Vonage 10-Q 7 May 20 2020 Q1 Quarterly report Financial data

Cover Page

Cover Page - shares	3 Months Ended
	Mar. 31, 2020	May 01, 2020
Cover [Abstract]
Document Type	10-Q
Document Quarterly Report	true
Document Period End Date	Mar. 31, 2020
Document Transition Report	false
Entity File Number	001-32887
Entity Registrant Name	VONAGE HOLDINGS CORP
Entity Incorporation, State or Country Code	DE
Entity Tax Identification Number	11-3547680
Entity Address, Address Line One	23 Main Street
Entity Address, City or Town	Holmdel
Entity Address, State or Province	NJ
Entity Address, Postal Zip Code	07733
City Area Code	732
Local Phone Number	528-2600
Title of 12(b) Security	Common Stock, par value $0.001
Trading Symbol	VG
Security Exchange Name	NASDAQ
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Large Accelerated Filer
Entity Small Business	false
Entity Emerging Growth Company	false
Entity Shell Company	false
Entity Common Stock, Shares Outstanding		245,368,168
Amendment Flag	false
Entity Central Index Key	0001272830
Current Fiscal Year End Date	--12-31
Document Fiscal Year Focus	2020
Document Fiscal Period Focus	Q1

Condensed Consolidated Balance

Condensed Consolidated Balance Sheets - USD ($) $ in Thousands	Mar. 31, 2020	Dec. 31, 2019
Current assets:
Cash and cash equivalents	$ 43,073	$ 23,620
Accounts receivable, net of allowance of $6,736 and $5,494, respectively	96,238	101,813
Inventory, net of allowance of $73 and $76, respectively	1,346	1,475
Deferred customer acquisition costs, current portion	14,971	13,834
Prepaid expenses	26,263	22,338
Other current assets	11,175	9,988
Total current assets	193,066	173,068
Property and equipment, net of accumulated depreciation of $111,169 and $109,646, respectively	43,144	48,371
Operating lease right-of-use assets	33,735	50,847
Goodwill	591,022	602,970
Software, net of accumulated amortization of $103,067 and $102,133, respectively	50,678	40,300
Deferred customer acquisition costs	58,891	55,148
Restricted cash	2,039
Restricted cash	2,039	2,015
Intangible assets, net of accumulated amortization of $233,079 and $221,182, respectively	227,979	249,905
Deferred tax assets	106,262	108,347
Other assets	32,813	33,729
Total assets	1,339,629	1,364,700
Current liabilities:
Accounts payable	32,789	42,366
Accrued expenses	118,907	137,589
Deferred revenue, current portion	61,022	59,464
Operating lease liabilities, current portion	11,917	12,477
Total current liabilities	224,635	251,896
Indebtedness under revolving credit facility	265,500	220,500
Convertible senior notes, net	280,111	276,658
Operating lease liabilities	28,018	45,722
Other liabilities	2,652	2,862
Total liabilities	800,916	797,638
Commitments and Contingencies (Note 9)
Stockholders’ Equity:
Common stock, par value $0.001 per share; 596,950 shares authorized at March 31, 2020, and December 31, 2019	320	316
Additional paid-in capital	1,506,664	1,494,469
Accumulated deficit	(634,764)	(631,009)
Treasury stock, at cost	(318,791)	(306,043)
Accumulated other comprehensive (loss) income	(14,716)	9,329
Total stockholders’ equity	538,713	567,062
Total liabilities and stockholders’ equity	$ 1,339,629	$ 1,364,700

Condensed Consolidated Balanc_2

Condensed Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands	Mar. 31, 2020	Dec. 31, 2019
Statement of Financial Position [Abstract]
Accounts receivable, allowance	$ 6,736	$ 5,494
Inventory, allowance	73	76
PP&E, accumulated amortization	111,169	109,646
Software, accumulated amortization	103,067	102,133
Intangible assets, accumulated amortization	$ 233,079	$ 221,182
Common stock, par value (usd per share)	$ 0.001	$ 0.001
Common stock, shares authorized (in shares)	596,950,000	596,950,000

Condensed Consolidated Statemen

Condensed Consolidated Statements of Operations - USD ($) shares in Thousands, $ in Thousands	3 Months Ended
	Mar. 31, 2020	Mar. 31, 2019
Income Statement [Abstract]
Service, access and product revenues	$ 283,077	$ 260,110
USF revenues	14,380	19,431
Total revenues	297,457	279,541
Operating Expenses:
Service, access and product cost of revenues	113,038	93,980
USF cost of revenues	14,380	19,431
Sales and marketing	85,621	95,523
Engineering and development	19,203	16,526
General and administrative	40,882	35,459
Depreciation and amortization	20,485	21,214
Total operating expenses	293,609	282,133
Income (loss) from operations	3,848	(2,592)
Other Income (Expense):
Interest expense	(8,082)	(7,576)
Other income (expense), net	229	(416)
Total other expense, net	(7,853)	(7,992)
Loss before income tax benefit	(4,005)	(10,584)
Income tax benefit	250	10,050
Net loss	$ (3,755)	$ (534)
Loss per common share:
Basic and Diluted	$ (0.02)	$ 0
Weighted-average common shares outstanding:
Basic and Diluted (in shares)	243,627	240,527

Condensed Consolidated Statem_2

Condensed Consolidated Statements of Comprehensive (Loss) / Income - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2020	Mar. 31, 2019
Other comprehensive income (loss):
Net loss	$ (3,755)	$ (534)
Foreign currency translation adjustment, net of tax (benefit) expense of ($470) and 433, respectively	(23,627)	5,208
Unrealized loss on derivatives, net of tax (benefit) expense of ($50) and $28, respectively	(418)	(687)
Total other comprehensive (loss) income	(24,045)	4,521
Comprehensive (loss) income	$ (27,800)	$ 3,987

Condensed Consolidated Statem_3

Condensed Consolidated Statements of Comprehensive (Loss) / Income Condensed Consolidated Statements of Comprehensive (Loss) / Income (Parenthetical) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2020	Mar. 31, 2019
Statement of Comprehensive Income [Abstract]
Foreign currency translation adjustment, net of tax expense/(benefit)	$ (470)	$ 433
Unrealized gain on derivatives, net of tax expense/(benefit)	$ (50)	$ 28

Condensed Consolidated Statem_4

Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2020	Mar. 31, 2019
Cash flows from operating activities:
Net loss	$ (3,755)	$ (534)
Adjustments to reconcile net loss to net cash provided by operating activities:
Depreciation and amortization	6,331	6,656
Amortization of intangibles	14,154	14,558
Deferred income taxes	1,468	(10,283)
Amortization of deferred customer acquisition costs	3,661	2,530
Allowances for doubtful accounts and obsolete inventory	1,448	80
Amortization of financing costs and debt discount	3,656	270
Loss on disposal of property and equipment	741	514
Share-based expense	11,116	8,015
Changes in derivatives	(133)	(133)
Changes in operating assets and liabilities:
Accounts receivable	2,361	1,083
Inventory	127	179
Prepaid expenses and other current assets	(5,387)	170
Deferred customer acquisition costs	(9,042)	(7,459)
Accounts payable and accrued expenses	(25,459)	(10,793)
Deferred revenue	2,934	(312)
Increase (Decrease) in Other Operating Assets	(669)	(3,022)
Increase (Decrease) in Other Operating Assets and Liabilities, Net	(1,049)	1,231
Net cash provided by operating activities	2,503	2,750
Cash flows used in investing activities:
Capital expenditures	(2,887)	(5,277)
Payments to Acquire Intangible Assets	75	0
Acquisition and development of software assets	(10,273)	(5,497)
Net cash used in investing activities	(13,235)	(10,774)
Cash flows provided by/(used in) financing activities:
Payments for short and long-term debt	0	(2,500)
Proceeds from issuance of long-term debt	45,000	41,500
Payments of debt issuance costs	0	(128)
Employee taxes paid on withholding shares	(12,656)	(18,566)
Proceeds from exercise of stock options	155	480
Net cash provided by financing activities	32,499	20,786
Effect of exchange rate changes on cash	(2,290)	260
Net increase in cash, cash equivalents, and restricted cash	19,477	13,022
Cash, cash equivalents, and restricted cash, beginning of period	25,635	7,104
Cash, cash equivalents, and restricted cash, end of period	45,112	20,126
Cash paid during the periods for:
Interest	2,866	6,929
Income taxes	1,249	148
Non-cash investing activities:
Acquisition of long-term assets included in accounts payable and accrued expenses	$ 2,119	$ 334

Condensed Consolidated Statem_5

Condensed Consolidated Statement of Stockholders' Equity - USD ($) $ in Thousands	Total	Common Stock	Additional Paid-in Capital	Accumulated Deficit	Treasury Stock	Accumulated Other Comprehensive Income
Beginning Balance at Dec. 31, 2018	$ 535,768	$ 310	$ 1,415,682	$ (611,985)	$ (275,009)	$ 6,770
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Stock option exercises	480	4	476
Share-based expense	8,015		8,015
Employee taxes paid on withholding shares	(18,566)				(18,566)
Foreign currency translation adjustment	5,208					5,208
Unrealized (loss) gain on derivatives	(687)					(687)
Net loss	(534)			(534)
Ending Balance at Mar. 31, 2019	530,142	314	1,424,173	(612,061)	(293,575)	11,291
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Cumulative effect adjustment upon the adoption of new accounting standards	458
Cumulative effect adjustment upon the adoption of new accounting standards | Accounting Standards Update 2016-02				458
Beginning Balance at Dec. 31, 2019	567,062	316	1,494,469	(631,009)	(306,043)	9,329
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Stock option exercises	155	4	151
Share-based expense	12,044		12,044
Employee taxes paid on withholding shares	(12,748)				(12,748)
Foreign currency translation adjustment	(23,627)					(23,627)
Unrealized (loss) gain on derivatives	(418)					(418)
Net loss	(3,755)			(3,755)
Ending Balance at Mar. 31, 2020	$ 538,713	$ 320	$ 1,506,664	$ (634,764)	$ (318,791)	$ (14,716)

Nature of Business

Nature of Business	3 Months Ended
	Mar. 31, 2020
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Nature of Business	Nature of Business Nature of Operations Vonage Holdings Corp. (“Vonage”, “Company”, “we”, “our”, “us”) is incorporated as a Delaware corporation. At Vonage, our strategy is to continually redefine business communications. We are making communications more flexible, intelligent and personal to help enterprises the world over stay ahead. We provide unified communications, contact centers and programmable communications APIs, built on what we believe to be the world's most flexible cloud communications platform. True to our roots as a technology disruptor, our flexible approach helps us better serve the growing collaboration, communications, and customer experience needs of companies, across all communications channels. For our Business customers, we provide innovative, cloud-based Applications, comprised of integrated voice, text, video, data, collaboration, and mobile applications over our flexible, scalable SIP based VoIP network. We also offer API solutions designed to enhance the way businesses communicate with their customers by embedding communications into apps, websites and business processes. In combination, our products and services permit our business customers to communicate with their customers and employees through any cloud-connected device, in any place, at any time without the often costly investment required with on-site equipment. We have a robust set of product families tailored to serve the full range of the business value chain, from the SMB market, through mid-market and enterprise markets. We provide customers with multiple deployment options, designed to provide the reliability and quality of service they demand. We provide customers the ability to integrate our cloud communications platform with many cloud-based productivity and CRM solutions, including Google’s G Suite, Zendesk, Salesforce’s Sales Cloud, Oracle, and Clio. With our ability to integrate these cloud-based, workplace tools, Vonage integrates the entire business communications value chain - from employee communications that maximize productivity to the direct engagement with customers that APIs provides. When combined with our MPLS network, as well as voice services over customers' broadband networks via our SmartWan solution, we create a differentiated offering. We also provide a robust suite of feature-rich residential communication solutions that allow consumers to connect their home phones and mobile phones on one number and we offer attractive international long distance rates that help create a loyal base of satisfied customers. Customers in the United States represented 69% and 73% of our consolidated revenues for the three months ended March 31, 2020 and 2019 , respectively, with the balance in Canada, the United Kingdom, China, Singapore, Netherlands, and other countries around the world. Unaudited Interim Financial Information The accompanying unaudited interim condensed consolidated financial statements and information have been prepared in accordance with accounting principles generally accepted in the United States and in accordance with the SEC's regulations for interim financial information and with the instructions for Form 10-Q. Accordingly, they do not include all of the information and disclosures required by accounting principles generally accepted in the United States for complete financial statements. In the opinion of management, these financial statements contain all normal and recurring adjustments considered necessary to present fairly the Company's financial position, results of operations, comprehensive income, cash flows, and stockholders’ equity for the periods presented. The results for the three months ended March 31, 2020 are not necessarily indicative of the results to be expected for the full year. These unaudited interim condensed consolidated financial statements should be read in conjunction with the audited consolidated financial statements and related notes included in our Annual Report on Form 10-K for the year ended December 31, 2019 filed with the Securities and Exchange Commission on February 21, 2020 . Use of Estimates Our condensed consolidated financial statements and notes thereof are prepared in conformity with accounting principles generally accepted in the United States, which require management to make estimates and assumptions that affect the amounts of assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from these estimates, including uncertainty in the current economic environment due to the recent outbreak of the novel coronavirus COVID-19. We base our estimates on historical experience, available market information, appropriate valuation methodologies, and on various other assumptions that we believe to be reasonable, the results of which form the basis for making judgments about the carrying values of assets and liabilities. Estimates are used for such items as depreciable lives for long-lived assets including intangible assets, tax provisions, uncollectible accounts, convertible notes, and assets and liabilities assumed in business combinations, among others. In addition, estimates are used to test long-lived assets and goodwill for impairment. COVID-19 has created and may continue to create uncertainty in customer payments, reduced usage, and issuance of customer credits to distressed customers served by certain product lines. As of the date of our condensed consolidated financial statements, we are not aware of any specific event or circumstance that would require us to update our estimates or judgments. However, these estimates may change as new events occur and additional information is obtained, which may result in changes being recognized in our condensed consolidated financial statements in future periods. In particular and in light of the COVID-19 pandemic, the assumptions and estimates associated with collectability assessment of revenue and credit losses of accounts receivable may have a material impact our consolidated financial statements in future periods, depending on the duration or degree of the impact of the COVID-19 pandemic on the global economy. Reclassifications Reclassifications have been made to our condensed consolidated financial statements for the prior year periods to conform to classifications used in the current year periods. The reclassifications did not affect results of operations or net assets.

- Summary of Significant Accoun

- Summary of Significant Accounting Policies	3 Months Ended
	Mar. 31, 2020
Accounting Policies [Abstract]
Summary of Significant Accounting Policies	Summary of Significant Accounting Policies This footnote should be read in conjunction with the complete description of our significant accounting policies under Note 2, Summary of Significant Accounting Policies to the consolidated financial statements included in our Annual Report on Form 10-K for the year ended December 31, 2019 . Service, Access, and Product Cost of Revenues Service, access, and product cost of revenues excludes depreciation and amortization expense of $9,609 and $9,418 for the three months ended March 31, 2020 and 2019 , respectively. In addition, costs of goods sold included in service, access, and product cost of revenues during the three months ended March 31, 2020 and 2019 were $3,676 and $5,628 , respectively. Sales and Marketing Expenses We incurred advertising costs, which are included in sales and marketing, of $9,460 and $17,750 for the three months ended March 31, 2020 and 2019, respectively. Fair Value of Financial Instruments The Company records certain of its financial assets at fair value on a recurring basis. Certain of the Company's other financial instruments, which include cash and cash equivalents, restricted cash, accounts receivable and accounts payable, approximate fair value and are classified as Level 1 because of their short-term maturities. We believe the fair value of our 2018 Credit Facility at March 31, 2020 and December 31, 2019 was approximately the same as its carrying amount as market conditions, including available interest rates, credit spread relative to our credit rating, and illiquidity, remain relatively unchanged from the issuance date of our debt obligations for a similar debt instrument and are classified as Level 3 within the fair value hierarchy. We account for financial assets using a framework that establishes a hierarchy that ranks the quality and reliability of the inputs, or assumptions, we use in the determination of fair value, and we classify financial assets and liabilities carried at fair value in one of the following three categories: • Level 1 - quoted prices (unadjusted) in active markets that are accessible at the measurement date for identical assets and liabilities. The fair value hierarchy gives the highest priority to Level 1 inputs. • Level 2 - observable prices that are based on inputs not quoted on active markets but corroborated by market data; and • Level 3 - unobservable inputs when there is little or no market data available, thereby requiring an entity to develop its own assumptions. The fair value hierarchy gives the lowest priority to Level 3 inputs. As of March 31, 2020 and December 31, 2019, the fair value of the 1.75% convertible senior notes due 2024 (the “Convertible Senior Notes”) was approximately $277,800 and $309,641 , respectively. The fair value was determined based on the quoted price for the Convertible Senior Notes in an inactive market on the last trading day of the reporting period and is classified as Level 2 in the fair value hierarchy. Supplemental Balance Sheet Information The following table provides a reconciliation of cash and cash equivalents and restricted cash reported within the consolidated balance sheets to amounts included in the consolidated statements of cash flows: As of March 31, As of December 31 2020 2019 2019 2018 Cash and cash equivalents $ 43,073 $ 18,254 $ 23,620 $ 5,057 Restricted cash 2,039 1,872 2,015 2,047 Total cash, cash equivalents and restricted cash $ 45,112 $ 20,126 $ 25,635 $ 7,104 Intangible assets, net March 31, 2020 December 31, 2019 Customer relationships $ 144,956 $ 157,184 Developed technology 80,903 89,199 Patents and patent licenses 1,083 1,326 Trade names 1,037 2,196 Finite-lived intangible assets, net $ 227,979 $ 249,905 Accrued expenses March 31, 2020 December 31, 2019 Compensation and related taxes and temporary labor $ 24,258 $ 40,101 Marketing 17,507 15,294 Taxes and fees 14,846 22,922 Telecommunications 40,148 40,498 Interest 2,426 873 Customer credits 4,067 2,772 Professional fees 4,124 4,482 Inventory 708 871 Other accruals 10,823 9,776 Accrued expenses $ 118,907 $ 137,589 Goodwill The Company's goodwill is derived primarily from the acquisitions of Vocalocity, Telesphere, iCore, Simple Signal, Nexmo, TokBox, and NewVoiceMedia which are included in the Company's Business segment. The following table provides a summary of the changes in the carrying amounts of goodwill: Balance at December 31, 2019 $ 602,970 Foreign currency translation adjustment (11,948 ) Balance at March 31, 2020 $ 591,022 Recent Accounting Pronouncements The following standard was adopted by the Company during the three months ended March 31, 2020 : In March 2020, the FASB issued ASU 2020-04, " Reference Rate Reform (Topic 848) ". This ASU provides an easier and more cost efficient way for companies to modify contracts that reference the London Interbank Offered Rate ("LIBOR") and other rates that are being phased out. The ASU (1) allows eligible contracts that are modified to be accounted for as a continuation of those contracts - a simplification that eliminates the need for companies to reassess or remeasure the contracts for accounting purposes; (2) permits companies to preserve their hedge accounting during the transition period; and (3) enables companies to make a one-time election to transfer or sell held-to-maturity debt securities that are affected by rate reform. It is effective as of March 12, 2020 through December 31, 2022. The Company adopted the ASU when effective. The adoption of this ASU did not have a material impact on our condensed consolidated financial statements and related disclosures. In December 2019, the FASB issued ASU 2019-12, Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes by removing certain exceptions currently permissible under ASC Topic 740. This ASU also requires entities to: (1) recognize a franchise tax that is partially based on income as an income-based tax and account for any incremental amounts incurred as non-income based tax; (2) evaluate when a step-up in the tax basis of goodwill should be considered as part of the business combination and when it should be considered a separate transaction;(3) specifying that an entity is not required to allocate the consolidated amount of current and deferred tax expense to a legal entity that is not subject to tax in its separate financial statements; and (4) reflect the effect of an enacted change in tax laws or rates in the annual effective tax rate computation and other minor improvements. This ASU is effective for fiscal years beginning after December 15, 2020, and interim periods within those fiscal years. Early adoption of the amendments is permitted, including adoption in any interim period for public business entities for periods for which financial statements have not yet been issued. The Company adopted the new standard on January 1, 2020. The adoption of the ASU did not have a material impact on our condensed consolidated financial statements and related disclosures. In June 2016, the FASB issued ASU 2016-13, " Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments which requires the use of a new current expected credit loss ("CECL") model in estimating allowances for doubtful accounts with respect to accounts receivable. Receivables from revenue transactions, or trade receivables, are recognized when the corresponding revenue is recognized under ASC Topic 606, Revenue from Contracts with Customers . The CECL model requires that the Company estimate its lifetime expected credit loss with respect to these receivables and record allowances that when deducted from the balance of the receivables, represent the estimated net amounts expected to be collected. Given the generally short term nature of trade receivables, we do not apply a discounted cash flow methodology. However, the Company considers whether historical loss rates are consistent with expectations of forward-looking estimates for our trade receivables. This ASU is effective for fiscal years beginning after December 15, 2019, and interim periods within those fiscal years. The Company adopted of the new standard on January 1, 2020. The adoption of this ASU did not have a material impact on our condensed consolidated financial statements and related disclosures. The Company will continue to actively monitor the impact of the COVID-19 pandemic on its estimate of expected credit losses.

- Revenue Recognition

- Revenue Recognition	3 Months Ended
	Mar. 31, 2020
Revenue from Contract with Customer [Abstract]
Revenue Recognition	Revenue Recognition The Company recognizes revenue in accordance with ASC Topic 606, Revenue from Contracts with Customers which is further described in Note 2, Summary of Significant Accounting Policies and Note 3, Revenue Recognition to the consolidated financial statements in our Annual Report on Form 10-K for the year ended December 31, 2019. Disaggregation of Revenue The following tables detail our revenue from customers disaggregated by primary geographical market and source of revenue. The tables also include a reconciliation of the disaggregated revenue for our Business and Consumer segments. Three Months Ended Three Months Ended March 31, 2020 March 31, 2019 Business Consumer Total Business Consumer Total Primary geographical markets United States $ 126,547 $ 80,007 $ 206,554 $ 112,438 $ 91,866 $ 204,304 Canada 1,933 4,566 6,499 1,407 5,168 $ 6,575 United Kingdom 16,291 2,631 18,922 23,881 2,910 $ 26,791 Other Countries 65,482 — 65,482 41,871 — $ 41,871 $ 210,253 $ 87,204 $ 297,457 $ 179,597 $ 99,944 $ 279,541 Major Sources of Revenue Service revenues $ 195,649 $ 77,243 $ 272,892 $ 159,345 $ 89,000 $ 248,345 Access and product revenues 10,122 63 10,185 11,697 68 11,765 USF revenues 4,482 9,898 14,380 8,555 10,876 19,431 $ 210,253 $ 87,204 $ 297,457 $ 179,597 $ 99,944 $ 279,541 In addition, the Company recognizes service revenues from its customers through subscription services provided or through usage or pay-per-use type arrangements. During the three months ended March 31, 2020 , the Company recognized $156,455 related to subscription services, $93,047 related to usage, and $47,955 related to other revenues such as USF, other regulatory fees, and credits. During the three months ended March 31, 2019 , the Company recognized $162,546 related to subscription services, $67,847 related to usage, and $49,148 related to other revenues such as USF, other regulatory fees, and credits. Contract Assets and Liabilities The following table provides information about receivables and contract liabilities from contracts with customers: March 31, 2020 December 31, 2019 Receivables (1) $ 96,238 $ 101,813 Contract liabilities (2) 61,022 59,464 (1) Amounts included in accounts receivables on our condensed consolidated balance sheet. (2) Amounts included in deferred revenues and other liabilities on our condensed consolidated balance sheet. Our deferred revenue represents the advance consideration received from customers for subscription services and is predominantly recognized over the following performance period which is generally a month as transfer of control occurs. During the three months ended March 31, 2020 , the Company recognized revenue of $108,875 , related to its contract liabilities. During the three months ended March 31, 2019 , the Company recognized revenue of $100,434 , related to its contract liabilities. We expect to recognize $61,022 into revenue over the next twelve months related to our deferred revenue as of March 31, 2020 . Remaining Performance Obligation Transaction price allocated to the remaining performance obligation represents contracted revenue that has not yet been recognized. The typical subscription term may range from 1 month to 3 years. Contracted revenue as of March 31, 2020 that has not yet been recognized was approximately $0.4 billion . This excludes contracts with an original expected length of less than one year. The Company expects to recognize the majority of its remaining performance obligation over the next 18 months . Contract Acquisition Costs We have various commission programs for internal sales personnel and channel partners that are incremental to the acquisition of customer contracts. These costs are recorded as deferred contract acquisition costs on the consolidated balance sheets which eligible employees and third parties may earn a commission on sales of services and products to customers. We expect that these commission fees are recoverable and, therefore, we have capitalized $73,862 and $68,982 as contract costs, net of accumulated amortization, as of March 31, 2020 and December 31, 2019 , respectively, included within deferred customer acquisitions costs, current portion and deferred customer acquisition costs on our condensed consolidated balance sheet. Capitalized commission fees are amortized to sales and marketing expense over estimated customer life, which is 7 years for Business customers. The amounts amortized to sales and marketing expense were $3,661 and $2,530 for the three months ended March 31, 2020 and March 31, 2019 , respectively. There were no impairment losses recognized in relation to the costs capitalized during the three months ended March 31, 2020 and 2019 . In addition, the Company expenses sales commissions for commission plans related to customer arrangements deemed less than a year and for residuals and renewals.

Earnings Per Share

Earnings Per Share	3 Months Ended
	Mar. 31, 2020
Earnings Per Share [Abstract]
Earnings Per Share	Earnings Per Share The following table sets forth the computation for basic and diluted loss per share for the three months ended March 31, 2020 and 2019 : Three Months Ended March 31, 2020 2019 Numerator Net loss $ (3,755 ) $ (534 ) Denominator Weighted average common shares outstanding for basic and diluted net loss per share 243,627 240,527 Basic and diluted loss per share Basic and diluted loss per share $ (0.02 ) $ — For the three months ended March 31, 2020 and 2019 , the following were excluded from the calculation of diluted loss per common share because of their anti-dilutive effects: Three Months Ended March 31, 2020 2019 Restricted stock units 13,894 10,997 Stock options 4,878 5,643 18,772 16,640 As the Company expects to settle the principal amount of its outstanding convertible senior notes in cash and any excess in cash or shares of the Company’s common stock, the Company uses the treasury stock method for calculating any potential dilutive effect of the conversion spread on diluted net income per share, if applicable. The conversion spread will have a dilutive impact on diluted net income per share of common stock when the average market price of the Company’s common stock for a given period exceeds the conversion price of $16.72 per share. The Company's Convertible Senior Notes are further described in Note 6, Long-Term Debt .

Incomes Taxes

Incomes Taxes	3 Months Ended
	Mar. 31, 2020
Income Tax Disclosure [Abstract]
Income Taxes	Income Taxes The income tax consisted of the following: Three Months Ended March 31, 2020 2019 Loss before income taxes $ (4,005 ) $ (10,584 ) Income tax benefit 250 10,050 Effective tax rate 6.2 % 95.0 % The Company calculates its provision for income taxes during its interim reporting periods by applying an estimate of the annual effective tax rate for the full year "ordinary" income or loss for the respective reporting period. In addition, adjustments are recorded for discrete period items and changes to our state effective tax rate which can cause the rate to fluctuate from quarter to quarter. For the three months ended March 31, 2020 , our effective tax rate was different than the statutory rate primarily due to a discrete period tax benefit of $2,115 , which was recognized related to excess tax benefits on equity compensation. In addition, the Company’s actual effective tax rate for the current year has reduced the expected annual benefit as a result of permanent adjustments related to limitations on executive compensation deductibility and inclusion of income in the U.S. due to foreign disregarded entities. For the three months ended March 31, 2019, our effective tax rate was different than the statutory rate primarily due to a discrete period tax benefit of $4,749 , which was recognized related to excess tax benefits on equity compensation for the three months ended March 31, 2019. On March 27, 2020, the Coronavirus Aid, Relief, and Economic Security Act, which is commonly known as the CARES Act, was enacted into law. As permitted by the CARES Act, the Company intends to accelerate the refund request for previously paid Alternative Minimum Taxes and defer the employer portion of the social security payroll tax. We continue to assess the Company's potential benefits of the CARES Act and ongoing government guidance related to COVID-19. Uncertain Tax Positions The Company had uncertain tax benefits of $714 and $914 as of March 31, 2020 and December 31, 2019 , respectively. The Company recognizes interest and penalties related to uncertain tax benefits in income tax expense. The Company did no t incur any interest expense or penalties during the three months ended March 31, 2020 and March 31, 2019 , respectively. The following table reconciles the total amounts of uncertain tax benefits: March 31, 2020 December 31, 2019 Balance as of January 1 $ 914 $ 1,107 Increase due to current year positions — 155 Decrease due to prior year positions — (243 ) Decrease due to settlements and payments (173 ) (86 ) Decrease due to lapse of applicable statute of limitations — (71 ) (Decrease) increase due to foreign currency fluctuation (27 ) 52 Uncertain tax benefits as of the end of the period $ 714 $ 914 Net Operating Loss Carry Forwards ("NOLs") As of March 31, 2020 , the Company has U.S. Federal and state NOL carryforwards of $509,313 and $237,667 , respectively, which expire at various times through 2037. In addition, we have NOLs for United Kingdom tax purposes of $165,104

Long-Term Debt

Long-Term Debt	3 Months Ended
	Mar. 31, 2020
Debt Disclosure [Abstract]
Long-Term Debt	Long-Term Debt This footnote should be read in conjunction with the complete description of our financing arrangements under Note 8, Long-Term Debt , to the consolidated financial statements included in our Annual Report on Form 10-K for the year ended December 31, 2019 . The following table summarizes the Company's long-term debt as of March 31, 2020 and December 31, 2019 : March 31, 2020 December 31, 2019 Revolving credit facility - due 2023 265,500 220,500 Convertible senior notes - due 2024 345,000 345,000 Long-term debt including current maturities 610,500 565,500 Less unamortized discount 58,180 61,234 Less debt issuance costs 6,709 7,108 Total long-term debt $ 545,611 $ 497,158 Convertible Senior Notes In June 2019, the Company issued $300.0 million aggregate principal amount of 1.75% convertible senior notes due 2024 in a private placement and an additional $45.0 million aggregate principal amount of such notes pursuant to the exercise in full of the over-allotment option of the initial purchasers (collectively, "Convertible Senior Notes"). The Convertible Senior Notes are the Company's senior unsecured obligations. The Convertible Senior Notes will mature on June 1, 2024, unless earlier redeemed, repurchased or converted. We may not redeem the notes prior to June 5, 2022. The total net proceeds from the offering, after deducting initial purchase discounts and expenses payable by the Company, were $334.8 million . Each $1,000 principal amount of the Convertible Senior Notes is initially convertible into 59.8256 shares of the Company's common stock, which is equivalent to an initial conversion price of approximately $16.72 per share. The conversion rate is subject to adjustment upon the occurrence of certain specified events but will not be adjusted for any accrued and unpaid interest. In addition, upon the occurrence of a make-whole fundamental change or a redemption period, each as defined in the indenture setting forth the terms of the Convertible Senior Notes, the Company will, in certain circumstances, increase the conversion rate by a number of additional shares for a holder that elects to convert its Convertible Senior Notes in connection with such make-whole fundamental change or during the relevant redemption period. Prior to December 1, 2023, the notes will be convertible only upon satisfaction of certain conditions and during certain periods, and thereafter, at any time until the close of business on the second scheduled trading day immediately preceding the maturity date. We will satisfy any conversion election by paying or delivering, as the case may be, cash, shares of common stock or a combination of cash and shares of common stock. During the three months ended March 31, 2020 , the conditions allowing holders of the Convertible Senior Notes to convert were not met. The net carrying amount of the liability component of the Convertible Senior Notes was as follows: March 31, 2020 Principal $ 345,000 Unamortized discount (58,180 ) Unamortized issuance cost (6,709 ) Net carrying amount $ 280,111 The following table sets forth the interest expense recognized related to the Convertible Senior Notes: Three Months Ended March 31, 2020 Contractual interest expense 1,509 Amortization of debt discount 3,054 Amortization of debt issuance costs 399 Total interest expense related to the Convertible Senior Notes 4,962 In connection with the pricing of the Convertible Senior Notes and subsequently in connection with the exercise of the initial purchaser's option to purchase additional notes, the Company entered into privately negotiated capped call transactions with certain counterparties (the "Capped Calls"). The Capped Calls each have a strike price of $16.72 per share, subject to certain adjustments, which corresponds to the initial conversion price of the Convertible Senior Notes. The Capped Calls have initial cap prices of $23.46 per share, subject to certain adjustments. The Capped Calls are expected generally to reduce potential dilution to the Company's common stock upon any conversion of notes and/or offset any cash payments the Company is required to make in excess of the aggregate principal amount of converted notes, as the case may be, with such reduction and/or offset subject to a cap. The initial cap price of the Capped Call transactions was $23.46 . The net cost of $28,325 incurred to purchase the Capped Calls and related income tax benefit of $6,772 was recorded as a reduction to additional paid-in capital on the Company's consolidated balance sheet and are not accounted for as derivatives. 2018 Term Note and Revolving Credit Facility On July 31, 2018, the Company entered into the 2018 Credit Facility consisting of a $100 million senior secured term loan and a $500 million revolving credit facility. The co-borrowers under the 2018 Credit Facility are the Company and Vonage America Inc., the Company’s wholly owned subsidiary. Obligations under the 2018 Credit Facility are guaranteed, fully and unconditionally, by the Company’s other United States subsidiaries and are secured by substantially all of the assets of each borrower and each guarantor. During the three months ended March 31, 2020 , we borrowed $45 million under the revolving credit facility. In addition, the effective interest rate was 3.71% as of March 31, 2020 . During the three months ended March 31, 2019 , we made mandatory repayments of $2.5 million under the 2018 term note and borrowed $41.5 million under the revolving credit facility. As of March 31, 2020 , we were in compliance with all covenants, including financial covenants, for the 2018 Credit Facility. On April 6, 2020, the Company drew $30 million of the amounts available under the revolving portion of the 2018 Credit Facility to increase its cash position in light of volatility in capital markets. Interest Rate Swaps On July 14, 2017, we executed on three interest rate swap agreements in order to hedge the variability of expected future cash interest payments. The swaps have an aggregate notional amount of $150 million and were effective from July 31, 2017 through June 3, 2020. Under the swaps our interest rate is fixed at 4.7% . The interest rate swaps are accounted for as cash flow hedges in accordance with ASC 815, Derivatives and Hedging . As of March 31, 2020 and December 31, 2019 , the fair market value of the swaps was a liability of $218 and an asset of $18 , respectively, which is included in other assets on our condensed consolidated balance sheet. The following table summarizes the effects of ASC 815 on the Company's accumulated OCI balance attributable to cash flow derivatives: Three Months Ended March 31, 2020 2019 Accumulated OCI beginning balance $ (1,001 ) $ 975 Reclassified from accumulated OCI to income: Due to reclassification of previously deferred gain (133 ) (133 ) Change in fair value of cash flow hedge accounting contracts, net of tax (285 ) (554 ) Accumulated OCI ending balance, net of tax benefit of $46 and $365, respectively $ (1,419 ) $ 288 Gains expected to be reclassified from accumulated OCI during the next 12 months $ 531 $ 531

Leases - Leases

Leases - Leases	3 Months Ended
	Mar. 31, 2020
Leases [Abstract]
Leases	Leases The Company entered into various non-cancelable operating lease agreements for certain of our existing office and telecommunications co-location space as well as operating leases for certain equipment. The operating leases expire at various times through 2026. We are committed to pay a portion of the buildings’ operating expenses as required under the arrangements which we will separate as a non-lease component when readily determinable. The Company did not have any finance leases as of March 31, 2020 and December 31, 2019 . During the three months ended March 31, 2020 and March 31, 2019 , the Company incurred operating lease expense of $2,965 and $3,941 , respectively, related to its operating leases and sub-lease income of $319 and $266 , respectively. Additionally, the remaining weighted average lease term for our operating leases was 4.10 years and the weighted average discount rate utilized to measure the Company's operating leases was 5.04% as of March 31, 2020 . Supplemental cash flow related to the Company's operating leases is as follows: Three Months Ended March 31, 2020 Cash paid for amounts included in the measurement of lease liabilities $ 4,139 Right-of-use assets obtained in exchange for lease obligations $ 1,261 Maturities of operating lease liabilities as of March 31, 2020 and December 31, 2019 are as follows: March 31, 2020 December 31, 2019 2020 (excluding the three months ended March 31, 2020 for the period ended March 31, 2020) $ 10,841 15,017 2021 11,879 11,663 2022 8,180 7,599 2023 6,552 7,197 2024 2,252 6,592 Thereafter 4,540 21,178 Total lease payments 44,244 69,246 Less imputed interest (4,309 ) (11,047 ) Total $ 39,935 $ 58,199 During the first quarter of 2020, the Company amended one of its office leases to remove a renewal period of 5 years beyond the initial lease term. In the Company's adoption of ASC 842, the Company had included the available renewal term within the transition asset and liability as the renewal was highly probable at the time of adoption. As a result, the Company's operating lease liability was reduced by $15,825

Common Stock

Common Stock	3 Months Ended
	Mar. 31, 2020
Equity [Abstract]
Common Stock	Common Stock As of March 31, 2020 and December 31, 2019 , the Company had 596,950 shares of common stock authorized and had 15,521 shares available for grants under our share-based compensation programs as of March 31, 2020 . For a detailed description of our share-based compensation programs refer to Note 10, Employee Stock Benefit Plans in the consolidated financial statements included in our Annual Report on Form 10-K for the year ended December 31, 2019 . The following table reflects the changes in the Company's common stock issued and outstanding: For the Three Months Ended (in thousands) Issued Treasury Outstanding Balance at December 31, 2018 309,736 (69,993 ) 239,743 Shares issued under the 2015 Equity Incentive Plan 4,497 — 4,497 Employee taxes paid on withholding shares — (1,864 ) (1,864 ) Balance at March 31, 2019 314,233 (71,857 ) 242,376 Balance at December 31, 2019 315,808 (72,959 ) 242,849 Shares issued under the 2015 Equity Incentive Plan 4,072 — 4,072 Employee taxes paid on withholding shares — (1,675 ) (1,675 ) Balance at March 31, 2020 319,880 (74,634 ) 245,246

Commitments and Contingencies

Commitments and Contingencies	3 Months Ended
	Mar. 31, 2020
Commitments and Contingencies Disclosure [Abstract]
Commitments and Contingencies	Commitments and Contingencies Litigation From time to time we are subject to legal proceedings, claims, investigations, and proceedings in the ordinary course of business, including claims of alleged infringement of third-party patents and other intellectual property rights, commercial, employment, and other matters. From time to time, we receive letters or other communications from third parties inviting us to obtain patent licenses that might be relevant to our business or alleging that our services infringe upon third party patents or other intellectual property. In accordance with generally accepted accounting principles, we make a provision for a liability when it is both probable that a liability has been incurred and the amount of the loss or range of loss can be reasonably estimated. These provisions, if any, are reviewed at least quarterly and adjusted to reflect the impacts of negotiations, settlements, rulings, advice of legal counsel, and other information and events pertaining to a particular case. Litigation is inherently unpredictable. We believe that we have valid defenses with respect to the legal matters pending against us and are vigorously defending these matters. Given the uncertainty surrounding litigation and our inability to assess the likelihood of a favorable or unfavorable outcome in such matters and our inability to reasonably estimate the amount of loss or range of loss, it is possible that the resolution of one or more of these matters could have a material adverse effect on our condensed consolidated financial position, cash flows or results of operations. Regulation Telephony services are subject to a broad spectrum of state, federal and foreign regulations. Because of the uncertainty over whether Voice over Internet Protocol (“VoIP”) should be treated as a telecommunications or information service, we have been involved in a substantial amount of state and federal regulatory activity. Implementation and interpretation of the existing laws and regulations is ongoing and is subject to litigation by various federal and state agencies and courts. Due to the uncertainty over the regulatory classification of VoIP service, there can be no assurance that we will not be subject to new regulations or existing regulations under new interpretations, and that such change would not introduce material additional costs to our business. The Company continues to monitor federal regulations relating to net neutrality, rural call completion issues, number slamming, 911 access, access to telecommunication equipment and services by persons with disabilities, caller ID services, number portability, unwanted calls to reassigned numbers, and robocalling. As we continue to expand globally, these types of regulations are likely to be similarly enacted and enforced by the local regulatory authorities. State and Municipal Taxes In accordance with generally accepted accounting principles, we make a provision for a liability for taxes when it is both probable that a liability has been incurred and the amount of the liability or range of liability can be reasonably estimated. These provisions are reviewed at least quarterly and adjusted to reflect the impacts of negotiations, settlements, rulings, advice of legal counsel, and other information and events pertaining to a particular case. From time to time, we have received inquiries from a number of states and local taxing agencies with respect to the remittance of sales, use, telecommunications, and excise taxes. Several jurisdictions are currently conducting tax audits of the Company's records. While the Company collects or has accrued for taxes that it believes are required to be remitted, it has reviewed its positions in those various jurisdictions as well as other regulatory fees and has established appropriate reserves. As such, we have established reserves of $3,703 and $3,175 as of March 31, 2020 and December 31, 2019

Industry Segment and Geographic

Industry Segment and Geographic Information	3 Months Ended
	Mar. 31, 2020
Segment Reporting [Abstract]
Industry Segment and Geographic Information	Industry Segment and Geographic Information ASC 280, Segment Reporting establishes reporting standards for an enterprise's business segments and related disclosures about its products, services, geographic areas and major customers. Under ASC 280, the method for determining what information to report is based upon the way management organizes the operating segments within the Company for making operating decisions and assessing financial performance. Our chief operating decision-maker reviews revenue and gross margin information for each of our reportable segments, but does not review operating expenses on a segment by segment basis. In addition, with the exception of goodwill and intangible assets, we do not identify or allocate our assets by the reportable segments. Business For our Business customers, our Applications Group provides innovative, cloud-based UCaaS and CCaaS solutions, comprised of integrated voice, text, video, data, collaboration, and mobile applications over our flexible, scalable SIP based VoIP network. The API Platform Group also offers CPaaS solutions designed to enhance the way businesses communicate with their customers embedding communications into apps, websites and business processes. Together we have a robust set of product families tailored to serve the full range of the business value chain, from the SMB market through mid-market and enterprise markets. We provide customers with multiple deployment options, designed to provide the reliability and quality of service they demand. We provide customers the ability to integrate our cloud communications platform with many cloud-based productivity and CRM solutions, including Google’s G Suite, Zendesk, Salesforce’s Sales Cloud, Oracle, Clio, and other CRM solutions. In combination, our products and services permit our business customers to communicate with their customers and employees through any cloud-connected device, in any place, at any time without the often costly investment required with on-site equipment. Consumer For our Consumer customers, we enable users to access and utilize our UCaaS services and features, via a single “identity,” either a number or user name, regardless of how they are connected to the Internet, including over 3G/4G, LTE, Cable, or DSL broadband networks. This technology enables us to offer our Consumer customers attractively priced voice and messaging services and other features around the world on a variety of devices. For our segments we categorize revenues as follows: Services revenues . Services revenues consists primarily of revenue attributable to our communication services for Consumer and Software Defined Wide Area Network, or SD-WAN, UCaaS and CPaaS services for Business, Access and product revenues. Product revenues include equipment sold to customers, shipping and handling, professional services, and broadband access, as well as revenues associated with providing access services to Business customers. USF revenues. USF revenues represent fees passed on to customers to offset required contributions to the USF. For our segments we categorize cost of revenues as follows: Services cost of revenues. Services cost of revenues consists of costs associated with network operations and technical support personnel, communication origination, and termination services provided by third party carriers and excludes depreciation and amortization. Access and product cost of revenues . Product cost of revenues includes equipment sold to customers, shipping and handling, professional services, cost of certain products including equipment or services that we give customers as promotions, and broadband access, as well as costs associated with providing access services to Business customers. USF cost of revenues. USF cost of revenues represents contributions to the Federal USF and related fees. Information about our segment results for the three and three months ended March 31, 2020 were as follows: Three Months Ended March 31, 2020 Business Consumer Total Revenues Service revenues $ 195,649 $ 77,243 $ 272,892 Access and product revenues (1) 10,122 63 10,185 Service, access and product revenues excluding USF 205,771 77,306 283,077 USF revenues 4,482 9,898 14,380 Total revenues 210,253 87,204 297,457 Cost of revenues Service cost of revenues (2) 92,357 8,512 100,869 Access and product cost of revenues (1) 11,596 573 12,169 Service, access and product cost of revenues excluding USF 103,953 9,085 113,038 USF cost of revenues 4,482 9,898 14,380 Total cost of revenues 108,435 18,983 127,418 Segment gross margin Service margin 103,292 68,731 172,023 Access and product margin (1,474 ) (510 ) (1,984 ) Gross margin excluding USF (Service, access and product margin) 101,818 68,221 170,039 USF margin — — — Segment gross margin $ 101,818 $ 68,221 $ 170,039 Segment gross margin % Service margin % 52.8 % 89.0 % 63.0 % Gross margin excluding USF (Service, access and product margin %) 49.5 % 88.2 % 60.1 % Segment gross margin % 48.4 % 78.2 % 57.2 % (1) Includes customer premise equipment, access, and shipping and handling. (2) Excludes depreciation and amortization of $8,519 and $1,090 for the three months ended March 31, 2020 , respectively. Information about our segment results for the three and three months ended March 31, 2019 were as follows: Three Months Ended March 31, 2019 Business Consumer Total Revenues Service revenues $ 159,345 $ 89,000 $ 248,345 Access and product revenues (1) 11,697 68 11,765 Service, access and product revenues excluding USF 171,042 89,068 260,110 USF revenues 8,555 10,876 19,431 Total revenues 179,597 99,944 279,541 Cost of revenues Service cost of revenues (2) 69,854 9,258 79,112 Access and product cost of revenues (1) 13,871 997 14,868 Service, access and product cost of revenues excluding USF 83,725 10,255 93,980 USF cost of revenues 8,555 10,876 19,431 Total cost of revenues 92,280 21,131 113,411 Segment gross margin Service margin 89,491 79,742 169,233 Access and product margin (2,174 ) (929 ) (3,103 ) Gross margin excluding USF (Service, access and product margin) 87,317 78,813 166,130 USF margin — — — Segment gross margin $ 87,317 $ 78,813 $ 166,130 Segment gross margin % Service margin % 56.2 % 89.6 % 68.1 % Gross margin excluding USF (Service, access and product margin %) 51.1 % 88.5 % 63.9 % Segment gross margin % 48.6 % 78.9 % 59.4 % (1) Includes customer premise equipment, access, and shipping and handling. (2) Excludes depreciation and amortization of $8,214 and $1,204 for the three months ended March 31, 2019 , respectively. A reconciliation of the total of the reportable segments' gross margin to consolidated income before income taxes is as follows: Three Months Ended March 31, 2020 2019 Total reportable gross margin $ 170,039 $ 166,130 Sales and marketing 85,621 95,523 Engineering and development 19,203 16,526 General and administrative 40,882 35,459 Depreciation and amortization 20,485 21,214 Income (Loss) from operations 3,848 (2,592 ) Interest expense (8,082 ) (7,576 ) Other income (expense), net 229 (416 ) Loss before income tax benefit $ (4,005 ) $ (10,584 ) Information about our operations by geographic location is as follows: March 31, 2020 December 31, 2019 Long-lived assets: United States $ 637,027 $ 640,277 United Kingdom 274,274 299,660 Israel 1,522 1,609 $ 912,823 $ 941,546

- Summary of Significant Acco_2

- Summary of Significant Accounting Policies (Policies)	3 Months Ended
	Mar. 31, 2020
Accounting Policies [Abstract]
Unaudited Interim Financial Information	Unaudited Interim Financial Information The accompanying unaudited interim condensed consolidated financial statements and information have been prepared in accordance with accounting principles generally accepted in the United States and in accordance with the SEC's regulations for interim financial information and with the instructions for Form 10-Q. Accordingly, they do not include all of the information and disclosures required by accounting principles generally accepted in the United States for complete financial statements. In the opinion of management, these financial statements contain all normal and recurring adjustments considered necessary to present fairly the Company's financial position, results of operations, comprehensive income, cash flows, and stockholders’ equity for the periods presented. The results for the three months ended March 31, 2020 are not necessarily indicative of the results to be expected for the full year. These unaudited interim condensed consolidated financial statements should be read in conjunction with the audited consolidated financial statements and related notes included in our Annual Report on Form 10-K for the year ended December 31, 2019 filed with the Securities and Exchange Commission on February 21, 2020 .
Use of Estimates	Use of Estimates Our condensed consolidated financial statements and notes thereof are prepared in conformity with accounting principles generally accepted in the United States, which require management to make estimates and assumptions that affect the amounts of assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from these estimates, including uncertainty in the current economic environment due to the recent outbreak of the novel coronavirus COVID-19.
Reclassifications	Reclassifications Reclassifications have been made to our condensed consolidated financial statements for the prior year periods to conform to classifications used in the current year periods. The reclassifications did not affect results of operations or net assets.
Cost of Revenues	Service, Access, and Product Cost of Revenues Service, access, and product cost of revenues excludes depreciation and amortization expense of $9,609 and $9,418 for the three months ended March 31, 2020 and 2019 , respectively. In addition, costs of goods sold included in service, access, and product cost of revenues during the three months ended March 31, 2020 and 2019 were $3,676 and $5,628 , respectively.
Sales and Marketing Expenses	Sales and Marketing Expenses We incurred advertising costs, which are included in sales and marketing, of $9,460 and $17,750 for the three months ended March 31, 2020 and 2019, respectively.
Fair Value of Financial Instruments	Fair Value of Financial Instruments The Company records certain of its financial assets at fair value on a recurring basis. Certain of the Company's other financial instruments, which include cash and cash equivalents, restricted cash, accounts receivable and accounts payable, approximate fair value and are classified as Level 1 because of their short-term maturities. We believe the fair value of our 2018 Credit Facility at March 31, 2020 and December 31, 2019 was approximately the same as its carrying amount as market conditions, including available interest rates, credit spread relative to our credit rating, and illiquidity, remain relatively unchanged from the issuance date of our debt obligations for a similar debt instrument and are classified as Level 3 within the fair value hierarchy. We account for financial assets using a framework that establishes a hierarchy that ranks the quality and reliability of the inputs, or assumptions, we use in the determination of fair value, and we classify financial assets and liabilities carried at fair value in one of the following three categories: • Level 1 - quoted prices (unadjusted) in active markets that are accessible at the measurement date for identical assets and liabilities. The fair value hierarchy gives the highest priority to Level 1 inputs. • Level 2 - observable prices that are based on inputs not quoted on active markets but corroborated by market data; and • Level 3 - unobservable inputs when there is little or no market data available, thereby requiring an entity to develop its own assumptions. The fair value hierarchy gives the lowest priority to Level 3 inputs. As of March 31, 2020 and December 31, 2019, the fair value of the 1.75% convertible senior notes due 2024 (the “Convertible Senior Notes”) was approximately $277,800 and $309,641 , respectively. The fair value was determined based on the quoted price for the Convertible Senior Notes in an inactive market on the last trading day of the reporting period and is classified as Level 2 in the fair value hierarchy.
Recent Accounting Pronouncements	Recent Accounting Pronouncements The following standard was adopted by the Company during the three months ended March 31, 2020 : In March 2020, the FASB issued ASU 2020-04, " Reference Rate Reform (Topic 848) ". This ASU provides an easier and more cost efficient way for companies to modify contracts that reference the London Interbank Offered Rate ("LIBOR") and other rates that are being phased out. The ASU (1) allows eligible contracts that are modified to be accounted for as a continuation of those contracts - a simplification that eliminates the need for companies to reassess or remeasure the contracts for accounting purposes; (2) permits companies to preserve their hedge accounting during the transition period; and (3) enables companies to make a one-time election to transfer or sell held-to-maturity debt securities that are affected by rate reform. It is effective as of March 12, 2020 through December 31, 2022. The Company adopted the ASU when effective. The adoption of this ASU did not have a material impact on our condensed consolidated financial statements and related disclosures. In December 2019, the FASB issued ASU 2019-12, Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes by removing certain exceptions currently permissible under ASC Topic 740. This ASU also requires entities to: (1) recognize a franchise tax that is partially based on income as an income-based tax and account for any incremental amounts incurred as non-income based tax; (2) evaluate when a step-up in the tax basis of goodwill should be considered as part of the business combination and when it should be considered a separate transaction;(3) specifying that an entity is not required to allocate the consolidated amount of current and deferred tax expense to a legal entity that is not subject to tax in its separate financial statements; and (4) reflect the effect of an enacted change in tax laws or rates in the annual effective tax rate computation and other minor improvements. This ASU is effective for fiscal years beginning after December 15, 2020, and interim periods within those fiscal years. Early adoption of the amendments is permitted, including adoption in any interim period for public business entities for periods for which financial statements have not yet been issued. The Company adopted the new standard on January 1, 2020. The adoption of the ASU did not have a material impact on our condensed consolidated financial statements and related disclosures. In June 2016, the FASB issued ASU 2016-13, " Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments which requires the use of a new current expected credit loss ("CECL") model in estimating allowances for doubtful accounts with respect to accounts receivable. Receivables from revenue transactions, or trade receivables, are recognized when the corresponding revenue is recognized under ASC Topic 606, Revenue from Contracts with Customers . The CECL model requires that the Company estimate its lifetime expected credit loss with respect to these receivables and record allowances that when deducted from the balance of the receivables, represent the estimated net amounts expected to be collected. Given the generally short term nature of trade receivables, we do not apply a discounted cash flow methodology. However, the Company considers whether historical loss rates are consistent with expectations of forward-looking estimates for our trade receivables. This ASU is effective for fiscal years beginning after December 15, 2019, and interim periods within those fiscal years. The Company adopted of the new standard on January 1, 2020. The adoption of this ASU did not have a material impact on our condensed consolidated financial statements and related disclosures. The Company will continue to actively monitor the impact of the COVID-19 pandemic on its estimate of expected credit losses.

Summary of Significant Accounti

Summary of Significant Accounting Policies (Tables)	3 Months Ended
	Mar. 31, 2020
Accounting Policies [Abstract]
Restrictions on Cash and Cash Equivalents	The following table provides a reconciliation of cash and cash equivalents and restricted cash reported within the consolidated balance sheets to amounts included in the consolidated statements of cash flows: As of March 31, As of December 31 2020 2019 2019 2018 Cash and cash equivalents $ 43,073 $ 18,254 $ 23,620 $ 5,057 Restricted cash 2,039 1,872 2,015 2,047 Total cash, cash equivalents and restricted cash $ 45,112 $ 20,126 $ 25,635 $ 7,104
Schedule of Finite-Lived Intangible Assets	Intangible assets, net March 31, 2020 December 31, 2019 Customer relationships $ 144,956 $ 157,184 Developed technology 80,903 89,199 Patents and patent licenses 1,083 1,326 Trade names 1,037 2,196 Finite-lived intangible assets, net $ 227,979 $ 249,905
Schedule of Accrued Liabilities	Accrued expenses March 31, 2020 December 31, 2019 Compensation and related taxes and temporary labor $ 24,258 $ 40,101 Marketing 17,507 15,294 Taxes and fees 14,846 22,922 Telecommunications 40,148 40,498 Interest 2,426 873 Customer credits 4,067 2,772 Professional fees 4,124 4,482 Inventory 708 871 Other accruals 10,823 9,776 Accrued expenses $ 118,907 $ 137,589
Schedule of Goodwill	The following table provides a summary of the changes in the carrying amounts of goodwill: Balance at December 31, 2019 $ 602,970 Foreign currency translation adjustment (11,948 ) Balance at March 31, 2020 $ 591,022

Revenue Recognition (Tables)

Revenue Recognition (Tables)	3 Months Ended
	Mar. 31, 2020
Revenue from Contract with Customer [Abstract]
Disaggregation of Revenue	The following tables detail our revenue from customers disaggregated by primary geographical market and source of revenue. The tables also include a reconciliation of the disaggregated revenue for our Business and Consumer segments. Three Months Ended Three Months Ended March 31, 2020 March 31, 2019 Business Consumer Total Business Consumer Total Primary geographical markets United States $ 126,547 $ 80,007 $ 206,554 $ 112,438 $ 91,866 $ 204,304 Canada 1,933 4,566 6,499 1,407 5,168 $ 6,575 United Kingdom 16,291 2,631 18,922 23,881 2,910 $ 26,791 Other Countries 65,482 — 65,482 41,871 — $ 41,871 $ 210,253 $ 87,204 $ 297,457 $ 179,597 $ 99,944 $ 279,541 Major Sources of Revenue Service revenues $ 195,649 $ 77,243 $ 272,892 $ 159,345 $ 89,000 $ 248,345 Access and product revenues 10,122 63 10,185 11,697 68 11,765 USF revenues 4,482 9,898 14,380 8,555 10,876 19,431 $ 210,253 $ 87,204 $ 297,457 $ 179,597 $ 99,944 $ 279,541
Contract with Customer, Asset and Liability	The following table provides information about receivables and contract liabilities from contracts with customers: March 31, 2020 December 31, 2019 Receivables (1) $ 96,238 $ 101,813 Contract liabilities (2) 61,022 59,464 (1) Amounts included in accounts receivables on our condensed consolidated balance sheet. (2) Amounts included in deferred revenues and other liabilities on our condensed consolidated balance sheet.

Earnings Per Share (Tables)

Earnings Per Share (Tables)	3 Months Ended
	Mar. 31, 2020
Earnings Per Share [Abstract]
Schedule of Earnings Per Share, Basic and Diluted	The following table sets forth the computation for basic and diluted loss per share for the three months ended March 31, 2020 and 2019 : Three Months Ended March 31, 2020 2019 Numerator Net loss $ (3,755 ) $ (534 ) Denominator Weighted average common shares outstanding for basic and diluted net loss per share 243,627 240,527 Basic and diluted loss per share Basic and diluted loss per share $ (0.02 ) $ —
Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share	For the three months ended March 31, 2020 and 2019 , the following were excluded from the calculation of diluted loss per common share because of their anti-dilutive effects: Three Months Ended March 31, 2020 2019 Restricted stock units 13,894 10,997 Stock options 4,878 5,643 18,772 16,640

Incomes Taxes (Tables)

Incomes Taxes (Tables)	3 Months Ended
	Mar. 31, 2020
Income Tax Disclosure [Abstract]
Schedule of Effective Income Tax Rate Reconciliation	The income tax consisted of the following: Three Months Ended March 31, 2020 2019 Loss before income taxes $ (4,005 ) $ (10,584 ) Income tax benefit 250 10,050 Effective tax rate 6.2 % 95.0 %
Schedule of Unrecognized Tax Benefits Roll Forward	The following table reconciles the total amounts of uncertain tax benefits: March 31, 2020 December 31, 2019 Balance as of January 1 $ 914 $ 1,107 Increase due to current year positions — 155 Decrease due to prior year positions — (243 ) Decrease due to settlements and payments (173 ) (86 ) Decrease due to lapse of applicable statute of limitations — (71 ) (Decrease) increase due to foreign currency fluctuation (27 ) 52 Uncertain tax benefits as of the end of the period $ 714 $ 914

- Long-Term Debt (Tables)

- Long-Term Debt (Tables)	3 Months Ended
	Mar. 31, 2020
Debt Disclosure [Abstract]
Schedule of Long-Term Debt	The following table summarizes the Company's long-term debt as of March 31, 2020 and December 31, 2019 : March 31, 2020 December 31, 2019 Revolving credit facility - due 2023 265,500 220,500 Convertible senior notes - due 2024 345,000 345,000 Long-term debt including current maturities 610,500 565,500 Less unamortized discount 58,180 61,234 Less debt issuance costs 6,709 7,108 Total long-term debt $ 545,611 $ 497,158
Schedule of Net Carrying Amount of Liability and Equity Components of Notes	The net carrying amount of the liability component of the Convertible Senior Notes was as follows: March 31, 2020 Principal $ 345,000 Unamortized discount (58,180 ) Unamortized issuance cost (6,709 ) Net carrying amount $ 280,111
Schedule of Interest Expense Recognized Related to Notes	The following table sets forth the interest expense recognized related to the Convertible Senior Notes: Three Months Ended March 31, 2020 Contractual interest expense 1,509 Amortization of debt discount 3,054 Amortization of debt issuance costs 399 Total interest expense related to the Convertible Senior Notes 4,962
Accumulated OCI Balance Attributable to Cash Flow Derivatives	The following table summarizes the effects of ASC 815 on the Company's accumulated OCI balance attributable to cash flow derivatives: Three Months Ended March 31, 2020 2019 Accumulated OCI beginning balance $ (1,001 ) $ 975 Reclassified from accumulated OCI to income: Due to reclassification of previously deferred gain (133 ) (133 ) Change in fair value of cash flow hedge accounting contracts, net of tax (285 ) (554 ) Accumulated OCI ending balance, net of tax benefit of $46 and $365, respectively $ (1,419 ) $ 288 Gains expected to be reclassified from accumulated OCI during the next 12 months $ 531 $ 531

Leases - Leases (Tables)

Leases - Leases (Tables)	3 Months Ended
	Mar. 31, 2020
Leases [Abstract]
Supplemental Cash Flow - Operating Leases	Supplemental cash flow related to the Company's operating leases is as follows: Three Months Ended March 31, 2020 Cash paid for amounts included in the measurement of lease liabilities $ 4,139 Right-of-use assets obtained in exchange for lease obligations $ 1,261
Maturity of Lease Liabilities	Maturities of operating lease liabilities as of March 31, 2020 and December 31, 2019 are as follows: March 31, 2020 December 31, 2019 2020 (excluding the three months ended March 31, 2020 for the period ended March 31, 2020) $ 10,841 15,017 2021 11,879 11,663 2022 8,180 7,599 2023 6,552 7,197 2024 2,252 6,592 Thereafter 4,540 21,178 Total lease payments 44,244 69,246 Less imputed interest (4,309 ) (11,047 ) Total $ 39,935 $ 58,199

Common Stock (Tables)

Common Stock (Tables)	3 Months Ended
	Mar. 31, 2020
Equity [Abstract]
Schedule of Stock by Class	The following table reflects the changes in the Company's common stock issued and outstanding: For the Three Months Ended (in thousands) Issued Treasury Outstanding Balance at December 31, 2018 309,736 (69,993 ) 239,743 Shares issued under the 2015 Equity Incentive Plan 4,497 — 4,497 Employee taxes paid on withholding shares — (1,864 ) (1,864 ) Balance at March 31, 2019 314,233 (71,857 ) 242,376 Balance at December 31, 2019 315,808 (72,959 ) 242,849 Shares issued under the 2015 Equity Incentive Plan 4,072 — 4,072 Employee taxes paid on withholding shares — (1,675 ) (1,675 ) Balance at March 31, 2020 319,880 (74,634 ) 245,246

Industry Segment and Geograph_2

Industry Segment and Geographic Information (Tables)	3 Months Ended
	Mar. 31, 2020
Segment Reporting [Abstract]
Revenue from External Customers by Geographic Areas	Information about our segment results for the three and three months ended March 31, 2020 were as follows: Three Months Ended March 31, 2020 Business Consumer Total Revenues Service revenues $ 195,649 $ 77,243 $ 272,892 Access and product revenues (1) 10,122 63 10,185 Service, access and product revenues excluding USF 205,771 77,306 283,077 USF revenues 4,482 9,898 14,380 Total revenues 210,253 87,204 297,457 Cost of revenues Service cost of revenues (2) 92,357 8,512 100,869 Access and product cost of revenues (1) 11,596 573 12,169 Service, access and product cost of revenues excluding USF 103,953 9,085 113,038 USF cost of revenues 4,482 9,898 14,380 Total cost of revenues 108,435 18,983 127,418 Segment gross margin Service margin 103,292 68,731 172,023 Access and product margin (1,474 ) (510 ) (1,984 ) Gross margin excluding USF (Service, access and product margin) 101,818 68,221 170,039 USF margin — — — Segment gross margin $ 101,818 $ 68,221 $ 170,039 Segment gross margin % Service margin % 52.8 % 89.0 % 63.0 % Gross margin excluding USF (Service, access and product margin %) 49.5 % 88.2 % 60.1 % Segment gross margin % 48.4 % 78.2 % 57.2 % (1) Includes customer premise equipment, access, and shipping and handling. (2) Excludes depreciation and amortization of $8,519 and $1,090 for the three months ended March 31, 2020 , respectively. Information about our segment results for the three and three months ended March 31, 2019 were as follows: Three Months Ended March 31, 2019 Business Consumer Total Revenues Service revenues $ 159,345 $ 89,000 $ 248,345 Access and product revenues (1) 11,697 68 11,765 Service, access and product revenues excluding USF 171,042 89,068 260,110 USF revenues 8,555 10,876 19,431 Total revenues 179,597 99,944 279,541 Cost of revenues Service cost of revenues (2) 69,854 9,258 79,112 Access and product cost of revenues (1) 13,871 997 14,868 Service, access and product cost of revenues excluding USF 83,725 10,255 93,980 USF cost of revenues 8,555 10,876 19,431 Total cost of revenues 92,280 21,131 113,411 Segment gross margin Service margin 89,491 79,742 169,233 Access and product margin (2,174 ) (929 ) (3,103 ) Gross margin excluding USF (Service, access and product margin) 87,317 78,813 166,130 USF margin — — — Segment gross margin $ 87,317 $ 78,813 $ 166,130 Segment gross margin % Service margin % 56.2 % 89.6 % 68.1 % Gross margin excluding USF (Service, access and product margin %) 51.1 % 88.5 % 63.9 % Segment gross margin % 48.6 % 78.9 % 59.4 % (1) Includes customer premise equipment, access, and shipping and handling. (2) Excludes depreciation and amortization of $8,214 and $1,204 for the three months ended March 31, 2019 , respectively. A reconciliation of the total of the reportable segments' gross margin to consolidated income before income taxes is as follows: Three Months Ended March 31, 2020 2019 Total reportable gross margin $ 170,039 $ 166,130 Sales and marketing 85,621 95,523 Engineering and development 19,203 16,526 General and administrative 40,882 35,459 Depreciation and amortization 20,485 21,214 Income (Loss) from operations 3,848 (2,592 ) Interest expense (8,082 ) (7,576 ) Other income (expense), net 229 (416 ) Loss before income tax benefit $ (4,005 ) $ (10,584 ) Information about our operations by geographic location is as follows:
Long-lived Assets by Geographic Areas	Information about our operations by geographic location is as follows: March 31, 2020 December 31, 2019 Long-lived assets: United States $ 637,027 $ 640,277 United Kingdom 274,274 299,660 Israel 1,522 1,609 $ 912,823 $ 941,546

Nature of Business (Details)

Nature of Business (Details)	3 Months Ended
	Mar. 31, 2020	Mar. 31, 2019
United States
Concentration Risk [Line Items]
Customer representation of revenue, percentage	69.00%	73.00%

Summary of Significant Accoun_2

Summary of Significant Accounting Policies - Cost of Revenues (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2020	Mar. 31, 2019
Accounting Policies [Abstract]
Depreciation and amortization	$ 9,609	$ 9,418
Cost of Goods and Services Sold	$ 3,676	$ 5,628

Summary of Significant Accoun_3

Summary of Significant Accounting Policies - Sales and Marketing Expenses (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2020	Mar. 31, 2019
Accounting Policies [Abstract]
Advertising costs	$ 9,460	$ 17,750

Summary of Significant Accoun_4

Summary of Significant Accounting Policies - Fair Value of Financial Instruments (Details) $ in Thousands	Dec. 31, 2019USD ($)
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Derivative Instruments in Hedges, Assets, at Fair Value	$ 18

Summary of Significant Accoun_5

Summary of Significant Accounting Policies - Cash, Cash Equivalents and Restricted Cash (Details) - USD ($) $ in Thousands	Mar. 31, 2020	Dec. 31, 2019	Mar. 31, 2019	Dec. 31, 2018
Accounting Policies [Abstract]
Cash and cash equivalents	$ 43,073	$ 23,620	$ 18,254	$ 5,057
Restricted cash	2,039	2,015	1,872	2,047
Cash, cash equivalents, and restricted cash	$ 45,112	$ 25,635	$ 20,126	$ 7,104

Summary of Significant Accoun_6

Summary of Significant Accounting Policies - Intangible Assets, Net (Details) - USD ($) $ in Thousands	Mar. 31, 2020	Dec. 31, 2019
Finite-Lived Intangible Assets [Line Items]
Finite-lived intangible assets, net	$ 227,979	$ 249,905
Customer relationships
Finite-Lived Intangible Assets [Line Items]
Finite-lived intangible assets, net	144,956	157,184
Developed technology
Finite-Lived Intangible Assets [Line Items]
Finite-lived intangible assets, net	80,903	89,199
Patents and patent licenses
Finite-Lived Intangible Assets [Line Items]
Finite-lived intangible assets, net	1,083	1,326
Trade names
Finite-Lived Intangible Assets [Line Items]
Finite-lived intangible assets, net	$ 1,037	$ 2,196

Summary of Significant Accoun_7

Summary of Significant Accounting Policies - Accrued Expenses (Details) - USD ($) $ in Thousands	Mar. 31, 2020	Dec. 31, 2019
Accounting Policies [Abstract]
Compensation and related taxes and temporary labor	$ 24,258	$ 40,101
Marketing	17,507	15,294
Taxes and fees	14,846	22,922
Telecommunications	40,148	40,498
Interest	2,426	873
Customer credits	4,067	2,772
Professional fees	4,124	4,482
Inventory	708	871
Other accruals	10,823	9,776
Accrued expenses	$ 118,907	$ 137,589

Summary of Significant Accoun_8

Summary of Significant Accounting Policies - Goodwill (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2020	Dec. 31, 2019
- Schedule of Goodwill [Abstract]
Goodwill	$ 591,022	$ 602,970
Goodwill, Foreign Currency Translation Gain (Loss)	$ 11,948

Summary of Significant Accoun_9

Summary of Significant Accounting Policies - Narratives (Details) - USD ($) $ in Thousands	Mar. 31, 2020	Dec. 31, 2019	Jun. 30, 2019
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Interest rate, stated percentage	1.75%		1.75%
Operating lease right-of-use assets	$ 33,735	$ 50,847
Total	39,935	58,199
Fair value, measurements, recurring | Fair Value, Inputs, Level 2
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Convertible debt, fair value disclosures	$ 277,800	$ 309,641

Revenue Recognition Disaggregat

Revenue Recognition Disaggregation of Revenue (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2020	Mar. 31, 2019
Disaggregation of Revenue [Line Items]
Total revenues	$ 297,457	$ 279,541
Business
Disaggregation of Revenue [Line Items]
Total revenues	210,253	179,597
Consumer
Disaggregation of Revenue [Line Items]
Total revenues	87,204	99,944
Service revenues
Disaggregation of Revenue [Line Items]
Total revenues	272,892	248,345
Service revenues | Business
Disaggregation of Revenue [Line Items]
Total revenues	195,649	159,345
Service revenues | Consumer
Disaggregation of Revenue [Line Items]
Total revenues	77,243	89,000
Access and product revenues
Disaggregation of Revenue [Line Items]
Total revenues	10,185	11,765
Access and product revenues | Business
Disaggregation of Revenue [Line Items]
Total revenues	10,122	11,697
Access and product revenues | Consumer
Disaggregation of Revenue [Line Items]
Total revenues	63	68
USF revenues
Disaggregation of Revenue [Line Items]
Total revenues	14,380	19,431
USF revenues | Business
Disaggregation of Revenue [Line Items]
Total revenues	4,482	8,555
USF revenues | Consumer
Disaggregation of Revenue [Line Items]
Total revenues	9,898	10,876
United States
Disaggregation of Revenue [Line Items]
Total revenues	206,554	204,304
United States | Business
Disaggregation of Revenue [Line Items]
Total revenues	126,547	112,438
United States | Consumer
Disaggregation of Revenue [Line Items]
Total revenues	80,007	91,866
Canada
Disaggregation of Revenue [Line Items]
Total revenues	6,499	6,575
Canada | Business
Disaggregation of Revenue [Line Items]
Total revenues	1,933	1,407
Canada | Consumer
Disaggregation of Revenue [Line Items]
Total revenues	4,566	5,168
United Kingdom
Disaggregation of Revenue [Line Items]
Total revenues	18,922	26,791
United Kingdom | Business
Disaggregation of Revenue [Line Items]
Total revenues	16,291	23,881
United Kingdom | Consumer
Disaggregation of Revenue [Line Items]
Total revenues	2,631	2,910
Other Countries
Disaggregation of Revenue [Line Items]
Total revenues	65,482	41,871
Other Countries | Business
Disaggregation of Revenue [Line Items]
Total revenues	65,482	41,871
Other Countries | Consumer
Disaggregation of Revenue [Line Items]
Total revenues	$ 0	$ 0

Revenue Recognition - Contract

Revenue Recognition - Contract with Customer, Asset and Liability (Details) - USD ($) $ in Thousands	Mar. 31, 2020	Dec. 31, 2019
Revenue from Contract with Customer [Abstract]
Receivables	$ 96,238	$ 101,813
Contract liabilities	$ 61,022	$ 59,464

Revenue Recognition - Narrative

Revenue Recognition - Narrative (Details) - USD ($) $ in Thousands	3 Months Ended		12 Months Ended
	Mar. 31, 2020	Mar. 31, 2019	Mar. 31, 2021	Dec. 31, 2019
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]
Total revenues	$ 297,457	$ 279,541
Recognized revenue, contract liabilities	108,875	100,434
Amortization of deferred customer acquisition costs	3,661	2,530
Scenario, Forecast
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]
Recognized revenue, contract liabilities			$ 61,022
Subscription services
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]
Total revenues	156,455	162,546
Usage
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]
Total revenues	93,047	67,847
USF and others
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]
Total revenues	47,955	49,148
Current and Non-Current Portion
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]
Customer acquisition cost	73,862			$ 68,982
Business
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]
Total revenues	$ 210,253	$ 179,597
Typical life of a customer	7 years
Maximum
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]
Revenue, Performance Obligation, Description of Timing	3
Minimum
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]
Revenue, Performance Obligation, Description of Timing	1

Revenue Recognition - Performan

Revenue Recognition - Performance Obligation (Details) - Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2021-01-01 $ in Billions	Mar. 31, 2020USD ($)
Revenue from Contract with Customer [Abstract]
Revenue, Remaining Performance Obligation, Amount	$ 0.4
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Period	18 months

Earnings Per Share - Schedule o

Earnings Per Share - Schedule of Earnings Per Share Basic and Diluted (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended
	Mar. 31, 2020	Mar. 31, 2019
Numerator
Net loss	$ (3,755)	$ (534)
Denominator
Basic and Diluted (in shares)	243,627	240,527
Basic and diluted loss per share
Basic and Diluted	$ (0.02)	$ 0

Earnings Per Share - Schedule_2

Earnings Per Share - Schedule of Antidilutive Securities (Details) - shares shares in Thousands	3 Months Ended
	Mar. 31, 2020	Mar. 31, 2019
Earnings per share, antidilutive securities:
Antidilutive securities excluded from earnings per common share (in shares)	18,772	16,640
Restricted stock units
Earnings per share, antidilutive securities:
Antidilutive securities excluded from earnings per common share (in shares)	13,894	10,997
Stock options
Earnings per share, antidilutive securities:
Antidilutive securities excluded from earnings per common share (in shares)	4,878	5,643

Earnings Per Share - Narrative

Earnings Per Share - Narrative (Details) - $ / shares	Mar. 31, 2020	Jun. 30, 2019
Earnings Per Share [Abstract]
Debt instrument, conversion price (in dollar per share)	$ 16.72	$ 16.72

Income Taxes - Effective Tax Ra

Income Taxes - Effective Tax Rate (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2020	Mar. 31, 2019
Income Tax Disclosure [Abstract]
Loss before income taxes	$ (4,005)	$ (10,584)
Income tax benefit	$ 250	$ 10,050
Effective tax rate	6.20%	95.00%

Income Taxes - Schedule of Unre

Income Taxes - Schedule of Unrecognized Tax Benefit Roll Forward (Details) - USD ($) $ in Thousands	3 Months Ended		12 Months Ended
	Mar. 31, 2020	Mar. 31, 2019	Dec. 31, 2018
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward]
Balance as of January 1	$ 914	$ 1,107
Increase due to current year positions	0		$ 155
Decrease due to prior year positions	0		(243)
Decrease due to settlements and payments	(173)		(86)
Unrecognized Tax Benefits, Reduction Resulting from Lapse of Applicable Statute of Limitations	0	$ (71)
(Decrease) increase due to foreign currency fluctuation	(27)		52
Uncertain tax benefits as of the end of the period	$ 714		$ 1,107

Income Taxes - Narrative (Detai

Income Taxes - Narrative (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2020	Mar. 31, 2019	Dec. 31, 2019	Dec. 31, 2018
Operating Loss Carryforwards [Line Items]
Discrete period tax benefit	$ 2,115	$ 4,749
Uncertain tax position	714		$ 914	$ 1,107
Incurred penalties and interest expense		$ 0
Domestic Tax Authority
Operating Loss Carryforwards [Line Items]
Operating loss carryforwards	509,313
State and Local Jurisdiction
Operating Loss Carryforwards [Line Items]
Operating loss carryforwards	237,667
Foreign Tax Authority | Her Majesty's Revenue and Customs (HMRC)
Operating Loss Carryforwards [Line Items]
Operating loss carryforwards	$ 165,104

Long-Term Debt - Schedule of Lo

Long-Term Debt - Schedule of Long-Term Debt (Details) - USD ($) $ in Thousands	Mar. 31, 2020	Dec. 31, 2019
Debt Instrument [Line Items]
Revolving credit facility - due 2023	$ 265,500	$ 220,500
Convertible senior notes - due 2024	345,000	345,000
Long-term debt including current maturities	610,500	565,500
Less unamortized discount	58,180	61,234
Less debt issuance costs	6,709	7,108
Total long-term debt	$ 545,611	$ 497,158

Long-Term Debt - Schedule of Ne

Long-Term Debt - Schedule of Net Carrying Amount of Liability Component of Notes (Details) - USD ($) $ in Thousands	Mar. 31, 2020	Dec. 31, 2019	Jun. 30, 2019
Debt Disclosure [Abstract]
Principal	$ 345,000		$ 300,000
Unamortized discount	(58,180)
Unamortized issuance cost	(6,709)	$ (7,108)
Net carrying amount	$ 280,111

Long-Term Debt - Schedule of In

Long-Term Debt - Schedule of Interest Expense Recognized Related to Notes (Details) $ in Thousands	3 Months Ended
	Mar. 31, 2020USD ($)
Debt Disclosure [Abstract]
Contractual interest expense	$ 1,509
Amortization of debt discount	3,054
Amortization of debt issuance costs	399
Total interest expense related to the Convertible Senior Notes	$ 4,962

Long-Term Debt - Accumulated OC

Long-Term Debt - Accumulated OCI Balance Attributable to Cash Flow Derivatives (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2020	Mar. 31, 2019
AOCI Attributable to Parent, Net of Tax [Roll Forward]
Accumulated OCI beginning balance	$ (1,001)	$ 975
Due to reclassification of previously deferred gain	(133)	(133)
Change in fair value of cash flow hedge accounting contracts, net of tax	(285)	(554)
Accumulated OCI ending balance	(1,419)	288
Gains expected to be reclassified from accumulated OCI during the next 12 months	531	531
Accumulated Net Gain (Loss)
Debt Instrument [Line Items]
AOCI tax	$ 46	$ 365

Long-Term Debt - Narrative (Det

Long-Term Debt - Narrative (Details) $ / shares in Units, $ in Thousands	1 Months Ended	3 Months Ended				12 Months Ended
	Jun. 30, 2019USD ($)$ / shares$ / unitshares	Jun. 30, 2020USD ($)	Mar. 31, 2020USD ($)$ / shares	Jun. 30, 2019USD ($)$ / shares$ / unit	Mar. 31, 2019USD ($)	Dec. 31, 2019USD ($)	Jul. 31, 2018USD ($)	Jul. 31, 2017USD ($)	Jul. 14, 2017agreement
Debt Instrument [Line Items]
Principal	$ 300,000		$ 345,000	$ 300,000
Interest rate, stated percentage	1.75%		1.75%	1.75%
Additional principal amount	$ 45,000			$ 45,000
Total net proceeds after deduction				$ 334,800
Converted instrument, amount	$ 1,000
Converted shares issued (in shares) | shares	59.8256
Debt instrument, conversion price (in dollar per share) | $ / shares	$ 16.72		$ 16.72	$ 16.72
Derivative, cap price (in dollars per share) | $ / unit	23.46			23.46
Payments for capped call transactions						$ 28,325
Related income tax benefit	$ 6,772			$ 6,772
Principal payments on notes and revolving credit facility			$ 0		$ 2,500
Proceeds from issuance of long-term debt			45,000		41,500
Derivative, number of instruments held | agreement									3
Derivative, amount of hedged item								$ 150,000
Derivative, fixed interest rate								4.70%
Derivative Instruments in Hedges, Liabilities, at Fair Value			$ 218
Derivative Instruments in Hedges, Assets, at Fair Value						$ 18
2018 Credit Facility
Debt Instrument [Line Items]
Line of credit facility, interest rate at period end			3.71%
2018 Credit Facility | Term note | Secured debt
Debt Instrument [Line Items]
Principal							$ 100,000
Principal payments on notes and revolving credit facility					2,500
2018 Credit Facility | Revolving credit facility | Line of credit
Debt Instrument [Line Items]
Line of credit, maximum borrowing capacity							$ 500,000
Proceeds from issuance of long-term debt			$ 45,000		$ 41,500
Subsequent Event [Member] | 2018 Credit Facility | Revolving credit facility | Line of credit
Debt Instrument [Line Items]
Proceeds from issuance of long-term debt		$ 30,000

Leases - Supplemental Cash Flow

Leases - Supplemental Cash Flow - Operating Leases (Details) $ in Thousands	3 Months Ended
	Mar. 31, 2020USD ($)
Leases [Abstract]
Cash paid for amounts included in the measurement of lease liabilities	$ 4,139
Right-of-use assets obtained in exchange for operating lease liability	$ 1,261

Leases - Lessee, Operating Leas

Leases - Lessee, Operating Lease, Liability, Maturity (Details) - USD ($) $ in Thousands	Mar. 31, 2020	Dec. 31, 2019
Leases [Abstract]
2020 (excluding the three months ended March 31, 2020 for the period ended March 31, 2020)	$ 10,841	$ 15,017
2021	11,879	11,663
2022	8,180	7,599
2023	6,552	7,197
2024	2,252	6,592
Thereafter	4,540	21,178
Total lease payments	44,244	69,246
Less imputed interest	(4,309)	(11,047)
Total	$ 39,935	$ 58,199

Leases - Narratives (Details)

Leases - Narratives (Details) - USD ($)	3 Months Ended
	Mar. 31, 2020	Mar. 31, 2019
Leases [Abstract]
Modificationofoperatingleaseliability	$ 15,825
Operating lease, expense	2,965,000	$ 3,941,000
Operating Leases, Income Statement, Sublease Revenue	$ 319	$ 266
Operating lease, weighted average remaining lease term	4 years 1 month 6 days
Operating lease, discount rate	5.04%

Common Stock Schedule of Stock

Common Stock Schedule of Stock by Class (Details) - shares shares in Thousands	3 Months Ended
	Mar. 31, 2020	Mar. 31, 2019
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Outstanding, Balance at beginning of period (in shares)	242,849	239,743
Shares issued under the 2015 Equity Incentive Plan (in shares)	4,072	4,497
Employee taxes paid on withholding shares (in shares)	(1,675)	(1,864)
Outstanding, Balance at end of period (in shares)	245,246	242,376
Common Stock Issued
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Issued, Balance at beginning of period (in shares)	315,808	309,736
Shares issued under the 2015 Equity Incentive Plan (in shares)	4,072	4,497
Employee taxes paid on withholding shares (in shares)	0	0
Issued, Balance at end of period (in shares)	319,880	314,233
Treasury Stock
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Treasury, Balance at beginning of period (in shares)	72,959	69,993
Shares issued under the 2015 Equity Incentive Plan (in shares)	0	0
Employee taxes paid on withholding shares (in shares)	(1,675)	(1,864)
Treasury, Balance at end of period (in shares)	74,634	71,857

Common Stock - Narrative (Detai

Common Stock - Narrative (Details) - shares	Mar. 31, 2020	Dec. 31, 2019
Class of Stock [Line Items]
Common stock, shares authorized (in shares)	596,950,000	596,950,000
Shares available for grant (in shares)	15,521,000
Common Stock
Class of Stock [Line Items]
Common stock, shares authorized (in shares)	596,950,000	596,950,000

Commitments and Contingencies -

Commitments and Contingencies - Narrative (Details) - USD ($) $ in Thousands	Mar. 31, 2020	Dec. 31, 2019
Commitments and Contingencies Disclosure [Abstract]
Reserve for potential tax liability pending new requirements from state or municipal agencies	$ 3,703	$ 3,175

Industry Segment and Geograph_3

Industry Segment and Geographic Information - Schedule of Segment Results (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2020	Mar. 31, 2019
Segment Reporting Information [Line Items]
Total revenues	$ 297,457	$ 279,541
Cost of revenues	127,418	113,411
Segment gross margin	$ 170,039	$ 166,130
Segment gross margin %	57.20%	59.40%
Depreciation and amortization	$ 9,609	$ 9,418
Business
Segment Reporting Information [Line Items]
Total revenues	210,253	179,597
Cost of revenues	108,435	92,280
Segment gross margin	$ 101,818	$ 87,317
Segment gross margin %	48.40%	48.60%
Consumer
Segment Reporting Information [Line Items]
Total revenues	$ 87,204	$ 99,944
Cost of revenues	18,983	21,131
Segment gross margin	$ 68,221	$ 78,813
Segment gross margin %	78.20%	78.90%
Service revenues
Segment Reporting Information [Line Items]
Total revenues	$ 272,892	$ 248,345
Cost of revenues	100,869	79,112
Segment gross margin	$ 172,023	$ 169,233
Segment gross margin %	63.00%	68.10%
Service revenues | Business
Segment Reporting Information [Line Items]
Total revenues	$ 195,649	$ 159,345
Cost of revenues	92,357	69,854
Segment gross margin	$ 103,292	$ 89,491
Segment gross margin %	52.80%	56.20%
Depreciation and amortization	$ 8,519	$ 8,214
Service revenues | Consumer
Segment Reporting Information [Line Items]
Total revenues	77,243	89,000
Cost of revenues	8,512	9,258
Segment gross margin	$ 68,731	$ 79,742
Segment gross margin %	89.00%	89.60%
Depreciation and amortization	$ 1,090	$ 1,204
Access and product revenues
Segment Reporting Information [Line Items]
Total revenues	10,185	11,765
Cost of revenues	12,169	14,868
Segment gross margin	(1,984)	(3,103)
Access and product revenues | Business
Segment Reporting Information [Line Items]
Total revenues	10,122	11,697
Cost of revenues	11,596	13,871
Segment gross margin	(1,474)	(2,174)
Access and product revenues | Consumer
Segment Reporting Information [Line Items]
Total revenues	63	68
Cost of revenues	573	997
Segment gross margin	(510)	(929)
Service, access and product revenues excluding USF
Segment Reporting Information [Line Items]
Total revenues	283,077	260,110
Cost of revenues	113,038	93,980
Segment gross margin	$ 170,039	$ 166,130
Segment gross margin %	60.10%	63.90%
Service, access and product revenues excluding USF | Business
Segment Reporting Information [Line Items]
Total revenues	$ 205,771	$ 171,042
Cost of revenues	103,953	83,725
Segment gross margin	$ 101,818	$ 87,317
Segment gross margin %	49.50%	51.10%
Service, access and product revenues excluding USF | Consumer
Segment Reporting Information [Line Items]
Total revenues	$ 77,306	$ 89,068
Cost of revenues	9,085	10,255
Segment gross margin	$ 68,221	$ 78,813
Segment gross margin %	88.20%	88.50%
USF revenues
Segment Reporting Information [Line Items]
Total revenues	$ 14,380	$ 19,431
Cost of revenues	14,380	19,431
Segment gross margin	0	0
USF revenues | Business
Segment Reporting Information [Line Items]
Total revenues	4,482	8,555
Cost of revenues	4,482	8,555
Segment gross margin	0	0
USF revenues | Consumer
Segment Reporting Information [Line Items]
Total revenues	9,898	10,876
Cost of revenues	9,898	10,876
Segment gross margin	$ 0	$ 0

Industry Segment and Geograph_4

Industry Segment and Geographic Information - Reconciliation of the Reportable Segments' Gross Margin (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2020	Mar. 31, 2019
Segment Reporting [Abstract]
Total reportable gross margin	$ 170,039	$ 166,130
Sales and marketing	85,621	95,523
Engineering and development	19,203	16,526
General and administrative	40,882	35,459
Depreciation and amortization	20,485	21,214
Income (loss) from operations	3,848	(2,592)
Interest expense	(8,082)	(7,576)
Other income (expense), net	229	(416)
Loss before income tax benefit	$ (4,005)	$ (10,584)

Industry Segment and Geograph_5

Industry Segment and Geographic Information - Schedule of Long Lived Assets (Details) - USD ($) $ in Thousands	Mar. 31, 2020	Dec. 31, 2019
Segment Reporting Information [Line Items]
Long-lived assets	$ 912,823	$ 941,546
United States
Segment Reporting Information [Line Items]
Long-lived assets	637,027	640,277
United Kingdom
Segment Reporting Information [Line Items]
Long-lived assets	274,274	299,660
Israel
Segment Reporting Information [Line Items]
Long-lived assets	$ 1,522	$ 1,609