☒ | QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 | ||||||||||
For the quarterly period ended |
☐ | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 | ||||
For the transition period from to |
Delaware | 04-3432319 | |||||||
(State or other jurisdiction of incorporation or organization) | (I.R.S. Employer Identification No.) |
Title of each class | Trading Symbol(s) | Name of each exchange on which registered | ||||||
Common Stock - par value $0.01 per share | AKAM | Nasdaq Global Select Market |
Large accelerated filer | ☒ | Accelerated filer | ☐ | Non-accelerated filer | ☐ | Smaller reporting company | ☐ | Emerging growth company | ☐ |
Page | |||||||||||
Item 1. | |||||||||||
Item 2. | |||||||||||
Item 3. | |||||||||||
Item 4. | |||||||||||
Item 1. | |||||||||||
Item 1A. | |||||||||||
Item 2. | |||||||||||
Item 6. | |||||||||||
(in thousands, except share data) | June 30, 2020 | December 31, 2019 | |||||||||
ASSETS | |||||||||||
Current assets: | |||||||||||
Cash and cash equivalents | $ | 572,288 | $ | 393,745 | |||||||
Marketable securities | 800,321 | 1,143,249 | |||||||||
Accounts receivable, net of reserves of $6,225 and $1,880 at June 30, 2020, and December 31, 2019, respectively | 644,659 | 551,943 | |||||||||
Prepaid expenses and other current assets | 175,731 | 142,676 | |||||||||
Total current assets | 2,192,999 | 2,231,613 | |||||||||
Marketable securities | 1,018,835 | 835,384 | |||||||||
Property and equipment, net | 1,281,392 | 1,152,153 | |||||||||
Operating lease right-of-use assets | 736,465 | 758,450 | |||||||||
Acquired intangible assets, net | 194,951 | 179,431 | |||||||||
Goodwill | 1,595,304 | 1,600,265 | |||||||||
Deferred income tax assets | 61,310 | 76,528 | |||||||||
Other assets | 143,542 | 173,062 | |||||||||
Total assets | $ | 7,224,798 | $ | 7,006,886 | |||||||
(in thousands, except share data) | September 30, 2019 | December 31, 2018 | |||||
ASSETS | |||||||
Current assets: | |||||||
Cash and cash equivalents | $ | 738,462 | $ | 1,036,455 | |||
Marketable securities | 831,749 | 855,650 | |||||
Accounts receivable, net of reserves of $1,745 and $1,534 at September 30, 2019, and December 31, 2018, respectively | 516,657 | 479,889 | |||||
Prepaid expenses and other current assets | 167,040 | 163,360 | |||||
Total current assets | 2,253,908 | 2,535,354 | |||||
Marketable securities | 734,116 | 209,066 | |||||
Property and equipment, net | 1,079,914 | 910,618 | |||||
Operating lease right-of-use assets | 349,155 | — | |||||
Acquired intangible assets, net | 166,407 | 168,348 | |||||
Goodwill | 1,583,479 | 1,487,404 | |||||
Deferred income tax assets | 39,321 | 34,913 | |||||
Other assets | 151,134 | 116,067 | |||||
Total assets | $ | 6,357,434 | $ | 5,461,770 |
(in thousands, except share data) | June 30, 2020 | December 31, 2019 | |||||||||
LIABILITIES AND STOCKHOLDERS’ EQUITY | |||||||||||
Current liabilities: | |||||||||||
Accounts payable | $ | 153,958 | $ | 138,946 | |||||||
Accrued expenses | 263,646 | 334,861 | |||||||||
Deferred revenue | 93,648 | 71,223 | |||||||||
Operating lease liabilities | 138,478 | 139,463 | |||||||||
Other current liabilities | 7,692 | 8,843 | |||||||||
Total current liabilities | 657,422 | 693,336 | |||||||||
Deferred revenue | 4,536 | 4,368 | |||||||||
Deferred income tax liabilities | 29,556 | 29,187 | |||||||||
Convertible senior notes | 1,872,937 | 1,839,791 | |||||||||
Operating lease liabilities | 673,678 | 692,181 | |||||||||
Other liabilities | 82,374 | 90,065 | |||||||||
Total liabilities | 3,320,503 | 3,348,928 | |||||||||
Commitments and contingencies | |||||||||||
Stockholders’ equity: | |||||||||||
Preferred stock, $0.01 par value; 5,000,000 shares authorized; 700,000 shares designated as Series A Junior Participating Preferred Stock; no shares issued or outstanding | — | — | |||||||||
Common stock, $0.01 par value; 700,000,000 shares authorized; 163,773,348 shares issued and 162,630,477 shares outstanding at June 30, 2020, and 162,000,843 shares issued and outstanding at December 31, 2019 | 1,638 | 1,620 | |||||||||
Additional paid-in capital | 3,734,787 | 3,653,486 | |||||||||
Accumulated other comprehensive loss | (57,307) | (45,144) | |||||||||
Treasury stock, at cost, 1,142,871 shares at June 30, 2020, and no shares at December 31, 2019 | (107,880) | — | |||||||||
Retained earnings | 333,057 | 47,996 | |||||||||
Total stockholders’ equity | 3,904,295 | 3,657,958 | |||||||||
Total liabilities and stockholders’ equity | $ | 7,224,798 | $ | 7,006,886 |
(in thousands, except share data) | September 30, 2019 | December 31, 2018 | |||||
LIABILITIES AND STOCKHOLDERS’ EQUITY | |||||||
Current liabilities: | |||||||
Accounts payable | $ | 108,187 | $ | 99,089 | |||
Accrued expenses | 304,333 | 328,304 | |||||
Deferred revenue | 98,842 | 69,083 | |||||
Convertible senior notes | — | 686,552 | |||||
Operating lease liabilities | 86,959 | — | |||||
Other current liabilities | 4,202 | 27,681 | |||||
Total current liabilities | 602,523 | 1,210,709 | |||||
Deferred revenue | 4,526 | 4,557 | |||||
Deferred income tax liabilities | 21,797 | 19,624 | |||||
Convertible senior notes | 1,823,448 | 874,080 | |||||
Operating lease liabilities | 296,750 | — | |||||
Other liabilities | 106,790 | 160,940 | |||||
Total liabilities | 2,855,834 | 2,269,910 | |||||
Commitments and contingencies (Note 8) | |||||||
Stockholders’ equity: | |||||||
Preferred stock, $0.01 par value; 5,000,000 shares authorized; 700,000 shares designated as Series A Junior Participating Preferred Stock; no shares issued or outstanding | — | — | |||||
Common stock, $0.01 par value; 700,000,000 shares authorized; 165,211,770 shares issued and 161,659,502 shares outstanding at September 30, 2019, and 162,904,550 shares issued and outstanding at December 31, 2018 | 1,652 | 1,629 | |||||
Additional paid-in capital | 3,919,264 | 3,670,033 | |||||
Accumulated other comprehensive loss | (56,424 | ) | (48,912 | ) | |||
Treasury stock, at cost, 3,552,268 shares at September 30, 2019, and no shares at December 31, 2018 | (291,788 | ) | — | ||||
Accumulated deficit | (71,104 | ) | (430,890 | ) | |||
Total stockholders’ equity | 3,501,600 | 3,191,860 | |||||
Total liabilities and stockholders’ equity | $ | 6,357,434 | $ | 5,461,770 |
For the Three Months Ended September 30, | For the Nine Months Ended September 30, | For the Three Months Ended June 30, | For the Six Months Ended June 30, | |||||||||||||||||||||||||||||||||||||||||||||||
(in thousands, except per share data) | 2019 | 2018 | 2019 | 2018 | (in thousands, except per share data) | 2020 | 2019 | 2020 | 2019 | |||||||||||||||||||||||||||||||||||||||||
Revenue | $ | 709,912 | $ | 669,628 | $ | 2,121,494 | $ | 2,001,111 | Revenue | $ | 794,715 | $ | 705,074 | $ | 1,559,017 | $ | 1,411,582 | |||||||||||||||||||||||||||||||||
Costs and operating expenses: | Costs and operating expenses: | |||||||||||||||||||||||||||||||||||||||||||||||||
Cost of revenue (exclusive of amortization of acquired intangible assets shown below) | 246,938 | 239,246 | 729,874 | 709,558 | Cost of revenue (exclusive of amortization of acquired intangible assets shown below) | 276,804 | 242,193 | 545,386 | 482,936 | |||||||||||||||||||||||||||||||||||||||||
Research and development | 64,887 | 61,049 | 192,467 | 185,823 | Research and development | 64,090 | 61,439 | 135,314 | 127,580 | |||||||||||||||||||||||||||||||||||||||||
Sales and marketing | 122,258 | 125,323 | 383,640 | 379,556 | Sales and marketing | 123,469 | 135,106 | 247,255 | 261,382 | |||||||||||||||||||||||||||||||||||||||||
General and administrative | 123,216 | 119,911 | 366,167 | 444,502 | General and administrative | 129,709 | 120,116 | 257,070 | 242,951 | |||||||||||||||||||||||||||||||||||||||||
Amortization of acquired intangible assets | 9,624 | 8,294 | 28,871 | 25,019 | Amortization of acquired intangible assets | 10,381 | 9,648 | 20,815 | 19,247 | |||||||||||||||||||||||||||||||||||||||||
Restructuring (benefit) charges | (300 | ) | (732 | ) | 6,879 | 14,442 | ||||||||||||||||||||||||||||||||||||||||||||
Restructuring (benefit) charge | Restructuring (benefit) charge | (167) | 790 | 10,418 | 7,179 | |||||||||||||||||||||||||||||||||||||||||||||
Total costs and operating expenses | 566,623 | 553,091 | 1,707,898 | 1,758,900 | Total costs and operating expenses | 604,286 | 569,292 | 1,216,258 | 1,141,275 | |||||||||||||||||||||||||||||||||||||||||
Income from operations | 143,289 | 116,537 | 413,596 | 242,211 | Income from operations | 190,429 | 135,782 | 342,759 | 270,307 | |||||||||||||||||||||||||||||||||||||||||
Interest income | 7,908 | 9,258 | 22,953 | 19,632 | Interest income | 9,502 | 6,410 | 16,545 | 15,045 | |||||||||||||||||||||||||||||||||||||||||
Interest expense | (12,127 | ) | (14,566 | ) | (32,689 | ) | (28,620 | ) | Interest expense | (17,249) | (8,446) | (34,454) | (20,562) | |||||||||||||||||||||||||||||||||||||
Other expense, net | (752 | ) | (459 | ) | (819 | ) | (3,207 | ) | Other expense, net | (1,603) | (578) | (5,711) | (67) | |||||||||||||||||||||||||||||||||||||
Income before provision for income taxes | 138,318 | 110,770 | 403,041 | 230,016 | Income before provision for income taxes | 181,079 | 133,168 | 319,139 | 264,723 | |||||||||||||||||||||||||||||||||||||||||
Benefit (provision) for income taxes | 960 | (3,187 | ) | (42,718 | ) | (25,658 | ) | |||||||||||||||||||||||||||||||||||||||||||
Provision for income taxes | Provision for income taxes | (18,671) | (19,253) | (32,963) | (43,678) | |||||||||||||||||||||||||||||||||||||||||||||
Loss from equity method investment | (1,388 | ) | — | (1,388 | ) | — | Loss from equity method investment | (493) | — | (1,115) | — | |||||||||||||||||||||||||||||||||||||||
Net income | $ | 137,890 | $ | 107,583 | $ | 358,935 | $ | 204,358 | Net income | $ | 161,915 | $ | 113,915 | $ | 285,061 | $ | 221,045 | |||||||||||||||||||||||||||||||||
Net income per share: | Net income per share: | |||||||||||||||||||||||||||||||||||||||||||||||||
Basic | $ | 0.85 | $ | 0.65 | $ | 2.20 | $ | 1.21 | Basic | $ | 1.00 | $ | 0.70 | $ | 1.76 | $ | 1.35 | |||||||||||||||||||||||||||||||||
Diluted | $ | 0.84 | $ | 0.64 | $ | 2.18 | $ | 1.20 | Diluted | $ | 0.98 | $ | 0.69 | $ | 1.74 | $ | 1.34 | |||||||||||||||||||||||||||||||||
Shares used in per share calculations: | Shares used in per share calculations: | |||||||||||||||||||||||||||||||||||||||||||||||||
Basic | 162,445 | 165,924 | 163,029 | 168,763 | Basic | 162,413 | 163,407 | 162,203 | 163,322 | |||||||||||||||||||||||||||||||||||||||||
Diluted | 164,558 | 167,900 | 164,788 | 170,732 | Diluted | 164,768 | 165,019 | 164,226 | 164,903 |
For the Three Months Ended June 30, | For the Six Months Ended June 30, | ||||||||||||||||||||||||||||||||||
(in thousands) | 2020 | 2019 | 2020 | 2019 | |||||||||||||||||||||||||||||||
Net income | $ | 161,915 | $ | 113,915 | $ | 285,061 | $ | 221,045 | |||||||||||||||||||||||||||
Other comprehensive income (loss): | |||||||||||||||||||||||||||||||||||
Foreign currency translation adjustments | 5,808 | 2,849 | (20,469) | 3,351 | |||||||||||||||||||||||||||||||
Change in unrealized gain on investments, net of income tax provision of $5,144, $547, $3,679 and $1,101 for the three and six months ended June 30, 2020 and 2019, respectively | 15,880 | 1,646 | 8,306 | 3,077 | |||||||||||||||||||||||||||||||
Other comprehensive income (loss) | 21,688 | 4,495 | (12,163) | 6,428 | |||||||||||||||||||||||||||||||
Comprehensive income | $ | 183,603 | $ | 118,410 | $ | 272,898 | $ | 227,473 |
For the Three Months Ended September 30, | For the Nine Months Ended September 30, | ||||||||||||||
(in thousands) | 2019 | 2018 | 2019 | 2018 | |||||||||||
Net income | $ | 137,890 | $ | 107,583 | $ | 358,935 | $ | 204,358 | |||||||
Other comprehensive loss: | |||||||||||||||
Foreign currency translation adjustments | (14,095 | ) | (7,771 | ) | (10,744 | ) | (26,046 | ) | |||||||
Change in unrealized gain (loss) on investments, net of income tax (provision) benefit of $(52), $(494), $(1,153) and $78 for the three and nine months ended September 30, 2019 and 2018, respectively | 155 | 1,524 | 3,232 | (242 | ) | ||||||||||
Other comprehensive loss | (13,940 | ) | (6,247 | ) | (7,512 | ) | (26,288 | ) | |||||||
Comprehensive income | $ | 123,950 | $ | 101,336 | $ | 351,423 | $ | 178,070 |
For the Six Months Ended June 30, | |||||||||||||||||
(in thousands) | 2020 | 2019 | |||||||||||||||
Cash flows from operating activities: | |||||||||||||||||
Net income | $ | 285,061 | $ | 221,045 | |||||||||||||
Adjustments to reconcile net income to net cash provided by operating activities: | |||||||||||||||||
Depreciation and amortization | 231,788 | 214,270 | |||||||||||||||
Stock-based compensation | 96,684 | 93,447 | |||||||||||||||
Provision for deferred income taxes | 11,394 | 24,608 | |||||||||||||||
Amortization of debt discount and issuance costs | 31,310 | 19,628 | |||||||||||||||
Other non-cash reconciling items, net | 14,804 | 1,180 | |||||||||||||||
Changes in operating assets and liabilities, net of effects of acquisitions: | |||||||||||||||||
Accounts receivable | (105,546) | (38,127) | |||||||||||||||
Prepaid expenses and other current assets | (9,979) | (23,287) | |||||||||||||||
Accounts payable and accrued expenses | (47,402) | (52,789) | |||||||||||||||
Deferred revenue | 21,342 | 27,973 | |||||||||||||||
Other current liabilities | (1,115) | (18,739) | |||||||||||||||
Other non-current assets and liabilities | (6,407) | 9,570 | |||||||||||||||
Net cash provided by operating activities | 521,934 | 478,779 | |||||||||||||||
Cash flows from investing activities: | |||||||||||||||||
Cash received (paid) for business acquisitions, net of cash acquired | 106 | (121,409) | |||||||||||||||
Cash paid for asset acquisition | (36,376) | — | |||||||||||||||
Cash paid for equity method investment | — | (36,008) | |||||||||||||||
Purchases of property and equipment | (214,952) | (158,158) | |||||||||||||||
Capitalization of internal-use software development costs | (120,716) | (117,620) | |||||||||||||||
Purchases of short- and long-term marketable securities | (842,516) | (391,758) | |||||||||||||||
Proceeds from sales of short- and long-term marketable securities | 29,667 | 268 | |||||||||||||||
Proceeds from maturities of short- and long-term marketable securities | 984,333 | 649,262 | |||||||||||||||
Other non-current assets and liabilities | 79 | 2,237 | |||||||||||||||
Net cash used in investing activities | (200,375) | (173,186) | |||||||||||||||
Cash flows from financing activities: | |||||||||||||||||
Repayment of convertible senior notes | — | (690,000) | |||||||||||||||
Proceeds related to the issuance of common stock under stock plans | 29,805 | 28,772 | |||||||||||||||
Employee taxes paid related to net share settlement of stock-based awards | (63,930) | (49,956) | |||||||||||||||
Repurchases of common stock | (107,880) | (116,247) | |||||||||||||||
Other non-current assets and liabilities | — | (1,558) | |||||||||||||||
Net cash used in financing activities | (142,005) | (828,989) | |||||||||||||||
Effects of exchange rate changes on cash, cash equivalents and restricted cash | (828) | 2,678 | |||||||||||||||
Net increase (decrease) in cash, cash equivalents and restricted cash | 178,726 | (520,718) | |||||||||||||||
Cash, cash equivalents and restricted cash at beginning of period | 394,146 | 1,036,987 | |||||||||||||||
Cash, cash equivalents and restricted cash at end of period | $ | 572,872 | $ | 516,269 | |||||||||||||
For the Nine Months Ended September 30, | |||||||
(in thousands) | 2019 | 2018 | |||||
Cash flows from operating activities: | |||||||
Net income | $ | 358,935 | $ | 204,358 | |||
Adjustments to reconcile net income to net cash provided by operating activities: | |||||||
Depreciation and amortization | 324,874 | 318,226 | |||||
Stock-based compensation | 140,262 | 138,815 | |||||
Provision for deferred income taxes | 24,581 | 12,906 | |||||
Amortization of debt discount and issuance costs | 30,761 | 27,844 | |||||
Restructuring-related software charges | — | 2,818 | |||||
Other non-cash reconciling items, net | 3,778 | 9,360 | |||||
Changes in operating assets and liabilities, net of effects of acquisitions: | |||||||
Accounts receivable | (38,144 | ) | (13,611 | ) | |||
Prepaid expenses and other current assets | (11,663 | ) | (2,084 | ) | |||
Accounts payable and accrued expenses | (29,441 | ) | 7,921 | ||||
Deferred revenue | 16,714 | 23,927 | |||||
Other current liabilities | (21,850 | ) | 2,030 | ||||
Other non-current assets and liabilities | (22,643 | ) | (10,338 | ) | |||
Net cash provided by operating activities | 776,164 | 722,172 | |||||
Cash flows from investing activities: | |||||||
Cash paid for acquired businesses, net of cash acquired | (121,409 | ) | (79 | ) | |||
Cash paid for equity method investment | (36,008 | ) | — | ||||
Purchases of property and equipment | (268,766 | ) | (143,285 | ) | |||
Capitalization of internal-use software development costs | (159,645 | ) | (145,122 | ) | |||
Purchases of short- and long-term marketable securities | (1,373,563 | ) | (782,086 | ) | |||
Proceeds from sales of short- and long-term marketable securities | 547 | 16,308 | |||||
Proceeds from maturities of short- and long-term marketable securities | 878,779 | 378,708 | |||||
Other non-current assets and liabilities | 1,895 | (2,678 | ) | ||||
Net cash used in investing activities | (1,078,170 | ) | (678,234 | ) | |||
Cash flows from financing activities: | |||||||
Proceeds from the issuance of convertible senior notes | 1,135,629 | 1,132,185 | |||||
Proceeds from the issuance of warrants | 185,150 | 119,945 | |||||
Purchase of note hedge related to convertible senior notes | (312,225 | ) | (261,740 | ) | |||
Repayment of convertible senior notes | (690,000 | ) | — | ||||
Proceeds related to the issuance of common stock under stock plans | 43,204 | 52,497 | |||||
Employee taxes paid related to net share settlement of stock-based awards | (61,116 | ) | (52,145 | ) | |||
Repurchases of common stock | (291,788 | ) | (625,925 | ) | |||
Other non-current assets and liabilities | (1,558 | ) | (5,085 | ) | |||
Net cash provided by financing activities | 7,296 | 359,732 | |||||
Effects of exchange rate changes on cash, cash equivalents and restricted cash | (2,650 | ) | (11,528 | ) | |||
Net (decrease) increase in cash, cash equivalents and restricted cash | (297,360 | ) | 392,142 | ||||
Cash, cash equivalents and restricted cash at beginning of period | 1,036,987 | 314,429 | |||||
Cash, cash equivalents and restricted cash at end of period | $ | 739,627 | $ | 706,571 |
For the Six Months Ended June 30, | |||||||||||||||||
(in thousands) | 2020 | 2019 | |||||||||||||||
Supplemental disclosure of cash flow information: | |||||||||||||||||
Cash paid for income taxes, net of refunds received of $6,711 and $2,216 for the six months ended June 30, 2020 and 2019, respectively | $ | 26,409 | $ | 54,271 | |||||||||||||
Cash paid for interest expense | 3,079 | 719 | |||||||||||||||
Cash paid for operating lease liabilities | 94,157 | 69,317 | |||||||||||||||
Non-cash activities: | |||||||||||||||||
Operating lease right-of-use assets obtained in exchange for operating lease liabilities | 65,832 | 63,709 | |||||||||||||||
Purchases of property and equipment and capitalization of internal-use software development costs included in accounts payable and accrued expenses | 98,235 | 71,066 | |||||||||||||||
Capitalization of stock-based compensation | 18,856 | 18,760 | |||||||||||||||
Reconciliation of cash, cash equivalents and restricted cash: | |||||||||||||||||
Cash and cash equivalents | $ | 572,288 | $ | 515,896 | |||||||||||||
Restricted cash | 584 | 373 | |||||||||||||||
Cash, cash equivalents and restricted cash | $ | 572,872 | $ | 516,269 |
For the Nine Months Ended September 30, | |||||||
(in thousands) | 2019 | 2018 | |||||
Supplemental disclosure of cash flow information: | |||||||
Cash paid for income taxes, net of refunds received of $2,746 and $17,286 for the nine months ended September 30, 2019 and 2018, respectively | $ | 65,896 | $ | 32,485 | |||
Cash paid for operating lease liabilities | 107,478 | ||||||
Non-cash activities: | |||||||
Operating lease right-of-use assets obtained in exchange for operating lease liabilities | 87,207 | ||||||
Purchases of property and equipment and capitalization of internal-use software development costs included in accounts payable and accrued expenses | 64,982 | 54,414 | |||||
Capitalization of stock-based compensation | 27,352 | 25,676 | |||||
Reconciliation of cash, cash equivalents and restricted cash: | |||||||
Cash and cash equivalents | $ | 738,462 | $ | 705,407 | |||
Restricted cash | 1,165 | 1,164 | |||||
Cash, cash equivalents and restricted cash | $ | 739,627 | $ | 706,571 |
Three Months Ended June 30, 2020 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
(in thousands, except share data) | Common Stock | Additional Paid-in Capital | Accumulated Other Comprehensive Loss | Treasury Stock | Retained Earnings | Total Stockholders' Equity | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Shares | Amount | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance at April 1, 2020 | 162,176,589 | $ | 1,631 | $ | 3,658,990 | $ | (78,995) | $ | (80,550) | $ | 171,142 | $ | 3,672,218 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Issuance of common stock upon the exercise of stock options and vesting of restricted and deferred stock units, net of shares withheld for employee taxes | 331,544 | 3 | (12,595) | (12,592) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Issuance of common stock under employee stock purchase plan | 393,921 | 4 | 29,166 | 29,170 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Stock-based compensation | 59,226 | 59,226 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Repurchases of common stock | (271,577) | (27,330) | (27,330) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net income | 161,915 | 161,915 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Foreign currency translation adjustment | 5,808 | 5,808 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Change in unrealized loss on investments, net of tax | 15,880 | 15,880 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance at June 30, 2020 | 162,630,477 | $ | 1,638 | $ | 3,734,787 | $ | (57,307) | $ | (107,880) | $ | 333,057 | $ | 3,904,295 |
Three Months Ended September 30, 2019 | Three Months Ended June 30, 2019 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
(in thousands, except share data) | Common Stock | Additional Paid-in Capital | Treasury Stock | Accumulated Other Comprehensive Loss | Accumulated Deficit | Total Stockholders' Equity | (in thousands, except share data) | Common Stock | Additional Paid-in Capital | Accumulated Other Comprehensive Loss | Treasury Stock | Accumulated Deficit | Total Stockholders' Equity | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Shares | Amount | Shares | Amount | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance at July 1, 2019 | 163,359,091 | $ | 1,649 | $ | 3,760,840 | $ | (116,247 | ) | $ | (42,484 | ) | $ | (208,994 | ) | $ | 3,394,764 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance at April 1, 2019 | Balance at April 1, 2019 | 163,503,258 | $ | 1,640 | $ | 3,686,337 | $ | (46,979) | $ | (34,872) | $ | (322,909) | $ | 3,283,217 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Issuance of common stock upon the exercise of stock options and vesting of restricted and deferred stock units, net of shares withheld for employee taxes | 305,367 | 3 | (10,727 | ) | (10,724 | ) | Issuance of common stock upon the exercise of stock options and vesting of restricted and deferred stock units, net of shares withheld for employee taxes | 437,733 | 4 | (11,151) | (11,147) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Issuance of common stock under employee stock purchase plan | Issuance of common stock under employee stock purchase plan | 473,462 | 5 | 27,664 | 27,669 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Stock-based compensation | 55,406 | 55,406 | Stock-based compensation | 57,990 | 57,990 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Equity component of convertible senior notes, net of deferred tax of $23,170 and issuance costs of $2,880 | 240,820 | 240,820 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Issuance of warrants related to convertible senior notes | 185,150 | 185,150 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Purchase of note hedge related to convertible senior notes | (312,225 | ) | (312,225 | ) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Repurchases of common stock | (2,004,956 | ) | (175,541 | ) | (175,541 | ) | Repurchases of common stock | (1,055,362) | (81,375) | (81,375) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net income | 137,890 | 137,890 | Net income | 113,915 | 113,915 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Foreign currency translation adjustment | (14,095 | ) | (14,095 | ) | Foreign currency translation adjustment | 2,849 | 2,849 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Change in unrealized gain on investments, net of tax | 155 | 155 | Change in unrealized gain on investments, net of tax | 1,646 | 1,646 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance at September 30, 2019 | 161,659,502 | $ | 1,652 | $ | 3,919,264 | $ | (291,788 | ) | $ | (56,424 | ) | $ | (71,104 | ) | $ | 3,501,600 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance at June 30, 2019 | Balance at June 30, 2019 | 163,359,091 | $ | 1,649 | $ | 3,760,840 | $ | (42,484) | $ | (116,247) | $ | (208,994) | $ | 3,394,764 |
Six Months Ended June 30, 2020 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
(in thousands, except share data) | Common Stock | Additional Paid-in Capital | Accumulated Other Comprehensive Loss | Treasury Stock | Retained Earnings | Total Stockholders' Equity | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Shares | Amount | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance as of January 1, 2020 | 162,000,843 | $ | 1,620 | $ | 3,653,486 | $ | (45,144) | $ | — | $ | 47,996 | $ | 3,657,958 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Issuance of common stock upon the exercise of stock options and vesting of restricted and deferred stock units, net of shares withheld for employee taxes | 1,378,584 | 14 | (63,306) | (63,292) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Issuance of common stock under employee stock purchase plan | 393,921 | 4 | 29,166 | 29,170 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Stock-based compensation | 115,441 | 115,441 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Repurchases of common stock | (1,142,871) | (107,880) | (107,880) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net income | 285,061 | 285,061 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Foreign currency translation adjustment | (20,469) | (20,469) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Change in unrealized loss on investments, net of tax | 8,306 | 8,306 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance as of June 30, 2020 | 162,630,477 | $ | 1,638 | $ | 3,734,787 | $ | (57,307) | $ | (107,880) | $ | 333,057 | $ | 3,904,295 |
Six Months Ended June 30, 2019 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
(in thousands, except share data) | Common Stock | Additional Paid-in Capital | Accumulated Other Comprehensive Loss | Treasury Stock | Retained Earnings | Total Stockholders' Equity | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Shares | Amount | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance as of January 1, 2019 | 162,904,550 | $ | 1,629 | $ | 3,670,033 | $ | (48,912) | $ | — | $ | (430,890) | $ | 3,191,860 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Cumulative-effect adjustment to accumulated deficit related to adoption of new accounting pronouncement | 851 | 851 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Issuance of common stock upon the exercise of stock options and vesting of restricted and deferred stock units, net of shares withheld for employee taxes | 1,528,391 | 15 | (48,926) | (48,911) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Issuance of common stock under employee stock purchase plan | 473,462 | 5 | 27,664 | 27,669 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Stock-based compensation | 112,069 | 112,069 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Repurchases of common stock | (1,547,312) | (116,247) | (116,247) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net income | 221,045 | 221,045 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Foreign currency translation adjustment | 3,351 | 3,351 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Change in unrealized gain on investments, net of tax | 3,077 | 3,077 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance as of June 30, 2019 | 163,359,091 | $ | 1,649 | $ | 3,760,840 | $ | (42,484) | $ | (116,247) | $ | (208,994) | $ | 3,394,764 |
Three Months Ended September 30, 2018 | ||||||||||||||||||||||||||
(in thousands, except share data) | Common Stock | Additional Paid-in Capital | Treasury Stock | Accumulated Other Comprehensive Loss | Accumulated Deficit | Total Stockholders' Equity | ||||||||||||||||||||
Shares | Amount | |||||||||||||||||||||||||
Balance at July 1, 2018 | 169,311,093 | $ | 1,718 | $ | 4,303,531 | $ | (185,512 | ) | $ | (41,971 | ) | $ | (632,488 | ) | $ | 3,445,278 | ||||||||||
Issuance of common stock upon the exercise of stock options and vesting of restricted and deferred stock units, net of shares withheld for employee taxes | 470,224 | 4 | (6,091 | ) | (6,087 | ) | ||||||||||||||||||||
Stock-based compensation | 55,417 | 55,417 | ||||||||||||||||||||||||
Repurchases of common stock | (5,894,598 | ) | (440,413 | ) | (440,413 | ) | ||||||||||||||||||||
Net income | 107,583 | 107,583 | ||||||||||||||||||||||||
Foreign currency translation adjustment | (7,771 | ) | (7,771 | ) | ||||||||||||||||||||||
Change in unrealized gain on investments, net of tax | 1,524 | 1,524 | ||||||||||||||||||||||||
Balance at September 30, 2018 | 163,886,719 | $ | 1,722 | $ | 4,352,857 | $ | (625,925 | ) | $ | (48,218 | ) | $ | (524,905 | ) | $ | 3,155,531 |
Nine Months Ended September 30, 2019 | ||||||||||||||||||||||||||
(in thousands, except share data) | Common Stock | Additional Paid-in Capital | Treasury Stock | Accumulated Other Comprehensive Loss | Accumulated Deficit | Total Stockholders' Equity | ||||||||||||||||||||
Shares | Amount | |||||||||||||||||||||||||
Balance at January 1, 2019 | 162,904,550 | $ | 1,629 | $ | 3,670,033 | $ | — | $ | (48,912 | ) | $ | (430,890 | ) | $ | 3,191,860 | |||||||||||
Cumulative-effect adjustment to accumulated deficit related to adoption of new accounting pronouncement | 851 | 851 | ||||||||||||||||||||||||
Issuance of common stock upon the exercise of stock options and vesting of restricted and deferred stock units, net of shares withheld for employee taxes | 1,833,758 | 18 | (59,653 | ) | (59,635 | ) | ||||||||||||||||||||
Issuance of common stock under employee stock purchase plan | 473,462 | 5 | 27,664 | 27,669 | ||||||||||||||||||||||
Stock-based compensation | 167,475 | 167,475 | ||||||||||||||||||||||||
Equity component of convertible senior notes, net of deferred tax of $23,170 and issuance costs of $2,880 | 240,820 | 240,820 | ||||||||||||||||||||||||
Issuance of warrants related to convertible senior notes | 185,150 | 185,150 | ||||||||||||||||||||||||
Purchase of note hedge related to convertible senior notes | (312,225 | ) | (312,225 | ) | ||||||||||||||||||||||
Repurchases of common stock | (3,552,268 | ) | (291,788 | ) | (291,788 | ) | ||||||||||||||||||||
Net income | 358,935 | 358,935 | ||||||||||||||||||||||||
Foreign currency translation adjustment | (10,744 | ) | (10,744 | ) | ||||||||||||||||||||||
Change in unrealized gain on investments, net of tax | 3,232 | 3,232 | ||||||||||||||||||||||||
Balance at September 30, 2019 | 161,659,502 | $ | 1,652 | $ | 3,919,264 | $ | (291,788 | ) | $ | (56,424 | ) | $ | (71,104 | ) | $ | 3,501,600 |
Nine Months Ended September 30, 2018 | ||||||||||||||||||||||||||
(in thousands, except share data) | Common Stock | Additional Paid-in Capital | Treasury Stock | Accumulated Other Comprehensive Loss | Accumulated Deficit | Total Stockholders' Equity | ||||||||||||||||||||
Shares | Amount | |||||||||||||||||||||||||
Balance at January 1, 2018 | 169,893,324 | $ | 1,699 | $ | 4,073,362 | $ | — | $ | (21,930 | ) | $ | (690,662 | ) | $ | 3,362,469 | |||||||||||
Cumulative-effect adjustment to accumulated deficit related to adoption of new accounting pronouncement | (38,601 | ) | (38,601 | ) | ||||||||||||||||||||||
Issuance of common stock upon the exercise of stock options and vesting of restricted and deferred stock units, net of shares withheld for employee taxes | 1,797,241 | 18 | (44,619 | ) | (44,601 | ) | ||||||||||||||||||||
Issuance of common stock under employee stock purchase plan | 543,520 | 5 | 25,763 | 25,768 | ||||||||||||||||||||||
Stock-based compensation | 164,310 | 164,310 | ||||||||||||||||||||||||
Equity component of convertible senior notes, net of deferred tax of $4,971 and issuance costs of $4,418 | 275,836 | 275,836 | ||||||||||||||||||||||||
Issuance of warrants related to convertible senior notes | 119,945 | 119,945 | ||||||||||||||||||||||||
Purchase of note hedge related to convertible senior notes | (261,740 | ) | (261,740 | ) | ||||||||||||||||||||||
Repurchases of common stock | (8,347,366 | ) | (625,925 | ) | (625,925 | ) | ||||||||||||||||||||
Net income | 204,358 | 204,358 | ||||||||||||||||||||||||
Foreign currency translation adjustment | (26,047 | ) | (26,047 | ) | ||||||||||||||||||||||
Change in unrealized gain on investments, net of tax | (241 | ) | (241 | ) | ||||||||||||||||||||||
Balance at September 30, 2018 | 163,886,719 | $ | 1,722 | $ | 4,352,857 | $ | (625,925 | ) | $ | (48,218 | ) | $ | (524,905 | ) | $ | 3,155,531 |
Gross Unrealized | Classification on Balance Sheet | ||||||||||||||||||||||
Amortized Cost | Gains | Losses | Aggregate Fair Value | Short-Term Marketable Securities | Long-Term Marketable Securities | ||||||||||||||||||
As of September 30, 2019 | |||||||||||||||||||||||
Commercial paper | $ | 78,454 | $ | 20 | $ | (38 | ) | $ | 78,436 | $ | 78,436 | $ | — | ||||||||||
Corporate bonds | 1,286,133 | 1,491 | (878 | ) | 1,286,746 | 638,604 | 648,142 | ||||||||||||||||
U.S. government agency obligations | 186,836 | 16 | (196 | ) | 186,656 | 114,468 | 72,188 | ||||||||||||||||
$ | 1,551,423 | $ | 1,527 | $ | (1,112 | ) | $ | 1,551,838 | $ | 831,508 | $ | 720,330 | |||||||||||
As of December 31, 2018 | |||||||||||||||||||||||
Certificates of deposit | $ | 40,000 | $ | — | $ | (7 | ) | $ | 39,993 | $ | 39,993 | $ | — | ||||||||||
Commercial paper | 282,996 | — | (50 | ) | 282,946 | 282,946 | — | ||||||||||||||||
Corporate bonds | 685,653 | 1 | (4,309 | ) | 681,345 | 482,088 | 199,257 | ||||||||||||||||
U.S. government agency obligations | 50,876 | — | (404 | ) | 50,472 | 50,472 | — | ||||||||||||||||
$ | 1,059,525 | $ | 1 | $ | (4,770 | ) | $ | 1,054,756 | $ | 855,499 | $ | 199,257 |
Gross Unrealized | Classification on Balance Sheet | ||||||||||||||||||||||||||||||||||||||||||||||
Amortized Cost | Gains | Losses | Aggregate Fair Value | Short-Term Marketable Securities | Long-Term Marketable Securities | ||||||||||||||||||||||||||||||||||||||||||
As of June 30, 2020 | |||||||||||||||||||||||||||||||||||||||||||||||
Commercial paper | $ | 26,897 | $ | 77 | $ | (1) | $ | 26,973 | $ | 26,973 | $ | — | |||||||||||||||||||||||||||||||||||
Corporate bonds | 1,399,255 | 12,877 | (339) | 1,411,793 | 692,231 | 719,562 | |||||||||||||||||||||||||||||||||||||||||
U.S. government agency obligations | 362,188 | 866 | (47) | 363,007 | 80,851 | 282,156 | |||||||||||||||||||||||||||||||||||||||||
$ | 1,788,340 | $ | 13,820 | $ | (387) | $ | 1,801,773 | $ | 800,055 | $ | 1,001,718 | ||||||||||||||||||||||||||||||||||||
As of December 31, 2019 | |||||||||||||||||||||||||||||||||||||||||||||||
Certificates of deposit | $ | 150,000 | $ | — | $ | — | $ | 150,000 | $ | 150,000 | $ | — | |||||||||||||||||||||||||||||||||||
Commercial paper | 73,829 | 23 | (7) | 73,845 | 73,845 | — | |||||||||||||||||||||||||||||||||||||||||
Corporate bonds | 1,368,668 | 1,840 | (378) | 1,370,130 | 753,538 | 616,592 | |||||||||||||||||||||||||||||||||||||||||
U.S. government agency obligations | 369,475 | 80 | (74) | 369,481 | 165,623 | 203,858 | |||||||||||||||||||||||||||||||||||||||||
$ | 1,961,972 | $ | 1,943 | $ | (459) | $ | 1,963,456 | $ | 1,143,006 | $ | 820,450 |
Total Fair Value | Fair Value Measurements at Reporting Date Using | ||||||||||||||
Level 1 | Level 2 | Level 3 | |||||||||||||
As of September 30, 2019 | |||||||||||||||
Cash Equivalents and Marketable Securities: | |||||||||||||||
Money market funds | $ | 4,000 | $ | 4,000 | $ | — | $ | — | |||||||
Commercial paper | 78,436 | — | 78,436 | — | |||||||||||
Corporate bonds | 1,286,746 | — | 1,286,746 | — | |||||||||||
U.S. government agency obligations | 186,656 | — | 186,656 | — | |||||||||||
Mutual funds | 14,027 | 14,027 | — | — | |||||||||||
$ | 1,569,865 | $ | 18,027 | $ | 1,551,838 | $ | — | ||||||||
As of December 31, 2018 | |||||||||||||||
Cash Equivalents and Marketable Securities: | |||||||||||||||
Money market funds | $ | 380,260 | $ | 380,260 | $ | — | $ | — | |||||||
Certificates of deposit | 39,993 | 39,993 | — | — | |||||||||||
Commercial paper | 282,946 | — | 282,946 | — | |||||||||||
Corporate bonds | 681,345 | — | 681,345 | — | |||||||||||
U.S. government agency obligations | 50,472 | — | 50,472 | — | |||||||||||
Mutual funds | 10,016 | 10,016 | — | — | |||||||||||
$ | 1,445,032 | $ | 430,269 | $ | 1,014,763 | $ | — | ||||||||
Liabilities: | |||||||||||||||
Contingent consideration related to a completed acquisition | $ | (6,300 | ) | $ | — | $ | — | $ | (6,300 | ) |
Total Fair Value | Fair Value Measurements at Reporting Date Using | ||||||||||||||||||||||||||||
Level 1 | Level 2 | ||||||||||||||||||||||||||||
As of June 30, 2020 | |||||||||||||||||||||||||||||
Money market funds | $ | 104,131 | $ | 104,131 | $ | — | |||||||||||||||||||||||
Commercial paper | 26,973 | — | 26,973 | ||||||||||||||||||||||||||
Corporate bonds | 1,411,793 | — | 1,411,793 | ||||||||||||||||||||||||||
U.S. government agency obligations | 363,007 | — | 363,007 | ||||||||||||||||||||||||||
Mutual funds | 17,383 | 17,383 | — | ||||||||||||||||||||||||||
$ | 1,923,287 | $ | 121,514 | $ | 1,801,773 | ||||||||||||||||||||||||
As of December 31, 2019 | |||||||||||||||||||||||||||||
Money market funds | $ | 50,779 | $ | 50,779 | $ | — | |||||||||||||||||||||||
Certificates of deposit | 150,000 | — | 150,000 | ||||||||||||||||||||||||||
Commercial paper | 73,845 | — | 73,845 | ||||||||||||||||||||||||||
Corporate bonds | 1,370,130 | — | 1,370,130 | ||||||||||||||||||||||||||
U.S. government agency obligations | 369,481 | — | 369,481 | ||||||||||||||||||||||||||
Mutual funds | 15,177 | 15,177 | — | ||||||||||||||||||||||||||
$ | 2,029,412 | $ | 65,956 | $ | 1,963,456 |
September 30, 2019 | December 31, 2018 | ||||||
Due in 1 year or less | $ | 831,508 | $ | 855,499 | |||
Due after 1 year through 3 years | 720,330 | 199,257 | |||||
$ | 1,551,838 | $ | 1,054,756 |
June 30, 2020 | December 31, 2019 | ||||||||||
Due in 1 year or less | $ | 800,055 | $ | 1,143,006 | |||||||
Due after 1 year through 3 years | 1,001,718 | 820,450 | |||||||||
$ | 1,801,773 | $ | 1,963,456 |
Other Liabilities: Contingent Consideration Obligation | |||
Balance as of January 1, 2019 | $ | (6,300 | ) |
Cash paid upon achievement of milestone | 6,300 | ||
Balance as of September 30, 2019 | $ | — |
June 30, 2020 | December 31, 2019 | ||||||||||
Trade accounts receivable | $ | 482,451 | $ | 396,204 | |||||||
Unbilled accounts receivable | 168,433 | 157,619 | |||||||||
Gross accounts receivable | 650,884 | 553,823 | |||||||||
Allowances for current expected credit losses and other reserves | (6,225) | (1,880) | |||||||||
Accounts receivable, net | $ | 644,659 | $ | 551,943 |
September 30, 2019 | December 31, 2018 | ||||||
Trade accounts receivable | $ | 357,050 | $ | 337,445 | |||
Unbilled accounts receivable | 161,352 | 143,978 | |||||
Gross accounts receivable | 518,402 | 481,423 | |||||
Allowance for doubtful accounts and other reserves | (1,745 | ) | (1,534 | ) | |||
Accounts receivable, net | $ | 516,657 | $ | 479,889 |
Balance as of January 1, 2020 | $ | 1,880 | |||
Charges to income from operations | 7,523 | ||||
Collections from customers previously reserved and other | (3,178) | ||||
Balance as of June 30, 2020 | $ | 6,225 |
September 30, 2019 | December 31, 2018 | ||||||
Deferred costs included in prepaid and other current assets | $ | 41,085 | $ | 41,955 | |||
Deferred costs included in other assets | 21,625 | 26,338 | |||||
Total deferred costs | $ | 62,710 | $ | 68,293 |
June 30, 2020 | December 31, 2019 | ||||||||||
Deferred costs included in prepaid and other current assets | $ | 43,220 | $ | 45,009 | |||||||
Deferred costs included in other assets | 19,816 | 25,698 | |||||||||
Total deferred costs | $ | 63,036 | $ | 70,707 |
Balance as of January 1, 2019 | $ | 1,487,404 | |
Acquisition of Janrain, Inc. | 99,685 | ||
Foreign currency translation | (3,610 | ) | |
Balance as of September 30, 2019 | $ | 1,583,479 |
Balance as of January 1, 2020 | $ | 1,600,265 | |||
Measurement period adjustments related to acquisitions completed in prior years | (1,056) | ||||
Foreign currency translation | (3,905) | ||||
Balance as of June 30, 2020 | $ | 1,595,304 |
September 30, 2019 | December 31, 2018 | ||||||||||||||||||||||
Gross Carrying Amount | Accumulated Amortization | Net Carrying Amount | Gross Carrying Amount | Accumulated Amortization | Net Carrying Amount | ||||||||||||||||||
Completed technology | $ | 154,091 | $ | (95,861 | ) | $ | 58,230 | $ | 145,091 | $ | (81,587 | ) | $ | 63,504 | |||||||||
Customer-related intangible assets | 263,410 | (158,562 | ) | 104,848 | 245,710 | (144,786 | ) | 100,924 | |||||||||||||||
Non-compete agreements | 730 | (467 | ) | 263 | 700 | (306 | ) | 394 | |||||||||||||||
Trademarks and trade names | 7,400 | (4,334 | ) | 3,066 | 7,200 | (3,674 | ) | 3,526 | |||||||||||||||
Acquired license rights | 490 | (490 | ) | — | 490 | (490 | ) | — | |||||||||||||||
Total | $ | 426,121 | $ | (259,714 | ) | $ | 166,407 | $ | 399,191 | $ | (230,843 | ) | $ | 168,348 |
June 30, 2020 | December 31, 2019 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Gross Carrying Amount | Accumulated Amortization | Net Carrying Amount | Gross Carrying Amount | Accumulated Amortization | Net Carrying Amount | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Completed technology | $ | 154,170 | $ | (102,539) | $ | 51,631 | $ | 153,722 | $ | (94,088) | $ | 59,634 | |||||||||||||||||||||||||||||||||||||||||||||||
Customer-related intangible assets | 315,465 | (174,845) | 140,620 | 279,684 | (163,155) | 116,529 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Non-compete agreements | 819 | (657) | 162 | 830 | (529) | 301 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Trademarks and trade names | 7,548 | (5,010) | 2,538 | 7,600 | (4,633) | 2,967 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Acquired license rights | 490 | (490) | — | 490 | (490) | — | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Total | $ | 478,492 | $ | (283,541) | $ | 194,951 | $ | 442,326 | $ | (262,895) | $ | 179,431 |
Total purchase consideration | $ | 123,632 | ||
Allocation of the purchase consideration: | ||||
Cash | $ | 2,223 | ||
Accounts receivable | 7,318 | |||
Prepaid expenses and other current assets | 838 | |||
Identifiable intangible assets | 26,930 | |||
Goodwill | 99,685 | |||
Deferred tax assets | 5,124 | |||
Other assets | 87 | |||
Total assets acquired | 142,205 | |||
Accounts payable | (1,641 | ) | ||
Accrued expenses | (2,596 | ) | ||
Deferred revenue | (14,336 | ) | ||
Total liabilities assumed | (18,573 | ) | ||
Net assets acquired | $ | 123,632 |
Gross Carrying Amount | Weighted Average Useful Life (in years) | ||||
Completed technologies | $ | 9,000 | 3.0 | ||
Customer-related intangible assets | 17,700 | 6.0 | |||
Trademarks | 200 | 0.8 | |||
Non-compete agreements | 30 | 1.0 | |||
Total | $ | 26,930 |
September 30, 2019 | |||
Liability component: | |||
Principal | $ | 1,150,000 | |
Less: debt discount and issuance costs, net of amortization | (229,454 | ) | |
Net carrying amount | $ | 920,546 | |
Equity component: | $ | 220,529 |
June 30, 2020 | December 31, 2019 | ||||||||||
Liability component: | |||||||||||
Principal | $ | 1,150,000 | $ | 1,150,000 | |||||||
Less: debt discount and issuance costs, net of amortization | (209,737) | (222,928) | |||||||||
Net carrying amount | $ | 940,263 | $ | 927,072 | |||||||
Equity component: | $ | 220,529 | $ | 220,529 |
September 30, 2019 | December 31, 2018 | ||||||
Liability component: | |||||||
Principal | $ | 1,150,000 | $ | 1,150,000 | |||
Less: debt discount and issuance costs, net of amortization | (247,098 | ) | (275,920 | ) | |||
Net carrying amount | $ | 902,902 | $ | 874,080 | |||
Equity component: | $ | 285,225 | $ | 285,225 |
June 30, 2020 | December 31, 2019 | ||||||||||
Liability component: | |||||||||||
Principal | $ | 1,150,000 | $ | 1,150,000 | |||||||
Less: debt discount and issuance costs, net of amortization | (217,326) | (237,281) | |||||||||
Net carrying amount | $ | 932,674 | $ | 912,719 | |||||||
Equity component: | $ | 285,225 | $ | 285,225 |
For the Three Months Ended September 30, | For the Nine Months Ended September 30, | ||||||||||||||
2019 | 2018 | 2019 | 2018 | ||||||||||||
Amortization of debt discount and issuance costs | $ | 12,982 | $ | 15,295 | $ | 35,657 | $ | 31,045 | |||||||
Coupon interest payable on 2025 Notes | 359 | 359 | 1,077 | 514 | |||||||||||
Coupon interest payable on 2027 Notes | 479 | — | 479 | — | |||||||||||
Revolving credit facility contractual interest expense | 156 | 122 | 372 | 261 | |||||||||||
Capitalization of interest expense | (1,849 | ) | (1,210 | ) | (4,896 | ) | (3,200 | ) | |||||||
Total interest expense | $ | 12,127 | $ | 14,566 | $ | 32,689 | $ | 28,620 |
For the Three Months Ended September 30, 2019 | For the Nine Months Ended September 30, 2019 | ||||||||||||||||||||||
Real Estate Arrangements | Co-location Arrangements | Total | Real Estate Arrangements | Co-location Arrangements | Total | ||||||||||||||||||
Operating lease cost | $ | 14,517 | $ | 23,142 | $ | 37,659 | $ | 43,506 | $ | 70,082 | $ | 113,588 | |||||||||||
Short-term lease cost | 26 | 3,509 | 3,535 | 231 | 10,697 | 10,928 | |||||||||||||||||
Variable lease cost | 3,617 | 7,053 | 10,670 | 10,655 | 16,769 | 27,424 | |||||||||||||||||
Sublease income | (839 | ) | — | (839 | ) | (2,791 | ) | — | (2,791 | ) | |||||||||||||
Total operating lease costs | $ | 17,321 | $ | 33,704 | $ | 51,025 | $ | 51,601 | $ | 97,548 | $ | 149,149 |
For the Three Months Ended June 30, | For the Six Months Ended June 30, | ||||||||||||||||||||||||||||||||||
2020 | 2019 | 2020 | 2019 | ||||||||||||||||||||||||||||||||
Amortization of debt discount and issuance costs | $ | 16,709 | $ | 9,666 | $ | 33,264 | $ | 22,675 | |||||||||||||||||||||||||||
Coupon interest payable on 2025 Notes | 359 | 359 | 718 | 718 | |||||||||||||||||||||||||||||||
Coupon interest payable on 2027 Notes | 1,078 | — | 2,156 | — | |||||||||||||||||||||||||||||||
Revolving credit facility contractual interest expense | 135 | 77 | 270 | 216 | |||||||||||||||||||||||||||||||
Capitalization of interest expense | (1,032) | (1,656) | (1,954) | (3,047) | |||||||||||||||||||||||||||||||
Total interest expense | $ | 17,249 | $ | 8,446 | $ | 34,454 | $ | 20,562 |
Real Estate Arrangements | Co-location Arrangements | ||||||
Remainder of 2019 | $ | 10,975 | $ | 27,688 | |||
2020 | 49,206 | 29,454 | |||||
2021 | 45,094 | 9,789 | |||||
2022 | 41,090 | 5,767 | |||||
2023 | 39,245 | 3,944 | |||||
Thereafter | 200,317 | 10,158 | |||||
Total lease payments | 385,927 | 86,800 | |||||
Less: imputed interest | 84,087 | 4,931 | |||||
Total lease liabilities | $ | 301,840 | $ | 81,869 |
Real Estate Arrangements | Bandwidth and Co-location Arrangements | ||||||
2019 | $ | 54,561 | $ | 138,777 | |||
2020 | 78,683 | 24,420 | |||||
2021 | 75,991 | 8,463 | |||||
2022 | 72,579 | 5,233 | |||||
2023 | 70,101 | 2,156 | |||||
Thereafter | 599,339 | 3,709 | |||||
Total | $ | 951,254 | $ | 182,758 |
Employee Severance and Related Benefits | Software Charges | Excess Facilities, Contract Terminations and Other | Total | ||||||||||||
Balance as of January 1, 2019 | $ | 10,508 | $ | 198 | $ | 275 | $ | 10,981 | |||||||
Costs incurred | 6,825 | — | 54 | 6,879 | |||||||||||
Cash disbursements | (16,839 | ) | (99 | ) | (262 | ) | (17,200 | ) | |||||||
Balance as of September 30, 2019 | $ | 494 | $ | 99 | $ | 67 | $ | 660 |
Employee Severance and Related Benefits | Software Charges | Other | Total | ||||||||||||||||||||
Balance as of January 1, 2020 | $ | 5,707 | $ | 99 | $ | 151 | $ | 5,957 | |||||||||||||||
Costs incurred | 4,168 | — | 49 | 4,217 | |||||||||||||||||||
Cash disbursements | (9,398) | (99) | (175) | (9,672) | |||||||||||||||||||
Non-cash charges | — | — | (11) | (11) | |||||||||||||||||||
Balance as of June 30, 2020 | $ | 477 | $ | — | $ | 14 | $ | 491 |
For the Three Months Ended June 30, | For the Six Months Ended June 30, | ||||||||||||||||||||||||||||||||||
2020 | 2019 | 2020 | 2019 | ||||||||||||||||||||||||||||||||
Cost of revenue | $ | 6,254 | $ | 5,793 | $ | 11,990 | $ | 11,362 | |||||||||||||||||||||||||||
Research and development | 11,549 | 12,044 | 23,614 | 24,101 | |||||||||||||||||||||||||||||||
Sales and marketing | 16,011 | 15,740 | 31,746 | 30,791 | |||||||||||||||||||||||||||||||
General and administrative | 15,377 | 14,565 | 29,334 | 27,193 | |||||||||||||||||||||||||||||||
Total stock-based compensation | 49,191 | 48,142 | 96,684 | 93,447 | |||||||||||||||||||||||||||||||
Provision for income taxes | (16,823) | (13,798) | (29,459) | (26,791) | |||||||||||||||||||||||||||||||
Total stock-based compensation, net of income taxes | $ | 32,368 | $ | 34,344 | $ | 67,225 | $ | 66,656 |
For the Three Months Ended September 30, | For the Nine Months Ended September 30, | ||||||||||||||
2019 | 2018 | 2019 | 2018 | ||||||||||||
Cost of revenue | $ | 5,555 | $ | 5,494 | $ | 16,917 | $ | 16,343 | |||||||
Research and development | 12,842 | 11,249 | 36,943 | 32,684 | |||||||||||
Sales and marketing | 15,593 | 16,835 | 46,384 | 49,543 | |||||||||||
General and administrative | 12,825 | 13,054 | 40,018 | 40,245 | |||||||||||
Total stock-based compensation | 46,815 | 46,632 | 140,262 | 138,815 | |||||||||||
Provision for income taxes | (14,867 | ) | (7,802 | ) | (41,658 | ) | (37,692 | ) | |||||||
Total stock-based compensation, net of income taxes | $ | 31,948 | $ | 38,830 | $ | 98,604 | $ | 101,123 |
Foreign Currency Translation | Net Unrealized Gains on Investments | Total | |||||||||
Balance as of January 1, 2019 | $ | (51,904 | ) | $ | 2,992 | $ | (48,912 | ) | |||
Other comprehensive (loss) income | (10,744 | ) | 3,232 | (7,512 | ) | ||||||
Balance as of September 30, 2019 | $ | (62,648 | ) | $ | 6,224 | $ | (56,424 | ) |
Foreign Currency Translation | Net Unrealized Gains on Investments | Total | |||||||||||||||
Balance as of January 1, 2020 | $ | (52,924) | $ | 7,780 | $ | (45,144) | |||||||||||
Other comprehensive (loss) income | (20,469) | 8,306 | (12,163) | ||||||||||||||
Balance as of June 30, 2020 | $ | (73,393) | $ | 16,086 | $ | (57,307) |
For the Three Months Ended September 30, | For the Nine Months Ended September 30, | ||||||||||||||
2019 | 2018 | 2019 | 2018 | ||||||||||||
U.S. | $ | 413,116 | $ | 412,573 | $ | 1,248,175 | $ | 1,249,041 | |||||||
International | 296,796 | 257,055 | 873,319 | 752,070 | |||||||||||
Total revenue | $ | 709,912 | $ | 669,628 | $ | 2,121,494 | $ | 2,001,111 |
For the Three Months Ended June 30, | For the Six Months Ended June 30, | ||||||||||||||||||||||||||||||||||
2020 | 2019 | 2020 | 2019 | ||||||||||||||||||||||||||||||||
U.S. | $ | 443,668 | $ | 416,859 | $ | 872,598 | $ | 835,059 | |||||||||||||||||||||||||||
International | 351,047 | 288,215 | 686,419 | 576,523 | |||||||||||||||||||||||||||||||
Total revenue | $ | 794,715 | $ | 705,074 | $ | 1,559,017 | $ | 1,411,582 |
For the Three Months Ended September 30, | For the Nine Months Ended September 30, | ||||||||||||||
2019 | 2018 | 2019 | 2018 | ||||||||||||
Web Division | $ | 390,223 | $ | 357,255 | $ | 1,146,872 | $ | 1,062,376 | |||||||
Media and Carrier Division | 319,689 | 312,373 | 974,622 | 938,735 | |||||||||||
Total revenue | $ | 709,912 | $ | 669,628 | $ | 2,121,494 | $ | 2,001,111 |
For the Three Months Ended June 30, | For the Six Months Ended June 30, | ||||||||||||||||||||||||||||||||||
2020 | 2019 | 2020 | 2019 | ||||||||||||||||||||||||||||||||
Web Division | $ | 404,342 | $ | 377,558 | $ | 810,337 | $ | 751,760 | |||||||||||||||||||||||||||
Media and Carrier Division | 390,373 | 327,516 | 748,680 | 659,822 | |||||||||||||||||||||||||||||||
Total revenue | $ | 794,715 | $ | 705,074 | $ | 1,559,017 | $ | 1,411,582 |
For the Three Months Ended June 30, | For the Six Months Ended June 30, | ||||||||||||||||||||||||||||||||||
2020 | 2019 | 2020 | 2019 | ||||||||||||||||||||||||||||||||
Numerator: | |||||||||||||||||||||||||||||||||||
Net income | $ | 161,915 | $ | 113,915 | $ | 285,061 | $ | 221,045 | |||||||||||||||||||||||||||
Denominator: | |||||||||||||||||||||||||||||||||||
Shares used for basic net income per share | 162,413 | 163,407 | 162,203 | 163,322 | |||||||||||||||||||||||||||||||
Effect of dilutive securities: | |||||||||||||||||||||||||||||||||||
Stock options | 62 | 92 | 37 | 71 | |||||||||||||||||||||||||||||||
RSUs and DSUs | 1,640 | 1,520 | 1,659 | 1,510 | |||||||||||||||||||||||||||||||
Convertible senior notes | 653 | — | 327 | — | |||||||||||||||||||||||||||||||
Warrants related to issuance of convertible senior notes | — | — | — | — | |||||||||||||||||||||||||||||||
Shares used for diluted net income per share | 164,768 | 165,019 | 164,226 | 164,903 | |||||||||||||||||||||||||||||||
Basic net income per share | $ | 1.00 | $ | 0.70 | $ | 1.76 | $ | 1.35 | |||||||||||||||||||||||||||
Diluted net income per share | $ | 0.98 | $ | 0.69 | $ | 1.74 | $ | 1.34 |
For the Three Months Ended September 30, | For the Nine Months Ended September 30, | ||||||||||||||
2019 | 2018 | 2019 | 2018 | ||||||||||||
Numerator: | |||||||||||||||
Net income | $ | 137,890 | $ | 107,583 | $ | 358,935 | $ | 204,358 | |||||||
Denominator: | |||||||||||||||
Shares used for basic net income per share | 162,445 | 165,924 | 163,029 | 168,763 | |||||||||||
Effect of dilutive securities: | |||||||||||||||
Stock options | 36 | 80 | 59 | 158 | |||||||||||
RSUs and DSUs | 2,077 | 1,896 | 1,700 | 1,811 | |||||||||||
Convertible senior notes | — | — | — | — | |||||||||||
Warrants related to issuance of convertible senior notes | — | — | — | — | |||||||||||
Shares used for diluted net income per share | 164,558 | 167,900 | 164,788 | 170,732 | |||||||||||
Basic net income per share | $ | 0.85 | $ | 0.65 | $ | 2.20 | $ | 1.21 | |||||||
Diluted net income per share | $ | 0.84 | $ | 0.64 | $ | 2.18 | $ | 1.20 |
For the Three Months Ended September 30, | For the Nine Months Ended September 30, | ||||||||||
2019 | 2018 | 2019 | 2018 | ||||||||
Service-based RSUs | 139 | 185 | 959 | 1,068 | |||||||
Performance-based RSUs | 1,484 | 1,515 | 1,484 | 1,520 | |||||||
Convertible senior notes | 21,991 | 19,797 | 21,991 | 19,797 | |||||||
Warrants related to issuance of convertible senior notes | 21,991 | 19,797 | 21,991 | 19,797 | |||||||
Total shares excluded from computation | 45,605 | 41,294 | 46,425 | 42,182 |
For the Three Months Ended June 30, | For the Six Months Ended June 30, | ||||||||||||||||||||||||||||||||||
2020 | 2019 | 2020 | 2019 | ||||||||||||||||||||||||||||||||
Service-based RSUs | 115 | 174 | 1,069 | 1,370 | |||||||||||||||||||||||||||||||
Market-and performance-based RSUs | 1,383 | 1,484 | 1,435 | 1,484 | |||||||||||||||||||||||||||||||
Convertible senior notes | 9,898 | 12,093 | 15,945 | 12,093 | |||||||||||||||||||||||||||||||
Warrants related to issuance of convertible senior notes | 21,991 | 12,093 | 21,991 | 12,093 | |||||||||||||||||||||||||||||||
Total shares excluded from computation | 33,387 | 25,844 | 40,440 | 27,040 |
For the Three Months Ended June 30, | For the Six Months Ended June 30, | ||||||||||||||||||||||||||||||||||
2020 | 2019 | 2020 | 2019 | ||||||||||||||||||||||||||||||||
Revenue | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | |||||||||||||||||||||||||||
Costs and operating expenses: | |||||||||||||||||||||||||||||||||||
Cost of revenue (exclusive of amortization of acquired intangible assets shown below) | 34.8 | 34.4 | 35.0 | 34.2 | |||||||||||||||||||||||||||||||
Research and development | 8.1 | 8.7 | 8.7 | 9.0 | |||||||||||||||||||||||||||||||
Sales and marketing | 15.5 | 19.2 | 15.9 | 18.5 | |||||||||||||||||||||||||||||||
General and administrative | 16.3 | 17.0 | 16.5 | 17.2 | |||||||||||||||||||||||||||||||
Amortization of acquired intangible assets | 1.3 | 1.4 | 1.3 | 1.4 | |||||||||||||||||||||||||||||||
Restructuring (benefit) charge | — | 0.1 | 0.7 | 0.5 | |||||||||||||||||||||||||||||||
Total costs and operating expenses | 76.0 | 80.8 | 78.1 | 80.8 | |||||||||||||||||||||||||||||||
Income from operations | 24.0 | 19.2 | 21.9 | 19.2 | |||||||||||||||||||||||||||||||
Interest income | 1.2 | 0.9 | 1.1 | 1.1 | |||||||||||||||||||||||||||||||
Interest expense | (2.2) | (1.2) | (2.2) | (1.5) | |||||||||||||||||||||||||||||||
Other expense, net | (0.2) | (0.1) | (0.4) | — | |||||||||||||||||||||||||||||||
Income before provision for income taxes | 22.8 | 18.8 | 20.4 | 18.8 | |||||||||||||||||||||||||||||||
Provision for income taxes | (2.3) | (2.7) | (2.1) | (3.1) | |||||||||||||||||||||||||||||||
Loss from equity method investment | (0.1) | — | (0.1) | — | |||||||||||||||||||||||||||||||
Net income | 20.4 | % | 16.1 | % | 18.2 | % | 15.7 | % |
For the Three Months Ended September 30, | For the Nine Months Ended September 30, | ||||||||||
2019 | 2018 | 2019 | 2018 | ||||||||
Revenue | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | |||
Costs and operating expenses: | |||||||||||
Cost of revenue (exclusive of amortization of acquired intangible assets shown below) | 34.8 | 35.7 | 34.4 | 35.5 | |||||||
Research and development | 9.1 | 9.1 | 9.1 | 9.3 | |||||||
Sales and marketing | 17.2 | 18.7 | 18.1 | 19.0 | |||||||
General and administrative | 17.4 | 17.9 | 17.3 | 22.2 | |||||||
Amortization of acquired intangible assets | 1.4 | 1.2 | 1.4 | 1.3 | |||||||
Restructuring (benefit) charges | — | (0.1 | ) | 0.3 | 0.7 | ||||||
Total costs and operating expenses | 79.9 | 82.5 | 80.6 | 88.0 | |||||||
Income from operations | 20.1 | 17.5 | 19.4 | 12.0 | |||||||
Interest income | 1.1 | 1.4 | 1.1 | 1.0 | |||||||
Interest expense | (1.7 | ) | (2.2 | ) | (1.5 | ) | (1.4 | ) | |||
Other expense, net | (0.1 | ) | (0.1 | ) | — | (0.2 | ) | ||||
Income before provision for income taxes | 19.4 | 16.6 | 19.0 | 11.4 | |||||||
Benefit (provision) for income taxes | 0.1 | (0.5 | ) | (2.0 | ) | (1.3 | ) | ||||
Loss from equity method investment | (0.2 | ) | — | (0.1 | ) | — | |||||
Net income | 19.3 | % | 16.1 | % | 16.9 | % | 10.1 | % |
For the Three Months Ended June 30, | For the Six Months Ended June 30, | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
2020 | 2019 | % Change | % Change at Constant Currency | 2020 | 2019 | % Change | % Change at Constant Currency | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Web Division | $ | 404,342 | $ | 377,558 | 7.1 | % | 8.3 | % | $ | 810,337 | $ | 751,760 | 7.8 | % | 8.9 | % | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Media and Carrier Division | 390,373 | 327,516 | 19.2 | 20.1 | 748,680 | 659,822 | 13.5 | 14.4 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total revenue | $ | 794,715 | $ | 705,074 | 12.7 | % | 13.8 | % | $ | 1,559,017 | $ | 1,411,582 | 10.4 | % | 11.5 | % |
For the Three Months Ended September 30, | For the Nine Months Ended September 30, | ||||||||||||||||||||||||||
2019 | 2018 | % Change | % Change at Constant Currency | 2019 | 2018 | % Change | % Change at Constant Currency | ||||||||||||||||||||
Web Division | $ | 390,223 | $ | 357,255 | 9.2 | % | 10.1 | % | $ | 1,146,872 | $ | 1,062,376 | 8.0 | % | 9.6 | % | |||||||||||
Media and Carrier Division | 319,689 | 312,373 | 2.3 | 3.1 | 974,622 | 938,735 | 3.8 | 5.3 | |||||||||||||||||||
Total revenue | $ | 709,912 | $ | 669,628 | 6.0 | % | 6.8 | % | $ | 2,121,494 | $ | 2,001,111 | 6.0 | % | 7.6 | % |
For the Three Months Ended September 30, | For the Nine Months Ended September 30, | For the Three Months Ended June 30, | For the Six Months Ended June 30, | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
2019 | 2018 | % Change | % Change at Constant Currency | 2019 | 2018 | % Change | % Change at Constant Currency | 2020 | 2019 | % Change | % Change at Constant Currency | 2020 | 2019 | % Change | % Change at Constant Currency | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
U.S. | $ | 413,116 | $ | 412,573 | 0.1 | % | 0.1 | % | $ | 1,248,175 | $ | 1,249,041 | (0.1 | )% | (0.1 | )% | U.S. | $ | 443,668 | $ | 416,859 | 6.4 | % | 6.4 | % | $ | 872,598 | $ | 835,059 | 4.5 | % | 4.5 | % | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
International | 296,796 | 257,055 | 15.5 | 17.6 | 873,319 | 752,070 | 16.1 | 20.3 | International | 351,047 | 288,215 | 21.8 | 24.5 | 686,419 | 576,523 | 19.1 | 21.6 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total revenue | $ | 709,912 | $ | 669,628 | 6.0 | % | 6.8 | % | $ | 2,121,494 | $ | 2,001,111 | 6.0 | % | 7.6 | % | Total revenue | $ | 794,715 | $ | 705,074 | 12.7 | % | 13.8 | % | $ | 1,559,017 | $ | 1,411,582 | 10.4 | % | 11.5 | % |
For the Three Months Ended June 30, | For the Six Months Ended June 30, | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
2020 | 2019 | % Change | 2020 | 2019 | % Change | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Bandwidth fees | $ | 52,076 | $ | 42,193 | 23.4 | % | $ | 97,856 | $ | 84,666 | 15.6 | % | |||||||||||||||||||||||||||||||||||||||||||||||
Co-location fees | 37,013 | 31,421 | 17.8 | 72,402 | 60,913 | 18.9 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Network build-out and supporting services | 33,296 | 23,397 | 42.3 | 63,857 | 46,108 | 38.5 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Payroll and related costs | 63,620 | 61,751 | 3.0 | 129,427 | 122,014 | 6.1 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Stock-based compensation, including amortization of prior capitalized amounts | 13,055 | 12,684 | 2.9 | 26,049 | 25,993 | 0.2 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Depreciation of network equipment | 38,806 | 29,394 | 32.0 | 75,203 | 59,562 | 26.3 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Amortization of internal-use software | 38,938 | 41,353 | (5.8) | 80,592 | 83,680 | (3.7) | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Total cost of revenue | $ | 276,804 | $ | 242,193 | 14.3 | % | $ | 545,386 | $ | 482,936 | 12.9 | % | |||||||||||||||||||||||||||||||||||||||||||||||
As a percentage of revenue | 34.8 | % | 34.4 | % | 35.0 | % | 34.2 | % |
For the Three Months Ended September 30, | For the Nine Months Ended September 30, | ||||||||||||||||||||
2019 | 2018 | % Change | 2019 | 2018 | % Change | ||||||||||||||||
Bandwidth fees | $ | 38,373 | $ | 33,827 | 13.4 | % | $ | 123,039 | $ | 116,050 | 6.0 | % | |||||||||
Co-location fees | 32,042 | 32,165 | (0.4 | ) | 92,955 | 97,659 | (4.8 | ) | |||||||||||||
Network build-out and supporting services | 26,369 | 26,770 | (1.5 | ) | 72,477 | 66,328 | 9.3 | ||||||||||||||
Payroll and related costs | 62,888 | 60,097 | 4.6 | 184,902 | 179,712 | 2.9 | |||||||||||||||
Stock-based compensation, including amortization of prior capitalized amounts | 12,695 | 11,817 | 7.4 | 38,688 | 33,439 | 15.7 | |||||||||||||||
Depreciation of network equipment | 31,840 | 36,883 | (13.7 | ) | 91,402 | 112,866 | (19.0 | ) | |||||||||||||
Amortization of internal-use software | 42,731 | 37,687 | 13.4 | 126,411 | 103,504 | 22.1 | |||||||||||||||
Total cost of revenue | $ | 246,938 | $ | 239,246 | 3.2 | % | $ | 729,874 | $ | 709,558 | 2.9 | % | |||||||||
As a percentage of revenue | 34.8 | % | 35.7 | % | 34.4 | % | 35.5 | % |
For the Three Months Ended June 30, | For the Six Months Ended June 30, | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
2020 | 2019 | % Change | 2020 | 2019 | % Change | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Payroll and related costs | $ | 98,655 | $ | 94,492 | 4.4 | % | $ | 201,476 | $ | 189,436 | 6.4 | % | |||||||||||||||||||||||||||||||||||||||||||||||
Stock-based compensation | 11,549 | 12,044 | (4.1) | 23,614 | 24,101 | (2.0) | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Capitalized salaries and related costs | (48,957) | (48,109) | 1.8 | (95,257) | (91,468) | 4.1 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Other expenses | 2,843 | 3,012 | (5.6) | 5,481 | 5,511 | (0.5) | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Total research and development | $ | 64,090 | $ | 61,439 | 4.3 | % | $ | 135,314 | $ | 127,580 | 6.1 | % | |||||||||||||||||||||||||||||||||||||||||||||||
As a percentage of revenue | 8.1 | % | 8.7 | % | 8.7 | % | 9.0 | % |
For the Three Months Ended September 30, | For the Nine Months Ended September 30, | ||||||||||||||||||||
2019 | 2018 | % Change | 2019 | 2018 | % Change | ||||||||||||||||
Payroll and related costs | $ | 94,957 | $ | 90,421 | 5.0 | % | $ | 284,393 | $ | 274,798 | 3.5 | % | |||||||||
Stock-based compensation | 12,842 | 11,249 | 14.2 | 36,943 | 32,684 | 13.0 | |||||||||||||||
Capitalized salaries and related costs | (45,501 | ) | (42,790 | ) | 6.3 | (136,969 | ) | (129,471 | ) | 5.8 | |||||||||||
Other expenses | 2,589 | 2,169 | 19.4 | 8,100 | 7,812 | 3.7 | |||||||||||||||
Total research and development | $ | 64,887 | $ | 61,049 | 6.3 | % | $ | 192,467 | $ | 185,823 | 3.6 | % | |||||||||
As a percentage of revenue | 9.1 | % | 9.1 | % | 9.1 | % | 9.3 | % |
For the Three Months Ended June 30, | For the Six Months Ended June 30, | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
2020 | 2019 | % Change | 2020 | 2019 | % Change | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Payroll and related costs | $ | 94,645 | $ | 92,126 | 2.7 | % | $ | 188,239 | $ | 184,777 | 1.9 | % | |||||||||||||||||||||||||||||||||||||||||||||||
Stock-based compensation | 16,011 | 15,740 | 1.7 | 31,746 | 30,790 | 3.1 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Marketing programs and related costs | 10,577 | 17,482 | (39.5) | 19,714 | 32,015 | (38.4) | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Other expenses | 2,236 | 9,758 | (77.1) | 7,556 | 13,800 | (45.2) | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Total sales and marketing | $ | 123,469 | $ | 135,106 | (8.6) | % | $ | 247,255 | $ | 261,382 | (5.4) | % | |||||||||||||||||||||||||||||||||||||||||||||||
As a percentage of revenue | 15.5 | % | 19.2 | % | 15.9 | % | 18.5 | % |
For the Three Months Ended September 30, | For the Nine Months Ended September 30, | ||||||||||||||||||||
2019 | 2018 | % Change | 2019 | 2018 | % Change | ||||||||||||||||
Payroll and related costs | $ | 92,799 | $ | 94,216 | (1.5 | )% | $ | 277,576 | $ | 284,113 | (2.3 | )% | |||||||||
Stock-based compensation | 15,593 | 16,835 | (7.4 | ) | 46,383 | 49,543 | (6.4 | ) | |||||||||||||
Marketing programs and related costs | 9,545 | 9,513 | 0.3 | 41,560 | 31,840 | 30.5 | |||||||||||||||
Other expenses | 4,321 | 4,759 | (9.2 | ) | 18,121 | 14,060 | 28.9 | ||||||||||||||
Total sales and marketing | $ | 122,258 | $ | 125,323 | (2.4 | )% | $ | 383,640 | $ | 379,556 | 1.1 | % | |||||||||
As a percentage of revenue | 17.2 | % | 18.7 | % | 18.1 | % | 19.0 | % |
For the Three Months Ended June 30, | For the Six Months Ended June 30, | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
2020 | 2019 | % Change | 2020 | 2019 | % Change | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Payroll and related costs | $ | 49,475 | $ | 47,705 | 3.7 | % | $ | 98,074 | $ | 97,356 | 0.7 | % | |||||||||||||||||||||||||||||||||||||||||||||||
Stock-based compensation | 15,377 | 14,565 | 5.6 | 29,334 | 27,193 | 7.9 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Depreciation and amortization | 20,654 | 18,778 | 10.0 | 41,119 | 37,151 | 10.7 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Facilities-related costs | 23,898 | 21,042 | 13.6 | 48,570 | 42,065 | 15.5 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Allowance for doubtful accounts | 2,893 | 915 | 216.2 | 5,092 | 1,715 | 196.9 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Acquisition-related costs | 62 | 524 | (88.2) | 138 | 975 | (85.8) | |||||||||||||||||||||||||||||||||||||||||||||||||||||
License of patent | — | (4,452) | (100.0) | — | (8,855) | (100.0) | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Legal settlements | 275 | — | 100.0 | 275 | — | 100.0 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Professional fees and other expenses | 17,075 | 21,039 | (18.8) | 34,468 | 45,351 | (24.0) | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Total general and administrative | $ | 129,709 | $ | 120,116 | 8.0 | % | $ | 257,070 | $ | 242,951 | 5.8 | % | |||||||||||||||||||||||||||||||||||||||||||||||
As a percentage of revenue | 16.3 | % | 17.0 | % | 16.5 | % | 17.2 | % |
For the Three Months Ended September 30, | For the Nine Months Ended September 30, | ||||||||||||||||||||
2019 | 2018 | % Change | 2019 | 2018 | % Change | ||||||||||||||||
Payroll and related costs | $ | 47,892 | $ | 46,866 | 2.2 | % | $ | 145,248 | $ | 145,634 | (0.3 | )% | |||||||||
Stock-based compensation | 12,825 | 13,054 | (1.8 | ) | 40,018 | 40,245 | (0.6 | ) | |||||||||||||
Depreciation and amortization | 19,269 | 18,646 | 3.3 | 56,420 | 59,741 | (5.6 | ) | ||||||||||||||
Facilities-related costs | 21,413 | 21,567 | (0.7 | ) | 63,478 | 63,891 | (0.6 | ) | |||||||||||||
Provision for doubtful accounts | 623 | 652 | (4.4 | ) | 2,338 | 1,593 | 46.8 | ||||||||||||||
Acquisition-related costs | 219 | 329 | (33.4 | ) | 1,194 | 1,972 | (39.5 | ) | |||||||||||||
License of patent | — | (4,310 | ) | (100.0 | ) | (8,855 | ) | (12,791 | ) | (30.8 | ) | ||||||||||
Legal and stockholder matter costs | — | — | — | — | 23,091 | (100.0 | ) | ||||||||||||||
Endowment of Akamai Foundation | — | — | — | — | 50,000 | (100.0 | ) | ||||||||||||||
Professional fees and other expenses | 20,975 | 23,107 | (9.2 | ) | 66,326 | 71,126 | (6.7 | ) | |||||||||||||
Total general and administrative | $ | 123,216 | $ | 119,911 | 2.8 | % | $ | 366,167 | $ | 444,502 | (17.6 | )% | |||||||||
As a percentage of revenue | 17.4 | % | 17.9 | % | 17.3 | % | 22.2 | % |
For the Three Months Ended June 30, | For the Six Months Ended June 30, | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
2020 | 2019 | % Change | 2020 | 2019 | % Change | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Global functions | $ | 46,818 | $ | 49,462 | (5.3) | % | $ | 94,684 | $ | 98,930 | (4.3) | % | |||||||||||||||||||||||||||||||||||||||||||||||
As a percentage of revenue | 5.9 | % | 7.0 | % | 6.1 | % | 7.0 | % | |||||||||||||||||||||||||||||||||||||||||||||||||||
Infrastructure | 79,677 | 72,332 | 10.2 | 156,897 | 144,659 | 8.5 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
As a percentage of revenue | 10.0 | % | 10.3 | % | 10.1 | % | 10.2 | % | |||||||||||||||||||||||||||||||||||||||||||||||||||
Other | 3,214 | (1,678) | 291.5 | 5,489 | (638) | 960.3 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Total general and administrative expenses | $ | 129,709 | $ | 120,116 | 8.0 | % | $ | 257,070 | $ | 242,951 | 5.8 | % | |||||||||||||||||||||||||||||||||||||||||||||||
As a percentage of revenue | 16.3 | % | 17.0 | % | 16.5 | % | 17.2 | % |
For the Three Months Ended September 30, | For the Nine Months Ended September 30, | ||||||||||||||||||||
2019 | 2018 | % Change | 2019 | 2018 | % Change | ||||||||||||||||
Global functions | $ | 47,731 | $ | 46,680 | 2.3 | % | $ | 146,661 | $ | 149,830 | (2.1 | )% | |||||||||
As a percentage of revenue | 6.7 | % | 7.0 | % | 6.9 | % | 7.5 | % | |||||||||||||
Infrastructure | 74,643 | 74,009 | 0.9 | 219,302 | 228,256 | (3.9 | ) | ||||||||||||||
As a percentage of revenue | 10.5 | % | 11.1 | % | 10.3 | % | 11.4 | % | |||||||||||||
Other | 842 | (778 | ) | 208.2 | 204 | 66,416 | (99.7 | ) | |||||||||||||
Total general and administrative expenses | $ | 123,216 | $ | 119,911 | 2.8 | % | $ | 366,167 | $ | 444,502 | (17.6 | )% | |||||||||
As a percentage of revenue | 17.4 | % | 17.9 | % | 17.3 | % | 22.2 | % |
For the Three Months Ended June 30, | For the Six Months Ended June 30, | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
(in thousands) | 2020 | 2019 | % Change | 2020 | 2019 | % Change | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Amortization of acquired intangible assets | $ | 10,381 | $ | 9,648 | 7.6 | % | $ | 20,815 | $ | 19,247 | 8.1 | % | |||||||||||||||||||||||||||||||||||||||||||||||
As a percentage of revenue | 1.3 | % | 1.4 | % | 1.3 | % | 1.4 | % |
For the Three Months Ended September 30, | For the Nine Months Ended September 30, | ||||||||||||||||||||
(in thousands) | 2019 | 2018 | % Change | 2019 | 2018 | % Change | |||||||||||||||
Amortization of acquired intangible assets | $ | 9,624 | $ | 8,294 | 16.0 | % | $ | 28,871 | $ | 25,019 | 15.4 | % | |||||||||
As a percentage of revenue | 1.4 | % | 1.2 | % | 1.4 | % | 1.3 | % |
For the Three Months Ended June 30, | For the Six Months Ended June 30, | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
(in thousands) | 2020 | 2019 | % Change | 2020 | 2019 | % Change | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Restructuring (benefit) charge | $ | (167) | $ | 790 | (121.1) | % | $ | 10,418 | $ | 7,179 | 45.1 | % | |||||||||||||||||||||||||||||||||||||||||||||||
As a percentage of revenue | — | % | 0.1 | % | 0.7 | % | 0.5 | % |
For the Three Months Ended September 30, | For the Nine Months Ended September 30, | ||||||||||||||||||||
(in thousands) | 2019 | 2018 | % Change | 2019 | 2018 | % Change | |||||||||||||||
Restructuring (benefit) charges | $ | (300 | ) | $ | (732 | ) | (59.0 | )% | $ | 6,879 | $ | 14,442 | (52.4 | )% | |||||||
As a percentage of revenue | — | % | (0.1 | )% | 0.3 | % | 0.7 | % |
For the Three Months Ended June 30, | For the Six Months Ended June 30, | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
(in thousands) | 2020 | 2019 | % Change | 2020 | 2019 | % Change | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Interest income | $ | 9,502 | $ | 6,410 | 48.2 | % | $ | 16,545 | $ | 15,045 | 10.0 | % | |||||||||||||||||||||||||||||||||||||||||||||||
As a percentage of revenue | 1.2 | % | 0.9 | % | 1.1 | % | 1.1 | % | |||||||||||||||||||||||||||||||||||||||||||||||||||
Interest expense | $ | (17,249) | $ | (8,446) | 104.2 | % | $ | (34,454) | $ | (20,562) | 67.6 | % | |||||||||||||||||||||||||||||||||||||||||||||||
As a percentage of revenue | (2.2) | % | (1.2) | % | (2.2) | % | (1.5) | % | |||||||||||||||||||||||||||||||||||||||||||||||||||
Other expense, net | $ | (1,603) | $ | (578) | 177.3 | % | $ | (5,711) | $ | (67) | 8,423.9 | % | |||||||||||||||||||||||||||||||||||||||||||||||
As a percentage of revenue | (0.2) | % | (0.1) | % | (0.4) | % | — | % |
For the Three Months Ended September 30, | For the Nine Months Ended September 30, | ||||||||||||||||||||
(in thousands) | 2019 | 2018 | % Change | 2019 | 2018 | % Change | |||||||||||||||
Interest income | $ | 7,908 | $ | 9,258 | (14.6 | )% | $ | 22,953 | $ | 19,632 | 16.9 | % | |||||||||
As a percentage of revenue | 1.1 | % | 1.4 | % | 1.1 | % | 1.0 | % | |||||||||||||
Interest expense | $ | (12,127 | ) | $ | (14,566 | ) | (16.7 | )% | $ | (32,689 | ) | $ | (28,620 | ) | 14.2 | % | |||||
As a percentage of revenue | (1.7 | )% | (2.2 | )% | (1.5 | )% | (1.4 | )% | |||||||||||||
Other expense, net | $ | (752 | ) | $ | (459 | ) | 63.8 | % | $ | (819 | ) | $ | (3,207 | ) | (74.5 | )% | |||||
As a percentage of revenue | (0.1 | )% | (0.1 | )% | — | % | (0.2 | )% |
For the Three Months Ended June 30, | For the Six Months Ended June 30, | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
(in thousands) | 2020 | 2019 | % Change | 2020 | 2019 | % Change | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Provision for income taxes | $ | (18,671) | $(19,253) | (3.0) | % | $ | (32,963) | $ | (43,678) | (24.5) | % | ||||||||||||||||||||||||||||||||||||||||||||||||
As a percentage of revenue | (2.3) | % | (2.7) | % | (2.1) | % | (3.1) | % | |||||||||||||||||||||||||||||||||||||||||||||||||||
Effective income tax rate | (10.3) | % | (14.5) | % | (10.3) | % | (16.5) | % |
For the Three Months Ended September 30, | For the Nine Months Ended September 30, | ||||||||||||||||||||
(in thousands) | 2019 | 2018 | % Change | 2019 | 2018 | % Change | |||||||||||||||
Benefit (provision) for income taxes | $ | 960 | $ | (3,187 | ) | (130.1 | )% | $ | (42,718 | ) | $ | (25,658 | ) | 66.5 | % | ||||||
As a percentage of revenue | 0.1 | % | (0.5 | )% | (2.0 | )% | (1.3 | )% | |||||||||||||
Effective income tax rate | 0.7 | % | (2.9 | )% | (10.6 | )% | (11.2 | )% |
For the Three Months Ended June 30, | For the Six Months Ended June 30, | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
(in thousands) | 2020 | 2019 | % Change | 2020 | 2019 | % Change | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Loss from equity method investment | $ | (493) | $ | — | (100.0) | % | $ | (1,115) | $ | — | (100.0) | % | |||||||||||||||||||||||||||||||||||||||||||||||
As a percentage of revenue | (0.1) | % | — | % | (0.1) | % | — | % |
For the Three Months Ended September 30, | For the Nine Months Ended September 30, | ||||||||||||||||||||
(in thousands) | 2019 | 2018 | % Change | 2019 | 2018 | % Change | |||||||||||||||
Loss from equity method investment | $ | (1,388 | ) | $ | — | (100.0 | )% | $ | (1,388 | ) | $ | — | (100.0 | )% | |||||||
As a percentage of revenue | (0.2 | )% | — | % | (0.1 | )% | — | % |
For the Three Months Ended June 30, | For the Six Months Ended June 30, | ||||||||||||||||||||||||||||||||||
2020 | 2019 | 2020 | 2019 | ||||||||||||||||||||||||||||||||
Income from operations | $ | 190,429 | $ | 135,782 | $ | 342,759 | $ | 270,307 | |||||||||||||||||||||||||||
Amortization of acquired intangible assets | 10,381 | 9,648 | 20,815 | 19,247 | |||||||||||||||||||||||||||||||
Stock-based compensation | 49,191 | 48,142 | 96,684 | 93,447 | |||||||||||||||||||||||||||||||
Amortization of capitalized stock-based compensation and capitalized interest expense | 8,038 | 8,050 | 16,627 | 17,283 | |||||||||||||||||||||||||||||||
Restructuring (benefit) charge | (167) | 790 | 10,418 | 7,179 | |||||||||||||||||||||||||||||||
Acquisition-related costs | 62 | 524 | 138 | 975 | |||||||||||||||||||||||||||||||
Legal settlements | 275 | — | 275 | — | |||||||||||||||||||||||||||||||
Transformation costs | — | 1,336 | — | 5,527 | |||||||||||||||||||||||||||||||
Non-GAAP income from operations | $ | 258,209 | $ | 204,272 | $ | 487,716 | $ | 413,965 | |||||||||||||||||||||||||||
GAAP operating margin | 24 | % | 19 | % | 22 | % | 19 | % | |||||||||||||||||||||||||||
Non-GAAP operating margin | 32 | % | 29 | % | 31 | % | 29 | % | |||||||||||||||||||||||||||
For the Three Months Ended September 30, | For the Nine Months Ended September 30, | ||||||||||||||
2019 | 2018 | 2019 | 2018 | ||||||||||||
Income from operations | $ | 143,289 | $ | 116,537 | $ | 413,596 | $ | 242,211 | |||||||
Amortization of acquired intangible assets | 9,624 | 8,294 | 28,871 | 25,019 | |||||||||||
Stock-based compensation | 46,815 | 46,632 | 140,262 | 138,815 | |||||||||||
Amortization of capitalized stock-based compensation and capitalized interest expense | 8,455 | 7,575 | 25,738 | 20,435 | |||||||||||
Restructuring (benefit) charges | (300 | ) | (732 | ) | 6,879 | 14,442 | |||||||||
Acquisition-related costs | 219 | 329 | 1,194 | 1,972 | |||||||||||
Legal and stockholder matter costs | — | — | — | 23,091 | |||||||||||
Endowment of Akamai Foundation | — | — | — | 50,000 | |||||||||||
Transformation costs | — | 2,552 | 5,527 | 2,552 | |||||||||||
Non-GAAP income from operations | $ | 208,102 | $ | 181,187 | $ | 622,067 | $ | 518,537 | |||||||
GAAP operating margin | 20 | % | 17 | % | 19 | % | 12 | % | |||||||
Non-GAAP operating margin | 29 | % | 27 | % | 29 | % | 26 | % |
For the Three Months Ended June 30, | For the Six Months Ended June 30, | ||||||||||||||||||||||||||||||||||
2020 | 2019 | 2020 | 2019 | ||||||||||||||||||||||||||||||||
Net income | $ | 161,915 | $ | 113,915 | $ | 285,061 | $ | 221,045 | |||||||||||||||||||||||||||
Amortization of acquired intangible assets | 10,381 | 9,648 | 20,815 | 19,247 | |||||||||||||||||||||||||||||||
Stock-based compensation | 49,191 | 48,142 | 96,684 | 93,447 | |||||||||||||||||||||||||||||||
Amortization of capitalized stock-based compensation and capitalized interest expense | 8,038 | 8,050 | 16,627 | 17,283 | |||||||||||||||||||||||||||||||
Restructuring (benefit) charge | (167) | 790 | 10,418 | 7,179 | |||||||||||||||||||||||||||||||
Acquisition-related costs | 62 | 524 | 138 | 975 | |||||||||||||||||||||||||||||||
Legal settlements | 275 | — | 275 | — | |||||||||||||||||||||||||||||||
Transformation costs | — | 1,336 | — | 5,527 | |||||||||||||||||||||||||||||||
Amortization of debt discount and issuance costs | 15,677 | 8,010 | 31,310 | 19,628 | |||||||||||||||||||||||||||||||
Loss (gain) on investments | — | 250 | — | (440) | |||||||||||||||||||||||||||||||
Loss from equity method investment | 493 | — | 1,115 | — | |||||||||||||||||||||||||||||||
Income tax effect of above non-GAAP adjustments and certain discrete tax items | (19,347) | (14,454) | (39,792) | (26,758) | |||||||||||||||||||||||||||||||
Non-GAAP net income | $ | 226,518 | $ | 176,211 | $ | 422,651 | $ | 357,133 |
For the Three Months Ended September 30, | For the Nine Months Ended September 30, | ||||||||||||||
2019 | 2018 | 2019 | 2018 | ||||||||||||
Net income | $ | 137,890 | $ | 107,583 | $ | 358,935 | $ | 204,358 | |||||||
Amortization of acquired intangible assets | 9,624 | 8,294 | 28,871 | 25,019 | |||||||||||
Stock-based compensation | 46,815 | 46,632 | 140,262 | 138,815 | |||||||||||
Amortization of capitalized stock-based compensation and capitalized interest expense | 8,455 | 7,575 | 25,738 | 20,435 | |||||||||||
Restructuring (benefit) charges | (300 | ) | (732 | ) | 6,879 | 14,442 | |||||||||
Acquisition-related costs | 219 | 329 | 1,194 | 1,972 | |||||||||||
Legal and stockholder matter costs | — | — | — | 23,091 | |||||||||||
Endowment of Akamai Foundation | — | — | — | 50,000 | |||||||||||
Transformation costs | — | 2,552 | 5,527 | 2,552 | |||||||||||
Amortization of debt discount and issuance costs | 11,133 | 14,085 | 30,761 | 27,844 | |||||||||||
(Gain) loss on investments | — | (519 | ) | (440 | ) | 1,481 | |||||||||
Loss from equity method investment | 1,388 | — | 1,388 | — | |||||||||||
Income tax effect of above non-GAAP adjustments and certain discrete tax items | (34,631 | ) | (27,958 | ) | (61,389 | ) | (73,432 | ) | |||||||
Non-GAAP net income | $ | 180,593 | $ | 157,841 | $ | 537,726 | $ | 436,577 |
For the Three Months Ended June 30, | For the Six Months Ended June 30, | ||||||||||||||||||||||||||||||||||||||||||||||
2020 | 2019 | 2020 | 2019 | ||||||||||||||||||||||||||||||||||||||||||||
GAAP net income per diluted share | $ | 0.98 | $ | 0.69 | $ | 1.74 | $ | 1.34 | |||||||||||||||||||||||||||||||||||||||
Amortization of acquired intangible assets | 0.06 | 0.06 | 0.13 | 0.12 | |||||||||||||||||||||||||||||||||||||||||||
Stock-based compensation | 0.30 | 0.29 | 0.59 | 0.57 | |||||||||||||||||||||||||||||||||||||||||||
Amortization of capitalized stock-based compensation and capitalized interest expense | 0.05 | 0.05 | 0.10 | 0.10 | |||||||||||||||||||||||||||||||||||||||||||
Restructuring (benefit) charge | — | — | 0.06 | 0.04 | |||||||||||||||||||||||||||||||||||||||||||
Acquisition-related costs | — | — | — | 0.01 | |||||||||||||||||||||||||||||||||||||||||||
Legal settlements | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||
Transformation costs | — | 0.01 | — | 0.03 | |||||||||||||||||||||||||||||||||||||||||||
Amortization of debt discount and issuance costs | 0.10 | 0.05 | 0.19 | 0.12 | |||||||||||||||||||||||||||||||||||||||||||
Loss (gain) on investments | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||
Loss from equity method investment | — | — | 0.01 | — | |||||||||||||||||||||||||||||||||||||||||||
Income tax effect of above non-GAAP adjustments and certain discrete tax items | (0.12) | (0.09) | (0.24) | (0.16) | |||||||||||||||||||||||||||||||||||||||||||
Adjustment for shares(1) | 0.01 | — | 0.01 | — | |||||||||||||||||||||||||||||||||||||||||||
Non-GAAP net income per diluted share (2) | $ | 1.38 | $ | 1.07 | $ | 2.58 | $ | 2.17 | |||||||||||||||||||||||||||||||||||||||
Shares used in GAAP diluted per share calculations | 164,768 | 165,019 | 164,226 | 164,903 | |||||||||||||||||||||||||||||||||||||||||||
Impact of benefit from note hedge transactions(1) | (653) | — | (326) | — | |||||||||||||||||||||||||||||||||||||||||||
Shares used in non-GAAP diluted per share calculations(1) | 164,115 | 165,019 | 163,900 | 164,903 |
For the Three Months Ended September 30, | For the Nine Months Ended September 30, | ||||||||||||||
2019 | 2018 | 2019 | 2018 | ||||||||||||
GAAP net income per diluted share | $ | 0.84 | $ | 0.64 | $ | 2.18 | $ | 1.20 | |||||||
Amortization of acquired intangible assets | 0.06 | 0.05 | 0.18 | 0.15 | |||||||||||
Stock-based compensation | 0.28 | 0.28 | 0.85 | 0.81 | |||||||||||
Amortization of capitalized stock-based compensation and capitalized interest expense | 0.05 | 0.05 | 0.16 | 0.12 | |||||||||||
Restructuring (benefit) charges | — | — | 0.04 | 0.08 | |||||||||||
Acquisition-related costs | — | — | 0.01 | 0.01 | |||||||||||
Legal and stockholder matter costs | — | — | — | 0.14 | |||||||||||
Endowment of Akamai Foundation | — | — | — | 0.29 | |||||||||||
Transformation costs | — | 0.02 | 0.03 | 0.01 | |||||||||||
Amortization of debt discount and issuance costs | 0.07 | 0.08 | 0.19 | 0.16 | |||||||||||
(Gain) loss on investments | — | — | — | 0.01 | |||||||||||
Loss from equity method investment | 0.01 | — | 0.01 | — | |||||||||||
Income tax effect of above non-GAAP adjustments and certain discrete tax items | (0.21 | ) | (0.17 | ) | (0.37 | ) | (0.43 | ) | |||||||
Non-GAAP net income per diluted share (1) | $ | 1.10 | $ | 0.94 | $ | 3.26 | $ | 2.56 | |||||||
Shares used in diluted per share calculations | 164,558 | 167,900 | 164,788 | 170,732 |
For the Three Months Ended June 30, | For the Six Months Ended June 30, | ||||||||||||||||||||||||||||||||||
2020 | 2019 | 2020 | 2019 | ||||||||||||||||||||||||||||||||
Net income | $ | 161,915 | $ | 113,915 | $ | 285,061 | $ | 221,045 | |||||||||||||||||||||||||||
Interest income | (9,502) | (6,410) | (16,545) | (15,045) | |||||||||||||||||||||||||||||||
Provision for income taxes | 18,671 | 19,253 | 32,963 | 43,678 | |||||||||||||||||||||||||||||||
Depreciation and amortization | 97,163 | 88,367 | 194,348 | 177,740 | |||||||||||||||||||||||||||||||
Amortization of capitalized stock-based compensation and capitalized interest expense | 8,038 | 8,050 | 16,627 | 17,283 | |||||||||||||||||||||||||||||||
Amortization of acquired intangible assets | 10,381 | 9,648 | 20,815 | 19,247 | |||||||||||||||||||||||||||||||
Stock-based compensation | 49,191 | 48,142 | 96,684 | 93,447 | |||||||||||||||||||||||||||||||
Restructuring (benefit) charge | (167) | 790 | 10,418 | 7,179 | |||||||||||||||||||||||||||||||
Acquisition-related costs | 62 | 524 | 138 | 975 | |||||||||||||||||||||||||||||||
Legal settlements | 275 | — | 275 | — | |||||||||||||||||||||||||||||||
Transformation costs | — | 1,336 | — | 5,527 | |||||||||||||||||||||||||||||||
Interest expense | 17,249 | 8,446 | 34,454 | 20,562 | |||||||||||||||||||||||||||||||
Loss (gain) on investments | — | 250 | — | (440) | |||||||||||||||||||||||||||||||
Loss from equity method investment | 493 | — | 1,115 | — | |||||||||||||||||||||||||||||||
Other expense, net | 1,603 | 328 | 5,711 | 507 | |||||||||||||||||||||||||||||||
Adjusted EBITDA | $ | 355,372 | $ | 292,639 | $ | 682,064 | $ | 591,705 | |||||||||||||||||||||||||||
Adjusted EBITDA margin | 45 | % | 42 | % | 44 | % | 42 | % | |||||||||||||||||||||||||||
For the Three Months Ended September 30, | For the Nine Months Ended September 30, | ||||||||||||||
2019 | 2018 | 2019 | 2018 | ||||||||||||
Net income | $ | 137,890 | $ | 107,583 | $ | 358,935 | $ | 204,358 | |||||||
Interest income | (7,908 | ) | (9,258 | ) | (22,953 | ) | (19,632 | ) | |||||||
(Benefit) provision for income taxes | (960 | ) | 3,187 | 42,718 | 25,658 | ||||||||||
Depreciation and amortization | 92,525 | 91,964 | 270,265 | 272,772 | |||||||||||
Amortization of capitalized stock-based compensation and capitalized interest expense | 8,455 | 7,575 | 25,738 | 20,435 | |||||||||||
Amortization of acquired intangible assets | 9,624 | 8,294 | 28,871 | 25,019 | |||||||||||
Stock-based compensation | 46,815 | 46,632 | 140,262 | 138,815 | |||||||||||
Restructuring (benefit) provision | (300 | ) | (732 | ) | 6,879 | 14,442 | |||||||||
Acquisition-related costs | 219 | 329 | 1,194 | 1,972 | |||||||||||
Legal and stockholder matter costs | — | — | — | 23,091 | |||||||||||
Endowment of Akamai Foundation | — | — | — | 50,000 | |||||||||||
Transformation costs | — | 2,552 | 5,527 | 2,552 | |||||||||||
Interest expense | 12,127 | 14,566 | 32,689 | 28,620 | |||||||||||
(Gain) loss on investments | — | (519 | ) | (440 | ) | 1,481 | |||||||||
Loss from equity method investment | 1,388 | — | 1,388 | — | |||||||||||
Other expense, net | 752 | 978 | 1,259 | 1,726 | |||||||||||
Adjusted EBITDA | $ | 300,627 | $ | 273,151 | $ | 892,332 | $ | 791,309 | |||||||
Adjusted EBITDA margin | 42 | % | 41 | % | 42 | % | 40 | % |
For the Six Months Ended June 30, | |||||||||||||||||
(in thousands) | 2020 | 2019 | |||||||||||||||
Net income | $ | 285,061 | $ | 221,045 | |||||||||||||
Non-cash reconciling items included in net income | 385,980 | 353,133 | |||||||||||||||
Changes in operating assets and liabilities | (149,107) | (95,399) | |||||||||||||||
Net cash provided by operating activities | $ | 521,934 | $ | 478,779 |
For the Nine Months Ended September 30, | |||||||
(in thousands) | 2019 | 2018 | |||||
Net income | $ | 358,935 | $ | 204,358 | |||
Non-cash reconciling items included in net income | 524,256 | 509,969 | |||||
Changes in operating assets and liabilities | (107,027 | ) | 7,845 | ||||
Net cash provided by operating activities | $ | 776,164 | $ | 722,172 |
For the Six Months Ended June 30, | |||||||||||||||||
(in thousands) | 2020 | 2019 | |||||||||||||||
Cash received (paid) for business acquisition, net of cash acquired | $ | 106 | $ | (121,409) | |||||||||||||
Cash paid for asset acquisition | (36,376) | — | |||||||||||||||
Cash paid for equity method investment | — | (36,008) | |||||||||||||||
Purchases of property and equipment and capitalization of internal-use software development costs | (335,668) | (275,778) | |||||||||||||||
Net marketable securities activity | 171,484 | 257,772 | |||||||||||||||
Other investing activity | 79 | 2,237 | |||||||||||||||
Net cash used in investing activities | $ | (200,375) | $ | (173,186) |
For the Nine Months Ended September 30, | |||||||
(in thousands) | 2019 | 2018 | |||||
Cash paid for acquired businesses, net of cash acquired | $ | (121,409 | ) | $ | (79 | ) | |
Purchases of property and equipment and capitalization of internal-use software development costs | (428,411 | ) | (288,407 | ) | |||
Net marketable securities activity | (494,237 | ) | (387,070 | ) | |||
Other investing activity | (34,113 | ) | (2,678 | ) | |||
Net cash used in investing activities | $ | (1,078,170 | ) | $ | (678,234 | ) |
For the Nine Months Ended September 30, | |||||||
(in thousands) | 2019 | 2018 | |||||
Activity related to convertible senior notes | $ | 318,554 | $ | 990,390 | |||
Activity related to stock-based compensation | (17,912 | ) | 352 | ||||
Repurchases of common stock | (291,788 | ) | (625,925 | ) | |||
Other financing activities | (1,558 | ) | (5,085 | ) | |||
Net cash provided by financing activities | $ | 7,296 | $ | 359,732 |
For the Six Months Ended June 30, | |||||||||||||||||
(in thousands) | 2020 | 2019 | |||||||||||||||
Activity related to convertible senior notes | $ | — | $ | (690,000) | |||||||||||||
Activity related to stock-based compensation | (34,125) | (21,184) | |||||||||||||||
Repurchases of common stock | (107,880) | (116,247) | |||||||||||||||
Other financing activities | — | (1,558) | |||||||||||||||
Net cash used in financing activities | $ | (142,005) | $ | (828,989) |
Period (1) | (a) Total Number of Shares Purchased (2) | (b) Average Price Paid per Share (3) | (c) Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs (4) | (d) Approximate Dollar Value of Shares that May Yet be Purchased Under Plans or Programs(4) | ||||||||||||||||||||||
April 1, 2020 – April 30, 2020 | — | $ | — | — | $ | 684,931 | ||||||||||||||||||||
May 1, 2020 – May 31, 2020 | 127,135 | 98.97 | 127,135 | 672,348 | ||||||||||||||||||||||
June 1, 2020 – June 30, 2020 | 144,442 | 102.10 | 144,442 | 657,600 | ||||||||||||||||||||||
Total | 271,577 | $ | 100.64 | 271,577 | $ | 657,600 |
Period (1) | (a) Total Number of Shares Purchased (2) | (b) Average Price Paid per Share (3) | (c) Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs (4) | (d) Approximate Dollar Value of Shares that May Yet be Purchased Under Plans or Programs(4) | ||||||||||
July 1, 2019 – July 31, 2019 | 455,007 | $ | 82.09 | 455,007 | $ | 946,399 | ||||||||
August 1, 2019 – August 31, 2019 | 1,375,350 | 89.04 | 1,375,350 | 823,941 | ||||||||||
September 1, 2019 – September 30, 2019 | 174,599 | 90.09 | 174,599 | 808,211 | ||||||||||
Total | 2,004,956 | $ | 87.55 | 2,004,956 | $ | 808,211 |
Exhibit | ||||||||
Exhibit 31.2 | ||||||||
Exhibit 32.1 | ||||||||
Exhibit 32.2 | ||||||||
101.INS | Inline XBRL Instance Document – The instance document does not appear in the interactive data file because its XBRL tags are embedded within the inline XBRL document.* | |||||||
101.SCH | Inline XBRL Taxonomy Extension Schema Document* | |||||||
101.CAL | Inline XBRL Taxonomy Calculation Linkbase Document* | |||||||
101.DEF | Inline XBRL Taxonomy Extension Definition Linkbase Document* | |||||||
101.LAB | Inline XBRL Taxonomy Label Linkbase Document* | |||||||
101.PRE | Inline XBRL Taxonomy Presentation Linkbase Document* | |||||||
104 | Cover Page Interactive Data File (formatted as inline XBRL and contained in Exhibit |
Submitted electronically herewith |
Akamai Technologies, Inc. | |||||||||||
August 7, 2020 | |||||||||||
By: | /s/ | ||||||||||
Chief Financial Officer (Duly Authorized Officer, Principal Financial Officer) |