Qualys (QLYS) 10-Q2 Nov 232023 Q3 Quarterly reportFinancial data

Company Profile

Cover

Cover - shares	9 Months Ended
Cover - shares	Sep. 30, 2023	Oct. 26, 2023
Cover [Abstract]
Document Type	10-Q
Document Quarterly Report	true
Document Period End Date	Sep. 30, 2023
Document Transition Report	false
Entity File Number	001-35662
Entity Registrant Name	QUALYS, INC.
Entity Incorporation, State or Country Code	DE
Entity Tax Identification Number	77-0534145
Entity Address, Address Line One	919 E. Hillsdale Boulevard, 4th Floor
Entity Address, City or Town	Foster City
Entity Address, State or Province	CA
Entity Address, Postal Zip Code	94404
City Area Code	650
Local Phone Number	801-6100
Title of 12(b) Security	Common stock, $0.001 par value per share
Trading Symbol	QLYS
Security Exchange Name	NASDAQ
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Large Accelerated Filer
Entity Small Business	false
Entity Emerging Growth Company	false
Entity Shell Company	false
Entity Common Stock, Shares Outstanding		36,785,464
Entity Central Index Key	0001107843
Current Fiscal Year End Date	--12-31
Document Fiscal Year Focus	2023
Document Fiscal Period Focus	Q3
Amendment Flag	false

Condensed Consolidated Balance

Condensed Consolidated Balance Sheets - USD ($) $ in Thousands	Sep. 30, 2023	Dec. 31, 2022
Current assets:
Cash and cash equivalents	$ 208,724	$ 173,719
Restricted Cash and Cash Equivalents, Current	1,500	0
Short-term marketable securities	218,690	147,608
Accounts receivable, net of allowance of $773 and $736 as of September 30, 2023 and December 31, 2022, respectively	103,428	121,795
Prepaid expenses and other current assets	29,836	30,216
Total current assets	562,178	473,338
Long-term marketable securities	33,648	59,206
Property and equipment, net	36,160	47,428
Operating leases - right of use asset	25,211	33,752
Deferred tax assets, net	57,171	45,412
Intangible assets, net	10,486	12,801
Goodwill	7,447	7,447
Noncurrent restricted cash	1,200	2,700
Other noncurrent assets	18,360	18,857
Total assets	751,861	700,941
Current liabilities:
Accounts payable	1,165	2,808
Accrued liabilities	49,838	42,592
Deferred revenues, current	307,179	293,728
Operating lease liabilities, current	12,309	13,060
Total current liabilities	370,491	352,188
Deferred revenues, noncurrent	32,287	23,490
Operating lease liabilities, noncurrent	19,655	29,121
Other noncurrent liabilities	6,511	7,013
Total liabilities	428,944	411,812
Commitments and contingencies (Note 8)
Stockholders’ equity:
Preferred stock: $0.001 par value; 20,000 shares authorized, no shares issued and outstanding as of September 30, 2023 and December 31, 2022	0	0
Common stock: $0.001 par value; 1,000,000 shares authorized, 36,796 and 37,362 shares issued and outstanding as of September 30, 2023 and December 31, 2022, respectively	37	37
Additional paid-in capital	568,088	512,486
Accumulated other comprehensive loss	(867)	(1,947)
Accumulated deficit	(244,341)	(221,447)
Total stockholders’ equity	322,917	289,129
Total liabilities and stockholders’ equity	$ 751,861	$ 700,941

Condensed Consolidated Balanc_2

Condensed Consolidated Balance Sheets (Parenthetical) - USD ($) shares in Thousands, $ in Thousands	Sep. 30, 2023	Dec. 31, 2022
Statement of Financial Position [Abstract]
Accounts receivable, net of allowance	$ 773	$ 736
Preferred stock, par value (in USD per share)	$ 0.001	$ 0.001
Preferred stock, shares authorized (in shares)	20,000	20,000
Preferred stock, shares issued (in shares)	0	0
Preferred stock, shares outstanding (in shares)	0	0
Common stock, par value (in USD per share)	$ 0.001	$ 0.001
Common stock, shares authorized (in shares)	1,000,000	1,000,000
Common stock, shares issued (in shares)	36,796	37,362
Common stock, shares outstanding (in shares)	36,796	37,362

Condensed Consolidated Statemen

Condensed Consolidated Statements of Operations - USD ($) shares in Thousands, $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2023	Sep. 30, 2022	Sep. 30, 2023	Sep. 30, 2022
Income Statement [Abstract]
Revenues	$ 141,996	$ 125,561	$ 409,888	$ 358,874
Cost of revenues	26,739	25,992	80,355	75,040
Gross profit	115,257	99,569	329,533	283,834
Operating expenses:
Research and development	27,782	25,478	83,001	73,376
Sales and marketing	27,881	25,047	79,750	68,919
General and administrative	15,999	15,698	45,182	41,665
Total operating expenses	71,662	66,223	207,933	183,960
Income from operations	43,595	33,346	121,600	99,874
Other income (expense), net:
Interest income	5,136	1,568	11,342	2,925
Other income (expense), net	(708)	(1,076)	(1,883)	(3,496)
Total other income (expense), net	4,428	492	9,459	(571)
Income before income taxes	48,023	33,838	131,059	99,303
Income tax provision	1,508	6,178	20,057	19,637
Net income	$ 46,515	$ 27,660	$ 111,002	$ 79,666
Net income per share:
Basic (in USD per share)	$ 1.27	$ 0.72	$ 3.01	$ 2.06
Diluted (in USD per share)	$ 1.24	$ 0.71	$ 2.96	$ 2.01
Weighted average shares used in computing net income per share:
Basic (in shares)	36,766	38,317	36,891	38,680
Diluted (in shares)	37,448	39,220	37,516	39,634

Condensed Consolidated Statem_2

Condensed Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2023	Sep. 30, 2022	Sep. 30, 2023	Sep. 30, 2022
Statement of Comprehensive Income [Abstract]
Net income	$ 46,515	$ 27,660	$ 111,002	$ 79,666
Other comprehensive income (loss), net of tax
Net change in unrealized gains (losses) on available-for-sale debt securities, net of tax	339	(492)	1,782	(3,553)
Net change in unrealized gains (losses) on cash flow hedges, net of tax	510	1,160	(702)	2,589
Other comprehensive income (loss), net of tax	849	668	1,080	(964)
Comprehensive income	$ 47,364	$ 28,328	$ 112,082	$ 78,702

Condensed Consolidated Statem_3

Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2023	Sep. 30, 2022
Cash flow from operating activities:
Net income	$ 111,002	$ 79,666
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization expense	21,140	25,773
Provision for credit losses	230	493
Loss on disposal of property and equipment	0	5
Loss on non-marketable securities	533	0
Stock-based compensation, net of amounts capitalized	50,560	37,856
Amortization (accretion) of premiums (discount) on marketable securities, net	(3,502)	1,127
Deferred income taxes	(11,561)	(15,599)
Changes in operating assets and liabilities:
Accounts receivable	18,137	9,788
Prepaid expenses and other assets	(4,804)	(1,412)
Accounts payable	(1,428)	841
Accrued liabilities and other noncurrent liabilities	8,211	3,968
Deferred revenues	22,248	12,504
Net cash provided by operating activities	210,766	155,010
Cash flow from investing activities:
Purchases of marketable securities	(252,438)	(178,788)
Sales and maturities of marketable securities	212,202	290,949
Purchases of property and equipment	(7,263)	(12,391)
Purchases of intangible assets	0	(120)
Net cash (used in) provided by investing activities	(47,499)	99,650
Cash flow from financing activities:
Repurchase of common stock	(147,725)	(212,839)
Proceeds from exercise of stock options	28,384	23,161
Payments for taxes related to net share settlement of equity awards	(14,998)	(12,853)
Proceeds from issuance of common stock through employee stock purchase plan	6,077	4,445
Net cash used in financing activities	(128,262)	(198,086)
Net increase in cash, cash equivalents and restricted cash	35,005	56,574
Cash, cash equivalents and restricted cash at beginning of period	176,419	138,528
Cash, cash equivalents and restricted cash at end of period	$ 211,424	$ 195,102

Condensed Consolidated Statem_4

Condensed Consolidated Statements of Stockholders' Equity - USD ($) shares in Thousands, $ in Thousands	Total	Common Stock	Additional Paid-In Capital	Accumulated Other Comprehensive Income (Loss)	Accumulated Deficit
Beginning balance (in shares) at Dec. 31, 2021		39,112
Beginning balance at Dec. 31, 2021	$ 436,714	$ 39	$ 477,323	$ 1,007	$ (41,655)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income	25,410				25,410
Other comprehensive income (loss), net of tax	(1,677)			(1,677)
Issuance of common stock upon exercise of stock options (in shares)		66
Issuance of common stock upon exercise of stock options	2,569		2,569
Repurchase of common stock (in shares)		(368)
Repurchase of common stock	(46,581)		(4,416)		(42,165)
Issuance of common stock upon vesting of restricted stock units (in shares)		70
Taxes related to net share settlement of equity awards (in shares)		(28)
Taxes related to net share settlement of equity awards	(3,631)		(3,631)
Issuance of common stock through employee stock purchase plan (in shares)		23
Issuance of common stock through employee stock purchase plan	2,086		2,086
Stock-based compensation	11,745		11,745
Ending balance (in shares) at Mar. 31, 2022		38,875
Ending balance at Mar. 31, 2022	426,635	$ 39	485,676	(670)	(58,410)
Beginning balance (in shares) at Dec. 31, 2021		39,112
Beginning balance at Dec. 31, 2021	436,714	$ 39	477,323	1,007	(41,655)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income	79,666
Other comprehensive income (loss), net of tax	(964)
Ending balance (in shares) at Sep. 30, 2022		38,124
Ending balance at Sep. 30, 2022	355,186	$ 38	510,557	43	(155,452)
Beginning balance (in shares) at Mar. 31, 2022		38,875
Beginning balance at Mar. 31, 2022	426,635	$ 39	485,676	(670)	(58,410)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income	26,596				26,596
Other comprehensive income (loss), net of tax	45			45
Issuance of common stock upon exercise of stock options (in shares)		146
Issuance of common stock upon exercise of stock options	6,504		6,504
Repurchase of common stock (in shares)		(561)
Repurchase of common stock	(71,232)		(6,745)		(64,487)
Issuance of common stock upon vesting of restricted stock units (in shares)		90
Taxes related to net share settlement of equity awards (in shares)		(33)
Taxes related to net share settlement of equity awards	(4,530)		(4,530)
Stock-based compensation	12,820		12,820
Ending balance (in shares) at Jun. 30, 2022		38,517
Ending balance at Jun. 30, 2022	396,838	$ 39	493,725	(625)	(96,301)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income	27,660				27,660
Other comprehensive income (loss), net of tax	668			668
Issuance of common stock upon exercise of stock options (in shares)		217
Issuance of common stock upon exercise of stock options	14,088		14,088
Repurchase of common stock (in shares)		(684)
Repurchase of common stock	(95,026)	$ (1)	(8,214)		(86,811)
Issuance of common stock upon vesting of restricted stock units (in shares)		87
Taxes related to net share settlement of equity awards (in shares)		(36)
Taxes related to net share settlement of equity awards	(4,692)		(4,692)
Issuance of common stock through employee stock purchase plan (in shares)		23
Issuance of common stock through employee stock purchase plan	2,359		2,359
Stock-based compensation	13,291		13,291
Ending balance (in shares) at Sep. 30, 2022		38,124
Ending balance at Sep. 30, 2022	355,186	$ 38	510,557	43	(155,452)
Beginning balance (in shares) at Dec. 31, 2022		37,362
Beginning balance at Dec. 31, 2022	289,129	$ 37	512,486	(1,947)	(221,447)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income	29,105				29,105
Other comprehensive income (loss), net of tax	376			376
Issuance of common stock upon exercise of stock options (in shares)		61
Issuance of common stock upon exercise of stock options	2,328		2,328
Repurchase of common stock (in shares)		(584)
Repurchase of common stock	(67,032)		(7,014)		(60,018)
Issuance of common stock upon vesting of restricted stock units (in shares)		108
Taxes related to net share settlement of equity awards (in shares)		(43)
Taxes related to net share settlement of equity awards	(5,105)		(5,105)
Issuance of common stock through employee stock purchase plan (in shares)		29
Issuance of common stock through employee stock purchase plan	2,988		2,988
Stock-based compensation	16,033		16,033
Ending balance (in shares) at Mar. 31, 2023		36,933
Ending balance at Mar. 31, 2023	267,822	$ 37	521,716	(1,571)	(252,360)
Beginning balance (in shares) at Dec. 31, 2022		37,362
Beginning balance at Dec. 31, 2022	289,129	$ 37	512,486	(1,947)	(221,447)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income	111,002
Other comprehensive income (loss), net of tax	$ 1,080
Issuance of common stock upon exercise of stock options (in shares)	400
Ending balance (in shares) at Sep. 30, 2023		36,796
Ending balance at Sep. 30, 2023	$ 322,917	$ 37	568,088	(867)	(244,341)
Beginning balance (in shares) at Mar. 31, 2023		36,933
Beginning balance at Mar. 31, 2023	267,822	$ 37	521,716	(1,571)	(252,360)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income	35,382				35,382
Other comprehensive income (loss), net of tax	(145)			(145)
Issuance of common stock upon exercise of stock options (in shares)		101
Issuance of common stock upon exercise of stock options	4,820		4,820
Repurchase of common stock (in shares)		(346)
Repurchase of common stock	(42,492)		(4,157)		(38,335)
Issuance of common stock upon vesting of restricted stock units (in shares)		96
Taxes related to net share settlement of equity awards (in shares)		(38)
Taxes related to net share settlement of equity awards	(4,389)		(4,389)
Stock-based compensation	16,020		16,020
Ending balance (in shares) at Jun. 30, 2023		36,746
Ending balance at Jun. 30, 2023	277,018	$ 37	534,010	(1,716)	(255,313)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income	46,515				46,515
Other comprehensive income (loss), net of tax	849			849
Issuance of common stock upon exercise of stock options (in shares)		239
Issuance of common stock upon exercise of stock options	21,236		21,236
Repurchase of common stock (in shares)		(273)
Repurchase of common stock	(38,822)		(3,279)		(35,543)
Issuance of common stock upon vesting of restricted stock units (in shares)		92
Taxes related to net share settlement of equity awards (in shares)		(39)
Taxes related to net share settlement of equity awards	(5,504)		(5,504)
Issuance of common stock through employee stock purchase plan (in shares)		31
Issuance of common stock through employee stock purchase plan	3,089		3,089
Stock-based compensation	18,536		18,536
Ending balance (in shares) at Sep. 30, 2023		36,796
Ending balance at Sep. 30, 2023	$ 322,917	$ 37	$ 568,088	$ (867)	$ (244,341)

Description of Business and Sum

Description of Business and Summary of Significant Accounting Policies	9 Months Ended
	Sep. 30, 2023
Accounting Policies [Abstract]
Description of Business and Summary of Significant Accounting Policies	Description of Business and Summary of Significant Accounting Policies Description of Business Qualys, Inc. (the “Company”, "we", "us", "our") was incorporated in the state of Delaware on December 30, 1999 . The Company is headquartered in Foster City, California and has wholly-owned subsidiaries throughout the world. The Company is a leading provider of cloud-based information technology ("IT"), security and compliance solutions that enable organizations to identify security risks to their IT infrastructures, help protect their IT systems and applications from ever-evolving cyber-attacks and achieve compliance with internal policies and external regulations. The Company’s cloud solutions address the growing security and compliance complexities and risks that are amplified by the dissolving boundaries between internal and external IT infrastructures and web environments, the rapid adoption of cloud computing and the proliferation of geographically dispersed IT assets. Organizations can use the Company’s integrated suite of solutions delivered on its Qualys Cloud Platform to cost-effectively obtain a unified view of their security and compliance posture across globally-distributed IT infrastructures. Basis of Presentation The accompanying unaudited condensed consolidated financial statements and condensed footnotes have been prepared in accordance with accounting principles generally accepted in the United States ("U.S. GAAP") for interim financial information as well as the instructions to Form 10-Q and the rules and regulations of the U.S. Securities and Exchange Commission ("SEC"). Certain information and disclosures normally included in the financial statements prepared in accordance with U.S. GAAP have been condensed or omitted pursuant to such rules and regulations. The condensed consolidated balance sheet as of December 31, 2022, included herein, was derived from the audited financial statements as of that date but does not include all disclosures, including notes required by U.S. GAAP. In the opinion of management, the accompanying unaudited condensed consolidated financial statements reflect all adjustments, which include only normal recurring adjustments, necessary for the fair statement of the financial position, results of operations and cash flows for the interim periods. The results of operations for the three and nine months ended September 30, 2023 are not necessarily indicative of the results of operations expected for the entire year ending December 31, 2023 or for any other future annual or interim periods. These condensed consolidated financial statements should be read in conjunction with the consolidated financial statements and related notes included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2022 filed with the SEC on February 23, 2023. Certain prior year amounts have been reclassified to conform to current year presentation. Risks and Uncertainties The uncertainty surrounding macroeconomic factors in the U.S. and globally characterized by the supply chain environment, inflationary pressure, rising interest rates, financial institution failures and associated uncertainty, labor shortages, significant volatility of global markets, reduced spending and extended sales cycles, and geopolitical conflicts could have a material adverse effect on the Company's long-term business and could lead to further economic disruption and expose the Company to greater risk as its current and potential customers may reduce or eliminate their overall spending on IT security. Use of Estimates The preparation of the unaudited condensed consolidated financial statements in conformity with U.S. GAAP requires management to make certain estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of assets and liabilities at the date of the condensed consolidated financial statements and the reported results of operations during the reporting period. The Company’s management regularly assesses these estimates, which primarily affect revenue recognition, allowance for credit loss, the valuation of goodwill and intangible assets, leases, stock-based compensation and income tax provision. Actual results could differ from those estimates and such differences may be material to the accompanying unaudited condensed consolidated financial statements. Recently Adopted Accounting Pronouncements None. Recently Issued Accounting Pronouncements Not Yet Adopted The Company does not believe any new accounting pronouncements issued by the FASB that have not become effective will have a material impact on its condensed consolidated financial statements. There have been no material changes to the Company’s significant accounting policies set forth in "Note 1" of Notes to Consolidated Financial Statements included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2022.

Fair Value of Financial Instrum

Fair Value of Financial Instruments	9 Months Ended
Fair Value of Financial Instruments	Sep. 30, 2023
Fair Value Disclosures [Abstract]
Fair Value of Financial Instruments	Fair Value of Financial Instruments Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. For certain of the Company’s financial instruments, including certain cash equivalents, accounts receivable, accounts payable and accrued liabilities, the carrying amounts approximate their fair values due to the relatively short maturity of these balances. The Company measures and reports certain cash equivalents, marketable securities, derivative foreign currency forward contracts at fair value in accordance with the provisions of the authoritative accounting guidance that addresses fair value measurements. This guidance establishes a hierarchy for inputs used in measuring fair value that maximizes the use of observable inputs and minimizes the use of unobservable inputs by requiring that the most observable inputs be used when available. The hierarchy is broken down into three levels based on the reliability of inputs as follows: Level 1 - Valuations based on quoted prices in active markets for identical assets or liabilities. Level 2 - Valuations based on other than quoted prices in active markets for identical assets and liabilities, including quoted prices for identical assets or liabilities in less active or inactive markets, quoted prices for similar assets or liabilities in active markets, or inputs other than quoted prices that are observable for substantially the full term of the assets or liabilities. Level 3 - Valuations based on inputs that are generally unobservable and typically reflect management’s estimates of assumptions that market participants would use in pricing the asset or liability. The Company's financial instruments consist of assets and liabilities measured using Level 1 and 2 inputs. Level 1 assets include a highly liquid money market fund, which is valued using unadjusted quoted prices that are available in an active market for an identical asset. Level 2 assets include fixed-income U.S. Treasury and government agency securities, commercial paper, corporate bonds, asset-backed securities, foreign government securities and derivative financial instruments consisting of foreign currency forward contracts. The securities, bonds and commercial paper are valued using prices from independent pricing services based on quoted prices of identical instruments in less active or inactive markets, quoted prices of similar instruments in active markets, or industry models using data inputs such as interest rates and prices that can be directly observed or corroborated in active markets. The foreign currency forward contracts are valued using observable inputs, such as quotations on forward foreign exchange points and foreign interest rates. The following table sets forth by level within the fair value hierarchy the fair value of the Company's financial assets and liabilities measured at fair value on a recurring basis: September 30, 2023 Level 1 Level 2 Fair Value (in thousands) Money market funds $ 37,500 $ — $ 37,500 Commercial paper — 72,507 72,507 U.S. Treasury and government agencies — 138,959 138,959 Corporate bonds — 35,375 35,375 Asset-backed securities — 15,434 15,434 Foreign currency forward contracts — 1,427 1,427 Total assets $ 37,500 $ 263,702 $ 301,202 Foreign currency forward contracts $ — $ 888 $ 888 Total liabilities $ — $ 888 $ 888 December 31, 2022 Level 1 Level 2 Fair Value (in thousands) Money market funds $ 82,701 $ — $ 82,701 U.S. Treasury and government agencies — 156,662 156,662 Foreign government — 1,006 1,006 Corporate bonds — 63,910 63,910 Asset-backed securities — 15,027 15,027 Foreign currency forward contracts — 1,493 1,493 Total assets $ 82,701 $ 238,098 $ 320,799 Foreign currency forward contracts $ — $ 4,679 $ 4,679 Total liabilities $ — $ 4,679 $ 4,679 There were no transfers between Level 1, Level 2 and Level 3 categories during the three months and nine months ended September 30, 2023 and 2022. Cash equivalent and investments The Company's cash equivalents and marketable securities consist of the following: September 30, 2023 Amortized Cost Unrealized Gains Unrealized Losses Fair Value (in thousands) Cash equivalents: (1) Money market funds $ 37,500 $ — $ — $ 37,500 Commercial paper 9,940 — (3) 9,937 Total 47,440 — (3) 47,437 Short-term marketable securities: Commercial paper 62,591 — (21) 62,570 Corporate bonds 29,131 2 (356) 28,777 Asset-backed securities — — — — U.S. Treasury and government agencies 127,737 — (394) 127,343 Total 219,459 2 (771) 218,690 Long-term marketable securities: Corporate bonds 6,646 — (48) 6,598 Asset-backed securities 15,470 12 (48) 15,434 U.S. Treasury and government agencies 11,684 — (68) 11,616 Total 33,800 12 (164) 33,648 Total $ 300,699 $ 14 $ (938) $ 299,775 (1) Excludes cash of $161.3 million. December 31, 2022 Amortized Cost Unrealized Gains Unrealized Losses Fair Value (in thousands) Cash equivalents: (2) Money market funds $ 82,701 $ — $ — $ 82,701 U.S. Treasury and government agencies 29,787 4 — 29,791 Total 112,488 4 — 112,492 Short-term marketable securities: Corporate bonds 36,908 3 (337) 36,574 Asset-backed securities 726 — (2) 724 U.S. Treasury and government agencies 110,225 — (921) 109,304 Foreign government 1,008 — (2) 1,006 Total 148,867 3 (1,262) 147,608 Long-term marketable securities: Corporate bonds 28,146 — (810) 27,336 Asset-backed securities 14,435 — (132) 14,303 U.S. Treasury and government agencies 18,076 — (509) 17,567 Total 60,657 — (1,451) 59,206 Total $ 322,012 $ 7 $ (2,713) $ 319,306 (2) Excludes cash of $61.2 million. The following table summarizes the gross unrealized losses and fair value of the Company's marketable securities that were in an unrealized loss position aggregated by length of time: September 30, 2023 Less than 12 months 12 months or longer Total Fair value Gross unrealized losses Fair value Gross unrealized losses Fair value Gross unrealized losses (in thousands) Commercial paper $ 72,508 $ (24) $ — $ — $ 72,508 $ (24) Asset-backed securities 6,554 (30) 2,135 (18) 8,689 (48) Corporate bonds 6,669 (16) 24,730 (388) 31,399 (404) U.S. Treasury and government agencies 107,557 (127) 17,943 (335) 125,500 (462) Total $ 193,288 $ (197) $ 44,808 $ (741) $ 238,096 $ (938) December 31, 2022 Less than 12 months 12 months or longer Total Fair value Gross unrealized losses Fair value Gross unrealized losses Fair value Gross unrealized losses (in thousands) Foreign government agencies $ 998 $ (2) $ — $ — $ 998 $ (2) Asset-backed securities 13,365 (124) 1,652 (10) 15,017 (134) Corporate bonds 33,800 (389) 26,326 (758) 60,126 (1,147) U.S. Treasury and government agencies 89,802 (1,175) 36,833 (255) 126,635 (1,430) Total $ 137,965 $ (1,690) $ 64,811 $ (1,023) $ 202,776 $ (2,713) The Company had the ability and intent to hold all marketable securities that were in an unrealized loss position until recovery of the amortized cost basis. The Company considered the extent to which fair value was less than amortized cost basis and conditions related to security’s industry and geography and changes to the ratings, if any, and concluded the decline in fair value compared to carrying value was not related to credit loss. The following summarizes the fair value of cash equivalents and marketable securities by contractual maturity: September 30, 2023 Amortized Cost Fair Value (in thousands) Due within One Year $ 266,899 $ 266,127 Due after One Year through Two Years 18,330 18,214 Asset-backed securities 15,470 15,434 Total $ 300,699 $ 299,775 Non-Marketable Securities During the fiscal year ended December 31, 2018, the Company invested $2.5 million in preferred stock of a privately-held company. The fair value of the investment is not readily available, and there are no quoted market prices for the investment. The Company accounts for the investment at cost less impairment and will measure the investment at fair value when the Company identifies observable price changes. The investment is assessed for impairment whenever events or changes in circumstances indicate that the fair value of the investment is less than carrying value. During the second quarter of 2023, the Company identified an observable price change in the investment and recognized an immaterial unrealized loss in other income (expense), net of the condensed consolidated statement of operations. The investment is included in other noncurrent assets on the condensed consolidated balance sheets. The Company has not received any dividends from the investment. Derivative Financial Instruments Designated cash flow hedges The Company enters into foreign currency forward contracts to reduce the risk of variability in future cash flow due to foreign currency exchange rate fluctuation from certain forecasted subscription revenue orders billed in British Pound ("GBP") and Euro ("EUR") and operating expenses incurred in Indian Rupee ("INR"), which are designated as cash flow hedges. Hedge effectiveness is assessed at inception and at each reporting period utilizing regression analysis. Unrealized foreign exchange gains or losses related to those designated cash flow hedge contracts are recorded in accumulated other comprehensive income ("AOCI") and will be reclassified into revenues or operating expenses, respectively, in the same periods when the hedged transactions are recognized in earnings. As of September 30, 2023, the Company had designated cash flow hedge forward contracts with notional amounts of €41.3 million, £13.0 million and Rs.3,969.0 million. As of December 31, 2022, the Company had designated cash flow hedge forward contracts with notional amounts of €37.4 million, £10.4 million and Rs.3,411.0 million. As of September 30, 2023 , a de minimis net amount of unrealized losses before tax on the foreign currency forward contracts for GBP and Euro reported in AOCI is expected to be reclassified into revenue within the next 12 months. As of September 30, 2023 , an immaterial net amount of unrealized losses before tax on the foreign currency forward contracts for INR reported in AOCI is expected to be reclassified into operating expenses within the next 12 months. Non-designated forward contracts The Company also uses foreign currency forward contracts to hedge certain foreign currency denominated assets or liabilities, which are not designated as cash flow hedges. Unrealized foreign exchange gain or losses related to the non-designated forward contracts are recorded in other income (expenses), net and offset the foreign exchange gain or loss on the underlying net monetary assets or liabilities. As of September 30, 2023, the Company had non-designated forward contracts with notional amounts of €11.8 million, £3.3 million, Rs.770.0 million, and Canadian Dollar ("C$" or "CAD") 3.6 million. As of December 31, 2022, the Company had non-designated forward contracts with notional amounts of €40.2 million, £16.2 million, Rs.484.0 million, and C$3.8 million. The following summarizes the fair value of derivative financial instruments as of September 30, 2023 and December 31, 2022 : September 30, December 31, (in thousands) Assets Foreign currency forward contracts designated as cash flow hedge $ 899 $ 1,041 Foreign currency forward contracts not designated as hedging instruments 528 452 Total $ 1,427 $ 1,493 Liabilities Foreign currency forward contracts designated as cash flow hedge $ 819 $ 2,634 Foreign currency forward contracts not designated as hedging instruments 69 2,045 Total $ 888 $ 4,679 The Company presents its derivative assets and derivative liabilities at gross fair values in the condensed consolidated balance sheets. However, under the master netting agreements with the respective counterparties of the foreign exchange contracts, subject to applicable requirements, the Company is allowed to net settle transactions of the same currency with a single net amount payable by one party to the other. The potential offset to both assets and liabilities under the right of set-off associated with the Company's foreign currency exchange contracts are immaterial as of September 30, 2023 and December 31, 2022. The derivatives held by the Company are not subject to any credit contingent features negotiated with its counterparties. The Company is not required to pledge nor is entitled to receive cash collateral related to the above contracts. The counterparties to these derivatives are large, global financial institutions that the Company believes are creditworthy, and therefore, it does not consider the risk of counterparty nonperformance to be material. The following summarizes the gains (losses) recognized from forward contracts and other foreign currency transactions in other income (expense), net in the condensed consolidated statements of operations: Three Months Ended Nine Months Ended 2023 2022 2023 2022 (in thousands) (in thousands) Net gains from non-designated forward contracts $ 540 $ 3,608 $ 690 $ 8,573 Other foreign currency transactions losses (1,248) (4,518) (1,979) (11,856) Total foreign exchange losses, net $ (708) $ (910) $ (1,289) $ (3,283)

Accumulated Other Comprehensive

Accumulated Other Comprehensive Income (Loss)	9 Months Ended
Accumulated Other Comprehensive Income (Loss)	Sep. 30, 2023
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract]
Accumulated Other Comprehensive Income (Loss)	Accumulated Other Comprehensive Income (Loss) The components and changes in accumulated other comprehensive income (loss) for the three and nine months ended September 30, 2023 and 2022 were as follows: Available-for-sale debt securities Cash flow hedges Total (in thousands) Balances at December 31, 2022 $ (2,705) $ 758 $ (1,947) Change in unrealized gains (losses) during the period 1,131 (443) 688 Amount reclassified into income during the period — (534) (534) Tax effect — 222 222 Net change during the period 1,131 (755) 376 Balances at March 31, 2023 (1,574) 3 (1,571) Change in unrealized gains (losses) during the period 312 65 377 Amount reclassified into income during the period — (665) (665) Tax effect — 143 143 Net change during the period 312 (457) (145) Balances at June 30, 2023 (1,262) (454) (1,716) Change in unrealized gains (losses) during the period 339 1,249 1,588 Amount reclassified into income during the period — (580) (580) Tax effect — (159) (159) Net change during the period 339 510 849 Balances at September 30, 2023 $ (923) $ 56 $ (867) Balances at December 31, 2021 $ (185) $ 1,192 $ 1,007 Change in unrealized gains (losses) during the period (2,070) 648 (1,422) Amount reclassified into income during the period — (60) (60) Tax effect (58) (137) (195) Net change during the period (2,128) 451 (1,677) Balances at March 31, 2022 (2,313) 1,643 (670) Change in unrealized gains (losses) during the period (933) 1,548 615 Amount reclassified into income during the period — (244) (244) Tax effect — (326) (326) Net change during the period (933) 978 45 Balances at June 30, 2022 (3,246) 2,621 (625) Change in unrealized gains (losses) during the period (492) 1,877 1,385 Amount reclassified into income during the period — (355) (355) Tax effect — (362) (362) Net change during the period (492) 1,160 668 Balances at September 30, 2022 $ (3,738) $ 3,781 $ 43 The effects on income before income taxes of amounts reclassified from AOCI to the condensed consolidated statements of operations were as follows: Three Months Ended Nine Months Ended 2023 2022 2023 2022 (in thousands) (in thousands) Reclassification of AOCI - Cash flow hedges Revenues $ 721 $ 660 $ 2,918 $ 883 Cost of revenues (32) (67) (262) (50) Research and development (89) (195) (724) (143) Sales and marketing (6) (12) (45) (9) General and administrative (14) (31) (108) (22) Total $ 580 $ 355 $ 1,779 $ 659 There was no reclassification of AOCI to other income (expense), net related to Available-for-sale debt securities during the three months and nine months ended September 30, 2023 and 2022.

Property and Equipment, Net

Property and Equipment, Net	9 Months Ended
Property and Equipment, Net	Sep. 30, 2023
Property, Plant and Equipment [Abstract]
Property and Equipment, Net	Property and Equipment, Net Property and equipment, net, consists of the following: September 30, December 31, (in thousands) Computer equipment $ 178,351 $ 173,832 Computer software 26,068 25,808 Leasehold improvements 20,923 21,009 Scanner appliances 17,784 15,696 Furniture, fixtures and equipment 6,616 6,524 Total property and equipment 249,742 242,869 Less: accumulated depreciation and amortization (213,582) (195,441) Property and equipment, net $ 36,160 $ 47,428 As of September 30, 2023 and December 31, 2022 , physical scanner appliances and other computer equipment that are or will be subject to leases by customers had a net carrying value of $10.1 million and $6.7 million, respectively, including assets that had not been placed in service of $7.2 million and $4.0 million, respectively. Depreciation and amortization expenses relating to property and equipment were $5.8 million and $6.7 million for the three months ended September 30, 2023 and 2022 , respectively, and $18.4 million and $20.7 million for the nine months ended September 30, 2023 and 2022, respectively, which were primarily recorded in cost of revenues in the condensed consolidated statements of operations.

Revenue from Contracts with Cus

Revenue from Contracts with Customers	9 Months Ended
Revenue from Contracts with Customers	Sep. 30, 2023
Revenue Recognition [Abstract]
Revenue from Contracts with Customers	Revenue from Contracts with Customers The Company records deferred revenue when cash payments are received or due in advance of its performance obligations offset by revenue recognized in the period. Revenues o f $57.2 million and $51.4 million were recognized during the three months ended September 30, 2023 and 2022 , respectively, and $257.4 million and $227.3 million were recognized during the nine months ended September 30, 2023 and 2022, respectively, which amounts were included in the deferred revenue balances of $317.2 million and $290.6 million as of December 31, 2022 and 2021 , respectively. The Company's payment terms vary by the type and location of its customers. The term between invoicing and when payment is due is not significant. In certain circumstances, based on the credit quality of the customer, the Company requires payment before the products or services are delivered to the customer. The following table sets forth the expected revenue from all remaining performance obligations as of September 30, 2023: (in thousands) 2023 (remaining three months) $ 54,190 2024 162,095 2025 88,045 2026 24,142 2027 1,801 2028 and thereafter 417 Total $ 330,690 Revenues allocated to remaining performance obligations represents the transaction price of noncancelable orders for which service has not been performed, which include deferred revenue and the amounts that will be invoiced and recognized as revenues in future periods from open contracts and excludes unexercised renewals. The Company applied the short-term contract exemption to exclude the remaining performance obligations that are part of a contract that has an original expected duration of one year or less. From time to time, the Company enters into contracts with customers that extend beyond one year, with certain of its customers electing to pay for more than one year of services upon contract execution. The Company concluded that these contracts did not contain a financing component. Revenues by sales channel are as follows: Three Months Ended Nine Months Ended September 30, September 30, 2023 2022 2023 2022 (in thousands) (in thousands) Direct $ 80,499 $ 72,958 $ 234,410 $ 209,493 Partner 61,497 52,603 175,478 149,381 Total $ 141,996 $ 125,561 $ 409,888 $ 358,874 The Company utilizes partners to enable and accelerate the adoption of its cloud platform by increasing its distribution capabilities and market awareness of its cloud platform as well as by targeting geographic regions outside the reach of its direct sales force. The Company's channel partners maintain relationships with their customers throughout the territories in which they operate and provide their customers with services and third-party solutions to help meet those customers’ evolving security and compliance requirements. As such, these partners may offer the Company's IT security and compliance solutions in conjunction with one or more of their own products or services and act as a conduit through which the Company can connect with these prospective customers to offer its solutions. For sales involving a channel partner, the channel partner engages with the prospective customer directly and involves the Company's sales team as needed to assist in developing and closing an order. When a channel partner secures a sale, the Company sells the associated subscription to the channel partner who in turn resells the subscription to the customer. Sales to channel partners are made at a discount and revenues are recorded at this discounted price over the subscription terms. The Company does not have any influence or specific knowledge of its partners' selling terms with their customers. See Note 12 , "Segment Information and Information about Geographic Area" for disaggregation of revenue by geographic area. Deferred costs to obtain contracts are as follows: September 30, December 31, (in thousands) Current $ 5,450 $ 5,018 Noncurrent $ 10,726 $ 10,090 For the three months ended September 30, 2023 and 2022 , the Company recognized $1.5 million and $1.3 million, respectively, of amortization expense relating to deferred costs to obtain contracts in sales and marketing expense in the condensed consolidated statements of operations. For the nine months ended September 30, 2023 and 2022 , the Company recognized $4.4 million and $3.6 million, respectively, of amortization expenses related to deferred costs to obtain contracts in sales and marketing expense in the condensed consolidated statements of operations. During the same periods, there was no impairment loss related to the deferred costs to obtain contracts. As of December 31, 2021, the net carrying value of the Company’s accounts receivable, deferred revenues, current and deferred revenues, noncurrent were $109.0 million, $257.9 million and $32.7 million, respectively.

Intangible Assets, Net

Intangible Assets, Net	9 Months Ended
Intangible Assets, Net	Sep. 30, 2023
Goodwill and Intangible Assets Disclosure [Abstract]
Intangible Assets, Net	Intangible Assets, Net Intangible assets consist primarily of developed technology and patent licenses acquired from business or asset acquisitions. Acquired intangibles are amortized on a straight-line basis over the respective estimated useful lives of the assets. The carrying values of intangible assets are as follows: September 30, 2023 (in thousands) Weighted Average Life (Years) Weighted Average Remaining Cost Accumulated Amortization Net Book Value Developed technology 4.6 1.2 $ 40,141 $ (29,965) $ 10,176 Patent licenses 14.0 0.9 1,387 (1,297) 90 Assembled workforce 2.0 1.0 359 (179) 180 Total intangibles subject to amortization $ 41,887 $ (31,441) $ 10,446 Intangible assets not subject to amortization 40 Total intangible assets, net $ 10,486 Weighted Average Life (Years) Weighted Average Remaining December 31, 2022 (in thousands) Cost Accumulated Amortization Net Book Value Developed technology 4.6 1.4 $ 40,141 $ (27,860) $ 12,281 Patent licenses 14.0 1.7 1,387 (1,221) 166 Assembled workforce 2.0 1.7 359 (45) 314 Total intangibles subject to amortization $ 41,887 $ (29,126) $ 12,761 Intangible assets not subject to amortization 40 Total intangible assets, net $ 12,801 Intangible asset amortization expense was $0.8 million and $1.3 million for the three months ended September 30, 2023 and 2022, respectively, and $2.3 million and $4.5 million for the nine months ended September 30, 2023 and 2022. Intangible asset amortization expenses were primarily recorded in cost of revenues in the condensed consolidated statements of operations. As of September 30, 2023 , the Company expects amortization expense in future periods to be as follows: (in thousands) 2023 (remaining three months) $ 771 2024 2,904 2025 2,556 2026 2,477 2027 1,738 Total expected future amortization expense $ 10,446

Leases

Leases	9 Months Ended
Leases	Sep. 30, 2023
Leases [Abstract]
Leases	Leases The Company leases certain offices, computer equipment and its shared cloud platform facilities under non-cancelable operating leases for varying periods through 2028 . While under the Company's lease agreements the Company has options to extend its certain leases, the Company has not included renewal options in determining the lease terms for calculating its lease liabilities, as these options are not reasonably certain of being exercised. Lease expense was $3.9 million and $3.7 million for the three months ended September 30, 2023 and 2022, respectively, and $12.1 million and $11.1 million for the nine months ended September 30, 2023 and 2022 , respectively. Supplemental cash flow information related to operating leases was as follows: Nine Months Ended 2023 2022 (in thousands) Cash payments included in the measurement of lease liabilities $ 11,350 $ 12,258 Lease liabilities arising from obtaining right-of-use assets $ 121 $ 3,401 The weighted average remaining lease term and the weighted average discount rate of the Company's operating leases were as follows: September 30, December 31, Weighted average remaining lease term (years) 3.2 3.7 Weighted average discount rate 5.2 % 5.2 %

Commitments and Contingencies

Commitments and Contingencies	9 Months Ended
Commitments and Contingencies	Sep. 30, 2023
Commitments and Contingencies Disclosure [Abstract]
Commitments and Contingencies	Commitments and Contingencies Indemnifications The Company from time to time enters into certain types of contracts that contingently require it to indemnify various parties against claims from third parties. These contracts primarily relate to (i) the Company's bylaws, under which it must indemnify directors and executive officers, and may indemnify other officers and employees, for liabilities arising out of their relationship, (ii) contracts under which the Company must indemnify directors and certain officers for liabilities arising out of their relationship, and (iii) contracts under which the Company may be required to indemnify customers or resellers from certain liabilities arising from potential infringement of intellectual property rights, as well as potential damages caused by limited product defects. To date, the Company has not incurred and has not recorded any liability in connection with such indemnifications. The Company maintains director and officer insurance, which may cover certain liabilities arising from its obligation to indemnify its directors.

Stockholders' Equity and Stock-

Stockholders' Equity and Stock-based Compensation	9 Months Ended
Stockholders' Equity and Stock-based Compensation	Sep. 30, 2023
Equity [Abstract]
Stockholders' Equity and Stock-based Compensation	Stockholders' Equity and Stock-based Compensation Equity Incentive Plans Restated 2012 Equity Incentive Plan On June 8, 2022 ("Effective Date"), the Company's stockholders approved the Amended and Restated 2012 Equity Incentive Plan (the "Restated 2012 Plan"). Under the Restated 2012 Plan, the Company is authorized to grant to eligible participants incentive stock options, nonstatutory stock options, restricted stock, restricted stock units ("RSUs"), stock appreciation rights, performance units and performance shares. Pursuant to the relevant plan provisions, 3,072 thousand shares were available for grant under the Restated 2012 Plan on the Effective Date. In addition, any outstanding awards or options granted under the previous version of the 2012 Equity Incentive Plan (“Previous 2012 Plan”) will be added back to the shares available for grant under the Restated 2012 Plan if they expire unexercised or are otherwise forfeited after the Effective Date. Any remaining shares available for grant under the Previous 2012 Plan as of the Effective Date were no longer available for future grants under the Restated 2012 Plan. As of September 30, 2023 , 2,033 thousand shares were available for grant under the Restated 2012 Plan. 2021 Employee Stock Purchase Plan On June 9, 2021, the Company’s stockholders approved the 2021 Employee Stock Purchase Plan (the “ESPP”). A total of 600 thousand shares were authorized for issuance to eligible participating employees upon adoption of the ESPP. The ESPP provides for consecutive 6-month offering periods beginning on or about August 16 and February 16 of each year. Eligible employees who elect to participate can contribute from 1% to 15% of their eligible compensation through payroll withholding. During any offering period, contribution rates cannot be changed. However, eligible employees may withdraw from the current offering period. Any contributions made prior to each purchase date in the case of withdrawal or termination of employment will be refunded. On each purchase date, eligible participating employees will purchase the shares at a price per share equal to 85% of the lesser of (i) the fair market value of the Company's stock on the first trading day of the offering period or (ii) the fair market value of the Company's stock on the purchase date (i.e., the last trading day of the offering period). During the nine months ended September 30, 2023 , 60.6 thousand shares were issued in connection with the purchase of common stock by participating employees. As of September 30, 2023 , 494.0 thousand shares were available for future purchases. Stock-based Compensation The following table shows a summary of the stock-based compensation expense included in the condensed consolidated statements of operations: Three Months Ended Nine Months Ended 2023 2022 2023 2022 (in thousands) (in thousands) Cost of revenues $ 1,946 $ 1,384 $ 5,255 $ 3,739 Research and development 5,671 3,236 15,734 10,064 Sales and marketing 3,229 2,495 8,580 6,829 General and administrative 7,676 6,176 20,991 17,224 Total stock-based compensation, net of amounts capitalized (1) $ 18,522 $ 13,291 $ 50,560 $ 37,856 (1) Total stock-based compensation expense capitalized was de minimis during the three and nine months ended September 30, 2023. As of September 30, 2023 , the Company had unrecognized stock-based compensation expenses of $24.1 million, $79.1 million, $2.9 million, and $0.9 million related to options, RSUs, performance-based RSUs, and ESPP purchase rights, respectively, which are expected to be recognized over weighted-average periods of 2.7 years, 2.6 years, 0.6 years, and 0.4 years, respectively. Performance-based Restricted Stock Units ("PSUs") On April 27, 2021 , the Compensation Committee granted to the Company’s current president and chief executive officer an equity award consisting of certain RSUs and a target number of 10 thousand PSUs. The PSUs are scheduled to vest at the end of the three-year performance period from January 2021 through December 2023. The actual number of the PSUs eligible to vest ranges from 0% to 200% of the target number, depending on the level of achievement of goals related to revenue growth and free cash flow per share growth during the performance period. If the Company's current president and chief executive officer is terminated (a) by reason of death or disability or (b) by the Company for reasons other than cause or good reason within 12 months following a change in control, then 100% of any unvested portions of the award will vest, with any vesting in connection with terminations due to change in control conditioned upon the effectiveness of a release of claims in favor of the Company. On October 28, 2021, the Compensation Committee approved to certain executive officers of the Company equity awards consisting of certain RSUs and an aggregate target number of 73 thousand PSUs. The target PSUs are scheduled to vest in three On October 27, 2022, the Compensation Committee approved to certain executive officers of the Company equity awards consisting of certain RSUs and an aggregate target number of 86 thousand PSUs. The target PSUs are scheduled to vest in three On February 6, 2023 and July 27, 2023, the Compensation Committee approved to certain executive officers of the Company equity awards consisting of certain RSUs and an aggregate target number of 6 thousand and 9 thousand PSUs, respectively. The target PSUs are scheduled to vest in three The Company recognized stock-based compensation expenses related to all PSUs of $2.7 million and $1.0 million during the three months ended September 30, 2023 and 2022, respectively, and $5.2 million and $2.9 million during the nine months ended September 30, 2023 and 2022 respectively. Stock Option Activity A summary of the Company’s stock option activity is as follows: Outstanding Options Weighted Average Exercise Weighted Average Remaining Aggregate Intrinsic Value (in thousands) (Years) (in thousands) Balance as of December 31, 2022 1,807 $ 87.59 6.5 $ 58,024 Granted 289 $ 124.50 Exercised (400) $ 70.89 Canceled (99) $ 124.73 Balance as of September 30, 2023 1,597 $ 96.15 6.6 $ 90,043 Vested and expected to vest as of September 30, 2023 1,400 $ 91.74 6.3 $ 85,134 Exercisable as of September 30, 2023 831 $ 68.48 4.6 $ 69,829 Restricted Stock Unit Activity A summary of the Company’s RSU activity is as follows: Outstanding RSUs Weighted Average Grant Date Fair Value (in thousands) Balance as of December 31, 2022 1,183 (1) $ 124.42 Granted 285 (2) $ 131.44 Vested (296) (3) $ 114.97 Forfeited (157) (4) $ 127.63 Balance as of September 30, 2023 1,015 (5) $ 128.50 Outstanding and expected to vest as of September 30, 2023 796 $ 126.67 (1) Included 175 thousand PSUs granted to certain executive officers in 2022 and 2021. (2) Included 10 thousand PSUs granted to certain executive officers in the nine months ended September 30, 2023. (3) Included 24 thousand PSUs granted to certain executive officers in 2021. (4) Included 22 thousand PSUs granted to certain executive officers in 2022 and 2021. (5) Included 138 thousand PSUs granted to certain executive officers in 2023, 2022 and 2021. Share Repurchase Program The Company's share repurchase program was authorized by the board of directors as follows: Announcement Date Authorized Dollar Value (in millions) February 12, 2018 $ 100.0 October 30, 2018 100.0 October 30, 2019 100.0 May 7, 2020 100.0 February 10, 2021 100.0 November 3, 2021 200.0 May 4, 2022 200.0 February 9, 2023 100.0 Total as of September 30, 2023 $ 1,000.0 Shares may be repurchased from time to time on the open market in accordance with Rule 10b-18 of the Exchange Act of 1934, including pursuant to a pre-set trading plan adopted in accordance with Rule 10b5-1 under the Exchange Act. All share repurchases have been made using cash resources. Repurchased shares are retired and reclassified as authorized and unissued shares of common stock. On retirement of the repurchased shares, common stock is reduced by an amount equal to the number of shares being retired multiplied by the par value. The excess amount that is retired over its par value is first allocated as a reduction to additional paid-in capital based on the initial public offering price of the stock, with the remaining excess to accumulated deficit. During the nine months ended September 30, 2023 and 2022, the Company repurchased 1,203 thousand shares and 1,613 thousand shares of its common stock for approximately $147.7 million and $212.8 million, respectively. As of September 30, 2023, approximately $106.8 million remained available for share repurchases pursuant to the Company's share repurchase program.

Net Income Per Share

Net Income Per Share	9 Months Ended
Net Income Per Share	Sep. 30, 2023
Earnings Per Share [Abstract]
Net Income Per Share	Net Income Per Share The computations for basic and diluted net income per share are as follows: Three Months Ended Nine Months Ended 2023 2022 2023 2022 (in thousands, except per share data) (in thousands, except per share data) Numerator: Net income $ 46,515 $ 27,660 $ 111,002 $ 79,666 Denominator: Basic weighted average shares 36,766 38,317 36,891 38,680 Effect of potentially dilutive shares: Stock options 465 658 471 715 Restricted stock units 212 242 151 236 Employee stock purchase plan 5 3 3 3 Diluted weighted average shares 37,448 39,220 37,516 39,634 Net income per share: Basic $ 1.27 $ 0.72 $ 3.01 $ 2.06 Diluted $ 1.24 $ 0.71 $ 2.96 $ 2.01 Potentially dilutive shares not included in the calculation of diluted net income per share because doing so would be anti-dilutive are as follows: Three Months Ended Nine Months Ended 2023 2022 2023 2022 (in thousands) (in thousands) Stock options 762 554 925 614 Restricted stock units 1 — 186 30 Employee stock purchase plan 14 13 9 7 Total anti-dilutive shares 777 567 1,120 651

Income Taxes

Income Taxes	9 Months Ended
Income Taxes	Sep. 30, 2023
Income Tax Disclosure [Abstract]
Income Taxes	Income TaxesThe Company's income tax provision for interim periods is determined using an estimate of its annual effective tax rate, adjusted for discrete items, if any, that arise during the period. Each quarter, the Company updates its estimate of the annual effective tax rate, and if the estimated annual effective tax rate changes, the Company makes a cumulative adjustment in such period. The Company's quarterly tax provision, and estimate of its annual effective tax rate, is subject to variation due to several factors, including variability in pretax income (or loss), the mix of jurisdictions to which such income relates, changes in how the Company does business, tax law developments and possible outcomes of audits. The Company's estimated effective tax rate for the year differs from the U.S. statutory rate of 21% primarily due to non-deductible stock-based compensation expense, state taxes, the benefit of U.S. federal income tax credits, the impact of mandatory capitalization of research expenses for U.S. tax purposes, and the benefits related to foreign-derived intangible income deduction. The Company recorded an income tax provision of $1.5 million and $6.2 million for the three months ended September 30, 2023 and 2022, respectively, resulting in an effective tax rate of 3.1% and 18.3%, respectively. The decrease in income tax provision for the three months ended September 30, 2023 compared to the three months ended September 30, 2022, was primarily due to higher foreign tax credits and lower net capitalization of research and development expenses for tax purposes than previously estimated. The decrease was partially offset by the tax effect of an increase in pretax income and a decrease in excess tax benefits arising from stock-based compensation compared to the same period in 2022. The Company recorded an income tax provision of $20.1 million and $19.6 million for the nine months ended September 30, 2023 and 2022, respectively, resulting in an effective tax rate of 15.3% and 19.8%, respectively. The increase in income tax provision for the nine months ended September 30, 2023 compared to the nine months ended September 30, 2022, was primarily due to an increase in pretax income and a decrease in excess tax benefits arising from stock-based compensation compared to the same period in 2022. The increase was partially offset by higher foreign tax credits and lower net capitalization of research and development expenses for tax purposes than previously estimated. As of September 30, 2023, the Company had unrecognized tax benefits of $11.6 million, of which $6.0 million, if recognized, would favorably impact the Company's effective tax rate. As of December 31, 2022, the Company had unrecognized tax benefits of $10.5 million, of which $5.3 million, if recognized, would favorably impact the Company's effective tax rate. The Company does not anticipate a material change in its unrecognized tax benefits in the next 12 months.

Segment Information and Informa

Segment Information and Information about Geographic Area	9 Months Ended
Segment Information and Information about Geographic Area	Sep. 30, 2023
Segment Reporting [Abstract]
Schedule of Revenue and Long-lived Assets by Geographic Area	Segment Information and Information about Geographic Area Under ASC 280 Segment Reporting, operating segments are defined as components of an entity about which separate financial information is evaluated regularly by the chief operating decision maker in deciding how to allocate resources and in assessing performance. The Company operates in one segment and has only one reportable segment. The Company’s chief operating decision maker is the Chief Executive Officer, who makes operating decisions, assesses performance and allocates resources on a consolidated basis. All of the Company’s principal operations and decision-making functions are located in the United States. Revenue by geographic area, based on the customer's billing address, is as follows: Three Months Ended Nine Months Ended 2023 2022 2023 2022 (in thousands) (in thousands) United States $ 85,377 $ 74,574 $ 246,348 $ 213,435 Foreign 56,619 50,987 163,540 145,439 Total revenues $ 141,996 $ 125,561 $ 409,888 $ 358,874 Long-lived assets, which consist of Property and equipment, net and Operating leases - right of use asset, by geographic area, are as follows: September 30, December 31, (in thousands) United States $ 47,133 $ 58,775 India 11,276 16,057 Rest of world 2,962 6,348 Total Long-lived Assets $ 61,371 $ 81,180

Pay vs Performance Disclosure

Pay vs Performance Disclosure - USD ($) $ in Thousands	3 Months Ended						9 Months Ended
Pay vs Performance Disclosure - USD ($) $ in Thousands	Sep. 30, 2023	Jun. 30, 2023	Mar. 31, 2023	Sep. 30, 2022	Jun. 30, 2022	Mar. 31, 2022	Sep. 30, 2023	Sep. 30, 2022
Pay vs Performance Disclosure
Net income	$ 46,515	$ 35,382	$ 29,105	$ 27,660	$ 26,596	$ 25,410	$ 111,002	$ 79,666

Insider Trading Arrangements

Insider Trading Arrangements	3 Months Ended	9 Months Ended
Insider Trading Arrangements	Sep. 30, 2023 shares	Sep. 30, 2023 shares
Trading Arrangements, by Individual
Non-Rule 10b5-1 Arrangement Adopted	false
Rule 10b5-1 Arrangement Terminated	false
Non-Rule 10b5-1 Arrangement Terminated	false
Joo Mi Kim [Member]
Trading Arrangements, by Individual
Material Terms of Trading Arrangement		On August 28, 2023, Joo Mi Kim, our Chief Financial Officer, adopted a Rule 10b5-1 trading arrangement providing for the sale from time to time of an aggregate of up to 31,606 shares of our common stock, which represents the gross number of shares authorized to be sold during the duration of the plan, before excluding any shares withheld by the company to satisfy its income tax withholding in connection with the net settlement of the equity awards. The trading arrangement is intended to satisfy the affirmative defense in Rule 10b5-1(c). The duration of the trading arrangement is until November 29, 2024, or earlier if all transactions under the trading arrangement are completed.
Name	Joo Mi Kim
Title	Chief Financial Officer
Rule 10b5-1 Arrangement Adopted	true
Adoption Date	August 28, 2023
Arrangement Duration	459 days
Aggregate Available	31,606	31,606
Bruce Posey [Member]
Trading Arrangements, by Individual
Material Terms of Trading Arrangement		On August 28, 2023, Bruce Posey, our Chief Legal Officer, adopted a Rule 10b5-1 trading arrangement providing for the sale from time to time of an aggregate of up to 25,381 shares of our common stock, which represents the gross number of shares authorized to be sold during the duration of the plan, before excluding any shares withheld by the company to satisfy its income tax withholding in connection with the net settlement of the equity awards. The trading arrangement is intended to satisfy the affirmative defense in Rule 10b5-1(c). The duration of the trading arrangement is until November 29, 2024, or earlier if all transactions under the trading arrangement are completed.
Name	Bruce Posey
Title	Chief Legal Officer
Rule 10b5-1 Arrangement Adopted	true
Adoption Date	August 28, 2023
Arrangement Duration	459 days
Aggregate Available	25,381	25,381
Wendy Pfeiffer [Member]
Trading Arrangements, by Individual
Material Terms of Trading Arrangement		On August 31, 2023, Wendy Pfeiffer, a member of our board of directors, adopted a Rule 10b5-1 trading arrangement providing for the sale from time to time of an aggregate of up to 6,640 shares of our common stock. The trading arrangement is intended to satisfy the affirmative defense in Rule 10b5-1(c). The duration of the trading arrangement is until September 3, 2024, or earlier if all transactions under the trading arrangement are completed.
Name	Wendy Pfeiffer
Title	board of directors
Rule 10b5-1 Arrangement Adopted	true
Adoption Date	August 31, 2023
Arrangement Duration	369 days
Aggregate Available	6,640	6,640

Description of Business and S_2

Description of Business and Summary of Significant Accounting Policies (Policies)	9 Months Ended
	Sep. 30, 2023
Accounting Policies [Abstract]
Description of Business	Description of Business Qualys, Inc. (the “Company”, "we", "us", "our") was incorporated in the state of Delaware on December 30, 1999 . The Company is headquartered in Foster City, California and has wholly-owned subsidiaries throughout the world. The Company is a leading provider of cloud-based information technology ("IT"), security and compliance solutions that enable organizations to identify security risks to their IT infrastructures, help protect their IT systems and applications from ever-evolving cyber-attacks and achieve compliance with internal policies and external regulations. The Company’s cloud solutions address the growing security and compliance complexities and risks that are amplified by the dissolving boundaries between internal and external IT infrastructures and web environments, the rapid adoption of cloud computing and the proliferation of geographically dispersed IT assets. Organizations can use the Company’s integrated suite of solutions delivered on its Qualys Cloud Platform to cost-effectively obtain a unified view of their security and compliance posture across globally-distributed IT infrastructures.
Basis of Presentation	Basis of Presentation The accompanying unaudited condensed consolidated financial statements and condensed footnotes have been prepared in accordance with accounting principles generally accepted in the United States ("U.S. GAAP") for interim financial information as well as the instructions to Form 10-Q and the rules and regulations of the U.S. Securities and Exchange Commission ("SEC"). Certain information and disclosures normally included in the financial statements prepared in accordance with U.S. GAAP have been condensed or omitted pursuant to such rules and regulations. The condensed consolidated balance sheet as of December 31, 2022, included herein, was derived from the audited financial statements as of that date but does not include all disclosures, including notes required by U.S. GAAP. In the opinion of management, the accompanying unaudited condensed consolidated financial statements reflect all adjustments, which include only normal recurring adjustments, necessary for the fair statement of the financial position, results of operations and cash flows for the interim periods. The results of operations for the three and nine months ended September 30, 2023 are not necessarily indicative of the results of operations expected for the entire year ending December 31, 2023 or for any other future annual or interim periods. These condensed consolidated financial statements should be read in conjunction with the consolidated financial statements and related notes included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2022 filed with the SEC on February 23, 2023. Certain prior year amounts have been reclassified to conform to current year presentation.
Risk and Uncertainties	Risks and Uncertainties The uncertainty surrounding macroeconomic factors in the U.S. and globally characterized by the supply chain environment, inflationary pressure, rising interest rates, financial institution failures and associated uncertainty, labor shortages, significant volatility of global markets, reduced spending and extended sales cycles, and geopolitical conflicts could have a material adverse effect on the Company's long-term business and could lead to further economic disruption and expose the Company to greater risk as its current and potential customers may reduce or eliminate their overall spending on IT security.
Use of Estimates	Use of Estimates The preparation of the unaudited condensed consolidated financial statements in conformity with U.S. GAAP requires management to make certain estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of assets and liabilities at the date of the condensed consolidated financial statements and the reported results of operations during the reporting period. The Company’s management regularly assesses these estimates, which primarily affect revenue recognition, allowance for credit loss, the valuation of goodwill and intangible assets, leases, stock-based compensation and income tax provision. Actual results could differ from those estimates and such differences may be material to the accompanying unaudited condensed consolidated financial statements.
Recently Adopted Accounting Pronouncements and Recently Issued Accounting Pronouncements Not Yet Adopted	Recently Adopted Accounting Pronouncements None. Recently Issued Accounting Pronouncements Not Yet Adopted The Company does not believe any new accounting pronouncements issued by the FASB that have not become effective will have a material impact on its condensed consolidated financial statements. There have been no material changes to the Company’s significant accounting policies set forth in "Note 1" of Notes to Consolidated Financial Statements included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2022.

Fair Value of Financial Instr_2

Fair Value of Financial Instruments (Tables)	9 Months Ended
Fair Value of Financial Instruments (Tables)	Sep. 30, 2023
Fair Value Disclosures [Abstract]
Schedule of Fair Value of Financial Assets and Liabilities Measured on Recurring Basis	The following table sets forth by level within the fair value hierarchy the fair value of the Company's financial assets and liabilities measured at fair value on a recurring basis: September 30, 2023 Level 1 Level 2 Fair Value (in thousands) Money market funds $ 37,500 $ — $ 37,500 Commercial paper — 72,507 72,507 U.S. Treasury and government agencies — 138,959 138,959 Corporate bonds — 35,375 35,375 Asset-backed securities — 15,434 15,434 Foreign currency forward contracts — 1,427 1,427 Total assets $ 37,500 $ 263,702 $ 301,202 Foreign currency forward contracts $ — $ 888 $ 888 Total liabilities $ — $ 888 $ 888 December 31, 2022 Level 1 Level 2 Fair Value (in thousands) Money market funds $ 82,701 $ — $ 82,701 U.S. Treasury and government agencies — 156,662 156,662 Foreign government — 1,006 1,006 Corporate bonds — 63,910 63,910 Asset-backed securities — 15,027 15,027 Foreign currency forward contracts — 1,493 1,493 Total assets $ 82,701 $ 238,098 $ 320,799 Foreign currency forward contracts $ — $ 4,679 $ 4,679 Total liabilities $ — $ 4,679 $ 4,679
Schedule of Cash Equivalents and Marketable Securities	The Company's cash equivalents and marketable securities consist of the following: September 30, 2023 Amortized Cost Unrealized Gains Unrealized Losses Fair Value (in thousands) Cash equivalents: (1) Money market funds $ 37,500 $ — $ — $ 37,500 Commercial paper 9,940 — (3) 9,937 Total 47,440 — (3) 47,437 Short-term marketable securities: Commercial paper 62,591 — (21) 62,570 Corporate bonds 29,131 2 (356) 28,777 Asset-backed securities — — — — U.S. Treasury and government agencies 127,737 — (394) 127,343 Total 219,459 2 (771) 218,690 Long-term marketable securities: Corporate bonds 6,646 — (48) 6,598 Asset-backed securities 15,470 12 (48) 15,434 U.S. Treasury and government agencies 11,684 — (68) 11,616 Total 33,800 12 (164) 33,648 Total $ 300,699 $ 14 $ (938) $ 299,775 (1) Excludes cash of $161.3 million. December 31, 2022 Amortized Cost Unrealized Gains Unrealized Losses Fair Value (in thousands) Cash equivalents: (2) Money market funds $ 82,701 $ — $ — $ 82,701 U.S. Treasury and government agencies 29,787 4 — 29,791 Total 112,488 4 — 112,492 Short-term marketable securities: Corporate bonds 36,908 3 (337) 36,574 Asset-backed securities 726 — (2) 724 U.S. Treasury and government agencies 110,225 — (921) 109,304 Foreign government 1,008 — (2) 1,006 Total 148,867 3 (1,262) 147,608 Long-term marketable securities: Corporate bonds 28,146 — (810) 27,336 Asset-backed securities 14,435 — (132) 14,303 U.S. Treasury and government agencies 18,076 — (509) 17,567 Total 60,657 — (1,451) 59,206 Total $ 322,012 $ 7 $ (2,713) $ 319,306 (2) Excludes cash of $61.2 million.
Shedule of Gross Unrealized Losses and Fair Value of Marketable Securities in an Unrealized Loss Position	The following table summarizes the gross unrealized losses and fair value of the Company's marketable securities that were in an unrealized loss position aggregated by length of time: September 30, 2023 Less than 12 months 12 months or longer Total Fair value Gross unrealized losses Fair value Gross unrealized losses Fair value Gross unrealized losses (in thousands) Commercial paper $ 72,508 $ (24) $ — $ — $ 72,508 $ (24) Asset-backed securities 6,554 (30) 2,135 (18) 8,689 (48) Corporate bonds 6,669 (16) 24,730 (388) 31,399 (404) U.S. Treasury and government agencies 107,557 (127) 17,943 (335) 125,500 (462) Total $ 193,288 $ (197) $ 44,808 $ (741) $ 238,096 $ (938) December 31, 2022 Less than 12 months 12 months or longer Total Fair value Gross unrealized losses Fair value Gross unrealized losses Fair value Gross unrealized losses (in thousands) Foreign government agencies $ 998 $ (2) $ — $ — $ 998 $ (2) Asset-backed securities 13,365 (124) 1,652 (10) 15,017 (134) Corporate bonds 33,800 (389) 26,326 (758) 60,126 (1,147) U.S. Treasury and government agencies 89,802 (1,175) 36,833 (255) 126,635 (1,430) Total $ 137,965 $ (1,690) $ 64,811 $ (1,023) $ 202,776 $ (2,713)
Schedule of the Fair Value of Cash Equivalents and Marketable Securities by Contractual Maturity	The following summarizes the fair value of cash equivalents and marketable securities by contractual maturity: September 30, 2023 Amortized Cost Fair Value (in thousands) Due within One Year $ 266,899 $ 266,127 Due after One Year through Two Years 18,330 18,214 Asset-backed securities 15,470 15,434 Total $ 300,699 $ 299,775
Schedule of Derivative Instruments	The following summarizes the fair value of derivative financial instruments as of September 30, 2023 and December 31, 2022 : September 30, December 31, (in thousands) Assets Foreign currency forward contracts designated as cash flow hedge $ 899 $ 1,041 Foreign currency forward contracts not designated as hedging instruments 528 452 Total $ 1,427 $ 1,493 Liabilities Foreign currency forward contracts designated as cash flow hedge $ 819 $ 2,634 Foreign currency forward contracts not designated as hedging instruments 69 2,045 Total $ 888 $ 4,679
Schedule of Gains (Losses) Recognized from Forward Contracts and Other Foreign Currency Transactions in Other Income (Expense)	The following summarizes the gains (losses) recognized from forward contracts and other foreign currency transactions in other income (expense), net in the condensed consolidated statements of operations: Three Months Ended Nine Months Ended 2023 2022 2023 2022 (in thousands) (in thousands) Net gains from non-designated forward contracts $ 540 $ 3,608 $ 690 $ 8,573 Other foreign currency transactions losses (1,248) (4,518) (1,979) (11,856) Total foreign exchange losses, net $ (708) $ (910) $ (1,289) $ (3,283)

Accumulated Other Comprehensi_2

Accumulated Other Comprehensive Income (Loss) (Tables)	9 Months Ended
Accumulated Other Comprehensive Income (Loss) (Tables)	Sep. 30, 2023
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract]
Schedule of Accumulated Other Comprehensive Income (Loss)	The components and changes in accumulated other comprehensive income (loss) for the three and nine months ended September 30, 2023 and 2022 were as follows: Available-for-sale debt securities Cash flow hedges Total (in thousands) Balances at December 31, 2022 $ (2,705) $ 758 $ (1,947) Change in unrealized gains (losses) during the period 1,131 (443) 688 Amount reclassified into income during the period — (534) (534) Tax effect — 222 222 Net change during the period 1,131 (755) 376 Balances at March 31, 2023 (1,574) 3 (1,571) Change in unrealized gains (losses) during the period 312 65 377 Amount reclassified into income during the period — (665) (665) Tax effect — 143 143 Net change during the period 312 (457) (145) Balances at June 30, 2023 (1,262) (454) (1,716) Change in unrealized gains (losses) during the period 339 1,249 1,588 Amount reclassified into income during the period — (580) (580) Tax effect — (159) (159) Net change during the period 339 510 849 Balances at September 30, 2023 $ (923) $ 56 $ (867) Balances at December 31, 2021 $ (185) $ 1,192 $ 1,007 Change in unrealized gains (losses) during the period (2,070) 648 (1,422) Amount reclassified into income during the period — (60) (60) Tax effect (58) (137) (195) Net change during the period (2,128) 451 (1,677) Balances at March 31, 2022 (2,313) 1,643 (670) Change in unrealized gains (losses) during the period (933) 1,548 615 Amount reclassified into income during the period — (244) (244) Tax effect — (326) (326) Net change during the period (933) 978 45 Balances at June 30, 2022 (3,246) 2,621 (625) Change in unrealized gains (losses) during the period (492) 1,877 1,385 Amount reclassified into income during the period — (355) (355) Tax effect — (362) (362) Net change during the period (492) 1,160 668 Balances at September 30, 2022 $ (3,738) $ 3,781 $ 43
Schedule of Amounts Reclassified from AOCI to the Statements of Operations	The effects on income before income taxes of amounts reclassified from AOCI to the condensed consolidated statements of operations were as follows: Three Months Ended Nine Months Ended 2023 2022 2023 2022 (in thousands) (in thousands) Reclassification of AOCI - Cash flow hedges Revenues $ 721 $ 660 $ 2,918 $ 883 Cost of revenues (32) (67) (262) (50) Research and development (89) (195) (724) (143) Sales and marketing (6) (12) (45) (9) General and administrative (14) (31) (108) (22) Total $ 580 $ 355 $ 1,779 $ 659

Property and Equipment, Net (Ta

Property and Equipment, Net (Tables)	9 Months Ended
Property and Equipment, Net (Tables)	Sep. 30, 2023
Property, Plant and Equipment [Abstract]
Schedule of Property, Plant and Equipment, Net	Property and equipment, net, consists of the following: September 30, December 31, (in thousands) Computer equipment $ 178,351 $ 173,832 Computer software 26,068 25,808 Leasehold improvements 20,923 21,009 Scanner appliances 17,784 15,696 Furniture, fixtures and equipment 6,616 6,524 Total property and equipment 249,742 242,869 Less: accumulated depreciation and amortization (213,582) (195,441) Property and equipment, net $ 36,160 $ 47,428

Revenue from Contracts with C_2

Revenue from Contracts with Customers (Tables)	9 Months Ended
Revenue from Contracts with Customers (Tables)	Sep. 30, 2023
Revenue Recognition [Abstract]
Schedule of Expected Revenue from Performance Obligations	The following table sets forth the expected revenue from all remaining performance obligations as of September 30, 2023: (in thousands) 2023 (remaining three months) $ 54,190 2024 162,095 2025 88,045 2026 24,142 2027 1,801 2028 and thereafter 417 Total $ 330,690
Schedule of Revenue by Sales Channel	Revenues by sales channel are as follows: Three Months Ended Nine Months Ended September 30, September 30, 2023 2022 2023 2022 (in thousands) (in thousands) Direct $ 80,499 $ 72,958 $ 234,410 $ 209,493 Partner 61,497 52,603 175,478 149,381 Total $ 141,996 $ 125,561 $ 409,888 $ 358,874
Schedule of Deferred Costs to Obtain Contracts	Deferred costs to obtain contracts are as follows: September 30, December 31, (in thousands) Current $ 5,450 $ 5,018 Noncurrent $ 10,726 $ 10,090

Intangible Assets, Net (Tables)

Intangible Assets, Net (Tables)	9 Months Ended
Intangible Assets, Net (Tables)	Sep. 30, 2023
Goodwill and Intangible Assets Disclosure [Abstract]
Schedule of the Carrying Value of Intangible Assets	The carrying values of intangible assets are as follows: September 30, 2023 (in thousands) Weighted Average Life (Years) Weighted Average Remaining Cost Accumulated Amortization Net Book Value Developed technology 4.6 1.2 $ 40,141 $ (29,965) $ 10,176 Patent licenses 14.0 0.9 1,387 (1,297) 90 Assembled workforce 2.0 1.0 359 (179) 180 Total intangibles subject to amortization $ 41,887 $ (31,441) $ 10,446 Intangible assets not subject to amortization 40 Total intangible assets, net $ 10,486 Weighted Average Life (Years) Weighted Average Remaining December 31, 2022 (in thousands) Cost Accumulated Amortization Net Book Value Developed technology 4.6 1.4 $ 40,141 $ (27,860) $ 12,281 Patent licenses 14.0 1.7 1,387 (1,221) 166 Assembled workforce 2.0 1.7 359 (45) 314 Total intangibles subject to amortization $ 41,887 $ (29,126) $ 12,761 Intangible assets not subject to amortization 40 Total intangible assets, net $ 12,801
Schedule of Finite-Lived Intangible Assets, Future Amortization Expense	As of September 30, 2023 , the Company expects amortization expense in future periods to be as follows: (in thousands) 2023 (remaining three months) $ 771 2024 2,904 2025 2,556 2026 2,477 2027 1,738 Total expected future amortization expense $ 10,446

Leases (Tables)

Leases (Tables)	9 Months Ended
Leases (Tables)	Sep. 30, 2023
Leases [Abstract]
Schedule of Supplemental Cash Flow Information for Operating Leases	Supplemental cash flow information related to operating leases was as follows: Nine Months Ended 2023 2022 (in thousands) Cash payments included in the measurement of lease liabilities $ 11,350 $ 12,258 Lease liabilities arising from obtaining right-of-use assets $ 121 $ 3,401
Schedule of the Average Remaining Lease Term and the Weighted Average Discount Rate of Operating Leases	The weighted average remaining lease term and the weighted average discount rate of the Company's operating leases were as follows: September 30, December 31, Weighted average remaining lease term (years) 3.2 3.7 Weighted average discount rate 5.2 % 5.2 %

Stockholders' Equity and Stoc_2

Stockholders' Equity and Stock-based Compensation (Tables)	9 Months Ended
Stockholders' Equity and Stock-based Compensation (Tables)	Sep. 30, 2023
Equity [Abstract]
Schedule of Stock-Based Compensation Expense in Statements of Operations	The following table shows a summary of the stock-based compensation expense included in the condensed consolidated statements of operations: Three Months Ended Nine Months Ended 2023 2022 2023 2022 (in thousands) (in thousands) Cost of revenues $ 1,946 $ 1,384 $ 5,255 $ 3,739 Research and development 5,671 3,236 15,734 10,064 Sales and marketing 3,229 2,495 8,580 6,829 General and administrative 7,676 6,176 20,991 17,224 Total stock-based compensation, net of amounts capitalized (1) $ 18,522 $ 13,291 $ 50,560 $ 37,856 (1) Total stock-based compensation expense capitalized was de minimis during the three and nine months ended September 30, 2023.
Schedule of Stock Option Activity	A summary of the Company’s stock option activity is as follows: Outstanding Options Weighted Average Exercise Weighted Average Remaining Aggregate Intrinsic Value (in thousands) (Years) (in thousands) Balance as of December 31, 2022 1,807 $ 87.59 6.5 $ 58,024 Granted 289 $ 124.50 Exercised (400) $ 70.89 Canceled (99) $ 124.73 Balance as of September 30, 2023 1,597 $ 96.15 6.6 $ 90,043 Vested and expected to vest as of September 30, 2023 1,400 $ 91.74 6.3 $ 85,134 Exercisable as of September 30, 2023 831 $ 68.48 4.6 $ 69,829
Schedule of RSU Activity	A summary of the Company’s RSU activity is as follows: Outstanding RSUs Weighted Average Grant Date Fair Value (in thousands) Balance as of December 31, 2022 1,183 (1) $ 124.42 Granted 285 (2) $ 131.44 Vested (296) (3) $ 114.97 Forfeited (157) (4) $ 127.63 Balance as of September 30, 2023 1,015 (5) $ 128.50 Outstanding and expected to vest as of September 30, 2023 796 $ 126.67 (1) Included 175 thousand PSUs granted to certain executive officers in 2022 and 2021. (2) Included 10 thousand PSUs granted to certain executive officers in the nine months ended September 30, 2023. (3) Included 24 thousand PSUs granted to certain executive officers in 2021. (4) Included 22 thousand PSUs granted to certain executive officers in 2022 and 2021.
Schedule of Share Repurchase Program	The Company's share repurchase program was authorized by the board of directors as follows: Announcement Date Authorized Dollar Value (in millions) February 12, 2018 $ 100.0 October 30, 2018 100.0 October 30, 2019 100.0 May 7, 2020 100.0 February 10, 2021 100.0 November 3, 2021 200.0 May 4, 2022 200.0 February 9, 2023 100.0 Total as of September 30, 2023 $ 1,000.0

Net Income Per Share (Tables)

Net Income Per Share (Tables)	9 Months Ended
Net Income Per Share (Tables)	Sep. 30, 2023
Earnings Per Share [Abstract]
Schedule of Earnings Per Share, Basic and Diluted	The computations for basic and diluted net income per share are as follows: Three Months Ended Nine Months Ended 2023 2022 2023 2022 (in thousands, except per share data) (in thousands, except per share data) Numerator: Net income $ 46,515 $ 27,660 $ 111,002 $ 79,666 Denominator: Basic weighted average shares 36,766 38,317 36,891 38,680 Effect of potentially dilutive shares: Stock options 465 658 471 715 Restricted stock units 212 242 151 236 Employee stock purchase plan 5 3 3 3 Diluted weighted average shares 37,448 39,220 37,516 39,634 Net income per share: Basic $ 1.27 $ 0.72 $ 3.01 $ 2.06 Diluted $ 1.24 $ 0.71 $ 2.96 $ 2.01
Schedule of Potentially Dilutive Shares Excluded from Diluted Net Income Per Share Calculation	Potentially dilutive shares not included in the calculation of diluted net income per share because doing so would be anti-dilutive are as follows: Three Months Ended Nine Months Ended 2023 2022 2023 2022 (in thousands) (in thousands) Stock options 762 554 925 614 Restricted stock units 1 — 186 30 Employee stock purchase plan 14 13 9 7 Total anti-dilutive shares 777 567 1,120 651

Segment Information and Infor_2

Segment Information and Information about Geographic Area (Tables)	9 Months Ended
	Sep. 30, 2023
Segment Reporting [Abstract]
Schedule of Revenue from External Customers and Long-Lived Assets, by Geographical Areas	Revenue by geographic area, based on the customer's billing address, is as follows: Three Months Ended Nine Months Ended 2023 2022 2023 2022 (in thousands) (in thousands) United States $ 85,377 $ 74,574 $ 246,348 $ 213,435 Foreign 56,619 50,987 163,540 145,439 Total revenues $ 141,996 $ 125,561 $ 409,888 $ 358,874 Long-lived assets, which consist of Property and equipment, net and Operating leases - right of use asset, by geographic area, are as follows: September 30, December 31, (in thousands) United States $ 47,133 $ 58,775 India 11,276 16,057 Rest of world 2,962 6,348 Total Long-lived Assets $ 61,371 $ 81,180

Fair Value of Financial Instr_3

Fair Value of Financial Instruments - Assets and Liabilities (Details) - USD ($) $ in Thousands	Sep. 30, 2023	Dec. 31, 2022
Fair Value Disclosure, Asset and Liability, Not Measured at Fair Value [Line Items]
Foreign currency forward contracts	$ 888	$ 4,679
Fair Value, Recurring
Fair Value Disclosure, Asset and Liability, Not Measured at Fair Value [Line Items]
Money market funds	37,500	82,701
Commercial paper	72,507
U.S. Treasury and government agencies	138,959	156,662
Foreign government		1,006
Corporate bonds	35,375	63,910
Asset-backed securities	15,434	15,027
Foreign currency forward contracts	1,427	1,493
Total assets	301,202	320,799
Foreign currency forward contracts	888	4,679
Total liabilities	888	4,679
Level 1 \| Fair Value, Recurring
Fair Value Disclosure, Asset and Liability, Not Measured at Fair Value [Line Items]
Money market funds	37,500	82,701
Commercial paper	0
U.S. Treasury and government agencies	0	0
Foreign government		0
Corporate bonds	0	0
Asset-backed securities	0	0
Foreign currency forward contracts	0	0
Total assets	37,500	82,701
Foreign currency forward contracts	0	0
Total liabilities	0	0
Level 2 \| Fair Value, Recurring
Fair Value Disclosure, Asset and Liability, Not Measured at Fair Value [Line Items]
Money market funds	0	0
Commercial paper	72,507
U.S. Treasury and government agencies	138,959	156,662
Foreign government		1,006
Corporate bonds	35,375	63,910
Asset-backed securities	15,434	15,027
Foreign currency forward contracts	1,427	1,493
Total assets	263,702	238,098
Foreign currency forward contracts	888	4,679
Total liabilities	$ 888	$ 4,679

Fair Value of Financial Instr_4

Fair Value of Financial Instruments - Cash and Cash Equivalents (Details) - USD ($) $ in Thousands	Sep. 30, 2023	Dec. 31, 2022
Fair Value Disclosure, Asset and Liability, Not Measured at Fair Value [Line Items]
Amortized Cost	$ 300,699	$ 322,012
Unrealized Gains	14	7
Unrealized Losses	(938)	(2,713)
Fair Value	299,775	319,306
Cash, excluded	161,300	61,200
Cash equivalents
Fair Value Disclosure, Asset and Liability, Not Measured at Fair Value [Line Items]
Amortized Cost	47,440	112,488
Unrealized Gains	0	4
Unrealized Losses	(3)	0
Fair Value	47,437	112,492
Short-term marketable securities
Fair Value Disclosure, Asset and Liability, Not Measured at Fair Value [Line Items]
Amortized Cost	219,459	148,867
Unrealized Gains	2	3
Unrealized Losses	(771)	(1,262)
Fair Value	218,690	147,608
Long-term marketable securities
Fair Value Disclosure, Asset and Liability, Not Measured at Fair Value [Line Items]
Amortized Cost	33,800	60,657
Unrealized Gains	12	0
Unrealized Losses	(164)	(1,451)
Fair Value	33,648	59,206
Commercial paper \| Short-term marketable securities
Fair Value Disclosure, Asset and Liability, Not Measured at Fair Value [Line Items]
Amortized Cost	62,591
Unrealized Gains	0
Unrealized Losses	(21)
Fair Value	62,570
Corporate bonds \| Short-term marketable securities
Fair Value Disclosure, Asset and Liability, Not Measured at Fair Value [Line Items]
Amortized Cost	29,131	36,908
Unrealized Gains	2	3
Unrealized Losses	(356)	(337)
Fair Value	28,777	36,574
Corporate bonds \| Long-term marketable securities
Fair Value Disclosure, Asset and Liability, Not Measured at Fair Value [Line Items]
Amortized Cost	6,646	28,146
Unrealized Gains	0	0
Unrealized Losses	(48)	(810)
Fair Value	6,598	27,336
Asset-backed securities
Fair Value Disclosure, Asset and Liability, Not Measured at Fair Value [Line Items]
Amortized Cost	15,470
Fair Value	15,434
Asset-backed securities \| Short-term marketable securities
Fair Value Disclosure, Asset and Liability, Not Measured at Fair Value [Line Items]
Amortized Cost	0	726
Unrealized Gains	0	0
Unrealized Losses	0	(2)
Fair Value	0	724
Asset-backed securities \| Long-term marketable securities
Fair Value Disclosure, Asset and Liability, Not Measured at Fair Value [Line Items]
Amortized Cost	15,470	14,435
Unrealized Gains	12	0
Unrealized Losses	(48)	(132)
Fair Value	15,434	14,303
U.S. Treasury and government agencies \| Short-term marketable securities
Fair Value Disclosure, Asset and Liability, Not Measured at Fair Value [Line Items]
Amortized Cost	127,737	110,225
Unrealized Gains	0	0
Unrealized Losses	(394)	(921)
Fair Value	127,343	109,304
U.S. Treasury and government agencies \| Long-term marketable securities
Fair Value Disclosure, Asset and Liability, Not Measured at Fair Value [Line Items]
Amortized Cost	11,684	18,076
Unrealized Gains	0	0
Unrealized Losses	(68)	(509)
Fair Value	11,616	17,567
Foreign government \| Short-term marketable securities
Fair Value Disclosure, Asset and Liability, Not Measured at Fair Value [Line Items]
Amortized Cost		1,008
Unrealized Gains		0
Unrealized Losses		(2)
Fair Value		1,006
Money market funds \| Cash equivalents
Fair Value Disclosure, Asset and Liability, Not Measured at Fair Value [Line Items]
Amortized Cost	37,500	82,701
Unrealized Gains	0	0
Unrealized Losses	0	0
Fair Value	37,500	82,701
Commercial paper \| Cash equivalents
Fair Value Disclosure, Asset and Liability, Not Measured at Fair Value [Line Items]
Amortized Cost	9,940
Unrealized Gains	0
Unrealized Losses	(3)
Fair Value	$ 9,937
U.S. Treasury and government agencies \| Cash equivalents
Fair Value Disclosure, Asset and Liability, Not Measured at Fair Value [Line Items]
Amortized Cost		29,787
Unrealized Gains		4
Unrealized Losses		0
Fair Value		$ 29,791

Fair Value of Financial Instr_5

Fair Value of Financial Instruments - Summary of Securities in Unrealized Loss Positions (Details) - USD ($) $ in Thousands	Sep. 30, 2023	Dec. 31, 2022
Less than 12 months
Fair value	$ 193,288	$ 137,965
Gross unrealized losses	(197)	(1,690)
12 months or longer
Fair value	44,808	64,811
Gross unrealized losses	(741)	(1,023)
Total
Fair value	238,096	202,776
Gross unrealized losses	(938)	(2,713)
Commercial paper
Less than 12 months
Fair value	72,508
Gross unrealized losses	(24)
12 months or longer
Fair value	0
Gross unrealized losses	0
Total
Fair value	72,508
Gross unrealized losses	(24)
Foreign government
Less than 12 months
Fair value		998
Gross unrealized losses		(2)
12 months or longer
Fair value		0
Gross unrealized losses		0
Total
Fair value		998
Gross unrealized losses		(2)
Asset-backed securities
Less than 12 months
Fair value	6,554	13,365
Gross unrealized losses	(30)	(124)
12 months or longer
Fair value	2,135	1,652
Gross unrealized losses	(18)	(10)
Total
Fair value	8,689	15,017
Gross unrealized losses	(48)	(134)
Corporate bonds
Less than 12 months
Fair value	6,669	33,800
Gross unrealized losses	(16)	(389)
12 months or longer
Fair value	24,730	26,326
Gross unrealized losses	(388)	(758)
Total
Fair value	31,399	60,126
Gross unrealized losses	(404)	(1,147)
U.S. Treasury and government agencies
Less than 12 months
Fair value	107,557	89,802
Gross unrealized losses	(127)	(1,175)
12 months or longer
Fair value	17,943	36,833
Gross unrealized losses	(335)	(255)
Total
Fair value	125,500	126,635
Gross unrealized losses	$ (462)	$ (1,430)

Fair Value of Financial Instr_6

Fair Value of Financial Instruments - Summary of the Fair Value of Marketable Securities (Details) - USD ($) $ in Thousands	Sep. 30, 2023	Dec. 31, 2022
Amortized Cost
Due within One Year	$ 266,899
Due after One Year through Two Years	18,330
Asset-backed securities and total	300,699	$ 322,012
Fair Value
Due within One Year	266,127
Due after One Year through Two Years	18,214
Fair Value	299,775	$ 319,306
Asset-backed securities
Amortized Cost
Asset-backed securities and total	15,470
Fair Value
Fair Value	$ 15,434

Fair Value of Financial Instr_7

Fair Value of Financial Instruments - Narrative (Details) € in Millions, ₨ in Millions, £ in Millions, $ in Millions, $ in Millions	Sep. 30, 2023 EUR (€)	Sep. 30, 2023 GBP (£)	Sep. 30, 2023 INR (₨)	Sep. 30, 2023 CAD ($)	Dec. 31, 2022 EUR (€)	Dec. 31, 2022 GBP (£)	Dec. 31, 2022 INR (₨)	Dec. 31, 2022 CAD ($)	Dec. 31, 2018 USD ($)
Foreign Exchange Contract \| Designated as Hedging Instrument \| Cash Flow Hedging
Fair Value Disclosure, Asset and Liability, Not Measured at Fair Value [Line Items]
Derivative	€ 41.3	£ 13	₨ 3,969		€ 37.4	£ 10.4	₨ 3,411
Foreign Exchange Contract \| Not Designated as Hedging Instrument
Fair Value Disclosure, Asset and Liability, Not Measured at Fair Value [Line Items]
Derivative	€ 11.8	£ 3.3	₨ 770	$ 3.6	€ 40.2	£ 16.2	₨ 484	$ 3.8
Preferred Stock
Fair Value Disclosure, Asset and Liability, Not Measured at Fair Value [Line Items]
Investments									$ 2.5

Fair Value of Financial Instr_8

Fair Value of Financial Instruments - Summary of Derivative Financial Instruments (Details) - USD ($) $ in Thousands	Sep. 30, 2023	Dec. 31, 2022
Fair Value Disclosure, Asset and Liability, Not Measured at Fair Value [Line Items]
Foreign currency forward contracts, asset	$ 1,427	$ 1,493
Foreign currency forward contracts, liability	888	4,679
Designated as Hedging Instrument
Fair Value Disclosure, Asset and Liability, Not Measured at Fair Value [Line Items]
Foreign currency forward contracts, asset	899	1,041
Foreign currency forward contracts, liability	819	2,634
Not Designated as Hedging Instrument
Fair Value Disclosure, Asset and Liability, Not Measured at Fair Value [Line Items]
Foreign currency forward contracts, asset	528	452
Foreign currency forward contracts, liability	$ 69	$ 2,045

Fair Value of Financial Instr_9

Fair Value of Financial Instruments - Amounts Recognized In Statement of Operations (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2023	Sep. 30, 2022	Sep. 30, 2023	Sep. 30, 2022
Fair Value Disclosures [Abstract]
Net gains from non-designated forward contracts	$ 540	$ 3,608	$ 690	$ 8,573
Other foreign currency transactions losses	(1,248)	(4,518)	(1,979)	(11,856)
Total foreign exchange losses, net	$ (708)	$ (910)	$ (1,289)	$ (3,283)

Accumulated Other Comprehensi_3

Accumulated Other Comprehensive Income (Loss) - Components and Changes (Details) - USD ($) $ in Thousands	3 Months Ended						9 Months Ended
	Sep. 30, 2023	Jun. 30, 2023	Mar. 31, 2023	Sep. 30, 2022	Jun. 30, 2022	Mar. 31, 2022	Sep. 30, 2023	Sep. 30, 2022
AOCI Attributable to Parent, Net of Tax [Roll Forward]
Beginning balance	$ 277,018	$ 267,822	$ 289,129	$ 396,838	$ 426,635	$ 436,714	$ 289,129	$ 436,714
Other comprehensive income (loss), net of tax	849	(145)	376	668	45	(1,677)	1,080	(964)
Ending balance	322,917	277,018	267,822	355,186	396,838	426,635	322,917	355,186
Accumulated Other Comprehensive Income (Loss)
AOCI Attributable to Parent, Net of Tax [Roll Forward]
Beginning balance	(1,716)	(1,571)	(1,947)	(625)	(670)	1,007	(1,947)	1,007
Change in unrealized gains (losses) during the period	1,588	377	688	1,385	615	(1,422)
Amount reclassified into income during the period	(580)	(665)	(534)	(355)	(244)	(60)
Tax effect	(159)	143	222	(362)	(326)	(195)
Other comprehensive income (loss), net of tax	849	(145)	376	668	45	(1,677)
Ending balance	(867)	(1,716)	(1,571)	43	(625)	(670)	(867)	43
Available-for-sale debt securities
AOCI Attributable to Parent, Net of Tax [Roll Forward]
Beginning balance	(1,262)	(1,574)	(2,705)	(3,246)	(2,313)	(185)	(2,705)	(185)
Change in unrealized gains (losses) during the period	339	312	1,131	(492)	(933)	(2,070)
Amount reclassified into income during the period	0	0	0	0	0	0
Tax effect	0	0	0	0	0	(58)
Other comprehensive income (loss), net of tax	339	312	1,131	(492)	(933)	(2,128)
Ending balance	(923)	(1,262)	(1,574)	(3,738)	(3,246)	(2,313)	(923)	(3,738)
Cash flow hedges
AOCI Attributable to Parent, Net of Tax [Roll Forward]
Beginning balance	(454)	3	758	2,621	1,643	1,192	758	1,192
Change in unrealized gains (losses) during the period	1,249	65	(443)	1,877	1,548	648
Amount reclassified into income during the period	(580)	(665)	(534)	(355)	(244)	(60)
Tax effect	(159)	143	222	(362)	(326)	(137)
Other comprehensive income (loss), net of tax	510	(457)	(755)	1,160	978	451
Ending balance	$ 56	$ (454)	$ 3	$ 3,781	$ 2,621	$ 1,643	$ 56	$ 3,781

Accumulated Other Comprehensi_4

Accumulated Other Comprehensive Income (Loss) - Amounts Reclassified from AOCI (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2023	Sep. 30, 2022	Sep. 30, 2023	Sep. 30, 2022
Reclassification of AOCI - Cash flow hedges
Revenues	$ 141,996	$ 125,561	$ 409,888	$ 358,874
Cost of revenues	(26,739)	(25,992)	(80,355)	(75,040)
Research and development	(27,782)	(25,478)	(83,001)	(73,376)
Sales and marketing	(27,881)	(25,047)	(79,750)	(68,919)
General and administrative	(15,999)	(15,698)	(45,182)	(41,665)
Other income (expense), net	(708)	(1,076)	(1,883)	(3,496)
Reclassification out of Accumulated Other Comprehensive Income \| Cash flow hedges
Reclassification of AOCI - Cash flow hedges
Revenues	721	660	2,918	883
Cost of revenues	(32)	(67)	(262)	(50)
Research and development	(89)	(195)	(724)	(143)
Sales and marketing	(6)	(12)	(45)	(9)
General and administrative	(14)	(31)	(108)	(22)
Total	580	355	1,779	659
Reclassification out of Accumulated Other Comprehensive Income \| Available-for-sale debt securities
Reclassification of AOCI - Cash flow hedges
Other income (expense), net	$ 0	$ 0	$ 0	$ 0

Property and Equipment, Net - P

Property and Equipment, Net - Property and Equipment, Net (Details) - USD ($) $ in Thousands	Sep. 30, 2023	Dec. 31, 2022
Property, Plant and Equipment [Line Items]
Total property and equipment	$ 249,742	$ 242,869
Less: accumulated depreciation and amortization	(213,582)	(195,441)
Property and equipment, net	36,160	47,428
Computer equipment
Property, Plant and Equipment [Line Items]
Computer equipment	178,351	173,832
Computer software
Property, Plant and Equipment [Line Items]
Total property and equipment	26,068	25,808
Leasehold improvements
Property, Plant and Equipment [Line Items]
Total property and equipment	20,923	21,009
Scanner appliances
Property, Plant and Equipment [Line Items]
Total property and equipment	17,784	15,696
Furniture, fixtures and equipment
Property, Plant and Equipment [Line Items]
Total property and equipment	$ 6,616	$ 6,524

Property and Equipment, Net - N

Property and Equipment, Net - Narrative (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2023	Sep. 30, 2022	Sep. 30, 2023	Sep. 30, 2022	Dec. 31, 2022
Property, Plant and Equipment [Line Items]
Property and equipment, net	$ 36,160		$ 36,160		$ 47,428
Depreciation and amortization	5,800	$ 6,700	18,400	$ 20,700
Scanner Appliances and Other Computer Equipment
Property, Plant and Equipment [Line Items]
Property and equipment, net	10,100		10,100		6,700
Scanner Appliances and Other Computer Equipment Not Placed In Service
Property, Plant and Equipment [Line Items]
Property and equipment, net	$ 7,200		$ 7,200		$ 4,000

Revenue from Contracts with C_3

Revenue from Contracts with Customers - Narrative (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2023	Sep. 30, 2022	Sep. 30, 2023	Sep. 30, 2022	Dec. 31, 2022	Dec. 31, 2021
Revenue Recognition [Abstract]
Revenue from contract with customer, revenue recognized	$ 57,200	$ 51,400	$ 257,400	$ 227,300
Deferred revenue					$ 317,200	$ 290,600
Amortization expense related to deferred costs	1,500	1,300	4,400	3,600
Impairment loss related to deferred contract costs	0	$ 0	0	$ 0
Carrying value of accounts receivable						109,000
Deferred revenues, current	307,179		307,179		293,728	257,900
Deferred revenues, noncurrent	$ 32,287		$ 32,287		$ 23,490	$ 32,700

Revenue from Contracts with C_4

Revenue from Contracts with Customers - Expected Revenue from All Remaining Performance Obligations (Details) $ in Thousands	Sep. 30, 2023 USD ($)
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Remaining performance obligation	$ 330,690
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2023-10-01
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Remaining performance obligation	$ 54,190
Remaining performance obligation, period	3 months
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2024-01-01
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Remaining performance obligation	$ 162,095
Remaining performance obligation, period	1 year
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2025-01-01
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Remaining performance obligation	$ 88,045
Remaining performance obligation, period	1 year
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2026-01-01
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Remaining performance obligation	$ 24,142
Remaining performance obligation, period	1 year
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2027-01-01
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Remaining performance obligation	$ 1,801
Remaining performance obligation, period	1 year
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2028-01-01
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Remaining performance obligation	$ 417
Remaining performance obligation, period

Revenue from Contracts with C_5

Revenue from Contracts with Customers - Revenue by Sales Channel (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2023	Sep. 30, 2022	Sep. 30, 2023	Sep. 30, 2022
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Revenues	$ 141,996	$ 125,561	$ 409,888	$ 358,874
Direct
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Revenues	80,499	72,958	234,410	209,493
Partner
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Revenues	$ 61,497	$ 52,603	$ 175,478	$ 149,381

Revenue from Contracts with C_6

Revenue from Contracts with Customers - Capitalized Cost to Obtain Contracts, Current and Noncurrent (Details) - USD ($) $ in Thousands	Sep. 30, 2023	Dec. 31, 2022
Revenue Recognition [Abstract]
Current	$ 5,450	$ 5,018
Noncurrent	$ 10,726	$ 10,090

Intangible Assets, Net- Carryin

Intangible Assets, Net- Carrying Value of Intangible Assets (Details) - USD ($) $ in Thousands	Sep. 30, 2023	Dec. 31, 2022
Finite-Lived Intangible Assets [Line Items]
Cost	$ 41,887	$ 41,887
Accumulated Amortization	(31,441)	(29,126)
Total intangibles	10,446	12,761
Intangible assets, net	10,486	12,801
Intangible assets not subject to amortization
Finite-Lived Intangible Assets [Line Items]
Intangible assets not subject to amortization	$ 40	$ 40
Developed technology
Finite-Lived Intangible Assets [Line Items]
Weighted Average Life (Years)	4 years 7 months 6 days	4 years 7 months 6 days
Weighted Average Remaining Life (Years)	1 year 2 months 12 days	1 year 4 months 24 days
Cost	$ 40,141	$ 40,141
Accumulated Amortization	(29,965)	(27,860)
Total intangibles	$ 10,176	$ 12,281
Patent licenses
Finite-Lived Intangible Assets [Line Items]
Weighted Average Life (Years)	14 years	14 years
Weighted Average Remaining Life (Years)	10 months 24 days	1 year 8 months 12 days
Cost	$ 1,387	$ 1,387
Accumulated Amortization	(1,297)	(1,221)
Total intangibles	$ 90	$ 166
Assembled workforce
Finite-Lived Intangible Assets [Line Items]
Weighted Average Life (Years)	2 years	2 years
Weighted Average Remaining Life (Years)	1 year	1 year 8 months 12 days
Cost	$ 359	$ 359
Accumulated Amortization	(179)	(45)
Total intangibles	$ 180	$ 314

Intangible Assets, Net - Narrat

Intangible Assets, Net - Narrative (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2023	Sep. 30, 2022	Sep. 30, 2023	Sep. 30, 2022
Goodwill and Intangible Assets Disclosure [Abstract]
Intangible asset amortization expense	$ 0.8	$ 1.3	$ 2.3	$ 4.5

Intangible Assets, Net - Expect

Intangible Assets, Net - Expected Amortization Expense in Future Periods (Details) - USD ($) $ in Thousands	Sep. 30, 2023	Dec. 31, 2022
Goodwill and Intangible Assets Disclosure [Abstract]
2023 (remaining three months)	$ 771
2024	2,904
2025	2,556
2026	2,477
2027	1,738
Total intangibles	$ 10,446	$ 12,761

Leases - Narrative (Details)

Leases - Narrative (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
Leases - Narrative (Details) - USD ($) $ in Millions	Sep. 30, 2023	Sep. 30, 2022	Sep. 30, 2023	Sep. 30, 2022
Leases [Abstract]
Lease expense	$ 3.9	$ 3.7	$ 12.1	$ 11.1

Leases - Supplemental Cash Flow

Leases - Supplemental Cash Flow Information (Details) - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2023	Sep. 30, 2022
Leases [Abstract]
Cash payments included in the measurement of lease liabilities	$ 11,350	$ 12,258
Lease liabilities arising from obtaining right-of-use assets	$ 121	$ 3,401

Leases- Weighted Average Remain

Leases- Weighted Average Remaining Lease Term and Weighted Average Discount Rate (Details)	Sep. 30, 2023	Dec. 31, 2022
Leases [Abstract]
Weighted average remaining lease term (years)	3 years 2 months 12 days	3 years 8 months 12 days
Weighted average discount rate	5.20%	5.20%

Stockholders' Equity and Stoc_3

Stockholders' Equity and Stock-based Compensation - Narrative (Details) - USD ($) $ in Thousands

3 Months Ended

9 Months Ended

12 Months Ended

Jul. 27, 2023

Feb. 06, 2023

Oct. 27, 2022

Jun. 08, 2022

Oct. 28, 2021

Jun. 09, 2021

Apr. 27, 2021

Sep. 30, 2023

Sep. 30, 2022

Sep. 30, 2023

Sep. 30, 2022

Dec. 31, 2022

Dec. 31, 2021

Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]

Shares available for grant (in shares)

2,033,000

Stock-based compensation

$ 18,522

$ 13,291

$ 50,560

$ 37,856

Shares repurchased and retired (in shares)

1,203,000

1,613,000

Shares repurchased and retired

$ 147,700

$ 212,800

Authorized repurchase amount remaining

106,800

Stock options

Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]

Stock-based compensation expenses, unrecognized

24,100

$ 24,100

Stock-based compensation, recognition period (in years)

2 years 8 months 12 days

Restricted stock units

Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]

Stock-based compensation expenses, unrecognized

79,100

$ 79,100

Stock-based compensation, recognition period (in years)

2 years 7 months 6 days

Shares that will vest upon trigger (in percentage)

100%

Granted (in shares)

285,000

Restricted stock units | Performance Shares, Tranche Three

Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]

Vesting range (percentage)

100%

Performance-based Restricted Stock Units

Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]

Stock-based compensation expenses, unrecognized

2,900

$ 2,900

Stock-based compensation, recognition period (in years)

7 months 6 days

Stock-based compensation

2,700

$ 1,000

$ 5,200

$ 2,900

Performance-based Restricted Stock Units | President and Chief Executive Officer

Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]

Shares authorized for issuance (in shares)

10,000

PSU vesting period (in years)

3 years

Performance-based Restricted Stock Units | Executive Officer

Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]

Shares authorized for issuance (in shares)

73,000

PSU vesting period (in years)

3 years

Shares that will vest upon trigger (in percentage)

100%

Granted (in shares)

9,000

6,000

86,000

10,000

Termination period trigger (in months)

12 months

Performance-based Restricted Stock Units | Executive Officer 1

Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]

Granted (in shares)

175,000

Performance-based Restricted Stock Units | Executive Officer 2

Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]

Granted (in shares)

24,000

Performance-based Restricted Stock Units | Executive Officer 3

Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]

Granted (in shares)

22,000

Performance-based Restricted Stock Units | Executive Officer 4

Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]

Granted (in shares)

138,000

ESPP Shares

Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]

Stock-based compensation expenses, unrecognized

$ 900

Stock-based compensation, recognition period (in years)

4 months 24 days

Minimum | Restricted stock units | Performance Shares, Tranche Three

Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]

Vesting range (percentage)

Minimum | Performance-based Restricted Stock Units | President and Chief Executive Officer

Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]

Vesting range (percentage)

Minimum | Performance-based Restricted Stock Units | Executive Officer

Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]

Vesting range (percentage)

Maximum | Restricted stock units | Performance Shares, Tranche Three

Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]

Vesting range (percentage)

200%

Maximum | Performance-based Restricted Stock Units | President and Chief Executive Officer

Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]

Vesting range (percentage)

200%

Maximum | Performance-based Restricted Stock Units | Executive Officer

Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]

Vesting range (percentage)

200%

The 2012 Equity Incentive Plan

Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]

Share-based compensation, additional shares available (in shares)

3,072,000

The 2021 Employee Stock Purchase Plan

Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]

Shares available for grant (in shares)

494,000

Shares authorized for issuance (in shares)

600,000

Offering period (in months)

6 months

Purchase price of stock, percentage

85%

Issuance of common stock through employee stock purchase plan (in shares)

60,600

The 2021 Employee Stock Purchase Plan | Minimum

Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]

ESPP eligible percent to contribute

The 2021 Employee Stock Purchase Plan | Maximum

Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]

ESPP eligible percent to contribute

15%

Stockholders' Equity and Stoc_4

Stockholders' Equity and Stock-based Compensation - Summary of Stock-based Compensation Expense (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2023	Sep. 30, 2022	Sep. 30, 2023	Sep. 30, 2022
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Stock-based compensation	$ 18,522	$ 13,291	$ 50,560	$ 37,856
Cost of revenues
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Stock-based compensation	1,946	1,384	5,255	3,739
Research and development
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Stock-based compensation	5,671	3,236	15,734	10,064
Sales and marketing
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Stock-based compensation	3,229	2,495	8,580	6,829
General and administrative
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Stock-based compensation	$ 7,676	$ 6,176	$ 20,991	$ 17,224

Stockholders' Equity and Stoc_5

Stockholders' Equity and Stock-based Compensation - Share-based Compensation and Stock Options Activity (Details) $ / shares in Units, shares in Thousands, $ in Thousands	9 Months Ended	12 Months Ended
	Sep. 30, 2023 USD ($) $ / shares shares	Dec. 31, 2022 USD ($) $ / shares shares
Outstanding Options
Beginning balance (in shares) \| shares	1,807
Granted (in shares) \| shares	289
Exercised (in shares) \| shares	(400)
Canceled (in shares) \| shares	(99)
Ending balance (in shares) \| shares	1,597	1,807
Weighted Average Exercise Price
Beginning balance (in USD per share) \| $ / shares	$ 87.59
Granted (in USD per share) \| $ / shares	124.50
Exercised (in USD per share) \| $ / shares	70.89
Canceled (in USD per share) \| $ / shares	124.73
Ending balance (in USD per share) \| $ / shares	$ 96.15	$ 87.59
Stock Options Additional Disclosures
Vested and expected to vest (in shares) \| shares	1,400
Vested and expected to vest (in USD per share) \| $ / shares	$ 91.74
Weighted average remaining contractual life, balance (in years)	6 years 7 months 6 days	6 years 6 months
Weighted average remaining contractual life, vested and expected to vest (in years)	6 years 3 months 18 days
Aggregate Intrinsic Value \| $	$ 90,043	$ 58,024
Vested and expected to vest as of September 30, 2023 \| $	$ 85,134
Outstanding options, exercisable (in shares) \| shares	831
Weighted average exercise price, exercisable (in USD per share) \| $ / shares	$ 68.48
Weighted average remaining contractual life, exercisable (in years)	4 years 7 months 6 days
Exercisable as of September 30, 2023 \| $	$ 69,829

Stockholders' Equity and Stoc_6

Stockholders' Equity and Stock-based Compensation - Summary of Restricted Stock Unit Activity (Details) - Restricted stock units shares in Thousands	9 Months Ended
	Sep. 30, 2023 $ / shares shares
Outstanding RSUs
Beginning balance (in shares) \| shares	1,183
Granted (in shares) \| shares	285
Vested (in shares) \| shares	(296)
Forfeited (in shares) \| shares	(157)
Ending balance (in shares) \| shares	1,015
Outstanding and expected to vest (in shares) \| shares	796
Weighted Average Grant Date Fair Value Per Share
Beginning balance (in USD per share) \| $ / shares	$ 124.42
Granted (in USD per share) \| $ / shares	131.44
Vested (in USD per share) \| $ / shares	114.97
Forfeited (in USD per share) \| $ / shares	127.63
Ending balance (in USD per share) \| $ / shares	128.50
Outstanding and expected to vest (in USD per share) \| $ / shares	$ 126.67

Stockholders' Equity and Stoc_7

Stockholders' Equity and Stock-based Compensation - Schedule of Repurchase Agreements (Details) - USD ($) $ in Millions	Sep. 30, 2023	Feb. 09, 2023	May 04, 2022	Nov. 03, 2021	Feb. 10, 2021	May 07, 2020	Oct. 30, 2019	Oct. 30, 2018	Feb. 12, 2018
Authorized Dollar Value
Stock repurchase program, authorized amount	$ 1,000								$ 100
Additional authorized amount		$ 100	$ 200	$ 200	$ 100	$ 100	$ 100	$ 100

Net Income Per Share - Basic an

Net Income Per Share - Basic and Diluted Net Income Per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended						9 Months Ended
	Sep. 30, 2023	Jun. 30, 2023	Mar. 31, 2023	Sep. 30, 2022	Jun. 30, 2022	Mar. 31, 2022	Sep. 30, 2023	Sep. 30, 2022
Numerator:
Net income	$ 46,515	$ 35,382	$ 29,105	$ 27,660	$ 26,596	$ 25,410	$ 111,002	$ 79,666
Denominator:
Basic weighted average shares (in shares)	36,766			38,317			36,891	38,680
Stock options (in shares)	465			658			471	715
Retired stock units (in shares)	212			242			151	236
Employee stock purchase plan (in shares)	5			3			3	3
Diluted weighted average shares (in shares)	37,448			39,220			37,516	39,634
Net income per share:
Basic (in USD per share)	$ 1.27			$ 0.72			$ 3.01	$ 2.06
Diluted (in USD per share)	$ 1.24			$ 0.71			$ 2.96	$ 2.01

Net Income Per Share - Anti-dil

Net Income Per Share - Anti-dilutive Net Income Per Share (Details) - shares shares in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2023	Sep. 30, 2022	Sep. 30, 2023	Sep. 30, 2022
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Total anti-dilutive shares	777	567	1,120	651
Stock options
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Total anti-dilutive shares	762	554	925	614
Restricted stock units
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Total anti-dilutive shares	1	0	186	30
Employee stock purchase plan
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Total anti-dilutive shares	14	13	9	7

Income Taxes - Narrative (Detai

Income Taxes - Narrative (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
Income Taxes - Narrative (Details) - USD ($) $ in Thousands	Sep. 30, 2023	Sep. 30, 2022	Sep. 30, 2023	Sep. 30, 2022	Dec. 31, 2022
Income Tax Disclosure [Abstract]
Income tax provision	$ 1,508	$ 6,178	$ 20,057	$ 19,637
Income tax rate, percentage	3.10%	18.30%	15.30%	19.80%
Unrecognized tax benefits	$ 11,600		$ 11,600		$ 10,500
Unrecognized tax benefits effecting the tax rate	$ 6,000		$ 6,000		$ 5,300

Segment Information and Infor_3

Segment Information and Information about Geographic Area - Narrative (Details)	9 Months Ended
	Sep. 30, 2023 segment
Segment Reporting [Abstract]
Number of operating segments	1
Number of reportable segments	1

Segment Information and Infor_4

Segment Information and Information about Geographic Area - Revenue and Property and Equipment, Net by Geographic Area (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2023	Sep. 30, 2022	Sep. 30, 2023	Sep. 30, 2022	Dec. 31, 2022
Revenues from External Customers and Long-Lived Assets [Line Items]
Revenues	$ 141,996	$ 125,561	$ 409,888	$ 358,874
Total Long-lived Assets	61,371		61,371		$ 81,180
United States
Revenues from External Customers and Long-Lived Assets [Line Items]
Revenues	85,377	74,574	246,348	213,435
Total Long-lived Assets	47,133		47,133		58,775
Foreign
Revenues from External Customers and Long-Lived Assets [Line Items]
Revenues	56,619	$ 50,987	163,540	$ 145,439
India
Revenues from External Customers and Long-Lived Assets [Line Items]
Total Long-lived Assets	11,276		11,276		16,057
Rest of world
Revenues from External Customers and Long-Lived Assets [Line Items]
Total Long-lived Assets	$ 2,962		$ 2,962		$ 6,348