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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
______________________
FORM 10-Q
______________________
(Mark One) | | | | | |
☒ | QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
For the quarterly period ended September 30, 2022
OR | | | | | |
☐ | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
For the transition period from ________ to ________
Commission File Number: 001-37622
______________________
Block, Inc.
(Exact name of registrant as specified in its charter)
______________________ | | | | | | | | |
Delaware | | 80-0429876 |
(State or other jurisdiction of incorporation or organization) | | (IRS Employer Identification No.) |
Address Not Applicable1
(Address of principal executive offices, including zip code)
(415) 375-3176
(Registrant’s telephone number, including area code)
Securities registered pursuant to Section 12(b) of the Act: | | | | | | | | |
Title of Each Class | Trading Symbol(s) | Name of each exchange on which registered |
Class A common stock, $0.0000001 par value per share | SQ | New York Stock Exchange |
Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ☒ No ☐
Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes ☒ No ☐
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.
Large accelerated filer ☒ Accelerated filer ☐ Non-accelerated filer ☐ Smaller reporting company ☐ Emerging growth company ☐
1 We do not designate a headquarters location as we have adopted a distributed work model.
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☐ No ☒
As of October 31, 2022, the number of shares of the registrant’s Class A common stock outstanding was 537,419,565 and the number of shares of the registrant’s Class B common stock outstanding was 60,651,533.
TABLE OF CONTENTS
CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS
This Quarterly Report on Form 10-Q contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, that involve substantial risks and uncertainties. Forward-looking statements generally relate to future events or our future financial or operating performance. In some cases, you can identify forward-looking statements because they contain words such as “may,” “will,” “appears,” “should,” “expects,” “plans,” “anticipates,” “could,” “intends,” “target,” “projects,” “contemplates,” “believes,” “estimates,” “predicts,” “potential,” or “continue,” or the negative of these words or other similar terms or expressions that concern our expectations, strategy, plans, or intentions. Forward-looking statements contained in this Quarterly Report on Form 10-Q include, but are not limited to, statements about our future financial performance, the impact of the COVID-19 pandemic on our business, customers, and employees, our expectations regarding transaction and loan losses, the adequacy of our allowance for loan losses on loans held for investment, or increased delinquencies, and the impact of inaccurate estimates or inadequate reserves, our potential exposure as a participant in the Paycheck Protection Program ("PPP"), our anticipated growth and growth strategies and our ability to effectively manage that growth, our ability to invest in and develop our products and services to operate with changing technology, the expected benefits of our products to our customers and the impact of our products on our business, and our expectations regarding Gross Payment Volume ("GPV", as defined below in Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations), and revenue, including our expectations regarding the Cash App and Square ecosystems, our expectations regarding product launches, the expected impact of our recent acquisitions, including the integration of Afterpay Limited ("Afterpay") with our business and its impacts on the Square and Cash App ecosystems, our plans with respect to patents and other intellectual property, our expectations regarding litigation and regulatory matters and the adequacy of reserves for such matters, our expectations regarding share-based compensation, our expectations regarding the impacts of accounting guidance and the timing of our compliance therewith, our expectations regarding restricted cash, and the sufficiency of our cash and cash equivalents and cash generated from operations to meet our working capital and capital expenditure requirements.
We have based these forward-looking statements on our current expectations and projections about future events and trends that we believe may affect our business, financial condition, results of operations, prospects, business strategy, and financial needs. The outcome of the events described in these forward-looking statements is subject to known and unknown risks, uncertainties, and other factors described in the section titled “Risk Factors” and elsewhere in this Quarterly Report on Form 10-Q. We operate in a very competitive and rapidly changing environment. New risks and uncertainties emerge from time to time and it is not possible for us to predict all risks and uncertainties that could have an impact on the forward-looking statements contained in this Quarterly Report on Form 10-Q. We cannot assure you that the results, events, and circumstances reflected in the forward-looking statements will be achieved or occur, and actual results, events, or circumstances could differ materially from those described in the forward-looking statements.
All forward-looking statements are based on information and estimates available to us at the time of filing this Quarterly Report on Form 10-Q and are not guarantees of future performance. We undertake no obligation to update any forward-looking statements made in this Quarterly Report on Form 10-Q to reflect events or circumstances after the date of this Quarterly Report on Form 10-Q or to reflect new information or the occurrence of unanticipated events, except as required by law.
Part I—Financial Information
Item 1. Financial Statements
BLOCK, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands, except share and per share data) | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| September 30, 2022 | | December 31, 2021 | | | | | | | | | | | | | | | | | | | | | | | |
Assets | (Unaudited) | | | | | | | | | | | | | | | | | | | | | | | | | |
Current assets: | | | | | | | | | | | | | | | | | | | | | | | | | | |
Cash and cash equivalents | $ | 4,331,787 | | | $ | 4,443,669 | | | | | | | | | | | | | | | | | | | | | | | | |
Investments in short-term debt securities | 1,052,973 | | | 869,283 | | | | | | | | | | | | | | | | | | | | | | | | |
Settlements receivable | 1,761,694 | | | 1,171,612 | | | | | | | | | | | | | | | | | | | | | | | | |
Customer funds | 2,983,658 | | | 2,830,995 | | | | | | | | | | | | | | | | | | | | | | | | |
Consumer receivables, net | 1,252,127 | | | — | | | | | | | | | | | | | | | | | | | | | | | | |
Loans held for sale | 462,980 | | | 517,940 | | | | | | | | | | | | | | | | | | | | | | | | |
Safeguarding asset related to bitcoin held for other parties | 527,669 | | | 1,100,596 | | | | | | | | | | | | | | | | | | | | | | | | |
Other current assets | 1,175,873 | | | 687,429 | | | | | | | | | | | | | | | | | | | | | | | | |
Total current assets | 13,548,761 | | | 11,621,524 | | | | | | | | | | | | | | | | | | | | | | | | |
Property and equipment, net | 316,378 | | | 282,140 | | | | | | | | | | | | | | | | | | | | | | | | |
Goodwill | 11,557,984 | | | 519,276 | | | | | | | | | | | | | | | | | | | | | | | | |
Acquired intangible assets, net | 2,030,876 | | | 257,049 | | | | | | | | | | | | | | | | | | | | | | | | |
Investments in long-term debt securities | 802,880 | | | 1,526,430 | | | | | | | | | | | | | | | | | | | | | | | | |
Operating lease right-of-use assets | 425,519 | | | 449,406 | | | | | | | | | | | | | | | | | | | | | | | | |
Other non-current assets | 438,534 | | | 370,535 | | | | | | | | | | | | | | | | | | | | | | | | |
Total assets | $ | 29,120,932 | | | $ | 15,026,360 | | | | | | | | | | | | | | | | | | | | | | | | |
Liabilities and Stockholders’ Equity | | | | | | | | | | | | | | | | | | | | | | | | | | |
Current liabilities: | | | | | | | | | | | | | | | | | | | | | | | | | | |
Customers payable | $ | 4,891,015 | | | $ | 3,979,624 | | | | | | | | | | | | | | | | | | | | | | | | |
Settlements payable | 329,796 | | | 254,611 | | | | | | | | | | | | | | | | | | | | | | | | |
Accrued expenses and other current liabilities | 968,495 | | | 638,854 | | | | | | | | | | | | | | | | | | | | | | | | |
Current portion of long-term debt (Note 15) | 460,170 | | | 455 | | | | | | | | | | | | | | | | | | | | | | | | |
Safeguarding obligation liability related to bitcoin held for other parties | 527,669 | | | 1,100,596 | | | | | | | | | | | | | | | | | | | | | | | | |
Operating lease liabilities, current | 70,304 | | | 64,027 | | | | | | | | | | | | | | | | | | | | | | | | |
PPP Liquidity Facility advances | 31,116 | | | 497,533 | | | | | | | | | | | | | | | | | | | | | | | | |
Total current liabilities | 7,278,565 | | | 6,535,700 | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | |
Deferred tax liabilities | 159,498 | | | 15,236 | | | | | | | | | | | | | | | | | | | | | | | | |
Warehouse funding facilities | 479,422 | | | — | | | | | | | | | | | | | | | | | | | | | | | | |
Long-term debt (Note 15) | 4,107,245 | | | 4,559,208 | | | | | | | | | | | | | | | | | | | | | | | | |
Operating lease liabilities, non-current | 369,798 | | | 395,017 | | | | | | | | | | | | | | | | | | | | | | | | |
Other non-current liabilities | 196,466 | | | 207,610 | | | | | | | | | | | | | | | | | | | | | | | | |
Total liabilities | 12,590,994 | | | 11,712,771 | | | | | | | | | | | | | | | | | | | | | | | | |
Commitments and contingencies (Note 20) | | | | | | | | | | | | | | | | | | | | | | | | | | |
Stockholders’ equity: | | | | | | | | | | | | | | | | | | | | | | | | | | |
Preferred stock, $0.0000001 par value: 100,000,000 shares authorized at September 30, 2022 and December 31, 2021. None issued and outstanding at September 30, 2022 and December 31, 2021. | — | | | — | | | | | | | | | | | | | | | | | | | | | | | | |
Class A common stock, $0.0000001 par value: 1,000,000,000 shares authorized at September 30, 2022 and December 31, 2021; 535,879,345 and 403,237,209 issued and outstanding at September 30, 2022 and December 31, 2021, respectively. | — | | | — | | | | | | | | | | | | | | | | | | | | | | | | |
Class B common stock, $0.0000001 par value: 500,000,000 shares authorized at September 30, 2022 and December 31, 2021; 60,657,578 and 61,706,578 issued and outstanding at September 30, 2022 and December 31, 2021, respectively. | — | | | — | | | | | | | | | | | | | | | | | | | | | | | | |
Additional paid-in capital | 17,999,192 | | | 3,317,255 | | | | | | | | | | | | | | | | | | | | | | | | |
Accumulated other comprehensive loss | (1,046,639) | | | (16,435) | | | | | | | | | | | | | | | | | | | | | | | | |
Accumulated deficit | (454,889) | | | (27,965) | | | | | | | | | | | | | | | | | | | | | | | | |
Total stockholders’ equity attributable to common stockholders | 16,497,664 | | | 3,272,855 | | | | | | | | | | | | | | | | | | | | | | | | |
Noncontrolling interests | 32,274 | | | 40,734 | | | | | | | | | | | | | | | | | | | | | | | | |
Total stockholders’ equity | 16,529,938 | | | 3,313,589 | | | | | | | | | | | | | | | | | | | | | | | | |
Total liabilities and stockholders’ equity | $ | 29,120,932 | | | $ | 15,026,360 | | | | | | | | | | | | | | | | | | | | | | | | |
The accompanying notes are an integral part of these unaudited condensed consolidated financial statements.
BLOCK, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)
(In thousands, except per share data)
| | | | | | | | | | | | | | | | | | | | | | | |
| Three Months Ended September 30, | | Nine Months Ended September 30, |
| 2022 | | 2021 | | 2022 | | 2021 |
Revenue: | | | | | | | |
Transaction-based revenue | $ | 1,517,890 | | | $ | 1,297,040 | | | $ | 4,226,566 | | | $ | 3,484,245 | |
Subscription and services-based revenue | 1,191,511 | | | 694,770 | | | 3,245,924 | | | 1,937,629 | |
Hardware revenue | 43,388 | | | 37,255 | | | 128,765 | | | 109,769 | |
Bitcoin revenue | 1,762,752 | | | 1,815,662 | | | 5,279,430 | | | 8,051,026 | |
Total net revenue | 4,515,541 | | | 3,844,727 | | | 12,880,685 | | | 13,582,669 | |
Cost of revenue: | | | | | | | |
Transaction-based costs | 901,990 | | | 751,794 | | | 2,493,988 | | | 1,958,423 | |
Subscription and services-based costs | 225,903 | | | 128,177 | | | 622,031 | | | 337,559 | |
Hardware costs | 76,002 | | | 51,150 | | | 223,160 | | | 153,035 | |
Bitcoin costs | 1,726,051 | | | 1,774,040 | | | 5,157,935 | | | 7,879,816 | |
Amortization of acquired technology assets | 18,506 | | | 6,351 | | | 51,874 | | | 16,056 | |
Total cost of revenue | 2,948,452 | | | 2,711,512 | | | 8,548,988 | | | 10,344,889 | |
Gross profit | 1,567,089 | | | 1,133,215 | | | 4,331,697 | | | 3,237,780 | |
Operating expenses: | | | | | | | |
Product development | 548,037 | | | 360,729 | | | 1,531,088 | | | 992,498 | |
Sales and marketing | 485,838 | | | 409,073 | | | 1,518,227 | | | 1,132,411 | |
General and administrative | 395,437 | | | 267,348 | | | 1,235,306 | | | 683,969 | |
Transaction, loan, and consumer receivable losses | 147,586 | | | 62,306 | | | 395,433 | | | 130,874 | |
Bitcoin impairment losses | 1,619 | | | 6,000 | | | 37,580 | | | 71,126 | |
Amortization of customer and other acquired intangible assets | 37,361 | | | 4,763 | | | 103,414 | | | 11,176 | |
Total operating expenses | 1,615,878 | | | 1,110,219 | | | 4,821,048 | | | 3,022,054 | |
Operating income (loss) | (48,789) | | | 22,996 | | | (489,351) | | | 215,726 | |
Interest expense, net | 6,042 | | | 13,409 | | | 34,756 | | | 20,126 | |
Other expense (income), net | (18,798) | | | 12,011 | | | (71,036) | | | (36,249) | |
Income (loss) before income tax | (36,033) | | | (2,424) | | | (453,071) | | | 231,849 | |
Provision (benefit) for income taxes | (17,289) | | | 452 | | | (17,687) | | | (7,961) | |
Net income (loss) | (18,744) | | | (2,876) | | | (435,384) | | | 239,810 | |
Less: Net loss attributable to noncontrolling interests | (4,033) | | | (2,960) | | | (8,460) | | | (3,303) | |
Net income (loss) attributable to common stockholders | $ | (14,711) | | | $ | 84 | | | $ | (426,924) | | | $ | 243,113 | |
| | | | | | | |
Net income (loss) per share attributable to common stockholders: | | | | | | | |
Basic | $ | (0.02) | | | $ | 0.00 | | | $ | (0.75) | | | $ | 0.53 | |
Diluted | $ | (0.02) | | | $ | 0.00 | | | $ | (0.75) | | | $ | 0.48 | |
Weighted-average shares used to compute net income (loss) per share attributable to common stockholders: | | | | | | | |
Basic | 592,672 | | | 460,654 | | | 572,234 | | | 457,039 | |
Diluted | 592,672 | | | 504,120 | | | 572,234 | | | 520,204 | |
The accompanying notes are an integral part of these unaudited condensed consolidated financial statements.
BLOCK, INC.
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS)
(Unaudited)
(In thousands)
| | | | | | | | | | | | | | | | | | | | | | | |
| Three Months Ended September 30, | | Nine Months Ended September 30, |
| 2022 | | 2021 | | 2022 | | 2021 |
Net income (loss) | $ | (18,744) | | | $ | (2,876) | | | $ | (435,384) | | | $ | 239,810 | |
Net foreign currency translation adjustments | (609,045) | | | (14,145) | | | (985,328) | | | (25,656) | |
| | | | | | | |
Net unrealized loss on marketable debt securities | (7,678) | | | (1,104) | | | (44,876) | | | (5,083) | |
Total comprehensive income (loss) | $ | (635,467) | | | $ | (18,125) | | | $ | (1,465,588) | | | $ | 209,071 | |
| | | | | | | |
| | | | | | | |
The accompanying notes are an integral part of these unaudited condensed consolidated financial statements.
BLOCK, INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)
(In thousands) | | | | | | | | | | | |
| Nine Months Ended September 30, |
| 2022 | | 2021 |
Cash flows from operating activities: | | | |
Net income (loss) | $ | (435,384) | | | $ | 239,810 | |
Adjustments to reconcile net income (loss) to net cash provided by operating activities: | | | |
Depreciation and amortization | 249,616 | | | 95,707 | |
Amortization of discounts and premiums and other non-cash adjustments | (371,298) | | | 20,368 | |
| | | |
Non-cash lease expense | 70,958 | | | 61,978 | |
Share-based compensation | 794,794 | | | 429,999 | |
| | | |
Gain on revaluation of equity investments | (43,914) | | | (41,007) | |
Transaction, loan, and consumer receivable losses | 395,433 | | | 130,874 | |
| | | |
| | | |
Bitcoin impairment losses | 37,580 | | | 71,126 | |
| | | |
| | | |
Change in deferred income taxes | (47,503) | | | (5,224) | |
Changes in operating assets and liabilities: | | | |
Settlements receivable | (793,460) | | | (337,893) | |
| | | |
Purchases and originations of loans | (4,684,598) | | | (2,285,306) | |
Proceeds from payments and forgiveness of loans | 4,643,899 | | | 1,952,142 | |
Customers payable | 599,886 | | | 235,624 | |
Settlements payable | 75,185 | | | 10,440 | |
| | | |
Other assets and liabilities | (360,660) | | | 74,838 | |
Net cash provided by operating activities | 130,534 | | | 653,476 | |
Cash flows from investing activities: | | | |
Purchase of marketable debt securities | (521,692) | | | (2,343,446) | |
Proceeds from maturities of marketable debt securities | 769,276 | | | 609,377 | |
Proceeds from sale of marketable debt securities | 236,524 | | | 558,724 | |
Purchase of marketable debt securities from customer funds | — | | | (488,851) | |
Proceeds from maturities of marketable debt securities from customer funds | 73,000 | | | 456,481 | |
Proceeds from sale of marketable debt securities from customer funds | 316,576 | | | 10,000 | |
Originations of consumer receivables | (12,286,091) | | | — | |
Principal repayments of consumer receivables | 12,538,992 | | | — | |
Purchase of property and equipment | (121,709) | | | (98,028) | |
Purchase of bitcoin investments | — | | | (170,000) | |
Purchase of other investments | (39,079) | | | (47,550) | |
Proceeds from sale of equity investments | — | | | 420,644 | |
Business combinations, net of cash acquired | 539,453 | | | (163,970) | |
Net cash provided by (used in) investing activities | 1,505,250 | | | (1,256,619) | |
The accompanying notes are an integral part of these unaudited condensed consolidated financial statements.
BLOCK, INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - Continued
(Unaudited)
(In thousands)
| | | | | | | | | | | |
| Nine Months Ended September 30, 2022 |
| 2022 | | 2021 |
Cash flows from financing activities: | | | |
| | | |
| | | |
| | | |
Proceeds from issuance of senior notes, net | — | | | 1,971,828 | |
Proceeds from PPP Liquidity Facility advances | — | | | 681,542 | |
Repayments of PPP Liquidity Facility advances | (466,417) | | | (419,978) | |
| | | |
Payments to redeem convertible notes | (1,071,788) | | | — | |
Proceeds from warehouse facilities borrowings | 711,455 | | | — | |
Repayments of warehouse facilities borrowings | (310,729) | | | — | |
Proceeds from the exercise of stock options and purchases under the employee stock purchase plan | 49,233 | | | 84,866 | |
Payments for tax withholding related to vesting of restricted stock units | (4,734) | | | (312,406) | |
Other financing activities | — | | | (7,112) | |
Net increase in non-interest bearing deposits | 58,909 | | | — | |
Change in customer funds, restricted from use in the Company's operations | 152,663 | | | 611,282 | |
Net cash provided by (used in) financing activities | (881,408) | | | 2,610,022 | |
Effect of foreign exchange rate on cash and cash equivalents | (94,972) | | | (14,311) | |
Net increase in cash, cash equivalents, restricted cash, and customer funds | 659,404 | | | 1,992,568 | |
Cash, cash equivalents, restricted cash, and customer funds, beginning of the period | 6,975,090 | | | 4,793,171 | |
Cash, cash equivalents, restricted cash, and customer funds, end of the period | $ | 7,634,494 | | | $ | 6,785,739 | |
| | | |
Reconciliation of cash, cash equivalents, restricted cash, and customer funds: | | | |
Cash and cash equivalents | $ | 4,331,787 | | | $ | 4,514,609 | |
Short-term restricted cash | 246,570 | | | 14,420 | |
Long-term restricted cash | 72,479 | | | 73,420 | |
Customer funds cash and cash equivalents | 2,983,658 | | | 2,183,290 | |
Total | $ | 7,634,494 | | | $ | 6,785,739 | |
The accompanying notes are an integral part of these unaudited condensed consolidated financial statements.
BLOCK, INC.
CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY
(Unaudited)
(In thousands, except for number of shares)
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | Class A and B common stock | | Additional paid-in | | Accumulated other comprehensive | | Accumulated | | Noncontrolling | | Total stockholders’ |
| | Shares | | Amount | | capital | | income (loss) | | deficit | | interests | | equity |
Balance at December 31, 2021 | 464,943,787 | | | $ | — | | | $ | 3,317,255 | | | $ | (16,435) | | | $ | (27,965) | | | $ | 40,734 | | | $ | 3,313,589 | |
| Net loss | — | | | — | | | — | | | — | | | (204,199) | | | (3,164) | | | (207,363) | |
Shares issued in connection with employee stock plans | 2,119,899 | | | — | | | 4,093 | | | — | | | — | | | — | | | 4,093 | |
| | | | | | | | | | | | | |
Change in other comprehensive income | — | | | — | | | — | | | 234,792 | | | — | | | — | | | 234,792 | |
Share-based compensation | — | | | — | | | 279,354 | | | — | | | — | | | — | | | 279,354 | |
Tax withholding related to vesting of restricted stock units | (16,003) | | | — | | | (2,456) | | | — | | | — | | | — | | | (2,456) | |
Issuance of common stock in connection with business combination | 113,617,352 | | | — | | | 13,827,929 | | | — | | | — | | | — | | | 13,827,929 | |
Issuance of common stock in conjunction with the conversion of convertible notes | 19,865 | | | — | | | 454 | | | — | | | — | | | — | | | 454 | |
Exercise of bond hedges in conjunction with the conversion of convertible notes | (1,188,754) | | | — | | | — | | | — | | | — | | | — | | | — | |
| | | | | | | | | | | | | |
| | | | | | | | | | | | | |
Balance at March 31, 2022 | 579,496,146 | | | $ | — | | | $ | 17,426,629 | | | $ | 218,357 | | | $ | (232,164) | | | $ | 37,570 | | | $ | 17,450,392 | |
| Net loss | — | | | — | | | — | | | — | | | (208,014) | | | (1,263) | | | (209,277) | |
Shares issued in connection with employee stock plans | 2,866,242 | | | — | | | 39,024 | | | — | | | — | | | — | | | 39,024 | |
Change in other comprehensive loss | — | | | — | | | — | | | (648,273) | | | — | | | — | | | (648,273) | |
Share-based compensation | — | | | — | | | 261,342 | | | — | | | — | | | — | | | 261,342 | |
Tax withholding related to vesting of restricted stock units | (14,101) | | | — | | | (1,797) | | | — | | | — | | | — | | | (1,797) | |
Issuance of common stock in conjunction with the conversion of convertible notes | 182 | | | — | | | — | | | — | | | — | | | — | | | — | |
| | | | | | | | | | | | | |
Issuance of common stock in connection with the exercise of common stock warrants | 3,021,235 | | | — | | | — | | | — | | | — | | | — | | | — | |
| | | | | | | | | | | | | |
| | | | | | | | | | | | | |
Balance at June 30, 2022 | 585,369,704 | | | $ | — | | | $ | 17,725,198 | | | $ | (429,916) | | | $ | (440,178) | | | $ | 36,307 | | | $ | 16,891,411 | |
| Net loss | — | | | — | | | — | | | — | | | (14,711) | | | (4,033) | | | (18,744) | |
Shares issued in connection with employee stock plans | 3,315,379 | | | | | 6,116 | | | — | | | — | | | — | | | 6,116 | |
Change in other comprehensive loss | — | | | | | — | | | (616,723) | | | — | | | — | | | (616,723) | |
Share-based compensation | — | | | | | 268,359 | | | — | | | — | | | — | | | 268,359 | |
Tax withholding related to vesting of restricted stock units | (7,525) | | | | | (481) | | | — | | | — | | | — | | | (481) | |
| | | | | | | | | | | | | |
| | | | | | | | | | | | | |
Issuance of common stock in connection with the exercise of common stock warrants | 7,859,365 | | | — | | | — | | | — | | | — | | | — | | | — | |
Balance at September 30, 2022 | 596,536,923 | | | — | | | $ | 17,999,192 | | | $ | (1,046,639) | | | $ | (454,889) | | | $ | 32,274 | | | $ | 16,529,938 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | Class A and B common stock | | Additional paid-in | | Accumulated other comprehensive | | Accumulated | | Noncontrolling | | Total stockholders’ |
| | Shares | | Amount | | capital | | income | | deficit | | interests | | equity |
Balance at December 31, 2020 | 456,184,776 | | | $ | — | | | $ | 2,955,464 | | | $ | 23,328 | | | $ | (297,223) | | | $ | — | | | $ | 2,681,569 | |
Cumulative adjustment due to adoption of ASU 2020-06 | — | | | — | | | (502,708) | | | — | | | 102,974 | | | — | | | (399,734) | |
| Net income | — | | | — | | | — | | | — | | | 39,008 | | | — | | | 39,008 | |
Shares issued in connection with employee stock plans | 4,311,094 | | | — | | | 32,891 | | | — | | | — | | | — | | | 32,891 | |
Change in other comprehensive loss | — | | | — | | | — | | | (13,129) | | | — | | | — | | | (13,129) | |
Share-based compensation | — | | | — | | | 121,965 | | | — | | | — | | | — | | | 121,965 | |
Tax withholding related to vesting of restricted stock units | (669,076) | | | — | | | (152,013) | | | — | | | — | | | — | | | (152,013) | |
| | | | | | | | | | | | | |
| | | | | | | | | | | | | |
| | | | | | | | | | | | | |
| | | | | | | | | | | | | |
| | | | | | | | | | | | | |
Issuance of common stock in conjunction with the conversion of convertible notes | |