| 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, 2023 and December 31, 2022, respectively.
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Year Ended December 31, |
(in thousands) |
|
2023 |
|
2022 |
Lease cost: |
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|
|
|
|
Operating lease cost (1) |
|
$ |
10,359 |
|
$ |
10,922 |
Finance lease cost |
|
|
|
|
|
|
Depreciation of finance lease assets (2) |
|
|
1,770 |
|
|
1,191 |
Interest on finance lease liabilities (3) |
|
|
223 |
|
|
139 |
Short-term lease cost (1) |
|
|
1,058 |
|
|
1,080 |
Sublease income (1) |
|
|
(978) |
|
|
(622) |
Total lease cost |
|
$ |
12,432 |
|
$ |
12,710 |
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|
|
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|
|
Other information: |
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|
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|
Cash paid for amounts included in the measurement of lease liabilities |
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|
|
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|
|
Operating cash outflows from operating leases |
|
$ |
7,641 |
|
$ |
5,367 |
Operating cash outflows from finance leases |
|
$ |
155 |
|
$ |
132 |
Financing cash outflows from finance leases |
|
$ |
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. |
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(2) |
Included in Depreciation and amortization in the accompanying Consolidated Statements of Operations and Comprehensive Income. |
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(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, 2023 and December 31, 2022, respectively:
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Year Ended December 31, |
|
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2023 |
|
2022 |
Weighted-average remaining lease term - operating leases (in years) |
|
13.6 |
|
14.2 |
Weighted-average remaining lease term - finance leases (in years) |
|
2.2 |
|
1.6 |
Weighted-average discount rate - operating leases |
|
4.6% |
|
4.5% |
Weighted-average discount rate - finance leases |
|
5.3% |
|
3.7% |
Maturities of lease liabilities as of December 31, 2023 are as follows:
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December 31, 2023 |
(in thousands) |
|
Operating Leases |
|
Finance Leases |
2024 |
|
$ |
9,179 |
|
$ |
3,214 |
2025 |
|
|
8,145 |
|
|
2,150 |
2026 |
|
|
6,857 |
|
|
819 |
2027 |
|
|
6,665 |
|
|
— |
2028 |
|
|
6,753 |
|
|
— |
Thereafter |
|
|
74,037 |
|
|
— |
Total lease payments |
|
|
111,636 |
|
|
6,183 |
Less amount representing interest |
|
|
(31,044) |
|
|
(384) |
Present value of total lease payments |
|
$ |
80,592 |
|
$ |
5,799 |
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.
There were no impairments of Operating lease right-of-use assets identified during the years ended December 31, 2023 and 2021, respectively.
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