Document and Entity Information
Document and Entity Information - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Feb. 02, 2021 | Jun. 30, 2020 | |
Document Information [Line Items] | |||
Document Type | 10-K | ||
Amendment Flag | false | ||
Document Period End Date | Dec. 31, 2020 | ||
Document Fiscal Year Focus | 2020 | ||
Document Fiscal Period Focus | FY | ||
Entity Registrant Name | MICROSTRATEGY INCORPORATED | ||
Entity Central Index Key | 0001050446 | ||
Entity Current Reporting Status | Yes | ||
Entity Voluntary Filers | No | ||
Entity Interactive Data Current | Yes | ||
Current Fiscal Year End Date | --12-31 | ||
Entity Filer Category | Large Accelerated Filer | ||
ICFR Auditor Attestation Flag | true | ||
Entity Well Known Seasoned Issuer | Yes | ||
Entity Public Float | $ 907 | ||
Entity Shell Company | false | ||
Entity Small Business | false | ||
Entity Emerging Growth Company | false | ||
Title of 12(b) Security | Class A common stock, par value $0.001 per share | ||
Trading Symbol | MSTR | ||
Security Exchange Name | NASDAQ | ||
Entity File Number | 000-24435 | ||
Entity Incorporation, State or Country Code | DE | ||
Entity Tax Identification Number | 51-0323571 | ||
Entity Address, Address Line One | 1850 Towers Crescent Plaza | ||
Entity Address, City or Town | Tysons Corner | ||
Entity Address, State or Province | VA | ||
Entity Address, Postal Zip Code | 22182 | ||
City Area Code | 703 | ||
Local Phone Number | 848-8600 | ||
Document Annual Report | true | ||
Document Transition Report | false | ||
Documents Incorporated by Reference | Portions of the definitive proxy statement for the 2021 Annual Meeting of Stockholders of the Registrant to be filed subsequently with the SEC are incorporated by reference into Part III of this Annual Report on Form 10-K to the extent indicated herein. | ||
Class A | |||
Document Information [Line Items] | |||
Entity Common Stock, Shares Outstanding | 7,622,997 | ||
Class B Convertible | |||
Document Information [Line Items] | |||
Entity Common Stock, Shares Outstanding | 1,964,025 |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Current assets: | ||
Cash and cash equivalents | $ 59,675 | $ 456,727 |
Restricted cash | 1,084 | 1,089 |
Short-term investments | 0 | 108,919 |
Accounts receivable, net | 197,461 | 163,516 |
Prepaid expenses and other current assets | 14,400 | 23,195 |
Total current assets | 272,620 | 753,446 |
Digital assets | 1,054,302 | 0 |
Property and equipment, net | 42,975 | 50,154 |
Right-of-use assets | 73,597 | 85,538 |
Deposits and other assets | 15,615 | 8,024 |
Deferred tax assets, net | 6,503 | 19,409 |
Total assets | 1,465,612 | 916,571 |
Current liabilities: | ||
Accounts payable, accrued expenses, and operating lease liabilities | 45,119 | 33,919 |
Accrued compensation and employee benefits | 49,249 | 48,792 |
Deferred revenue and advance payments | 191,250 | 187,107 |
Total current liabilities | 285,618 | 269,818 |
Convertible senior notes, net | 486,366 | 0 |
Deferred revenue and advance payments | 14,662 | 4,344 |
Operating lease liabilities | 84,328 | 103,424 |
Other long-term liabilities | 33,382 | 30,400 |
Deferred tax liabilities | 8,211 | 26 |
Total liabilities | 912,567 | 408,012 |
Commitments and Contingencies | ||
Stockholders’ Equity | ||
Preferred stock undesignated, $0.001 par value; 5,000 shares authorized; no shares issued or outstanding | 0 | 0 |
Additional paid-in capital | 763,051 | 593,583 |
Treasury stock, at cost; 8,684 shares and 7,807 shares, respectively | (782,104) | (658,880) |
Accumulated other comprehensive loss | (3,885) | (9,651) |
Retained earnings | 575,965 | 583,489 |
Total stockholders’ equity | 553,045 | 508,559 |
Total liabilities and stockholders’ equity | 1,465,612 | 916,571 |
Class A | ||
Stockholders’ Equity | ||
Common stock | 16 | 16 |
Total stockholders’ equity | 16 | 16 |
Class B Convertible | ||
Stockholders’ Equity | ||
Common stock | 2 | 2 |
Total stockholders’ equity | $ 2 | $ 2 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares | Dec. 31, 2020 | Dec. 31, 2019 |
Preferred stock, par value | $ 0.001 | $ 0.001 |
Preferred stock, shares authorized | 5,000,000 | 5,000,000 |
Preferred stock, shares issued | 0 | 0 |
Preferred stock, shares outstanding | 0 | 0 |
Treasury stock, shares | 8,684,000 | 7,807,000 |
Class A | ||
Common stock, par value | $ 0.001 | $ 0.001 |
Common stock, shares authorized | 330,000,000 | 330,000,000 |
Common stock, shares issued | 16,307,000 | 15,888,000 |
Common stock, shares outstanding | 7,623,000 | 8,081,000 |
Class B Convertible | ||
Common stock, par value | $ 0.001 | $ 0.001 |
Common stock, shares authorized | 165,000,000 | 165,000,000 |
Common stock, shares issued | 1,964,000 | 2,035,000 |
Common stock, shares outstanding | 1,964,000 | 2,035,000 |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) shares in Thousands, $ in Thousands | 12 Months Ended | |||||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | ||||
Revenues: | ||||||
Total revenues | $ 480,735 | $ 486,327 | $ 497,638 | |||
Cost of revenues: | ||||||
Total cost of revenues | 91,055 | 99,974 | 99,499 | |||
Gross profit | 389,680 | 386,353 | 398,139 | |||
Operating expenses: | ||||||
Sales and marketing | 148,910 | 191,235 | 205,525 | |||
Research and development | 103,561 | 109,423 | 102,499 | |||
General and administrative | 80,136 | 86,697 | 86,134 | |||
Digital asset impairment losses | 70,698 | 0 | 0 | |||
Total operating expenses | 403,305 | 387,355 | 394,158 | |||
(Loss) income from operations | (13,625) | (1,002) | 3,981 | |||
Interest income, net | 710 | 10,909 | 11,855 | |||
Other (expense) income, net | (7,038) | 28,356 | 4,646 | |||
(Loss) income before income taxes | (19,953) | 38,263 | 20,482 | |||
(Benefit from) provision for income taxes | (12,429) | 3,908 | (2,019) | |||
Net (loss) income | $ (7,524) | $ 34,355 | $ 22,501 | |||
Basic (loss) earnings per share | [1] | $ (0.78) | [2] | $ 3.35 | [2] | $ 1.98 |
Weighted average shares outstanding used in computing basic (loss) earnings per share | 9,684 | 10,256 | 11,375 | |||
Diluted (loss) earnings per share | [1] | $ (0.78) | [2] | $ 3.33 | [2] | $ 1.97 |
Weighted average shares outstanding used in computing diluted (loss) earnings per share | 9,684 | 10,328 | 11,412 | |||
Product licenses | ||||||
Revenues: | ||||||
Total revenues | $ 86,743 | $ 87,471 | $ 88,057 | |||
Cost of revenues: | ||||||
Total cost of revenues | 2,293 | 2,131 | 4,864 | |||
Subscription services | ||||||
Revenues: | ||||||
Total revenues | 33,082 | 29,394 | 29,570 | |||
Cost of revenues: | ||||||
Total cost of revenues | 14,833 | 15,161 | 13,620 | |||
Total product licenses and subscription services | ||||||
Revenues: | ||||||
Total revenues | 119,825 | 116,865 | 117,627 | |||
Cost of revenues: | ||||||
Total cost of revenues | 17,126 | 17,292 | 18,484 | |||
Product support | ||||||
Revenues: | ||||||
Total revenues | 284,434 | 292,035 | 296,216 | |||
Cost of revenues: | ||||||
Total cost of revenues | 23,977 | 28,317 | 20,242 | |||
Other services | ||||||
Revenues: | ||||||
Total revenues | 76,476 | 77,427 | 83,795 | |||
Cost of revenues: | ||||||
Total cost of revenues | $ 49,952 | $ 54,365 | $ 60,773 | |||
[1] | Basic and fully diluted (loss) earnings per share for class A and class B common stock are the same. | |||||
[2] | The sum of the basic and diluted earnings (loss) per share for the four quarters may differ from annual earnings (loss) per share as the weighted average shares outstanding are computed independently for each of the quarters presented. |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE (LOSS) INCOME - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Statement Of Income And Comprehensive Income [Abstract] | |||
Net (loss) income | $ (7,524) | $ 34,355 | $ 22,501 |
Other comprehensive income (loss), net of applicable taxes: | |||
Foreign currency translation adjustment | 5,913 | (11) | (4,128) |
Unrealized (loss) gain on short-term investments | (147) | 577 | (430) |
Total other comprehensive income (loss) | 5,766 | 566 | (4,558) |
Comprehensive (loss) income | $ (1,758) | $ 34,921 | $ 17,943 |
CONSOLIDATED STATEMENTS OF STOC
CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY - USD ($) shares in Thousands, $ in Thousands | Total | Class A | Class B Convertible | Additional Paid-in Capital | Treasury Stock | Accumulated Other Comprehensive Income (Loss) | Retained Earnings |
Beginning Balance at Dec. 31, 2017 | $ 605,726 | $ 16 | $ 2 | $ 559,918 | $ (475,184) | $ (5,659) | $ 526,633 |
Beginning Balance (in shares) at Dec. 31, 2017 | 15,817 | 2,035 | (6,405) | ||||
Net (loss) income | 22,501 | $ 0 | $ 0 | 0 | $ 0 | 0 | 22,501 |
Other comprehensive income (loss) | (4,558) | 0 | 0 | 0 | 0 | (4,558) | 0 |
Issuance of class A common stock under stock option plans | 2,471 | $ 0 | $ 0 | 2,471 | $ 0 | 0 | 0 |
Issuance of class A common stock under stock option plans (in shares) | 20 | 0 | 0 | ||||
Purchases of treasury stock | (110,977) | $ 0 | $ 0 | 0 | $ (110,977) | 0 | 0 |
Purchases of treasury stock (in shares) | 0 | 0 | (880) | ||||
Share-based compensation expense | 14,568 | $ 0 | $ 0 | 14,568 | $ 0 | 0 | 0 |
Ending Balance at Dec. 31, 2018 | 529,731 | $ 16 | $ 2 | 576,957 | $ (586,161) | (10,217) | 549,134 |
Ending Balance (in shares) at Dec. 31, 2018 | 15,837 | 2,035 | (7,285) | ||||
Net (loss) income | 34,355 | $ 0 | $ 0 | 0 | $ 0 | 0 | 34,355 |
Other comprehensive income (loss) | 566 | 0 | 0 | 0 | 0 | 566 | 0 |
Issuance of class A common stock under stock option plans | 6,569 | $ 0 | $ 0 | 6,569 | $ 0 | 0 | 0 |
Issuance of class A common stock under stock option plans (in shares) | 51 | 0 | 0 | ||||
Purchases of treasury stock | (72,719) | $ 0 | $ 0 | 0 | $ (72,719) | 0 | 0 |
Purchases of treasury stock (in shares) | 0 | 0 | (522) | ||||
Share-based compensation expense | 10,057 | $ 0 | $ 0 | 10,057 | $ 0 | 0 | 0 |
Ending Balance at Dec. 31, 2019 | 508,559 | $ 16 | $ 2 | 593,583 | $ (658,880) | (9,651) | 583,489 |
Ending Balance (in shares) at Dec. 31, 2019 | 15,888 | 2,035 | (7,807) | ||||
Net (loss) income | (7,524) | $ 0 | $ 0 | 0 | $ 0 | 0 | (7,524) |
Other comprehensive income (loss) | 5,766 | 0 | 0 | 0 | 0 | 5,766 | 0 |
Conversion of class B to class A common stock | 0 | $ 0 | $ 0 | 0 | 0 | 0 | 0 |
Conversion of class B to class A common stock (in shares) | 71 | (71) | |||||
Issuance of class A common stock under stock option plans | 51,082 | $ 0 | $ 0 | 51,082 | $ 0 | 0 | 0 |
Issuance of class A common stock under stock option plans (in shares) | 348 | 0 | 0 | ||||
Purchases of treasury stock | (123,224) | $ 0 | $ 0 | 0 | $ (123,224) | 0 | 0 |
Purchases of treasury stock (in shares) | 0 | 0 | (877) | ||||
Share-based compensation expense | 10,576 | $ 0 | $ 0 | 10,576 | $ 0 | 0 | 0 |
Equity component of convertible senior notes, net of issuance cost and deferred tax liability | 107,810 | 0 | 0 | 107,810 | 0 | 0 | 0 |
Ending Balance at Dec. 31, 2020 | $ 553,045 | $ 16 | $ 2 | $ 763,051 | $ (782,104) | $ (3,885) | $ 575,965 |
Ending Balance (in shares) at Dec. 31, 2020 | 16,307 | 1,964 | (8,684) |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Operating activities: | |||
Net (loss) income | $ (7,524,000) | $ 34,355,000 | $ 22,501,000 |
Adjustments to reconcile net (loss) income to net cash provided by operating activities: | |||
Depreciation and amortization | 13,332,000 | 8,594,000 | 3,701,000 |
Reduction in carrying amount of right-of-use assets | 8,210,000 | 8,105,000 | 0 |
Credit losses and sales allowances | 2,732,000 | 124,000 | 1,912,000 |
Net realized (gain) loss on short-term investments | (94,000) | 41,000 | 153,000 |
Deferred taxes | (20,830,000) | (2,614,000) | (8,274,000) |
Release of liabilities for unrecognized tax benefits | 0 | (2,837,000) | 0 |
Share-based compensation expense | 11,153,000 | 10,209,000 | 14,636,000 |
Digital asset impairment losses | 70,698,000 | 0 | 0 |
Gain on partial lease termination | (2,820,000) | 0 | 0 |
Amortization of debt discount and issuance costs on convertible senior notes | 1,543,000 | 0 | 0 |
Changes in operating assets and liabilities: | |||
Accounts receivable | (774,000) | (3,672,000) | (8,357,000) |
Prepaid expenses and other current assets | 2,346,000 | 6,415,000 | (6,561,000) |
Deposits and other assets | 416,000 | 761,000 | (1,201,000) |
Accounts payable and accrued expenses | 9,445,000 | (7,321,000) | 3,378,000 |
Accrued compensation and employee benefits | (6,827,000) | (2,658,000) | 5,116,000 |
Deferred revenue and advance payments | (20,223,000) | 20,836,000 | (22,126,000) |
Operating lease liabilities | (11,171,000) | (8,620,000) | 0 |
Other long-term liabilities | 4,007,000 | (851,000) | 5,749,000 |
Net cash provided by operating activities | 53,619,000 | 60,867,000 | 10,627,000 |
Investing activities: | |||
Purchases of digital assets | (1,125,000,000) | 0 | 0 |
Proceeds from redemption of short-term investments | 119,886,000 | 684,356,000 | 491,800,000 |
Purchases of property and equipment | (3,651,000) | (10,182,000) | (6,846,000) |
Purchases of short-term investments | (9,928,000) | (320,487,000) | (694,018,000) |
Net cash (used in) provided by investing activities | (1,018,693,000) | 353,687,000 | (209,064,000) |
Financing activities: | |||
Proceeds from convertible senior notes classified as debt | 496,473,000 | 0 | 0 |
Proceeds from convertible senior notes classified as equity | 153,527,000 | 0 | 0 |
Issuance costs paid for convertible senior notes | (14,625,000) | 0 | 0 |
Proceeds from sale of class A common stock under exercise of employee stock options | 51,082,000 | 6,569,000 | 2,471,000 |
Purchases of treasury stock | (123,224,000) | (72,719,000) | (110,977,000) |
Payments on capital lease obligations and other financing arrangements prior to the adoption of ASU 2016-02 | 0 | 0 | (9,000) |
Net cash provided by (used in) financing activities | 563,233,000 | (66,150,000) | (108,515,000) |
Effect of foreign exchange rate changes on cash, cash equivalents, and restricted cash | 4,784,000 | (1,374,000) | (3,444,000) |
Net (decrease) increase in cash, cash equivalents, and restricted cash | (397,057,000) | 347,030,000 | (310,396,000) |
Cash, cash equivalents, and restricted cash, beginning of year | 457,816,000 | 110,786,000 | 421,182,000 |
Cash, cash equivalents, and restricted cash, end of year | 60,759,000 | 457,816,000 | 110,786,000 |
Supplemental disclosure of cash flow information: | |||
Cash paid during the year for income taxes, net of tax refunds | $ 6,803,000 | $ 5,911,000 | $ 13,214,000 |
Organization
Organization | 12 Months Ended |
Dec. 31, 2020 | |
Accounting Policies [Abstract] | |
Organization | (1) Organization MicroStrategy pursues two corporate strategies in the operation of its business. One strategy is to grow our enterprise analytics software business and the other strategy is to acquire and hold bitcoin. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2020 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | (2) Summary of Significant Accounting Policies (a) Basis of Presentation The accompanying Consolidated Financial Statements include the accounts of the Company and its subsidiaries. All significant intercompany accounts and transactions have been eliminated in consolidation. Certain amounts in the Consolidated Statement of Cash Flows for the year ended December 31, 2019 have been reclassified to conform to current year presentation. In particular, reductions in the carrying amount of right-of-use (“ROU”) assets have been reclassified from “Depreciation and amortization” to “Reduction in carrying amount of right-of-use assets” in operating activities. As discussed in Note 3, Recent Accounting Standards, to the Consolidated Financial Statements, the Company adopted Accounting Standards Update No. 2016-13, Financial Instruments – Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments In addition, the Company previously adopted Accounting Standards Update No. 2016-02, Leases (Topic 842) Revenue from Contracts with Customers (Topic 606) (b) Use of Estimates The preparation of the Consolidated Financial Statements, in conformity with GAAP, requires management to make estimates and judgments that affect the amounts reported in the Consolidated Financial Statements and accompanying notes. On an on-going basis, the Company evaluates its estimates, including, but not limited to, those related to revenue recognition, allowance for doubtful accounts, investments, fixed assets, digital assets, leases, debt, share-based compensation, income taxes, including the carrying value of deferred tax assets, and litigation and contingencies, including liabilities that the Company deems not probable of assertion. The Company bases its estimates on historical experience and on various other assumptions that are believed to be reasonable under the circumstances, the results of which form the basis for making judgments about the carrying value of assets, liabilities, and equity that are not readily apparent from other sources. Actual results and outcomes could differ from these estimates and assumptions. (c) Fair Value Measurements The Company measures certain assets and liabilities at fair value on a recurring or nonrecurring basis. Fair value is defined as the price that is expected to be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The Company uses a three-level hierarchy that prioritizes fair value measurements based on the types of inputs used for the various valuation techniques. The three levels of the fair value hierarchy are described below: Level 1: Quoted (unadjusted) prices in active markets that are accessible at the measurement date for identical, unrestricted assets or liabilities. Level 2: Inputs other than quoted prices that are either directly or indirectly observable, such as quoted prices in active markets for similar assets or liabilities, quoted prices for identical or similar assets or liabilities in inactive markets, or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities. Level 3: Inputs that are generally unobservable, supported by little or no market activity, and typically reflect management’s estimates of assumptions that market participants would use in pricing the asset or liability. The categorization of an asset or liability within the fair value hierarchy is based on the lowest level of input that is significant to the fair value measurement. The valuation techniques used by the Company when measuring fair value maximize the use of observable inputs and minimize the use of unobservable inputs. The Company also estimates the fair value of cash and cash equivalents, restricted cash, accounts receivable, accounts payable and accrued expenses, and accrued compensation and employee benefits. The Company considers the carrying value of these instruments in the Consolidated Financial Statements to approximate fair value due to their short maturities. (d) Cash and Cash Equivalents and Restricted Cash Cash equivalents may include bank demand deposits, money market instruments, certificates of deposit, U.S. Treasury securities, and equivalent funds. The Company generally considers all highly liquid investments with an original maturity of three months or less to be cash equivalents. Restricted cash consists of cash balances restricted in use by contractual obligations with third parties. (e) Short-term Investments The Company has periodically invested a portion of its cash in short-term investment instruments. All highly liquid investments with stated maturity dates between three months and one year from the purchase date are classified as short-term investments. The Company determines the appropriate classification of its short-term investments at the time of purchase and reassesses the appropriateness of the classification at each reporting date. Prior to their liquidation, all of the Company’s short-term investments were in U.S. Treasury securities. All short-term investments have been classified as available-for-sale and are reported at fair value within “Short-term investments” on the accompanying Consolidated Balance Sheets. The fair value of the Company’s short-term investments is determined based on quoted market prices in active markets for identical securities (Level 1 inputs). Premiums and discounts related to the Company’s short-term investments are amortized over the life of the investment and recorded in earnings. Each reporting period, the Company determines the amount of unrealized holding gains and losses on each individual security by comparing the fair value to the amortized cost. Unrealized holding gains and unrealized holding losses that are not a result of a credit loss are reported in other comprehensive income (loss) until realized. Beginning January 1, 2020, unrealized holding losses that are a result of a credit loss are recorded in earnings, with the establishment of an allowance for credit losses. As of December 31, 2020, the Company did not hold any short-term investments. (f) Credit Losses on Accounts Receivable The Company maintains an allowance for credit losses on its accounts receivable balances, which represents its best estimate of current expected credit losses over the contractual life of the accounts receivable. Beginning January 1, 2020, when evaluating the adequacy of its allowance for credit losses each reporting period, the Company analyzes accounts receivable balances with similar risk characteristics on a collective basis, considering factors such as the aging of receivable balances, payment terms, geographic location, historical loss experience, current information, and future expectations. Each reporting period, the Company reassesses whether any accounts receivable no longer share similar risk characteristics and should instead be evaluated as part of another pool or on an individual basis. Changes to the allowance for credit losses are adjusted through credit loss expense, which is presented within “General and administrative” operating expenses in the Consolidated Statements of Operations. (g) Digital Assets During the second half of 2020, the Company purchased an aggregate of $1.125 billion in digital assets, comprised solely of bitcoin. The Company accounts for its digital assets as indefinite-lived intangible assets in accordance with Accounting Standards Codification (“ASC”) 350, Intangibles—Goodwill and Other The Company determines the fair value of its bitcoin on a nonrecurring basis in accordance with ASC 820, Fair Value Measurement Impairment losses are recognized as “Digital asset impairment losses” in the Company’s Consolidated Statements of Operations in the period in which the impairment is identified. The impaired digital assets are written down to their fair value at the time of impairment and this new cost basis will not be adjusted upward for any subsequent increase in fair value. Gains (if any) are not recorded until realized upon sale, at which point they would be presented net of any impairment losses in the Company’s Consolidated Statements of Operations. In determining the gain to be recognized upon sale, the Company calculates the difference between the sales price and carrying value of the specific bitcoins sold immediately prior to sale. See Note 5, Digital Assets, to the Consolidated Financial Statements for further information regarding the Company’s purchases of digital assets. (h) Property and Equipment Property and equipment are stated at cost, net of accumulated depreciation. Depreciation is computed using the straight-line method over the estimated useful lives of the assets, as follows: three years for computer equipment and purchased software; five years for office equipment; 10 years for office furniture; and 19 years for the Company’s corporate aircraft, which has an estimated salvage value of 21%. Leasehold improvements are amortized using the straight-line method over the estimated useful lives of the improvements or the term of the lease, whichever is shorter. The Company periodically evaluates the appropriateness of the estimated useful lives and salvage value of all property and equipment. Any change in the estimated useful life or salvage value is treated as a change in estimate and accounted for prospectively in the period of change. Expenditures for maintenance and repairs are charged to expense as incurred, except for certain costs related to the aircraft. The costs of normal, recurring, or periodic repairs and maintenance activities related to the aircraft are expensed as incurred. The cost of planned major maintenance activities (“PMMA”) may be treated differently because those activities may involve the acquisition of additional aircraft components or the replacement of existing aircraft components. PMMA are performed periodically based on passage of time and the use of the aircraft. The classification of a maintenance activity as part of PMMA requires judgment and can affect the amount of expense recognized in any particular period. The cost of each PMMA is expected to be capitalized and amortized over the period until the next scheduled PMMA. There have been no PMMA to date. When assets are retired or sold, the capitalized cost and related accumulated depreciation are removed from the property and equipment accounts and any resulting gain or loss is recognized in the results of operations. Eligible internal-use software development costs are capitalized subsequent to the completion of the preliminary project stage. Such costs include external direct material and service costs, employee payroll, and payroll-related costs. After all substantial testing and deployment is completed and the software is ready for its intended use, capitalization ceases and internal-use software development costs are amortized using the straight-line method over the estimated useful life of the software, generally three years. The Company reviews long-lived assets for impairment whenever events or changes in business circumstances indicate that the carrying value of the assets may not be fully recoverable or that the useful lives of these assets are no longer appropriate. Each impairment test is based on a comparison of the undiscounted cash flows to the recorded value of the asset. If an asset is impaired, the asset is written down by the amount by which the carrying value of the asset exceeds the related fair value of the asset. (i) Leases The Company adopted ASU 2016-02 effective as of January 1, 2019. Under ASU 2016-02, a lease is a contract, or part of a contract, that conveys the right to both (i) obtain economic benefits from and (ii) direct the use of an identified asset for a period of time in exchange for consideration. The Company evaluates its contracts to determine if they contain a lease and classifies any lease components identified as an operating or finance lease. For each lease component, the Company recognizes a right-of-use (“ROU”) asset and a lease liability. ROU assets and lease liabilities are presented separately for operating and finance leases; however, the Company currently has no material finance leases. The Company’s operating leases are primarily related to office space in the United States and foreign locations. In a contract that contains a lease, a component is an item or activity that transfers a good or service to the lessee. Such contracts may be comprised of lease components, non-lease components, and elements that are not components. Each lease component represents a lessee’s right to use an underlying asset in the contract if the lessee can benefit from the right of use of the asset either on its own or together with other readily available resources and if the right of use is neither highly dependent nor highly interrelated with other rights of use. Non-lease components include items such as common area maintenance and utilities provided by the lessor. The Company has elected the practical expedient to not separate lease components from non-lease components for office space, which is the Company’s only material underlying asset class. For each lease within this asset class, the non-lease components and related lease components are accounted for as a single lease component. Items or activities that do not transfer goods or services to the lessee, such as administrative tasks to set up the contract and reimbursement or payment of lessor costs, are not components of the contract and therefore no contract consideration is allocated to such items or activities. Consideration in the contract is comprised of any fixed payments and variable payments that depend on an index or rate. Payments in the Company’s operating lease arrangements are typically comprised of base office rent and parking fees. Costs related to the Company’s non-lease components, as described above, are generally variable and do not depend on an index or rate and are therefore excluded from the contract consideration allocated to the lease components. The Company’s operating lease arrangements generally do not contain any payments related to items or activities that are not components. Operating lease liabilities are initially and subsequently measured at the present value of unpaid lease payments, discounted at the discount rate of the lease. Operating lease ROU assets are initially measured as the sum of the initial lease liability, any initial direct costs incurred, and any prepaid lease payments, less any lease incentives received. The ROU asset is amortized over the term of the lease. The amortization of operating lease ROU assets is included in “Reduction in carrying amount of right-of-use assets” within the operating activities section of the Consolidated Statements of Cash Flows. A single lease expense is recorded within operating expenses in the Consolidated Statements of Operations on a straight-line basis over the lease term. Variable lease payments that are not included in the measurement of the lease liability are recognized in the period when the obligations for those payments are incurred. In the Company’s lease agreements, these variable payments typically include certain taxes, utilities, and maintenance costs, and other fees. The Company uses its incremental borrowing rate as the discount rate for all of its leases, as the rate implicit in the lease is not readily determinable in any of its lease contracts. In order to estimate a collateralized borrowing rate curve, the Company first estimates a synthetic credit rating and then applies modeling methodologies to an unsecured borrowing rate curve. In determining the incremental borrowing rate of each lease, the Company uses a centralized treasury approach and considers the currency of the contract, the economic environment in which the lease exists, and the term of the lease. The Company does not recognize lease liabilities or ROU assets for any short-term leases with a non-cancellable lease term of 12 months or less. Instead, the lease payments for these short-term leases are expensed on a straight-line basis over the lease term, and any variable payments are recognized in the period when the obligations for those payments are incurred. The Company believes that, using this methodology, the expense recorded reasonably reflects the Company’s short-term lease commitments. (j) Software Development Costs The Company did not capitalize any software development costs during the years ended December 31, 2020, 2019, and 2018. Due to the pace of the Company’s software development efforts and frequency of its software releases, the Company’s software development costs are expensed as incurred within “Research and development” in the Consolidated Statements of Operations. Amortization expenses related to previously capitalized software development costs were $2.5 million for the year ended December 31, 2018. No amortization expense was recorded for the years ended December 31, 2020 and 2019, as all previously capitalized software development costs were fully amortized. In previous periods, software development costs were expensed as incurred until technological feasibility had been established, at which time such costs were capitalized until the software was available for general release to customers. Capitalized software development costs included direct labor costs and fringe benefit costs attributed to programmers, software engineers, and quality control and field certifiers working on the software after it reached technological feasibility, but before it was generally available to customers for sale. Technological feasibility was considered to be achieved when a software design and working model of the software had been completed. Capitalized software development costs were typically amortized on a straight-line basis over the estimated software life of three years. The amortization expense was recorded within cost of product licenses revenues in the Consolidated Statements of Operations. (k) Loss Contingencies and Legal Costs The Company accrues loss contingencies that are believed to be probable and can be reasonably estimated. As events evolve during the administration and litigation process and additional information becomes known, the Company reassesses its estimates related to loss contingencies. Legal costs are expensed in the period in which the costs are incurred. (l) Deferred Revenue and Advance Payments Deferred revenue and advance payments represent amounts received or due from customers in advance of the Company transferring its software or services to the customer under an enforceable contract. In the case of multi-year service contracts, the Company generally does not invoice more than one year in advance of services and does not record deferred revenue for amounts that have not been invoiced and that require an additional contract. Revenue is subsequently recognized in the period(s) in which control of the software or services is transferred to the customer. Deferred revenue is comprised of deferred product licenses and subscription services, product support, or other services revenue based on the transaction price allocated to the specific performance obligation in the contract with the customer. (m) Convertible Debt Arrangement As discussed in Note 9, Convertible Senior Notes, to the Consolidated Financial Statements, the Company issued convertible senior notes in December 2020. As the notes contain conversion features, the Company must separate the debt and equity components of the notes. The carrying amount of the liability component is determined by measuring the fair value of a similar debt instrument without any associated conversion features at the time of issuance and the carrying amount of the equity component is determined by deducting the fair value of the liability component from the initial proceeds of the notes. The Company also allocates issuance costs associated with the offering between debt and equity based on their relative carrying values at the time of issuance. Such issuance costs are taken as a direct reduction to the debt and equity components. Both the difference between the principal and the liability component’s initial carrying value and the issuance costs allocated to the debt component are amortized to interest expense using the effective interest method over the expected term of the notes. In determining the fair value of a similar debt instrument without any associated conversion features, the Company estimated a nonconvertible debt borrowing rate at the time of issuance using a blend of different methodologies, which considered Level 2 inputs such as observable market prices of the Company’s debt and class A common stock, the Company’s historical and implied class A common stock volatility, a synthetic credit rating consistent with that utilized for determining the incremental borrowing rate for the Company’s accounting of leasing arrangements, and analysis of similar convertible debt issuances and their equivalent nonconvertible debt yields. (n) Revenue Recognition The Company recognizes revenue using a five-step model: (i) Identifying the contract(s) with a customer, (ii) Identifying the performance obligation(s), (iii) Determining the transaction price, (iv) Allocating the transaction price to the performance obligations in the contract, and (v) Recognizing revenue when, or as, the Company satisfies a performance obligation. The Company has elected to exclude taxes assessed by government authorities in determining the transaction price, and therefore revenue is recognized net of taxes collected from customers. Performance Obligations and Timing of Revenue Recognition The Company primarily sells goods and services that fall into the categories discussed below. Each category contains one or more performance obligations that are either (i) capable of being distinct (i.e., the customer can benefit from the good or service on its own or together with readily available resources, including those purchased separately from the Company) and distinct within the context of the contract (i.e., separately identifiable from other promises in the contract) or (ii) a series of distinct goods or services that are substantially the same and have the same pattern of transfer to the customer. Aside from the Company’s term and perpetual product licenses, which are delivered at a point in time, the majority of the Company’s services are delivered over time. Product Licenses The Company sells different types of business intelligence software, licensed on a term or perpetual basis and installed either on premises or on a public cloud that is procured and managed by the customer. Although product licenses are sold with product support, the software is fully functional at the outset of the arrangement and is considered a distinct performance obligation. Revenue from product license sales is recognized when control of the license is transferred to the customer, which is the later of delivery or commencement of the license term. The Company may also sell through resellers and OEMs who purchase the Company’s software for resale. In reseller arrangements, revenue is recognized when control of the license is transferred to the end user. In OEM arrangements, revenue is recognized when control of the license is transferred to the OEM. Subscription Services The Company also sells access to its software through MCE, a cloud subscription service, wherein customers access the software through a cloud environment that the Company manages on behalf of the customer. Control of the software itself does not transfer to the customer under this arrangement and is not considered a separate performance obligation. Cloud subscriptions are regularly sold on a standalone basis and include technical support, monitoring, backups, updates, and quarterly service reviews. Product Support In all product license transactions, customers are required to purchase a standard product support package and may also purchase a premium product support package for a fixed annual fee. All product support packages include both technical support and when-and-if-available software upgrades, which are treated as a single performance obligation as they are considered a series of distinct services that are substantially the same and have the same duration and measure of progress. Revenue from product support is recognized on a straight-line basis over the contract period, which is the period over which the customer has continuous access to product support. Consulting Services The Company sells consulting services to help customers plan and execute deployment of the Company’s software. Customers are not required to use consulting services to fully benefit from the software. Consulting services are regularly sold on a standalone basis and either (i) prepaid upfront or (ii) sold on a time and materials basis. Consulting arrangements are each considered separate performance obligations because they do not integrate with each other or with other offerings to deliver a combined output to the customer, do not modify or customize (or are not modified or customized by) each other or other offerings, and do not affect the customer’s ability to use the other consulting services or the Company’s other offerings. Revenue under consulting arrangements is recognized over time as services are delivered. For time and materials-based consulting arrangements, the Company has elected the practical expedient of recognizing revenue upon invoicing since the invoiced amount corresponds directly to the value of the Company’s service to date. Education Services The Company sells various education and training services to its customers. Education services are sold on a standalone basis under two different types of arrangements: (i) annual subscriptions to live and on-demand training courses and (ii) custom courses purchased on an hourly basis. Education arrangements are each considered separate performance obligations because they do not integrate with each other or with other offerings to deliver a combined output to the customer, do not modify or customize (or are not modified or customized by) each other or other offerings, and do not affect the customer’s ability to use the other education services or the Company’s other offerings. Revenue on annual subscriptions is recognized on a straight-line basis over the contract period, which is the period over which the customer has continuous access to the training courses. Revenue on custom courses is recognized on a time and materials basis as the services are delivered. See Note 16, Segment Information, to the Consolidated Financial Statements for information regarding total revenues by geographic region. Estimates and Judgments The Company makes estimates and judgments to allocate the transaction price based on an observable or estimated SSP. The Company also makes estimates and judgements with respect to capitalizing incremental costs to obtain a customer contract and determining the subsequent amortization period. These estimates and judgments are discussed further below. Determining the Transaction Price The transaction price includes both fixed and variable consideration. Variable consideration is included in the transaction price to the extent it is probable that a significant reversal will not occur. The amount of variable consideration excluded from the transaction price was not material for the years ended December 31, 2020, 2019, and 2018. The Company’s estimates of variable consideration are also subject to subsequent true-up adjustments and may result in changes to its transaction prices. Such true-up adjustments have not been and are not expected to be material. The Company has the following sources of variable consideration: (i) Performance penalties – Subscription services and product support arrangements generally contain performance response time guarantees. For subscription services arrangements, the Company estimates variable consideration using a portfolio approach because performance penalties are tied to standard up-time requirements. For product support arrangements, the Company estimates variable consideration on a contract basis because such arrangements are customer-specific. For both subscription services and product support arrangements, the Company uses an expected value approach to estimate variable consideration based on historical business practices and current and future performance expectations to determine the likelihood of incurring penalties. (ii) Extended payment terms – The Company’s standard payment terms are generally within 180 days of invoicing. If extended payment terms are granted to customers, those terms generally do not exceed one year. For contracts with extended payment terms, the Company estimates variable consideration on a contract basis because such estimates are customer-specific and uses an expected value approach to analyze historical business experience on a customer-by-customer basis to determine the likelihood that extended payment terms lead to an implied price concession. (iii) Sales and usage-based royalties – Certain product license arrangements include sales or usage-based royalties, covering both product license and product support. In these arrangements, the Company uses an expected value approach to estimate and recognize revenue for royalty sales each period, utilizing historical data on a contract-by-contract basis. True-up adjustments are recorded in subsequent periods when royalty reporting is received from the OEMs. The Company provides a standard software assurance warranty to repair, replace, or refund software that does not perform in accordance with documentation. The standard software assurance warranty period is generally less than one year. Assurance warranty claims were not material for the years ended December 31, 2020, 2019, and 2018. The Company does not adjust the transaction price for significant financing components where the time period between cash payment and performance is one year or less. However, there are circumstances where the timing between cash payment and performance may exceed one year. These circumstances generally involve prepaid multi-year product support and subscription services arrangements where the customer determines when the service is utilized (e.g., when to request on-call support services or when to use and access the software in the cloud). In these circumstances, the Company has determined no significant financing component exists because the customer controls when to utilize the service and because there are significant business purposes behind the timing difference between payment and performance (e.g., maximizing profit in the case of product support services and ensuring collectability in the case of subscription services). Allocating the Transaction Price Based on Standalone Selling Prices (SSP) The Company allocates the transaction price to each performance obligation in a contract based on its relative SSP. The SSP is the price, or estimated price, of the software or service when sold on a standalone basis at contract inception. In circumstances where SSP is not directly observable, the Company estimates SSP using the following methodologies: (i) Product licenses – Product licenses are not sold on a standalone basis and pricing is highly variable. The Company establishes SSP of product licenses using a residual approach after first establishing the SSP of standard product support. Standard product support is sold on a standalone basis within a narrow range of the stated net license fee, and because an economic relationship exists between product licenses and standard product support, the Company has concluded that the residual method to estimate SSP of product licenses sold on both a perpetual and term basis is a fair allocation of the transaction price. (ii) Subscription services – Given the highly variable selling price of subscription services, the Company establishes the SSP of its subscription services arrangements using a similar residual approach after first establishing the SSP of consulting and education services to the extent they are included in the arrangement. The Company has concluded that the residual method to estimate SSP of its subscription services is a fair allocation of the transaction price. (iii) Standard product support – The Company establishes SSP of standard product support as a percentage of the stated net license fee, given such pricing is cons |
Recent Accounting Standards
Recent Accounting Standards | 12 Months Ended |
Dec. 31, 2020 | |
Accounting Changes And Error Corrections [Abstract] | |
Recent Accounting Standards | (3) Recent Accounting Standards Credit losses The Company adopted ASU 2016-13 effective as of January 1, 2020. Under ASU 2016-13, the Company applies a current expected credit loss (“CECL”) impairment model to its trade accounts receivable, in which lifetime expected credit losses on such financial assets are measured and recognized at each reporting date based on historical, current, and forecasted information. Under the CECL model, trade accounts receivable with similar risk characteristics are analyzed on a collective (pooled) basis. ASU 2016-13 also changed the impairment accounting for available-for-sale debt securities, requiring credit losses to be recorded through an allowance for credit losses rather than as a reduction in the amortized cost basis of the securities. Impairment due to factors other than credit loss will continue to be recorded through other comprehensive income (loss). Since adoption of this guidance, all of the Company’s available-for-sale debt securities have consisted of U.S. Treasury securities with stated maturity dates between three months and one year from the purchase date and none of these investments have been impaired at periods’ end. As of December 31, 2020, the Company did not hold any short-term investments. The adoption of this guidance did not have a material impact on the Company’s consolidated financial position, results of operations, or cash flows. No cumulative-effect adjustment to retained earnings was made. Cloud computing arrangements The Company adopted Accounting Standards Update No. 2018-15, Intangibles – Goodwill and Other – Internal-Use Software (Subtopic 350-40): Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract Lease accounting The Company adopted ASU 2016-02 effective as of January 1, 2019 and elected the transition option to apply the new lease requirements as of the adoption date without restating comparative periods presented in its Consolidated Financial Statements. Additionally, the Company elected the package of practical expedients described in ASU 2016-02, which includes not reassessing the following: (i) lease classification of existing leases, (ii) whether expired or existing contracts contain leases, and (iii) initial direct costs for existing leases. Upon adoption of ASU 2016-02, the Company recognized ROU assets of $88.8 million, total lease liabilities of $116.9 million, reductions in total deferred rent of $28.5 million, and reductions in prepaid expenses of $0.4 million in its 2019 beginning balances. All adjustments relate to the Company’s operating leases; the Company does not have any material leases that are classified as finance leases. There was no cumulative effect adjustment to the Company’s 2019 beginning retained earnings balance as the Company did not have material unamortized initial direct costs. Beginning in 2019, the Company presents the amortization of its operating ROU assets and the change in its operating lease liabilities within the operating activities section of its Consolidated Statements of Cash Flows. The adoption of ASU 2016-02 did not have a material impact on the Company’s Consolidated Statements of Operations. Revenue from contracts with customers The Company adopted ASU 2014-09 effective as of January 1, 2018, using the full retrospective method. In adopting ASU 2014-09, the Company has made the following significant changes in accounting principles: (i) Timing of revenue recognition for term license sales. (ii) Timing of revenue recognition for sales to channel partners (iii) Allocating the transaction price to the performance obligations in the contract. element arrangements. Whereas VSOE of product support was previously based on the optional stated renewal fee within the contract, SSP of product support under ASU 2014-09 is established as a range within each geographic region as discussed in Note 2, Summary of Significant Accounting Policies, to the Consolidated Financial Statements. The impact from SSP-based allocations was not material to the Company’s prior or current period Consolidated Financial Statements and is not expected to be material in future periods. (iv) Material rights. (v) Presentation of accounts receivable, contract assets, and contract liabilities (deferred revenue). (vi) Deferral of incremental direct costs to obtaining a contract with a customer. Intra-entity asset transfers In October 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update No. 2016-16, Income Taxes (Topic 740): Intra-Entity Transfers of Assets Other Than Inventory Accounting for Income Taxes In December 2019, the FASB issued Accounting Standards Update No. 2019-12, Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes Accounting for Convertible Instruments In August 2020, the FASB issued Accounting Standards Update No. 2020-06, Debt – Debt with Conversion and Other Options (Subtopic 470-20) and Derivatives and Hedging – Contracts in Entity’s Own Equity (Subtopic 815-40): Accounting for Convertible Instruments and Contracts in an Entity’s Own Equity Upon adoption of ASU 2020-06, the Company expects the following significant accounting changes: (i) Elimination of the cash conversion model . Under current GAAP, instruments that may be partially settled in cash are in the scope of the “cash conversion” model, which requires the conversion feature to be separately reported in equity. Under ASU 2020-06, the Company will no longer be required to separately record the conversion feature in equity and instead will account for the convertible instrument as a single unit of debt, thereby eliminating the subsequent amortization of the debt discount as interest expense. Similarly, the portion of issuance costs previously allocated to equity under current GAAP will be reclassified to debt and amortized as interest expense. As a result of these changes, the net deferred tax liability associated with the previous equity components will also be reversed upon adoption. (ii) Use of the “if-converted” method for calculating diluted earnings per share . Under current GAAP, the Company utilizes the “treasury stock” method for computing the diluted earnings per share impact of its convertible senior notes, as its current intention is to settle the principal amount of the notes with cash. Under the treasury stock method, only the excess of the average stock price of the Company’s class A common stock for the reporting period over the conversion price is utilized in determining the impact to the diluted earnings per share denominator. Under ASU 2020-06, the Company may no longer rebut the presumption of share settlement for its convertible instrument and therefore may no longer utilize the treasury stock method. Instead, the Company will be required to use the if-converted method, which requires all underlying shares be included in the denominator regardless of the average stock price for the reporting period, in addition to adding back to the numerator the related interest expense from the stated coupon and the amortization of issuance costs, if dilutive. The Company currently estimates the adoption of ASU 2020-06 will impact the opening consolidated balance sheet as follows (in thousands): Consolidated Balance Sheet December 31, 2020 As Reported Effect of the Adoption of ASU 2020-06 January 1, 2021 As Adjusted Deferred tax liabilities (assets) 8,211 (41,693 ) (33,482 ) Convertible senior notes, net 486,366 148,546 634,912 Additional paid-in-capital 763,051 (107,810 ) 655,241 Retained earnings 575,965 957 576,922 |
Short-term Investments
Short-term Investments | 12 Months Ended |
Dec. 31, 2020 | |
Short Term Investments [Abstract] | |
Short-term Investments | (4) Short-term Investments As of December 31, 2020 , the Company did no t hold any short-term investment instruments. The amortized cost and fair value of available-for-sale investments at December 31, 2019 were $ 108.8 million and $ 108.9 million, respectively. The gross unrecognized holding gains accumulated in other comprehensive loss were not material as of December 31, 2019. As of December 31, 2019, none of the Company’s available-for-sale investments were in unrealized loss positions. |
Digital Assets
Digital Assets | 12 Months Ended |
Dec. 31, 2020 | |
Intangible Assets Net Excluding Goodwill [Abstract] | |
Digital Assets | (5) Digital Assets During the year ended December 31, 2020, the Company purchased approximately 70,469 bitcoins for $1.125 billion in cash, including cash from the net proceeds related to the liquidation of short-term investments and the issuance of its convertible senior notes. During the year ended December 31, 2020, the Company incurred $70.7 million of impairment losses on its bitcoin. As of December 31, 2020, the carrying value of the Company’s bitcoin was $1.054 billion, which reflects cumulative impairments of $70.7 million. The carrying value represents the lowest fair value of the bitcoins at any time since their acquisition. The Company did not sell any of its bitcoins during the year ended December 31, 2020. |
Contract Balances
Contract Balances | 12 Months Ended |
Dec. 31, 2020 | |
Contract With Customer Asset And Liability [Abstract] | |
Contract Balances | (6) Contract Balances The Company invoices its customers in accordance with billing schedules established in each contract. The Company’s rights to consideration from customers are presented separately in the Company’s Consolidated Balance Sheets depending on whether those rights are conditional or unconditional. The Company presents unconditional rights to consideration from customers within “Accounts receivable, net” in its Consolidated Balance Sheets. All of the Company’s contracts are generally non-cancellable and/or non-refundable, and therefore an unconditional right generally exists when the customer is billed or amounts are billable per the contract. Accounts receivable (in thousands) consisted of the following, as of: December 31, 2020 2019 Billed and billable $ 200,221 $ 165,153 Less: allowance for credit losses (2,760 ) (1,637 ) Accounts receivable, net $ 197,461 $ 163,516 Changes in the allowance for credit losses were not material for the year ended December 31, 2020. In estimating its allowance for credit losses as of December 31, 2020, the Company considered the impact from the pandemic caused by a novel strain of coronavirus (“COVID-19”) and established additional risk pools and reserves relating to customers in certain geographic areas and industries, in addition to separately assessing the reserves for certain customers that have been granted extended payment terms. Rights to consideration that are subject to a condition other than the passage of time are considered contract assets and presented within “Prepaid expenses and other current assets” in the Consolidated Balance Sheets since the rights to consideration are expected to become unconditional and transfer to accounts receivable within one year. Contract assets generally consist of accrued sales and usage-based royalty revenue. In these arrangements, consideration is not billed or billable until the royalty reporting is received, generally in the subsequent quarter, at which time the contract asset transfers to accounts receivable and a true-up adjustment is recorded to revenue. These true-up adjustments are generally not material. During the years ended December 31, 2020, 2019, and 2018, there were no significant impairments to the Company’s contract assets, nor were there any significant changes in the timing of the Company’s contract assets being reclassified to accounts receivable. Contract assets included in “Prepaid expenses and other current assets” in the Consolidated Balance Sheets consisted of $1.1 million and $1.2 million in accrued sales and usage-based royalty revenue as of December 31, 2020 and 2019, respectively. Contract liabilities are amounts received or due from customers in advance of the Company transferring the software or services to the customer. In the case of multi-year service contracts arrangements, the Company generally does not invoice more than one year in advance of services and does not record deferred revenue for amounts that have not been invoiced and that require an additional contract. Revenue is subsequently recognized in the period(s) in which control of the software or services is transferred to the customer. The Company’s contract liabilities are presented as either current or non-current “Deferred revenue and advance payments” in the Consolidated Balance Sheets, depending on whether the software or services are expected to be transferred to the customer within the next year. The Company’s “Accounts receivable, net” and “Deferred revenue and advance payments” balances in the Consolidated Balance Sheets include unpaid amounts related to contracts under which the Company has an enforceable right to invoice the customer for non-cancellable and/or non-refundable software and services. Changes in accounts receivable and changes in deferred revenue and advance payments are presented net of these unpaid amounts in “Operating activities” in the Consolidated Statements of Cash Flows. Deferred revenue and advance payments (in thousands) from customers consisted of the following, as of: December 31, 2020 2019 Current: Deferred product licenses revenue $ 1,495 $ 481 Deferred subscription services revenue 26,258 16,561 Deferred product support revenue 156,216 161,670 Deferred other services revenue 7,281 8,395 Total current deferred revenue and advance payments $ 191,250 $ 187,107 Non-current: Deferred product licenses revenue $ 139 $ 293 Deferred subscription services revenue 8,758 97 Deferred product support revenue 5,055 3,417 Deferred other services revenue 710 537 Total non-current deferred revenue and advance payments $ 14,662 $ 4,344 During the years ended December 31, 2020, 2019, and 2018, the Company recognized revenues of $182.6 million, $174.7 million, and $194.6 million, respectively, from amounts included in the total deferred revenue and advance payments balances at the beginning of the respective year. For the years ended December 31, 2020, 2019, and 2018, there were no significant changes in the timing of revenue recognition on the Company’s deferred balances. As of December 31, 2020, the Company had an aggregate transaction price of $205.9 million allocated to remaining performance obligations related to product support, subscription services, other services, and, in limited cases, product licenses contracts. The Company expects to recognize $191.3 million within the next 12 months and $14.7 million thereafter |
Property and Equipment
Property and Equipment | 12 Months Ended |
Dec. 31, 2020 | |
Property Plant And Equipment [Abstract] | |
Property and Equipment | (7) Property and Equipment Property and equipment (in thousands) consisted of the following, as of: December 31, 2020 2019 Transportation equipment $ 48,645 $ 48,645 Computer equipment and purchased software 61,299 58,920 Furniture and equipment 10,460 10,464 Leasehold improvements 31,403 31,023 Internally developed software 9,917 9,849 Property and equipment, gross 161,724 158,901 Less: accumulated depreciation and amortization (118,749 ) (108,747 ) Property and equipment, net $ 42,975 $ 50,154 Included in transportation equipment is the Company’s corporate aircraft, including capitalizable costs related to the repairs to the aircraft, and aircraft-related equipment. As of December 31, 2020, the net carrying value of the aircraft and aircraft-related equipment was $30.0 million, net of $18.6 million of accumulated depreciation. As of December 31, 2019, the net carrying value of the aircraft and aircraft-related equipment was $32.6 million, net of $16.0 million of accumulated depreciation. Depreciation and amortization expenses related to property and equipment were $11.4 million, $11.7 million, and $8.3 million for the years ended December 31, 2020, 2019, and 2018, respectively. |
Leases
Leases | 12 Months Ended |
Dec. 31, 2020 | |
Leases [Abstract] | |
Leases | (8) Leases The Company leases office space in the United States and foreign locations under operating lease agreements. Office space is the Company’s only material underlying asset class under operating lease agreements. The Company has no material finance leases. Under the Company’s office space lease agreements, fixed payments and variable payments that depend on an index or rate are typically comprised of base rent and parking fees. Additionally, under these agreements the Company is generally responsible for certain variable payments that typically include certain taxes, utilities and maintenance costs, and other fees. These variable lease payments are generally based on the Company’s occupation or usage percentages and are subject to adjustments by the lessor. As of December 31, 2020, the Company’s ROU asset and total lease liability balances were $62.2 million and $82.9 million, respectively, for leases in the United States and $11.4 million and $12.2 million, respectively, for foreign leases. As of December 31, 2019, the Company’s ROU assets and total lease liabilities were $71.0 million and $97.5 million, respectively, for leases in the United States and $14.5 million and $15.5 million, respectively, for foreign leases. The Company’s most significant lease is for its corporate headquarters in Northern Virginia. The ROU asset and total lease liability balances related to the Company’s corporate headquarters lease were $59.0 million and $79.7 million, respectively, as of December 31, 2020, and $66.9 million and $93.3 million, respectively, as of December 31, 2019. The lease agreement for the Company’s corporate headquarters location is set to expire in December 2030 The following table presents the Company’s total lease cost and other lease details for the year ended December 31, 2020 (in thousands, except years and discount rates): Year Ended December 31, 2020 2019 Lease cost: Operating lease cost $ 11,772 $ 15,020 Short-term lease cost 1,158 2,015 Variable lease cost 1,382 1,175 Total lease cost $ 14,312 $ 18,210 Other information: Cash paid for amounts included in the measurement of operating lease liabilities $ 17,497 $ 15,614 ROU assets obtained in exchange for new operating lease liabilities $ 743 $ 5,016 Weighted average remaining lease term in years – operating leases 9.1 10.0 Weighted average discount rate – operating leases 6.1 % 6.0 % The following table presents the maturities of the Company’s operating lease liabilities as of December 31, 2020 (in thousands): For the year ended December 31, 2021 $ 16,186 2022 14,311 2023 13,937 2024 12,051 2025 11,649 Thereafter 55,643 Total lease payments 123,777 Less: imputed interest (28,636 ) Total $ 95,141 Reported as: Current operating lease liabilities $ 10,813 Non-current operating lease liabilities 84,328 Total $ 95,141 |
Convertible Senior Notes
Convertible Senior Notes | 12 Months Ended |
Dec. 31, 2020 | |
Debt Disclosure [Abstract] | |
Convertible Senior Notes | (9) Convertible Senior Notes In December 2020, the Company issued $650.0 million aggregate principal amount of 0.750% Convertible Senior Notes due 2025 (the “Notes”) in a private offering. The $650.0 million aggregate principal amount included the full exercise of the option provided to the initial purchaser to purchase an additional $100.0 million principal amount of the Notes. The Notes are senior unsecured obligations of the Company and bear interest at a fixed rate of 0.750% per annum, payable semiannually in arrears on June 15 and December 15 of each year, beginning on June 15, 2021. Holders of the Notes may receive additional interest under specified circumstances as outlined in the indenture relating to the issuance of the Notes (the “Indenture”). The N otes will mature on December 15, 2025 , unless earlier converted, redeemed or repurchased in accordance with their terms. The total net proceeds from the offering, after deducting initial purchaser discounts and issuance costs, were approximately $ million. The Notes are senior unsecured obligations and rank senior in right of payment to any of the Company’s indebtedness that is expressly subordinated in right of payment to the Notes; equal in right of payment to any of the Company’s unsecured indebtedness that is not so subordinated; effectively junior in right of payment to any of the Company’s secured indebtedness to the extent of the value of the assets securing such indebtedness; and structurally junior to all indebtedness and other liabilities (including trade payables) of the Company’s subsidiaries. The Notes are convertible into shares of the Company’s class A common stock at an initial conversion rate of 2.5126 shares per $1,000 principal amount of notes (equivalent to an initial conversion price of approximately $397.99 per share of class A common stock). The conversion rate is subject to customary anti-dilution adjustments. In addition, following certain events that occur prior to the maturity date or if the Company delivers a notice of redemption, the Company will increase the conversion rate for a holder who elects to convert its notes in connection with such corporate event or notice of redemption, as the case may be, in certain circumstances as provided in the Indenture. Prior to June 15, 2025, the Notes are convertible only under the following circumstances: (1) during any calendar quarter commencing after the calendar quarter ending on March 31, 2021 (and only during such calendar quarter), if the last reported sale price of the Company’s class A common stock for at least 20 trading days (whether or not consecutive) during the period of 30 consecutive trading days ending on, and including, the last trading day of the immediately preceding calendar quarter is greater than or equal to 130% of the conversion price on each applicable trading day; (2) during the five business day period after any five consecutive trading day period (the “measurement period”) in which the “trading price” (as defined in the Indendutre) per $1,000 principal amount of notes for each trading day of the measurement period was less than 98% of the product of the last reported sale price of the Company’s class A common stock and the conversion rate on each such trading day; (3) if the Company calls any or all of the Notes for redemption, at any time prior to the close of business on the second scheduled trading day immediately preceeding the redemption date; and (4) upon occurrence of specified corporate events as described in the Indenture. On or after June 15, 2025 until the close of business on the second scheduled trading day immediately preceding the maturity date of the Notes, holders may convert the Notes at any time. Upon conversion of the Notes, the Company will pay or deliver, as the case may be, cash, shares of the Company’s class A common stock or a combination of cash and shares of class A common stock, at the Company’s election. It is the Company’s current intent to settle the principal amount of the Notes with cash. Prior to December 20, 2023, the Company may not redeem the Notes. The Company may redeem for cash all or a portion of the Notes, at its option, on or after December 20, 2023 if the last reported sale price of the Company’s class A common stock has been at least 130% of the conversion price then in effect for at least 20 trading days (whether or not consecutive), including the trading day immediately preceding the date on which the Company provides a notice of redemption, during any 30 consecutive trading day period ending on, and including, the trading day immediately preceding the date on which the Company provides notice of redemption. The redemption price will be equal to 100% of the principal amount of the Notes to be redeemed, plus accrued and unpaid interest to, but excluding, the redemption date. If the Company undergoes a “fundamental change,” as defined in the Indenture, prior to maturity, subject to certain conditions, holders may require the Company to repurchase for cash all or any portion of their Notes at a fundamental change repurchase price equal to 100% of the principal amount of the Notes to be repurchased, plus any accrued and unpaid interest to, but excluding, the fundamental change repurchase date. The Indenture contains customary terms and covenants, including that upon certain events of default occurring and continuing, either the Trustee or the holders of at least 25% in principal amount of the outstanding Notes may declare 100% of the principal of, and accrued and unpaid interest, if any, on, all the Notes to be due and payable. During the three months ended December 31, 2020, none of the Notes’ conversion features were triggered and no conversions occurred during the three months ended December 31, 2020. The Notes may be convertible thereafter if one or more of the conversion conditions is satisfied during future measurement periods. In accounting for the issuance of the Notes, the Company separated the Notes into liability and equity components. The initial carrying amount of the liability component was determined by measuring the fair value of a similar debt instrument without any associated conversion features. The carrying amount of the equity component (representing the conversion option) was $153.5 million and was determined by deducting the fair value of the liability component from the par value of the Notes. The equity component was recorded in “additional paid-in-capital” in the Company’s Consolidated Balance Sheet and will not be remeasured as long as it continues to meet the conditions for equity classification. The Company incurred approximately $15.3 million in customary offering expenses associated with the Notes (“issuance costs”). In accounting for the issuance costs, the Company allocated the total costs incurred to the liability and equity components of the Notes based on their relative values. Issuance costs attributable to the liability component of $11.6 million were taken as a reduction to the principal amount of the Notes. Issuance costs attributable to the equity component of $3.6 million have been netted against the equity component of the Notes in “additional paid-in-capital” in the Company’s Consolidated Balance Sheet. The excess of the principal amount of the liability component over its carrying amount (the “debt discount”) and the issuance costs attributable to the liability component are amortized to interest expense over the contractual term of the Notes at an effective interest rate of 6.82%. As of December 31, 2020, the net carrying amount of the liablity component of the Notes is classified as a long-term liability in the “Convertible Senior Notes” line item in the Company’s Consolidated Balance Sheet as follows (in thousands): December 31, 2020 Principal $ 650,000 Unamortized debt discount (152,075 ) Unamortized issuance costs (11,559 ) Net carrying amount of debt $ 486,366 As of December 31, 2020, the net carrying amount of the equity component of the Notes is classified as permanent equity and included in “additional paid in capital” in the Company’s Consolidated Balance Sheet as follows (in thousands): December 31, 2020 Debt discount for conversion option $ 153,527 Issuance costs allocated to equity (3,602 ) Deferred tax liability, net of deferred tax asset, related to debt discount and issuance costs (42,115 ) Net carrying amount of equity $ 107,810 For the year ended December 31, 2020, interest expense related to the Notes was as follows (in thousands): Year Ended December 31, 2020 Contractual interest expense $ 271 Amortization of debt discount 1,452 Amortization of issuance costs allocated to debt 91 Total interest expense $ 1,814 |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2020 | |
Commitments And Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | (10) Commitments and Contingencies (a) Commitments From time to time, the Company enters into certain types of contracts that require it to indemnify parties against third-party claims. These contracts primarily relate to agreements under which the Company assumes indemnity obligations for intellectual property infringement, as well as other obligations from time to time depending on arrangements negotiated with customers and other third parties. The conditions of these obligations vary. Thus, the overall maximum amount of the Company’s indemnification obligations cannot be reasonably estimated. Historically, the Company has not been obligated to make significant payments for these obligations and does not currently expect to incur any material obligations in the future. Accordingly, the Company has not recorded an indemnification liability on its Balance Sheets as of December 31, 2020 or December 31, 2019. As a result of the Tax Act, the Company recorded a final tax expense of $37.2 million related to the Transition Tax, comprised of a provisional Transition Tax obligation of $40.3 million in 2017 and a subsequent $(3.1) million measurement-period adjustment in 2018. As of December 31, 2020, $28.0 million of the Transition Tax was unpaid, of which $25.1 million is included in “Other long-term liabilities” and $3.0 million is included in “Accounts payable, accrued expenses, and operating lease liabilities” in the Company’s Consolidated Balance Sheets. The following table shows future minimum payments related to the Notes (semi-annual interest payments and principal upon maturity), noncancelable purchase agreements with initial terms of greater than one year, and anticipated payments related to the Transition Tax resulting from the Tax Act based on the expected due dates of the various installments as of December 31, 2020 (in thousands): Year Convertible Senior Notes Purchase Obligations Transition Tax 2021 $ 4,740 $ 13,825 $ 2,951 2022 4,875 9,673 2,952 2023 4,875 8,705 5,534 2024 4,875 669 7,379 2025 655,078 682 9,223 Thereafter 0 1,048 0 $ 674,443 $ 34,602 $ 28,039 See Note 9, Convertible Senior Notes, to the Consolidated Financial Statements for information regarding the Company’s commitments related to the Notes. Although the Notes will mature on December 15, 2025, they may be earlier converted, redeemed or repurchased in accordance with their terms. See Note 8, Leases, to the Consolidated Financial Statements for information regarding the Company’s commitments that are related to lease agreements. (b) Contingencies Following an internal review initiated in 2018, the Company believes that its Brazilian subsidiary failed or likely failed to comply with local procurement regulations in conducting business with certain Brazilian government entities. On February 6, 2020, the Company learned that a Brazilian court has authorized the Brazilian Federal Police to use certain investigative measures in its investigation into alleged corruption and procurement fraud involving certain government officials, pertaining to a particular transaction. Pursuant to this court authorization, numerous entities and individuals across Brazil have been subject to the freezing of assets and other measures, including a former reseller and a former employee of the Company’s Brazilian subsidiary. On February 6, 2020, the bank accounts of the Company’s Brazilian subsidiary were also frozen up to an amount of BRL 10.0 million, or approximately $2.3 million. On May 22, 2020, these bank accounts of the Company’s Brazilian subsidiary were unfrozen on the basis of a court decision that found the alleged illicit origin of the amounts was not sufficiently evidenced. On May 25, 2020, the Federal Prosecution Office presented an appeal to this decision, but the accounts will remain unfrozen pending the outcome of the appeal. The transaction at issue is part of the basis of the previously reported failure or likely failure of the Brazilian subsidiary to comply with local procurement regulations. The Company is not a subject of the investigation, and the Company is not aware of any allegations that the former employee or the Company made any payments to Brazilian government officials. The Brazilian Federal Police has expanded the investigation to include other possible cases of procurement fraud involving Brazilian government entities and criminal penalties may be imposed against individuals; however, the Company’s Brazilian subsidiary is not a target. T he Company has also learned that Brazil’s Federal Comptroller General filed an administrative action against the Company’s Brazilian subsidiary with respect to the alleged procurement violations. The Company is taking measures to attempt to resolve this matter. While the Company believes that it is probable that the resolution of these Brazilian matters will result in a loss, the amount or range of loss is not reasonably estimable at this time. Given the stage of these matters, the outcome may result in a material impact on the Company’s earnings and financial results for the period in which any such liability is accrued. However, the Company believes that the outcome of these matters will not have a material effect on the Company’s financial position. The Company is also involved in various legal proceedings arising in the normal course of business. Although the outcomes of these legal proceedings are inherently difficult to predict, management does not expect the resolution of these legal proceedings to have a material adverse effect on the Company’s financial position, results of operations, or cash flows. The Company has contingent liabilities that, in management’s judgment, are not probable of assertion. If such unasserted contingent liabilities were to be asserted, or become probable of assertion, the Company may be required to record significant expenses and liabilities in the period in which these liabilities are asserted or become probable of assertion. |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2020 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | (11) Income Taxes U.S. and international components of (loss) income before income taxes (in thousands) were comprised of the following for the periods indicated: Years Ended December 31, 2020 2019 2018 U.S. $ (53,250 ) $ 9,944 $ (18,295 ) Foreign 33,297 28,319 38,777 Total $ (19,953 ) $ 38,263 $ 20,482 The (benefit from) provision for income taxes (in thousands) consisted of the following for the periods indicated: Years Ended December 31, 2020 2019 2018 Current: Federal $ 1,861 $ 1,256 $ (1,916 ) State 1,445 143 1,656 Foreign 5,221 5,135 6,460 $ 8,527 $ 6,534 $ 6,200 Deferred: Federal $ (15,038 ) $ (749 ) $ (6,071 ) State (6,269 ) (480 ) (2,047 ) Foreign 351 (1,397 ) (101 ) $ (20,956 ) $ (2,626 ) $ (8,219 ) Total (benefit) provision $ (12,429 ) $ 3,908 $ (2,019 ) The benefit from or provision for income taxes differs from the amount computed by applying the federal statutory income tax rate to the Company’s loss or income before income taxes as follows for the periods indicated: Years Ended December 31, 2020 2019 2018 Income tax expense at federal statutory rate 21.0 % 21.0 % 21.0 % State taxes, net of federal tax effect 18.0 % (1.7 )% (1.3 )% Foreign earnings taxed at different rates 21.7 % (6.1 )% (20.5 )% Book tax difference in amortization of intangible property 0.0 % (4.6 )% 0.0 % Withholding tax (12.5 )% 3.1 % 5.5 % Foreign tax credit 3.8 % (3.0 )% (5.2 )% Other international components (3.5 )% 0.2 % 0.3 % Change in valuation allowance 2.7 % 1.6 % 2.5 % Deferred tax adjustments and rate changes (3.4 )% 1.0 % (1.7 )% Meals and entertainment (1.3 )% 1.3 % 2.6 % Non-deductible officers compensation (12.5 )% 1.4 % 2.1 % Subpart F income (2.0 )% 3.2 % 7.0 % Research and development tax credit 19.9 % (9.3 )% (11.8 )% Stock compensation 11.8 % 1.8 % 5.8 % GILTI, net of foreign tax credit (1.1 )% 0.9 % 0.5 % FDII 3.1 % (1.9 )% (4.5 )% Transition Tax 0.0 % 0.0 % (15.2 )% Other permanent differences (3.4 )% 1.3 % 3.0 % Total 62.3 % 10.2 % (9.9 )% The Company’s U.S. and foreign effective tax rates for (loss) income before income taxes were as follows for the periods indicated: Years Ended December 31, 2020 2019 2018 U.S. 33.8 % 1.7 % 45.8 % Foreign 16.7 % 13.2 % 16.4 % Combined 62.3 % 10.2 % (9.9 )% The change in the Company’s effective tax rate in 2020, as compared to the prior year, was primarily due to certain discrete items, overall income or loss level, and the change in the proportion of U.S. versus foreign income. The Tax Act imposed a Transition Tax on previously untaxed accumulated and current earnings and profits of certain of the Company’s foreign subsidiaries. The Company recorded a final tax expense of $37.2 million related to the Transition Tax, comprised of a provisional Transition Tax obligation of $40.3 million in 2017 and a subsequent $(3.1) million measurement-period adjustment in 2018. As of December 31, 2020, $28.0 million of the Transition Tax was unpaid, of which $25.1 million is included in “Other long-term liabilities” and $3.0 million is included in “Accounts payable, accrued expenses, and operating lease liabilities” in the Company’s Consolidated Balance Sheets. The Tax Act also reduced the U.S. corporate tax rate from 35% to 21%, effective January 1, 2018. Additionally, the Tax Act requires certain Global Intangible Low Income (“GILTI”) earned by a controlled foreign corporation (“CFC”) to be included in the gross income of the CFC’s U.S. shareholder. The Company has elected the “period cost method” and treats taxes due on future U.S. inclusions in taxable income related to GILTI as a current-period expense when incurred. The Tax Act allows a U.S. corporation a deduction equal to a certain percentage of its foreign-derived intangible income (“FDII”). The Company has estimated the impact of the GILTI tax and FDII deduction in determining its annual effective tax rate that is reflected in its (benefit from) provision for income taxes since January 1, 2018. As of December 31, 2020 and 2019, the amount of cash and cash equivalents and short-term investments held by the Company’s U.S. entities was $13.7 million and $289.4 million, respectively, and by the Company’s non-U.S. entities was $46.0 million and $276.2 million, respectively. The Company earns a significant amount of its revenues outside the United States and its accumulated undistributed foreign earnings and profits as of December 31, 2020 and 2019 were $136.3 million and $231.2 million, respectively. Beginning in the third quarter of 2020, the Company no longer intends to indefinitely reinvest its foreign earnings and profits. After taking into account the Transition Tax and GILTI tax, the Company recorded tax expense of $1.7 million on undistributed foreign earnings related to foreign withholding tax and U.S. state income taxes in 2020. Deferred income taxes reflect the net tax effects of the temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes. Significant components of the Company’s deferred tax assets and liabilities (in thousands) were as follows for the periods indicated: December 31, 2020 2019 Deferred tax assets, net: Net operating loss carryforwards $ 1,690 $ 874 Tax credits 4,158 2,553 Intangible assets 1,707 1,878 Deferred revenue adjustment 408 423 Accrued compensation 6,527 6,257 Share-based compensation expense 11,410 14,182 Deferred rent 0 1,330 Digital asset impairment losses 19,843 0 Other 3,605 1,453 Deferred tax assets before valuation allowance 49,348 28,950 Valuation allowance (1,259 ) (2,130 ) Deferred tax assets, net of valuation allowance 48,089 26,820 Deferred tax liabilities: Prepaid expenses and other 1,792 1,693 Property and equipment 4,233 5,092 Debt discount, net of issuance costs 41,693 0 Deferred tax on undistributed foreign earnings 1,741 0 Method change 338 652 Total deferred tax liabilities 49,797 7,437 Total net deferred tax (liability) asset $ (1,708 ) $ 19,383 Reported as: Non-current deferred tax assets, net 6,503 19,409 Non-current deferred tax liabilities (8,211 ) (26 ) Total net deferred tax (liability) asset $ (1,708 ) $ 19,383 As of December 31, 2020, the Company had unrecognized income tax benefits of $4.6 million, recorded in “Other long-term liabilities” in the Company’s Consolidated Balance Sheets. The change in unrecognized income tax benefits (in thousands) is presented in the table below: Unrecognized income tax benefits at January 1, 2020 $ 1,563 Increase related to positions taken in prior period 2,580 Increase related to positions taken in current period 283 Decrease related to expiration of statute of limitations (133 ) Unrecognized income tax benefits at December 31, 2020 4,293 Accrued interest 295 Unrecognized income tax benefits recorded in other long-term liabilities at December 31, 2020 $ 4,588 If recognized, $4.3 million of the gross unrecognized income tax benefits would impact the Company’s effective tax rate. Over the next 12 months, the amount of the Company’s liability for unrecognized income tax benefits shown above is not expected to change materially. The Company recognizes estimated accrued interest related to unrecognized income tax benefits in the benefit from income taxes. During the years ended December 31, 2020, 2019, and 2018, the Company released or recognized an immaterial amount of accrued interest. The amount of accumulated accrued interest related to the above unrecognized income tax benefits was approximately $0.3 million and $0.2 million as of December 31, 2020 and 2019, respectively. The Company files tax returns in numerous foreign countries as well as the United States and its tax returns may be subject to audit by tax authorities in all countries in which it files. Each country has its own statute of limitations for making assessment of additional tax liabilities. In 2018, the Company settled the tax examination in China for tax years 2008 to 2016 without any material audit assessments. In 2019, the Company settled the tax examination in Italy for tax years 2013 to 2015 without any material audit assessments. The Company’s U.S. tax returns for tax years from 2016 and forward are subject to potential examination by the Internal Revenue Service. However, due to the Company’s use of state NOL carryovers in the United States, state tax authorities may attempt to reduce or fully offset the amount of state NOL carryovers from tax years ended 2011 and forward that the Company used in later tax years. The Company’s major foreign tax jurisdictions and the tax years that remain subject to potential examination are Italy, Germany, and Poland for tax years 2016 and forward; Spain for tax years 2017 and forward, and the United Kingdom for tax years 2019 and forward. To date there have been no material audit assessments related to audits in the United States or any of the applicable foreign jurisdictions. The Company had no U.S. NOL carryforwards as of December 31, 2020 and 2019. The Company had $7.9 million and $4.1 million of foreign NOL carryforwards as of December 31, 2020 and 2019, respectively. The Company’s valuation allowances of $1.3 million and $2.1 million at December 31, 2020 and 2019, respectively, primarily relate to certain foreign tax credit carryforward tax assets that, in the Company’s present estimation, more likely than not will not be realized. In determining the Company’s provision for (benefit from) income taxes, net deferred tax assets, liabilities, and valuation allowances, management is required to make estimates and judgments related to projections of domestic and foreign profitability, the timing and extent of the utilization of NOL carryforwards, applicable tax rates, transfer pricing methods, and prudent and feasible tax planning strategies. As a multinational company, the Company is required to calculate and provide for estimated income tax liabilities for each of the tax jurisdictions in which it operates. This process involves estimating current tax obligations and exposures in each jurisdiction, as well as making judgments regarding the future recoverability of deferred tax assets. Changes in the estimated level of annual pre-tax income, changes in tax laws, particularly changes related to the utilization of NOLs in various jurisdictions, and changes resulting from tax audits can all affect the overall effective income tax rate which, in turn, impacts the overall level of income tax expense or benefit and net income. Estimates and judgments related to the Company’s projections and assumptions are inherently uncertain. Therefore, actual results could differ materially from projections. Currently, the Company expects to use its deferred tax assets, subject to Internal Revenue Code limitations, within the carryforward periods. Valuation allowances have been established where the Company has concluded that it is more likely than not that such deferred tax assets are not realizable. If the Company is unable to regain profitability in future periods, it may be required to increase the valuation allowance against the deferred tax assets, which could result in a charge that would materially adversely affect net (loss) income in the period in which the charge is incurred. |
Share-based Compensation
Share-based Compensation | 12 Months Ended |
Dec. 31, 2020 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Share-based Compensation | (12) Share-based Compensation The 2013 Equity Plan authorizes the issuance of various types of share-based awards to the Company’s employees, officers, directors, and other eligible participants. As of December 31, 2020, a total of 2,300,000 shares of the Company’s class A common stock were authorized for issuance under the 2013 Equity Plan. As of December 31, 2020, there were 415,238 shares of class A common stock reserved and available for future issuance under the 2013 Equity Plan. Under the 2013 Equity Plan, the Company has issued stock option awards, restricted stock units, and other stock-based awards. Regardless of the type of award issued, any shares issued under the 2013 Equity Plan may consist in whole or in part of authorized but unissued shares or treasury shares. No awards may be issued more than 10 years after the 2013 Equity Plan’s effective date. In determining related share-based compensation expense for any award under the 2013 Equity Plan, the Company has made an accounting policy election to account for forfeitures of awards as they occur and therefore share-based compensation expense presented below has not been adjusted for any estimated forfeitures. Stock option awards Stock options that are granted under the 2013 Equity Plan must have an exercise price equal to at least the fair market value of the Company’s class A common stock on the date of grant, become exercisable as established by the Board of Directors or the Compensation Committee, and expire no later than 10 years following the date of grant. The Company recognizes share-based compensation expense associated with such stock option awards on a straight-line basis over the award’s requisite service period (generally, the vesting period). The stock option awards granted to date vest in equal annual installments over an approximately four-year Share-based compensation expense related to stock option awards is based on the fair value of the stock option awards on the date of grant, as estimated using the Black-Scholes option pricing model. The Black-Scholes option pricing model requires the input of certain management assumptions, including the expected term, expected stock price volatility, risk-free interest rate, and expected dividend yield. The Company estimates the term over which option holders are expected to hold their stock options by using the simplified method for “plain-vanilla” stock option awards because the Company’s stock option exercise history does not provide a reasonable basis to compute the expected term for stock options granted under the 2013 Equity Plan. The Company has relied exclusively on its historical stock price volatility to estimate the expected stock price volatility over the expected term because the Company believed at the date of grant that future volatility was unlikely to differ from the past. In estimating the expected stock price volatility, the Company uses a simple average calculation method. The risk-free interest rate is based on U.S. Treasury securities with terms that approximate the expected term of the stock options. The expected dividend yield is based on the Company’s past cash dividend history and anticipated future cash dividend payments. The expected dividend yield is zero, as the Company has not previously declared cash dividends and does not currently intend to declare cash dividends in the foreseeable future. These assumptions are based on management’s best judgment, and changes to these assumptions could materially affect the fair value estimates and amount of share-based compensation expense recognized. As of December 31, 2020, there were options to purchase 1,157,375 shares of class A common stock outstanding under the 2013 Equity Plan. The following table summarizes the Company’s stock option activity (in thousands, except per share data and years) for the periods indicated: Stock Options Outstanding Weighted Average Aggregate Weighted Average Exercise Price Intrinsic Remaining Contractual Shares Per Share Value Term (Years) Balance as of January 1, 2018 992 $ 145.28 Granted 710 130.27 Exercised (21 ) 121.13 $ 196 Forfeited/Expired (201 ) 154.49 Balance as of December 31, 2018 1,480 137.16 Granted 470 150.88 Exercised (51 ) 128.17 $ 799 Forfeited/Expired (265 ) 135.88 Balance as of December 31, 2019 1,634 141.60 Granted 118 146.76 Exercised (348 ) 146.80 $ 29,994 Forfeited/Expired (247 ) 146.63 Balance as of December 31, 2020 1,157 $ 139.48 Exercisable as of December 31, 2020 644 $ 135.05 $ 163,318 4.1 Expected to vest as of December 31, 2020 513 $ 145.05 124,947 8.4 Total 1,157 $ 139.48 $ 288,265 6.0 Stock options outstanding as of December 31, 2020 are comprised of the following range of exercise prices per share (in thousands, except per share data and years): Stock Options Outstanding at December 31, 2020 Weighted Average Weighted Average Exercise Price Remaining Contractual Range of Exercise Prices per Share Shares Per Share Term (Years) $121.43 - $140.00 710 $ 124.45 4.8 $140.01 - $160.00 268 $ 151.33 9.0 $160.01 - $180.00 69 $ 169.37 6.8 $180.01 - $201.25 110 $ 188.97 6.0 Total 1,157 $ 139.48 6.0 An aggregate of 200,000, 216,250, and 251,250 stock options with an aggregate fair value of $11.2 million, $12.6 million, and $15.5 million vested during the years ended December 31, 2020, 2019, and 2018, respectively. The weighted average grant date fair value of stock option awards using the Black-Scholes option pricing model was $49.68, $54.36, and $51.68 for each share subject to a stock option granted during the years ended December 31, 2020, 2019, and 2018, respectively, based on the following assumptions: Years Ended December 31, 2020 2019 2018 Expected term of options in years 6.3 6.3 6.3 Expected volatility 33.6% - 34.6% 33.2% - 33.4% 33.7% - 35.5% Risk-free interest rate 0.3% - 0.5% 1.7% - 2.5% 2.7% - 2.9% Expected dividend yield 0.0% 0.0% 0.0% The Company recognized approximately $10.1 million, $10.1 million, and $14.6 million in share-based compensation expense for the years ended December 31, 2020, 2019, and 2018, respectively, from stock options granted under the 2013 Equity Plan. As of December 31, 2020, there was approximately $21.8 million of total unrecognized share-based compensation expense related to unvested stock options. As of December 31, 2020, the Company expects to recognize this remaining share-based compensation expense over a weighted average vesting period of approximately 2.6 years. Restricted stock units During the fourth quarter of 2020, the Company began granting restricted stock units under the 2013 Equity Plan. The restricted stock units entitle recipients to receive a number of shares of the Company’s class A common stock over a vesting period, as specified in the applicable restricted stock unit agreement. Although the Company may in its sole discretion elect to pay fully or partially in cash in lieu of settling solely in shares, it does not currently intend to do so. Share-based compensation expense related to restricted stock units is based on the fair value of the Company’s class A common stock on the date of grant. The Company recognizes share-based compensation expense associated with such restricted stock unit awards on a straight-line basis over the award’s requisite service period (generally, the vesting period). The restricted stock unit awards granted to date vest in equal annual installments over a four-year As of December 31, 2020, there were 74,400 restricted stock units outstanding under the 2013 Equity Plan. The following table summarizes the Company’s restricted stock unit activity (in thousands) for the periods indicated: Restricted Stock Units Outstanding Aggregate Intrinsic Units Value Balance as of January 1, 2020 0 Granted 76 Vested 0 $ 0 Forfeited (2 ) Balance as of December 31, 2020 74 Expected to vest as of December 31, 2020 74 $ 28,908 No restricted stock units vested during the year ended December 31, 2020. The weighted average grant date fair value of restricted stock units granted during the year ended December 31, 2020 was $192.43 based on the fair value of the Company’s class A common stock. The Company recognized approximately $0.5 million in share-based compensation expense for the year ended December 31, 2020 from restricted stock units granted under the 2013 Equity Plan. As of December 31, 2020, there was approximately $13.8 million of total unrecognized share-based compensation expense related to unvested restricted stock units. As of December 31, 2020, the Company expects to recognize this remaining share-based compensation expense over a weighted average vesting period of approximately 3.9 years. Other stock-based awards During 2018, the Company granted certain awards characterized as “other stock-based awards” under the 2013 Equity Plan. These other stock-based awards are similar to stock options, except these awards are settled in cash only and not in shares of the Company’s class A common stock. These awards are classified as liabilities in the Company’s Consolidated Balance Sheets due to the required cash settlement feature and the fair value of the awards is remeasured each quarterly reporting period. Other stock-based awards were not granted in 2020 or 2019. The Company recognized approximately $0.6 million in share-based compensation expense for the year ended December 31, 2020 from other stock-based awards. For the years ended December 31, 2019 and 2018, the Company did not recognize a material amount in share-based compensation expense from other stock-based awards. As of December 31, 2020, there was approximately $1.0 million of total unrecognized share-based compensation expense related to other stock-based awards. The Company expects to recognize this remaining share-based compensation expense over a weighted average vesting period of approximately 1.4 years, subject to additional fair value adjustments through the earlier of settlement or expiration. |
Basic and Diluted Earnings per
Basic and Diluted Earnings per Share | 12 Months Ended |
Dec. 31, 2020 | |
Earnings Per Share [Abstract] | |
Basic and Diluted Earnings per Share | (13) Basic and Diluted Earnings per Share Potential shares of common stock are included in the diluted earnings per share calculation when dilutive. Potential shares of common stock, consisting of class A common stock issuable upon exercise of outstanding stock options, class A common stock issuable upon vesting of restricted stock units, and class A common stock issuable upon conversion of the Notes (as to which the Company currently intends to settle the principal in cash and excess value in shares of class A common stock) are calculated using the treasury stock method. The following table sets forth the computation of basic and diluted earnings per share (in thousands, except per share data) for the periods indicated: Years Ended December 31, 2020 2019 2018 Numerator: Net income $ (7,524 ) $ 34,355 $ 22,501 Denominator: Weighted average common shares of class A common stock 7,658 8,221 9,340 Weighted average common shares of class B common stock 2,026 2,035 2,035 Total weighted average common stock shares outstanding 9,684 10,256 11,375 Effect of dilutive securities: Employee stock options 0 72 37 Adjusted weighted average shares 9,684 10,328 11,412 Earnings per share: Basic earnings per share $ (0.78 ) $ 3.35 $ 1.98 Diluted earnings per share $ (0.78 ) $ 3.33 $ 1.97 For the years ended December 31, 2020, 2019, and 2018, stock options issued under the 2013 Equity Plan to purchase a weighted average of approximately 1,487,000, 933,000, and 896,000 shares of class A common stock, respectively, were excluded from the diluted earnings per share calculation because their impact would have been anti-dilutive. For the year ended December 31, 2020, restricted stock units issued under the 2013 Equity Plan to issue a weighted average of approximately 10,000 shares of class A common stock were excluded from the diluted earnings per share calculation because their impact would have been anti-dilutive. For the year-ended December 31, 2020, the average market price of the Company’s class A common stock did not exceed the conversion price of the Notes and therefore there is no dilutive impact to earnings per share arising from the Notes. |
Treasury Stock
Treasury Stock | 12 Months Ended |
Dec. 31, 2020 | |
Equity [Abstract] | |
Treasury Stock | (14) Treasury Stock The Board of Directors has authorized the Company’s repurchase of up to an aggregate of $800.0 million of its class A common stock from time to time on the open market through April 29, 2023 under the Share Repurchase Program, although the program may be suspended or discontinued by the Company at any time. The timing and amount of any shares repurchased will be determined by the Company’s management based on its evaluation of market conditions and other factors. The Share Repurchase Program may be funded using the Company’s working capital, as well as proceeds from any other funding arrangements that the Company may enter into in the future. During 2020, the Company repurchased an aggregate of 444,769 shares of its class A common stock at an average price per share of $139.12 and an aggregate cost of $61.9 million pursuant to the Share Repurchase Program. During 2019, the Company repurchased an aggregate of 521,843 shares of its class A common stock at an average price per share of $139.35 and an aggregate cost of $72.7 million pursuant to the Share Repurchase Program. During 2018, the Company repurchased an aggregate of 880,667 shares of its class A common stock at an average price per share of $126.02 and an aggregate cost of $111.0 million pursuant to the Share Repurchase Program. As of December 31, 2020, the Company had repurchased an aggregate of 5,674,226 shares of its class A common stock at an average price per share of $104.13 and an aggregate cost of $590.9 million pursuant to the Share Repurchase Program. As of December 31, 2020, $209.1 million of the Company’s class A common stock remained available for repurchase pursuant to the Share Repurchase Program. The average price per share and aggregate cost amounts disclosed above include broker commissions. On August 11, 2020, the Company announced that it commenced an offer to purchase up to $250.0 million in value of shares of its issued and outstanding class A common stock, or such lesser number of shares as are properly tendered and not properly withdrawn, at a price not greater than $140.00 nor less than $122.00 per share (the “Offer”). The Offer expired at 5:00 p.m., New York City time, on September 10, 2020. During the year ended December 31, 2020, the Company repurchased an aggregate of 432,313 shares of its class A common stock through the Offer at a price of $140.00 per share for an aggregate cost of $61.3 million, inclusive of $0.8 million in certain fees and expenses related to the Offer. |
Employee Benefit Plan
Employee Benefit Plan | 12 Months Ended |
Dec. 31, 2020 | |
Compensation And Retirement Disclosure [Abstract] | |
Employee Benefit Plan | (15) Employee Benefit Plan The Company sponsors a benefit plan to provide retirement benefits for its employees, known as the MicroStrategy 401(k) Savings Plan (the “401(k) Plan”). Participants may make voluntary contributions to the 401(k) Plan of up to 50% of their annual base pre-tax compensation, cash bonuses, and commissions not to exceed the federally determined maximum allowable contribution amounts. Participants may designate all or a portion of the 401(k) Plan elective deferral contributions as Roth elective deferral contributions instead of pre-tax elective deferral contributions. The 401(k) Plan permits for discretionary Company contributions. The Company currently makes a matching contribution to each 401(k) Plan participant in the amount of 50% of the first 12% of a participant’s contributions, up to a maximum of $5,000 per year. Further, all active participants become fully vested in the Company’s matching contributions after completing four years of employment, vesting in increments based on the participant’s years of employment with the Company. Prior to 2019, the Company made matching contributions in the amount of 50% of the first 6% of a participant’s contributions, up to a maximum of $3,000 per year, and participants became fully vested in the Company’s matching contributions after completing six years of employment, vesting in increments based on the participant’s years of employment with the Company. The Company made contributions to the 401(k) Plan totaling $3.3 million, $4.1 million, and $2.4 million during the years ended December 31, 2020, 2019, and 2018, respectively. |
Segment Information
Segment Information | 12 Months Ended |
Dec. 31, 2020 | |
Segment Reporting [Abstract] | |
Segment Information | (16) Segment Information The Company manages its business in one reportable operating segment. The Company’s one reportable operating segment is engaged in the design, development, marketing, and sales of its enterprise intelligence software platform through licensing arrangements and cloud subscriptions and related services. The following table presents total revenues, gross profit, and long-lived assets, excluding long-term deferred tax assets, (in thousands) according to geographic region: Geographic regions: Domestic EMEA Other Regions Consolidated Year ended December 31, 2020 Total revenues $ 279,220 $ 155,478 $ 46,037 $ 480,735 Gross profit $ 229,466 $ 124,513 $ 35,701 $ 389,680 Year ended December 31, 2019 Total revenues $ 273,581 $ 159,643 $ 53,103 $ 486,327 Gross profit $ 216,365 $ 126,939 $ 43,049 $ 386,353 Year ended December 31, 2018 Total revenues $ 287,258 $ 156,706 $ 53,674 $ 497,638 Gross profit $ 228,310 $ 126,315 $ 43,514 $ 398,139 As of December 31, 2020 Long-lived assets $ 1,165,283 $ 11,441 $ 9,765 $ 1,186,489 As of December 31, 2019 Long-lived assets $ 118,168 $ 13,636 $ 11,912 $ 143,716 The domestic region consists of the United States and Canada. The EMEA region includes operations in Europe, the Middle East, and Africa. The other regions include all other foreign countries, generally comprising Latin America and the Asia Pacific region. For the years ended December 31, 2020, 2019, and 2018, no individual foreign country accounted for 10% or more of total consolidated revenues. For the years ended December 31, 2020, 2019, and 2018, no individual customer accounted for 10% or more of total consolidated revenues. As of December 31, 2020 and 2019, no individual foreign country accounted for 10% or more of total consolidated assets. |
Sale of Domain Name
Sale of Domain Name | 12 Months Ended |
Dec. 31, 2020 | |
Other Nonoperating Income Expense [Abstract] | |
Sale of Domain Name | (17) Sale of Domain Name On May 30, 2019, the Company completed the sale of its Voice.com domain name for consideration of $30.0 million in cash (the “Domain Name Sale”). As of the date of the Domain Name Sale, the Company had no unamortized costs associated with the Voice.com domain name asset. The Company did not incur any material costs related to the Domain Name Sale. The Domain Name Sale resulted in a gain of $29.8 million in the second quarter of 2019, which was recorded as “Other income, net” for such quarter in the Consolidated Statements of Operations. The Company also recorded a discrete $8.1 million tax provision in the second quarter of 2019 related to the Domain Name Sale. |
Selected Quarterly Financial Da
Selected Quarterly Financial Data (Unaudited) | 12 Months Ended |
Dec. 31, 2020 | |
Quarterly Financial Information Disclosure [Abstract] | |
Selected Quarterly Financial Data (Unaudited) | (18) Selected Quarterly Financial Data (Unaudited) The following tables contain unaudited Statement of Operations information for each quarter of 2020 and 2019. During the third and fourth quarters of 2020, the Company recorded impairment losses on its digital assets of $44.2 million and $26.5 million, respectively. During the second quarter of 2019, the Company recorded a gain of $29.8 million and an associated discrete tax provision of $8.1 million related to the Domain Name Sale. Quarter Ended March 31 June 30 September 30 December 31 Year (in thousands, except per share data) 2020 Revenues $ 111,424 $ 110,584 $ 127,408 $ 131,319 $ 480,735 Gross profit $ 86,879 $ 86,595 $ 105,672 $ 110,534 $ 389,680 Net income (loss) $ 657 $ 3,387 $ (14,229 ) $ 2,661 $ (7,524 ) Earnings (loss) per share: (1) Basic $ 0.07 $ 0.35 $ (1.48 ) $ 0.28 $ (0.78 ) Diluted $ 0.07 $ 0.35 $ (1.48 ) $ 0.27 $ (0.78 ) Quarter Ended March 31 June 30 September 30 December 31 Year (in thousands, except per share data) 2019 Revenues $ 115,366 $ 117,737 $ 119,693 $ 133,531 $ 486,327 Gross profit $ 89,193 $ 92,387 $ 95,878 $ 108,895 $ 386,353 Net (loss) income $ (7,906 ) $ 20,394 $ 9,700 $ 12,167 $ 34,355 (Loss) earnings per share: (1) Basic $ (0.77 ) $ 1.99 $ 0.95 $ 1.19 $ 3.35 Diluted $ (0.77 ) $ 1.98 $ 0.94 $ 1.18 $ 3.33 (1) The sum of the basic and diluted earnings (loss) per share for the four quarters may differ from annual earnings (loss) per share as the weighted average shares outstanding are computed independently for each of the quarters presented. |
Subsequent Events
Subsequent Events | 12 Months Ended |
Dec. 31, 2020 | |
Subsequent Events [Abstract] | |
Subsequent Events | (19) Subsequent Events During February 2021, the Company adopted the 2021 Employee Stock Purchase Plan (the “2021 ESPP”). The purpose of the 2021 ESPP is to provide eligible employees of the Company and certain of its subsidiaries with opportunities to purchase shares of the Company’s class A common stock, commencing at such time and on such dates as the Board of Directors of the Company shall determine. An aggregate of 100,000 shares of the Company’s class A common stock has been authorized for issuance under the 2021 ESPP. |
Schedule II Valuation And Quali
Schedule II Valuation And Qualifying Accounts | 12 Months Ended |
Dec. 31, 2020 | |
Valuation And Qualifying Accounts [Abstract] | |
Schedule II Valuation And Qualifying Accounts | SCHEDULE II VALUATION AND QUALIFYING ACCOUNTS For the years ended December 31, (in thousands) Balance at the Balance at beginning of the end of the period Additions (1) Deductions the period Allowance for credit losses: December 31, 2020 $ 1,637 1,550 (427 ) $ 2,760 December 31, 2019 $ 5,489 124 (3,976 ) $ 1,637 December 31, 2018 $ 4,190 1,912 (613 ) $ 5,489 Deferred tax valuation allowance: December 31, 2020 $ 2,130 10 (881 ) $ 1,259 December 31, 2019 $ 1,507 633 (10 ) $ 2,130 December 31, 2018 $ 1,015 492 0 $ 1,507 (1) Reductions in/charges to revenues and expenses. |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2020 | |
Accounting Policies [Abstract] | |
Basis of Presentation | (a) Basis of Presentation The accompanying Consolidated Financial Statements include the accounts of the Company and its subsidiaries. All significant intercompany accounts and transactions have been eliminated in consolidation. Certain amounts in the Consolidated Statement of Cash Flows for the year ended December 31, 2019 have been reclassified to conform to current year presentation. In particular, reductions in the carrying amount of right-of-use (“ROU”) assets have been reclassified from “Depreciation and amortization” to “Reduction in carrying amount of right-of-use assets” in operating activities. As discussed in Note 3, Recent Accounting Standards, to the Consolidated Financial Statements, the Company adopted Accounting Standards Update No. 2016-13, Financial Instruments – Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments In addition, the Company previously adopted Accounting Standards Update No. 2016-02, Leases (Topic 842) Revenue from Contracts with Customers (Topic 606) |
Use of Estimates | (b) Use of Estimates The preparation of the Consolidated Financial Statements, in conformity with GAAP, requires management to make estimates and judgments that affect the amounts reported in the Consolidated Financial Statements and accompanying notes. On an on-going basis, the Company evaluates its estimates, including, but not limited to, those related to revenue recognition, allowance for doubtful accounts, investments, fixed assets, digital assets, leases, debt, share-based compensation, income taxes, including the carrying value of deferred tax assets, and litigation and contingencies, including liabilities that the Company deems not probable of assertion. The Company bases its estimates on historical experience and on various other assumptions that are believed to be reasonable under the circumstances, the results of which form the basis for making judgments about the carrying value of assets, liabilities, and equity that are not readily apparent from other sources. Actual results and outcomes could differ from these estimates and assumptions. |
Fair Value Measurements | (c) Fair Value Measurements The Company measures certain assets and liabilities at fair value on a recurring or nonrecurring basis. Fair value is defined as the price that is expected to be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The Company uses a three-level hierarchy that prioritizes fair value measurements based on the types of inputs used for the various valuation techniques. The three levels of the fair value hierarchy are described below: Level 1: Quoted (unadjusted) prices in active markets that are accessible at the measurement date for identical, unrestricted assets or liabilities. Level 2: Inputs other than quoted prices that are either directly or indirectly observable, such as quoted prices in active markets for similar assets or liabilities, quoted prices for identical or similar assets or liabilities in inactive markets, or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities. Level 3: Inputs that are generally unobservable, supported by little or no market activity, and typically reflect management’s estimates of assumptions that market participants would use in pricing the asset or liability. The categorization of an asset or liability within the fair value hierarchy is based on the lowest level of input that is significant to the fair value measurement. The valuation techniques used by the Company when measuring fair value maximize the use of observable inputs and minimize the use of unobservable inputs. The Company also estimates the fair value of cash and cash equivalents, restricted cash, accounts receivable, accounts payable and accrued expenses, and accrued compensation and employee benefits. The Company considers the carrying value of these instruments in the Consolidated Financial Statements to approximate fair value due to their short maturities. |
Cash and Cash Equivalents and Restricted Cash | (d) Cash and Cash Equivalents and Restricted Cash Cash equivalents may include bank demand deposits, money market instruments, certificates of deposit, U.S. Treasury securities, and equivalent funds. The Company generally considers all highly liquid investments with an original maturity of three months or less to be cash equivalents. Restricted cash consists of cash balances restricted in use by contractual obligations with third parties. |
Short-term Investments | (e) Short-term Investments The Company has periodically invested a portion of its cash in short-term investment instruments. All highly liquid investments with stated maturity dates between three months and one year from the purchase date are classified as short-term investments. The Company determines the appropriate classification of its short-term investments at the time of purchase and reassesses the appropriateness of the classification at each reporting date. Prior to their liquidation, all of the Company’s short-term investments were in U.S. Treasury securities. All short-term investments have been classified as available-for-sale and are reported at fair value within “Short-term investments” on the accompanying Consolidated Balance Sheets. The fair value of the Company’s short-term investments is determined based on quoted market prices in active markets for identical securities (Level 1 inputs). Premiums and discounts related to the Company’s short-term investments are amortized over the life of the investment and recorded in earnings. Each reporting period, the Company determines the amount of unrealized holding gains and losses on each individual security by comparing the fair value to the amortized cost. Unrealized holding gains and unrealized holding losses that are not a result of a credit loss are reported in other comprehensive income (loss) until realized. Beginning January 1, 2020, unrealized holding losses that are a result of a credit loss are recorded in earnings, with the establishment of an allowance for credit losses. As of December 31, 2020, the Company did not hold any short-term investments. |
Credit Losses on Accounts Receivable | (f) Credit Losses on Accounts Receivable |
Digital Assets | (g) Digital Assets During the second half of 2020, the Company purchased an aggregate of $1.125 billion in digital assets, comprised solely of bitcoin. The Company accounts for its digital assets as indefinite-lived intangible assets in accordance with Accounting Standards Codification (“ASC”) 350, Intangibles—Goodwill and Other The Company determines the fair value of its bitcoin on a nonrecurring basis in accordance with ASC 820, Fair Value Measurement Impairment losses are recognized as “Digital asset impairment losses” in the Company’s Consolidated Statements of Operations in the period in which the impairment is identified. The impaired digital assets are written down to their fair value at the time of impairment and this new cost basis will not be adjusted upward for any subsequent increase in fair value. Gains (if any) are not recorded until realized upon sale, at which point they would be presented net of any impairment losses in the Company’s Consolidated Statements of Operations. In determining the gain to be recognized upon sale, the Company calculates the difference between the sales price and carrying value of the specific bitcoins sold immediately prior to sale. See Note 5, Digital Assets, to the Consolidated Financial Statements for further information regarding the Company’s purchases of digital assets. |
Property and Equipment | (h) Property and Equipment Property and equipment are stated at cost, net of accumulated depreciation. Depreciation is computed using the straight-line method over the estimated useful lives of the assets, as follows: three years for computer equipment and purchased software; five years for office equipment; 10 years for office furniture; and 19 years for the Company’s corporate aircraft, which has an estimated salvage value of 21%. Leasehold improvements are amortized using the straight-line method over the estimated useful lives of the improvements or the term of the lease, whichever is shorter. The Company periodically evaluates the appropriateness of the estimated useful lives and salvage value of all property and equipment. Any change in the estimated useful life or salvage value is treated as a change in estimate and accounted for prospectively in the period of change. Expenditures for maintenance and repairs are charged to expense as incurred, except for certain costs related to the aircraft. The costs of normal, recurring, or periodic repairs and maintenance activities related to the aircraft are expensed as incurred. The cost of planned major maintenance activities (“PMMA”) may be treated differently because those activities may involve the acquisition of additional aircraft components or the replacement of existing aircraft components. PMMA are performed periodically based on passage of time and the use of the aircraft. The classification of a maintenance activity as part of PMMA requires judgment and can affect the amount of expense recognized in any particular period. The cost of each PMMA is expected to be capitalized and amortized over the period until the next scheduled PMMA. There have been no PMMA to date. When assets are retired or sold, the capitalized cost and related accumulated depreciation are removed from the property and equipment accounts and any resulting gain or loss is recognized in the results of operations. Eligible internal-use software development costs are capitalized subsequent to the completion of the preliminary project stage. Such costs include external direct material and service costs, employee payroll, and payroll-related costs. After all substantial testing and deployment is completed and the software is ready for its intended use, capitalization ceases and internal-use software development costs are amortized using the straight-line method over the estimated useful life of the software, generally three years. The Company reviews long-lived assets for impairment whenever events or changes in business circumstances indicate that the carrying value of the assets may not be fully recoverable or that the useful lives of these assets are no longer appropriate. Each impairment test is based on a comparison of the undiscounted cash flows to the recorded value of the asset. If an asset is impaired, the asset is written down by the amount by which the carrying value of the asset exceeds the related fair value of the asset. |
Leases | (i) Leases The Company adopted ASU 2016-02 effective as of January 1, 2019. Under ASU 2016-02, a lease is a contract, or part of a contract, that conveys the right to both (i) obtain economic benefits from and (ii) direct the use of an identified asset for a period of time in exchange for consideration. The Company evaluates its contracts to determine if they contain a lease and classifies any lease components identified as an operating or finance lease. For each lease component, the Company recognizes a right-of-use (“ROU”) asset and a lease liability. ROU assets and lease liabilities are presented separately for operating and finance leases; however, the Company currently has no material finance leases. The Company’s operating leases are primarily related to office space in the United States and foreign locations. In a contract that contains a lease, a component is an item or activity that transfers a good or service to the lessee. Such contracts may be comprised of lease components, non-lease components, and elements that are not components. Each lease component represents a lessee’s right to use an underlying asset in the contract if the lessee can benefit from the right of use of the asset either on its own or together with other readily available resources and if the right of use is neither highly dependent nor highly interrelated with other rights of use. Non-lease components include items such as common area maintenance and utilities provided by the lessor. The Company has elected the practical expedient to not separate lease components from non-lease components for office space, which is the Company’s only material underlying asset class. For each lease within this asset class, the non-lease components and related lease components are accounted for as a single lease component. Items or activities that do not transfer goods or services to the lessee, such as administrative tasks to set up the contract and reimbursement or payment of lessor costs, are not components of the contract and therefore no contract consideration is allocated to such items or activities. Consideration in the contract is comprised of any fixed payments and variable payments that depend on an index or rate. Payments in the Company’s operating lease arrangements are typically comprised of base office rent and parking fees. Costs related to the Company’s non-lease components, as described above, are generally variable and do not depend on an index or rate and are therefore excluded from the contract consideration allocated to the lease components. The Company’s operating lease arrangements generally do not contain any payments related to items or activities that are not components. Operating lease liabilities are initially and subsequently measured at the present value of unpaid lease payments, discounted at the discount rate of the lease. Operating lease ROU assets are initially measured as the sum of the initial lease liability, any initial direct costs incurred, and any prepaid lease payments, less any lease incentives received. The ROU asset is amortized over the term of the lease. The amortization of operating lease ROU assets is included in “Reduction in carrying amount of right-of-use assets” within the operating activities section of the Consolidated Statements of Cash Flows. A single lease expense is recorded within operating expenses in the Consolidated Statements of Operations on a straight-line basis over the lease term. Variable lease payments that are not included in the measurement of the lease liability are recognized in the period when the obligations for those payments are incurred. In the Company’s lease agreements, these variable payments typically include certain taxes, utilities, and maintenance costs, and other fees. The Company uses its incremental borrowing rate as the discount rate for all of its leases, as the rate implicit in the lease is not readily determinable in any of its lease contracts. In order to estimate a collateralized borrowing rate curve, the Company first estimates a synthetic credit rating and then applies modeling methodologies to an unsecured borrowing rate curve. In determining the incremental borrowing rate of each lease, the Company uses a centralized treasury approach and considers the currency of the contract, the economic environment in which the lease exists, and the term of the lease. The Company does not recognize lease liabilities or ROU assets for any short-term leases with a non-cancellable lease term of 12 months or less. Instead, the lease payments for these short-term leases are expensed on a straight-line basis over the lease term, and any variable payments are recognized in the period when the obligations for those payments are incurred. The Company believes that, using this methodology, the expense recorded reasonably reflects the Company’s short-term lease commitments. |
Software Development Costs | (j) Software Development Costs The Company did not capitalize any software development costs during the years ended December 31, 2020, 2019, and 2018. Due to the pace of the Company’s software development efforts and frequency of its software releases, the Company’s software development costs are expensed as incurred within “Research and development” in the Consolidated Statements of Operations. Amortization expenses related to previously capitalized software development costs were $2.5 million for the year ended December 31, 2018. No amortization expense was recorded for the years ended December 31, 2020 and 2019, as all previously capitalized software development costs were fully amortized. In previous periods, software development costs were expensed as incurred until technological feasibility had been established, at which time such costs were capitalized until the software was available for general release to customers. Capitalized software development costs included direct labor costs and fringe benefit costs attributed to programmers, software engineers, and quality control and field certifiers working on the software after it reached technological feasibility, but before it was generally available to customers for sale. Technological feasibility was considered to be achieved when a software design and working model of the software had been completed. Capitalized software development costs were typically amortized on a straight-line basis over the estimated software life of three years. The amortization expense was recorded within cost of product licenses revenues in the Consolidated Statements of Operations. |
Loss Contingencies and Legal Costs | (k) Loss Contingencies and Legal Costs |
Deferred Revenue and Advance Payments | (l) Deferred Revenue and Advance Payments Deferred revenue and advance payments represent amounts received or due from customers in advance of the Company transferring its software or services to the customer under an enforceable contract. In the case of multi-year service contracts, the Company generally does not invoice more than one year in advance of services and does not record deferred revenue for amounts that have not been invoiced and that require an additional contract. Revenue is subsequently recognized in the period(s) in which control of the software or services is transferred to the customer. Deferred revenue is comprised of deferred product licenses and subscription services, product support, or other services revenue based on the transaction price allocated to the specific performance obligation in the contract with the customer. |
Convertible Debt Arrangement | (m) Convertible Debt Arrangement As discussed in Note 9, Convertible Senior Notes, to the Consolidated Financial Statements, the Company issued convertible senior notes in December 2020. As the notes contain conversion features, the Company must separate the debt and equity components of the notes. The carrying amount of the liability component is determined by measuring the fair value of a similar debt instrument without any associated conversion features at the time of issuance and the carrying amount of the equity component is determined by deducting the fair value of the liability component from the initial proceeds of the notes. The Company also allocates issuance costs associated with the offering between debt and equity based on their relative carrying values at the time of issuance. Such issuance costs are taken as a direct reduction to the debt and equity components. Both the difference between the principal and the liability component’s initial carrying value and the issuance costs allocated to the debt component are amortized to interest expense using the effective interest method over the expected term of the notes. In determining the fair value of a similar debt instrument without any associated conversion features, the Company estimated a nonconvertible debt borrowing rate at the time of issuance using a blend of different methodologies, which considered Level 2 inputs such as observable market prices of the Company’s debt and class A common stock, the Company’s historical and implied class A common stock volatility, a synthetic credit rating consistent with that utilized for determining the incremental borrowing rate for the Company’s accounting of leasing arrangements, and analysis of similar convertible debt issuances and their equivalent nonconvertible debt yields. |
Revenue Recognition | (n) Revenue Recognition The Company recognizes revenue using a five-step model: (i) Identifying the contract(s) with a customer, (ii) Identifying the performance obligation(s), (iii) Determining the transaction price, (iv) Allocating the transaction price to the performance obligations in the contract, and (v) Recognizing revenue when, or as, the Company satisfies a performance obligation. The Company has elected to exclude taxes assessed by government authorities in determining the transaction price, and therefore revenue is recognized net of taxes collected from customers. Performance Obligations and Timing of Revenue Recognition The Company primarily sells goods and services that fall into the categories discussed below. Each category contains one or more performance obligations that are either (i) capable of being distinct (i.e., the customer can benefit from the good or service on its own or together with readily available resources, including those purchased separately from the Company) and distinct within the context of the contract (i.e., separately identifiable from other promises in the contract) or (ii) a series of distinct goods or services that are substantially the same and have the same pattern of transfer to the customer. Aside from the Company’s term and perpetual product licenses, which are delivered at a point in time, the majority of the Company’s services are delivered over time. Product Licenses The Company sells different types of business intelligence software, licensed on a term or perpetual basis and installed either on premises or on a public cloud that is procured and managed by the customer. Although product licenses are sold with product support, the software is fully functional at the outset of the arrangement and is considered a distinct performance obligation. Revenue from product license sales is recognized when control of the license is transferred to the customer, which is the later of delivery or commencement of the license term. The Company may also sell through resellers and OEMs who purchase the Company’s software for resale. In reseller arrangements, revenue is recognized when control of the license is transferred to the end user. In OEM arrangements, revenue is recognized when control of the license is transferred to the OEM. Subscription Services The Company also sells access to its software through MCE, a cloud subscription service, wherein customers access the software through a cloud environment that the Company manages on behalf of the customer. Control of the software itself does not transfer to the customer under this arrangement and is not considered a separate performance obligation. Cloud subscriptions are regularly sold on a standalone basis and include technical support, monitoring, backups, updates, and quarterly service reviews. Product Support In all product license transactions, customers are required to purchase a standard product support package and may also purchase a premium product support package for a fixed annual fee. All product support packages include both technical support and when-and-if-available software upgrades, which are treated as a single performance obligation as they are considered a series of distinct services that are substantially the same and have the same duration and measure of progress. Revenue from product support is recognized on a straight-line basis over the contract period, which is the period over which the customer has continuous access to product support. Consulting Services The Company sells consulting services to help customers plan and execute deployment of the Company’s software. Customers are not required to use consulting services to fully benefit from the software. Consulting services are regularly sold on a standalone basis and either (i) prepaid upfront or (ii) sold on a time and materials basis. Consulting arrangements are each considered separate performance obligations because they do not integrate with each other or with other offerings to deliver a combined output to the customer, do not modify or customize (or are not modified or customized by) each other or other offerings, and do not affect the customer’s ability to use the other consulting services or the Company’s other offerings. Revenue under consulting arrangements is recognized over time as services are delivered. For time and materials-based consulting arrangements, the Company has elected the practical expedient of recognizing revenue upon invoicing since the invoiced amount corresponds directly to the value of the Company’s service to date. Education Services The Company sells various education and training services to its customers. Education services are sold on a standalone basis under two different types of arrangements: (i) annual subscriptions to live and on-demand training courses and (ii) custom courses purchased on an hourly basis. Education arrangements are each considered separate performance obligations because they do not integrate with each other or with other offerings to deliver a combined output to the customer, do not modify or customize (or are not modified or customized by) each other or other offerings, and do not affect the customer’s ability to use the other education services or the Company’s other offerings. Revenue on annual subscriptions is recognized on a straight-line basis over the contract period, which is the period over which the customer has continuous access to the training courses. Revenue on custom courses is recognized on a time and materials basis as the services are delivered. See Note 16, Segment Information, to the Consolidated Financial Statements for information regarding total revenues by geographic region. Estimates and Judgments The Company makes estimates and judgments to allocate the transaction price based on an observable or estimated SSP. The Company also makes estimates and judgements with respect to capitalizing incremental costs to obtain a customer contract and determining the subsequent amortization period. These estimates and judgments are discussed further below. Determining the Transaction Price The transaction price includes both fixed and variable consideration. Variable consideration is included in the transaction price to the extent it is probable that a significant reversal will not occur. The amount of variable consideration excluded from the transaction price was not material for the years ended December 31, 2020, 2019, and 2018. The Company’s estimates of variable consideration are also subject to subsequent true-up adjustments and may result in changes to its transaction prices. Such true-up adjustments have not been and are not expected to be material. The Company has the following sources of variable consideration: (i) Performance penalties – Subscription services and product support arrangements generally contain performance response time guarantees. For subscription services arrangements, the Company estimates variable consideration using a portfolio approach because performance penalties are tied to standard up-time requirements. For product support arrangements, the Company estimates variable consideration on a contract basis because such arrangements are customer-specific. For both subscription services and product support arrangements, the Company uses an expected value approach to estimate variable consideration based on historical business practices and current and future performance expectations to determine the likelihood of incurring penalties. (ii) Extended payment terms – The Company’s standard payment terms are generally within 180 days of invoicing. If extended payment terms are granted to customers, those terms generally do not exceed one year. For contracts with extended payment terms, the Company estimates variable consideration on a contract basis because such estimates are customer-specific and uses an expected value approach to analyze historical business experience on a customer-by-customer basis to determine the likelihood that extended payment terms lead to an implied price concession. (iii) Sales and usage-based royalties – Certain product license arrangements include sales or usage-based royalties, covering both product license and product support. In these arrangements, the Company uses an expected value approach to estimate and recognize revenue for royalty sales each period, utilizing historical data on a contract-by-contract basis. True-up adjustments are recorded in subsequent periods when royalty reporting is received from the OEMs. The Company provides a standard software assurance warranty to repair, replace, or refund software that does not perform in accordance with documentation. The standard software assurance warranty period is generally less than one year. Assurance warranty claims were not material for the years ended December 31, 2020, 2019, and 2018. The Company does not adjust the transaction price for significant financing components where the time period between cash payment and performance is one year or less. However, there are circumstances where the timing between cash payment and performance may exceed one year. These circumstances generally involve prepaid multi-year product support and subscription services arrangements where the customer determines when the service is utilized (e.g., when to request on-call support services or when to use and access the software in the cloud). In these circumstances, the Company has determined no significant financing component exists because the customer controls when to utilize the service and because there are significant business purposes behind the timing difference between payment and performance (e.g., maximizing profit in the case of product support services and ensuring collectability in the case of subscription services). Allocating the Transaction Price Based on Standalone Selling Prices (SSP) The Company allocates the transaction price to each performance obligation in a contract based on its relative SSP. The SSP is the price, or estimated price, of the software or service when sold on a standalone basis at contract inception. In circumstances where SSP is not directly observable, the Company estimates SSP using the following methodologies: (i) Product licenses – Product licenses are not sold on a standalone basis and pricing is highly variable. The Company establishes SSP of product licenses using a residual approach after first establishing the SSP of standard product support. Standard product support is sold on a standalone basis within a narrow range of the stated net license fee, and because an economic relationship exists between product licenses and standard product support, the Company has concluded that the residual method to estimate SSP of product licenses sold on both a perpetual and term basis is a fair allocation of the transaction price. (ii) Subscription services – Given the highly variable selling price of subscription services, the Company establishes the SSP of its subscription services arrangements using a similar residual approach after first establishing the SSP of consulting and education services to the extent they are included in the arrangement. The Company has concluded that the residual method to estimate SSP of its subscription services is a fair allocation of the transaction price. (iii) Standard product support – The Company establishes SSP of standard product support as a percentage of the stated net license fee, given such pricing is consistent with its normal pricing practices and there exists sufficient history of customers renewing standard product support on a standalone basis at similar percentages. Semi-annually, the Company tracks renewal rates negotiated when standard product support is initially sold with a perpetual license in order to determine the SSP of standard product support within each geographic region for the upcoming quarter. If the stated standard product support fee falls within the SSP range, the specific rate in the contract will be used to determine SSP. If the stated fee is above or below SSP, the highest or lowest end of the range, respectively, will generally be used to determine SSP of standard product support for perpetual licenses. For term licenses, the Company determines SSP of standard product support at the lower end of the SSP range used for perpetual licenses because the term licenses are time bound, resulting in a lower value placed on product support as compared to a perpetual license. (iv) Premium product support, consulting services, and education services –SSP of premium product support, consulting services, and education services is established by using a bell-shaped curve approach to define a narrow range within each geographic region in which the services are discounted off of the list price on a standalone basis. The Company often provides options to purchase future offerings at a discount. The Company analyzes the option price against the previously established SSP of the goods or services to determine if the options represent material rights that should be accounted for as separate performance obligations. In general, an option sold at or above SSP is not considered a material right because the customer could have received that right without entering into the contract. If a material right exists, revenue associated with the option is deferred and recognized when the future goods or services are transferred, or when the option expires. During the years ended December 31, 2020, 2019, and 2018, separate performance obligations arising from future purchase options have not been material. |
Incremental Costs to Obtain Customer Contracts | Incremental Costs to Obtain Customer Contracts Incremental costs incurred to obtain contracts with customers include certain variable compensation (e.g., commissions and bonuses) paid to the Company’s sales team. Although the Company may bundle its goods and services into one contract, commissions are individually determined on each distinct good or service in the contract. The Company expenses as incurred those amounts earned on consulting and education services, which are generally performed within a one-year period and primarily sold on a standalone basis. The Company also expenses as incurred those amounts earned on product license sales, since the amount is earned when the license is delivered. The Company capitalizes those amounts earned on initial-year product support and cloud subscriptions and amortizes the costs over a period of time that is consistent with the pattern of transfer to the customer, which the Company has determined to be a period of three years. Although the Company typically sells product support and cloud subscriptions for a period of one year, a majority of customers renew their product support and cloud subscription arrangements. Three years is generally the period after which platforms are no longer supported by the Company's support team and when customers generally choose to upgrade their software platform. The Company does not currently pay variable compensation on product support or cloud subscription renewals. As of December 31, 2020 and 2019, capitalized costs to obtain customer contracts, net of accumulated amortization, were $6.1 million and $4.8 million, respectively, and are presented within “Deposits and other assets” in the Consolidated Balance Sheets. During the years ended December 31, 2020, 2019, and 2018, amortization expenses related to these capitalized costs were $3.1 million, $2.9 million, and $2.3 million, respectively, and are reflected within “Sales and marketing” in the Consolidated Statements of Operations. |
Advertising Costs | (o) Advertising Costs Advertising costs include production costs, which are expensed the first time the advertisement takes place, and media placement costs, which are expensed in the month the advertising appears. Total advertising costs were $0.1 million, $0.9 million, and $7.1 million for the years ended December 31, 2020, 2019, and 2018, respectively. As of December 31, 2020 and 2019, the Company had no prepaid advertising costs. |
Share-based Compensation | (p) Share-based Compensation The Company maintains the 2013 Equity Plan, under which the Company’s employees, officers, directors, and other eligible participants may be awarded various types of share-based compensation, including options to purchase shares of the Company’s class A common stock, restricted stock units, and other stock-based awards. The Company recognizes share-based compensation expense associated with these awards on a straight-line basis over the award’s requisite service period (generally, the vesting period). For options and other stock-based awards, the share-based compensation expense is based on the fair value of the awards on the date of grant, as estimated using the Black-Scholes option pricing model. For restricted stock units, the share-based compensation expense is based on the fair value of the Company’s class A common stock on the date of grant. See Note 12, Share-based Compensation, to the Consolidated Financial Statements for further information regarding the 2013 Equity Plan, related share-based compensation expense, and assumptions used in determining the fair value of these awards. |
Income Taxes | (q) Income Taxes The Company is subject to federal, state, and local income taxes in the United States and a number of foreign countries. Deferred income taxes are provided based on enacted tax laws and rates applicable to the periods in which the taxes become payable. For uncertain income tax positions, the Company uses a more-likely-than-not recognition threshold based on the technical merits of the income tax position taken. Income tax positions that meet the more-likely-than-not recognition threshold are measured in order to determine the tax benefit recognized in the financial statements. The Company recognizes accrued interest related to unrecognized tax benefits as part of income tax expense. Penalties, if incurred, are recognized as a component of income tax expense. The Company provides a valuation allowance to reduce deferred tax assets to their estimated realizable value, when appropriate. In determining the Company’s provision for (benefit from) income taxes, net deferred tax assets, liabilities, and valuation allowances, management is required to make estimates and judgments related to projections of domestic and foreign profitability, the timing and extent of the utilization of NOL carryforwards, applicable tax rates, transfer pricing methods, and prudent and feasible tax planning strategies. As a multinational company, the Company is required to calculate and provide for estimated income tax liabilities for each of the tax jurisdictions in which it operates. This process involves estimating current tax obligations and exposures in each jurisdiction, as well as making judgments regarding the future recoverability of deferred tax assets. Changes in the estimated level of annual pre-tax income, changes in tax laws, particularly changes related to the utilization of NOLs in various jurisdictions, and changes resulting from tax audits can all affect the overall effective income tax rate which, in turn, impacts the overall level of income tax expense or benefit and net income. Estimates and judgments related to the Company’s projections and assumptions are inherently uncertain. Therefore, actual results could differ materially from projections. Currently, the Company expects to use its deferred tax assets, subject to Internal Revenue Code limitations, within the carryforward periods. Valuation allowances have been established where the Company has concluded that it is more likely than not that such deferred tax assets are not realizable. If the Company is unable to regain profitability in future periods, it may be required to increase the valuation allowance against the deferred tax assets, which could result in a charge that would materially adversely affect net (loss) income in the period in which the charge is incurred. |
Basic and Diluted Earnings Per Share | (r) Basic and Diluted Earnings Per Share Basic earnings per share is determined by dividing the net income attributable to common stockholders by the weighted average number of common shares and participating securities outstanding during the period. Participating securities are included in the basic earnings per share calculation when dilutive. Diluted earnings per share is determined by dividing the net income attributable to common stockholders by the weighted average number of common shares and potential common shares outstanding during the period. Potential common shares are included in the diluted earnings per share calculation when dilutive. Potential common shares consisting of class A common stock issuable upon exercise of outstanding employee stock options and the vesting of restricted stock units are computed using the treasury stock method. Potential common shares consisting of class A common stock issuable upon conversion of the Company’s convertible senior notes are computed using the treasury stock method. As discussed in Note 9, Convertible Senior Notes, to the Consolidated Financial Statements, the Company currently intends to settle the principal amount of the notes in cash and any excess value in shares of class A common stock. Therefore, only the amount by which the conversion value exceeds the aggregate principal amount of the notes (“the conversion spread”) is considered in computing potential common shares issuable under the treasury stock method. The conversion spread will have a dilutive impact only when the average market price of the Company’s class A common stock for a given period exceeds the conversion price, which was $397.99 per share as of December 31, 2020. The Company has two classes of common stock: class A common stock and class B common stock. Holders of class A common stock generally have the same rights, including rights to dividends, as holders of class B common stock, except that holders of class A common stock have one vote per share while holders of class B common stock have ten votes per share. Each share of class B common stock is convertible at any time, at the option of the holder, into one share of class A common stock. As such, basic and fully diluted earnings per share for class A and class B common stock are the same. The Company has never declared or paid any cash dividends on either class A or class B common stock. As of December 31, 2020 and 2019 , there were no shares of preferred stock outstanding. |
Foreign Currency Translation | (s) Foreign Currency Translation The functional currency of the Company’s international operations is generally the local currency. Accordingly, all assets and liabilities of international subsidiaries are translated using exchange rates in effect at the end of the period, and revenue and expenses are translated using average monthly exchange rates for the period in which the transactions occur. The related translation adjustments are reported in “Accumulated other comprehensive income (loss)” in stockholders’ equity. In general, upon complete or substantially complete liquidation of an investment in an international subsidiary, the amount of accumulated translation adjustments attributable to that subsidiary is reclassified from stockholders’ equity to the statement of operations. Transaction gains and losses arising from transactions denominated in a currency other than the functional currency of the entity involved are included in the results of operations. As of December 31, 2020, 2019, and 2018, the cumulative foreign currency translation balances were $(3.9) million, $(9.8) million, and $(9.8) million, respectively. No taxes were recognized on the temporary differences resulting from foreign currency translation adjustments for the years ended December 31, 2020, 2019, and 2018. Transaction gains and losses arising from transactions denominated in foreign currencies resulted in net losses of $7.6 million and $1.0 million in 2020 and 2019, respectively, and a net gain of $4.7 million in 2018, and are included in “Other (expense) income, net” in the Consolidated Statements of Operations. |
Concentrations of Credit Risk | (t) Concentrations of Credit Risk Financial instruments that potentially subject the Company to concentrations of credit risk consist primarily of cash and cash equivalents, restricted cash, and accounts receivable. The Company places its cash equivalents with high credit-quality financial institutions and has established guidelines relative to credit ratings and maturities that seek to maintain safety and liquidity. The Company sells its offerings to various companies across several industries throughout the world in the ordinary course of business. The Company routinely assesses the financial strength of its customers and maintains allowances for anticipated losses. As of December 31, 2020 and 2019, no individual customer accounted for 10% or more of net accounts receivable, and for the years ended December 31, 2020, 2019, and 2018, no individual customer accounted for 10% or more of revenue. |
Recent Accounting Standards (Ta
Recent Accounting Standards (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Accounting Changes And Error Corrections [Abstract] | |
Summary Impact of ASU 2020-06 on Opening Consolidated Balance Sheet | The Company currently estimates the adoption of ASU 2020-06 will impact the opening consolidated balance sheet as follows (in thousands): Consolidated Balance Sheet December 31, 2020 As Reported Effect of the Adoption of ASU 2020-06 January 1, 2021 As Adjusted Deferred tax liabilities (assets) 8,211 (41,693 ) (33,482 ) Convertible senior notes, net 486,366 148,546 634,912 Additional paid-in-capital 763,051 (107,810 ) 655,241 Retained earnings 575,965 957 576,922 |
Contract Balances (Tables)
Contract Balances (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Contract With Customer Asset And Liability [Abstract] | |
Schedule of Accounts Receivable | Accounts receivable (in thousands) consisted of the following, as of: December 31, 2020 2019 Billed and billable $ 200,221 $ 165,153 Less: allowance for credit losses (2,760 ) (1,637 ) Accounts receivable, net $ 197,461 $ 163,516 |
Deferred Revenue and Advance Payments | Deferred revenue and advance payments (in thousands) from customers consisted of the following, as of: December 31, 2020 2019 Current: Deferred product licenses revenue $ 1,495 $ 481 Deferred subscription services revenue 26,258 16,561 Deferred product support revenue 156,216 161,670 Deferred other services revenue 7,281 8,395 Total current deferred revenue and advance payments $ 191,250 $ 187,107 Non-current: Deferred product licenses revenue $ 139 $ 293 Deferred subscription services revenue 8,758 97 Deferred product support revenue 5,055 3,417 Deferred other services revenue 710 537 Total non-current deferred revenue and advance payments $ 14,662 $ 4,344 |
Property and Equipment (Tables)
Property and Equipment (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Property Plant And Equipment [Abstract] | |
Schedule of Property and Equipment | Property and equipment (in thousands) consisted of the following, as of: December 31, 2020 2019 Transportation equipment $ 48,645 $ 48,645 Computer equipment and purchased software 61,299 58,920 Furniture and equipment 10,460 10,464 Leasehold improvements 31,403 31,023 Internally developed software 9,917 9,849 Property and equipment, gross 161,724 158,901 Less: accumulated depreciation and amortization (118,749 ) (108,747 ) Property and equipment, net $ 42,975 $ 50,154 |
Leases (Tables)
Leases (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Leases [Abstract] | |
Components of Lease Cost and Other Lease | The following table presents the Company’s total lease cost and other lease details for the year ended December 31, 2020 (in thousands, except years and discount rates): Year Ended December 31, 2020 2019 Lease cost: Operating lease cost $ 11,772 $ 15,020 Short-term lease cost 1,158 2,015 Variable lease cost 1,382 1,175 Total lease cost $ 14,312 $ 18,210 Other information: Cash paid for amounts included in the measurement of operating lease liabilities $ 17,497 $ 15,614 ROU assets obtained in exchange for new operating lease liabilities $ 743 $ 5,016 Weighted average remaining lease term in years – operating leases 9.1 10.0 Weighted average discount rate – operating leases 6.1 % 6.0 % |
Schedule of Maturities of Operating Lease Liabilities | The following table presents the maturities of the Company’s operating lease liabilities as of December 31, 2020 (in thousands): For the year ended December 31, 2021 $ 16,186 2022 14,311 2023 13,937 2024 12,051 2025 11,649 Thereafter 55,643 Total lease payments 123,777 Less: imputed interest (28,636 ) Total $ 95,141 Reported as: Current operating lease liabilities $ 10,813 Non-current operating lease liabilities 84,328 Total $ 95,141 |
Convertible Senior Notes (Table
Convertible Senior Notes (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Debt Instrument [Line Items] | |
Schedule of Net Carrying Amount of Liability and Equity Component of Convertible Senior Notes | As of December 31, 2020, the net carrying amount of the liablity component of the Notes is classified as a long-term liability in the “Convertible Senior Notes” line item in the Company’s Consolidated Balance Sheet as follows (in thousands): December 31, 2020 Principal $ 650,000 Unamortized debt discount (152,075 ) Unamortized issuance costs (11,559 ) Net carrying amount of debt $ 486,366 As of December 31, 2020, the net carrying amount of the equity component of the Notes is classified as permanent equity and included in “additional paid in capital” in the Company’s Consolidated Balance Sheet as follows (in thousands): December 31, 2020 Debt discount for conversion option $ 153,527 Issuance costs allocated to equity (3,602 ) Deferred tax liability, net of deferred tax asset, related to debt discount and issuance costs (42,115 ) Net carrying amount of equity $ 107,810 |
Convertible Senior Notes | |
Debt Instrument [Line Items] | |
Schedule of Interest Expense Related to Notes | For the year ended December 31, 2020, interest expense related to the Notes was as follows (in thousands): Year Ended December 31, 2020 Contractual interest expense $ 271 Amortization of debt discount 1,452 Amortization of issuance costs allocated to debt 91 Total interest expense $ 1,814 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Commitments And Contingencies Disclosure [Abstract] | |
Schedule of Future Minimum Payments under Contractual Obligations | The following table shows future minimum payments related to the Notes (semi-annual interest payments and principal upon maturity), noncancelable purchase agreements with initial terms of greater than one year, and anticipated payments related to the Transition Tax resulting from the Tax Act based on the expected due dates of the various installments as of December 31, 2020 (in thousands): Year Convertible Senior Notes Purchase Obligations Transition Tax 2021 $ 4,740 $ 13,825 $ 2,951 2022 4,875 9,673 2,952 2023 4,875 8,705 5,534 2024 4,875 669 7,379 2025 655,078 682 9,223 Thereafter 0 1,048 0 $ 674,443 $ 34,602 $ 28,039 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Income Tax Disclosure [Abstract] | |
Schedule of Components of (Loss) Income Before Income Taxes | U.S. and international components of (loss) income before income taxes (in thousands) were comprised of the following for the periods indicated: Years Ended December 31, 2020 2019 2018 U.S. $ (53,250 ) $ 9,944 $ (18,295 ) Foreign 33,297 28,319 38,777 Total $ (19,953 ) $ 38,263 $ 20,482 |
Schedule of (Benefit from) Provision for Income Taxes | The (benefit from) provision for income taxes (in thousands) consisted of the following for the periods indicated: Years Ended December 31, 2020 2019 2018 Current: Federal $ 1,861 $ 1,256 $ (1,916 ) State 1,445 143 1,656 Foreign 5,221 5,135 6,460 $ 8,527 $ 6,534 $ 6,200 Deferred: Federal $ (15,038 ) $ (749 ) $ (6,071 ) State (6,269 ) (480 ) (2,047 ) Foreign 351 (1,397 ) (101 ) $ (20,956 ) $ (2,626 ) $ (8,219 ) Total (benefit) provision $ (12,429 ) $ 3,908 $ (2,019 ) |
Schedule of Effective Income Tax Rate Reconciliation | The benefit from or provision for income taxes differs from the amount computed by applying the federal statutory income tax rate to the Company’s loss or income before income taxes as follows for the periods indicated: Years Ended December 31, 2020 2019 2018 Income tax expense at federal statutory rate 21.0 % 21.0 % 21.0 % State taxes, net of federal tax effect 18.0 % (1.7 )% (1.3 )% Foreign earnings taxed at different rates 21.7 % (6.1 )% (20.5 )% Book tax difference in amortization of intangible property 0.0 % (4.6 )% 0.0 % Withholding tax (12.5 )% 3.1 % 5.5 % Foreign tax credit 3.8 % (3.0 )% (5.2 )% Other international components (3.5 )% 0.2 % 0.3 % Change in valuation allowance 2.7 % 1.6 % 2.5 % Deferred tax adjustments and rate changes (3.4 )% 1.0 % (1.7 )% Meals and entertainment (1.3 )% 1.3 % 2.6 % Non-deductible officers compensation (12.5 )% 1.4 % 2.1 % Subpart F income (2.0 )% 3.2 % 7.0 % Research and development tax credit 19.9 % (9.3 )% (11.8 )% Stock compensation 11.8 % 1.8 % 5.8 % GILTI, net of foreign tax credit (1.1 )% 0.9 % 0.5 % FDII 3.1 % (1.9 )% (4.5 )% Transition Tax 0.0 % 0.0 % (15.2 )% Other permanent differences (3.4 )% 1.3 % 3.0 % Total 62.3 % 10.2 % (9.9 )% |
Schedule of Effective Tax Rate for (Loss) Income Before Income Taxes | The Company’s U.S. and foreign effective tax rates for (loss) income before income taxes were as follows for the periods indicated: Years Ended December 31, 2020 2019 2018 U.S. 33.8 % 1.7 % 45.8 % Foreign 16.7 % 13.2 % 16.4 % Combined 62.3 % 10.2 % (9.9 )% |
Schedule of Components of Deferred Tax Assets and Liabilities | Significant components of the Company’s deferred tax assets and liabilities (in thousands) were as follows for the periods indicated: December 31, 2020 2019 Deferred tax assets, net: Net operating loss carryforwards $ 1,690 $ 874 Tax credits 4,158 2,553 Intangible assets 1,707 1,878 Deferred revenue adjustment 408 423 Accrued compensation 6,527 6,257 Share-based compensation expense 11,410 14,182 Deferred rent 0 1,330 Digital asset impairment losses 19,843 0 Other 3,605 1,453 Deferred tax assets before valuation allowance 49,348 28,950 Valuation allowance (1,259 ) (2,130 ) Deferred tax assets, net of valuation allowance 48,089 26,820 Deferred tax liabilities: Prepaid expenses and other 1,792 1,693 Property and equipment 4,233 5,092 Debt discount, net of issuance costs 41,693 0 Deferred tax on undistributed foreign earnings 1,741 0 Method change 338 652 Total deferred tax liabilities 49,797 7,437 Total net deferred tax (liability) asset $ (1,708 ) $ 19,383 Reported as: Non-current deferred tax assets, net 6,503 19,409 Non-current deferred tax liabilities (8,211 ) (26 ) Total net deferred tax (liability) asset $ (1,708 ) $ 19,383 |
Schedule of Change In Unrecognized Tax Benefits | The change in unrecognized income tax benefits (in thousands) is presented in the table below: Unrecognized income tax benefits at January 1, 2020 $ 1,563 Increase related to positions taken in prior period 2,580 Increase related to positions taken in current period 283 Decrease related to expiration of statute of limitations (133 ) Unrecognized income tax benefits at December 31, 2020 4,293 Accrued interest 295 Unrecognized income tax benefits recorded in other long-term liabilities at December 31, 2020 $ 4,588 |
Share-based Compensation (Table
Share-based Compensation (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Summary of Stock Option Activity | The following table summarizes the Company’s stock option activity (in thousands, except per share data and years) for the periods indicated: Stock Options Outstanding Weighted Average Aggregate Weighted Average Exercise Price Intrinsic Remaining Contractual Shares Per Share Value Term (Years) Balance as of January 1, 2018 992 $ 145.28 Granted 710 130.27 Exercised (21 ) 121.13 $ 196 Forfeited/Expired (201 ) 154.49 Balance as of December 31, 2018 1,480 137.16 Granted 470 150.88 Exercised (51 ) 128.17 $ 799 Forfeited/Expired (265 ) 135.88 Balance as of December 31, 2019 1,634 141.60 Granted 118 146.76 Exercised (348 ) 146.80 $ 29,994 Forfeited/Expired (247 ) 146.63 Balance as of December 31, 2020 1,157 $ 139.48 Exercisable as of December 31, 2020 644 $ 135.05 $ 163,318 4.1 Expected to vest as of December 31, 2020 513 $ 145.05 124,947 8.4 Total 1,157 $ 139.48 $ 288,265 6.0 |
Schedule of Range of Exercise Prices per Share | Stock options outstanding as of December 31, 2020 are comprised of the following range of exercise prices per share (in thousands, except per share data and years): Stock Options Outstanding at December 31, 2020 Weighted Average Weighted Average Exercise Price Remaining Contractual Range of Exercise Prices per Share Shares Per Share Term (Years) $121.43 - $140.00 710 $ 124.45 4.8 $140.01 - $160.00 268 $ 151.33 9.0 $160.01 - $180.00 69 $ 169.37 6.8 $180.01 - $201.25 110 $ 188.97 6.0 Total 1,157 $ 139.48 6.0 |
Assumptions Used in Black-Scholes Pricing Model | The weighted average grant date fair value of stock option awards using the Black-Scholes option pricing model was $49.68, $54.36, and $51.68 for each share subject to a stock option granted during the years ended December 31, 2020, 2019, and 2018, respectively, based on the following assumptions: Years Ended December 31, 2020 2019 2018 Expected term of options in years 6.3 6.3 6.3 Expected volatility 33.6% - 34.6% 33.2% - 33.4% 33.7% - 35.5% Risk-free interest rate 0.3% - 0.5% 1.7% - 2.5% 2.7% - 2.9% Expected dividend yield 0.0% 0.0% 0.0% |
Summary of Restricted Stock Unit Activity | The following table summarizes the Company’s restricted stock unit activity (in thousands) for the periods indicated: Restricted Stock Units Outstanding Aggregate Intrinsic Units Value Balance as of January 1, 2020 0 Granted 76 Vested 0 $ 0 Forfeited (2 ) Balance as of December 31, 2020 74 Expected to vest as of December 31, 2020 74 $ 28,908 |
Basic and Diluted Earnings pe_2
Basic and Diluted Earnings per Share (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Earnings Per Share [Abstract] | |
Computation of Basic and Diluted Earnings Per Share | The following table sets forth the computation of basic and diluted earnings per share (in thousands, except per share data) for the periods indicated: Years Ended December 31, 2020 2019 2018 Numerator: Net income $ (7,524 ) $ 34,355 $ 22,501 Denominator: Weighted average common shares of class A common stock 7,658 8,221 9,340 Weighted average common shares of class B common stock 2,026 2,035 2,035 Total weighted average common stock shares outstanding 9,684 10,256 11,375 Effect of dilutive securities: Employee stock options 0 72 37 Adjusted weighted average shares 9,684 10,328 11,412 Earnings per share: Basic earnings per share $ (0.78 ) $ 3.35 $ 1.98 Diluted earnings per share $ (0.78 ) $ 3.33 $ 1.97 |
Segment Information (Tables)
Segment Information (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Segment Reporting [Abstract] | |
Revenues and Long-Lived Assets, by Geographic Region | The following table presents total revenues, gross profit, and long-lived assets, excluding long-term deferred tax assets, (in thousands) according to geographic region: Geographic regions: Domestic EMEA Other Regions Consolidated Year ended December 31, 2020 Total revenues $ 279,220 $ 155,478 $ 46,037 $ 480,735 Gross profit $ 229,466 $ 124,513 $ 35,701 $ 389,680 Year ended December 31, 2019 Total revenues $ 273,581 $ 159,643 $ 53,103 $ 486,327 Gross profit $ 216,365 $ 126,939 $ 43,049 $ 386,353 Year ended December 31, 2018 Total revenues $ 287,258 $ 156,706 $ 53,674 $ 497,638 Gross profit $ 228,310 $ 126,315 $ 43,514 $ 398,139 As of December 31, 2020 Long-lived assets $ 1,165,283 $ 11,441 $ 9,765 $ 1,186,489 As of December 31, 2019 Long-lived assets $ 118,168 $ 13,636 $ 11,912 $ 143,716 |
Selected Quarterly Financial _2
Selected Quarterly Financial Data (Unaudited) (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Quarterly Financial Information Disclosure [Abstract] | |
Selected Quarterly Financial Data | The following tables contain unaudited Statement of Operations information for each quarter of 2020 and 2019. During the third and fourth quarters of 2020, the Company recorded impairment losses on its digital assets of $44.2 million and $26.5 million, respectively. During the second quarter of 2019, the Company recorded a gain of $29.8 million and an associated discrete tax provision of $8.1 million related to the Domain Name Sale. Quarter Ended March 31 June 30 September 30 December 31 Year (in thousands, except per share data) 2020 Revenues $ 111,424 $ 110,584 $ 127,408 $ 131,319 $ 480,735 Gross profit $ 86,879 $ 86,595 $ 105,672 $ 110,534 $ 389,680 Net income (loss) $ 657 $ 3,387 $ (14,229 ) $ 2,661 $ (7,524 ) Earnings (loss) per share: (1) Basic $ 0.07 $ 0.35 $ (1.48 ) $ 0.28 $ (0.78 ) Diluted $ 0.07 $ 0.35 $ (1.48 ) $ 0.27 $ (0.78 ) Quarter Ended March 31 June 30 September 30 December 31 Year (in thousands, except per share data) 2019 Revenues $ 115,366 $ 117,737 $ 119,693 $ 133,531 $ 486,327 Gross profit $ 89,193 $ 92,387 $ 95,878 $ 108,895 $ 386,353 Net (loss) income $ (7,906 ) $ 20,394 $ 9,700 $ 12,167 $ 34,355 (Loss) earnings per share: (1) Basic $ (0.77 ) $ 1.99 $ 0.95 $ 1.19 $ 3.35 Diluted $ (0.77 ) $ 1.98 $ 0.94 $ 1.18 $ 3.33 (1) The sum of the basic and diluted earnings (loss) per share for the four quarters may differ from annual earnings (loss) per share as the weighted average shares outstanding are computed independently for each of the quarters presented. |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies - Additional Information (Detail) | 6 Months Ended | 12 Months Ended | ||
Dec. 31, 2020USD ($)Customer$ / sharesshares | Dec. 31, 2020USD ($)Customer$ / sharesshares | Dec. 31, 2019USD ($)Customershares | Dec. 31, 2018USD ($)Customer | |
Summary Of Significant Accounting Policies [Line Items] | ||||
Short-term investments | $ 0 | $ 0 | $ 108,919,000 | |
Purchases of digital assets, amount | $ 1,125,000,000 | 1,125,000,000 | 0 | $ 0 |
Additions to capitalized software development costs | 0 | 0 | 0 | |
Capitalized computer software, amortization | $ 0 | 0 | 2,500,000 | |
Payment terms | The Company’s standard payment terms are generally within 180 days of invoicing. If extended payment terms are granted to customers, those terms generally do not exceed one year. | |||
Description of warranty | The standard software assurance warranty period is generally less than one year. | |||
Amortization period for capitalized contract costs | 3 years | 3 years | ||
Product support period | 1 year | |||
Capitalized cost to obtain customer contracts net | $ 6,100,000 | $ 6,100,000 | 4,800,000 | |
Advertising costs | 100,000 | 900,000 | 7,100,000 | |
Prepaid advertising costs | $ 0 | $ 0 | $ 0 | |
Common stock, conversion ratio | one | |||
Preferred stock, shares outstanding | shares | 0 | 0 | 0 | |
Cumulative foreign currency translation amount | $ (3,900,000) | $ (3,900,000) | $ (9,800,000) | (9,800,000) |
Foreign currency translation adjustments, tax | 0 | 0 | 0 | |
Transaction gains (losses) arising from transactions denominated in foreign currencies | $ (7,600,000) | $ (1,000,000) | $ 4,700,000 | |
Customer Concentration Risk | Sales Revenue, Goods, Net | ||||
Summary Of Significant Accounting Policies [Line Items] | ||||
Number of individual customer accounted for 10% or more of net accounts receivable | Customer | 0 | 0 | 0 | |
Number of individual customer accounted for 10% or more of total revenues | Customer | 0 | 0 | 0 | |
Class A | ||||
Summary Of Significant Accounting Policies [Line Items] | ||||
Common stock, voting rights, per share | one | |||
Class A | Convertible Debt | ||||
Summary Of Significant Accounting Policies [Line Items] | ||||
Common stock, convertible, conversion price | $ / shares | $ 397.99 | $ 397.99 | ||
Class B Convertible | ||||
Summary Of Significant Accounting Policies [Line Items] | ||||
Common stock, voting rights, per share | ten | |||
Sales and Marketing | ||||
Summary Of Significant Accounting Policies [Line Items] | ||||
Amortization expenses related to capitalized cost | $ 3,100,000 | $ 2,900,000 | $ 2,300,000 | |
Computer Equipment And Purchased Software | ||||
Summary Of Significant Accounting Policies [Line Items] | ||||
Estimated useful lives of assets, years | 3 years | |||
Office Equipment | ||||
Summary Of Significant Accounting Policies [Line Items] | ||||
Estimated useful lives of assets, years | 5 years | |||
Office Furniture | ||||
Summary Of Significant Accounting Policies [Line Items] | ||||
Estimated useful lives of assets, years | 10 years | |||
Corporate Aircraft | ||||
Summary Of Significant Accounting Policies [Line Items] | ||||
Estimated useful lives of assets, years | 19 years | |||
Estimated salvage value | 21.00% | 21.00% | ||
Software Development | ||||
Summary Of Significant Accounting Policies [Line Items] | ||||
Estimated useful lives of assets, years | 3 years |
Recent Accounting Standards - A
Recent Accounting Standards - Additional Information (Detail) - USD ($) | Jan. 01, 2019 | Dec. 31, 2020 | Dec. 31, 2019 | Jan. 01, 2018 |
New Accounting Pronouncements Or Change In Accounting Principle [Line Items] | ||||
Retained earnings | $ 575,965,000 | $ 583,489,000 | ||
Short-term investments | 0 | 108,919,000 | ||
Right-of-use assets | 73,597,000 | $ 85,538,000 | ||
Operating lease liabilities, Total | $ 95,141,000 | |||
Minimum | US Treasury Securities | ||||
New Accounting Pronouncements Or Change In Accounting Principle [Line Items] | ||||
Available-for-sale securities maturity range | 3 months | |||
Maximum | US Treasury Securities | ||||
New Accounting Pronouncements Or Change In Accounting Principle [Line Items] | ||||
Available-for-sale securities maturity range | 1 year | |||
ASU 2016-13 | Revision of Prior Period, Change in Accounting Principle, Adjustment | ||||
New Accounting Pronouncements Or Change In Accounting Principle [Line Items] | ||||
Retained earnings | $ 0 | |||
ASU 2018-15 | ||||
New Accounting Pronouncements Or Change In Accounting Principle [Line Items] | ||||
Material capitalized implementation costs | $ 0 | |||
ASU 2016-02 | ||||
New Accounting Pronouncements Or Change In Accounting Principle [Line Items] | ||||
Retained earnings | $ 0 | |||
Right-of-use assets | 88,800,000 | |||
Operating lease liabilities, Total | 116,900,000 | |||
Reductions in deferred rent | 28,500,000 | |||
Reductions in prepaid expenses | $ 400,000 | |||
ASU 2016-16 | Revision of Prior Period, Change in Accounting Principle, Adjustment | ||||
New Accounting Pronouncements Or Change In Accounting Principle [Line Items] | ||||
Retained earnings | $ 0 |
Recent Accounting Standards - S
Recent Accounting Standards - Summary Impact of ASU 2020-06 on Opening Consolidated Balance Sheet (Detail) - USD ($) $ in Thousands | Jan. 01, 2021 | Dec. 31, 2020 | Dec. 31, 2019 |
New Accounting Pronouncements Or Change In Accounting Principle [Line Items] | |||
Deferred tax liabilities (assets) | $ 8,211 | $ 26 | |
Convertible senior notes, net | 486,366 | 0 | |
Additional paid-in capital | 763,051 | 593,583 | |
Retained earnings | 575,965 | $ 583,489 | |
Pre-ASU 2020-06 | |||
New Accounting Pronouncements Or Change In Accounting Principle [Line Items] | |||
Deferred tax liabilities (assets) | 8,211 | ||
Convertible senior notes, net | 486,366 | ||
Additional paid-in capital | 763,051 | ||
Retained earnings | $ 575,965 | ||
ASU 2020-06 | |||
New Accounting Pronouncements Or Change In Accounting Principle [Line Items] | |||
Deferred tax liabilities (assets) | $ (41,693) | ||
Convertible senior notes, net | 148,546 | ||
Additional paid-in capital | (107,810) | ||
Retained earnings | 957 | ||
As Adjusted | |||
New Accounting Pronouncements Or Change In Accounting Principle [Line Items] | |||
Deferred tax liabilities (assets) | (33,482) | ||
Convertible senior notes, net | 634,912 | ||
Additional paid-in capital | 655,241 | ||
Retained earnings | $ 576,922 |
Short-term Investments - Additi
Short-term Investments - Additional Information (Detail) - USD ($) | Dec. 31, 2020 | Dec. 31, 2019 |
Summary Of Investment Holdings [Line Items] | ||
Short-term investments | $ 0 | $ 108,919,000 |
US Treasury Securities | ||
Summary Of Investment Holdings [Line Items] | ||
Available-for-sale securities, amortized cost | 108,800,000 | |
Available-for-sale securities, fair value | 108,900,000 | |
Available-for-sale securities, unrealized loss position | $ 0 |
Digital Assets - Additional Inf
Digital Assets - Additional Information (Detail) | 3 Months Ended | 6 Months Ended | 12 Months Ended | |||
Dec. 31, 2020USD ($) | Sep. 30, 2020USD ($) | Dec. 31, 2020USD ($) | Dec. 31, 2020USD ($)Bitcoin | Dec. 31, 2019USD ($) | Dec. 31, 2018USD ($) | |
Intangible Assets Net Excluding Goodwill [Abstract] | ||||||
Number of bitcoins purchased | Bitcoin | 70,469 | |||||
Purchases of digital assets, amount | $ 1,125,000,000 | $ 1,125,000,000 | $ 0 | $ 0 | ||
Digital asset impairment losses | $ 26,500,000 | $ 44,200,000 | 70,698,000 | 0 | $ 0 | |
Digital assets | $ 1,054,302,000 | $ 1,054,302,000 | 1,054,302,000 | $ 0 | ||
Cumulative impairment of digital assets | 70,700,000 | |||||
Sale of digital assets | $ 0 |
Schedule of Accounts Receivable
Schedule of Accounts Receivable (Detail) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Receivables [Abstract] | ||
Billed and billable | $ 200,221 | $ 165,153 |
Less: allowance for credit losses | (2,760) | (1,637) |
Accounts receivable, net | $ 197,461 | $ 163,516 |
Contract Balances - Additional
Contract Balances - Additional Information (Detail) - USD ($) | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Contract With Customer Asset And Liability [Line Items] | |||
Revenue, Remaining performance obligation | $ 205,900 | ||
Prepaid Expenses and Other Current Assets | |||
Contract With Customer Asset And Liability [Line Items] | |||
Assets impairment charges | 0 | $ 0 | $ 0 |
Contract assets | 1,100,000 | 1,200,000 | |
Current Deferred Revenue and Advanced Payments | |||
Contract With Customer Asset And Liability [Line Items] | |||
Revenue recognized from beginning deferred revenue | $ 182,600,000 | $ 174,700,000 | $ 194,600,000 |
Deferred Revenue and Advance Pa
Deferred Revenue and Advance Payments (Detail) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Deferred Revenue Disclosure [Abstract] | ||
Deferred product licenses revenue, Current | $ 1,495 | $ 481 |
Deferred subscription services revenue, Current | 26,258 | 16,561 |
Deferred product support revenue, Current | 156,216 | 161,670 |
Deferred other services revenue, Current | 7,281 | 8,395 |
Total current deferred revenue and advance payments | 191,250 | 187,107 |
Deferred product licenses revenue, Non-current | 139 | 293 |
Deferred subscription services revenue, Non-current | 8,758 | 97 |
Deferred product support revenue, Non-current | 5,055 | 3,417 |
Deferred other services revenue, Non-current | 710 | 537 |
Total non-current deferred revenue and advance payments | $ 14,662 | $ 4,344 |
Contract Balances - Additiona_2
Contract Balances - Additional Information (Detail1) - USD ($) | Dec. 31, 2020 | Dec. 31, 2019 |
Contract With Customer Asset And Liability [Line Items] | ||
Revenue, Remaining performance obligation | $ 205,900 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date: 2021-01-01 | ||
Contract With Customer Asset And Liability [Line Items] | ||
Revenue, Remaining performance obligation | $ 191,300,000 | |
Revenue, Remaining performance obligations, Expected timing of satisfaction, Period | 12 months | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date: 2022-01-01 | ||
Contract With Customer Asset And Liability [Line Items] | ||
Revenue, Remaining performance obligation | $ 14,700,000 | |
Revenue, Remaining performance obligations, Expected timing of satisfaction, Period |
Schedule of Property and Equipm
Schedule of Property and Equipment (Detail) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | $ 161,724 | $ 158,901 |
Less: accumulated depreciation and amortization | (118,749) | (108,747) |
Property and equipment, net | 42,975 | 50,154 |
Transportation Equipment | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | 48,645 | 48,645 |
Computer Equipment And Purchased Software | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | 61,299 | 58,920 |
Furniture and Equipment | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | 10,460 | 10,464 |
Leaseholds Improvements | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | 31,403 | 31,023 |
Internally Developed Software | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | $ 9,917 | $ 9,849 |
Property and Equipment - Additi
Property and Equipment - Additional Information (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Property, Plant and Equipment [Line Items] | |||
Property and equipment, net | $ 42,975 | $ 50,154 | |
Accumulated depreciation | 118,749 | 108,747 | |
Depreciation and amortization | 11,400 | 11,700 | $ 8,300 |
Aircraft And Aircraft-Related Equipment | |||
Property, Plant and Equipment [Line Items] | |||
Property and equipment, net | 30,000 | 32,600 | |
Accumulated depreciation | $ 18,600 | $ 16,000 |
Leases - Additional Information
Leases - Additional Information (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Operating Leased Assets [Line Items] | |||
Operating lease, right of use asset | $ 73,597 | $ 85,538 | |
Operating lease, liability | 95,141 | ||
Gain on partial lease termination | (2,820) | 0 | $ 0 |
UNITED STATES | |||
Operating Leased Assets [Line Items] | |||
Operating lease, right of use asset | 62,200 | 71,000 | |
Operating lease, liability | 82,900 | 97,500 | |
UNITED STATES | Northern Virginia Office Space | |||
Operating Leased Assets [Line Items] | |||
Operating lease, right of use asset | 59,000 | 66,900 | |
Operating lease, liability | $ 79,700 | 93,300 | |
Lease term expiration date | Dec. 31, 2030 | ||
Lease option to extend, description | option for the Company to extend the term for an additional five or 10 consecutive years | ||
Lease termination fees | $ 1,600 | ||
Reduction in right of use assets | 4,200 | ||
Reduction in lease liability | 7,000 | ||
Gain on partial lease termination | 2,800 | ||
Non-US | |||
Operating Leased Assets [Line Items] | |||
Operating lease, right of use asset | 11,400 | 14,500 | |
Operating lease, liability | $ 12,200 | $ 15,500 | |
Minimum | UNITED STATES | Northern Virginia Office Space | |||
Operating Leased Assets [Line Items] | |||
Lease extension term | 5 years | ||
Maximum | UNITED STATES | Northern Virginia Office Space | |||
Operating Leased Assets [Line Items] | |||
Lease extension term | 10 years |
Leases - Components of Lease Co
Leases - Components of Lease Cost and Other Lease (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Lease cost: | ||
Operating lease cost | $ 11,772 | $ 15,020 |
Short-term lease cost | 1,158 | 2,015 |
Variable lease cost | 1,382 | 1,175 |
Total lease cost | 14,312 | 18,210 |
Other information: | ||
Cash paid for amounts included in the measurement of operating lease liabilities | 17,497 | 15,614 |
ROU assets obtained in exchange for new operating lease liabilities | $ 743 | $ 5,016 |
Weighted average remaining lease term in years – operating leases | 9 years 1 month 6 days | 10 years |
Weighted average discount rate – operating leases | 6.10% | 6.00% |
Leases - Schedule of Maturities
Leases - Schedule of Maturities of Operating lease liabilities (Detail) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Leases [Abstract] | ||
2021 | $ 16,186 | |
2022 | 14,311 | |
2023 | 13,937 | |
2024 | 12,051 | |
2025 | 11,649 | |
Thereafter | 55,643 | |
Total lease payments | 123,777 | |
Less: imputed interest | (28,636) | |
Total operating lease liabilities | 95,141 | |
Current operating lease liabilities | $ 10,813 | |
Operating Lease, Liability, Current, Statement of Financial Position [Extensible List] | us-gaap:OtherCurrentLiabilitiesMember | |
Non-current operating lease liabilities | $ 84,328 | $ 103,424 |
Total | $ 95,141 |
Convertible Senior Notes - Addi
Convertible Senior Notes - Additional Information (Detail) $ / shares in Units, $ in Thousands | 1 Months Ended | 12 Months Ended |
Dec. 31, 2020USD ($)d$ / shares | Dec. 31, 2020USD ($)$ / shares | |
Convertible Senior Notes due 2025 | ||
Debt Instrument [Line Items] | ||
Aggregate principal amount | $ 650,000 | $ 650,000 |
Interest rate, fixed percentage | 0.75% | 0.75% |
Additional principal option exercised amount | $ 100,000 | $ 100,000 |
Periodic payment description | The Notes are senior unsecured obligations of the Company and bear interest at a fixed rate of 0.750% per annum, payable semiannually in arrears on June 15 and December 15 of each year, beginning on June 15, 2021 | |
Payment start date | Jun. 15, 2021 | |
Debt instrument, maturity date | Dec. 15, 2025 | |
Proceeds from convertible senior notes | $ 634,700 | |
Convertible Senior Notes due 2025 | Fundamental Change | ||
Debt Instrument [Line Items] | ||
Debt instrument, redemption price, percentage of principal amount redeemed | 100.00% | |
Convertible Senior Notes due 2025 | Events of Default | ||
Debt Instrument [Line Items] | ||
Percentage of principal accrued and unpaid interest | 100.00% | |
Convertible Senior Notes due 2025 | Minimum | Events of Default | ||
Debt Instrument [Line Items] | ||
Debt instrument, redemption price, percentage of principal amount redeemed | 25.00% | |
Convertible Senior Notes due 2025 | Class A Common Stock | ||
Debt Instrument [Line Items] | ||
Initial conversion rate | 2.5126 | |
Price per share | $ / shares | $ 1,000 | $ 1,000 |
Initial conversion price | $ / shares | $ 397.99 | 397.99 |
Convertible Senior Notes due 2025 | Class A Common Stock | Early Conversion by Noteholders before June 15, 2025 | ||
Debt Instrument [Line Items] | ||
Debt instrument, convertible, earliest date | Mar. 31, 2021 | |
Debt instrument, convertible, trading days | d | 20 | |
Debt instrument, convertible, consecutive trading days | d | 30 | |
Convertible Senior Notes due 2025 | Class A Common Stock | Early Conversion by Noteholders before June 15, 2025 | ||
Debt Instrument [Line Items] | ||
Debt instrument, convertible, trading days | d | 5 | |
Debt instrument, convertible, consecutive trading days | d | 5 | |
Trading price per share | $ / shares | $ 1,000 | $ 1,000 |
Convertible Senior Notes due 2025 | Class A Common Stock | Redeemable by Company after December 20, 2023 | ||
Debt Instrument [Line Items] | ||
Debt instrument, convertible, earliest date | Dec. 20, 2023 | |
Debt instrument, convertible, trading days | d | 20 | |
Debt instrument, convertible, consecutive trading days | d | 30 | |
Debt instrument, redemption price, percentage of principal amount redeemed | 100.00% | |
Convertible Senior Notes due 2025 | Class A Common Stock | Minimum | Early Conversion by Noteholders before June 15, 2025 | ||
Debt Instrument [Line Items] | ||
Conversion price percentage applicable trading days | 130.00% | |
Convertible Senior Notes due 2025 | Class A Common Stock | Minimum | Redeemable by Company after December 20, 2023 | ||
Debt Instrument [Line Items] | ||
Conversion price percentage applicable trading days | 130.00% | |
Convertible Senior Notes due 2025 | Class A Common Stock | Maximum | Early Conversion by Noteholders before June 15, 2025 | ||
Debt Instrument [Line Items] | ||
Conversion price percentage applicable trading days | 98.00% | |
Convertible Senior Notes | ||
Debt Instrument [Line Items] | ||
Aggregate principal amount | $ 650,000 | $ 650,000 |
Carrying amount of the equity component after deducting liability component | 153,527 | 153,527 |
Customary offering expense | $ 15,300 | 15,300 |
Debt issuance costs attributed to liability component | 11,600 | |
Debt issuance costs attributed to equity component | $ 3,600 | |
Effective interest rate percentage | 6.82% | 6.82% |
Convertible Senior Notes - Sche
Convertible Senior Notes - Schedule of Net Carrying Amount of Liability Component (Detail) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Debt Instrument [Line Items] | ||
Net carrying amount of debt | $ 486,366 | $ 0 |
Convertible Senior Notes | ||
Debt Instrument [Line Items] | ||
Aggregate principal amount | 650,000 | |
Unamortized debt discount | (152,075) | |
Unamortized issuance costs | (11,559) | |
Net carrying amount of debt | $ 486,366 |
Convertible Senior Notes - Sc_2
Convertible Senior Notes - Schedule of Net Carrying Amount of Equity Component (Detail) - Convertible Senior Notes $ in Thousands | Dec. 31, 2020USD ($) |
Debt Instrument [Line Items] | |
Debt discount for conversion option | $ 153,527 |
Issuance costs allocated to equity | (3,602) |
Deferred tax liability, net of deferred tax asset, related to debt discount and issuance costs | (42,115) |
Net carrying amount of equity | $ 107,810 |
Convertible Senior Notes - Sc_3
Convertible Senior Notes - Schedule of Interest Expense Related to Notes (Detail) - Convertible Senior Notes $ in Thousands | 12 Months Ended |
Dec. 31, 2020USD ($) | |
Debt Instrument [Line Items] | |
Contractual interest expense | $ 271 |
Amortization of debt discount | 1,452 |
Amortization of issuance costs allocated to debt | 91 |
Total interest expense | $ 1,814 |
Commitments and Contingencies -
Commitments and Contingencies - Additional Information (Detail) $ in Thousands, R$ in Millions | Feb. 06, 2020USD ($) | Feb. 06, 2020BRL (R$) | Dec. 31, 2020USD ($) | Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) |
Commitments And Contingencies [Line Items] | |||||
Provision for transition tax | $ 37,200 | $ 40,300 | |||
Measurement period adjustment to reduce transition tax | $ (3,100) | ||||
Transition tax, unpaid | $ 28,039 | ||||
Maximum amount frozen in Brazilian subsidiary bank accounts | $ 2,300 | R$ 10.0 | |||
Convertible Senior Notes due 2025 | |||||
Commitments And Contingencies [Line Items] | |||||
Debt instrument, maturity date | Dec. 15, 2025 | ||||
Other Long-term Liabilities | |||||
Commitments And Contingencies [Line Items] | |||||
Transition tax, unpaid | $ 25,100 | ||||
Accounts Payable, Accrued Expenses and Operating Lease Liabilities | |||||
Commitments And Contingencies [Line Items] | |||||
Transition tax, unpaid | $ 3,000 |
Future Minimum Payments Related
Future Minimum Payments Related to Notes, Noncancelable Purchase Agreements and Anticipated Payments Related to One-Time Transition Tax (Detail)) $ in Thousands | Dec. 31, 2020USD ($) |
Commitments And Contingencies Disclosure [Abstract] | |
2021 | $ 4,740 |
2022 | 4,875 |
2023 | 4,875 |
2024 | 4,875 |
2025 | 655,078 |
Thereafter | 0 |
Total future minimum payments related to convertible senior notes | 674,443 |
2021 | 13,825 |
2022 | 9,673 |
2023 | 8,705 |
2024 | 669 |
2025 | 682 |
Thereafter | 1,048 |
Total future minimum payments related to non cancelable purchase agreements | 34,602 |
2021 | 2,951 |
2022 | 2,952 |
2023 | 5,534 |
2024 | 7,379 |
2025 | 9,223 |
Thereafter | 0 |
Total anticipated payments related to one-time transition tax | $ 28,039 |
Schedule of Components of (Loss
Schedule of Components of (Loss) Income Before Income Taxes (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Income Tax Disclosure [Abstract] | |||
U.S. | $ (53,250) | $ 9,944 | $ (18,295) |
Foreign | 33,297 | 28,319 | 38,777 |
(Loss) income before income taxes | $ (19,953) | $ 38,263 | $ 20,482 |
Schedule of (Benefit from) Prov
Schedule of (Benefit from) Provision for Income Taxes (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Components Of Income Tax Expense Benefit Continuing Operations [Abstract] | |||
Federal, Current | $ 1,861 | $ 1,256 | $ (1,916) |
State, Current | 1,445 | 143 | 1,656 |
Foreign, Current | 5,221 | 5,135 | 6,460 |
Income tax expense (benefit), Current, total | 8,527 | 6,534 | 6,200 |
Federal, Deferred | (15,038) | (749) | (6,071) |
State, Deferred | (6,269) | (480) | (2,047) |
Foreign, Deferred | 351 | (1,397) | (101) |
Income tax expense (benefit), Deferred, total | (20,956) | (2,626) | (8,219) |
Total (benefit) provision | $ (12,429) | $ 3,908 | $ (2,019) |
Schedule of Effective Income Ta
Schedule of Effective Income Tax Rate Reconciliation (Detail) | 12 Months Ended | |||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Income Tax Disclosure [Abstract] | ||||
Income tax expense at federal statutory rate | 21.00% | 21.00% | 21.00% | 35.00% |
State taxes, net of federal tax effect | 18.00% | (1.70%) | (1.30%) | |
Foreign earnings taxed at different rates | 21.70% | (6.10%) | (20.50%) | |
Book tax difference in amortization of intangible property | (0.00%) | (4.60%) | (0.00%) | |
Withholding tax | (12.50%) | 3.10% | 5.50% | |
Foreign tax credit | 3.80% | (3.00%) | (5.20%) | |
Other international components | (3.50%) | 0.20% | 0.30% | |
Change in valuation allowance | 2.70% | 1.60% | 2.50% | |
Deferred tax adjustments and rate changes | (3.40%) | 1.00% | (1.70%) | |
Meals and entertainment | (1.30%) | 1.30% | 2.60% | |
Non-deductible officers compensation | (12.50%) | 1.40% | 2.10% | |
Subpart F income | (2.00%) | 3.20% | 7.00% | |
Research and development tax credit | 19.90% | (9.30%) | (11.80%) | |
Stock compensation | 11.80% | 1.80% | 5.80% | |
GILTI, net of foreign tax credit | (1.10%) | 0.90% | 0.50% | |
FDII | 3.10% | (1.90%) | (4.50%) | |
Transition Tax | 0.00% | 0.00% | (15.20%) | |
Other permanent differences | (3.40%) | 1.30% | 3.00% | |
Total | 62.30% | 10.20% | (9.90%) |
Schedule of Effective Tax Rate
Schedule of Effective Tax Rate for (Loss) Income Before Income Taxes (Detail) | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Schedule Of Effective Tax Rates [Line Items] | |||
Effective tax rates | 62.30% | 10.20% | (9.90%) |
U.S. | |||
Schedule Of Effective Tax Rates [Line Items] | |||
Effective tax rates | 33.80% | 1.70% | 45.80% |
Foreign | |||
Schedule Of Effective Tax Rates [Line Items] | |||
Effective tax rates | 16.70% | 13.20% | 16.40% |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Detail) - USD ($) | 12 Months Ended | |||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Income Taxes | ||||
Transition tax, unpaid | $ 28,039,000 | |||
Measurement period adjustment to reduce transition tax | $ (3,100,000) | |||
Provision for transition tax | $ 37,200,000 | $ 40,300,000 | ||
Effective U.S corporate tax rate | 21.00% | 21.00% | 21.00% | 35.00% |
Retained earnings | $ 575,965,000 | $ 583,489,000 | ||
Domestic and foreign, tax expense on undistributed earnings | 1,700,000 | |||
Unrecognized tax benefits | 4,588,000 | |||
Unrecognized tax benefits would impact the effective tax rate | 4,300,000 | |||
Accumlated interest accrued | 295,000 | 200,000 | ||
Valuation allowances | 1,259,000 | 2,130,000 | ||
U.S | ||||
Income Taxes | ||||
Cash and cash equivalents and short-term investments | 13,700,000 | 289,400,000 | ||
Operating loss carryforwards | $ 0 | 0 | ||
U.S | Earliest Tax Year | ||||
Income Taxes | ||||
Tax years subject to examination | 2016 | |||
Foreign | ||||
Income Taxes | ||||
Cash and cash equivalents and short-term investments | $ 46,000,000 | 276,200,000 | ||
Retained earnings | 136,300,000 | 231,200,000 | ||
Operating loss carryforwards | $ 7,900,000 | $ 4,100,000 | ||
China | Tax Year 2008 | ||||
Income Taxes | ||||
Tax years settled which were under tax examination | 2008 | |||
China | Tax Year 2009 | ||||
Income Taxes | ||||
Tax years settled which were under tax examination | 2009 | |||
China | Tax Year 2010 | ||||
Income Taxes | ||||
Tax years settled which were under tax examination | 2010 | |||
China | Tax Year 2011 | ||||
Income Taxes | ||||
Tax years settled which were under tax examination | 2011 | |||
China | Tax Year 2012 | ||||
Income Taxes | ||||
Tax years settled which were under tax examination | 2012 | |||
China | Tax Year 2013 | ||||
Income Taxes | ||||
Tax years settled which were under tax examination | 2013 | |||
China | Tax Year 2014 | ||||
Income Taxes | ||||
Tax years settled which were under tax examination | 2014 | |||
China | Tax Year 2015 | ||||
Income Taxes | ||||
Tax years settled which were under tax examination | 2015 | |||
China | Tax Year 2016 | ||||
Income Taxes | ||||
Tax years settled which were under tax examination | 2016 | |||
ITALY | Earliest Tax Year | ||||
Income Taxes | ||||
Tax years subject to examination | 2016 | |||
ITALY | Tax Year 2013 | ||||
Income Taxes | ||||
Tax years settled which were under tax examination | 2013 | |||
ITALY | Tax Year 2014 | ||||
Income Taxes | ||||
Tax years settled which were under tax examination | 2014 | |||
ITALY | Tax Year 2015 | ||||
Income Taxes | ||||
Tax years settled which were under tax examination | 2015 | |||
Poland | Earliest Tax Year | ||||
Income Taxes | ||||
Tax years subject to examination | 2016 | |||
Spain | Earliest Tax Year | ||||
Income Taxes | ||||
Tax years subject to examination | 2017 | |||
Germany | Earliest Tax Year | ||||
Income Taxes | ||||
Tax years subject to examination | 2016 | |||
United Kingdom | Earliest Tax Year | ||||
Income Taxes | ||||
Tax years subject to examination | 2019 | |||
Other Long-term Liabilities | ||||
Income Taxes | ||||
Transition tax, unpaid | $ 25,100,000 | |||
Accounts Payable, Accrued Expenses and Operating Lease Liabilities | ||||
Income Taxes | ||||
Transition tax, unpaid | $ 3,000,000 |
Schedule of Components of Defer
Schedule of Components of Deferred Tax Assets and Liabilities (Detail) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Components Of Deferred Tax Assets And Liabilities [Abstract] | ||
Deferred tax assets, Net operating loss carryforwards | $ 1,690 | $ 874 |
Deferred tax assets, Tax credits | 4,158 | 2,553 |
Deferred tax assets, Intangible assets | 1,707 | 1,878 |
Deferred tax assets, Deferred revenue adjustment | 408 | 423 |
Deferred tax assets, Accrued Compensation | 6,527 | 6,257 |
Share-based compensation expense | 11,410 | 14,182 |
Deferred tax assets, Deferred rent | 0 | 1,330 |
Deferred tax assets, Digital asset impairment losses | 19,843 | 0 |
Deferred tax assets, Other | 3,605 | 1,453 |
Deferred tax assets before valuation allowance | 49,348 | 28,950 |
Deferred tax assets, Valuation allowance | (1,259) | (2,130) |
Deferred tax assets, net of valuation allowance | 48,089 | 26,820 |
Deferred tax liabilities, Prepaid expenses and other | 1,792 | 1,693 |
Deferred tax liabilities, Property and equipment | 4,233 | 5,092 |
Deferred tax liabilities, Debt discount, net of issuance costs | 41,693 | 0 |
Deferred tax liabilities, Deferred tax on undistributed foreign earnings | 1,741 | 0 |
Method change | 338 | 652 |
Total deferred tax liabilities | 49,797 | 7,437 |
Total net deferred tax (liability) asset | (1,708) | |
Total net deferred tax (liability) asset | 19,383 | |
Non-current deferred tax assets, net | 6,503 | 19,409 |
Non-current deferred tax liabilities | $ (8,211) | $ (26) |
Schedule of Change in Unrecogni
Schedule of Change in Unrecognized Tax Benefits (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Income Tax Uncertainties [Abstract] | ||
Unrecognized income tax benefits at January 1, 2020 | $ 1,563 | |
Increase related to positions taken in prior period | 2,580 | |
Increase related to positions taken in current period | 283 | |
Decrease related to expiration of statute of limitations | (133) | |
Unrecognized income tax benefits at December 31, 2020 | 4,293 | |
Accrued interest | 295 | $ 200 |
Unrecognized income tax benefits recorded in other long-term liabilities at December 31, 2020 | $ 4,588 |
Share-based Compensation - Addi
Share-based Compensation - Additional Information (Detail) - USD ($) | 12 Months Ended | |||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Share-based Payment Arrangement, Option | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Expected dividend yield | 0.00% | 0.00% | 0.00% | |
Options outstanding, shares | 1,157,000 | 1,634,000 | 1,480,000 | 992,000 |
RSU | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Unrecognized compensation expense expected to be recognized | 3 years 10 months 24 days | |||
Restricted stock units outstanding | 74,000 | 0 | ||
Vested | 0 | |||
Granted, Weighted Average Grant Date Fair Value (in dollars per share) | $ 192.43 | |||
Unrecognized share-based compensation expense | $ 13,800,000 | |||
Granted | 76,000 | |||
2013 Equity Plan | Share-based Payment Arrangement, Option | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Stock options vested | 200,000 | 216,250 | 251,250 | |
Aggregate fair value of stock option vested | $ 11,200,000 | $ 12,600,000 | $ 15,500,000 | |
Weighted average grant date fair value of stock option awards | $ 49.68 | $ 54.36 | $ 51.68 | |
Share-based compensation expense recognized | $ 10,100,000 | $ 10,100,000 | $ 14,600,000 | |
Unrecognized share-based compensation expense | $ 21,800,000 | |||
Unrecognized compensation expense expected to be recognized | 2 years 7 months 6 days | |||
2013 Equity Plan | RSU | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Vesting period | 4 years | |||
Share-based compensation expense recognized | $ 500,000 | |||
Restricted stock units outstanding | 74,400 | |||
2013 Equity Plan | Other Stock-based Awards | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Share-based compensation expense recognized | $ 600,000 | $ 0 | $ 0 | |
Unrecognized compensation expense expected to be recognized | 1 year 4 months 24 days | |||
Unrecognized share-based compensation expense | $ 1,000,000 | |||
2013 Equity Plan | Class A | Share-based Payment Arrangement, Option | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Options outstanding, shares | 1,157,375 | |||
2013 Equity Plan | Class A | Other Stock-based Awards | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Granted | 0 | 0 | ||
2013 Equity Plan | Class A | Share-based Payment Arrangement, Option | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Share-based compensation award expiration period | 10 years | |||
Vesting period | 4 years | |||
2013 Equity Plan | Class A | Employees, Officers, and Directors | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Share-based compensation, stock authorized | 2,300,000 | |||
Shares of class A common stock reserved and available for future issuance | 415,238 |
Summary of Stock Option Activit
Summary of Stock Option Activity (Detail) - Share-based Payment Arrangement, Option - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Options outstanding, shares | |||
Beginning Balance | 1,634 | 1,480 | 992 |
Granted | 118 | 470 | 710 |
Exercised | (348) | (51) | (21) |
Forfeited/Expired | (247) | (265) | (201) |
Ending Balance | 1,157 | 1,634 | 1,480 |
Exercisable as of December 31, 2020 | 644 | ||
Expected to vest as of December 31, 2020 | 513 | ||
Total | 1,157 | ||
Weighted Average Exercise Price Per Share | |||
Beginning Balance | $ 141.60 | $ 137.16 | $ 145.28 |
Granted | 146.76 | 150.88 | 130.27 |
Exercised | 146.80 | 128.17 | 121.13 |
Forfeited/Expired | 146.63 | 135.88 | 154.49 |
Ending Balance | 139.48 | $ 141.60 | $ 137.16 |
Exercisable as of December 31, 2020 | 135.05 | ||
Expected to vest as of December 31, 2020 | 145.05 | ||
Total | $ 139.48 | ||
Aggregate Intrinsic Value | |||
Exercised | $ 29,994 | $ 799 | $ 196 |
Exercisable as of December 31, 2020 | 163,318 | ||
Expected to vest as of December 31, 2020 | 124,947 | ||
Total | $ 288,265 | ||
Weighted Average Remaining Contractual Term (Years) | |||
Exercisable as of December 31, 2020 | 4 years 1 month 6 days | ||
Expected to vest as of December 31, 2020 | 8 years 4 months 24 days | ||
Total | 6 years |
Schedule of Range of Exercise P
Schedule of Range of Exercise Prices per Share (Detail) - Share-based Payment Arrangement, Option shares in Thousands | 12 Months Ended |
Dec. 31, 2020$ / sharesshares | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Shares, Stock Options Outstanding | shares | 1,157 |
Weighted Average Exercise Price Per Share, Stock Options Outstanding | $ 139.48 |
Weighted Average Remaining Contractual Term (Years), Stock Options Outstanding | 6 years |
121.43 - 140.00 | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Range of Exercise Prices per Share, minimum | $ 121.43 |
Range of Exercise Prices per Share, maximum | $ 140 |
Shares, Stock Options Outstanding | shares | 710 |
Weighted Average Exercise Price Per Share, Stock Options Outstanding | $ 124.45 |
Weighted Average Remaining Contractual Term (Years), Stock Options Outstanding | 4 years 9 months 18 days |
140.01 - 160.00 | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Range of Exercise Prices per Share, minimum | $ 140.01 |
Range of Exercise Prices per Share, maximum | $ 160 |
Shares, Stock Options Outstanding | shares | 268 |
Weighted Average Exercise Price Per Share, Stock Options Outstanding | $ 151.33 |
Weighted Average Remaining Contractual Term (Years), Stock Options Outstanding | 9 years |
160.01 - 180.00 | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Range of Exercise Prices per Share, minimum | $ 160.01 |
Range of Exercise Prices per Share, maximum | $ 180 |
Shares, Stock Options Outstanding | shares | 69 |
Weighted Average Exercise Price Per Share, Stock Options Outstanding | $ 169.37 |
Weighted Average Remaining Contractual Term (Years), Stock Options Outstanding | 6 years 9 months 18 days |
180.01 - 201.25 | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Range of Exercise Prices per Share, minimum | $ 180.01 |
Range of Exercise Prices per Share, maximum | $ 201.25 |
Shares, Stock Options Outstanding | shares | 110 |
Weighted Average Exercise Price Per Share, Stock Options Outstanding | $ 188.97 |
Weighted Average Remaining Contractual Term (Years), Stock Options Outstanding | 6 years |
Assumptions Used in Black-Schol
Assumptions Used in Black-Scholes Pricing Model (Detail) - Share-based Payment Arrangement, Option | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Expected term of options in years | 6 years 3 months 18 days | 6 years 3 months 18 days | 6 years 3 months 18 days |
Expected volatility, minimum | 33.60% | 33.20% | 33.70% |
Expected volatility, maximum | 34.60% | 33.40% | 35.50% |
Risk-free interest rate, minimum | 0.30% | 1.70% | 2.70% |
Risk-free interest rate, maximum | 0.50% | 2.50% | 2.90% |
Expected dividend yield | 0.00% | 0.00% | 0.00% |
Summary of Restricted Stock Uni
Summary of Restricted Stock Unit Activity (Detail) - RSU shares in Thousands, $ in Thousands | 12 Months Ended |
Dec. 31, 2020USD ($)shares | |
Number of Shares/Units | |
Beginning Balance | 0 |
Granted | 76 |
Vested | 0 |
Forfeited | (2) |
Ending Balance | 74 |
Expected to vest as of December 31, 2020 | 74 |
Aggregate Intrinsic Value | |
Vested | $ | $ 0 |
Expected to vest as of December 31, 2020 | $ | $ 28,908 |
Computation of Basic and Dilute
Computation of Basic and Diluted Earnings Per Share (Detail) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 12 Months Ended | ||||||||||||||||||||
Dec. 31, 2020 | Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | ||||||||||||
Earnings Loss Per Share [Line Items] | ||||||||||||||||||||||
Net income | $ 2,661 | $ (14,229) | $ 3,387 | $ 657 | $ 12,167 | $ 9,700 | $ 20,394 | $ (7,906) | $ (7,524) | $ 34,355 | $ 22,501 | |||||||||||
Total weighted average common stock shares outstanding | 9,684 | 10,256 | 11,375 | |||||||||||||||||||
Adjusted weighted average shares | 9,684 | 10,328 | 11,412 | |||||||||||||||||||
Earnings per share: | ||||||||||||||||||||||
Basic earnings per share | $ 0.28 | [1] | $ (1.48) | [1] | $ 0.35 | [1] | $ 0.07 | [1] | $ 1.19 | [1] | $ 0.95 | [1] | $ 1.99 | [1] | $ (0.77) | [1] | $ (0.78) | [1],[2] | $ 3.35 | [1],[2] | $ 1.98 | [2] |
Diluted earnings per share | $ 0.27 | [1] | $ (1.48) | [1] | $ 0.35 | [1] | $ 0.07 | [1] | $ 1.18 | [1] | $ 0.94 | [1] | $ 1.98 | [1] | $ (0.77) | [1] | $ (0.78) | [1],[2] | $ 3.33 | [1],[2] | $ 1.97 | [2] |
Share-based Payment Arrangement, Option | ||||||||||||||||||||||
Earnings Loss Per Share [Line Items] | ||||||||||||||||||||||
Dilutive securities (in shares) | 0 | 72 | 37 | |||||||||||||||||||
Class A | ||||||||||||||||||||||
Earnings Loss Per Share [Line Items] | ||||||||||||||||||||||
Net income | $ 0 | $ 0 | $ 0 | |||||||||||||||||||
Total weighted average common stock shares outstanding | 7,658 | 8,221 | 9,340 | |||||||||||||||||||
Class B Convertible | ||||||||||||||||||||||
Earnings Loss Per Share [Line Items] | ||||||||||||||||||||||
Net income | $ 0 | $ 0 | $ 0 | |||||||||||||||||||
Total weighted average common stock shares outstanding | 2,026 | 2,035 | 2,035 | |||||||||||||||||||
[1] | The sum of the basic and diluted earnings (loss) per share for the four quarters may differ from annual earnings (loss) per share as the weighted average shares outstanding are computed independently for each of the quarters presented. | |||||||||||||||||||||
[2] | Basic and fully diluted (loss) earnings per share for class A and class B common stock are the same. |
Basic and Diluted Earnings pe_3
Basic and Diluted Earnings per Share - Additional Information (Detail) - Class A - 2013 Equity Plan - shares | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Share-based Payment Arrangement, Option | |||
Earnings Per Share [Line Items] | |||
Shares issuable under stock options excluded from calculation of diluted earnings per share | 1,487,000 | 933,000 | 896,000 |
RSU | |||
Earnings Per Share [Line Items] | |||
Shares issuable under stock options excluded from calculation of diluted earnings per share | 10,000 |
Treasury Stock - Additional Inf
Treasury Stock - Additional Information (Detail) - USD ($) | Aug. 11, 2020 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 |
Equity, Class of Treasury Stock [Line Items] | ||||
Treasury stock, shares repurchased value | $ 123,224,000 | $ 72,719,000 | $ 110,977,000 | |
Treasury stock, shares | 8,684,000 | 7,807,000 | ||
Treasury stock, cost | $ 782,104,000 | $ 658,880,000 | ||
Class A | ||||
Equity, Class of Treasury Stock [Line Items] | ||||
Treasury stock, shares repurchased | 0 | 0 | 0 | |
Treasury stock, shares repurchased value | $ 0 | $ 0 | $ 0 | |
Class A | Share Repurchase Program | ||||
Equity, Class of Treasury Stock [Line Items] | ||||
Shares repurchased program expiration date | Apr. 29, 2023 | |||
Stock authorized to repurchase by board of directors | $ 800,000,000 | |||
Treasury stock, shares repurchased | 444,769 | 521,843 | 880,667 | |
Shares repurchased, average price per share | $ 139.12 | $ 139.35 | $ 126.02 | |
Treasury stock, shares repurchased value | $ 61,900,000 | $ 72,700,000 | $ 111,000,000 | |
Treasury stock, shares | 5,674,226 | |||
Shares repurchased, average price per share | $ 104.13 | |||
Treasury stock, cost | $ 590,900,000 | |||
Stock remaining available for repurchase | $ 209,100,000 | |||
Class A | Tender Offer | ||||
Equity, Class of Treasury Stock [Line Items] | ||||
Treasury stock, shares repurchased | 432,313 | |||
Shares repurchased, average price per share | $ 140 | |||
Treasury stock, shares repurchased value | $ 61,300,000 | |||
Tender offer, purchase price maximum | $ 140 | |||
Tender offer, purchase price minimum | $ 122 | |||
Tender offer expiration date | Sep. 10, 2020 | |||
Expenses and fees related to tender offer | $ 800,000 | |||
Class A | Tender Offer | Maximum | ||||
Equity, Class of Treasury Stock [Line Items] | ||||
Tender offer program, authorized amount | $ 250,000,000 |
Employee Benefit Plan - Additio
Employee Benefit Plan - Additional Information (Detail) - USD ($) | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Compensation And Retirement Disclosure [Abstract] | |||
Maximum employee contribution to 401k | 50.00% | ||
Employer matching contribution percent for plan participant | 50.00% | 50.00% | |
Defined Contribution Plan, Sponsor Location [Extensible List] | country:US | country:US | |
Defined Contribution Plan, Tax Status [Extensible List] | us-gaap:QualifiedPlanMember | us-gaap:QualifiedPlanMember | |
Maximum contribution by participant that employer will match at 50% | 12.00% | 6.00% | |
Maximum annual contribution by employer | $ 5,000 | $ 3,000 | |
Employer contribution to the plan | $ 3,300,000 | $ 4,100,000 | $ 2,400,000 |
Segment Information - Additiona
Segment Information - Additional Information (Detail) | 12 Months Ended | ||
Dec. 31, 2020CustomerSegmentCountry | Dec. 31, 2019CustomerCountry | Dec. 31, 2018CustomerCountry | |
Segment Reporting Information | |||
Number of operating segments | Segment | 1 | ||
Geographic Concentration Risk | |||
Segment Reporting Information | |||
Number Of Individual Country accounted for 10% or more of total revenues | 0 | 0 | 0 |
Number Of Individual country accounted for 10% or more of total consolidated assets | 0 | 0 | |
Customer Concentration Risk | Sales Revenue, Goods, Net | |||
Segment Reporting Information | |||
Number Of Individual Customer accounted for 10% or more of total consolidated revenues | Customer | 0 | 0 | 0 |
Total Revenues Gross Profit and
Total Revenues Gross Profit and Long Lived Assets Excluding Long Term Deferred Tax Assets (Detail) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2020 | Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Revenues from External Customers and Long-Lived Assets | |||||||||||
Total revenues | $ 480,735 | $ 486,327 | $ 497,638 | ||||||||
Gross profit | $ 110,534 | $ 105,672 | $ 86,595 | $ 86,879 | $ 108,895 | $ 95,878 | $ 92,387 | $ 89,193 | 389,680 | 386,353 | 398,139 |
Long-lived assets | 1,186,489 | 143,716 | 1,186,489 | 143,716 | |||||||
Domestic | |||||||||||
Revenues from External Customers and Long-Lived Assets | |||||||||||
Total revenues | 279,220 | 273,581 | 287,258 | ||||||||
Gross profit | 229,466 | 216,365 | 228,310 | ||||||||
Long-lived assets | 1,165,283 | 118,168 | 1,165,283 | 118,168 | |||||||
EMEA | |||||||||||
Revenues from External Customers and Long-Lived Assets | |||||||||||
Total revenues | 155,478 | 159,643 | 156,706 | ||||||||
Gross profit | 124,513 | 126,939 | 126,315 | ||||||||
Long-lived assets | 11,441 | 13,636 | 11,441 | 13,636 | |||||||
Other Regions | |||||||||||
Revenues from External Customers and Long-Lived Assets | |||||||||||
Total revenues | 46,037 | 53,103 | 53,674 | ||||||||
Gross profit | 35,701 | 43,049 | $ 43,514 | ||||||||
Long-lived assets | $ 9,765 | $ 11,912 | $ 9,765 | $ 11,912 |
Sale of Domain Name - Additiona
Sale of Domain Name - Additional Information (Detail) - USD ($) | May 30, 2019 | Jun. 30, 2019 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 |
Other Nonoperating Income And Expense [Line Items] | |||||
Provision for income taxes | $ (12,429,000) | $ 3,908,000 | $ (2,019,000) | ||
Voice.com Domain Name | |||||
Other Nonoperating Income And Expense [Line Items] | |||||
Proceeds from third-party for sale of domain name | $ 30,000,000 | ||||
Unamortized cost | $ 0 | ||||
Provision for income taxes | $ 8,100,000 | ||||
Voice.com Domain Name | Other Income, Net | |||||
Other Nonoperating Income And Expense [Line Items] | |||||
Gain on sale of domain name | $ 29,800,000 |
Selected Quarterly Financial _3
Selected Quarterly Financial Data (Unaudited) - Additional Information (Detail) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||||
Dec. 31, 2020 | Sep. 30, 2020 | Jun. 30, 2019 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Quarterly Financial Information [Line Items] | ||||||
Measurement period adjustment to reduce transition tax | $ 3,100 | |||||
Digital asset impairment losses | $ 26,500 | $ 44,200 | $ 70,698 | $ 0 | 0 | |
Provision for income taxes | $ (12,429) | $ 3,908 | $ (2,019) | |||
Voice.com Domain Name | ||||||
Quarterly Financial Information [Line Items] | ||||||
Provision for income taxes | $ 8,100 | |||||
Voice.com Domain Name | Other Income, Net | ||||||
Quarterly Financial Information [Line Items] | ||||||
Gain on sale of domain name | $ 29,800 |
Selected Quarterly Financial _4
Selected Quarterly Financial Data (Unaudited) (Detail) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | ||||||||||||||||||||
Dec. 31, 2020 | Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | ||||||||||||
Quarterly Financial Information Disclosure [Abstract] | ||||||||||||||||||||||
Revenues | $ 131,319 | $ 127,408 | $ 110,584 | $ 111,424 | $ 133,531 | $ 119,693 | $ 117,737 | $ 115,366 | $ 480,735 | $ 486,327 | $ 497,638 | |||||||||||
Gross profit | 110,534 | 105,672 | 86,595 | 86,879 | 108,895 | 95,878 | 92,387 | 89,193 | 389,680 | 386,353 | 398,139 | |||||||||||
Net income (loss) | $ 2,661 | $ (14,229) | $ 3,387 | $ 657 | $ 12,167 | $ 9,700 | $ 20,394 | $ (7,906) | $ (7,524) | $ 34,355 | $ 22,501 | |||||||||||
Earnings (loss) per share: | ||||||||||||||||||||||
Basic earnings per share | $ 0.28 | [1] | $ (1.48) | [1] | $ 0.35 | [1] | $ 0.07 | [1] | $ 1.19 | [1] | $ 0.95 | [1] | $ 1.99 | [1] | $ (0.77) | [1] | $ (0.78) | [1],[2] | $ 3.35 | [1],[2] | $ 1.98 | [2] |
Diluted earnings per share | $ 0.27 | [1] | $ (1.48) | [1] | $ 0.35 | [1] | $ 0.07 | [1] | $ 1.18 | [1] | $ 0.94 | [1] | $ 1.98 | [1] | $ (0.77) | [1] | $ (0.78) | [1],[2] | $ 3.33 | [1],[2] | $ 1.97 | [2] |
[1] | The sum of the basic and diluted earnings (loss) per share for the four quarters may differ from annual earnings (loss) per share as the weighted average shares outstanding are computed independently for each of the quarters presented. | |||||||||||||||||||||
[2] | Basic and fully diluted (loss) earnings per share for class A and class B common stock are the same. |
Subsequent Events - Additional
Subsequent Events - Additional Information (Detail) | Feb. 28, 2021shares |
Subsequent Event | 2021 Employee Stock Purchase Plan | Class A | |
Subsequent Event [Line Items] | |
Aggregate common shares approved | 100,000 |
Valuation And Qualifying Accoun
Valuation And Qualifying Accounts (Detail) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | ||
Allowance for Credit Losses | ||||
Valuation and Qualifying Accounts Disclosure [Line Items] | ||||
Balance at the beginning of the period | $ 1,637 | $ 5,489 | $ 4,190 | |
Additions | [1] | 1,550 | 124 | 1,912 |
Deduction | (427) | (3,976) | (613) | |
Balance at the end of the period | 2,760 | 1,637 | 5,489 | |
Valuation Allowance of Deferred Tax Assets | ||||
Valuation and Qualifying Accounts Disclosure [Line Items] | ||||
Balance at the beginning of the period | 2,130 | 1,507 | 1,015 | |
Additions | [1] | 10 | 633 | 492 |
Deduction | (881) | (10) | 0 | |
Balance at the end of the period | $ 1,259 | $ 2,130 | $ 1,507 | |
[1] | Reductions in/charges to revenues and expenses. |