| Leases |
7. Leases
The following table presents lease cost and cash paid for amounts included in the measurement of lease liabilities for finance and operating leases for the three and nine months ended September 30, 2024 and 2023, respectively.
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Three Months Ended September 30, |
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Nine Months Ended September 30, |
(in thousands) |
|
2024 |
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2023 |
|
2024 |
|
2023 |
Lease cost: |
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Operating lease cost (1) |
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$ |
2,921 |
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$ |
2,614 |
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$ |
8,248 |
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$ |
7,783 |
Finance lease cost: |
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Depreciation of finance lease assets (2) |
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|
493 |
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|
620 |
|
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1,605 |
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|
1,151 |
Interest on finance lease liabilities (3) |
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49 |
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|
83 |
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|
170 |
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|
149 |
Short-term lease cost (1) |
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294 |
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219 |
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|
938 |
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|
708 |
Sublease income (1) |
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— |
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(266) |
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— |
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(800) |
Total lease cost |
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$ |
3,757 |
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$ |
3,270 |
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$ |
10,961 |
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$ |
8,991 |
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Other information: |
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Cash paid for amounts included in the measurement of lease liabilities |
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Operating cash outflows from operating leases |
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$ |
2,870 |
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$ |
1,921 |
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$ |
7,908 |
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$ |
4,773 |
Operating cash outflows from finance leases |
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$ |
37 |
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$ |
38 |
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$ |
192 |
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$ |
78 |
Financing cash outflows from finance leases |
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$ |
378 |
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$ |
577 |
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$ |
1,940 |
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$ |
1,605 |
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(1) |
Included in Cost of revenue, Sales, marketing and customer support, Product development and General and administrative expenses in the accompanying Condensed Consolidated Statements of Operations and Comprehensive Income. |
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(2) |
Included in Depreciation and amortization in the accompanying Condensed Consolidated Statements of Operations and Comprehensive Income. |
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(3) |
Included in Interest expense in the accompanying Condensed Consolidated Statements of Operations and Comprehensive Income. |
The following table presents weighted-average remaining lease terms and weighted-average discount rates for finance and operating leases as of September 30, 2024 and 2023, respectively:
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September 30, |
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2024 |
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2023 |
Weighted-average remaining lease term - operating leases (in years) |
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11.9 |
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13.7 |
Weighted-average remaining lease term - finance leases (in years) |
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1.6 |
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2.4 |
Weighted-average discount rate - operating leases |
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4.8% |
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4.6% |
Weighted-average discount rate - finance leases |
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5.5% |
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5.3% |
Maturities of lease liabilities as of September 30, 2024 were as follows:
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September 30, 2024 |
(in thousands) |
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Operating Leases |
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Finance Leases |
2024 (for remaining three months) |
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$ |
2,775 |
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$ |
1,083 |
2025 |
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11,689 |
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2,150 |
2026 |
|
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10,786 |
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|
819 |
2027 |
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10,212 |
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— |
2028 |
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9,041 |
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— |
2029 |
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8,837 |
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— |
Thereafter |
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67,160 |
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— |
Total lease payments |
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120,500 |
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4,052 |
Less amount representing interest |
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(30,168) |
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(193) |
Present value of total lease payments |
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$ |
90,332 |
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$ |
3,859 |
As of September 30, 2024, the Company has entered into additional international office space leases that have not yet commenced with contractual commitments of $1.7 million. These operating leases will commence in fiscal year 2025 with lease terms of two to three years.
There were no impairments of Operating lease right-of-use assets identified during the nine months ended September 30, 2024 and September 30, 2023.
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