Proofpoint (PFPT) 10-Q 31 Jul 20 2020 Q2 Quarterly report Financial data

Document and Entity Information

Document and Entity Information Document - shares	6 Months Ended
	Jun. 30, 2020	Jul. 17, 2020
Cover [Abstract]
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Jun. 30, 2020
Document Fiscal Year Focus	2020
Document Fiscal Period Focus	Q2
Trading Symbol	PFPT
Entity Registrant Name	PROOFPOINT, INC.
Entity Central Index Key (CIK)	0001212458
Current Fiscal Year End Date	--12-31
Entity Small Business	false
Entity Emerging Growth Company	false
Entity Filer Category	Large Accelerated Filer
Entity Common Stock, Shares Outstanding		57,641,722
Entity Current Reporting Status	No
Entity Shell Company	false
Entity File Number	001-35506
Entity Tax Identification Number	51-0414846
Entity Address, Address Line One	892 Ross Drive
Entity Address, City or Town	Sunnyvale
Entity Address, State or Province	CA
Entity Address, Postal Zip Code	94089
City Area Code	408
Local Phone Number	517-4710
Entity Interactive Data Current	Yes
Title of 12(b) Security	Common Stock , $0.0001 par value per share
Security Exchange Name	NASDAQ
Entity Incorporation, State or Country Code	DE
Document Quarterly Report	true
Document Transition Report	false

Condensed Consolidated Balance

Condensed Consolidated Balance Sheets - USD ($) $ in Thousands	Jun. 30, 2020	Dec. 31, 2019
Current assets:
Cash and cash equivalents	$ 961,356	$ 847,555
Short-term investments	11,988	43,385
Accounts receivable, net	173,086	265,741
Inventory	367	1,249
Deferred product costs	2,846	2,723
Deferred commissions	49,818	47,250
Prepaid expenses and other current assets	27,835	22,081
Total current assets	1,227,296	1,229,984
Property and equipment, net	84,863	73,512
Operating lease right-of-use assets	67,128	51,852
Long-term deferred product costs	382	581
Goodwill	688,461	687,517
Intangible assets, net	159,507	186,023
Long-term deferred commissions	93,687	90,305
Other assets	15,808	17,737
Total assets	2,337,132	2,337,511
Current liabilities:
Accounts payable	5,451	16,311
Accrued liabilities	120,867	119,423
Operating lease liabilities	23,755	20,202
Deferred revenue	593,451	615,874
Total current liabilities	743,524	771,810
Convertible senior notes	766,403	749,620
Long-term operating lease liabilities	46,290	36,223
Other long-term liabilities	35,187	19,172
Long-term deferred revenue	169,360	168,189
Total liabilities	1,760,764	1,745,014
Commitments and contingencies (Note 7)
Stockholders’ equity:
Convertible preferred stock, $0.0001 par value; 5,000 shares authorized; no shares issued and outstanding	0	0
Common stock, $0.0001 par value; 200,000 shares authorized; 57,588 and 56,784 shares issued and outstanding at June 30, 2020 and December 31, 2019, respectively	6	6
Additional paid-in capital	1,398,786	1,318,084
Accumulated other comprehensive income	2	1
Accumulated deficit	(822,426)	(725,594)
Total stockholders’ equity	576,368	592,497
Total liabilities and stockholders’ equity	$ 2,337,132	$ 2,337,511

Condensed Consolidated Balanc_2

Condensed Consolidated Balance Sheets (Parenthetical) - $ / shares	Jun. 30, 2020	Dec. 31, 2019
Statement Of Financial Position [Abstract]
Preferred Stock, Shares Authorized	5,000,000	5,000,000
Preferred Stock, Shares Issued	0	0
Preferred Stock, Shares Outstanding	0	0
Preferred Stock, Par or Stated Value Per Share	$ 0.0001	$ 0.0001
Number of shares of common stock reserved for future issuance
Common Stock, Shares Authorized	200,000,000	200,000,000
Common stock issued (in shares)	57,588,000	56,784,000
Common stock outstanding (in shares)	57,588,000	56,784,000
Par value of common stock (USD per share)	$ 0.0001	$ 0.0001

Condensed Consolidated Statemen

Condensed Consolidated Statements of Operations - USD ($) shares in Thousands, $ in Thousands		3 Months Ended		6 Months Ended
		Jun. 30, 2020	Jun. 30, 2019	Jun. 30, 2020	Jun. 30, 2019
Revenue:
Total revenue		$ 258,438	$ 214,439	$ 508,212	$ 417,376
Cost of revenue:
Total cost of revenue	[1],[2]	67,575	57,828	136,506	113,071
Gross profit		190,863	156,611	371,706	304,305
Operating expense:
Research and development	[1],[2]	70,602	55,185	140,497	108,434
Sales and marketing	[1],[2]	116,279	102,837	239,441	199,841
General and administrative	[1],[2]	14,812	27,881	44,367	53,706
Total operating expense	[1],[2]	201,693	185,903	424,305	361,981
Operating loss		(10,830)	(29,292)	(52,599)	(57,676)
Interest expense		(9,013)		(17,933)
Other (expense) income, net		(1,092)	659	3,529	1,385
Loss before income taxes		(20,935)	(28,633)	(67,003)	(56,291)
Provision for income taxes		(1,660)	(280)	(29,829)	(900)
Net loss		$ (22,595)	$ (28,913)	$ (96,832)	$ (57,191)
Net loss per share, basic and diluted		$ (0.39)	$ (0.52)	$ (1.69)	$ (1.03)
Weighted average shares outstanding, basic and diluted		57,369	55,768	57,168	55,553
Subscription
Revenue:
Total revenue		$ 254,892	$ 210,780	$ 498,961	$ 410,364
Cost of revenue:
Total cost of revenue	[1],[2]	59,193	50,648	119,041	98,900
Hardware and Service
Revenue:
Total revenue		3,546	3,659	9,251	7,012
Cost of revenue:
Total cost of revenue	[1],[2]	$ 8,382	$ 7,180	$ 17,465	$ 14,171
[1]	(1) Includes stock-based compensation expense as follows: Cost of subscription revenue $ 5,235 $ 4,269 $ 10,777 $ 8,144 Cost of hardware and services revenue $ 1,408 $ 1,054 $ 2,779 $ 1,960 Research and development $ 16,431 $ 12,522 $ 32,036 $ 24,021 Sales and marketing $ 17,047 $ 15,799 $ 35,566 $ 29,553 General and administrative $ (3,660 ) $ 12,006 $ 6,868 $ 22,993
[2]	(2) Includes intangible amortization expense as follows: Cost of subscription revenue $ 9,992 $ 7,505 $ 19,930 $ 14,267 Sales and marketing $ 3,947 $ 3,634 $ 8,460 $ 7,171

Condensed Consolidated Statem_2

Condensed Consolidated Statements of Operations (Parenthetical) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2020	Jun. 30, 2019	Jun. 30, 2020	Jun. 30, 2019
Intangible amortization expense	$ 13,939	$ 11,139	$ 28,390	$ 21,438
Cost of subscription revenue
Stock-based compensation expense	5,235	4,269	10,777	8,144
Intangible amortization expense	9,992	7,505	19,930	14,267
Cost of hardware and services revenue
Stock-based compensation expense	1,408	1,054	2,779	1,960
Research and development
Stock-based compensation expense	16,431	12,522	32,036	24,021
Sales and marketing
Stock-based compensation expense	17,047	15,799	35,566	29,553
Intangible amortization expense	3,947	3,634	8,460	7,171
General and administrative
Stock-based compensation expense	$ (3,660)	$ 12,006	$ 6,868	$ 22,993

Condensed Consolidated Statem_3

Condensed Consolidated Statements of Comprehensive Loss - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2020	Jun. 30, 2019	Jun. 30, 2020	Jun. 30, 2019
Statement Of Income And Comprehensive Income [Abstract]
Net loss	$ (22,595)	$ (28,913)	$ (96,832)	$ (57,191)
Other comprehensive income, net of tax:
Unrealized (loss) gain on short-term investments, net	(3)	1	1	9
Comprehensive loss	$ (22,598)	$ (28,912)	$ (96,831)	$ (57,182)

Condensed Consolidated Statem_4

Condensed Consolidated Statements of Stockholders' Equity - USD ($) shares in Thousands, $ in Thousands	Total	Common Stock [Member]	Additional Paid-In Capital [Member]	Accumulated Other Comprehensive Income (Loss) [Member]	Accumulated Deficit [Member]
Beginning balance at Dec. 31, 2018	$ 512,534	$ 6	$ 1,107,953	$ (7)	$ (595,418)
Beginning balance (shares) at Dec. 31, 2018		55,149
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net loss	(57,191)				(57,191)
Unrealized (loss) gain on short-term investments, net	9			9
Stock-based compensation expense	76,942		76,942
Acquisition of Meta Networks, Ltd. (Note 3)	446		446
Acquisition of Meta Networks, Ltd. (Note 3) (shares)		72
Common stock issued	27,343		27,343
Common stock issued (shares)		1,130
Tax withholding upon vesting of restricted stock awards	(34,884)		(34,884)
Tax withholding upon vesting of restricted stock awards (shares)		(308)
Ending balance at Jun. 30, 2019	525,288	$ 6	1,177,800	2	(652,520)
Ending balance (shares) at Jun. 30, 2019		56,043
Beginning balance at Mar. 31, 2019	507,111	$ 6	1,130,711	1	(623,607)
Beginning balance (shares) at Mar. 31, 2019		55,607
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net loss	(28,913)				(28,913)
Unrealized (loss) gain on short-term investments, net	1			1
Stock-based compensation expense	42,207		42,207
Acquisition of Meta Networks, Ltd. (Note 3)	446		446
Acquisition of Meta Networks, Ltd. (Note 3) (shares)		72
Common stock issued	13,587		13,587
Common stock issued (shares)		442
Tax withholding upon vesting of restricted stock awards	(9,151)		(9,151)
Tax withholding upon vesting of restricted stock awards (shares)		(78)
Ending balance at Jun. 30, 2019	525,288	$ 6	1,177,800	2	(652,520)
Ending balance (shares) at Jun. 30, 2019		56,043
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Cumulative effect of adjustment from adoption of ASC 842	89				89
Beginning balance at Dec. 31, 2019	592,497	$ 6	1,318,084	1	(725,594)
Beginning balance (shares) at Dec. 31, 2019		56,784
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net loss	(96,832)				(96,832)
Unrealized (loss) gain on short-term investments, net	1			1
Stock-based compensation expense	80,410		80,410
Issuance of restricted shares (shares)		11
Common stock issued	31,854		31,854
Common stock issued (shares)		1,068
Tax withholding upon vesting of restricted stock awards	(31,562)		(31,562)
Tax withholding upon vesting of restricted stock awards (shares)		(275)
Ending balance at Jun. 30, 2020	576,368	$ 6	1,398,786	2	(822,426)
Ending balance (shares) at Jun. 30, 2020		57,588
Beginning balance at Mar. 31, 2020	558,179	$ 6	1,357,999	5	(799,831)
Beginning balance (shares) at Mar. 31, 2020		57,260
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net loss	(22,595)				(22,595)
Unrealized (loss) gain on short-term investments, net	(3)			(3)
Stock-based compensation expense	32,435		32,435
Issuance of restricted shares (shares)		11
Common stock issued	15,576		15,576
Common stock issued (shares)		381
Tax withholding upon vesting of restricted stock awards	(7,224)		(7,224)
Tax withholding upon vesting of restricted stock awards (shares)		(64)
Ending balance at Jun. 30, 2020	$ 576,368	$ 6	$ 1,398,786	$ 2	$ (822,426)
Ending balance (shares) at Jun. 30, 2020		57,588

Condensed Consolidated Statem_5

Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2020	Jun. 30, 2019
Cash flows from operating activities
Net loss	$ (96,832)	$ (57,191)
Adjustments to reconcile net loss to net cash provided by operating activities:
Depreciation and amortization	46,460	38,237
Stock-based compensation	88,026	86,671
Amortization of debt issuance costs and accretion of debt discount	16,783	0
Amortization of deferred commissions	30,003	23,671
Noncash lease costs	12,918	11,347
Deferred income taxes	(692)	(610)
Other	268	967
Changes in assets and liabilities:
Accounts receivable	92,062	27,860
Inventory	881	124
Deferred product costs	76	(95)
Deferred commissions	(35,953)	(30,978)
Prepaid expenses	(6,773)	(7,695)
Other current assets	(180)	459
Long-term assets	(59)	(623)
Accounts payable	(9,513)	(3,166)
Accrued liabilities	20,122	(10,371)
Operating lease liabilities	(13,561)	(11,448)
Deferred revenue	(21,252)	30,350
Net cash provided by operating activities	122,784	97,509
Cash flows from investing activities
Proceeds from maturities of short-term investments	51,187	55,049
Purchase of short-term investments	(19,876)	(41,768)
Purchase of property and equipment	(24,149)	(13,850)
Receipts from escrow account	154	0
Acquisition of businesses, net of cash acquired	(2,720)	(104,503)
Net cash provided by (used in) investing activities	4,596	(105,072)
Cash flows from financing activities
Proceeds from issuance of common stock	18,543	14,691
Withholding taxes related to restricted stock net share settlement	(35,145)	(35,005)
Net cash used in financing activities	(16,602)	(20,314)
Effect of exchange rate changes on cash, cash equivalents and restricted cash	(174)	79
Net increase (decrease) in cash, cash equivalents and restricted cash	110,604	(27,798)
Cash, cash equivalents and restricted cash
Beginning of period	857,907	186,152
End of period	968,511	158,354
Supplemental disclosure of noncash investing and financing activities
Unpaid purchases of property and equipment and asset retirement obligations	6,267	5,681
Operating lease right-of-use assets exchanged for lease obligations	28,195	3,979
Liability awards converted to equity	13,313	12,651
Reconciliation of cash, cash equivalents and restricted cash as shown in the consolidated statement of cash flows
Cash and cash equivalents	961,356	149,697
Restricted cash included in prepaid expenses and other current assets	3,229	3,414
Restricted cash included in other non-current assets	3,926	5,243
End of period	$ 968,511	$ 158,354

The Company and Summary of Sign

The Company and Summary of Significant Accounting Policies	6 Months Ended
	Jun. 30, 2020
Accounting Policies [Abstract]
The Company and Summary of Significant Accounting Policies	1. The Company and Summary of Significant Accounting Policies The Company Proofpoint, Inc. (“Proofpoint”, “we”, “us”, “our” or the “Company”) was incorporated in Delaware in June 2002 and is headquartered in California. Proofpoint is a leading security-as-a-service provider that enables large and mid-sized organizations worldwide to defend, protect, archive and govern their most sensitive data. The Company’s security-and compliance platform is comprised of an integrated suite of threat protection, information protection, and brand protection solutions, including email protection, advanced threat protection, email authentication, data loss prevention, SaaS application protection, response orchestration and automation, digital risk, web browser isolation, email encryption, archiving, eDiscovery, supervision, secure communication, phishing simulation and security awareness computer-based training. Basis of Presentation and Consolidation These condensed consolidated financial statements include the accounts of the Company and its wholly-owned subsidiaries. All intercompany transactions and balances have been eliminated in consolidation. These condensed consolidated financial statements have been prepared in accordance with United States generally accepted accounting principles (“GAAP”), pursuant to the rules and regulations of the Securities and Exchange Commission (the “SEC”). Certain information and note disclosures have been condensed or omitted pursuant to such rules and regulations. The accompanying Condensed Consolidated Balance Sheet as of December 31, 2019 is derived from audited financial statements as of that date but does not include all of the information and footnotes required by accounting principles generally accepted in the United States for complete financial statements. The unaudited condensed consolidated financial statements have been prepared on the same basis as the annual financial statements and, in the opinion of management, reflect all adjustments, which include only normal recurring adjustments, necessary for a fair statement of the periods presented. The results of operations for the three and six months ended June 30, 2020 are not necessarily indicative of the results to be expected for the year ending December 31, 2020 or for other interim periods or for future years. These condensed consolidated financial statements should be read in conjunction with the Company’s audited consolidated financial statements and accompanying notes for the year ended December 31, 2019 included in the Company’s Annual Report on Form 10-K filed with the SEC. The Company’s significant accounting policies are described in Note 1 to those audited consolidated financial statements. Reclassifications Certain reclassifications have been made to prior year balances in order to conform to the current period presentation. “Interest income” has been reclassified from “Interest income (expense)” to “Other income (expense), net” in the condensed consolidated statements of operations. The reclassifications had no impact on previously reported net loss or accumulated deficit. Use of Estimates The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of expenses during the reporting period. Actual results could differ from those estimates and such difference may be material to the financial statements. Due to the Coronavirus (“COVID-19”) pandemic, there has been uncertainty and disruption in the global economy and financial markets. The Company is not aware of any specific event or circumstance that would require an update to its estimates or judgments or a revision of the carrying value of its assets or liabilities as of June 30, 2020. These estimates may change, as new events occur and additional information is obtained, as well as other factors related to COVID-19 that could result in material impacts to our consolidated financial statements in future reporting periods. Goodwill and Intangible Assets Goodwill represents the excess of the purchase price of the acquired enterprise over the fair value of identifiable assets acquired and liabilities assumed. The Company performs an annual goodwill impairment test during the fourth quarter of a calendar year and more frequently if an event or circumstances indicates that impairment may have occurred. For the purposes of impairment testing, the Company has determined that it has one operating segment and one reporting unit. To test goodwill for impairment, the Company compares the reporting unit’s carrying value with its fair value. If the carrying value of the reporting unit exceeds the reporting unit’s fair value, then the impairment charge equal to the difference is recorded; however, the loss recognized would not exceed the total amount of goodwill allocated to the reporting unit. The identification and measurement of goodwill impairment involves the estimation of the fair value of the Company. The estimate of fair value of the Company, based on the best information available as of the date of the assessment, is subjective and requires judgment, including management assumptions about expected future revenue forecasts and discount rates, changes in the overall economy, trends in the stock price and other factors. No impairment indicators were identified by the Company as of June 30, 2020. Intangible assets consist of developed technology, customer relationships, trademarks and patents, and order backlog. The values assigned to intangibles are based on estimates and judgments regarding expectations for success and life cycle of solutions and technologies acquired. Intangible assets are amortized on a straight-line basis over their estimated lives, which approximate the pattern in which the economic benefits of the intangible assets are consumed, as follows (in years): Low High Patents 4 5 Developed technology 2 7 Customer relationships 2 8 Order backlog 1 3 Trade names and trademarks 1 5 Comprehensive Loss Comprehensive loss includes all changes in equity that are not the result of transactions with stockholders. The Company’s comprehensive loss consists of its net loss and changes in unrealized gains (losses) from its available-for-sale investments. The Company had no material reclassifications out of accumulated other comprehensive loss into net loss for the three and six months ended June 30, 2020 and 2019. In August 2018, the Financial Accounting Standards Board ("FASB") 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 The Company adopted ASU 2018-15 on January 1, 2020 prospectively. The adoption of ASU 2018-15 did not have a material impact on the Company’s condensed consolidated financial statements. In January 2017, the FASB issued ASU No. 2017-04, Intangibles - Goodwill and Other (Topic 350): Simplifying the Accounting for Goodwill Impairment The Company adopted ASU 2017-04 on January 1, 2020 prospectively. The adoption of ASU 2017-14 did not have an impact on the Company’s condensed consolidated financial statements. In June 2016, the FASB issued ASU No. 2016-13 , Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments amortized cost basis of the financial asset, resulting in a net presentation of the amount expected to be collected on the financial asset. The Company adopted ASU 2016-13 on January 1, 2020, utilizing the modified retrospective approach. The adoption of ASU 2016-13 did not have a material impact on its condensed consolidated financial statements as credit losses are not expected to be significant based on historical collection trends, the financial condition of partners and customers, and external market factors. Recent Accounting Pronouncements Not Yet Effective In December 2019, the FASB issued ASU No. 2019-12, Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes

Revenue, Deferred Revenue and D

Revenue, Deferred Revenue and Deferred Contract Costs	6 Months Ended
	Jun. 30, 2020
Revenue From Contract With Customer [Abstract]
Revenue, Deferred Revenue and Deferred Contract Costs	2. Revenue, Deferred Revenue and Deferred Contract Costs The core principle of ASC 606 is to recognize revenue to depict the transfer of services or products to customers in an amount that reflects the consideration the Company expects to be entitled to in exchange for those services or products. The Company applies significant judgment in identifying and evaluating any terms and conditions in contracts which may impact revenue recognition. The principle is achieved through the following five-step approach: • Identification of the contract, or contracts, with the customer • Identification of the performance obligation in the contract • Determination of the transaction price • Allocation of the transaction price to the performance obligations in the contract • Recognition of revenue when, or as, the Company satisfies a performance obligation The Company generates sales directly through its sales team and, to a growing extent, through its channel partners. Sales to channel partners are made at a discount and revenues are recorded at this discounted price once all revenue recognition criteria are met. Channel partners generally receive an order from an end-customer prior to placing an order with the Company, and these partners do not carry any inventory of the Company’s products or solutions. Payment from channel partners is not contingent on the partner’s success in sales to end-customers. In the event that the Company offers rebates, joint marketing funds, or other incentive programs to a partner, recorded revenues are reduced by these amounts accordingly. Payment terms on invoiced amounts are typically 30 to 45 days. Disaggregation of Revenue The Company derives its revenue primarily from: (1) subscription service revenue; (2) subscription software revenue, and (3) hardware and services, which include professional service and training revenue provided to customers related to their use of the platform. The following table presents the Company’s revenue disaggregation: Three Months Ended June 30, Six Months Ended June 30, 2020 2019 2020 2019 Subscription service revenue $ 244,137 $ 207,074 $ 480,858 $ 401,476 Subscription software revenue 10,755 3,706 18,103 8,888 Hardware and services 3,546 3,659 9,251 7,012 Total revenue $ 258,438 $ 214,439 $ 508,212 $ 417,376 Subscription service revenue Subscription service revenue is derived from a subscription-based enterprise licensing model with contract terms typically ranging from one to three years, and consists of (1) subscription fees from the licensing of the Company’s security-as-a-service platform and it’s various components, (2) subscription fees for software with support and related future updates where the software updates are critical to the customers’ ability to derive benefit from the software due to the fast changing nature of the technology. These function together as one performance obligation, and (3) subscription fees for the right to access the Company’s customer support services for software with significant standalone functionality and support services for hardware. The hosted on-demand service arrangements do not provide customers with the right to take possession of the software supporting the hosted services. Support revenue is derived from ongoing security updates, upgrades, bug fixes, and maintenance. A time-elapsed method is used to measure progress because the Company transfers control evenly over the contractual period. Accordingly, the fixed consideration related to subscription service revenue is generally recognized on a straight-line basis over the contract term beginning on the date access is provided, as long as other revenue recognition criteria have been met. Most of the Company’s contracts are non-cancelable over the contract term. Customers typically have the right to terminate their contract for cause if the Company fails to perform in accordance with the contractual terms. Some of the Company’s customers have the option to purchase additional subscription services at a stated price. These options are evaluated on a case-by-case basis but generally do not provide a material right as they are priced at or above the Company’s SSP and, as such, would not result in a separate performance obligation. Subscription software revenue Subscription software revenue is primarily derived from term-based software that is deployed on the customers’ own servers and has significant standalone functionality, is recognized upon transfer of control to the customer. The control for subscription software is transferred at the later of delivery to the customer or the software license start date. Hardware and services Hardware revenue consists of amounts derived from the sale of the Company’s on-premise hardware appliance, which is recognized upon passage of control, which occurs upon shipment of the product. Professional services revenue consists of fees associated with consulting, implementation and training services for assisting customers in implementing and expanding the use of the Company’s services and products. These services are distinct from subscription, subscription software licenses and hardware. Professional services do not result in significant customization of the Company’s services and products. The Company recognizes revenue related to the professional services as they are performed. Contracts with multiple performance obligations Most of the Company’s contracts with customers contain multiple performance obligations that are distinct and accounted for separately. The transaction price allocated to subscription services and subscription software that does not have significant standalone functionality is determined by considering factors such as historical pricing practices, and the selling price of hardware and professional services is estimated using a cost plus model. The selling price for support of a functional subscription software license is calculated as a percentage of functional subscription software license value which is derived by analyzing internal pricing practice, customer expectations, and industry practice. Variable consideration Revenue from sales is recorded at the net sales price, which is the transaction price, and includes estimates of variable consideration. The amount of variable consideration that is included in the transaction price is constrained, and is included in the net sales price only to the extent that it is probable that a significant reversal in the amount of the cumulative revenue will not occur when the uncertainty is resolved. If the Company’s services or products do not meet certain service level commitments, the Company’s customers are entitled to receive service credits representing a form of variable consideration. The Company has not historically experienced any significant incidents affecting the defined levels of reliability and performance as required by the Company’s subscription contracts. Accordingly, any estimated refunds related to these contracts in the condensed consolidated financial statements are not material during the periods presented. Unbilled accounts receivables Unbilled accounts receivable represents amounts for which the Company has recognized revenue, pursuant to its revenue recognition policy, for software licenses already delivered and professional services already performed, but billed in arrears and for which the Company believes it has an unconditional right to payment. The unbilled accounts receivable balance, included in accounts receivable in the condensed consolidated balance sheet, was $2,389 Deferred commissions The Company capitalizes sales commissions and associated payroll taxes paid to internal sales personnel, and referral fees paid to independent third-parties, that are incremental to the acquisition of customer contracts. These costs are recorded as deferred commissions on the condensed consolidated balance sheets. The Company determines whether costs should be deferred based on its sales compensation plans, if the commissions are incremental and would not have occurred absent the customer contract. Sales commissions for renewal of a subscription contract are not considered commensurate with the commissions paid for the acquisition of the initial subscription contract given the substantive difference in commission rate between new and renewal contracts. Commissions paid upon the initial acquisition of a contract are amortized over an estimated period of benefit of five years while commissions paid related to renewal contracts are amortized over a contractual renewal period. Amortization is recognized based on the expected future revenue streams under the customer contracts. Amortization of deferred sales commissions is included in sales and marketing expense in the accompanying condensed consolidated statements of operations. The Company determines the period of benefit for commissions paid for the acquisition of the initial subscription contract by taking into consideration its initial estimated customer life and the technological life of the Company’s software and related significant features. The Company classifies deferred commissions as current or long-term based on the timing of when the Company expects to recognize the expense. The Company periodically reviews these deferred commission costs to determine whether events or changes in circumstances have occurred that could impact the period of benefit of these deferred contract acquisition costs. There were no material impairment losses recorded during the periods presented. For the three months ended June 30, 2020 and 2019, the Company capitalized $20,783 and $18,063 of commission costs, respectively, and amortized $15,370 and $12,400, respectively. For the six months ended June 30, 2020 and 2019, the Company capitalized $35,953 and $30,978 of commission costs, respectively, and amortized $30,003 and $23,671, respectively. Deferred product costs Deferred product costs are the incremental costs to fulfill a contract that are directly associated with each non-cancellable customer contract and primarily consist of royalty payments made to third parties, from whom the Company has obtained licenses to integrate certain software into its products. The deferred product costs are recognized based on the contractual term, and included in cost of revenue in the accompanying condensed consolidated statements of operations. The Company classifies deferred product costs as current or long-term based on the timing of when the Company expects to recognize the expense. For the three months ended June 30, 2020 and 2019, the Company capitalized $901 and $889 of deferred product costs, respectively, and amortized $1,035 and $694, respectively. For the six months ended June 30, 2020 and 2019, the Company capitalized $2,077 and $1,576 of deferred product costs, respectively, and amortized $2,154 and $1,481, respectively. Deferred revenue The Company records deferred revenue when cash payments are received, or invoices are issued in advance of the Company’s performance, and generally recognizes revenue over the contractual term. The Company recognized $222,562 and $187,447 of revenue during the three months ended June 30, 2020 and 2019, respectively, that was included in the deferred revenue balances at the beginning of the respective periods. The Company recognized $394,857 and $328,985 of revenue during the six months ended June 30, 2020 and 2019, respectively, that was included in the deferred revenue balances at the beginning of the respective periods. The Company recognized $1,456 and $1,639 of revenue during the three months ended June 30, 2020 and 2019, respectively, related to the performance obligations satisfied in prior periods. The Company recognized $1,442 and $1,811 of revenue during the six months ended June 30, 2020 and 2019, respectively, related to the performance obligations satisfied in prior periods. Remaining performance obligations Contracted revenue as of June 30, 2020 that has not yet been recognized (“contracted not recognized”) was $686,609, which includes deferred revenue and non-cancellable amounts that will be invoiced and recognized as revenue in future periods and excludes contracts with an original expected length of one year or less. The Company expects 58 39

Acquisitions

Acquisitions	6 Months Ended
	Jun. 30, 2020
Business Combinations [Abstract]
Acquisitions	3. Acquisitions Acquisitions are accounted for under the purchase method of accounting in which the tangible and identifiable intangible assets and liabilities of each acquired company are recorded at their respective fair values as of each acquisition date, including an amount for goodwill representing the difference between the respective acquisition consideration and fair values of identifiable net assets. The Company believes that for the acquisitions described below, the combined entities will achieve savings in corporate overhead costs and opportunities for growth through expanded geographic and customer segment diversity with the ability to leverage additional products and capabilities. These factors, among others, contributed to purchase prices in excess of the estimated fair values of the acquired companies’ net identifiable assets acquired and, as a result, goodwill was recorded in connection with the acquisitions. Goodwill related to the acquisitions of The Defence Works Limited, ObserveIT, Ltd. and Meta Networks, Ltd. is deductible for tax purposes. While the Company uses its best estimates and assumptions as part of the purchase price allocation process to value assets acquired and liabilities assumed at the acquisition date, these estimates and assumptions are subject to refinement. When additional information becomes available, such as finalization of negotiations of working capital adjustments and tax related matters, the Company may revise its preliminary purchase price allocation. As a result, during the preliminary purchase price allocation period, which may be up to one year from the acquisition date, the Company may record adjustments to the assets acquired and liabilities assumed, with the corresponding offset to goodwill. Subsequent to the purchase price allocation period, adjustments to assets acquired or liabilities assumed are recognized in the operating results. 2020 Acquisition The Defence Works Limited On May 5, 2020, the Company completed its acquisition of The Defence Works Limited. The acquisition brings a library of interactive content to the Company’s security awareness training portfolio and provides the Company’s customers innovative content to support their security education programs. The total consideration was $2,767, of which $766 was allocated to goodwill and $2,400 was allocated to intangible assets. The acquired intangible assets consist of content library which is included within the developed technology assets in Note 4 “Goodwill and Intangible Assets.” The impact of the acquisition was not material to the Company’s condensed consolidated financial statements for the three and six months ended June 30, 2020. 2019 Acquisition s ObserveIT, Ltd. On November 25, 2019 (the “ObserveIT Acquisition Date”), pursuant to the terms of the share purchase agreement, the Company acquired all shares of ObserveIT, Ltd. (“ObserveIT”). ObserveIT provides detection and prevention from insider threats solutions including data loss detection and response, user activity monitoring, incident response and compliance. By combining ObserveIT’s endpoint agent technology and data risk analytics with the Company’s information classification, threat detection and intelligence, the Company has an insight into user activity with their sensitive data, wherever it resides, and the ability to immediately remediate risk. These factors, among others, contributed to a purchase price in excess of the estimated fair value of acquired net identifiable assets and, as a result, goodwill was recorded in connection with the acquisition. The results of operations and the fair values of the acquired assets and liabilities assumed have been included in the accompanying consolidated financial statements since the ObserveIT Acquisition Date. At the ObserveIT Acquisition Date, the consideration transferred was $213,747, net of cash acquired of $4,752. Of the consideration transferred, $3,250 was held in escrow to secure indemnification obligations. Per the terms of the share purchase agreement, unvested stock options held by ObserveIT employees were canceled and exchanged for the Company’s unvested stock options. The fair value of $446 of these unvested awards was attributed to pre-combination services and was included in consideration transferred. The fair value of $5,427 was allocated to post-combination services. The unvested awards are subject to the recipient’s continued service with the Company and $5,427 is recognized ratably as stock-based compensation expense over the required remaining service period. Also, as part of the share purchase three-year The Discounted Cash Flow Method was used to value the acquired developed technology, in-process research and development asset, customer relationships and order backlog. The Relief from Royalty Method was used to value the acquired trade name. Management applied significant judgment in estimating the fair values of these intangible assets, which involved the use of significant assumptions with respect to forecasted revenue, forecasted operating results and discount rates. The following table summarizes the fair values of tangible assets acquired, liabilities assumed, intangible assets and goodwill: Estimated Fair Value Estimated Useful Life (in years) Current assets $ 10,603 N/A Fixed assets 2,132 N/A Operating lease right-of-use asset 2,669 N/A Other assets 652 N/A Customer relationships 15,800 5 Order backlog 1,300 1 Core/developed technology 35,400 4 Trade name 400 2 In-process research and development * 20,600 N/A Operating lease liabilities (3,317 ) N/A Deferred revenue (6,700 ) N/A Other liabilities (5,591 ) N/A Goodwill 144,551 Indefinite $ 218,499 * Purchased in-process research and development was accounted for as an indefinite-lived intangible asset until the underlying project was completed. Meta Networks, Ltd. On May 15, 2019 (the “Meta Networks Acquisition Date”), pursuant to the terms of the share purchase agreement, the Company acquired all shares of Meta Networks, Ltd. (“Meta Networks”), an innovator in zero trust network access. By combining Meta Networks’ innovative zero trust network access technology with the Company’s people-centric security capabilities the Company expects to make it far simpler for enterprises to precisely control employee and contractor access to on-premises, cloud, and consumer applications. These factors, among others, contributed to a purchase price in excess of the estimated fair value of acquired net identifiable assets and, as a result, goodwill was recorded in connection with the acquisition. The results of operations and the fair values of the acquired assets and liabilities assumed have been included in the accompanying condensed consolidated financial statements since the Meta Networks Acquisition Date. At the Meta Networks Acquisition Date, the consideration transferred was $104,664, net of cash acquired of $104. Of the consideration transferred, $12,500 was held in escrow to secure indemnification obligations. Per the terms of the share purchase agreement, unvested stock options and unvested restricted stock units held by Meta Networks employees were canceled and exchanged for the Company’s unvested stock options and unvested restricted stock units, respectively. The fair value of $184 of these unvested awards was attributed to pre-combination services and was included in consideration transferred. The fair value of $12,918 was allocated to post-combination services. The unvested awards are subject to the recipient’s continued service with the Company, and $12,918 will be recognized ratably as stock-based compensation expense over the required remaining service period. Also, as part of the share purchase three-year The Cost to Recreate Method was used to value the acquired developed technology asset. Management applied judgment in estimating the fair value of this intangible asset, which involved the use of significant assumptions such as the cost and time to build the acquired technology, developer’s profit and rate of return. The following table summarizes the fair values of tangible assets acquired, liabilities assumed, intangible assets and goodwill: Fair Value Estimated Useful Life (in years) Current assets $ 356 N/A Fixed assets 68 N/A Core/developed technology 21,000 3 Deferred tax liability, net (1,854 ) N/A Other liabilities (671 ) N/A Goodwill 85,869 Indefinite $ 104,768

Goodwill and Intangible Assets

Goodwill and Intangible Assets	6 Months Ended
	Jun. 30, 2020
Goodwill And Intangible Assets Disclosure [Abstract]
Goodwill and Intangible Assets	4. Goodwill and Intangible Assets The goodwill activity and balances are presented below: Beginning balance as of December 31, 2019 $ 687,517 Acquisition during period 766 Purchase accounting adjustments 178 Closing balance as of June 30, 2020 $ 688,461 Intangible assets, excluding goodwill, consisted of the following: June 30, 2020 December 31, 2019 Gross Carrying Amount Accumulated Amortization Net Carrying Amount Gross Carrying Amount Accumulated Amortization Net Carrying Amount Developed technology $ 233,469 $ (130,214 ) $ 103,255 $ 210,469 $ (110,284 ) $ 100,185 Customer relationships 87,200 (32,252 ) 54,948 87,200 (25,608 ) 61,592 Trade names and patents 3,730 (2,950 ) 780 3,730 (2,349 ) 1,381 Order backlog 8,100 (7,576 ) 524 8,100 (6,360 ) 1,740 In-process research and development — — — 21,125 — 21,125 $ 332,499 $ (172,992 ) $ 159,507 $ 330,624 $ (144,601 ) $ 186,023 In-process research and development asset was transferred to developed technology in the three months ended June 30, 2020, as the associated project was completed. Amortization of intangible assets expense was $13,939 and $11,139 for the three months ended June 30, 2020 and 2019, respectively, and $28,390 and $21,438 for the six months ended June 30, 2020 and 2019, respectively. Future estimated amortization of intangible assets expense as of June 30, 2020 are presented below: Year ending December 31, 2020, remainder $ 29,115 2021 54,322 2022 32,060 2023 22,495 2024 13,807 Thereafter 7,708 $ 159,507

Fair Value Measurements and Inv

Fair Value Measurements and Investments	6 Months Ended
	Jun. 30, 2020
Fair Value Disclosures [Abstract]
Fair Value Measurements and Investments	5. Fair Value Measurements and Investments Fair Value Measurements Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability (i.e., the “exit price”) in an orderly transaction between market participants at the measurement date. A hierarchy for inputs used in measuring fair value has been defined to minimize the use of unobservable inputs by requiring the use of observable market data when available. Observable inputs are inputs that market participants would use in pricing the asset or liability based on active market data. Unobservable inputs are inputs that reflect the Company’s assumptions about the assumptions market participants would use in pricing the asset or liability based on the best information available in the circumstances. The fair value hierarchy prioritizes the inputs into three broad levels: • Level 1: Quoted (unadjusted) prices in active markets for identical assets or liabilities. The Company’s Level 1 assets generally consist of money market funds. • Level 2: Observable inputs other than quoted prices included in Level 1, such as quoted prices for similar assets or liabilities in active markets; quoted prices for identical or similar assets or liabilities in markets that are not active; or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the asset or liability. The Company’s Level 2 assets and liabilities generally consist of corporate debt securities, commercial papers, U.S. agency and Treasury securities and convertible senior notes. • Level 3: Unobservable inputs to the valuation methodology that are supported by little or no market activity and that are significant to the measurement of the fair value of the assets or liabilities. Level 3 assets and liabilities include those whose fair value measurements are determined using pricing models, discounted cash flow methodologies or similar valuation techniques, as well as significant management judgment or estimation. The following tables summarize, for each category of assets or liabilities carried at fair value, the respective fair value as of June 30, 2020 and December 31, 2019 and the classification by level of input within the fair value hierarchy: June 30, 2020 Total Level 1 Level 2 Level 3 Assets Cash equivalents: Money market funds $ 921,061 $ 921,061 $ — $ — Short-term investments: Commercial paper 9,988 — 9,988 — U.S. Treasury securities 2,000 — 2,000 — Total financial assets $ 933,049 $ 921,061 $ 11,988 $ — December 31, 2019 Total Level 1 Level 2 Level 3 Assets Cash equivalents: Money market funds $ 815,158 $ 815,158 $ — $ — Commercial paper 9,989 — 9,989 — Short-term investments: Corporate debt securities 13,454 — 13,454 — Commercial paper 27,932 — 27,932 — U.S. Treasury securities 1,999 — 1,999 — Total financial assets $ 868,532 $ 815,158 $ 53,374 $ — Based on quoted market prices as of June 30, 2020 and December 31, 2019, the fair value of the 2024 Notes (Note 8) was approximately $901,269 and $951,050, respectively, determined using Level 2 inputs as they are not actively traded in markets. Investments The cost and fair value of the Company’s cash and cash equivalents and available-for-sale investments as of June 30, 2020 and December 31, 2019 were as follows: June 30, 2020 Amortized Cost Unrealized Gains Unrealized Losses Fair Value Cash and cash equivalents: Cash $ 40,295 $ — $ — $ 40,295 Money market funds 921,061 — — 921,061 Total $ 961,356 $ — $ — $ 961,356 Short-term investments: Commercial paper $ 9,988 $ — $ — $ 9,988 U.S. Treasury securities 1,998 2 — 2,000 Total $ 11,986 $ 2 $ — $ 11,988 December 31, 2019 Amortized Cost Unrealized Gains Unrealized Losses Fair Value Cash and cash equivalents: Cash $ 22,408 $ — $ — $ 22,408 Money market funds 815,158 — — 815,158 Commercial paper 9,989 — — 9,989 Total $ 847,555 $ — $ — $ 847,555 Short-term investments: Corporate debt securities $ 13,453 $ 2 $ (1 ) $ 13,454 Commercial paper 27,932 — — 27,932 U.S. Treasury securities 1,998 1 — 1,999 Total $ 43,383 $ 3 $ (1 ) $ 43,385 As of June 30, 2020 and December 31, 2019, respectively, all investments mature in less than one year. Estimated fair values for marketable securities are based on quoted market prices for the same or similar instruments. The Company reviews its investments on a quarterly basis to identify and evaluate investments that have an indication of possible impairment and has determined that no impairments were required to be recognized during the three and six months ended June 30, 2020 and 2019.

Leases

Leases	6 Months Ended
	Jun. 30, 2020
Leases [Abstract]
Leases	6. Leases The Company determines if an arrangement is, or contains, a lease at inception. Operating leases are included in operating right-of-use assets and operating lease liabilities in the condensed consolidated balance sheets. The Company does not separate non-lease components from lease components for its real estate and data center leases and instead account for each separate lease component, and non-lease components associated with that lease component, as a single lease component. The Company does not recognize right-of-use assets and lease liabilities for short-term leases, which have a lease term of twelve months or less. The Company has operating leases for corporate offices, research and development facilities, sales and marketing offices, and data centers. The Company’s real estate leases have remaining lease terms for up to ten years, some of which include options to extend the lease period up to ten years. The data center leases have remaining lease terms up to three years, some of which have renewal periods of one year. In October 2018, the Company entered into a 127 month lease agreement to lease approximately 242,400 square feet of corporate office space in Sunnyvale, California, which is expected to become the Company’s new corporate headquarters. The property is being constructed by the landlord, with the completion date expected to occur in November 2020, which is when the lease is expected to commence. As such no ROU assets or related lease liabilities were recorded in the condensed financial statements for the three and six months ended June 30, 2020. The lease contains a rent holiday period, scheduled rent increases, lease incentives, and renewal option which allow the lease term to be extended by five years . Base rental payments will be approximately $ 161,300 over the lease term. The components of lease expense were as follows: Three Months Ended June 30, Six Months Ended June 30, 2020 2019 2020 2019 Operating lease cost $ 7,203 $ 6,391 $ 14,311 $ 12,731 Short-term lease cost 617 709 1,291 1,347 Variable lease cost 1,127 853 2,165 1,708 Total lease cost $ 8,947 $ 7,953 $ 17,767 $ 15,786 Supplemental information related to leases was as follows: Three Months Ended June 30, Six Months Ended June 30, 2020 2019 2020 2019 Cash paid for amounts included in the measurement of operating lease liabilities $ 6,408 $ 5,938 $ 15,967 $ 12,832 Right-of-use assets obtained in exchange for operating lease obligations $ 18,660 $ 3,234 $ 28,195 $ 3,979 Weighted-average remaining lease term - operating leases 5 years 4 years Weighted-average discount rate - operating leases 4.32 % 4.83 % Maturities of lease liabilities as of June 30, 2020 were as follows: Operating leases Year ending December 31, 2020 $ 14,242 2021 19,640 2022 17,725 2023 8,234 2024 4,836 Thereafter 13,714 Total lease payments 78,391 Less imputed interest (8,346 ) Total $ 70,045

Contingencies

Contingencies	6 Months Ended
	Jun. 30, 2020
Commitments And Contingencies Disclosure [Abstract]
Contingencies	7. Contingencies Contingencies Under the indemnification provisions of the Company’s customer agreements, the Company agrees to indemnify and defend and hold harmless its customers against, among other things, infringement of any patent, trademark or copyright under any country’s laws or the misappropriation of any trade secret arising from the customers’ legal use of the Company’s solutions. The exposure to the Company under these indemnification provisions is generally limited to the total amount paid by the customers under the applicable customer agreement. However, certain indemnification provisions potentially expose the Company to losses in excess of the aggregate amount paid to the Company by the customer under the applicable customer agreement. To date, there have been no claims against the Company or its customers pursuant to these indemnification provisions. Legal Contingencies From time to time, the Company may be involved in legal proceedings and subject to claims in the ordinary course of business. For lawsuits where the Company is the defendant, the Company is in the process of defending these litigation matters, and while there can be no assurances and the outcomes of these matters are currently not determinable, the Company currently believes that there are no existing claims or proceedings that are likely to have a material adverse effect on the Company’s financial position, results of operations or cash flows.

Convertible Senior Notes

Convertible Senior Notes	6 Months Ended
	Jun. 30, 2020
Senior Longterm Notes Current And Noncurrent [Abstract]
Convertible Senior Notes	8. Convertible Senior Notes 0.25% Convertible Senior Notes due 2024 On August 23, 2019, the Company issued $920,000 aggregate principal amount of 0.25% Convertible Senior Notes due 2024 (the “2024 Notes”). The offering represented $800,000 aggregate principal amount of the 2024 Notes plus the full exercise of the initial buyers’ option to purchase up to an additional $120,000 aggregate principal amount. used of the net proceeds from the offering to pay the cost of the capped call transactions described below. The Company expects to use the remaining net proceeds for general corporate purposes, which may include acquisitions or other strategic transactions . The initial conversion rate is 6.4941 shares of the Company’s common stock per $1 principal amount of the 2024 Notes, which equates to an initial conversion price of $153.99 per share of common stock. Throughout the term of the 2024 Notes, the conversion rate may be adjusted upon the occurrence of certain events. At the Company’s option, on or after August 20, 2022, the Company will be able to redeem all or a portion of the 2024 Notes at 100% of the principal amount, plus any accrued and unpaid interest, under certain conditions. The Company may redeem the 2024 Notes in shares of the Company’s common stock, cash, or some combination of each. P rior to April 15, 2024, the 2024 Notes will be convertible at the option of the holders only upon the satisfaction of certain conditions and during certain periods upon the following circumstances: • during any calendar quarter commencing after December 31, 2019, if the last reported sale price of the Company’s 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 preceding calendar quarter is greater than or equal to 130% of the applicable conversion price on each such trading day; • during the five business day period after any five consecutive trading day period in which the trading price per $1 principal amount of the 2024 Notes for each trading day of that five day consecutive trading day period was less than 98% of the product of the last reported sale price of the Company’s common stock and the applicable conversion rate on each such trading day; • upon a notice of redemption in which case, the Company will increase the conversion rate for the 2024 Notes so surrendered for conversion in connection with such redemption notice in accordance with the indenture; or • upon the occurrence of specified corporate transactions, as described in the indenture. On or after April 15, 2024, holders may convert their 2024 Notes at the applicable conversion rate at any time prior to the close of business on the second scheduled trading day immediately preceding the maturity date. Holders of the 2024 Notes also have the right to require the Company to repurchase all or a portion of the 2024 Notes at 100% of the principal amount, plus accrued and unpaid interest, if any, upon the occurrence of certain fundamental changes to the Company. In accounting for the issuance of the 2024 Notes, the Company separated the 2024 Notes into liability and equity components. The carrying amount of the liability component was calculated by measuring the fair value of similar liabilities that do not have associated convertible features. The carrying amount of the equity component representing the conversion option was determined by deducting the fair value of the liability component from the principal amount of the 2024 Notes. The Company bifurcated the conversion option of the 2024 Notes from the debt instrument, classified the conversion option in equity and will accrete the resulting debt discount as interest expense over the contractual term of the 2024 Notes using the effective interest rate method. The equity component is not remeasured while the 2024 Notes continue to meet the conditions for equity classification. Upon issuance of the 2024 Notes, after allocation of debt discount and issuance costs, the Company recorded $737,912 as debt and $163,023 as additional paid in capital within stockholders’ equity. The effective interest rate of the liability component of the 2024 Notes is 4.76%. This interest rate was based on the interest rates of similar liabilities held by other companies with similar credit risk ratings at the time of issuance that did not have associated convertible features. The debt discount and issuance costs were allocated based on the total amount incurred to the liability and equity components using the same proportions as the proceeds from the 2024 Notes. The equity issuance costs of $3,450 were recorded as a decrease to additional paid-in capital at the issuance date. The following table represents the carrying value of the 2024 Notes as of June 30, 2020: June 30, 2020 December 31, 2019 Liability component: Principal $ 920,000 $ 920,000 Less: debt discount and issuance costs, net of amortization (153,597 ) (170,380 ) Net carrying amount $ 766,403 $ 749,620 Equity component (1) $ 163,023 $ 163,023 (1) Recorded on the consolidated balance sheets as additional paid-in capital, net of the $3,450 issuance costs in equity. Capped Calls In connection with the issuance of the 2024 Notes, including the initial purchasers’ exercise of the option to purchase additional 2024 Notes, the Company entered into privately negotiated capped call transactions with certain counterparties (the “Capped Calls”). The Capped Calls are expected to reduce potential dilution to the Company’s common stock upon conversion of the 2024 Notes and/or offset any cash payments that the Company is required to make in excess of the principal amount of the converted 2024 Notes, as the case may be, with such reduction and/or offset subject to a cap. The Capped Calls have a cap price equal to $223.98 per share, subject to certain adjustments, and expire on August 15, 2024. The Capped Calls are subject to adjustment upon the occurrence of specified extraordinary events affecting the Company, including merger events, tender offers and announcement events. In addition, the Capped Calls are subject to certain specified additional disruption events that may give rise to a termination of the Capped Calls, including nationalization, insolvency or delisting, changes in law, failures to deliver, insolvency filings and hedging disruptions. For accounting purposes, the Capped Calls are separate transactions, and not part of the terms of the 2024 Notes. As these transactions meet certain accounting criteria, the Capped Calls are recorded in stockholders’ equity and are not accounted for as derivatives. The premium paid for the purchase of the Capped Calls in the amount of $83,720 and related issuance cost of $1,151 have been recorded as a reduction to additional paid-in capital and will not be remeasured. For the three and six months ended June 30, 2020 and 2019, the Company incurred the following expenses related to the 2024 Notes: Three Months Ended June 30, Six Months Ended June 30, 2020 2019 2020 2019 Interest expense related to contractual interest coupon $ 575 $ — $ 1,150 $ — Amortization of debt discount and issuance costs 8,438 — 16,783 — Total $ 9,013 $ — $ 17,933 $ —

Equity Award Plans

Equity Award Plans	6 Months Ended
	Jun. 30, 2020
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract]
Equity Award Plans	9. Equity Award Plans Stock-Based Compensation Plans On March 30, 2012, the Board of Directors and the Company’s stockholders approved the 2012 Equity Incentive Plan (the “2012 Plan”), which became effective in April 2012. The 2012 Plan was amended, effective June 2019, when the Company’s stockholders approved an Amended and Restated 2012 Equity Incentive Plan (the “Amended 2012 Plan”) at the annual meeting of the stockholders on June 6, 2019. The Company has eight equity incentive plans: the Company’s 2002 stock option plan (the “2002 Plan”), the Amended 2012 Plan and six plans assumed by the Company upon various business acquisitions. The assumed plans are the Cloudmark plan, the WebLife plan, the Meta Networks plan, the ObserveIT plan and two FireLayers plans. Upon the Company’s initial public offering, all shares that were reserved under the 2002 Plan but not issued, and shares issued but subsequently returned to the plan through forfeitures, cancellations and repurchases became part of the 2012 Plan and no further shares will be granted pursuant to the 2002 Plan. No further shares will be granted pursuant to the assumed plans. All outstanding stock awards under the 2002 Plan, the assumed plans and Amended 2012 Plan will continue to be governed by their existing terms. Under the Amended 2012 Plan, the Company has the ability to issue incentive stock options (“ISOs”), nonstatutory stock options (“NSOs”), restricted stock awards, stock bonus awards, stock appreciation rights (“SARs”), restricted stock units (“RSUs”), and performance stock units (“PSUs”). The Amended 2012 Plan also allows direct issuance of common stock to employees, outside directors and consultants at prices equal to the fair market value at the date of grant of options or issuance of common stock. Additionally, the Amended 2012 Plan provides for the grant of performance cash awards to employees, directors and consultants. The Company has the right to repurchase any unvested shares (at the option exercise price) of common stock issued directly or under option exercises. The right of repurchase generally expires over the vesting period. Stock bonus and other liability awards are accounted for as liability-classified awards, because the obligations are based predominantly on fixed monetary amounts that are generally known at the inception of the obligation, to be settled with a variable number of shares of the Company’s common stock. Under the equity incentive plans, the term of an option grant shall not exceed ten years from the date of its grant and options generally vest over a three to four-year four to five-year The Company net-share settles equity awards held by employees by withholding shares upon vesting to satisfy tax withholding obligations. The shares withheld to satisfy employee tax withholding obligations are returned to the Company’s Amended 2012 Plan and will be available for future issuance. Payments for employee’s tax obligations to the tax authorities are recognized as a reduction to additional paid-in capital and reflected as financing activities in the Company’s consolidated statements of cash flows. Stock Options There were no options granted during the six months ended June 30, 2020 and 2019. The Company realized no income tax benefit from stock option exercises in each of the periods presented due to recurring losses and the valuation allowances for deferred tax assets. Stock option activity under the Plan is as follows: Shares subject to Options Outstanding Number of Shares Weighted Average Exercise Price Weighted Average Remaining Contractual Term (in years) Aggregate Intrinsic Value Balance at December 31, 2019 1,047 $ 30.55 4.38 $ 88,190 Options exercised (115 ) 30.65 Options forfeited and expired (2 ) 18.06 Balance at June 30, 2020 930 $ 30.56 3.92 $ 74,934 The total intrinsic value of options exercised was $10,067 and $16,078 for the six months ended June 30, 2020 and 2019, respectively. Total cash proceeds from such option exercises were $3,522 and $2,876 for the six months ended June 30, 2020 and 2019, respectively. The fair value of option grants that vested was $1,285 and $815 for the six months ended June 30, 2020 and 2019, respectively. As of June 30, 2020, the Company had unamortized stock-based compensation expense of $6,212 related to stock options that will be recognized over the average remaining vesting term of the options of 1.79 years. Restricted Stock and Performance Stock Units A following table summarized the activity of RSUs and PSUs: RSUs and PSUs Outstanding Number of Shares Granted Fair Value Per Unit Awarded and unvested at December 31, 2019 4,895 $ 103.48 Awards granted 982 99.62 Awards vested (749 ) 101.84 Awards forfeited (146 ) 105.58 Awarded and unvested at June 30, 2020 4,982 $ 102.90 As of June 30, 2020, there was $358,368 of unamortized stock-based compensation expense related to unvested RSUs, which is expected to be recognized over a weighted average period of 3.39 years. The Company granted 155 shares of PSU and 11 restricted performance-based shares in the six months ended June 30, 2020. The Company granted 161 shares of PSUs in the six months ended June 30, 2019. The PSU and restricted shares vesting conditions were based on individual performance targets. Unamortized stock-based compensation expense was $2,908 as of June 30, 2020. Stock Bonus and Other Liability Awards The total accrued liability for the stock bonus and other liability awards was $8,200 and $13,427 as of June 30, 2020 and December 31, 2019, respectively. During the six months ended June 30, 2020 and 2019, 125 and 107 shares, respectively, of common stock earned under the stock bonus program were issued. Stock-based compensation expense related to stock bonus program was $8,200 and $6,484 for the six months ended June 30, 2020 and 2019, respectively. Employee Stock Purchase Plan On March 30, 2012, the Board of Directors and the Company’s stockholders approved the 2012 Employee Stock Purchase Plan (the “ESPP”), which became effective in April 2012. A total of 745 shares of the Company’s common stock were initially reserved for future issuance under the ESPP. The number of shares reserved for issuance under the ESPP will increase automatically on January 1 of each of the first eight years commencing with 2013 by the number of shares equal to 1% of the Company’s shares outstanding on the immediately preceding December 31, but not to exceed 1,490 shares, unless the Board of Directors, in its discretion, determines to make a smaller increase. As of June 30, 2020, there were 2,580 shares of the Company’s common stock available for future issuance under the ESPP. As of June 30, 2020, the Company expects to recognize $4,057 of the total unamortized compensation cost related to employee purchases under the ESPP over a weighted average period of 0.38 years. Restricted Stock and Deferred Shares The Company granted 111 shares of restricted stock in 2016 to certain key employees with the total fair value of $8,669 with annual vesting term of three years. The Company recognized $1,432 of stock-based compensation expense in the six months ended June 30, 2019. As of December 31, 2019, all shares were vested. As part of the WebLife acquisition in 2017, 107 shares were deferred for certain key employees with the total fair value of $9,652, and a vesting period between three and four years. The Company recognized $1,204 and $1,197 of stock-based compensation in the six months ended June 30, 2020 and 2019, respectively. As of June 30, 2020, there was $3,413 of unamortized stock-based compensation expense related to the unvested deferred shares. The deferred shares are subject to forfeiture if employment terminates prior to the lapse of the deferral date, and are expensed over the vesting period. As part of the acquisition of Wombat Security Technologies, Inc. in 2018, 51 shares were deferred for certain key employees with the total fair value of $5,458, and a vesting period of two years. The Company recognized $382 and $1,598 of stock-based compensation in the six months ended June 30, 2020 and 2019, respectively. As of June 30, 2020, all shares were fully vested. As part of the Meta Networks acquisition in 2019, 72 shares were deferred for certain key employees with the total fair value of $8,338 allocated to post-combination expense, and a vesting period of three years. The Company recognized $1,383 and $350 of stock-based compensation in the six months ended June 30, 2020 and 2019, respectively. As of June 30, 2020, there was $5,206 of unamortized stock-based compensation expense related to the unvested deferred shares. The deferred shares are subject to forfeiture if employment terminates prior to the lapse of the deferral date and are expensed over the vesting period. They are considered issued and outstanding shares of the Company at the acquisition date and have the same rights as other shares of common stock.

Net Loss per Share

Net Loss per Share	6 Months Ended
	Jun. 30, 2020
Earnings Per Share [Abstract]
Net Loss per Share	10. Net Loss per Share Basic net loss per share of common stock is calculated by dividing the net loss by the weighted‑average number of shares of common stock outstanding for the period. The weighted‑average number of shares of common stock used to calculate basic net loss per share of common stock excludes those shares subject to repurchase related to stock options or restricted stock that were exercised or issued prior to vesting as these shares are not deemed to be issued for accounting purposes until they vest. Diluted net loss per share of common stock is computed by dividing the net loss using the weighted‑average number of shares of common stock, excluding common stock subject to repurchase, and, if dilutive, potential shares of common stock outstanding during the period. Basic and diluted net loss per common share was the same for all periods presented as the impact of all potentially dilutive securities outstanding was anti-dilutive. The following table presents the potentially dilutive common shares outstanding that were excluded from the computation of diluted net loss per share for the periods presented because including them would have been anti-dilutive: June 30, 2020 June 30, 2019 Stock options to purchase common stock 930 1,132 Restricted stock units 4,982 4,589 Employee stock purchase plan 127 244 Common stock subject to repurchase 143 54 Bonus and other liability awards 74 114 2024 Notes 5,975 — Total 12,231 6,133

Segment Reporting

Segment Reporting	6 Months Ended
	Jun. 30, 2020
Segment Reporting [Abstract]
Segment Reporting	11. Segment Reporting Operating segments are reported in a manner consistent with the internal reporting supported and defined by the components of an enterprise about which separate financial information is available, provided and is evaluated regularly by the chief operating decision maker in deciding how to allocate resources and in assessing performance. The Company’s chief operating decision maker is its Chief Executive Officer. The Company’s Chief Executive Officer reviews financial information presented on a consolidated basis. The Company has one business activity, and there are no segment managers who are held accountable for operations, operating results and plans for levels or components below the consolidated unit level. Accordingly, the Company determined that it has one operating and reportable segment. The following sets forth total revenue by geographic area. Revenue by geographic area is based upon the billing address of the customer: Three Months Ended June 30, Six Months Ended June 30, 2020 2019 2020 2019 Total revenue: United States $ 205,077 $ 172,682 $ 403,702 $ 336,101 Rest of world 53,361 41,757 104,510 81,275 Total revenue $ 258,438 $ 214,439 $ 508,212 $ 417,376 Long-lived assets by geographic area are presented below: June 30, 2020 December 31, 2019 Long-lived assets: United States $ 70,092 $ 58,447 Rest of world 14,771 15,065 Total long-lived assets $ 84,863 $ 73,512

Income Taxes

Income Taxes	6 Months Ended
	Jun. 30, 2020
Income Tax Disclosure [Abstract]
Income Taxes	12. Income Taxes The Company’s quarterly provision for income taxes is based on an estimated effective annual income tax rate. The Company’s quarterly provision for income taxes also includes the tax impact of certain unusual or infrequently occurring items, if any, including changes in judgment about valuation allowances and effects of changes in tax laws or rates, in the interim period in which they occur. Income tax expense for the three and six months ended June 30, 2020 was $1,660 and $29,829 on pre-tax losses of $20,935 and $67,003, respectively. The Company recognized income tax expense of $280 and $900 on pre-tax losses of $28,633 and $56,291 for the three and six months ended June 30, 2019, respectively. The income tax rate for the three and six months ended June 30, 2020 varied from the United States statutory income tax rate primarily due to valuation allowances in the United States whereby pre-tax losses and income do not result in the recognition of corresponding income tax benefits and expenses. The income tax rate for the six months ended June 30, 2020 also varied from the United States statutory income rate due to the recognition of $27,107 tax expense related to the transfer of certain intellectual property rights from the Company’s wholly owned subsidiary in Israel to the United States which occurred in the quarter ended March 31, 2020. The income tax rate for the three and six months ended June 30, 2019 varied from the United States statutory income tax rate primarily due to valuation allowances in the United States whereby pre-tax losses and income do not result in the recognition of corresponding income tax benefits and expenses. The Company’s effective tax rate for the six months ended June 30, 2020 and 2019 was negative 45% and 2%, respectively. The Company reviews the likelihood that it will realize the benefit of its deferred tax assets and, therefore, the need for valuation allowances, on a quarterly basis. There is no corresponding income tax benefit recognized with respect to losses incurred and no corresponding income tax expense recognized with respect to earnings generated in jurisdictions with a valuation allowance. This causes variability in the Company’s effective tax rate. The Company intends to maintain the valuation allowances until it is more likely than not that the net deferred tax assets will be realized. As of June 30, 2020, the Company’s gross uncertain tax benefits totaled $50,581, excluding related accrued interest and penalties of $1,238. As of June 30, 2020, $32,206 of the Company’s uncertain tax benefits, including related accrued interest and penalties, would impact the effective tax rate if recognized. During the six months ended June 30, 2020, the Company’s gross uncertain tax benefits increased $17,411. The increase is comprised of a $17,432 increase for tax positions taken in the current period, offset by a $21 decrease for tax positions taken in prior periods. The Company is currently under audit by the Israel Tax Authority for tax years 2013 through 2017. Due to the audit by the Israel Tax Authority it is reasonably possible that the Company’s uncertain tax positions could change within the next 12 months. An estimate of the range of any change cannot be made. The Company believes it has recorded all appropriate provisions for all jurisdictions and open years. However, the Company can give no assurance that taxing authorities will not propose adjustments that would increase its tax liabilities. The Company is not currently under audit by the IRS or any similar taxing authority in any other material jurisdiction. The Coronavirus Aid, Relief, and Economic Security Act (the “CARES Act”) was enacted by the United States on March 27, 2020. The CARES Act did not have a material impact on the Company’s provision for income taxes for the six months ended June 30, 2020.

Defined Contribution Plan

Defined Contribution Plan	6 Months Ended
	Jun. 30, 2020
Defined Contribution Pension And Other Postretirement Plans Disclosure [Abstract]
Defined Contribution Plan	13. Defined Contribution Plan The Company’s tax-deferred savings plan is qualified under Section 401(k) of the United States Internal Revenue Code. Employees may make voluntary, tax-deferred contributions to the 401(k) Plan up to the statutorily prescribed annual limit. The Company makes discretionary matching contributions to the 401(k) Plan on behalf of employees up to the limit determined by the Board of Directors. The Company contributed $579 and $2,228, respectively, to the 401(k) Plan during the three and six months ended June 30, 2020. The Company contributed $589

The Company and Summary of Si_2

The Company and Summary of Significant Accounting Policies (Policies)	6 Months Ended
	Jun. 30, 2020
Accounting Policies [Abstract]
Basis of Presentation and Consolidation	Basis of Presentation and Consolidation These condensed consolidated financial statements include the accounts of the Company and its wholly-owned subsidiaries. All intercompany transactions and balances have been eliminated in consolidation. These condensed consolidated financial statements have been prepared in accordance with United States generally accepted accounting principles (“GAAP”), pursuant to the rules and regulations of the Securities and Exchange Commission (the “SEC”). Certain information and note disclosures have been condensed or omitted pursuant to such rules and regulations. The accompanying Condensed Consolidated Balance Sheet as of December 31, 2019 is derived from audited financial statements as of that date but does not include all of the information and footnotes required by accounting principles generally accepted in the United States for complete financial statements. The unaudited condensed consolidated financial statements have been prepared on the same basis as the annual financial statements and, in the opinion of management, reflect all adjustments, which include only normal recurring adjustments, necessary for a fair statement of the periods presented. The results of operations for the three and six months ended June 30, 2020 are not necessarily indicative of the results to be expected for the year ending December 31, 2020 or for other interim periods or for future years. These condensed consolidated financial statements should be read in conjunction with the Company’s audited consolidated financial statements and accompanying notes for the year ended December 31, 2019 included in the Company’s Annual Report on Form 10-K filed with the SEC. The Company’s significant accounting policies are described in Note 1 to those audited consolidated financial statements.
Reclassifications	Reclassifications Certain reclassifications have been made to prior year balances in order to conform to the current period presentation. “Interest income” has been reclassified from “Interest income (expense)” to “Other income (expense), net” in the condensed consolidated statements of operations. The reclassifications had no impact on previously reported net loss or accumulated deficit.
Use of Estimates	Use of Estimates The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of expenses during the reporting period. Actual results could differ from those estimates and such difference may be material to the financial statements. Due to the Coronavirus (“COVID-19”) pandemic, there has been uncertainty and disruption in the global economy and financial markets. The Company is not aware of any specific event or circumstance that would require an update to its estimates or judgments or a revision of the carrying value of its assets or liabilities as of June 30, 2020. These estimates may change, as new events occur and additional information is obtained, as well as other factors related to COVID-19 that could result in material impacts to our consolidated financial statements in future reporting periods.
Goodwill and Intangible Assets	Goodwill and Intangible Assets Goodwill represents the excess of the purchase price of the acquired enterprise over the fair value of identifiable assets acquired and liabilities assumed. The Company performs an annual goodwill impairment test during the fourth quarter of a calendar year and more frequently if an event or circumstances indicates that impairment may have occurred. For the purposes of impairment testing, the Company has determined that it has one operating segment and one reporting unit. To test goodwill for impairment, the Company compares the reporting unit’s carrying value with its fair value. If the carrying value of the reporting unit exceeds the reporting unit’s fair value, then the impairment charge equal to the difference is recorded; however, the loss recognized would not exceed the total amount of goodwill allocated to the reporting unit. The identification and measurement of goodwill impairment involves the estimation of the fair value of the Company. The estimate of fair value of the Company, based on the best information available as of the date of the assessment, is subjective and requires judgment, including management assumptions about expected future revenue forecasts and discount rates, changes in the overall economy, trends in the stock price and other factors. No impairment indicators were identified by the Company as of June 30, 2020. Intangible assets consist of developed technology, customer relationships, trademarks and patents, and order backlog. The values assigned to intangibles are based on estimates and judgments regarding expectations for success and life cycle of solutions and technologies acquired. Intangible assets are amortized on a straight-line basis over their estimated lives, which approximate the pattern in which the economic benefits of the intangible assets are consumed, as follows (in years): Low High Patents 4 5 Developed technology 2 7 Customer relationships 2 8 Order backlog 1 3 Trade names and trademarks 1 5
Comprehensive Loss	Comprehensive Loss Comprehensive loss includes all changes in equity that are not the result of transactions with stockholders. The Company’s comprehensive loss consists of its net loss and changes in unrealized gains (losses) from its available-for-sale investments. The Company had no material reclassifications out of accumulated other comprehensive loss into net loss for the three and six months ended June 30, 2020 and 2019.
New Accounting Pronouncements	In August 2018, the Financial Accounting Standards Board ("FASB") 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 The Company adopted ASU 2018-15 on January 1, 2020 prospectively. The adoption of ASU 2018-15 did not have a material impact on the Company’s condensed consolidated financial statements. In January 2017, the FASB issued ASU No. 2017-04, Intangibles - Goodwill and Other (Topic 350): Simplifying the Accounting for Goodwill Impairment The Company adopted ASU 2017-04 on January 1, 2020 prospectively. The adoption of ASU 2017-14 did not have an impact on the Company’s condensed consolidated financial statements. In June 2016, the FASB issued ASU No. 2016-13 , Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments amortized cost basis of the financial asset, resulting in a net presentation of the amount expected to be collected on the financial asset. The Company adopted ASU 2016-13 on January 1, 2020, utilizing the modified retrospective approach. The adoption of ASU 2016-13 did not have a material impact on its condensed consolidated financial statements as credit losses are not expected to be significant based on historical collection trends, the financial condition of partners and customers, and external market factors. Recent Accounting Pronouncements Not Yet Effective In December 2019, the FASB issued ASU No. 2019-12, Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes
Leases	The Company determines if an arrangement is, or contains, a lease at inception. Operating leases are included in operating right-of-use assets and operating lease liabilities in the condensed consolidated balance sheets. The Company does not separate non-lease components from lease components for its real estate and data center leases and instead account for each separate lease component, and non-lease components associated with that lease component, as a single lease component. The Company does not recognize right-of-use assets and lease liabilities for short-term leases, which have a lease term of twelve months or less.

Revenue, Deferred Revenue and_2

Revenue, Deferred Revenue and Deferred Contract Costs (Policies)	6 Months Ended
	Jun. 30, 2020
Revenue From Contract With Customer [Abstract]
Revenue Recognition	Subscription service revenue Subscription service revenue is derived from a subscription-based enterprise licensing model with contract terms typically ranging from one to three years, and consists of (1) subscription fees from the licensing of the Company’s security-as-a-service platform and it’s various components, (2) subscription fees for software with support and related future updates where the software updates are critical to the customers’ ability to derive benefit from the software due to the fast changing nature of the technology. These function together as one performance obligation, and (3) subscription fees for the right to access the Company’s customer support services for software with significant standalone functionality and support services for hardware. The hosted on-demand service arrangements do not provide customers with the right to take possession of the software supporting the hosted services. Support revenue is derived from ongoing security updates, upgrades, bug fixes, and maintenance. A time-elapsed method is used to measure progress because the Company transfers control evenly over the contractual period. Accordingly, the fixed consideration related to subscription service revenue is generally recognized on a straight-line basis over the contract term beginning on the date access is provided, as long as other revenue recognition criteria have been met. Most of the Company’s contracts are non-cancelable over the contract term. Customers typically have the right to terminate their contract for cause if the Company fails to perform in accordance with the contractual terms. Some of the Company’s customers have the option to purchase additional subscription services at a stated price. These options are evaluated on a case-by-case basis but generally do not provide a material right as they are priced at or above the Company’s SSP and, as such, would not result in a separate performance obligation. Subscription software revenue Subscription software revenue is primarily derived from term-based software that is deployed on the customers’ own servers and has significant standalone functionality, is recognized upon transfer of control to the customer. The control for subscription software is transferred at the later of delivery to the customer or the software license start date. Hardware and services Hardware revenue consists of amounts derived from the sale of the Company’s on-premise hardware appliance, which is recognized upon passage of control, which occurs upon shipment of the product. Professional services revenue consists of fees associated with consulting, implementation and training services for assisting customers in implementing and expanding the use of the Company’s services and products. These services are distinct from subscription, subscription software licenses and hardware. Professional services do not result in significant customization of the Company’s services and products. The Company recognizes revenue related to the professional services as they are performed.
Contracts With Multiple Performance Obligations	Contracts with multiple performance obligations Most of the Company’s contracts with customers contain multiple performance obligations that are distinct and accounted for separately. The transaction price allocated to subscription services and subscription software that does not have significant standalone functionality is determined by considering factors such as historical pricing practices, and the selling price of hardware and professional services is estimated using a cost plus model. The selling price for support of a functional subscription software license is calculated as a percentage of functional subscription software license value which is derived by analyzing internal pricing practice, customer expectations, and industry practice.
Variable Consideration	Variable consideration Revenue from sales is recorded at the net sales price, which is the transaction price, and includes estimates of variable consideration. The amount of variable consideration that is included in the transaction price is constrained, and is included in the net sales price only to the extent that it is probable that a significant reversal in the amount of the cumulative revenue will not occur when the uncertainty is resolved. If the Company’s services or products do not meet certain service level commitments, the Company’s customers are entitled to receive service credits representing a form of variable consideration. The Company has not historically experienced any significant incidents affecting the defined levels of reliability and performance as required by the Company’s subscription contracts. Accordingly, any estimated refunds related to these contracts in the condensed consolidated financial statements are not material during the periods presented.
Unbilled Accounts Receivables	Unbilled accounts receivables
Deferred Commissions	Deferred commissions The Company capitalizes sales commissions and associated payroll taxes paid to internal sales personnel, and referral fees paid to independent third-parties, that are incremental to the acquisition of customer contracts. These costs are recorded as deferred commissions on the condensed consolidated balance sheets. The Company determines whether costs should be deferred based on its sales compensation plans, if the commissions are incremental and would not have occurred absent the customer contract. Sales commissions for renewal of a subscription contract are not considered commensurate with the commissions paid for the acquisition of the initial subscription contract given the substantive difference in commission rate between new and renewal contracts. Commissions paid upon the initial acquisition of a contract are amortized over an estimated period of benefit of five years while commissions paid related to renewal contracts are amortized over a contractual renewal period. Amortization is recognized based on the expected future revenue streams under the customer contracts. Amortization of deferred sales commissions is included in sales and marketing expense in the accompanying condensed consolidated statements of operations. The Company determines the period of benefit for commissions paid for the acquisition of the initial subscription contract by taking into consideration its initial estimated customer life and the technological life of the Company’s software and related significant features. The Company classifies deferred commissions as current or long-term based on the timing of when the Company expects to recognize the expense. The Company periodically reviews these deferred commission costs to determine whether events or changes in circumstances have occurred that could impact the period of benefit of these deferred contract acquisition costs. There were no material impairment losses recorded during the periods presented.
Deferred Product Costs	Deferred product costs Deferred product costs are the incremental costs to fulfill a contract that are directly associated with each non-cancellable customer contract and primarily consist of royalty payments made to third parties, from whom the Company has obtained licenses to integrate certain software into its products. The deferred product costs are recognized based on the contractual term, and included in cost of revenue in the accompanying condensed consolidated statements of operations. The Company classifies deferred product costs as current or long-term based on the timing of when the Company expects to recognize the expense.
Deferred Revenue	Deferred revenue

The Company and Summary of Si_3

The Company and Summary of Significant Accounting Policies (Tables)	6 Months Ended
	Jun. 30, 2020
Accounting Policies [Abstract]
Summary of Estimated Useful Life of Intangible Assets	Intangible assets are amortized on a straight-line basis over their estimated lives, which approximate the pattern in which the economic benefits of the intangible assets are consumed, as follows (in years): Low High Patents 4 5 Developed technology 2 7 Customer relationships 2 8 Order backlog 1 3 Trade names and trademarks 1 5

Revenue, Deferred Revenue and_3

Revenue, Deferred Revenue and Deferred Contract Costs (Tables)	6 Months Ended
	Jun. 30, 2020
Revenue From Contract With Customer [Abstract]
Disaggregation of Revenue	The following table presents the Company’s revenue disaggregation: Three Months Ended June 30, Six Months Ended June 30, 2020 2019 2020 2019 Subscription service revenue $ 244,137 $ 207,074 $ 480,858 $ 401,476 Subscription software revenue 10,755 3,706 18,103 8,888 Hardware and services 3,546 3,659 9,251 7,012 Total revenue $ 258,438 $ 214,439 $ 508,212 $ 417,376

Acquisitions (Tables)

Acquisitions (Tables)	6 Months Ended
	Jun. 30, 2020
ObserveIT, Ltd
Business Acquisition [Line Items]
Summary of the Fair Values of Tangible Assets Acquired, Liabilities Assumed, Intangible Assets and Goodwill	The following table summarizes the fair values of tangible assets acquired, liabilities assumed, intangible assets and goodwill: Estimated Fair Value Estimated Useful Life (in years) Current assets $ 10,603 N/A Fixed assets 2,132 N/A Operating lease right-of-use asset 2,669 N/A Other assets 652 N/A Customer relationships 15,800 5 Order backlog 1,300 1 Core/developed technology 35,400 4 Trade name 400 2 In-process research and development * 20,600 N/A Operating lease liabilities (3,317 ) N/A Deferred revenue (6,700 ) N/A Other liabilities (5,591 ) N/A Goodwill 144,551 Indefinite $ 218,499 * Purchased in-process research and development was accounted for as an indefinite-lived intangible asset until the underlying project was completed.
Meta Networks, Ltd
Business Acquisition [Line Items]
Summary of the Fair Values of Tangible Assets Acquired, Liabilities Assumed, Intangible Assets and Goodwill	The following table summarizes the fair values of tangible assets acquired, liabilities assumed, intangible assets and goodwill: Fair Value Estimated Useful Life (in years) Current assets $ 356 N/A Fixed assets 68 N/A Core/developed technology 21,000 3 Deferred tax liability, net (1,854 ) N/A Other liabilities (671 ) N/A Goodwill 85,869 Indefinite $ 104,768

Goodwill and Intangible Assets

Goodwill and Intangible Assets (Tables)	6 Months Ended
	Jun. 30, 2020
Goodwill And Intangible Assets Disclosure [Abstract]
Schedule of Goodwill Activity and Balances	The goodwill activity and balances are presented below: Beginning balance as of December 31, 2019 $ 687,517 Acquisition during period 766 Purchase accounting adjustments 178 Closing balance as of June 30, 2020 $ 688,461
Components of Intangible Assets, Excluding Goodwill	Intangible assets, excluding goodwill, consisted of the following: June 30, 2020 December 31, 2019 Gross Carrying Amount Accumulated Amortization Net Carrying Amount Gross Carrying Amount Accumulated Amortization Net Carrying Amount Developed technology $ 233,469 $ (130,214 ) $ 103,255 $ 210,469 $ (110,284 ) $ 100,185 Customer relationships 87,200 (32,252 ) 54,948 87,200 (25,608 ) 61,592 Trade names and patents 3,730 (2,950 ) 780 3,730 (2,349 ) 1,381 Order backlog 8,100 (7,576 ) 524 8,100 (6,360 ) 1,740 In-process research and development — — — 21,125 — 21,125 $ 332,499 $ (172,992 ) $ 159,507 $ 330,624 $ (144,601 ) $ 186,023
Future Estimated Amortization Cost of Intangible Assets	Future estimated amortization of intangible assets expense as of June 30, 2020 are presented below: Year ending December 31, 2020, remainder $ 29,115 2021 54,322 2022 32,060 2023 22,495 2024 13,807 Thereafter 7,708 $ 159,507

Fair Value Measurements and I_2

Fair Value Measurements and Investments (Tables)	6 Months Ended
	Jun. 30, 2020
Fair Value Disclosures [Abstract]
Summary of Assets or Liabilities Carried at Fair Value	The following tables summarize, for each category of assets or liabilities carried at fair value, the respective fair value as of June 30, 2020 and December 31, 2019 and the classification by level of input within the fair value hierarchy: June 30, 2020 Total Level 1 Level 2 Level 3 Assets Cash equivalents: Money market funds $ 921,061 $ 921,061 $ — $ — Short-term investments: Commercial paper 9,988 — 9,988 — U.S. Treasury securities 2,000 — 2,000 — Total financial assets $ 933,049 $ 921,061 $ 11,988 $ — December 31, 2019 Total Level 1 Level 2 Level 3 Assets Cash equivalents: Money market funds $ 815,158 $ 815,158 $ — $ — Commercial paper 9,989 — 9,989 — Short-term investments: Corporate debt securities 13,454 — 13,454 — Commercial paper 27,932 — 27,932 — U.S. Treasury securities 1,999 — 1,999 — Total financial assets $ 868,532 $ 815,158 $ 53,374 $ —
Summary of Cost and Fair Value of Cash and Cash Equivalents and Available-for-Sale Investments	The cost and fair value of the Company’s cash and cash equivalents and available-for-sale investments as of June 30, 2020 and December 31, 2019 were as follows: June 30, 2020 Amortized Cost Unrealized Gains Unrealized Losses Fair Value Cash and cash equivalents: Cash $ 40,295 $ — $ — $ 40,295 Money market funds 921,061 — — 921,061 Total $ 961,356 $ — $ — $ 961,356 Short-term investments: Commercial paper $ 9,988 $ — $ — $ 9,988 U.S. Treasury securities 1,998 2 — 2,000 Total $ 11,986 $ 2 $ — $ 11,988 December 31, 2019 Amortized Cost Unrealized Gains Unrealized Losses Fair Value Cash and cash equivalents: Cash $ 22,408 $ — $ — $ 22,408 Money market funds 815,158 — — 815,158 Commercial paper 9,989 — — 9,989 Total $ 847,555 $ — $ — $ 847,555 Short-term investments: Corporate debt securities $ 13,453 $ 2 $ (1 ) $ 13,454 Commercial paper 27,932 — — 27,932 U.S. Treasury securities 1,998 1 — 1,999 Total $ 43,383 $ 3 $ (1 ) $ 43,385

Leases (Tables)

Leases (Tables)	6 Months Ended
	Jun. 30, 2020
Leases [Abstract]
Schedule of Component of Lease Expense and Supplemental Information Related to Leases	The components of lease expense were as follows: Three Months Ended June 30, Six Months Ended June 30, 2020 2019 2020 2019 Operating lease cost $ 7,203 $ 6,391 $ 14,311 $ 12,731 Short-term lease cost 617 709 1,291 1,347 Variable lease cost 1,127 853 2,165 1,708 Total lease cost $ 8,947 $ 7,953 $ 17,767 $ 15,786 Supplemental information related to leases was as follows: Three Months Ended June 30, Six Months Ended June 30, 2020 2019 2020 2019 Cash paid for amounts included in the measurement of operating lease liabilities $ 6,408 $ 5,938 $ 15,967 $ 12,832 Right-of-use assets obtained in exchange for operating lease obligations $ 18,660 $ 3,234 $ 28,195 $ 3,979 Weighted-average remaining lease term - operating leases 5 years 4 years Weighted-average discount rate - operating leases 4.32 % 4.83 %
Schedule of Maturities of Lease Liabilities	Maturities of lease liabilities as of June 30, 2020 were as follows: Operating leases Year ending December 31, 2020 $ 14,242 2021 19,640 2022 17,725 2023 8,234 2024 4,836 Thereafter 13,714 Total lease payments 78,391 Less imputed interest (8,346 ) Total $ 70,045

Convertible Senior Notes (Table

Convertible Senior Notes (Tables)	6 Months Ended
	Jun. 30, 2020
Senior Longterm Notes Current And Noncurrent [Abstract]
Summary of Carrying Values and Expenses Related to Convertible Senior Notes Due 2024	The following table represents the carrying value of the 2024 Notes as of June 30, 2020: June 30, 2020 December 31, 2019 Liability component: Principal $ 920,000 $ 920,000 Less: debt discount and issuance costs, net of amortization (153,597 ) (170,380 ) Net carrying amount $ 766,403 $ 749,620 Equity component (1) $ 163,023 $ 163,023 (1) Recorded on the consolidated balance sheets as additional paid-in capital, net of the $3,450 issuance costs in equity. For the three and six months ended June 30, 2020 and 2019, the Company incurred the following expenses related to the 2024 Notes: Three Months Ended June 30, Six Months Ended June 30, 2020 2019 2020 2019 Interest expense related to contractual interest coupon $ 575 $ — $ 1,150 $ — Amortization of debt discount and issuance costs 8,438 — 16,783 — Total $ 9,013 $ — $ 17,933 $ —

Equity Award Plans (Tables)

Equity Award Plans (Tables)	6 Months Ended
	Jun. 30, 2020
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract]
Stock Option Activity under Stock Incentive Plan	Stock option activity under the Plan is as follows: Shares subject to Options Outstanding Number of Shares Weighted Average Exercise Price Weighted Average Remaining Contractual Term (in years) Aggregate Intrinsic Value Balance at December 31, 2019 1,047 $ 30.55 4.38 $ 88,190 Options exercised (115 ) 30.65 Options forfeited and expired (2 ) 18.06 Balance at June 30, 2020 930 $ 30.56 3.92 $ 74,934
Summary of RSUs and PSUs under Stock Incentive Plan	A following table summarized the activity of RSUs and PSUs: RSUs and PSUs Outstanding Number of Shares Granted Fair Value Per Unit Awarded and unvested at December 31, 2019 4,895 $ 103.48 Awards granted 982 99.62 Awards vested (749 ) 101.84 Awards forfeited (146 ) 105.58 Awarded and unvested at June 30, 2020 4,982 $ 102.90

Net Loss per Share (Tables)

Net Loss per Share (Tables)	6 Months Ended
	Jun. 30, 2020
Earnings Per Share [Abstract]
Schedule of Potentially Dilutive Common Shares Outstanding that were Excluded from the Computation of Diluted Net Loss per Share	The following table presents the potentially dilutive common shares outstanding that were excluded from the computation of diluted net loss per share for the periods presented because including them would have been anti-dilutive: June 30, 2020 June 30, 2019 Stock options to purchase common stock 930 1,132 Restricted stock units 4,982 4,589 Employee stock purchase plan 127 244 Common stock subject to repurchase 143 54 Bonus and other liability awards 74 114 2024 Notes 5,975 — Total 12,231 6,133

Segment Reporting (Tables)

Segment Reporting (Tables)	6 Months Ended
	Jun. 30, 2020
Segment Reporting [Abstract]
Summary of Total Revenue and Long-lived Assets by Geographic Area	The following sets forth total revenue by geographic area. Revenue by geographic area is based upon the billing address of the customer: Three Months Ended June 30, Six Months Ended June 30, 2020 2019 2020 2019 Total revenue: United States $ 205,077 $ 172,682 $ 403,702 $ 336,101 Rest of world 53,361 41,757 104,510 81,275 Total revenue $ 258,438 $ 214,439 $ 508,212 $ 417,376 Long-lived assets by geographic area are presented below: June 30, 2020 December 31, 2019 Long-lived assets: United States $ 70,092 $ 58,447 Rest of world 14,771 15,065 Total long-lived assets $ 84,863 $ 73,512

The Company and Summary of Si_4

The Company and Summary of Significant Accounting Policies - Additional Information (Details)	6 Months Ended
	Jun. 30, 2020USD ($)segmentreporting_unit
Accounting Policies [Abstract]
Number of operating and reportable segments | segment	1
Number of reporting units | reporting_unit	1
Goodwill, impairment loss | $	$ 0

The Company and Summary of Si_5

The Company and Summary of Significant Accounting Policies - Summary of Estimated Lives of Intangible Assets (Details)	6 Months Ended
	Jun. 30, 2020
Patents | Minimum
Intangible assets:
Estimated life of intangible assets	4 years
Patents | Maximum
Intangible assets:
Estimated life of intangible assets	5 years
Developed Technology | Minimum
Intangible assets:
Estimated life of intangible assets	2 years
Developed Technology | Maximum
Intangible assets:
Estimated life of intangible assets	7 years
Customer Relationships | Minimum
Intangible assets:
Estimated life of intangible assets	2 years
Customer Relationships | Maximum
Intangible assets:
Estimated life of intangible assets	8 years
Order Backlog | Minimum
Intangible assets:
Estimated life of intangible assets	1 year
Order Backlog | Maximum
Intangible assets:
Estimated life of intangible assets	3 years
Trade Names and Trademarks | Minimum
Intangible assets:
Estimated life of intangible assets	1 year
Trade Names and Trademarks | Maximum
Intangible assets:
Estimated life of intangible assets	5 years

Revenue, Deferred Revenue and_4

Revenue, Deferred Revenue and Deferred Contract Costs - Additional Information (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2020	Jun. 30, 2019	Jun. 30, 2020	Jun. 30, 2019	Dec. 31, 2019
Revenue, Deferred Revenue and Deferred Contract Costs[Line Items]
Unbilled receivable	$ 2,389		$ 2,389		$ 3,261
Deferred revenue, revenue recognized	222,562	$ 187,447	394,857	$ 328,985
Revenue recognized related to the performance obligations satisfied in prior periods	1,456	1,639	1,442	1,811
Long-term Contract with Customer
Revenue, Deferred Revenue and Deferred Contract Costs[Line Items]
Contracted revenue not yet recognized	686,609		686,609
Sales Commission
Revenue, Deferred Revenue and Deferred Contract Costs[Line Items]
Contract cost capitalized	20,783	18,063	35,953	30,978
Contract cost amortized	15,370	12,400	30,003	23,671
Product Cost
Revenue, Deferred Revenue and Deferred Contract Costs[Line Items]
Contract cost capitalized	901	889	2,077	1,576
Contract cost amortized	$ 1,035	$ 694	$ 2,154	$ 1,481
Minimum
Revenue, Deferred Revenue and Deferred Contract Costs[Line Items]
Period terms for payment			30 days
Maximum
Revenue, Deferred Revenue and Deferred Contract Costs[Line Items]
Period terms for payment			45 days

Revenue, Deferred Revenue and_5

Revenue, Deferred Revenue and Deferred Contract Costs - Disaggregation of Revenue (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2020	Jun. 30, 2019	Jun. 30, 2020	Jun. 30, 2019
Disaggregation of Revenue [Line Items]
Total revenue	$ 258,438	$ 214,439	$ 508,212	$ 417,376
Subscription service revenue
Disaggregation of Revenue [Line Items]
Total revenue	244,137	207,074	480,858	401,476
Subscription software revenue
Disaggregation of Revenue [Line Items]
Total revenue	10,755	3,706	18,103	8,888
Hardware and Service
Disaggregation of Revenue [Line Items]
Total revenue	$ 3,546	$ 3,659	$ 9,251	$ 7,012

Revenue, Deferred Revenue and_6

Revenue, Deferred Revenue and Deferred Contract Costs - Additional Information (Details 1) - Long-term Contract with Customer	Jun. 30, 2020
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date: 2020-07-01
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Percentage of contracted and not recognized revenue to be recognized	58.00%
Revenue to be recognized period	12 months
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date: 2021-07-01
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Percentage of contracted and not recognized revenue to be recognized	39.00%
Revenue to be recognized period	2 years

Acquisitions - Additional Infor

Acquisitions - Additional Information (Details) - USD ($) shares in Thousands, $ in Thousands	May 05, 2020	Nov. 25, 2019	May 15, 2019	Jun. 30, 2020	Jun. 30, 2019	Dec. 31, 2019
Business Acquisition [Line Items]
Payments to acquire businesses, net of cash acquired				$ 2,720	$ 104,503
Goodwill				$ 688,461		$ 687,517
The Defence Works Limited
Business Acquisition [Line Items]
Payments to acquire businesses, net of cash acquired	$ 2,767
Goodwill	766
Intangible assets	$ 2,400
ObserveIT, Ltd
Business Acquisition [Line Items]
Payments to acquire businesses, net of cash acquired		$ 213,747
Goodwill		144,551
Cash acquired from acquisitions		4,752
Escrow		3,250
Fair value of unvested awards attributed to pre-acquisition service		446
Fair value of unvested awards attributed to post-acquisition service		5,427
Unrecognized stock options compensation expense		5,427
Deferred cash consideration		$ 532
Stock-based compensation expense vesting period		3 years
ObserveIT, Ltd | Restricted Stock
Business Acquisition [Line Items]
Deferred cash consideration allocated to post-combination expense		$ 485
Meta Networks, Ltd
Business Acquisition [Line Items]
Payments to acquire businesses, net of cash acquired			$ 104,664
Goodwill			85,869
Cash acquired from acquisitions			104
Escrow			12,500
Fair value of unvested awards attributed to pre-acquisition service			184
Fair value of unvested awards attributed to post-acquisition service			12,918
Unrecognized stock options compensation expense			12,918
Deferred cash consideration			$ 7,827
Stock-based compensation expense vesting period			3 years
Meta Networks, Ltd | Restricted Stock
Business Acquisition [Line Items]
Deferred cash consideration allocated to post-combination expense			$ 7,596
Stock-based compensation expense vesting period			3 years
Number of shares deferred			72
Fair value of share-based deferred cash compensation issued			$ 8,599
Deferred stock allocated to post-combination expense			$ 8,338

Acquisitions - Summary of the F

Acquisitions - Summary of the Fair Values of Tangible Assets Acquired, Liabilities Assumed, Intangible Assets and Goodwill (Details) - USD ($) $ in Thousands	Nov. 25, 2019	May 15, 2019	Jun. 30, 2020	Dec. 31, 2019
Fair value of assets acquired and liabilities assumed
Goodwill			$ 688,461	$ 687,517
ObserveIT, Ltd
Fair value of assets acquired and liabilities assumed
Current assets	$ 10,603
Fixed assets	2,132
Operating lease right-of-use asset	2,669
Other assets	652
Operating lease liabilities	(3,317)
Deferred revenue	(6,700)
Other liabilities	(5,591)
Goodwill	144,551
Recognized identifiable assets acquired and liabilities assumed, net	218,499
ObserveIT, Ltd | Customer Relationships
Fair value of assets acquired and liabilities assumed
Finite lived intangible assets	$ 15,800
Acquired finite-lived intangible assets, weighted average useful life (in years)	5 years
ObserveIT, Ltd | Order Backlog
Fair value of assets acquired and liabilities assumed
Finite lived intangible assets	$ 1,300
Acquired finite-lived intangible assets, weighted average useful life (in years)	1 year
ObserveIT, Ltd | Developed Technology
Fair value of assets acquired and liabilities assumed
Finite lived intangible assets	$ 35,400
Acquired finite-lived intangible assets, weighted average useful life (in years)	4 years
ObserveIT, Ltd | Trade Names
Fair value of assets acquired and liabilities assumed
Finite lived intangible assets	$ 400
Acquired finite-lived intangible assets, weighted average useful life (in years)	2 years
ObserveIT, Ltd | In-process Research and Development
Fair value of assets acquired and liabilities assumed
Finite lived intangible assets	$ 20,600
Meta Networks, Ltd
Fair value of assets acquired and liabilities assumed
Current assets		$ 356
Fixed assets		68
Deferred tax liability, net		(1,854)
Other liabilities		(671)
Goodwill		85,869
Recognized identifiable assets acquired and liabilities assumed, net		104,768
Meta Networks, Ltd | Developed Technology
Fair value of assets acquired and liabilities assumed
Finite lived intangible assets		$ 21,000
Acquired finite-lived intangible assets, weighted average useful life (in years)		3 years

Goodwill and Intangible Asset_2

Goodwill and Intangible Assets - Schedule of Goodwill Activity and Balances (Details) $ in Thousands	6 Months Ended
	Jun. 30, 2020USD ($)
Goodwill activity and balances
Beginning balance as of December 31, 2019	$ 687,517
Acquisition during period	766
Purchase accounting adjustments	178
Closing balance as of June 30, 2020	$ 688,461

Goodwill and Intangible Asset_3

Goodwill and Intangible Assets - Components of Intangible Assets, Excluding Goodwill (Details) - USD ($) $ in Thousands	Jun. 30, 2020	Dec. 31, 2019
Intangible assets excluding goodwill:
Gross Carrying Amount	$ 332,499	$ 330,624
Accumulated Amortization	(172,992)	(144,601)
Net Carrying Amount	159,507	186,023
Developed Technology
Intangible assets excluding goodwill:
Gross Carrying Amount	233,469	210,469
Accumulated Amortization	(130,214)	(110,284)
Net Carrying Amount	103,255	100,185
Customer Relationships
Intangible assets excluding goodwill:
Gross Carrying Amount	87,200	87,200
Accumulated Amortization	(32,252)	(25,608)
Net Carrying Amount	54,948	61,592
Trade Names and Patents
Intangible assets excluding goodwill:
Gross Carrying Amount	3,730	3,730
Accumulated Amortization	(2,950)	(2,349)
Net Carrying Amount	780	1,381
Order Backlog
Intangible assets excluding goodwill:
Gross Carrying Amount	8,100	8,100
Accumulated Amortization	(7,576)	(6,360)
Net Carrying Amount	$ 524	1,740
In-process Research and Development
Intangible assets excluding goodwill:
Gross Carrying Amount		21,125
Net Carrying Amount		$ 21,125

Goodwill and Intangible Asset_4

Goodwill and Intangible Assets - Additional Information (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2020	Jun. 30, 2019	Jun. 30, 2020	Jun. 30, 2019
Intangible assets excluding goodwill:
Intangible amortization expense	$ 13,939	$ 11,139	$ 28,390	$ 21,438

Goodwill and Intangible Asset_5

Goodwill and Intangible Assets - Future Estimated Amortization of Intangible Assets Expense (Details) - USD ($) $ in Thousands	Jun. 30, 2020	Dec. 31, 2019
Future estimated amortization costs of intangible assets:
2020, remainder	$ 29,115
2021	54,322
2022	32,060
2023	22,495
2024	13,807
Thereafter	7,708
Net Carrying Amount	$ 159,507	$ 186,023

Fair Value Measurements and I_3

Fair Value Measurements and Investments - Summary of Assets or Liabilities Carried at Fair Value (Details) - USD ($) $ in Thousands	Jun. 30, 2020	Dec. 31, 2019
Assets
Cash equivalents	$ 961,356	$ 847,555
Short-term investments	11,988	43,385
Total financial assets	933,049	868,532
Level 1
Assets
Total financial assets	921,061	815,158
Level 2
Assets
Total financial assets	11,988	53,374
Money market funds
Assets
Cash equivalents	921,061	815,158
Money market funds | Level 1
Assets
Cash equivalents	921,061	815,158
Commercial paper
Assets
Cash equivalents		9,989
Short-term investments	9,988	27,932
Commercial paper | Level 2
Assets
Cash equivalents		9,989
Short-term investments	9,988	27,932
Corporate debt securities
Assets
Short-term investments		13,454
Corporate debt securities | Level 2
Assets
Short-term investments		13,454
U.S. Treasury securities
Assets
Short-term investments	2,000	1,999
U.S. Treasury securities | Level 2
Assets
Short-term investments	$ 2,000	$ 1,999

Fair Value Measurements and I_4

Fair Value Measurements and Investments - Additional Information (Details) - USD ($)	3 Months Ended		6 Months Ended		12 Months Ended
	Jun. 30, 2020	Jun. 30, 2019	Jun. 30, 2020	Jun. 30, 2019	Dec. 31, 2019
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Maximum investment maturity term			1 year		1 year
Impairments	$ 0	$ 0	$ 0	$ 0
2024 Notes | Level 2
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Fair value of convertible senior notes	$ 901,269,000		$ 901,269,000		$ 951,050,000

Fair Value Measurements and I_5

Fair Value Measurements and Investments - Summary of Cost and Fair Value of Cash and Cash Equivalents and Available-for-Sale Investments (Details) - USD ($) $ in Thousands	Jun. 30, 2020	Dec. 31, 2019
Schedule Of Cash And Cash Equivalents And Investments [Line Items]
Cash and cash equivalents, amortized cost	$ 961,356	$ 847,555
Cash and cash equivalents, unrealized gains	0	0
Cash and cash equivalents, unrealized losses	0	0
Cash and cash equivalents, fair value	961,356	847,555
Short-term investments, amortized cost	11,986	43,383
Short-term investments, unrealized gains	2	3
Short-term investments, unrealized losses	0	(1)
Short-term investments, fair value	11,988	43,385
Cash
Schedule Of Cash And Cash Equivalents And Investments [Line Items]
Cash and cash equivalents, amortized cost	40,295	22,408
Cash and cash equivalents, unrealized gains	0	0
Cash and cash equivalents, unrealized losses	0	0
Cash and cash equivalents, fair value	40,295	22,408
Money market funds
Schedule Of Cash And Cash Equivalents And Investments [Line Items]
Cash and cash equivalents, amortized cost	921,061	815,158
Cash and cash equivalents, unrealized gains	0	0
Cash and cash equivalents, unrealized losses	0	0
Cash and cash equivalents, fair value	921,061	815,158
Commercial paper
Schedule Of Cash And Cash Equivalents And Investments [Line Items]
Cash and cash equivalents, amortized cost		9,989
Cash and cash equivalents, unrealized gains		0
Cash and cash equivalents, unrealized losses		0
Cash and cash equivalents, fair value		9,989
Short-term investments, amortized cost	9,988	27,932
Short-term investments, unrealized gains	0	0
Short-term investments, unrealized losses	0	0
Short-term investments, fair value	9,988	27,932
Corporate debt securities
Schedule Of Cash And Cash Equivalents And Investments [Line Items]
Short-term investments, amortized cost		13,453
Short-term investments, unrealized gains		2
Short-term investments, unrealized losses		(1)
Short-term investments, fair value		13,454
U.S. Treasury securities
Schedule Of Cash And Cash Equivalents And Investments [Line Items]
Short-term investments, amortized cost	1,998	1,998
Short-term investments, unrealized gains	2	1
Short-term investments, unrealized losses	0	0
Short-term investments, fair value	$ 2,000	$ 1,999

Leases - Additional Information

Leases - Additional Information (Details)	6 Months Ended
	Jun. 30, 2020USD ($)	Dec. 31, 2019USD ($)	Oct. 31, 2018USD ($)ft²
Lessee Lease Description [Line Items]
Operating lease right-of-use assets	$ 67,128,000	$ 51,852,000
Lease liabilities	$ 70,045,000
California
Lessee Lease Description [Line Items]
Operating lease agreement term			127 months
Operating lease agreement renewal term extended			5 years
Lease agreement corporate office space | ft²			242,400
Lease agreement description	The property is being constructed by the landlord, with the completion date expected to occur in November 2020, which is when the lease is expected to commence. As such no ROU assets or related lease liabilities were recorded in the condensed financial statements for the three and six months ended June 30, 2020.
Operating lease right-of-use assets	$ 0
Lease liabilities	$ 0
California | Over Lease Term
Lessee Lease Description [Line Items]
Operating lease rental payments over the lease term			$ 161,300,000
Real Estate Leases
Lessee Lease Description [Line Items]
Operating lease existence of option to extend	true
Operating lease option to extend, description	The Company’s real estate leases have remaining lease terms for up to ten years, some of which include options to extend the lease period up to ten years.
Real Estate Leases | Maximum
Lessee Lease Description [Line Items]
Operating lease agreement term	10 years
Operating lease agreement renewal term extended	10 years
Datacenter Leases
Lessee Lease Description [Line Items]
Operating lease agreement renewal term extended	1 year
Datacenter Leases | Maximum
Lessee Lease Description [Line Items]
Operating lease agreement term	3 years

Leases - Schedule of Component

Leases - Schedule of Component of Lease Expense and Supplemental Information Related to Leases (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2020	Jun. 30, 2019	Jun. 30, 2020	Jun. 30, 2019
Leases [Abstract]
Operating lease cost	$ 7,203	$ 6,391	$ 14,311	$ 12,731
Short-term lease cost	617	709	1,291	1,347
Variable lease cost	1,127	853	2,165	1,708
Total lease cost	8,947	7,953	17,767	15,786
Cash paid for amounts included in the measurement of operating lease liabilities	6,408	5,938	15,967	12,832
Right-of-use assets obtained in exchange for operating lease obligations	$ 18,660	$ 3,234	$ 28,195	$ 3,979
Weighted-average remaining lease term - operating leases	5 years	4 years	5 years	4 years
Weighted-average discount rate - operating leases	4.32%	4.83%	4.32%	4.83%

Leases - Schedule of Maturities

Leases - Schedule of Maturities of Lease Liabilities (Details) $ in Thousands	Jun. 30, 2020USD ($)
Leases [Abstract]
2020	$ 14,242
2021	19,640
2022	17,725
2023	8,234
2024	4,836
Thereafter	13,714
Total lease payments	78,391
Less imputed interest	(8,346)
Total	$ 70,045

Convertible Senior Notes - Addi

Convertible Senior Notes - Additional Information (Details) - 0.25% Convertible Senior Notes due 2024	Aug. 23, 2019USD ($)d$ / shares	Jun. 30, 2020
Debt Instrument [Line Items]
Face amount	$ 920,000,000
Debt interest rate	0.25%
Debt instrument aggregate principal amount	$ 800,000,000
Option to purchase additional principal amount	120,000,000
Agent's discount and issuance costs	19,065,000
Proceeds from issuance of convertible senior notes, net of discount	900,935,000
Proceeds from issuance of convertible senior notes, used to payoff capped call transactions	$ 84,871,000
Debt instrument, maturity date, description		The 2024 Notes mature on August 15, 2024, unless repurchased, redeemed or converted in accordance with their terms prior to such date.
Debt instrument, convertible, conversion ratio	6.4941
Debt instrument, convertible, conversion price | $ / shares	$ 153.99
Percentage of principal amount that are redeemable	100.00%
Debt instrument, convertible, threshold trading days | d	20
Debt instrument, convertible, threshold consecutive trading days | d	30
Debt instrument, convertible, threshold percentage of stock price trigger	130.00%
Number of consecutive business days following consecutive trading day period	5 days
Number of consecutive trading days	5 days
Periodic payment, principal	$ 1,000
Trading price as percentage of closing price of common stock	98.00%
Carrying amount of the debt component net	$ 737,912,000
Carrying amount of the equity component net	$ 163,023,000
Effective interest rate	4.76%
Issuance cost recorded at equity	$ 3,450,000
Cap price of capped calls | $ / shares	$ 223.98
Premium paid for purchase of capped calls	$ 83,720,000
Issuance costs related to capped calls	$ 1,151,000

Convertible Senior Notes - Summ

Convertible Senior Notes - Summary of Carrying Values and Interest Expenses and Loss on Conversion Related to Notes (Details) - 0.25% Convertible Senior Notes due 2024 - USD ($) $ in Thousands	Jun. 30, 2020	Dec. 31, 2019	Aug. 23, 2019
Liability component:
Less: debt discount and issuance costs, net of amortization			$ (19,065)
Net carrying amount			737,912
Equity component			$ 163,023
Senior Notes
Liability component:
Principal	$ 920,000	$ 920,000
Less: debt discount and issuance costs, net of amortization	(153,597)	(170,380)
Net carrying amount	766,403	749,620
Equity component	$ 163,023	$ 163,023

Convertible Senior Notes - Su_2

Convertible Senior Notes - Summary of Carrying Values and Interest Expenses and Loss on Conversion Related to Notes (Parenthetical) (Details) - USD ($) $ in Thousands	Jun. 30, 2020	Dec. 31, 2019
0.25% Convertible Senior Notes due 2024
Debt Instrument [Line Items]
Issuance cost recorded at equity	$ 3,450	$ 3,450

Convertible Senior Notes - Su_3

Convertible Senior Notes - Summary of Carrying Values and Expenses Related to Convertible Senior Notes Due 2024 (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2020	Jun. 30, 2019	Jun. 30, 2020	Jun. 30, 2019
Interest Expense, Debt
Amortization of debt discount and issuance costs			$ 16,783	$ 0
Senior Notes | 0.25% Convertible Senior Notes due 2024
Interest Expense, Debt
Interest expense related to contractual interest coupon	$ 575	$ 0	1,150	0
Amortization of debt discount and issuance costs	8,438	0	16,783	0
Total	$ 9,013	$ 0	$ 17,933	$ 0

Equity Award Plans - Stock-Base

Equity Award Plans - Stock-Based Compensation Plans - Additional Information (Details) shares in Thousands	6 Months Ended	12 Months Ended
	Jun. 30, 2020planshares	Dec. 31, 2016
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Equity incentive plans held by the company (number of plans)	8
2002 Plan and 2012 Equity Incentive Plan
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Shares available for future grant under the stock plans (in shares) | shares	6,601
Stock options to purchase common stock | Maximum
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Term until award expiration	10 years
Award vesting period	4 years
Stock options to purchase common stock | Minimum
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Award vesting period	3 years
Restricted Stock | 2002 Plan and 2012 Equity Incentive Plan | Maximum
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Award vesting period	5 years
Restricted Stock | 2002 Plan and 2012 Equity Incentive Plan | Minimum
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Award vesting period	4 years
Various Acquisitions
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Equity incentive plans held by the company (number of plans)	6
FireLayers
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Equity incentive plans held by the company (number of plans)	2
FireLayers | Restricted Stock
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Award vesting period		3 years

Equity Award Plans - Stock Opti

Equity Award Plans - Stock Options - Additional Information (Details) - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2020	Jun. 30, 2019
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Options granted	0	0
Stock options to purchase common stock
Stock option activity under the Plan, in weighted average exercise price:
Aggregate intrinsic value, exercised	$ 10,067	$ 16,078
Proceeds from stock options exercised	3,522	2,876
Fair value of options, vested in period	1,285	$ 815
Unrecognized stock options compensation expense	$ 6,212
Average remaining vesting term	1 year 9 months 14 days

Equity Award Plans - Stock Op_2

Equity Award Plans - Stock Option Activity under Stock Incentive Plan (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	6 Months Ended	12 Months Ended
	Jun. 30, 2020	Dec. 31, 2019
Stock option activity under the Plan
Outstanding, beginning of period (in shares)	1,047
Options exercised (in shares)	(115)
Options forfeited and expired (in shares)	(2)
Outstanding, ending of period (in shares)	930	1,047
Stock option activity under the Plan, in weighted average exercise price:
Balance at beginning of period (USD per share)	$ 30.55
Options exercised (USD per share)	30.65
Options forfeited and expired (USD per share)	18.06
Balance at ending of period (USD per share)	$ 30.56	$ 30.55
Weighted average remaining contractual term	3 years 11 months 1 day	4 years 4 months 17 days
Aggregate intrinsic value, outstanding	$ 74,934	$ 88,190

Equity Award Plans - Summary of

Equity Award Plans - Summary of RSUs and PSUs under Stock Incentive Plan (Details) - Restricted Stock Units and Performance Stock Units shares in Thousands	6 Months Ended
	Jun. 30, 2020$ / sharesshares
RSU's outstanding, number of shares:
Awarded at beginning of period (in shares) | shares	4,895
Award granted (in shares) | shares	982
Awards vested (in shares) | shares	(749)
Awards forfeited (in shares) | shares	(146)
Awarded at end of period (in shares) | shares	4,982
RSUs outstanding, granted fair value per unit
Awarded at beginning of period (USD per share) | $ / shares	$ 103.48
Awards granted (USD per share) | $ / shares	99.62
Awards vested (USD per share) | $ / shares	101.84
Awards forfeited (USD per share) | $ / shares	105.58
Awarded at end of period (USD per share) | $ / shares	$ 102.90

Equity Award Plans - Restricted

Equity Award Plans - Restricted Stock and Performance Stock Units - Additional Information (Details) - USD ($) shares in Thousands, $ in Thousands	6 Months Ended
	Jun. 30, 2020	Jun. 30, 2019
RSU
RSUs outstanding, granted fair value per unit
Unamortized stock-based compensation expense	$ 358,368
Average remaining vesting term	3 years 4 months 20 days
Performance Shares
RSUs outstanding, granted fair value per unit
Unamortized stock-based compensation expense	$ 2,908
RSU's outstanding, number of shares:
Award granted (in shares)	155	161
Restricted Performance-based Shares
RSU's outstanding, number of shares:
Award granted (in shares)	11

Equity Award Plans - Stock Bonu

Equity Award Plans - Stock Bonus and Other Liability Awards - Additional Information (Details) - Stock bonus and other liability awards - USD ($) shares in Thousands, $ in Thousands	6 Months Ended
	Jun. 30, 2020	Jun. 30, 2019	Dec. 31, 2019
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Accrued liability for the stock bonus and other liability awards	$ 8,200		$ 13,427
Common stock issued (shares)	125	107
Stock-based compensation expense	$ 8,200	$ 6,484

Equity Award Plans - Employee S

Equity Award Plans - Employee Stock Purchase Plan - Additional Information (Details) - ESPP 2012 Plan - USD ($) shares in Thousands, $ in Thousands	Mar. 30, 2012	Jun. 30, 2020
Employee stock purchase plan
Number of shares authorized ESPP (in shares)	745
Annual increase period	8 years
Maximum number of shares to be available for grant ESPP (in shares)	1,490
Shares available for future grant under the stock plans (in shares)		2,580
Annual percentage increase of maximum number of shares reserved for issuance ESPP	1.00%
Unamortized stock-based compensation expense		$ 4,057
Average remaining vesting term		4 months 17 days

Equity Award Plans - Restrict_2

Equity Award Plans - Restricted Stock and Deferred Shares - Additional Information (Details) - USD ($) shares in Thousands, $ in Thousands	May 15, 2019	Feb. 28, 2018	Nov. 30, 2017	Jun. 30, 2020	Jun. 30, 2019	Dec. 31, 2016
FireLayers | Restricted Stock
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Shares granted in period						111
Fair value of shares granted						$ 8,669
Award vesting period						3 years
Stock-based compensation expense					$ 1,432
Weblife | Restricted Stock
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock-based compensation expense				$ 1,204	1,197
Number of shares deferred			107
Fair value of share-based deferred compensation issued			$ 9,652
Unamortized stock-based compensation expense				$ 3,413
Weblife | Restricted Stock | Maximum
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Deferred shares service term				4 years
Weblife | Restricted Stock | Minimum
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Deferred shares service term				3 years
Wombat Security Technologies, Inc. | Restricted Stock
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Award vesting period		2 years
Stock-based compensation expense				$ 382	1,598
Number of shares deferred		51
Fair value of share-based deferred compensation issued		$ 5,458
Meta Networks, Ltd
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Award vesting period	3 years
Meta Networks, Ltd | Restricted Stock
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Award vesting period	3 years
Stock-based compensation expense				1,383	$ 350
Number of shares deferred	72
Fair value of share-based deferred compensation issued	$ 8,599
Unamortized stock-based compensation expense	$ 8,338			$ 5,206

Net Loss per Share - Schedule o

Net Loss per Share - Schedule of Potentially Dilutive Common Shares Outstanding that were Excluded from the Computation of Diluted Net Loss per Share (Details) - shares shares in Thousands	6 Months Ended
	Jun. 30, 2020	Jun. 30, 2019
Antidilutive securities excluded from computation of earnings per share
Total antidilutive securities excluded from computation of earnings per share (in shares)	12,231	6,133
Stock options to purchase common stock
Antidilutive securities excluded from computation of earnings per share
Total antidilutive securities excluded from computation of earnings per share (in shares)	930	1,132
Restricted stock units
Antidilutive securities excluded from computation of earnings per share
Total antidilutive securities excluded from computation of earnings per share (in shares)	4,982	4,589
Employee stock purchase plan
Antidilutive securities excluded from computation of earnings per share
Total antidilutive securities excluded from computation of earnings per share (in shares)	127	244
Common stock subject to repurchase
Antidilutive securities excluded from computation of earnings per share
Total antidilutive securities excluded from computation of earnings per share (in shares)	143	54
Bonus and other liability awards
Antidilutive securities excluded from computation of earnings per share
Total antidilutive securities excluded from computation of earnings per share (in shares)	74	114
2024 Notes
Antidilutive securities excluded from computation of earnings per share
Total antidilutive securities excluded from computation of earnings per share (in shares)	5,975

Segment Reporting - Additional

Segment Reporting - Additional Information (Details)	6 Months Ended
	Jun. 30, 2020segment
Segment Reporting [Abstract]
Number of operating and reportable segments	1
Number of reportable segments	1

Segment Reporting - Summary of

Segment Reporting - Summary of Total Revenue by Geographic Area (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2020	Jun. 30, 2019	Jun. 30, 2020	Jun. 30, 2019
Segment reporting:
Total revenue	$ 258,438	$ 214,439	$ 508,212	$ 417,376
United States
Segment reporting:
Total revenue	205,077	172,682	403,702	336,101
Rest of world
Segment reporting:
Total revenue	$ 53,361	$ 41,757	$ 104,510	$ 81,275

Segment Reporting - Summary o_2

Segment Reporting - Summary of Long-lived Assets by Geographic Area (Details) - USD ($) $ in Thousands	Jun. 30, 2020	Dec. 31, 2019
Segment reporting:
Total long-lived assets	$ 84,863	$ 73,512
United States
Segment reporting:
Total long-lived assets	70,092	58,447
Rest of world
Segment reporting:
Total long-lived assets	$ 14,771	$ 15,065

Income Taxes - Additional Infor

Income Taxes - Additional Information (Details) - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2020	Jun. 30, 2019	Jun. 30, 2020	Jun. 30, 2019
Valuation allowance
Income tax expense (benefit)	$ 1,660,000	$ 280,000	$ 29,829,000	$ 900,000
Pre-tax loss	20,935,000	$ 28,633,000	67,003,000	$ 56,291,000
Tax expense related to transfer of certain intellectual property rights from Subsidiary			$ 27,107,000
Effective income tax rate			(45.00%)	(2.00%)
Unrecognized tax benefits	50,581,000		$ 50,581,000
Accrued interest and penalties	1,238,000		1,238,000
Uncertain tax benefits that would affect effective tax rate if recognized	$ 32,206,000		32,206,000
Increase (decrease) in gross uncertain tax benefits			17,411,000
Increase for tax positions taken in the current period			17,432,000
Decrease for tax positions taken in prior periods			21,000
Valuation Allowance
Valuation allowance
Income tax expense (benefit)			0
Operating Loss
Valuation allowance
Income tax expense (benefit)			$ 0

Defined Contribution Plan - Add

Defined Contribution Plan - Additional Information (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2020	Jun. 30, 2019	Jun. 30, 2020	Jun. 30, 2019
Defined Contribution Pension And Other Postretirement Plans Disclosure [Abstract]
Defined contribution plan, employer discretionary matching contributions	$ 579	$ 589	$ 2,228	$ 1,420
Defined Contribution Plan, Tax Status [Extensible List]	us-gaap:QualifiedPlanMember	us-gaap:QualifiedPlanMember	us-gaap:QualifiedPlanMember	us-gaap:QualifiedPlanMember
Defined Contribution Plan, Sponsor Location [Extensible List]	country:US	country:US	country:US	country:US