contracts [Member]
Derivatives, Fair Value [Line Items]
Foreign currency forward contracts designated as hedging instruments	$ 2,300

Stockholders' Equity (Tables)

12 Months Ended

Dec. 31, 2023

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, 2023		December 31, 2022
2014 Stock Plan:
Options outstanding		31,112,073		45,276,579
Restricted stock units outstanding		1,042,303		2,224,138
2021 Equity Incentive Plan:
Options outstanding		22,500		22,500
Restricted stock units outstanding		22,650,063		17,729,318
Remaining shares available for future issuance		37,289,144		33,300,077
2021 Employee Stock Purchase Plan		8,166,130		6,493,913
Total		100,282,213		105,046,525

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 December 31, 2022		33,300,077			45,299,079		$	7.76		6.99	$	657,307
Increase in authorized shares		14,469,209			-		$	-
Stock options exercised		-			(11,454,829	)	$	6.43
Stock options forfeited or expired		2,709,677			(2,709,677	)	$	10.78
Repurchases of unvested common stock		35,203			-		$	-
RSUs granted		(17,402,093	)		-		$	-
RSUs forfeited or cancelled		4,177,071			-		$	-
Balance as of December 31, 2023		37,289,144			31,134,573		$	7.98		6.01	$	480,766
Vested as of December 31, 2023					24,876,756		$	6.98		5.84	$	408,899
Vested and expected to vest as of December 31, 2023					31,134,573		$	7.98		6.01	$	480,766

Schedule of Restricted Stock Unit Activity

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


	RSUs Outstanding
	Number of Shares			Weighted-Average Grant Date Fair Value
Unvested balance as of December 31, 2022		19,953,456		$	33.18
RSUs granted		17,402,093		$	24.49
RSUs vested		(9,486,112	)	$	29.68
RSUs forfeited or cancelled		(4,177,071	)	$	31.84
Unvested balance as of December 31, 2023		23,692,366		$	28.44

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


	Year Ended December 31,
	2021
Expected term (in years)		6.17
Expected volatility		66.3	%
Risk-free interest rate		1.1	%
Expected dividend yield		0	%

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


	Year Ended December 31,
	2023	2022	2021
Expected term (in years)	0.49 - 1.00	0.49 - 1.00	0.63 - 1.12
Expected volatility	58.5% - 79.7%	55.0% - 82.1%	54.6% - 56.7%
Risk-free interest rate	5.0% - 5.5%	0.7% - 3.3%	0.1%
Expected dividend yield	0%	0%	0%

Summary of Stock-Based Compensation Expense

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


	Year Ended December 31,
	2023		2022		2021
Cost of revenue - subscription	$	25,620	$	23,136	$	12,571
Cost of revenue - services		11,096		9,253		5,418
Research and development		139,809		101,499		49,051
Sales and marketing		124,568		99,366		55,506
General and administrative		48,740		44,402		33,078
Stock-based compensation, net of amounts capitalized	$	349,833	$	277,656	$	155,624
Capitalized stock-based compensation		17,943		7,544		2,625
Total stock-based compensation	$	367,776	$	285,200	$	158,249

Convertible Senior Notes - Schedule of net carrying amount of notes (Details) - USD ($) $ in Thousands	Dec. 31, 2023	Dec. 31, 2022
Convertible Debt [Abstract]
Principal	$ 1,100,000	$ 1,100,000
Unamortized debt issuance costs	(11,687)	(15,500)
Net carrying amount	$ 1,088,313	$ 1,084,500

- Definition

Amount, after deduction of unamortized premium (discount) and debt issuance cost, of long-term debt. Excludes lease obligation.

+ References + Details

Revenue

12 Months Ended

Dec. 31, 2023

Revenue from Contract with Customer [Abstract]

Revenue

10. 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,
	2023				2022				2021
Geographic markets:
United States	$	464,857	60	%	$	362,132	62	%	$	246,676	64	%
International		312,095	40	%		223,812	38	%		141,188	36	%
Total revenue	$	776,952	100	%	$	585,944	100	%	$	387,864	100	%
Subscriptions and services:
Confluent Platform - License	$	84,025	11	%	$	76,019	13	%	$	69,183	18	%
Confluent Platform - PCS		296,245	38	%		247,803	42	%		183,737	47	%
Confluent Cloud		348,842	45	%		211,187	36	%		94,179	24	%
Subscription		729,112	94	%		535,009	91	%		347,099	89	%
Services		47,840	6	%		50,935	9	%		40,765	11	%
Total revenue	$	776,952	100	%	$	585,944	100	%	$	387,864	100	%

Other than the United States, no individual country represented 10% or more of total revenue during the years ended December 31, 2023, 2022, and 2021.

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, 2023, the Company’s RPO was $919.9 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. Actual amounts or timing of revenue recognized may differ due to subsequent contract modifications.

Deferred Revenue

Deferred revenue, including current and non-current balances as of December 31, 2023 and 2022, was $353.0 million and $322.8 million, respectively. For the years ended December 31, 2023, 2022, and 2021, revenue recognized from deferred revenue at the beginning of each year was $285.6 million, $221.1 million, and $141.7 million, respectively.

Deferred Contract Acquisition Costs

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


	Year Ended December 31,
	2023			2022
Beginning balance	$	104,284		$	78,824
Capitalization of contract acquisition costs		61,356			62,799
Amortization of deferred contract acquisition costs		(45,888	)		(37,339	)
Ending balance	$	119,752		$	104,284

- 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
-Topic 606
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 9
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147479806/606-10-50-9

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Topic 606
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 10
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147479806/606-10-50-10

Reference 3: http://www.xbrl.org/2003/role/disclosureRef
-Topic 606
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 15
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147479806/606-10-50-15

Reference 4: http://www.xbrl.org/2003/role/disclosureRef
-Topic 606
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 12
-Subparagraph (a)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147479806/606-10-50-12

Reference 5: http://www.xbrl.org/2003/role/disclosureRef
-Topic 606
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 12
-Subparagraph (b)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147479806/606-10-50-12

Reference 6: http://www.xbrl.org/2003/role/disclosureRef
-Topic 606
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 12
-Subparagraph (c)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147479806/606-10-50-12

Reference 7: http://www.xbrl.org/2003/role/disclosureRef
-Topic 606
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 12
-Subparagraph (d)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147479806/606-10-50-12

Reference 8: http://www.xbrl.org/2003/role/disclosureRef
-Topic 606
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 12
-Subparagraph (e)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147479806/606-10-50-12

Reference 9: http://www.xbrl.org/2003/role/disclosureRef
-Topic 606
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 13
-Subparagraph (b)(2)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147479806/606-10-50-13

Reference 10: http://www.xbrl.org/2003/role/disclosureRef
-Name Accounting Standards Codification
-Topic 606
-Publisher FASB
-URI https://asc.fasb.org//606/tableOfContent

+ Details

Commitments and Contingencies (Tables)

12 Months Ended

Dec. 31, 2023

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, 2023 were as follows (in thousands):


Year Ending December 31,	Minimum Lease Payments
2024	$	8,784
2025		10,741
2026		7,231
Total minimum lease payments		26,756
Less: Imputed interest		(1,475	)
Present value of future minimum lease payments	$	25,281

Schedule of Future Payments under Non-Cancelable Purchase Obligations


Year Ending December 31,	Purchase Obligations
2024	$	162,815
2025		184,585
2026		203,995
2027		169,410
2028		22,790
Total	$	743,595