Annual report [Section 13 and 15(d), not S-K Item 405]

Leases

v3.25.0.1
Leases
12 Months Ended
Dec. 31, 2024
Leases  
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 years ended December 31, 2024, 2023 and 2022, respectively:

    

Year Ended December 31, 

(in thousands)

2024

2023

2022

Lease cost:

Operating lease cost (1)

$

11,463

$

10,359

$

10,922

Finance lease cost

Depreciation of finance lease assets (2)

2,098

1,770

1,191

Interest on finance lease liabilities (3)

212

223

139

Short-term lease cost (1)

1,208

1,058

1,080

Sublease income (1)

(978)

(622)

Total lease cost

$

14,981

$

12,432

$

12,710

 

 

 

Other information:

Cash paid for amounts included in the measurement of lease liabilities

Operating cash outflows from operating leases

$

10,471

$

7,641

$

5,367

Operating cash outflows from finance leases

$

240

$

155

$

132

Financing cash outflows from finance leases

$

2,475

$

2,314

$

1,924

(1) Included in Cost of revenue, Sales, marketing and customer support, Product development and General and administrative expenses in the accompanying Consolidated Statements of Operations and Comprehensive Income.
(2) Included in Depreciation and amortization in the accompanying Consolidated Statements of Operations and Comprehensive Income.
(3) Included in Interest expense in the accompanying 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 December 31, 2024 and 2023, respectively:

    

Year Ended December 31, 

2024

2023

Weighted-average remaining lease term - operating leases (in years)

 

11.8

13.6

Weighted-average remaining lease term - finance leases (in years)

 

1.4

2.2

Weighted-average discount rate - operating leases

4.8%

4.6%

Weighted-average discount rate - finance leases

 

5.5%

5.3%

Maturities of lease liabilities as of December 31, 2024 are as follows:

    

December 31, 2024

(in thousands)

Operating Leases

Finance Leases

2025

$

11,763

$

2,649

2026

 

10,750

 

819

2027

 

10,123

 

2028

 

8,878

 

2029

 

8,713

 

Thereafter

67,153

Total lease payments

 

117,380

 

3,468

Less amount representing interest

 

(29,035)

 

(144)

Present value of total lease payments

$

88,345

$

3,324

As of December 31, 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 one to three years.

There were no impairments of Operating lease right-of-use assets identified during the years ended December 31, 2024 and 2023, respectively.

During the year ended December 31, 2022, the Company entered into an agreement to sublease its leased office space located in New York, NY (“Sublease Transaction”) as the Company transitioned into a new headquarters. The sublease triggered an Operating lease right-of-use asset impairment of $1.5 million recorded in General and administrative expenses in the accompanying Consolidated Statements of Operations and Comprehensive Income. The fair value of the Operating lease right-of-use asset was determined as of May 27, 2022 using the transaction price per the Sublease Transaction executed agreement. The fair value measurement represents a Level 1 input.